How software is deployed anticipating a future where multi-tenant sas is dead and is clearly dying in the present, a trend that is accelerated by geopolitical events? Every software company will need to be able to deploy their software into their customers, environments requiring them to manage fleets of heterogeneous environments across public clouds, on-premises sovereign clouds and growing data jurisdictional boundaries, and to do all that seamlessly apollo will take customers from a world of Continuous deployment to autonomous deployment - and we have been pleased with the market reception to apollo in our demo day event really being received by a completely new buying audience. We are also now offering nexus peering as a standalone capability for customers to build their own data fabrics. On top of over a decade ago, we pioneered a technology that enabled gotham to reason about the causality of a distributed system of many many different gotham nodes. These nodes could all have independent concurrent edits to the same objects and nexus peering meant that we could synchronize these edits across the network, either in real time, with consistent comms, as well as across unreliable intermittent and disconnected environments.

Nexus peering means that you have a distributed data fabric that is survivable and resilient. The loss of any number of nodes or facilities won't impact the whole. This is a core and fundamental hard technology breakthrough that has powered gotham's unique success across coalition information sharing for defense and intelligence agencies and by enabling nexus peering to be sold as a separate capability. We can enable every program in the department of defense to leverage this distributed, data synchronization and data fabric, as we further demonstrate our own commitment to dod's modular, open systems approach.

The greatest opportunity for foundry continues to be the application development infrastructure platform. We believe that foundry will become the place that you go to build the applications of the future with aws or azure, with their highly unopinionated collection of services. Most of the work remains in front of you to get to value, and all of that bonus is on you, the customer, to get to that value with foundry you're 90 of the way there on day, one software-defined data, integration native multi-tenancy for your applications, the opis Version pipelines, applications artifacts, just name some of the components that make foundry work from the start. That's why u.s space forces, kobayashi maru's software factory, realized their ambition.

Building 13 operationally accepted applications on top of foundry in months, while sun setting legacy 100 million dollar plus programs. That's why airbus rolled out an internally developed supply chain network control tower a suite built on top of foundry's application development infrastructure and in this set of applications it mitigates supply chain issues and is working towards saving hundreds of millions of euros annually by speeding up production Against existing fixed capacity and reducing inventory across all parts, what aws was in the last decade? Foundry will be in the next. Turning to the highlights in our commercial business we added 37 net new customers. In q1, we saw continued growth in automotive, in financial services and energy, including a new super major customer and in life sciences.

In april, we closed a renewal with a major u.s fortune 100 company for over 150 million dollars. This customer hosted a hackathon with over 600 participants featuring applications built in under four days across finance, build planning, network, resiliency and customer experience. This was a good and telling example of how scaled customers built better on palantir as application development infrastructure. Last quarter, we saw a continued interest in our modular offerings.

Hospitals need to improve operational efficiencies surrounding patient flow and staffing processes in order to decrease the length of stay and ensure patients have access to proper care. Pallinger's hospital operation suite has proven a unique ability to solve these problems through collaborative decision making, based on real-time data, with targeted event-driven notifications and actionable ai, very generic stuff. So far, very little actual color on this. So i'm guessing we're gon na have to wait until the we get to the actual questions for any details, how's it on january 1st, turning to government, it's just reading out the slides that we already went through so not very, not very exciting missions of the west's Most critical foundational institutions: our ambition - is to be the sixth prime contractor for the u.s federal government, a trusted partner to deliver complex, end-to-end, integrated hardware and software solutions, building on the legacy of programs that we prime today.

But we seek to be the first company to do this as a software prime, using software innovation and our unmatched expertise to deliver new integrated hardware software capabilities, one, we launched our u.s federal advisory board an important milestone in this journey. The war is not just happening on the ground in ukraine, but also in space and accordingly, our opportunities in in the space universe continue to expand. U.S space force continues to deliver new operational capabilities to america's space guardians who have set the gold standard for allies. This is leading to substantial interest in u.s space forces warp core platform, which was built on foundry amongst allied nations at space.

