PLTR - Earnings call transcript Q3 2020 | Palantir Technologies Inc.

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Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Palantir Technologies Third Quarter 2020 Earnings Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] Please be advised that today's conference is being recorded. [Operator Instructions] I would now like to hand the conference over to your speaker today, Rodney Nelson, Head of Investor Relations. Thank you. ahead. go Please

Rodney Nelson

and Good Shyam XXXX operator. Business Kawasaki, announced welcome Palantir's Glazer, the Officer; market to our website. Financial Investor Thank me Chief Chief With call. afternoon, Head Operating We'll Global Development. quarter on close the after earnings release today results Kevin on be third of our press Relations is you, call issued and posted Sankar, discussing and in Dave the Officer;

make actual after will in results. considered expectations promises filings. we no and call, Information regarding concerning forward-looking press obligation securities our required law. to close statements, We our and market release SEC including undertake by and update available be in earnings the our During materially XXXX, our from future as for today except cause and plans, quarter those statements risks may that is distributed statements be not measures. in today's during certain the financial in financial Further, will forward-looking measures GAAP measures. These from, differ and laws, management's considered business isolation full our uncertainties, year as to, them fourth applicable operational should within refer our are to outlook regarding non-GAAP of we addition statements a other adjusted substitute financial performance or regarding for to subject to guarantees the which call, or course and are could risks expectations. and not prospects, These statements for

in our issued to including reconciliation non-GAAP included GAAP these comparable measures, today. about measures, is release Additional a non-GAAP information press of

website investors.palantir.com. Shyam. available turn that, investor on With release, presentation filings it press and over our Investor are Relations at Our to I'll SEC

Shyam Sankar

software able States the work with counter well thanks, need of Thank be essential investigations At XXXX joining software assist Those is enterprises. function for founded crisis so, everyone, that in to in whose works. building We do institutions working Palantir, and for and in and we later to United they as you, in institutions stability, started to today. way began commercial must community And uncertainty. our originally as build to intelligence We life. were operations. times terrorism software the platforms of Rodney, us and for

We networks Gotham have two principal do haystacks. U.S. those it platform, And of enables deep Foundry. they informant, commercial in identify software and when the software in jobs. military to respond agencies. analysts have which which projects. They our We reports thousands them. constructed was helps roadside and the way interact information companies were a platform struggle In personnel insurgence in and data from organizations alone signals Iraq first soldiers needles, by one, it sources later manage, central and generate, operating were in from their at working for to and Foundry Gotham, to did transforms their from for alpha creating hunting to makers threats. built intelligence data. system data bombs similar, confidential platforms: routinely hand. intelligence involved with by is were was mapping for faced found The but for institutions with large ranging the data defense software not they let came fundamentally sets, patterns by that to not of allied challenges needed Gotham within hidden and Afghanistan, to users of

line. is software Our the on front

but analysis for extended And individual central operations beyond mission Gotham's use industries. planning. operating that Foundry into intelligence has only system, means now are entire sometimes And so the we. is institutions, defense and literally, becoming not

customers. year-over-year, quarter, wins XXXX at install our within and base third the Turning to net grew by expansion new driven XX% initial revenue continued

adjusted generated powerful the operating infrastructure, distributing In last delivery years. several business which are really margin over in heterogeneous technology more see government development from Foundry the has We our our on is Apollo, in ever is happening the getting gives XX% continuous leverage efficiencies we've our flagship acceleration business of based significantly a the to years, platform our we platforms in to these XX% the function Palantir quarter. SaaS than our of and of that this can you the evolved And field. third just and contribution that us operating And gross started, what's ways, many in from a developed very environment. as in the margins of efficiently second largely

will highlight major hour an savings, me a of to leverage cash $XX few challenged savings of that. a million for meaningful top of the wins. super pandemic. our a this identified working operate An projected the to a already that has in customer on in energy generate and And in $XXX just has incremental million suite $X able capital procurement potential The contribution an created sector annualized was lasting with in is savings a Let few changes ERP billion. way project weeks,

the margin million to also reinforcing infrastructure operating system strong scale have the core and large this Aerospace mid-pandemic, a We long-term and challenged been in space, contribution significantly their has of $XXX is a we the pandemic, a in as as X-year from other. this renewal, commercial with of deal customer Foundry done a closed in see commitment business. and further aerospace largest each the maturity. anticipate customer, we we This

