Palantir Technologies Inc. stock research
FY2024 Q3
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while gross margin slightly declined. The filing context notes that the company generated positive operating cash flow and maintained strong liquidity, with no outstanding debt.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2024 Q3
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while gross margin slightly declined. The filing context notes that the company generated positive operating cash flow and maintained strong liquidity, with no outstanding debt.
- The primary observable factor affecting gross margin was the relative growth of cost of revenue. Although revenue increased, cost of revenue rose at a higher pace, causing gross margin to decline modestly.
- Compared to the immediately preceding quarter, gross margin was slightly lower, while revenue and gross profit were higher. Versus the same quarter one year earlier, gross margin was also slightly lower, despite higher revenue and gross profit.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
79.8%
Gross profit
$578.9M
Revenue
$725.5M
Cost of revenue
$146.6M
Quarter-over-quarter change
-1.3 pts
Year-over-year change
-0.9 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 |
|---|---|---|---|---|
| Dec 31, 2023 | $608.4M | $499.7M | $108.6M | 82.1% |
| Mar 31, 2024 | $634.3M | $518.1M | $116.3M | 81.7% |
| Jun 30, 2024 | $678.1M | $549.6M | $128.6M | 81.0% |
| Sep 30, 2024 | $725.5M | $578.9M | $146.6M | 79.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.3 pts
Year-over-year change
Sep 30, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The primary observable factor affecting gross margin was the relative growth of cost of revenue. Although revenue increased, cost of revenue rose at a higher pace, causing gross margin to decline modestly.
Compared to the immediately preceding quarter, gross margin was slightly lower, while revenue and gross profit were higher. Versus the same quarter one year earlier, gross margin was also slightly lower, despite higher revenue and gross profit.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has been a drag on gross margin.