Palantir Q1 2024 Earnings Overview
Introduction
On May 6, 2024, Palantir Technologies Inc. (NYSE:PLTR) announced its financial results for the first quarter, which ended on March 31, 2024. The report highlighted significant growth in revenue and profitability, marking another strong quarter for the company.
Financial Performance
Revenue Growth
- Total Revenue: Palantir reported a revenue increase of 21% year-over-year, totaling $634 million. This growth also reflects a 4% increase quarter-over-quarter.
- Sector Performance:
- Commercial Sector: The commercial sector revenue saw a 27% year-over-year increase, with a total revenue of $299 million.
- Government Contracts: Revenue from government contracts grew 16% year-over-year to $335 million.
Profitability
- Net Income: The GAAP net income stood at $106 million, a 17% margin.
- Income from Operations: GAAP income from operations was $81 million, representing a 13% margin.
- Earnings Per Share: The GAAP EPS was $0.04, with an adjusted EPS of $0.08.
Cash Flow and Capital
- Cash Flow: Operations generated $130 million in cash, reflecting a 20% margin.
- Adjusted Free Cash Flow: The adjusted free cash flow was $149 million, indicating a 23% margin.
- Liquidity: The company reported $3.9 billion in cash, cash equivalents, and short-term US treasury securities.
Growth Drivers
- US Commercial Sector: Notable growth was seen in the US commercial sector, where revenue grew by 40% year-over-year to $150 million.
- Customer Base Expansion: The overall customer count grew by 42% year-over-year.
Future Outlook
Palantir's consistent performance and growth across both commercial and government sectors underscore its solid market position. The expansion in its customer base and strategic investments in its technology platform are likely to sustain its growth trajectory in upcoming quarters.
Conclusion
Palantir's first quarter of 2024 demonstrates a robust financial health and an effective strategy in capturing market share across diverse sectors. The continued profitability and revenue growth indicate a promising outlook for the company's stakeholders.