Palantir Technologies Inc., net profit margin, long-term trends, calculation

	Net profit margin	=	100	×	Net income (loss) attributable to common stockholders¹	÷	Revenue¹
Dec 31, 2024	16.13%	=	100	×	462,190)	÷	2,865,507)
Dec 31, 2023	9.43%	=	100	×	209,825)	÷	2,225,012)
Dec 31, 2022	-19.61%	=	100	×	(373,705)	÷	1,905,871)
Dec 31, 2021	-33.75%	=	100	×	(520,379)	÷	1,541,889)
Dec 31, 2020	-106.75%	=	100	×	(1,166,391)	÷	1,092,673)

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).

¹ US$ in thousands

The net profit margin exhibited a significant improvement over the observed period. Initially negative, the metric progressed towards positive values, demonstrating increasing profitability. This analysis details the observed trends in net profit margin alongside its contributing factors.

Net Profit Margin Trend: In 2020, the net profit margin was -106.75%, indicating substantial net losses relative to revenue. This figure improved considerably to -33.75% in 2021, suggesting a reduction in the magnitude of net losses. The trend continued in 2022, with the net profit margin reaching -19.61%, further narrowing the loss. A pivotal shift occurred in 2023, as the net profit margin turned positive at 9.43%, signifying the company achieved net income. This positive trend accelerated in 2024, with the net profit margin reaching 16.13%, representing a substantial increase in profitability.
Relationship to Revenue: Revenue consistently increased throughout the period, moving from US$1,092,673 thousand in 2020 to US$2,865,507 thousand in 2024. While revenue growth was present in all years, the improvement in net profit margin was not solely driven by revenue increases. The substantial shift from negative to positive net profit margin, particularly between 2022 and 2023, suggests improvements in cost management and/or operational efficiency alongside revenue growth.
Net Income Progression: Net income (loss) attributable to common stockholders mirrored the trend in net profit margin. Beginning with a loss of US$1,166,391 thousand in 2020, the losses decreased to US$520,379 thousand in 2021 and US$373,705 thousand in 2022. The company then reported a net income of US$209,825 thousand in 2023, which increased to US$462,190 thousand in 2024. This progression directly correlates with the improving net profit margin, confirming the transition to profitability.

Overall, the observed trend indicates a significant turnaround in financial performance, with a clear progression towards increased profitability as evidenced by the improving net profit margin and positive net income in the later years of the period.

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Palantir Technologies Inc., net profit margin, long-term trends, comparison to competitors

	Palantir Technologies Inc.	Accenture PLC	Adobe Inc.	AppLovin Corp.	Cadence Design Systems Inc.	CrowdStrike Holdings Inc.	Datadog Inc.	International Business Machines Corp.	Intuit Inc.	Microsoft Corp.	Oracle Corp.	Palo Alto Networks Inc.	Salesforce Inc.	ServiceNow Inc.	Synopsys Inc.	Workday Inc.
Dec 31, 2024	16.13%	11.19%	25.85%	33.55%	22.74%	2.92%	6.85%	9.60%	18.19%	35.96%	19.76%	32.11%	11.87%	12.97%	36.94%	19.02%
Dec 31, 2023	9.43%	10.72%	27.97%	10.87%	25.46%	-8.18%	2.28%	12.13%	16.59%	34.15%	17.02%	6.38%	0.66%	19.30%	21.05%	-5.90%
Dec 31, 2022	-19.61%	11.17%	27.01%	-6.84%	23.84%	-16.18%	-2.99%	2.71%	16.23%	36.69%	15.83%	-4.85%	5.45%	4.49%	19.38%	0.57%
Dec 31, 2021	-33.75%	11.69%	30.55%	1.27%	23.29%	-10.59%	-2.02%	10.01%	21.41%	36.45%	33.96%	-11.72%	19.16%	3.90%	18.02%	-6.54%
Dec 31, 2020	-106.75%	11.52%	40.88%	—	22.02%	-29.45%	-4.07%	7.59%	23.78%	30.96%	25.94%	-7.83%	0.74%	2.62%	18.03%	-13.25%