Public Financial Documents
The Public Financial Documents section provides detailed analysis of company press releases and newsroom updates, offering retail investors valuable insights into corporate activities and announcements. These documents break down the content of press releases to highlight key information, strategic moves, and market implications.
By surfacing actionable insights, the Public Financial Documents help you better understand a company’s messaging, objectives, and potential impact on its stock performance. This allows you to make more informed investment decisions.
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Classification
Company Name
Publish Date
Industry Classification
Industry: Technology
Sub-industry: Artificial Intelligence Software
Document Topic
Summarization
Business Developments
- Palantir Technologies reported a GAAP net income of $93 million for Q4 2023, marking the fifth consecutive quarter of profitability.
- US commercial revenue surged 70% year-over-year, with a total customer count of 221, reflecting a 55% increase.
- The company experienced substantial growth in total contract value (TCV) and remaining deal value (RDV) in the US commercial sector.
- Adjusted income from operations reached $209 million, achieving a margin of 34%.
- Cash from operations totaled $301 million, highlighting a strong operational efficiency.
Financial Performance
- Revenue for Q4 2023 was $608 million, a 20% increase year-over-year.
- For FY 2023, total revenue reached $2.23 billion, indicating a 17% growth compared to the previous year.
- GAAP earnings per share (EPS) for Q4 was $0.04, with an adjusted EPS of $0.08.
Outlook
- For Q1 2024, Palantir expects revenue between $612 - $616 million.
- Full year 2024 revenue is projected to be between $2.652 - $2.668 billion, with US commercial revenue anticipated to exceed $640 million.
- The company aims for adjusted free cash flow of $800 million to $1 billion in 2024.
Quotes:
No quotes found in the document.
Sentiment Breakdown
Positive Sentiment
Business Achievements:
Palantir Technologies Inc. has reported strong financial results for the fourth quarter and fiscal year ended December 31, 2023, showcasing a significant achievement with a GAAP net income of $93 million, which translates to a 15% margin. This marks the fifth consecutive quarter of GAAP profitability, indicating a solid performance trend. Furthermore, the company reported a notable revenue growth of 20% year-over-year, reaching $608 million, alongside a robust adjusted EPS of $0.08. These metrics reflect a positive momentum and successful execution of their business strategy.
Strategic Partnerships:
The document highlights impressive growth in the US commercial sector, where revenue surged by 70% year-over-year to $131 million. This growth is accompanied by an increase in customer count by 55%, reaching 221 customers, which reflects a strong market confidence and the effectiveness of the company’s strategic partnerships. Additionally, the total contract value in the US commercial segment grew by 107% year-over-year, signaling substantial future revenue potential.
Future Growth:
Looking ahead, Palantir anticipates continued growth with projected revenue for Q1 2024 expected between $612 million and $616 million. For the full year 2024, the company expects revenue to reach between $2.652 billion and $2.668 billion, alongside a growth rate of at least 40% in US commercial revenue. Such optimistic projections suggest a positive outlook for the company’s future performance and growth trajectory.
Neutral Sentiment
Financial Performance:
The financial performance of Palantir for FY 2023 indicates a revenue growth of 17% year-over-year, totaling $2.23 billion. The company reported a GAAP net income of $210 million, representing a 9% margin. Additionally, cash from operations amounted to $712 million, reflecting a 32% margin. While the figures present a factual account of the company's performance, they do not evoke strong emotional responses, as they are primarily focused on delivering key financial metrics without excessive embellishment.
Negative Sentiment
Financial Challenges:
Despite the overall positive results, there are underlying challenges that could be perceived negatively. The GAAP income from operations for FY 2023 was $120 million, representing only a 5% margin, which may indicate some operational inefficiencies when compared to the adjusted income from operations margin of 28%. This disparity suggests that while the company is profitable, there may be constraints affecting its operational efficiency.
Potential Risks:
The document does not explicitly mention potential risks; however, the reliance on significant growth in the US commercial sector could pose a risk if market conditions change or if competition intensifies. Additionally, the ambitious growth projections for 2024 may create pressure on the company to meet these expectations, presenting a potential risk if they are unable to deliver on these forecasts. Such factors could impact investor sentiment and perceptions of the company's stability moving forward.
Named Entities Recognized in the document
Organizations
- Palantir Technologies Inc. (NYSE: PLTR)
- US Treasury
People
- Alex Karp, CEO of Palantir Technologies Inc.
