Form 8-K Palantir Technologies For: Feb 16

February 16, 2021 7:18 AM

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported)

February 16, 2021

 

 

Palantir Technologies Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   001-39540   68-0551851

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(I.R.S. Employer

Identification Number)

1555 Blake Street, Suite 250

Denver, Colorado 80202

(Address of principal executive offices and zip code)

(720) 358-3679

(Registrant’s telephone number, including area code)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

symbol(s)

 

Name of each exchange

on which registered

Class A Common Stock, par value $0.001 per share   PLTR   New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02 – Results of Operations and Financial Condition

On February 16, 2021, Palantir Technologies Inc. (the “Company”) issued a press release announcing its financial results for the fiscal quarter and year ended December 31, 2020. A copy of the press release is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein.

The information furnished under this Item 2.02 and in the accompanying Exhibit 99.1 shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act regardless of any general incorporation language in such filing, unless expressly incorporated by specific reference in such filing.

Item 9.01 – Financial Statements and Exhibits

(d) Exhibits

 

Exhibit
Number

  

Description

99.1    Press release, dated February 16, 2021


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: February 16, 2021

 

 

  Palantir Technologies Inc.

 

 

 

  By:  

/s/ Alexander C. Karp

 

 

 

 

 

  Alexander C. Karp

 

 

 

 

 

  Chief Executive Officer

Exhibit 99.1

 

LOGO

Palantir Reports Revenue Growth of 47% for Full Year 2020, Expects Q1 2021 Revenue Growth of 45%

2/16/2021

Summary

 

   

$1.1 billion in revenue for full year 2020, up 47% year-over-year

 

   

$322 million in revenue for Q4 2020, up 40% year-over-year

 

   

New contracts in Q4 2020 include Rio Tinto, PG&E, bp, U.S. Army, U.S. Air Force, FDA, and NHS

 

   

Expects Q1 2021 revenue growth of 45% year-over-year

Full Year 2020 Financial Results

In 2020, we generated $1.1 billion in revenue, up 47% year-over-year.

Our average revenue per customer was $7.9 million, up 41% year-over-year. Our average revenue from our top 20 customers was $33.2 million, up 34% year-over-year.

The number of customers generating more than $1 million in annual revenue grew 32% year-over-year. The number of customers generating more than $5 million in annual revenue grew 54% year-over-year. The number of customers generating more than $10 million in annual revenue grew 50% year-over-year.

Q4 2020 Financial Results

In Q4 2020, we generated $322 million in revenue, up 40% year-over-year.

We incurred a loss from operations of $156.6 million, which includes $241.8 million in stock-based compensation and $18.9 million in related employer payroll taxes.


Our income from operations was $104.1 million, after adjusting for stock-based compensation and related employer payroll taxes.

In Q4 2020, we signed 21 contracts each worth $5 million or more in total contract value, including 12 contracts each worth $10 million or more in total contract value.

Outlook

For full year 2021, we continue to expect:

 

   

Year-over-year revenue growth of greater than 30%.

For Q1 2021, we expect:

 

   

Year-over-year revenue growth of 45%.

 

   

Adjusted operating margin of 23%.

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 fiscal year ended December 31, 2020 and financial outlook. The live public call can be accessed by registering online at https://event.on24.com/wcc/r/2947836/5C123DA27C8C4F9CBFBC27AC3FEABE81. Following the call, a replay will be available at (888) 869-1189 or (706) 643-5902 until midnight (ET) on February 23, 2021.

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.

Non-GAAP Financial Measures

This press release and the accompanying tables contain the non-GAAP financial measures income (loss) from operations excluding stock-based compensation, related employer payroll taxes, and non-recurring direct listing charges (also referred to as “adjusted income (loss) from operations”) and adjusted operating margin.

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 expenses primarily related to the direct listing, as they are a one-time nonrecurring charge, and 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. 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.

Additional Definitions

For the purpose of this press release, total contract value presumes the exercise of all contract options and no termination of contracts; however, the majority of our contracts are subject to termination for convenience provisions and there can be no guarantee that contracts are not terminated or that contract options will be exercised.


