Try our mobile app

Published: 2022-02-17 00:00:00 ET
<<<  go to PLTR company page
HTTP/1.1 200 OK HTTP/1.1 200 OK X-Crawlera-Slave: 192.126.173.27:8800 X-Crawlera-Version: 1.60.1 accept-ranges: bytes content-type: text/html last-modified: Thu, 17 Feb 2022 11:11:22 GMT server: AmazonS3 x-amz-id-2: 5gv84ERprJxMOU/fbse81waXjjbYJ+fxEtsGPm2k2sKfrd2iT5rGAmHsyq58wpVTSJCiPw358LU= x-amz-meta-mode: 33188 x-amz-meta-s3cmd-attrs: uid:504/gname:fitrprnt/uname:fitrprnt/gid:504/mode:33184/mtime:1645096278/atime:1645096278/md5:c0b15486450afc5eff0ffe7d991ea9c9/ctime:1645096278 x-amz-replication-status: COMPLETED x-amz-request-id: 5K8J8AVT7Q6ZRKCS x-amz-version-id: kO9LcSf.FTGpAHUaMDGH7YjscOmYI2.w x-content-type-options: nosniff x-frame-options: SAMEORIGIN x-xss-protection: 1; mode=block x-akamai-transformed: 9 14505 0 pmb=mTOE,2 expires: Thu, 06 Apr 2023 17:11:13 GMT cache-control: max-age=0, no-cache, no-store pragma: no-cache date: Thu, 06 Apr 2023 17:11:13 GMT vary: Accept-Encoding akamai-x-true-ttl: -1 strict-transport-security: max-age=31536000 ; includeSubDomains ; preload set-cookie: ak_bmsc=393312243ECDC296359D96C42595CB14~000000000000000000000000000000~YAAQl5UeuO4CrheHAQAAyAeNVxOppO3XceySeD5OKXXibOAZt2jkhiGM8b8KFc6tckddmwVTqrKZw9ETPdwEbAZgk5aroYhmyP0RyvCZf9mT9Jra45sfPhHfWAj42aQpDbcKX2cgKT5AgIeCFgVMe9dyhdBzkYn0P5n0gENNsnPKKIHEnXtZVpZ5nesP38WW+aBcM2gX6XmqBsxBwS9vv4vTXpm+CVKczOKVbNvE6/Q9UtFV5v7znmOJQCNisHzcovWZa+p2qRmxcmTJ9zUri88gaEjhMWXQilruDAGhy5KaXLj771fj4zQEKlLrDt1o5j68ypFEdoJJoIFVu5ihR5mOIiiPZdEPmbRImSdSfNlnJuieCIsdYOHwIDOVi3dCsZ4i3JJo+g==; Domain=.sec.gov; Path=/; Expires=Thu, 06 Apr 2023 19:11:12 GMT; Max-Age=7199; HttpOnly set-cookie: bm_mi=42FA6EEDDD01CC64AF2CD316B596650C~YAAQl5UeuO8CrheHAQAAyAeNVxMg9kM4Zcj3FxrGfnGHoyC6W6xSl5aUy/Igg9+PT7CJ1tvgpc6eKjApVX2/9Z0IsjxLVCaiy8sFvGxWz3GtS8T2OvbEby7eB+thOGWZmHuIUxKOOJg2OxlfSM1cFNdZwPlQdsnDoq9Mr7/t3Lh34QL3cvhRLoCAd3+fqDC6IkxZ3T5e+ihZr6A8zTWk/9P0lWoGsLGeCz9Lcm+W3H5eYe3KUvKKlCwGQkSF+uAzHFD+9JMUmBNsfMoqgdsF18MtolqsjU9VtAHPjj/rFlEQ1BeGR8tcB3g0RdY+/DUvM0fqOXZ+080SireWSr3OY4NFLmgTmThp9GgPiQJdEHb3ydv6A/4DzmFrq/I+jWnWYe8FJi6Qm3o=~1; Domain=.sec.gov; Path=/; Expires=Thu, 06 Apr 2023 17:11:13 GMT; Max-Age=0; Secure Transfer-Encoding: chunked Proxy-Connection: close Connection: close EX-99.1 2 d317188dex991.htm EX-99.1 EX-99.1

Exhibit 99.1

Palantir Reports Revenue Growth of 41% for FY 2021, US Commercial Revenue up 102% Y/Y in FY 2021

2/17/2022

DENVER — (BUSINESS WIRE) — Palantir Technologies Inc. (NYSE:PLTR) today announced financial results for the fourth quarter and fiscal year ended December 31, 2021.

