PLTR Q2 2021 Earnings

Call Details

• Call Title: Palantir Q2 2021 Earnings Call
• Date: August 12, 2021 at 12:00 PM UTC
• Management Team:
  • Alex Karp (Chief Executive Officer)
  • Shyam Sankar (Chief Technology Officer / Chief Operating Officer)
  • Dave Glazer (Chief Financial Officer)
  • Kevin Kawasaki (Global Head of Business Development)
  • Sean Parker (Head of Investor Relations)

Call Summary

Financial Performance

• Second quarter revenue was $376M, representing year-over-year growth of 49%.
• First-half revenue was $717M, with first-half adjusted free cash flow above $200M and a 28% adjusted free cash flow margin for the first half.
• Q2 adjusted operating income was $117M, representing a 31% adjusted operating margin for the quarter.
• Q2 adjusted gross margin was 82%, which was up 200 basis points versus the year-ago period.
• Q2 contribution margin was 58%, which was up 300 basis points versus the year-ago period.
• Second quarter billings were $379M, which grew 40% year-over-year.
• Trailing 12-month revenue per customer was $7.9M, up 19% year-over-year, and trailing 12-month revenue per top 20 customers was $39M, up 36% year-over-year.
• Average contract duration was 3.9 years, up from 3.7 years at the end of Q1.

Guidance

• Third quarter revenue was guided to $385M for Q3 2021.
• Third quarter adjusted operating margin was guided to 22% for Q3 2021.
• Full-year adjusted free cash flow guidance was raised to an excess of $300M from the prior guide of $150M.
• Company reiterated guidance of greater than 30% revenue growth for this year and the next four years at each earnings call.
• The company explicitly differentiated adjusted (non-GAAP) metrics from GAAP and referenced reconciliations in the press release.
• No timeline was provided for achieving positive GAAP EPS on the call.