Palantir Technologies Inc. · NASDAQ:PLTR

Palantir Technologies — Q2 2024 Earnings Presentation

38 slides from Palantir Technologies's earnings presentation, Aug 5, 2024

1. Slide 1: Q2 2024 Business Update

   Q2 ©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: Q2 2024 Highlights

   Q2 Business Update Q2 2024 Highlights US commercial revenue grew +55% Y/Y and +6% Q/Q to $159 million US government revenue grew +24% Y/Y and +8% Q/Q to $278 million Revenue grew +27% Y/Y and +7% Q/Q to $678 million; +30% Y/Y and +10% Q/Q excluding Strategic Commercial Contracts Closed 27 deals over

4. Slide 4: Go beyond chat

   Q2 Business Update Go beyond chat © 2024 Palantir Technologies Inc.

5. Slide 5: Taking customers across the chasm from prototype to production

   Q2 Business Update Go beyond chat We are focused on taking our customers across the chasm from prototype to production. Since launching AIP in mid-2023, we have completed AIP Bootcamps with 1,025+ organizations in the United States and around the world. “Foundry and AIP have been “By creating alert

6. Slide 6: Prototype to production: accelerating the US commercial customer journey

   Q2 Business Update Prototype to production: accelerating the US commercial customer journey Large Wholesale Leading Global Leading Convenience Insurance Brokerage Firm Life Sciences Company Store Chain 16 Days to 7-Figure, 2-Year Deal <6 Weeks to 7-Figure ACV Deal 25 Days to Paid Pilot and Conversio

7. Slide 7: Empowering maintenance technicians to diagnose and fix equipment problems

   Q2 Business Update Empowering maintenance technicians to diagnose and fix equipment problems faster — increasing line uptime, decreasing rejects, and ensuring more efficient production of billions of EV car batteries each year. Learn more © 2024 Palantir Technologies Inc.

8. Slide 8: Tampa General Hospital partners with Palantir on AI software

   Q2 Business Update Tampa General Hospital partners with Palantir on AI software to improve bed placement, patient scheduling, staffing allocation, and more. “We’ve reduced patient length of stay by 30%...we’ve also saved hundreds of additional lives through this work.” John Couris, Scott Arnold, Chi

9. Slide 9: Starlab will leverage Palantir Foundry and AIP

   Q2 Business Update Starlab will leverage Palantir Foundry and AIP in its commercial space station to drive value in its in-house payload management system for International Space Station customers. Learn more © 2024 Palantir Technologies Inc.

10. Slide 10: How Palantir AIP supports Polaris in its mission

    Q2 Business Update HOW PALANTIR AIP ADVANCING THE Palantir’s AIP empowers MISSION➀ Polaris to combat human trafficking with real-time SUPPORTS (↙) POLARIS IN ITS WHILE PROTECTING➁ data analysis and (↘) AI-powered insights. ANTI-HUMAN- TRAFFICKING WORK SENSITIVE DATA➂ Learn more PALANTIR → PALANTIR.C

11. Slide 11: New five-year, $480 million CDAO contract

    Q2 Business Update In Q2, Palantir signed a new five-year, $480 million contract with the Chief Digital and Artificial Intelligence Office (CDAO) to scale AI/ML capabilities across the US Department of Defense. Learn more © 2024 Palantir Technologies Inc.

12. Slide 12: Deploying Mission Manager: Infrastructure for Big-Tent Software

    Q2 Business Update “Open DAGIR brings the best industry has to offer to the Department. Deploying It allows us to ensure enduring access to government-owned, contractor-operated technology stacks and infrastructure and retain data rights while also maximizing the ability of other companies to Missio

13. Slide 13: Q2 Financials

    Q2 ©2024 Palantir Technologies Inc. 2024 Financials

14. Slide 14: US commercial continues to accelerate in Q2 2024 alongside AIP revolution

    Q2 Financials US commercial continues to accelerate in Q2 2024 alongside AIP revolution +55% Y/Y +83% Y/Y +103% Y/Y US Commercial Revenue US Commercial Customer Count US Commercial Remaining Deal Value +6% Q/Q +13% Q/Q +11% Q/Q US Commercial Revenue US Commercial Customer Count US Commercial Remaini

