Palantir Technologies Inc.

Welcome to Palantir's earnings call. We will be discussing the results announced in our press release issued prior to today's call and posted on our investor relations website. During the call, we will make statements regarding our business that may be considered forward looking within applicable securities laws, including statements regarding our outlook for the current quarter and other future periods, management's expectations about our future financial and operational performance, and other statements regarding our plans, prospects, and expectations. These statements are not promises or guarantees and are subject to risks and uncertainties which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed prior to today's call and in our SEC filings. Palantir undertakes no obligation... to update forward-looking statements, except as required by law. Further, during the course of today's call, we will refer to certain adjusted financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, GAAP measures. Additional information about these non-GAAP measures including reconciliation of non-GAAP to comparable GAAP measures, is included in our press release and investor presentation provided prior to today's call. Palantir's press release, investor presentation, and SEC filings are available on Palantir's investor relations website at investors.palantir.com. With that... I'll turn it over to Robby.

Thanks, Jocko. Joining me on today's call are Shyam Sankar, Chief Operating Officer, Dave Glazer, Chief Financial Officer, and Kevin Kawasaki, Global Head of Business Development. Over the course of the call, we will refer to various growth rates when discussing our business. These rates reflect year-over-year comparisons unless otherwise stated. I'll turn the call over to Shyam to get us started.

