Palantir Technologies Inc. · NASDAQ:PLTR
Palantir Technologies — Q2 2021 Earnings Presentation
47 slides from Palantir Technologies's earnings presentation, Aug 18, 2021
Slide 1: Q2 2021 Business Update
Q2 2021 ~ Business Update OPalantir Sou
Slide 2: Disclaimer Safe Harbor
Disclaimer Safe Harbor This presenta_on and the accompanying oral commentary contain “forward-looking” statements within the meaning of the federal securi_es laws, and these statements involve substan_al risks and uncertain_es. All statements other than statements of historical fact could be deemed
Slide 3: Introduction
0ntroduction The meta-constella_on is radically changing how satellites are tasked –crea_ng a fundamental link in the AI-enabled decision chain. ? Q1 _ Q2 ? Q3 ? Q4 Read more
Slide 4: Q2 2021 Highlights: revenue grew 49%
02 Q2 2021 Highlights Q2 revenue grew 49% Q2 US commercial revenue year-over-year to $376 million. growth rate accelerated to $400M $376M 90%. +49% $300M $252M $200M $100M Q2 2020 Q2 2021
Slide 5: Q2 2021 Highlights: total contract value booked
02 Q2 2021 Highlights Q2 total contract value booked grew 175% year-over-year to $925 million. Total contract value refers to deals that have been awarded by our government and commercial customers and includes exis_ng contractual op_ons and unexercised contract op_ons available to those customers.
Slide 6: Q2 2021 Highlights: net new customers
02 Q2 2021 Highlights ? P_L_NT_R TECHNOLOG_ES _NC. We added 20 net new customers in Q2 alone and total commercial customers grew 32% quarter-over-quarter. Q2 commercial customer count increased 61% since December 31, 2020. ? Q1 _ Q2 ? Q3 ? Q4 We de?ne a customer as an organiza_on from which we have
Slide 7: Q2 2021 Highlights: average revenue from top customers
02 Q2 2021 Highlights Average revenue from our top 20 customers grew to $39 million in Q2 2021 from $36 million in Q1 2021. We de?ne a customer as an organiza_on from which we have recognized revenue during the trailing twelve month period. Average revenue from our top twenty customers for each peri
Slide 8: Q2 2021 Highlights: deals closed
02 Q2 2021 Highlights During Q2 2021, we closed 62 deals of 20 21 at least $1 million. 30 of which were at least $5 million. 21 of which were at least $10 million. ? Q1 _ Q2 ? Q3 ? Q4
Slide 9: H1 2021 Highlights
02 H1 2021 Highlights First Half of 2021 (“H121”) Revenue growth of Adjusted free Adjusted opera_ng Visibility into future cash ?ow of income of growth is strong, 49%. as total deal value $201M $233M increased represen_ng a represen_ng a 63% 28% margin. 33% margin. to $3.4 billion. Total deal value
Slide 10: Apollo for Edge AI
03 Overview Apollo for Edge AI is enabling ? P_L_NT_R TECHNOLOG_ES _NC government and commercial customers to opera_onalize AI at scale—and deploy to the edge with ease. // BUS_NESS UPD_TE
Slide 11: Commercializing Apollo
03 Overview We’re commercializing Apollo to allow our customers to meet BR_NG _OUR BR_NG _OUR O_N COMPUTE O_N STOR_GE their customers where _T E D R U P LO they are, and take their C D S OU D T L _E EN C S C R _F M _ E S N SaaS where it’s never BL D S O R U L _ P O C _ R gone before. P EN D _ R D H_
Slide 12: European bank deploys anti-money laundering in Foundry
03 Overview In two days, one of the largest banks in Europe—with more than 10,000 branches—deployed an end-to-end an_-money laundering and compliance process in Foundry. ——Software-defined data integra_on ——Driving the marginal cost of applica_on development to zero Read more _ Marketecture YEAR 1 Y
Slide 13: Foundry in mining and energy
03 Overview Our no-code and sensor data capabili_es are transforming increasingly complex opera_onal challenges—across mining, energy, and others. ——In mining, Foundry is enabling pinpoint ——In energy, Foundry is enabling the front line to precision to monitor equipment performance, manage mul_-sour
Slide 14: Foundry for utilities
03 Overview 20 21 Foundry is the opera_ng system of choice for u_li_es, including PG&E, ENGIE, EnBW, and now Na_onal Grid and Southern California Edison. ——Crea_ng a connected u_lity ——From PSPS, to procurement, to grid management, to safety
Slide 15: Day Zero companies
03 Overview Day Zero companies are leapfrogging legacy IT investments and building on Foundry as the modern opera_ng system. // BUS_NESS UPD_TE ? P_L_NT_R TECHNOLOG_ES _NC.
