Palantir Technologies Achieves Record Revenue and Growth Rates
Financial Performance Highlights
Palantir Technologies Inc. (NASDAQ: PLTR) has reported remarkable growth in its financial performance for the recently concluded fiscal year. The highlights include a staggering 36% year-over-year increase in overall revenue for the fourth quarter, resulting in total revenues of $828 million. The U.S. market really drove this success, showing a 52% increase in revenue compared to the previous year, and 12% sequential growth quarter-over-quarter totaling $558 million.
U.S. Revenue Breakdown
Commercial and Government Revenue
The company's U.S. commercial revenue soared by 64% to $214 million, while government revenue also saw a substantial increase of 45%, reaching $343 million. This illustrates Palantir's strong positioning within both sectors as it steadily builds its client base.
Impressive Deal Closures
In Q4 alone, Palantir secured an impressive number of contracts, closing 129 deals each valued at a minimum of $1 million. Furthermore, it achieved record-breaking figures with $803 million in U.S. commercial Total Contract Value (TCV), marking a 134% increase over the past year.
Remaining Deal Value
The remaining deal value for U.S. commercial contracts has also improved significantly, reaching $1.79 billion, which is a 99% increase compared to last year. This indicates a robust pipeline for continued revenue generation moving into the coming quarters.
Quarterly and Annual Cash Flow
Palantir's operational efficiency is apparent as cash from operations reached a healthy $460 million, yielding a 56% margin. Adjusted free cash flow figures were also strong, showing $517 million for the quarter with an impressive 63% margin. These figures highlight the firm's effective cash management strategies and indicate solid underlying profitability.
Net Income Analysis
When analyzing net income, Palantir reported $79 million, equating to a 10% margin. It is noteworthy that the net income adjusted for one-off stock appreciation rights (SAR) related expenses escalated to $165 million, or 20% margin. This adjusted figure reflects the more sustainable earnings power of the business amidst periodic fluctuations.
Overall Performance for FY 2024
Total revenue for the fiscal year 2024 reached $2.87 billion, reflecting a 29% increase from the previous year. U.S. revenue for the year grew up to 38%, substantially indicating the company's growth trajectory. The U.S. commercial sector outperformed, achieving a 54% growth rate and totaling $702 million.
Outlook for 2025
Looking ahead, Palantir expects steady performance into 2025 with projected revenues estimated between $3.741 billion to $3.757 billion. This forecast accounts for a strong emphasis on U.S. commercial and government efforts, which are anticipated to exceed $1.079 billion, thereby ensuring continued momentum in growth rates.
Forward Guidance Summary
For Q1 2025, the company is forecasting revenues of approximately $858 to $862 million along with an anticipated adjusted income from operations between $354 million to $358 million. This optimistic outlook bodes well for investors seeking robust growth and a sound financial future.
Frequently Asked Questions
1. What are the major highlights of Palantir's Q4 financial results?
Palantir reported a 36% increase in revenue year-over-year, reaching $828 million, and a 52% increase in U.S. revenue.
2. How did U.S. commercial and government revenues perform?
U.S. commercial revenue grew 64% to $214 million, while government revenue increased 45% to $343 million.
3. What was the cash flow for Palantir in Q4?
Palantir generated $460 million from operations for a 56% margin, with adjusted free cash flow of $517 million at a margin of 63%.
4. What is the revenue forecast for Palantir in 2025?
The company expects total revenue between $3.741 billion and $3.757 billion, with U.S. commercial revenue projected over $1.079 billion.
5. How does Palantir's net income look for FY 2024?
Palantir's net income for FY 2024 was $462 million, with a 16% margin, adjusting factors like one-time charges showed even stronger results.
About The Author
Contact Caleb Price privately here. Or send an email with ATTN: Caleb Price as the subject to contact@investorshangout.com.
About Investors Hangout
Investors Hangout is a leading online stock forum for financial discussion and learning, offering a wide range of free tools and resources. It draws in traders of all levels, who exchange market knowledge, investigate trading tactics, and keep an eye on industry developments in real time. Featuring financial articles, stock message boards, quotes, charts, company profiles, and live news updates. Through cooperative learning and a wealth of informational resources, it helps users from novices creating their first portfolios to experts honing their techniques. Join Investors Hangout today: https://investorshangout.com/
The content of this article is based on factual, publicly available information and does not represent legal, financial, or investment advice. Investors Hangout does not offer financial advice, and the author is not a licensed financial advisor. Consult a qualified advisor before making any financial or investment decisions based on this article. This article should not be considered advice to purchase, sell, or hold any securities or other investments. If any of the material provided here is inaccurate, please contact us for corrections.
