Palantir Technologies Inc. stock research
FY2024 Q1
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Mar 31, 2024
Revenue increased and gross profit rose, while cost of revenue also grew, leading to a slightly lower gross margin compared to the prior quarter. Relative to the same quarter one year earlier, revenue and gross profit both improved, and gross margin strengthened.
Gross margin takeaway
Quarter ended Mar 31, 2024 · FY2024 Q1
Revenue increased and gross profit rose, while cost of revenue also grew, leading to a slightly lower gross margin compared to the prior quarter. Relative to the same quarter one year earlier, revenue and gross profit both improved, and gross margin strengthened.
- Gross profit growth outpaced revenue growth when comparing to the same quarter one year earlier, supporting gross margin improvement over that period. The relationship between cost of revenue and revenue was the primary observable driver of margin changes.
- Compared with the immediately preceding quarter, gross margin weakened slightly as cost of revenue rose more than proportionally to revenue. Versus the same quarter one year earlier, gross margin improved, driven by a stronger relationship between revenue growth and cost of revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.7%
Gross profit
$518.1M
Revenue
$634.3M
Cost of revenue
$116.3M
Quarter-over-quarter change
-0.5 pts
Year-over-year change
+2.2 pts
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 |
|---|---|---|---|---|
| Jun 30, 2023 | $533.3M | $426.4M | $106.9M | 80.0% |
| Sep 30, 2023 | $558.2M | $450.2M | $107.9M | 80.7% |
| Dec 31, 2023 | $608.4M | $499.7M | $108.6M | 82.1% |
| Mar 31, 2024 | $634.3M | $518.1M | $116.3M | 81.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2023
-0.5 pts
Year-over-year change
Mar 31, 2023
+2.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross profit growth outpaced revenue growth when comparing to the same quarter one year earlier, supporting gross margin improvement over that period. The relationship between cost of revenue and revenue was the primary observable driver of margin changes.
Compared with the immediately preceding quarter, gross margin weakened slightly as cost of revenue rose more than proportionally to revenue. Versus the same quarter one year earlier, gross margin improved, driven by a stronger relationship between revenue growth and cost of revenue.
Monitor the trend in cost of revenue relative to revenue to assess whether gross margin can sustain its year-over-year improvement.