Le Lézard
Classified in: Science and technology, Business
Subjects: EARNINGS, Conference Call, Webcast

Palantir Reports Revenue Growth of 26% Y/Y for Q2 2022, US Commercial Revenue Up 120% Y/Y in Q2 2022


Palantir Technologies Inc. (NYSE:PLTR) today announced financial results for the second quarter ended June 30, 2022.

Q2 2022 Highlights

Q2 2022 TTM Highlights

Q2 2022 Financial Summary

(Amounts in thousands, except percentages and per share amounts)

Second Quarter

Amount

Revenue

$

473,010

 

 

 

Year-over-year growth

 

26

%

 

 

 

 

 

 

 

Amount

 

Margin

Loss from Operations

$

(41,745

)

 

(9

)%

Adjusted Income from Operations

$

107,849

 

 

23

%

Cash from Operations

$

62,431

 

 

13

%

Adjusted Free Cash Flow

$

60,906

 

 

13

%

Net Loss

$

(179,329

)

 

 

Adjusted Net Income

$

(21,120

)

 

 

Adjusted EBITDA

$

112,744

 

 

24

%

GAAP Net Loss Per Share, Diluted

$

(0.09

)

 

 

Adjusted Loss Per Share, Diluted

$

(0.01

)

 

 

Outlook

For Q3 2022, we expect revenue of between $474 - $475 million and adjusted income from operations of $54 - $55 million.

For full year 2022, we now expect revenue of between $1.9 - $1.902 billion and adjusted income from operations of $341 - $343 million. This revised guidance excludes any new major U.S. government awards and we believe this to be the base case.

Earnings Webcast

A live public webcast will be held at 6:00 a.m. MT / 8:00 a.m. ET today to discuss the results for our second quarter ended June 30, 2022 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantir-2022-q2. A replay of the webcast will be available at https://investors.palantir.com following the event.

An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir's Investor Relations website at https://investors.palantir.com, as well as a letter from our Chief Executive Officer, which will be available through Palantir's website at https://www.palantir.com.

Forward-Looking Statements

This press release and statements on our earnings webcast contain "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy, and plans (including strategy and plans relating to our sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our recent and potential investments in, and commercial contracts with, various entities, including special purpose acquisition companies and other privately-held or publicly-traded companies, our expectations regarding macroeconomic events, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as "guidance," "expect," "anticipate," "should," "believe," "hope," "target," "project," "plan," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall," and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the "SEC"), including in our annual report on Form 10-K for the fiscal year ended December 31, 2021 and other filings and reports that we may file from time to time with the SEC, including our quarterly report on Form 10-Q for the fiscal quarter ended June 30, 2022. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully grow our direct sales force and to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms easier to install and consume; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows; news or social media coverage about us, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; the impact of recent or future global macroeconomic and geopolitical events, such as Russia's invasion of Ukraine, foreign currency fluctuations, or rising inflation or interest rates in the U.S. and in other countries, on the business and operations of our company or of our existing or prospective customers and partners; and any breach or access to customer or third-party data.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

Additional Definitions

For the purpose of this press release and our earnings webcast, the value of deals closed and TCV closed each reflect the total contract value of contracts that have been entered into with, or awarded by, our government and commercial customers. Annual contract value ("ACV") closed is defined as the total value of contracts closed in the period divided by the dollar-weighted average contract duration of those same contracts.

The value of deals closed, TCV closed, and ACV closed include existing contractual obligations and presume the exercise of all contract options available to our customers and no termination of contracts; however, the majority of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization ("adjusted EBITDA"); adjusted EBITDA margin; adjusted net income; and adjusted earnings (loss) per share ("EPS"), diluted.

We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir's business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir's control. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.

Available Information

Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir's Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.

About Palantir Technologies Inc.

Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com.

