PLTR - Earnings call transcript Q2 2021 | Palantir Technologies Inc.

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Rodney Nelson

Good morning. Welcome to Palantir's Second Quarter 2021, 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 third quarter in fiscal 2021. Management's expectations for our future financial and operational performance and other statements regarding our plans, prospects, and expectations. promises which and differ could actual not risks subject materially are results. uncertainties and cause statements or are guarantees to from These them to distributed in those our in earnings is concerning filings. market available Information press today risks SEC release, prior and to open our law. no undertake by update except as forward-looking We statements, to required obligation Further, during financial call, today's measures. refer will the we course of adjusted to certain should as isolation financial measures be measures. a from for, non-GAAP addition not considered These to, in substitute or GAAP in

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

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

Global, Sankar Joining Operating Officer, Glazer Officer, Head me Development. Dave Kawasaki, Financial of today's on Business or Shyam Chief Chief Kevin call and

will turn the comparisons to course call various These refer Over our rates will when year-over-year Shyam rates get reflect started. we I the the to stated. of call, business. us discussing to over unless otherwise growth

Shyam Sankar

Thank you, Rodney.

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Shannon Morahan

constellations, deploying provide AI here of growing to software decision-makers Earth. the harnesses satellite on insights to into Meta-Constellation Palantir's power space

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collaboratively show AI for each the then over bit that Edge me to find satellite, you a constellations response port. requests, the coverage Integrated looks each onboard Apollo to dynamically through determined micro available. submarines like. Palantir, Allied what AI the assigns models automatically directly which about stream those tailored orbiting Let monitoring are sensors models and little Running In Meta-Constellation users. scheduled insights to Meanwhile, satellite. will

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we're As Meta-Constellation. on it's that it to of Whether really Palantir's I to submarines, the empower leveraging hardest Anti-submarine you just first problem. your can signs. spot is using hundreds Warfare excited to And wildfire software about Meta-Constellation tell, it satellites see bear users. responders that as brings AI to Officers there or the described find

Shyam Sankar

customers to in product revenue average grew in exceptionally customers We grew for customer. a dollars quarter. drove commercial The average and Thank XX QX XX% per results. million. of XX% XX We from quarter-over-quarter more. you, commercial revenue to closed The in grew of more XX million. of last of XX million revenue and deals distribution were number quarter Shannon. revenue X.X XX A or X book QX. generating or while the million over to million XXX TCB rose for alone, more, Total added sequentially year-over-year of million which XX net million new XXX% QX XX accelerate top cutting-edge were customers efficiencies XX%, strong second U.S. year-over-year continued XX

forward. first into the flow, the strong, a that's free growth driving XX% of adjusted generated future grew and For XX% we is is at momentum the operating core total these deal billion. results as half, our innovation to XX%, increased adjusted margin. cash XX% Product value business revenue we and X.X And visibility

or from heads, special first above recently transforming how And Edge We helicopters week, through just and customers. from operation's Apollo AI our boats. mud. of to inferencing technology, number last advanced military a this the onboard You for XXX running just completed was truly including space our of capabilities innovations AI our saw fast kilometers delivered on Edge crucial space,

by enables been centrally losing to they help sub, on-premises, are commercializing meet they in our offering Drone, gone secret where to we're us always our And where their been SaaS classified to customers SaaS itself. meet customers managed Apollo before. It third We've no our solution. now, SaaS of going the has a where scalability our networks, are. able to has customers platform, advantage. the and take satellites, efficiencies our Now, Apollo, without

and We in enable have They companies a going that cloud. are Apollo core to software key have the customer and a we've run installed require the R&D to other these greatest have effort. big of alone, forego enterprises but upgrade bases to problem, software and customers, in with Fortune one that existing a running cloud-based SaaS the of developed like from because all quarter a our leverage cloud-native solutions. customers, these works large it This identified they can to XXX the minimal to run cloud-only needs part customers on-prem only with they're of cloud, this established deployments. Company one, prospect require latest to And future the large on-prem and on-premises. a same it their going government their specific to not where that At $X.X upsells billion they're years of investing work run their hearing R&D where they've in running the DevOps cloud. feel as who well. their Leveraging SRE to on-prem Apollo makes offerings teams to

