Palantir reports revenue growth of 26% y/y for q2 2022, us commercial revenue up 120% y/y in q2 2022
Denver--(business wire)--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 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) 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 ———— income tax effect is based on long-term estimated annual effective tax rates of 22.2% for the periods ended 2022 and 2021. 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.
