What changed in this filing

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Item 1. Financial Statements

2024-05-07 compared with 2023-11-03 · 224 added, 240 removed, 408 unchanged (53% of the section changed)

3 unchanged sentences

(in thousands, except per share amounts)

As of September 30, As of December 31,

As of March 31, 2024 As of December 31, 2023

Current assets:

8 unchanged sentences

Total assets $ 4,807,079 $ 4,522,425

Liabilities and Stockholders' Equity

Liabilities and Equity

Current liabilities:

13 unchanged sentences

Common stock, $ 0.001 par value:

20,000,000 Class A shares authorized as of September 30, 2023 and December 31, 2022;

2,068,689 and 1,995,414 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively;

2,700,000 Class B shares authorized as of September 30, 2023 and December 31, 2022;

105,547 and 102,656 shares issued and outstanding as of September 30, 2023 and December 31, 2022, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of September 30, 2023 and December 31, 2022

20,000,000 Class A shares authorized as of March 31, 2024 and December 31, 2023;

2,130,393 and 2,096,982 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively;

2,700,000 Class B shares authorized as of March 31, 2024 and December 31, 2023;

95,565 and 102,141 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively;

and 1,005 Class F shares authorized, issued, and outstanding as of March 31, 2024 and December 31, 2023

Additional paid-in capital 9,322,803 9,122,173

Accumulated other comprehensive loss, net ( 7,205 ) ( 5,333 )

Accumulated other comprehensive income (loss), net ( 5,720 ) 801

Accumulated deficit ( 5,544,083 ) ( 5,649,613 )

7 unchanged sentences

(in thousands, except per share amounts)

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Revenue $ 634,338 $ 525,186

6 unchanged sentences

Total operating expenses 437,201 413,426

Income (loss) from operations 39,983 ( 62,191 ) 54,172 ( 143,375 )

Income from operations 80,881 4,115

Interest income 43,352 20,853

Interest expense ( 742 ) ( 1,082 ) ( 3,334 ) ( 2,346 )

Other income (expense), net ( 13,507 ) ( 4,136 )

Income (loss) before provision for income taxes 79,969 ( 122,779 ) 130,844 ( 398,876 )

Income before provision for income taxes 110,726 20,832

Provision for income taxes 4,655 1,681

Net income (loss) 73,439 ( 123,875 ) 120,462 ( 404,583 )

Net income 106,071 19,151

Net income attributable to noncontrolling interests 541 2,349

Net income (loss) attributable to common stockholders $ 71,505 $ ( 123,875 ) $ 116,434 $ ( 404,583 )

Net earnings (loss) per share attributable to common stockholders, basic $ 0.03 $ ( 0.06 ) $ 0.05 $ ( 0.20 )

Net earnings (loss) per share attributable to common stockholders, diluted $ 0.03 $ ( 0.06 ) $ 0.05 $ ( 0.20 )

Weighted-average shares of common stock outstanding used in computing net earnings (loss) per share attributable to common stockholders, basic

2,162,530 2,073,265 2,134,045 2,054,926

Weighted-average shares of common stock outstanding used in computing net earnings (loss) per share attributable to common stockholders, diluted

2,325,600 2,073,265 2,281,347 2,054,926

Net income attributable to common stockholders $ 105,530 $ 16,802

Net earnings per share attributable to common stockholders, basic $ 0.05 $ 0.01

Net earnings per share attributable to common stockholders, diluted $ 0.04 $ 0.01

Weighted-average shares of common stock outstanding used in computing net earnings per share attributable to common stockholders, basic 2,213,545 2,107,780

Weighted-average shares of common stock outstanding used in computing net earnings per share attributable to common stockholders, diluted 2,400,107 2,217,439

The accompanying notes are an integral part of these condensed consolidated financial statements.

Palantir Technologies Inc.

Condensed Consolidated Statements of Comprehensive Income (Loss)

Condensed Consolidated Statements of Comprehensive Income

(in thousands)

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Net income (loss) $ 73,439 $ ( 123,875 ) $ 120,462 $ ( 404,583 )

Three Months Ended March 31,

Net income $ 106,071 $ 19,151

Other comprehensive income (loss)

1 unchanged sentence

Net unrealized gain (loss) on available-for-sale securities ( 4,622 ) 285

Comprehensive income (loss) 71,443 ( 127,036 ) 118,590 ( 412,069 )

Comprehensive income 99,550 20,451

Comprehensive income attributable to noncontrolling interests 541 2,349

Comprehensive income (loss) attributable to common stockholders $ 69,509 $ ( 127,036 ) $ 114,562 $ ( 412,069 )

Comprehensive income attributable to common stockholders $ 99,009 $ 18,102

The accompanying notes are an integral part of these condensed consolidated financial statements.

Palantir Technologies Inc.

Condensed Consolidated Statements of Stockholders’ Equity

Condensed Consolidated Statements of Equity

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Income, Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

Shares Amount

Balance as of June 30, 2023 2,149,980 $ 2,149 $ 8,773,043 $ ( 5,209 ) $ ( 5,814,509 ) $ 2,955,474 $ 79,664 $ 3,035,138

Balance as of December 31, 2023 2,200,128 $ 2,200 $ 9,122,173 $ 801 $ ( 5,649,613 ) $ 3,475,561 $ 85,404 $ 3,560,965

Issuance of common stock from the exercise of stock options 17,482 17 83,823 — — 83,840 — 83,840

Issuance of common stock upon vesting of restricted stock units (“RSUs”) 14,372 14 ( 14 ) — — — — —

Issuance of common stock upon release of restricted stock units (“RSUs”) and performance-based RSUs (“P-RSUs”) 9,721 10 ( 10 ) — — — — —

Stock-based compensation — — 125,817 — — 125,817 — 125,817

Other comprehensive loss — — — ( 1,996 ) — ( 1,996 ) — ( 1,996 )

Other, net — — — — — — 284 284

Repurchases of common stock ( 368 ) — ( 9,000 ) — — ( 9,000 ) — ( 9,000 )

Other comprehensive income — — — ( 6,521 ) — ( 6,521 ) — ( 6,521 )

Net income — — — — 105,530 105,530 541 106,071

Balance as of September 30, 2023 2,175,241 $ 2,174 $ 8,938,050 $ ( 7,205 ) $ ( 5,743,004 ) $ 3,190,015 $ 81,882 $ 3,271,897

Balance as of March 31, 2024 2,226,963 $ 2,227 $ 9,322,803 $ ( 5,720 ) $ ( 5,544,083 ) $ 3,775,227 $ 85,945 $ 3,861,172

