So is Pilot there finally a buy after the third quarter earnings we saw yesterday. That's a question in everybody's mind. Now look, let's dive deep into the Q3 results. and let's talk about it. First of all, we know one thing. Pilot Theory reported revenues of 478 million dollars, which slightly beat estimates by a couple million dollars. So I would say it was technically a beat, but realistically, this was on par with expectations I Don't think it's actually a beat. Nevertheless, it's still quite impressive given the fact that just two years ago in Q3 of 2020, Palantir did 290 million dollars. That's a 64 increase in just two years now. The issue that investors have with this number that it also has a flip side. This means that we only saw 21.6 growth rate in revenues from 2021 until now. But given what happened in the past year, with you know, the tail end of the pandemic, the worst inflation 40 years, the war in Ukraine, a recession around the corner kind of I'm kind of willing to give them the benefit of the doubt. here. you know, not the best economic conditions. So 21.6 although not something to write home above for a company like volunteer, it's good enough to keep the needle moving, at least in my book. Now moving on, we found out that the company reaffirmed its Revenue guidance for the full year of 2022 for 1.9 billion dollars. Which means that if they hold true to that, we're gonna have the first 500 million dollar quarter in Palantir's history, which is absolutely massive. I'm excited to see that happen. It's a nice big milestone, which is something I Spoke about yesterday my video. But beyond the historic Milestone the growth rate of revenues is concerning if you look at the previous years. If you look at the first half of 2022, I mean look. Palantir is aiming for an annual growth rate of about 23.3 percent for the rest of this year. Now, if you look at the first six months of this year, compared to the previous year, we have 28 Revenue growth. Now we just had a 22 quarter Right now. if you calculate 28 22 and at 23.3 rate for the rest of the year, it means that Q4 Revenue growth is going to be 16. So I Cannot lie. there's definitely a Slowdown in Revenue growth for the rest of this year. It's not something we're going to put under the rug and completely ignore. Now, looking at it a little bit deeper, we can see the root cause of this is coming from the commercial business of all places, not the government business. This category is primarily like us dominated. You all know this as a Palantir investor I'm assuming at this point, right? But we did see a deceleration growth from 120 in the previous quarter to just 53 Growth in Q3 Just 53 I mean everything is in context, but I mean if you went from 120 to 53, there's definitely a problem. We can't ignore it now. I'm assuming personally that this has something to do with the weak macroeconomic conditions I mean we saw similar results from Google from Amazon Other companies are suffering from the same kind of B to B you slender I Mean there's a lot of problems right now. People are basically slashing budgets, spending is reduced, Everybody is fearful. You know Enterprise software sector is actually in the shelter waiting for the decision to come. Everybody is afraid. nobody wants to spend any money. You know what they say. Right when the macroeconomic condition sneezes, everybody gets wet. Polyte is not excluded from that. I mean they're a regular company like everybody else and they also feel the macroeconomic pain. Now here's the problem. I'd Love to get more clarity on this from the management, which we haven't yet, but hold on a second. Maybe we will in the future. maybe we won't I Don't know. but here's the thing. I'd Like to take a look at this whole story from a kind of an annual basis. I Think looking at it on a quarter by quarter in an isolated fashion is like, you know, being an ant on the football pitch. Every piece of grass looks like a ginormous building. When you're up at the bleachers, it looks completely different. So let's go to the bleachers for a second, right? By the time 2022 is over and done right, Palantir will achieve a 23.3 revenue growth now, according to their guidance. Now that shows me that Palantir is learning how to play football in the rain and in the snow in the elements, they've improved their go-to-market strategy. We know that Foundry is selling better than ever. Look at the customer account growth, you can see that the idea is to get your foot through the door and to trust the sticky products and your net dollar retention to increase the actual spend over the years. And with that system, it takes time to actually see the revenues. Pile In that's just normal. it's kind of a lost leading strategy. Now for me, the test is actually down the road for multiple reasons. Number one: I Want to see that strategy actually pan out? Can we see these customers who actually just basically got through the door actually increased their net daughter spend? And also I Want to see what's going on with the acceleration of the growth? As long as Q1 of 2023 is not going to continue in this decelerated growth trend, I'll be fine, I'll take the 23.3 growth this year and I'll just move on, no problem. That, in my mind, is going to be the big test whether this decelerated trend continues to the next quarter. basically the first quarter of next year as well. Now about that, we know the FED is tightening the monetary policy. The monetary conditions are going Tighter and Tighter They're basically putting us in a collusion course with some bad times in 2023. We know that. However, operationally speaking, if you ignore the you know reaction of the market, this company can weather the storm pretty darn good. I mean zero debt 2.4 billion in cash, including an emergency 950 million dollars credit line. They secure just the score just in case. By the way, you can actually look it up, it says that in the report. given the fact it's not burning through any cash flow, it's actually cash flow positive. I Feel very relaxed going into this horrible year as a Palantir shareholder. Now, while the growth in earnings is trending down over the past two years, Palantir's customer count as I mentioned earlier is actually very impressive. It's actually trending upwards. Over the past year, the company grew its customer account by 66 percent in a year. In the bad year, while maintaining about 20 Revenue growth and a positive operating free cash flow I mean that's not bad. but Tom What about stock based compensation? What about Insider selling? Well, First of all, beyond the fact that Alex Carp did not sell a single parental share in over a year, I Have to admit that using stock based compensation, paying employees with stocks is one of the reasons Palantir is generating all that positive cash flow. True, However, look at the number guys. Even those of you who don't like volunteer, go and check me on this. From 2020 to 2021, the share count of Planetary more than doubled as it went from 900 million shares to 1.9 billion shares. But things have changed and things are changing. Over the past year, Palantir share count only increased by 5.5 percent from 1.95 billion to 2 billion shares. That's it. Now it's a high growth rate for the share count, but for a high growth company which is giving you 20 a year Revenue growth. five percent dilution is on par with the industry standards, and it's not unusual. So here's my bottom line here. The numbers this quarter were good. much better than I personally expected given how bad Q2 was. So maybe I'm a victim of my own low expectations perhaps. but I think it's partially because of the macroeconomic environment. I Think there's a lot going on around Palantir, which is not strictly about the company itself. You know there are plenty of reasons to be concerned about deceleration of the revenue mainly, but I'm optimistic since I see some impressive customer growth which I know combined with 120 net door retention, volunteer has is going to convert to increased revenues over the years, especially in the US. And speaking about the US, the U.S momentum is pretty darn amazing. I Mean government contracts have provided an anchor for the company even in bad times. 130 growth in commercial customers in the US Very impressive therefore. Bottom line: my long-term thesis as a parenting investor is unchanged and given the lower share price and my unchanged thesis, I will be increasing my position in the next few days. So I Thought you should know this as always, thank you for watching if you want to see the recap of the actual numbers. I've done it yesterday. I'm going to put the video right here sorry right here. Go check it out right now. Full Numbers Recap: I'll see you there in just a minute.