PL

Palantir Technologies Inc. stock research

Dec 31, 2023

FY2023 Q4

Palantir Technologies (PLTR) Gross Margin — Quarter Ended Dec 31, 2023

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both prior periods, as cost of revenue grew at a slower rate than revenue.

Gross margin takeaway

Quarter ended Dec 31, 2023 · FY2023 Q4

Revenue and gross profit both increased compared to the immediately preceding quarter and the same quarter one year earlier. Gross margin improved relative to both prior periods, as cost of revenue grew at a slower rate than revenue.

  • The strongest observable driver is the gross margin figure, which improved sequentially and year-over-year, indicating that a larger share of revenue converted to gross profit in the current period.
  • Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin also improved.

Gross margin snapshot

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

Gross margin

82.1%

Gross profit

$499.7M

Revenue

$608.4M

Cost of revenue

$108.6M

Quarter-over-quarter change

+1.5 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%
Sep 30, 2023$558.2M$450.2M$107.9M80.7%
Dec 31, 2023$608.4M$499.7M$108.6M82.1%

Quarterly comparisons

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

Previous-quarter change

Sep 30, 2023

+1.5 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 strongest observable driver is the gross margin figure, which improved sequentially and year-over-year, indicating that a larger share of revenue converted to gross profit in the current period.

Compared to the immediately preceding quarter, revenue was higher, gross profit was higher, and gross margin improved. Compared to the same quarter one year earlier, revenue was higher, gross profit was higher, and gross margin also improved.

Monitor whether the relationship between cost of revenue and revenue continues to support gross margin improvement in future periods.