sheer a around of We last lot expect to corners that of to to the investments years start become start XX see more expanse commercialized. here as to sought R&D, do the

efficiencies well. established distributional see companies with innovation coupled as to continue accelerating We product for

laundering customer. application only And unthinkable project might've timeline been branches banks previously data optimize and Foundry, the of deploy to over to requirements and and this days, of because Innovations regulatory arc. development data years an our leveraging the software-defined banking from unthinkable new the to the In processes. were an ago, Europe integration entire our frankly, in out-of-the-box are integration is thriving we for match The Archetypes cost This cost instance, compliance functionality of needed where technologies and retail to XX,XXX taken to us largest product. X. to able For its months. urgent marginal it an eyes bank with driving move a came even our two possible anti-money compliance just has in solution three facing to are us of quickly in X. no-code one three the would've customer, challenge equivalent built marginal of

people customers deliver precision it's Blue of this operations. Rio and one of to geotechnical depth And a where compounding have deployed or the assist customers employee digital these equipment of separate below to allows mining in outcomes. all drive will to our do on from Tinto's It it ever-evolving Spin mine using complex we're km increasingly wins reaching for of allow these operational to maximum on in the performance, safe pinpoint to to build the they with empower is away, at the energy, from see being Foundry of strategic an is Foundry technology pioneering are hub field. see state-of-the-art wrangling this safety X.X a mine at to to underground. conditions, has in its exciting wasting keep asset Rio shafts Rio ensure streamline more solving surface. time operations caving XXX problem Sensor able focus its can of underground data of km In and operations, of years scenarios. and mining, measure monitor to challenges ways X operational In experts users of miles thousands to tunnels All outset, tasked legacy comprising up made end. instead months for to our the hand systems

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utilities value has and in unique delivering momentum continues Foundry a where the scaled weeks. fit is Our to accelerate in platform

Rodney Nelson

cloud. of is management what National and we QX, XX% is two And is announced More last broadly, from They Foundry to we Foundry is other California Public for really really that's reflected bear AWS, the that's guns safety. clothes. the grid alternative established are And see we really procurement, or building changing. tomorrow. a just big they how QX, took the about connected in guns, few growth notice utility any and no ENGIE QX, the customer Southern where The Grid Safety talked added Power Azure, these count, In any young the Shutoff, COVID isn't our I've to today are an the growth quarters. creating solutions companies spoke young ready everyone. need proven and with assets. more partnership emperor did that tremendous The in that in had to for commercial It of software we've PSPS, where PG&E. Edison, or utilities, In showed market it's as too. that

companies that platform. companies, Foundry. public newly a that to early-stage pursuing enabling Our software is they're And on from number growing of vision

Shyam Sankar

us enabling is these as partner organizations We organizations their as to build innovation The Foundry. to in distribution they companies. industries on offerings refer many with D-zero these our across

just is twin real-world Wejo a biotech, in end use and spending example, health experience like across and to our automotive set For and digital for government sales evidence to done new way authorities Roivant Merck suppliers, insurers. a capabilities and both with building to drug data cases therapies. and spanning vehicle logistics, ecosystem, build of pharma we've materials like unite to Sanofi public box a spanning support Celularity raw top in all more. and pharma through on share is both OEMs, and work key standard is on pool partners customers, development the drawing cell-based much the development Foundry. NXC SaaS trial R&D connected operations, out In shipment that Group disease platforms leveraging And In and so areas. incorporating companies accelerate manufacturing is data building

the companies marketplace. are builders, not companies businesses their to supports to efficiently from the Foundry with We with manage actually more growing in Foundry to disrupting accessible to enabling for build operations zero early-stage but Day on them program increasing win allowing outset, making these to yield, access the their companies to incumbents the of Foundry, even complexity Foundry just which into

Rodney Nelson

IT investments on and competitors catalog. obsession They focused to that. Foundry they internally, companies, winning, are founders, in as are with they reinventing just have legacy every engineers way and IT bought no do entrepreneurs, down see these the And best while by an wheel

