All right. Okay I think we're live. Welcome everybody! So as you can see on the screen, we have about 30 minutes to go to the call which is the focus of today's live stream and now I have to apologize for the audio quality and the video quality. It's going to be ghetto as so.

just demonetize the stream right here. So I'm in a hotel basement so the Wi-Fi here is going to be dog trash. so I don't know if you can hear me if you can see me I don't even know if you guys can hear me at this point whatsoever. So before we even start this live stream, let's first make sure that you guys can even hear what I got to say.

so let me know in the chat if you can hear me if you can see me because at this point I don't know. Um, right now I'm in France it's uh, 10 30 p.m over here I've been in the pool all day so that's uh why I'm red and shiny good. So again, I'll do it as long as the conditions allow it. which means as long as we have Wi-Fi and we have audio and we have video even if it's not quality.

I'm gonna do the live stream. So the idea of this live stream I didn't want to jump the gun I could have jumped on about you know, 45 minutes ago and beat everybody to the punch. That's not the point this. I Want to come in cool headed, leveled, relax.

There's no point in panicking and like oh he's like oh my God oh my God oh my God We're not gonna do this. This is unhealthy. So the idea is to come in about 30 minutes before the earnings call so we can, you know, talk about it and discuss about it like in a calm Manner and uh, you know, just to kind of work through the numbers together without getting over hyped and over excited about what's going on. So number one, we have a initial results I'm going to pull up on the screen since we have a half hour until the actual call.

So again, apologize for the video quality I Know it's bad I Know the audio quality is bad I Get it? I Totally understand that's not the level of live streams I Want to present usually, but you know I'd rather do it this way than just to miss the entire live stream all together. So let's go through the numbers so the numbers are out. There's no point in rushing through it. We have half an hour to do this slowly.

So Q2 Highlights: So first of all, Gap or stability check third quarter of Gap of the ability is in the books. and by the way, if through the Stream we have a certain issues with audio and video, let me know right away. Okay, so gap of stability for the third consecutive quarter. As you can see, they actually wrote it down here.

This was not a huge surprise. We knew This is coming. That's actually something that you know. It wasn't really a special thing to look forward to these earnings.

We knew about that. Gap Income from Operations 10 million dollars two percent margin second consecutive quarter of Gap Operating Profitability Now there's a huge difference between Gap or stability Gap Operating profitability Again, this is a huge milestone for Palantir not to be discounted adjusted DPS of five cents Revenue Grew by 13 year over year to 533 million. Now this thing is why you see that. the share price tanking.

I Don't know if you guys checked it out, but the share price is tanking right now a little bit and it's doing that because of that. So in my video yesterday I told you that what I think is going to happen is this: Benchmark is going to be very meaningful for how this earnings session plays out and I'm going to make a little bit larger on the screen so you guys can can see exactly what I'm talking about. So I'm talking about this specific part. So in my video yesterday I said look guys uh what? Wall Street is going to look at with Palantir is a few numbers and one of the crucial numbers with Palantir is going to be Revenue growth.

So again, Revenue growth is 13. It's not bad. It's not good. it's absolutely normal.

the company still growing in a very challenging macro. In my opinion, it's not a huge deal. the the I wouldn't even look at the share price right now because the share price is going to be absolutely insane During this time. Everything is going to be basically pretty much said and done after the call, before the call.

During the call, people are going to sell. There's people going to buy. The shipper is going to go up. It's going to be down.

It's going to be manic depressive as hell. This isn't the time it it was. You know it was read five minutes ago. Now I'm looking at it.

it's up Two percent. Five minutes ago it was down five percent. So everybody needs to calm the down. This isn't the time to look at the share price.

The share price is going to be jumping around. Absolutely insane. Now to me personally, to me, looking at this 13 Revenue growth year over year to 533 is a little bit underwhelming because you know we expected them at least to maintain that. 18 16 13 is a little bit underwhelming.

but let's not, you know, uh, for a pity party here because there's still Group 13 year of a year in a very challenging macro environment High Interest environment Etc Etc So it's not amazing, but it's definitely a I would call it serviceable. So 13 growth year over year is serviceable. It's nothing to write home about, and that's why. Potentially we saw the initial stock drop a little bit, but it's absolutely okay in this environment.

I'll accept it and the you know that's that's fine. The main thing about this we'll talk about the second will be the guides. Uh, the guys. We'll look at it in a second.

The guidance is going to be where it's at. Uh, because at this point you know, uh, we already kind of knew that it's going to be a decline in the Um and revenue growth. But the main point would be to look at the guides. So um, we'll go through it in a second.

Don't worry about it. so let's keep going through the numbers. Let's stay calm here. Um, somebody says red to Green due to live stream I I Highly dive.

Doubt it match I Highly doubt it. that's the the live stream doing that. Um WJ King is saying in this macro. it's positive.

Take it. I 100 Agree. Yes, it's not amazing. It's definitely it's definitely okay.

13 This micro environment. Absolutely great. Yes I Know that it's not a let's talk about Felix There was an announcement about a buyback of one billion, but that's kind of in the framework agreement in which the company says that in concept they'll do a 1 billion share buyback at some point. They've never said exactly when and how and how fast, so this is some something to kind of take in proportion.

They're talking about a buyback. It's some sort of a framework idea in which they want to do it. I Don't think it's going to be operational today or tomorrow. It's just something to kind of.

They're trying to talk the language of Wall Street and that's okay. I Totally understand, but it's not a one billion buyback today that's announced as far as if. Um, yeah. I Agree with that planet is still under, but let's keep going through numbers real quick.

Uh, thank you for everybody who letting me know that they can see me and hear me. Um, okay again, don't worry about the short price. the share price is going to be up and down like craziness. Craziness is going to be part of this, at least until our car starts to speak in a second.

Okay, so Commercial Revenue grew 10 year over year. That's nice U.S Commercial Revenue Group By 20. That's nice. Government is pretty in line with previous quarters.

