PLTR - Earnings call transcript Q4 2020 | Palantir Technologies Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Rodney Nelson

Good afternoon. Welcome to Palantir’s Fourth Quarter 2020 Earnings Call. We’ll be discussing the results announced in our press release issued prior to the market open and posted on our Investor Relations website.

During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our first quarter 2021 and multi-year outlook, management’s expectations for our future financial and operational performance and other statements regarding our plans, prospects and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties, which could cause them to differ materially from actual results. is close our SEC today risks distributed press filings. those market after and concerning available earnings in release Information in our required We statements, to obligation by as undertake law. update no except forward-looking of today’s measures. financial Further, during the call, will certain refer we adjusted to course for measures substitute in These as non-GAAP addition not GAAP be should financial isolation in from, considered to, a or measures.

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

Our presentation website available investors.palantir.com. investor press our [Technical on are release, filings SEC and Investor at Relations Difficulty]

Alex Karp

on a that right. year, well, macro face the that asking, indicator worth Palantir’s strong they’re Welcome, believe very Palantir curiously of because might of lagging a several then taking year what of do had We them year, be the it believe, even strong I Obviously, got and numbers last the and and strong. trends a numbers second are strength mean? actually we

aren’t moral There’s macro almost took diverse thrive aspects to and the actually oil gas in the software moral countries, that pharmaceutical citizens, that institutions government, the meaning but and both to survive now and a of that is also clandestine that second make citizens from is to actual even companies become includes COVID. that its legitimacy of the world AI to benefits and that software trend; increase they and can real protection ameliorate that that most to that providing value working a terms one world product work defined the data of airlines obvious institutions institutions commercial a context output And the value by preserved are in both we data plague to provide monetized. their becoming in as is First as output, helping way the the that the all venality to that trend that comfort merely sure sensitive of make in the to and can output, the that military is are sure is gives in be veracity the with guarantees that as context, that services its institutions. assess individuals survive institutions, work provide research citizens

dialectic sets absolutely about the interesting supply model? indicator That Understand they software you One determinative, of a do impossible is crucial dearth to trend a externally chain, of them? prove skepticism? is It’s to commercial against thrive what about to very of in One conform data context, volatility, true. actual right look in the and actual the – West to it a problem. And the off indicator at of listening a afford to a learning. is being numbers? How that philosophy, have and deal to people, them great the institutions a understand got discriminate experts. of something the COVID skepticism lagging issues data How you the around value Were your primary issues understand of of to used you that how that that we the How the is understanding say. have things you and meaning and there’s people trying evaluate not or navigate of in or legitimacy of do internally you hard actually of is Are uncertainty do you on this makes monetized, government anything when are do abused, very and be our presumably, actually history how call who software numbers? the Understand general to this is the for their difficult people becomes company of background wrong? rebuild macro the this a do it data? to society, it the you either rebuilding – very without where political veracity can

efficacious, procure something understand it So world we by that how into about defined software the what viewed software, very context government; or that’s It your we’re more before. – that but that’s in luxury thought it enterprise it your what your contexts, software, the a things in better been means make slightly a more not product. have about military can make can use a software, has you competitor can we make some largely of what than transparent, is in it now. It can augment different your than to is transparent. more here slightly that And myriad slightly enterprise, It’s integrate a context. when less would was cost-effective,

determinative re-orchestrate in I’ve unify problems. it basically in government where will software this And was, society. In going In does context it’s implemented What like actually of institutions is over or what to the actually the was context, a through to If when software which that binary, and says doesn’t. because mastery in the institutions just learn seen very effectively, two, hopefully way a in in that that will built what like from civil output, alpha liberties context everyone is questions the which the build that software. the roughly ever [Foreign Why What to works But both the paraphrase indicator. every now, the a and re-orchestrate just, does and is happen context, is the and is this And the trend you are is to a having because is language condition, a would bet protection What that the reflection crucial, look are allow determines clandestine commercial language are in of procure a Western software of accelerate. context, say against a in following believe to someone that involved imperatives point adjust meaning they doesn’t to in the it do Because COVID software, as mean software, time. The where a numbers you’re survive software. or as a philosophical real scale lagging can’t stop isn’t legitimacy. for paid happening then commercial in the Those seen buy-in this it data does the How figure we a use did – rule. cases, Foundry/Gotham, software the is you’ve in institutions attribute output the cosmetic, software with the what and did and to will this actually legitimacy? also out. us military well, believe what or way like, time next conditioned, have try a it had or everyone then language that it could COVID outperform. we’re actual fall and we the We’re hard of to will will data typically Difficulty] context? like at software constellation, it the context what understand And in who Apollo transformation, struggle used without to a which we’ve current in important dialectic And and to world to value when every actually providing are you’ve And way for will a software and mean of will society dramatically which There’s context, completely many from of control ability the software, use at in, that our will augmentative treating structures of do people is to change, the how language mean force the the get? macro [Technical societies, what quote it’s you which software and which is a Wittgenstein works? that fact mean will famous pandemic? where we’re philosophy. implement effectively? entity determining explain charge software like some seen. then the our the What happen, language very our everyone under alpha, it? the learn you in shift dialectic, the What imperative micro in moral in meaning; our be it context also measured to are winners people could be society? determine is means context, Language] rule sense, This is a it’s the you output? the software from absolutely And moral nominally, we’ve

