To The Moon

1. What does Palantir do? 👇

$Palantir Technologies Inc.(PLTR)$ is a software business that allows organizations to integrate data (from many different sources) and create solutions in the form of risk detection, efficiency gains, or new opportunities etc.

$Palantir Technologies Inc.(PLTR)$ started focusing purely on governments centering their work around defense such as detecting terrorist attacks. This segment is called Palantir Gotham.

Today, is nearly 50:50 split between government and commercial. The commercial segment is called Palantir Foundry and helps businesses create solutions to challenges they face. These challenges may come from money laundering, supply chain issues, or network stability for example.

2. Palantir AIP

$Palantir Technologies Inc.(PLTR)$ AIP (Artificial Intelligence Platform) is another product of Palantir, and it's the most exciting by far in terms of future potential.

AIP allows organizations to create LLMs (large language models) based on their tons of data.

It essentially allows businesses to create infinite AI digital assistants in real-time, even with messy and unorganized data.

The great part about $PLTR AIP is that it can function in pretty much every industry. For example, just in Q1 alone, $Palantir Technologies Inc.(PLTR)$ added new AIP customers in the bottling industry, the energy industry, and the aerospace industry.

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3. Palantir AIP continued...

AIP gets even more exciting...it's going open source meaning developers can build on it.

This creates a potential limitless adoption. And with mass adoption comes network effects which only make the product even better.

4. Palantir AIP continued...(the number crunching)

If you look below, the global enterprise software market is expected to hit $520 billion by 2030.

With mass adoption of AIP especially with it being open source, there's no reason at all that AIP can't get to 5-10% market share over the next 6 years.

At 10% market share that's ~$50 billion in revenue annually.

At 5% market share that's ~$26 billion in revenue annually.

Either way, current estimates for 2030 are around $8 billion in revenue annually for everything at $Palantir Technologies Inc.(PLTR)$ . AIP alone could absolutely destroy these estimates.

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5. Q1 Highlights

Here's the key $Palantir Technologies Inc.(PLTR)$ takeaways from Q1:

-41% net new customers in US commercial and US commercial revenue increased 68% YoY.

- Commercial TCV (total contract value) increased 187% YoY.

- Increased cross selling with many big clients increasing their annual spend.

- $178 million contract from the US Army.

- 6 consecutive quarters of margin expansion with gross margin now reaching 83%.

- 23% FCF margin

- Rule of 40 score is 57

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6. Long Term Revenue Trends

Revenue growth slowing slightly but still around the 17% mark. AIP will likely change this slower growth rate.

Government revenue is still larger but commercial revenue is growing rapidly.

$Palantir Technologies Inc.(PLTR)$ success internationally is growing rapidly.

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7. Longer Term Balance Sheet Trends

Cash is growing YoY whilst $PLTR currently holds no long term debt at all.

Cash flow to debt ratio increasing yearly now up to 3x.

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8. Opportunities

For the commercial sector, the International Data Corporation has said that spending on these data products is upwards of $160 billion annually.

Currently, commercial revenue is $1 billion.

This is 0.625% of the international opportunity. With $PLTR's ability to rapidly introduce new products and expand their platform, there's a massive opportunity to get a substantial share of this market.

Combine this with the AIP potential and you have a huge TAM that $PLTR is going after.