Analysis of Geographic Areas
Palantir Technologies Inc. operates in 3 regions: United States; United Kingdom; and Rest of world.
Area Asset Turnover
Palantir Technologies Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 82.73 | 47.81 | 24.92 | 46.94 | 43.23 |
| United Kingdom | 54.06 | 40.21 | 32.75 | 20.70 | 9.94 |
| Rest of world | 59.87 | 46.74 | 33.08 | 116.49 | 131.17 |
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).
- United States
- The asset turnover ratio in the United States exhibited fluctuations over the observed five-year period. Initially, the ratio was high at 43.23 in 2020, followed by a moderate increase to 46.94 in 2021. However, there was a significant decline in 2022 to 24.92, indicating a reduced efficiency in asset usage for generating sales during that year. Subsequently, the ratio rebounded sharply to 47.81 in 2023 and further increased markedly to 82.73 in 2024, suggesting a substantial improvement in asset productivity in the most recent year.
- United Kingdom
- The asset turnover in the United Kingdom showed a consistent upward trend across the period. Starting at 9.94 in 2020, the ratio more than doubled by 2021 to 20.7, continued to increase to 32.75 in 2022, and further rose to 40.21 in 2023. The growth continued in 2024 with a value of 54.06. This steady increase indicates progressively enhanced efficiency in asset utilization in the UK market over the five years.
- Rest of world
- The asset turnover ratio for the Rest of World region started at a notably high level of 131.17 in 2020, then declined to 116.49 in 2021. A sharp decrease occurred in 2022, with the ratio dropping to 33.08. Afterwards, the ratio showed a recovery trend, increasing to 46.74 in 2023 and further to 59.87 in 2024. Despite the initial high turnover, the significant drop in 2022 followed by gradual recovery suggests volatility in asset efficiency in this region.
- Overall insights
- Across all geographic segments, there is evidence of varying degrees of volatility and recovery in asset turnover ratios through the years. The United States and Rest of World exhibited notable declines in 2022 with subsequent recoveries, whereas the United Kingdom demonstrated steady continuous improvement in asset utilization. By 2024, all regions have shown significant gains from previous lows, with the United States reflecting the most marked increase. This pattern may indicate strategic changes, market conditions, or operational adjustments impacting asset turnover efficiency across different regions.
Area Asset Turnover: United States
Palantir Technologies Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 1,900,247) | 1,378,247) | 1,161,416) | 879,156) | 573,549) |
| Property and equipment, net | 22,968) | 28,825) | 46,599) | 18,728) | 13,268) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 82.73 | 47.81 | 24.92 | 46.94 | 43.23 |
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 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 1,900,247 ÷ 22,968 = 82.73
- Revenue
- The revenue showed a consistent upward trend over the analyzed period. Starting at 573,549 thousand US dollars in 2020, it increased significantly each year, reaching 1,900,247 thousand US dollars by 2024. This reflects robust growth with the highest incremental increase observed between 2023 and 2024.
- Property and Equipment, Net
- The net value of property and equipment exhibited fluctuations during the period. It rose from 13,268 thousand US dollars in 2020 to a peak of 46,599 thousand in 2022, indicating a substantial investment or acquisition in assets during that time. Subsequently, the figure declined sharply to 28,825 thousand in 2023 and continued to decrease to 22,968 thousand in 2024, suggesting asset disposals, depreciation, or revaluation impacts.
- Area Asset Turnover Ratio
- The area asset turnover ratio demonstrated variability across the years. Beginning at 43.23 in 2020, it increased slightly to 46.94 in 2021. A pronounced drop to 24.92 occurred in 2022, which corresponds with the peak in property and equipment net values. This implies a temporary decline in efficiency in utilizing assets to generate revenue during that year. The ratio then rebounded strongly to 47.81 in 2023 and surged to 82.73 in 2024, indicating significant improvement in asset utilization efficiency, potentially driven by revenue growth and reduced asset base.