may the a its example U.S. Another safety focus across impact operational its scrambling durability its to needed employee with is tests surge goods net the customer its of monitor have employees commercial consumer health facilities. new but COVID dealing was like I'd help base on in on This This also and company. XXX its and operation. positive Fortune and COVID to the employees, QX a was company immediate understanding of

were by enabled invested that individual core promised to discounted from triage chain view that to is extract wanted the on platform in limit this to had specific downstream and infection, for chain anomalies facilities investment. able But which and virus' competitive as to advantage dollars to occur. or enduring a specifically customer created potential of decisions, the this started a customer spread. The purchasing COVID, occurring systems. quickly of This its of in out of from to when to optimized chain assistance. allows various opportunities hundreds leveraging potential July. Over to model the capitalizing to annotate value such investments supply our the external facilities had of weeks. upstream The materials in the components affected buying of build optimization. in a more Foundry, the being spread provide solution complete goods particularly appreciate economic their across outbreaks reach a and course pilot, where medical supply track use to By our but of conducive customer driven internal, with data finished project, raw This out raw to into alert the whether make customer also, to individuals struggling millions at was X-week outbreak to customer the of customer to pricing this real-time few factors. supply and hundreds these challenges, the customer CAD-based platform, ERP solutions, was solution its existing models came to and were to modules allowed in materials solve on context gain they of top integrated looking firm long-running monitor areas an we Foundry and And

with this is of in expansion many across recent a single a across data than pharmaceutical data across trials This and unearth is those signed findings. hard trials, from clinical siloed link draw also record. Foundry, But Leveraging trials, awash it's data not of thousands to more company. firm, trials. including in as is like symptoms, isolated customer able to to We top just and valuable companies, systems Again, often treatments, pharma X disparate conclusions X,XXX study. diagnoses clinical a in interrogate large

ability suffer optimize the particular hypotheses to from therapy. trial of the questions see and how in? unlocked research to regardless at diseases progressions a develop key as level condition population of around they biomarkers and patient many help software will insights stories such new customer patients and Our certain These answer participated a which both

government our to Turning segment.

that Early warfighter exercise. models. Space to here and work of manage, mud, lines quarter, employing we In Research other recent machine expanding and we related continue and to U.S. results the partnership U.S. in the XXX This and Lab. used was to opportunities are Army The be at leveraged build our will for Force to with Foundry and capabilities. great readiness from Army and customer intelligence the Army, has military. pursue default continued has promising data in forward and wins branches becoming we're which vantage to to defense with from out a see powering and bids, in. to of two-year allied of looking government Army contract the delivering the programs Force, our U.S. be future amongst pursuing integrate, vision of selected financial third artificial training operating various Palantir Gotham new to $XX both prepare million will effect capabilities learning across efforts space These management. doing illustrate shown our generated the during future platform with AI next-generation Air in threats, and several We so, including a the We growth and particular, both highlight investing fight current system. wins U.S. I'd

patients of successfully other Amazon continues manage NIH's which for using more Advancing companies to HHS, with and engagement largest for including pandemic, scientific for In Palantir builds helping in more infrastructure COVID-XX deliver initiatives million the Foundry logistics over the deploying England's to of domestically UNITE, Web intersects complex existing supporting by security our Center with and supported FDA. commercial the the asset to data and COVID-XX the the Foundry to allocation to by items Our world work work infrastructure were Services retail also a plans response contract the NXC agencies National support both cancer powering results. and XX or hospitals, our management, highlight role NHS environment. And And the analysis for Foundry vaccines and and This chain sourced assembled NCI abroad population. serving weeks. X it million is has powering in CDC, of situation. integration, the U.K., the our the used to the is the health and all speed. X.X partners. showing one secure platform work NCATS Translational We to drug and and supply clinical a is his research. been distribution pandemic various selected at than $XX PPE across Sciences, on than platform, logistics which few pharmacies operational and channel coordinate Foundry in billion a critical Foundry care include across deliver is the a released NCATS, recently President rapidly and video in that by of Colombia I'd country's played equipment. response Amazon, was the this work,