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss, Net Accumulated Deficit Total Stockholders’ Equity Noncontrolling Interests Total Equity

5 unchanged sentences

Other comprehensive loss — — — 1,015 — 1,015 — 1,015

Other, net — — — — — — 743 743

Net income — — — — 16,802 16,802 2,349 19,151

Balance as of September 30, 2023 2,175,241 $ 2,174 $ 8,938,050 $ ( 7,205 ) $ ( 5,743,004 ) $ 3,190,015 $ 81,882 $ 3,271,897

Palantir Technologies Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(in thousands)

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of June 30, 2022 2,062,741 $ 2,063 $ 8,119,876 $ ( 6,674 ) $ ( 5,766,441 ) $ 2,348,824

Issuance of common stock from the exercise of stock options 4,907 5 24,562 — — 24,567

Issuance of common stock upon vesting of RSUs 12,016 12 ( 12 ) — — —

Stock-based compensation — — 140,260 — — 140,260

Other comprehensive loss — — — ( 3,161 ) — ( 3,161 )

Net loss — — — — ( 123,875 ) ( 123,875 )

Balance as of September 30, 2022 2,079,664 $ 2,080 $ 8,284,686 $ ( 9,835 ) $ ( 5,890,316 ) $ 2,386,615

Common Stock Additional Paid-in Capital Accumulated Other Comprehensive Loss Accumulated Deficit Total Stockholders’ Equity

Shares Amount

Balance as of December 31, 2021 2,027,474 $ 2,027 $ 7,777,085 $ ( 2,349 ) $ ( 5,485,733 ) $ 2,291,030

Issuance of common stock from the exercise of stock options 16,341 17 72,091 — — 72,108

Issuance of common stock upon vesting of RSUs 35,849 36 ( 36 ) — — —

Stock-based compensation — — 435,546 — — 435,546

Other comprehensive loss — — — ( 7,486 ) — ( 7,486 )

Net loss — — — — ( 404,583 ) ( 404,583 )

Balance as of September 30, 2022 2,079,664 $ 2,080 $ 8,284,686 $ ( 9,835 ) $ ( 5,890,316 ) $ 2,386,615

Balance as of March 31, 2023 2,117,730 $ 2,117 $ 8,568,570 $ ( 4,318 ) $ ( 5,842,636 ) $ 2,723,733 $ 79,460 $ 2,803,193

The accompanying notes are an integral part of these condensed consolidated financial statements.

2 unchanged sentences

(in thousands)

Nine Months Ended September 30,

Three Months Ended March 31,

Operating activities

Net income (loss) $ 120,462 $ ( 404,583 )

Adjustments to reconcile net income (loss) to net cash provided by operating activities:

Net income $ 106,071 $ 19,151

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 8,438 8,320

23 unchanged sentences

Proceeds from the exercise of common stock options 83,840 25,924

Repurchases of common stock ( 9,000 ) —

Other financing activities 408 59

1 unchanged sentence

Effect of foreign exchange on cash, cash equivalents, and restricted cash ( 4,024 ) 2,676

Net increase (decrease) in cash, cash equivalents, and restricted cash ( 1,565,449 ) 85,835

Net decrease in cash, cash equivalents, and restricted cash ( 310,442 ) ( 1,338,556 )

Cash, cash equivalents, and restricted cash - beginning of period 850,107 2,627,335

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Certain prior year balances have been reclassified to conform to the current year presentation.

Such reclassifications did not affect total revenues, income (loss) from operations, net income (loss), or cash flows.

Such reclassifications did not affect total revenues, income from operations, net income, or cash flows.

The Company's fiscal year ends on December 31.

The unaudited condensed consolidated balance sheet as of December 31, 2023 included herein was derived from the audited consolidated financial statements as of that date, but does not include all disclosures, including certain notes required by GAAP on an annual reporting basis.

In management’s opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets and statements of operations, comprehensive income (loss), stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period.

In management’s opinion, the unaudited condensed consolidated financial statements reflect all normal recurring adjustments necessary to present fairly the balance sheets and statements of operations, comprehensive income, stockholders’ equity, and cash flows for the interim periods, but are not necessarily indicative of the results of operations to be anticipated for the full fiscal year or any future period.

These unaudited condensed consolidated financial statements should be read in conjunction with the Company's audited consolidated financial statements and notes included in its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 20, 2024.

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The preparation of the condensed consolidated financial statements in conformity with GAAP requires management to make certain estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, disclosure of contingent assets and liabilities at the date of the condensed consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods.

the valuation of deferred tax assets and uncertain tax positions;

the collectability of contract consideration, including accounts receivable;

the useful lives of intangible assets;

and the valuation of assets acquired and liabilities assumed from business combinations, including intangible assets and goodwill.

Significant estimates and assumptions made in the accompanying condensed consolidated financial statements include, but are not limited to, the identification of performance obligations in customer contracts, the valuation of deferred tax assets and uncertain tax positions, and the collectability of contract consideration, including accounts receivable.

Estimates and judgments are based on historical experience, forecasted events, and various other assumptions that management believes to be reasonable under the circumstances.

3 unchanged sentences

Significant Accounting Policies in the notes to consolidated financial statements in its Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 20, 2024.

There have been no significant changes to these policies during the nine months ended September 30, 2023, except for the changes noted below.

There have been no significant changes to these policies during the three months ended March 31, 2024, except for the changes noted below.

Cash, Cash Equivalents, and Restricted Cash

5 unchanged sentences

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets that sum to the total of the amounts shown in the condensed consolidated statements of cash flows (in thousands):

As of September 30,

As of March 31,

Cash and cash equivalents $ 520,388 $ 1,264,738

7 unchanged sentences

Accounts receivable are written-off and charged against an allowance for credit losses when the Company has exhausted collection efforts without success.

Based upon the Company’s assessment as of September 30, 2023 and December 31, 2022, the Company recorded an allowance for credit losses of $ 10.5 million and $ 10.1 million, respectively.

Debt Securities

Debt securities are primarily comprised of U.S.

treasury securities.

The debt securities are classified as available-for-sale at the time of purchase and are reevaluated as of each balance sheet date.

The Company considers the majority of its available-for-sale debt securities as available for use in current operations and may sell these securities at any time, and therefore classifies these securities as current assets in its condensed consolidated balance sheets.