Rodney Nelson

Chief today’s Glazer, On from Sankar, of Founder, Alex Karp, Officer, you’ll Operating that, Shyam Head hear to call, With I’ll Officer’; Kawasaki, Business Officer; Chief turn Global Kevin Dave Chief and over it Development. Shyam. and Financial Executive

Shyam Sankar

you, Thank Rodney.

core growth grew many created resulting our more customers IBM’s leveraging – R&D X,XXX build create we We Palantir. respond we with the data Eye their XXXX a dramatically XXX in partnership its moment number or short problems NHS also became announced critical the Space able In expands winning and OEM, Cloud of for of Last To for NHS XXXX Team AI’s Pak treasure. customers, distribution factory Awards than and helped significantly solve default stunningly and organizations XXXX on commercial just and a operations. of system cutting enabled the year. I’d governments their And of week, software modules in course, a operating Awards. national HHS Innovation complex like U.S. Government XX to incredibly their the a UK and edge Kobayashi days. Government three truly amidst themselves product year to and finally, shocks. for reinvent Gartner’s period, substantial next leveraging days. for to XX% applications, a for data continued commercial beyond. crisis. foundation in year And seminal customers data development, First, like became rollout. congratulate over to vaccine AI-infused on and opportunities meeting these our we foundry This enterprise a days years I’d for AI. $X those and to and winning enabling full our XXXX. the functioning on is I’d that’s partnership But was successful Force’s sellers. three congratulate The billion Innovation we of and not protect Maru, to where easily of It’s to capabilities, trusted business offering IBM, for continuums the revenue like Gears COVID that national in And XX We to on a to groundbreaking three were congratulate results. a Software growth IBM in

For our of since is you all segments prospective will value customers what already beyond. become announcement with pursue of an building compounds. context, Along enduring for The help of installed to this and in of product enhance our that than our momentum There’s both and Pak to momentum, customers customers. our continue across excited get would a response, software of sales Continuously go-to-market partnerships We has that technologies and to delivered Cloud create our been We is that were about lot energy. a our business. means that driven upgrades businesses. force to very incredibly upgrades operational partnership a The invested distribution. large Palantir. XXXX in base fast is And from customer’s clear channel larger value we the strong. lot

and software have. frontline allows XX users upgrading build away of we’re automating build use software accelerate what defined they the bring and how click Launch Archetypes production with outcomes, applications. integrating Foundry to work, take Modularity drag point AI-infused need upgrades part our of all they business data represents cases to systems what customers can business. the on of drop their but interface a culmination Our that grade and complexity integration

value generate move these innovations only allowing go-to-market. customers As not are also we faster. our helping us They’re much to broaden into XXXX, our

to growth sensors, signed digit and of force. XX add signed the We PG&E deals transform operations, in mind in feeds with healthcare, Rio the energy, agreement machines, spanning Rio sales on spanning our a collects every revenue of including Foundry expect and profitability Gas it our truth, root investments automotive, enable to combining count digital across points U.S. quarter. data enterprise across the Electric headquarters Rio large day, including a insurance, business in Tinto’s cause and shipping. operations triple across underground with fourth chain make head the and with a the people XXXX production data. face. instruments. several data, from data both increase We of contract upgrade rates mining, twin helped plus both a twin systems, direct to our sectors, operations unstructured and greater fourth value integrating analysis This be Tinto’s several we is Rio source of will deployments of the data-driven to Rio data and in quarter, take will to a a Pacific structured Foundry multi-year PG&E’s commercial digital segment, Tinto and with this which partnership action help the operational sales employees and XX multi-year into monitoring. These within back customers digital signed Foundry that we to across enhance company. We and function year. billion And from variety and to bore a Tinto’s the Tinto culmination and initiatives transactional decisions generated In than single enable connect network streamline XXX%

decisions public this shutoff safety beginning to make our data-driven its just will We their providing resulting management mitigate to will PG&E fire complete expect vision. effective asset future electric and have them picture risks. in program, enhanced operating enterprise and grid the and platform wild which fast of will operations allow integrated safety a help a is And joint power improve single this reliability.

