Palantir Reports Q4 2024 Revenue Growth of 36% Y/Y, U.S. Revenue Growth of 52% Y/Y; Issues FY 2025 Revenue Guidance of 31% Y/Y Growth, Eviscerating Consensus Estimates

Palantir Technologies Inc. (NASDAQ:PLTR) today announced financial results for the fourth quarter and fiscal year ended December 31, 2024.

“Our business results continue to astound, demonstrating our deepening position at the center of the AI revolution. Our early insights surrounding the commoditization of large language models have evolved from theory to fact,” said Alexander C. Karp, Co-Founder and Chief Executive Officer of Palantir Technologies Inc. “I would also like to congratulate Palantirians for their extraordinary contributions to our growth. They have earned every bit of the compensation from the delivery of their market-vesting stock appreciation rights (SARs).”

Q4 2024 Highlights

• U.S. revenue grew 52% year-over-year and 12% quarter-over-quarter to $558 million
  • U.S. commercial revenue grew 64% year-over-year and 20% quarter-over-quarter to $214 million
  • U.S. government revenue grew 45% year-over-year and 7% quarter-over-quarter to $343 million
• Revenue grew 36% year-over-year and 14% quarter-over-quarter to $828 million
• Closed 129 deals of at least $1 million, 58 deals of at least $5 million, and 32 deals of at least $10 million
• Closed a record-setting $803 million of U.S. commercial total contract value (“TCV”), up 134% year-over-year and 170% quarter-over-quarter
• U.S. commercial remaining deal value (“RDV”) of $1.79 billion, up 99% year-over-year and 47% quarter-over-quarter
• Customer count grew 43% year-over-year and 13% quarter-over-quarter
• Cash from operations of $460 million, representing a 56% margin
• Adjusted free cash flow of $517 million, representing a 63% margin
• GAAP net income of $79 million, representing a 10% margin
  • $165 million of net income when excluding one-time SAR-related expenses, representing a 20% margin
• GAAP income from operations of $11 million, representing a 1% margin
  • $142 million of income from operations when excluding one-time SAR-related expenses, representing a 17% margin
• Adjusted income from operations of $373 million, representing a 45% margin
• Rule of 40 score of 81%
• GAAP earnings per share (“EPS”) of $0.03
  • $0.07 EPS when excluding one-time SAR-related expenses
• Adjusted EPS of $0.14
• Cash, cash equivalents, and short-term U.S. Treasury securities of $5.2 billion

FY 2024 Highlights

• U.S. revenue grew 38% year-over-year to $1.90 billion
  • U.S. commercial revenue grew 54% year-over-year to $702 million
  • U.S. government revenue grew 30% year-over-year to $1.20 billion
• Revenue grew 29% year-over-year to $2.87 billion
• Cash from operations of $1.15 billion, representing a 40% margin
• Adjusted free cash flow of $1.25 billion, representing a 44% margin
• GAAP net income of $462 million, representing a 16% margin
• GAAP income from operations of $310 million, representing an 11% margin
  • $442 million of income from operations when excluding one-time SAR-related expenses, representing a 15% margin
• Adjusted income from operations of $1.13 billion, representing a 39% margin

Q4 and FY 2024 Financial Summary

(Unaudited)

(Amounts in thousands, except percentages and per share amounts)

Fourth Quarter

 

Full Year 2024

Amount

 

Amount

Revenue

 

 

$

827,519

 

 

 

 

$

2,865,507

 

Year-over-year growth

 

 

 

36

%

 

 

 

 

29

%

 

 

 

 

 

 

 

 

 

Amount

 

Margin

 

Amount

 

Margin

Income from Operations

$

11,043

 

 

1

%

 

$

310,403

 

 

11

%

Adjusted Income from Operations

$

372,522

 

 

 

45

%

 

$

1,128,062

 

 

 

39

%

Cash from Operations

$

460,327

 

 

 

56

%

 

$

1,153,865

 

 

 

40

%

Adjusted Free Cash Flow

$

517,385

 

 

 

63

%

 

$

1,249,222

 

 

 

44

%

Net Income Attributable to Common Stockholders

$

79,009

 

 

 

10

%

 

$

462,190

 

 

 

16

%

Adjusted Net Income Attributable to Common Stockholders

$

341,947

 

 

 

 

$

1,001,849

 

 

 

Adjusted EBITDA

$

379,528

 

 

 

46

%

 

$

1,159,649

 

 

 

40

%

GAAP EPS, Diluted

$

0.03

 

 

 

 

$

0.19

 

 

 

Adjusted EPS, Diluted

$

0.14

 

 

 

 

$

0.41

 

 

 

Outlook

For Q1 2025, we expect:

• Revenue of between $858 - $862 million.
• Adjusted income from operations of between $354 - $358 million.

For full year 2025, we expect:

• Revenue of between $3.741 - $3.757 billion.
• U.S. commercial revenue in excess of $1.079 billion, representing a growth rate of at least 54%.
• Adjusted income from operations of between $1.551 - $1.567 billion.
• Adjusted free cash flow of between $1.5 - $1.7 billion.
• GAAP operating income and net income in each quarter of this year.

