Palantir Technologies Inc. (PLTR) FY 2024 Financial Analysis Report

Executive Summary

Palantir Technologies Inc. demonstrated robust revenue growth in FY 2024, reaching approximately USD 2.87 billion compared to USD 2.23 billion in FY 2023, marking a 28.8% year-over-year increase. This growth reflects expanding adoption of Palantiru2019s data analytics solutions across multiple sectors. The company maintained healthy profitability with net income of USD 462 million, aligning with previous yearu2019s performance. Margins remain stable, supported by operational efficiencies, though high R&D and G&A expenses continue to exert pressure on operating margins. Overall, Palantiru2019s FY 2024 results underscore its strong market positioning and growth trajectory, albeit with ongoing investment costs.

Management Discussion and Analysis (MD&A)

Palantiru2019s FY 2024 performance is characterized by sustained revenue growth driven by increased customer engagement and expansion into new sectors. The companyu2019s strategic investments in R&D (USD 508 million) aim to enhance product offerings and maintain competitive edge. Despite elevated G&A expenses (USD 593 million) and sales and marketing costs (USD 888 million), operational expenses were well-managed, resulting in EBITDA of USD 342 million. The net income of USD 462 million underscores the companyu2019s ability to generate profitability amid growth investments. Cash flow from operations remains positive, supporting ongoing initiatives, including potential capital expenditures and strategic acquisitions. The company remains optimistic about future growth, emphasizing its focus on scalable technology solutions and expanding global footprint.

Income Statement Analysis

Revenue and Gross Profit

Palantir reported USD 2.87 billion in revenue for FY 2024, reflecting a 28.8% increase from USD 2.23 billion in FY 2023. Gross profit grew to USD 2.30 billion from USD 1.79 billion, indicating improved gross margins driven by higher product sales and service efficiencies.

Operating Income and Net Income

Operating income stood at USD 310 million, slightly above FY 2023u2019s USD 120 million, showcasing operational leverage. Net income from continuing operations reached USD 468 million, maintaining strong profitability, with net income attributable to shareholders at USD 462 millionu2014consistent with prior period performance.

EPS and YoY Performance

EPS increased to USD 0.21 from USD 0.0977 in FY 2023, a significant improvement driven by higher net income and share count adjustments. This reflects enhanced profitability and effective cost management.

Quarter-over-Quarter Trends

While quarterly data is not explicitly provided, the FY figures suggest steady growth throughout the year, with the latest fiscal year showing improvements across key metrics, indicating positive momentum.

Balance Sheet Analysis

As of FY 2024, Palantiru2019s balance sheet reflects a solid liquidity position, with cash and receivables supporting operations. Total assets have increased, driven by investments in technology and customer contracts. The companyu2019s leverage remains moderate, with manageable debt levels relative to equity, supporting growth initiatives without excessive financial risk. Equity base has expanded, reinforcing shareholder value. Liquidity ratios indicate sufficient short-term assets to meet obligations, positioning Palantir favorably for future expansion and resilience against macroeconomic fluctuations.

Cash Flow Analysis

Operational cash flows remain positive, driven by strong earnings before non-cash adjustments and working capital management. Investing activities primarily include capital expenditures for technology infrastructure and strategic acquisitions, with free cash flow supporting growth. Financing activities have included debt management and potential share repurchases or dividends, though specific figures are not detailed here. Overall, Palantiru2019s cash flow profile supports ongoing investments and shareholder returns.

Ratios & DuPont Analysis

Risk Factors

• Regulatory Risks: Potential regulatory changes affecting data privacy and security could impact operations.
• Market Competition: Intense competition from established tech firms and emerging startups may pressure margins and customer retention.
• Operational Risks: Rapid growth demands robust operational controls; failure could impair service delivery.
• Financial Risks: High R&D and marketing expenses require ongoing revenue growth to sustain profitability.
• Macro Risks: Economic downturns, geopolitical tensions, or pandemics could adversely affect customer budgets and spending.

Notes & Additional Commentary

FY 2024 results reflect a period of sustained growth with effective cost management. No significant unusual items or impairments are reported. The companyu2019s investments in R&D and marketing are aligned with strategic goals, though they exert pressure on margins in the short term. The slight increase in net interest income suggests prudent cash management. There are no indications of one-time gains or losses impacting net income significantly.

Investment Implications

In the short term, Palantir offers growth opportunities driven by expanding client base and product adoption, supported by a strong cash flow position. However, high R&D and operational expenses necessitate continued revenue growth to sustain profitability. Long-term risks include intense competition and regulatory challenges, which could impact scalability. Overall, Palantir presents a balanced outlook: promising growth prospects with prudent risk management, suitable for investors seeking exposure to innovative data analytics with an understanding of potential operational and macroeconomic headwinds.