Q4 2023 Palantir Technologies Inc Earnings Call

Operator: 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 2024 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.

We'll be discussing the results announced in our press release issued after the market close 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 'twenty 'twenty four 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 S. E filings, we undertake no obligation to update forward looking statements, except as required by law.

Operator: 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.

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.

Ryan Taylor: 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 SEC filings 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.

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 our SEC filings are available on our Investor Relations website at investors at <unk> Dot com over.

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, Sean think our Chief Technology Officer, Dave Glaser, Chief Financial Officer, and Ryan Taylor, Chief revenue Officer, and Chief Legal Officer.

Ryan Taylor: I'll now turn it over to Ryan to start the call.

Ryan Taylor: 2023 was a tremendous year of opportunity and growth for our company with U S. Commercial at the forefront, which was meaningfully driven by a P is the product and boot camps as the go to market motion.

Ryan Taylor: 2023 was a tremendous year of opportunity and growth for our company, with U.S. commercial at the forefront, which was meaningfully driven by AIP as the product and BootCamps as the go-to-market movement. We closed out the year with $608 million in fourth-quarter revenue, representing 20% year over year and 9% sequential growth. Our commercial business surpassed $1 billion in revenue over the last 12 months, a noteworthy milestone, and our fourth quarter commercial revenue grew 32% year over year. AIP and bootcamps are accelerating our business, particularly in the U.S., where fourth quarter revenue grew 70% year-over-year, demonstrating a significantly expanding addressable market. In October, we set a goal of executing 500 AIP bootcamps within one year. We have already blown that goal out of the water, having completed more than 560 boot camps across 465 organizations today. We are deploying AIP to implement hundreds of real, tangible use cases in production for our. One bootcamp attendee remarked, quote, "what your team did in just two days was incredible." We can already think of 100 use cases for this. While another said, quote, it seems there are endless solutions. It seems there's nothing Palantir cannot do.

Ryan Taylor: We closed out the year with $608 million in fourth quarter revenue, representing 20% year over year, a 9% sequential growth.

Ryan Taylor: Our commercial business surpassed $1 billion in revenue over the last 12 months a noteworthy milestone.

Ryan Taylor: And our fourth quarter commercial revenue grew 32% year over year.

Ryan Taylor: AIP and boot camps are accelerating our business, particularly in U S commercial where fourth quarter revenue grew 70% year over year evidencing, our significantly expanding addressable market.

Ryan Taylor: In October we set a goal of executing 500, AIP boot camps within one year.

Ryan Taylor: We have already blown that go out of the water, having completed more than 560 boot camps across 465 organizations to date.

Ryan Taylor: We are deploying AIP to implement hundreds of real tangible use cases in production for our customers.

Ryan Taylor: One bootcamp attendee remarked quote what your team did in just two days was incredible we can already think of 100 use cases for this while another said quote it seems there are endless solutions. It seems there's nothing pound here cannot do.

Ryan Taylor: When combining llm's with foundry through AIP, the ability to deploy use cases becomes much more widely accessible so the addressable market expands considerably.

Ryan Taylor: When combining LLMs with Soundry through AIP, the ability to deploy use cases becomes much more widely accessible, so the addressable market expands considerably. We're seeing initial momentum as a result of that expansion, while also still being at the starting line in the journey to capture them.

Ryan Taylor: We're seeing initial momentum as a result of that expansion, while also still being at the starting line and the journey to capture that market.

Ryan Taylor: In our U.S. commercial business, the expanding addressable market driven by AIP is propelling growth both through new customer acquisitions and expansions with existing customers. I've never before seen the level of customer enthusiasm and demand that we are currently seeing from AIP and U.S. commercial customers. With regard to new customer acquisition, the expanding addressable market is reflected in the greater scale of the top of our sales.

In our U S commercial business, the expanding addressable market driven by AIP is propelling growth, both through new customer acquisitions and expansions with existing customers I've never before seen the level of customer enthusiasm and demand that we are currently seen from AIP and U S commercial.

Ryan Taylor: With regard to new customer acquisition, the expanding addressable market as reflected in the greater scale of the top of our sales funnel.

Ryan Taylor: And now we're doubling down on how we're converting bootcamps to enterprise. We're already seeing evidence of bootcamps helping to significantly compress sales cycles and accelerate the rate of new customer acquisition, which rose to 22% sequentially for U.S. commercial in Q4 versus 12% and 4% in Q3 and Q2, respectively. And we more than doubled the number of US commercial deals with TCV of $1 million or more from the fourth quarter of 2022 to 2025. We're also seeing a meaningful increase in our U.S. commercial TCV on a dollar-weighted duration basis, which is up 107 percent year-over-year and 42 percent sequentially.

Ryan Taylor: And now we're doubling down on how we're converting boot camps to enterprise deals.

We're already seeing evidence of boot camps, helping to significantly compressed sales cycles and accelerate the rate of new customer acquisition, which rose to 22% sequentially for U S. Commercial in Q4 versus 12% and 4% in Q3 and Q2, respectively and.

Ryan Taylor: And we more than doubled the number of U S commercial deals with T. C V of $1 million or more from the fourth quarter in 2022 to 2023.

Ryan Taylor: We're also seeing a meaningful increase in our U S. Commercial T. C V on a dollar weighted duration basis, which is up 107% year over year and 42% sequentially.

Ryan Taylor: We signed a multitude of U S commercial deals last quarter just to name a few.

Ryan Taylor: We signed a multitude of U.S. commercial deals last quarter, just to name a few. We signed deals worth over $25 million each with one of the largest car rental companies, one of the largest telecommunication companies, and one of the largest pharmaceutical and biotechnology corporations in the world. And then we also signed deals for over $10 million each with an American consumer packaged goods holding company, an American automotive seat and electrical systems manufacturer, a comprehensive health network in the Midwest, and a large-scale battery manufacturer. In addition, we signed deals for over $5 million each with an American bankholding company, a horse racing regulatory organization, one of the world's largest equipment rental companies, and one of the largest independent non-profit cooperatives in the quick service restaurant industry Out of these deals, we're seeing several archetypes emerge as a result of AI. First is the new customer who attends a boot camp and signs an enterprise contract shortly thereafter.

Ryan Taylor: We signed deals over $25 million each with one of the largest car rental companies one of the largest telecommunication companies and one of the largest pharmaceutical and biotechnology corporations in the World and then we also signed deals over $10 million each with an American consumer packaged goods holding company, an American automotive seat and electrical.

Ryan Taylor: Tim's manufacturer, a comprehensive health network in the Midwest and a large scale battery manufacturer.

Ryan Taylor: In addition, we signed deals over $5 million, each with an American bank holding company, a horseracing regulatory organization, one of the world's largest equipment rental companies and one of the largest independent nonprofit cooperatives in the quick service restaurant industry and these are just a few of the examples.

Ryan Taylor: Out of these deals were seeing several archetypes emerge as a result of AIP.

Ryan Taylor: First is the new customer who tends a bootcamp and signs in enterprise contracts shortly after.

Ryan Taylor: For instance, an American cable television provider signed a nearly $3 million deal following cold outreach on LinkedIn that led to a five-day boot camp, then an enterprise agreement, all in the span of last quarter. Then there's AIP-driven conversions of ongoing pilots. Following a two-year prospecting effort, a large American consumer packaged goods holding company agreed to a pilot, during which AIP was also introduced, then converted in December to a five-year, $19 million contract. Then there are AIP-driven expansions in key existing accounts, including one of the world's largest telecommunication companies, where we demonstrated speed to value at boot camps by delivering new use cases on top of the existing ontology in as little as 24 hours, with the results contributing to an agreement for a multi-million dollar expansion of our existing contract.

Ryan Taylor: For instance, in American cable TV provider signed a nearly 3 million dollar deal following cold outreach on Linkedin that led to a five day boot camp than an enterprise agreement all in the span of last quarter, then theres AIP driven conversions of ongoing pilots.

Following a two year prospecting effort, a large American consumer packaged goods holding company agreed to a pilot during which AAP was also introduced then converted in December to a five year 19 million dollar contract.

Ryan Taylor: Then also theres AIP driven expansions in key existing accounts, including one of the world's largest telecommunications companies, where we demonstrated speed to value at boot camps by delivering new use cases on top of the existing ontology in as little as 24 hours.

With the results contributing to an agreement for a multimillion dollar expansion of our existing contract.

Ryan Taylor: Within our international commercial business AIP is solidifying our long standing partnerships with existing customers, particularly in continental Europe, while also driving pockets of growth in select markets. This includes the renewal of our long standing partnership with Novartis.

Ryan Taylor: Within our international commercial business, AIP is solidifying our longstanding partnerships with existing customers, particularly in continental Europe, while also driving pockets of growth in select markets. This includes the renewal of our longstanding partnership with Novartis, a five-year renewal with one of the largest European vehicle manufacturers, and a five-year renewal of our partnership with Swiss. In addition to boot camps, we are deepening distribution channels to more rapidly seize opportunities in certain regions, including Japan.

Ryan Taylor: A five year renewal with one of the largest European vehicle manufacturers and a five year renewal of our partnership with Swiss re.

Ryan Taylor: In addition to boot camps, we are deepening distribution channels to more rapidly seize opportunities in certain regions, including Japan.

Ryan Taylor: In Q4, we expanded and extended our partnership with Fujitsu to enable them to bring AI and data integration capabilities to their global client. We also signed an agreement with SampoCare to enable delivery of their real data platform to nursing homes and other care facilities. Both of these reflected a culmination of months-long efforts prior to DLQ.

Ryan Taylor: In Q4, we expanded and extended our partnership with Fujitsu to enable them to bring AIP and data integration capabilities to their global client base.

Ryan Taylor: We also signed an expansion with sample care to enable delivery of their real data platform to nursing homes and other care facilities.

Ryan Taylor: Both of these reflected a culmination of months long efforts prior to deal closing.

