Palantir Technologies Inc. stock research
FY2023 Q3
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Sep 30, 2023
Revenue, gross profit, and cost of revenue all rose, while gross margin improved sequentially and year-over-year. The increase in revenue and gross profit outpaced the growth in cost of revenue, contributing to the higher gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2023 · FY2023 Q3
Revenue, gross profit, and cost of revenue all rose, while gross margin improved sequentially and year-over-year. The increase in revenue and gross profit outpaced the growth in cost of revenue, contributing to the higher gross margin.
- The strongest observable margin driver is the higher gross profit relative to revenue, as cost of revenue increased at a slower pace. This relationship is reflected in the gross margin improvement across both comparative periods.
- Compared to the immediately preceding quarter, gross margin was higher, with revenue and gross profit both increasing while cost of revenue remained nearly stable. Versus the same quarter one year earlier, gross margin was also higher, as revenue and gross profit grew considerably while cost of revenue was essentially unchanged.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.7%
Gross profit
$450.2M
Revenue
$558.2M
Cost of revenue
$107.9M
Quarter-over-quarter change
+0.7 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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 31, 2023 | $525.2M | $417.5M | $107.6M | 79.5% |
| Jun 30, 2023 | $533.3M | $426.4M | $106.9M | 80.0% |
| Sep 30, 2023 | $558.2M | $450.2M | $107.9M | 80.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2023
+0.7 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 strongest observable margin driver is the higher gross profit relative to revenue, as cost of revenue increased at a slower pace. This relationship is reflected in the gross margin improvement across both comparative periods.
Compared to the immediately preceding quarter, gross margin was higher, with revenue and gross profit both increasing while cost of revenue remained nearly stable. Versus the same quarter one year earlier, gross margin was also higher, as revenue and gross profit grew considerably while cost of revenue was essentially unchanged.
Monitor whether cost of revenue remains stable as revenue continues to grow, given its minimal movement in the current quarter relative to revenue expansion.