Palantir Technologies Inc.

AI Products

• Maven Smart System

  • Enhances targeting capabilities, reducing a 2,000-person cell to approximately 20.
  • Recently signed a five-year contract to expand AI/ML capabilities across U.S. military services: Army, Air Force, Space Force, Navy, and U.S. Marine Corps.

• AI Platform (AIP)

  • Focuses on deploying AI models in production.
  • Built upon a decade-long investment in infrastructure and ontology.
  • Facilitates enterprise autonomy and workflow automation.

• JADC2 SDK

  • Provides tools and documentation for government and third-party developers.
  • Supports the building of applications on the Palantir Defense SDK.

• Developer Platform

  • Supports the creation and implementation of AI applications at scale.
  • Includes enhanced OSDK, ergonomic compute modules, and a multimodal data plane.

AI Adoption

Military and Government

• U.S. Government Contracts
  • Revenue Growth: 40% YoY, 15% sequentially.
  • Key Projects:
    • 18th Airborne Corps: Implemented Maven Smart System.
    • CJADC2 (Combined Joint All Domain Command & Control): Continues to meet operational demands.
    • Titan: Next-generation Targeting Node.
  • Strategic Partnerships:
    • Expanded Maven Smart System across all U.S. military branches.
    • Collaborations with L3Harris and other major defense contractors.

Commercial Sector

• Insurance Underwriting Automation

  • Reduced processing time from two weeks to three hours using 78 AI agents.
  • Provides competitive advantage by accelerating contract binding.

• Customer Growth

  • U.S. Commercial Revenue Growth: 54% YoY, 13% sequential.
  • Notable Deals:
    • American equipment rental company: Increased ARR 12-fold.
    • Specialty pharmaceutical company and agricultural software provider: Signed seven-figure ACV deals within two months of boot camp.

• Overall Commercial Metrics

  Segment	Q3 Growth YoY	Q3 Growth Sequential
  U.S. Commercial	54%	13%
  International	3%	-7%

Future Growth Opportunities

• Expansion in AI Capabilities

  • Continuous investment in AI/ML infrastructure.
  • Focus on transitioning from AI prototypes to production deployments.

• Global Market Expansion

  • Targeted growth in Asia and the Middle East.
  • Building on strategic partnerships and multi-year renewals with international clients like BP.

• Enterprise Autonomy

  • Automating end-to-end processes to liberate capital for reinvestment.
  • Enhancing operational efficiencies across various industries including healthcare, supply chain, and manufacturing.

• Strategic Commercial Contracts

  • Increasing Total Contract Value (TCV) with 52% YoY and 62% sequential growth.
  • Projected Continuation of Strong Growth in U.S. Commercial segment.

• Financial Projections and Investments

  • Full Year 2024 Revenue Guidance: $2.807 billion (26% YoY growth).
  • Adjusted Operating Margin: 38%.
  • Adjusted Free Cash Flow: $1 billion+ for full year 2024.
  • Ongoing investments in technical talent and product development to sustain growth amidst macroeconomic challenges.

Key Metrics Summary

Insights

• Strong AI Integration: Palantir's AI products like Maven Smart System and AIP are deeply integrated into both military and commercial sectors, demonstrating significant operational efficiencies and rapid adoption rates.

• Robust Growth Metrics: High year-over-year and sequential growth rates in U.S. Commercial and Government segments indicate strong market demand and effective deployment strategies.

• Future Potential: Continued investments in AI technology, global market expansion, and strategic partnerships position Palantir for sustained growth and market leadership in the AI-driven economy.

• Financial Health: Increasing revenue guidance, expanding margins, and strong free cash flow signal robust financial health, enabling further investments in AI and global expansion despite macroeconomic challenges.