Palantir Technologies Inc. (NYSE: PLTR):
Summary
- $1.1 billion in revenue for full year 2020, up 47%
year-over-year
- $322 million in revenue for Q4 2020, up 40% year-over-year
- New contracts in Q4 2020 include Rio Tinto, PG&E, bp, U.S.
Army, U.S. Air Force, FDA, and NHS
- Expects Q1 2021 revenue growth of 45% year-over-year
Full Year 2020 Financial Results
In 2020, we generated $1.1 billion in revenue, up 47%
year-over-year.
Our average revenue per customer was $7.9 million, up 41%
year-over-year. Our average revenue from our top 20 customers was
$33.2 million, up 34% year-over-year.
The number of customers generating more than $1 million in
annual revenue grew 32% year-over-year. The number of customers
generating more than $5 million in annual revenue grew 54%
year-over-year. The number of customers generating more than $10
million in annual revenue grew 50% year-over-year.
Q4 2020 Financial Results
In Q4 2020, we generated $322 million in revenue, up 40%
year-over-year.
We incurred a loss from operations of $156.6 million, which
includes $241.8 million in stock-based compensation and $18.9
million in related employer payroll taxes.
Our income from operations was $104.1 million, after adjusting
for stock-based compensation and related employer payroll
taxes.
In Q4 2020, we signed 21 contracts each worth $5 million or more
in total contract value, including 12 contracts each worth $10
million or more in total contract value.
Outlook
For full year 2021, we continue to expect:
- Year-over-year revenue growth of greater than 30%.
For Q1 2021, we expect:
- Year-over-year revenue growth of 45%.
- Adjusted operating margin of 23%.
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 fourth quarter and fiscal year
ended December 31, 2020 and financial outlook. The live public call
can be accessed by registering online at
https://event.on24.com/wcc/r/2947836/5C123DA27C8C4F9CBFBC27AC3FEABE81.
Following the call, a replay will be available at (888) 869-1189 or
(706) 643-5902 until midnight (ET) on February 23, 2021.
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.
Non-GAAP Financial Measures
This press release and the accompanying tables contain the
non-GAAP financial measures income (loss) from operations excluding
stock-based compensation, related employer payroll taxes, and
non-recurring direct listing charges (also referred to as “adjusted
income (loss) from operations”) and adjusted operating margin.
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 expenses
primarily related to the direct listing, as they are a one-time
nonrecurring charge, and 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. 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.
Additional Definitions
For the purpose of this press release, total contract value
presumes the exercise of all contract options and no termination of
contracts; however, the majority of our contracts are subject to
termination for convenience provisions and there can be no
guarantee that contracts are not terminated or that contract
options will be exercised.
Forward-Looking Statements
This press release contains “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 and partnerships), market trends
and market size, opportunities (including growth opportunities),
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 quarterly report on Form
10-Q for the quarter ended September 30, 2020 and other filings and
reports that we may file from time to time with the SEC, including
our annual report on Form 10-K for the fiscal year ended December
31, 2020. In particular, the following factors, among others, could
cause 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 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 complexity and lengthy implementation process for our
platforms; 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.
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 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 share and
per share amounts)
(unaudited)
Three Months Ended December
31,
Years Ended December
31,
2020
2019
2020
2019
Revenue
$
322,091
$
229,358
$
1,092,673
$
742,555
Cost of revenue(1)
70,503
75,902
352,547
242,373
Gross profit
251,588
153,456
740,126
500,182
Operating expenses:
Sales and marketing(1)
147,619
112,865
683,701
450,120
Research and development(1)
94,130
75,835
560,660
305,563
General and administrative(1)
166,411
112,207
669,444
320,943
Total operating expenses
408,160
300,907
1,913,805
1,076,626
Loss from operations
(156,572
)
(147,451
)
(1,173,679
)
(576,444
)
Interest income
368
2,137
4,680
15,090
Interest expense
(1,814
)
(2,666
)
(14,139
)
(3,061
)
Change in fair value of warrants
—
(2,746
)
811
(3
)
Other income (expense), net
2,082
(4,711
)
3,300
(2,853
)
Loss before provision (benefit) for income
taxes
(155,936
)
(155,437
)
(1,179,027
)
(567,271
)
Provision (benefit) for income taxes
(7,593
)
3,890
(12,636
)
12,375
Net loss
$
(148,343
)
$
(159,327
)
$
(1,166,391
)
$
(579,646
)
Net loss per share attributable to common
stockholders, basic
$
(0.08
)
$
(0.29
)
$
(1.19
)
$
(1.02
)
Net loss per share attributable to common
stockholders, diluted
$
(0.08
)
$
(0.29
)
$
(1.20
)
$
(1.02
)
Weighted-average shares of common stock
outstanding used in computing net loss per share attributable to
common stockholders, basic
1,763,513,922
584,722,735
977,721,736
576,958,560
Weighted-average shares of common stock
outstanding used in computing net loss per share attributable to
common stockholders, diluted
1,763,513,922
584,722,735
979,330,067
576,958,560
——————
(1) Includes stock-based compensation
expense as follows (in thousands):
Three Months Ended December
31,
Years Ended December
31,
2020
2019
2020
2019
Cost of revenue
$
19,342
$
11,384
$
139,627
$
27,904
Sales and marketing
75,852
22,973
398,205
79,215
Research and development
47,365
18,796
357,063
67,933
General and administrative
99,229
24,167
375,807
66,918
Total stock-based compensation expense
$
241,788
$
77,320
$
1,270,702
$
241,970
Palantir Technologies Inc.
