Palantir Technologies (PLTR) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue grew 30% year-over-year to $726 million, with U.S. revenue up 44% and U.S. commercial revenue up 54% year-over-year, driven by strong AI adoption and rapid customer expansion.

• U.S. government revenue accelerated 40% year-over-year to $320 million, marking the strongest growth in 15 quarters, with significant contributions from DoD contracts and AI deployments.

• GAAP net income reached $144 million (20% margin), and GAAP EPS doubled year-over-year to $0.06.

• Customer count increased 39% year-over-year to 629, with 104 deals over $1 million closed in Q3.

• Achieved S&P 500 inclusion and expanded key partnerships, including a $100 million U.S. military contract and collaboration with the Ukrainian government.

Financial highlights

• Q3 revenue reached $726 million, up 30% year-over-year and 7% sequentially; adjusted operating margin expanded to 38%.

• Adjusted gross margin was 82%; GAAP operating income was $113 million (16% margin); adjusted income from operations was $276 million.

• Adjusted EPS was $0.10, up 43% year-over-year; GAAP EPS was $0.06.

• Cash from operations was $420 million; adjusted free cash flow was $435 million (60% margin); cash, cash equivalents, and short-term U.S. Treasury securities totaled $4.6 billion.

• Rule of 40 score rose to 68%.

Outlook and guidance

• Q4 2024 revenue expected between $767–$771 million; adjusted income from operations between $298–$302 million.

• Full-year 2024 revenue guidance raised to $2.805–$2.809 billion; U.S. commercial revenue guidance raised to over $687 million (at least 50% growth).

• Adjusted income from operations guidance raised to $1.054–$1.058 billion; adjusted free cash flow guidance raised to over $1 billion.

• GAAP operating income and net income projected for every quarter in 2024.

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