Ryan Taylor: In our government business, we are actively engaged across all theaters of crisis and conflict. However, the strength of our U.S. government business is not reflected in the fourth quarter results, which remain muted. Some of this is due to the continuing resolution and timing of large potential contract awards, but it's also a function of the department's pace of scaling their AI and software efforts to match the realities of modern combat, particularly with JADC-TV. The Department is responding to great power competition by ramping up investments in America's unique strengths. Sock.

Ryan Taylor: In our government business, we are actively engaged across all theaters of crisis and conflict.

Ryan Taylor: The strength of our U S government business is not reflected in the fourth quarter results, which remain muted. Some of this is due to the continuing resolution and timing of large potential contract awards.

Ryan Taylor: But it's also a function of the department's piece of scaling their AI and software efforts to match the realities of modern combat, particularly with Chad C too.

Ryan Taylor: The department is responding to great power competition by ramping up investments in America's unique strengths software.

Ryan Taylor: We are focused on deploying on the battlefield and in large programs related to JADC2, combined with our rollout of Mission Manager and the First Breakfast initiatives, which is driving innovation in our engagement model with the government and the defense industry. The Army has publicly indicated they anticipate down selection to a single vendor for the next phase of Titan to occur in Q2 of 2024. We also announced the extension of our partnership with the Army to continue operating and enhancing the Army Vantage Platform, which is used for data-driven operations and decision-making. We will continue to onboard partners and demonstrate the value of Mission Manager during this option year to deliver on the Army's multi-vendor ecosystem vision. On the strength of our work on the ground and our software that actually works, we expect a re-acceleration of our U.S. government business in 2024. Conventional wisdom is that government acquisitions are slow and that you need to invest in the programs that the government is buying over a two to three year acquisition cycle. And that's what programs like CD1, AIDP, Vantage, and Titan look like.

Ryan Taylor: We are focused on deploying on the battlefield and enlarge programs related to <unk> combined with our rollout of mission manager and the first breakfast initiatives, which is driving innovation in our engagement model with the government and the defense industrial base.

Ryan Taylor: The Army has publicly indicated they anticipate down selection to a single vendor for the next phase of Titan to occur in Q2 of 2024.

Ryan Taylor: We also announced the extension of our partnership with the Army to continue operating and enhancing the army vantage platform, which is used for data driven operations and decision making.

Ryan Taylor: We will continue to onboard partners and demonstrate the value of mission manager during this option year to deliver on the Army's multi vendor ecosystem vision.

Ryan Taylor: On the strength of our work on the ground and our software that actually works, we expect reacceleration of our U S government business in 2024 conventional wisdom is that government acquisitions are slow and then you need to invest in the programs that the government is buying in a two to three year acquisition cycle.

Ryan Taylor: That's what programs like CD, one a ADP vantage and tightened look like.

But our business has also been driven by urgent acquisitions to meet emergent needs than we predicted and invested in years ahead of time.

Ryan Taylor: But our business has also been driven by urgent acquisitions to meet emergent needs that we predicted and invested in years ahead of time. As the U.S. confronts conflict in three theaters, and as all services seek rapid capabilities to meet those moments, we see substantial opportunity across the department. Turning to our international government business, we are incredibly honored that the NHS chose Palantir to help deliver a federated data platform, awarding us a consumption-based contract with 330 million pounds allocated to improve patient care by bringing together the information needed to plan and deliver care while reducing the administrative burden. Over the past few years, an increasing number of NHS trusts have used the software to reduce the care backlog. For example, at Chelsea and Westminster NHS Foundation Trust, it helped bring down the inpatient waiting list by 28 percent, and operations canceled on the day due to missed preoperative assessments subsequently fell by half.

Ryan Taylor: As the U S confronts conflict in three theaters and is all services seek rapid capabilities to meet those moments, we see substantial opportunity across the department.

Ryan Taylor: Turning to our international government business.

Ryan Taylor: We are incredibly honored that the NHS chose pound here to help deliver a federated data platform.

Ryan Taylor: Awarding us a consumption based contract with 330 million pounds allocated to improve patient care by bringing together the information needed to plan and deliver care, while reducing administrative burden.

Ryan Taylor: Over the past few years, an increasing number of NHS trusts have use the software to reduce the care backlog for.

Ryan Taylor: For example at Chelsea in Westminster NHS Foundation Trust it helps bring down the impatient waiting list by 28% and operations cancelled on the day due to Miss Preoperative assessments subsequently fell by half.

Ryan Taylor: In the fourth quarter. We also received funding from our partner nation related to our ongoing efforts in eastern Europe, which had a substantial impact on our international government results.

Ryan Taylor: In the fourth quarter, we also received funding from a partner nation related to our ongoing efforts in Eastern Europe, which had a substantial impact on our international government resources, recent world events, and global conflict illustrate the utmost importance of Palantir's mission. It's our duty to uphold our founding principles through our continued dedication to our allies in the midst of current events. We don't take this lightly.

Ryan Taylor: Recent world events and global conflicts illustrate the utmost importance upon tiers mission, it's our duty to uphold our founding principles through our continued dedication to our allies in the midst of current events, we don't take this lately.

Ryan Taylor: Last month, we held our board meeting in Tel Aviv, where I saw firsthand our commitment to and support for Israel. While there, we were proud to announce our strategic partnership to supply the Israeli Defense Ministry with technology to aid in addressing the current situation in Israel. My experience there was a humbling reminder of the role we play and the responsibility that we hold.

Ryan Taylor: Last month, we held our board meeting in Tel Aviv, where I saw firsthand, our commitment to and support for Israel.

Ryan Taylor: While there we were proud to announce our strategic partnership to supply the Israeli defense Ministry with technology to aid in addressing the current situation in Israel.

Ryan Taylor: My experience there was a humbling reminder of the role we play and the responsibility that we hold.

Ryan Taylor: Reflecting on 2023, we feel immense pride in the missions we are supporting and in our role shepherding our customers through the ongoing transformation of their enterprises with AIP. This ongoing transformation isn't just limited to our country. I'm proud of the incredible transformation of our enterprise in 2023, and I'm excited about what it will bring in 2024 as we conquer the expanding market. I'll now turn it over to Sean. Thanks, Ryan.

Ryan Taylor: Reflecting on 2023, we feel immense pride in the missions, we are supporting and in our roll shepherding our customers through the ongoing transformation of their enterprises with AARP.

Ryan Taylor: This ongoing transformation isn't just limited to our customers.

Ryan Taylor: I'm proud of the incredible transformation of our enterprise in 2023, and I'm excited about what it will bring in 2024 as we conquer the expanding market.

Ryan Taylor: I'll now turn it over to Sean.

Sean: Thanks Ryan.

Sean: As Ryan mentioned, the expanding addressable market driven by AIP is propelling growth, both through new customer acquisitions and expansions with existing customers. We continue to focus on accelerating the rate of bootcamps with current and prospective customers. From customer feedback, the AI platform meets this moment like none other. AI has radically recalibrated customer expectations for software. Expectations that AIP and Foundry exceed by enabling the elegant integration of humans, software, and AI to deliver operational outcomes quickly. We are focused on the end-to-end problem of value creation, not a small, narrow technical slice. Accordingly, our platforms focus on tools, not tuning, on transforming business processes, not seeking iotas of insight.

Sean: As Ryan mentioned, the expanding addressable market driven by AIP is propelling growth both through new customer acquisitions and expansions with existing customers. We continue to focus on accelerating the rate of boot camps with current and prospective customers from customer feedback. The AI platform meets this moment like none other AI has radically.

Sean: Customer expectations for software expectations at AIP and foundry exceed by enabling the elegant integration of humans software and AI to deliver operational outcomes quickly. We are focused on the end to end problem of value creation, not a small narrow technical slice accordingly, our platforms focus on tools not tuna.

Sean: <unk> on transforming business processes, not seeking iota of insight AIP is the AI powered operating system for the enterprise not a Q&A bought not an agent framework not a way to dabble put away to deliver.

Sean: AIP is the AI-powered operating system for the enterprise. Not a Q&A bot, not an agent framework, not a way to dabble, but a way to deliver. At a recent two-day boot camp with a construction, engineering, and architecture company, our customer developed a production-ready use case that provided $10 million in savings. They used AIP to build an AI-powered disruption manager application that processes production disruption notifications through AIP logic to determine what the best new production plan would be. AIP, wielding a linear optimizer as a tool and using LLMs to parameterize and contextualize the disruption, translates the notification into a clear understanding of the impact on the optimized schedule. AIP Logic and AIP Automate then rerun the optimizer to generate opportunities to respond to disruption. Two days, and $10 million.

Sean: At a recent two day bootcamp with the construction and engineering and architecture company, our customer developed a production ready use case that provided $10 million of savings. They used AIP to build an AI powered disruption manager application that processes production disruption notifications through AIP logic to determine what the best new.

Sean: Production plan would be.

Sean: P wielding a linear optimizer is a tool and using llm's to parameterized and contextualize the disruption translate the notification to a clear understanding of impact on the optimized scheduling.

Sean: AIP logic and AIP automate then rerun the optimizer to generate opportunities to respond to the disruption two days $10 million.

We have covered nearly 200 use cases coming out of all these boot camps and we are just getting started the core theory of value that has driven our product strategy for time maternal is data integration that.

Sean: We've covered nearly 200 use cases coming out of all these boot camps, and we are just getting started. The core theory of value that has driven our product strategy for time eternal is data integration, that bringing new data into an operationally relevant context to expand the complexity, nuance, and surface area of decision-making always produces value. AIP enables us to integrate so many types of new data, video conferences, incident response calls, slack rooms, PDFs, images, video, and audio, and exploit them through the power of LLMs and ontology. So much of the data that defines the process is not actually in the system that runs that process, but instead in conversations, conference calls, videos of the factory floor, or images of a site. What's in the enterprise process system is a lossy, latent representation of this reality.

Sean: That bringing new data into an operationally relevant context to expand the complexity nuance and surface area of decision, making always produces value.

AIP enables us to integrate so many types of new data video conferences incident response costs slack rooms, Pdfs images video audio and exploit them to the power of Llm's an ontology.

