Palantir Technologies Reports $2.9 Billion Revenue and 29% Growth for Fiscal Year 2024

Palantir Technologies Inc. reported $2.9 billion in revenue for the fiscal year ending December 31, 2024, a 29% increase from the $2.2 billion generated in 2023. The company achieved an income from operations of $310.4 million in 2024, compared to $120 million in 2023. Adjusted income from operations, excluding stock-based compensation and related payroll taxes, was $1.1 billion in 2024 and $632.8 million in 2023. Gross profit reached $2.3 billion in 2024, representing an 80% gross margin (83% excluding stock-based compensation).

Revenue growth was driven by both government and commercial segments. Government revenue increased by 28% to $1.57 billion, with $280.7 million stemming from existing 2023 customers. Commercial revenue rose by 29% to $1.3 billion, with $190.7 million from existing customers, offset by a $35 million decrease in revenue from Strategic Commercial Contracts. The company's average revenue from its top twenty customers increased to $64.6 million in the trailing twelve months ending December 31, 2024, an 18% rise from the previous year. The company had 711 customers as of December 31, 2024, up from 497 in 2023.

Significant developments included the deployment of the Artificial Intelligence Platform (AIP) in 2023, designed for both commercial and government sectors. The company also highlighted the introduction of AIP bootcamps in 2023 to accelerate customer acquisition and Developer Tier in 2024, offering limited access to Foundry and AIP. Palantir's strategic developments also included expanding partnerships in various industries, such as airline, insurance, and healthcare, and a global partnership with Fujitsu Limited. The company's employee headcount stood at 3,936 as of December 31, 2024, with 31% employed outside the United States.

The company's total remaining deal value, which assumes the exercise of all contract options and no terminations, reached $5.4 billion as of December 31, 2024, a 40% increase from 2023. This included $3.1 billion from commercial customers and $2.3 billion from government customers. The filing also noted a $3.7 billion in IDIQ contracts with undetermined funding. The company's operating expenses increased due to business expansion, infrastructure upgrades, increased headcount, and investments in research and development and sales and marketing. The company's cash, cash equivalents, and short-term U.S. Treasury securities totaled $5.2 billion as of December 31, 2024.

Palantir's 10-K filing included extensive risk factors, covering areas such as profitability, revenue growth sustainability, sales cycle length, customer concentration, quarterly fluctuations, technology development, competition, personnel retention, brand reputation, legal and regulatory compliance, cybersecurity, intellectual property, and the impact of macroeconomic conditions and geopolitical events. The filing also detailed the company's multi-class stock structure and its implications for shareholder voting rights. The company stated it does not anticipate paying dividends in the foreseeable future.