PALANTIR – MacroXX

Palantir Technologies Inc. (NASDAQ: PLTR) released its last earnings report on Monday, February 3, 2025, after the close of U.S. markets. This report covered the fourth quarter and fiscal year ended December 31, 2024. The company announced better-than-expected earnings and profit for the fourth quarter, which led to a significant surge in the stock price. This earnings report came after a remarkable year for Palantir, with its stock price increasing by 340% in 2024.

After covering the earnings report, we’ll dive into Palantir’s financial statements to provide a comprehensive analysis of the company’s financial health and performance. By analyzing these components of Palantir’s financial statements, we can gain a comprehensive understanding of the company’s financial position, operational efficiency, and growth prospects.

Key highlights from the earnings report include:

• Revenue increased by 36% year-over-year to $828 million for Q4 20243.

• U.S. commercial revenue grew by 64% year-over-year to $214 million3.

• U.S. government revenue increased by 45% to $343 million3.

The company also provided an optimistic outlook for 2025, projecting revenues between $3.74 billion and $3.76 billion for the full yearPalantir Technologies (PLTR) has demonstrated strong financial performance and growth in recent years, particularly in 2024 and early 2025.

Let’s analyze key aspects of their financial statements:

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Palantir’s revenue has shown impressive growth:

• Q4 2024: $828 million, up 36% year-over-year (Y/Y)

• Full Year 2024: $2.87 billion, up 28.8% from 2023

• 2025 Guidance: $3.741-$3.757 billion, projecting 31% Y/Y growth

The company has significantly accelerated its revenue growth, from 12.7% in Q2 2023 to 36% in Q4 2024.

Palantir has achieved profitability and improved margins:

• Q4 2024 GAAP Net Income: $79 million (10% margin)

• Full Year 2024 Net Income: $462.19 million

• Q4 2024 Adjusted Operating Margin: 45%

• Full Year 2024 Adjusted Net Margin: 39%, up from 28% in 2023

The company’s cash flow generation has been robust:

• Q4 2024 Adjusted Free Cash Flow: $517 million (63% margin)

• Full Year 2024 Operating Cash Flow: $1.15 billion (40% margin)

  Full Year 2024 Adjusted Free Cash Flow: $1.25 billion (44% margin)

• 2025 Adjusted Free Cash Flow Guidance: $1.5-$1.7 billion

As of December 2024:

• Cash & Short-Term Investments: $5.23 billion

• Total Assets: $6.34 billion

• Total Debt: $239.22 million

• Net Debt: -$1.86 billion (negative, indicating more cash than debt)

• Stockholders’ Equity: $5.00 billion

• U.S. Revenue Growth: 52% Y/Y in Q4 2024

• U.S. Commercial Revenue Growth: 64% Y/Y in Q4 2024

• Customer Count Growth: 43% Y/Y

• Q4 2024 Deals: 129 deals worth at least $1 million, including 32 deals of $10+ million

1. Gross Profit Margin: 80.25%
   This indicates that Palantir retains a high portion of its revenue after accounting for direct costs.

2. Operating Profit Margin: 10.83%
   Palantir’s ability to generate profit from its core business operations has improved substantially.

3. Net Profit Margin: 16.13%
   The company has achieved a healthy net profit margin, showing efficient management of expenses.

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1. Current Ratio: 5.96 (Current Assets / Current Liabilities)
   This high ratio suggests Palantir has strong short-term liquidity and can easily cover its short-term obligations.

2. Cash Ratio: 5.25 (Cash and Cash Equivalents / Current Liabilities)
   The company maintains a very high cash ratio, indicating excellent liquidity.

1. Debt-to-Equity Ratio: 0.047 (Total Debt / Total Equity)
   Palantir has a very low debt-to-equity ratio, suggesting minimal financial leverage and low risk.

2. Interest Coverage Ratio: N/A (Operating Income / Interest Expense)
   The company reported no interest expense in 2024, indicating minimal debt burden.

1. Asset Turnover Ratio: 0.45 (Revenue / Total Assets)