Palantir Technologies (PLTR) reported strong financial performance for the fiscal year ending December 31, 2024. The company achieved a total revenue of $2.87 billion, representing a 29% year-over-year growth compared to $2.23 billion in 2023. This growth was driven by both government and commercial segments, with government revenue increasing by 28% to $1.57 billion and commercial revenue growing by 29% to $1.30 billion.

Gross profit for 2024 was $2.30 billion, reflecting a gross margin of 80%, slightly lower than the 81% gross margin in 2023. The decline in gross margin was attributed to a 31% increase in the cost of revenue, primarily due to higher subcontractor expenses, stock-based compensation, and third-party cloud hosting costs.

Operating income improved significantly to $310.4 million in 2024, compared to $120.0 million in 2023. Adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes, was $1.13 billion, reflecting an adjusted operating margin of 39%, up from 28% in 2023.

Net income attributable to common stockholders surged to $462.2 million in 2024, a substantial increase from $209.8 million in 2023. This improvement was supported by higher revenue and operational efficiencies. The company also reported basic and diluted earnings per share of $0.21 and $0.19, respectively, compared to $0.10 and $0.09 in 2023.

Palantir's customer base expanded significantly, reaching 711 customers in 2024, up from 497 in 2023. This growth reflects increased adoption of Palantir's software platforms across both government and commercial sectors. Notably, U.S. commercial revenue grew by 54% year-over-year, highlighting strong domestic demand.

Operating expenses increased by 19% to $1.99 billion in 2024, driven by higher sales and marketing, research and development, and general and administrative costs. Stock-based compensation expenses rose by 45% to $691.6 million, primarily due to new equity grants and the acceleration of market-vesting stock appreciation rights.

Palantir generated $1.15 billion in cash flow from operating activities in 2024, a significant increase from $712.2 million in 2023. The company ended the year with $5.2 billion in cash, cash equivalents, and short-term U.S. Treasury securities, and no outstanding debt, reflecting a strong liquidity position.

The company repurchased 2.1 million shares of its Class A common stock for $64.2 million in 2024, under its Share Repurchase Program. Approximately $935.8 million remains available for future repurchases, indicating continued shareholder return initiatives.

Palantir's management highlighted potential risks to sustaining revenue growth, including macroeconomic factors, increased competition, and variability in customer demand. Despite achieving profitability in recent quarters, the company anticipates rising operating expenses as it continues to expand its business and invest in growth initiatives.