Stock Analysis on Net
Stock Analysis on Net

Palantir Technologies Inc. (NASDAQ:PLTR)

Common-Size Income Statement 

Palantir Technologies Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of revenue -19.75 -19.38 -21.44 -22.01 -32.26
Gross profit 80.25% 80.62% 78.56% 77.99% 67.74%
Sales and marketing -30.98 -33.48 -36.86 -39.85 -62.57
Research and development -17.72 -18.19 -18.87 -25.13 -51.31
General and administrative -20.71 -23.57 -31.29 -39.66 -61.27
Operating expenses -69.42% -75.23% -87.02% -104.65% -175.15%
Income (loss) from operations 10.83% 5.39% -8.46% -26.66% -107.41%
Interest income 6.87 5.96 1.07 0.10 0.43
Interest expense 0.00 -0.16 -0.21 -0.24 -1.29
Other income (expense), net -0.63 -0.54 -11.34 -4.89 0.38
Income (loss) before (provision for) benefit from income taxes 17.07% 10.66% -18.94% -31.68% -107.90%
(Provision for) benefit from income taxes -0.74 -0.89 -0.53 -2.07 1.16
Net income (loss) 16.33% 9.77% -19.47% -33.75% -106.75%
Net income attributable to noncontrolling interests -0.20 -0.34 -0.14 0.00 0.00
Net income (loss) attributable to common stockholders 16.13% 9.43% -19.61% -33.75% -106.75%

Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).

Revenue and Cost Structure
Revenue remained constant as a baseline at 100% throughout the periods analyzed. The cost of revenue, expressed as a percentage of revenue, showed a consistent decline from -32.26% in 2020 to a low near -19.38% and -19.75% in 2023 and 2024, respectively. This indicates improving gross margin efficiency over time.
Gross Profit
Gross profit exhibited a positive trend, increasing from 67.74% in 2020 to above 80% in 2023 and 2024. The gradual increase in gross profit margin reflects effective cost management relative to revenue, enhancing overall profitability at the gross level.
Operating Expenses
All components of operating expenses as a percentage of revenue decline significantly during the period. Sales and marketing expenses decreased from -62.57% in 2020 to -30.98% in 2024. Research and development costs sharply decreased from -51.31% to -17.72%, and general and administrative expenses fell from -61.27% to -20.71%. Collectively, operating expenses dropped from -175.15% in 2020 to -69.42% in 2024, indicating considerable operating leverage gains and more disciplined spending.
Operating Income
Income from operations improved markedly across the periods, moving from a negative -107.41% in 2020 to positive territory by 2023 (5.39%) and further to 10.83% in 2024, reflecting turnaround in operational profitability driven by reduced expenses and improved gross margins.
Financial Income and Expense
Interest income fluctuated but increased significantly from 0.43% in 2020 to 6.87% in 2024, providing additional income. Interest expense declined steadily from -1.29% in 2020 to -0.16% by 2023, with no value reported for 2024, suggesting reduced borrowing costs or debt. Other income (expense) was notably negative at times, mainly in 2021 and 2022, but near break-even in later years.
Pre-Tax and Net Income
Income before taxes improved from a substantial loss of -107.9% in 2020 to a positive 17.07% in 2024, mirroring the trends seen in operating income and financial income gains. The tax provision fluctuated minimally but remained relatively low in percentage terms. Net income followed the improvement trend, moving from a significant loss of -106.75% in 2020 to a positive 16.33% in 2024. Net income attributable to common stockholders also shows parallel improvement.
Summary
The company demonstrated a strong recovery and strengthening of financial health over the five years. Key metrics such as gross profit margin and operating income improved substantially due to effective cost control, especially in operating expenses. Increasing interest income and reduced interest expense further supported bottom-line gains. As a result, net income turned from significant losses to positive returns, signaling improved profitability and operational efficiency by the end of the period analyzed.