Editor: Emanuele Marabella
Last week:
Palantir reported insane Q3 results, driven by AI Sovereignty:
+96% YoY Revenue to $2.3bn;
+119% YoY US Commercial Revenue to $984mn;
+106% YoY EBIT adj. at 62% Margin;
+144% YoY EPS at 49% GAAP Profit Margin;
+165% Net Dollar Retention.
Despite the spectacular results and the sustained guidance, the stock went down ~7% due to some doubts about TCV:
“The partnership builds on a recent AgentCamp, where Changshin engineers and Palantir worked together with live Changshin data to demonstrate initial workflows. The next phase will build on these starting points to connect development decisions with factory planning and execution.” - Palantir press release
“The partnership marks a fundamental shift in how AmeriLife operates. Rather than layering AI tools on top of existing processes, AmeriLife is building an AI-driven operating model on a single, unified data foundation.” - Palantir press release
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The 165% net dollar retention is the number I keep coming back to, customers spending two thirds more in a year is not a pilot program anymore. Revenue up 96% and the stock still fell 7% on TCV doubts tells me the argument has moved from whether the product works to whether the contract value shows up on scedule. The Thiel 10b5-1 filing for a possible purchase of up to 4 million shares is the detail I did not expect, insiders here basically never buy. Do you read that as a signal about the price, or just Thiel being Thiel?