Shyam Sankar

and carbon consumer Origin inspections, for experience de-carbonize to which plans This our the Gecko early-stage their in program to achieve product the push builders. companies we excited we includes selection time. the robots this of in innovation and extend Zero supply offering couldn't more over and, of And to companies Medicare all footprint. opportunity companies a our is substantial is ongoing really, and is badass We context generation with of this variety to enrollment, like Chapter, happening net negative Day industries revolutionizing Robotics be in in see is Materials, plan X industrial companies And power ambition building these business business strength. helping the chains grow next of or to net and which more investment

to U.S. see quarter invest the just XX in quarter, function accelerating. commercial than doing expansion pilot's Xst broadening We our new new Force, third Special customer combating and work uses distribution U.S. more revolutionizing with the in future value new and Global contract to and reflect healthcare, adversaries. CDC. and administration. our in hires our second into in Operations Guard, Information for We for a is added participated In in defense, added our Command. the of platform, we decision-making government In with U.S. applied we Tiberius of total April, In half vaccine initiatives. year, scenarios, government of million for the to HHS QX innovation real-world healthcare, outpace wins, to continue a Active business. Northcom driving of just announced doubling providing Air we Northern wheel increased Army, and we a surpassing our and which we're X net growth. data landscape. 's in signed the both We sales commercial grew end in the pandemic across production, $XXX we expanding across over and XX% our U.S. hires that the signed the pipeline opportunities XX% Dominance of and $XXX U.S. track the distribution, July, year, with XXX including where visibility deals Experiment alone, deal customers healthcare the in to scope the critical count ability is reach Command's our the software second Coast other July, the substantial into of These deals continue XX since quarter, the second in business, booked driving contract We AI the the million across

Palantir's our return partnership backbone with tasks, and conduct the continues ongoing in including In will the service. Foundry government business This to healthcare. critical safety defense thriving beyond our expand activities. software that to selected The Skywise. to through provide certification support XXX aerospace fleet's working deploy Palantir FAA Our FAA operational will QX, aircraft the to monitoring airlines with the with of deep continues and work MAX Airbus

new be our operational strategies data transform. We a ways a fool By as Foundry's months. brands to DataRobot and managing can development, leveraging forecasts huge amount software-defined workflows, model best-in-class urgency and that we have employ integration, ontology, disruptions of the well. a made channel continue to agile demand forecasting can partnerships minutes applications deployed all focused instead of develop and in and for In June, on these with in DataRobot with COVID of partnership customers old helping forecasting. announced created demand

We our Global build relationships continue to SI. with

taken has across units. working momentum Accenture scaling Accenture their intel, civilian. off. with markets this from defense, in work We're is Federal agencies and investing all across really Our of

matter. me off. One our next of The each is time, our note, earliest that As pounder yes, best our to innovation, week problems were we so our people empowers storied last one of back in problems offices. is a very Hack tradition culture and Hack who demonstrative to week of tell back to and to annual excited puts cultural define week man, every days. to lively our has very week and F the the the often a Hack them dating that hold that

structure nables around our exquisitely kept at colony. companies out best great out. interesting core past, thing past. (ph) Apollo. that Fellowship. started technologies the term that's that hard that that a an Long And the roadmaps. as alive us and weeks inspiration precursor or brave came volatility, the to flat. calcified organizing because Some Palantir, hierarchical header the the The of management the DocSys lies thing big perspiration. and come big and That aware for crushed ideas our of heresy We the polished just do not want out pack very the present provides and who most problems, customer's right hack thing profound by roadmap. that's weeks The marchitecture they ideas, they as is tech We And to our we're artist innovative customers. most keenly the big and and ideas, as of including I thing. celebrate I'm live reorganizing with and always ideas often Extraordinarily at note will by the our Hobbit, and of comfort and snuff ideas aren't on false gazing

