Business Wire | Aug 12, 2021 07:00AM EDT

Palantir Reports 49% Revenue Growth; US Commercial Revenue Up 90% Y/Y

Aug. 12, 2021

DENVER--(BUSINESS WIRE)--Aug. 12, 2021--Palantir Technologies Inc. (NYSE:PLTR) today announced financial results for the second quarter ended June 30, 2021.

Q2 2021 Highlights

* Total revenue grew 49% year-over-year to $376 million * US commercial revenue grew 90% year-over-year * Closed 62 deals of $1 million or more, of which: 30 deals are $5 million or more 21 deals are $10 million or more * 20 net new customers added in Q2 2021, total customers up 13% quarter-over-quarter * Commercial customer count increased 32% quarter-over-quarter * Cash flow from operations of $23 million, representing a 6% margin * Adjusted free cash flow of $50 million, representing a 13% margin * GAAP net loss per share, diluted of ($0.07) * Adjusted earnings per share, diluted of $0.04

H1 2021 Highlights

* Total revenue grew 49% year-over-year to $717 million * Commercial customer count increased 61% since December 31, 2020 * Cash flow from operations of $140 million, representing a 19% margin * Adjusted free cash flow of $201 million, representing a 28% margin

Q2 2021 Financial Summary

(in thousands, except percentages and per share amounts) Second Quarter 2021

Amount

Revenue $ 375,642

Year-over-year growth 49 %



Amount Margin

Loss from Operations $ (146,148 ) (39 )%

Adjusted Income from Operations $ 116,727 31 %

Cash Flow from Operations $ 22,750 6 %

Adjusted Free Cash Flow $ 49,823 13 %

Net Loss $ (138,580 )

Adjusted Net Income $ 97,955

Adjusted EBITDA $ 121,489 32 %

GAAP Net Loss Per Share, Diluted $ (0.07 )

Adjusted Earnings Per Share, Diluted $ 0.04

Outlook

For Q3 2021, we expect:

* $385 million in revenue. * Adjusted operating margin of 22%.

For full year 2021, we are raising our outlook for:

* Adjusted free cash flow to in excess of $300 million, up from in excess of $150 million.

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 for 2021 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 second quarter ended June 30, 2021 and financial outlook. The live public call can be accessed by registering online at https://event.on24.com/wcc/r/3196394/BE6143CF063C810BC19CA8A0CA2E396E. A replay of the webcast will be available at https://investors.palantir.com following the event.

A slide presentation including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures 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 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 annual report on Form 10-K for the fiscal year ended December 31, 2020 and other filings and reports that we may file from time to time with the SEC, including our quarterly report on Form 10-Q for the quarter ended June 30, 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 salesforce 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 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 and presumes the exercise of all contract options 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.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures adjusted income (loss) from operations which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation and amortization ("adjusted EBITDA"); adjusted net income (loss); and adjusted earnings per share ("EPS"), diluted.

We believe these non-GAAP financial measures 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. 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.

Palantir Technologies Inc. builds and deploys operating systems for the modern enterprise. Additional information is available at https://www.palantir.com.

Palantir Technologies Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Revenue $ 375,642 $ 251,889 $ 716,876 $ 481,216

Cost of revenue ^(1) 90,926 68,410 165,037 132,704

Gross profit 284,716 183,479 551,839 348,512

Operating expenses:

Sales and marketing 162,379 102,518 298,476 201,171 ^(1)

Research and 110,524 86,815 208,995 152,615 development ^(1)

General and 157,961 93,291 304,530 164,056 administrative ^(1)

Total operating 430,864 282,624 812,001 517,842 expenses

Loss from operations (146,148 ) (99,145 ) (260,162 ) (169,330 )

Interest income 372 551 748 3,818

Interest expense (590 ) (5,646 ) (2,430 ) (10,240 )

Change in fair value - (3,683 ) - 10,012 of warrants

Other income 2,125 (1,589 ) (2,769 ) 4,511 (expense), net

Loss beforeprovision (benefit) (144,241 ) (109,512 ) (264,613 ) (161,229 )for income taxes

Provision (benefit) (5,661 ) 943 (2,559 ) 3,500 for income taxes

Net loss $ (138,580 ) $ (110,455 ) $ (262,054 ) $ (164,729 )

Net loss per shareattributable to $ (0.07 ) $ (0.17 ) $ (0.14 ) $ (0.27 )common stockholders,basic

Net loss per shareattributable to $ (0.07 ) $ (0.17 ) $ (0.14 ) $ (0.28 )common stockholders,diluted

Weighted-averageshares of commonstock outstandingused in computing 1,894,606 640,450 1,858,085 616,150 net loss per shareattributable tocommon stockholders,basic