Symposium in colorado springs to an audience of u.s and allied governments, peter marquez, the former head of space policy at the national security council and the head of space policy at aws, presented project argus a new space situational awareness platform built on foundry. We closed a 10 million pound enterprise expansion with the uk royal navy pounder software is used by the royal navy across a broad spectrum of areas from strategic workforce planning to supply chain management and world events have accelerated our opportunity in western and northern europe. In germany. We were awarded a framework agreement for state and federal government organizations to purchase gotham and foundry with an initial order coming from the bavarian police adding to our existing german security customers in north rhine, westphalia and hessia.

Our government healthcare business grew with an expansion with the centers for disease control and prevention. The growth of the work is reflected in the doubling of the run rate over the past year, while continuing to deliver on the cdc's food-borne pathogen program which we have been powering since 2009. The cdc, expanded foundry's pathogen surveillance and response work and deployed generalized modules built on top of a common foundry ontology against new pathogens, including measles, mumps, legionella and novel flu. The cdc is also using foundry to process genetic sequence, data derived from wastewater samples.

On the other side of the atlantic are continued. Investments in software-defined data integration with our newest pipeline builder product continues to pay off at the nhs where they were able to roll out foundry to 38 hospitals. Integrating hundreds of data sets in march alone to enable them to work through the national care backlog. I'll turn it over to dave to take us through the financials.

As alex and sean highlighted, we're uniquely positioned for unstable times. We work with some of the most crucial and important institutions in the world. This is so pretty. The us government was 42 of our first quarter revenue and has been a leading driver of growth for eight years, with a thirty percent keger from 2013 to 2021, which we view as a long-term trend.

More fundamentally, we believe supplying our products to the us government and her allies is a core pillar of our business, as alex mentioned in the face of substantial macroeconomic and geopolitical challenges and uncertainty. The quality of our revenue, as viewed through growth margin, performance and durability, and especially resilience is unique to palantir. As alex wrote in his letter, we combine the resilience of the defense industrial sector with the growth of a software company in the face of our customers challenges. We have and will continue to incur expenses prior to having contracts in the delivery of mission, critical capabilities following these investments, we expect acceleration of our us government revenue into the second half of the year.

Let's hope they actually get to something that wasn't already printed on the slides that we all saw for the last 45 minutes to follow in the next quarter or shortly thereafter i'll now review our first quarter performance, followed by our outlook. First quarter revenue grew 31 year-over-year ahead of a prior guidance to 446 million overall net dollar retention was 124 commercial revenue; growth accelerated for the fifth consecutive quarter; first quarter: commercial revenue, increased 54 year-over-year to 205 million up from a 47 increase in the fourth quarter; commercial Growth continues to be driven by our u.s business as u.s commercial revenue, growth accelerated to 136 in the first quarter up from 132 in q4, international commercial revenue, growth accelerated in q1 to 24 year-over-year up from 22 in q4 and 7. A year ago, our u.s business revenue grew 38 percent versus the year ago period. Government revenue increased 16 versus a year ago period to 242 million.

Adjusted operating margin was 26 ahead of our prior guidance. By roughly 300 basis points. Our customer acquisition continues to accelerate. We added 40 net new customers in the first quarter up from 34.

In the fourth quarter, we had our strongest quarter of net commercial customer ads, adding 37 commercial net ads, which equals 25 sequential growth and 207 year-over-year growth. We expect continued growth in commercial customer acquisition throughout the year. Our growth with existing customers remains strong, trailing 12 month revenue from our top 20 customers, increased 24 year-over-year to nearly 45 million first quarter. Billings were 490 million.

Well, i was just reading off the slides, um alex just published a letter and we're going to go through that after the earnings call, as well as just a bit of analysis, so i've got it open, but we'll get to that after the call right. First quarter. Tcp closed was 248 million. The us government's businesses tcv has been impacted by the continuing resolution, but now that a new budget has been passed, we're already seeing q2 us government revenue re-accelerate.

Additionally, with the geopolitical landscape outlined by alex, we expect government bookings activity to increase for the remainder of the year, resulting in stronger government revenue growth. In the second half of 2022, we ended the first quarter with 3.5 billion in total remaining deal value up: 26 year-over-year, while duration shortened 4. Over the same period, we ended the first quarter with 1.2 billion in remaining performance obligations up 86 percent year over year. As a reminder, rpo is primarily comprised of our commercial business, as it does not take into account contracts with an initial term of less than 12 months and contractual obligations that fall beyond termination for convenience clauses, both of which are common in our government, business margins and Expenses are on an adjusted basis, which excludes stock based compensation.