Q4 2021 Highlights

 

   

Total revenue grew 34% year-over-year to $433 million

 

   

Commercial revenue grew 47% year-over-year

 

   

US commercial revenue grew 132% year-over-year

 

   

Government revenue grew 26% year-over-year

 

   

Added 34 net new customers in Q4 2021

 

   

Loss from operations of $(59) million, representing a margin of (14)%, up 3500 basis points year-over-year and 900 basis points sequentially

 

   

Adjusted income from operations of $124 million, representing a margin of 29%

 

   

Cash from operations of $93 million, representing a 22% margin

 

   

Adjusted free cash flow of $104 million, representing a 24% margin

 

   

Closed 64 deals of $1 million or more, of which:

 

   

27 deals are $5 million or more

 

   

19 deals are $10 million or more

 

   

GAAP net loss per share, diluted of $(0.08)

 

   

Adjusted net earnings per share, diluted of $0.02

FY 2021 Highlights

 

   

Total revenue grew 41% year-over-year to $1.54 billion

 

   

US revenue grew 53% year-over-year to $879 million

 

   

Commercial revenue grew 34% year-over year to $645 million

 

   

US commercial revenue grew 102% year-over-year

 

   

Government revenue grew 47% to $897 million

 

   

Commercial customer count tripled to 147 customers year-over-year

 

   

US commercial customer count increased 4.7x to 80 customers year-over-year

 

   

Total net dollar retention of 131%

 

   

US commercial net dollar retention of 150%

 

   

Government net dollar retention of 146%

 

   

Cash from operations of $334 million, representing a 22% margin

 

   

Adjusted free cash flow of $424 million, representing a 28% margin


Q4 and FY 2021 Financial Summary

 

(Amounts in thousands, except percentages and per share amounts)    Fourth Quarter      Full Year 2021  
     Amount      Amount  

Revenue

   $ 432,867        $ 1,541,889    

Year-over-year growth

     34        41  
         Amount             Margin              Amount             Margin      

Loss from operations

   $ (58,943     (14)%      $ (411,046     (27)%  

Adjusted income from operations

   $ 124,033       29%      $ 473,452       31%  

Cash flow from operations

   $ 93,427       22%      $ 333,851       22%  

Adjusted free cash flow

   $ 104,196       24%      $ 424,127       28%  

Net loss

   $ (156,188      $ (520,379  

Adjusted net income

   $ 45,397        $ 308,082    

Adjusted EBITDA

   $ 127,873       30%      $ 488,349       32%  

GAAP net loss per share, diluted

   $ (0.08      $ (0.27  

Adjusted earnings per share, diluted

   $ 0.02        $ 0.13    

Outlook

For Q1 2022, we expect:

 

   

$443 million in revenue.

 

   

Adjusted operating margin of 23%.

For full year 2022, we expect:

 

   

Adjusted operating margin of 27%.

Per long-term guidance policy, as provided by our Chief Executive Officer, Alex Karp, we continue to expect:

 

   

Annual revenue growth of 30% or greater through 2025.

Earnings Webcast

A public webcast will be held at 6:00 a.m. MT / 8:00 a.m. ET today to discuss the results for our fourth quarter and year ended December 31, 2021 and financial outlook. The live public call can be accessed by registering online at http://www.palantir.events/palantirearnings-q42021. A replay of the webcast will be available at https://investors.palantir.com following the event.

An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, and accompanying remarks will be available through Palantir’s Investor Relations website at https://investors.palantir.com.


Forward-Looking Statements

This press release and statements on our earnings webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to, statements regarding our financial outlook, product development, expected benefits of and applications for our software platforms, business strategy and plans (including strategy and plans relating to our sales and marketing efforts, sales force, partnerships, and customers), market trends and market size, opportunities (including growth opportunities), our expectations regarding our recent and potential investments in, and commercial contracts with, various entities, including special purpose acquisition companies and other privately-held or publicly-traded companies, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our quarterly report on Form 10-Q for the quarter ended September 30, 2021 and other filings and reports that we may file from time to time with the SEC, including our annual report on Form 10-K for the fiscal year ended December 31, 2021. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully grow our direct sales force and to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms easier to install and consume; our ability to maintain and enhance our brand and reputation; news or social media coverage about us, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; and any breach or access to customer or third-party data.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

Additional Definitions

For the purpose of this press release, the value of deals closed reflects the total contract value of contracts that have been entered into with, or awarded by, our government and commercial customers.