Weighted-averageshares of commonstock outstandingused in computing 1,894,606 640,669 1,858,085 618,635 net loss per shareattributable tocommon stockholders,diluted

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

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Cost of revenue

$

24,029

$

17,832

$

40,006

$

25,900

Sales and marketing

72,008

39,932

129,294

58,395

Research and development

50,630

37,897

88,504

52,929

General and administrative

86,075

32,187

168,669

44,731

Total stock-based compensation expense

$

232,742

$

127,848

$

426,473

$

181,955

^(1) Includes stock-based compensation expense as follows (in thousands):

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Cost of revenue $ 24,029 $ 17,832 $ 40,006 $ 25,900

Sales and marketing 72,008 39,932 129,294 58,395

Research and development 50,630 37,897 88,504 52,929

General and administrative 86,075 32,187 168,669 44,731

Total stock-based $ 232,742 $ 127,848 $ 426,473 $ 181,955 compensation expense

Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30,

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

2,341,156

$

2,011,323

Restricted cash

36,750

37,285

Accounts receivable

242,998

156,932

Prepaid expenses and other current assets

41,648

51,889

Total current assets

2,662,552

2,257,429

Property and equipment, net

24,824

29,541

Restricted cash, noncurrent

61,914

79,538

Operating lease right-of-use assets

209,243

217,075

Other assets

117,135

106,921

Total assets

$

3,075,668

$

2,690,504

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable

$

30,914

$

16,358

Accrued liabilities

166,252

158,546

Deferred revenue

194,511

189,520

Customer deposits

257,747

210,320

Operating lease liabilities

33,162

29,079

Total current liabilities

682,586

603,823

Deferred revenue, noncurrent

40,518

50,525

Customer deposits, noncurrent

62,732

81,513

Debt, noncurrent, net

-

197,977

Operating lease liabilities, noncurrent

216,630

229,800

Other noncurrent liabilities

4,239

4,316

Total liabilities

1,006,705

1,167,954

Stockholders' equity:

Common stock

1,937

1,792

Additional paid-in capital

7,294,369

6,488,857

Accumulated other comprehensive income (loss)

65

(2,745

)

Accumulated deficit

(5,227,408

)

(4,965,354

)

Total stockholders' equity

2,068,963

1,522,550

Total liabilities and stockholders' equity

$

3,075,668

$

2,690,504

Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

June 30, December 31,

2021 2020

Assets

Current assets:

Cash and cash equivalents $ 2,341,156 $ 2,011,323

Restricted cash 36,750 37,285

Accounts receivable 242,998 156,932

Prepaid expenses and other current assets 41,648 51,889

Total current assets 2,662,552 2,257,429

Property and equipment, net 24,824 29,541

Restricted cash, noncurrent 61,914 79,538

Operating lease right-of-use assets 209,243 217,075

Other assets 117,135 106,921

Total assets $ 3,075,668 $ 2,690,504

Liabilities and Stockholders' Equity

Current liabilities:

Accounts payable $ 30,914 $ 16,358

Accrued liabilities 166,252 158,546

Deferred revenue 194,511 189,520

Customer deposits 257,747 210,320

Operating lease liabilities 33,162 29,079

Total current liabilities 682,586 603,823

Deferred revenue, noncurrent 40,518 50,525

Customer deposits, noncurrent 62,732 81,513

Debt, noncurrent, net - 197,977

Operating lease liabilities, noncurrent 216,630 229,800

Other noncurrent liabilities 4,239 4,316

Total liabilities 1,006,705 1,167,954

Stockholders' equity:

Common stock 1,937 1,792

Additional paid-in capital 7,294,369 6,488,857

Accumulated other comprehensive income (loss) 65 (2,745 )

Accumulated deficit (5,227,408 ) (4,965,354 )

Total stockholders' equity 2,068,963 1,522,550

Total liabilities and stockholders' equity $ 3,075,668 $ 2,690,504

Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six Months Ended June 30,

2021

2020

Operating activities

Net loss

$

(262,054

)

$

(164,729

)

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

Depreciation and amortization

7,999

7,793

Stock-based compensation

426,473

181,955

Change in fair value of warrants

-

(10,012

)

Non-cash operating lease expense

14,435

19,831

Other operating activities

560

3,633

Changes in operating assets and liabilities:

Accounts receivable

(83,883

)

(56,583

)

Prepaid expenses and other current assets

12,770

(3,220

)

Other assets

(9,522

)

(9,937

)

Accounts payable

14,589

(35,012

)

Accrued liabilities

9,070

(30,366

)

Deferred revenue, current and noncurrent

(3,679

)

19,645

Customer deposits, current and noncurrent

28,668

(124,434

)

Operating lease liabilities, current and noncurrent

(15,795

)

(25,815

)

