Palantir Technologies Inc. · NASDAQ:PLTR

Palantir Technologies — Q1 2023 Earnings Presentation

29 slides from Palantir Technologies's earnings presentation, May 8, 2023

  1. Slide 1: Q1 2023 Business Update

    Q1 ©2023 Palantir Technologies Inc. 2023 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: Q1 2023 Highlights

    © 2023 Palantir Technologies Inc. Q1 Business Update Q1 2023 Highlights Second consecutive quarter of GAAP net income profitability; GAAP EPS of $0.01 We achieved GAAP operating profitability for the first time in our company’s history GAAP operating margin of 1%, up 1,000 basis points Y/Y; Adjusted

  4. Slide 4: Palantir is a worldwide leader in Artificial Intelligence

    Q1 Business Update THE FORRESTER WAVE™ Al/ML Platforms Q3 2022 Report Palantir is a worldwide leader in Artificial Intelligence The 2022 Forrester Wave™ for AI/ML Platforms names Palantir as a leader. In an assessment of the top vendors in the market, Palantir Foundry received the highest possible s

  5. Slide 5: Introducing AIP

    Q1 Business Update —— INTRODUCING AIP Introducing AIP P I Artificial Intelligence Platform empowers A organizations to activate large language models safely and securely. © 2023 Palantir Technologies Inc. Coming Soon

  6. Slide 6: AIP architecture: Ontology, Foundry/Gotham, LLMs

    Q1 Business Update —— INTRODUCING AIP Ontology + your existing Foundry Palantir-integrated data store /Gotham + the entire Palantir application ecosystem LLMs + third-party LLMs and more © 2023 Palantir Technologies Inc. Coming Soon

  7. Slide 7: AIP for Defense and AIP for Business

    Q1 Business Update —— INTRODUCING AIP INTRODUCING: INTRODUCING: Artificial Intelligence Artificial Intelligence Platform for Defense Platform for Business Unleash the power of LLMs and cutting-edge AI for defense Super-charge your private network with LLMs, subject and military organizations on your

  8. Slide 8: Q1 Financials

    Q1 ©2023 Palantir Technologies Inc. 2023 Financials

  9. Slide 9: GAAP net income profitability for the second consecutive quarter

    Q1 Financials —— GAAP NET INCOME PROFITABILITY Q1 2023 GAAP earnings per We achieved GAAP net share of $0.01, up $0.06 Y/Y income profitability for the second consecutive quarter. GAAP EPS $0.05 $0.01 $0.01 $ $(0.05) $(0.05) $(0.06) $(0.10) $(0.09) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 © 2023 Pala

  10. Slide 10: GAAP operating profitability for the first time

    Q1 Financials —— GAAP OPERATING PROFITABILITY GAAP Income from Operations We achieved GAAP operating profitability for the first time in our company’s history, $10.0M $4.1M generating GAAP income $ from operations of $4 million. ($10.0M) ($20.0M) ($17.8M) ($30.0M) ($39.4M) ($41.7M) ($40.0M) ($50.0M)

  11. Slide 11: US business generated revenue of $337M

    Q1 Financials —— US REVENUE GROWTH US Revenue Growth US business generated revenue of $400M $337M $350M $300M $273M +23% $337M for the three months ended March 31, 2023. $250M $200M $150M $100M $50M $—M Q1 2022 Q1 2023 © 2023 Palantir Technologies Inc.

  12. Slide 12: US Commercial and US Government Revenue Growth

    Q1 Financials —— US BUSINESS PERFORMANCE US Commercial Revenue Growth US Government Revenue Growth $125M $250M $230M $107M +22% $100M $85M +26% $200M $188M $75M $150M $50M $100M $25M $50M Q1 2022 Q1 2023 Q1 2022 Q1 2023 © 2023 Palantir Technologies Inc.

  13. Slide 13: Segment Growth: Government and Commercial Revenue

    Q1 Financials —— SEGMENT GROWTH Government Revenue Growth Commercial Revenue Growth $300M $289M $250M $236M +20% $250M $242M $205M +15% $200M $200M $150M $150M $100M $100M $50M $50M Q1 2022 Q1 2023 Q1 2022 Q1 2023 © 2023 Palantir Technologies Inc.

