In This Article:
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Revenue Growth: 39% year-over-year, reaching $884 million.
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US Revenue: Grew 55% year-over-year to $628 million.
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US Commercial Revenue: Increased 71% year-over-year, surpassing $1 billion annual run rate.
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US Government Revenue: Grew 45% year-over-year to $373 million.
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Adjusted Operating Margin: 44%, an 800 basis points increase from the previous year.
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Adjusted Free Cash Flow: $370 million, representing a 42% margin.
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Customer Count: Increased 39% year-over-year to 769 customers.
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Net Dollar Retention: 124%, up 400 basis points from last quarter.
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GAAP Net Income: $214 million, representing a 24% margin.
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GAAP Earnings Per Share: $0.08.
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Adjusted Earnings Per Share: $0.13.
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Total Remaining Deal Value: $5.97 billion, up 45% year-over-year.
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Cash and Cash Equivalents: $5.4 billion at the end of the quarter.
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Q2 2025 Revenue Guidance: Between $934 million and $938 million.
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Full Year 2025 Revenue Guidance: Raised to between $3.89 billion and $3.902 billion.
Release Date: May 05, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Palantir Technologies Inc (NASDAQ:PLTR) reported a 39% year-over-year revenue growth, showcasing strong performance.
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US revenue grew 55% year-over-year, now constituting 71% of the overall business, with US commercial revenue growing 71% year-over-year.
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The company achieved a $1 billion annual run rate in its US commercial business for the first time.
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Palantir Technologies Inc (NASDAQ:PLTR) raised its full-year 2025 revenue guidance midpoint to $3.896 billion, representing a 36% year-over-year growth rate.
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The company reported a strong cash flow quarter with adjusted free cash flow of $370 million, representing a margin of 42%.
Negative Points
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International commercial revenue declined 5% year-over-year and 11% sequentially, driven by continued headwinds in Europe.
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Revenue from strategic commercial contracts is expected to decrease in the second quarter of 2025 compared to the same period in 2024.
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The company anticipates a more significant increase in expenses in 2025 due to investments in technical talent and AI production use cases.
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There are concerns about the impact of US Department of Defense budget cuts on current and future contracts.
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Palantir Technologies Inc (NASDAQ:PLTR) faces challenges in Europe, where the market is not yet fully embracing AI, affecting growth potential in that region.
Q & A Highlights
Q: How does Palantir plan to sustain its competitive advantage in AI, particularly in light of growing competition? A: Shyam Sankar, Executive Vice President, Chief Technology Officer, explained that Palantir's advantage lies in its Ontology, which positions AIP to capture the capabilities of raw LLMs and turn them into business value. AIP is uniquely positioned for mixed human-AI teams, which is crucial for transforming enterprises.