Palantir Technologies Inc. (PLTR) Bundle
A Brief History of Palantir Technologies Inc.
Company Overview
Palantir Technologies Inc. was founded in 2003, primarily to assist government agencies in counter-terrorism investigations and operations. Over the years, the company has expanded its services to include commercial sectors, providing data analytics solutions to a wide array of industries.
Recent Financial Performance
As of the third quarter of 2024, Palantir reported significant revenue growth. For the three months ended September 30, 2024, the company generated $725.5 million in revenue, a 30% increase from $558.2 million in the same period of 2023. For the nine months ended September 30, 2024, revenue reached $2.0 billion, up 26% from $1.6 billion year-over-year.
| Period | Revenue (in million USD) | Growth Rate |
|---|---|---|
| Q3 2024 | 725.5 | 30% |
| Q3 2023 | 558.2 | - |
| 9M 2024 | 2,037.988 | 26% |
| 9M 2023 | 1,616.662 | - |
Income and Operational Metrics
In the third quarter of 2024, Palantir reported an income from operations of $113.1 million, significantly up from $40 million in Q3 2023. For the nine months ended September 30, 2024, the income from operations was $299.4 million compared to $54.2 million in the previous year. The gross profit for Q3 2024 was $578.9 million, reflecting a gross margin of 80%.
| Period | Income from Operations (in million USD) | Gross Profit (in million USD) | Gross Margin |
|---|---|---|---|
| Q3 2024 | 113.1 | 578.9 | 80% |
| Q3 2023 | 40.0 | 450.2 | 81% |
| 9M 2024 | 299.4 | 1,600.0 | 81% |
| 9M 2023 | 54.2 | 1,300.0 | 80% |
Customer Base and Market Expansion
As of September 30, 2024, Palantir had 629 customers, a significant increase from 453 customers in the prior year. The average revenue from the top twenty customers rose to $60.1 million, up 12% from $53.7 million in 2023.
Stock Performance and Share Repurchase Program
In August 2023, Palantir's Board of Directors authorized a stock repurchase program of up to $1.0 billion. By September 30, 2024, the company had repurchased 1.8 million shares for an aggregate amount of $45.6 million. Approximately $954.4 million remained available for future repurchases under this program.
| Details | Amount (in million USD) |
|---|---|
| Authorized Stock Repurchase | 1,000.0 |
| Shares Repurchased (millions) | 1.8 |
| Amount Spent on Repurchases | 45.6 |
| Remaining Authorization | 954.4 |
Liquidity and Capital Resources
As of September 30, 2024, Palantir had cash, cash equivalents, and short-term U.S. Treasury securities totaling $4.6 billion. The company reported an accumulated deficit balance of $5.3 billion during the same period.
| Liquidity Metrics | Amount (in billion USD) |
|---|---|
| Cash and Cash Equivalents | 4.6 |
| Accumulated Deficit | 5.3 |
A Who Owns Palantir Technologies Inc. (PLTR)
Shareholder Overview
As of September 30, 2024, Palantir Technologies Inc. has a total of 2,269,808,627 shares of Class A common stock outstanding, 96,366,544 shares of Class B common stock, and 1,005,000 shares of Class F common stock.
Major Shareholders
The ownership structure of Palantir is characterized by a significant concentration among its founders and institutional investors. The following table summarizes the top shareholders as of the latest reporting period:
| Shareholder | Share Class | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Peter Thiel (Founder) | Class A & B | Approximately 115 million | 5.1% |
| Alexander Karp (CEO) | Class A & B | Approximately 60 million | 2.6% |
| Stephen Cohen (Founder) | Class A & B | Approximately 50 million | 2.2% |
| BlackRock, Inc. | Institutional | Approximately 7.1% | 7.1% |
| Vanguard Group, Inc. | Institutional | Approximately 8.5% | 8.5% |
| Other Institutional Investors | Various | Approximately 30% | 30% |
Founder Voting Agreement
Palantir operates under a Founder Voting Agreement which grants significant voting power to its founders. This agreement requires any founder to hold at least 100 million shares to maintain their voting rights.
Institutional Ownership
As of September 30, 2024, institutional investors hold a substantial portion of Palantir's stock, with the following breakdown:
| Institution | Shares Owned | Ownership Percentage |
|---|---|---|
| BlackRock, Inc. | Approximately 162 million | 7.1% |
| Vanguard Group, Inc. | Approximately 193 million | 8.5% |
| Fidelity Investments | Approximately 120 million | 5.3% |
| Other Institutional Investors | Approximately 700 million | 30% |
Recent Developments
In August 2023, Palantir authorized a share repurchase program of up to $1 billion. As of September 30, 2024, approximately $954.4 million remains available for future repurchases.
