Palantir Technologies Inc. (NYSE:PLTR) today announced financial
results for the second quarter ended June 30, 2021.
Q2 2021 Highlights
- Total revenue grew 49% year-over-year to $376 million
- US commercial revenue grew 90% year-over-year
- Closed 62 deals of $1 million or more, of which:
- 30 deals are $5 million or more
- 21 deals are $10 million or more
- 20 net new customers added in Q2 2021, total customers up 13%
quarter-over-quarter
- Commercial customer count increased 32%
quarter-over-quarter
- Cash flow from operations of $23 million, representing a 6%
margin
- Adjusted free cash flow of $50 million, representing a 13%
margin
- GAAP net loss per share, diluted of ($0.07)
- Adjusted earnings per share, diluted of $0.04
H1 2021 Highlights
- Total revenue grew 49% year-over-year to $717 million
- Commercial customer count increased 61% since December 31,
2020
- Cash flow from operations of $140 million, representing a 19%
margin
- Adjusted free cash flow of $201 million, representing a 28%
margin
Q2 2021 Financial Summary
(in thousands, except percentages and per
share amounts)
Second Quarter 2021
Amount
Revenue
$
375,642
Year-over-year growth
49
%
Amount
Margin
Loss from Operations
$
(146,148
)
(39
)%
Adjusted Income from Operations
$
116,727
31
%
Cash Flow from Operations
$
22,750
6
%
Adjusted Free Cash Flow
$
49,823
13
%
Net Loss
$
(138,580
)
Adjusted Net Income
$
97,955
Adjusted EBITDA
$
121,489
32
%
GAAP Net Loss Per Share, Diluted
$
(0.07
)
Adjusted Earnings Per Share, Diluted
$
0.04
Outlook
For Q3 2021, we expect:
- $385 million in revenue.
- Adjusted operating margin of 22%.
For full year 2021, we are raising our outlook for:
- Adjusted free cash flow to in excess of $300 million, up from
in excess of $150 million.
Per long-term guidance policy, as provided by our Chief
Executive Officer, Alex Karp, we continue to expect:
- Annual revenue growth of 30% or greater for 2021 through
2025.
Earnings Webcast
A 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,
2021 and financial outlook. The live public call can be accessed by
registering online at
https://event.on24.com/wcc/r/3196394/BE6143CF063C810BC19CA8A0CA2E396E.
A replay of the webcast will be available at
https://investors.palantir.com following the event.
A slide 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.
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, expected
benefits of and applications for our software platforms, business
strategy and plans (including strategy and plans relating to our
sales force, partnerships, and customers), 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, 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, 2020 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 quarter ended June 30, 2021. 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 salesforce 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 customers; our
ability to make our platforms easier to install and consume; our
ability to maintain and enhance our brand and reputation; 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; 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, the value of deals closed
reflects the total contract value and presumes the exercise of all
contract options 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 (loss) 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
net income (loss); and adjusted earnings per share (“EPS”),
diluted.
We believe these non-GAAP financial measures 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. Additionally, 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.
