Summary
Palantir ended FY2024 Q4 with revenue of $827.5 million, up 36% from the prior-year quarter. Full-year revenue reached $2.87 billion, up 28.8% from FY2023. The quarter's operating highlights leaned on large customer deals and U.S. commercial momentum. The company closed 129 deals of at least $1 million, 58 deals of at least $5 million, and 32 deals of at least $10 million. U.S. commercial total contract value was $803 million, up 134% year over year and 170% quarter over quarter. U.S. commercial remaining deal value was $1.79 billion, up 99% year over year and 47% quarter over quarter. Customer count grew 43% year over year and 13% quarter over quarter.
Profitability was mixed. Gross profit was $653.0 million in Q4, up 30.7%, but gross margin fell to 78.9%, down 3.2 percentage points from the prior-year quarter. Operating income was $11.0 million, down 83.2%, and operating margin was 1.3%, down 9.5 percentage points. The press release attributes the operating income decline to one-time market-vesting stock appreciation rights expenses. For the full year, operating income was $310.4 million, up 158.7%, and operating margin was 10.8%, up 5.4 percentage points. Net income was $79.0 million in Q4, down 15.4%, while full-year net income was $462.2 million, up 120.3%. Full-year diluted EPS was $0.19, up 111.1% year over year.
Cash generation and backlog improved. Q4 operating cash flow was $460.3 million, up 52.8%, and full-year operating cash flow was $1.15 billion, up 62.0%. Capital expenditures were $3.1 million in Q4, down 36.1%, and $12.6 million for the full year, down 16.4%. Adjusted free cash flow was $517 million in Q4, a 63% margin, and $1.25 billion for the full year, a 44% margin. Deferred revenue was $566.4 million, up 16.5% from the prior-year quarter. Remaining performance obligations were $1.70 billion, up 41.7%. Total remaining deal value was $5.4 billion, up 40% from December 31, 2023.
Guidance points to another year of growth. For Q1 2025, management guided revenue of $858 million to $862 million and adjusted income from operations of $354 million to $358 million. For full-year 2025, management guided revenue of $3.741 billion to $3.757 billion, U.S. commercial revenue growth of at least 54%, adjusted income from operations of $1.551 billion to $1.567 billion, and adjusted free cash flow of $1.5 billion to $1.7 billion. Management also said it expects GAAP operating income and net income in each quarter of 2025.
The risks remain familiar. Government budgets and spending priorities can shift, and many contracts carry termination for convenience provisions. Palantir also faces a long and unpredictable sales cycle, macroeconomic and geopolitical uncertainty, foreign currency moves, and potential issues around artificial intelligence, data breaches, or access to customer data. Those factors matter because the company's backlog metrics, while growing, still depend on customers exercising contract options and not terminating early.
Forecast
Reported figures
GAAP, from SEC filings| Metric | Q4 FY2024 | Q3 FY2024 | QoQ | Q4 FY2023 | YoY |
|---|---|---|---|---|---|
| Revenue | $827.5M | $725.5M | +14.1% | $608.4M | +36.0% |
| Gross profit | $653.0M | $578.9M | +12.8% | $499.7M | +30.7% |
| Gross margin | 78.9% | 79.8% | -0.9 pp | 82.1% | -3.2 pp |
| Research & development | $171.5M | $117.6M | +45.9% | $109.3M | +56.9% |
| Sales & marketing | $288.3M | $209.5M | +37.6% | $197.4M | +46.1% |
| General & administrative | $182.1M | $138.7M | +31.3% | $127.3M | +43.1% |
| Total operating expenses | $641.9M | $465.7M | +37.8% | $433.9M | +47.9% |
| Operating income (loss) | $11.0M | $113.1M | -90.2% | $65.8M | -83.2% |
| Operating margin | 1.3% | 15.6% | -14.3 pp | 10.8% | -9.5 pp |
| Net income (loss) | $79.0M | $143.5M | -45.0% | $93.4M | -15.4% |
| Net margin | 9.6% | 19.8% | -10.2 pp | 15.3% | -5.8 pp |
| Diluted EPS | $0.03 | $0.06 | -$0.03 | $0.04 | -$0.01 |
Risks
The company may not maintain profitability and anticipates operating expenses will continue to increase. In FY2024 Q4, operating income was $11.0 million, down 83.2% from $65.8 million in FY2023 Q4, and operating margin fell to 1.3% from 10.8%, even as Q4 revenue rose 36.0% to $827.5 million.
