And pretty cool 200. 000. I never thought i hit 200 000 and that's actually very surprising, um! Oh wait! I missed the super chat hold on a second i'm sorry, i'm gon na find it. So somebody told me i missed the super chat here.

We go. Uh julie sanders. Thank you for the five dollar super chat. He's saying i reduced all my positions by one third of friday to have more cash to buy this week.

I think i'm smart. Obviously, you know hindsight is 20 20. good move good move. Um will i think, the arc etfs ever recover.

Yes, i do the thing about rktfs, which you need to understand. I'm going to try to do it quick before they start the presentation and the thing about the. Let me refresh it: let's see if they already started, and maybe we're still stuck on the elevator music, no and the thing about the okay hold on a second. Is it starting welcome to palantir's earnings, call i'll talk about what we'll be talking about.

The results announced in our press release issued prior to today's call and posted on our investor relations website. During the call, we will make statements regarding our business that may be considered forward-looking within applicable securities laws, including statements regarding our outlook for the current quarter and other future periods. Management's expectations about our 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 prior to today's call and in our sec filings palantir, undertakes 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 in 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 prior to today's call.

Palantir's press release, investor presentation and sec filings are available on palantir's investor relations website at tear investors.collentier.com com, with that i'll turn it over to rodney thanks jocko joining me on today's call are sean sankar yeah. It was him. It was jungkook with joker, glazer, chief financial officer and kevin kawasaki. What a badass move to have him during the call.

We will refer to various growth rates when discussing our business. These rates reflect year-over-year comparisons unless otherwise stated i'll turn the call over to sham to get us started. Thank you, rodney cutting edge product and continued efficiencies and distribution drove exceptionally strong, q1 results. Adjusted free cash flow was 151 million 44 margin, and this was an increase of 441 million.

Over the year ago. Quarter revenue was up, 49 billings grew 248 rpo grew 129. We had 76 growth and duration adjusted commercial deal value. We had an adjusted operating margin of 34 and our u.s business across government and commercial continues to be on fire growing at 81 percent.

These results, and for that matter, future results wouldn't be possible without our relentless focus on product innovation. The area i'm most excited about is the development of apollo for edge ai. This was demonstrated at the dugway proving grounds in utah this past april. Just last month, this is live now.

We are pioneering an approach that we call micro models. Just like micro microservices are the basis of modern software architectures. We believe that micro models are how you operational ai at scale for enduring advantage. There is no place.

This is more true than in our us government work on some of the hardest and most important problems facing our nation apollo for edge ai is the next evolution to transform ai into alpha, enabling customers to train, manage and deploy multiple independently versioned chained models to the Edge with ease customers will have maximum flexibility to decompose a task into multiple models where each component can be improved and upgraded in isolation and subsequently dynamically chained together. Even if links in that chain are running across multiple platforms, from space to mud and across different sensors and shooters making the sum of the parts greater than the whole, this is operational ai in action at the edge. It's decision advantage delivered and we are seeing incredible interest here from commercial customers to leverage this same innovation using ai models on the factory floor, to augment human workers or more efficiently, detecting wildfire risks from space to next generation of predictive maintenance occurring at the edge on Board the airplane, while still in flight, understand, decide and act at the edge. Turning to results where the government responds to the pandemic has been efficacious.

We are seeing a commercial tailwind in the u.s in particular, we continue to generate exceptional results where revenue grew 83. In the u.s government and 72 in commercial - and we have a lot of head room for growth in these markets, we only have a handful of fortune 500 customers and less than one tenth of a percent of annual defense spending. We have widened and are continuing to widen our capability to distribute our product. We see strength in forward-looking indicators and customer interests.

Since the beginning of february, qualified commercial opportunities in the us and the uk are up two and a half times active commercial pilots across the business have more than doubled and opportunities across the u.s and uk government continue to develop at pace. We added 11 new commercial customers, and we also announced our partnership with md, anderson and centrope, and it's not just established industry players where we are winning. We are seeing opportunities for companies to build their digital infrastructure around foundry from day zero, where they can shave years off their ramps and mountains of risk off their road maps by cost efficiently standing on the shoulders of 15 years and more than two billion dollars of R d - and we see this as the first salvo and expanding distribution of boundary to broader markets and a broader set of customers. In q1, we entered into a partnership with lillium a revolutionary ev toll transportation company that will use foundry to build an integrated business from the ground up incorporating design and engineering procurement, testing, production, quality logistics and in-service operations.

We have also partnered with sarcos. We have always talked about gotham as the digital iron man suit. Well, these guys they're building the physical iron man suit sarcos will leverage foundry for all of palliators, well well-understood, industrials and manufacturing use cases, but you can see how sarcos can leverage all the capabilities of apollo for hai to push ai into their exoskeletons. This is jarvis.

Tony stark's digital assistant, but in real life, these customers and even more prospects in our pipeline, are at the forefront of the next major sea change in software architecting, an entire organization around a common operating picture deliver a connected company from the very beginning, eliminating the chains Of silo data and systems, we are investing in innovation in the west, backing companies with ambitious goals and executing on our ability to move down market and the fit is natural. Our software can radically accelerate production, ramps and time to market and help these companies get to scale on dramatically shorter time horizons. In parallel, the momentum in our government business continues unabated. First quarter government revenue, increased 76 year-over-year fueled in large part by the 83 year-over-year growth.

