01—Abstract
Summary
Summary of the 10-Q filed May 7, 2024. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported strong financial performance for the first quarter of 2024, with significant year-over-year growth in revenue and a substantial increase in income from operations.
Revenue reached $634.3 milliona, a 21% increase compared to the prior year's quarter, driven by robust growth in both government (16% increase) and commercial (27% increase) sectors. The company demonstrated improved operational efficiency, with income from operations rising to $80.9 million from $4.1 million in the prior year, and gross margin expanding to 82% from 80%. Key financial highlights include a considerable increase in interest income, attributed to higher U.S. interest rates and increased cash reserves.
The company also reported a significant rise in stock-based compensation, primarily due to new grants, impacting operating expenses. Palantir's cash position remains strong, with $3.9 billionb in cash, cash equivalents, and short-term U.S. treasury securities as of March 31, 2024, and no outstanding debt, reinforcing its liquidity. The company also continued its share repurchase program, repurchasing $9.0 million of its Class A common stock.
02—Key points
Key Highlights
- Revenue increased by 21% year-over-year to $634.3 million, driven by strong performance in both government (+16%) and commercial (+27%) segments.
- Income from operations saw a significant jump to $80.9 million, up from $4.1 million in the prior year's quarter.
- Gross margin improved to 82% from 80% year-over-year, reflecting efficient cost management relative to revenue growth.
- Interest income more than doubled to $43.4 million, benefiting from higher interest rates and increased cash holdings.
- Total operating expenses increased by 6% year-over-year, primarily driven by a 22% increase in R&D, while Sales & Marketing and G&A expenses saw more modest increases.
- Stock-based compensation increased by 10% year-over-year, impacting profitability, with R&D seeing the largest percentage increase.
- The company maintained a strong liquidity position with $3.9 billion in cash, cash equivalents, and marketable securities as of March 31, 2024, and no outstanding debt.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2024, Palantir Technologies Inc. kept $0.17.
- Revenue$634.3M100.0%
- Cost of revenue−$116.3M18.3%
- Gross profit$518.1M81.7%
- Operating costs−$437.2M68.9%
- Operating income$80.9M12.8%
- Interest, other & tax$24.6M3.9%
- Net income$105.5M16.6%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 7, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $634.34M$525.19M | +20.8% |
| Cost of Revenue | $116.26M$107.64M | +8.0% |
| Gross Profit | $518.08M$417.54M | +24.1% |
| R&D Expenses | $110.04M$90.10M | +22.1% |
| Operating Expenses | $437.20M$413.43M | +5.8% |
| Operating Income | $80.88M$4.12M | +1865.5% |
| Net Income | $105.53M$16.80M | +528.1% |
| EPS (Basic) | $0.05$0.01 | +400.0% |
| EPS (Diluted) | $0.04$0.01 | +300.0% |
| Shares Outstanding (Basic) | 2.21B2.11B | +5.0% |
| Shares Outstanding (Diluted) | 2.40B2.22B | +8.2% |
05—Questions
Frequently Asked Questions
What was Palantir's revenue growth in Q1 2024?
Palantir's revenue grew by 21% year-over-year in the first quarter of 2024, reaching $634.3 million. This growth was driven by an increase of 16% in government revenue and a significant 27% increase in commercial revenue.
How did Palantir's profitability metrics change in Q1 2024?
Palantir showed substantial improvement in profitability. Income from operations increased dramatically to $80.9 million, compared to $4.1 million in the same period last year. The gross margin also improved to 82% from 80% year-over-year.
What is the company's current cash position and debt level?
As of March 31, 2024, Palantir held approximately $3.9 billion in cash, cash equivalents, and short-term U.S. treasury securities. The company reported no outstanding debt.
How is stock-based compensation impacting Palantir's financials?
Stock-based compensation expense increased by 10% year-over-year to $125.7 million. This increase, particularly in Research and Development, contributed to higher operating expenses but is a common characteristic of growth-stage technology companies.
06—Continue