Area Asset Turnover: United Kingdom
Palantir Technologies Inc.; United Kingdom; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 304,575) | 235,257) | 220,942) | 173,362) | 132,427) |
| Property and equipment, net | 5,634) | 5,851) | 6,746) | 8,375) | 13,325) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 54.06 | 40.21 | 32.75 | 20.70 | 9.94 |
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 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 304,575 ÷ 5,634 = 54.06
- Revenue
-
Revenue demonstrates a consistent upward trend across the reported periods. Starting at approximately 132.4 million US dollars in 2020, it rises steadily each year, reaching an estimated 304.6 million US dollars by 2024. This represents more than a doubling of revenue over the five-year span, indicating strong growth in this geographic area.
- Property and equipment, net
-
The net value of property and equipment exhibits a declining pattern over the same timeframe. Beginning at 13.3 million US dollars in 2020, it decreases progressively to 5.6 million by 2024. This reduction may suggest divestment, depreciation, or reduced capital expenditure in tangible assets related to this area.
- Area asset turnover
-
The area asset turnover ratio shows a marked improvement, increasing significantly from 9.94 in 2020 to 54.06 in 2024. This ratio measures how efficiently assets are used to generate revenue. The progressive increase implies enhanced asset utilization efficiency within the geographic segment, aligning with the observed growth in revenue despite declining net property and equipment values.
Area Asset Turnover: Rest of world
Palantir Technologies Inc.; Rest of world; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 660,685) | 611,508) | 523,513) | 489,371) | 386,697) |
| Property and equipment, net | 11,036) | 13,082) | 15,825) | 4,201) | 2,948) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 59.87 | 46.74 | 33.08 | 116.49 | 131.17 |
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 2024 Calculation
Area asset turnover = Revenue ÷ Property and equipment, net
= 660,685 ÷ 11,036 = 59.87
- Revenue Trends
- The revenue in the Rest of world geographic area showed a consistent upward trajectory from 2020 to 2024. It increased from 386,697 thousand US dollars in 2020 to 660,685 thousand US dollars in 2024, reflecting sustained growth over the five-year period. The largest year-over-year increase occurred between 2022 and 2023, indicating an acceleration in revenue generation during that period.
- Property and Equipment, Net
- The net value of property and equipment exhibited notable fluctuations across the years. Beginning at 2,948 thousand US dollars in 2020, it rose significantly to 15,825 thousand US dollars by 2022, suggesting considerable investment or acquisition activities. However, after peaking in 2022, the value declined to 13,082 thousand US dollars in 2023 and further to 11,036 thousand US dollars in 2024. This decline could imply divestments, asset sales, or depreciation effects exceeding new investments post-2022.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures the efficiency of asset utilization in generating revenue, showed a declining trend from 131.17 in 2020 to a low of 33.08 in 2022. This sharp decrease suggests that despite increasing asset values, revenue growth did not keep pace with asset accumulation during this interval. However, the ratio improved from 33.08 in 2022 to 59.87 in 2024, indicating enhanced asset utilization efficiency in the latter years, though it had not yet returned to the higher levels seen at the start of the period.
- Overall Observations
- Overall, the Rest of world segment demonstrated revenue growth alongside fluctuating asset investments and changing asset efficiency. The initial phase showed rapid asset accumulation with declining turnover efficiency, followed by an adjustment phase where asset values reduced and turnover efficiency improved. This pattern may signal strategic shifts in asset management or market conditions affecting the balance between capital deployment and revenue generation.
Revenue
Palantir Technologies Inc., revenue by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 1,900,247) | 1,378,247) | 1,161,416) | 879,156) | 573,549) |
| United Kingdom | 304,575) | 235,257) | 220,942) | 173,362) | 132,427) |
| Rest of world | 660,685) | 611,508) | 523,513) | 489,371) | 386,697) |
| Total | 2,865,507) | 2,225,012) | 1,905,871) | 1,541,889) | 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).