  14. Slide 14: Total Revenue Growth and Top 20 Customer Revenue

    Q1 Financials —— TOTAL REVENUE GROWTH Total Revenue Growth Average TTM Revenue per Top 20 Customer $60M $600M $525M $51M $50M $45M +14% $500M $446M +18% $400M $40M $300M $30M $200M $20M $100M $10M Q1 2022 Q1 2023 Q1 2022 Q1 2023 Q1 2023 NET DOLLAR RETENTION OF 111% Average TTM revenue per customer i

  15. Slide 15: Customer Count

    Q1 Financials —— CUSTOMER COUNT Commercial Customer Count Our total customer count grew +41% year-over-year in Q1 2023. 300 280 +41% Y/Y 260 400 391 250 367 228 +7% 350 337 203 304 +9% 200 184 300 277 +11% +10% 250 150 200 100 150 100 50 50 TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED

  16. Slide 16: Total Contract Value Closed and Billings

    Q1 Financials —— TOTAL CONTRACT VALUE CLOSED & BILLINGS Total Contract Value Billings $397M $700M $400M $614M $350M $600M +60% +25% $300M $490M $500M $250M $248M $400M $200M $300M $150M $200M $100M $100M $50M Q1 2022 Q1 2023 Q1 2022 Q1 2023 Total contract value (“TCV”) reflects the values of contrac

  17. Slide 17: 64 deals closed

    Q1 Financials —— DEALS CLOSED © 2023 Palantir Technologies Inc. The value of deals closed reflects the total contract value of contracts that have been entered into with, or awarded by, our government and commercial customers and includes existing contractual obligations and unexercised contract opt

  18. Slide 18: Adjusted Gross Margin

    Q1 Financials —— ADJUSTED GROSS MARGIN ADJ. GROSS MARGIN 82% 81% 81% 81% 80% Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 © 2023 Palantir Technologies Inc. Adjusted gross margin excludes stock-based compensation. Please see the appendix for a reconciliation of this non-GAAP financial measure to the most

  19. Slide 19: Cash from Operations and Adjusted Free Cash Flow

    Q1 Financials —— CASH FROM OPERATIONS AND ADJUSTED FREE CASH FLOW Cash from Operations and We ended Q1 2023 with Adjusted Free Cash Flow $2.9B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW $200M $187M $189M in cash, cash equivalents, and US treasury securities $150M and no debt. As of March 31, 2023,

  20. Slide 20: Adjusted Operating Income and Margin

    Q1 Financials —— ADJUSTED OPERATING INCOME AND MARGIN Q1 2023 adjusted operating income was We are committed to profitable $125M, representing a margin of 24% growth and will continue to ADJUSTED OPERATING MARGIN focus on investing in areas $150M critical to our business. $125M $125M $117M $114M $10

  21. Slide 21: Guidance

    Q1 Financials —— GUIDANCE Q2 2023 FY 2023 For second quarter 2023, we expect: For full year 2023, we expect: Revenue of between Revenue of between $528 million - $532 million. $2.185 billion - $2.235 billion. Adjusted income from operations of between Adjusted income from operations of between $118

  22. Slide 22: Q1 Appendix

    Q1 ©2023 Palantir Technologies Inc. 2023 Appendix

  23. Slide 23: Additional Metrics and Notes

    Appendix Additional Metrics and Notes ($ MILLIONS) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Total RPO $ 1,167 $ 1,202 $ 1,254 $ 973 $ 936 Short-Term RPO $ 490 $ 524 $ 555 $ 517 $ 529 Long-Term RPO $ 677 $ 678 $ 699 $ 456 $ 407 Billings $ 490 $ 396 $ 509 $ 387 $ 614 Note: Of the $7.7 million of FY 202

  24. Slide 24: Reconciliation of Cash Flow from Operations 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) Q1 2022 Q1 2023 Cash Flow from Operating Activities $ 35,477 $ 187,376

  25. Slide 25: 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) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Gross Profit $ 351,954 $ 370,786 $ 370,269

  26. Slide 26: Reconciliation of Income from Operations to Adjusted Operating Income

    Appendix Reconciliation of Income (Loss) from Operations to Adjusted Operating Income and Adjusted Operating Margin Excluding Stock-Based Compensation and Related Employer Payroll Taxes ($ THOUSANDS) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Income (Loss) From Operations $ (39,439) $ (41,745) $ (62,19

  27. Slide 27: Reconciliation of GAAP EPS to Adjusted EPS

    Appendix Reconciliation of GAAP Net Earnings (Loss) Per Share, Diluted to Adjusted Earnings Per Share, Diluted (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Q1 2022 Q1 2023 Net Income (Loss) Attributable to Common Stockholders $ (101,379) $ 16,802 Add / (Less): Stock-Based Compensation 149,323 11

  28. Slide 28: Reconciliation of Revenue to Billings

    Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Revenue $ 446,357 $ 473,010 $ 477,880 $ 508,624 $ 525,186 Change in Contract Liabilities 43,612 (76,927) 30,807 (121,589) 88,614 Billings $ 489,969 $ 396,083 $ 508,687 $ 387,035 $ 613,800 © 2023 Pala

  29. Slide 29: Reconciliation of Expenses to Adjusted Expenses

    Appendix Reconciliation of Cost of Revenue and Total Operating Expenses to Adjusted Expenses ($ THOUSANDS) Q4 2022 Q1 2023 Total Expenses $ 526,450 $ 521,071 Less: Stock-Based Compensation 129,398 114,714 Employer Payroll Taxes Related to Stock-Based Compensation 2,692 6,285 Adjusted Expenses $ 394,

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