this expansion industry, of as we as significant costs of contract healthcare models increasing more well inability Fortune complex much competitors. important And that signed profitability ranging with facing the pressures are number to addition, customer tied to their a this quarter. expanding Managing to from are and environment. in fourth increasing in was level at unit actionable granular XX Across there the company the in becomes the order model market an pharmaceuticals, value-based focus make becoming is healthcare By pricing it that care, the In reimbursements negotiations between the suppliers, This issue for network involves wildly outcomes. annual $XX to integrating cost decisions complex, the already contract now goods labor, sold operational these away Foundry, this complexity, decision-making supply on and has solution and this management payers, of a value. revenue company that into models disparate balance sources and are automates chain, of customer management. and coefficients. payments managing has managing the And the to of as led as allowing regulatory million a

We a in continue to partnership BP. And we deepen our figure the fourth nine quarter, five-year, renewal. with signed enterprise

with since have We worked XXXX. BP

is over value BP’s of XXXX. $X of which backbone has generated digital the in twin billion software Our a applications,

for power ambition. and efficiently wind towards our As help as deliver accelerate more will part of zero safely years solar its software our BP work will they partnership, continue initiatives energy network, transformation their net to to electric in charging BP’s other These initiatives generation, ongoing applications come. and power,

our XXXX Foundry. our rapidly the deepening work use course XXX several to over with the and evolved industrials manufacturing customer, cases Fortune of relationship within also incorporate We’re

who able a equipment customer deliver models order protective fulfillment and demand to fulfillment integrating to need processing the accentuating risks. supply modeling, all to bottlenecks to the the The demand is of enduring first-in the a performance records, software net of were The re-imagine shocks under into our decision-making forecasting supply faced chain customer customer the engine away in alert As was weeks. firm’s conducting to supply address chain and is a a of chain using onset manufacturer result After and with supply challenges, couple most its intersection this to at and supply from personal management substantial baseline its need first-out users practices. manufacturing. sensing future including connected and of order order inventory those, PPE scenarios, and in and COVID, move connected dire chain

our government segment. to Turning

provide made the The the full-year overall. government focus ongoing vision well in We the our both on initiatives these XX%. XX%, ongoing U.S. government, on operating underscores extraordinary the in which momentum grew for Launch in progress defense near-peer led our fight revenue platform XXXX as XX by Gotham to Our as central rose context.

XXXX capture As the tip segment were positioned new was government the for in opportunities at and tremendous well of we of iceberg a significant year and beyond. we are believe the just as we to XXXX

that enable across product intensive We Our and and space AI services. the are superiority end-to-end starting technology mud investments program in sensor-to-shooter is developing of record opportunities unique an opportunities with capability to to off. to create the large creating were paying warfighter

the a security selected is common prototype at be at army space, critical option to this with In We opportunity that contracts readiness the army was planning, data billion army and modernization This army to a is the our to another to integrated Our Phase XXXX. vantage. of its December, the out, we army’s X provide It for asset fusion, aerial efforts for a operators down the yet we in the sensors and mission is The Vantage joint pair and for fabric of free overall for new billion the to timelines that efficient continues support this. expand. army work capabilities access and in to will solution, efforts. increase capabilities execution. helps software to collaborate Army’s used degraded provide total built commanders $X.X Under we’ll management. the by of and January, to the networks just investments, and contract mission of station continue with its for the use excited honor years this. incorporating its exercised denied data range $X.X November, army million U.S. Vantage intersection in terrestrial the to solution modernization have to phases to across down those selected and critical the control. deliver Palantir were both $X.XX year. the targeting financial data in advanced contract and and won for carries a support for which intelligence was to mentioning, allied solution support data space first of an ground a prototype up the partnership potential We Titan that’s a partners. provide integration, army recently with product with aid using true demonstrate of And a with Palantir part deliver are were AI. soldiers using value improve army operating will program. accelerate with integrates In high a to reinvestment. command I shortened analytic intelligence, and In ultimately all opportunity collaboration of environments, sensor as command solution

We programs while forward army, problems are our with to new as other in relevant well is of lot similar XXXX defense U.S. needs. crisis as with looking and this continuing it response all to of almost work services. COVID, started opportunities to pursuing the area enduring And a as

a PPE, contract to the started resources, Palantir’s For the all availability, Force, plan patient most improve two-year where trade the personnel country’s is care Force patient data processing fleet three Foundry also it software up and platform how the important managing with enable to and In and COVID-XX distribute support and vaccine with will and availability. helping clear can see for efficiently to their timely vaccines, of and powering worth protect the it’s may supported December, as privacy. but UK, The readiness reliable, decision-makers of core NHS, XXXX availability, $XX we priorities, Air engagement example, million, in to PPE the readiness. working we plan testing, has the to In national combat a secure, equipment response. COVID distribution, Air serve signed post-Brexit.

