Palantir Technologies Inc. (NASDAQ:PLTR)

Current Provision

The current provision exhibits considerable volatility over the observed periods. It started at a positive value of 7,749 thousand USD in 2020, shifted to a negative amount of -11,431 thousand USD in 2021, indicating a tax benefit or refund during that year. Subsequently, it reverted to positive figures for 2022 through 2024, increasing from 10,241 thousand USD in 2022 to a peak of 24,522 thousand USD in 2023, followed by a slight decline to 21,821 thousand USD in 2024.

Deferred Provision

The deferred provision shows significant fluctuations. In 2020, it was negative at -20,385 thousand USD, suggesting deferred tax benefits or reductions. This switched to a positive 43,316 thousand USD in 2021, indicating an increased deferred tax expense. The subsequent years saw a reversion to negative values but with smaller magnitudes: -174 thousand USD in 2022, -4,806 thousand USD in 2023, and -566 thousand USD in 2024, reflecting relatively moderate deferred tax benefits in the latter years.

Provision for (Benefit from) Income Taxes

The overall provision for income taxes, which sums current and deferred figures, reflects a transition from a tax benefit to tax expense. In 2020, the company recognized a tax benefit of -12,636 thousand USD. This transformed into a substantial tax expense of 31,885 thousand USD in 2021. In the years following, the tax expense moderated but remained positive, recording 10,067 thousand USD in 2022, increasing to 19,716 thousand USD in 2023, and slightly rising again to 21,255 thousand USD by 2024. This pattern indicates a stabilization of tax liabilities after the volatility of earlier years.

Summary of Trends

The data reveal that the company experienced significant shifts in its tax provisions during the early years, particularly between 2020 and 2021. The inversion of current and deferred provisions between these years suggests changes in taxable income recognition or tax strategy. From 2022 onward, the current provision consistently remained positive and relatively substantial, while the deferred provision reverted to negative but with reduced magnitudes, suggesting more predictable deferred tax benefits. The overall income tax provision reflects these dynamics, shifting from net tax benefits to consistent tax expenses, indicative of the company's evolving tax position and possibly improving profitability or changes in tax regulations and accounting treatments.

U.S. federal statutory income tax rate

The statutory income tax rate remained constant at 21% across all the years from 2020 to 2024, indicating stable federal tax legislation without changes affecting this rate during the period analyzed.

Effective income tax rate

The effective income tax rate displayed notable volatility over the years. In 2020, the rate was significantly lower than the statutory rate, at approximately 1.07%. This dropped further into negative territory in 2021, reaching -6.53%, indicating the company may have benefited from tax credits or loss carrybacks that effectively reduced tax expenses below zero. The trend of negative effective tax rates continued in 2022, though less pronounced at -2.79%. In 2023, there was a reversal with the effective rate returning to a positive figure of 8.32%, and further decreasing to 4.35% in 2024. Despite these fluctuations, the effective rate throughout the period remained substantially below the statutory 21%, suggesting a consistent advantage from tax strategies, credits, or other tax planning measures reducing the overall tax burden.

Net Operating Loss Carryforwards

The net operating loss carryforwards exhibit an overall increasing trend from 853,861 thousand USD in 2020 to 1,583,076 thousand USD in 2024, with a peak in 2021 at 1,497,774 thousand USD. There is a decline from 2021 to 2023, followed by a significant rise again in 2024.

Capitalized Research and Experimental Expenses

This item was reported starting in 2022, showing significant growth over the three years. It increased from 70,839 thousand USD in 2022 to a notable 504,156 thousand USD in 2024, indicating a substantial escalation in capitalized R&D activities.

Reserves and Accruals

Reserves and accruals fluctuated over the period, declining from 55,685 thousand USD in 2020 to 43,348 thousand USD in 2021, then rising sharply to 76,905 thousand USD in 2022 and peaking at 99,105 thousand USD in 2023 before slightly decreasing to 87,111 thousand USD in 2024.