15. Slide 15: GAAP profitability for the seventh consecutive quarter

    Q2 Financials GAAP Net Income We achieved GAAP profitability for the seventh consecutive quarter. $150.0M $134.1M Our Q2 2024 GAAP earnings per $125.0M share was $0.06, up $0.05 Y/Y. $100.0M $105.5M $93.4M $75.0M $71.5M $50.0M $30.9M $28.1M $25.0M $16.8M $—M Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q

16. Slide 16: GAAP operating profitability for the sixth consecutive quarter

    Q2 Financials GAAP Operating Income (Loss) We achieved GAAP operating profitability for the $120.0M $105.3M sixth consecutive quarter. $100.0M Our Q2 2024 GAAP $80.0M $80.9M operating margin was 16%, $65.8M up 1,400 basis points Y/Y. $60.0M $40.0M $40.0M $20.0M $4.1M $10.1M ($—M) ($20.0M) ($17.8M) (

17. Slide 17: Rule of 40

    Q2 Financials Rule of 40 64% 65% 60% 57% 54% 55% 50% 46% 45% 42% 40% 39% 38% 40% 35% // Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 © 2024 Palantir Technologies Inc. Rule of 40 refers to the sum of our revenue growth rate year-over-year and our adjusted operating margin for each

18. Slide 18: Commercial Revenue Growth and US Commercial Revenue Growth

    Q2 Financials Commercial Revenue Growth US Commercial Revenue Growth $325M $160M $159M $307M $300M $140M $275M +33% +55% $120M $250M $232M $103M $225M $100M $200M $80M $175M // // Q2 2023 Q2 2024 Q2 2023 Q2 2024 © 2024 Palantir Technologies Inc.

19. Slide 19: Government Revenue Growth and US Government Revenue Growth

    Q2 Financials Government Revenue Growth US Government Revenue Growth $375M $371M $300M $350M $278M $325M +23% $275M $302M $300M $250M +24% $275M $225M $225M $250M $200M $225M $175M $200M // // Q2 2023 Q2 2024 Q2 2023 Q2 2024 © 2024 Palantir Technologies Inc.

20. Slide 20: US government revenue grew 24% Y/Y and 8% Q/Q

    Q2 Financials US Government Revenue Growth US government revenue grew $278M 24% Y/Y and 8% Q/Q, driven by $280M momentum in the Department +24% of Defense and favorable deal $240M $225M timing. $200M $160M $120M $80M $40M Q2 2023 Q2 2024 © 2024 Palantir Technologies Inc.

21. Slide 21: Total revenue grew 27% Y/Y and 7% Q/Q

    Q2 Financials Total Revenue Growth Total revenue grew 27% Y/Y and 7% Q/Q, driven by the $700M $678M continued acceleration of $650M our US business. $600M +27% $550M $533M $500M $450M $400M $350M $300M // Q2 2023 Q2 2024 © 2024 Palantir Technologies Inc.

22. Slide 22: Total revenue excluding strategic commercial contracts grew 30% Y/Y

    Q2 Financials Total Revenue Growth excl. Strategic Total revenue excluding Commercial Contracts strategic commercial contracts $700M $669M grew 30% Y/Y and 10% Q/Q. $650M $600M +30% $550M $514M $500M $450M $400M $350M $300M // Q2 2023 Q2 2024 © 2024 Palantir Technologies Inc.

23. Slide 23: Investing aggressively in AIP and the US while driving operating leverage

    Q2 Financials Q2 2024 adjusted operating income was We continue to invest $254M, representing a margin of 37%. aggressively in AIP and the $275M ADJUSTED OPERATING MARGIN $254M US while driving operating $250M 37% leverage at scale. $225M $226M $209M 36% $200M 34% $175M $163M $150M 29% $135M $125M 2

24. Slide 24: US Commercial Customer Count

    Q2 Financials US Commercial Customer Count +83% Y/Y 300 295 +13% 270 262 240 +19% 221 210 +22% 181 180 161 +12% 150 // TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED JUN 30, 2023 SEP 30, 2023 DEC 31, 2023 MAR 31, 2024 JUN 30, 2024 © 2024 Palantir Technologies Inc.