We generated in the u.s government. We continue to play a critical role in helping governments respond to the pandemic and further our mission to become the central operating system for defense. The scope of our government work is broadening on the back of cutting-edge products like apollo for edge ai and investments in distribution. In the first quarter, we were awarded a five-year contract worth up to 90 million dollars with the national nuclear security administration to provide the operating platform to safeguard america's nuclear stockpile.

Of course, our nation's nuclear assets are crucial importance to the future of our nations and broader western security, and we are proud to partner on this. As we look forward over the bounds of the year, we continue to have tailwinds as we pursue opportunities across both defense and civilian agencies. In our government business in q1, our software was leveraged in the global information dominance, experiment enabling all 11 dod combatant commands to generate globally integrated strategic decision advantage from intelligence operations, logistics and supply data all advanced by ai. This work dovetails with the strong pipeline.

We see in our government business across a variety of defense initiatives and we expect deal activity to increase over the course of the year as we outlined in february. Our plans to increase distribution include building a direct sales force and we've made massive strides so far this year. In the first quarter alone, we've made nearly 50 hires into our sales team and the pipeline to continue growing. This team remains robust.

This puts us well on our way to achieving the goal of adding triple digits sales headcount this year and applying much more force behind our business's momentum. I mentioned earlier the growth of our customers and pilots. Our sales force, combined with outreach and events, are generating more high quality opportunities. What's more, customers are coming to us with a much deeper understanding of our products and the value they unlock to the point where the first meeting today really now feels like the fourth or fifth meeting from a year ago.

The flywheel is turning faster. In addition to our direct sales force, expansion of channels is a critical element to our distribution strategy. We continue to pursue and invest in our channel partners across a spectrum from complementary software companies to system integrators and cloud providers across both the government and commercial segments. We announced our ibm partnership last quarter.

The pace here is tremendous. We booked our first customers within 16 days of bringing the product to market. We believe there are significantly more opportunities with isp partners in our future. We have continued to develop our reach system.

Integrators developing targeted joint, go to markets and geographies industries and functional areas. Today, 15 different sis are partnering with our customers to deliver work on our products. We continue to view cloud providers as channels we have seen a marked shift where cloud providers are integrating foundry into their reference, architectures and core go to market activities. At the end of the day, you can either go to market with an architecture that theoretically solves a problem in, for example, healthcare, but has never actually been deployed, or you can take the architecture.

The nhs used to execute one of the world's most successful at-scale vaccination programs or the architecture used by nih's n3c to integrate a huge amount of clinical data for research on cobit in record time. These are battle tested blueprints for success, that drive outcomes for customers and days and importantly, for the cloud providers drive a rapid amount of consumption very very quickly. On the government side, we are seeing more and more traditional defense contractors buying into our architecture both for internal production and manufacturing of large programs. The same way that we would help say any manufacturer, but also to leverage our apollo for edge ai architecture into their ai, enabled platforms to extend the life of these platforms and to create software monetization for themselves through a joint offering really our successful channel partners across Government and commercial are the ones that are realizing that they're going to draft off our software's world-class performance.

That has always met its moment. The blinding pace of both cutting-edge product development and customer wins that drove these results. They are delivered because every hobbit's unquestionable resolve in the face of adversity and categorical dedication to our customers and their mission. Thank you all palunterians.

A final note, while restarting is on our mind the vicissitudes of the pandemic and continuing to respond is where our hearts are. I want to reiterate that we stand ready to help, as always any country or company at any phase. There are many regions and industries that still face existential crises in overcoming the pandemic and reforging their operations. In this new reality, we stand ready to help any and all with that i'll turn it over to dave to take us through the financials.

Thanks sean i'll now review our first quarter performance, followed by our outlook, cutting edge product and increased efficiencies and distribution driven exceptionally strong, q1 results. We generated revenue growth of 49, bring q1 revenue to 341 million, adjusted operating income increased to 117 million representing a margin of 34. An adjusted free cash flow, increased to 151 million representing a margin of 44 and a 441 million improvement from q1 2020.. This was backed by strong first quarter, billings of 362 million of 248 percent year-over-year.

Looking at our revenue performance, our total first quarter, revenue growth was 49 ahead of a prior guidance of 45. The combination of 49 revenue growth and 44 adjusted free cash flow margin is indicative of the unique underlying unit economics of our business. Our u.s business ended the first quarter with a nearly 800 million dollar annualized revenue run rate as total first quarter, u.s revenue increased 81 percent representing 72 percent u.s commercial growth and 83 u.s government growth. Looking at revenue by segment first quarter, government revenue was 208 million of 76 u.s government revenue increased 83 percent year over year.

In the first quarter and international government revenue increased 57 year-over-year. We expect this momentum to continue as we have a significant pipeline of government deals. Building in q2 and beyond that, we believe will fuel durable, elevated growth in our government segment. First quarter: commercial segment, revenue, totaled, 133 million up 19 year-over-year, and we are seeing particular strength in the u.s as u.s commercial revenue, increased 72 year-over-year.

In addition to that revenue, growth, we're also seeing substantial increases in leads and new opportunities and we've more than doubled. The number of active pilots in our commercial business since february abroad, and particularly in europe, we're seeing more muted commercial growth in countries that are still facing significant health and economic challenges stemming from the pandemic. But, as sean mentioned, we are continuing to invest in these regions. To assist in their recovery, and we expect our business will accelerate as these regions recover in the first quarter.

