Palantir Technologies (PLTR) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue grew 36% year-over-year and 14% sequentially to $828 million, driven by strong U.S. business and AI adoption; U.S. revenue up 52% year-over-year to $558 million.

• U.S. commercial revenue surged 64% year-over-year and 20% sequentially to $214 million; U.S. government revenue rose 45% year-over-year and 7% sequentially to $343 million.

• Customer count increased 43% year-over-year to 711, with U.S. commercial customer count up 73% year-over-year.

• Closed $1.8 billion in total contract value in Q4, including 32 deals worth $10 million or more and a record $803 million in U.S. commercial TCV, up 134% year-over-year.

• Ended Q4 with $5.2 billion in cash, cash equivalents, and U.S. Treasury securities, and no debt.

Financial highlights

• Q4 adjusted operating margin reached 45%, the highest in company history; Q4 adjusted income from operations was $373 million.

• Q4 adjusted free cash flow was $517 million (63% margin); full-year adjusted free cash flow was $1.25 billion (44% margin).

• Q4 GAAP net income was $79 million (10% margin); adjusted EPS was $0.14 for Q4 and $0.41 for the full year.

• Rule of 40 score reached 81% in Q4, up from 68% in Q3.

• Q4 adjusted EBITDA was $380 million (46% margin); FY 2024 adjusted EBITDA was $1.16 billion (40% margin).

Outlook and guidance

• Q1 2025 revenue expected between $858–$862 million; adjusted income from operations between $354–$358 million.

• FY 2025 revenue guidance: $3.741–$3.757 billion, with U.S. commercial revenue expected to exceed $1.079 billion (at least 54% growth).

• FY 2025 adjusted income from operations projected at $1.551–$1.567 billion; adjusted free cash flow between $1.5–$1.7 billion.

• GAAP operating income and net income expected in every quarter of 2025.

• FY 2025 revenue guidance represents 31% year-over-year growth.