The value of deals closed includes existing contractual obligations and presumes the exercise of all contract options available to our customers and no termination of contracts; however, the majority of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised.


For the purpose of this press release, net dollar retention is calculated as (a) revenue recognized in fiscal year 2021 attributable to customers from which we have recognized revenue in fiscal year 2020, divided by (b) revenue recognized in fiscal year 2020 from those same customers. This calculation captures upsells, contraction, and attrition. For the purpose of the foregoing definition of net dollar retention for fiscal year 2021, “customers” refers to applicable organizations from which we have recognized revenue during fiscal year 2020.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures adjusted income from operations which excludes stock-based compensation, related employer payroll taxes, and non-recurring expenses primarily related the direct listing of our Class A common stock (“Direct Listing”) on the New York Stock Exchange during the quarter ended September 30, 2020; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation and amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income; and adjusted earnings per share (“EPS”), diluted.

We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude expenses primarily related to the Direct Listing during the third quarter 2020, as they are one-time non-recurring charges. Additionally, we exclude employer payroll taxes related to stock-based compensation, as it is difficult to predict and outside of Palantir’s control. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations, as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future such as stock-based compensation, and related employer payroll taxes, the effect of which may be significant.

Available Information

Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.

About Palantir Technologies Inc.

Foundational software of tomorrow. Delivered today.

Additional information is available at https://www.palantir.com.

Who dares, wins.

Contact

Investor Relations

Rodney Nelson

investors@palantir.com

Media

Lisa Gordon

media@palantir.com


Palantir Technologies Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

     Three Months Ended
December 31,
  Years Ended
December 31,
     2021   2020   2021   2020

Revenue

   $ 432,867     $ 322,091     $ 1,541,889     $ 1,092,673  

Cost of revenue (1)

     87,563       70,503       339,404       352,547  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

     345,304       251,588       1,202,485       740,126  

Operating expenses:

        

Sales and marketing (1)

     162,593       147,619       614,512       683,701  

Research and development (1)

     84,176       94,130       387,487       560,660  

General and administrative (1)

     157,478       166,411       611,532       669,444  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

     404,247       408,160       1,613,531       1,913,805  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

     (58,943     (156,572     (411,046     (1,173,679

Interest income

     480       368       1,607       4,680  

Interest expense

     (601     (1,814     (3,640     (14,139

Other income (expense), net

     (64,118     2,082       (75,415     4,111  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision (benefit) for income taxes

     (123,182     (155,936     (488,494     (1,179,027

Provision (benefit) for income taxes

     33,006       (7,593     31,885       (12,636
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

   $ (156,188   $ (148,343   $ (520,379   $ (1,166,391
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic

   $ (0.08   $ (0.08   $ (0.27   $ (1.19
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, diluted

   $ (0.08   $ (0.08   $ (0.27   $ (1.20
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, basic

     2,011,764       1,763,514       1,923,617       977,722  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares of common stock outstanding used in computing net loss per share attributable to common stockholders, diluted

     2,011,764       1,763,514       1,923,617       979,330  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

Includes stock-based compensation expense as follows (in thousands):

 

                                                                                   
     Three Months Ended
December 31,
     Years Ended
December 31,
 
     2021      2020      2021      2020  

Cost of revenue

   $ 13,680      $ 19,342      $ 68,546      $ 139,627  

Sales and marketing

     56,492        75,852        242,910        398,205  

Research and development

     27,322        47,365        150,298        357,063  

General and administrative

     69,413        99,229        316,461        375,807  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total stock-based compensation expense (i)

   $ 166,907      $ 241,788      $ 778,215      $ 1,270,702  
  

 

 

    

 

 

    

 

 

    

 

 

 

 

(i) 

On September 30, 2020, in connection with the Direct Listing, we incurred $769.5 million and $8.4 million of stock-based compensation using the accelerated attribution method related to the satisfaction of the performance-based vesting condition for restricted stock units and growth units, respectively, that had satisfied the service-based vesting condition as of such date.


Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     As of December 31,
     2021   2020

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 2,290,674     $ 2,011,323  

Restricted cash

     36,628       37,285  

Accounts receivable

     190,923       156,932  

Marketable securities

     234,153       —    

Prepaid expenses and other current assets

     110,872       51,889  
  

 

 

 

 

 

 

 

Total current assets

     2,863,250       2,257,429  

Property and equipment, net

     31,304       29,541  

Restricted cash, noncurrent

     39,612       79,538  

Operating lease right-of-use assets

     216,898       217,075  

Other assets

     96,386       106,921  
  

 

 

 

 

 

 

 

Total assets

   $ 3,247,450     $ 2,690,504  
  

 

 

 

 

 

 

 

Liabilities and Stockholders’ Equity

    

Current liabilities:

    

Accounts payable

   $ 74,907     $ 16,358  

Accrued liabilities

     155,806       158,546  

Deferred revenue

     227,816       189,520  

Customer deposits

     161,605       210,320  

Operating lease liabilities

     39,927       29,079  
  

 

 

 

 

 

 

 

Total current liabilities

     660,061       603,823  

Deferred revenue, noncurrent

     40,217       50,525  

Customer deposits, noncurrent

     33,699       81,513  

Debt, noncurrent, net

     —         197,977  

Operating lease liabilities, noncurrent

     220,146       229,800  

Other noncurrent liabilities

     2,297       4,316  
  

 

 

 

 

 

 

 

Total liabilities

     956,420       1,167,954  

Stockholders’ equity:

    

Common stock

     2,027       1,792  

Additional paid-in capital

     7,777,085       6,488,857  

Accumulated other comprehensive loss

     (2,349     (2,745

Accumulated deficit

     (5,485,733     (4,965,354
  

 

 

 

 

 

 

 

Total stockholders’ equity

     2,291,030       1,522,550  
  

 

 

 

 

 

 

 

Total liabilities and stockholders’ equity

   $ 3,247,450     $ 2,690,504  
  

 

 

 

 

 

 

 


Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Years Ended December 31,
   2021   2020

Operating activities

    

Net loss

   $ (520,379   $ (1,166,391

Adjustments to reconcile net loss to net cash provided by (used in) operating activities:

    

Depreciation and amortization

     14,897       13,871  

Stock-based compensation

     778,215       1,270,702  

Deferred income taxes

     43,316       (20,385

Impairment of assets held for sale

     —         674  

Non-cash operating lease expense

     33,821       35,049  

Unrealized and realized loss (gain) from marketable securities, net

     73,311       —    

Other operating activities

     2,722       3,606  

Changes in operating assets and liabilities:

    

Accounts receivable

     (35,237     (108,476

Prepaid expenses and other current assets

     (10,929     (18,565

Other assets

     (3,345     (8,605

Accounts payable

     57,767       (34,681

Accrued liabilities

     15,245       38,505  

Deferred revenue, current and noncurrent

     24,732       (30,905

Customer deposits, current and noncurrent

     (104,944     (230,873

Operating lease liabilities, current and noncurrent

     (32,156     (43,639

Other noncurrent liabilities

     (3,185     3,505  
  

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

     333,851       (296,608

Investing activities

    

Purchases of property and equipment

     (12,627     (12,236

Purchases of marketable securities

     (308,315     —    

Purchases of equity method investments

     —         (2,934

Purchases of alternative investments

     (50,941     —    

Purchases of privately-held securities

     (23,009     —    

Other investing activities

     (3,020     250  
  

 

 

 

 

 

 

 

Net cash used in investing activities

     (397,912     (14,920

Financing activities

    

Proceeds from the issuance of common stock, net of issuance costs

     —         942,529  

Proceeds from issuance of debt, net of issuance costs

     —         199,369  

Principal payments on borrowings

     (200,000     (400,000

Proceeds from the exercise of common stock options

     507,455       298,829  

Repurchase of common stock

     —         (3,777

Other financing activities

     (708     (497
  

 

 

 

 

 

 

 

Net cash provided by financing activities

     306,747       1,036,453  

Effect of foreign exchange on cash, cash equivalents, and restricted cash

     (3,918     1,259  
  

 

 

 

 

 

 

 

Net increase in cash, cash equivalents, and restricted cash

     238,768       726,184  

Cash, cash equivalents, and restricted cash - beginning of period

     2,128,146       1,401,962  
  

 

