Palantir Technologies Inc.

Good afternoon. I'm Ana Saro from Palantir's finance team, and I'd like to welcome you to our third 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 fourth 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 could 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. Thank you. Thank you. Thank you. Thank you. 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.

Our results are exceptionally strong. Revenue grew 30% year-over-year in Q3, driven by an intensifying AI revolution that the US is rapidly driving. Our US business achieved 44% year-over-year and 14% sequential revenue growth. We are focused on deploying AI models in production amidst the commoditization of cognition caused by the rapid advancement in AI models. Our U.S. government business revenue growth accelerated to 40% year-over-year and 15% sequentially, while our U.S. commercial business momentum continued with 54% year-over-year and 13% sequential revenue growth. This AI revolution that is transforming industry as well as government is also transforming markets. In September, the S&P 500 added Palantir to its index, a testament to our exceptional growth, profitability, and market leadership amidst this singular era of accelerating technological progress. We're witnessing the commoditization of cognition with the rapid advancement of AI models. Almost all investment in the AI space has been focused on supplying and improving these models. What will differentiate the AI haves from the have-nots is the ability to maximally leverage these models in production by capitalizing upon the rich context within the enterprise. This is Palantir's focus. We see this in the results we're delivering for our customers. Those who embrace quantified exceptionalism through AIP are able to take advantage of the commoditized cognition in a levered way to advance their differentiation. In this winner-take-all AI economy, the divide is widening between those who are leveraging AIP and those who are not. At a leading global insurance organization, AIPS helped automate key underwriting workflows, reducing the typical underwriting response time from over two weeks to three hours. We implemented over 10 business use cases in just nine months at Associated Materials, increasing its on-time, in-fold delivery rates from 40% to 90%. At Trinity Rail, it took just three months to get to a functional workflow with a $30 million impact to its bottom line. Last quarter, we closed 104 deals over $1 million. The evolving deal cycle as we take customers from prototype to production is having a particularly phenomenal effect on the growth of our U.S. commercial business, which continues to see AIP-driven momentum both in expansions and new customer acquisitions. In U.S. commercial, we closed nearly $300 million of TCV, and customer count grew 77% year-over-year, compared to 37% year-over-year in Q3 2023. To highlight a few notable deal cycles, a large American equipment rental company expanded its work with us less than eight months after converting to an enterprise agreement, increasing the account ARR 12-fold. a bottled water manufacturer a specialty pharmaceutical company and an agricultural software provider all signed seven-figure acv deals less than two months after their initial boot camps in our u s government business we are outfitting our warfighters with advantages over our adversaries Last quarter marked our U.S. government business's continued strength through the end of the U.S. government fiscal year. It was our strongest sequential growth in 15 quarters, driven largely by our DoD business's 21% quarter-over-quarter growth. We remain proud of our progress delivering the next-generation targeting node through Titan, with our efforts fully ramping throughout Q3. Palantir is also delivering AI through Maven Smart System, allowing customers like the 18th Airborne to match the performance of what used to be a 2,000 staff targeting cell during Operation Iraqi Freedom to a targeting cell of roughly only 20 people today. Last quarter, Palantir signed a new five-year contract to expand these Maven smart system AI ML capabilities across the U.S. military services, including the Army, Air Force, Space Force, Navy, and U.S. Marine Corps. As Vice Admiral Frank Whitworth recently said, quote, this partnership is tantamount to ensuring that we keep America safe and ready. The AI revolution is underway now. The chasm between the AI haves and have-nots is rapidly widening, and the whole world is watching. I'll now turn it over to Sean.

Thanks, Ryan. The divide between AI haves and have-nots is rapidly accelerating in this winner-take-all AI economy. What will differentiate the AI haves from the have-nots is the ability to maximally leverage these models in production by capitalizing upon the rich context within the enterprise. That's why our focus on delivering proof, not proof of concepts, continues to pay off. Years of foundational investments in our infrastructure and in ontology have positioned us uniquely to harness and deliver on AI demand. This is Palantir's Focus. The market has been focused on AI supply, the models. We see this clearly in the progress, but also in the capital sunk into these models. Indeed, the models continue to improve, but more importantly, the models across both open and closed source are becoming more similar. They are converging, all while pricing for inference is dropping like a rock. This only strengthens our conviction that the value is in the application and workflow layer, which is where we excel. Tapping into this rapidly expanding pool of leverage from AI labor means more than just saving money. It means a massive acceleration of results for our customers. As Ryan mentioned, we have automated the insurance underwriting process for one of America's largest and most well-known insurers with 78 AI agents, taking a process that took two weeks to three hours. More than the labor savings, this presents the customer with an asymmetrical advantage in the marketplace, to buying contracts before the competition has even gotten through 15% of their process. In U.S. government, we automated the foreign disclosure process for sharing critical and timely intelligence with allies, from three days to three hours. The Center for Security and Emerging Technologies at Georgetown published a study on Maven that showed how the entire targeting and fires process can be done in Maven with 20 people. It used to take 2,000. There's a huge opportunity for our customers to automate the tail and liberate capital to reinvest in the tooth across government and commercial. We see enterprise autonomy as a key theme in our proof. Our deep investments in CJADC2, Combined Joint All-Domain Command and Control, continue to meet their moments. First and foremost, MAVEN has powered responses to real-world events across the globe. This past quarter, the Army was the first military department or MILDEP to adopt MAVEN. We're happy with the progress that we continue to make with Army Titan and AIDP and Palantir's role as the application integrator in the Joint Fires Network. Maven is our military's fight tonight solution. At a time when North Korean troops are in Ukraine, Russia is providing satellite intelligence to the Houthis, and Iran is launching ballistic missiles at allies. We are investing aggressively to expand the perimeter to give our warfighters the unfair advantage they deserve. Advanced multi-int sensor fusion, integrated logistics into fires, and large-scale command and control of swarms of autonomous systems. We announced Warp Speed last quarter, our modern American manufacturing operating system. We as a nation must reindustrialize to prevent escalating conflict and regain deterrence. Before the fall of the Berlin Wall, only 6% of major weapons systems spend went to defense specialists, the so-called primes. 94% went to dual-purpose companies who were invested in both freedom and prosperity. Chrysler built cars and missiles. Ford built satellites until 1990. And General Mills, the cereal company, made weapons. Today, that 6% has become 86% when including firms whose only commercial exposure is in aerospace. We won World War II and the Cold War with an American industrial base, not a defense industrial base. And we need to bring that back at warp speed. And in addition to working with new champions like Andral and Shield AI, we're also working with L3Harris and two other of the big primes to help them bend atoms better with bits. Lastly, we continue to invest in AIP as a developer platform. Greensuiters at the 18th Airborne Corps built 15 applications in our developer environment for their August warfighter exercise. Army Software Factory is cranking out software at units in Europe and even for the Vice Chief of Staff of the Army. The 101st built their search and rescue common operating picture to power Hurricane Helene response, built entirely by uniformed service members. We have released our JADC2 SDK, including examples and documentation for government and third-party developers to start building on at palantir.com slash defense slash SDK. And we have DevCon this month, our first gathering specifically for AIP platform developers across commercial and government, where we will be releasing a ton of new product investments and enhanced OSDK, more ergonomic compute modules, the multimodal data plane, and much more. I'll turn it over to Dave to talk us through the financials.