Adjusted gross margin, was 81 contribution. Margin was 57 first quarter, adjusted income from operations, excluding stock based compensation and related employer payroll taxes was 117 million, representing an adjusted operating margin of 26 ahead of our prior guidance of 23. First quarter, adjusted expenses were 329 million up 7 sequentially. We are spending to position the company and our customers to win in the current geopolitical environment.

These investments in product and our customers will continue over the balance of 2022. first quarter. Adjusted earnings per share were two cents which includes a negative two cent impact, driven primarily by unrealized losses on marketable securities. We generated 35 million in cash from operations and 30 million in adjusted free cash flow cash flows vary quarter to quarter, but it's worth noting the 66 million dollar increase in our accounts.

Receivable balance. At the end of q1, we had a very strong war, chest 2.3 billion in cash and no debt. In march, we expanded our revolving credit facility to 500 million up from 400 million previously, and our credit facility remains entirely undrawn. Our balance sheet leaves us ideally positioned to take advantage of the opportunities that may arise from further deterioration of global conditions.

Turning to our outlook, we are guiding to a base case of 470 million in revenue for q2 there's a wide range of potential upside above our guidance, including those driven by our role in responding to developing geopolitical events. We expect second quarter adjusted operating margin of 20. In the base case, as we accelerate investments to support our customers mission in advance of anticipated contract awards and continue to expect full year adjusted operating margin of 27, we expect and are already seeing an acceleration of our u.s government revenue resulting from these investments. Continuing to execute the guidance strategy set forth by our ceo, alex carp in our year-end 2020 earnings call with regard to long-term revenue guidance.

We are providing and will continue to provide guidance of 30 or greater revenue growth for this year in the next three years. At each earnings call with that i'll turn the call over to rodney to open up q a. Finally thanks dave joining me for q: a are sean sankar, dave, glazer and kevin kawasaki sean. This first question is for you, kernish p asks: are there any new products? You are looking to launch in the near future.

Thank you. Kernish we have released so much. New product pipeline builder has improved data integration, productivity, two to three acts at the nhs autonomous sales and operation planning and execution. The hospital operations suite metaconstellation, ai and edge stream and beyond new product, we are bringing to market 15 years of deep tech that we built to power gotham and foundry nexus.

Peering our distributed d-dill data fabric is going to power. The next decade of dod programs apollo is going to take our customers from continuous deployment to autonomous deployment, and this is what we're focused on everything else: financials performance, those are the consequences of our execution. On this focus. We build software.

The world needs before the world knows it needs it. The prescience of our software arises from a deep love and respect for the institutions that are required for the world to function and a deep understanding of the macro. Geopolitical shifts that some might say are coming. But we would say have already arrived and the practicality of our software arises from the deep love of our users, the humans who are at the coalface, who do the hard work day in and day out from the factory floors of detroit to the cold, concrete floors That refugees are sleeping on in warsaw.

We build software for the world as it is today to help our customers and their humans manage to get to the world that ought to be. This is this: is such a sales pitch thanks sean dave? This next question is for you, daniel l asks what is palantir doing to reduce shared dilution. Thank you, daniel. This is actually something that is repeatedly misunderstood.

If you take a look at last year, we only added four tenths of a percent in fully diluted shares outstanding. In the entire year, if you flip to the first quarter of this year, that fully diluted number actually declined for the quarter, so you literally ended q1 with fewer shares than when it started. Thanks dave sean. This next question is, for you noah a asks, alex carp said bad times are good for palantir.

What is palantir doing during this time of war, inflation and hyper partisanship to back up karp's words, how is palantir solving the world's current greatest problems, thanks noah? This question is really important. The answer to it is literally palantir. It is the reason that we exist. These are so pre-prepared, it's so dark company and our products for this world, as our customers confront rapidly their life questions, runaway inflation, disrupted supply chains and a new wave of refugees.

Our products have become more essential than ever. I've already talked about how we are helping governments respond to russia's invasion and the resulting humanitarian disaster from meta constellation and edge ai to powering refugee and relief operations. But it's also important to understand that a chain of events has been set in motion. A rube goldberg light set of bangs, boinks and ricochets that extend and will continue to extend into every facet of the world.