Locations
- Denver, Colorado, USA
Financial Terms
- GAAP net income: $93 million
- GAAP income from operations: $66 million
- GAAP earnings per share (EPS): $0.04
- Adjusted EPS: $0.08
- Revenue: $608 million (Q4 2023)
- US commercial revenue: $131 million (Q4 2023)
- Total contract value (TCV): $343 million
- Remaining deal value (RDV): Not specified
- Cash from operations: $301 million
- Adjusted free cash flow: $305 million
- FY 2023 Revenue: $2.23 billion
- Commercial revenue for FY 2023: $1.0 billion
- Government revenue for FY 2023: $1.2 billion
- Adjusted free cash flow for FY 2023: $731 million
- Q1 2024 revenue expectation: between $612 - $616 million
- FY 2024 revenue expectation: between $2.652 - $2.668 billion
Products and Technologies
- No specific products or technologies were mentioned in the provided document.
Management Commitments
1. Q1 2024 Revenue Commitment
- Commitment: Expecting revenue of between $612 - $616 million.
- Timeline: Q1 2024.
- Metric: Revenue target.
- Context: This commitment outlines the revenue expectations for the upcoming quarter as part of the company's financial outlook.
2. Full Year 2024 Revenue Commitment
- Commitment: Expecting revenue of between $2.652 - $2.668 billion.
- Timeline: Full year 2024.
- Metric: Revenue target.
- Context: This commitment indicates the company's projected revenue for the entire fiscal year, reflecting growth expectations.
3. US Commercial Revenue Growth Commitment
- Commitment: US commercial revenue in excess of $640 million, representing a growth rate of at least 40%.
- Timeline: Full year 2024.
- Metric: US commercial revenue growth rate.
- Context: This commitment highlights the company's focus on significant growth within its US commercial segment for the upcoming year.
4. Adjusted Income from Operations Commitment
- Commitment: Expecting adjusted income from operations of $834 - $850 million.
- Timeline: Full year 2024.
- Metric: Adjusted income from operations target.
- Context: This commitment reflects the company’s aim to achieve strong operational profitability in the upcoming fiscal year.
5. Adjusted Free Cash Flow Commitment
- Commitment: Expecting adjusted free cash flow of $800 million - $1 billion.
- Timeline: Full year 2024.
- Metric: Adjusted free cash flow target.
- Context: This commitment emphasizes the company's focus on generating substantial free cash flow, which is crucial for financial flexibility and investment opportunities.
6. GAAP Operating Income Commitment
- Commitment: GAAP operating income in each quarter of this year.
- Timeline: Each quarter of 2024.
- Metric: GAAP operating income.
- Context: This commitment indicates the company's intention to maintain profitability on a GAAP basis throughout the fiscal year.
7. GAAP Net Income Commitment
- Commitment: GAAP net income in each quarter of this year.
- Timeline: Each quarter of 2024.
- Metric: GAAP net income.
- Context: This commitment underscores the company's goal of achieving consistent net income, reflecting overall financial health and operational success.
Advisory Insights for Retail Investors
Investment Outlook
Based on the analysis of the document, the investment outlook for Palantir Technologies Inc. suggests a favorable approach for retail investors. The company has demonstrated consistent growth in revenue, profitability, and an expanding customer base, particularly in the US commercial sector. The positive financial performance and optimistic future outlook indicate a strong market position and potential for continued success.
Key Considerations
- Consistent Profitability: Palantir has achieved its fifth consecutive quarter of GAAP profitability, indicating a stable financial foundation.
- Strong Revenue Growth: The company reported a 20% year-over-year revenue growth for Q4 2023 and projects further growth for 2024.
- US Commercial Expansion: The US commercial sector shows significant growth, with revenue increasing by 70% year-over-year and customer count rising by 55%.
- Cash Position: Palantir maintains a robust cash position with $3.7 billion in cash, cash equivalents, and short-term securities, providing financial flexibility.
- Strategic Forecast: The company forecasts substantial growth in US commercial revenue and adjusted income from operations for 2024, signaling confidence in its strategic direction.
Risk Management
- Monitor Financial Reports: Keep an eye on Palantir’s upcoming quarterly financial reports to ensure continued profitability and revenue growth.
- Evaluate Economic Conditions: Pay attention to macroeconomic indicators that could impact government and commercial spending, as these are key revenue sources for Palantir.
- Assess Competitive Landscape: Consider the competitive pressures in the data analytics and software sector, which could affect Palantir’s market share and pricing power.
Growth Potential
- US Commercial Sector: The substantial growth in the US commercial sector, including a 107% increase in total contract value, highlights a significant growth avenue.
- Operational Efficiency: Expanding adjusted operating margins and strong cash flow margins indicate effective cost management and operational efficiency.
- Future Revenue Projections: The company’s revenue projection for 2024, with a growth target of around 19%, underscores its potential for sustained expansion.
- Strategic Partnerships: Potential collaborations and partnerships, particularly within the US commercial segment, could drive further growth and market penetration.