Palantir PLTR Q4 2023 Earnings Report

Palantir Technologies Inc. (PLTR) announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Palantir Q4 2023 Highlights

• GAAP net income of $93 million, representing a 15% margin
  • Fifth consecutive quarter of GAAP profitability
• GAAP income from operations of $66 million, representing an 11% margin
  • Fourth consecutive quarter of GAAP operating profitability
• GAAP earnings per share (“EPS”) of $0.04
• Adjusted EPS of $0.08
• Revenue grew 20% year-over-year and 9% quarter-over-quarter to $608 million
• US commercial highlights
  • US commercial revenue grew 70% year-over-year and 12% quarter-over-quarter to $131 million
  • US commercial customer count grew 55% year-over-year and 22% quarter-over-quarter to 221 customers
  • US commercial total contract value (“TCV”) of $343 million, representing 107% growth year-over-year on a dollar-weighted duration basis
  • US commercial remaining deal value (“RDV”) grew 32% year-over-year and 28% quarter-over-quarter
• Commercial revenue grew 32% year-over-year and 13% quarter-over-quarter to $284 million
• Government revenue grew 11% year-over-year and 5% quarter-over-quarter to $324 million
• Customer count grew 35% year-over-year
• Adjusted income from operations of $209 million, representing a margin of 34%
  • Fifth consecutive quarter of expanding adjusted operating margins
• Cash from operations of $301 million, representing a 50% margin
• Adjusted free cash flow of $305 million, representing a 50% margin
• Cash, cash equivalents, and short-term US treasury securities of $3.7 billion

Palantir (PLTR) FY 2023 Highlights

• Revenue grew 17% year-over-year to $2.23 billion
• Commercial revenue grew 20% year-over-year to $1.0 billion
  • US commercial revenue grew 36% year-over-year to $457 million
• Government revenue grew 14% year-over-year to $1.2 billion
• GAAP net income of $210 million, representing a 9% margin
• GAAP income from operations of $120 million, representing a 5% margin
• Cash from operations of $712 million, representing a 32% margin
• Adjusted free cash flow of $731 million, representing a 33% margin
• Adjusted income from operations of $633 million, representing a 28% margin

Palantir Outlook

For Q1 2024, we expect:

• Revenue of between $612 – $616 million.
• Adjusted income from operations of $196 – $200 million.

For full-year 2024, we expect:

• Revenue of between $2.652 – $2.668 billion.
• US commercial revenue in excess of $640 million, representing a growth rate of at least 40%.
• Adjusted income from operations of $834 – $850 million.
• Adjusted free cash flow of $800 million – $1 billion.
• GAAP operating income in each quarter of this year.
• GAAP net income in each quarter of this year.