Financial Data and Key Metrics Changes - In Q3 2025, revenue reached $337 million, representing a 28% year-over-year increase when excluding political and LiveIntent contributions, marking an acceleration from Q2's growth rate [5][15] - Adjusted EBITDA was $78 million, up 46% year-over-year, with a margin of 23.2%, reflecting a 320 basis point improvement [5][18] - Free cash flow was $47 million, up 83% year-over-year, achieving a margin of 14%, the highest in the company's history [5][19] Business Line Data and Key Metrics Changes - Total scaled customer count grew to 572, a 20% year-over-year increase, with 180 super scaled customers, up 25% year-over-year [15][16] - Quarterly revenue per user (RPU) for scaled customers was $579,000, a 4% increase year-over-year, while super scaled customer RPU was $1.6 million, up 1% year-over-year [16] Market Data and Key Metrics Changes - Seven of the top ten verticals grew faster than 20% year-over-year, with notable growth in telecom, consumer discretionary sectors like retail, travel, hospitality, and automotive [17] - The direct mix in Q3 was 75%, consistent with Q2 and up from 70% in the previous year, indicating successful agency direct channel adoption [17] Company Strategy and Development Direction - The company is focused on AI-powered marketing, with the launch of Athena, an AI conversational agent designed to enhance client interactions and operational efficiency [8][10] - The acquisition of Marigold's enterprise software business is expected to enhance data capabilities and accelerate growth, with a completion target by the end of the year [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving a record pipeline and raised 2025 revenue guidance by $11 million, anticipating continued organic growth [7][22] - The company aims for durable, predictable, and profitable growth, with a target of over $100 million in incremental business from Zeta Live [8][41] Other Important Information - The company achieved the highest free cash flow margin in its history and is on track to meet long-term targets for Adjusted EBITDA margin and free cash flow conversion by 2030 [20][24] - The company repurchased 1.7 million shares for $28 million in Q3, continuing efforts to reduce dilution and stock-based compensation [20][21] Q&A Session Summary Question: How does Zeta's ROI compare to walled gardens? - Management stated that Zeta's platform provides a 6x return on investment, putting it on par with walled gardens, and clients are seeking new methodologies for customer acquisition [29][30] Question: What is the target for incremental business after Zeta Live? - Last year, the company closed $57 million in business post-Zeta Live and aims for $100 million this year, with a strong pipeline already in place [41][42] Question: How is the integration of LiveIntent performing? - Management expressed satisfaction with LiveIntent's performance, noting that they are accruing at 100% of their earnout and seeing new product synergies [44][45] Question: How will Athena impact cross-selling? - Athena is expected to drive significant cross-selling opportunities by simplifying client interactions and enabling easier access to multiple use cases [48][49] Question: What is the outlook for the replacement cycle opportunity? - The replacement cycle is at full scale, with an increase in RFP activity, and the company is well-positioned to capture this opportunity [80][81]

It's time now for our 360 round. For that, let's bring in our panel to discuss Palanteer's latest earnings. Joining us, Joe Castikley, the portfolio manager at the free markets ETF, and Shai Balour, the chief market strategist at Futurum.Shai, we'll start with you. You know, thoughts on the report. >> I mean, looking at the price action down 8%, you would assume that the earnings weren't great, but they're actually very impressive.Maybe the market just got ahead of itself, but longterm nothing has changed. ...

Core Insights - Palantir Technologies Inc. reported strong earnings for the September quarter, showcasing ongoing acquisition momentum in the commercial segment and overall growth [1] Group 1: Earnings Performance - The company highlighted a robust earnings scorecard for the September quarter, indicating strong financial performance [1] Group 2: Commercial Segment Growth - There is continual acquisition momentum in the commercial segment, which is a positive indicator for future growth [1]

Financial Data and Key Metrics Changes - Overall revenue grew 63% year-over-year and 18% sequentially, reaching $1.181 billion in Q3 [3][16] - The Rule of 40 score increased to 114, up 46 percentage points year-over-year and 20 percentage points since last quarter [3][14] - Adjusted operating margin reached 51%, exceeding prior guidance by 500 basis points [15][22] - Adjusted free cash flow for the trailing 12 months reached $2 billion for the first time [16][24] Business Line Data and Key Metrics Changes - U.S. commercial business revenue grew 121% year-over-year and 29% sequentially, accounting for 34% of overall revenue [4][15] - U.S. government business revenue grew 52% year-over-year and 14% sequentially [6][20] - Commercial revenue grew 73% year-over-year and 22% sequentially, surpassing U.S. government revenue for the fourth consecutive quarter [17][19] Market Data and Key Metrics Changes - Customer count increased by 45% year-over-year to 911 customers [16] - Revenue from the top 20 customers increased 38% year-over-year to $83 million per customer [16] - Total remaining deal value in the U.S. commercial business grew 199% year-over-year [19][21] Company Strategy and Development Direction - The company is focused on delivering AI leverage through AIP, emphasizing the importance of enterprise-wide AI adoption [5][7] - AIP is positioned as the only platform capable of delivering transformational impact in the enterprise AI market [6][10] - The company aims to maintain its unique culture and focus on value creation for customers while expanding its product offerings [66][67] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the momentum heading into Q4, with a clear mission to deliver production capabilities that turn AI from promise into performance [7][14] - The company highlighted the growing demand for AI in both commercial and government sectors, with significant opportunities ahead [68][69] - Management noted the importance of aligning internal dynamics with customer needs to sustain growth [66][67] Other Important Information - The company closed its highest-ever TCV quarter at $2.8 billion, up 151% year-over-year [16][20] - Adjusted gross margin was reported at 84% for the quarter [22] - The company repurchased approximately 2.6 million shares as part of its share repurchase program [24] Q&A Session Summary Question: What do you see as Palantir's unique differentiator that others may not understand? - The company builds software that works for the real world, focusing on solving problems rather than just selling software [36][37] Question: Can you walk through the accelerated sales cycles observed? - Customers are increasingly approaching the company to deploy solutions across their entire organization rather than just for specific use cases [48][50] Question: What changed from a behavioral perspective among customers? - Customers are realizing the limitations of other solutions and are eager to adopt Palantir's offerings for tangible results [62][63]

