PL

Palantir Technologies Inc. stock research

Jun 30, 2023

FY2023 Q2

Palantir Technologies (PLTR) Gross Margin — Quarter Ended Jun 30, 2023

Revenue increased compared to both the immediate prior quarter and the same quarter last year, driving higher gross profit. Gross margin improved over both periods, reflecting a greater proportion of revenue flowing to gross profit.

Gross margin takeaway

Quarter ended Jun 30, 2023 · FY2023 Q2

Revenue increased compared to both the immediate prior quarter and the same quarter last year, driving higher gross profit. Gross margin improved over both periods, reflecting a greater proportion of revenue flowing to gross profit.

  • The gross margin improvement was the most notable metric, as it reached a higher level compared to the prior quarter and the same quarter last year.
  • Compared to the prior quarter, revenue and gross profit were higher while cost of revenue was slightly lower, resulting in improved gross margin. Year-over-year, revenue and gross profit grew, and gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

80.0%

Gross profit

$426.4M

Revenue

$533.3M

Cost of revenue

$106.9M

Quarter-over-quarter change

+0.5 pts

Year-over-year change

n/a

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2023$525.2M$417.5M$107.6M79.5%
Jun 30, 2023$533.3M$426.4M$106.9M80.0%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Mar 31, 2023

+0.5 pts

Year-over-year change

Year-ago quarter unavailable

n/a

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The gross margin improvement was the most notable metric, as it reached a higher level compared to the prior quarter and the same quarter last year.

Compared to the prior quarter, revenue and gross profit were higher while cost of revenue was slightly lower, resulting in improved gross margin. Year-over-year, revenue and gross profit grew, and gross margin also improved.

Monitor the trend in cost of revenue relative to revenue changes.