We close 15 deals of 5 million or more in total contract value, including six deals worth 10 million or more. We ended the first quarter with total remaining yield value of 2.8 billion of 40 year-over-year. Remaining performance obligation was 626 million at the end of the first quarter. Up 129 year over year, average contract duration was 3.7 years up from 3.6 years at the end of 2020.

These results are particularly strong when considering government customers entered into shorter than usual contracts in 2020 to accelerate procurement, as they responded to the copic crisis moving through 2021. We expect these deals to renew and expand, which we believe will create tailwinds for both duration and deal value. First quarter trailing 12-month revenue per customer. Increased 29 year-over-year to 8.1 million first quarter trailing 12-month revenue for top 20 customers, increased 34 year-over-year to 36.1 million and represented 60 of trailing 12 month revenue compared with 65 in the year ago period as we move through 2021 and beyond and increase distribution across multiple Channels, especially into new market segments such as middle market and smbs, we expect average revenue for customer growth to taper, reflecting our broadening customer base.

Next i'll discuss our margins and expenses on an adjusted basis, which excludes stock-based compensation. First quarter, adjusted gross margin was 83 of 800 basis points versus a year ago. Period contribution margin was 60 up, 1900 basis points versus a year ago period. First quarter: income from operations, excluding stock-based compensation and related employer payroll taxes, was 117 million, representing an adjusted operating margin of 34 significantly ahead of our prior guidance of 23.

In the first quarter, we generated 151 million in adjusted free cash flow representing a jesuit regational margin of 44, as we continue to invest in our sales team. We expect related expenses to increase over the course of the year. As these new heads come on board, with over 2.3 billion in cash on the balance sheet and strong fee cash flow in q1, we paid down our outstanding debt in early april and expanded the availability under our revolver by 200 million for a total capacity of 400 Million, all of which remains undrawn. This provides us with substantial flexibility to pursue investment initiatives in support of our long-term growth targets.

For our q2 revenue guidance, we expect year-over-year revenue, growth of 43 or 360 million, and we expect adjusted operating margin of 23 for the quarter. Additionally, for the full year 2021, we are raising our justificational guidance from break even to in excess of 150 million. On the strength of our first quarter. Continuing to execute the guidance strategy set forth by our ceo, alex garp in our year-end 2020 earnings call with regard to long-term revenue guidance.

We are providing and will continue to provide revenue guidance of greater than 30 for this year and the next four years at each earnings call and with that i'll turn it over rodney for q. A great thanks, dave, uh, so we'll begin q. A with questions from our 1.5 million shareholders submitted through say, uh and sean i'll start with you on this first one avi asks: does the company intend to turn a profit in 2021 or keep using the current resources to expand? First of all congratulate having the most voted on question. So there are two numbers that we focus on.

The first is adjusted free cash flow, which really is the businesses ability to generate money generate cash and the other is adjusted operating income, which is a measure of profitability, excluding stocks based on primarily on cash flow. We had a swing of 441 million dollars to deposit generating 151 million dollars of positive cash flow, a 44 adjusted cash flow market. So this shows the businesses underlying financial strength and on operating income we had a 34 mark. This is demonstrating a software company that is efficiently distributing its product and shows tons and tons of product leverage, not to mention we're one point: shy of our long-term targets that we that we established around the time of a list.

So it really shows that that we can hit that, and so, if you look at these two things together, we're proving the profitability and cash generation potential. Sometimes in software people talk about the rule of 40., the sum of your adjusted free cash flow margin and some of your revenue growth should be greater than 40. right. Well for us, that's 49 revenue growth in q1, 44 adjusted free cash flow margin, that's 93.! That puts us an incredibly rarefied share, we're the top we're in the top three of software companies were, but i think actually the most important thing is to realize that we're just at the beginning, we only have a handful of fortune 500 companies.

We are just starting to move down market to medium-sized enterprises. Our government revenue is less than 10 basis once less than a tenth of a percent of u.s defense spending. We have so much exciting product vision to invest in there's. Just a huge market to go after, and the most prudent thing to do is to invest aggressively to go after it and that's what we're doing.

We aren't focused on profitability. We're focused on growth, we're focused on generating an excess of 4 billion in revenue in 2025, as alex outlined earlier this year. Great thanks sean i'll stick with you on this next one: we've gotten a few questions around the announcement. The investments that we've announced uh so jackson kay asks.

Why is talenter choosing to invest in companies such as william and sarcos robotics? Can you speak to the motivation behind these decisions and if investors can anticipate future corresponding investments? How do you view risk investment, size and potential return, thanks jackson for the question, as i mentioned throughout the call, we are relentlessly focused on increasing distribution, and here we see a unique opportunity with ambitious companies to invest in both compelling management teams and compelling businesses and To partner with them on using our software from day zero, these are folks that are focused on winning. There is no entrenched i.t bureaucracy that wants to build their own toilet solution. They viscerally understand the value of buying the best operating system for their enterprise shaving years and mountains of risk off their road map. That's not even to make mention of all the money they would have otherwise wasted buying traditionally siloed systems from crm to erp, to manufacturing execution system to some homegrown mini monster.

Overall, we think this is a really compelling opportunity to accelerate our business, to accelerate our distribution and to bet on our customers. Great, maybe one more for you sean before going to the rest of the group. Uh jeffrey t asks: what are your plans to compete with microsoft in the coming quarters? Thanks jeffrey well, we don't compete with microsoft or other software, vendors or system integrators. We we compete against our customers.