Debt securities included in marketable securities on the condensed consolidated balance sheets consist of U.S.

treasury securities with original maturities of greater than three months at the time of purchase, and the remaining U.S.

treasury securities are included in cash and cash equivalents.

Interest income on debt securities is included in other income (expense), net on the condensed consolidated statements of operations.

The majority of the Company’s available-for-sale securities are recorded at fair value each reporting period using quoted prices of similar instruments and are classified within Level 2 of the fair value hierarchy.

The Company evaluates investments with unrealized loss positions for other than temporary impairment by assessing if they are related to deterioration in credit risk and whether it expects to recover the entire amortized cost basis of the security, the Company’s intent to sell, and whether it is more likely than not that the Company will be required to sell the securities before the recovery of their cost basis.

Credit-related impairment losses, not to exceed the amount that fair value is less than the amortized cost basis, are recognized in other income (expense), net in the condensed consolidated statements of operations.

Unrealized gains and non-credit related losses are reported as a separate component of accumulated other comprehensive loss, net in the condensed consolidated balance sheets until realized.

Realized gains and losses and declines in value judged to be other than temporary are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations.

Based upon the Company’s assessment as of March 31, 2024 and December 31, 2023, the Company recorded an allowance for credit losses of $ 8.5 million and $ 10.5 million, respectively.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to significant concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, accounts receivable, and marketable securities.

Cash equivalents primarily consist of money market funds and U.S.

4 unchanged sentences

The Company is exposed to concentrations of credit risk with respect to accounts receivable presented on the condensed consolidated balance sheets.

The Company’s accounts receivable balances as of September 30, 2023 and December 31, 2022

The Company’s accounts receivable balances as of March 31, 2024 and December 31, 2023 were $ 487.0 million and $ 364.8 million, respectively.

Customer I represented 22 % of total accounts receivable as of March 31, 2024.

Customer I represented 15 % of total accounts receivable as of December 31, 2023.

No other customer represented more than 10% of total accounts receivable as of March 31, 2024 and December 31, 2023.

For the three months ended March 31, 2024, no customer represented more than 10% of total revenue.

For the three months ended March 31, 2023, Customer K, which is in the government operating segment, represented 10 % of total revenue.

No other customer represented more than 10% of total revenue for the three months ended March 31, 2023.

Share Repurchase Program

Share repurchases are recorded at trade date and the repurchase price is inclusive of any related fees and commissions.

Upon retirement, the par value of the Class A common stock repurchased is deducted from common stock with the excess of repurchase price recorded to additional paid-in capital on the Company’s condensed consolidated balance sheets.

Stock-Based Compensation

The Company accounts for stock-based compensation expense in accordance with the fair value recognition and measurement provisions of GAAP, which require compensation cost for the grant-date fair value of stock-based awards to be recognized over the requisite service period.

The Company determines the fair value of stock-based awards granted or modified on the grant date or modification date using appropriate valuation techniques.

The Company recognizes forfeitures as they occur.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

were $ 430.3 million and $ 258.3 million, respectively.

Customer J and Customer I represented 22 % and 12 %, respectively, of total accounts receivable as of September 30, 2023 and no other customer represented more than 10% of total accounts receivable as of September 30, 2023.

No customer represented more than 10% of total accounts receivable as of December 31, 2022.

For the three and nine months ended September 30, 2023 and 2022, no customer represented more than 10% of total revenue.

Service-Based Vesting

The Company grants RSUs and stock option awards that vest based upon the satisfaction of only a service condition.

The Company determines the grant-date fair value of the RSUs as the fair value of the Company’s common stock on the grant date.

The Company records stock-based compensation expense for stock options and RSUs that vest based upon the satisfaction of only a service condition on a straight-line basis over the requisite service period, which is generally one to four years .

For stock option awards, the Company uses the Black-Scholes option pricing model to determine the fair value of the stock options granted.

The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the expected term of the option, the expected volatility of the price of the common stock, risk-free interest rates, and the expected dividend yield of the common stock.

The assumptions used to determine the fair value of the option awards represent management’s best estimates.

These estimates involve inherent uncertainties and the application of management’s judgment.

Performance-Based Vesting

The Company also grants awards, including RSUs, that vest upon the satisfaction of both a service condition and a performance condition.

The Company determines the grant-date fair value of RSUs with both a service-based vesting condition and a performance-based vesting condition as the fair value of the Company’s common stock on the grant date and records stock-based compensation expense using the accelerated attribution method over the service period.

The performance-based vesting condition for the RSUs granted prior to September 30, 2020, the date the Company completed a direct listing of its Class A common stock on the New York Stock Exchange (the “Direct Listing”) was satisfied upon the occurrence of the Company’s Direct Listing.

For P-RSUs granted after the Direct Listing, the Company recognizes expense from the number of P-RSUs expected to vest, determined based on the level of achievement against certain performance conditions, over the requisite service period when it is probable that the performance condition will be achieved.

Market-Based Vesting

The Company grants awards, including stock appreciation rights (“SARs”), that vest upon the satisfaction of market-based vesting conditions.

The Company estimates the fair value of the awards granted and the corresponding derived service period using the Monte Carlo simulation model, which requires the use of various assumptions including the contractual term, expected stock price volatility, risk-free interest rate, suboptimal exercise factor, annual post-vest termination rate, and cost of capital as of the grant date.

Stock-based compensation expense for these awards is recognized straight-line over the estimated derived service period.

If the market condition is achieved earlier than its estimated derived service period, the stock-based compensation expense will be accelerated, and a cumulative catch-up expense will be recorded during the period in which the market condition is met.

Once the derived service period is complete, previously recognized stock-based compensation expense related to market-based SARs will not be reversed even if the specified market condition is not achieved.

Contract Liabilities and Remaining Performance Obligations

1 unchanged sentence

The Company’s contract liabilities consist of deferred revenue and customer deposits.

As of September 30, 2023 and December 31, 2022, the Company's contract liability balances were $ 489.6 million and $ 339.2 million, respectively.

Revenue of $ 314.9 million and $ 353.8 million was recognized during the nine months ended September 30, 2023 and 2022, respectively, that was included in the contract liability balances as of December 31, 2022 and 2021, respectively.

As of March 31, 2024 and December 31, 2023 the Company's contract liability balances were $ 477.2 million and $ 486.3 million, respectively.

Revenue of $ 244.3 million and $ 192.4 million was recognized during the three months ended March 31, 2024 and 2023, respectively, that was included in the contract liability balances as of December 31, 2023 and 2022, respectively.