Other noncurrent liabilities

-

921

Net cash provided by (used in) operating activities

139,631

(226,330

)

Investing activities

Purchases of property and equipment

(1,405

)

(5,945

)

Proceeds from the sale of assets held for sale

-

250

Net cash used in investing activities

(1,405

)

(5,695

)

Financing activities

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

-

542,922

Proceeds from issuance of debt, net of issuance costs

-

149,683

Principal payments on borrowings

(200,000

)

(250,000

)

Proceeds from the exercise of common stock options

376,688

28,824

Repurchase of common stock

-

(3,777

)

Other financing activities

(1,744

)

(377

)

Net cash provided by financing activities

174,944

467,275

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

(1,496

)

(197

)

Net increase in cash, cash equivalents, and restricted cash

311,674

235,053

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

2,128,146

1,401,962

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

$

2,439,820

$

1,637,015

Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

Six Months Ended June 30, 2021 2020

Operating activities

Net loss $ (262,054 ) $ (164,729 )

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

Depreciation and amortization 7,999 7,793

Stock-based compensation 426,473 181,955

Change in fair value of warrants - (10,012 )

Non-cash operating lease expense 14,435 19,831

Other operating activities 560 3,633

Changes in operating assets and liabilities:

Accounts receivable (83,883 ) (56,583 )

Prepaid expenses and other current assets 12,770 (3,220 )

Other assets (9,522 ) (9,937 )

Accounts payable 14,589 (35,012 )

Accrued liabilities 9,070 (30,366 )

Deferred revenue, current and noncurrent (3,679 ) 19,645

Customer deposits, current and noncurrent 28,668 (124,434 )

Operating lease liabilities, current and (15,795 ) (25,815 )noncurrent

Other noncurrent liabilities - 921

Net cash provided by (used in) operating 139,631 (226,330 )activities



Investing activities

Purchases of property and equipment (1,405 ) (5,945 )

Proceeds from the sale of assets held for sale - 250

Net cash used in investing activities (1,405 ) (5,695 )



Financing activities

Proceeds from the issuance of common stock, net - 542,922 of issuance costs

Proceeds from issuance of debt, net of issuance - 149,683 costs

Principal payments on borrowings (200,000 ) (250,000 )

Proceeds from the exercise of common stock 376,688 28,824 options

Repurchase of common stock - (3,777 )

Other financing activities (1,744 ) (377 )

Net cash provided by financing activities 174,944 467,275

Effect of foreign exchange on cash, cash (1,496 ) (197 )equivalents, and restricted cash

Net increase in cash, cash equivalents, and 311,674 235,053 restricted cash

Cash, cash equivalents, and restricted cash - 2,128,146 1,401,962 beginning of period

Cash, cash equivalents, and restricted cash - $ 2,439,820 $ 1,637,015 end of period

Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands)

(unaudited)

Non-GAAP Reconciliations

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

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Loss from operations

$

(146,148

)

$

(99,145

)

$

(260,162

)

$

(169,330

)

Add: stock-based compensation

232,742

127,848

426,473

181,955

Add: employer payroll taxes related to stock-based compensation

30,133

-

66,999

-

Adjusted income from operations

$

116,727

$

28,703

$

233,310

$

12,625

Adjusted operating margin

31

%

11

%

33

%

3

%

Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands)

(unaudited)



Non-GAAP Reconciliations



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

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Loss from operations $ (146,148 ) $ (99,145 ) $ (260,162 ) $ (169,330 )

Add: stock-based 232,742 127,848 426,473 181,955 compensation

Add: employer payrolltaxes related to 30,133 - 66,999 - stock-basedcompensation

Adjusted income from $ 116,727 $ 28,703 $ 233,310 $ 12,625 operations

Adjusted operating 31 % 11 % 33 % 3 %margin

Adjusted Free Cash Flow (in thousands, except percentages)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net cash provided by (used in) operating activities

$

22,750

$

60,854

$

139,631

$

(226,330

)

Less: purchases of property and equipment

(697

)

(2,929

)

(1,405

)

(5,945

)

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

27,770

-

62,572

-

Adjusted free cash flow

$

49,823

$

57,925

$

200,798

$

(232,275

)

Adjusted free cash flow margin

13

%

23

%

28

%

(48

)%

Adjusted Free Cash Flow (in thousands, except percentages)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Net cash provided by(used in) operating $ 22,750 $ 60,854 $ 139,631 $ (226,330 )activities

Less: purchases of (697 ) (2,929 ) (1,405 ) (5,945 )property and equipment

Add: cash paid foremployer payroll taxes 27,770 - 62,572 - related to stock-basedcompensation

Adjusted free cash flow $ 49,823 $ 57,925 $ 200,798 $ (232,275 )

