Q1 2024 Earnings Highlights

Palantir reported a strong start to the year with Q1 revenue of $634 million, marking a 21% year-over-year increase.
U.S. commercial business experienced significant growth, with a 40% year-over-year increase in revenue to $150 million.
Government revenue in Q1 grew by 16% year-over-year to $335 million, with U.S. government revenue up 12% year-over-year.
International government revenue saw a 33% year-over-year increase.
First quarter Total Contract Value (TCV) booked was $904 million, up 128% year-over-year.
Net dollar retention was 111%, indicating strong expansions at existing customers and new customer acquisitions.

Palantir added 41 net new customers in the U.S. commercial sector during Q1.
Overall customer count increased by 42% year-over-year to 554 customers.
Significant deals and expansions were highlighted, including a 3-year expansion with a Fortune 500 industrial company and a $12 million ACV engagement with a Fortune 100 retail company.

The company emphasized the importance of its AI Product Integration (AIP) and its application across various industries.
Palantir highlighted successful boot camps, which have led to rapid deal closures and customer onboarding.
Strategic investments in AI and its application in both commercial and government sectors are driving growth.

Q2 2024 revenue is expected to be between $649 million and $653 million.
Full-year 2024 revenue guidance has been raised to between $2.677 billion and $2.689 billion.
Adjusted income from operations for the full year 2024 is projected to be between $868 million and $880 million.

Palantir’s AI strategy is differentiated by its focus on leveraging investments in ontology to turn unstructured inputs into structured actions.
The company does not see direct competition in its core markets, attributing its unique position to the combination of its software infrastructure and AI applications.

Palantir addressed shareholder questions on AI strategy and competitiveness, emphasizing the unique value of its approach to AI in the enterprise.
The company discussed the success of its boot camp go-to-market strategy, leading to significant deal growth and customer acquisition.

Question and Answer

Can you provide insight into how Palantir plans to address and implement the increasing demand from both government and commercial customers, including details on hiring, partnerships, and potential challenges?

Palantir is focusing on igniting a movement within customers through initiatives like Build with AIP and boot camps, enabling them to unleash their builders and tackle use cases independently.
The company is leveraging repeatable reference implementations, reference architectures, quick starts, and tutorials across various industries and functions to accelerate customer adoption and implementation.
Palantir is also expanding partnerships, such as the recent collaboration with Oracle, and engaging in discussions with hyperscalers to drive AI solutions beyond chat and expand distribution.

How has Palantir’s outspoken stance on geopolitics been received by stakeholders and the public?

The company acknowledges that its stance on geopolitics, particularly regarding partnerships and government collaborations, has been a point of internal disagreement and external scrutiny.
Palantir’s leadership believes that a regressive and corrupting ideology, which they see as prevalent in some societal movements, poses a significant risk to both the company and the world.
The firm asserts that its alignment with a belief in the superiority of the western way of living and its commitment to providing superior products to U.S. industry, government, and allies drive its actions and relationships with customers.

How does Palantir’s philosophy, culture, and product alignment contribute to its success and investor support?

The company’s unwavering commitment to its beliefs and culture, as well as its focus on building the best products in the world through full alignment with customers, has been crucial to its growth and success.
Palantir’s dedication to fighting for a stronger, more open, and less discriminatory society resonates with its investors, particularly individual investors who have stood by the company through challenges and misrepresentations.
The company’s refusal to compromise its values or engage in manipulative practices to drive sales sets it apart and contributes to its sustained growth and investor confidence.