Remaining Performance Obligations

4 unchanged sentences

Cancelable contracted revenue, which includes customer deposits, is not considered a remaining performance obligation.

The Company’s remaining performance obligations were $ 987.7 million as of September 30, 2023, of which the Company expects to recognize approximately 57 % as revenue over the next 12 months, 35 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

The Company’s remaining performance obligations were $ 1.3 billion as of March 31, 2024, of which the Company expects to recognize approximately 53 % as revenue over the next 12 months, 38 % as revenue over the subsequent 13 to 36 months, and the remainder thereafter.

Disaggregation of Revenue

Segment and Geographic Information for disaggregated revenue by customer segment and geographic region.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Investments and Fair Value Measurements

The following tables present the Company’s assets that are measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation (in thousands):

As of September 30, 2023

As of March 31, 2024

Total Level 1 Level 2 Level 3

1 unchanged sentence

Money market funds $ 327,561 $ 327,561 $ — $ —

treasury securities 141,946 — 141,946 —

Certificates of deposit 938 — 938 —

Prepaid expenses and other current assets and other assets:

4 unchanged sentences

Total $ 3,679,862 $ 336,274 $ 3,343,588 $ —

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of December 31, 2023

2 unchanged sentences

Money market funds $ 576,565 $ 576,565 $ — $ —

U.S treasury securities 10,079 — 10,079 —

Certificates of deposit 938 — 938 —

2 unchanged sentences

Marketable securities:

treasury securities 2,824,861 — 2,824,861 —

Publicly-traded equity securities 18,271 18,271 — —

5 unchanged sentences

Debt Securities

As of September 30, 2023, available-for-sale debt securities consisted of the following (in thousands):

As of September 30, 2023

As of March 31, 2024, available-for-sale debt securities, all of which are included in marketable securities on the condensed consolidated balance sheet, consisted of the following (in thousands):

As of March 31, 2024

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

1 unchanged sentence

Total debt securities $ 3,341,779 $ 549 $ ( 3,529 ) $ 3,338,799

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

As of December 31, 2023, available-for-sale debt securities consisted of the following (in thousands):

As of December 31, 2023

Amortized Cost Unrealized Gains Unrealized Losses Fair Value

treasury securities $ 2,831,505 $ 4,520 $ ( 1,085 ) $ 2,834,940

Total debt securities $ 2,831,505 $ 4,520 $ ( 1,085 ) $ 2,834,940

Included in cash and cash equivalents $ 10,078 $ 1 $ — $ 10,079

Included in marketable securities $ 2,821,427 $ 4,519 $ ( 1,085 ) $ 2,824,861

The Company did not sell any available-for-sale debt securities during the three months ended September 30, 2023.

The Company sold $ 694.6 million of available-for-sale debt securities during the nine months ended September 30, 2023 and immediately reinvested such proceeds into additional available-for-sale debt securities.

The Company did not sell any available-for-sale debt securities during the three months ended March 31, 2024, and sold $ 694.6 million of available-for-sale debt securities during the three months ended March 31, 2023, the proceeds of which were immediately reinvested into additional debt securities.

The realized gains and losses from those sales were immaterial.

No credit or non-credit losses related to available-for sale debt securities were recorded as of September 30, 2023.

As of September 30, 2023, available-for-sale debt securities of $ 1.4 billion were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase.

None of the available-for-sale debt securities held as of September 30, 2023 were in a continuous unrealized loss position for greater than 12 months.

The decline in fair value below amortized cost basis was not considered other than temporary as it is more likely than not that the Company will hold the securities until maturity or a recovery of the cost basis, and no credit-related impairment losses were recorded as of September 30, 2023.

No credit or non-credit losses related to debt securities were recorded as of March 31, 2024 or 2023.

As of March 31, 2024 and December 31, 2023, available-for-sale debt securities of $ 2.3 billion and $ 236.0 million, respectively, were in an unrealized loss position primarily due to unfavorable changes in interest rates subsequent to initial purchase.

None of the available-for-sale debt securities held as of March 31, 2024 or December 31, 2023 were in a continuous unrealized loss position for greater than 12 months.

All of the Company’s U.S.

treasury securities had contractual maturities due within one year.

As of December 31, 2022, the Company held an immaterial amount of debt securities.

treasury securities had remaining contractual maturities due within one year as of March 31, 2024.

Equity Securities

1 unchanged sentence

Additionally, we have accepted, and may continue to accept, securities as noncash consideration.

Total equity securities received as noncash consideration was $ 17.3 million and $ 6.4 million during the nine months ended September 30, 2023 and 2022, respectively.

Total equity securities received as noncash consideration was $ 10.9 million and $ 8.7 million during the three months ended March 31, 2024 and 2023, respectively.

Realized and unrealized gains and losses are recorded in other income (expense), net on the condensed consolidated statements of operations.

During the three and nine months ended September 30, 2022, the Company recorded net unrealized losses of $ 18.0 million and $ 192.8 million, respectively, and realized losses of $ 41.3 million and $ 67.9 million, respectively, within other income (expense), net on the condensed consolidated statements of operations.

For the three months ended September 30, 2023 and 2022, net unrealized

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

losses from publicly-traded equity securities held at the end of each period were $ 0.7 million and $ 57.2 million, respectively.

For the nine months ended September 30, 2023 and 2022, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 5.6 million and $ 223.4 million, respectively.

For the three months ended March 31, 2024 and 2023, net unrealized losses from publicly-traded equity securities held at the end of each period were $ 10.9 million and $ 8.2 million, respectively.

The Company also holds equity securities in privately-held companies without readily determinable fair values that are recorded using the measurement alternative.

As of March 31, 2024 and December 31, 2023, the total amount of privately-held equity securities included in other assets on the consolidated balance sheets was $ 35.1 million and $ 32.6 million, respectively.

The Company classifies these fair value measurements as Level 3 within the fair value hierarchy.

The Company did not record any material adjustments or impairments for the privately-held equity securities held for the three months ended March 31, 2024 and 2023.

From 2021 through 2022, the Company approved and entered into certain agreements (“Investment Agreements”) to purchase shares of various entities, including special purpose acquisition companies and/or other privately-held or publicly-traded entities (each, an “Investee,” and such purchases, the “Investments”).

During the year ended December 31, 2022, the Company purchased shares for a total investment of $ 124.5 million.

No Investments were purchased under such Investment Agreements during the nine months ended September 30, 2023.

No Investments were purchased under such Investment Agreements during the three months ended March 31, 2024 or the fiscal year ended December 31, 2023.

