Palantir Technologies(US:PLTR)2025-11-03 22:58Financial Performance - For the three months ended September 30, 2025, the company generated $1.2 billion in revenue, reflecting a 63% growth rate from $0.7 billion in the same period in 2024[120]. - The company reported income from operations of $393.3 million for the three months ended September 30, 2025, compared to $113.1 million in the same period in 2024, with adjusted income from operations of $600.5 million and $275.5 million, respectively[121]. - Gross profit for the three months ended September 30, 2025, was $973.8 million, with a gross margin of 82%, compared to $578.9 million and 80% in the same period in 2024[122]. - Total revenue for the three months ended September 30, 2025, was $1,181,092,000, representing a 63% increase from $725,516,000 in the same period of 2024[166]. - Adjusted income from operations for the three months ended September 30, 2025, was $600,540,000, yielding an adjusted operating margin of 51%, up from 38% in 2024[148]. - Contribution margin for the three months ended September 30, 2025, was 66%, compared to 60% in the same period of 2024[146]. - Net income attributable to common stockholders for the three months ended September 30, 2025, was $475,599,000, compared to $143,525,000 in 2024[166]. - Revenue increased by $455.6 million, or 63%, for the three months ended September 30, 2025, compared to the same period in 2024[169]. - Gross profit for the three months ended September 30, 2025, was $973.8 million, representing a 68% increase compared to $578.9 million in 2024[172]. Customer Metrics - The company had 911 customers as of September 30, 2025, up from 629 customers in the same period in 2024, indicating a significant increase in customer base[124]. - Average revenue from the top twenty customers during the trailing twelve months ended September 30, 2025, was $83.0 million, a 38% increase from $60.1 million in the prior year[126]. - In the nine months ended September 30, 2025, 55% of revenue came from government customers, while 45% came from commercial customers[127]. - Revenue from U.S. customers during the trailing twelve months ended September 30, 2025, was $2.8 billion, growing 64% from the prior twelve-month period[128]. - Government segment revenue for the three months ended September 30, 2025, was $632,676,000, a 55% increase from $408,341,000 in 2024[167]. - Commercial segment revenue for the three months ended September 30, 2025, was $548,416,000, reflecting a 73% increase from $317,175,000 in 2024[167]. - Revenue from U.S. government customers was $485.9 million for the three months ended September 30, 2025, a 121% increase from $179.2 million in the same period in 2024[169]. Expenses and Investments - Research and development expenses for the three months ended September 30, 2025, were $144,191,000, an increase from $117,555,000 in 2024[166]. - Sales and marketing expenses for the three months ended September 30, 2025, totaled $274,636,000, compared to $209,474,000 in 2024[166]. - Total operating expenses increased by $114.8 million, or 25%, for the three months ended September 30, 2025, compared to the same period in 2024[177]. - Stock-based compensation expenses increased by $29.9 million, or 21%, for the three months ended September 30, 2025, compared to the same period in 2024[185]. Cash Flow and Financial Position - As of September 30, 2025, the company had cash, cash equivalents, and short-term U.S. Treasury securities totaling $6.4 billion[190]. - The company had no outstanding debt balances and additional available revolving commitments of $500.0 million under its credit facility as of September 30, 2025[192]. - Approximately $880.0 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases as of September 30, 2025[193]. - Net cash provided by operating activities increased to $1.4 billion for the nine months ended September 30, 2025, compared to $0.7 billion for the same period in 2024, primarily driven by revenue growth[196]. - Net cash used in investing activities rose to $1.8 billion for the nine months ended September 30, 2025, from $1.0 billion in 2024, mainly due to purchases of short-term U.S. Treasury securities[197]. - Net cash used in financing activities was $16.0 million for the nine months ended September 30, 2025, compared to net cash provided of $224.7 million in 2024, with outflows driven by taxes related to net share settlement of SARs and stock repurchases[198]. Market and Economic Conditions - The company has not been exposed to material risks due to changes in interest rates, given the short-term nature of its financial instruments[209]. - Contracts with customers are primarily denominated in U.S. dollars, exposing the company to foreign currency exchange risks, particularly with JPY, Euro, and GBP[210]. - The company does not believe inflation has materially affected its business, but significant inflationary pressures could harm its financial condition[212]. Strategic Initiatives - The company began deploying its new Artificial Intelligence Platform (AIP) in 2023, aimed at enhancing decision-making for customers across commercial and government sectors[116]. - The contribution margin is a key measure of efficiency, defined as revenue less costs of revenue and sales and marketing expenses, excluding stock-based compensation[140]. - The company continuously evaluates partnerships and investment opportunities to expand its product and service offerings[118].