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 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 first quarter and fiscal 2025 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. 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.

2024 was nothing short of incredible for Palantir. Our momentum accelerated through year end, closing out 2024 with exceptional Q4 results, including an extraordinary top line beat and outperformance led by our US business. Revenue grew 14% sequentially and 36% year over year in Q4 and 29% year over year for the full year. The AI revolution continues, transforming industries and redefining how organizations operate. AI is a pivotal component in driving innovation and efficiency, something companies need to embrace or fall behind. With the proliferation of AI models, the raw AI labor supply is exploding. While everyone else is focused on the model supply side, we're transforming AI into a measurable stream of high-value finished goods and services. The result? rapid emergence of quantified exceptionalism for organizations able to unlock the potential of these commoditized models through AIP. A byproduct of our incredible progress, our Rule of 40 score increased to 81 in the fourth quarter. It's a substantial leap to deploy LLMs into production with real impact. Most organizations are currently stuck on the wrong side of the widening chasm, working on their two-, five-, and ten-year plans, which become obsolete days later, failing to ever take action, but not Palantir or our quickly growing customer base. We've taken our position through our decades-long investment in developing the ontology, which allows organizations to seamlessly weave LLMs into their enterprise, unlocking their highest potential leverage. In this AI revolution, anyone looking for a solution that actually works is going to choose Palantir. Last quarter alone, we closed $1.8 billion of TCV across our business, which represents a 56% increase year over year. We closed a record-setting number of deals in Q4, including 32 deals worth $10 million or more. Our U.S. business is at the forefront of the AI revolution, growing 52% year-over-year in Q4. Last quarter, U.S. commercial revenue grew 64% year-over-year and 20% sequentially. AIP continues to fuel new customer acquisition as we have nearly five times the number of U.S. commercial customers as we did three years ago and significant expansion opportunities at existing customers. Organizations who have crossed the chasm with Palantir are driving real impact quickly. In this AI revolution, the biggest risk is not moving fast enough, and organizations are looking to us. With Palantir, as soon as work begins, we're delivering real, quantified exceptionalism for our customers. In my conversations, they're excitedly asking how we can replicate this success across their organizations. one of America's largest pharmacies, has been a customer since early 2024 and signed a $67 million TCV engagement with us right after the pilot for workflows including automatically load balancing, prescription fulfillment, and orchestrating patient outreach. An American telecom company became a customer approximately two years ago and recently signed a $40 million TCV expansion deal to help manage and accelerate their decommissioning of old network technologies and equipment in order to achieve significant cost savings. Last earnings call, we mentioned the leading global insurance organization that deployed AIP to help automate underwriting workflows, reducing a two-week process to three hours. That organization signed a nearly $11 million ACV expansion deal in Q4. Panasonic Energy North America is seeing the effects of its AIP expansion as they've created a maintenance assistant to help 350 technicians in making 5.5 million batteries per day, resulting in reduced machine downtime, greater throughput, and rapid onboarding of new technicians. In Q4, we also announced the customers in the inaugural Warp Speed cohort, which are using Palantir's Warp Speed to gain an advantage in aspects of their manufacturing operating system, including automated visual quality inspections and dynamic production scheduling. Andoril CIO Tom Bosco noted, quote, By using the software, we've seen up to 200x efficiency gain in our ability to anticipate and respond to supply shortages. Our U.S. government business, the foundation on which Palantir was built, is exceedingly strong, with revenue growing 45% year over year last quarter. We take pride in supporting the critical missions we're delivering against. Notable deals included the U.S. Army extending its long-standing partnership with Palantir to deliver the Army Vantage capability in support of the Army Data Platform for up to four years. We also announced our recent contract expansion with U.S. Special Operations Command, marking the first deployment of Mission Manager to U.S. Special Operations Forces units. Our international commercial business continues to see pockets of growth alongside the large renewals of some of our long-standing customers. For example, Rio Tinto extended their partnership with Palantir for an additional four years, noting AIP is making their unstructured data accessible, allowing them to quickly attack problems previously deemed too complex. Using our software, network rail specialists coordinate 53 driverless trains, each with 240 wagons, ultimately improving throughput and safety. Our international government business also achieved strong growth. Revenue increased 26% sequentially last quarter, driven in large part by the UK, including our work with the NHS to roll out the Federated Data Platform as 87 acute NHS trusts and 28 integrated care boards have signed up to use it as of November 2024. We accelerated through the end of the year, and we remain full throttle. We're at the dawn of this AI revolution, and in this winner-take-all AI economy, Palantir leads the way. I'll now turn it over to Shom.