Sean: So much of what data define the process is not actually in the system that runs that process, but instead in conversations conference calls videos of the factory floor or images of a site.

Sean: What's in the enterprise process system is a lawsuit Leighton representation of this reality our software always exploited that phenomenon that the truth is out there not in your ERP system or that blessed application.

Sean: Our software always exploited that phenomenon, that the truth is out there, not in your ERP system or that blessed application. With AIP, we are investing in multimodal approaches to compound on this proven value driver and expand the addressable market of use cases within the enterprise. As I've said before, with AI and LLMs, you can't think your way through it.

Sean: With AIP, we are investing in multimodal approach is to compound on this proven value driver and expand the addressable market of use cases within the enterprise.

Sean: As I've said before with AI and Llm's you can't think your way through it you have to get your hands Dirty and work in anger to get use cases into production and AIP. We have built a platform to deliver proof not just proof of concept to our customers and boot camps or the way to flex that strength at AIP country will have many.

Sean: You have to get your hands dirty and work in anger to get use cases into production. In AIP, we have built a platform to deliver proof, not just proofs of concept, to our customers. And boot camps are the way to flex that strength. At AIPCon 3, we'll have many customers on stage showing you their great work. Come taste the pudding.

Summers onstage showing you their great work come taste the pudding.

Sean: Turning to government, Palantir is experiencing its own Amazon.com to AWS moment, taking exquisite first-party technology that supports the largest scale defense tech player and making it available for third parties to build on and with. For example, Gotham, Gaia, Meta Constellation. This is our software. Less well understood and now being commercialized is our software infrastructure. Platforms like Apollo, the capabilities that we had to build over 20 years to enable hundreds of dev teams to independently release 2,500 products and services to nearly 1,000 customer environments, including about 100 air-gapped environments, delivering 90,000 upgrades a week. This infrastructure abstracts away supply chain security, environment heterogeneity, and infrastructure so that developers can be operationally responsible for their services across them all, so they can focus on delivering innovation to the war And that's exactly why the Palantir Government Web Services offering is so compelling.

Sean: Turning to government Pelletier is experiencing its own Amazon dot com to AWS moment, taking exquisite first party technology that supports the largest scale defense tech player and making it available for third parties to build on and win.

Got them Gaia meta constellation this is our software less well understood and now being commercialized as our software infrastructure platforms like Apollo the capabilities that we had to build over 20 years to enable hundreds of Dev teams to independently released 2005 hundred products and services to nearly 1000 customer environments, including about 100.

<unk> Air Gapped environments, delivering 90000 upgrades are weak.

Sean: This infrastructure abstracts away supply chain security environment heterogeneity in infrastructure, so that developers can be operationally responsible for their services across at all so they can focus on delivering innovation to the war fighter.

Sean: And that's exactly why the boundary government web services offering is so compelling $100 billion has been invested by venture capitalists into defense Tech. Since 2021. These companies want to compete on quality not beating back bureaucracy government web services creates a capital and time efficient way to unlock market access for new entrants and <unk>.

Sean: $100 billion has been invested by venture capitalists into defense tech since 2021. These companies want to compete on quality, not beating back bureaucracy. Government Web Services creates a capital and time efficient way to unlock market access for new entrants and incumbents alike. But even beyond defense tech companies, an extended set of these capabilities that we call mission manager are uniquely suited to delivering the capabilities that we have heard all government PMs asking for. Program offices want to pursue multi-vendor, big tent ecosystem acquisition strategies with government owned and managed interfaces. The typical way to pursue this is with a systems integrator, where they are managing the integration with billable hours, constrained by humans. At Palantir, we do this with software as a software integrator.

<unk> alike.

Sean: But even beyond defense tech companies that extended set of these capabilities that we call mission manager are uniquely suited to delivering the capabilities that we have heard all government P. M is asking for a program offices want to pursue multi vendor big tent ecosystem acquisition strategies with government owned and managed interfaces.

Sean: The typical way to pursue this is with the systems integrator, where they are managing the integration with billable hours constrained by humans.

Sean: At <unk>, we do this with software as a software integrator, we see a more significant market opportunity in Michigan manager and government web services over the long term than C to Intel and data platforms alone.

Sean: We see a more significant market opportunity in mission manager and government web services over the long term than C2, Intel, and data platforms alone. We have already launched mission manager projects, starting with the U.S. Army, a customer whose needs and feedback have heavily shaped this offer. We continue to invest in relationships with the defense industrial base to help them bend metal more profitably and efficiently. In their earnings calls, America's prime signal that they're pulling back from getting substantially burned on firm fixed price contracts. This is a giant step in the wrong direction for America. So we want to lean in and help them optimize their supply chains, their production plans, quality, and overall delivery against these contracts that have an enormous opportunity to generate margin for them, but we are also working aggressively with new entrants to start with Foundry as their production software from day zero. M-Day was yesterday.

We have already launched Michigan manage our projects starting with the U S Army, a customer whose needs and feedback have heavily shaped this offering.

Sean: We continue to invest in our relationships with the defense industrial base to help them bend metal more profitably and efficiently in their earnings calls America's Prime signal that theyre pulling back from getting substantially burned on firm fixed price contracts. This is a giant step in the wrong direction for America. So we want to lean in and help them.

Sean: Optimize their supply chains their production plans quality and overall delivery against these contracts that have enormous opportunity to generate margin for them, but.

Sean: But we are also working aggressively with new entrants to start with foundry as their production software from day zero.

Sean: M Day was yesterday, we have no time to waste and mobilize Americas industrial base to ramp production.

Sean: We have no time to waste to mobilize America's industrial base to ramp up production. Finally, our products could not be playing a more central role in real world events. Our AI-enabled platforms are being leveraged maximally to support key US government goals in the Middle East. We have served support to Israel to enable the Israeli Defense Forces and Intelligence Services to leverage Gaia, Gotham, Foundry, and AIP to tackle a growing list of use cases from tactical command and control, visual intelligence, forensics, readiness, and production. At the same time, great power competition with China remains top of mind as we continue to invest in moving more of Palantir's mass west of the international dateline, and we continue to support Ukraine's efforts directly and through allies. When the bat signal goes up, Palantir's Gotham platform and its family of products have always answered the call.

Sean: Finally, our products could not be playing a more central role for real world events. Our AI enabled platforms are being leveraged to maximally to support key U S government goals in the Middle East we have surge support to Israel to enable the Israeli defense forces and intelligence services to leverage Gaia, Gotham foundry and AIP to tackle a growing.

Sean: List of use cases from tactical command and control visual intelligence forensics readiness in production.

Sean: At the same time, great power competition with China remains top of mind as we continue to invest in moving more of Powershares math west of the international Dateline.

Sean: And we continue to support Ukraine's efforts directly and through allies. When the bat signal goes up Powershares Gotham platform and its family of products have always answered the call.

Sean: At the same time monetization of these efforts will take time. The principal reason is that the D. O D is at the very beginning of a long term allocation shift from hardware to software for.

Sean: At the same time, monetizing these efforts will take time. The principal reason is that the DoD is at the very beginning of a long-term allocation shift from hardware to software. For example, the army is spending a mere 0.015% of its budget on command and control software in fiscal year 24.

Sean: For example, the army is spending a mere 0.015% of its budget on command and control software in fiscal year 'twenty four but as we confront crisis and conflict in three theaters. This is changing growth is being driven by the incredible dynamism of the U S commercial market and U S government will follow.

Dave: But as we confront crisis and conflict in three theaters, this is changing. Growth is being driven by the incredible dynamism of the U.S. commercial market, and the U.S. government will follow. With that, I'll hand it over to Dave to talk us through the finances. Thanks, Sean.

With that I'll hand, it over to Dave to talk us through the financials.

Dave Glaser: Thanks, Sean.

Dave: We had an exceptionally strong fourth quarter marked by our outperformance across revenue, profitability, and cash flow. Revenue growth accelerated to 20% year-over-year in Q4 on the back of our U.S. commercial business, which alone grew 70% year-over-year, a result driven by momentum in AIP. Adjusted operating margin continued to expand to 34% in the fourth quarter, highlighting the strong unit economics of our business.

Dave Glaser: Had an exceptionally strong fourth quarter marked by our outperformance across revenue profitability and cash flow.

Dave Glaser: Revenue growth accelerated to 20% year over year in Q4 on the back of our U S commercial business, which alone grew 70% year over year result, driven by momentum in AIP.

Dave Glaser: Adjusted operating margin continued to expand to 34% in the fourth quarter, highlighting the strong unit economics of our business.

Dave Glaser: We beat the high end of our guidance range on both revenue and adjusted operating margin driving an 800 basis point sequential increase to our rule of 40 score from 46 in the third quarter to 54 in the fourth quarter.

Dave: We beat the high-end of our guidance range on both revenue and adjusted operating margin, driving an 800-basis-point sequential increase to our Rule of 40 score from 46 in the third quarter to 54 in the fourth quarter. We also delivered our fifth consecutive quarter of GAP profitability. In 2023, we generated $210 million of Gap Net Income, a $584 million increase from 2022. In the fourth quarter alone, we generated nearly $100 million of Gap Net Income.

We also delivered our fifth consecutive quarter of GAAP profitability.

And 2023 we generated $210 million of GAAP net income of 584 million increase from 2022.

Dave Glaser: In the fourth quarter alone, we generated nearly $100 million you got net income.

Dave Glaser: We also delivered our fourth consecutive quarter of GAAP operating profit generating $120 million of GAAP operating income in 2023 or $281 million increase year over year.

Dave: We also delivered our fourth consecutive quarter of GAAP operating profit, generating $120 million of GAAP operating income in 2023, a $281 million increase year-over-year. Our GAAP Operating Income accelerated in each quarter of last year, and in the fourth quarter alone, GAAP Operating Income increased 65% sequentially to $66 million, our highest quarter ever of GAAP Operating Income. We generated over $300 million in Adjusted Free Cash Flow in the fourth quarter, representing a margin of 50%, and over $730 million of Adjusted Free Cash Flow for the full year. Turning to our global top-line results, fourth quarter revenue accelerated to $608 million, up 20% year-over-year and 9% sequentially.