International government grew by 31. That's actually pretty cool. We talked about a geographical risks for Palantir and how would they need to expand outside the United States Um yes. I am on vacation.

we're not I'm in France currently in the basement in the hotel so that's why that's that's live stream looks like that. Um so anyways, that's nice to see International Growth going 31 and customer Crown 38 Growth year over year. Beautiful. Use Commercial Customer account 35 That's nice.

Cash operations of 90 million dollars with 17 margin. That's pretty cool. Uh, Cash and cash equivalents of 3.1 billion? Pretty much unchanged. So uh, first half of the Year highlights a 1.1 billion? That's pretty much you know that's a TTM credit involvement base of 2.2 billion dollars at this point, and not bad for a company that you know barely scratched a billion just.

uh, yesterday Pretty much. Um Gap Income of 45 million gapping confirm prices of 14 million so everything isn't positive. Everything is in green. Adjusted income of 260 million I Wouldn't put too much emphasis on adjusted income.

Uh, cash operation is positive adjusted three cash or positive. So a lot of positivity on the bottom line numbers, which is pretty cool for a company that was criticized for being pretty much unprofitable. Um I Want you guys to see this right here? Um Revenue Okay, Outlook for Q3 2023 I Think this is the most important part. Okay, outlook for Q3 2023 Okay, let's talk about it together.

Uh, I'm not a nearing Disney actually in at the different region in France I mean Provence Um, Okay, so let's talk about it. Um, that's not far from. uh I'm just kidding. I'm just kidding.

Um, Okay, so let's let's talk about what we have with the outlook here. So as far as outlook for the stock uh, revenue of between 553 and 557, that's a very generous growth quarter of a quarter. Um, full year 2023. Raising the revenue guidance to 2.2 We said that's the current 12 months pace of 2.2 billion dollars, raising it just income to 576.

And yes, it's going to be another gap of Stability quarter. I Think that's the key for Wall Street Um, again, if you want to see the the bad stuff we talked about at 13 is pretty much 13 Revenue Growth year over year is a decrease at the pace at which revenues are growing, which is not something we can ignore. On the other hand, a fourth quarter We just had third quarter of Gap productivity. So we're going to have a fourth quarter of Gap profitability based on these earnings based on this guidance.

Which means S P Inclusion is now on the table. Therefore, the Sap inclusion, we need four executive quarters of Gap of stability. The Panthers just announced they're going to hit that within a quarter from now, which is a huge, huge milestone for the company. Um I Think that's pretty cool.

Again, everybody's excited about the yes Perhan's Niche that that is actually correct. A one billion dollar buyback? I Think that's also pretty. You know, if if you kind of want to talk about, you know, uh, if you want to talk the language of Wall Street you have to talk about the things they care about. Um, and talking about BuyBacks And talking about Gap profitability for consecutive quarters? That's something that investors.

and Wall Street want to hear. Especially institutional investors now. Um I want I want to take a look at the presentation just before the call. We still have 20 minutes for the to the call and that's the perfect time to go through the presentation.

We all we need about 20 minutes to run through it and we'll do it together. and then we'll jump on the call and we hear what penalty has to say. Uh okay I'm gonna pull it up on the screen right now. let's see if we got it.

And by the way, shout out to everybody showing up here to this unannounced stream I Know I didn't promote the stream I didn't talk about it. it was kind of a last minute. Thank you all for showing up here. If you're here, you are true OG on the channel and I appreciate you.

You know coming to the basement with me. um Okay So that's a good comment considering that right now we're in proposal season. Um okay so uh Rich says audio and visual is a good thumb. Thank you Rich! Rich is one of my moderators on the channel.

One of my founding members appreciate it. Okay, so let's talk about the numbers here. Uh, shout out to Uh B Naga I'm 100 up on marching my account full port multicrow space of 7.21 Let's go. Uh no no you guys you guys at the community.

listen before we go through the presentation. I Just want to make sure we understand each other here. Let's talk about it. It's not about me, it's about you guys.

you guys in the community. You guys make it happen Without you guys, it's meaningless everybody. It's every single person that's here in the chat. everybody that's on the Discord Everybody's watching the videos.

Every single one of you is what it's all about. It's not about Tom I'm just a kind of the mediator. I'm the moderator. You guys are what it's all about.

and I'm here to serve you. And I don't take this for granted. 2200 people showing up here in the middle of the night unannounced I didn't post about it I didn't say anything. You just come in here.

a bad audio, bad video. You're still here, you know. rocking with me I Really appreciate it. Um, okay.

let's talk about it. Let's talk about the numbers here. Okay, okay so let's go through the highlights: 37th Quarter of Gap of Stability. Let's go.

Beautiful. By the way, let me know if you guys I can probably make it a little bit bigger. So yeah, I think it's better. Um no no, you guys are.

you guys are I truly do appreciate it. Um hey Kristoff I appreciate you guys I appreciate every single one of you here. Thank you so much. it means a lot Anyways, So thank you sir.

Recorder of Gap of Stability a second to second quarter of Gap Opera Yeah, we saw that. That's the highlights. Uh I think we saw all of that already. Apologize for the noise from my end.

Let's keep scrolling. Okay, so 1.1 billion Revenue that's on Pace for 2.2 billion for the year. Um, that's the AAP con stuff we talked about already. Let's go to the financials.

I'm I mean I'm not disrespecting the presentation here at all, but I would like to see more of the numbers. Yeah, that's that's numbers. Let's go to numbers. Okay, Financials sorry I'm I'm more focused on the financials.

I Know some of you want to see the presentation it's available, but I just want to watch the the numbers because we don't have a lot of times. we have about 15 minutes before the presentation and I want to make sure, uh, the last presentation that is, we go through the numbers. Okay, so gap of stability Third quarter we saw that operating income. Okay, so this is interesting: U.S Commercial Revenue Growth Let's talk about it a little bit here.

That's the important part. So 20 growth on U.S Commercial 10 of US Government revenue growth. So we're talking about, um, a very interesting trajectory for the company. Government revenue growth of 15 commercials of 10 percent.

That's that's the mixture that gave you that 13 I think And there is definitely a something to be said about a you know palantir head and Regional guidance of 30 and people kind of still have that in the in the mirror. But I mean the world has changed. The macros change I mean uh, double digit growth in this environment is actually very impressive. And third, Revenue growth of 13 average TTM Revenue per top 20 customers.