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash - end of period

   $ 2,366,914     $ 2,128,146  
  

 

 

 

 

 

 

 


Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Non-GAAP Reconciliations

Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages)

 

     Three Months Ended
December 31,
  Years Ended
December 31,
     2021   2020   2021   2020

Loss from operations

   $ (58,943   $ (156,572   $ (411,046   $ (1,173,679

Add: stock-based compensation

     166,907       241,788       778,215       1,270,702  

Add: employer payroll taxes related to stock-based compensation

     16,069       18,933       106,283       39,105  

Add: non-recurring Direct Listing charges

     —         —         —         53,737  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted income from operations

   $ 124,033     $ 104,149     $ 473,452     $ 189,865  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating margin

     29     32     31     17
Adjusted Free Cash Flow (in thousands, except percentages)

 

     Three Months Ended
December 31,
  Years Ended
December 31,
     2021   2020   2021   2020

Net cash provided by (used in) operating activities

   $ 93,427     $ (18,288   $ 333,851     $ (296,608

Less: purchases of property and equipment

     (5,845     (4,511     (12,627     (12,236

Add: cash paid for employer payroll taxes related to stock-based compensation

     16,614       35,792       102,903       36,984  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted free cash flow

   $ 104,196     $ 12,993     $ 424,127     $ (271,860
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted free cash flow margin

     24     4     28     (25 )% 
Adjusted EBITDA (in thousands, except percentages)         
     Three Months Ended
December 31,
  Years Ended
December 31,
     2021   2020   2021   2020

Net loss

   $ (156,188   $ (148,343   $ (520,379   $ (1,166,391

Less: interest income

     (480     (368     (1,607     (4,680

Add: interest expense

     601       1,814       3,640       14,139  

Add: other (income) expense, net

     64,118       (2,082     75,415       (4,111

Add: provision (benefit) for income taxes

     33,006       (7,593     31,885       (12,636

Add: depreciation and amortization

     3,840       3,563       14,897       13,871  

Add: stock-based compensation

     166,907       241,788       778,215       1,270,702  

Add: employer payroll taxes related to stock-based compensation

     16,069       18,933       106,283       39,105  

Add: non-recurring Direct Listing charges

     —         —         —         53,737  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

   $ 127,873     $ 107,712     $ 488,349     $ 203,736  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA margin

     30     33     32     19


Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Adjusted Earnings per Share, Diluted (in thousands, except per share amounts)

 

     Three Months Ended
December 31,
  Years Ended
December 31,
     2021   2020   2021   2020

Net loss attributable to common stockholders

   $ (156,188   $ (148,343   $ (520,379   $ (1,166,391

Less: change in fair value attributable to participating securities

     —         —         —         (5,483
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to common stockholders, diluted

     (156,188     (148,343     (520,379     (1,171,874

Add: stock-based compensation

     166,907       241,788       778,215       1,270,702  

Add: employer payroll taxes related to stock-based compensation

     16,069       18,933       106,283       39,105  

Add: non-recurring Direct Listing charges

     —         —         —         53,737  

Add (Less): income tax effects and adjustments (1)

     18,609       (35,794     (56,037     (53,414
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted net income attributable to common stockholders, diluted

   $ 45,397     $ 76,584     $ 308,082     $ 138,256  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing GAAP net loss per share, diluted

     2,011,764       1,763,514       1,923,617       979,330  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted weighted-average shares used in computing adjusted earnings per share, diluted (2)

     2,324,113       2,212,564       2,323,236       1,494,652  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per share, diluted

   $ 0.02     $ 0.03     $ 0.13     $ 0.09  
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

Income tax effect is based on an estimated long-term annual effective tax rate of 22.2% and 22.1% for the periods ended 2021 and 2020, respectively. The Company’s estimated long-term annual effective tax rate excludes certain non-cash items, such as stock-based compensation, and is used in order to provide consistency across periods by eliminating the effects of certain items, such as changes in the tax valuation allowance.

(2) 

Includes an additional 312.3 million and 399.6 million of dilutive securities for the three and twelve months ended December 31, 2021, respectively, and an additional 449.1 million and 515.3 million of dilutive securities for the three and twelve months ended December 31, 2020, respectively, that are excluded from a GAAP perspective due to the Company’s net loss position.