Food is short and prices are exploding. The availability of fertilizer required to grow more food is disrupted. Commodity prices are skyrocketing, neon gas cf-46. Palladium.

All disrupted all crucial in the semiconductor supply chain. Ukraine is a major regional center for clinical trials. All of those trials and the life-saving medicines behind them are now disruptive, simple, but essential automotive components like wiring, harnesses and seat belts are disrupted. All of this is coming on the back of a set of dynamic disturbances from covid and the resulting supply and demand shocks.

People are still coping with and the emergent wave of shocks that will come from extended and severe lockdowns in china to solve these problems. You cannot operate on software that was built to assume a stable world in the stable world. You can make plans and you edit it occasionally. The plan is static.

The assumptions are fixed and immutable in the real world in this world. You only make a plan, so you can change it. You need all of your data ontologized into your digital twin, flowing into dynamically deliberate applications that connect to each other. You need your ai to move faster than the rate of it sounds like the kind of stuff that people who make up those random, crypto tokens say to pump up their price.

This is just so cringe-worthy means you need an entirely different approach to manage suppliers, logistics, production and snop. Our work with tyson's foods is delivering 10 million dollars of value realization every week by moving them from legacy approaches like integrated business planning to autonomous sales and operations. Execution by moving from a static plan that was assumed to be right to autonomously planning, where you go turn by turn, as as they are dynamically updated to navigate around unforeseen obstacles. Literally, every function of every business is breaking under the stress of these events.

Events where the aftershocks are strong and more profound than the initial earthquake and foundry was built for this thanks sean dave. This next question is for you deepak c asks: when is the company targeting to be gap profitable? Okay, maybe we'll get a good answer here. Maybe not, we had a negative nine percent gap operating margin in q1, an improvement from negative 14 and q4 and from negative 33 percent in q1 2021. So we're making significant progress and q1 was our strongest gap quarter to date and not to mention.

Last year for the full year we posted 424 million in adjusted free cash flow with a 31 adjusted operating margin and we're already off to a strong start this year. But with that said, we're preparing for a world that has the highest chance of a nuclear war in my lifetime, let alone, since my parents are kids and as alex discussed, the quality of our government as viewed through growth margin, performance, durability and resilience is unique to Volunteer, we think this uniqueness will be incredibly important in the quarters to come. Thanks dave kevin. This next question is for you, jackson k asks.

Can you comment on the spak partnership strategy and its impact on the financials that did not answer the question? Revenue from these contracts has peaked in q1 at around 39 million and we will not have additional new customers from this program as we've wound the program down. Going forward expect about 30 million of revenue per quarter from these customers. Revenue in q1 is higher as a result of some catch-up of about 9 million recognized in the quarter reflecting work we started last year. We also saw roughly a negative two cent impact on earnings per share from the marketable securities.

When you look at this by geography, you'll see continued strength and growth in the us business expats growing at 65 percent year-over-year and nine percent sequentially quarter of a quarter. We had our strongest quarter for winning new commercial customers overall commercial customer count up 25 sequentially and up 207 from a year ago and in the united states commercial customer account grew 368 percent. We expect continued growth in commercial customer acquisition and, as alec mentioned alex mentioned, we see a path to double our us commercial revenue. Again great thanks, kevin sean one more for you before we open up the call michael p asks in the fy 2021 business update.

There was a reference to ops pi as a foundry capability or perhaps module. Could you elaborate on the problem that solves and what value it delivers to foundry users thanks michael when you think about foundry, there are really three high-level massively differentiated capabilities. The first is that foundry makes the marginal cost of data integration approach, zero, with software-defined data integration with pipeline builder, with all this data integration technology, we have software that writes its own data pipelines for you, this gets you to the starting line quickly. It helps you answer the question: how am i going to bring all my data together? How long is that going to take and how i deal with the fact that there's new types of data created every single day? The second capability is that foundry makes the marginal cost of application development approach: zero, no code, wysiwyg application builders for robust, interconnected dashboards.

These are applications that read and write to your existing enterprise. Transactional systems. Like your erp, your general ledger, your your warehouse management system and third foundry has needed sorry, my michael's music. This is just so generic they're, not answering the questions on the commercials whatsoever, they're dodging anything on the specific numbers and just saying the product is great, and it's going to continue being great in real time.

