Palantir Technologies Inc. · NASDAQ:PLTR

Palantir Technologies — Q1 2024 Earnings Presentation

33 slides from Palantir Technologies's earnings presentation, May 6, 2024

  1. Slide 1: Q1 2024 Business Update

    Q1 ©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: Q1 2024 Highlights

    Q1 Business Update Q1 2024 Highlights US commercial revenue grew +40% Y/Y and +14% Q/Q to $150 million Commercial revenue grew +27% Y/Y and +5% Q/Q to $299 million Revenue grew +21% Y/Y and +4% Q/Q to $634 million Closed 87 deals over $1 million US commercial customer count grew +69% Y/Y and +19% Q/

  4. Slide 4: Unchecked antisemitism at US universities mandates a response

    Q1 Unchecked antisemitism at US universities mandates a response. Last December, we initiated a program for all university students, regardless of background, who have been affected by or are concerned about safety on campus, inviting them to join Palantir as University Fellows. In light of the hist

  5. Slide 5: Palantir builds products to meet the moment

    Q1 Business Update Palantir builds products to meet the moment. © 2024 Palantir Technologies Inc.

  6. Slide 6: US Army awarded Palantir over $178M for TITAN

    Q1 Business Update In Q1, the US Army awarded Palantir over $178M to deliver TITAN Next Generation Deep-Sensing Capability. As the prime for the Army’s first AI-defined vehicle, Palantir will provide the critical foundation to correlate, fuse, and integrate sensor data for more advanced beyond-line-

  7. Slide 7: Palantir & the VA

    Q1 Business Update Palantir & the VA How data-driven acquisition identified over $90M in savings for the Department of Veterans Affairs in six months. Read more © 2024 Palantir Technologies Inc.

  8. Slide 8: Palantir & Oracle

    Q1 Business Update Palantir & Oracle Partnering to provide secure cloud and AI solutions that power businesses and governments around the world. Read more © 2024 Palantir Technologies Inc.

  9. Slide 9: AIP Bootcamps: Deploying Full Spectrum AI In Days

    Q1 Business Update —— AIP BOOTCAMPS AIP Bootcamps: Deploying Full Spectrum AI In Days “... these AIP bootcamps are like doing four months of work in one day...” Stephen Ecker → Vice President of Data & Analytics © 2024 Palantir Technologies Inc.

  10. Slide 10: AIP Bootcamps completed with 915+ organizations

    Q1 Business Update —— AIP BOOTCAMPS Since launching AIP in mid-2023, we have completed AIP Bootcamps with 915+ organizations in the United States and around the world. “We’re saving about $14M annually, “In less than four months, we created and it’s only deployed to a part of our something from POC

  11. Slide 11: Q1 2024 Financials

    Q1 ©2024 Palantir Technologies Inc. 2024 Financials

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

    Q1 Financials US commercial continues to accelerate in Q1 2024 alongside AIP revolution +40% Y/Y +69% Y/Y +74% Y/Y US Commercial Revenue US Commercial Customer Count US Commercial Remaining Deal Value +14% Q/Q +19% Q/Q +14% Q/Q US Commercial Revenue US Commercial Customer Count US Commercial Remaini

  13. Slide 13: GAAP profitability for the sixth consecutive quarter

    Q1 Financials GAAP Net Income (Loss) We achieved GAAP profitability for the sixth consecutive quarter. $120.0M $105.5M $93.4M Our Q1 2024 GAAP earnings per $71.5M share was $0.04, up $0.03 Y/Y. $60.0M $30.9M $16.8M $28.1M $ ($60.0M) ($120.0M) ($123.9M) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023

  14. Slide 14: GAAP operating profitability for the fifth consecutive quarter

    Q1 Financials GAAP Operating Income (Loss) We achieved GAAP $100.0M operating profitability for the $80.9M fifth consecutive quarter. $80.0M $65.8M $60.0M Our Q1 2024 GAAP $40.0M $40.0M operating margin was 13%, $10.1M up 1,200 basis points Y/Y. $20.0M $4.1M $ ($20.0M) ($17.8M) ($40.0M) ($60.0M) ($6

  15. Slide 15: Rule of 40

    Q1 Financials Rule of 40 60% 57% 54% 55% 49% 50% 46% 45% 42% 40% 40% 39% 38% 35% // Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 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 of t

  16. Slide 16: Commercial and US Commercial Revenue Growth

    Q1 Financials Commercial Revenue Growth US Commercial Revenue Growth $299M $300M $160M $150M $275M +27% $140M $250M $236M +40% $120M $225M $107M $200M $100M $175M $80M $150M Q1 2023 Q1 2024 Q1 2023 Q1 2024 © 2024 Palantir Technologies Inc.

  17. Slide 17: Government and US Government Revenue Growth

    Q1 Financials Government Revenue Growth US Government Revenue Growth $275M $350M $335M $257M $325M $250M +16% +12% $300M $230M $289M $225M $275M $250M $200M $225M $175M $200M Q1 2023 Q1 2024 Q1 2023 Q1 2024 © 2024 Palantir Technologies Inc.

