Palantir Technologies Inc. · NASDAQ:PLTR

Palantir Technologies — Q4 2023 Earnings Presentation

35 slides from Palantir Technologies's earnings presentation, Feb 5, 2024

  1. Slide 1: Q4 2023 Business Update

    Q4 ©2024 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: Q4 2023 Highlights

    Q4 Business Update Q4 2023 Highlights US commercial revenue grew +70% Y/Y and +12% Q/Q to $131 million Commercial revenue grew +32% Y/Y and +13% Q/Q to $284 million Revenue grew +20% Y/Y and +9% Q/Q to $608 million Closed 103 deals over $1 million; ~ 2x vs. a year ago US commercial customer count gr

  4. Slide 4: FY 2023 Highlights

    Q4 Business Update FY 2023 Highlights US commercial revenue grew +36% Y/Y to $457 million Revenue grew +17% Y/Y to $2.2 billion Customer count increased +35%Y/Y to 497, up from 367 a year ago Adjusted free cash flow of $731 million; 33% margin Adjusted operating margin of 28%, up 600 basis points Y/

  5. Slide 5: We are proud to stand alongside Israel

    Q4 Business Update Last month, the board of directors of Palantir hosted its first meeting of 2024 in Tel Aviv. Following that meeting, Palantir agreed to a strategic partnership with the Israeli Ministry of Defense to supply Palantir technology to help the country’s war effort. We are proud to stan

  6. Slide 6: Palantir & the NHS

    Q4 Business Update We are proud to have been chosen to help the NHS deliver a Federated Data Palantir& the Platform (FDP). Our software has already helped bring down the ↳NHS inpatient waiting list at Chelsea and Westminster NHS Foundation Trust by 28% and to increase operating theatre usage by an a

  7. Slide 7: From 0 to Use Case in 5 days or less

    Q4 Business Update —— AIP BOOTCAMPS From 0 to Use Case in 5 days or less Our go-to-market approach for AIP Outcomes These immersive, hands-on-keyboard sessions allow new and existing 1/ Understand how to apply AI to mission-critical operations customers to build live alongside Palantir engineers, al

  8. Slide 8: Our go-to-market approach for AIP Outcomes

    Q4 Business Update —— AIP BOOTCAMPS “What was never possible before to do not just monthly, but quarterly — we can now do that every single day.” “We paid an entire team for a year to do this, and here it is ... in 2 days!” “The time to analyse... we reduced by a factor of 6x. We could fly more ofte

  9. Slide 9: Introducing Mission Manager: Infrastructure for Operational Responsibility

    Q4 Business Update Introducing Mission Manager: Interoperability Infrastructure for Operational Big-Tent Software Responsibility (OR) Modularity Integration Enabling an ecosystem of commercial and Openness Speed government providers to deliver software at the speed of mission © 2024 Palantir Technol

  10. Slide 10: Mission Manager: Palantir's software infrastructure

    Q4 Business Update Mission Manager: Palantir High Complexity Low Complexity Palantir’s software ENVIRONMENTS 750+ 20 1 infrastructure technology, now DISTINCT MICROSERVICES 2,500+ 500 10 available for every DEPLOYMENT Over 90,000 deployed Once per day to Once per week to FREQUENCY per week once per

  11. Slide 11: FedStart is built on Mission Manager's capabilities

    Q4 Business Update —— FEDSTART FedStart is built on Mission Manager’s Typical Palantir capabilities and enables innovators to SaaS Offering FedStart run their products within Palantir’s ACCREDITATION $1M+ Significant cost savings COSTS secure, already-accredited environment. COMPLIANCE Dedicated Fac

  12. Slide 12: Move or Die: Disaggregated Command and Control

    Q4 Business Update —— MIXED REALITY Interoperable Can seamlessly run on Apple, “Move or Die”: & Extensible Android, and Microsoft OS devices, including VisionPro, Meta Quest, Magic Leap, HoloLens, and IVAS. Disaggregated Command and Extends classification and Control Secure role-based authentication

  13. Slide 13: Q4 2023 Financials

    Q4 ©2024 Palantir Technologies Inc. 2023 Financials

  14. Slide 14: US commercial continues to accelerate in Q4 2023 alongside AIP revolution

    Q4 Financials US commercial continues to accelerate in Q4 2023 alongside AIP revolution +70% Y/Y +55% Y/Y +32% Y/Y US Commercial Revenue US Commercial Customer Count US Commercial Remaining Deal Value +12% Q/Q +22% Q/Q +28% Q/Q US Commercial Revenue US Commercial Customer Count US Commercial Remaini

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

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

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

    Q4 Financials GAAP Operating Income (Loss) We achieved GAAP $80.0M operating profitability for the $65.8M fourth consecutive quarter. $60.0M $40.0M $40.0M Our Q4 2023 GAAP operating margin was 11%, $10.1M $20.0M $4.1M up 1,500 basis points Y/Y. $ ($20.0M) ($17.8M) ($40.0M) ($60.0M) ($62.2M) Q3 2022

  17. Slide 17: Commercial Revenue Growth

    Q4 Financials Commercial Revenue Growth US Commercial Revenue Growth $300M $140M $284M $131M $275M $120M $250M +32% $225M $215M $100M +70% $200M $80M $175M $77M $150M $60M $125M Q4 2022 Q4 2023 Q4 2022 Q4 2023 © 2024 Palantir Technologies Inc.

  18. Slide 18: Government Revenue Growth

    Q4 Financials Government Revenue Growth US Government Revenue Growth $275M $324M $325M +11% $250M $300M $293M $237M $225M +6% $275M $225M $250M $200M $225M $175M $200M $150M $175M Q4 2022 Q4 2023 Q4 2022 Q4 2023 © 2024 Palantir Technologies Inc.