Palantir Technologies Inc. builds and deploys operating systems
for the modern enterprise. 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,
2021
2020
2021
2020
Revenue
$
375,642
$
251,889
$
716,876
$
481,216
Cost of revenue (1)
90,926
68,410
165,037
132,704
Gross profit
284,716
183,479
551,839
348,512
Operating expenses:
Sales and marketing (1)
162,379
102,518
298,476
201,171
Research and development (1)
110,524
86,815
208,995
152,615
General and administrative (1)
157,961
93,291
304,530
164,056
Total operating expenses
430,864
282,624
812,001
517,842
Loss from operations
(146,148
)
(99,145
)
(260,162
)
(169,330
)
Interest income
372
551
748
3,818
Interest expense
(590
)
(5,646
)
(2,430
)
(10,240
)
Change in fair value of warrants
—
(3,683
)
—
10,012
Other income (expense), net
2,125
(1,589
)
(2,769
)
4,511
Loss before provision (benefit) for income
taxes
(144,241
)
(109,512
)
(264,613
)
(161,229
)
Provision (benefit) for income taxes
(5,661
)
943
(2,559
)
3,500
Net loss
$
(138,580
)
$
(110,455
)
$
(262,054
)
$
(164,729
)
Net loss per share attributable to common
stockholders, basic
$
(0.07
)
$
(0.17
)
$
(0.14
)
$
(0.27
)
Net loss per share attributable to common
stockholders, diluted
$
(0.07
)
$
(0.17
)
$
(0.14
)
$
(0.28
)
Weighted-average shares of common stock
outstanding used in computing net loss per share attributable to
common stockholders, basic
1,894,606
640,450
1,858,085
616,150
Weighted-average shares of common stock
outstanding used in computing net loss per share attributable to
common stockholders, diluted
1,894,606
640,669
1,858,085
618,635
(1) Includes stock-based compensation
expense as follows (in thousands):
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Cost of revenue
$
24,029
$
17,832
$
40,006
$
25,900
Sales and marketing
72,008
39,932
129,294
58,395
Research and development
50,630
37,897
88,504
52,929
General and administrative
86,075
32,187
168,669
44,731
Total stock-based compensation expense
$
232,742
$
127,848
$
426,473
$
181,955
Palantir Technologies Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
June 30,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
2,341,156
$
2,011,323
Restricted cash
36,750
37,285
Accounts receivable
242,998
156,932
Prepaid expenses and other current
assets
41,648
51,889
Total current assets
2,662,552
2,257,429
Property and equipment, net
24,824
29,541
Restricted cash, noncurrent
61,914
79,538
Operating lease right-of-use assets
209,243
217,075
Other assets
117,135
106,921
Total assets
$
3,075,668
$
2,690,504
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
30,914
$
16,358
Accrued liabilities
166,252
158,546
Deferred revenue
194,511
189,520
Customer deposits
257,747
210,320
Operating lease liabilities
33,162
29,079
Total current liabilities
682,586
603,823
Deferred revenue, noncurrent
40,518
50,525
Customer deposits, noncurrent
62,732
81,513
Debt, noncurrent, net
—
197,977
Operating lease liabilities,
noncurrent
216,630
229,800
Other noncurrent liabilities
4,239
4,316
Total liabilities
1,006,705
1,167,954
Stockholders’ equity:
Common stock
1,937
1,792
Additional paid-in capital
7,294,369
6,488,857
Accumulated other comprehensive income
(loss)
65
(2,745
)
Accumulated deficit
(5,227,408
)
(4,965,354
)
Total stockholders’ equity
2,068,963
1,522,550
Total liabilities and stockholders’
equity
$
3,075,668
$
2,690,504
Palantir Technologies Inc.
Condensed Consolidated Statements
of Cash Flows
(in thousands)
(unaudited)
Six Months Ended June
30,
2021
2020
Operating activities
Net loss
$
(262,054
)
$
(164,729
)
Adjustments to reconcile net loss to net
cash provided by (used in) operating activities:
Depreciation and amortization
7,999
7,793
Stock-based compensation
426,473
181,955
Change in fair value of warrants
—
(10,012
)
Non-cash operating lease expense
14,435
19,831
Other operating activities
560
3,633
Changes in operating assets and
liabilities:
Accounts receivable
(83,883
)
(56,583
)
Prepaid expenses and other current
assets
12,770
(3,220
)
Other assets
(9,522
)
(9,937
)
Accounts payable
14,589
(35,012
)
Accrued liabilities
9,070
(30,366
)
Deferred revenue, current and
noncurrent
(3,679
)
19,645
Customer deposits, current and
noncurrent
28,668
(124,434
)
Operating lease liabilities, current and
noncurrent
(15,795
)
(25,815
)
Other noncurrent liabilities
—
921
Net cash provided by (used in) operating
activities
139,631
(226,330
)
Investing activities
Purchases of property and equipment
(1,405