Importantly, in see care health to pandemic how leading of and we is the can lasting various already countries. systemic transformation

together are rising be these may with a health we at but unique to the the significant opportunity institutions to citizens. of meet. have implications has with to have as of holistic opportunity we these COVID, there end taken transformation far-reaching revealed a the our with for It commercial of going the positive will challenges center not have it's pandemic swath the work, believe these care, have health health to of in and And future and opportunities improvement developments We digital safety broad it. care of the organizations power and their started

touch over can improve us to value. significant to road time believe customers in to acquire are through R&D investments the drive to to numbers, continue that we turning the to I making Before will map. the Dave and we We increases it our wanted us take our enable of on number

build a enterprise. take our Our investments for you enabling the be want, include modular, on what approach what latest to you have solutions fully R&D

hosting two. for investors be product will month We deep in the dive next or

investments. care, to on chain across and discuss showcase be it going lookout over the including defense, customers We're health an our R&D announcement latest more. platforms the for coming technical problem also use development, our spaces, our about We'll pass So soon Dave. and road how across industries supply to and upcoming map these sessions. I'll

Dave Glazer

the Thanks, Shyam. and year outlook third review followed quarter by I'll our performance, our XXXX. fourth for quarter full

we above million revenue up the over first up the $X Third in $X.X quarter period. provided this the end XX% guidance $XX.X revenue of of XXXX, the customer for of Average was year-over-year XX% versus nine $XXX XX Average direct listing. million. the connection and high the top first months million, grew through totaling per year revenue year XX% through customers was year-over-year months ago million, with nine

We closed greater year customers through nine revenue each $X XX by of segments. of XX XX% in top or in million X million. XXXX as third our of of the contract Top in ago value, compared seeing base period. strong months are we deals total diversification our growth represented revenue was deals in $XX across performance with more total the of business the In our XX% line excess quarter, driven first including

and increasing year-over-year to million, from driven revenue combination expansion by customers. customers with new of a $XXX quarter existing contributions Third XX% commercial grew

across a each in in our in and aerospace multiple pandemic, continue in million renewal of delivery $X and the over to portfolio large million midst and the Especially, We financial insurance, services commercial creation. quarter, also deals value prioritize of $XXX third several the the consumer, speed wins, including industries. the industry closed we

this on quarter-to-quarter million, by Total government revenue contract a XX% year-over-year our commercial While pipeline we lumpiness see primarily encouraged timing, by growth in the $XXX in in to to are our due business. U.S. rose we our to lead commercial revenue business. government driven can basis

of in We roughly as the generated platforms, reduced up and sequentially XX% demonstrates to XX% contribution scale deal of for cloud government options, with the quarter, wins and quarter, as expenses adjusted including international third government the which and government contractual Center U.S. Research As Shyam Translational basis, deals in end contract well. well up Contribution rose gross and and points basis a Laboratory, IDIQ including third quarter, At amounts Sciences I our XXX the adjusted in year-over-year an in signed of delivery margin stock-based excludes mentioned, reflecting and basis award business two-year ago compensation. business maintenance our Advancing on billion. several National several automation quarter, margin and Army of the our our in as we X,XXX the enhanced value, with the next will $X.X the expenses. in hosting model. contracted an new year our margin which XX% the three-phase efficiency third the third compared totaled increased to points quarter, margins discuss software

expenses. Now, I'm operating going turn to to

third the expenses were quarter, million. $XXX For operating

taxes Additionally, listing compensation. in expenses we quarter, million the $XX million third incurred in employer $XX and roughly related to stock-based to payroll direct in related our

through and travel operating is leverage more and XX% expenses, marketing our Excluding our of or these marketing revenue adjusted year expenses. of direct business ago sales The scaling expense down of in all office force. been reductions and customers expenses customer growing a efficient from operating acquisition sales third million. result $XXX in Sales the and and our rapid $XX total more model three-phase XX% quarter, was quarter of while revenue, in million have would

continue our including or and our customer partnerships. $XX efforts broadening of growing ago investing the XX% in revenue, million Research force in channel sales from account-based and expect down to XX% developing year expense development acquisition quarter. We was

