To The Moon

Palantir's latest earnings have been announced and this led to a strong after-hours surge in the stock (+18% as of 7.31 am GMT+8hrs, 06 Feb 2024).

Palantir Q4 FY23 Earnings from Twitter User EconomyApp:

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• Customers +35% Y/Y to 497.

• Billings +56% Y/Y to $605M.

• Net dollar retention 108% (-7pp Y/Y).

• Revenue +20% Y/Y to $608M ($6M beat).

• Non-GAAP EPS $0.08 (in-line).

FY24 guidance:

• Revenue: $2.66B (+20% Y/Y).

• Adjusted margin 32%.

These are some of the earnings highlights from Palantir’s website.

A quick review of the latest earnings (statement of operations) for the 1 year ended 31 Dec 2023:

• Revenue grew 17% from $1.905B (2022) to $2.225B (2023)

• Gross profit grew $1.497B (2022) to $1.793B (2023), a 19% growth.

• Total operating expenses grew 0.9% between 2022 to 2023. This is great against the backdrop of a 17% revenue growth.

• Net income came from a loss of $373M (2022) to a profit of $237B (2023), with 4 consecutive quarters of profits.

• EPS (basic) went from -$0.18 to $0.10 after 1 year.

• The company is generating much more profits with increasing revenue and a much better control of their expenses. The growth of revenue far exceeds the growth of expenses and thus, the result is increased net income (profits).

• We can also see a drop in the total stock-based compensation, a previous area of concern.

• One area of concern however is the ~4% increase in basic weighted-average shares and dilution of stock ownership.

From the balance sheet, we can notice the following:

• Strong increase in total assets (from $3.4B in 2022 to $4.5B in 2023).

• This is complemented by a lesser magnitude increase in total liabilities (from $818M in 2022 to $$961M in 2023).

• Accumulated deficit remains $5.6B.

For the cash flow, we can find:

• A drop in cash, cash equivalent and restricted from $2.6B at the beginning of the period to $0.85B at the end of the period.

• Net cash from operating activities saw a strong growth from $223M to $712M.

• There is a surge in the purchase of marketable securities from $124M to $5,636M.

• From the issue of the common stock options, we saw an increase from $86M to $218M.

Overall, Palantir has closed the year with profits and accumulated strong (net) assets. It is a strong performance for 2023. Palantir provides a good trading opportunity.

@TigerStars

$Palantir Technologies Inc.(PLTR)$