Tax Credit Carryforwards

Tax credit carryforwards steadily increased over the five-year period, from 68,626 thousand USD in 2020 to 394,579 thousand USD in 2024, reflecting accumulating credits that could offset future tax liabilities.

Stock-Based Compensation

Stock-based compensation has consistently decreased from 246,380 thousand USD in 2020 to 76,604 thousand USD in 2024, showing a significant reduction in expenses related to stock-based pay over time.

Lease Liabilities

Lease liabilities remained relatively stable, fluctuating slightly around the 55,000 to 60,000 thousand USD range, ending at 60,103 thousand USD in 2024.

Depreciation and Amortization

Depreciation and amortization showed volatility within the period, peaking at 35,176 thousand USD in 2021, then declining sharply to 14,413 thousand USD in 2023, followed by a slight increase to 15,839 thousand USD in 2024.

Capitalized Facilitative Expenses

Capitalized facilitative expenses were recorded starting in 2023, with values of 28,906 thousand USD and increasing to 38,436 thousand USD in 2024, suggesting growing capitalized costs in facilitating business operations.

Gross Deferred Tax Assets

There was a strong upward trend in gross deferred tax assets, rising from 1,311,065 thousand USD in 2020 to 2,759,904 thousand USD in 2024, indicating a growing expectation of future tax benefits.

Valuation Allowance

The valuation allowance against deferred tax assets increased in magnitude (more negative) from -1,220,093 thousand USD in 2020 to -2,710,393 thousand USD in 2024. This rising allowance suggests increasing uncertainty regarding the realization of deferred tax assets.

Net Deferred Tax Assets

Net deferred tax assets generally remained low and fluctuated over the period, with an initial value of 90,972 thousand USD in 2020, dropping significantly in subsequent years and ending at 49,511 thousand USD in 2024. This reflects the impact of valuation allowances and deferred tax liabilities on the net position.

Outside Basis Difference

Reported only in 2022 as -6,512 thousand USD, this item was absent in other years, indicating a one-time recognition or adjustment in basis differences during that year.

Acquisition Related Intangibles

Acquisition-related intangibles appeared starting in 2022 and decreased consistently from -10,225 thousand USD in 2022 to -6,827 thousand USD in 2024, indicating amortization or impairment of such assets over time.

Right-of-Use Assets

Right-of-use assets have been negative throughout the period, trending upward in negative amount from -48,120 thousand USD in 2020 to -50,208 thousand USD in 2024, reflecting accounting treatments of leased assets and some fluctuations in lease portfolio or remeasurements.

Deferred Tax Liabilities

Deferred tax liabilities fluctuated moderately, starting at -48,120 thousand USD in 2020, slightly increasing in absolute terms with a peak at -63,032 thousand USD in 2022, and ending at -57,035 thousand USD in 2024.

Net Deferred Tax Assets (Liabilities)

This line shows a volatile pattern from a positive 42,852 thousand USD in 2020 to negative values in the subsequent years, bottoming at -11,965 thousand USD in 2022 and stabilizing somewhat near -7,500 thousand USD by 2024, indicating a net liability position after combining deferred tax assets and liabilities.

Total Assets

The reported total assets exhibit a consistent upward trend over the five-year period, increasing from approximately $2.69 billion in 2020 to $6.34 billion in 2024. The adjusted total assets closely mirror this growth pattern, indicating minimal impact from tax-related adjustments on the asset base. This steady increase suggests sustained asset accumulation and expansion efforts.

Total Liabilities

The reported total liabilities decreased from about $1.17 billion in 2020 to $819 million in 2022, reflecting a significant reduction. However, there was a moderate increase observed thereafter, rising to approximately $1.25 billion by 2024. The adjusted liabilities follow a similar trajectory but are consistently slightly lower than the reported figures, implying some adjustments related to deferred taxes or other items reduced the recorded liabilities. Overall, liabilities have fluctuated but remained within a moderate range relative to asset growth.

