Palantir Technologies Inc.

Good morning. Welcome to Palantir's second quarter 2022 earnings call. We'll be discussing the results announced in our press release issued prior to the market open 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 second quarter and fiscal 2022 results, management's expectations for 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 market open today and in our SEC filings. We undertake 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 today. Our press release, investor presentation, and SEC filings are available on our investor relations website at investors.palantir.com. 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. Joining me on today's call are Alex Karp, Chief Executive Officer, Shyam Sankar, Chief Operating Officer, Dave Glazer, Chief Financial Officer, Ryan Taylor, Chief Business Affairs and Legal Officer, and Kevin Kawasaki, Global Head of Business Development. I'll now turn the call over to Alex.

In the last three years, we have grown Palantir from a 743 revenue business with hundreds of millions of dollars in actual loss to, in the last 12 months, a $1.74 billion business with $300 million in free cash flow, which represents a 41% CAGR. 41% CAGR on a business that is now in its 18th year is very unusual. There are many reasons for the strong growth, but you live by the same sword that you pay the price for, and we deal with very, very large contracts. And the USG has some of our largest contracts, and they have been pushed out. But because of uncertainty toward the end of the year, we're revisioning guidance down to $1.9 billion. I personally remain very optimistic that the next three years will look a lot like the last three years, again, where we took a money losing business and made a business that throws off free cash flow, where we ended up as of today with $2.4 billion in the bank and no debt. and that the large and chunky nature of our contracts will continue to be in large part an advantage because these contracts do not disappear. Sometimes they are put off. Sometimes they take too long for us to get them. But at the billion dollar range of the contracts that we are working on, they have the bug of sometimes taking too long and the feature of in a highly difficult, tumultuous and politically uncertain world that you actually get paid and you actually make free cash flow. Moreover, we have five of the most interesting, important, and crazy, baller, impactful products in the world. PG, Foundry, Nexus Peering. MetaConstellation and Apollo, all of which were built before their time, all of which have made a 41% CAGR possible. These products should be measured not just in their ability to throw off free cash flow, to generate outsized revenue, but most importantly, in their quintessential attribute, that large Companies which essentially control distribution cannot easily copy them, or if at all, they're too intricate, difficult, and thick to be replaced by larger incumbents and then distributed through their distribution chain. In the end, all software products actually have to be measured by is this replaceable? How easy could it be replaced? Is the underlying platform durable? or fleeting? And could a third party, highly technical with massive distribution, disrupt these products? If you look closely at PG, Foundry, Nexus Peering, MetaConstellation, and Apollo, as different as they are, they have one thing in common. It would take many, many years of the world's best engineers to build them, and you would be building them as we've improved them and as we capture the market. Thank you.

Thank you, Alex. We have the great privilege of being on the forefront of the problems that matter most in the world, from the war in Ukraine to fighting famine and monkeypox. Across government and commercial, the opportunity in front of us is enormous, which makes the revised near-term outlook all the more disappointing. It doesn't come close to representing our ambition and the opportunity before us. While the timing of large contracts in government can be frustrating, the underlying requirements and needs are enduring. It's worth noting that our revised guidance excludes any new major U.S. government awards. At the same time, we have seen the opportunity presented by this environment before. As organizations around the world face more pressure and experience more pain, there will be a slowdown in the rate of spending and lengthening of sales cycles. But it will also reveal gaps in enterprises' operations, gaps our software can solve. In the short term, this means less revenue now, but on longer time horizons, it accelerates our business. the global financial crisis, ISIS attacks in Europe, the COVID pandemic. Through each upheaval, we emerged substantially stronger by investing in our customers ahead of revenue and delivering results in days, not months. It is exactly in times like these that we build our most important and most impactful partnerships. Each of these periods has been an inflection point for Palantir, a time during which we developed path-breaking software platforms and expanded our footprint. To our results, we generated $473 million in revenue in Q2 2022, representing a growth rate of 26% year-over-year and 6% sequential. Our customer count increased to 304, up from 169 a year ago. Our business in the United States alone generated more than $1 billion on a trailing 12-month basis, representing 42% growth. I'll now hand it over to Sham.