25. Slide 25: Customer Count and Commercial Customer Count

    Q2 Financials Customer Count Commercial Customer Count +41% Y/Y 490 +55% Y/Y 600 593 467 554 +7% 427 497 430 500 +11% +9% 453 421 +10% 375 +8% 370 +14% 400 330 +14% 300 310 302 +9% 200 250 // // TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED JUN 3

26. Slide 26: 96 deals closed of at least $1 million

    © 2024 Palantir Technologies Inc. Q2 Financials During Q2 2024, we closed 96 deals of at least $1 million. 33 of which were at least $5 million. 27 of which were at least $10 million.

27. Slide 27: $4.0B in cash and cash flow metrics

    Q2 Financials Cash from Operations and We ended Q2 2024 with Adjusted Free Cash Flow $4.0B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW 22% MARGIN $160M 21% MARGIN $149M $144M in cash, cash equivalents, $140M and US treasury securities $120M and no debt. 17% MARGIN 18% MARGIN $96M $100M $90M $80M $6

28. Slide 28: Q2 Guidance: Q3 2024 and FY 2024

    Q2 Guidance Q3 2024 FY 2024 For third quarter 2024, we expect: For full year 2024, we expect: Revenue of between Revenue of between $697 million — $701 million. $2.742 billion — $2.750 billion. Adjusted income from operations of between US commercial revenue in excess of $233 million — $237 million.

29. Slide 29: Q2 2024 Appendix

    Q2 ©2024 Palantir Technologies Inc. 2024 Appendix

30. Slide 30: Additional Metrics and Notes

    Appendix Additional Metrics and Notes ($ BILLIONS) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Total RPO $ 0.97 $ 0.99 $ 1.24 $ 1.30 $ 1.37 Short-Term RPO $ 0.56 $ 0.56 $ 0.64 $ 0.69 $ 0.69 Long-Term RPO $ 0.41 $ 0.43 $ 0.60 $ 0.61 $ 0.68 ($ MILLIONS) Billings $ 603 $ 550 $ 605 $ 625 $ 718 Net dollar re

31. Slide 31: Revenue Excluding Strategic Commercial Contracts

    Appendix Revenue Excluding Strategic Commercial Contracts ($ THOUSANDS) Q2 2023 Q2 2024 Revenue $ 533,317 $ 678,134 Less: Revenue from Strategic Commercial Contracts 19,356 9,179 Revenue Excluding Strategic Commercial Contracts $ 513,961 $ 668,955 © 2024 Palantir Technologies Inc.

32. Slide 32: Reconciliation of Rule of 40

    Appendix Reconciliation of Rule of 40 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Year-Over-Year Revenue Growth 22% 18% 18% 13% 17% 20% 21% 27% Adjusted Operating Margin 17% 22% 24% 25% 29% 34% 36% 37% Rule of 40 39% 40% 42% 38% 46% 54% 57% 64% © 2024 Palantir Technologies Inc.

33. Slide 33: Reconciliation of Cash Flow 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) Q2 2023 Q2 2024 Cash Flow from Operating Activities $ 90,192 $ 144,187

34. Slide 34: 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) Q2 2023 Q2 2024 Gross Profit $ 426,418 $ 549,572 Add: Stock-Based Compensation 8,0

35. Slide 35: 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) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Income From Operations $ 10,074 $ 39,983 $ 65,794 $ 80,881 $ 105,33

36. Slide 36: 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) Q2 2023 Q2 2024 Net Income Attributable to Common Stockholders $ 28,127 $ 134,126 Add / (Less): Stock-Based Compensation 114,201 141,764 Employer Payro

37. Slide 37: Reconciliation of Revenue to Billings

    Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Revenue $ 533,317 $ 558,159 $ 608,350 $ 634,338 $ 678,134 Change in Contract Liabilities 69,952 (8,199) (3,354) (9,051) 39,934 Billings $ 603,269 $ 549,960 $ 604,996 $ 625,287 $ 718,068 © 2024 Palant

38. Slide 38: 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) Q2 2023 Q1 2024 Q2 2024 Total Expenses $ 523,243 $ 553,457 $ 572,795 Less: Stock-Based Compensation 114,201 125,651 141,764 Employer Payroll Taxes Related to Stock-Based Compensation 10,760 19,

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