Stockholders’ Equity

Stockholders’ equity shows a strong upward trajectory across the period, increasing from roughly $1.52 billion in 2020 to over $5 billion in 2024 on a reported basis. Adjusted equity balances align closely with reported figures, with minor differences likely stemming from tax-related adjustments. This trend reflects increasing retained earnings and/or capital contributions strengthening the company’s net asset position over time.

Net Income (Loss) Attributable to Common Stockholders

Net income exhibited significant improvement, transitioning from a substantial loss of approximately $1.17 billion in 2020 to positive earnings by 2023 and 2024, with reported net income reaching $209.8 million and $462.2 million, respectively. Adjusted net income follows the same pattern, showing less pronounced losses in earlier years and reaching similar positive levels in recent years. The progression from losses to profitability indicates effective management of expenses, revenue growth, or other operational improvements.

Overall Insights

The financial data reflects a company undergoing strong growth, with expanding asset and equity bases alongside improving profitability. The adjustments related to annual reported and deferred income tax have relatively minor effects on the overall financial metrics, indicating that tax accounting adjustments do not materially distort the company's financial position or performance. The consistent increase in equity compared to liabilities suggests sound financial management and an improving balance sheet structure over the period analyzed.

The financial data exhibits notable improvements in profitability and efficiency metrics over the observed period.

Net Profit Margin

Both reported and adjusted net profit margins demonstrate a significant upward trend from highly negative values in 2020 and 2021 to positive margins by 2023 and further improvement in 2024. Reported net profit margin increased from -106.75% in 2020 to 16.13% in 2024, with adjusted figures closely mirroring this progression. This indicates the company successfully transitioned from substantial losses to profitability during the period.

Total Asset Turnover

The reported and adjusted total asset turnover ratios rise from 0.41 in 2020 to a peak of 0.55 in 2022, reflecting enhanced operational efficiency in utilizing assets to generate revenue. However, turnover ratios slightly decline to 0.49 and 0.45 in 2023 and 2024 respectively, suggesting a modest reduction in asset utilization effectiveness after the peak in 2022.

Financial Leverage

Financial leverage steadily decreases from approximately 1.77-1.79 in 2020 to 1.27 in 2024 for both reported and adjusted data. This trend suggests a reduction in reliance on debt financing or improved equity base, indicating a more conservative capital structure over time.

Return on Equity (ROE)

The ROE figures, both reported and adjusted, mirror the improvement in profitability, increasing from deeply negative values (-76.61% reported and -80.2% adjusted in 2020) to positive results by 2023, reaching approximately 9% in 2024. This progression implies growing shareholder value creation as losses diminish and profits emerge.

Return on Assets (ROA)

ROA follows a similar trajectory, improving from significant negative returns in 2020 (-43.35% reported, -44.82% adjusted) to positive returns in 2023 and 2024 (approximately 7% in 2024). This indicates enhanced overall asset profitability, consistent with profitability margin improvements.

In summary, the data reflects a consistent recovery from heavy losses to profitability, accompanied by a peak and slight decline in asset turnover, and a continuous reduction in financial leverage. The improvements in ROE and ROA further emphasize enhanced operational efficiency and financial health over the period under review.

Net Income Trends

The reported net income attributable to common stockholders showed a significant negative value of -1,166,391 thousand US dollars at the end of 2020. This loss decreased substantially in 2021 to -520,379 thousand US dollars and continued to decline in magnitude in 2022 to -373,705 thousand US dollars. A notable shift occurred in 2023 when reported net income turned positive, reaching 209,825 thousand US dollars, and further increased to 462,190 thousand US dollars by 2024. The adjusted net income followed a similar pattern, starting at -1,186,776 thousand US dollars in 2020 and closing at 461,624 thousand US dollars in 2024. The adjustments appear to have had a relatively minimal impact on net income values across the years.

