Palantir Technologies Inc. · NASDAQ:PLTR

Palantir Technologies — Q3 2024 Earnings Presentation

36 slides from Palantir Technologies's earnings presentation, Nov 4, 2024

1. Slide 1: Q3 2024 Business Update

   Q3 ©2024 Palantir Technologies Inc. 2024 Business Update

2. Slide 2: Disclaimer Safe Harbor

   Disclaimer Safe Harbor This presentation contains “forward-looking” statements within the meaning of the federal securities laws, and these statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but

3. Slide 3: Q3 2024 Highlights

   Q3 Business Update Q3 2024 Highlights US revenue grew +44% Y/Y and +14% Q/Q to $499 million US commercial revenue grew +54% Y/Y and +13% Q/Q to $179 million US government revenue grew +40% Y/Y and +15% Q/Q to $320 million Revenue grew +30% Y/Y and +7% Q/Q to $726 million; +32% Y/Y and +7% Q/Q exclud

4. Slide 4: Prototype to production: accelerating the US commercial customer journey

   Q3 Business Update Prototype to production: accelerating the US commercial customer journey Bottled Water Healthcare Agriculture Manufacturer Provider Software Provider 50 Days to 7-Figure ACV Deal 3 Months from Client Inbound <2 Months to 7-Figure ACV Deal to 7-Figure ACV Deal Initial Bootcamp 1 Cl

5. Slide 5: Admitted to the S&P 500

   Q3 Business Update We are proud to have been admitted to the S&P 500. © 2024 Palantir Technologies Inc.

6. Slide 6: Ukrainian Government partners with Palantir to leverage AIP

   Q3 Business Update The Ukrainian Government has partnered with Palantir to leverage AIP to enhance decision-making in humanitarian de-mining operations. © 2024 Palantir Technologies Inc.

7. Slide 7: AI is Transforming the Battlefield

   Q3 Business Update AI is Transforming the Battlefield © 2024 Palantir Technologies Inc.

8. Slide 8: New five-year, up to $100 million Maven Smart System contract

   Q3 Business Update In Q3, Palantir signed a new five-year, up to $100 million contract to expand Maven Smart System AI/ML capabilities across the US military services. Read more “This partnership is tantamount to ensuring that we keep America safe and ready.” Frank Whitworth, Vice Admiral, National

9. Slide 9: Introducing Palantir's Visual Navigation (VNav)

   Q3 Business Update Introducing Palantir’s Visual Navigation (VNav) VNav brings Palantir intelligence and software onboard to help support autonomous drone missions in GPS-compromised areas, providing accurate navigation independent of GPS or radio control signals. Read more © 2024 Palantir Technolog

10. Slide 10: Organizations Quantify Their Exceptionalism Through AIP

    Q3 Business Update Organizations Quantify Their Exceptionalism Through AIP Implemented over ten Built an AIP inventory workflow “We're getting patients home business use cases in just nine in three months that generated faster to their families and months with Palantir, $30 million in savings and ba

11. Slide 11: Q3 2024 Financials

    Q3 ©2024 Palantir Technologies Inc. 2024 Financials

12. Slide 12: US commercial continues to accelerate in Q3 2024 alongside AIP revolution

    Q3 Financials US commercial continues to accelerate in Q3 2024 alongside AIP revolution +54% Y/Y +77% Y/Y +73% Y/Y US Commercial Revenue US Commercial Customer Count US Commercial Remaining Deal Value +13% Q/Q +9% Q/Q +7% Q/Q US Commercial Revenue US Commercial Customer Count US Commercial Remaining

13. Slide 13: GAAP Net Income

    Q3 Financials GAAP Net Income Our Q3 2024 GAAP earnings per share was $0.06, up $0.03 Y/Y. $150.0M $143.5M $134.1M $125.0M $93.4M $100.0M $105.5M $75.0M $71.5M $50.0M $25.0M $—M Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 © 2024 Palantir Technologies Inc.

14. Slide 14: GAAP Operating Income

    Q3 Financials GAAP Operating Income Our Q3 2024 GAAP operating margin was 16%, up 900 basis points Y/Y. $120.0M $113.1M $105.3M $100.0M $80.0M $65.8M $80.9M $60.0M $40.0M $40.0M $20.0M $—M Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 © 2024 Palantir Technologies Inc.