Dave Glaser: Our GAAP operating profit accelerating each quarter of last year and in the fourth quarter alone GAAP operating income increased 65% sequentially to 66 million, our highest quarter ever of GAAP operating income, we generated over $300 million and adjusted free cash flow in the fourth quarter, representing margin of 50% and over $730 million of adjusted.

Dave Glaser: Free cash flow for the full year.

Dave Glaser: Turning to our global top line results fourth quarter revenue accelerated to $608 million up 20% year over year, and 9% sequentially. We generated 2.23 billion of revenue in 2023, representing a growth rate of 17% year over year we.

Dave: We generated $2.23 billion of revenue in 2023, representing a growth rate of 17% year-over-year. We generated $1.38 billion in total U.S. revenue in 2023, representing a growth rate of 19% year-over-year. Excluding the impact of revenue from strategic commercial contracts, fourth quarter revenue grew 20% year-over-year and 8% sequentially, and full-year revenue grew 20% year-over-year. Customer count increased 35% year-over-year and 10% sequentially to 497 customers. Revenue from our largest customers continues to grow. Fourth quarter trailing 12-month revenue from our top 20 customers increased 11% year-over-year to $55 million. Now moving to our commercial segment. Fourth quarter commercial revenue grew 32% year-over-year and 13% sequentially to $284 million. Full-year commercial revenue grew 20% year-over-year to over $1 billion, surpassing the billion-dollar mark for the first time.

Dave Glaser: We generated $1 3 billion in total U S revenue in 2023, representing a growth rate of 19% year over year.

Excluding the impact of revenue from strategic commercial contracts fourth quarter revenue grew 20% year over year, and 8% sequentially and full year revenue grew 20% year over year.

Dave Glaser: Customer count grew 35% year over year, and 10% sequentially to 497 customers.

Dave Glaser: Revenue from our largest customers continues to expand fourth quarter trailing 12 months revenue from our top 20 customers increased 11% year over year to $55 million per customer now.

Dave Glaser: Now moving to our commercial segment.

Dave Glaser: Fourth quarter commercial revenue grew 32% year over year, and 13% sequentially to $284 million full year commercial revenue grew 20% year over year to over 1 billion, surpassing the $1 billion Mark for the first time.

Dave: Excluding the impact from strategic commercial contracts, fourth-quarter commercial revenue grew 35% year-over-year and 12% sequentially, and full-year commercial revenue grew 28% year-over-year. Fourth-quarter commercial TCV book was $699 million, our highest fourth-quarter commercial TCV quarter in the company's history, representing 156% growth year-over-year and 74% growth success. Last quarter, our U.S. commercial business saw rapid acceleration and unprecedented demand. Fourth quarter U.S. commercial revenue grew 70% year-over-year and 12% sequentially to $131 million. Full-year U.S. commercial revenue grew 36% year-over-year to $457 million.

Excluding the impact from strategic commercial contracts fourth quarter commercial revenue grew 35% year over year, and 12% sequentially and full year commercial revenue grew 28% year over year.

Dave Glaser: Fourth quarter commercial T. C V book was $699 million, our highest commercial TCP quarter in the company's history, representing a 156% growth year over year and 74% growth sequentially.

Dave Glaser: Last quarter, our U S commercial business saw rapid acceleration and unprecedented demand.

Dave Glaser: Fourth quarter U S. Commercial revenue grew 70% year over year, and 12% sequentially to $131 million full.

Dave Glaser: Full year U S. Commercial revenue grew 36% year over year to $457 million, excluding revenue from strategic commercial contracts fourth quarter U S. Commercial revenue grew 71% year over year, and 8% sequentially and full year U S. Commercial revenue grew 52% year over year.

Dave: Excluding revenue from strategic commercial contracts, fourth-quarter U.S. commercial revenue grew 71% year-over-year and 8% sequentially, and full-year U.S. commercial revenue grew 52% year-over-year. Our momentum in AIP is driving both new customer conversions and existing customers. The transformation that AIP is having on our business is best highlighted in our US commercial bookings and back. In the fourth quarter, we booked $343 million of U.S. commercial TCV, representing 107% growth year-over-year on a dollar-weighted duration.

Dave Glaser: Momentum in AIP is driving both new customer conversions and existing customer expansions.

Dave Glaser: The transformation that AIP is having on our business is best highlighted in our U S commercial bookings and backlog.

Dave Glaser: In the fourth quarter, we booked $343 million of U S. Commercial teams UV, representing a 107% growth year over year on a dollar weighted duration basis.

Dave: Total remaining deal value in our U.S. commercial business grew 32% year-over-year and 28% sequentially. Our US commercial customer count grew to 221 customers, reflecting 55% growth year-over-year and 22% growth sequentially. Fourth quarter international commercial revenue grew 11% year-over-year and 14% sequentially to $154 million as we continue to capitalize on targeted growth opportunities in Asia, the Middle East, and beyond. As Ryan mentioned, we've been capturing value and footprint from AIP Momentum, and two examples are from our work with Fujitsu and Samba. These customers had been using AIP for months prior to the deals closing, resulting in some revenue catch-up loss. However, full year international commercial revenue grew 9% year-over-year to $546 billion.

Dave Glaser: Total remaining deal value in our U S commercial business grew 32% year over year and 28% sequentially.

Dave Glaser: Our U S commercial customer count grew to 221 customers, reflecting 55% growth year over year and 22% growth sequentially.

Dave Glaser: Fourth quarter International commercial revenue grew 11% year over year, and 14% sequentially to $154 million as we continue to capitalize on targeted growth opportunities in Asia, the middle East and beyond.

Dave Glaser: As Ron mentioned, we've been capturing value in footprint from AIP momentum and two examples are from our work with Fujitsu in sample. These.

Dave Glaser: These customers have been using AIP for months prior to the deals closing, resulting in some revenue catch up last quarter.

Dave Glaser: Full year International commercial revenue grew 9% year over year to $546 million.

Dave: Revenue from strategic commercial contracts was $20 million for the first quarter of 2024. We anticipate first quarter 2024 revenue from these customers to decline to between 14 to 16 million compared to 33 million in the first quarter of 2023. We anticipate 2024 revenue from these customers to decline to approximately 2% of full-year revenue compared to approximately 4% of revenue in 2023. Shifting to our government segment, fourth quarter government revenue grew 11% year over year and 5% sequentially to $324 million. Full year government revenue grew 14% year over year to $1.22 billion. Fourth quarter U.S. government revenue grew 6% year-over-year and 3% sequentially to $237 million. Full year U.S. government revenue grew 11% year-over-year to $921 million.

Dave Glaser: Revenue from strategic commercial contracts was $20 million for the quarter. We anticipate first quarter 2020 for revenue from these customers to decline to between $14 million to $16 million compared to $33 million in the first quarter of 2023, we.

Dave Glaser: We anticipate 2020 for revenue from these customers to decline to approximately 2% of full year revenue converted approximately 4% of revenue in 2023.

Dave Glaser: Shifting to our government segment fourth quarter government revenue grew 11% year over year, and 5% sequentially to $324 million.

Full year government revenue grew 14% year over year to $1 two 2 billion.

Dave Glaser: Fourth quarter U S government revenue grew 6% year over year, and 3% sequentially to $237 million.

Full year U S government revenue grew 11% year over year to $921 million.

Dave Glaser: As Mary mentioned, while our fourth quarter U S. Government results are muted due to the timing of larger contract awards, we expect our U S government business to Reaccelerate in 2024.

Dave Glaser: Fourth quarter International government revenue grew 27% year over year, and 11% sequentially to $87 million bolstered by our work in health care and defense.

Dave: As Ryan mentioned, while our fourth quarter U.S. government results were muted due to the timing of larger contract awards, we expect our U.S. government business to re-accelerate in 2024. Fourth quarter international government revenue grew 27% year-over-year and 11% sequentially to $87 million, bolstered by our work in healthcare and defense. This included the receipt of funding from a partner nation related to our ongoing efforts in Eastern Europe, which resulted in a revenue catch-up for the full year. We had an outstanding quarter of bookings. Fourth quarter TCB booked was $1.15 billion, up 192% year-over-year and 38% sequentially. Net dollar retention was 108%, an increase of 100 basis points from last quarter. Net dollar retention does not include revenue from new customers that we acquired in the past 12 months and therefore does not yet fully capture the acceleration in our U.S. commercial business. We ended the fourth quarter with $3.9 billion in total remaining deal value, an increase of 5% sequentially and $1.2 billion in remaining performance obligations, an increase of 28% year-over-year and 26% sequentially.

Dave Glaser: This included the receipt of funding from a partner nation related to our ongoing efforts in eastern Europe, which resulted in a revenue catch up for the quarter.

Dave Glaser: Full year International government revenue grew 23% year over year to $301 million.

Dave Glaser: We had an outstanding quarter of bookings fourth quarter TCE be booked was 1.15 billion up 192% year over year and 38% sequentially.

Dave Glaser: Net dollar retention was 108% an increase of 100 basis points from last quarter.

Dave Glaser: Net dollar retention does not include revenue from new customers that we acquired in the past 12 months and therefore does not yet fully capture the acceleration in our U S commercial business.

We ended the fourth quarter with $3 9 billion in total remaining deal value an increase of 5% sequentially and 1.2 billion in remaining performance obligations and increase of 28% year over year and 26% sequentially.

Dave Glaser: As a reminder, our view is primarily comprised of our commercial business as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience causes both of which are common in most of our government business.

Dave Glaser: Turning to margin and expense adjusted gross margin, which excludes stock based compensation expense was 84% for the quarter and 82% for the year adjusted.

Dave: As a reminder, RPO is primarily comprised of our commercial business, as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience reasons, both of which are common in most of our government programs. Turning to Margin and Expense. Adjusted gross margin, which excludes stock-based compensation expense, was 84% for the quarter and 82% for the year.