Slide 16: Celularity, Roivant, Wejo
03 Overview Celularity ——Accelera_ng research & development, real-world evidence Roivant Wejo ——Improving healthcare delivery through ——Redefining mobility through connected real-world evidence and clinical trial analysis vehicle fleet management & logis_cs
Slide 17: Foundry for Builders
03 Overview Foundry for Builders is enabling startups to integrate data-driven decision making from the outset ? Q1 _ Q2 ? Q3 ? Q4 and e_ciently managing increasing complexity as their businesses scale.
Slide 18: Chapter, Origin Materials, Gecko Robotics
03 Overview Chapter ——Helping customers understand and select Medicare plans Origin Materials Gecko Robo_cs ——Making robots used for ——Turning the carbon in biomass into useful materials, industrial inspec_ons while elimina_ng the need for fossil resources
Slide 19: Sales hires and accelerating pilot pipeline
03 Overview ? Q1 _ Q2 ? Q3 ? Q4 In Q2 2021, we made 60 addi_onal sales hires—and our pipeline is accelera_ng, with ac_ve commercial pilots up by 26% since the end of April. // BUS_NESS UPD_TE We consider a pilot to be ac_ve when a technology evalua_on agreement has been signed by a prospec_ve custom
Slide 20: Net new customers and $925M total contract value
03 Overview In Q2 2021, we added 20 net new customers and booked $925M of total contract value. Total contract value refers to deals that have been awarded by our government and commercial customers and includes exis_ng contractual op_ons and unexercised contract op_ons available to those customers.
Slide 21: New deals with US Army, Air Force, Coast Guard
03 Overview In Q2 2021, we signed new deals with the US Army, Air Force, and Coast Guard —including a two-year, $100 million deal with SOCOM. ——Par_cipated in the U.S. Northern Command’s third Global Informa_on Dominance Experiment ——Driving applied AI-decision making for real-world scenarios ——Revo
Slide 22: New deals with HHS and CDC
03 Overview In Q2 2021, we signed new deals with HHS and the CDC—including doubling our contract for Tiberius to help the US manage vaccine produc_on, distribu_on, and administra_on. ——Expanding reach in comba_ng the pandemic // BUS_NESS UPD_TE ——Driving innova_on across the healthcare landscape
Slide 23: Federal Aviation Administration contract
03 Overview In Q2 2021, we signed a contract with the Federal Avia_on Administra_on —where Foundry will support aircraft cer_fica_on and opera_onal safety. ——Conduc_ng cri_cal tasks such as the ongoing monitoring of the 737 MAX fleet’s return to service ? Q1 _ Q2 ? Q3 ? Q4
Slide 24: DataRobot partnership
03 Overview We con_nue to develop our channel partnership strategy —and in Q2 2021, we signed a new partnership with ? Q1 _ Q2 ? Q3 ? Q4 DataRobot, focused on helping customers with demand forecas_ng. ——DataRobot’s model development ——Foundry’s SDDI, ontology, and opera_onal applica_ons ——Helping cu
Slide 25: Accenture Federal partnership
03 Overview We con_nue to develop our Global SI partnership strategy—and in Q2 2021, our work with Accenture Federal has accelerated, now spanning Intel, Defense, and Civilian. ——Delivering accelerated outcomes through joint solu_ons 20 21
Slide 26: Annual Hack Week
