Palantir Technologies (PLTR) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 27% year-over-year and 7% sequentially to $678 million, driven by strong U.S. commercial (up 55%) and government (up 24%) segments, with customer count up 83% year-over-year.

• Achieved GAAP net income of $134 million (20% margin) and GAAP EPS of $0.06, up 500% year-over-year, with adjusted income from operations at $254 million (37% margin).

• Closed 27 deals over $10 million and 96 deals of at least $1 million, reflecting strong commercial momentum and major government contracts.

• U.S. commercial customer count increased 83% year-over-year, with total commercial customer count up 41% year-over-year.

• Focused on moving customers from AI prototyping to production, leveraging unique technology investments and deepening customer relationships.

Financial highlights

• Q2 revenue reached $678 million, up 27% year-over-year and 7% sequentially; adjusted operating margin was 37%, and adjusted gross margin was 83%.

• GAAP net income was $134 million (20% margin); GAAP operating income was $105 million (16% margin); adjusted EPS was $0.09, up 80% year-over-year.

• Cash from operations was $144 million; adjusted free cash flow was $149 million (22% margin); ended Q2 with $4.0 billion in cash and equivalents and no debt.

• Net dollar retention improved to 114% in Q2 2024.

• Rule of 40 score reached 64% in Q2 2024.

Outlook and guidance

• Q3 2024 revenue expected between $697–$701 million; adjusted income from operations between $233–$237 million.

• Full-year 2024 revenue guidance raised to $2.742–$2.750 billion, with U.S. commercial revenue expected to exceed $672 million (at least 47% growth).

• Adjusted income from operations guidance raised to $966–$974 million; adjusted free cash flow expected between $800 million and $1 billion.

• Continued expectation of GAAP profitability and operating income each quarter.

• Management expects continued revenue growth from both government and commercial sectors, with U.S. customers as a key driver.