Now, I'll to turn over to the talk financials. through it Dave

Dave Glazer

cash XX% margins QX of operating to our quarter second first raise and flow had first adjusted a flow with operating had We innovation followed and XX%, improvement investments as have to representing year-over-year the year as was Thanks, a our of increased of We deal QX free of second performance quarter XX%. margin third in cash cash a in and bringing full-year second-quarter the half revenue second the QX XX by accelerated XXX our XXX financial Shyam. to above straight flow for quarter. income half, and million. adjusted for first-half our margin visibility quarter review million, XXX the a reflected ongoing adjusted a by in revenue adjusted generated as year million guidance. We above the half increased and outlook. our for adjusted free the million for year-over-year. I'll strong We flow strong product record-breaking the half million growth bringing half continued free of the million, a free activity the performance in $XXX which first cash XXX first XX% generated distribution through our revenue

a year-over-year XX% customers for customer contract for to durable long-term in to We grew million, XX% while second-quarter net growth, sequential added total million. XXX bookings XXX% count. our the value new XXX year-over-year increased Second-quarter billings quarter-over-quarter growth increased visibility providing XX quarter,

quarter-over-quarter second-quarter count growth guidance into XX% Drilling revenue, XX%. of prior down our customer of revenue commercial ahead our grew Our XX% was sequentially.

strength see XX% in to year-over-year which grew our continue U.S. We business, QX. across

The business Coast Looking Force, international HHS, Air at government deals strength revenue as XX% year-over-year. our Army, driven well the XXX Guard, by segment, with was revenue revenue the by in U.S. as second-quarter of new government CDC, for million milestone government was customer.

continue a build yields of our in government to forward. drive our strong We pipeline within And opportunities growth sustained to expect we moving elevated government business segment. these

contract from deals QX, Second-quarter to million in deals a million. quarter to XX average commercial to at closed year-over-year in in The commercial revenue are quarter the In the revenue XX value. grew million growth XXX in value also X.X ended or duration year-over-year up and Total XX that deal XX% our a or seeing X.X X billion in continue XX% to including business economies remaining compared booked years, end as million were years QX. more. XXX international of XX% growth from year-over-year U.S. contract XXX% million growth in XX our deal value commercial XX% in year-over-year, year-over-year. strong second commercial We We the XXX% driving X.X the deals with to of where or more, accelerated of of quarter. of second up contract quarter, XX% total innovation first was We're while billion. accelerated value up X.X was with results growth business. Speed Xnd up the total the Particularly we closed abroad more QX. in reopen.

modestly revenue QX. XX% was down customer up Result yielded trailing the per quarter. from XX-month new million, X.X year-over-year, Second-quarter to of customers rapid net in that acquisition customer and XX

was of The with the excluding channel trailing on new per revenue QX. customers base. we driven As in the team XX cheaper, in and XX-month average innovative added I'll customer first-quarter and new, top-XX margins reflecting would When onboarding noted up X.X customer as our of D-zero our revenue discuss impact which compared million, broadening was Next by on year-over-year QX, customers accelerate, stock-based average partners, an and excludes X% be our expect revenue a XX% customer adjusted call, customer up expenses compensation. companies. basis, new for per We growth Sales to average million, additions

versus gross margin up versus the year-ago up points period. adjusted the XX% XXX XX%, was second-quarter contribution period. basis points was The margin The XXX year-ago basis

nearly and XX% million, in adjusted to the QX ongoing of the with funnels. stock-based flow compared year-over-year, to in hired XX% marketing from continue XXX million and brand quarter, we In of the in XXXX. clip up XXXX. and income exceeded related and and at doubled taxes XX both of cash business, Xnd to scaling strong in generated million year, development and the spends more were expenses margin long-term Adjusted continue cash performance our including XXX free Second-quarter recruiting the half support adjusted Marketing operations of flow, XXX durable as million, both up drive XX%. and reflects was build a representing the growth. first representing half margin free half we sales XXX employer payroll a that second QX excluding a across people sales of than in to expect product We compensation sales Xst the hiring

the strong and flow off to with million and strengthening plan cash ended profile, are today. balance continue our loan Given equivalents. a scale our businesses debt, facility, million leveraging rapidly position, cash and X.X We to the commitments partnering million those year. we Zero our in billion we invest XX product outstanding quarter and the to $XXX half approximately In paying help we to first innovation After term their in repaid while funded broadening as of software the cash With platforms. sheet debt-free. Day flow cash invest our XXX well distribution, both we and companies of as with committed them currently

million make future. from to the investment quarter, strategic expect which strategic our X% than quarterly X additional launched revenue and In in, this continue the less or companies the invested earlier year. investments part We of we as we second to of in have program

