Palantir Technologies Inc. (NYSE:PLTR) today announced financial
results for the second quarter ended June 30, 2022.
Q2 2022 Highlights
- Revenue grew 26% year-over-year to $473 million
- US revenue grew 45% year-over-year to $290 million
- Commercial revenue grew 46% year-over-year
- US commercial revenue grew 120% year-over-year
- US government revenue grew 27% year-over-year
- US commercial customer count increased 250% year-over-year,
from 34 customers in Q2 2021 to 119 customers in Q2 2022
- Total contract value (“TCV”) closed of $792 million, including
US TCV closed of $588 million
- Loss from operations of $(42) million, representing a margin of
(9)%, up 3,000 basis points year-over-year
- Adjusted income from operations of $108 million, representing a
margin of 23%
- Cash from operations of $62 million, representing a 13%
margin
- Adjusted free cash flow of $61 million, representing a 13%
margin
Q2 2022 TTM Highlights
- US revenue of $1.04 billion on a trailing-twelve-months (“TTM”)
basis
- Cash from operations of $292 million, representing a 17%
margin
- Adjusted free cash flow of $314 million, representing an 18%
margin
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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Investor Relations investors@palantir.com
Media media@palantir.com
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