Palantir Technologies Inc. (PLTR): history, ownership, mission, how it works & makes money

A Brief History of Palantir Technologies Inc.

Palantir Technologies Inc., founded in 2003, has evolved significantly over the years, positioning itself as a leader in big data analytics and artificial intelligence. The company specializes in data integration and analysis software that serves both commercial and government clients.

Company Milestones

• 2003: Palantir Technologies was founded in Palo Alto, California.
• 2010: The company launched its first product, Palantir Gotham, aimed at government agencies.
• 2013: Palantir secured a contract with the U.S. government worth $200 million.
• 2020: Palantir went public through a direct listing on the New York Stock Exchange (NYSE) under the ticker symbol PLTR.
• 2023: Launch of the AIP platform, integrating AI with existing software platforms.

Financial Performance

As of June 30, 2024, Palantir reported substantial growth in revenue and profitability. The company generated:

The company's revenue for the three months ended June 30, 2024, increased by 27% year-over-year, driven by growth in both government and commercial sectors. Specifically:

• Government revenue increased by 23% to $370.8 million.
• Commercial revenue increased by 33% to $307.4 million.

Stock Performance

Palantir's stock has shown considerable volatility since its public debut. As of June 30, 2024, the stock price was approximately $8.94 per share, reflecting a significant increase compared to its initial trading price. The company has also engaged in stock buybacks, repurchasing around 1.2 million shares for $26.7 million during the first half of 2024.

Liquidity and Capital Resources

As of June 30, 2024, Palantir reported:

Palantir had no outstanding debt as of June 30, 2024, and maintained a strong liquidity position with total cash and cash equivalents and marketable securities exceeding $4 billion.

Outlook and Future Prospects

The company continues to invest in product development and expansion into new markets, particularly focusing on integrating AI capabilities into its offerings. The ongoing demand for data analytics solutions, particularly in government and defense sectors, positions Palantir for sustained growth in the foreseeable future.

A Who Owns Palantir Technologies Inc. (PLTR)

Ownership Structure

As of June 30, 2024, Palantir Technologies Inc. has the following ownership structure:

Major Shareholders

The following table outlines the major shareholders of Palantir Technologies Inc. as of June 30, 2024:

Stock Options and Equity Compensation

As of June 30, 2024, Palantir Technologies Inc. had the following stock options and equity compensation details:

Recent Shareholder Actions

In August 2023, the Board of Directors authorized a stock repurchase program of up to $1.0 billion of the Company's outstanding shares of Class A common stock. As of June 30, 2024, approximately $973.3 million remained available for future repurchases.

During the six months ended June 30, 2024, Palantir repurchased 1.2 million shares of its Class A common stock for an aggregate amount of $26.7 million under the Share Repurchase Program.

Shareholder Voting Rights

Class A common stockholders have one vote per share, while Class B common stockholders have ten votes per share, significantly increasing the voting power of Class B shares, primarily held by the founders and early investors.

Institutional Ownership Trends

As of June 30, 2024, institutional investors held approximately 40% of the total shares outstanding, reflecting a growing interest in Palantir Technologies Inc. among large asset managers.

The following table shows the distribution of institutional ownership:

Palantir Technologies Inc. (PLTR) Mission Statement

Company Overview

Palantir Technologies Inc. is a software company that builds and deploys platforms designed to integrate, analyze, and visualize data. The mission statement emphasizes the commitment to transforming how organizations manage their data and make decisions.

Mission Statement

As of 2024, Palantir's mission statement articulates a vision of facilitating data-driven decision-making while ensuring compliance with legal, ethical, and security standards. The company aims to empower its customers, including government entities and commercial businesses, to harness the power of data to achieve their objectives effectively.

Financial Performance and Growth

For the three months ended June 30, 2024, Palantir generated:

• Revenue: $678.1 million
• Gross Profit: $549.6 million
• Income from Operations: $105.3 million
• Net Income: $135.6 million

This reflects a growth rate of 27% in revenue compared to $533.3 million in the same period of 2023. For the six months ended June 30, 2024, total revenue was $1.3 billion, an increase of 24% from the prior year.

Customer Base

As of June 30, 2024, Palantir had:

• 593 customers, up from 421 in 2023
• Average revenue from the top twenty customers: $57.3 million, a 9% increase from $52.6 million in 2023

Revenue Breakdown by Sector

Geographic Revenue Distribution

Strategic Partnerships and Innovations

Palantir continues to expand its product offerings and partnerships, focusing on integrating artificial intelligence with its existing platforms to enhance user experience and capabilities. The company aims to broaden its customer base across various sectors by leveraging its expertise in data integration and analysis.