15. Slide 15: Rule of 40

    Q3 Financials Rule of 40 68% 70% 64% 65% 60% 57% 54% 55% 50% 46% 45% 42% 40% 40% 35% 38% // Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 © 2024 Palantir Technologies Inc.

16. Slide 16: US Revenue Growth

    Q3 Financials US Revenue Growth US revenue grew 44% Y/Y and 14% Q/Q, driven by acceleration in US $500M $499M commercial and US government. $450M +44% $400M $350M $345M $300M $250M // Q3 2023 Q3 2024 © 2024 Palantir Technologies Inc.

17. Slide 17: US Commercial and US Government Revenue Growth

    Q3 Financials US Commercial Revenue Growth US Government Revenue Growth $179M $180M $325M $320M $160M $300M +54% $140M $275M +40% $120M $116M $250M $229M $100M $225M $80M $200M // // Q3 2023 Q3 2024 Q3 2023 Q3 2024 US commercial revenue grew 54% Y/Y and 13% Q/Q US government revenue grew 40% Y/Y and

18. Slide 18: Commercial and Government Revenue Growth

    Q3 Financials Commercial Revenue Growth Government Revenue Growth $408M $325M $317M $410M $300M $380M +27% $350M +33% $275M $251M $320M $308M $250M $290M $225M $260M $200M $230M $175M $200M // // Q3 2023 Q3 2024 Q3 2023 Q3 2024 © 2024 Palantir Technologies Inc.

19. Slide 19: Total Revenue Growth

    Q3 Financials Total Revenue Growth Total revenue grew 30% Y/Y and 7% Q/Q, driven by the continued $800M acceleration of our US business. $726M $700M +30% $600M $558M $500M $400M // Q3 2023 Q3 2024 © 2024 Palantir Technologies Inc.

20. Slide 20: Total Revenue Growth excl. Strategic Commercial Contracts

    Q3 Financials Total Revenue Growth excl. Strategic Total revenue excluding strategic Commercial Contracts commercial contracts grew 32% $800M Y/Y and 7% Q/Q. $716M $700M +32% $600M $544M $500M $400M // Q3 2023 Q3 2024 © 2024 Palantir Technologies Inc.

21. Slide 21: Adjusted Operating Income and Margin

    Q3 Financials Q3 2024 adjusted operating income was We continue to invest aggressively in $276M, representing a margin of 38%. AIP and the US while driving operating $300M ADJUSTED OPERATING MARGIN leverage at scale. $276M $254M 38% $250M $226M 37% $209M 36% $200M 34% $163M $150M 29% $100M $50M Q3 2

22. Slide 22: US Commercial Customer Count

    Q3 Financials US Commercial Customer Count 330 +77% Y/Y 321 300 295 +9% +13% 270 262 240 +19% 221 210 +22% 181 180 150 // TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED SEP 30, 2023 DEC 31, 2023 MAR 31, 2024 JUN 30, 2024 SEP 30, 2024 © 2024 Palantir Technologies Inc.

23. Slide 23: Commercial Customer Count and Customer Count

    Q3 Financials Customer Count Commercial Customer Count 700 +39% Y/Y +51% Y/Y 498 629 500 467 593 +7% 600 554 +6% 427 +9% +7% 497 400 375 500 +11% 453 +14% +10% 330 +14% 400 300 300 200 200 100 100 TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED SEP

24. Slide 24: 104 deals closed of at least $1 million

    Q3 Financials During Q3 2024, we closed 104 deals of at least $1 million. 36of which were at least $5 million. 16 of which were at least $10 million. © 2024 Palantir Technologies Inc.