Adjusted free cash flow 13 % 23 % 28 % (48 )margin %

Adjusted EBITDA (in thousands,except percentages)

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net Loss

$

(138,580

)

$

(110,455

)

$

(262,054

)

$

(164,729

)

Less: interest income

(372

)

(551

)

(748

)

(3,818

)

Add: interest expense

590

5,646

2,430

10,240

Less: change in fair value of warrants

-

3,683

-

(10,012

)

Add: other (income) expense, net

(2,125

)

1,589

2,769

(4,511

)

Add: provision (benefit) for income taxes

(5,661

)

943

(2,559

)

3,500

Add: depreciation and amortization

4,762

4,122

7,999

7,793

Add: stock-based compensation

232,742

127,848

426,473

181,955

Add: employer payroll taxes related to stock-based compensation

30,133

-

66,999

-

Adjusted EBITDA

$

121,489

$

32,825

$

241,309

$

20,418

Adjusted EBITDA margin

32

%

13

%

34

%

4

%

Adjusted EBITDA (in thousands, except percentages)

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Net Loss $ (138,580 ) $ (110,455 ) $ (262,054 ) $ (164,729 )

Less: interest (372 ) (551 ) (748 ) (3,818 )income

Add: interest 590 5,646 2,430 10,240 expense

Less: change in fair - 3,683 - (10,012 )value of warrants

Add: other (income) (2,125 ) 1,589 2,769 (4,511 )expense, net

Add: provision(benefit) for income (5,661 ) 943 (2,559 ) 3,500 taxes

Add: depreciation 4,762 4,122 7,999 7,793 and amortization

Add: stock-based 232,742 127,848 426,473 181,955 compensation

Add: employerpayroll taxesrelated to 30,133 - 66,999 - stock-basedcompensation

Adjusted EBITDA $ 121,489 $ 32,825 $ 241,309 $ 20,418

Adjusted EBITDA 32 % 13 % 34 % 4 %margin

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

Three Months Ended June 30,

Six Months Ended June 30,

2021

2020

2021

2020

Net loss attributable to common stockholders

$

(138,580

)

$

(110,455

)

$

(262,054

)

$

(164,729

)

Less: change in fair value attributable to participating securities

-

(171

)

-

(7,479

)

Net loss attributable to common stockholders, diluted

(138,580

)

(110,626

)

(262,054

)

(172,208

)

Add: stock-based compensation

232,742

127,848

426,473

181,955

Add: employer payroll taxes related to stock-based compensation

30,133

-

66,999

-

Less: income tax effect related to adjustments (1)

(26,340

)

(4,052

)

(50,812

)

(4,580

)

Adjusted net income attributable to common stockholders, diluted

$

97,955

$

13,170

$

180,606

$

5,167

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

1,894,606

640,669

1,858,085

618,635

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

2,310,731

920,993

2,323,271

927,603

Adjusted earnings per share, diluted

$

0.04

$

0.01

$

0.08

$

0.01

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

Three Months Ended Six Months Ended June 30, June 30,

2021 2020 2021 2020

Net lossattributable to $ (138,580 ) $ (110,455 ) $ (262,054 ) $ (164,729 )common stockholders

Less: change in fairvalue attributable - (171 ) - (7,479 )to participatingsecurities

Net lossattributable to (138,580 ) (110,626 ) (262,054 ) (172,208 )common stockholders,diluted

Add: stock-based 232,742 127,848 426,473 181,955 compensation

Add: employerpayroll taxesrelated to 30,133 - 66,999 - stock-basedcompensation

Less: income taxeffect related to (26,340 ) (4,052 ) (50,812 ) (4,580 )adjustments ^(1)

Adjusted net incomeattributable to $ 97,955 $ 13,170 $ 180,606 $ 5,167 common stockholders,diluted

Weighted-averageshares used incomputing GAAP net 1,894,606 640,669 1,858,085 618,635 loss per share,diluted

Adjustedweighted-averageshares used in 2,310,731 920,993 2,323,271 927,603 computing adjustedearnings per share,diluted ^(2)

Adjusted earnings $ 0.04 $ 0.01 $ 0.08 $ 0.01 per share, diluted

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(1) Income tax effect is based on long-term estimated annual effective tax rates of 22.2% and 22.1% for the periods ended 2021 and 2020, respectively.

(2) Includes an additional 416 million and 465 million dilutive securities for the three and six months ended June 30, 2021, respectively, and an additional 280 million and 309 million dilutive securities for the three and six months ended June 30, 2020, respectively, that are excluded from a GAAP perspective due to the Company's net loss position.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005243/en/

CONTACT: Investor Relations Rodney Nelson investors@palantir.com

CONTACT: Media Lisa Gordon media@palantir.com