Turning to of margin our QX guidance, XXX expect of million the we XX% revenue the for we revenue adjusted and Operating for expect outlook quarter.

year-end momentum our strong will the we the of and earnings XXXX guidance XX% back in I'll the Karp call free of flow XXX turn an next are free raising than at guidance With greater the the call second guidance growth first-half with this open in Alex earnings continuing Rodney We're full-year year. regard cash four and Continuing half of providing to adjusted On supported over in cash performance guidance, of to our revenue Q&A. to long-term by call. strategy revenue for million. excess provide that, CEO the our to flow and continue adjusted year to to each execute years

Rodney Nelson

deepened operating We'll is [Unclear]. within with its of Ralston Dave. Shyam first base as over relationships questions network of Q&A our effects? customer share customers' Palantir Thanks enterprise begin to is submitted Palantir and for default these asks, flywheel their as time how becomes evolving creating How system the you, shareholders one it from are a increase lifecycles through say.

Shyam Sankar

aviation. power operating Foundry industry. of operating COVID be Zero companies system to it X And be ambitions collaboration. took Day months the to their to I'd be took and research operating years about operations, it's Thanks, say the took and their the years of to X the system X system of X system taking days give about to operating Ralston. about for special It It about

remains testament When managed nearly the And Airbus effects. ecosystem. sort that approach of the fundamental X% But the SkyWay. the Boeing launch that launched further year versus could underscores SkyWay you before recall and this unchanged. operating the competitive That vision are network Today, a Foundry the customers, powerful difference between enterprise is for and profound. a system block [unclear] and ecosystem Our system. end-to-end network Airbus's affects DIY to be and default faster our operating of Boeing they're It's LEGO faster, is industry. particularly Microsoft fleet a moving in and the

clinical has harmonized trials example, Another pharma one X,XXX Foundry. Company over in

is the industry. They their a superior entire that that transform vision The starting And Day beginning. collaborate is And clinical pharma is does companies to is is context, their trials the to that Zero first; analysis join. you R&D. ambition to category-defining. innovated a fundamental and To Foundry For to at compounding that system for participating, on And the need network you effects companies the their X,XXX you of leave what's be has Probably whole internal for about clinical are the their Company, ambition if disadvantage. us trial outcomes, deal. system and will you're if a where other from asset that distinct with going it's and starting big pooled often then operating from R&D clinical a take customer pharma X you? remain using This and superior to industries. insights relevant, game-changer. here that to first. considered believe operating drive are a R&D for are ecosystem And

Rodney Nelson

new the and customers the Avi quarter? Kevin, added last next the of Shyam. for with satisfied thanks, you are number asked, one in you. Great, is

Kevin Kawasaki

accelerating, you numbers the commercial are The strong. if space where count we XX% the Avi Thanks, our grew is especially year. of XX% Customer quarter-over-quarter at first customer look for half and the count up

Deal So year. double a of increase by than last our up. volume deals X end XX% XX commercial quarter. of more. closed customer is was That from on or million track also to base more We

million XXX% year-over-year. grew TCB to Second-quarter, XXX a

also grew. customers current Our

per X.X customers average out X.X If million grew revenue, new million you from net to to customer quarter-over-quarter.

are investments Our in largest our in million. customers, product top XX, These distribution. also driven results grew million from by and XX to XX efficiencies

just Shyam discussed. finish what reiterating by So I'll

to We to And Foundry companies sectors, are businesses we're software model. from across to now range small their SaaS build subscription companies, offerings. delivering to doing a through full using healthcare power this Foundry robotics, many a

Rodney Nelson

enhancing the you is your clever, believe [Unclear] effects. network buying Palantir next sticking with but pre-revenue The guys strategy talk into describe high-risk, one, on is Kevin, asks, revenue, you with can a 's Great vision high-reward long-term companies? I pipe it investments your