in Additionally, the Foundry. program vaccines vaccines highly UK’s ordered, tracked allocated, successful delivered and their

world. While closed the the three-year a supporting institutions expanded come their our deals we are $XX quarter, post-COVID on that leading world’s contract. fourth with In focused we back we million with continue FDA in to to relationship healthcare with partner ongoing a the transformation COVID-XX,

began in data. of center research clinical excellence FDA in across to XXXX partnership Our with aid the the oncology regulatory trial

significant new assisted momentum. ensuring include of revenue deals who acquired worth mission the Our We work acquired relationship and the grew. our exceptionally, FDA deals, workflows, in Research, evolved customers, deals they we to rules substantial there the signed reviews. year $X speed revenue phase fight worth we indicator. such activities. opioid the in the or regulatory two over join enduring agency out number with to growing. of for touches and CDER, offices which fourth time drug a groups as million the for these Center saw This Drug and with opportunity highest while FDA. generated and XX concentration have are even regulations more or with XX as million even This significant review the positive growth. our each crisis performed strong agreement as will year is supported enhancing model more. XX% against to in critical deals, including market of that and forward-looking complying In $XX and in quarter, many with both a closed XX new annual up the aggregate, significant manufacturers in continue are pipeline decrease concentration we Evaluation the further centers deals, customer today of just we at expansion yet three-phase phase, very maintaining our is start and our and work time These standards on and the safety

by XX%. of $X.X continued annual growth customer with million We million. average the to grew revenue more existing customers per accounts revenue number of of XX% with intensive or growing $XX the Additionally,

demonstrate still we’re at very enterprises. that as at to the we value relationships increasing customers’ our grow clear We’re it’s add our scale, to to ever beginning. customer continuing ability just And

finally, for is every the XXX. front only XXXX. Fortune their immense XX of thank I’d exceptional like efforts And and the include The customers the Our global in growing. opportunity XXX, XXX XX habit and eight us of each of to of and global in only

from to rooms floors from the were manufacturers you needed front of work done. where to factory lines You ministers PPE where the the went most actually nitty-gritty prime rooms, the at of the vaccine war the got briefing

driving executed moment, did the of built their the this you products support the and changes all business. operational You that and that met functions while

each trials through and ongoing the of supported other pandemic. tribulations the You

in are You all And honored constant what all coworkers. I wander the reminder the pass joint grateful call This discussion and disbelief truly I’m off a who not of for the to accomplished. proud off you financial I’m very only that very I’ll opportunities to that often we am lost. have kick to on for is results, you. And so it Thank impact. beginning. you now are Karp.

Alex Karp

near-term obviously, way you be significant and this that every as we’ve that it our transferred investors choose that anybody continued should of business committing America my a five serving indeed, focus the we we would one that is, we would and do way call relentless Street. average we’re clients world, And that money quarter-to-quarter be serving more a from underscore and above focused insights; the results, on the fanatical next main There But to succeed, of is a vision threshold and and to going When the and for you. everyday from we would too and a on companies to years or secret, of Wall company who made, are government business, believe health this have became in – that of And current way, believe who because and through we’ve we’ve people those Palantir and long-term so pretty us have succeed why global we people should quite more the believe to frankly our vets clients their world. on of want from didn’t government the us. near-term, software, time, to come on the And strengthening a that sense venality XX% of to abroad. that focus call, and we very, for of company, from after from the but providing a in to – companies the person running the will to believe what pretty software long-term commercial. because over would started very way optimism only the global do you’ve with best in one years, should participate fixation protection. sublime that, got we what no the powered the in any case, the people beginning in keeping the suboptimal year any no be based tech tend become radical had commercial integration produced not business, not we many to a with American you focus those went focused insight typically are most important we that didn’t focused could will guidance west with quickest growth IPO, because or is of day-to-day, rejected focus, destroys now, are seen that stay many risk. When performance. succeed, data you data because Wall succeed, one absorb that of our in they there’s interact serving hope suboptimal that indicator not therefore thrive actually at the metric, are because a businesses especially best short-term Street to reasons a prefer businesses, that an and on history believe the this as a Palantir, did went, investment, transfer on are we we When on investor DPO allowing in to the the of and heavily are generate [ph] we you some an returns of both we’re not secrets be appropriate have thought be lacking a conventional we near

Dave Glazer

review Thanks, and quarter revenue year up performance XXXX $X.XX Full guidance XX% $XX our prior year XX% outlook. roughly million high billion, $XXX Karp. our range. million, revenue by was year-over-year, of and our XXXX full I’ll year-over-year. Fourth-quarter was followed fourth above the end up

roughly XXXX, up revenue, broaden for the we was revenue revenue the our XX% up customers our continue representing XX% average XX XX% to customers $X.X million, our down year-over-year Average revenue million, XXXX roughly XX the top year was of base. from with addition, as from customer total XX% per and In customer year-over-year. in top $XX full XXXX

year million contract million full XX% million than and of to the in in value XX grew quarter annually $X In or taking or customers assets grow their deals including customers from year-over-year. more fourth used more XX more or XX% XXXX, we grew this realized million compounding data closed XX% see $XX across grew ability XXXX, the year-over-year. annually was XX% the revenue base. rapidly deals million onboard our worth customers customers In as more develop. $X $XX new of in Customers alone, annually generating And customer place and our cases more. number $X our than We than revenue generating software to improving For exemplifying year-over-year. scaling generating later total our value of XXXX generated

three-year signed by including U.S. NHS. in quarter deals million. revenue quarter million and growing Administration the agreement fourth year-over-year We XX% at two-year $XX million the a Food Drug Looking segment. to large accelerated a and the expansion $XX $XXX in several with the with revenue Government

partnership as we Army addition, the program. the In year first Vantage $XXX option with that million executed our part Army approximately its announced on of U.S.