Dave Glaser: Adjusted income from operations, which excludes stock based compensation expense and related employer payroll taxes was $209 million, representing an adjusted operating margin of 34% and marking the fifth consecutive quarter of expanding adjusted operating margins.

Dave Glaser: Full year adjusted income from operations was $633 million, representing margin of 28% and 600 basis point increase compared to 2022.

Dave Glaser: Q4, adjusted expense was $399 million of 1% sequentially and up 1% year over year full year adjusted expense was $1 6 billion up 7% year over year.

Dave: Adjusted income for operations, which excludes stock-based compensation expense and related employer payroll taxes. 209 million, representing an adjusted operating margin of 34% and marking the fifth consecutive quarter of expanding adjusted operating margin. Full Year Adjusted Income for Operations was $633 million, representing a margin of 28% and 600 basis point increase compared to 2022. Q4 adjusted expense was $399 million, up 1% sequentially and up 1% year-over-year. Full year adjusted expense was $1.6 billion, up 7% year-over-year.

Dave Glaser: Our bottom line outperformance in 2023 has positioned us to be able to escalate investment and resources to AIP. As a result, we expect expenses to increase in Q1, but remain focused on calibrating expense growth below revenue growth for the full year in order to continue delivering on our goals of sustained profitability and operating income.

Dave Glaser: In the fourth quarter, we generated GAAP operating income of $66 million, representing an 11% margin our fourth consecutive quarter of GAAP operating income.

Dave Glaser: Full year GAAP operating income was $120 million.

Dave Glaser: We generated fourth quarter GAAP net income of $93 million, representing a 15% margin our fifth consecutive quarter of GAAP profitability full.

Dave: Our bottom line outperformance in 2023 has positioned us to be able to escalate investment and resources to AI. As a result, we expect expenses to increase in Q1, but remain focused on calibrating expense growth below revenue growth for the full year in order to continue delivering on our goals of sustained cap profitability and operating efficiency. In the fourth quarter, we generated GAAP operating income of $66 million, representing an 11% margin, our fourth consecutive quarter of GAAP operating income. The full year golf operating income was $120,000.

Dave Glaser: Full year GAAP net income was $210 million.

Dave Glaser: Fourth quarter adjusted earnings per share was <unk> <unk> and GAAP earnings per share was for full.

Dave Glaser: Full year adjusted earnings per share was 25 and GAAP earnings per share was nine cents.

Dave Glaser: Additionally, our combined revenue growth and adjusted operating margin accelerated to 54% in the fourth quarter and 800 basis point increase to our rule of 40 score from the prior quarter.

Dave Glaser: We continue to strive to maintain his exceptional balance of top and bottom line performance.

Dave Glaser: Turning to our cash flow in the fourth quarter, we generated $301 million in cash from operations and $305 million and adjusted free cash flow, both representing a margin of 50% in 2023 we generated $712 million in cash flow from operations and $731 million and adjusted free cash flow.

Dave: We generated fourth-quarter GATT net income of $93 million, representing a 15% margin, our fifth consecutive quarter of GATT profitability. Full-year gap net income was $210 million. Fourth-quarter Adjusted Earnings Per Share was $0.08, and Gap Earnings Per Share was $0.04. Full-year Adjusted Earnings Per Share was $0.25, and Gap Earnings Per Share was $0.09.

Dave Glaser: We ended Q4 with $3 7 billion in cash cash equivalents and short term U S Treasury Securities.

Dave Glaser: Routine access to additional liquidity of up to 500 million through our revolving credit facility, which remains entirely undrawn.

Dave: Additionally, our combined revenue growth and adjusted operating margin accelerated to 54% in the fourth quarter, an 800 basis point increase to our Rule 40 score from the prior quarter. We continue to strive to maintain this exceptional balance of top and bottom line performance. Turning to our cash flow, in the fourth quarter, we generated $301 million in cash flow from operations and $305 million in adjusted free cash flow, both representing a margin of 50%. In 2023, we generated $712 million in cash flow from operations and $731 million in adjusted free cash flow. We ended Q4 with $3.7 billion in cash, cash equivalents, and short-term U.S. Treasury security. We retain access to additional liquidity of up to $500 million through our revolving credit facility, which remains entirely undrinkable.

Dave Glaser: Now turning to our outlook for Q1 2024, we expect revenue of between 612 and $616 million.

Dave Glaser: Adjusted income from operations of between 196, and 200 million for full year 'twenty 'twenty four we expect revenue of between 2.652 and $2 668 billion U S. Commercial revenue in excess of $640 million, representing a growth rate of at least 40% adjusted income from operations of between <unk> <unk>.

Dave Glaser: 834 and $850 million.

Dave Glaser: Adjusted free cash flow of between $800 million and $1 billion.

GAAP operating income and net income in each quarter of this year.

Dave Glaser: With that I'll turn it over to Alex for a few remarks, and then Arnaud will kick off the Q&A.

Dave: Now turning to our outlook, for Q1 2024, we expect revenue of between $612 and $616 million. Adjusted income from operations of between $196 and $200 million. For a full year 2024, we expect revenue of between $2.652 and $2.668 billion. U.S. commercial revenue in excess of $640 million, representing a growth rate of at least 40 percent. Adjusted income from operations of between $834 and $850 million, adjusted for cash flow of between $800 million and $1 billion. GAAP Operating Income and Net Income for each quarter.

Alex Zukin: Welcome to our earnings there really so much to say.

Alex Zukin: Obviously.

Alex: Our performance in the U S commercial is extra.

Alex: Extraordinary some would say bombastic.

The numbers that just fly off.

Alex: The screen or the 70% year on year.

Our growth in Q4.

Alex: The number numbers that I almost had to turn the page when I saw them, where the 100 and.

Alex: Over 100.

Contracts over $1 million 37 over five and 21 roughly.

Alex: Over $10 million.

Speaker Change: There is.

Speaker Change: It's almost inconceivable to do that many contracts given the way our product used to be and so what you see is a convergence of our product being easier to use and augmentation of its charisma, both driven by developments in AI large language models, which make the product approachable found.

Alex Zukin: With that, I'll turn it over to Alex for a few remarks, and then Ana will kick off the Q&A. Welcome to our earnings. There's really so much to say. Obviously, our performance in the U.S. commercial is... extraordinary, some would say bombastic, the numbers that just fly off the charts.

Alex Zukin: The numbers that I almost had to turn the page when I saw them were the over 100 contracts over $1 million, 37 over 5, and 21 roughly over $10 million. There is. It's almost inconceivable to do that many contracts given the way our product used to be. And so what you see is a convergence of our product being easier to use, an augmentation of its charisma, both driven by developments in AI, large language models, which make the product approachable, foundry to the broader market. You also see just this enormous demand and our ability to meet that demand with a pilot new piloting approach that we call boot camp. So we went, like you know, two years ago we did 92 pilots, and last year, really, mostly in the second half of the year, we did over 500 boot camps.

Speaker Change: <unk> to the broader market.

Speaker Change: You also see just this enormous demand and our ability to meet that demand.

Speaker Change: With a pilot new piloting approach that we call boot camp, so we weren't like it.

Speaker Change: Two years ago, we did 92 pilots in last year really mostly the second half of the year. We did over 500 boot camps I go around the country now telling CEO CTO isn't really whoever has a million dollars to buy our product and transform their enterprise.

Speaker Change: Take everything you've done in AI.

Speaker Change: Since you started.

Speaker Change: Put your best people on it and we're going to show up at anytime you want and we're going to run year data at a boot camp for 10 hours.

Alex Zukin: I go around the country now telling CEOs, CTOs, and really anyone who has a million dollars to buy our product and transform their enterprise, take everything you've done in AI since you started, put your best people on it, and we're going to show up at any time you want, and we're going to run your data at a boot camp for 10 hours. And then you compare your self-pleasuring to our operationally relevant, commercially valuable, and critical to your enterprise results. Our ten hours; your ten months. Any products you want, any vendor you want, any hyperscaler you want, you pick them; we'll show up.

Speaker Change: And then you compare.

Speaker Change: Your self pleasuring, two are operationally relevant commercially valuable Chris.

Speaker Change: Critical to your enterprise results.

Speaker Change: Our 10 hours, you're 10 months.

Speaker Change: Any products you want any vendor you want any hyperscale or you want you pick them will show up.

Speaker Change: Uh huh.

Speaker Change: Reaction to this because what would America is obviously realizes this is real.

Alex Zukin: The reaction to this, because what America has obviously realized is this is real. But if you took the total number of people, the total number of enterprises that are doing AI of any kind, including algebra, and said it would probably be less than 300. We have 300 customers that are creating operational results using our AIP. Operational meaning, define how you want.

Speaker Change: But if you took the total number of people total number of enterprises that are doing AI of any kind, including <unk>.

Algebra.

Speaker Change: And Ted.

It would be probably less than the 300, we have 300 customers that are creating operational results using our AIP private operational meaning to find how you want I'm defining as they'll pay a $1 million or more for it. So it's real and we're doing this at a scale and pace that is.

Alex Zukin: I'm defining it as they'll pay a million dollars or more for it. So it's real. And we're doing this at a scale and pace that was inconceivable for Palantir up until recently. So, and you just have number after number after number, interface after interface. This is, this is, there are some caveats. Europe has decided that it is not going to engage in this revolution. There are other caveats for our society; I don't want to spend too much time on that, but the winners are going to win more.

Speaker Change: Inconceivable for pound here up until recently.

Speaker Change: So and you have just have number after number after number inner interface. After interface. It is this is this is there are some caveats.

Speaker Change: Europe has decided that they are not going to engage in this revolution.

Speaker Change: There are other caveats for our society I don't want to spend too much time on that but the winners are going to win more. This is this is a revolution for incumbents that have distribution and already strong products, which is why we're massively outperforming there are some caveats for us internally, we're having to rebuild the whole system are.