The best analogy i have for this is that current technology is like most, people are using something like mapquest, where you put in a destination and then you print out the map. Foundry is like waze, where yeah you put in the destination, but we are dynamically computing. The best way to get there all the time turn by turn, based on the ever-changing facts on the ground: traffic construction accidents, road closures, while the competition is stuck in the traffic jam, you're racing across the finish line. So all of this is possible because foundry is a digital twin of your business and that is powered by foundry's ontology, so with our ontology we're modeling, not just the nouns, but also the verbs of your business, the actions that you can take.

So that means you cannot only realize that there's a problem with your production plan based on real-time data, but also compute the correct answer: the correct plan and push that transaction to your erp system, and all of that amazing capability has historically only been available for applications Built inside of boundary, the opi's they change. All of that the power of the ontology can now be used by any application in the enterprise, whether it's first party apps developed by it or third-party apps developed by its suppliers and independent software vendors. The opis are clean. Syntactically sugary sets of restful apis, i like to think about it as serverless enterprise orchestration, it's lambda, but for your enterprise, simple abstractions, that make the authentic complexity of the real world, businesses, manageable and programmable thanks sean.

Our next question comes from brent phil, with jeffries brent you'll receive a prompt to unmute your line and ask your question. Finally, let's go real questions, let's see if they actually answer them. Regarding the government business, can you talk to the acceleration that you're seeing in the business - and i think you called up the united states as where you're seeing the re-acceleration? Can you also speak to the rest of the world and what you're, seeing there? Absolutely thanks brent. We've been working with the us government for 15 years and over the last decade, we've seen a 30 kagger, and that covers times of peace and times of conflict, and i've already talked about our involvement with current events and the role that we're that we're playing there And you can you can kind of see the re-acceleration starting to happen with the winds that the work that we're doing with d6 cd2, which was literally built for a land war in europe? The expansion of the work that we have with the uk royal navy? The the framework agreement that we have in germany, with the with state and local police covering bavaria northwind westphalia hesha the work that we're doing in space with the bavarian police has nothing to do with the war.

The knock on opportunities that creates for us with allies. As they approach space, and so the end result of this is that in in q2, we've started to see the u.s government business re-accelerate uh we're doing a substantial amount of work right now, where we are investing in our customers, and we expect that work to have Both short-term, but also longer-term, payoffs we're doing work now that that matters and will likely be contracted, but we're also doing work that is defining the requirements for defense procurements over the decades to come. Here. Oh, come on answer the question.

Our next question comes from brad zelnick, with deutsche bank brad. You will receive a prompt to unmute your line and ask your question: i'm hoping that you can. I think you guys might have come out cut out on me, but i wanted to double click on the range of upside that you referred to in your q2 guide. Yes, how much of that variability is coming from commercial versus government and how should we think about the variability questions for your 30 revenue and 27 margin guide for the full year? Great question uh! Thank you so in in this macro environment, we feel very well positioned for the full year and beyond um.

You know our us government revenue represented 42 percent of our q1 revenue, and a significant amount of this is in the defense space. The commercial business has been outpacing the government business accelerating in each of the last five quarters to a 54 growth rate in q1 and as sean just mentioned, you on q2 we've already seen some re-acceleration uh in the u.s u.s government business, which we think is a Long-Term trend and expect acceleration of the overall government segment uh this quarter or shortly after okay. So some interesting thing thanks kevin the next question comes from mark cash with morningstar mark you'll receive a prompt on mutureline and ask your question no, but quite interesting. The last question re-acceleration of government from the 16 growth that'll, be interesting to see next quarter.

It's very, very cagey um. Our next question comes from rishi giulia with rbc rishi. You can unmute your line and ask your question. I really appreciate it.

Maybe i just wanted to go a little bit more into understanding the the range of outcomes in in q2. You talked about, maybe where you can get a little bit more upside um. Can you walk us through through you know? Maybe a full set of assumptions there and, and more importantly, you know when, when there's a base case and you're hinting at a volt case, what what? What is a potential bear case that you would be thinking about in in q2, just given everything that you're seeing going on from a macro perspective, the same question is the last one, but tell us the actual numbers: how we're thinking about um, the visibility that we Have the upside is is quite large, i mean a lot of this comes down to contract timing and the acceleration of events. Uh, there's a fair amount of work.

