Palantir Technologies Inc.

Good afternoon. I'm Ana Saro from Palantir's finance team, and I'd like to welcome you to our first quarter 2024 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 second quarter and fiscal 2024 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 other earnings materials 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 Technology Officer, Dave Glazer, Chief Financial Officer, and Ryan Taylor, Chief Revenue Officer and Chief Legal Officer. I'll now turn it over to Ryan to start the call.

We started the year exceedingly strong, with revenue of $634 million, an increase of 21% year over year, driven by the momentum of AIP and our continued strong performance in U.S. commercial. Our results also highlight the growing strength of our U.S. government business and our enduring mission-critical work. The continued interest in AIP is loud and clear in the conversations I'm having across our customer base. We've shared our plans to capture the market with AIP, and our results show that our strategy is not only succeeding, it is accelerating. While still early days, our focus is on building the foundations of a long-term business. We intend to relentlessly continue landing new customers and subsequently expanding those engagements as our products gain traction and have meaningful impact within enterprises. Not only are we increasing the volume of new customers, but I'm pleased with our ability to grow these new customers as well. With regards to landing new customers, we've sustained our high volume of boot camps with over 915 organizations participating to date to meet inbound demand. We are also seeing substantial deal cycle compression. As one example, a leading utility company signed a seven figure deal just five days after completing a boot camp another customer immediately signed a paid engagement after just one day of their multi day boot camp and then converted to a seven figure deal three weeks later. We expect the favorable unit economics and higher throughput to continue to accelerate our business. US commercial is where we're seeing the greatest transformation. While Q1 is seasonally our slowest quarter, AIP adoption by new and existing customers helped drive notable growth in customer acquisition and revenue in our U.S. commercial business. In Q1, we added 41 net new customers in U.S. commercial. Our customer count increased 69% year-over-year and 19% quarter-over-quarter, compared to 8% quarter-over-quarter growth in Q1 2023. Excluding strategic investments, our U.S. commercial revenue soared by 68% year-over-year and 22% quarter-over-quarter. New customers span a variety of industries, as AIP's applications seem endless. From the largest independent bottling company in the U.S. to a leading energy and infrastructure company and a multinational airline. In Q1, our U.S. commercial business had customers from 56 of the 74 GIX industries. As we're landing new customers, we're also seeing those customers expanding their work with us. Across my conversations with customers, I've seen the recurring theme of them asking me how they can do more faster with enterprise transformations driven by AIP. We're showing them how they can move their AI strategy beyond chat. Existing customers such as Lowe's, Cleveland Clinic, and General Mills, among others, are realizing the extensive possibilities of AIP within their own enterprises and increasing their scope accordingly. Lowe's accelerated its engagement from a starting point of no AI to utilizing production-level AI for over 1,000 customer service agents, resulting in a 75% reduction in overdue tasks. As one of its directors noted, quote, we achieved this in just four months and onboarded 1,000 users within three weeks of rollout. Cleveland Clinic committed to a 10-year expansion deal to deploy more broadly across its hospitals. General Mills expanded the scope of its work further last quarter as its senior director noted, quote, we're saving on average about $14 million annually, and it's really only deployed to part of our network as we speak. we're seeing rapid expansions within key customer accounts. For example, a Fortune 500 industrials company signed a three-year expansion deal, which increased the annual revenue run rate of our work with them nearly five-fold compared to our initial engagement with them in 2022. A Fortune 100 retail company started a pilot in Q2 2023, expanded to a use case conversion in August, then expanded its work to a $12 million ACV enterprise engagement last quarter. These are just a few examples. More and more customers are expanding their work with us due to AIP and the incredible traction our software has within their organizations. Turning to our US government business, our revenue continued to accelerate last quarter, increasing 8% quarter over quarter versus 3% quarter over quarter in Q4, with our products every day having critical impact on current world events. we see continued demand for mission manager and positive reception to first breakfast. Last quarter, we were honored the US Army awarded Palantir over $178 million to be the sole prime contractor to build a next generation targeting node under the Titan program. This marks the first time that a software company has won a prime contract for a hardware system and exemplifies Palantir's position as the software prime, opening the door to vast new opportunities. It is with immense reverence that we approach building and maturing our revolutionary capabilities for our warfighters. In our international government business, we are continuing to ramp up the critical work for delivery of the UK NHS federated data platform, as well as providing Defense capabilities to ally partners around the world. Looking at our business and its impact broadly i'm invigorated about the year ahead. We have never had more conviction about AIP and the power of our software, as well as our continued efforts supporting the most critical missions around the globe. I'll now turn it over to Sham.

Thanks, Ryan. The clear signal from AIP bootcamps is that AI is for builders. So many anecdotes and quotes from customers all reinforcing the same point. They are getting more done in a day or two in AIP than in a quarter or two without. we have pioneered the approach to getting beyond chat and unlocking the value of LLMs in the enterprise, taking inherently unstructured inputs that are flying around the enterprise, be it emails, slacks, PDFs, images, comments, audio, and turning them into structured actions and outputs. Taking an email from a customer requesting a different product mix and turning it into an actual inventory allocation in the ERP system of record. taking a health claims denial, and programmatically generating the documentation and supporting evidence from the clinical records and contracts. automating P&C insurance claims processing, and even in government, using vision models to narrow candidate products driving foodborne outbreaks at CDC. And we have started rolling out Build with AIP, a series of developer and builder-oriented tutorials and reference implementations that enable builders to ramp quickly on the primitives and power of AIP and practical examples that unlock every employee at every customer. Our growth is being driven by the incredible dynamism of the U.S. commercial market, and we believe the U.S. government will follow. With this momentum, we have launched builder boot camps in the U.S. government. The U.S. Army recently issued a memo identifying two Palantir systems, AIDP and Army Vantage, as amongst the five total platforms approved for builders. The U.S. Army's Artificial Intelligence Integration Center, AI2C at Carnegie Mellon, leverages these platforms for half of their active projects and recently built an application for the 18th Airborne Corps with OSDK. Our DoD customer recently hosted a hackathon showing the value of the open Joint All-Domain Command and Control, or JADC2, SDK that we have been pioneering. One participant commented, nominating targets with Gaia Assist turns a six-hour workflow into 10 seconds. We continue to invest in Mission Manager and will be extending it to the edge with our EdgeX infrastructure and U.S. government. Now customers can use their cloud instance as an integrated development environment for edge platforms, centrally build, test, and continuously deploy and manage multi-vendor Big 10 edge ecosystems. It covers everything from streaming pipelines, OSDK-backed applications, native Gotham applications, and third-party apps. We are excited with our team of rockstar partners to deliver on the U.S. Army's Titan program. This marks the first time a software company has won a hardware contract, firmly establishing the role of the software prime. We believe the core of this software, Target Workbench, will be critical in every cockpit, every vehicle, and every ship. Finally, I'd like to acknowledge the eye-watering work of our service members and our allies in meeting the moment defending against the massive Iranian attack on Israel. The Gotham investments in JADC2 performed excellently, and we're building even more, even faster. I'll turn it over to Dave to take us through the numbers.