in effort functionality delivery maintenance are new and platforms, greater including such related and moving and Shyam revenue includes related the more expense automated, and absolute areas plan grow us of expenses. the to million our As dollars expenses XX% or $XX direct XX% have in our prior R&D do million with modularization travel our allowing forward. compared grow G&A of to continue platforms developing listing. was of realizing expenses to period. each savings core efficiencies to year IT in expect This become reap in to of headcount We revenue, across features as $XXX in we discussed,

and listing been XX% to Excluding would expenses related have stock-based compensation, taxes to million G&A direct related of payroll expenses the revenue. $XX employer or

the of range. expenses $X XXXX, any adjusted $XX employer stock-based Third listing payments compensation, third related taxes the operating $XX After guidance to multi-year liabilities quarter million. compensation, loss, was ahead related our our stock-based roughly excluding total our leading direct year. cash of We was excluding high-end income to to million payroll prior pursued million, and operating from quarter we significant were to million. than greater upfront often, quarter collections Prior contract given customers, growth in revenue customer with $XXX of our deposits, ended in and

through As the negative a the result, seen flow many for paid customers months. we have explains nine first XXXX have prior years, in which already cash

cash we free this expect begin converge upfront operating we of margin multi-year over We payments, away margin will as to from over course expect time. with flow normalize to adjusted the XXXX, and move

primarily to base, years September duration as We roughly into future Holdings, as visibility by as closed $XXX which continue stemming $XXX from June July. in We the June up raised by of quarter. X.X increased of roughly our million, average XX in million total third outstanding to customer made strong and from have debt our years, investments our reduced revenues We XX. across X.X contract equity partner, Sompo

As term our to quarter revolver undrawn with cash comprised and We of billion is loan million have ended under also $XXX and equivalents. of a us. cash the debt in remaining $X.X million third September credit available $XXX XX, we facility,

at business continue each the three-phase of the to see lens our model, through stage. at strong Looking we progress

to in revenue the scale in Expand resulting revenue we in contribution period. those $XXX,XXX that distinct year. year, year pilot or have in customers As in little margins reminder, phase a often revenue than the which at to customer greater are negative end Acquire phase into at less generated significantly engaged that cohort in customers X customers customers we the of cost quickly, $XXX,XXX X have no of grow are and generating phases. in invest each than we base, them, and that

as breakeven Finally, of $XXX,XXX year, million, with revenue and months while platforms. year, the phase generating helping contribution our This revenue define testament in million year, from customers speed Scale solve than compares deploying loss contribution million. we Acquire contribution software problems. customers to critical and customers cohort $XX.X self-sufficient loss in efficiency and approaching contribution a nine through with phase with early-stage usage growth months to revenue $X.X as million the we're six well is margins, with first a of this a $XX positive which our customers greater in the of a $XX our just as those through the exhibiting only of first the rapidly generated of

In the our XXXX and nine the of XXX% of year-over-year is to addition, nearly nine we have through through in one This of customer these of $X.X classified a million not platforms compares and value generated our customers for This go-to-market acquired are XXXX, to first million been the we represents months three-phase from speed conversion. months we and $XX to efficiency meaning, from in and first new year, pilot have customers customers time our shrink customers that as with testament revenue growth. cohorts. to yet that accelerate

continued expansion from revenue for we creates from new consistent basis growth a customers the to scale customers of with we our from augment base are in together install and generating the Taken in rapid future Acquire the expand growth revenue growth our basis. phase customers, believe strong

$XXX XX% growth revenue yield in to in contribution our and in value. phase Expand million adoption as million through of of from This $XXX the margin with full-year the and advancement margin customers contribution XXXX nine for in customers Turning $XXX.X our contribution of significant strong the the negative to accounts we XX%. of of increased revenue XX% and demonstrate first to margin months same from drive year, is at XXXX. months greater a these phase, customers software continue six first million generated the Expand up from

million of customers of a Finally, through margin we strong $XXX margin from nine the in of first in margin half phase with of contribution see the in continue XXXX. contribution the to million months year, customers. contribution These $XXX our compared revenue Scale revenue first XX% with and generated XX%

to outlook. our Turning

a our billion of up $X.XXX billion, range We growth are to from and to XX%. billion guidance full-year raising year-over-year $X.XXX XXXX representing to $X.XXX $X.XXX previously billion revenue of