03 Overview ? P_L_NT_R TECHNOLOG_ES _NC Last week, we held our Annual Hack Week—during which for the past 15 years, Palan_rians around the world have set aside their daily responsibili_es to create some of the biggest, profound innova_ons we’ve ever delivered. ? Q1 _ Q2 ? Q3 ? Q4
Slide 27: Q2 2021 Financial Update
Q2 2021 ? Financial Update ©2021 Palantir Technologies _nc. _ug 12 2021
Slide 28: Q2 and H1 revenue growth
04 Financial Update Q2 revenue grew 49% year-over-year to $376 million. $400M $376M +49% $300M $252M $200M $100M Q2 2020 Q2 2021 H121 revenue grew 49% year-over-year to $717 million. $717M $700M $600M +49% $500M $481M . H1 2020 H1 2021
Slide 29: H1 adjusted free cash flow
04 Financial Update H121 adjusted free cash flow surpassed $200M, an improvement of $433M year-over-year. $300M $201M $200M $100M ($100M) ($200M) ($232M) ($300M) H1 2020 H1 2021 Please see the appendix for reconcilia_ons of these non-GAAP ?nancial measures to the most directly comparable GAAP measur
Slide 30: Adjusted operating margin above 30%
04 Financial Update We generated an adjusted opera_ng margin of >30% for the third straight quarter. Adjusted opera_ng income (loss) and adjusted opera_ng margin excludes stock-based compensa_on and related employer payroll taxes. Please see the appendix for reconcilia_ons of these non-GAAP ?nancial
Slide 31: Total contract value booked
04 Financial Update Total Contract Value Booked $1B $925M $750M +175% $500M $337M $250M Q2 2020 Q2 2021 Total contract value refers to deals that have been awarded by our government and commercial customers and includes exis_ng contractual op_ons and unexercised contract op_ons available to those cu
Slide 32: Commercial customer count growth
04 Financial Update Our commercial customer count grew 32% quarter-over-quarter. We added 20 net new customers in Q2 2021, with total customers up 13% quarter-over-quarter. 180 169 160 +13% 149 139 140 120 . TR__L_NG T_EL_E TR__L_NG T_EL_E TR__L_NG T_EL_E MONTHS ENDED MONTHS ENDED MONTHS ENDED Q4 20
Slide 33: US revenue growth
04 Financial Update We con_nue to see strength across our US business, as revenue grew 60% year-over-year in Q2. Q2 revenue grew 49% year-over-year to $376 million, ahead of prior guidance of 43%. $400M $376M +49% $300M $252M $200M $100M Q2 2020 Q2 2021
Slide 34: Government revenue growth
04 Financial Update Our government revenue grew 66% year-over-year in Q2 2021, and we signed new deals with the US Army, Air Force, Coast Guard, HHS, and CDC. Total Government Revenue Growth $300M $232M $200M +66% $140M $100M Q2 2020 Q2 2021
Slide 35: Commercial revenue growth
04 Financial Update Our commercial revenue grew 28% year-over-year in Q2 2021, and our Q2 US commercial revenue growth rate accelerated to 90% year-over-year. Total Commercial Revenue Growth $150M $144M +28% $112M $100M $50M Q2 2020 Q2 2021
Slide 36: Total remaining deal value
04 Financial Update We ended Q2 2021 with $3.4 billion in total remaining deal value, up 63% year-over-year. $4B $3.4B $3B +63% $2.1B $2B $1B Q2 2020 Q2 2021 Total deal value is the total remaining deal value of contracts that have been awarded by our government and commercial customers and includes
Slide 37: Average revenue per customer