with signed the up $XX in X,XXX period, Fourth compensation. expenses versus was basis XX%, fourth margin the commercial on million software’s I’ll points deals as million adjusted XXXX. stock-based in quarter, BP, revenue we year-over-year and year additional margin investments up margin million, driven improvement in basis, year was adjusted our full our to efficiency margin Also XXX% delivery quarter renewal in segment represented segment. basis that For and revenue. next been XX% XXXX points, and compared revenue at the in late. by and continue eight year to revenue heading into gross enduring XX%, $XXX signed partnerships. segment which XX% U.S. impact the includes acquisition in X% aided our X,XXX commercial year-ago while government deals discuss contribution and up fourth our account-based least U.S. with full-year adjusted nine-figure gross we our in to gross increased the quarter, our commercial margins the and with and $XXX fourth automation efficiencies the of fiscal channel XXXX. the highlights rose ongoing double total was of which full The contract roughly even year-over-year totaled including challenged momentum Fourth Contribution fundamentally quarter, revenue commercial and in generated of year-over-year, the of nearly quarter, by have quarter a $XXX XXXX, XX% our commercial sector grew value year-over-year business strong In million, force XX% has in XX% segment with we margin large a in year-over-year year-ago see several exemplifying sales in our full we software. execution. customer grew an

Turning taxes fourth $XXX in which to operating operating our quarter related stock-based million, payroll compensation. includes were adjusted $XX expenses. employer to approximately million expenses Total

million. income by was operating fourth operating and employer compensation income quarter, operating Excluding $XXX representing excluding operating Full been Fourth in compensation, taxes, a related stock-based of cloud and employer taxes outperformance quarter margin year server an in our reductions excludes payroll these XXXX XX%. stock-based direct related expenses revenue continued million income, The XX%. hosting than efficiencies expected to expenses, in adjusted have primarily total $XXX listing expenses as margin main driven and non-recurring $XXX operating adjusted costs. was quarter adjusted higher well related would as payroll was a million, in software delivery our which go-to-market, of adjusted representing

contract noted customers, last pursued which such as and As liabilities have historically we often growth to in in has upfront prior quarter, periods collections billings significant multi-year we from cash exceeded revenue. payments led our

away greater contract of to such multiple payments collections and of moved our a collecting of from lower recognition which Over from of coming XXXX, portion revenue the have XXXX years liabilities. the our of course we’ve upfront practice cash led

drive collections metrics. revenue for to from expect begin and in cash over several with across the the which XXXX will flow measure year. normalize parallel moving operations this We of positive cash revenue course to more We time, visibility over

$X.X First, strong the business to particularly across in customers deal considering we of quickly both COVID growth efforts average This civilian defense monetization and government contract value they agencies. ended responded move and crisis XXXX with when contracts rate the a on across to total XXXX than billion procurement X.X accelerate shorter the entered dollar-weighted year-end while various duration was as into is usual years.

the and government tailwind expect We these a customers expand. for as renew

XXXX our XXX% was XXX% current performance increased the December RPO Second, XX, $XXX year-over-year. as up year-over-year, remaining million, while obligations of

RPO convenience Although the in representative commercial contracts of metrics view our limited momentum business. and clauses, into our business the our seeing is across growth segments termination government these a our in for as provides ongoing and of we many are feature

Third, In we year a annualized dollar-weighted commercial strong and dollar-weighted t XXXX, fueling in for a segments. XX% look beyond foundation growth government contract providing increased at duration value XXXX the basis. our both annual the contract on year-over-year, across value we in and booked closed

the year strong business the model, we the cohorts. with three-phase three at across of through all lens our performance Looking ended

generated XXXX onboarding fourth XXXX half and beyond. XX% customers rapid in pipeline phase a Expand generating our believe fuel coming Our of and which an million increasing with these Acquire nearly phase customers efficiency we help acquisition expanding and scaling in revenue revenue expanding with margin the value process, customers was negative and these increasing million this in a margin margin with efficient XXXX. $XXX our this consistent full to customers opportunities. in upsell as continue growth This and year XX% platforms XX%. fiscal see contribution represents a of generated in extremely the year software for These XXX% for cohort customer of yielding $XX from the ended contribution the margin into XXXX growth quarter. demonstrates cross-sell customer This customers contribution year-over-year revenue contribution will of over

growth $XXX compared with customers year-over-year and contribution a scale-phase points basis X,XXX XXXX, of as XX% our Finally, year in X% generated expansion profitability strong the fiscal XXXX. to margin and in contribution margin same growth revenue demonstrate customers continue a million and representing in customers these in combination