Now this is the part I Want to talk about really like this second part of the slide I think doesn't get enough coverage in all the channels That kind of cover Palantir. and I want to talk about it real quick and this is super super important. And you see, this is the where the rubber meets the road for this company and unfortunately it doesn't get enough coverage. So the top 20 customers of Palantir are driving.

If you do the math, uh, almost half their business, we're talking about a a almost a billion dollars from the top 20 clients. So if your top 20 clients are responsible for half your revenues and you manage to grow these every single quarter and again that number. if I pull this back in a white and I widen the zoom out for this thing, we're going to see that every single quarter their average TTM Revenue print up to any customer. it goes up and up and up in double digits.

So we're talking about look, there's 20 in major companies and institutions that spend over 50 million dollars in every single freaking year just on Palantir products. 50 million per year. It's not something you pay for. You know, stuff that doesn't work.

Let's be honest. Okay, that's huge, but it also has kind of a problem to it because when unfortunately, when you know 20 of your customers are in charge of 50 of your Revenue that's client concentration. That's something that Wall Street always sees as a risk. Shout out to Dom here.

Okay, hey. I appreciate it. And that's actually a very good comment. Yeah, uh yeah.

Exactly what he's saying Two ways to look at. It is exactly what Dom is saying. On the one hand, it's beautiful. On the other hand, there's definitely it is a double-edged sword.

It's a beautiful common Dom Shout out to you. By the way, it's a beautiful comment because the double-edged sword is that you have a very high client concentration assuming something happens to you know two of these 20 clients we're talking about a hundred million dollars in Revenue gone. So there's a high concentration of of of top 20 clients which you know they have to work on and we've talked about it. so let's not you know, beat around the bush about this.

We we know about this. um cross margin stay steady above 80 percent as any you know Dom can tell you don't Works in SAS and he can tell you in any uh SAS Company Services Software Company 80 Gross margin is standard. It's normal. It's nothing to get excited about.

Volunteer 80 is what you get in every SAS company because that's you. know the structure of cost and the services of software business. In Q2 2023, adjusted operating income was 135 million dollars margin of 25 Again, when I see adjusted I mean I'm not excited about anything that says adjusted in the you know in the title. Now this is a very interesting uh um because again we have a little bit of time I'm always keeping.

we have about 12 minutes before they live stream. look at the customer account of this company I mean uh and look at the Billings Okay, this is Q2 of last year. this is Q2 of this year. So within the span of a year this company went from being under 400 million in Billings to over 600 million in billions.

So 200 million more in Billings 52 increase in a single year. Look at the customer account. this was June 2022 for currently June 2023 from 300 clients. So 421 class.

So absolutely insane. So again I know the numbers are not huge. It's not snowflake guys. We're not talking about a product that's you know, low.

um kind of a low tier product where you just you sell Mass They sell a high-end a high ticket item On a high ticket item, you're naturally going to have less customer account. You know you have 421 000 clients. But look at the percentages. Show me a company that has 40 year-over-year growth in customer count What they're doing here.

It's very obvious to me what they're doing is, they're creating a basis. So they're creating a basis in which they're bringing the customers. they're not going. Full Tilt Squeezing the lemon all the way through.

They're just trying to get through the door. Get through the door. We'll build stuff for you. then you buy more and I want to see the network retention I Hope they talk about the retention for this, but just look at the amount of Deals They sign every single quarter 66 deals of 1 million 30 or 5 million 18 deals of 10 million every quarter.

they have these numbers and people take it for granted with volunteer even though they shouldn't I mean that's not taking for granted number any other company you would be super excited about this because but I think it does it every single time. It's like watching Michael Jordan play whenever he does something spectacular. People can kind of get used to it and the the cash position is pretty much standard. Three billion in cash, no debt.

We know this about Palantir beautiful balance sheet. Um, this is actually a phenomenal number. If they do 550 million in Q3 that's going to be insane. That's actually a very good guidance for the Fourier If they do 2.2 it's also good.

Very good numbers. Guidance is good. Guidance is good. um I'm curious to see the net dollar retention here and it's uh, something that I can't find here.

and it's a shame because that would be really interesting for me to see if anybody has seen the net orientation. That's something I would be curious in checking out. Um, let's let's go back. We have 10 more minutes for this for the stream and let's take a look at something here real quick.

I Want to show you guys hold on a letter from Alex Carp? Let's talk about this letter real quick. Um okay. let's pull it up on the screen and then we will go to the live stream in a second. Um, before I go through the letter, you know what? I want to take a few comments because you guys are here in the chat.

you guys are commenting. So I want to make sure I give you guys your props and one second and okay before we do that, hold on. Okay I found it. Okay, let me pull it up on the screen.

apologies I'm doing this on a on the computer screen with no no equipment so I'm doing my best. People said stop apologizing that I can't I'm used to hire like production value than this. Okay so before we go through the letter I want to give a few shout outs here I Want to give a shout out to Rich one of my moderators I Want to give a shout out to Gabe who's here one of my moderators thank you so much I Want to give a shout out to every single one here? Um yeah. net net revenue retention is where I want to also look at Um, it's super interesting to me because it was 119 year ago, then it dropped to 111 I Want to see that? at least they kind of maintain that 110.

Okay, that's pretty much on par one thank you for Michael Thank you for letting me know because you know I'm working with the stream here. so I can search for every single one out of ten dollar percentile attention is pretty much what they had last quarter they had 111. 110 is within, you know, a standard deviation so that's absolutely normal. Very, very good.