In connection with signing the Investment Agreements, each Investee or an associated entity and the Company entered into a commercial contract for access to the Company’s products and services (collectively, the “Strategic Commercial Contracts”).

The Company assesses the concurrent agreements under the noncash consideration paid or payable to a customer guidance within Accounting Standards Codification 606, Revenue from Contracts with Customers, as well as the commercial substance of each arrangement considering the customer’s ability and intention to pay as well as the Company’s obligation to perform under each contract.

As currently assessed, the total value of Strategic Commercial Contracts was $ 392.1 million as of September 30, 2023, which is inclusive of $ 43.7 million of contractual options.

The original terms of Strategic Commercial Contracts with remaining deal value as of September 30, 2023, including contractual options, range from two to seven years and are subject to termination for cause provisions.

The Company performs ongoing assessments of customers’ financial condition, including the consideration of such customers’ ability and intention to pay, and whether all or some portion of the value of such contracts continue to meet the criteria for revenue recognition, among other factors.

As of September 30, 2023, the cumulative amount of revenue recognized from Strategic Commercial Contracts was $ 234.1 million, of which $ 14.7 million and $ 67.4 million of revenue was recognized during the three and nine months ended September 30, 2023, respectively.

Alternative Investments

During the year ended December 31, 2021, the Company purchased $ 50.9 million in 100 -ounce gold bars.

During the nine months ended September 30, 2023, the Company sold all of its gold bars for total proceeds of $ 51.1 million and recorded an immaterial realized gain within other income (expense), net on the condensed consolidated statements of operations.

The Company assessed the concurrent agreements under the noncash consideration and consideration payable to a customer guidance within Accounting Standards Codification 606, Revenue from Contracts with Customers, as well as the commercial substance of each arrangement considering the customer’s ability and intention to pay as well as the Company’s obligation to perform under each contract.

The Company performs ongoing assessments of customers’ financial condition, including the consideration of customers’ ability and intention to pay, and whether all or some portion of the value of such contracts continue to meet the criteria for revenue recognition, among other factors.

During the three months ended March 31, 2024 and 2023, revenue recognized from Strategic Commercial Contracts was $ 23.9 million and $ 33.4 million, respectively.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Balance Sheet Components

1 unchanged sentence

Property and equipment, net consisted of the following (in thousands):

As of September 30,

2023 As of December 31,

As of March 31, 2024 As of December 31, 2023

Leasehold improvements $ 83,502 $ 83,139

5 unchanged sentences

Total property and equipment, net $ 46,906 $ 47,758

Depreciation and amortization expense related to property and equipment, net was $ 6.3 million and $ 5.5 million for the three months ended September 30, 2023 and 2022, respectively, and $ 18.2 million and $ 13.9 million for the nine months ended September 30, 2023 and 2022, respectively.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Depreciation and amortization expense related to property and equipment, net was $ 6.0 million and $ 5.9 million for the three months ended March 31, 2024 and 2023, respectively.

Accrued Liabilities

Accrued liabilities consisted of the following (in thousands):

As of September 30,

2023 As of December 31,

As of March 31, 2024 As of December 31, 2023

Accrued payroll and related expenses $ 77,709 $ 83,094

4 unchanged sentences

In October 2014, the Company entered into an unsecured revolving credit facility, which has been subsequently secured by substantially all of the Company’s assets and amended from time to time (as amended, the “2014 Credit Facility”).

As of September 30, 2023, the Company had no outstanding debt balances, and undrawn revolving commitments of $ 500.0 million available to fund working capital and general corporate expenditures under the 2014 Credit Facility, which has a maturity date of March 31, 2027.

Outstanding balances under the 2014 Credit Facility would incur interest at the Secured Overnight Financing Rate (“SOFR”) as administered by the Federal Reserve Bank of New York, or a successor administrator of the SOFR (or the applicable benchmark replacement), plus 2.00 % or a base rate plus 1.00 %, subject to certain adjustments.

The Company incurs a commitment fee of 0.30 % assessed on the daily average undrawn portion of revolving commitments.

Applicable interest and commitment fees are payable quarterly or more or less frequently in certain circumstances.

The 2014 Credit Facility also allows for an incremental loan facility of additional term loans or revolving loans in an aggregate principal amount up to the amount and upon the terms and conditions set forth therein with one or more existing or new lenders upon mutual agreement between the Company and such lenders.

As of March 31, 2024, the Company had no outstanding debt balances and had undrawn revolving commitments of $ 500.0 million available to fund working capital and general corporate expenditures under the 2014 Credit Facility, which has a maturity date of March 31, 2027.

The 2014 Credit Facility contains customary representations and warranties, and certain financial and nonfinancial covenants, including but not limited to maintaining minimum liquidity of $ 50.0 million, and certain limitations on liens and indebtedness.

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of September 30, 2023.

The Company was in compliance with all covenants associated with the 2014 Credit Facility as of March 31, 2024.

Commitments and Contingencies

Purchase Commitments

The Company has commitments with various third parties to purchase cloud hosting services.

In September 2023, the Company amended one of its third-party cloud hosting services agreements.

Under this amendment, the Company has a commitment to spend at least $ 1.95 billion over ten contract years through September 30, 2033, as well as certain additional minimum usage commitments, among other things.

Any and all previous payment obligations related to such third-party cloud hosting services agreement were terminated concurrently with the signing of this amendment.

The commitment amount for the contract year beginning October 1, 2023 and ending September 30, 2024 is $ 154.0 million.

Under this amendment, the Company has committed to spend at least $ 1.95 billion over ten contract years through September 30, 2033, as well as certain additional minimum usage commitments, among other things.

As of March 31, 2024, the Company satisfied $ 90.5 million of its $ 154.0 million commitment for contract year three ending September 30, 2024.

Additionally, as of March 31, 2024, there were no material changes outside the ordinary course of business to the Company’s commitments, as disclosed in its Annual Report on Form 10-K for the year ended December 31, 2023.

Litigation and Legal Proceedings

From time to time, third parties may assert patent infringement claims against the Company.

In addition, from time to time, the Company may be subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged infringement of trademarks, copyrights, and other intellectual property rights;

In addition, from time to time, the Company may be subject to other legal proceedings and claims in the ordinary course of business, including claims of alleged

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

infringement of trademarks, copyrights, and other intellectual property rights;

employment claims;

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On September 15, 2022, October 25, 2022, and November 4, 2022, putative securities class action complaints were filed in the United States District Court for the District of Colorado, captioned Cupat v.