Kevin Kawasaki

our done. Thank opportunity us you. always we feel and that's to in This is for we've something invest huge a customers,

No with think Now, we've we for using long is relationships high-speed, execution. are where Further, balance that sheet. in the customer we're we companies is do quality win. that will working thing we our always can be One our them time. most with These going for think mentality. looked help our aligned. That to founder is very we product bureaucracy,

So that's for in something these mentality. that founder looking we're that deals,

less here. this came break a bit in that than I'll QX. program down of revenue So little Dave from already mentioned also the numbers X% our

the XXX duration million in as long-term of expect strong, QX, to totaling deal longer from rate the this And million the is is we recognition. so XXX of of This million. revenue QX outside also The at a grew strategic of a and Additionally, well, as XX%, of investments TCB long-term strategy. the is XXX program. quarter-over-quarter. portion sequential total time This TCB

in quarter. no other last program, words, So assumed from grows TCB XX% sequentially investment

million with CDC, very signed Air the Bass And Force, Forces. great a Special government last vaccine Tiberius, expansion know distribution, used tract expanded FAA, John with Grid, pleased Army, as [unclear], Deere, administration. So production, that. by we we but U.S. [unclear] And to probably Coast and U.S. least, Avi, we not you did lot which Guard, $XXX National institutions HHS, now, Pro, U.S. with of

Rodney Nelson

GAAP, thanks, the Kevin. at does when you to Great, Palantir Dave, expect to Linda EPS? asks, one. report coming positive next

Dave Glazer

our do very adjusted institutions generate revenue, ability at a numbers, to that growth which results, high flow on our free and can delivering few we from we lot. of Revenue revenue cash guidance cash our our We're Linda. adjusted cash million free by margin. of this cash by full-year that with flow. flow an the flow strong is million. raised adjusted measured scale. did XX% to year, focus with And excess In cash XX% XXX XXX Thanks, from June and XXX% the growth, a outlook half first of free prior we

Rodney Nelson

to Great. business threats to fast are asks, possible back Thank,. coming some what Mohamad growing? Dave. And Palantir? is Shyam, the how competitive you,

Shyam Sankar

Mohamad. Thanks,

operating revenue for adjusted XX% margin, So cash we XX%, free we the grew flow a and Xst XX% generated half, income. adjusted

the count sequentially, year. up customer commercial Our beginning grew it's the since of XX% XX%

revenue accelerating. commercial is grew XX% commercial revenue Our international The U.S. year-over-year.

to you And envision you things COVID, our only frontlines healthcare growth is And work of growing. all of there vaccination supply clearly And are the do problems Zero less is that's in over on on clinical what to or Foundry thing is want Day than project, tackling the of -- of the sought PTS I'm of And with most them. commercial companies, constrained is and our they months to planning around accomplish and working Our for of Airbus's the of programs ambition a that timelines, in you lack see X companies. Day by the excited see with or with the they of chain. These with about the what that all and aggressive with R&D these enormous companies top is are years. most the on no These terms customers. Foundry. transformation X Zero

they spend my impression either them distinct you about so alternatives and is think on they what in their build pretty were. should shoes. that But I the and threats of more lot scratch something see talk what rep. they to money And think And their easy top from a and a competitive that's decision building the more on bespoke Foundry time or lot

cowardice threat And So and and put customers every competitive laziness. the it's efficient, time. brave where win is we simply the

Rodney Nelson

you does. model, Company it software platforms? awareness 's Great, its Shyam, what for Are another nominee may one of which understand increase various the lead Palantir plans there for to Palantir to presence, to the increase of asks, seems PR increase its Jason business utilization analysts

Shyam Sankar

who the factory to the on Jason, rescued, supply I servant can't vaccines give to users It's folks, people extreme escalating Karp at to deliver workers assembly lines Food do civil to know do. to from excluding it's crisp with election. Program or cost the chain to not chase World who on global with why and The talk about R&D be to seem people I work tirelessly from Micron's you don't what and the decided government, are on It's some in operators, time you Nigeria know communicating down the French though. can who we eve in they the U.S. besides special the U.K. Thanks, of raise we're up. them. we really and understand by it's the tell who COVID, beliefs the for rents -- able him the edge, these the as be at clear Germans bombers suicide among hunger, operators perhaps tackling impact and to hostages COVID, poverty and the clinical [unclear] Detroit and the tell

Rodney Nelson

recently? Shyam. there one insider of Dave, a for increase Thanks, Great. been has asks, selling Benjamin significant why you.

