How fast is Palantir growing?

Palantir operates two main platforms: Gotham for government agencies and Foundry for enterprise clients. Both platforms aggregate data from disparate sources to help clients make data-driven decisions.

In 2021, Palantir generated 57% of its revenue from government clients and 41% of its revenue from commercial clients.

the growth of Palantir's commercial business actually accelerated throughout 2021 as it signed more deals with domestic customers. For the full year, its U.S. commercial revenues rose a whopping 102% and offset the gradual deceleration of its government business.

Palantir expects its revenue to rise 30% year over year in the first quarter of 2022, which exceeds analysts' expectations for 29% growth. It also reiterated its long-term goal of growing its revenues by at least 30% each year through 2025. Analysts expect its revenue to rise 32% to $2 billion in 2021.

But can Palantir ever generate a profit?

Palantir's commercial business continues to expand as its government business generates stable growth, but there's still a lot of doubt about its ability to break even on a GAAP basis.

But looking beyond Palantir's adjusted gross and operating margins -- which exclude its stock-based compensation expenses, employer-related taxes, and other one-time charges -- we can see that its GAAP gross margins are gradually improving. Its GAAP operating margins, while negative, are also steadily clawing toward the breakeven point