Thank you, Rodney. Cutting-edge product and continued efficiencies and distribution drove exceptionally strong Q1 results. Adjusted free cash flow was $151 million, a 44% margin, and this was an increase of $441 million over the year-ago quarter. Revenue was up 49%. Billings grew 248%. RPO grew 129%. We had 76% growth in duration-adjusted commercial deal value. We had an adjusted operating margin of 34%. And our U.S. business... across government and commercial, continues to be on fire, growing at 81%. These results, and for that matter, future results, wouldn't be possible without our relentless focus on product innovation. The area I'm most excited about is the development of Apollo for Edge AI. This was demonstrated at the Dugway Proving Grounds in Utah this past April, just last month. This is live now. We are pioneering an approach that we call micromodels. Just like microservices are the basis of modern software architectures, we believe that micromodels are how you operational AI at scale for enduring advantage. There is no place this is more true than in our U.S. government work on some of the hardest and most important problems facing our nation. Apollo for Edge AI is the next evolution to transform AI into alpha, enabling customers to train, manage, and deploy multiple independently versioned, chained models to the edge with ease. Customers will have maximum flexibility to decompose a task into multiple models. where each component can be improved and upgraded in isolation and subsequently dynamically chained together, even if links in that chain are running across multiple platforms, from space to mud and across different sensors and shooters, making the sum of the parts greater than the whole. This is operational AI in action at the edge. It's decision advantage delivered. And we are seeing incredible interest here from commercial customers to leverage this same innovation, using AI models on the factory floor to augment human workers or more efficiently detecting wildfire risks from space to next generation of predictive maintenance occurring at the edge, onboard the airplane while still in flight. Understand, decide, and act at the edge. Turning to results, where the government response to the pandemic has been efficacious, we are seeing a commercial tailwind. In the U.S. in particular, we continue to generate exceptional results where revenue grew 83% in the U.S. government and 72% in commercial. And we have a lot of headroom for growth in these markets. We only have a handful of Fortune 500 customers and less than one-tenth of a percent of annual defense spending. We have widened and are continuing to widen our capability to distribute our product. We see strength in forward-looking indicators and customer interest. Since the beginning of February, qualified commercial opportunities in the U.S. and the U.K. are up two and a half times. Active commercial pilots across the business have more than doubled, and opportunities across the U.S. and U.K. government continue to develop at pace. We added 11 new commercial customers, and we also announced our partnership with MD Anderson and Centropy. And it's not just established industry players where we are winning. We are seeing opportunities for companies to build their digital infrastructure around Foundry from day zero, where they can shave years off their ramps and mountains of risk off their roadmaps by cost-efficiently standing on the shoulders of 15 years and more than $2 billion of R&D. And we see this as the first salvo in expanding distribution of Foundry to broader markets and a broader set of customers. In Q1, we entered into a partnership with Lilium, a revolutionary EV toll transportation company that will use Foundry to build an integrated business from the ground up, incorporating design and engineering, procurement, testing, production, quality, logistics, and in-service operations. We have also partnered with Sarkos. We have always talked about Gotham as the digital Iron Man suit. Well, these guys, they're building the physical Iron Man suit. Sarkos will leverage Foundry for all of Palantir's well-understood industrials and manufacturing use cases, But you can see how Starcos can leverage all the capabilities of Apollo for Edge AI to push AI into their exoskeletons. This is Jarvis, Tony Stark's digital assistant, but in real life. These customers and even more prospects in our pipeline are at the forefront of the next major sea change in software, architecting an entire organization around a common operating picture to deliver a connected company from the very beginning, eliminating the chains of siloed data and systems. We are investing in innovation in the West, backing companies with ambitious goals and executing on our ability to move down market. And the fit is natural. Our software can radically accelerate production ramps and time to market and help these companies get to scale on dramatically shorter time horizons. In parallel, the momentum in our government business continues unabated. First quarter government revenue increased 76% year-over-year, fueled in large part by the 83% year-over-year growth we generated in the U.S. government. We continue to play a critical role in helping governments respond to the pandemic and further our mission to become the central operating system for defense. The scope of our government work is broadening on the back of cutting-edge products like Apollo for Edge AI and investments in distribution. In the first quarter, we were awarded a five-year contract worth up to $90 million with the National Nuclear Security Administration to provide the operating platform to safeguard America's nuclear stockpile. Of course, our nation's nuclear assets are of crucial importance to the future of our nations and broader Western security, and we are proud to partner on this. As we look forward over the balance of the year, We continue to have tailwinds as we pursue opportunities across both defense and civilian agencies in our government business. In Q1, our software was leveraged in the Global Information Dominance Experiment, enabling all 11 DoD combatant commands to generate globally integrated strategic decision advantage from intelligence, operations, logistics, and supply data, all advanced by AI. This work dovetails with the strong pipeline we see in our government business across a variety of defense initiatives, and we expect deal activity to increase over the course of the year. As we outlined in February, our plans to increase distribution include building a direct sales force, and we've made massive strides so far this year. In the first quarter alone, we've made nearly 50 hires into our sales team, and the pipeline to continue growing this team remains robust. This puts us well on our way to achieving the goal of adding triple-digit sales headcount this year. and applying much more force behind our business's momentum. I mentioned earlier the growth of our customers and pilots. Our sales force, combined with outreach and events, are generating more high-quality opportunities. What's more, customers are coming to us with a much deeper understanding of our products and the value they unlock, to the point where the first meeting today really now feels like the fourth or fifth meeting from a year ago. The flywheel is turning faster. In addition to our direct Salesforce expansion of channels is a critical element to our distribution strategy. We continue to pursue and invest in our channel partners across the spectrum from complimentary software companies to system integrators and cloud providers across both the government and commercial segments. We announced our IBM partnership last quarter. The pace here is tremendous. We booked our first customers within 16 days of bringing the product to market. We believe there are significantly more opportunities with ISV partners in our future. We have continued to develop our reach with system integrators, developing targeted joint go-to markets in geographies, industries, and functional areas. Today, 15 different SIs are partnering with our customers to deliver work on our products. We continue to view cloud providers as channels. or you can take the architecture the NHS used to execute one of the world's most successful at-scale vaccination programs, or the architecture used by NIH's N3C to integrate a huge amount of clinical data for research on COVID in record time. These are battle-tested blueprints for success that drive outcomes for customers and days, and importantly, for the cloud providers, drive a rapid amount of consumption very, very quickly. On the government side, we are seeing more and more traditional defense contractors buying into our architecture, both for internal production and manufacturing of large programs, the same way that we would help, say, any manufacturer, but also to leverage our Apollo for Edge AI architecture into their AI-enabled platforms to extend the life of these platforms and to create software monetization for themselves through a joint offering. Really, our successful channel partners across government and commercial are the ones that are realizing that they're going to draft off our software's world-class performance that has always met its moment. The blinding pace of both cutting-edge product development and customer wins that drove these results, they are delivered because every hobbit's unquestionable resolve in the face of adversity and categorical dedication to our customers and their mission. Thank you, all Palantirians. A final note, while restarting is on our mind, the vicissitudes of the pandemic and continuing to respond is where our hearts are. I want to reiterate that we stand ready to help, as always, any country or company at any phase. There are many regions and industries that still face existential crises in overcoming the pandemic and reforging their operations in this new reality. We stand ready to help, any and all. With that, I'll turn it over to Dave to take us through the financials.