04 Financial Update We added 20 net new customers in Q2 2021. Average Revenue per Customer $7.9M $8M $6.6M +19% $6M $4M $2M TR__L_NG 12 MONTHS TR__L_NG 12 MONTHS ENDED JUNE 30, 2020 ENDED JUNE 30, 2021 We de?ne a customer as an organiza_on from which we have recognized revenue during the trailing tw
Slide 38: Adjusted gross margin and contribution margin
04 Financial Update In Q2 2021, our adjusted gross margin improved to 82%, and contribu_on margin improved to 58%. Adjusted Gross Margin 85% 82% 80% 80% . Q2 2020 Q2 2021 Adjusted gross margin excludes stock-based compensa_on. Adjusted gross margin and contribu_on margin are non-GAAP ?nancial measur
Slide 39: Adjusted operating income
04 Financial Update In Q2 2021, we generated $117M in adjusted opera_ng income—represen_ng an adjusted opera_ng margin of 31% ahead of prior guidance of 23%. Adjusted opera_ng income (loss) and adjusted opera_ng margin excludes stock-based compensa_on and related employer payroll taxes. Please see t
Slide 40: H1 adjusted free cash flow
04 Financial Update In H1 2021, we generated $201 million in adjusted free cash flow, represen_ng a margin of 28%. Adjusted free cash ?ow excludes employer payroll taxes related to stock-based compensa_on. Please see the appendix for reconcilia_ons of these non-GAAP ?nancial measures to the most dir
Slide 41: Looking ahead: outlook
04 Financial Update Looking ahead ? Q3 2021 Outlook ? Full Year 2021 Outlook ? Long-Term Outlook Revenue of Adjusted free Revenue growth of $385M cash ?ow of 30%+ $300M+ for this year and Adjusted opera_ng —up from $150M+ the next four years margin of previously _atch video _ 22%
Slide 42: Appendix
Appendix ©2021 Palantir Technologies _nc. _ug 12 2021
Slide 43: Reconciliation to Adjusted Free Cash Flow
Appendix Reconciliation of Cash Flow from Operating _ctivities to _djusted Free Cash Flow and _djusted Free Cash Flow Margin _djusted free cash flow margin is calculated as adjusted free cash flow divided by revenue. ($ THOUS_NDS) Q1 2_2_ Q2 2_2_ H1 2_2_ Q1 2_21 Q2 2_21 H1 2_21 Cash Flow from Operat
Slide 44: Reconciliation of Gross Profit to Adjusted Gross Profit
Appendix Reconciliation of Gross Profit to _djusted Gross Profit and _djusted Gross Margin [Excluding Stock-Based Compensation] _djusted gross margin is calculated as adjusted gross profit divided by revenue. ($ THOUS_NDS) Q2 2_2_ Q2 2_21 Gross Profit $ 183,479 $ 284,716 _dd: Stock-Based Compensatio
Slide 45: Reconciliation to Adjusted Operating Income
Appendix Reconciliation of Loss from Operations to _djusted Operating _ncome and _djusted Operating Margin [Excluding Stock-Based Compensation and Related Employer Payroll Taxes] _djusted operating margin is calculated as adjusted operating income divided by revenue. ($ THOUS_NDS) Q1 2_2_ Q2 2_2_ H1
Slide 46: Reconciliation to Contribution Margin
Appendix Reconciliation of Loss from Operations to Contribution Margin ($ THOUS_NDS) Q2 2_2_ Q2 2_21 Loss from Operations $ (99,145) $ (146,148) _dd: Research and Development Expenses, Excluding Stock-Based Compensation $ 48,918 $ 59,894 General and _dministrative Expenses, Excluding Stock-Based Com
Slide 47: Reconciliation of Revenue to Billings
Appendix Reconciliation of Revenue to Billings ($ THOUS_NDS) Q2 2_2_ Q2 2_21 Revenue $ 251,889 $ 375,642 Plus: Change in Contract Liabilities $ 19,249 $ 3,063 Billings $ 271,138 $ 378,705
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