Forward-Looking Statements

This press release contains “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 and partnerships), market trends and market size, opportunities (including growth opportunities), 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, 2020 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, 2020. In particular, the following factors, among others, could cause 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 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 complexity and lengthy implementation process for our platforms; 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.


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 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.

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 share and per share amounts)

(unaudited)

 

     Three Months Ended December 31,   Years Ended December 31,
     2020   2019   2020   2019

Revenue

   $ 322,091   $ 229,358   $ 1,092,673   $ 742,555

Cost of revenue(1)

     70,503     75,902     352,547     242,373
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross profit

     251,588     153,456     740,126     500,182

Operating expenses:

        

Sales and marketing(1)

     147,619     112,865     683,701     450,120

Research and development(1)

     94,130     75,835     560,660     305,563

General and administrative(1)

     166,411     112,207     669,444     320,943
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total operating expenses

     408,160     300,907     1,913,805     1,076,626
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss from operations

     (156,572     (147,451     (1,173,679     (576,444

Interest income

     368     2,137     4,680     15,090

Interest expense

     (1,814     (2,666     (14,139     (3,061

Change in fair value of warrants

     —         (2,746     811     (3

Other income (expense), net

     2,082     (4,711     3,300     (2,853
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loss before provision (benefit) for income taxes

     (155,936     (155,437     (1,179,027     (567,271

Provision (benefit) for income taxes

     (7,593     3,890     (12,636     12,375
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss

   $ (148,343   $ (159,327   $ (1,166,391   $ (579,646
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, basic

   $ (0.08   $ (0.29   $ (1.19   $ (1.02
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss per share attributable to common stockholders, diluted

   $ (0.08   $ (0.29   $ (1.20   $ (1.02
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

     1,763,513,922     584,722,735     977,721,736     576,958,560

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

     1,763,513,922     584,722,735     979,330,067     576,958,560

 

(1) 

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

 

     Three Months Ended
December 31,
   Years Ended
December 31,
     2020    2019    2020    2019

Cost of revenue

   $ 19,342    $ 11,384    $ 139,627    $ 27,904

Sales and marketing

     75,852      22,973      398,205      79,215

Research and development

     47,365      18,796      357,063      67,933

General and administrative

     99,229      24,167      375,807      66,918
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 

Total stock-based compensation expense

   $ 241,788    $ 77,320    $ 1,270,702    $ 241,970
  

 

 

 

  

 

 

 

  

 

 

 

  

 

 

 


Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

     As of December 31,
     2020   2019

Assets

    

Current assets:

    

Cash and cash equivalents

   $ 2,011,323   $ 1,079,154

Restricted cash

     37,285     52,099

Accounts receivable

     156,932     50,315

Prepaid expenses and other current assets

     51,889     32,585
  

 

 

 

 

 

 

 

Total current assets

     2,257,429     1,214,153

Property and equipment, net

     29,541     31,589

Restricted cash, noncurrent

     79,538     270,709

Operating lease right-of-use assets

     217,075     —    

Other assets

     106,921     77,574
  

 

 

 

 

 

 

 

Total assets

   $ 2,690,504   $ 1,594,025
  

 

 

 

 

 

 

 

Liabilities, Redeemable Convertible and Convertible Preferred Stock, and Stockholders’ Equity (Deficit)

 

Current liabilities:

    

Accounts payable

   $ 16,358   $ 51,735

Accrued liabilities

     158,546     126,620

Deferred revenue

     189,520     186,105

Customer deposits

     210,320     364,138

Operating lease liabilities

     29,079     —    
  

 

 

 

 

 

 

 

Total current liabilities

     603,823     728,598

Deferred revenue, noncurrent

     50,525     77,030

Customer deposits, noncurrent

     81,513     167,538

Debt, noncurrent, net

     197,977     396,065

Operating lease liabilities, noncurrent

     229,800     —    

Other noncurrent liabilities

     4,316     78,205
  

 

 

 

 

 

 

 

Total liabilities

     1,167,954     1,447,436
  

 

 

 

 

 

 

 

Redeemable convertible preferred stock

     —         33,569

Convertible preferred stock

     —         2,093,662

Stockholders’ equity (deficit):