That's in flight here, our the way that we engage with customers is we're not going to deprive you of help in in your moments of greatest need when you're at war, because paperwork isn't in yet, and so we think the uh. We have visibility into the upside. We're not going to comment on the specifics of it, but it's meaningful um, but it's also hard to predict and what we need to be focused on right now is just delivering not only because of what implies for this is a bs next quarter in this full Year, but what it implies for the long-term growth of the business and the relevance we have to solving the most important problems in the world that yeah but you're halfway through the quarter. How do you not have any sight of what this quarter's revenue is? Looking like turn, the call back over to sean sanchez like this is this is not a correct.

This is not a good idea. Look. We feed our culture every day through the direct exposure that we have to our mission from the factory floors of european manufacturers to the cold, concrete floors that so many refugees are sleeping on in q1, many of our people had the chance to go to poland, romania And little whales are they like repeating? They already said those exact words earlier in the presentation? Did they copy the same bit and we are involved in supporting the military as they execute their sacred duty? Much as we positioned the entire company around covid and delivered outsized impact to global health agencies and health delivery or organizations as we stabilize production and supply chains now we will throw our entire company behind the most significant set of geopolitical and macroeconomic situations in generations. Our company was built for this.

Our software was built for this back to work great, oh man, this is it we're done. We're gon na say: have a voice. Tell us this is this? Is over or or not? No, oh, it's done all right. Let's, let's turn this off: let's stop the screen all right guys, so that was an earning score.

That was a a pretty bad earning score. As far as i'm concerned we're going to digest some of the things they said, they're just some things, they didn't say um. I think i think a couple of things that they're trying this kind of generic readout the slides kind of approach, the end it's called and i think um it's it's really not helping it's not necessary to go and read out the thing that everyone can read in Their own time, or has already read in the hour before anyway, it's not helping because they provided zero like extra information or color. Normally, when, when you go and update sure you mention all the high level numbers you mentioned, hey our revenue was there so profit.

Was this et cetera, but then you provide just a few snippets of extra information. The whole point of the earnings school is to provide information that you haven't already printed or to provide some kind of context, or to explain some of these things to explain some things in like a human way, so that people can understand. Look like we have this particular headwind, or we have this and like that is okay. The problem for me with this particular learning school was that there was very little appreciation for um and trying to explain the background or the rationale, and there is a letter that alex carp has uh has printed.

So let me share this letter with you. Let me just go and share this particular screen with you, uh, where letters shareholders uh, because they published this just as the ma as the call was starting uh like a few minutes before um. So i haven't, haven't read this yet uh. Let's see if it says anything or if this is just more generic mumbo jumbo a company and the world are at an inflection point: okay, not the best start for a you know.

This is a company trying to tell you something about their expected performance, blah blah blah. The movement of history is often discontinuous, and the absence of global conflict is more than half a century has has left any generation or two that remember, total war and global pandemic, and war in europe has now conspired to shatter our collective illusions of stability, perpetual peace. This is this kind of, like fear and juice thing you should invest in us, because the war is coming and the end the world is coming, in which case you probably need to have things other than palantir shares uh, if that, if that was to happen, but Hey, let's keep reading this. This is this is a i don't know.

I don't know what to say about this. The world significantly underestimates the threat of nuclear conflict in eastern europe. I'm not sure. If that's true, if you read the headlines, the understandable desire to intervene must be targeted and strategic balanced against the risk of further escalation.

There is a path to the right outcome in europe, but we must be unrelenting in a focus on increasing both the profitability of a peaceful resolution over the long term, as well as the number of overlapping redundant pathways to watch such a settlement. The war is itself a protracted negotiation with a heavily armed opponent. One must in domestic politics and foreign affairs like inhabit the minor names of anniversary in order to prevail over the long term. So i i do like a lot of what alex carp has built.

I do like uh the business model. They have some of the growth they have shown. You know there's a lot of good things to say. However, the problem for me with this is this is very much sounding like a sort of preaching like i know like nobody else gets this like the governments, don't get it the you regular peasants, don't get it, but i understand the intricacies of war and what it Really means, and what it really means is that palantir has a super bright future.

So for me, i'm reading this, i'm like, oh god, a resistance to complexity in a moral or aesthetic life should make us wary. Theodore dorno rightly remarks skeptical of those who are intolerant of ambiguity, intolerant uh, where such ambiguity is what witching nice thoughts are. Do i need to keep reading? We are a company driven by ideas and an openness to engagement with the others to understanding the opposition. Is a precondition for genuine thoughts and creativity.