Um, so this is something I want to talk about here for what's Dave is saying. So Dave is saying I hope it tanks more so we can buy more. So look I want to explain something here with Palantir and it's super super important that you guys listen up. Uh, I'm gonna pull up.

hold on. sorry about that, but I want to pull up the share price here. Listen, this is probably going to be the most important part of the stream. Hey, I'm not expecting anything like uh and people every single person to listen.

but those of you who who will listen will benefit from this. Look at the share price right here. Okay I want the expensive thing real simple. So look at the share price.

so this is the share price just after the numbers came out right immediately I told you I thought this is going to happen. Price was at 18, it dropped all the way down to 16.7 dropped five percent, four percent. whatever, it spiked back up. Now it's up 2.4 after hours again.

and if we even do that, let's go Five year. let's go one year. Let's go here today. So as you can see like I want to talk about this super important stuff if it tanks when you say a lot more I don't want you to get over excited Dave I don't the one thing I don't want people to do and I I appreciate it and I you know I sound like a broken record I don't want you to go all in balls deep into a stock because of tips buying the dip, it has to be methodical.

It has to be careful, and it has to be very very slow. So when you say I hope it tanks I can buy more I hope when you're talking about Dave is dollar cost averaging a little bit faster. so instead of buying a little bit, you're buying a little bit more. but I definitely don't I I don't feel comfortable.

you know, going lump sum and buying massive amounts of stock just because of dipped in a certain day. So when I have the system and I talked about it many, many times I buy a certain amount every single month. if it dips, then I pile it with more and how much it dips, how much more I buy I Talked about it I Don't want to repeat myself, but definitely don't go lump sum. you know, balls deep into a stock just because of dip in a single day.

That's not the right way to do it, so just be careful. You know if it drops, you can increase the pace of your dog was averaging. but at the end of the day, you're not going to get done by buying it in a single day. Just you know it's a very, very important message.

Um, okay, um again once upon the reset I Really want to talk about this and I want to be very, very clear with this: This is a very nice headline saying it's the messy of AI It's a very nice headline, but it's not going to happen in a single day. It cannot go up 30 in a single day. And for it to be okay if the stock goes up 30 in a single day, it's not healthy for the stock. It's not healthy for you.

As an investor, it's it's gambling. It's nothing more about gambling. It's it's not I Don't expect it to go up 30. If it does, it's absolutely Insanity silliness.

So again, if it is the messy of AI it's going to have a very long trajectory in which it's gonna. It delivers great results over the next five years. I Mean you shouldn't As a long-term investor, you shouldn't think in 30 in a day it kind of terms. that's kind of an options short-term play.

And what Dom is saying is what I want you guys to focus I Hope we have a lot of customers. Acquisition expanded phase which means great things from a year from now. He's talking about how to build the foundations and trust me, listen to Dom Dom actually works in this industry. He knows this industry he works in.

SAS in one of the biggest companies you you know about. He's talking from experience from the pro level experience. you build a foundation, You create customer acquisition. You deliver revenues in the next quarter in the next year.

This is how it's Don't look at the percentages in the stock, look at the quality of the business guys we have. You know it's nice to look at the stock. but the more important part here is look at the business as shareholders and palantir. You're not buying a piece of paper.

You're buying a piece of the business a percentage of a business. So getting over over excited about a share price and over focused about a share price instead of the business I Think it's a colossal mistake for shareholders. Don't do it. Trust me.

Listen to what Dom has to say. That's the way to do it. Um, um Simon says I Think the key again is confirmed. positive net result potential inclusion S P 500 That's correct which is closer and closer which is also mentioned in the guidance of 2023 as well.

A hundred percent agree. Yes, agree. Very good comments by Diamond um pot spread. Thank you so much I Appreciate it brother.

Um, what do I think about this earnings I think it's not bad I think it's good I Think you're continuing to grow, continuing to deliver double digit results learning to speak the language of Wall Street Talking about BuyBacks Talk about better guidance. Talk about stuff that they care about I mean that's the way to do it it I mean you cannot. Just you know. About a year ago when they started doing that, everything changed.

everything clicked. I think Alex Harp, you know realized he has to speak the language of Wall Street Um, you know again. BuyBacks and again we talk about the billion over. probably you know it's not going to happen in a single day.

They're talking about a very long period of time. It's more of them talking the Wall Street language. Uh, it's gonna probably. you know if it's you know, uh, over 10 years that's reasonable.

Um, uh Dom is saying the 100 we have three minutes for the live call. Three minutes for the live call. The 110 percent tells me we are definitely more in the acquisition and expand phase and not massive revenue and margin growth until we hit scale phases. So I want to break down this comment because I don't think you guys realize how much value is in this comment again dominating your Investments it's Tom's Channel Dom Ronaldo Go subscribe to his channel.

So Dom Works In software as a service business, he works in one of the largest companies you all heard about. I don't want the name prop here. He he works intimately in this industry so he's not he and he understands sales perfectly well. Dom is telling you is like look guys, if we are currently at 110 retention net or intention and it means and look at snowflake, snowflake is 180.

Snowflake is in a different phase in Palantir. Palentine has also different strategy than snowflake so you know penalty is selling a high ticket item. The idea is to bring the customer in whatever cost even a cost basis. you know, just don't even make money on the customers.

Bring your customers through the door, make sure you lock them in for Chip. you know, lost leader They you know a lawsuit of strategy even if you need. So once you get the customer in, you start expanding your offering and selling them more and more upscaling upselling Etc et cetera. But for the first stage, you have to acquire the customers even if the cost is not being super profitable.

That's what Dom was saying. And that means that a year, two, three from now, you're gonna reap the rewards of the strategy. and I completely agree with that. That's a that's a very important comment.

And and Skip Skip Saying as long as you are here making content classification, that's what matters. I Really appreciate That comment really does. It means a lot to me. We have about a minute to go for the live stream.

Good day to Steve Um, Mom was saying Tom is on his vacation in France away from his family doing this. Hit them like button please. Only 300s. That's the least we can.

No, no, don't forget about the like button I Don't care about these things I Honestly don't care about the like button I Honestly do. Don't spend. Don't waste your time on the like button. Uh, trust me.

I don't care. It doesn't matter. Look, this is another one minute left for the live stream. I Want to talk about this comment? Should have bought more at six.

should have what more at seven should have? What more at Eight nonsense? It's that. Listen to me, it doesn't matter when your entry point is as long as you identify. it's a good company and you start goal across averaging right now. even at 18 and your dollar cost average slowly over the course of the next three to five years and you buy a little bit every time and you buy a little bit more when it dips, it goes below a certain threshold as I say 10 below the 52 week high.