    

Common stock

     1,792     588

Additional paid-in capital

     6,488,857     1,857,331

Treasury stock

     —         (38,895

Accumulated other comprehensive loss

     (2,745     (703

Accumulated deficit

     (4,965,354     (3,798,963
  

 

 

 

 

 

 

 

Total stockholders’ equity (deficit)

     1,522,550     (1,980,642
  

 

 

 

 

 

 

 

Total liabilities, redeemable convertible and convertible preferred stock, and stockholders’ equity (deficit)

   $ 2,690,504   $ 1,594,025
  

 

 

 

 

 

 

 


Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

     Years Ended December 31,
     2020   2019

Operating activities

    

Net loss

   $ (1,166,391   $ (579,646

Adjustments to reconcile net loss to net cash used in operating activities:

    

Depreciation and amortization

     13,871     12,255

Stock-based compensation

     1,270,702     241,970

Change in fair value of warrants

     (811     3

Impairment of assets

     674     23,407

Non-cash operating lease expense

     35,049     —    

Other operating activities

     4,417     2,769

Changes in operating assets and liabilities:

    

Accounts receivable

     (108,476     (23,905

Prepaid expenses and other current assets

     (18,565     18,806

Other assets

     (28,990     (29,447

Accounts payable

     (34,681     23,424

Accrued liabilities

     38,505     3,733

Deferred revenue, current and noncurrent

     (30,905     (134,396

Customer deposits, current and noncurrent

     (230,873     279,226

Operating lease liabilities, current and noncurrent

     (43,639     —    

Deferred rent

     —         (3,414

Other noncurrent liabilities

     3,505     —    
  

 

 

 

 

 

 

 

Net cash used in operating activities

     (296,608     (165,215

Investing activities

    

Purchases of property and equipment

     (12,236     (13,096

Proceeds from the sale of assets held for sale

     250     —    

Purchase of equity method investment

     (2,934     (25,868

Return of capital from equity method investment

     —         17,000
  

 

 

 

 

 

 

 

Net cash used in investing activities

     (14,920     (21,964

Financing activities

    

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

     942,529     100,000

Proceeds from issuance of debt, net of issuance costs

     199,369     544,413

Principal payments on borrowings

     (400,000     (150,000

Proceeds from the exercise of common stock options

     298,829     16,897

Repurchase of common stock

     (3,777     (11,202

Proceeds from the sale of redeemable convertible preferred stock

     —         7,500

Redemption of redeemable convertible preferred stock

     —         (168,000

Repurchase of convertible preferred stock

     —         (13,873

Other financing activities

     (497     (1,202
  

 

 

 

 

 

 

 

Net cash provided by financing activities

     1,036,453     324,533

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

     1,259     (2,227
  

 

 

 

 

 

 

 

Net increase in cash, cash equivalents, and restricted cash

     726,184     135,127

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

     1,401,962     1,266,835
  

 

 

 

 

 

 

 

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

   $ 2,128,146   $ 1,401,962
  

 

 

 

 

 

 

 


Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(in thousands, except percentages)

(unaudited)

Non-GAAP Reconciliation

Income (Loss) from Operations, Excluding Stock-Based Compensation, Related Employer Payroll Taxes, and Non-Recurring Direct Listing Charges (“Adjusted Income (Loss) from Operations”)

 

     Three Months Ended
December 31,
  Twelve Months Ended
December 31,
     2020   2019   2020   2019

Loss from operations

   $ (156,572   $ (147,451   $ (1,173,679   $ (576,444

Add: stock-based compensation

     241,788     77,320       1,270,702     241,970  

Add: employer payroll taxes related to stock-based compensation (1)

     18,933     —         39,105     —    

Add: non-recurring direct listing charges (1)

     —         —         53,737     —    
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations, excluding stock-based compensation, related employer payroll taxes, and non-recurring direct listing charges

   $ 104,149   $ (70,131   $ 189,865   $ (334,474
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted operating margin

     32     (31 )%      17     (45 )% 
  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) 

Related employer payroll taxes and non-recurring direct listing charges were immaterial and as such were excluded in periods prior to and after Q3 2020.

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