Slide 1: Q2 2023 Business Update
Q2 ©2023 Palantir Technologies Inc. 2023 Business Update
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
Slide 3: Q2 2023 Highlights
© 2023 Palantir Technologies Inc. Q2 Business Update Q2 2023 Highlights Third consecutive quarter of GAAP profitability; net income profitability; GAAP EPS ofGAAP $0.01EPS of $0.01 Second consecutive quarter of GAAP operating profitability GAAP operating margin of 2%, up 1,100 basis points Y/Y Adjus
Slide 4: H1 2023 Highlights
© 2023 Palantir Technologies Inc. Q2 Business Update H1 2023 Highlights $1.1 billion $45 million $14 million Revenue GAAP Net Income GAAP Operating Income $285 million $260 million Adjusted Free Cash Flow Adjusted Operating Income 27% 25% Adjusted Free Cash Flow Margin Adjusted Operating Margin Adju
Slide 5: Our Oppenheimer Moment: The Creation of A.I. Weapons
© 2023 Palantir Technologies Inc. Q2 Business Update Our Oppenheimer Moment: The Creation of A.I. Weapons by Palantir CEO Alex Karp July 25, 2023 This is an arms race of a different kind, and it has begun. Read the entire essay at The New York Times © 2023 Palantir Technologies Inc.
Slide 6: AIPCon: Highlighting our new platform, AIP
Q2 Business Update —— AIPCON HIGHLIGHTS AIPCon: Highlighting our new platform, AIP © 2023 Palantir Technologies Inc.
Slide 7: AIPCon highlights: end-to-end solution keeping humans in the loop
Q2 Business Update —— AIPCON HIGHLIGHTS We're developing an end-to-end solution that brings everything together, [...] it provides control that keeps humans in the loop every step of the way. Shannon Miller EVP & President, Divergent Solutions © 2023 Palantir Technologies Inc.
Slide 8: AIPCon highlights: Foundry and AIP build quickly
Q2 Business Update —— AIPCON HIGHLIGHTS The beauty of having Foundry and AIP is that you can build this really, really quickly. We built [an application powered by LLMs] in a matter of days and iterated in a couple of weeks. Bernardo Rodriguez Chief Digital Officer © 2023 Palantir Technologies Inc.
Slide 9: AIPCon highlights: solving a hard problem with Palantir and Apollo
Q2 Business Update —— AIPCON HIGHLIGHTS We are solving a real hard problem that I’m convinced is an existential threat to me as an individual and my company...[which is] why I’m so happy to be working with Palantir and Apollo as a platform. Mike Younkers Sr. Director, Engineering, Government Solutio
Slide 10: AIPCon highlights: four hour process cut to 15 minutes
Q2 Business Update —— AIPCON HIGHLIGHTS Within one month, we were able to give [our teams] the tools that took that four hour process and condensed it down to 15 minutes. Justin Herman VP & Chief Information Officer © 2023 Palantir Technologies Inc.
Slide 11: Novartis CEO names Palantir partnership key accelerator for R&D
Q2 Business Update Novartis CEO Vas Narasimhan names partnership with Palantir as key accelerator for pharmaceutical R&D. We have one fundamental advantage versus our peers: five years ago, we created an integrated data lake we called data42 with our partners at Palantir. We're using that data lake
Slide 12: Our software continues to be in the fight
Q2 Business Update Our software continues to be in the fight. In May, we announced a multi-year contract with United States Special Operations Command (SOCOM) worth up to $463 million to support their AI-enabled mission command platform. © 2023 Palantir Technologies Inc.
Slide 13: Congratulations to Elina Svitolina on Wimbledon semi-finals
Q2 Business Update Congratulations to Elina Svitolina on reaching the Wimbledon semi-finals and on her continued success. I am thankful for the work [Palantir is] doing in helping my government continue its fight to peacefully exist within our own borders. © 2023 Palantir Technologies Inc.
Slide 14: AIPCon 2 and S4G Summit
Q2 Business Update AIPCon➁ S4G Summit September 14th, 2023 September 21st, 2023 AIPCon convenes Palantir customers at all stages of their AI journey. The inaugural Software for Government (S4G) Summit will assemble Tune in to hear keynotes, demos, and master classes from customers as representatives
Slide 15: Q2 2023 Financials
Q2 ©2023 Palantir Technologies Inc. 2023 Financials
Slide 16: We achieved GAAP profitability for the third consecutive quarter
Q2 Financials Q2 2023 GAAP earnings per We achieved GAAP share of $0.01, up $0.10 Y/Y profitability for the third consecutive quarter. GAAP EPS $0.05 $0.01 $ $(0.05) $(0.10) $(0.09) Q2 2022 Q2 2023 © 2023 Palantir Technologies Inc.
Slide 17: We achieved GAAP operating profitability for the second consecutive quarter
Q2 Financials GAAP Operating Income (Loss) We achieved GAAP operating $20.0M profitability for the second $10.1M consecutive quarter. $10.0M $4.1M $ ($10.0M) ($20.0M) ($17.8M) ($30.0M) ($41.7M) ($40.0M) ($50.0M) ($60.0M) ($62.2M) ($70.0M) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 © 2023 Palantir Techn
Slide 18: US Commercial and US Government Revenue Growth
Q2 Financials US Commercial Revenue Growth US Government Revenue Growth $225M $105M $225M $103M +10% $205M $95M +20% $200M $86M $85M $175M $75M $150M $... $... Q2 2022 Q2 2023 Q2 2022 Q2 2023 © 2023 Palantir Technologies Inc.