Palantir Technologies Inc., et al., Case No.

Palantir Technologies Inc., et al.

1:22-cv-02384, Allegheny County Employees’ Retirement System v.

Palantir Technologies, Inc., et al., Case No.

Palantir Technologies, Inc., et al.

1:22-cv-02805, and S hijun Liu, Individually and as Trustee of the Liu Family Trust 2019 v.

Palantir Technologies Inc., et al., Case No.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Palantir Technologies Inc., et al.

1:22-cv-02893, respectively, naming the Company and certain current and former officers and directors as defendants.

1 unchanged sentence

These three actions subsequently were consolidated as Cupat v.

Palantir Technologies Inc., et al., Lead Civil Action No.

Palantir Technologies Inc., et al.

, Lead Civil Action No.

1:22-cv-02834-CNS-SKC, consolidated with civil actions 1:22-cv-02805-CNS-SKC and 1:22-cv-02893-CNS-SKC.

On March 31, 2024, the Court dismissed the Cupat matter without prejudice.

On November 21, 2022 and January 13, 2023, stockholder derivative actions were filed in the United States District Court for the District of Colorado, captioned Li v.

Karp, et al., Case No.

22-cv-3028 and Parmenter v.

Karp, et al., Case No.

23-cv-118, and on January 27, 2023, a stockholder derivative action was filed in the United States District Court for the District of Delaware captioned Miao v.

Karp, et al., Case No.

1:23-cv-00103-MN, each against certain current and former officers and directors asserting breach of fiduciary duty and related claims relating to the allegations of the securities class action complaints and seek unspecified damages and injunctive remedies under Section 14(a) of the Exchange Act and Delaware law.

On August 22, 2023, a stockholder derivative action was filed in the Court of Chancery of the State of Delaware captioned Central Laborers’ Pension Fund v.

2023-0864 against certain current and former officers and directors asserting breach of fiduciary duty and related claims relating to the allegations of the securities class action complaints and seek unspecified damages and injunctive relief under Delaware law.

2023-0864 against certain current and former officers and directors asserting breach of fiduciary duty and related claims relating to the allegations of the securities class action complaints and seeks unspecified damages and injunctive relief under Delaware law.

Because the litigation is in early stages, the Company is unable to estimate the reasonably possible loss or range of loss, if any, that may result from these matters.

As of September 30, 2023, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

Letters of Credit and Guarantees

The Company had irrevocable standby letters of credit and guarantees, including bank guarantees, outstanding in the amounts of $ 21.6 million and $ 28.8 million as of September 30, 2023 and December 31, 2022, respectively, which were fully collateralized.

The Company is required to maintain these letters of credit and guarantees primarily in connection with operating lease agreements, certain customer contracts, and other guarantees and financing arrangements.

As of September 30, 2023, these letters of credit and guarantees had expiration dates through August 2031.

On November 20, 2023, the plaintiff in Parmenter v.

Karp, et al ., Case No.

23-cv-118, filed a Notice of Voluntary Dismissal.

On November 28, 2023, the court terminated the Parmenter action accordingly.

As of March 31, 2024, the Company was not aware of any currently pending legal matters or claims, individually or in the aggregate, that were expected to have a material adverse impact on its condensed consolidated financial statements.

Warranties and Indemnification

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Due to the absence of historical warranty claims, the Company’s expectations of future claims related to products under warranty continue to be insignificant.

The Company has not recorded warranty expense or related accruals as of September 30, 2023 and December 31, 2022.

The Company has not recorded warranty expense or related accruals as of March 31, 2024 and December 31, 2023.

The Company generally agrees to indemnify its customers against legal claims that the Company’s software products infringe certain third-party intellectual property rights and accounts for its indemnification obligations.

3 unchanged sentences

or, if those options are not commercially practicable, to refund the cost of the software, as prorated over the period.

To date, the Company has not been required to make any payment resulting from infringement claims asserted against its customers and does not believe that the Company will be liable for such claims in the foreseeable future.

As such, the Company has not recorded a liability for infringement costs as of September 30, 2023 and December 31, 2022.

The Company has obligations under certain circumstances to indemnify each of the defendant directors and certain officers against judgments, fines, settlements, and expenses related to claims against such directors and certain officers and otherwise to the fullest extent permitted under the law and the Company’s Amended and Restated Bylaws and Amended and Restated Certificate of Incorporation.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

foreseeable future.

As such, the Company has not recorded a liability for infringement costs as of March 31, 2024 and December 31, 2023.

Stockholders’ Equity

3 unchanged sentences

All shares of Class F common stock are held in a voting trust established by Stephen Cohen, Alexander Karp, and Peter Thiel (the “Founders”).

The Class F common stock generally gives the Founders the ability to control up to 49.999999 % of the total voting power of the Company's capital stock, so long as the Founders and certain of their affiliates collectively meet a minimum ownership threshold, which was 100.0 million of the Company's equity securities as of September 30, 2023.

The Class F common stock generally gives the Founders the ability to control up to 49.999999 % of the total voting power of the Company’s capital stock, so long as the Founders and certain of their affiliates collectively meet a minimum ownership threshold, which was 100.0 million of the Company's equity securities as of March 31, 2024.

Holders of the common stock are entitled to dividends when, as, and if declared by the Company’s Board of Directors, subject to the rights of the holders of all classes of stock outstanding having priority rights to dividends.

No dividends have been declared as of September 30, 2023.

No dividends have been declared as of March 31, 2024.

The following represented the total authorized, issued, and outstanding shares for each class of common stock (in thousands):

As of September 30, 2023 As of December 31, 2022

As of March 31, 2024 As of December 31, 2023

Authorized Issued and Outstanding Authorized Issued and Outstanding

8 unchanged sentences

The Share Repurchase Program does not obligate the Company to repurchase any specific number of shares and may be discontinued at any time.

During the three months ended September 30, 2023, the Company did not repurchase any shares of its Class A common stock under the Share Repurchase Program.