Then you will get a low cost basis in this company without trying to time the market. Nobody could have known that six or seven was the bottom. Maybe if I was the bottom, maybe eight was the bottom. So stop that.

Let's go to the live stream. I'm gonna pull it up on the screen right now. Okay, there's no audio yet from the live stream as far as I can hear it. Um, so I'm gonna pull up a few more comments: Thomas Covered this amazing strategy on this channel and I personally have adopted this.

Yes, this, You know that's the way to do it. That's how that you know they talked about this, they said look, we don't care about margins, We don't care about a revenue growth, all we care about is creating a monopoly and in that Monopoly Uh, we're going to dominate so much that by the time that these guys, uh, actually are in inside the system, they don't have a choice. uh, leaving volunteers an existing client if they have a very sticky product as it is so you know, uh, go read: zero to one. zero to one.

Uh, actually you know Peter till talks about it. Uh, zero to one he talked about I'm going to create a a company that good afternoon I'm on a sorrow from Palantir's Finance team and I'd like to welcome you to our second quarter 2023 earnings call. Hey, can everybody hear the audio from the YouTube channel request released issued after the market closed and posted. If you can hear the audio during the call, we will make statements regarding our business that may be considered forward-looking within applicable Securities laws, including statements regarding our third quarter and fiscal 2023 results, Management's expectations for a future financial and operational performance, and other statements regarding our plans, prospects, and expectations.

These statements are not promises or guarantees and are subject to risks and uncertainties which could cause them to differ materially from actual results. Information concerning those risks is available in our earnings press release distributed after the market closed today, and in our SEC filings. we undertake no obligation to update forward-looking statements except as required by law. Further, during the course of today's call, we will refer to certain adjusted Financial measures.

These non-gaap Financial measures should be considered in addition to not as a substitute for or an isolation from Gap measures. Additional information about these non-gaap measures, including reconciliation of non-gaap to comparable Gap measures is included in our press release and investor presentation provided. today. Our press release, investor presentation, and SEC filings are available on our investor relations website at Investors.palanteer.com Over the course of the call, we will refer to various growth rates when discussing our business.

These rates reflect year-over-year comparisons unless otherwise stated. Joining me on today's call are: Alex Carp Chief Executive Officer Sham Sankar Chief Technology Officer Dave Glaser Chief Financial Officer and Ryan Taylor Chief Revenue Officer and chief legal officer I'll now turn it over to Alex for opening remarks Welcome to our earnings. We are at a unique period at Palantir. Through the course of the last 20 years, we built what isn't arguably one of the most interesting, impactful product offerings in the world: PGA Foundry our Target selection platform Apollo Our goal at parent was to be the most impactful, important software company in the world, a company transforming Western institutions Um.

and the the underlying goal there was to make the West Stronger and to make Palantir the most important software company in the world in a weird way. In the last the last couple months since we launched Uh AIP since we had AIP Con and we have seen the way in which Technologies we've built that seem to be of moderate utility were built almost in anticipation of the AI Revolution both algorithmatic and large language models, and that convergence has remade Palantir, taking Palantir away from its terminal value, being it made the world better by making our institutions in the West Stronger more productive, more efficient, in some cases more deadly to giving us the aspiration and realistic perspective of being the most valuable enterprise software company in the world. Um, we see a market, especially in the U.S which is hungry for an ability to apply AI both large language models and algorithms to transform our businesses. I Believe this transformation will change the GDP of America and that Palantir will participate in that.

In the Delta Between where the GDP is now and where it'll get to powered by unique technologies that Uh are almost exclusively being built in the United States and are being adopted more rapidly, more efficiently with more Vicar Of course, there are headwinds. Many of the people uh, and companies who have no product to offer and are do not have the technical capabilities to build them are trying to slow down this revolution for the obvious reason that they they're not participating in that and and these tools are accelerating. Uh Innovation so that if you're not participating, you're literally standing still while everyone is accelerating and they're no longer operating and they're no longer luxury products in the way people thought having world-class software was. so buying Foundry appeared to many institutions as well.

Of course it's the best product, but it's a it would require us to change how we function or change how we procure software. By the way, the large language model revolution has changed Palantir's relationships to institutions because we were misaligned for years and years with I.T All globally, we were misaligned with the way in which we thought an Enterprise should be run, but the way in which you actually can process large language models to get more exact. more precise to get more exact, more precise, more operationally valuable insights. the way you can actually write them safely into your Enterprise Meaning, you can guess large language models to get more exact, more precise, more operationally valuable insights: The way you can actually write them safely into your Enterprise meaning you can control your Enterprise.

The way you can turn them into logic that allows you to power your Enterprise both in a read, write function with Uh governance that is mandated by law or by ethics we provide. Um, those ways of working are exactly the ways we always thought one would have to work. but before the Delta was insufficient. And and then last not least, there's no road map Palate here is the world's best at.

no roadmap. Innovation Products built for a world where things disintegrate and you actually need to do things in the way they would be done in the Natural State. So in the Natural State you would have something like Foundry you would have an ontology. you would have AIP Institutions in America are going back to their natural state.

a state for which we've built products, especially in the U.S We You see this in Palantir's numbers. say why is that? Because we've built products for the natural state of how an Enterprise should work? That state is apparent to people because of the the enormous power, the power to accelerate, accelerate time, change your business using large language models and therefore it is something which people. Embrace We've now moved from being and that product are product, our culture. It's both efficiently and in a way that's Prismatic Uh to especially U.S commercial institutions and also Uh of the competent and it puts us in a remade transfer transform position where we can the the aspiration of powering uh our most important institutions which is clearly nowhere nowhere near done.

So Intelligence and Defense Uh has gotten us to the point where I think it's indisputable that Palantir's uh, software uh in that space is the is the most important in the world now in In In In while continuing to focus on that we can focus on. Okay, but given that we've built these precursor Technologies Given that our product has moved from being nascent to having thousands of users uh, the AIP product. Given that we believe that the reception to this is unlike anything we've seen in PGA Foundry Apollo Uh Target selection and given the receptivity of the market. Also not to mention that we have been profitable now we we expect to be eligible for the SNP Uh For several quarters we've been profitable that we have over three billion dollars in the bank that positions us to fulfill our new our new aspiration allows us to see in the future how we would do that which is to Simply Be the most valuable enterprise software company in the world.