Stock-based compensation expense increased 45% to $691.6 million for FY2024, including $115.8 million of accelerated expense for Market-Vesting SARs. This expense contributes to margin pressure, with FY2024 Q4 gross margin down 3.2 pp to 78.9% and Q4 operating margin down 9.5 pp.
The top three customers together accounted for 17% of revenue for the year ended December 31, 2024 and 18% for 2023. If large customers reduce spend, terminate contracts, or do not renew, revenue could decline and results of operations would be adversely impacted.
A significant portion of revenue comes from government customers, including 55% of FY2024 revenue. Risks include budget declines, changes in spending priorities, delays in contract awards, continuing resolutions, and the U.S. federal government being prohibited from exercising contract options more than one year in advance.
The company and its peers are investing more significantly in AI, and competitors may adopt and implement AI more successfully or at a quicker pace. Failure to successfully develop and deploy AI offerings such as AIP could harm market acceptance and revenue growth.
The company may not sustain revenue growth, and its revenue growth rate has declined in certain recent periods and may continue to decline. FY2024 revenue rose 28.8% to $2.87 billion and Q4 revenue rose 36.0% to $827.5 million, but the filing warns against relying on prior periods as an indication of future performance.
Sales efforts involve considerable time and expense, and the sales cycle is often long and unpredictable, frequently lasting six to nine months and sometimes a year or more. The company typically closes a large portion of sales in the last several weeks of a quarter, which affects planning and cash flows.
Total remaining deal value was $5.4 billion as of December 31, 2024, but many contracts are subject to termination for convenience and the company historically has not realized all revenue from full deal value. IDIQ government contracts totaling $3.7 billion are excluded because funding has not been determined or guaranteed.
The company is highly dependent on Alexander Karp, CEO, and on hiring, retaining, training, and motivating qualified personnel, especially engineering talent in competitive U.S. markets. Headcount grew to 3,936 full-time employees as of December 31, 2024, increasing management and retention challenges.
The multi-class structure, Founder Voting Trust Agreement, and Founder Voting Agreement concentrate voting power with the Founders. The Founders can dispose of shares and diminish their economic interest without diminishing voting power so long as they collectively hold 100,000,000 Corporation Equity Securities on the applicable record date.
Adverse economic conditions or reduced technology spending may cause customers to defer, reduce, or forego purchases, leading to longer sales cycles, delayed payments, lower prices, or contract terminations. Some early-stage Investee customers filed for bankruptcy or terminated contracts, and the company may not realize the full value of those commercial contracts.
The markets for the company's platforms are very competitive, and competitors include large enterprise software companies, government contractors, and system integrators with greater resources, broader product lines, and larger sales budgets. Increased competition could result in fewer orders, price reductions, reduced margins, and loss of market share.
Seasonality may cause fluctuations in results of operations and financial position, with the first quarter generally having relatively lower sales and substantial increases in the third and fourth quarters. U.S. government customers' September 30 fiscal year end and commercial customers' December 31 fiscal year end can affect procurement timing.
SaaS KPIs
All quarters →Adjusted Operating Margin
Adjusted Free Cash Flow Margin
Adjusted free cash flow
Adjusted income from operations
Total Customers
Rule of 40
Deals of at least $1 million
Deals of at least $10 million
Deals of at least $5 million
Customer count growth
Total remaining deal value
U.S. Commercial Remaining Deal Value (RDV)
Commercial remaining deal value
U.S. Commercial Total Contract Value (TCV)
Government remaining deal value
Summary, forecast, risks and KPIs are extracted from Palantir Technologies Inc.'s SEC filings for Q4 FY2024 (10-Q / 10-K and the 8-K earnings release); GAAP figures in the summary are checked against the reported XBRL data. They can contain errors; the filings are authoritative. Processed Oct 2, 2026.