Palantir Technologies Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Revenue

$

473,010

 

 

$

375,642

 

 

$

919,367

 

 

$

716,876

 

Cost of revenue (1)

 

102,224

 

 

 

90,926

 

 

 

196,627

 

 

 

165,037

 

Gross profit

 

370,786

 

 

 

284,716

 

 

 

722,740

 

 

 

551,839

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing (1)

 

168,875

 

 

 

162,379

 

 

 

329,360

 

 

 

298,476

 

Research and development (1)

 

88,171

 

 

 

110,524

 

 

 

176,772

 

 

 

208,995

 

General and administrative (1)

 

155,485

 

 

 

157,961

 

 

 

297,792

 

 

 

304,530

 

Total operating expenses

 

412,531

 

 

 

430,864

 

 

 

803,924

 

 

 

812,001

 

Loss from operations

 

(41,745

)

 

 

(146,148

)

 

 

(81,184

)

 

 

(260,162

)

Interest income

 

1,472

 

 

 

372

 

 

 

2,019

 

 

 

748

 

Interest expense

 

(670

)

 

 

(590

)

 

 

(1,264

)

 

 

(2,430

)

Other income (expense), net

 

(135,798

)

 

 

2,125

 

 

 

(195,668

)

 

 

(2,769

)

Loss before provision for (benefit from) income taxes

 

(176,741

)

 

 

(144,241

)

 

 

(276,097

)

 

 

(264,613

)

Provision for (benefit from) income taxes

 

2,588

 

 

 

(5,661

)

 

 

4,611

 

 

 

(2,559

)

Net loss

$

(179,329

)

 

$

(138,580

)

 

$

(280,708

)

 

$

(262,054

)

Net loss per share attributable to common stockholders, basic

$

(0.09

)

 

$

(0.07

)

 

$

(0.14

)

 

$

(0.14

)

Net loss per share attributable to common stockholders, diluted

$

(0.09

)

 

$

(0.07

)

 

$

(0.14

)

 

$

(0.14

)

Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, basic

 

2,054,799

 

 

 

1,894,606

 

 

 

2,045,604

 

 

 

1,858,085

 

Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, diluted

 

2,054,799

 

 

 

1,894,606

 

 

 

2,045,604

 

 

 

1,858,085

 

?????

(1) Includes stock-based compensation expense as follows (in thousands):

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

2021

 

 

2022

 

 

2021

Cost of revenue

$

11,211

 

$

24,029

 

$

22,888

 

$

40,006

Sales and marketing

 

49,405

 

 

72,008

 

 

98,677

 

 

129,294

Research and development

 

24,978

 

 

50,630

 

 

51,883

 

 

88,504

General and administrative

 

60,175

 

 

86,075

 

 

121,644

 

 

168,669

Total stock-based compensation

$

145,769

 

$

232,742

 

$

295,092

 

$

426,473

Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

 

 

 

 

As of June 30,

 

As of December 31,

 

 

2022

 

 

 

2021

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,358,393

 

 

$

2,290,674

 

Restricted cash

 

28,125

 

 

 

36,628

 

Accounts receivable, net

 

265,826

 

 

 

190,923

 

Marketable securities

 

99,210

 

 

 

234,153

 

Prepaid expenses and other current assets

 

150,885

 

 

 

110,872

 

Total current assets

 

2,902,439

 

 

 

2,863,250

 

Property and equipment, net

 

47,644

 

 

 

31,304

 

Restricted cash, noncurrent

 

28,647

 

 

 

39,612

 

Operating lease right-of-use assets

 

211,410

 

 

 

216,898

 

Other assets

 

92,198

 

 

 

96,386

 

Total assets

$

3,282,338

 

 

$

3,247,450

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

56,798

 

 

$

74,907

 

Accrued liabilities

 

187,568

 

 

 

155,806

 

Deferred revenue

 

219,441

 

 

 

227,816

 

Customer deposits

 

161,026

 

 

 

161,605

 

Operating lease liabilities

 

40,909

 

 

 

39,927

 

