PL

Palantir Technologies Inc. stock research

Jun 30, 2024

FY2024 Q2

Palantir Technologies (PLTR) Gross Margin — Quarter Ended Jun 30, 2024

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter one year earlier. Gross margin slightly weakened from the prior quarter but improved relative to the year-ago quarter.

Gross margin takeaway

Quarter ended Jun 30, 2024 · FY2024 Q2

Revenue, gross profit, and cost of revenue all increased compared to both the prior quarter and the same quarter one year earlier. Gross margin slightly weakened from the prior quarter but improved relative to the year-ago quarter.

  • Gross profit grew in absolute terms, but the gross margin percentage declined sequentially because the cost of revenue increased more relative to revenue than it did in the prior quarter. The year-over-year comparison shows gross margin improved as revenue growth outpaced the rise in cost of revenue over the longer period.
  • Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher while gross margin was slightly lower. Compared to the same quarter one year ago, all four metrics were higher, with gross margin improved.

Gross margin snapshot

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

Gross margin

81.0%

Gross profit

$549.6M

Revenue

$678.1M

Cost of revenue

$128.6M

Quarter-over-quarter change

-0.6 pts

Year-over-year change

+1.1 pts

Quarterly gross margin trend

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

PeriodRevenueGross profitCost of revenueGross margin
Sep 30, 2023$558.2M$450.2M$107.9M80.7%
Dec 31, 2023$608.4M$499.7M$108.6M82.1%
Mar 31, 2024$634.3M$518.1M$116.3M81.7%
Jun 30, 2024$678.1M$549.6M$128.6M81.0%

Quarterly comparisons

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

Previous-quarter change

Mar 31, 2024

-0.6 pts

Year-over-year change

Jun 30, 2023

+1.1 pts

What the margin says

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

Gross profit grew in absolute terms, but the gross margin percentage declined sequentially because the cost of revenue increased more relative to revenue than it did in the prior quarter. The year-over-year comparison shows gross margin improved as revenue growth outpaced the rise in cost of revenue over the longer period.

Compared to the prior quarter, revenue, gross profit, and cost of revenue were higher while gross margin was slightly lower. Compared to the same quarter one year ago, all four metrics were higher, with gross margin improved.

Monitor whether the trend of cost of revenue increasing at a faster rate than revenue continues, as it may affect the stability of the gross margin.