Q3 Business Update ©2025 Palanr Technologies Inc. 2025 PLANE Q3 Business Update Rule of 40 - Enterprise Soware Companies with >$1B in TTM Revenue Disclaimer Safe Harbor This presentaon contains "forward-looking" statements within the meaning of the federal securies laws, and these statements involve substanal risks and uncertaines. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, statements regarding our financial outlook, product develo ...

Financial Performance - Palanteer's adjusted EPS was 21 cents per share, exceeding estimates by 4 cents [1] - Revenue for the quarter was reported at $1.18 billion, also better than expected, with Q4 revenue forecasted at $1.33 billion [1] - Full-year revenue reached $4.4 billion, showing stronger performance [1] - Free cash flow guidance for 2025 was revised higher, indicating positive outlooks for both US commercial and government sectors [1] Market Metrics - The company achieved a Rule of 40 metric of 114%, which is significant in the enterprise software sector [2] - CEO Alex Karp described the results as potentially the best numbers ever recorded in enterprise software, marking a watershed moment for the company [2] Strategic Focus - Palanteer emphasizes its commitment to the US market, with approximately three-quarters of its revenue generated domestically [3] - The company aims to assist the average American in wealth creation rather than providing remedial education globally [4] Economic Impact - Karp discussed the concept of "worker available GDP," highlighting the importance of average workers participating in AI-driven economic changes [5] - There is a shift in value perception, where specialized skills are becoming more valuable in an AI-driven market compared to elite degrees without practical skills [5] Stock Performance - Following the positive report, Palanteer's shares increased by approximately 3% [5]

Group 1 - The stock split activity has increased in the third-quarter earnings season, with notable announcements from major tech companies [2] - ServiceNow announced a five-for-one stock split alongside strong third-quarter earnings, benefiting from a 22% year-over-year revenue growth due to AI software demand [3][4] - The company's net income grew by approximately 16%, and its remaining performance obligations reached about $11.4 billion, indicating strong future revenue potential [4] Group 2 - Netflix, with a share price over $1,000, has announced a 10-for-1 stock split, marking its third split, although it did not coincide with its earnings report [6][8] - Despite meeting revenue expectations, Netflix missed earnings due to an unexpected foreign tax expense, leading to a lowered operating margin guidance for the year [7] - Management indicated that ad revenue is expected to more than double this year, but no specific figures were provided [7]

Core Insights - Salesforce Inc. is recognized as one of the best stocks to buy according to Citadel LLC, with a significant announcement made during its annual Dreamforce 2025 event regarding its long-term strategy [1] - The company aims to exceed $60 billion in sales by FY 2030, indicating an organic compound annual growth rate (CAGR) of over 10% from FY 2026 sales of $41.3 billion [1][2] Group 1: Strategic Developments - Salesforce's management is shifting its platform focus from the traditional Customer360 framework to an AI-centric model called Agentforce 360, signaling a significant strategic transformation [3] - The acquisition of Informatica, announced in May 2025, is expected to close in early FY 2027, which is not included in the sales guidance [2] Group 2: Analyst Perspectives - Analysts at RBC Capital expressed a cautious view, maintaining a Sector Perform rating and a price target of $250 after attending the Dreamforce event, indicating skepticism about the company's new direction [3] - The analysts noted that Salesforce's move into automation capabilities will put it in direct competition with ServiceNow, leading them to apply a 15x CY 2026 free cash flow multiple, suggesting that the shares are fairly valued [4]

Group 1 - Man GLG holds $353.09 million worth of Salesforce, Inc. (NYSE:CRM) stock, representing 0.67% of its 13-F portfolio as of Q2 2025, indicating strong interest in the company [1] - TD Cowen reiterated its "Buy" rating on Salesforce, Inc. (NYSE:CRM) with a price target of $335, reflecting confidence in the company's performance [2] - The bullish stance from TD Cowen is based on Salesforce's strong positioning in the enterprise software market amid AI disruption concerns, with fiscal 2030 targets of over $60 billion in annual revenue and an organic growth CAGR of over 10% [3] Group 2 - TD Cowen emphasized Salesforce's competitive advantage through the integration of its deterministic business logic, Customer 360 platform, and AI-driven Agentforce ecosystem, suggesting potential for valuation expansion as AI adoption increases [4] - Salesforce, Inc. (NYSE:CRM) provides cloud-based customer relationship management, AI solutions, and digital labor platforms globally, highlighting its diverse service offerings [4]

Company Overview - ServiceNow, Inc. (NYSE:NOW) provides cloud-based workflow solutions through its Now Platform, which integrates AI, automation, analytics, and low-code development tools [2] Industry Insights - The enterprise software sector has faced significant challenges despite the overall positive performance of AI-related stocks in the market [1] - AI's capability to write code has negatively impacted enterprise software companies, leading to a decline in their stock performance [1] Investment Perspective - While ServiceNow is recognized for its potential as an investment, there are other AI stocks that may offer greater upside potential and lower downside risk [3]