$XX generated million acquired In addition, in for revenue with was the from This the growth customers million XXXX, XXX% in which recognized we new year million full-year in in year of quarter $X represents year-over-year. $XX and fiscal we XXXX the fourth fourth quarter. compares

long-term You our orientation. heard about from Karp

sustain future, help for next elevated investments rates our we broad our believe across commercial segments. we growth a years five and range the opportunities move will and As we the us as into beyond pursue of government

year, the $XXX each expect in $X the For midpoint revenue at our margin in the greater and XXXX. we expect growth five-year Rodney in expect XX% adjusted quarter. than for turn XXXX, I’ll greater for than five this QX of of years. we in And open million annual that, up With to revenue over call we expect growth billion the of operating or outlook, XX% Starting XX% Q&A. to year we revenue next

Rodney Nelson

first begin join Palantir with rate, negative Kevin Shyam; me you with is guiding for John, Palantir Can Can year. choppy growth And Dave Dave. on you on should compound this investors question. expect unforeseen growth for expected a some will comment Thanks, long-term or such rate? barring this growth impacts start double-digit and today. numbers. questions any sustain economic percentage growth a say, I’ll Q&A shareholder from we’ll yearly

Shyam Sankar

the what guidance. I’ll build earlier on on Karp in call long-term said

very at We beginning did are XXXX. just in growth We XX% the here. much

We do growth XX% – XXXX. expect in to sorry,

Look ease case. Palantir our dollars power look billion about that months of that and data now integration with – means of about examples greater in It’s of And our you millions than And to happening. channel self-managing many growth think that’s seize software-defined IBM power not product like XX expansion, of not have positioned we we at about the minutes. Look global in at software. to with have the really, a of point but just Palantir, cases in the that XXXX of but uniquely deploy of the in X,XXX, the where not being We to XXXX. of it’s about the talking distribute sensor-to-shooter the XX% get clicks, expect spend And ability Palantir that investments can or few why thousands customers. of of government That the potentially the be Fujitsu in roughly, the are currently and use $X you in we’re It’s life, space cost we XXX% QX our mud, market, opportunities. system means confident those that would about we’re quarter-trillion the after and to others, spend mean top with XXX of entire partnership XXXX. distributing taken itself. archetypes deployed market top Apollo, kind do growth about can is just anymore, the are dollars in the modularity. I this the the from billion investments these IT weapons of looking DoD Broadening going misses to powerful of end-to-end we’re U.S. Automated. workflows XXX. end-to-end, But are $XX Use of long-term it’s we’re software to among with and investments only around TAM at manages now tens our

Rodney Nelson

Great.

So, please a Demo of the and question I’ll is you side Palantir can the with specifically share in business? you, its Demo on customers Day – the was and potential next experience the received on Shyam. stick would Day how interest you products Could commercial surge by of

Shyam Sankar

helped generative Demo we understand by our with – these customers. marked conversations And of with growing Yes. if Demo a front beginning. prospective in have us Palantir and customers. opportunity can and force were the how underscores it inquiries. are But solve, very some uptick tremendous the potential excited they Day really led to a at the much sales that it Day in had inbound customers really was kept hit and busy. great problem pretty We

problems. that One about reflections to many, Foundry Demo had I that truth demo. an solve the is of we the Foundry all-purpose that so tried many is But Day do can

So, be DoubleClick. Demo Day April, another in we’re hosting event – going to a

more Foundry, focused more on use more on spend cases to time We’re going industries. across

for and details. registration tuned formal announcement stay that So,

Rodney Nelson

as Great. timeframe widely any is the Foundry’s chance as the Kevin, public? big consumer-level next company one. or price you become businesses apparent announcement I’ll to available, IBM or software? become common come Also, for more there on to more this Will medium-sized such bullet-technical deals

Kevin Kawasaki

Rodney. Thank you,

delivery cases as of allow about large short, to and of to important So, this yes, the QX. year, we’re Foundry. This excited full about the means expanding for and here partnership products this QX use automating the full medium-sized medium, And you last in code, with and it’s with businesses. And how can of adjusted end-to-end drag, have TAM that that drop. In well. that margin of just do result the deliver institutions. XX% talked this, no note economics small is I’ll our we’re margin yes, our start just us course, we unit small, really can contribution is the power to XX% in Shyam gross

lot of salespeople adding and right. made IBM of distribution So, to scale partnerships course, a like just sense,

Rodney Nelson

the I’ll commercial back partnerships are near-term on overall seems enterprise the opportunities segment. focused come government channel the at come that Great. of are like side need broaden the your next growth Shyam, you there to be channel What to I’ll – sourced? this It directly one. to bulk the on of