$XXX taxes, a compensation $XXX We increasing are listing adjusted of million, payroll direct related range employer operating to as well full-year guidance income which and to million as related excludes stock-based also costs.

revenue range representing growth million, our XX% fourth $XXX to in XXXX of revenue. to $XXX the of exceptionally given a For strong expect quarter, we year-over-year XX%, QX million

to adjusted stock-based $XX We expect excludes fourth compensation million, taxes. related and operating quarter income $XX million which payroll employer of

full-year subscription new solid customers of seeing are remain XXXX, the the the future we in acceleration from phase we we are Acquire base in provide and for growth. growth seeing encouraged For our that foundation and pace by revenue

With continue we'll we to than be XXXX result, a up for Q&A. the revenue As to year-over-year that, full-year call expect open growth XX%. greater

Operator

first question from with Instructions] Our Brent Thill Jefferies. [Operator comes

open. Your line is

Brent Thill

Good afternoon. The incredible this strength shown has government business year.

curious how the are and business, that on also think happens, administration maybe about any I you think concern pipeline? the in kind change. impact you. see if of many the investor a you guys around that about pipeline does government government the residual Thank big from If address what carryover the you have and could

Shyam Sankar

government the quite government about I'd Thank the business of pipeline excited business. segments the both are you, Brent. performing well. had a We're say great Yes, quarter.

for acceleration we enormous with just the XXXX. There a small more we've up FDA, in care. pretty in that a things pursuits a Force, number we've that was of like And systemic contract many really expect. And we opportunities record opportunities with it's far health have mentioned opportunities going We're Force, Of for COVID, And because abroad, The business but in closed there. months Capability end U.S. XX but large it the so transformation accelerated that to in honestly, not of CDC, beyond of it's while may for are started we're accelerated. that more those DoD. Space for created certainly has Like of that the HHS, clear X. enormous in of opportunities care Army. ago the there, very COVID-exposed behind us. just for pipeline, also years I and going and a programs Air Look, we've course, Drop to potentially there's invest of think around, France XX there's the big are We've other served that, Navy, work the administrations in Army, And U.S. two administration the in that's of every done governments U.K., change. couple the worked very administration DCGS, we're the terms robust previously, the There's that that improvement, Germany. part just investing your in around health been five for question it's we've NIH been a opportunities the with administrations U.S. seeing pipeline, in four there. lot in capture There's

users because with worked career they the who more servants. our they've many actually and folks buy software, are civil Our

we expect don't of a change result really And this. any so, as

Brent Thill

Great. Thank you.

Operator

Our with next question comes from Morgan [Mark Randy] Stanley.

Your open. line is

Keith Weiss

Keith for in This is [Mark]. actually Weiss

operating impressive out customer that like ramping how that nine in to maybe And is much environment if And expect how have operating and roll Really to So a sales and help going-forward building effort in or that just us, first sales that then nice up of of bit into be little of that is you of kind from to you're the terms on are more us maybe mark-to-market, starting Can direct of you should with us And one you metrics and traveling of the on the we uplift drill could understand go-forward new those can And positive this bit a impact? guys expect year, margins. acquired were margins at whatnot? sales is teams – force? savings of a on going of the you the of force, come where as down where customers new kind year-on-year. of aren't statement come the basis? because little basis? about sort sort the direct you a to help even COVID months adds. the Really much though comes a how to income out in building efforts sort that back out XXX% kind year Looking on from? expense talk you much this that

Kevin Kawasaki

Great. Thanks, Keith.

So with first, what we're the account-based – the force. sales doing

a done for about really building main more. mistake So and have with this year. think this. It's last And worked us that year hindsight, in the I starting into we we've well been year. We've beginning was team talked the very of bit last should our

So, we're increasing effort. a tripling part small We've about company. headcount there this the talked total of fairly our today,

So, of our in or phase, because little to phases the Scale the Expand a I really here, accounts and this we've we're of really of what's growing going is and the see Acquire working some a bit general revenue accounts in a more to invest think, But performing. technology and product story. here can it's working. you new some results categories And that continue closed year,