Alex Zukin: This is, this is a revolution for incumbents that have distribution and already strong products, which is why we're massively outperforming. There are some caveats for us internally, though. We're having to rebuild the whole system, our whole company to deal with this demand. We have a latent nascent sales force that has put its tiny toe in the water and noticed it can move around. We have to build that into a strong, aggressive machine. There are some positive caveats.

Speaker Change: <unk> company to deal with this demand we have a latent nascent sale.

Speaker Change: Sales force that has put its tiny toe in the water and as noted stick can move around we have to build that into a strong.

Aggressive machine.

Speaker Change: There are some positive caveat we're doing this our way we are not we are proud of our work on the front. We are proud that we support the U S. We are proud that we support the U S. Military we are proud to have an operational crucial role in Ukraine, and I am exceedingly proud that after October 7th within.

Alex Zukin: We're doing this our way. We are not, we are proud of our work on the front. We are proud that we support the U.S. We are proud that we support the U.S. military.

Alex Zukin: We are proud to have an operational, crucial role in Ukraine, and I am exceedingly proud that after October 7th, within weeks, we were on the ground, and we are involved in operationally crucial operations in Israel. I know of no other software company in the world that has been engaged by Ukraine and Israel, or, in general, I'm not sure they have bought software from any other company at our scale. These are momentous events built on the back of a 20-year assumption that software would define our reality. The winners would be those that understood software, rejecting linear, narrow, sales-driven software, Frankenstein monster infrastructures that have been so historically popular for investment in Silicon Valley, rejecting sophism as not only an approach to business, meaning I only say what I believe if it doesn't matter, or I never say what I believe.

Speaker Change: Weeks, we were on the ground and we are involved in operationally crucial operations in Israel.

Speaker Change: I know of no other software company in the World that has been engaged by Ukraine, and Israel or in general I'm not sure. They bicep wide software from any other company at our scale. These are momentous events built on the back of.

Speaker Change: A 20 year assumption that software would define our reality the winners would be those that understood software rejecting.

Speaker Change: Linear narrow sales driven software.

Speaker Change: Frankenstein Monster infrastructures that had been so historically popular for investment in Silicon Valley are rejecting sophism.

Speaker Change: As not only <unk>.

Speaker Change: Our approach to business, meaning I can only say what I believe if it doesn't matter, where I never say, what I believe those assumptions have seeped into our products, whether they are a military product or their foundry, our ontology or AIP. They also by the way for those listening who think our strategy is crazy.

Alex Zukin: Those assumptions have seeped into our products, whether they're a military product or they're foundry or ontology or AIP. They also, by the way, for those listening who think our strategy is crazy, many of your best people are applying to Palantir now. So, while we may be crazy, we are being bombarded by people who want to work at this company. Bombarded.

Speaker Change: Many of your best people are applying to pound here now.

Speaker Change: While we may be crazy, we are being bombarded by people who want to work at this company bombarded.

Alex Zukin: I cannot, a day does not go by where I'm not getting a call, an email, 50 attempts to get into our company. We are razor sharp; we are white hot in recruiting. We're a 20-year-old company with the strongest recruiting I've ever seen from a company that's historically had the strongest recruiting and the most competitive environment in the world, Silicon Valley. That is because we stand behind our values and because we intend to win with those values, which we are proving. So, this was an extraordinary, extraordinary last year.

Speaker Change: I cannot.

Speaker Change: Date is not go by where I'm not getting a call and email 50 attempts to get into our company. We are razor we are white hot.

Speaker Change: In recruiting were 20 year company with the strongest recruiting I've ever seen from a company that has historically had the strongest recruiting in the most competitive.

Speaker Change: The environment in the World Silicon Valley that is because we stand behind our values and because we intend to win with those values, which were proving. So this was an extraordinary extraordinary last year. We also took care of making sure. We're aligned internally on comp we are streamlining our events are our the way we go to <unk>.

Alex Zukin: We also took care of making sure we're aligned internally on comp. We are streamlining our events, the way we go to market. And I would also say, from the perspective of the leader of our movement, nominally called the CEO of our company, we have never been this aligned internally. We are a company that attracts the most talented, interesting, and difficult people in the world. Some of them are sitting at this table.

Speaker Change: Market.

Speaker Change: And I would also say from our perspective as the.

Speaker Change: The leader of our movement nominally called the CEO of our company, we have never been this aligned internally.

Speaker Change: We're a company that engages the most talented interesting and difficult people in the world.

Speaker Change: Some of them are at this table.

Alex Zukin: And there has never been a time where we have been this motivated, this in unison, and this proud of our company and our accomplishments. And so, I'm proud to be celebrating with them. And we are going to keep up our efforts, and I foresee a very, very strong year, especially in U.S. commercial. I would also say the strength of our U.S. commercial business and the strength of our products being used in the most difficult and most important war zones in the world is going to have a handoff function into USG. And I'm optimistic that that handoff will happen, and we will be as successful there as we are in U.S. com. With that, we'll begin with a few questions from our shareholders before we open up the call. Our first question is from Andrew.

Speaker Change: And there is never been a time, where we have we have been this mood.

Speaker Change: Motivated this in unison in this proud of our company and our accomplishments and so I'm proud to be proud with them and we're.

Speaker Change: We are going to keep on our on our efforts.

And I foresee a very very strong.

Year, especially in U S commercial I would also say.

Speaker Change: The strength of our U S commercial and the strength of our products being used in the most difficult and most important war zones in the world is going to have a handoff function into USG and I'm optimistic that handoff function will happen and we will we will be.

Speaker Change: As successful there as we are in U S com.

Speaker Change: With that I will begin with a few questions from our shareholders before we open up the call.

Speaker Change: Our first question is from Andrew given the significant increase in demand for AIP and the management team elaborate on the advancements made in formulating monetization strategy for this offering.

Alex Zukin: Given the significant increase in demand for AIP, could the management team elaborate on the advancements made in formulating a monetization strategy for Yeah, you're right to comment. The demand is off the charts for AIP with Bootcamp SESS, the delivery mechanism for AIP, and we're seeing AIP drive the expanding addressable market that we're seeing. As Alex commented, we closed 103 deals in Q4 alone for over a million dollars.

Andrew: Yeah, Youre right to comment the demand is off the charts for AAP with boot camps as the delivery mechanism for AAP and were seen AIP drive the expanding the expanding addressable market that we're seeing as Alex commented, we closed a 103 deals in Q4 alone over $1 billion, having been involved in many of those.

Ryan Taylor: Having been involved in many of those directly and on the ground, I can tell you that the feeling, the demand, the excitement over AIP and over Palantir is unlike anything I've seen in the 14 years I've been here, and we feel it. We feel it in a tangible way on the ground with our customers, and we're starting to see the beginnings of that in our Q4 results. In October, we set the goal of executing 500 Top of Funnel for AIP bootcamps.

Andrew: Directly and on the ground I can tell you that the feeling the demand the excitement over AIP and over over Polland here is unlike anything I've seen in the 14 years Ive been here and we feel that we feel that in a tangible way on their on the ground with our customers and we're starting to see the beginnings of that in our Q4 results in October we set the goal.

Andrew: All of executing 500 boot camps for top of funnel for AIP.

Ryan Taylor: As noted, we've already exceeded that with over 560 bootcamps just about four months later, and that is only continuing to increase that momentum. Then you see the results in U.S. commercial, 70% year-over-year growth. In revenue, in Q4, 55% growth in customer count year-over-year, and 107% growth in TCV closed on an adjusted basis.

Andrew: As noted we've already exceeded that with over 560 boot camp just about four months later.

Andrew: And that is only continuing to increase that momentum then you see the results in U S commercial 70% year over year growth in revenue in Q4, 55% growth in customer count year over year of 107% growth in T. C V closed on and on an adjusted basis and then you see emerging from that the archetypes to the quest.

Ryan Taylor: And then you see emerging from that the archetypes of the types of monetization we're seeing. First, it's bootcamps that are quickly converting to paying customers, or it's expansion of existing customers, or it's customers where maybe we've been engaged for a while, and with the introduction of AIP, that whole process has been accelerated. We're seeing that across the board, and yet at the same time, we've barely touched the addressable market, and we're really only at the beginning. So excited to see where that goes.

Andrew: On monetization the archetypes of the types of monetization, we're seeing either its first its boot camps that are quickly convert into paying customers or it's expansion of existing customers or its customers, where maybe we've been engaged for a while and with the introduction of AIP that whole process has been accelerated we're seeing that across the board and yet at the same time, we've barely touch.

Andrew: <unk> that addressable market and we're really only at the beginning so excited to see where that takes us.

Speaker Change: Thanks, Ryan. Our next question is from Kenner, who asks what kind of interests have deferred start program seen as of late has the market responded to that and will there be additional marketing made towards these startups and relatedly. When do you expect to pilot to be a significant contributor to <unk> revenue.

Ryan Taylor: Thanks, Ryan. Our next question is from Tanner, who asks, What kind of interest has the FedStart program seen as of late? Has the market responded to this, and will there be additional marketing made towards these startups? And relatedly, when do you expect Apollo to be a significant contributor to Palantir Tech? Great, thanks, Tanner.

Ryan Taylor: Great. Thanks Tanner.

Shyam Sankar: Yeah, FedStart's been a hit, and I think it's easy to understand why. There's been $100 billion of capital that's flowed into the defense tech community at large. But no one can afford the two years and $2 million it takes to achieve this accreditation.

Tanner: That's always been a hit and I think it's easy to understand why there has been a $100 billion of capital Thats flowed into the defense Tech community at large no one can afford the two years and $2 million. It takes to achieve this accreditation.

Shyam Sankar: This provides market access. We've started with an intense focus on Aisle 5, bringing folks to the DoD market. We plan to release an Aisle 6 FedStart at the end of Q2, and FedRAMP High at the end of Q3, early Q4.

Tanner: This provides market access we've started with our intense focus on IL, five, bringing bringing folks to the Vod market. We plan to release, an IL six bad start at the end of Q2 and fed ramp high at the end of Q3 early Q4, and we're also going to be taking this to our allies. So we intend to launch fed start with with the U K. It on the secret network and above top secret.