Conclusion on Financial Outlook

Palantir's mission statement reflects its commitment to fostering a data-driven culture while ensuring compliance with necessary standards. The company's recent financial performance demonstrates significant growth, positioning it well for continued success in the evolving data landscape.

How Palantir Technologies Inc. (PLTR) Works

Business Model

Palantir Technologies Inc. generates revenue primarily through the sale of subscriptions for its software platforms, which include Palantir Cloud and On-Premises Software, along with ongoing operating and maintenance services. The contracts typically range from one to five years, with revenue recognized ratably over the contract term.

Financial Performance

For the three months ended June 30, 2024, Palantir reported:

• Total Revenue: $678.1 million, a 27% increase from $533.3 million in Q2 2023.
• Income from Operations: $105.3 million; adjusted income from operations (excluding stock-based compensation) was $253.6 million.
• Gross Profit: $549.6 million, reflecting a gross margin of 81%.

For the six months ended June 30, 2024:

• Total Revenue: $1.3 billion, a 24% increase from $1.1 billion in the same period in 2023.
• Income from Operations: $186.2 million; adjusted income from operations was $480 million.
• Gross Profit: $1.1 billion, maintaining a gross margin of 81%.

Customer Segments

As of June 30, 2024, Palantir had 593 customers, up from 421 customers in the same period in 2023. The revenue breakdown for Q2 2024 was:

• Government Revenue: $370.8 million, a 23% increase from $301.5 million in Q2 2023.
• Commercial Revenue: $307.4 million, a 33% increase from $231.8 million in Q2 2023.

U.S. commercial customer revenue increased significantly, reaching $159.2 million, compared to $103 million in Q2 2023, marking a 55% growth.

Operating Expenses

For Q2 2024, Palantir's operating expenses were as follows:

Stock-Based Compensation and Share Repurchase

For the six months ended June 30, 2024, total stock-based compensation was $267.4 million, up from $228.9 million in the same period in 2023. During the same period, the company repurchased 1.2 million shares for $26.7 million, with approximately $973.3 million remaining under its share repurchase program.

Liquidity and Capital Resources

As of June 30, 2024, Palantir had:

• Cash and Cash Equivalents: $4.0 billion.
• No outstanding debt balances.
• Undrawn revolving commitments of $500 million under its credit facility, maturing in March 2027.

Future Commitments

Palantir has committed to spend at least $1.95 billion over ten years on cloud hosting services, with $144.9 million satisfied for the contract year beginning October 1, 2023.

How Palantir Technologies Inc. (PLTR) Makes Money

Revenue Generation

Palantir Technologies generates revenue primarily through the sale of subscriptions to its software platforms, which are categorized into three main segments:

• Palantir Cloud
• On-Premises Software
• Professional Services

For the three months ended June 30, 2024, Palantir reported total revenue of $678.1 million, a 27% increase from $533.3 million in the same period of 2023. For the six months ended June 30, 2024, revenue reached $1.3 billion, compared to $1.1 billion for the same period in 2023, reflecting a growth rate of 24%.

Contractual Terms

Palantir typically offers contract terms ranging from one to five years, with revenue recognized ratably over the contract term. Contracts may include termination for convenience provisions.

Customer Base

As of June 30, 2024, Palantir had 593 customers, an increase from 421 customers in the previous year. The average revenue from the top twenty customers was $57.3 million, a 9% increase from $52.6 million in the previous year.

Cost Structure and Profitability

For the three months ended June 30, 2024, Palantir reported a gross profit of $549.6 million, resulting in a gross margin of 81%. The gross profit for the six months ended June 30, 2024, was $1.1 billion, maintaining the same gross margin percentage.

Operating Income

Operating income for the three months ended June 30, 2024, was $105.3 million, compared to $10.1 million in Q2 2023. For the six months ended June 30, 2024, operating income stood at $186.2 million, up from $14.2 million in the same period of 2023.

Research and Development Investment

Palantir invests significantly in research and development, with expenses of $78.8 million for Q2 2024, compared to $76.3 million in Q2 2023. For the six months, R&D expenses were $162.0 million, up from $146.5 million.

Cash Flow and Liquidity

As of June 30, 2024, Palantir had cash and cash equivalents totaling $4.0 billion. The company generated $273.8 million in net cash from operating activities for the six months ended June 30, 2024.

Stock Repurchase Program

In August 2023, Palantir's Board of Directors authorized a stock repurchase program of up to $1.0 billion. As of June 30, 2024, approximately $973.3 million remained available for future repurchases.