Net Profit Margin Analysis

Reported net profit margin began at a steep negative level of -106.75% in 2020, indicating substantial losses relative to revenue. The margin improved markedly to -33.75% in 2021, and continued to lessen its negative position to -19.61% in 2022. By 2023, the company transitioned into profitability with a positive profit margin of 9.43%, which further increased to 16.13% in 2024. Adjusted net profit margin figures mirrored these trends closely, starting at -108.61% in 2020 and improving to a positive 16.11% by 2024, showing that adjustments had a minor effect on proportional profitability metrics.

Overall Insights

The data presents a clear recovery trajectory over the five-year span, highlighting the company's transition from significant losses to consistent profitability. The reductions in both absolute losses and negative profit margins suggest effective operational improvements or changes in income tax-related adjustments. The close alignment between reported and adjusted figures implies limited impact from deferred income tax adjustments on net income and margins, underscoring the core business performance as the primary driver behind the financial improvements observed.

Reported and Adjusted Total Assets

The total assets demonstrate a consistent upward trajectory over the five-year period. Beginning at approximately 2.69 billion US dollars in 2020, assets increased to around 3.25 billion in 2021, followed by moderate growth to 3.46 billion in 2022. A more significant increase occurred in 2023, reaching about 4.52 billion, and the trend continued strongly into 2024, with assets peaking at approximately 6.34 billion. Adjusted total assets mirror this pattern exactly, indicating no material adjustments between reported and adjusted figures over the time span analyzed.

Reported and Adjusted Total Asset Turnover

The total asset turnover ratio illustrates variability in the company's efficiency in generating revenue from its asset base. Starting at 0.41 in 2020, there was an improvement to 0.47 in 2021 and a further rise to 0.55 in 2022, representing increased operational efficiency. However, this trend reversed in 2023 when turnover declined to 0.49 and decreased further to 0.45 in 2024. Both the reported and adjusted turnover ratios are identical, underscoring consistency in the adjusted accounting measures.

Overall Insights

The year-over-year growth in total assets signifies an expansion phase for the company, with the most pronounced asset accumulation occurring in the last two years of the period under review. Conversely, despite the asset growth, the asset turnover ratio's peak in 2022 followed by subsequent declines suggests that the incremental assets acquired in the latter years have not translated into proportionate revenue increases. This could imply diminishing asset utilization efficiency or a strategic shift that involves capital accumulation ahead of expected future revenue growth.

The financial data reveals several noteworthy trends in the company's reported and adjusted figures over the five-year period ending in 2024.

Total Assets

Both reported and adjusted total assets demonstrate consistent growth throughout the period. Reported total assets increased from approximately $2.69 billion in 2020 to about $6.34 billion in 2024. The adjusted total assets mirror this trend closely, indicating minor adjustments primarily in the initial year. This steady increase suggests ongoing expansion of the company's asset base, which may reflect acquisitions, capital investments, or organic growth.

Total Stockholders’ Equity

Reported total stockholders’ equity experienced substantial growth, rising from roughly $1.52 billion in 2020 to about $5 billion in 2024. The adjusted equity figures also increased significantly, showing slight upward revisions compared to the reported values in most years. This growth indicates considerable equity value creation over time, enhancing the company's net worth and potentially signaling profitable operations or capital inflows.

Financial Leverage Ratios

Reported financial leverage, calculated as the ratio of total assets to stockholders’ equity, exhibited a declining trend, moving from 1.77 in 2020 down to 1.27 in 2024. Adjusted financial leverage ratios track this trend closely, with a marginally higher ratio in 2020 but aligned figures thereafter. The decreasing leverage ratio points to a relative increase in equity compared to liabilities, implying a strengthening capital structure and reduced financial risk over time.

Overall, the data suggests a positive trajectory in financial stability and growth, with expanding asset and equity bases, alongside a prudent reduction in leverage. The close alignment between reported and adjusted figures indicates consistency and reliability in financial reporting adjustments related to income taxes and deferred items.