Condensed Consolidated Balance
Sheets
(in thousands)
(unaudited)
As of December 31,
2020
2019
Assets
Current assets:
Cash and cash equivalents
$
2,011,323
$
1,079,154
Restricted cash
37,285
52,099
Accounts receivable
156,932
50,315
Prepaid expenses and other current
assets
51,889
32,585
Total current assets
2,257,429
1,214,153
Property and equipment, net
29,541
31,589
Restricted cash, noncurrent
79,538
270,709
Operating lease right-of-use assets
217,075
—
Other assets
106,921
77,574
Total assets
$
2,690,504
$
1,594,025
Liabilities, Redeemable Convertible and
Convertible Preferred Stock, and Stockholders’ Equity
(Deficit)
Current liabilities:
Accounts payable
$
16,358
$
51,735
Accrued liabilities
158,546
126,620
Deferred revenue
189,520
186,105
Customer deposits
210,320
364,138
Operating lease liabilities
29,079
—
Total current liabilities
603,823
728,598
Deferred revenue, noncurrent
50,525
77,030
Customer deposits, noncurrent
81,513
167,538
Debt, noncurrent, net
197,977
396,065
Operating lease liabilities,
noncurrent
229,800
—
Other noncurrent liabilities
4,316
78,205
Total liabilities
1,167,954
1,447,436
Redeemable convertible preferred stock
—
33,569
Convertible preferred stock
—
2,093,662
Stockholders’ equity (deficit):
Common stock
1,792
588
Additional paid-in capital
6,488,857
1,857,331
Treasury stock
—
(38,895)
Accumulated other comprehensive loss
(2,745)
(703)
Accumulated deficit
(4,965,354)
(3,798,963)
Total stockholders’ equity (deficit)
1,522,550
(1,980,642)
Total liabilities, redeemable convertible
and convertible preferred stock, and stockholders’ equity
(deficit)
$
2,690,504
$
1,594,025
Palantir Technologies Inc.
Condensed Consolidated Statements
of Cash Flows
(in thousands)
(unaudited)
Years Ended December
31,
2020
2019
Operating activities
Net loss
$
(1,166,391
)
$
(579,646
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
13,871
12,255
Stock-based compensation
1,270,702
241,970
Change in fair value of warrants
(811
)
3
Impairment of assets
674
23,407
Non-cash operating lease expense
35,049
—
Other operating activities
4,417
2,769
Changes in operating assets and
liabilities:
Accounts receivable
(108,476
)
(23,905
)
Prepaid expenses and other current
assets
(18,565
)
18,806
Other assets
(28,990
)
(29,447
)
Accounts payable
(34,681
)
23,424
Accrued liabilities
38,505
3,733
Deferred revenue, current and
noncurrent
(30,905
)
(134,396
)
Customer deposits, current and
noncurrent
(230,873
)
279,226
Operating lease liabilities, current and
noncurrent
(43,639
)
—
Deferred rent
—
(3,414
)
Other noncurrent liabilities
3,505
—
Net cash used in operating activities
(296,608
)
(165,215
)
Investing activities
Purchases of property and equipment
(12,236
)
(13,096
)
Proceeds from the sale of assets held for
sale
250
—
Purchase of equity method investment
(2,934
)
(25,868
)
Return of capital from equity method
investment
—
17,000
Net cash used in investing activities
(14,920
)
(21,964
)
Financing activities
Proceeds from the issuance of common
stock, net of issuance costs
942,529
100,000
Proceeds from issuance of debt, net of
issuance costs
199,369
544,413
Principal payments on borrowings
(400,000
)
(150,000
)
Proceeds from the exercise of common stock
options
298,829
16,897
Repurchase of common stock
(3,777
)
(11,202
)
Proceeds from the sale of redeemable
convertible preferred stock
—
7,500
Redemption of redeemable convertible
preferred stock
—
(168,000
)
Repurchase of convertible preferred
stock
—
(13,873
)
Other financing activities
(497
)
(1,202
)
Net cash provided by financing
activities
1,036,453
324,533
Effect of foreign exchange on cash, cash
equivalents, and restricted cash
1,259
(2,227
)
Net increase in cash, cash equivalents,
and restricted cash
726,184
135,127
Cash, cash equivalents, and restricted
cash - beginning of period
1,401,962
1,266,835
Cash, cash equivalents, and restricted
cash - end of period
$
2,128,146
$
1,401,962
Palantir Technologies Inc.
Reconciliation of GAAP to
Non-GAAP Financial Measures
(in thousands, except
percentages)
(unaudited)
Non-GAAP Reconciliation
Income (Loss) from Operations,
Excluding Stock-Based Compensation, Related Employer Payroll Taxes,
and Non-Recurring Direct Listing Charges (“Adjusted Income (Loss)
from Operations”)
Three Months Ended
December 31,
Twelve Months Ended
December 31,
2020
2019
2020
2019
Loss from operations
$
(156,572
)
$
(147,451
)
$
(1,173,679
)
$
(576,444
)
Add: stock-based compensation
241,788
77,320
1,270,702
241,970
Add: employer payroll taxes related to
stock-based compensation (1)
18,933
—
39,105
—
Add: non-recurring direct listing charges
(1)
—
—
53,737
—
Income (loss) from operations, excluding
stock-based compensation, related employer payroll taxes, and
non-recurring direct listing charges
$
104,149
$
(70,131
)
$
189,865
$
(334,474
)
Adjusted operating margin
32
%
(31
)%
17
%
(45
)%
——————
(1) Related employer payroll taxes and
non-recurring direct listing charges were immaterial and as such
were excluded in periods prior to and after Q3 2020.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210216005391/en/
Investor Relations Rodney Nelson investors@palantir.com
Media Lisa Gordon media@palantir.com
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