During the three months ended March 31, 2024, the Company repurchased and subsequently retired 0.4 million shares of its Class A common stock for an aggregate amount, including commissions, of $ 9.0 million under the Share Repurchase Program.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Stock-Based Compensation

Stock Options

The following table summarizes stock option activity for the nine months ended September 30, 2023 (in thousands, except per share amounts):

Options Outstanding Weighted-Average Exercise Price Per Share

Stock Options and SARs

The following table summarizes stock option and SAR activity for the three months ended March 31, 2024 (in thousands, except per share amounts and years):

Options Outstanding SARs Outstanding

Number of Awards Weighted-Average Exercise Price Per Share

Weighted-Average

Remaining Contractual Life (years) Aggregate Intrinsic Value

Number of Awards Weighted-Average Exercise Price Per Share

Weighted-Average

Remaining Contractual Life (years) Aggregate Intrinsic Value

Balance as of December 31, 2023 278,470 $ 8.62 7.6 $ 2,381,172 — $ — 0.0 $ —

Options exercised ( 35,332 ) 4.72

Options canceled and forfeited ( 1,844 ) 5.18

Balance as of September 30, 2023 289,737 $ 8.47 7.82 $ 2,181,036

Options vested and exercisable as of September 30, 2023 166,761 $ 6.41 7.07 $ 1,598,629

As of September 30, 2023, the total unrecognized stock-based compensation expense related to options outstanding was $ 625.7 million, which is expected to be recognized over a weighted-average service period of seven years .

— — 44,283 50.00

Exercised ( 17,482 ) 4.80 — —

Canceled and forfeited ( 459 ) 5.91 ( 899 ) 50.00

Balance as of March 31, 2024 260,529 $ 8.88 7.5 $ 3,681,164 43,384 $ 50.00 39.8 $ —

Vested and exercisable as of March 31, 2024 148,070 $ 7.02 6.9 $ 2,368,058 — $ — 0.0 $ —

As of March 31, 2024, the total unrecognized stock-based compensation expense related to options and SARs outstanding was $ 573.7 million and $ 137.9 million, respectively, which is expected to be recognized over a weighted-average service period of seven years and five years , respectively.

During the three months ended March 31, 2024, the Company granted SARs that vest upon the achievement of a market-based vesting condition subject to continued service.

The market-based vesting condition is satisfied when the price per share of the Company’s Class A common stock exceeds $ 50 (measured based on the closing price on the immediately prior trading day) (an “Above Price Day”).

Following vesting, SARs may only be exercised on an Above Price Day which occurs within an open trading window.

The maximum appreciation is up to $20 per SAR.

The Company determined the grant date fair value of SARs using a Monte Carlo simulation model which incorporates various assumptions including the contractual term, expected stock price volatility, risk-free interest rate, suboptimal exercise factor, annual post-vest termination rate, and cost of capital as of the grant date.

For the awards granted during the three months ended March 31, 2024, the assumptions used in the Monte Carlo simulation model were as follows:

March 31, 2024

Expected volatility rate 58.9 %

Risk-free interest rate 4.1 %

Grant-date fair value per share $ 3.30 - $ 3.50

The expected volatility rate is based on a combination of the Company’s implied volatility and the historical volatility of comparable publicly-traded companies.

The risk-free interest rate is based on the U.S.

Treasury yield curve in effect at the time of grant.

The derived service period for the SARs granted during the three months ended March 31, 2024 was five years .

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

The following table summarizes the RSU activity for the nine months ended September 30, 2023 (in thousands, except per share amounts):

RSUs Outstanding Weighted Average Grant Date Fair Value per Share

RSUs unvested and outstanding as of December 31, 2022 126,426 $ 10.07

RSUs granted 14,601 9.47

RSUs vested and converted to shares ( 40,834 ) 9.53

RSUs canceled ( 7,580 ) 10.60

RSUs unvested and outstanding as of September 30, 2023 92,613 $ 10.11

As of September 30, 2023, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 565.1 million, which the Company expects to recognize over a weighted-average service period of three years .

RSUs and P-RSUs

The following table summarizes the RSU and P-RSU activity for the three months ended March 31, 2024 (in thousands, except per share amounts):

RSUs Outstanding Weighted Average Grant Date Fair Value per Share P-RSUs Outstanding Weighted Average Grant Date Fair Value per Share

Unvested and outstanding as of December 31, 2023 82,262 $ 10.71 1,976 $ 15.39

Granted 1,601 17.30 1,623 16.75

Vested ( 8,518 ) 12.97 ( 1,551 ) 17.59

Canceled and forfeited ( 1,371 ) 13.43 ( 49 ) 16.75

Adjustment for performance achievement (1)

— — ( 39 ) 7.38

Unvested and outstanding as of March 31, 2024 73,974 $ 10.54 1,960 $ 14.90

(1) This amount represents the difference between the maximum number of shares that could have been issued under the grant and the actual number of shares earned based on final performance.

As of March 31, 2024, the total unrecognized stock-based compensation expense related to the RSUs outstanding was $ 490.5 million, which the Company expects to recognize over a weighted-average service period of three years .

As of March 31, 2024, there was no unrecognized stock-based compensation expense related to the P-RSUs outstanding.

Stock-based Compensation Expense

Total stock-based compensation expense was as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Cost of revenue $ 10,416 $ 9,177

3 unchanged sentences

Total stock-based compensation expense $ 125,651 $ 114,714

The Company recorded a provision for income taxes of $ 6.5 million and $ 1.1 million for the three months ended September 30, 2023 and 2022, respectively, and a provision for income taxes of $ 10.4 million and $ 5.7 million for the nine months ended September 30, 2023 and 2022, respectively.

The Company recorded a provision for income taxes of $ 4.7 million and $ 1.7 million for the three months ended March 31, 2024 and 2023, respectively.

The Company is subject to income tax in the U.S.

as well as other tax jurisdictions in which it conducts business.

The Company’s effective tax rate as of September 30, 2023 differs from the U.S.

The Company’s effective tax rate as of March 31, 2024 differs from the U.S.

statutory rate primarily due to foreign income taxed at different rates, non-deductible stock-based compensation, other non-deductible expenses, and valuation allowances recorded on its deferred tax assets from the U.S., United Kingdom (“U.K.”), and other jurisdictions .

The provision for income taxes increased by $ 5.4 million and $ 4.7 million for the three and nine months ended September 30, 2023, respectively, compared to the same periods in 2022 primarily related to higher foreign income taxes as the result of higher foreign taxable income and higher withholding taxes in the current year.

The provision for income taxes increased by $ 3.0 million for the three months ended March 31, 2024 compared to the same period in 2023 primarily related to higher foreign income taxes as the result of higher foreign taxable income and higher withholding taxes in the current year.

The realization of deferred tax assets is dependent upon the generation of sufficient taxable income of the appropriate character in future periods.