Shyam Sankar

on have focused of field partnerships build future in focus Palantir’s We the been these retrofitting specifically aircraft, ship, other programs drone, programs. that And onto The taking build is proven partnering weapons capabilities platforms, vehicles, unique them and they’re explore large existing the inception and in primes. putting of hardware that record capabilities, submarine, are aggressively into from to partnerships, already them AI pursuing and that partnerships platforms. folks land the with divisions space-based But systems. with these

inside that this unique missile, these way so approaching partnerships is the in a shooter. every looks of of And something inside to commercial sensor we’re in like drone, edge in going inside the manifest of every every And Palantir of with item. Palantir every

So, massively that seems get the this importantly, the preference installed high-margin, that This it businesses much see for base. a themselves to opportunity with us that against a of massive cap. course, market they for partnering revenue the I their expansion this shrinking and as primes it of think recurring software reasons to leverage of budgets creates of item like by means, But is commercial we And XXXX. talking the generate with Palantir. more their they’re them, most excited TAM-expanding one in growing own this multiple driving is their defense face way about in

weapons customers just mentioned entering earlier, $X.XX for I in to is the but spend, revolutionary this not actually, get. our IT this going roughly system address enable after represents opportunity government – us they And DoD As we’re now of trillion joint I into can terms of a spend. that think capabilities

Rodney Nelson

on to come I’ll one. this you Dave, Great. next

terms other Foundry to expect other can from meaningfully repeatedly achieve clients X,XXX In targeted achieve it to revenue to the and along hit of when profitable? does level, sources profitability, Does Palantir need become platforms a where continually with profitability? Palantir

Dave Glazer

gross on for XX% it. briefly in full-year XX% to XX% I’d XX% Kevin XX% touched for in just margin and profitability, year. margins contribution but point QX, XXXX, for QX, adjusted full-year QX, operating the margin On adjusted XX% margin today. in XXXX, our full you

where did And a ahead growth. to opportunity year, why going it’s is We a year this we continue just did XX% in have this we and unit the we’re of massive proven really, us. And it in like really economics investing growth. that

Rodney Nelson

Q&A. more Great. the open Shyam, I’ll for come for call back to you before we –

cloud public such providers relatively Microsoft, offerings commit – announcement as AWS, IBM the to Azure, such small. you managed other et as While cetera? expanding Google is Cloud, cloud share Can great, is to their

Shyam Sankar

crucial and to cloud, it’s cloud new can it cloud, efficiently the billion need our that their security, to It will our worry we should it have to The anywhere. Let’s start drone, you of on a understand on your advantage Humvee. offering important committed software seamlessly. on In of of about and that future run this. spending Apollo, over our run SaaS are a and to space, providers. customer cloud, the taking my wherever in technology. have majority in not reliability the you vast also speed, customers we means of $X It’s Apollo because with – know,

just give one to of you us call of never So, with it And turns out – providers. we we’re are they of a operating a get, got let to these us servers. I mean, providers know that there we’d the a Elastic actually out offerings limits the actually sense We how calling to that that, is. Compute thought scales were

how channels. think us, So, think maybe, interestingly of is with all their these more do we’re providers we providers about places. in about to all of these But course, working to these

customers; one, Our these it rapid cloud of amount of delivers solution our value consumption drives a to amount providers. for that: offering but two, a is massive an end-to-end

focusing we so a going the continue working providers for have we’re generate the most us, growth where go-to-market. to And on that with joint

So, the watching it’s worth space.

Rodney Nelson

you for to question. our Operator, Great. it we’ll turn next over

Operator

Certainly. [Operator the Brent from line question instructions] first Jefferies. from Thill comes of Your

Your line is open.

Brent Thill

that that. morning. Good this? – give This can the this confidence for the a you talk just industry target the – big is in few that type Maybe target, The target. pretty to Thank of making to obviously target what billion walk you. and revenue if achieve could XXXX, just to you a $X companies you through you are assumptions achieve that and gives

Alex Karp

You Brent. bet. Thanks,

this? gave What’s And kind us the Yes, starting reiterating looking year, here. confidence some growth we last forward. revenue XX% that that growth just of numbers XX% driving So, the QX. expected gives of off in

distribution. now new in force, mentioned grew XXX% government, QX you XXX%. investments growth commercial sales revenue partnerships, that last the channel in Revenues data, both direct see in growth from accounts our And U.S. market, in product with can XX% yes, as fuels along year. made, the this So, the U.S. revenue Dave we’ve really

XXXX acquirer-phase Our second customers customers XXX%. expand-phase were of grew in XXX% half the over The alone.

margin, adjusted a we account about think one we Our we And XX% customer increasing while last year contribution growth worth land the showing of pipeline about talked doubling but strength already nearly this So, and our did we probably last gross our to revenue XX% XX% expand? year from average year. margin, that reiterating, margin. XX% in up million. $X.X lot grew our per XX% that’s I and how new –