The revenue data over the five-year period from 2020 to 2024 reveals consistent growth across all geographic regions, with the total revenue steadily increasing each year. The United States represents the largest revenue segment and demonstrates a marked upward trajectory. Beginning at approximately $573.5 million in 2020, revenue from this region nearly triples to over $1.9 billion by 2024, reflecting sustained expansion and a significant contribution to the company's overall growth.
The United Kingdom also exhibits a positive growth trend. Revenue rises from about $132.4 million in 2020 to roughly $304.6 million in 2024, more than doubling over the period. This steady increase suggests strengthening market presence and successful revenue generation in this region.
The Rest of World category shows more moderate growth compared to the other regions. Starting from approximately $386.7 million in 2020, the revenue climbs to about $660.7 million in 2024. Although the rate of increase is slower, this segment remains a significant contributor to total revenue and demonstrates a positive trend.
Overall, total revenue increases from roughly $1.09 billion in 2020 to nearly $2.87 billion in 2024, reflecting a compound growth pattern. The United States drives the majority of this increase, supported by noticeable contributions from the United Kingdom and the Rest of World. The data indicates effective geographic diversification with expanding revenue streams in all regions.
- United States Revenue
- Shows continuous and robust growth, increasing more than threefold from 2020 to 2024.
- United Kingdom Revenue
- Exhibits steady revenue gains with more than a twofold increase over the five-year period.
- Rest of World Revenue
- Displays consistent but more gradual growth, maintaining a meaningful share of total revenue.
- Total Revenue
- Reflects a clear upward trend aligned with the expansion in all geographic areas, nearly tripling during the analyzed period.
Property and equipment, net
Palantir Technologies Inc., property and equipment, net by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| United States | 22,968) | 28,825) | 46,599) | 18,728) | 13,268) |
| United Kingdom | 5,634) | 5,851) | 6,746) | 8,375) | 13,325) |
| Rest of world | 11,036) | 13,082) | 15,825) | 4,201) | 2,948) |
| Total | 39,638) | 47,758) | 69,170) | 31,304) | 29,541) |
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).
- Overall Trend
- The total net property and equipment across all geographic areas exhibited a significant increase from 29,541 thousand US dollars in 2020 to a peak of 69,170 thousand US dollars in 2022. Following this peak, the total value declined markedly to 47,758 thousand US dollars in 2023 and further to 39,638 thousand US dollars in 2024. This indicates a substantial expansion phase followed by a phase of contraction or asset divestiture.
- United States
- The United States segment showed a consistent upward trend from 13,268 thousand US dollars in 2020 to a peak of 46,599 thousand US dollars in 2022, representing more than a threefold increase. However, after 2022, the net property and equipment value decreased to 28,825 thousand US dollars in 2023 and further to 22,968 thousand US dollars in 2024. Despite the decline, the 2024 value remains higher than the 2020 and 2021 levels, indicating a net growth over the five-year period but a significant reduction from the peak year.
- United Kingdom
- The United Kingdom area experienced a steady decline in net property and equipment from 13,325 thousand US dollars in 2020 to 5,634 thousand US dollars in 2024. This continuous decrease suggests either asset disposals, impairment, or reduced capital expenditure in this region throughout the period. The decline is consistent, with no periods of growth noted.
- Rest of World
- The rest of the world category demonstrated growth from 2,948 thousand US dollars in 2020 to a significant peak of 15,825 thousand US dollars in 2022. Similar to the United States, there was a subsequent decrease to 13,082 thousand US dollars in 2023 and further to 11,036 thousand US dollars in 2024. Despite the reduction after 2022, the 2024 figure remains substantially above the 2020 and 2021 levels, indicating overall expansion with partial contraction.
- Summary
- The data reflects a pronounced growth in net property and equipment assets primarily in the United States and rest of world segments leading up to 2022, followed by a notable decrease over the next two years. In contrast, the United Kingdom segment experienced a consistent decline over the entire period. The peak in 2022 across all geographic categories suggests a period of significant capital investment or acquisition of assets, while the ensuing reductions may indicate strategic asset reallocation, disposals, or adjustments due to operational or financial considerations.