Shyam Sankar: We're also going to be taking this to our allies, so we intend to launch FedStart with the UK on the secret network and above the top secret network later this year. Apollo is having its moment.

Tanner: Network later this year.

Tanner: Apollo is having its moment.

Tanner: It's the charisma it has with customers when they see it running at scale running managing all $2 $2 billion of our revenue I think a big part of this is they spent the last two years trying to solve these problems on their own and then this really understand how much value contribute to them, how much and accelerate them. Both on the government program side, but also on.

Shyam Sankar: I think the charisma it has with customers when they see it running at scale, running and managing all $2.2 billion of our revenue. I think a big part of this is they've spent the last two years trying to solve these problems on their own and then viscerally understand how much value it adds to them, how much it can accelerate them, both on the government program side, but also on the company side, where companies are struggling with how to efficiently deliver modern software into But I think that the bigger thing that I'm really excited about is Mission Manager, which is Apollo, Rubix, which is our zero-trust compute and networking infrastructure, and the Ontology Software Development Kit, the OSDK, as a combined offering to the government to really give the government what they've been asking for, which is infrastructure that allows them to build and manage multi-vendor, big tent ecosystems that drive continuous competition and allow the government to And so you can think of FedStart as actually the first product that we've launched on top of Mission Manager infrastructure. We've started doing other projects, including Army C2 work, but that's going to be a very exciting trend for us. Let me just give an addendum here.

Tanner: On the company side, where companies are struggling with how to efficiently deliver modern software into these environments, but I think that the bigger thing that I'm really excited about is.

Tanner: <unk> mission manager, which is Apollo Rubik's, which is our zero trust compute and networking infrastructure and the ontology software development kit the OSD K as a combined offering to the government to really give the government what they've been asking for which is infrastructure that allows them to build and manage multi vendor big tent ecosystems that drive continuous comp.

Tanner: Petition.

And allow the government to actually control the interfaces and avoid lock in and so you can think of <unk> is actually the first product that we've launched on top of <unk> mission manager infrastructure. We've started doing other projects, including army <unk> work, but that's going to be a very exciting trend for us. Let me just given addendum here, Sean launched and built.

Shyam Sankar: Shyam launched and built FedStart, but one of the most important things it did is, before we launched FedStart, the $100 billion of investment in kind of new defense tech largely had the impression Palantir was competitive with them, and we weren't competitive with them and FedStart aligns all those venture capitalists and all their investments and most of their companies with Palantir because we can allow them to get onto classified networks much quicker so that they can actually show results to their investors much quicker and that means a lot of the resistance to us is not only disappearing but it's actually been converted into support for Palantir, support for what we're doing and those people are really helping spread the obvious Palantir gospel. Instead of wondering how they can compete with us, they're wondering how we can succeed together. Thank you both.

Head start but it has.

Tanner: But one of the most important things that did is before we launched red start the $100 billion of investment in in kind of new defense Tech.

Tanner: Largely AD impression pound here was competitive with them.

And we weren't competitive with them and fed start aligns all of those venture capitalists and all their invest all the investments in most of their companies with pound here, because we can allow them to get on to classified networks much quicker. So that they can actually show results to their investors much quicker and that means a lot of the resist.

Tanner: <unk> to us is not only disappearing, but it's going it's actually been converted into support for pound year support for what we're doing and those people are really helping spud spread the obvious parenting gospel instead of wondering how they can compete with us they're wondering how we can succeed together.

Speaker Change: Thank you bet. Our next question is from Keith.

Shyam Sankar: Our next question is from Keith. Is your greatest competitor still your potential customer's own IT department? Or has that changed? Thanks, Keith.

Keith: With competitors failure potential customers or 19 department or has that changed.

Keith: Thanks, Keith we certainly used to feel that way, but when you look at boot camps, you look at how much charisma AIP has with it.

Shyam Sankar: We certainly used to feel that way. But when you look at boot camps, you see how much charisma AIP has with IT and the fact that we're winning with IT, with Apollo, with the OSDK, with capabilities like Marketplace. That's certainly not the case anymore.

Keith: And the fact that we're winning with it with Apollo with the OSD Kay with capabilities like marketplace.

Certainly not the case anymore. It is become some of our biggest champions and I think what thats reveal for US is that perhaps the issue was never actually it was this software industrial complex everything Alex was talking about earlier. These thin products that were really designed to sell and they're more like a drug than they are like medicine in.

Shyam Sankar: IT has become some of our biggest champions, and I think what that's revealed for us is that perhaps the issue was never actually IT. It was this software industrial complex. Everything Alex was talking about earlier, these thin products that were really designed to sell, and they're more like a drug than they are like medicine, in this sort of strict adherence to architectural conformity. But what I think is exciting about Gen-AI is it's blown all of that up. You know, it's been a big reset button here.

Keith: And is this sort of <unk>.

Adherence to architectural conformity, but what I think is exciting about gen. AI, that's blown up all of that it's been a big reset button here the whole map. The whole architecture is up for grabs and we're working very closely with <unk> to write that map to write the architecture that is actually delivering all of these operational use cases, where these customers what are the core things about growing these meetings.

Shyam Sankar: The whole map, the whole architecture is up for grabs, and we're working very closely with IT to write that map, to write the architecture that is actually delivering all these operational use cases for these customers. Now, one of the coolest things about going to these meetings is that three, four years ago, you could predict who was going to like us and who wasn't, and it's just not anymore. You go to these meetings, and they'll often be the IT person telling the CEO, like, look, we have no choice. We got to, we need to install this quickly, and so there's a cultural shift in the U.S. I don't think it's outside the U.S. the case, but inside the U.S., people in IT are responsible for business value.

Keith: It used to be three or four years ago, you could predict who is going to like us and who wasn't and it's just not anymore. You go to these meetings and they'll often be the it person telling CEO like look we have no choice, we gotta cleaning to install this quickly and and.

Keith: And so.

Keith: There is a cultural shift in the U S. I don't think it's outside the U S. The case, but inside the U S.

Keith: People are responsible for business value this creates business value and they're often responsible for global business value theyre not that interested in putting together, a powerpoint and showing how that could work in theory, they've got to show themselves their company their workers the hole that theyre going to get actual revenue either either driving.

Shyam Sankar: This creates business value, and they're often responsible for global business value. They're not that interested in putting together a PowerPoint and showing how that could work in theory. They've got to show themselves, their company, their workers, the whole thing, that they're going to get actual revenue, either driving or quality of revenue driving results quickly, and they are, almost exclusively now, friends. Maybe they can talk to some analysts, like we can convert you guys too. Our next question is from Mariana with Bank of America. Mariana, can you please turn on your camera, and then you'll receive a prompt to unmute your line.

Keith: Our quality of revenue driving results quickly and they are.

Keith: Almost exclusively now our friends.

Keith: Maybe they can talk to some analysts.

Keith: Right.

Keith: We can convert you guys too.

Keith: Thanks.

Next question is from Mariano with Bank of America Marianna can you. Please turn on your camera and then you'll receive a prompt on mute your line.

Mariano: They are known to everyone.

Mariana: Good afternoon, everyone. So I have two questions, one about the U.S. government, and the second one today from financials. So the first one is this.

Mariano: So I have two questions wanting give us comment on the second one today on financials.

First one is this you mentioned in your prepared remarks, we accelerating <unk> growth and opportunities across the board. This is contracting to what we have heard from the prime this quarter. They have a grid that more things are moving to watch so far but they argued that the Doj has to figure out how to buy software and they have to figure out how.

Shyam Sankar: You mentioned in your prepared remarks that we're accelerating U.S. government growth and opportunities across the board, but this is contrasting to what we have heard from the primes this quarter. They have agreed that more things are moving towards software, but they argue that the DoD has to figure out how to buy software, and they have to figure out how to do it. From your point of view, how large is the change that is needed in this award approach? But also, how large is the advantage that Palantir has in this environment where you have been selling software for a long time now? Yeah, look, we've been doing this for two decades, as you point out. And I think that gives us a perspective of what it was like two decades ago and what it is like now. And it's wildly different, and so much has changed.

Mariano: So far from your point of view, how large is the change that is needed in this award approach, but also how not just advantaged volunteer house in this environment, where you have been selling so far far long time now.

Speaker Change: Yes look we've been doing this for two decades as you point out and I think that gives US a perspective of what was it like two decades ago and what is it like now and it's wildly different and so much has changed now I don't want to underestimate how much has to continue changing and I think the department recognizes that and is working on that but do not acknowledged the progress I think it would be disingenuous here.

Shyam Sankar: Now, I don't want to underestimate how much has to continue changing. And I think the department recognizes that and is working on that. But to not acknowledge the progress would be disingenuous here. Unlike the primes who used to focus on hardware and are now responding to software, we've always focused on software. One of the things about software is that it evolves incredibly quickly.

Speaker Change: Unlike the primes, who used to folks in hardware now responding to software we've always focused on software and one of the things about software as it evolves incredibly quickly. If you think about the software we were deploying.

Shyam Sankar: If you think about the software we were deploying to do the Afghan noncombatant evacuation operations and how much that evolved moving into Ukraine, how much that evolved moving into the current crisis in CENTCOM, it is evolving faster than procurement can procure it. And I think one of the unique strengths that we have is that we are investing and mutating and managing the software independent of the actual procurement actions. And that means that we always have software that's so far in the future that it will meet the moment that the DOD actually does. As an addendum to that, the core thesis of Palantir was always... The reality of a disjointed, violent world forces Pareto optimal conditions on institutions.

Speaker Change: To do the Afghan noncombatant evacuation operations and how much that evolved moving into Ukraine, how has that evolved moving into the current crisis in the centcom. It is evolving faster than procurement can procure it and I think one of the unique strength that we have is that where comps we are investing in mutating and managing the software independent of the actual procurement actions.

Speaker Change: And that means that we always have software that so far in the future that it will meet the moment that the D O D actually <expletive>.