Total current liabilities

 

665,742

 

 

 

660,061

 

Deferred revenue, noncurrent

 

34,143

 

 

 

40,217

 

Customer deposits, noncurrent

 

15,412

 

 

 

33,699

 

Operating lease liabilities, noncurrent

 

216,059

 

 

 

220,146

 

Other noncurrent liabilities

 

2,158

 

 

 

2,297

 

Total liabilities

 

933,514

 

 

 

956,420

 

Stockholders' equity:

 

 

 

Common stock

 

2,063

 

 

 

2,027

 

Additional paid-in capital

 

8,119,876

 

 

 

7,777,085

 

Accumulated other comprehensive loss

 

(6,674

)

 

 

(2,349

)

Accumulated deficit

 

(5,766,441

)

 

 

(5,485,733

)

Total stockholders' equity

 

2,348,824

 

 

 

2,291,030

 

Total liabilities and stockholders' equity

$

3,282,338

 

 

$

3,247,450

 

Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

Operating activities

 

 

 

Net loss

$

(280,708

)

 

$

(262,054

)

Adjustments to reconcile net loss to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

9,207

 

 

 

7,999

 

Stock-based compensation

 

295,092

 

 

 

426,473

 

Deferred income taxes

 

(14

)

 

 

(2,162

)

Non-cash operating lease expense

 

20,246

 

 

 

14,435

 

Unrealized and realized (gain) loss from marketable securities, net

 

201,341

 

 

 

?

 

Other operating activities

 

(3,678

)

 

 

560

 

Changes in operating assets and liabilities:

 

 

 

Accounts receivable

 

(75,739

)

 

 

(83,883

)

Prepaid expenses and other current assets

 

(36,351

)

 

 

12,770

 

Other assets

 

8,087

 

 

 

(7,360

)

Accounts payable

 

(19,985

)

 

 

14,589

 

Accrued liabilities

 

28,850

 

 

 

9,070

 

Deferred revenue, current and noncurrent

 

(11,681

)

 

 

(3,679

)

Customer deposits, current and noncurrent

 

(19,314

)

 

 

28,668

 

Operating lease liabilities, current and noncurrent

 

(17,331

)

 

 

(15,795

)

Other noncurrent liabilities

 

(114

)

 

 

?

 

Net cash provided by operating activities

 

97,908

 

 

 

139,631

 

Investing activities

 

 

 

Purchases of property and equipment

 

(20,673

)

 

 

(1,405

)

Purchases of marketable securities

 

(89,500

)

 

 

?

 

Proceeds from sales of marketable securities

 

19,009

 

 

 

?

 

Net cash used in investing activities

 

(91,164

)

 

 

(1,405

)

Financing activities

 

 

 

Principal payments on borrowings

 

?

 

 

 

(200,000

)

Proceeds from the exercise of common stock options

 

47,541

 

 

 

376,688

 

Other financing activities

 

307

 

 

 

(1,744

)

Net cash provided by financing activities

 

47,848

 

 

 

174,944

 

Effect of foreign exchange on cash, cash equivalents, and restricted cash

 

(6,341

)

 

 

(1,496

)

Net increase in cash, cash equivalents, and restricted cash

 

48,251

 

 

 

311,674

 

Cash, cash equivalents, and restricted cash - beginning of period

 

2,366,914

 

 

 

2,128,146

 

Cash, cash equivalents, and restricted cash - end of period

$

2,415,165

 

 

$

2,439,820

 

Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Non-GAAP Reconciliations
Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages)
 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Loss from operations

$

(41,745

)

 

$

(146,148

)

 

$

(81,184

)

 

$

(260,162

)

Add: stock-based compensation

 

145,769

 

 

 

232,742

 

 

 

295,092

 

 

 

426,473

 

Add: employer payroll taxes related to stock-based compensation

 

3,825

 

 

 

30,133

 

 

 

11,331

 

 

 

66,999

 