Thanks, Ryan. For the last two years, we've been saying that even while the LLMs are improving, the models across both open and closed source are becoming more similar, and performance will converge, all while the cost per token for inference continues to drop substantially. And that's because the market's been focused on AI supply, the models. With the release of DeepSeek R1, that has gone from a contrarian position to consensus. It's now blindingly obvious to everyone. Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on AI demand. From the beginning, AIP was built for this reality. Chat was always a dead end. Instead, we viewed LLMs as a new runtime for the AI labor. To capture the productive value of this AI labor, you need an intermediate representation of your enterprise that AI can actually interact with. How do you allocate inventory, onboard customers, process claims, call for prior authorization, and the like? That intermediary representation that makes all of that possible is ontology. And that's why it's been the secret to our meteoric rise. We are convinced the normative value for AI is enterprise autonomy, the self-driving company. Users go from performing the workflow to supervising an army of agents, teaching them how to handle edge cases and reducing dwell time. This is where we are maniacally focused with our customers. We've been working with a large multinational bank to automate core back office processes. What used to take five days now takes three minutes. Much more than the labor savings, this improvement eliminates historical constraints on the middle office and now enables the bank to create entirely new and differentiated financial products. We're working with the top engineering and construction firm to automate the identification of risks across tens of thousands of pages of technical documents, replacing months of arduous manual reviews with AI labor that can flag major risks to engineers in minutes. And we're working with a large power systems company to automate the understanding of technical diagrams to turn them into quotes into orders. And finally, we're working with an automotive supplier to analyze CAD files for component designs to have AI labor validate engineering standards and manufacturability checks. That is a hundred-hour process for human engineers, now automated and serving up exceptions for human review. The before and after with AI is stark, and the speed of implementation is accelerating. You can divide companies up into two categories, the quick and the dead. Turning to Warp Speed, Palantir's modern American manufacturing operating system, it continues to move at Warp 10. Our nation is in the beginning of a great re-industrialization as we compete with China to secure a free world and individual liberties. This is a competition we cannot afford to lose. We announced our first cohort of Warp Speed customers, including Andrel and L3 Harris. The response has been exceptional, and the pipeline is swelling. Warp Speed integrates engineering, test, production, quality, and operations so that manufacturers can build better and build faster. Our FedStart offering hit a major milestone with the approval of our FedRAMP high environment for FedStart customers. This is radical acceleration, both in reduction of time and costs of market access for software companies in the federal space. Finally, in U.S. government, our deep investments in CJADC2 continue to deliver results. Maven continues to see significant adoption and is pathfinding new AI capabilities throughout the kill chain. Substantial new investments integrating contested logistics into Maven's AI-enabled kill chain met their moment in exercises in Q4. Adoption continues within the military departments, specifically Army, Air Force, and Space Force, as well as at the combatant commands with expansions at Spacecom, Southcom, Africom, and Stratcom. While Hurricane Helene response galvanized the adoption of MAVEN on unclass beyond just the secret and top secret networks, the adoption has continued to grow as MAVEN is used for securing our nation's border and securing our nation's airspace by enabling drone domain awareness. And MAVEN is reaching our allies and partners via U.S. supplied capabilities called MAVEN REL, all spurred by real world events and the need to collaborate in real time in crisis. We are really just getting started with Maven and have an ambitious roadmap and a set of customer opportunities in front of us to deliver the unfair advantage our warfighters deserve. I'll turn it over to Dave to talk us through the numbers.