Palantir Vauation. After the Q4 2023 Earnings Report

 

Palantir Inc, the data analytics company is overvalued, according to Wolfteam Ltd.'s revenue projections and estimates.

Palantir is the leader in the automation of artificial intelligence, AI automation.

Palantir, with 2.225 billion USD revenue, growing at 16 %, circa 9 % profit margin for 2023 has intrinsic worth of 27 billion USD, compared with Palantir's current market capitalization of 36.37 billion.

Yesterday, after the reporting of the fourth quarter 2023 earnings, Palantir's stock price jumped by approximately 17 % in after hours trading. Which makes Palantir even more overvalued.

It is true that artificial intelligence, AI is changing our world, but AI is currently in a bubble. AI will gradually surpass the current AI valuations, but in a gradual, slower way. We are watching now 'irrational exuberance' with the Magnificent 7 stocks Apple, Microsoft, Alphabet, Amazon, Meta, NVIDIA and AI. 

Palantir is also a poster child of the artificial intelligence, AI boom.

Here is an excerpt from the Q4 2023 Palantir Earnings Report: 

DENVER--(BUSINESS WIRE)-- Palantir Technologies Inc. (NYSE:PLTR) today announced financial results for the fourth quarter and fiscal year ended December 31, 2023.

Q4 2023 Highlights

• GAAP net income of $93 million, representing a 15% margin
  • Fifth consecutive quarter of GAAP profitability
• GAAP income from operations of $66 million, representing an 11% margin
  • Fourth consecutive quarter of GAAP operating profitability
• GAAP earnings per share (“EPS”) of $0.04
• Adjusted EPS of $0.08
• Revenue grew 20% year-over-year and 9% quarter-over-quarter to $608 million
• US commercial highlights
  • US commercial revenue grew 70% year-over-year and 12% quarter-over-quarter to $131 million
  • US commercial customer count grew 55% year-over-year and 22% quarter-over-quarter to 221 customers
  • US commercial total contract value (“TCV”) of $343 million, representing 107% growth year-over-year on a dollar-weighted duration basis
  • US commercial remaining deal value (“RDV”) grew 32% year-over-year and 28% quarter-over-quarter
• Commercial revenue grew 32% year-over-year and 13% quarter-over-quarter to $284 million
• Government revenue grew 11% year-over-year and 5% quarter-over-quarter to $324 million
• Customer count grew 35% year-over-year
• Adjusted income from operations of $209 million, representing a margin of 34%
  • Fifth consecutive quarter of expanding adjusted operating margins
• Cash from operations of $301 million, representing a 50% margin
• Adjusted free cash flow of $305 million, representing a 50% margin
• Cash, cash equivalents, and short-term US treasury securities of $3.7 billion

FY 2023 Highlights

• Revenue grew 17% year-over-year to $2.23 billion
• Commercial revenue grew 20% year-over-year to $1.0 billion
  • US commercial revenue grew 36% year-over-year to $457 million
• Government revenue grew 14% year-over-year to $1.2 billion
• GAAP net income of $210 million, representing a 9% margin
• GAAP income from operations of $120 million, representing a 5% margin
• Cash from operations of $712 million, representing a 32% margin
• Adjusted free cash flow of $731 million, representing a 33% margin
• Adjusted income from operations of $633 million, representing a 28% margin

Q4 and FY 2023 Financial Summary
(Unaudited)
(Amounts in thousands, except percentages and per share amounts)	Fourth Quarter							Full Year 2023
	Amount							Amount
Revenue				$	608,350						$	2,225,012
Year-over-year growth					20	%						17	%
	Amount			Margin				Amount			Margin
Income from Operations	$	65,794			11	%		$	119,966			5	%
Adjusted Income from Operations	$	209,355			34	%		$	632,776			28	%
Cash from Operations	$	301,172			50	%		$	712,183			32	%
Adjusted Free Cash Flow	$	304,752			50	%		$	730,524			33	%
Net Income Attributable to Common Stockholders	$	93,391						$	209,825
Adjusted Net Income Attributable to Common Stockholders	$	189,640						$	571,609
Adjusted EBITDA	$	217,327			36	%		$	666,130			30	%
GAAP EPS, Diluted	$	0.04						$	0.09
Adjusted EPS, Diluted	$	0.08						$	0.25

Outlook

For Q1 2024, we expect:

• Revenue of between $612 - $616 million.
• Adjusted income from operations of $196 - $200 million.

For full year 2024, we expect:

• Revenue of between $2.652 - $2.668 billion.
• US commercial revenue in excess of $640 million, representing a growth rate of at least 40%.
• Adjusted income from operations of $834 - $850 million.
• Adjusted free cash flow of $800 million - $1 billion.
• GAAP operating income in each quarter of this year.
• GAAP net income in each quarter of this year.