Palantir Technologies Inc (PLTR) Q4 2024 Earnings Call Highlights: Record Revenue Growth and ...

In This Article:

  • Revenue Growth: 36% year over year in Q4; 29% for the full year 2024.

  • US Business Revenue Growth: 52% year over year in Q4.

  • US Commercial Revenue Growth: 64% year over year in Q4; 54% for the full year.

  • US Government Revenue Growth: 45% year over year in Q4.

  • Adjusted Operating Margin: 45% in Q4, the strongest in company history.

  • Adjusted Free Cash Flow: $517 million in Q4; $1.25 billion for the full year, representing a 44% margin.

  • Customer Count Growth: 43% year over year to 711 customers.

  • Top 20 Customers Revenue: $65 million per customer, a 18% year over year increase.

  • Commercial TCV Booked: $995 million in Q4, a 42% year over year growth.

  • US Commercial TCV Booked: $803 million in Q4, a 134% year over year growth.

  • International Government Revenue Growth: 28% year over year in Q4.

  • Net Dollar Retention: 120%, an increase of 200 basis points from last quarter.

  • Total Remaining Deal Value: $5.43 billion, a 40% year over year increase.

  • Adjusted Gross Margin: 83% for Q4 and the full year.

  • GAAP Net Income: $79 million in Q4; $462 million for the full year.

  • GAAP Earnings Per Share: $0.03 in Q4; $0.19 for the full year.

  • Adjusted Earnings Per Share: $0.14 in Q4; $0.41 for the full year.

  • Cash and Equivalents: $5.2 billion at the end of Q4.

  • Q1 2025 Revenue Guidance: $858 million to $862 million.

  • Full Year 2025 Revenue Guidance: $3.741 billion to $3.757 billion.

Release Date: February 03, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

  • Palantir Technologies Inc (NASDAQ:PLTR) reported a 36% year-over-year revenue growth in Q4 2024, exceeding prior guidance by over 900 basis points.

  • The US business showed significant strength, with a 52% year-over-year growth in Q4, driven by both commercial and government sectors.

  • Palantir Technologies Inc (NASDAQ:PLTR) achieved a Rule of 40 score of 81 in Q4, indicating strong revenue growth combined with profitability.

  • The company closed $1.8 billion in total contract value (TCV) in Q4, marking a 56% increase year over year.

  • Palantir Technologies Inc (NASDAQ:PLTR) reported an exceptional cash flow quarter with adjusted free cash flow of $517 million, representing a margin of 63%.

Negative Points

  • International commercial revenue growth was relatively modest at 3% year over year in Q4.

  • Revenue from strategic commercial contracts is expected to decline significantly in Q1 2025.

  • The European market showed slower growth, with only 4% growth on 13% of the company's business.

  • Palantir Technologies Inc (NASDAQ:PLTR) faces challenges in expanding its presence in Europe due to cultural and strategic differences.

  • The company anticipates a more significant increase in expenses in 2025 as it invests in technical hires and product pipeline.