Uh and we are uh, joyous for this moment. Uh and thank you for being Uh with us Today For the third consecutive quarter, our company achieved Gap profitability and again maintained a gap operating income in Q2. This is a testament to our steadfast focus and commitment to delivering results and impact for our partners, all while innovating against the AI opportunities ahead. Last quarter, we hosted Aipcon, which convened over 150 unique organizations as we formally launched our new AIP product offering and customers demonstrated how we're partnering with them to unlock the value of AI for example: Jacobs engineer mailing them to monitor current system conditions and conduct future infrastructure planning in real time versus the months of analysis it would have taken previously.

Similarly, JD Powers Chief Digital and Technology officer asserted that the advantage comes not from the AI models you can build, but rather how you apply them to the data you have and deploy it into applications. This is where True Value is created for our customers and where we stand poised to help. The CEO of Novartis was recently interviewed on CNBC discussing our partnership in which we created an integrated data Lake that they are now leveraging to move AI forward quickly within the company, which the CEO calls Novartis's quote fundamental advantage over its peers. we launched AIP just 10 weeks ago and already we're seeing unprecedented inbound interest.

AIP is also opening expansion conversations with our largest, longest tenured customers as the new capabilities are causing them to reimagine how they can use our software. Looking at both existing and new customers, AIP is the solution for organizations who want to wield Llms securely in their Enterprise We remain focused on aggressively be capitalized using on this momentum by driving in compounding growth of AIP usage. As this fast-moving Market evolves and expands, so too will we And it's just the beginning. this increasing demand virtual business continues to deliver outsized results.

With our rapidly growing custom vents like Aipcon through Direct Customer referrals to their Network or by leaders working with us in one organization taking us with them to their next one, we expect the expansion effect to be multiplicative. At the same time, we're seeing success across many different Industries In Q2 we close deals in U.S commercial in roughly 30 different Industries including across Pharmaceuticals Energy Consumer Staples utilities Health Care construction Automotive Transportation Infrastructure The list goes on and spans Industries and institutions at the core of today's society. While we see the breadth of our software spanning Industries, we still have immense opportunity for growth both through expansion within these industries and growth in our existing customer relationships. For example, we're beginning to see this growth come to fruition in both health care and transportation, which grew 93 and 129 year-over-year respectively.

Foundry is being used at numerous Healthcare facilities to generate nurse schedules and forecast patient placements among other applications. For example, with Foundry HCA now generates nurse schedules in one hour each month instead of 10 To 20. Tampa General has seen a 28 reduction in patient hold times and has reduced the time spent managing patient placements by 83 percent and Cleveland Clinic has been able to accept an 8.5 increase in patient transfers from other hospitals in just four months since launch. While we continue to increase our breadth and expansion across Industries, we also continue to grow at our existing customers.

We had over two dozen U.S commercial customers that brought in more than one million in Revenue each during last quarter alone, and we're seeing Outside's growth from our newest customers. 54 percent of the US commercial Revenue excluding strategic commercial contracts is from customers that have started since the beginning of 2021. With nearly all of the year-over-year growth coming from those same customers, we expect this trend to continue. We are investing in pockets of momentum within our International Commercial Business such as Japan Korea Canada and the Middle East among other targeted opportunities across the world.

For example, through our go to Market partnership, Fujitsu has seen recent success onboarding eight new large cap household name Japanese customers. At the same time we are seeing AIP lead to expansion conversations with our largest long-standing customers in Europe all against the challenging backdrop of today's climate on the international government side. Our UK government business was particularly strong in Q2 as a result of our work with organizations such as the NHS and UK Ministry of Defense including the Royal Navy within our U.S Government business. While the revenue results in Q2 are disappointing, they be lie the long-term strength of our business.

We remain focused on converting significant deals in the pipeline and growing existing contracts through which we are core to the government mission. In Q2, we secured a multi-year contract award from the U.S Special Operations Command worth up to 463 million new contract awards for the Air and Space Forces of 110 million and conversion of Army Research Lab R D funding to longer term work with Cocoms. Starting with Centcom, we believe in the criticality and meaningful impact our work is having in today's world events and its eventual monetization as well as the exceptional user impact we deliver. At the same time, our US Government business can be lumpy and we continue to expect there to be near-term uncertainty around timing of contract.

Awards Turning back to the overall business, we are excited about our vast opportunities in the quarters ahead. We're already seeing that AIP will be transformational for our customers and for our business. We look forward to continuing innovating at the Forefront through this revolution. Lastly, on the back of our inaugural AIP Con in Q2, we're excited to share that we're hosting two additional events, the next AIP Con on September 14th and a new event, the Software for Government S4G Summit on September 21st which is specifically designed for our government customers.

We look forward to sharing a recap of the events with you at future calls. I'll now turn it over to Sean Thanks Ryan At Aipcon this past June we introduced Palantir's AI platform, a core set of Technologies designed to bring Llms to your Enterprise to supercharge and accelerate your experiences from integrating data and hydrating your ontology, to building AI enabled applications in human agent teams with co-pilots AIP enables you to deploy Llms anchored in your data on your private network and to safely orchestrate your Enterprise with tools, actions, and other AI models. All of this in a controlled, governed and trusted AI operating system. The accelerating pace of AI developments continues to be awe-inspiring The key to capturing value is a fundamental recognition that we are dealing with something new and different that demands solving new integration and Engineering challenges.

It is in many ways easier to Define an Llm by what it is not. It is not algorithmic reasoning. It is not human thought. Algorithmic reasoning operates as a process so well specified that there's no ambiguity in its execution.

Like traditional code, human thought is inherently creative and it's previously most defining form. Natural language is inextricably wrought with ambiguity. Large language models occupy a middle ground between algorithmic reasoning and human thought. They are fluent in natural language, yet they don't really understand what they say.