Slide 19: Government and Commercial Revenue Growth
Q2 Financials Government Revenue Growth Commercial Revenue Growth $302M $300M $260M +15% $275M $263M $232M $230M $250M +10% $210M $225M $200M $200M $... $... Q2 2022 Q2 2023 Q2 2022 Q2 2023 © 2023 Palantir Technologies Inc.
Slide 20: Total Revenue Growth and Average TTM Revenue per Top 20 Customers
Q2 Financials Total Revenue Growth Average TTM Revenue per Top 20 Customers $55M $550M $53M $533M $500M +13% $50M +15% $473M $46M $450M $45M $400M $40M $350M $35M $... $... Q2 2022 Q2 2023 Q2 2022 Q2 2023 Q2 2023 NET DOLLAR RETENTION OF 110% Average TTM revenue per customer is defined as (a) the Com
Slide 21: Adjusted Gross Margin
Q2 Financials ADJ. GROSS MARGIN 81% 82% 81% 81% 80% Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 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 directly comparable GAAP
Slide 22: Adjusted operating income and margin
Q2 Financials Q2 2023 adjusted operating income was We are committed to profitable $135M, representing a margin of 25% growth and will continue to ADJUSTED OPERATING MARGIN focus on investing in areas $150M critical to our business. $135M $125M $125M 25% $114M $108M 24% 22% $100M 23% $81M $75M 17% $
Slide 23: Customer Count and Billings
Q2 Financials Customer Count Billings $700M 425 +38% Y/Y 421 $603M 400 391 $600M +8% 375 367 +7% $500M +52% 350 337 +9% $396M $400M 325 304 300 +11% $300M 275 $200M 250 $100M ... TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED Q2 2022 Q2 2023 JUN 30, 2022 SEP 30, 2022 DEC 31, 2022 MAR 31, 2023 JUN
Slide 24: 66 deals closed of at least $1 million
© 2023 Palantir Technologies Inc. Q2 Financials 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 options During Q2 2
Slide 25: $3.1B in cash; Cash from Operations and Adjusted Free Cash Flow
Q2 Financials Cash from Operations and We ended Q2 2023 with Adjusted Free Cash Flow $3.1B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW $100M $96M $90M in cash, cash equivalents, and short-term US treasury securities and no debt. $75M $62M $61M $50M Q2 2022 Q2 2023 Q2 2022 Q2 2023 © 2023 Palantir Te
Slide 26: Q3 2023 and FY 2023 guidance
Q2 Financials Q3 2023 FY 2023 For third quarter 2023, we expect: For full year 2023: Revenue of between We are raising our revenue guidance to in excess of $553 million - $557 million. $2.212 billion. Adjusted income from operations of between We are raising our adjusted income from operations guida
Slide 27: Q2 2023 Appendix
Q2 ©2023 Palantir Technologies Inc. 2023 Appendix
Slide 28: Additional Metrics and Notes
Appendix Additional Metrics and Notes ($ MILLIONS) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Total RPO $ 1,202 $ 1,254 $ 973 $ 936 $ 968 Short-Term RPO $ 524 $ 555 $ 517 $ 529 $ 558 Long-Term RPO $ 678 $ 699 $ 456 $ 407 $ 410 Billings $ 396 $ 509 $ 387 $ 614 $ 603 Remaining performance obligations (”R
Slide 29: 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) Q2 2022 Q2 2023 H1 2022 H1 2023 Cash Flow from Operating Activities $
Slide 30: Reconciliation of Gross Profit to Adjusted Gross Profit and Margin
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 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Gross Profit $ 370,786 $ 370,269 $ 404,313
Slide 31: 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) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 H1 2022 H1 2023 Income (Loss) From Operations $ (41,745) $ (
Slide 32: Reconciliation of GAAP EPS to Adjusted EPS, Diluted
Appendix Reconciliation of GAAP Net Earnings (Loss) Per Share, Diluted to Adjusted Earnings (Loss) Per Share, Diluted (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Q2 2022 Q2 2023 Net Income (Loss) Attributable to Common Stockholders $ (179,329) $ 28,127 Add / (Less): Stock-Based Compensation 145
Slide 33: Reconciliation of Revenue to Billings
Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Revenue $ 473,010 $ 477,880 $ 508,624 $ 525,186 $ 533,317 Change in Contract Liabilities (76,927) 30,807 (121,589) 88,614 69,952 Billings $ 396,083 $ 508,687 $ 387,035 $ 613,800 $ 603,269 © 2023 Pala
Slide 34: Reconciliation of Expenses to Adjusted Expenses
Appendix Reconciliation of Cost of Revenue and Total Operating Expenses to Adjusted Expenses ($ THOUSANDS) Q2 2022 Q1 2023 Q2 2023 Total Expenses $ 514,755 $ 521,071 $ 523,243 Less: Stock-Based Compensation 145,769 114,714 114,201 Employer Payroll Taxes Related to Stock-Based Compensation 3,825 6,28