Palantir Technologies Inc. (NASDAQ: PLTR) has recently unveiled its financial performance for the fourth quarter ending on December 31, 2024. The company showcased robust growth in key sectors, with a significant portion of its success attributed to its artificial intelligence (AI) solutions, which seamlessly integrate cutting-edge technology into both commercial and government domains.
At the core of Palantir’s operations lies the fusion of AI and machine learning, aiding clients in analyzing data more effectively and making informed decisions. The company collaborates closely with entities such as the U.S. Department of Defense, intelligence agencies, and global allies to enhance data management, fortify decision-making processes, and bolster security measures. This pivotal role in both public and private sectors underscores Palantir’s influence in shaping the future of data analytics. Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc., expressed his satisfaction with the company’s performance, stating, “Our business results continue to impress, showcasing our deep-rooted position at the forefront of the AI revolution. Our initial insights regarding the commoditization of large language models have transitioned from theory to reality. I extend my congratulations to Palantirians for their exceptional contributions to our growth, rightfully earning recognition for their efforts through market-vesting stock appreciation rights (SARs).”
The U.S. market played a significant role in fueling Palantir’s strong performance in the fourth quarter. Total revenue surged to $828 million, marking a 36% year-over-year increase and a 14% boost from the previous quarter. Notably, U.S. revenue witnessed a remarkable 52% growth compared to the prior year, reaching $558 million. Within the commercial sector, U.S. revenue soared by 64% year-over-year to $214 million, while government revenue experienced a 45% uptick, reaching $343 million. Palantir also achieved a milestone by securing $803 million in total contract value (TCV) for U.S. commercial deals, reflecting a substantial 134% surge year-over-year. Karp emphasized the relentless demand for large language models from U.S. commercial institutions and highlighted the swift evolution of the Artificial Intelligence Platform (AIP) from a prototype to a fully-fledged product, significantly contributing to new revenue streams and customer acquisition.
During the fourth quarter, Palantir delivered impressive operational and financial results, underscoring its robust performance. The company generated $460 million in cash from operations, boasting a healthy 56% margin. Additionally, its adjusted free cash flow surged to $517 million, with an elevated margin of 63%. On the earnings front, Palantir reported a GAAP net income of $79 million, equivalent to $0.03 per share. Excluding one-time stock-related expenses, net income witnessed a substantial increase to $165 million, or $0.07 per share. Furthermore, the company’s adjusted earnings per share (EPS) rose to $0.14, contributing to enhanced shareholder value.
Palantir expanded its customer base at a rapid pace, with a 43% growth compared to the previous year. The company sealed 129 deals valued at least $1 million, with 58 deals exceeding $5 million and 32 deals surpassing $10 million. The remaining deal value (RDV) for U.S. commercial contracts soared to $1.79 billion, nearly doubling from the previous year, illustrating Palantir’s expanding influence across various industries.
Amidst sustained growth, Palantir delivered robust results for the full fiscal year, with total revenue hitting $2.87 billion, marking a commendable 29% growth compared to the previous year. The U.S. market played a pivotal role, contributing $1.9 billion to the total revenue. Commercial revenue witnessed a remarkable surge, climbing by 54% to $702 million, while government revenue increased by 30%, reaching $1.2 billion. The company also reported robust cash flow, generating $1.15 billion from operations with a solid 40% margin. With an annual net income of $462 million and $5.2 billion in cash and short-term investments, Palantir is poised for further growth and expansion in the future.
Looking ahead to 2025, Palantir anticipates strong financial performance, projecting solid growth across key areas. For the first quarter of 2025, the company expects revenue between $858 million and $862 million, with adjusted operating income ranging from $354 million to $358 million. For the full year, Palantir envisions total revenue between $3.741 billion and $3.757 billion, driven by a projected growth rate of at least 54% in U.S. commercial revenue, exceeding $1.079 billion. The company also anticipates adjusted operating income to range between $1.551 billion and $1.567 billion, with adjusted free cash flow between $1.5 billion and $1.7 billion. Palantir remains committed to reporting GAAP operating income and net income each quarter, ensuring transparency as it navigates ambitious targets.
Palantir Technologies UK achieved carbon neutrality in 2023, marking a significant milestone in its sustainability journey. The company retired carbon credits to offset all remaining emissions, aligning with its 2021 Climate Pledge. Committed to achieving Net Zero, Palantir is focused on further reducing emissions and aligning with the UK Carbon Reduction Plan, which aims to limit global warming to 1.5°C. While acknowledging its relatively small direct emissions on a global scale, Palantir recognizes its impact in empowering customers to track and reduce emissions, particularly within complex supply chains. The company’s tools are instrumental in facilitating the transition to clean energy and adopting e-mobility solutions, paving the way for a Net Zero future.
Palantir has collaborated with leading organizations to accelerate global sustainability efforts, playing a crucial role in helping partners decarbonize supply chains, enhance grid resilience, and deploy EV networks. Its innovative Agora platform, introduced in 2022, enables global commodity companies to monitor and reduce emissions across the value chain. The company also supports renewable energy projects and utilizes digital twin technology to enhance efficiency in energy-intensive sectors.
Cloud computing has emerged as a vital component in modern technological landscapes, offering immense potential for innovation and efficiency. However, the environmental impact of cloud compute and data center emissions cannot be overlooked. As businesses increasingly rely on cloud services, mitigating the carbon footprint associated with these operations becomes imperative. Palantir is at the forefront of addressing these challenges, leveraging its expertise in AI and data analytics to drive sustainable practices and minimize environmental impact in the realm of cloud computing.