They are not good at executing algorithms, yet they can be instructed in ordinary prose. They are something else non-algorithmic compute. Llms are statistics, not calculus, and the introduction of even one stochastic variable into a deterministic system makes the entire system now stochastic. at AIP Kantu in September I'm going to unpack some of the foundational engineering challenges that we've solved to manage and harness the stochasticity of these models and to enable the acceleration in our products.

we are focused on driving compounding usage across Industries The problems that matter haven't changed AIP and Llms radically accelerate the solutions we are building on nearly 20 years of our products and experience solving these problems across more than 50 Industries and every function in the value chain, only now doing it substantially faster to name a few. A nurse shift, hand-off co-pilot for HCA are pharmacokinetics, translation assistant for Novartis an inventory balancer, co-pilot or a plant-based protein company, a supply chain co-pilot for a major Beverage Company our warranty claims co-pilot for U.S Auto manufacturer has made analysts twice as productive, saving them three to four hours a day as JD Powers CTO Bernardo said at Aipcon. The beauty of having Foundry in AIP is that you can build this really, really quickly. So we built this in a matter of days and iterated in a couple of weeks to get the Precision of calculus and the power of Statistics.

Llms need to be paired with algorithmic and software tools for example, models of forward inventory or an action registry to execute Enterprise functions. a rich semantic layer to define the proper grounding and crucial Primitives like scenarios that allow Llms to Stage changes on branches AIP is not only the best tool bench in this context, it is a tool Factory that enables Enterprises to quickly. Forge New bespoke Tools in hours. Llms can't for example, calculate profitability or expected lead times, but they don't have to.

they need to have access to the software tools that can. This is why AIP is positioned to deliver outcomes so quickly. It elegantly integrates Llms into the calculus of your Enterprise to accelerate the workflows that matter. Every week, we are releasing more features and expanding the AIP productivity Suite of applications which provide wysiwyg.

what you say is what you get experiences AIP Builder allows you to build your data pipelines with natural semantics. AIP Terminal is the command line for your AI operating system, enabling you to dynamically wield your ontology tools and applications for ad hoc exploration and problem solving. Aiplogic enables you to build Llm-backed functions with Rich tool composition in its developer tool chain in AIP Automate lets you turn those logic functions into agents, co-pilots and automations. One more item in the suite: I Want to highlight AIP Assist, which accelerates all of today's uses and users of AIP Gotham and Foundry by providing help and helpers dynamically.

AIP Assist is configured to be tool aware, so it knows not only everything from the product documentation. it also knows what actions it can take to manipulate the application state to actually resolve and Advance the user's workflow. This supercharges our users and as a technology it should be available for any software to incorporate to supercharge their users. In the second half of this year, we anticipate accepting beta customers who want to use AIP Assist as a service offering in their own software, turning to Gotham the latest investments in Gotham performed excellently at Centcom's digital Falcon Oasis and other exercise across combatant commands including Global Information Dominance Experiment Series 6.

we continue to invest in capabilities delivering the next level of deterrence through the AI enabled kill chain inclusive of an integrated Coalition deterrent. There's a lot more to say here, but I'd rather hide our strength and bite our time against the adversaries. we continue to be very excited about Apollo It continues to be a massive lever for balancer internally as well as a big Market opportunity. Over the last few years, Apollo has allowed us to scale up internally for managing 15 high side Stacks to 82 without scaling our team in the market as more defense startups are born with a surge of VC investment in the space.

We Believe Apollo stands as the fastest and cheapest path to delivering new capabilities to regulated and accredited environments. and in Q2 we started seeing demand from the government itself as a customer USG Customers want to move existing Services they manage into Fedstart to reduce their own operating risk and compliance burden. In closing, we just wrapped up our annual hack week right after this call. I'll be binge watching all the submissions from the teams internally I'm very much looking forward to further acceleration of our road maps from compelling new ideas.

I'll turn it over to Dave to walk through the financials. Thanks Sean The second quarter of 2023 was exceptionally strong. We're proud to report our third consecutive quarter of got profitability and second consecutive quarter of Gap operating profitability generating 28 million of net income and 10 million of operating income. This also marked the third consecutive quarter of expanding adjusted operating margins.

Highlighting the operating leverage in our business, we surpassed the high end of our guidance for both revenue and adjusted income from operations. Yet again, we also achieved this significant Revenue Milestone surpassing 2 billion in revenue on a trailing 12-month basis for the first time. We remain committed to driving profitable growth and we reaffirm our expectation of Gap profitability in each quarter of this year, which would make us eligible for inclusion in the S P 500. Following our Q3 results, turning to our Global Topline results, we generated 533 million in revenue of 13 year-over-year and 2 sequentially exceeding the high end of the range of our prior guidance excluding the impact of revenue from strategic commercial contracts.

Total revenue grew 16 year-over-year and five percent sequentially. revenue from our largest customers continues to expand trailing 12-month Revenue per customer From our top 20 customers increased 15 year-over-year to 53 million per customer account crew 38 year over year and 8 sequentially to 421 customers, demonstrating the momentum in our ability to onboard and convert new customers now moving to our commercial segment. Second Quarter Commercial Revenue grew 10 year-over-year and decline two percent sequentially to 232 million. a challenging sequential compare as anticipated to the 14 million decline in revenue from Strategic Commercial Contracts excluding the impact from Strategic Commercial Contracts Commercial Revenue grew 19 year-over-year and five percent sequentially.

U.S Commercial Revenue in the second quarter, grew 20 year-over-year and declined four percent sequentially to 103 million excluding revenue from Strategic Commercial contracts U.S Commercial Revenue grew 37 percent year over year and seven percent sequentially, a result that is even more impressive when compounded with the 24 sequential growth we saw last quarter. our U.S commercial customer account could be 35 year-over-year and four percent sequentially, marking the 10th consecutive quarter of sequential growth. This highlights the velocity we are seeing in our U.S Commercial Business We're driving significant new customer wins and expansions. Our International Commercial Business grew four percent year over year to 129 million and remain flat sequentially.