Adjusted income from operations

$

107,849

 

 

$

116,727

 

 

$

225,239

 

 

$

233,310

 

Adjusted operating margin

 

23

%

 

 

31

%

 

 

24

%

 

 

33

%

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin (in thousands, except percentages)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net cash provided by operating activities

$

62,431

 

 

$

22,750

 

 

$

97,908

 

 

$

139,631

 

Add: cash paid for employer payroll taxes related to stock-based compensation

 

3,933

 

 

 

27,770

 

 

 

13,457

 

 

 

62,572

 

Less: purchases of property and equipment

 

(5,458

)

 

 

(697

)

 

 

(20,673

)

 

 

(1,405

)

Adjusted free cash flow

$

60,906

 

 

$

49,823

 

 

$

90,692

 

 

$

200,798

 

Adjusted free cash flow margin

 

13

%

 

 

13

%

 

 

10

%

 

 

28

%

Adjusted EBITDA (in thousands)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(179,329

)

 

$

(138,580

)

 

$

(280,708

)

 

$

(262,054

)

Less: interest income

 

(1,472

)

 

 

(372

)

 

 

(2,019

)

 

 

(748

)

Add: interest expense

 

670

 

 

 

590

 

 

 

1,264

 

 

 

2,430

 

Add: other (income) expense, net

 

135,798

 

 

 

(2,125

)

 

 

195,668

 

 

 

2,769

 

Add: provision for (benefit from) income taxes

 

2,588

 

 

 

(5,661

)

 

 

4,611

 

 

 

(2,559

)

Add: depreciation and amortization

 

4,895

 

 

 

4,762

 

 

 

9,207

 

 

 

7,999

 

Add: stock-based compensation

 

145,769

 

 

 

232,742

 

 

 

295,092

 

 

 

426,473

 

Add: employer payroll taxes related to stock-based compensation

 

3,825

 

 

 

30,133

 

 

 

11,331

 

 

 

66,999

 

Adjusted EBITDA

$

112,744

 

 

$

121,489

 

 

$

234,446

 

 

$

241,309

 

Adjusted Earnings (Loss) Per Share, Diluted (in thousands, except per share amounts)

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net loss

$

(179,329

)

 

$

(138,580

)

 

$

(280,708

)

 

$

(262,054

)

Add: stock-based compensation

 

145,769

 

 

 

232,742

 

 

 

295,092

 

 

 

426,473

 

Add: employer payroll taxes related to stock-based compensation

 

3,825

 

 

 

30,133

 

 

 

11,331

 

 

 

66,999

 

Add (less): income tax effect and adjustments (1)

 

8,615

 

 

 

(26,340

)

 

 

(2,122

)

 

 

(50,812

)

Adjusted net income (loss) attributable to common stockholders, diluted

$

(21,120

)

 

$

97,955

 

 

$

23,593

 

 

$

180,606

 

Weighted-average shares used in computing GAAP net loss per share, diluted

 

2,054,799

 

 

 

1,894,606

 

 

 

2,045,604

 

 

 

1,858,085

 

Adjusted weighted-average shares used in computing adjusted earnings (loss) per share, diluted (2)

 

2,054,799

 

 

 

2,310,731

 

 

 

2,170,385

 

 

 

2,323,271

 

Adjusted earnings (loss) per share, diluted

$

(0.01

)

 

$

0.04

 

 

$

0.01

 

 

$

0.08

 

????

(1)

Income tax effect is based on long-term estimated annual effective tax rates of 22.2% for the periods ended 2022 and 2021.

(2)

There were no additional dilutive securities included for the three months ended June 30, 2022 and an additional 125 million dilutive securities for the six months ended June 30, 2022 that were excluded from a GAAP perspective due to the Company's net loss position. There was an additional 416 million and 465 million dilutive securities for the three and six months ended June 30, 2021, respectively, that were excluded from a GAAP perspective due to the Company's net loss position.

 


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