Palantir Technologies Inc. (PLTR) Q4 2024 Earnings Analysis: Exceptional Growth and Strong AI Positioning

Summary

Palantir delivered outstanding Q4 2024 results, significantly beating analyst expectations with revenue of $828M vs $777.49M estimated, and adjusted EPS of $0.14 vs $0.11 estimated. The company demonstrated robust growth across all key metrics, particularly in U.S. commercial revenue, which grew 64% year-over-year.

Financial Performance

Revenue

• Q4 Revenue: $828M vs $777.49M estimated (Beat)
• Year-over-Year Growth: 36%
• Key Revenue Drivers:
  • U.S. commercial revenue growth of 64% YoY to $214M
  • U.S. government revenue growth of 45% YoY to $343M
  • Total U.S. revenue growth of 52% YoY to $558M

Profitability Metrics

• Adjusted EPS: $0.14 vs $0.11 estimated (Beat)
• GAAP Net Income: $79M (10% margin)
• Adjusted Operating Margin: 45%
• Key Profitability Factors:
  • Strong cash flow generation with $460M from operations (56% margin)
  • Adjusted free cash flow of $517M (63% margin)

Operational Highlights

• Customer count increased 43% year-over-year
• Closed 129 deals worth $1M+
• Record U.S. commercial TCV of $803M (134% YoY growth)
• U.S. commercial RDV reached $1.79B (99% YoY growth)
• Strong Rule of 40 score of 81%

Forward Outlook

Near-Term Guidance (Q1 2025)

• Revenue Guidance: $858M-$862M vs $797.85M estimated (Positive)
• Adjusted Operating Income: $354M-$358M
• Management Commentary: Confident in continued AI-driven growth

Full-Year Fiscal 2025 Outlook

• Revenue Target: $3.741B-$3.757B vs $2.82B estimated (Positive)
• U.S. Commercial Revenue: Expected to exceed $1.079B (54%+ growth)
• Adjusted Operating Income: $1.551B-$1.567B
• Adjusted Free Cash Flow: $1.5B-$1.7B

Investment Implications

• Strong Buy Signal: The company’s significant beats on revenue and earnings, coupled with raised guidance, suggest continued momentum
• Growth Catalyst: AI positioning and commercial sector expansion demonstrate sustainable growth potential
• Financial Health: Strong cash position of $5.2B provides ample resources for continued investment and expansion
• Risk Consideration: High valuation multiples require continued execution excellence

The results demonstrate Palantir’s successful execution of its growth strategy, particularly in AI implementation and commercial sector expansion. The company’s strong guidance and operational metrics suggest continued positive momentum for investors.

Additional Resources

View Full PLTR Earnings Report

View PLTR Stock Chart

Disclaimer: This analysis is for informational purposes only and does not constitute investment advice. All trading and investment decisions should be made based on your own research, experience, and risk tolerance.