Relative to the Us, we continue to see more muted growth with European Commercial Enterprises Although there remain targeted opportunities of growth internationally, revenue from Strategic Commercial Contracts was 19 million compared to 33 million in the prior quarter. We expect third Quarter Revenue due to climb to between 14 to 16 million, and we anticipate fourth quarter revenue from these customers to continue to Trend down. For the full year, we expect revenue from these customers to be approximately three percent of total full year. Revenue Turning to our government segment, government revenue grew 15 year over year and four percent sequentially to 302 million.

U.S Government revenue grew 10 year-over-year and declined two percent sequentially to 225 million. While we acknowledge that there are uncertainties associated with the timing of contract expansions and renewals, we maintain a strong pipeline of opportunities and remain confident in the growth of our U.S government business. Particularly as USG Tcd bookings grew 111 sequentially, International government revenue grew 31 year over year and 29 sequentially to 76 million. The re-acceleration in our international government business was driven by our UK government work.

While government business generally sees fluctuations due the nature of funding and contract Cycles we remain confident that our work with the UK government will continue to expand over the long term. Turning to bookings, Tcv booked with 642 million and of 62 percent sequentially Billings was 603 million Of 52 year-over-year we ended the second quarter with 3.4 billion in total remaining deal value and 968 million in remaining performance obligations. As a reminder, RPO is primarily comprised of our Commercial Business as it does not take into account contracts with the initial term of less than 12 months and contractual obligations that fall. Beyond Termination for convenience causes, both of which are common in most of our government business turning to margin and expense Investig: gross margin which excludes stock-based compensation expense was 81 for the quarter adjusted income for operations which exclude stock-based compensation expense and related employer payroll taxes was 135 million, representing an adjusted operating margin of 25 percent 200 basis points ahead of the high end of our prior guidance and marking a third consecutive quarter of expanding adjusted operating margins.

These results demonstrate our ability to drive Revenue growth while efficiently managing costs. With second quarter adjusted expense of 398 million up only 9 year-over-year and down sequentially. we continue to manage expense growth primarily by driving leverage in GNA capitalizing on cloud efficiencies and calibrating our headcount investments in key strategic areas of growth. Consistent with prior years, we expect to see an increase in expenses in the third quarter as we onboard our new grad cohort of world-class technical.

Talent As we have stated over the past few quarters, we are fiercely committed to sustain Gap profitability. On the back of three consecutive quarters of Cap Men income and expanding operating margins, we are increasing Investments and resources dedicated to our new product. AIP while at the same time increasing our full year adjusted income from operations guidance to an excess of 576 million, an increase of 45 million above the midpoint of our prior range. Looking ahead to the second half of the Year remained focused on calibrating expense growth below Revenue growth.

Even as we increase investment and resourcing to AIP and invest in specific geographies around the world, we generated income from operations of 10 million Our second consecutive quarter of Gaap operating income. We continue to manage our stock based compensation. As mentioned last quarter, we expect it to Trend. up through the back half of the year, However, we remain laser focused on Gap net income and operating profitability.

As we think about Equity compensation and aligning it to shareholder value, we are in the process of linking future employee Equity compensation to the success of AIP turning to net Income gap. net income was 28 million Our third consecutive quarter of Gap profitability adjusted earnings per share was 5 cents and GAP earnings per share was one cent. Additionally, our combined revenue growth and adjusted operating margin was 38. We expect to return to executing in excess of the rule of 40 for the second half of the year.

Turning to our cash flow, we generated 96 million in adjusted free cash flow representing a margin of 18 and 90 million in cash from operations representing margin of 17 percent. Through the first half of the year, we generated 285 million in adjuster fee cash flow representing a margin of 27 percent. We ended the second quarter with 3.1 billion in cash, cash equivalents and short-term U.S treasury bills. We retain access to additional liquidity of up to 500 million through a revolving credit facility, which remains entirely undrawn.

Now turning to our Outlook For Q3 2023, we expect revenue of between 553 and 557 million, adjusted income from operations of between 135 and 139 million, and GAP net income for full year 2023, we are raising our Revenue guidance to an excess of 2.212 billion, We are raising our adjusted income for operations guidance to an excess of 576 million, and we continue to expect Gap net income in each quarter. On the back of our third consecutive quarter of Gap Profitability: 285 million in adjusted free cash flow in the first half of the year and over 3.1 billion are a balance sheet, our board of Directors has authorized a stock repurchase program of up to 1 billion. This program reflects our conviction and the trajectory of our business and the value we see in our stock. With that, I'll turn it over to Anna to start the Q A Thanks Dave We'll begin with a few questions from our shareholders before we open up the call.

Our first question is from Gaurav, who asks what are some of the AI advantages Palantir has that none of the other companies can compete with. I'll take that. one pounder is optimally positioned for AI Because the value is going to increase the incumbents, it's going to agree to the people who own the workflow who own the software. So in our case, it's not just the customers that we do have today, it's our ability to acquire future customers.

It's the 20 years of experience that we have solving the problems that matter. The problems that you should be solving with Llms haven't changed. The same problems should be solving before you had Llms. In the two decades of experience we have, and the knowledge of applying it means that we can solve those problems substantially more quickly.

In other words, we've built the infrastructures. The infrastructure you really need for Llms to be valuable in your Enterprise if you want to write profits and not poems with them and I think one way you can think about this is Llms and Excel like there, the Llms are going to make Excel more valuable and useful. They're not going to replace Excel the Llms that we've been building with our customers in the field in the last 10 weeks I've been out there with our customers. We've we've deployed over 15 co-pilots The the time to Value here is truly incredible.

It's accelerating everything that we've been doing here. so I I Feel really good about the positioning there. and because we've been roughly two decades ahead, it's given us a lot of lead to think about the next Ridgeline of technical them. It's really the Kllm kernel, you know.

I Talked earlier in the remarks about how Llms are are statistics not calculus? They're like these stochastic mad scientists. Why on Earth would you ask a question of one Llm wouldn't ask Kloms and I Think that really honors the fundamental reality that you need a committee here that there isn't an answer to this sort of stochastic question. There are answers, especially when you don't have priors, and you can use this to actually wield these Llms for decisive operational advantage in the Enterprise when you have this sort of framework, so