We built a company in a premise that the construction of something of consequence requires relentless exposure to unpopular and dissenting opinions, a willingness to engage in honest and open inquiry, but the inherent risks of building new technology is essential. But the genuine discourse in this country has all, but with it and significant power, because so few are either willing to or able to say what they actually think. The most pernicuous consequence of attempts to restrict expression is often the self-imposed restriction, not only in expression but thought itself. Okay, i'm not sure if this is really worth uh.

It's just less. I've skipped a few sections. The most recent effort - expander sales team - continues both in the united states and around the world, but attention persists between the customers, understanding of their needs today and our view of what they need tomorrow. This is horrific.

Let me read this to you again because i just read this and to me this is a significantly negative couple of sentences and i'm going to explain why. Let me read this again, because this is this is maybe one of the most strongly negative things. In my mind about this, our most recent efforts to expand our sales team continues both in the united states and around the world, but attention persists between a customer's understanding of their needs today and our view of what they will need tomorrow. So alex karp is saying: hey we've hired a bunch of sales people, they haven't sold uh any any contracts.

Well, we sold at 37 commercial contracts, the government um, so we sold contracts for the commercial customers, presumably at relatively low initial uh revenue, potentially maybe down the line we're gon na, like the total number of customers is great. We haven't seen anything on what these customers are earning in terms of per like value, contract expectations or anything like that. But the problem for me is this is saying: hey. We know better than our customers what our customers need, so we are so smart and our customers are so dumb that they don't know that, like they don't understand what they need, but we do and - and this is a not the best way in my opinion of Kind of like talking about how you want to work with your customers and how good your customers are understanding their business compared to you uh.

That's that's! That's! That's my take must become a fundamental challenge. It's our instinctive three to solving the hardest problems. Our customers face that sometimes causes us to undervalue what they may need in the short term, we've also historically had what might be characterized as an antagonistic relationship with some of the i.t organizations that exist within our customers. This is changing and must continue to do so.

Ah, the building of such coalitions with internal procurement organizations begun to move from the exception to the rule. We also see further opportunities to decompose our platforms so that an increasingly broader, diverse group of customers using our software have access to specific component products. They need, from the start, a three principal platforms which are gotham, foundry and apollo are compri composed of hundreds of component parts, any one of which we believe could have a market in the thousands or tens of thousands of large enterprises. We like good for a potential tam uh, will be interesting to see uh to see that actually convert into some customer revenues, but let's see we're shifting our approach to expedite the development of these individual products in order to serve even broader sways of the market.

A plan from our plans for apollo are also ambitious. We've built a platform to maintain our own software deployments on continuous basis and with as little human intervention as possible uh. What was once an internal set of tools has grown into a mature and highly differentiated software platform, with the potential to serve entire sectors and industries across the commercial and government markets. Palancy remains a fundamentally creative enterprise uh.

It will remain so as we protect the culture that built it. Our success continues to rely on the recruitment retention of a conventional talent. Our organizational and operational culture remains one of the most differentiated and unique among technology companies in the world today. So again, there's so much patting yourself on the back saying: look.

We are better than everybody we are like like, and i guess you have to have an element of that. Yeah, like you, have an element of arrogance about you as a company in order to like you know, achieve things and genuinely feel like you have the potential to beat everybody else and potential to grow faster, but for me um uh, i'm not i'm, i'm not sure. I am buying into that like the language being used here. Our organizational and operational culture remains one of the most differentiated and unique among technology companies in the world which read we have the opportunity to find and develop the next generation of leaders who think and act like the enterprise owners.

They are a culture depends on trusting downsized productivity of these individuals. Over the long term, we have spent nearly two decades preparing for this moment. This is our time and we intend to seize it. So again, this to be like hey.

We are so happy that, finally, a war has started and everyone is panicking and spending loads of money. This is what we've been waiting for. This is a very positive thing and i'm not necessarily sure that this is the best way to build your business. To kind of like say that you've been waiting for this moment of panic uh for 20 years and finally, finally, a massive war has broken out and that now it's your time to shine but hey uh.