25. Slide 25: Cash from Operations and Adjusted Free Cash Flow

    Q3 Financials Cash from Operations and We ended Q3 2024 with Adjusted Free Cash Flow $4.6B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW $500M 60% MARGIN 58% MARGIN $435M in cash, cash equivalents, $420M and US Treasury securities $400M and no debt. $300M $200M 25% MARGIN 24% MARGIN $141M $133M $100M

26. Slide 26: Q4 2024 and FY 2024 Guidance

    Q3 Financials Q4 2024 FY 2024 For fourth quarter 2024, we expect: For full year 2024, we expect: Revenue of between Revenue of between $767 million — $771 million. $2.805 billion — $2.809 billion. Adjusted income from operations of between US commercial revenue in excess of $298 million — $302 milli

27. Slide 27: Q3 2024 Appendix

    Q3 ©2024 Palantir Technologies Inc. 2024 Appendix

28. Slide 28: Additional Metrics and Notes

    Appendix Additional Metrics and Notes ($ BILLIONS) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Total RPO $ 0.99 $ 1.24 $ 1.30 $ 1.37 $ 1.57 Short-Term RPO $ 0.56 $ 0.64 $ 0.69 $ 0.69 $ 0.73 Long-Term RPO $ 0.43 $ 0.60 $ 0.61 $ 0.68 $ 0.84 ($ MILLIONS) Billings $ 550 $ 605 $ 625 $ 718 $ 823 Net dollar re

29. Slide 29: Revenue Excluding Strategic Commercial Contracts

    Appendix Revenue Excluding Strategic Commercial Contracts ($ THOUSANDS) Q3 2023 Q3 2024 Revenue $ 558,159 $ 725,516 Less: Revenue from Strategic Commercial Contracts 14,650 9,628 Revenue Excluding Strategic Commercial Contracts $ 543,509 $ 715,888 © 2024 Palantir Technologies Inc.

30. Slide 30: Reconciliation of Rule of 40

    Appendix Reconciliation of Rule of 40 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Year-Over-Year Revenue Growth 18% 18% 13% 17% 20% 21% 27% 30% Adjusted Operating Margin 22% 24% 25% 29% 34% 36% 37% 38% Rule of 40 40% 42% 38% 46% 54% 57% 64% 68% © 2024 Palantir Technologies Inc.

31. Slide 31: Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow

    Appendix Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue ($ THOUSANDS) Q3 2023 Q3 2024 T TM Q3 2024 Cash Flow from Operating Activities $ 133

32. Slide 32: Reconciliation of Gross Profit to Adjusted Gross Profit

    Appendix Reconciliation of Gross Profit to Adjusted Gross Profit & Adjusted Gross Margin Excluding Stock-Based Compensation Adjusted gross margin is calculated as adjusted gross profit divided by revenue ($ THOUSANDS) Q3 2023 Q3 2024 Gross Profit $ 450,237 $ 578,877 Add: Stock-Based Compensation 7,8

33. Slide 33: Reconciliation of Income from Operations to Adjusted Operating Income

    Appendix Reconciliation of Income from Operations to Adjusted Operating Income and Adjusted Operating Margin Excluding Stock-Based Compensation and Related Employer Payroll Taxes ($ THOUSANDS) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Income From Operations $ 39,983 $ 65,794 $ 80,881 $ 105,339 $ 113,1

34. Slide 34: Reconciliation of GAAP EPS to Adjusted EPS, Diluted

    Appendix Reconciliation of GAAP Earnings Per Share, Diluted to Adjusted Earnings Per Share, Diluted (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Q3 2023 Q3 2024 Net Income Attributable to Common Stockholders $ 71,505 $ 143,525 Add / (Less): Stock-Based Compensation 114,380 142,425 Employer Payro

35. Slide 35: Reconciliation of Revenue to Billings

    Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Revenue $ 558,159 $ 608,350 $ 634,338 $ 678,134 $ 725,516 Change in Contract Liabilities (8,199) (3,354) (9,051) 39,934 97,924 Billings $ 549,960 $ 604,996 $ 625,287 $ 718,068 $ 823,440 © 2024 Palant

36. Slide 36: Reconciliation of Cost of Revenue and Operating Expenses to Adjusted Expenses

    Appendix Reconciliation of Cost of Revenue and Total Operating Expenses to Adjusted Expenses ($ THOUSANDS) Q3 2023 Q2 2024 Q3 2024 Total Expenses $ 518,176 $ 572,795 $ 612,376 Less: Stock-Based Compensation 114,380 141,764 142,425 Employer Payroll Taxes Related to Stock-Based Compensation 8,909 6,46

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