Palantir Technologies Inc.

Good afternoon. I'm Ana Saro from Palantir's finance team, and I'd like to welcome you to our fourth quarter 2022 earnings call. We'll be discussing the results announced in our press release issued after the market closed 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 first quarter and fiscal 2023 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 would cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release, distributed after the market closed 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, Dave Glazer, Chief Financial Officer, and Ryan Taylor, Chief Revenue Officer and Chief Legal Officer. You'll also be hearing from Shyam Sengar, our chief technology officer, who prepared a few remarks but could not join today's call as he's on the front lines with one of our customers. I'll now turn it over to Alex for opening remarks.

At Palantir, we have a tradition of talking about macro events, philosophy. There would be a lot to talk about this year. I think for the first time, people have seen the impact of the digitization of warfare and Palantir's central role in the world. Leaving aside this, and I would love to talk more about it in the context of our earnings call, in the context of our interactions with the broader world, the transformations on the outside of the world brought to you by Palantir seem to be equally big on the inside. Palantir, for the first time, is GAAP profitable. I, in most of my discussions, talk about product, talk about a product market fit, occasionally talk about revenue, and I'm often asked, well, if it's so good, why aren't you GAAP profitable? We promised you GAAP profitability in 2025, which you thought would be in 2027, perhaps. We are now in the last quarter GAAP profitable, and we plan to be GAAP profitable in this year. Obviously, there's a lot of questions around that, like how did we become GAAP profitable several years before anyone expected? What does it mean for our business? What does it mean that seemingly no tech company ever becomes GAAP profitable? Why is our company profitable? What sectors of the company made it profitable? But for those of you who have been long-term supporters or even watchers of Palantir, the move from a company that was producing the most important products in the world to a company that is doing that in a profitable context is enormous, perhaps as big as our DPO. And we're proud of this because it gives us the strength and power to continue our march to support the world's most important institutions. Thank you.

As Alex highlighted, our company, after nearly two decades, achieved gap profitability for the first time last quarter. Our focus has been on building one of the most significant and durable software companies in the world. And our first profitable quarter, after years of investment in our business, represents the beginning of a new chapter in our company's history. In Q4 2022, we generated $509 million in revenue, and we generated $79 million in cash from operations, marking our eighth consecutive quarter of positive cash from operations. While the technology industry as a whole has been facing one of the most challenging operating environments in years, we continue to deliver on our top-line and bottom-line results, in particular, our combined revenue growth and adjusted operating margin. Our commercial business generated $215 million of revenue last quarter. While our U.S. commercial business slowed in the fourth quarter as a result of catch-up revenue in the prior quarter and contracting revenue from customers in our strategic investment program, we remain confident about our momentum and the opportunities ahead. We ended the quarter with 143 U.S. commercial customers, an increase of 79% year-over-year, and converted 13 pilots, the most in quarter to date, setting up our U.S. commercial business to reaccelerate in 2023. We are deploying increasingly focused go-to-market strategies, including in the healthcare, supply chain, manufacturing, energy, automotive, and utility sectors. The number of deals closed in health care more than doubled in the last year. We recently signed with several of the nation's largest hospital systems, including Cleveland Clinic, Tampa General, and one of the oldest teaching hospitals. Our momentum continues this year, having recently signed a deal with an American for-profit operator of over 2,400 health care sites. Together, these four hospital systems represent nearly 10% of the entire hospital system in the United States. In the supply chain sector, we began work at two of the largest Coca-Cola bottlers and distributors in both the U.S. and the EMEA region, and we were called into Toyota Material Handling, a forklift manufacturer and distributor, after executives learned of our comparable supply chain work at Komatsu. Cardinal Health also recently began using Foundry to deploy AI and ML to combine diagnosis and clinical data with real-time customer purchasing and consumption data for pharmaceutical products. Our international commercial business grew 11% year-over-year in the fourth quarter, including a multimillion-dollar long-term strategic partnership with Crisis24, a Garda World company, to deliver data-driven security and risk management, and a $50 million five-year expansion of our work with Sampo Holdings, where Foundry is helping to improve security, health, and well-being through digital transformation. Our government business overall saw growth across the board as well, as we generated $293 million in revenue this past quarter, an increase of 23% year over year. Our U.S. government business saw continued growth in Q4, up 22% year-over-year, which reflects the strong contract activity in Q3. Likewise, our international government business was up 26% year-over-year, including the expansion of our work supporting pressing global events, as well as the signing of Palantir's Enterprise Agreement with Defense Digital. a consolidated effort on the part of the British military to modernize its software systems. With a value of up to £75 million, we expect this agreement to further accelerate the growth of partnerships with defence and intelligence customers across the United Kingdom, as well as our UK government business overall. This quarter's gap profitability illustrates our commitment to fiscal responsibility through management of margins while expanding our business. We acknowledge the challenges ahead and remain strongly poised for long-term growth. I'll now turn it over to Shum.