Net Income (Loss) Attributable to Common Stockholders

The reported net income attributable to common stockholders exhibited a significant improvement over the examined periods. Beginning with a substantial loss of approximately -1.17 billion USD in 2020, the company reduced its losses considerably by 2021 and 2022, reaching approximately -520 million USD and -374 million USD respectively. By 2023, the trend reversed to positive territory, recording a net income of 209.8 million USD which further increased to 462.2 million USD in 2024. The adjusted net income followed a similar trajectory, showing closely aligned figures to the reported values and confirming the underlying improvement in profitability.

Total Stockholders’ Equity

Both reported and adjusted total stockholders’ equity displayed consistent growth throughout the observed timeframe. Starting from roughly 1.52 billion USD in 2020, equity increased steadily each year, reaching 2.29 billion USD in 2021, 2.57 billion USD in 2022, 3.48 billion USD in 2023, and culminating at about 5.00 billion USD in 2024. The adjusted figures were nearly identical to the reported ones, indicating stable and reliable equity growth. This growth suggests an ongoing strengthening of the company’s capital base and retention of earnings.

Return on Equity (ROE)

The ROE trend mirrored the movement in net income. Negative values were recorded during 2020 through 2022, with the reported ROE improving from -76.61% in 2020 to -14.57% by 2022, indicating a reduction in losses relative to equity. Starting in 2023, ROE turned positive, reaching 6.04%, and further increased to 9.24% in 2024, reflecting improved profitability and more effective use of equity capital. Adjusted ROE percentages were consistently close to the reported values, supporting the conclusion of profitability enhancement. The steady improvement in ROE signifies a transition from heavy losses to generating shareholder value.

Overall Insights

The financial data reveals a clear turnaround from significant losses in the early years to positive earnings and equity returns by 2023 and 2024. The growth of stockholders’ equity coupled with improving ROE suggests strengthening financial health and operational performance. Adjusted figures closely match reported data, implying that the adjustments for income taxes and deferred items have a limited impact on the overall trends. This steady progression indicates a successful strategy in mitigating losses and enhancing shareholder value over time.

The financial data exhibit notable trends across the five-year period, highlighting significant improvement in profitability and asset growth.

Net Income (Loss) Attributable to Common Stockholders

Both reported and adjusted net income figures reveal a substantial reduction in losses over time, culminating in positive net income in the most recent years. Initially, the company faced considerable losses of approximately -$1.17 billion (reported) and -$1.19 billion (adjusted) in 2020. These losses decreased consistently through 2021 and 2022, transitioning to a positive net income by 2023 with reported income of $209.8 million and adjusted income of $205.0 million. In 2024, profitability further improved, with reported and adjusted net incomes rising to approximately $462.2 million and $461.6 million, respectively. The adjustment between reported and adjusted income remains relatively consistent, indicating modest impacts of deferred income tax adjustments on the overall profitability.

Total Assets

Reported and adjusted total assets show continuous growth during the period, with reported assets increasing from about $2.69 billion in 2020 to $6.34 billion in 2024. Adjusted total assets follow a similar trajectory, aside from the slight discrepancy in 2020, signifying minimal adjustments related to deferred income taxes affecting asset valuation. This strong asset growth reflects an expansion in the company’s asset base, more than doubling over five years, which may support the improved profitability trends observed.

Return on Assets (ROA)

The reported and adjusted ROA percentages mirror the net income progression, beginning with highly negative returns in 2020 (-43.35% reported, -44.82% adjusted), indicative of substantial losses relative to asset size. The negative ROA diminishes sharply through subsequent years, improving to -16.02% and -14.69% in 2021 and further to -10.8% in 2022 across both measures. A notable turnaround occurs in 2023 when ROA becomes positive, at approximately 4.6% reported and 4.5% adjusted, and continues to rise to around 7.3% in 2024. The close alignment of reported and adjusted ROA suggests that deferred tax items exert limited influence on asset efficiency metrics.

Overall, the data illustrate a company transitioning from significant losses to sustained profitability, accompanied by a more than doubling asset base. The consistent improvement in ROA alongside rising net income demonstrates enhanced operational efficiency and asset utilization. Adjustments for deferred income taxes appear to have a limited but consistent impact on reported financial figures.