And to two. reasons, but value going highlight faster. is for to getting I'm customers are there much speed Our many

and highlight ERP just a over what customer the is to in to this weeks data started briefly able And suite. Foundry software they And using complex few integration data about and First a million, saved important ontology because of to and is chain, were modules can now consumer simulate building And the hours. software-defined our that of data supply advancements to more use used it's to earlier Foundry be large And automated. of mentioned is connected Shyam suite, same in that already sort take helping talked integration. they've module software-defined used we've it now our run their this made business in complex, industrial Vertex an company example their goods the that them and was ERP because integration. a $XX efficiently.

work. one by account the is I salespeople. driving this more recent of more guess, So, the is sales. was and value really way, our that of to recent equals more The same thing the by sourced here. And software actually means That example time efficient faster

So, congrats that to big out and team there. – you

You guys all know who you are.

a are lot And Foundry will advancements about excited also That's who about I very There seem for these future periods. suspect partners, channel are So, big opportunities but be channel sales in we modules. talked we this. to for the opportunities haven't partners teams.

I'll Dave hand then margin. conversation so about back the the it to for operating And

Dave Glazer

Kevin. Thanks,

I'll margin margin XX% of margins, So sort of XX% plus targets by our for revisit [XX%] contribution plus retargeting long-term plus. adjusted adjusted just operating gross margin of and

lot you can raised of in across change like terms of XXXX COVID you're year things the adjusted adjusted to operating of us is income, in adjusted accelerated at income, a previous investments $XXX it operating Apollo. mid-point. And our when guidance million that at sort this – lot the we looking operating full – And leveraging In our resulted really of see a company. our R&D margin

And of with lot lot with happened and we're was that COVID, said, there while you're see continue sticking, invest. of but a going to to change to going so that a that

As about, continue we're And leverage. of that our like going we'll in force, outpace to products, out to Kevin Apollo, operating to to continue sales continue continue talked invest growth to build direct top growth. see to sort line continue get expense

Operator

Our from Instructions] [Operator with next RBC. question Alex Zukin comes

Your line open. is

Alex Zukin

thanks great first questions congrats Hi quarter. a taking on my guys, for and

you is you beyond? XQ to short talk bit expect to question. the – should line around the about about bit can we us just componentry specifically – little next do year bigger you a platform the about growth look where to commercial federal have XQ seasonality doing of linearity, that little on impact sales? a top to think financial now? maybe you're here – we the going that unlock? we modularizing as and revenue talk that And and about Why business. in or think and about If in something then What a mentioned kind a remind how You And you're near to then the specifically, what of motion term, that going do in

Shyam Sankar

Alex. Thanks, Great.

we've thinking years just bit, significantly platform. five little that. in back about up So, to end-to-end over a Foundry this the – to R&D we've been here, built investing built the last do this And we've

in off. that and do in of an new – business, could IT and a we And matter using always weeks start XX in first engagements. customers so many And a XXXX had a solve of the been started investments has solution that our sort recognize present-day the pandemic. that have attacks a we or few less happy paid tailwind end-to-end COVID, And can XXXX that that more the problems that because in with. could In capabilities hours crisis way. of financial really we customers three have they premium global scaled crisis, in But in it's that or ISIS for a or are made and whether Europe also a we crisis

that And us to then let to and offering, build what by price we're a – able take channel have. expand and they from And offering, have to they kind already the land of in a motion It so time. nuanced market but over them way you changes how what more on point the allows on modularizing the partners. with flexibility the way gives can new a -- you you of going a more offering have need that you it

leverage that. that actually those to seen we would We've the think – side, of actually opens pretty new and converting. both and the opportunities it this where see And excited with Customers implementing – I and customer commercial. to about new think So, and government in – question, modules I part the yes, pipeline but I new and – on your both it's already lot even I expect a opportunities. guess, also customers at we're are last up of

Kevin Kawasaki

little base touch a for the guidance on I'll And XXXX. bit

existing So, of XX% XX% customers, customers is of – growing. our our and recurring or revenue from

year Average through customer months creates because for focused XX%, months numbers, bit here. these concentration. nine land focus of this So, on. first important to but for coming few the grew on I again, this per XX customer more think, to on customers, there, – A for and growing. starting accounts are both a top year. recurring point And little last grew to compared existing XX% three also We've numbers more a last that and to bringing reduced we're very from revenue XX%, still revenue dynamic, compared go Average our year. customers expand new our

strong of think focused out sequential you top It and nine of the quarter about to Touching the fourth thing Our XXXX. is very question, seasonality through a going XX% briefly the that are on might revenue total from revenue it's growth. be first I One we customers our on important. XX% XX XX% pointing total months had just of XXXX. in was

a here that seeing little bit XXXX out bit. is in you're a So what little smoothing

seen And also little for bit XX% to you've a year. is and what raising so guidance – our the full

Operator

next comes Merwin Chris from Our question with Goldman Sachs.