)
(5,945
)
Proceeds from the sale of assets held for
sale
—
250
Net cash used in investing activities
(1,405
)
(5,695
)
Financing activities
Proceeds from the issuance of common
stock, net of issuance costs
—
542,922
Proceeds from issuance of debt, net of
issuance costs
—
149,683
Principal payments on borrowings
(200,000
)
(250,000
)
Proceeds from the exercise of common stock
options
376,688
28,824
Repurchase of common stock
—
(3,777
)
Other financing activities
(1,744
)
(377
)
Net cash provided by financing
activities
174,944
467,275
Effect of foreign exchange on cash, cash
equivalents, and restricted cash
(1,496
)
(197
)
Net increase in cash, cash equivalents,
and restricted cash
311,674
235,053
Cash, cash equivalents, and restricted
cash - beginning of period
2,128,146
1,401,962
Cash, cash equivalents, and restricted
cash - end of period
$
2,439,820
$
1,637,015
Palantir Technologies Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(in thousands)
(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,
2021
2020
2021
2020
Loss from operations
$
(146,148
)
$
(99,145
)
$
(260,162
)
$
(169,330
)
Add: stock-based compensation
232,742
127,848
426,473
181,955
Add: employer payroll taxes related to
stock-based compensation
30,133
—
66,999
—
Adjusted income from operations
$
116,727
$
28,703
$
233,310
$
12,625
Adjusted operating margin
31
%
11
%
33
%
3
%
Adjusted Free Cash Flow (in thousands,
except percentages)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net cash provided by (used in) operating
activities
$
22,750
$
60,854
$
139,631
$
(226,330
)
Less: purchases of property and
equipment
(697
)
(2,929
)
(1,405
)
(5,945
)
Add: cash paid for employer payroll taxes
related to stock-based compensation
27,770
—
62,572
—
Adjusted free cash flow
$
49,823
$
57,925
$
200,798
$
(232,275
)
Adjusted free cash flow margin
13
%
23
%
28
%
(48
)%
Adjusted EBITDA (in thousands,
except percentages)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net Loss
$
(138,580
)
$
(110,455
)
$
(262,054
)
$
(164,729
)
Less: interest income
(372
)
(551
)
(748
)
(3,818
)
Add: interest expense
590
5,646
2,430
10,240
Less: change in fair value of warrants
—
3,683
—
(10,012
)
Add: other (income) expense, net
(2,125
)
1,589
2,769
(4,511
)
Add: provision (benefit) for income
taxes
(5,661
)
943
(2,559
)
3,500
Add: depreciation and amortization
4,762
4,122
7,999
7,793
Add: stock-based compensation
232,742
127,848
426,473
181,955
Add: employer payroll taxes related to
stock-based compensation
30,133
—
66,999
—
Adjusted EBITDA
$
121,489
$
32,825
$
241,309
$
20,418
Adjusted EBITDA margin
32
%
13
%
34
%
4
%
Adjusted Earnings per Share, Diluted
(in thousands, except per share amounts)
Three Months Ended June
30,
Six Months Ended June
30,
2021
2020
2021
2020
Net loss attributable to common
stockholders
$
(138,580
)
$
(110,455
)
$
(262,054
)
$
(164,729
)
Less: change in fair value attributable to
participating securities
—
(171
)
—
(7,479
)
Net loss attributable to common
stockholders, diluted
(138,580
)
(110,626
)
(262,054
)
(172,208
)
Add: stock-based compensation
232,742
127,848
426,473
181,955
Add: employer payroll taxes related to
stock-based compensation
30,133
—
66,999
—
Less: income tax effect related to
adjustments (1)
(26,340
)
(4,052
)
(50,812
)
(4,580
)
Adjusted net income attributable to common
stockholders, diluted
$
97,955
$
13,170
$
180,606
$
5,167
Weighted-average shares used in computing
GAAP net loss per share, diluted
1,894,606
640,669
1,858,085
618,635
Adjusted weighted-average shares used in
computing adjusted earnings per share, diluted (2)
2,310,731
920,993
2,323,271
927,603
Adjusted earnings per share, diluted
$
0.04
$
0.01
$
0.08
$
0.01
——————
(1) Income tax effect is based on
long-term estimated annual effective tax rates of 22.2% and 22.1%
for the periods ended 2021 and 2020, respectively.
(2) Includes an additional 416 million and
465 million dilutive securities for the three and six months ended
June 30, 2021, respectively, and an additional 280 million and 309
million dilutive securities for the three and six months ended June
30, 2020, respectively, that are excluded from a GAAP perspective
due to the Company’s net loss position.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210812005243/en/
Investor Relations Rodney Nelson
investors@palantir.com
Media Lisa Gordon media@palantir.com
Palantir Technologies (NYSE:PLTR)
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