Palantir Technologies Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Palantir Technologies Reports Second Quarter 2024 Financial Results
Palantir Technologies Inc. (NYSE: PLTR) announced its financial results for the second quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | QoQ Change | YoY Change | Consensus Estimates | Comparison to Estimates |
|---|---|---|---|---|---|---|
| Revenue | $678M | $534M | +7% | +27% | $652.1M | Above estimates (+$25.9M) |
| GAAP EPS | $0.06 | $0.01 | N/A | +500% | $0.08 | Below estimates (-$0.02) |
| Adjusted EPS | $0.09 | $0.05 | N/A | +80% | N/A | N/A |
| GAAP Net Income | $134M | N/A | N/A | N/A | N/A | N/A |
| Adjusted Income from Operations | $254M | N/A | N/A | N/A | N/A | N/A |
| Cash from Operations | $144M | N/A | N/A | N/A | N/A | N/A |
| Adjusted Free Cash Flow | $149M | N/A | N/A | N/A | N/A | N/A |
| Cash & Cash Equivalents | $4B | N/A | N/A | N/A | N/A | N/A |
Interpretation : Palantir outperformed revenue expectations with $678 million, a 27% year-over-year increase and a 7% quarter-over-quarter growth. Despite the strong revenue performance, GAAP EPS of $0.06 missed the consensus estimate by $0.02. However, the significant growth in both GAAP and adjusted earnings indicates robust underlying business momentum.
Segment Revenue Performance
| Segment | Q2 2024 | Q2 2023 | QoQ Change | YoY Change |
|---|---|---|---|---|
| US Commercial Revenue | $159M | $103M | +6% | +55% |
| US Government Revenue | $278M | $224M | +8% | +24% |
| Commercial Revenue | $307M | $231M | +3% | +33% |
| Government Revenue | $371M | $302M | +11% | +23% |
Interpretation : Palantir exhibited strong growth across all segments. US commercial revenue showed a remarkable 55% year-over-year increase, reflecting the growing demand in the commercial sector. Government revenue also displayed robust growth with a 23% increase year-over-year, driven primarily by an 11% rise in the US government sector.
Operational Data
| Operational Metric | Q2 2024 | Q2 2023 | QoQ Change | YoY Change |
|---|---|---|---|---|
| US Commercial Customer Count | 295 | 161 | +13% | +83% |
| US Commercial Remaining Deal Value | N/A | N/A | +11% | +103% |
| Customer Count | N/A | N/A | +7% | +41% |
| Deals Closed Over $10M | 27 | N/A | N/A | N/A |
Comments from Company Officers
CEO Alex Karp emphasized the company's solid performance, highlighting the substantial increases in both commercial and government sectors. His quarterly letter is accessible via Palantir's website for more details.
Dividends and Share Repurchase Program
No information was provided regarding dividends or share repurchase programs.
Forward Guidance
For Q3 2024, Palantir anticipates: - Revenue between $697 million and $701 million. - Adjusted income from operations between $233 million and $237 million.
For the full year 2024: - Revenue guidance has been raised to a range of $2.742 billion to $2.750 billion. - US commercial revenue is expected to exceed $672 million, representing at least a 47% growth rate. - Adjusted income from operations is anticipated to be between $966 million and $974 million. - Adjusted free cash flow is expected to be between $800 million and $1 billion. - Continued expectations for GAAP operating income and net income in each quarter of this year.
Stock Price Movement
Following the earnings release, Palantir’s stock price saw a decrease of 2.63%.
In summary, Palantir Technologies Inc. reported strong performance for Q2 2024, particularly in revenue growth across both commercial and government sectors. The company has raised its forward guidance, indicating a positive outlook for the upcoming quarters. However, the miss on GAAP EPS caused a slight decline in stock price post-release.