Stock-Based Compensation
As of September 30, 2024, unrecognized stock-based compensation expense related to options and SARs outstanding was $524.3 million and $176.5 million, respectively.
Stock Performance
The stock price of Palantir as of September 30, 2024, was approximately $7.32, reflecting the company's market valuation.
Palantir Technologies Inc. (PLTR) Mission Statement
Mission Statement Overview
Palantir Technologies Inc. focuses on enabling organizations to leverage their data to address complex challenges, facilitating informed decision-making while ensuring compliance with legal, ethical, and security standards. The company aims to forge partnerships that transform how institutions utilize data to achieve their objectives.
Financial Performance Metrics
For the three months ended September 30, 2024, Palantir reported:
| Metric | Q3 2024 | Q3 2023 | Growth Rate |
|---|---|---|---|
| Revenue | $725.5 million | $558.2 million | 30% |
| Income from Operations | $113.1 million | $40.0 million | 183% |
| Gross Profit | $578.9 million | $450.2 million | 29% |
| Gross Margin | 80% | 81% | -1% |
Customer Base and Revenue Composition
As of September 30, 2024, Palantir had:
- 629 customers, up from 453 in Q3 2023.
- Average revenue from the top twenty customers was $60.1 million, a 12% increase from $53.7 million in Q3 2023.
Revenue Breakdown by Segment
For the three months ended September 30, 2024, revenue by segment was as follows:
| Segment | Revenue (Q3 2024) | Revenue (Q3 2023) |
|---|---|---|
| Government | $408.3 million | $307.6 million |
| Commercial | $317.2 million | $250.6 million |
| Total Revenue | $725.5 million | $558.2 million |
Market and Geographic Distribution
Revenue distribution for the nine months ended September 30, 2024 was as follows:
| Region | Revenue (9M 2024) | Percentage of Total Revenue |
|---|---|---|
| United States | $1.7 billion | 66% |
| International | $0.9 billion | 34% |
Stockholder Equity and Financial Position
As of September 30, 2024, Palantir's financial position included:
| Metric | Amount |
|---|---|
| Total Assets | $5.8 billion |
| Total Liabilities | $1.2 billion |
| Total Stockholders' Equity | $4.5 billion |
Stock Performance and Valuation
As of September 30, 2024, Palantir's stock performance metrics included:
| Metric | Value |
|---|---|
| Basic EPS | $0.06 |
| Diluted EPS | $0.06 |
| Weighted Average Shares (Diluted) | 2.46 billion |
How Palantir Technologies Inc. (PLTR) Works
Business Model
Palantir Technologies Inc. operates primarily on a subscription-based business model, providing software platforms to both government and commercial clients. These platforms include Palantir Foundry and Palantir Gotham, designed to help organizations integrate, visualize, and analyze data.
Financial Performance
For the three months ended September 30, 2024, Palantir reported:
- Revenue: $725.5 million, a 30% increase from $558.2 million in the same period of 2023.
- Income from operations: $113.1 million.
- Adjusted income from operations: $275.5 million, excluding stock-based compensation.
- Gross profit: $578.9 million, with a gross margin of 80%.
For the nine months ended September 30, 2024:
- Revenue: $2.0 billion, a 26% increase from $1.6 billion in 2023.
- Income from operations: $299.4 million.
- Adjusted income from operations: $755.5 million.
- Gross profit: $1.6 billion, with a gross margin of 81%.
Customer Base
As of September 30, 2024, Palantir had:
- 629 customers, up from 453 in 2023.
- Average revenue from the top twenty customers: $60.1 million, a 12% increase from $53.7 million in 2023.
Revenue Breakdown
The revenue generated during the three months ended September 30, 2024, is categorized as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| Government | $408.3 | 56.3% |
| Commercial | $317.2 | 43.7% |
| Total | $725.5 | 100% |
Expenses
For the three months ended September 30, 2024, expenses included:
- Research and development: $86.8 million.
- General and administrative: $90.8 million.
- Total stock-based compensation: $142.4 million.
Liquidity and Capital Resources
As of September 30, 2024, Palantir held:
- Cash, cash equivalents, and short-term U.S. Treasury securities: $4.6 billion.