  19. Slide 19: Total Revenue Growth

    Q4 Financials Total Revenue Growth Total revenue grew 20% Y/Y and 9% Q/Q, driven by the $650M continued acceleration of our $608M US commercial business. $600M +20% $550M $509M $500M $450M $400M $350M $300M Q4 2022 Q4 2023 © 2024 Palantir Technologies Inc.

  20. Slide 20: Average TTM Revenue per Top 20 Customers and Billings

    Q4 Financials Average TTM Revenue per Billings Top 20 Customers $650M $605M $55M $55M $600M $49M +11% $50M $550M $45M $500M +56% $450M $40M $400M $387M $35M $350M $30M $300M Q4 2022 Q4 2023 Q4 2022 Q4 2023 Average TTM revenue per customer is defined as (a) the Company’s trailing twelve months of rev

  21. Slide 21: Adjusted Gross Margin

    Q4 Financials ADJ. GROSS MARGIN 84% 82% 81% 81% 82% 80% Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 © 2024 Palantir Technologies Inc. Adjusted gross margin excludes stock-based compensation. Please see the appendix for reconciliations of this and other non-GAAP financial measures to the most dir

  22. Slide 22: Investing in AIP and the US while driving operating leverage

    Q4 Financials Q4 2023 adjusted operating income was We continue to invest $209M, representing a margin of 34% aggressively in AIP and the $225M ADJUSTED OPERATING MARGIN $209M US while driving operating $200M 34% leverage at scale. $175M $163M $150M 29% $135M $125M $125M $114M 25% 24% 22% $100M $81M

  23. Slide 23: US Commercial Customer Count

    Q4 Financials US Commercial Customer Count +55% Y/Y 250 221 +22% 200 181 161 +12% 155 +4% 150 143 +8% 100 50 TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED DEC 31, 2022 MAR 31, 2023 JUN 30, 2023 SEP 30, 2023 DEC 31, 2023 © 2024 Palantir Technologies Inc.

  24. Slide 24: Customer Count and Commercial Customer Count

    Q4 Financials Customer Count Commercial Customer Count +35% Y/Y 497 400 +44% Y/Y 500 375 453 421 +10% 400 391 +8% 350 330 367 +8% +14% +7% 302 300 +9% 300 280 +8% 260 +8% 200 250 100 200 TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED TTM ENDED DEC 31, 2022

  25. Slide 25: 103 deals

    © 2024 Palantir Technologies Inc. Q4 Financials During Q4 2023, we closed 103 deals of at least $1 million. 37 of which were at least $5 million. 21 of which were at least $10 million.

  26. Slide 26: Cash, Cash from Operations and Adjusted Free Cash Flow

    Q4 Financials Cash from Operations and We ended Q4 2023 with Adjusted Free Cash Flow $3.7B CASH FROM OPERATIONS ADJUSTED FREE CASH FLOW $350M 50% MARGIN 50% MARGIN $301M $305M $300M in cash, cash equivalents, and US treasury securities $250M and no debt. $200M $150M 15% MARGIN 15% MARGIN $100M $79M

  27. Slide 27: Q1 2024 and FY 2024 Guidance

    Q4 Financials Q1 2024 FY 2024 For first quarter 2024, we expect: For full year 2024, we expect: Revenue of between Revenue of between $612 million — $616 million. $2.652 billion — $2.668 billion. Adjusted income from operations of between U.S. commercial revenue in excess of $196 million — $200 mill

  28. Slide 28: Q4 2023 Appendix

    Q4 ©2024 Palantir Technologies Inc. 2023 Appendix

  29. Slide 29: Additional Metrics and Notes

    Appendix Additional Metrics and Notes ($ MILLIONS) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Total RPO $ 973 $ 936 $ 968 $ 988 $ 1,243 Short-Term RPO $ 517 $ 529 $ 558 $ 560 $ 643 Long-Term RPO $ 456 $ 407 $ 410 $ 428 $ 600 Billings $ 387 $ 614 $ 603 $ 550 $ 605 Net dollar retention was 108% in Q4 202

  30. Slide 30: 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) Q4 2022 Q4 2023 FY 2023 Cash Flow from Operating Activities $ 78,763 $

  31. Slide 31: Reconciliation of Gross Profit to Adjusted Gross Profit & 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) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2023 Gross Profit $ 370,269 $ 4

  32. Slide 32: 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) Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 FY 2022 FY 2023 Income (Loss) From Operations $ (62,

  33. Slide 33: Reconciliation of GAAP EPS to Adjusted EPS

    Appendix Reconciliation of GAAP Net Earnings (Loss) Per Share, Diluted to Adjusted Earnings (Loss) Per Share, Diluted (AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS) Q4 2022 Q4 2023 FY 2022 FY 2023 Net Income (Loss) Attributable to Common Stockholders $ 30,878 $ 93,391 $ (373,705) $ $209,825 Add /

  34. Slide 34: Reconciliation of Revenue to Billings

    Appendix Reconciliation of Revenue to Billings ($ THOUSANDS) Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Revenue $ 508,624 $ 525,186 $ 533,317 $ 558,159 $ 608,350 Change in Contract Liabilities (121,589) 88,614 69,952 (8,199) (3,354) Billings $ 387,035 $ 613,800 $ 603,269 $ 549,960 $ 604,996 © 2024 Pala

  35. Slide 35: 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) Q4 2022 Q3 2023 Q4 2023 FY 2022 FY 2023 Total Expenses $ 526,450 $ 518,176 $ 542,556 $ 2,067,072 $ 2,105,046 Less: Stock-Based Compensation 129,398 114,380 132,608 564,798 475,903 Employer Payr

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