We compete against our customers desire to build their own bespoke solution. This is build, burst, buy and you aren't actually buying with microsoft or these other vendors. I mean with microsoft, remember bombers famous me developers, developers, developers or with aws look at their product marketing it's about build, build better, build faster, build on aws the same for gcp and with system integrators by definition, you're building and yes, that's a challenge because our software Shamanism means that we build something radically in the future holistic in approach and stunning in its results. But it's also something that comes across as both heterodox to the high priest of id and their reference architecture.

But the proof is in the pudding when the pandemic hit and tore through our health systems in supply chains, the i.t orthodoxy failed to deliver anything ammunitive boundary and gotham delivered revolutionary capabilities in jaw-droppingly short periods of time. Our battle tested - and i mean that literally our battle-tested architecture - is competing against diy marketing and the pace we are innovating at continues to put distance between us and the next best alternative from archetypes that allow you to replace a year of custom integration. With a few clicks over a few hours to apollo for edge ai that allows you to deliver the most sophisticated operational ai. That is, frankly just a few steps shy of skynet and, as i mentioned earlier, we see the cloud providers.

I cannot believe he mentions kindness into their go to market motions and their offerings to their customers, precisely because selling undifferentiated lego blocks isn't enough great thanks, sean kevin i'll, come to you with this next one. It's kind of in a similar vein. Uh donatus asks. Do you see palleter becoming as crucial and impactful as microsoft office for business? Yes, when you expect to reach that kind of adoption, thanks for the question you know, people should expect more from the modern operating system for our customers, particularly in a time of great need.

We're the most crucial and the most impactful software for any type of business. Our users aren't just in the office they're on the front line on the factory floor at an airport doctor's office in a war zone, people use our product for their day-to-day job. Their day-to-day mission - now, i i think, about a nursing home worker in japan, who's caring for an aging population and needs to deliver preventative care workers at an airline routing thousands of flights were last year needed to find parking for thousands of aircraft. One of our customers is fighting wildfires in california, fire risk experts, doing on-the-ground inspections with founders.

The united states and the united kingdom government are running two of the most successful vaccination programs in the world and both are using foundry in the uk. Thousands of users from physicians to administrators, nearly 2500 vaccinations, nearly 44 million vaccines and every vaccine is ordered, allocated tracked and delivered in founders. In the united states million vaccines. Over 1600 data sets 50 states, 14 jurisdictions.

Pharmacies. Manufacturers, foundry is the place for the federal government to understand vaccine supply and distribution chain from manufacturing to the jab. Our products help our customers win, which is what is required of the modern operating system. Thanks kevin i'll come back to you on this next.

One johan asks your recent partnership with feresia and the one before with airbus shows your ability uh to work with that manufacturing clients. Is there any plan to develop that sector even for? Thank you, johan. Absolutely manufacturing is a huge focus for us and it's an area of deep, deep strength. Historically, just look at chrysler every factory in north america.

On the factory floor, you will find boundary open to manage quality in real time manufacturing with chemical companies, mining energy suppliers across ecosystems and automotive, aerospace, i'll announce a new customer, auto manufacturing with two shows. We have cutting edge products and archetypes that deliver rapid value in managing working capital. Procurement production demand, forecast, supply chain management, quality logistics, all the whole change around manufacturing, and i call out companies like william and sarcos again that are going to build their operations around foundry from day zero, using boundaries for erp crm, manufacturing execution for quality and and much More and our value here extends beyond manufacturing into sales and sets turning iot and telemetry data into real value, not only for the oems for the manufacturers, but for their suppliers and their customers. Great uh dave i'll, come to you on the next question.

We've gotten a few along these lines. Brian l asks, could you ever see palantir having bitcoin or any other type of cryptocurrency on its balance sheet? Ryan. Thanks for the question, the short answer is yes, we're thinking about it and we've been discussing internally. Take a look at our balance sheet: 2.3 billion in cash and quarter end, including 151 million in adjusted free cash flow in q1.

So it's definitely on the table from a treasury perspective, as well as other investments as we look across our business and beyond. On the other side of that, in terms of accepting bitcoin from our customers, we do accept it as a foreign payment, we're open for business there. Great thanks, dave, uh sean. Coming back to you, a question about our work in healthcare.

Conrad asks does foundry of a presence in early stage, drug discovery and compound identification, not clinical trial data, but molecular properties, especially as pharma moves from small molecules to biologics thanks conrad yeah, our life science work is growing very quickly and we are absolutely working on the Drug discovery, end of it i'd highlight our work with uh nci, the national cancer institute and the national center for advancing translational sciences at nih, where we are doing lots of pre-clinical work, a small sliver which is actually made public through public papers, where palantir and palenturians Are listed as co-authors, you can check out some of these from past appscodes. Our work with md anderson, md anderson spans, not only obviously clinical, but also pre-clinical, work that we're doing, but more head-on directly to just drug discovery. I'm proud to announce new partnerships with royband sciences, where we will work across their portfolio on drug discovery and development and, if you know anything about real events, they've invested a lot in computational approaches to drug discovery. Uh with cellularity we're gon na help accelerate science around their breakthrough, cell-based therapies and a cutting-edge biotech.

That's focused on translating condensate biology into medicine. Great thanks, sean uh, kevin i'll, come to you on this next one, a question about the go to market jackson. K asks how is talenteer planning to expand downstream to medium-sized businesses since demo day, and the kickoff of doubleclick has valentine's, seen an increase in interest from smaller companies and if not, how can calendar better demonstrate value to these businesses? I mean short answers. Yes, we signed up a number of great small medium-sized businesses recently, and i expect to see more of this because we're widening our distribution.

You know a big big driver of our q1 results that 72 commercial growth in the united states and what's contributing to the revenue guide for q2, is our increasing efficiencies of distribution. Our sales cycle is speeding up on you know demo day and doubleclick, demonstrating our product publicly generates interest from all over large global multinationals tuning in across their vast organizations. Smaller local regional companies are turning into tuning in to learn how boundary can provide an edge for their business too, and this generates activity. We mentioned that our qualified pipeline has increased by two and a half times in the us, and uk, and active commercial pilots across the business have more than doubled, and i think one of the most you know one of the most exciting things is that our shareholders Are showing up in customer meetings of the 1.5 million individual shareholders, some are calling, so they could bring foundry to their day-to-day job.

Great kevin i'll, stick with you. His next question is in a similar vein. Christopher t asks with the recent announcement that talenteer is going to offer software to companies for free. How is parents are getting this information out to fortune 500 companies is bouncer reaching out to individual companies? Are they waiting for? Are we waiting for companies to come to us thanks for this question? I suppose this is this is an opportunity to get the information out there.

You know over over this last year, many of the most successful responses to the pandemic relied on effective data access through foundry. The purpose of palinder unlock is to make foundry available to those who need it. I can remember about a year ago, when we were at the beginning stages of cova 19. We knew we knew that pallinger could make a huge impact, but we needed to help people learn this, so we began calling and calling we called.

You know city state, local government, hospital university research centers just to let them know that we had a technology that could help. I remember dialing into a state government and finally, after several calls finding the one person who's essentially trying to bring together data for the entire state, with nothing more than a spreadsheet and a whiteboard you're sitting in a war room, she was trying to figure out answers To critical questions, how many hospital beds do we have how long until we run out how many ventilators, how long will they last? How do i get ppe to my health workers and we're proud to say that this person had the power of foundry within hours, and that is what we're offering here with unlock great, so shaman's next question zooming out a little bit jose asks what is pouncer's long-term Identity will it be a data, an ai company or we'll try to be the leader in many parts of the tech industry thanks jose? Well, you know we we aspire to be the most important software company in the world and some would say with that. We're well on our way we help countries deter and respond to threats from totalitarian regimes. We help prevent terrorism from destroying our way of life.

We enhance the protection of data, gotten should and civil liberties prevent the reaction to terrorism from destroying our way of life. We help governments manage public health and, broadly, we have helped organizations respond to the various shocks that would otherwise have been desperate, and we do this with completely unique software foundry as an operating system for the modern enterprise gotham as defense os. These are generational shifts and capabilities and approach. Personal computing was stuck in signing before the standardization of the right operating system.

Similarly, enterprises are stuck in our site without the right modern enterprise operating system. They are either drowning in a collection of siloed applications or they're. Just being sold a bunch of lego blocks and a do-it-yourself dream, personal computer hobbyists tried to make their own operating systems too. We know how well that worked out alex sometimes says that we are software shaman.

We have this track record of seeing around the corner and building what the world needs before the need is obvious when the ability to even have perceived the need feels mystical and it's precedent when it meets the moment and you're going to see this again with apollo. For sai great dave i'll come to you with this next one luis asks: can you expand on pounce your stock based compensation? Will it further dilute the total shares of the company by increasing float each quarter and how much longer will significantly impact eps, hey? Louise? We have very low dilution when looking at our fully diluted share account. So far this year, our fully diluted share account has increased less than two tenths of a percent so really really low. With respect to sbc.

It will normalize over the next couple years as we're working through this outstanding overhang and at the same time, when you couple that, with a top line growth we're going to continue to make progress towards gas profitability. I would just add that, obviously, everything dave said is right here. The 20 basis point shows the discipline with which we are managing dilution, but just to zoom us out for a second here like. Why do we have stock based comps in the first place? Equity? Is the fundamental investor employee alignment we want and frankly, you should want employees working their asses off with a long-term orientation to grow the value of the company.

And so yes, we plan to continue granting equity to our employees and providing them opportunities to share in meaningful upside in the company. In order to maximize your shareholder value, great dave, i'll stick with you, uh jason b asks. Why does papa carp keep selling your shares? Jason thanks make some questions and nice popcorn reference. We'll call him alex here so first off alex is one of our largest stockholders, but he has his two large option: grants that are expiring at the end of december.

That can't be extended, and so when he goes and exercises these options, it's going to create a very, very large tax built just to exercise and involved in shares and, as a result, we've seen tax motivated sales as well as many corresponding exercises for shares that you Will continue to hold uh, and even after this, you know continue to be one of our largest followers, if you're interested in the nitty-gritty, how you can check out our filings if you want more detailed work, great shawn i'll, come to you with this next one before We open up the call emil asks experience with concierge software appears more often now on job postings. Would you consider creating courses or tutorials on how to use your software access to a course would give an incentive to the employees to request the software for their companies? Could you comment on that thanks emil? Indeed, the number of job postings for roles that require counter experience for books are growing every day and, and that has really accelerated now that we have 15 large system integrators who are hiring training and building practices around boundaries, and we've built robust training to enable these System integrators to build billion dollar lines of businesses around boundaries, but to your question, we want to do even more here, especially where i can help with restarting economies and returning to full employment. So we're planning to make foundry training available, free to veterans of u.s and allied militaries to all of our individual shareholders and to anyone who's unemployed in the markets that we operate in. We are really excited about this and we hope that it will make a meaningful contribution to restarting and reopening so stay tuned for more details around this in the coming weeks, great operator we'll open up the call for q a okay.

Thank you. If anybody would like to ask a question, please press start one on your telephone keypad. Your first question comes from chris merwin from goldman sachs. Your line is open all right thanks so much for taking my question and congrats on the quarter.

Here i wanted to ask about the commercial business. It looks like growth improved from last quarter so below 20, but i know there's a lot that you've been working on there, including the modularization of foundry, and and wanted to hear how that was resonating with customers and then just the second part of the question would Be around the customer ad looks like you added 11 new customers on the commercial side in the quarter did most of those come from ibm or those through your direct sales force thanks great thanks thanks chris um yeah, the commercial business is gaining more and more momentum. As we as we mentioned, it grew 72 in the us. So what we're seeing is where economies are opening, there's just incredible traction: there uh we've hired 50 sales folks in the last quarter, you're starting to see that translate through and in terms of activity.

Two and a half times uh the number of qualified opportunities in the us and the uk double the number of commercial pilots, the product investments that we've made around modularization and archetypes. Those are i'm going to explain. You know the ibm partnership generated its first deal within 16 days of being launched there, so lots of momentum there a place. I will continue investing in uh overall we're quite excited.

We continue to win deals in europe. You know ferencia uh lillian's in europe, peugeot uh, ng, so a bunch, a bunch of momentum there and, as europe starts to open and manage through the pandemic. We're also expecting the same sort of tailwind that we've seen in the u.s uh in europe thanks so much and your next question will come from parties of the world chin from jeffrey shillon is open thanks. Thanks, miss brentfield at jeffries um on the the government business.

There's a lot of questions about the sustainable strength of postcovid and what what you're, seeing? I think you've said in the past, that kobe has opened the door uh to many conversations, but there's a considerable amount of long tails of that. If you could just talk to what you're seeing uh as as you look out, thank you thanks brent that that's absolutely right. Uh. There are a lot of things that got started as a result of covid, but many of those things were not related to coded response per se.

It's really the fact that something had to be delivered. It had to work in days. It showed many of the customers where their bespoke custom build approach, was just never going to get there and allowed them to mark the market. Whether a faster buy solution was going to work, and so we've seen that across the business.

Of course, the work with the national nuclear security administration is not directly covered related at all, but but is certainly accelerated by this we've seen work across health care, dod civilian agencies accelerate inside the u.s and outside of the u.s uh. We've also seen that um, the the pipeline is continuing to go. There we're expecting a lot of defense related activity to build over the back half of the year and into next year. We participate in the global information dominance, experiment uh with 11 to that command uh.

That was not even visible during during the context of go over. Here so quite excited about the case at which these things are building and, if you think about apollo for eji most of the capabilities we're looking at, they didn't even exist around the time of the listing, like the pace at which we are innovating on the products Is probably one of the most exciting things, and that is what is creating these opportunities that are compounding again. If anybody would like to ask a question, please press star one on your telephone keypad. Your next question comes from keith weiss from morgan stanley.

Your line is open. Excellent. Thank you. Thank you guys for taking the question and and very nice quarter uh, especially with those those new commercial uh customer ads.

I had a question on kind of the margin side of the equation and um how we should be thinking about expense growth throughout throughout the remainder of the year uh, maybe to you david um. He did close to 150 or over 150 million to protest when she won you're guiding to that figure for the full year. How should we use that to sort of guide our expectations on how fast objects, uh cost brands throughout the year um, and how should we think about that on a go forward basis? What's the investment philosophy, if you will behind uh talent here over the next couple years, as you look to sustain that 30 plus growth? Absolutely absolutely so, as you noted, we had a very strong quarter: uh 49 revenue, growth, 44, adjusted cash flow margin and 34 adjusted operating markets. If there's nothing noteworthy to call out on the expense side uh, you know the top line b.

Dots have contributed there overall super pleased with the results. It shows the underlying unit economics. You know, let's look ahead to q2: very strong revenue guide of 43 growth coupled out with 23 operating margin, while at the same time we're really going to be investing into the business. Investing in sales tires investments around the sales team, continued investments in the product and rd.

You know a lot of what sean talked about and we're going to be focused on reopening. You know it's really important to get the company back in the offices, get people together and focus on on culture, and your next question will come from alex zuken from wolf. Your line is open, hey guys. Thanks taking the question um, i wanted to ask clearly the confidence in the commercial revenue growth is high, given the rep hiring you guys are putting up.

Can you talk about uh, the divergence in in pilots in the commercial sector versus the stated revenue growth, and when will those pilots convert to revenues? How visible is that conversion timeline exception? Yeah we're quite excited by the pace at which uh our hires are being being accomplished. The the ramp that we're seeing for those tires we're also seeing just a kind of aggregate flywheel acceleration. That's actually alex he's an analyst discovering palliative. He has a target price of 23..

He was asking the question. We are feeling very bullish and we're seeing that there uh the pilots themselves are compressing in terms of how long they're, taking because of the investments made in product modularization, archetypes uh. These allow us to structure the pilots in a way that something that would have taken three months before is now a week or less. This is giving us a lot more capacity to cost efficiently, distribute the product, accomplish these pilots uh and and turn the revenue crank here, and so we're seeing very high returns in the salesforce we're building.

We want to keep doing more here. Look for that to accelerate even further in the back half of the year um and the the conversion we're really happy with it. I i think, when i just think about the two and a half x, qualified pipeline, that's been created since february first and then i think about the doubling of the pilot uh we're seeing about a third of those have already turned into something, and so as we Build bigger and bigger pipeline here we're feeling good about how that funnel is flowing through, and if you combine that with the additional product investments the roadmap that we're executing on. We have every reason to believe that we're going to continue to see acceleration across all these dimensions.

This brings us to the end of our audio q a session. I turn the call back over. My average price is like 23 22.. Thank you all for joining us.

We're excited about the quarter. Thank you for waking up early, we'll talk to you all soon. Thank you everyone. This will conclude today.

Okay, so i'm gon na answer the question you may now disconnect. Okay, thank you for giving me approval to this connect. Okay, so i'm gon na answer a question here which is really important question: i'm going to put it up on the screen, so people can see it hold on a second. How do i shut the thing down? Okay, so i'm going to explain their answer and i'm going to put it up on the screen, so everybody see why alex carp is selling so much stock.

Okay. So this is the question everybody wants to know and i think their answer was really interesting, but it was kind of quick. So let me explain the answer here, because this is really interesting and by the way, if anybody wants to call in and and ask a question or just you know, um just make a comment. Whatever i'm going to put a comment in the chat right now with the link, i'm going to pin it and you can use that link to dial in and you'll be placed in the waiting room, and i'm i'm i'll put you up on the stream.

So you can ask a question: just be: respectful, have a good set of headphones and a decent mic, and we'll put you up so um. What was the answer as expected and when you have heavy insider selling, the reason usually is tax driven and what they explain here hold on one second yeah, sorry, i'm back so what they explained here is that essentially, because alex has employee stock option grants. That means every quarter that he goes through the company. He gets more and more options that are vested when you get options.

You don't get to exercise these options and because essentially, there's a vesting period, so the more you're in the company and by the way i see everybody in the chat. If, if you join the live stream and you're in the waiting room, i see you so don't worry, i can see you i'm going to pull you up. It's going to take a second just hang tight so because alex carp keeps getting options from the company. He has an option plan like every other executive in any other company.

When the vesting occurs every quarter more of it is vested. He can exercise them when he exercises the options. There's a tax cost to this he's, exercising an option and the difference between the grand price and the strike price. It's taxable event, so he has to pay tax, even though he didn't get a single dollar in his pocket.

So it's an expense for something that he didn't make money for. It's like paying tax on something you didn't get. You didn't catch the cash yet! So that's why he's selling stock to pay the tax expenses on the stock options that he's exercising it's a very common thing? It's very normal and it's happening in every single company. It's nothing out of an ordinary and this answer, as somebody who dealt in this industry for many many years makes perfect sense.

So i'm going to start pulling people up, there's a lot of people in the waiting rooms. So, let's, let's pull you guys up. So, first of all, i'm going to pull up jason jason, get ready you're on jason you're on you have a producer over there telling you you're on. We lost you.

Okay, i got you back. What's going on buddy for regular people, what's going on jason, we lost you, okay, okay, i was just wanting to know if they would be able to make a personal app for like regular people. Okay, good question: it's actually it's! It's actually a question that they've been uh. They've asked uh to keep our stuff in order yeah.

So basically what happened is in the live stream. Somebody asked a very similar question: uh whether they're planning to go from a pure b to b, like large businesses to a more mid-sized businesses and they've actually said that they're working on it. The next step after that would be something personal for personal users, because i think, as you pay, you jason pointed out the banger here once patented goes b to c and it becomes the next facebook amazon, google, which is serving actual customers. That's where you're going to see the massive explosion, because as a b2b, it has obviously a ceiling.

So i think the question that they asked them during the live stream, whether they're going for a b2b on the smaller scale, which they they said. Definitely, yes, i think the next step after that would be some sort of a personal application, software that we all can use, and i can think of a million different things that they can do for every single person as far as financial accountability, financial management, personal safety, A lot of applications that you can definitely lose so definitely i i couldn't agree more. Thank you for dialing in uh. Thank you, brother um.

Next, up i'm going to pull up somebody uh. Next up, we got big lou. What's up big glue, hey how you doing voice uh great great? What's your question uh, i wanted to know what your initial thoughts were from uh from that stream. Okay, so i think the stream could have gone better as far as production quality.

I think their mic was horrible. We can barely hear them um. Definitely it was a cool trick and and a nice little a kind of a anecdote to had. You know joko willing and narrate the opener, which was really cool, and i think it was funny and it kind of goes along with the brand, and that thing was cute and as far as production quality.

I think that they should have invested in the better credit quality. I mean you're going to put out this kind of call. You might want to add some video features and if not at least i mean tesla, doesn't do it at least invest in better audio. As far as the actual fundamentals and the things that they were saying, i think they had a really good quarter.

I think if you take a look at the actual numbers, so you're talking about a 50 revenue growth uh during a pandemic, which is something that we kind of expected, but again they hit the mark. They hit 4 cents per share eps, which means they were on on target 50 revenue growth um. I especially like to see the 73 percent that they had in commercial growth and what i still want to see - and it's where i'm not satisfied is something they didn't mention in the call. But i can see because i'm not a fan boy.

I can see the issues for me. The main two issues with this company is the client concentration right now they have 150 clients. That is not enough for you to claim. I have a scalable massive b2b business 150 clients.

It still sounds and talks like a consultancy business, even though they don't they foundry is definitely not a consultancy business, but as long as the numbers of clients don't go in the thousands and it still stays in the hundreds like they do right now. That's where the people don't believe them, they're saying: well, it's not it's not a scalable business. If you only have 150 clients, plus it creates risks financial risk. As far as client concentration, when you have only 150 clients, every single client is worth about 8 million per year and it's very intense as far as risk management.

I that's where their weakest point. They got to get more clients and and more client of the diversification. For those two reasons, thank you for dialing in brother yeah. Okay, next up we got michael yo mike.

What's up, and i see everybody in the in the in the waiting room i see brandon. I see peter i see bobby. I see you guys waiting, don't worry, i got you covered. What's up the mystery man, michael yeah, sorry for the lighting.

It's coming from that side. Are you planning? Are you planning your assault on batman, yeah, probably uh so hi from germany by the way and uh thanks for the stream and um? I would like to ask you if uh, you think palanti will be able to stop this downtrend. That is uh coming for all tech businesses by announcing those good numbers. No, i think palantir is diving because of the reason palantir is diving.

Is i'm going to mute your mic, but you can admit yourself if you want to say something just because of the background noise, a palantir is diving because of a few things. I don't know if you noticed, the entire technological companies are diving right now. That is because we have extremely high inflation numbers that people are anticipating for april uh. The kind of gold standard for inflation is about two percent in the us, from what people are saying on the street: we're going to hit about three and a half percent inflation.

So that's very high inflation numbers for april and if you watch my show, you know that inflation high inflation leads to high interest rates, which leads to higher discount rates which, if you're talking about a financial, uh analysis of a dcf. When you have future income like palantir, like tesla, like any tech company with future revenues, when you discount them at a higher discount rate, which means higher interest than current valuation or lower, so i think the market is dealing with inflationary fears right now, and it has Nothing to do with panicking or tesla, whatever um, i think, with in the case of palleteer. The concerns for them will not go away because people kind of they did what people anticipated. It's not like they came out and they had 150 revenue growth and all of a sudden they have 500 clients.

I mean they did what everybody expected them to do. They hit four four cents per share. Eps everything is just the way people kind of anticipated. That means that the people who don't trust, uh this company essentially saying well, it's a consultancy.

It's not a it's, not a it's, not a scalable business. Those same people didn't see anything today that can actually convince them that this thing is anything different. However, if you listen to the stream, you have to listen carefully in this stream. They said we're aiming to be the largest software company in the world.

They said it in the stream and trust me. Nobody says anything like this on an investor call which is regulated by the sec. You cannot say this just because, like a brain fart that that thing was intentional and i think there was signaling to the to the hardcore audience hey we we that's exactly where we want to be. However, just to remind you, i mean a company like amazon in 99 or 2000 people were taking dump on amazon saying well.

This is ridiculous. Amazon is a joke, blah blah blah. I mean those things don't happen overnight. It's just a it's a really long game.

If you're trying to aim to become in 15 years, the biggest software company in the world - that's not going to happen overnight and one single quarterly report isn't going to change that. You know what i mean yeah, thanks, no problem. Thank you for dialing in mike. I appreciate it you're my mystery man in the shadows later brother, okay.

Next, we got peter pan. What's up peter, like your name, hey dude, thanks! So much for having me on. I was just wondering uh. Will you be buying more a 100? I will be buying more a hundred percent uh.

I don't know exactly how much, because i'm trying to allocate some to tesla some to planet here and i'm i'm definitely buying a more of these two for sure today. If the prices remain, which it seems like they will, i'm probably buying some more. However, if you want to play that game, i think penalty might go even a lot lower. Today.

If you look at the uh what's going on with pilot here today, um it might actually, it might actually go uh all the way to 15. And if you have patience, i'm just going to buy that today, at whatever price they have at opening, because when they think about it, this way. Okay, think about the people who bought tesla. I'm not saying pallet is tesla, although i think they're very close in the concept people who bought tesla at twenty dollars and versus people who bought tesla 25.

Do they does it even matter today, when you know we're five years later or whatever three years, it doesn't really matter. If you believe that this is the next big software company in the world, does it matter if it's 16 or 15 or 14? No, but if you're kind of day trading or swing trading, then it means the world to you, those extra two dollars. So if you were kind of in a swing trade mode, probably i probably think it might go even lower. But if you're in the long game - and you want to average down i'm going to be averaging today for sure that's that's the main goal averaging down and getting the most of the gym yeah definitely i'll be.

Definitely doing it thanks. So much. Thank you. Thank you.

Peter i appreciate it. Thank you for stopping by uh. Next up, we got bobby bobby before you talk just a quick shout out to elia sanders for the five dollar donation. Thoughts on planet are hiring a specific strategist strictly for u.s treasury department.

On their current job postings i mean planetary are going to grow their government business enormously over the next five years. That's not the question. The government is gaga over volunteer.