On February 3, 2025, Palantir Technologies Inc (PLTR, Financial) released its 8-K filing detailing its financial results for the fourth quarter and fiscal year ending December 31, 2024. The Denver-based analytical software company, known for its Foundry and Gotham platforms, reported significant revenue growth and profitability, underscoring its pivotal role in the AI sector.
Q4 2024 Financial Performance
Palantir Technologies Inc (PLTR, Financial) reported a 36% year-over-year increase in revenue for Q4 2024, reaching $828 million, surpassing the analyst estimate of $775.91 million. The company's U.S. revenue saw a remarkable 52% year-over-year growth, with U.S. commercial revenue increasing by 64% and U.S. government revenue by 45%. This robust performance highlights Palantir's expanding footprint in both commercial and government sectors.
Key Financial Metrics and Achievements
Palantir's GAAP net income for the quarter was $79 million, translating to a GAAP EPS of $0.03, which aligns with the analyst estimate. However, when excluding one-time SAR-related expenses, the net income was $165 million, with an EPS of $0.07. The adjusted EPS stood at $0.14, indicating strong operational efficiency.
The company closed 129 deals worth at least $1 million, with a record-setting $803 million in U.S. commercial total contract value, reflecting a 134% year-over-year increase. Palantir's cash from operations was $460 million, representing a 56% margin, and adjusted free cash flow was $517 million, a 63% margin.
Annual Performance and Strategic Outlook
For the full year 2024, Palantir reported a 29% increase in revenue to $2.87 billion, slightly above the annual estimate of $2.81 billion. The company's U.S. revenue grew by 38%, with significant contributions from both commercial and government sectors. Palantir's cash position remains strong, with cash, cash equivalents, and short-term U.S. Treasury securities totaling $5.2 billion.
Looking ahead, Palantir has issued a revenue guidance of 31% year-over-year growth for FY 2025, indicating continued confidence in its growth trajectory. The company expects Q1 2025 revenue to be between $858 million and $862 million, with adjusted income from operations ranging from $354 million to $358 million.
CEO Commentary and Industry Position
Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution," said Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc.
Palantir's strategic focus on AI and data analytics positions it well within the software industry, where demand for data-driven insights continues to grow. The company's ability to secure large contracts and expand its customer base underscores its competitive advantage and potential for sustained growth.
Conclusion
Palantir Technologies Inc (PLTR, Financial) has delivered a strong financial performance in Q4 2024, exceeding revenue expectations and demonstrating robust growth across its U.S. operations. With a solid cash position and strategic focus on AI, Palantir is well-positioned to capitalize on future opportunities in the software industry. Investors and stakeholders will be keenly watching the company's progress as it continues to navigate the evolving technological landscape.
Explore the complete 8-K earnings release (here) from Palantir Technologies Inc for further details.
