Palantir Technologies Inc.

I'm Anna Saro from Palantir's finance team, and I'd like to welcome you to our second quarter 2025 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 third 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 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.

Our tremendous second quarter results demonstrate how Palantir is redefining what is possible with enterprise AI. we remain maniacally focused on value creation for our customers. Our U.S. business is the engine of this transformation. U.S. commercial led with 93% year-over-year revenue growth, outpacing our U.S. government revenue growth of 53% year-over-year. Our overall U.S. business revenue grew 68% year-over-year and 17% sequentially and now represents 73% of total company revenue. We surpassed $1 billion in quarterly revenue for the first time, as our overall revenue growth continued to rapidly accelerate to 48% year-over-year growth in Q2. Through this record-breaking quarter, our Rule of 40 score continued to climb, reaching 94 in Q2, which is up 11 points quarter-over-quarter, particularly noteworthy given the scale of our business. As AI continues to relentlessly advance, the market has become increasingly aware of the most important and fundamental technical reality. LLMs, on their own, are at best a jagged intelligence divorced from even basic understanding. In one moment, they may appear to outperform humans in some problem-solving task, but in the next, they make catastrophic errors no human would ever make. By contrast, our ontology is pure understanding, concretized in software. This is reality, not rhetoric. And enterprises are experiencing this reality keenly. LLMs simply don't work in the real world without Palantir. This is the reality fueling our growth. We booked our highest TCV and ACV ever last quarter, with $2.3 billion in TCV and $684 million in ACV. We closed a whopping 157 deals worth $1 million or more, of which 66 deals were worth $5 million or more, and 42 deals were worth $10 million or more. We continue to see expansions with our existing customers, as our top 20 customers now average $75 million a year in trailing 12-month revenue, up 30% from a year ago. The impact our software is delivering for our customers as they cross the chasm is ever-widening their advantage over the AI have-nots. Citibank shared that the customer onboarding process and relevant KYC and security checks that once took them nine days now take seconds. Fannie Mae recently announced they're working with Palantir, decreasing the time to uncover mortgage fraud from two months down to seconds, saving the US housing market millions in future fraud losses. Nebraska Medicine President and COO noted they saw a 2,100% increase in discharge lounge utilization, which is the equivalent of adding another unit to their hospital. They even noted, quote, we've been using the term a Palantir unit of time, and that represents when we're driving value in less than an hour. Lear Corporation recently signed a five-year extension. Over the past two and a half years, they have leveraged Foundry and AIP to support over 11,000 users and more than 175 use cases, including proactively managing their tariff exposure, automating multiple administrative workflows, and dynamically balancing their manufacturing lines. Their CEO highlighted that their enterprise-wide adoption gives them, quote, a first-mover advantage in the automotive industry, which will be difficult to replicate. Our US commercial business exited Q2 with a 93% year-over-year and 20% sequential growth. Due to its acceleration, US commercial comprised 31% of our Q2 revenue versus 23% a year ago. We continue to focus on delivering AI production impact, evidenced by the strength of new starts and expansions at existing customers. We're seeing new starts with higher ambition and existing customers expand their work at a faster rate. A healthcare company completed a boot camp in April, then signed an $88 million TCV deal a month later to coordinate and automate patient care across facilities. An American telecom company started working with us in 2022 and has increased their contract 10x since then and is now projecting hundreds of millions in cost savings. Our U.S. government business grew 53% year-over-year and 14% sequentially last quarter, driven by the impact we're delivering across civil, intel, and defense, including greenfield efforts. U.S. Space Force Space Systems Command awarded us a $218 million delivery order to support seamless synchronized multi-domain warfighting for the space and air operational communities. The ceiling for our Maven smart system contract was increased by $795 million to prepare for what they expect will be significant demand from combatant commands for our AI-powered software capabilities over the next four years. Last week, Palantir was awarded a 10-year enterprise agreement with the Army, totaling up to $10 billion, consolidating 75 contracts into a single contract. The Army is one of our longest-standing customers. We are honored to embark on this next phase together. we remain focused with deep respect and dedication on equipping our warfighters with decisive advantages over our adversaries. Looking towards the back half of the year, my enthusiasm for our business is at an all-time high. With determination and persistence, we'll continue delivering exceptional AI production impact for our customers, running full speed at the critical challenges they entrust us to solve. I'll now turn it over to Shom.

Thanks, Ryan. 20 years of grinding has built a unique mode and a massive lead. Our products were built for this moment, and the numbers show it. Realizing value from AI in the enterprise requires the elegant integration of LLMs, workflow, and software. And that's only possible with ontology. As LLMs continue to improve, it only further accelerates the value realization, and therefore the value of our products. Our foundational investments in ontology and infrastructure have positioned us to uniquely deliver on the AI demand both now and in the world ahead. A substantial development over the last couple of quarters is the realization and acceleration of our vision of ontology web services as an architectural concept for our customers. AIP isn't just software our customers use, it's software our customers are building their software on. Software companies are replatforming away from the highly unopinionated services and building blocks of the hyperscaler stack onto AIP with its highly opinionated building blocks that get you to value 10 times faster. Chris Johnson, the co-CEO of Teletracking, who recently replatformed on AIP, said that he was flooded with inquiries from CEOs and CIOs when he went public on his partnership with Palantir. Replatforming on AIP has enabled customers to leapfrog their competition and beat them to market. And this will continue to be both a significant area of investment on our product roadmap and an accelerating growth opportunity for the business across commercial and government. I mentioned this last quarter. On their earnings calls, CEOs have been highlighting the transformative impact of AIP on their organizations. That trend continues. But also, this quarter, you can hear from the frontline workers about the same transformation AIP is bringing them. AI is giving the American worker superpowers. At the all-in winning the AI race summit in D.C., an ICU nurse, a factory worker, a hospital administrator, an electric vehicle battery maintenance technician shared how AI is making them better, faster, and more productive, giving them more time with patients, more time solving problems, and enabling more workers to access the job market. Our investments in AIFD are accelerating the already eye-watering time to value for our customers and providing customers with capabilities to solve bigger and more complex problems independently. AIFD is designed to enable autonomous execution across a wide array of tasks, including creating and editing the ontology, building data transforms, creating functions, debugging issues, and building applications. With its own closed-loop error handling, AIFD can identify and correct issues and notify human users if needed. And it's been designed for seamless collaboration with humans in the loop through integration with AIP's branching. Warp Speed, our modern manufacturing operating system built on AIP, continues to deliver for our industrial customers, from nuclear companies to the defense industrial base. With MRP Speed, a component of Warp Speed, one of our customers remarked that balancing the production line has shifted from one day to one hour. We have seen a dramatic set of opportunities open up in U.S. shipbuilding as America gets serious about fixing its maritime industrial base. China built more ships last year than we have built cumulatively since the end of World War II. Now the mighty American engine of innovation is spinning up and tackling this problem head on. Maven Smart System met its moment in recent operations of great import. Maven adoption continues to grow with usage doubling again since February. Last quarter, I mentioned that usage doubled in the first nine months of 2024 and doubled again in the subsequent five months. This is on top of that. With that, I'll turn it over to Dave to take us through the numbers.