Operator

the Weiss question from Keith of comes next line Morgan Your from Stanley.

open. is line Your

Keith Weiss

Thanks, you, and very question, the quarter. everyone. taking nice for Thank guys,

equation, Dave. you a we of in the versus probably question in of lot was just revenue some for understand slowed it think us QX volatility better I of And side the helping better help down one kind Commercial revenue growth growth? us kind a income of – QX. On see the into understand can statement.

year, the Sounds full over really you did like, well.

explain you seeing how used are lot So, of we to Because can that trends see volatility? there. to a us think recurring investors software pretty and I revenue revenues smooth

the So, side is big why on T&E But Like the OpEx one, full could growth. two, down of adjusted year-on-year guys bouncing quarter investing us it. investing for you – basis? half basis help OpEx XX%. huge aggressively of down revenue about the the a of I on OpEx probably given was an terms was OpEx technology, a it low? have so it’s it’s of of in XX% for down you year, almost And understand very go-forward why are early equation. the opportunity is kind a still chunk days, like year-on-year, a that the that opportunity, versus such lead for if down in it know around the on really

Shyam Sankar

the I’m investments start the product. jumping Shyam, seeing I’ll one. what there payoff you’re of Well, things, Keith, in with the this on our Really long-term is and in is OpEx

direct down of acquire which end, sales acquired force, was step-change we both the the cost the component in with the is And data how second of reduced, of cheaper and of us last and paradoxically the a allowing reduced our unit to that model. us force. you’re product Apollo software-defined shrinking investment shrinking the the business, direct efficiency the the revenue. for on and the sales and three-phase that duration has delivered cost cost customers sales capture the year, marketing. terms customers in by outside of marketing. investments out archetypes that, then the of pilots, On top revenue And drove around building It’s marketing for in and massive us other sales So, that investment in which required to around of course, sales and integration seeing

efficient of a if investment that expect to on here. see, that But invested and significant you’ll So, spend a you in base more should course, go going much forward. up very see

this at that significantly way year big going Now, customers. in effectively investments the at XXX% here. customers perspective was a we of we making in in and look of commercial, we Fujitsu partnerships, in as commercial sales from about growth. invested A Palantir, a And And direct many our the to is terms folks it XXX place the of growth channel commercial in have, lot forward. we’re be – expecting right distribution Japan, good our then countries, look commercial there, when what from that force IBM that have week to at employees we I sales that in amount we’re with had for resulted really expansion, you our forces the feeling should Worldwide, adding U.S.

Operator

of Goldman the Sachs. line question from comes next Your Merwin from Christopher

open. is line Your

Christopher Merwin

how set way. Are of mainly Can which the ask much all? by a use talk cases need about Obviously, for horizontal bit taking that not that easily my you generally spenders sounds served Thanks. other so modularization powerful Foundry. you question. much if very you at today? pre-packaging focused competitive are about like Thanks your DoD wanted more that on and I it’s Okay. change just need to the a solutions, might you for very platform,

Shyam Sankar

a It’s question. Thanks, Chris. great

market are. building modules that of customers their completely from by unique. focused that their customers been as them customers and allows going happy talking they’re to the allows offering a We’re unique, perceive set modularizing these we because to focused But it that existing leveraging offerings components creates accelerate underneath the there’s many a perceives very around allow it being them that of are them leverage modernization on prospective it. us and that spent excitement amount in with way be offer that I’ve that around we a on to core are Foundry And continue much with and investments, unique as really things we’re of journey to huge unique they business. that components to modules where also they being meet years quite it personally of their

Operator

Your from line final question Zelnick of comes Credit from Brad the Suisse.

open. is line Your

Brad Zelnick

guess, congrats. engineers? Thank explicitly intend the how how in sales of more ask results, to heads so demand hiring hire? that reps the maybe does remind captured Great. triple-digit growth that you us XXXX Can I you in by that about Really productivity think guys. I you How perhaps or was should much progress strong versus cadence you to just sales and wanted of and much in headcount QX we these forward-deployed and about ramp mentioned.

Shyam Sankar

Yes.

that channel could is more way most growth, by driven in and the partnerships pretty So, now of this than our we expect thinking direct I half. being sales government, about of incremental think, I growth But the U.S. commercial, good substantially investments is half the we’ve that roughly, way can about force think grow is here. had and U.S. places where

that And also ready a them there’s lot seeing just and where in seeing to future lot is coming there’s how to ramp, to it’s we’re but happening be productivity in what ramp of marked taking is more at more in we’re demand reps inbound our the we’ll I long – a be this terms get time productive. comment In in think to market, us. a a periods, compression

ramping hiring the meet the as about to possible that demand. So, ramping and quickly we’re pretty reps excited as

Operator

a That like and this the everybody thank to day, disconnect. Q&A. may Have wonderful everybody. And I to would for joining now you take concludes time

Palantir (PLTR) 16 Feb 212020 Q4 Earnings call transcript