5 unchanged sentences

Accordingly, the Company has maintained a full valuation allowance on its U.S.

deferred tax assets as of September 30, 2023.

deferred tax assets as of March 31, 2024.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Net Earnings (Loss) Per Share Attributable to Common Stockholders

The following table presents the calculation of basic and diluted net earnings (loss) per share attributable to common stockholders (in thousands, except per share amounts):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Net income (loss) attributable to common stockholders for diluted net earnings (loss) per share $ 71,505 $ ( 123,875 ) $ 116,434 $ ( 404,583 )

Weighted-average shares used in computing net earnings (loss) per share:

On August 16, 2022, the Inflation Reduction Act was signed into law, with tax provisions primarily focused on implementing a 15% minimum tax on global adjusted financial statement income and a 1% excise tax on the value of net share repurchases.

The Inflation Reduction Act became effective beginning in fiscal year 2023.

Based on the Company’s current analysis of the provisions, the law has not had a material impact on the Company’s condensed consolidated financial statements.

Net Earnings Per Share Attributable to Common Stockholders

The following table presents the calculation of basic and diluted net earnings per share attributable to common stockholders (in thousands, except per share amounts):

Three Months Ended March 31,

Net income attributable to common stockholders for diluted net earnings per share $ 105,530 $ 16,802

Weighted-average shares used in computing net earnings per share:

Basic 2,213,545 2,107,780

1 unchanged sentence

Diluted 2,400,107 2,217,439

Net earnings (loss) per share

Net earnings (loss) per share attributable to common stockholders:

Net earnings per share

Net earnings per share attributable to common stockholders:

Basic $ 0.05 $ 0.01

Diluted $ 0.04 $ 0.01

The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net earnings (loss) per share attributable to common stockholders for the periods presented due to their anti-dilutive effect (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

The following outstanding potentially dilutive common stock equivalents have been excluded from the computation of diluted net earnings per share attributable to common stockholders for the periods presented due to their anti-dilutive effect (in thousands):

Three Months Ended March 31,

Options issued and outstanding — 162,521

RSUs outstanding 6,941 128,182 12,032 128,182

RSUs and P-RSUs outstanding 3,500 23,006

Warrants to purchase common stock — 13,042

Total 3,500 198,569

For the three months ended March 31, 2024, the Company also excluded the impact of 43.4 million SARs that may settle in shares of Class A common stock from the computation of diluted net earnings per share because the exercise price of such SARs was greater than the average market price of the Class A common stock for the applicable period.

When such SARs are vested, the maximum number of potentially dilutive Class A common shares is the fraction that equals the maximum appreciation divided by the Company’s Class A common stock price at that time.

Segment and Geographic Information

3 unchanged sentences

A segment’s contribution is calculated as segment revenue less the related costs of revenue and sales and marketing expenses.

It excludes certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level.

These unallocated costs include stock-based compensation expense, research and development expenses, and general and administrative expenses.

It excludes certain operating expenses that are not allocated to segments because they are separately managed at the consolidated corporate level or are noncash costs.

These unallocated and noncash costs include stock-based compensation expense, research and development expenses, and general and administrative expenses.

Palantir Technologies Inc.

1 unchanged sentence

Financial information for each reportable segment was as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Government $ 335,373 $ 289,070

1 unchanged sentence

Total revenue $ 634,338 $ 525,186

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Three Months Ended March 31,

Contribution:

3 unchanged sentences

The reconciliation of contribution to income (loss) from operations is as follows (in thousands):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Income (loss) from operations $ 39,983 $ ( 62,191 ) $ 54,172 $ ( 143,375 )

Three Months Ended March 31,

Income from operations $ 80,881 $ 4,115

Research and development expenses (1)

8 unchanged sentences

Revenue is as follows (in thousands, except percentages):

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Amount % Amount % Amount % Amount %

Three Months Ended March 31,

Amount % Amount %

United States $ 406,389 64 % $ 336,845 64 %

United Kingdom 64,390 11 % 59,435 12 % 177,198 11 % 161,477 11 %

Rest of world (1)

1 unchanged sentence

Total revenue $ 634,338 100 % $ 525,186 100 %

(1) No other country represents 10 % or more of total revenue for the three and nine months ended September 30, 2023 or 2022.

Intangible Assets

(1) No other country represents 10 % or more of total revenue for the three months ended March 31, 2024 or 2023.

Palantir Technologies Inc.

Notes to Unaudited Condensed Consolidated Financial Statements

Intangible assets subject to amortization that are not fully amortized are as follows (in thousands):

Weighted average useful life As of September 30, 2023 As of December 31, 2022

Intangible Assets

Intangible assets subject to amortization that are not fully amortized are as follows (in thousands, except years):

Weighted average useful life (years)

As of March 31, 2024 As of December 31, 2023

Gross Carrying Amount Accumulated Amortization Net Carrying Amount Gross Carrying Amount Accumulated Amortization Net Carrying Amount

4 unchanged sentences

Total intangible assets $ 38,943 $ ( 15,450 ) $ 23,493 $ 38,943 $ ( 13,041 ) $ 25,902

Amortization expense of intangible assets was not material for the three and nine months ended September 30, 2023 or 2022.

As of September 30, 2023, expected amortization expense for the unamortized finite-lived intangible assets is as follows (in thousands):

Year ended December 31, Amount

Amortization expense of intangible assets was not material for the three months ended March 31, 2024 or 2023.

As of March 31, 2024, expected amortization expense for the unamortized finite-lived intangible assets is as follows (in thousands):

Year ended December 31,

Remainder of 2024 $ 5,435

29 unchanged sentences

• our expectations regarding our multi-class stock and governance structure and the benefits thereof;

• our expectations regarding macroeconomic conditions, including rising inflation and interest rates, monetary policy changes, or financial services sector instability;

• the impacts of the coronavirus (“COVID-19”) pandemic, the ongoing Russia-Ukraine conflict, and Hamas’ recent attack against Israel and ensuing conflicts, including on our and our customers’, vendors’, and partners’ respective businesses and the markets in which we and our customers, vendors, and partners operate;

• our expectations regarding macroeconomic conditions, including global political and economic uncertainty, heightened interest rates, or monetary policy changes;

• the impacts of catastrophic events, including natural disasters, global pandemics, geopolitical tensions, terrorism, or other events beyond our control, on our and our customers’, vendors’, and partners’ respective businesses and the markets in which we and our customers, vendors, and partners operate;

• the impacts of the volatility and fluctuations in currency exchange rates, including an increase in the strength of the United States (“U.S.”) dollar, on the costs of our products outside of the United States and on customer demand;

16 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements