01—Abstract
Summary
Summary of the 10-Q filed November 5, 2024. Cited figures are marked; the original filing is the authoritative source.
Palantir Technologies Inc. reported strong financial results for the third quarter of 2024, demonstrating robust revenue growth and a significant increase in profitability.
Total revenue for the quarter reached $725.5 milliona, a 30% increase year-over-year, driven by growth in both its government and commercial segments. The company's income from operations saw a substantial rise to $113.1 million from $40.0 million in the prior year's quarter. This growth reflects effective cost management alongside strong top-line performance.
The company ended the quarter with a healthy cash position, indicating solid operational execution and financial discipline. Palantir continues to expand its customer base and deepen relationships with existing clients, positioning itself for sustained growth in the evolving data analytics and AI market.
02—Key points
Key Highlights
- Revenue increased by 30% year-over-year to $725.5 million for Q3 2024.
- Income from operations surged to $113.1 million, a significant increase from $40.0 million in Q3 2023.
- Gross margin remained strong at 80% for the quarter.
- Total operating expenses increased by 14% year-over-year, indicating controlled expense growth relative to revenue.
- The company repurchased approximately $18.9 million of its Class A common stock during the quarter.
- As of September 30, 2024, Palantir had 629 customers, up from 453 in the prior year period.
- Interest income increased significantly year-over-year, reflecting a larger cash and marketable securities balance.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q3 FY2024, Palantir Technologies Inc. kept $0.20.
- Revenue$725.5M100.0%
- Cost of revenue−$146.6M20.2%
- Gross profit$578.9M79.8%
- Operating costs−$465.7M64.2%
- Operating income$113.1M15.6%
- Interest, other & tax$30.4M4.2%
- Net income$143.5M19.8%
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2024filed November 5, 2024Financial Statements
Q3 FY2024 against Q3 FY2023
| Line item | Q3 FY2024Q3 FY2023 | Change |
|---|---|---|
| Revenue | $725.52M$558.16M | +30.0% |
| Cost of Revenue | $146.64M$107.92M | +35.9% |
| Gross Profit | $578.88M$450.24M | +28.6% |
| R&D Expenses | $117.56M$105.71M | +11.2% |
| Operating Expenses | $465.74M$410.25M | +13.5% |
| Operating Income | $113.14M$39.98M | +183.0% |
| Net Income | $143.53M$71.50M | +100.7% |
| EPS (Basic) | $0.06$0.03 | +100.0% |
| EPS (Diluted) | $0.06$0.03 | +100.0% |
| Shares Outstanding (Basic) | 2.25B2.16B | +4.0% |
| Shares Outstanding (Diluted) | 2.46B2.33B | +5.8% |
05—Questions
Frequently Asked Questions
How did Palantir's revenue perform in Q3 2024 compared to the previous year?
Palantir's revenue for the three months ended September 30, 2024, increased by 30% to $725.5 million, compared to $558.2 million for the same period in 2023. This growth was driven by increases in both government (33% increase) and commercial (27% increase) revenue.
What was Palantir's profitability in Q3 2024?
Palantir reported a significant improvement in profitability. Income from operations was $113.1 million for the three months ended September 30, 2024, a substantial increase from $40.0 million in the prior year's quarter. Net income attributable to common stockholders was $143.5 million, or $0.06 per diluted share, compared to $71.5 million, or $0.03 per diluted share, in Q3 2023.
What is the company's current financial position in terms of cash and liquidity?
As of September 30, 2024, Palantir had cash, cash equivalents, and short-term U.S. Treasury securities totaling $4.6 billion. The company also had no outstanding debt balances and $500.0 million in undrawn revolving commitments under its credit facility, indicating a strong liquidity position.
How many customers did Palantir have at the end of Q3 2024, and how does this compare to the previous year?
Palantir reported having 629 customers for the period ended September 30, 2024, which is an increase from 453 customers during the period ended September 30, 2023. This growth in customer base signifies expanding market penetration.
06—Continue