Speaker Change: As an addendum to that.

Speaker Change: The core thesis of of a talented was always.

Speaker Change: The reality of a disjointed violent world forces prego optimal conditions on institutions. So.

Alex Zukin: So, I believe that everyone knows we have the best software in the world. It may not matter in a non-dangerous environment, but it did matter in Ukraine and Israel, and who did they buy? It does matter.

Speaker Change: I believe that everyone knows we have the best software in the world.

Speaker Change: It may not matter in a non dangerous environment, but it did matter in Ukraine, and Israel and who did they buy it does matter. Our software is running in with I don't I would never know where what I say, but in among the most critical places in the D. O D. If you. If we are forced to fight a three pronged war you cannot do that even from a.

Alex Zukin: Our software is running in, I never know what I'll say, but among the most critical places in the DoD. If we are forced to fight a three-pronged war, you cannot do that even from the perspective of keeping our munitions ready without accurate software. So the more dangerous, the more real it gets, the more battle-tested and real your software has to be. I believe it's about to get very real. Why?

Speaker Change: Our perspective of keeping our munitions.

Speaker Change: Ready without accurate software so the more dangerous the more real it gets the more battle tested and really your software has to be I believe it's about to get very real why because our GDP growth is significantly better than China's now I know, it's always wrong crowd says, we then should get piece, but.

Alex Zukin: Because our GDP growth is significantly better than China's. Now, I know the always wrong crowd says we should then get peace, but I'm telling you that the rational consequence of that is our adversaries are like, America's going to be stronger tomorrow than today. It's like they don't have a GDP story because they do not build these systems as well as we do. They do not have the tech community we do, and they do not have the U.S. market like we do.

Speaker Change: I'm, telling you that the rational result of the rational.

Speaker Change: The consequence of that is our adversaries are like America is going to be stronger tomorrow than today.

They don't have a GDP story, because they cannot they do not build the systems as well as we do they do not have the tech community, we do and they do not have the U S market like we do look at our results and so as this becomes more and more dangerous.

Alex Zukin: And so as this becomes more and more dangerous, every company in the world, whether they're small or big, whether they're a startup, whether they're one of the largest primes, or whether we are, is going to have to actually prove that their software works on the battlefield. We love that. We want to prove it, and we welcome and relish proving environments. If it was up to me, software would only be deployed by America and Western allies if it was proven on the battlefield. Unfortunately for us, our adversaries are going to force that kind of adjudication.

Speaker Change: Every company in the world, whether they're small big whether they're startup where they are the one of the largest private or whether us is going to have to actually prove their software works on the battlefield, we love that we want to prove and we welcome in rail is proving environments.

Speaker Change: If it was up to me software it would only be deployed at America and Western Allies. If it was proven on the battlefield. Unfortunately for us our adversaries are going to force that kind of adjudication and how do we and then if you and for those of you who can't evaluate that because you don't have access to our software in the battlefield, though you could read the news.

Alex Zukin: And for those of you who can't evaluate that because you don't have access to our software on the battlefield, though you could read the news and see what Israel has done and what Ukraine has done, look what's happening in U.S. commercial. You have a completely irrational environment where we're deploying and growing the way we're growing with almost no sales force, and it's because it really matters. And when it really matters, the fact that they may not like my jokes or my habits.

Speaker Change: And see what Israel has done and what UK is done.

Speaker Change: Look what's happening in U S commercial.

Speaker Change: Do you have a completely rational environment, where we're deploying in growing the way, we're growing with almost no sales force and.

Speaker Change: It's because it really matters and when it really matters. The fact that they may not like my jokes or my habits.

Alex Zukin: It will protect your life, and that's why we're going to do well. Thank you, Alex. Our next question is from Dan with Wedbush. Dan, please turn on your camera, and then you'll receive a prompt to unmute your line.

Speaker Change: It will protect your life.

Speaker Change: And that's where that's why we're going to do well.

Speaker Change: Thank you Alex our next question is from Dan with Wedbush, Dan. Please turn on your camera and then you'll receive a prompt on your line.

Dan: Thank you. I think inconceivable is the right word, you know, in terms of everything that you produced this quarter. My question would be... My question would be, are you starting to actually see an acceleration?

Speaker Change: Yes.

Dan: So I think inconceivable is the right word.

Dan: In terms of.

Dan: Everything that you produced this quarter my question would be.

Dan: My question would be are you starting to actually see an acceleration.

Ryan Taylor: in terms of AIP customer engagement, not just from Q4 but even starting 2021, handle that as the man on the front line? I mean, the answer is absolutely yes, and I think you know we're still very early, obviously, with AIP and the rollout and very early in the market, but as far as you know what we're seeing from customers, you see, I mean, just kind of Q3 to Q4 results, and then what we're seeing in the conversations we're having with customers, the way that it's being adopted by the businesses Alex talked about, in Also, just like we do these AIP conferences, I think we have invited you and your team. We can't do enough of them; we're telling people we're limiting the number of people who come. It's like, it's like a rock concert.

In terms of a key customer <unk> engineering, not even just from Q4, but EBIT starting 2024.

Speaker Change: You want to handle that as the man on the frontline I mean, the answer is yes, absolutely and I think we were still very early obviously with the IP and the rollout in <unk>.

Speaker Change: Early in the market, but as far as.

Speaker Change: What we're seeing from customers you see I mean, just see like kind of Q3 to Q4 results and then what we're seeing in the conversations we're having with customers the way that it's been adopted by the business as Alex talked about and the conversations we're having with customers, we're seeing that acceleration and we expect that to continue also just like we view. These AIP conferences I think we invited.

Speaker Change: You and your team.

Speaker Change: We we can't do enough of them.

Speaker Change: We're telling we're limiting the number of people who come.

Speaker Change: It's like a rock concert.

Alex Zukin: It's like, yeah, yeah, if you know somebody, we can get you in the back, we can get you backstage. You know, it's, by the way, for those of you who are evaluating our company, we are going to invite all of you to our boot camps. Please use the same format as you did, but like, take a look at the software. It's like, we are not arguing in the abstract or in a PowerPoint or according to what you may have learned at business school that it is better. We are arguing that it is better, and there's no other way to show that than to do it.

Speaker Change: Yeah. If you know somebody we can get you into that we can get you back stage.

Speaker Change: Okay.

Speaker Change: By the way for those of you who are evaluating our company.

Speaker Change: We are going to invite all of you to our boot camps.

Speaker Change: Please use as you did but like take a look at the software.

Speaker Change: We're not arguing in the abstract or in our Powerpoint are according to what you may have learned at business school that is better we are arguing that it is better.

And there is no other way to show that when to do it but to your question.

Alex Zukin: But to your question, yeah, we're already overflowing for our AIP boot camp, and it's just we don't know how to deal with this demand. And so we're rebuilding the company. We have a lot of employees in Germany and France. I'm telling them it's time to pack up and come to America.

Speaker Change: Yeah, we've we're already Overfilled for R. R. R. R AIP boot camp.

Speaker Change: And it's just we don't know how to deal actually with this demand and.

Speaker Change: And so were rebuilding the company.

Speaker Change: And we have a lot of employees in Germany, and France, I'm, telling them, it's time to pack up and come to America.

Alex Zukin: I'm telling, you know, I'm telling our hiring, we are hiring here. We are having, as I mentioned, a bonanza of people wanting to work here because people are, quite frankly, tired of working for people who seemingly only have an opinion when it doesn't matter and with products that may not work. We're looking at, I'm getting personally involved in the recruiting again to get more people but exactly the right people, and we're going to scale against the demand, but it is a real thing. Thank you. Alex, as usual, we have a lot of our shareholders on the line. Is there anything you'd like to...

Speaker Change: I'm, telling I'm, telling our hiring we're hiring here.

Speaker Change: We are having as I mentioned, a bonanza in people wanting to work here because people are quite frankly tired of working for people, who seemingly only have an opinion when it doesn't matter and with products that may not work.

Speaker Change: We're looking at I'm getting personally involved in the recruiting again.

Speaker Change: To get more people, but exactly the right people and we're going to scale.

Speaker Change: Against the demand, but it is a it's a real thing.

Speaker Change: Thank you.

Speaker Change: Alex as you know we have a lot of our shareholders on the line is there anything you'd like to say before we end the call.

Alex: I mean.

Alex Zukin: I mean, we are fighting for the West and its allies to be stronger. And I very much appreciate your support. At this company, we think about our investors. Our most important investors are at Palantir. Our second most important investors are people investing their own money. And we relish your support, and it gives us a lot of motivation. I meet individual investors every time I go to a customer. And I've had individual investors I've met at 2, 3 a.m. on a VTC, and I ask them, well, why are you working at 3 a.m. to make your enterprise better on AIP or Foundry? And they basically all say the same thing, because Palantir is fighting for my rights and my liberty. And we are fighting for your rights and your liberty, and we are going to continue to fight for that the way we do that, which is by delivering the best product to our allies, by hurting our adversaries, and by giving U.S. business the strength it needs to massively outperform every other country in the world. Thank you. Thanks, Alex. That concludes the Q&A.

Alex: We.

Alex: Our fighting for the West <unk>.

Alex: And its allies to be stronger and we are very I very much appreciate your support at this company. We think about our investors are most important investors our at <unk>. Our second most important investors are people investing their own money.

Alex: And we relish your support and it gives us a lot of motivation.

Alex: I mean individual investors every time I go to a customer basically and I've had individual investors I've met at Q3 a M.

Alex: On <unk> and I asked them or why are you working at three a M to make your enterprise better in AIP or foundry and they basically all say the same thing because powershares fighting for my rights and my Liberty and we are fighting for your rates near Liberty and we are going to continue to fight for that the way, we do that which is <unk>.

Alex: During the best products.

Alex: Our allies by hurting our adversaries and by giving us commercial the strength that needs to massively outperform every other country in the world. Thank you.

Speaker Change: Thanks, Alex that concludes the Q&A for today's call.

Speaker Change: Yes.