Palantir Technologies (PLTR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 30% year-over-year to $726 million, with U.S. revenue up 44% and U.S. commercial revenue up 54% year-over-year, driven by strong AI adoption and rapid customer expansion.

• U.S. government revenue rose 40% year-over-year to $320 million, marking the strongest growth in 15 quarters, with significant contributions from DoD contracts and AI-driven solutions.

• Customer count grew 39% year-over-year to 629, with 104 deals over $1 million closed in Q3.

• S&P 500 inclusion highlights sustained profitability and market leadership amid the AI revolution.

• Net income was $144 million (20% margin); adjusted EPS was $0.10, GAAP EPS $0.06, both up significantly year-over-year.

Financial highlights

• Q3 revenue reached $726 million, up 30% year-over-year and 7% sequentially; adjusted operating margin expanded to 38%.

• Adjusted free cash flow was $435 million (60% margin); cash from operations was $420 million (58% margin).

• Adjusted income from operations was $276 million (38% margin); GAAP operating income was $113 million (16% margin).

• Gross margin remained strong at 82% (adjusted); Rule of 40 score improved to 68%.

• Ended Q3 with $4.6 billion in cash, cash equivalents, and short-term U.S. Treasury securities; no debt.

Outlook and guidance

• Q4 2024 revenue expected between $767–$771 million; adjusted income from operations between $298–$302 million.

• Full-year 2024 revenue guidance raised to $2.805–$2.809 billion; U.S. commercial revenue to exceed $687 million (at least 50% growth).

• Adjusted free cash flow guidance raised to over $1 billion; adjusted operating income guidance to $1.054–$1.058 billion.

• GAAP operating income and net income projected for every quarter in 2024.

• Management expects continued revenue growth from both government and commercial sectors, with U.S. customers as a key driver.