Maybe it's just me um anyway. Let's, let's quit this and let's discuss it uh here we go uh, so i've got some fans in the chat over here uh i'm pumping, apparently i'm gon na block uh some users because uh this is not really helping the conversation this. I don't feel this particular. I think like if you watch what i'm saying, i'm not necessarily sure if i would agree that i am pumping anything because at the moment, over the last i don't know hour or so i've been kind of doing the exact opposite with palence here, despite it being A stock that i actually happen to own and the stock that i'm actually happen to be invested in um.

Unfortunately, unlike many other channels on youtube and many other people and social media and stuff, i will just tell you how it is when i'm seeing a stock and when i'm analyzing the numbers, when i'm looking at the numbers and unfortunately with palantir um the numbers. For me are not uh. Looking particularly good. Pouncey is down 15 at eight dollars and nine cents um.

At the moment the earning score was a disaster and that's a whole separate conversation. I'm gon na make a short video for anyone who wants to watch it when i'm going to be highlighting a bunch of this stuff and trying to tell you kind of a brief summary of how i took the results. But these results for me did not look good and primarily some of the things that didn't look good is there's a slow down in the government, um already they're saying that they expect that maybe in q2, but probably not in q2, but they're now saying maybe in Q3. Q4: one of the last questions.

They said that they're going to be seeing an uptick like a reversal in that you know, government revenue has been slowing down and i'm looking at going well. Okay, that's a very, very loose promise, but you're you're, showing that you're pocketing a bunch of customers and you're saying hey these products, like apollo, can have tens of thousands tens of thousands of customers each. But then, parallel with that, you're also telling me that hey in the last quarter, we got 37 commercial customers onto our platform, and, while i understand that you know like it takes time to market to sell to board the right kind of people to me, it either Indicates that you are incredibly bad at selling the software or more likely that the software is just not uh ready or not, like necessarily like uh good enough for those tens of thousands of businesses today to really require it. For you know, if that is genuinely your tam, your total addressable market, then why are you not selling far more of that software to those people, that'll be my question and that thing at the end is going to say, like that's great, that you're saying all these Things that you have all these huge future potentials - and i genuinely i think that in the long term, if they sort out like how they present information and the transparency elements which uh in the last three quarterly updates have really become a lot worse than they used To be or two two quarterly updates um if they saw that out and they really ramp up the revenues from these new customers and potentially we have something really good on our hands, because you know the price at the moment is tanked so hard that potentially the Value is really there if they overcome these hurdles, but i think that for me, the biggest problem, if i take a step back from the earnings school, if i listen to the way that they did, the presentation - which is just very much a sales pitch - and it Was just especially the pre-prepared answers in between the presentation of the results and the live q a it was just cringe-worthy just like like this is just listening to like to a salesman and and i'm looking at going.

Well. If i take a big step back to me, the biggest warning flag at the moment is like the lack of saying look. There are some headwinds and you know, like every company says like like amd who posted incredible results, talked about some headwinds. They talked about like inter-relating, a new processor and saying hey, like they're, doing a bet, a better job than they're used to and some other stuff.

But you look at you. You look at some other companies, like the fact that you kind of like refuse to acknowledge that there are potential issues or don't really answer the question. There were two separate questions like the two consecutive questions, after which they they just they just kind of like answered a really irrelevant question and then just cut the questions short and stop answering any more questions they refuse to answer. Like they kind of said hey, are you expecting to become profitable end of this year going into new year? You know you're down to minus nine percent.

Like can you tell us a bit more specifics? Can you give us a bit of color on when you might turn profitable and i'm looking at going if you're shirting that kind of question, together with presenting information in the slides, which i think is misleading at best just a position of information to make it sound? Like there's a story where the data from the two charts is fundamentally not the same, like i was talking about on the previous live stream, so i'm gon na go and make a video where i'll highlight and explain all of these things in a bit of detail, I would say uh somewhat disappointing, set of results from parents here in this uh this quarter and that probably is not going to result in very much good news for the share price in the upcoming weeks, where it's dropping even more as minus 15.3 percent. Thank you very much. Everyone for joining this live after i screwed up the last live uh. Hopefully i that that is a lesson learned we're going to be doing a live with five results on wednesday, which may or may not be good uh.

We shall find out, but um speak to you later and watch out for that video later on, with with a brief summary.