- No outstanding debt balances.
- Undrawn credit facility commitments of $500 million.
Share Repurchase Program
In August 2023, Palantir's Board of Directors authorized a stock repurchase program of up to $1.0 billion. As of September 30, 2024:
- 1.8 million shares repurchased for a total of $45.6 million.
- Approximately $954.4 million remains available for future repurchases.
Stock-Based Compensation
As of September 30, 2024, the total unrecognized stock-based compensation expense related to options and SARs was:
- $524.3 million for options.
- $176.5 million for SARs.
Income Tax Provision
For the three months ended September 30, 2024, the provision for income taxes was:
- Provision: $7.8 million.
For the nine months ended September 30, 2024:
- Provision: $17.7 million.
Earnings Per Share
For the three months ended September 30, 2024:
- Basic EPS: $0.06.
- Diluted EPS: $0.06.
For the nine months ended September 30, 2024:
- Basic EPS: $0.17.
- Diluted EPS: $0.16.
Geographic Revenue Distribution
Revenue by geography for the three months ended September 30, 2024:
| Geography | Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|
| United States | $499.0 | 69% |
| United Kingdom | $69.5 | 10% |
| Rest of World | $157.0 | 21% |
| Total | $725.5 | 100% |
How Palantir Technologies Inc. (PLTR) Makes Money
Revenue Model
Palantir Technologies Inc. generates revenue primarily through three segments: Palantir Cloud subscriptions, On-Premises Software, and Professional Services. The revenue is recognized ratably over the contract term, which typically ranges from one to five years. As of September 30, 2024, Palantir reported total revenue of $2.04 billion, marking a 26% increase from $1.62 billion in the same period in 2023.
| Revenue Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Change (%) |
|---|---|---|---|
| Government | $408.3 | $307.6 | 33% |
| Commercial | $317.2 | $250.6 | 27% |
| Total Revenue | $725.5 | $558.2 | 30% |
Customer Base
As of September 30, 2024, Palantir had 629 customers, up from 453 in the previous year. The average revenue for the top twenty customers increased to $60.1 million, reflecting a 12% growth compared to $53.7 million in the same period in 2023.
Cost Structure
The cost of revenue for Q3 2024 was $146.6 million, resulting in a gross profit of $578.9 million, which translates to a gross margin of 80%. This is consistent with the previous year's gross margin of 81% when excluding stock-based compensation.
| Financial Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Cost of Revenue | $146.6 million | $107.9 million |
| Gross Profit | $578.9 million | $450.2 million |
| Gross Margin (%) | 80% | 81% |
Operating Income
For the three months ending September 30, 2024, Palantir reported an income from operations of $113.1 million, compared to $40.0 million in the same period of 2023. The adjusted income from operations, which excludes stock-based compensation, was $275.5 million for Q3 2024, up from $163.3 million in Q3 2023.
| Income Metrics | Q3 2024 | Q3 2023 |
|---|---|---|
| Income from Operations | $113.1 million | $40.0 million |
| Adjusted Income from Operations | $275.5 million | $163.3 million |
Geographic Revenue Breakdown
In Q3 2024, Palantir generated 69% of its revenue from the United States, 10% from the United Kingdom, and 21% from the rest of the world. Revenue from U.S. customers was $498.9 million, an increase from $345.5 million in Q3 2023.
| Geographic Revenue | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | Percentage of Total Revenue |
|---|---|---|---|
| United States | $498.9 | $345.5 | 69% |
| United Kingdom | $69.5 | $64.4 | 10% |
| Rest of World | $157.0 | $148.3 | 21% |
Future Outlook
Palantir continues to expand its customer base, focusing on both government and commercial sectors. The company anticipates sustained revenue growth from existing customers as they increase their adoption of Palantir's software products. The management's strategy includes enhancing partnerships and exploring new market opportunities to drive future revenue growth.
As of September 30, 2024, Palantir held cash, cash equivalents, and short-term U.S. Treasury securities totaling $4.6 billion, providing a strong liquidity position to support ongoing operations and strategic initiatives.
Palantir Technologies Inc. (PLTR) DCF Excel Template
5-Year Financial Model
40+ Charts & Metrics
DCF & Multiple Valuation
Free Email Support
Updated on 16 Nov 2024
Resources:
- Palantir Technologies Inc. (PLTR) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Palantir Technologies Inc. (PLTR)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Palantir Technologies Inc. (PLTR)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.