  18. Slide 18: Total Revenue Growth

    Q1 Financials Total Revenue Growth Total revenue grew 21% Y/Y and 4% Q/Q, driven by the $650M $634M continued acceleration of our US commercial business. $600M +21% $550M $525M $500M $450M $400M $350M $300M Q1 2023 Q1 2024 © 2024 Palantir Technologies Inc.

  19. Slide 19: Adjusted operating income and margin

    Q1 Financials Q1 2024 adjusted operating income was We continue to invest $226M, representing a margin of 36% aggressively in AIP and the $250M ADJUSTED OPERATING MARGIN US while driving operating $225M $226M leverage at scale. $209M 36% $200M 34% $175M $163M $150M 29% $135M $125M $125M 25% 24% $100

  20. Slide 20: US Commercial Customer Count

    Q1 Financials US Commercial Customer Count +69% Y/Y 270 262 240 +19% 221 210 +22% 181 180 161 +12% 155 +4% 150 // TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED MAR 31, 2023 JUN 30, 2023 SEP 30, 2023 DEC 31, 2023 MAR 31, 2024 © 2024 Palantir Technologies Inc.

  21. Slide 21: Customer Count and Commercial Customer Count

    Q1 Financials Customer Count Commercial Customer Count +42% Y/Y 450 +53% Y/Y 600 427 554 497 400 500 +11% 453 375 +14% 421 +10% 400 391 +8% 350 +8% 330 +14% 302 300 300 280 +9% +8% 200 250 TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED MAR 31, 202

  22. Slide 22: 87 deals of at least $1 million

    © 2024 Palantir Technologies Inc. Q1 Financials During Q1 2024, we closed 87 deals of at least $1 million. 27 of which were at least $5 million. 15 of which were at least $10 million.

  23. Slide 23: $3.9B in cash and no debt; cash flow

    Q1 Financials Cash from Operations and We ended Q1 2024 with Adjusted Free Cash Flow $3.9B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW 36% MARGIN 36% MARGIN $200M $187M $189M in cash, cash equivalents, $175M and US treasury securities 23% MARGIN $149M and no debt. $150M 20% MARGIN $130M $125M $100M

  24. Slide 24: Q2 2024 and FY 2024 guidance

    Q1 Financials Q2 2024 FY 2024 For second quarter 2024, we expect: For full year 2024, we expect: Revenue of between Revenue of between $649 million — $653 million. $2.677 billion — $2.689 billion. Adjusted income from operations of between US commercial revenue in excess of $209 million — $213 milli

  25. Slide 25: Q1 2024 Appendix

    Q1 ©2024 Palantir Technologies Inc. 2024 Appendix

  26. Slide 26: Additional Metrics and Notes

    Appendix Additional Metrics and Notes ($ BILLIONS) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Total RPO $ 0.94 $ 0.97 $ 0.99 $ 1.24 $ 1.30 Short-Term RPO $ 0.53 $ 0.56 $ 0.56 $ 0.64 $ 0.69 Long-Term RPO $ 0.41 $ 0.41 $ 0.43 $ 0.60 $ 0.61 ($ MILLIONS) Billings $ 614 $ 603 $ 550 $ 605 $ 625 Net dollar re

  27. Slide 27: Rule of 40

    Appendix Rule of 40 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Year-Over-Year Revenue Growth 26% 22% 18% 18% 13% 17% 20% 21% Adjusted Operating Margin 23% 17% 22% 24% 25% 29% 34% 36% Rule of 40 49% 39% 40% 42% 38% 46% 54% 57% © 2024 Palantir Technologies Inc.

  28. Slide 28: 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 2023 Q1 2024 Cash Flow from Operating Activities $ 187,376 $ 129,57

  29. Slide 29: 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 2023 Q1 2024 Gross Profit $ 417,541 $ 518,082 Add: Stock-Based Compensation 9,1

  30. Slide 30: 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) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Income From Operations $ 4,115 $ 10,074 $ 39,983 $ 65,794 $ 80,881

  31. Slide 31: Reconciliation of GAAP EPS to Adjusted EPS

    Appendix Reconciliation of GAAP Earnings Per Share, Diluted to Adjusted Earnings Per Share, Diluted (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Q1 2023 Q1 2024 Net Income Attributable to Common Stockholders $ 16,802 $ 105,530 Add / (Less): Stock-Based Compensation 114,714 125,651 Employer Payro

  32. Slide 32: Reconciliation of Revenue to Billings

    Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Revenue $ 525,186 $ 533,317 $ 558,159 $ 608,350 $ 634,338 Change in Contract Liabilities 88,614 69,952 (8,199) (3,354) (9,051) Billings $ 613,800 $ 603,269 $ 549,960 $ 604,996 $ 625,287 © 2024 Palant

  33. Slide 33: 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) Q1 2023 Q4 2023 Q1 2024 Total Expenses $ 521,071 $ 542,556 $ 553,457 Less: Stock-Based Compensation 114,714 132,608 125,651 Employer Payroll Taxes Related to Stock-Based Compensation 6,285 10,9

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