Palantir Technologies Inc. stock research
FY2024 Q4
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Dec 31, 2024
Revenue and gross profit increased both sequentially and year-over-year, driven by higher revenue. However, gross margin declined compared to the prior quarter and the same quarter last year, as cost of revenue grew faster than revenue.
Gross margin takeaway
Quarter ended Dec 31, 2024 · FY2024 Q4
Revenue and gross profit increased both sequentially and year-over-year, driven by higher revenue. However, gross margin declined compared to the prior quarter and the same quarter last year, as cost of revenue grew faster than revenue.
- The strongest observable margin driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin.
- Compared to the prior quarter, revenue and gross profit were higher, but gross margin was weaker. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin also weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
78.9%
Gross profit
$653.0M
Revenue
$827.5M
Cost of revenue
$174.5M
Quarter-over-quarter change
-0.9 pts
Year-over-year change
-3.2 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2024 | $827.5M | $653.0M | $174.5M | 78.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2024
-0.9 pts
Year-over-year change
Dec 31, 2023
-3.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the faster growth in cost of revenue relative to revenue, which compressed gross margin.
Compared to the prior quarter, revenue and gross profit were higher, but gross margin was weaker. Compared to the same quarter last year, revenue and gross profit were higher, while gross margin also weakened.
Monitor the trend of cost of revenue as a percentage of revenue.