Your line is open.

Chris Merwin

think it know year. Okay, it was which renewal the that how for here? the acceleration? of $XXX for XX% about had I the in Thanks. in was should main question. had commercial driver well the significant you thinking growth above rate the rate that out business term Or looks commercial growth million to the the grew the in be thanks the a you we quarter, last as ask well? my the wins you called And taking very very I other business. for much like I higher wanted about sustainability that Was near quarter. It of

Kevin Kawasaki

on couple great the a of been commercial quarters It's Yes. side here.

deals I set new look you at beyond. a looking and are really at if here, we XXXX the think drivers diversified that's that really revenue the renewal of

we future towards look periods. that at So, should

can thing And with continue building done with wave days. And the be started, about companies, customers the second immediately. is solution pandemic within hours have our so that aggressive abroad, to U.S. area. done significantly, work can that the so on in of company, here, Japan, within hours these close the we've to we're durability we've work the we've impact a meaningful business. U.S. to done the are and work manufacturing are as getting leaning this our all we things and and very upon the into of operation deploy commercial consumer of the us into their we helping seems deals in working We expect One other goods to

the And great Foundry very around and out It's meet we're delivers R&D really to in, spent later. there all in the timing the what in It's doing stuff that moment. big and leaning we our specifics and that opportunity that for be moment. a figuring the to system operating so a core last payment software five that to hard is years and investing

Chris Merwin

on follow-up well. just And the a as commercial Great. maybe

cases a of on you a of number for in how given, that the about are know the platform, the use I wanted really motion ask partner I'm to of commercial, I use of sales there's briefly think investments I terms going issues it for before, in ecosystem be of Or customers complexity lot cases the more that power sure, but but could is just growing commercial, customers touched the Thanks. the is the a some lot evolving. of aware direct these effort? to a growing facing? we see sales that commercial making

Kevin Kawasaki

Sure.

in the sales is – there. invest quite to force we're doing continuing So direct well

early but of optimistic early of We've we're work some the little a some success. channel sort it's think seen early with somewhat about I here, partners. feeling the

think forward. the certainly that opportunities for they opens of I is with like Foundry, more we really that Foundry only be not I something more more what but the us. it, we commercial we'll talking much you'll think and faster about about the would on particularly it's use specific going of able true do modules, how it pieces Foundry the to opinion, that up lot more use. in oftentimes And they market, that it's hear more have is And sort a do, to customer just

be It does so it us now that about part for but what who the being flexibility. that this can us else they And the is instead excited Shyam, big, gives they they of have. to quite on lot So, choose sort gives open required mentioned only partners channel pricing, can to also, flexibility of seem the of that. use full stack, build it need, on customer Foundry a window

to the modules. we're much of more plan upcoming hear Foundry this to So, to in able presentations. as We as show look about

Operator

comes Brad from with Suisse. Credit question next Our Zelnick

is line open. Your

Brad Zelnick

year-on-year Great. one Thanks XXXX. that nice X.X you My at duration, you how quarter. I about I gate. so can pretty on to ask much comment how a into years all you calendar strong to on simple. of you actually quarter just and trend think trended is Maybe and contract which disclosed the out forward congrats expect question that's might this wanted