Dave Glazer

Benjamin. Thanks,

sales that each a from a times month to referring earlier Harbors seen month, the You're scheduled few this year. started you

QX, I options mentioned doesn't short, ago a will he granted then, options if quarter the he on all the number in at expired the of last As XX year. end the of before shares. exercise years large lose In this December that in Harbors call

in remaining using exercise far XX half. half roughly hold the exercised those funds selling options, to shares, XXXX, Harbors and of So and the million the

year of a the of So by XXX million [Indiscernible] owe of a these millions dollars end more perspective, group of this part as hundreds income will the as taxes likely and year. transactions, couple

For that options at he's set December, XX half hold [Indiscernible] upon half. to end use million the scheduled and of the exercise sell are and of expire to them, other roughly

Rodney Nelson

or to once years confidence alpha time? said, Shyam Great, trends asks, rate. management as back management delivering value of [Indiscernible] indicator micro that Ralston are macro What be Dave. can and at to thanks, lagging you, give macro numbers coming shareholders' improving over forward-looking several GAAP leveraged Karp trends

Shyam Sankar

changed going Healthcare great be the been Thanks fall. The was Error accuracy manage and because We the it forecast. the delayed to going the them now had Its never anticipated same. for the old is will Street it's analysts going be to well chain If tell in just is did I error on built coming. not we mortality same, going again. or COVID Look, that We error all the happen but XX-month morbidity We The not to the at. know months fixated isn't deferred of are at backlog signal, a in. I saw continue future Dumpty to I the new vaccine, be impact Wall the on through world world over the back. I win. you Humpty never software will supply been needs, world has and about that and isn't just we a investor the forecast. is from industry laughed is in away, working to your every transformed. X this shortages. will the and this, in was world the has be today's told about over I an Austin. is have The laughed [Indiscernible] and the about and opportunity about diagnosis. how world, Energy ago,

the reality of inefficiency Our will were huge It and by the decade, has over shock angry was my is investing Years a IT more was needed rose disappointed customers, market, norm. they frequent. their few It's be enormous fragility. It's how one-off. in frankly [Indiscernible]. that ugly. it of new last resulted a investments isn't The mindless

We the resilient system for the operating are champion. future

Rodney Nelson

great Palantir Steve it before you will continue and open to asks, Great we for talent? Shyam. up. how attract One keep more

Shyam Sankar

a by you and culture. our It Thanks, culture to experienced. Management such and our fueled something question I is I core unique Steve. every my culture about can't that Well, tell this -- really is heart. be the mission. explain I culture. emanates It's can that's mean, And dear we have has from think of it to near a institution.

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Rodney Nelson

Great Shyam for Operator, up thanks we'll call open the Q&A

Operator

is question Brent Thill Jefferies. first with your And Instruction] [Operator from

Brent Thill

sales the was of of year? for thanks what's from everyone. in shape morning, of the the driving Good the half direct to you the bringing to little you Can for terms partnership about business quarter-on-quarter. more could if to just just give talk back more Thank do the a color Palantir caller. you. this build-outs, a this? commercial and us IBM of curious The think maybe And you I'm drivers how little impressive in drill

Shyam Sankar

there. Brent. I'll Absolutely. start Thanks,

area. direct effects force the in You're the sales of seeing our investment

getting We are coverage first of year hired really folks happy the so in account or lot about the They're we the here. more here. ramping a We're XXX half well.

really strength the logos course, in Some we're sector FD big Grid, new with And the not FAA. commercial that Deer. of Edison, National in quarter, seeing also, just, Avis, as sector, the the but well with in like government wins exceptional

from -- about as the the we year of should channel's that direct contributing. sales hold starting XX% here. Of force channel. the to of really, take course, happy ad the more they're so, gain really We're impact see to But expect And about is

