Palantir Technologies(US:PLTR)2024-08-05 22:19Financial Performance - For the three months ended June 30, 2024, the company generated $678.1 million in revenue, reflecting a 27% growth rate from $533.3 million in the same period in 2023[96] - The company reported income from operations of $105.3 million for the three months ended June 30, 2024, compared to $10.1 million in the same period in 2023[97] - Gross profit for the three months ended June 30, 2024, was $549.6 million, with a gross margin of 81%, up from a gross profit of $426.4 million and a margin of 80% in the same period in 2023[99] - Revenue for Q2 2024 reached $678.1 million, a 27% increase from $533.3 million in Q2 2023[140] - Gross profit for Q2 2024 was $549.6 million, compared to $426.4 million in Q2 2023, resulting in a gross margin of 81%[140] - Adjusted income from operations for Q2 2024 was $253.6 million, significantly higher than $135.0 million in Q2 2023[124] - Net income attributable to common stockholders for Q2 2024 was $134.1 million, up from $28.1 million in Q2 2023[140] - Net income for the three months ended June 30, 2024, was $20 million, compared to $5 million in the same period of 2023[141] Customer Base and Revenue Sources - The company had 593 customers as of June 30, 2024, an increase from 421 customers in the same period in 2023[100] - Average revenue from the top twenty customers was $57.3 million for the trailing twelve months ended June 30, 2024, a 9% increase from $52.6 million in the prior year[101] - In the six months ended June 30, 2024, 54% of revenue came from government customers, while 46% came from commercial customers[102] - Revenue from U.S. customers was $1.6 billion for the trailing twelve months ended June 30, 2024, reflecting a 23% growth from the previous year[103] - Revenue from government customers for the three months ended June 30, 2024, increased by $69.3 million, or 23%, with U.S. government revenue at $278.0 million[144] - Revenue from commercial customers for the three months ended June 30, 2024, increased by $75.6 million, or 33%, with U.S. commercial revenue at $159.2 million, a 55% increase[144] Expenses and Investments - Research and development expenses for Q2 2024 totaled $108.8 million, an increase from $99.5 million in Q2 2023[140] - Sales and marketing expenses rose to $196.8 million in Q2 2024, compared to $184.2 million in Q2 2023[140] - Total operating expenses for Q2 2024 were $444.2 million, compared to $416.3 million in Q2 2023[140] - The company expects continued investment in research and development, leading to increased expenses in the foreseeable future[132] - Stock-based compensation expenses increased by $27.6 million, or 24%, for the three months ended June 30, 2024, compared to the same period in 2023[154] Cash Flow and Financial Position - As of June 30, 2024, the company had cash and cash equivalents totaling $4.0 billion, with no outstanding debt balances and additional available revolving commitments of $500 million under its credit facility[159] - Net cash provided by operating activities was $273.8 million for the six months ended June 30, 2024, a decrease from $277.6 million in 2023, primarily due to timing of payments[163] - Net cash used in investing activities was $660.1 million for the six months ended June 30, 2024, a significant decrease from $1.9 billion in 2023, primarily due to fewer purchases of marketable securities[164] - Net cash provided by financing activities was $73.3 million for the six months ended June 30, 2024, compared to $116.7 million in 2023, mainly from proceeds of common stock options[165] - As of June 30, 2024, the accumulated deficit balance was $5.4 billion, indicating ongoing financial challenges despite positive cash flows from operations[159] Market Risks - The company is exposed to market risks including fluctuations in the value of investments, interest rates, and foreign currency exchange rates, which could impact financial results[170] Strategic Initiatives - The company began deploying its new Artificial Intelligence Platform (AIP) in 2023, aimed at enhancing decision-making for customers across sectors[94] - The contribution margin is a key measure of operational efficiency, calculated as revenue less costs of revenue and sales and marketing expenses, excluding stock-based compensation[114] - The company continues to evaluate partnerships and investment opportunities to expand its product and service offerings[95]