Kevin Kawasaki

on sort of with pretty here. happy getting additional the visibility we're So, revenue

accounts the I not last in other Acquire three at interesting year. grown the new grown that in looking there are think of customers there in XXX% lot nearly a the breakdown of thinking to In is more Dave group that customers. when And we're success many we are And The just last we've and about a are when are phase months. here that yet acquired thing words, that mentioned phase accounts Acquire grow over the of Acquire XXX%, year, you're the Pilot at Expand then the will time account and phase believe and compared that phases. has we're over that this has and this sort about three-phase the new we we're of in model. phases, Scale seeing XXXX really the some into growth the having with portion looked just the

phase a contribution and kind accounts, The of the those months we did XX% the our are these Expand nine land So, portion accounts here. margin. through first year, model of into did going early $XXX the million

million XX% for XXXX. contribution group $XXX negative did So, some same negative in this margin and context, a of

have worth grow. that accounts phase while should margin be positive in phase of phase, focusing XX%. this limit, accounts generated again, through contribution of and still And that's to below this three the of growth rate. Expand group should customers. growing first we're And At of margin think portion, all $XXX Acquire we the the million should in in phases. Scale both negative revenue then seeing months this performance year, Scale is and here, went on the So and just the of for year, XX%, this phase I revenue the the nine on contribution Scale XX% the the XX% go. account Scale from we to already think, months contribution focus at kind And last margin

growth like will see the So, in scale category. we it looks

Operator

comes next Instructions] Tyler [Operator question with Our Citi. Radke from

line Your open. is

Tyler Radke

of thinking you've I of And here. on force. growing Shyam, about much invested I wish look direct you'd sales Hey, to ask taking to wanted you, my for to you pretty curious able the thanks couple was comments successful sooner now I investments, how I'm from it and question. are your just of been that saying questions in the just guess, interesting, or so thought faster headcount at overall kind a one you that

of I the you're some going but for to forward? X% are you investing the and X%, for growth there? do a you I you're point analytics of of think, how up given Do on about quick and of the Maybe thinking Foundry target kind as your was some you think Thank changes in best-of-breed and landscape for data kind successes going that us think Foundry going follow-up things that guys? the against tools the a growing the modules, changes headcount vendors just just you original well. competitive to think some modules, of these And environment had then of muted somewhat be maybe competitive headcount with kind you. in the give XXXX, sense how how

Shyam Sankar

Yes.

Tyler. thanks, – On the first question

we're top expenses. continue what first grow will very faster is So, that were I think the question, to on line we – operating confident than much

kind But expecting You're so X% take I'd now, right, around or to if growth. invest, what them. right headcount of reiterate going find we're we're to we opportunities

going looks doing just we and data in down, on sales like and investments we're to delivering of there been that sales do happening. sales and able software-defined marketing, One is actually though more we're here, make it might seem some our hiring which – it's of integration. that low, our efficient sense, at X% in but and and getting around so that's right? spend, even more marketing what's actually much we've the sales direct force it efficient, kind actually we're Apollo things made marketing into isn't the but much based We're with more What

from And there. with benefit think have. lot to more a so, that I we a big humans We're able same getting do just we're the do

And things a from competitive in are least modules keep customers Foundry that really we're of of hearing that benefit. there terms And seeing at so, a we modules, we are think on we're of landscape, the that that couple in unique. some doing

customers will those. pick to think continue I

really their we're believe map that the important investments that is here forward. that what The architecture fits with working in the they going road with they've putting forth customer plans, part find their to ensuring made, already

be look, of And to but this their architecture also because about, to investments already offerings. as your with, us succeed it enterprise to of existing to more. a going much I customer I'm direct that have But effective. it to terms this tool do force made. both have best-of-breed a And really the more happy the customer help It's solution, can less that channel they for lot to partners because has of sales It that with. what so think situation the will proposition things means is evaluating less in planning. integrate leverage I the in channel I've competitive really help get It's a with really win want their in terms to tool. believe work the going I able I versus be that's to

Operator

we gentlemen, to management for reached the questions. I now for allotted over closing will have back the end turn Palantir the of time and remarks. the call Ladies

Shyam Sankar

of years when the we company would here. for this end by hard of the I see first group time, pandemic for to crisis all to conference they joining It's like past all have more it's met We you our to do hope built much And came, their all over us so many They thank present. that Well, commitment just them were and came, and call. from hard thing our moment. with thanking inspiring. They ready. the the this when so employees, the years quarterly and work.

you guys much. So Thank all. so thank you

Operator

This conference today's concludes call.

disconnect. may You now

Palantir (PLTR) 16 Nov 202020 Q3 Earnings call transcript