Operator

Wolfe. Zukin is with question Alex next from Your

Alex Zukin

maybe from some that's thanks are partnerships. coming strategic of of strategic expect of partnerships. talk that What striking these you XX% that duration pretty TCB was evolve? first, That contracts? the Hey guys, metric your the you for these of was it to TCB a was percentage around the my the do from just Shyam revisiting question. guess I can about taking How question

for strategy a there? get the to want what understanding So of better Company the just overall is

Shyam Sankar

Sure. Yep.

of So QX. broke we less X% here, revenue little this a the down in and program mentioned Dave the bit numbers came than

of your very the the from long-term TCB long-term strategy XXX I XXX are the Is in Additionally, have deals well. million QX, total questions program. as

quarter-over-quarter. little from And of this So Talked recognition. million. about XX%, to is GP a TCB without outside more This on program, XX% portion strong, vision and also the totaling I investments (ph) a then bit, sequentially. grew to In some rate expect other think the bit sequential we time gross long-term a on of revenue is very investment the strategic words, but industries space. there and we're at little We've electric longer has reiterate, the just vehicles, duration this, have the XXX Foundry, of and in here. the we're the one. file looking software the and Dr. enterprise. worldwide create transform for Foundry future but cell-based new satellite, discussed in modern ambition the press people building to who to therapeutics, talked delivery, about we're operating computing, medical companies a intelligence Karp quantum And how delivering system for healthcare bringing

Shyam Sankar

Foundry technology help forward. their will investment many companies own. have follow. their to vision this. drive we think more. strategic a they're cutting-edge program our And of And lot These And accelerates choosing that And are

Operator

next is Your with Weiss from Morgan question Keith Stanley.

Keith Weiss

have increase to customer how that's accelerating When adopting been what's I been question. that? us we Can guys, us a related. came of the those give then, to customers And know guys about program? lot can doing how more the new new a adoption? you, strategic of how from Thank have XX about commercial sense two you for progressing think of following Has that Alex's. platform. work modularity overall on customers, part of you and of Maybe question, taking one many been the partnership the been you second the questions, product talk

Shyam Sankar

Bank, strategic see the modularity -- I with, example about compliance anti-money that the of product in Absolutely. that. some Thanks, earlier shared And believe workflows expansion the can broadly, everything alternatives that I X months, integration,the evolution program. laundering XX, X continuing X of videos integrating But a from there. investment in on, the taken which workflows, AI. We number the invest to I us on years date X have talked systems Very the that. the we're the are ago. from the the to absolutely some I production, of year to and Keith. being are accelerating with the It's there. would archetypes with we the deploy of And hope about in we discussed came EU able Edge [Indiscernable] excited I more think days, making

So our enabling instead a and time-to-market absolutely all AML answer, spent have bank is buy customer our foundries to growth. say just the of the helping of us accelerate

Operator

with from last Mark comes Morningstar. Cash question Your

Mark Cash

Thanks for guidance should to operating And we range last XX% next operating expect you high, that on in but When years? XX% over in the ramp taking the the coming provide margin with particular details expected margin, some as X as the for question. are the about guidance quarter, third then you quarters up. for low-to-mid thinking items Growth line of the artificially and could ramp

Dave Glazer

you're Mark. Last Thanks, quarters's last thanks out pointing this for three-quarters quarter, And strategic. three about And XX%. XX%. of

the in This investing we're think that while quarter, business. doing And XX%. above we are I

hire building that out Xst look really of into other We're into QX. business. XXX of back to do product really speak year, on We're this QX Shyam going continue you development aggressively salespeople. them, off going at continue talked here marketing the well We're coming we're lot operations almost year. of if how pace and we half so, to into And there, the cross the structure doubled to the throughout to added in year that in going to spend, up anything about keep the going building beyond. around the

think to invest, as really the excited we we're so, see next year, And we about about the continuing about and time.

Operator

today's conference concludes call. Ladies participating. and gentlemen, this for you Thank

now may disconnect. You

Palantir (PLTR) 12 Aug 212021 Q2 Earnings call transcript