CEO Letter

Palantir CEO Alex Karp’s annual letter is available through Palantir’s website at https://www.palantir.com/newsroom/letters.

Earnings Webcast

A live public webcast will be held at 3:00 PM MT / 5:00 PM ET today to discuss the results for our fourth quarter and year ended December 31, 2024 and financial outlook. The webcast can be accessed by registering online at https://palantir.events/palantirearnings-q42024. A replay of the webcast will be available at https://investors.palantir.com following the event.

An investor presentation, including supplemental financial information and reconciliations of certain non-GAAP measures to their nearest comparable GAAP measures, will be available through Palantir’s Investor Relations website at https://investors.palantir.com.

Forward-Looking Statements

This press release and statements on our earnings webcast contain “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy and plans (including strategy and plans relating to our Artificial Intelligence Platform (“AIP”), sales and marketing efforts, sales force, partnerships, and customers), investments in our business, market trends and market size, opportunities (including growth opportunities), our expectations regarding our existing and potential investments in, and commercial contracts with, various entities, our expectations regarding macroeconomic events, our expectations regarding our share repurchase program, and positioning. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts, and projections as well as the beliefs and assumptions of management. Words such as “guidance,” “expect,” “anticipate,” “should,” “believe,” “hope,” “target,” “project,” “plan,” “goals,” “estimate,” “potential,” “predict,” “may,” “will,” “might,” “could,” “intend,” “shall,” and variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the “SEC”), including in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024 and other filings and reports that we may file from time to time with the SEC, including our Annual Report on Form 10-K for the fiscal year ended December 31, 2024. In particular, the following factors, among others, could cause our results to differ materially from those expressed or implied by such forward-looking statements: our ability to successfully execute our business and growth strategy; the sufficiency of our available funds to meet our liquidity needs; the demand for our platforms, product offerings, and services in general; our ability to increase our number of new customers and revenue generated from customers; our ability to realize some or all of the total contract value of customer contracts as revenue, including any contractual options available to customers or contractual periods that are subject to termination for convenience provisions; our long and unpredictable sales cycle; our ability to successfully execute our channel sales and other strategic initiatives with third parties; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the implementation process for our platforms, which may be complex and lengthy; our ability to successfully develop and deploy new technologies to address the needs of our existing or prospective customers; our ability to make our platforms and product offerings easier to install, consume, and use; our ability to maintain and enhance our brand and reputation; our ability to maintain and enhance our culture as our business grows and as we pursue our business and financial goals; news or social media coverage about us or our leadership, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; the impact of recent or future global macroeconomic and geopolitical events, such as the Russia-Ukraine and Israel conflicts, heightened interest rates, monetary policy changes, or foreign currency fluctuations, on the business and operations of our company or of our existing or prospective customers and partners; issues raised by the use of artificial intelligence in our platforms; and any breach or access to our or customer or third-party data.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. Past performance is not necessarily indicative of future results.

Additional Definitions

For the purpose of this press release, our earnings webcast, and our CEO’s letter:

• Total contract value (“TCV”) is the total potential lifetime value of contracts entered into with, or awarded by, our customers at the time of contract execution, annual contract value (“ACV”) is defined as the total value of contracts closed in the period divided by the dollar-weighted average contract duration of those same contracts, and remaining deal value (“RDV”) is the total remaining value of contracts as of the end of the reporting period. Except as noted below, TCV, ACV, and RDV each presume the exercise of all contract options available to our customers and no termination of contracts. However, the majority of our contracts are subject to termination provisions, including for convenience, and there can be no guarantee that contracts are not terminated or that contract options will be exercised. Further, RDV may exclude all or some portion of the value of certain commercial contracts as a result of our ongoing assessments of customers’ financial condition, including the consideration of such customers’ ability and intention to pay, and whether such contracts continue to meet the criteria for revenue recognition, among other factors.
• Remaining performance obligations (“RPO”) reflect the total values of contracts that have been entered into with, or awarded by, our customers, and represent non-cancelable contracted revenue that has not yet been recognized, which includes deferred revenue and, in certain instances, amounts that will be invoiced. We have elected the practical expedient, as permitted under Accounting Standards Codification 606—Revenue from Contracts with Customers, to not disclose remaining performance obligations for contracts with original terms of twelve months or less.
• The term “strategic commercial contracts” is as defined in our quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2024.
• “Dollar-weighted duration basis” is the total value of contracts closed in the applicable period, divided by the dollar-weighted average contract duration of those same contracts.
• The term “Rule of 40” refers to the sum of our revenue growth rate year-over-year and our adjusted operating margin for each of the periods presented.

Non-GAAP Financial Measures

This press release and the accompanying tables, as well as our earnings webcast, and our CEO’s letter, contain the non-GAAP financial measures adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes; adjusted operating margin; income from operations when excluding one-time SAR-related expenses, which excludes the one-time accelerated stock-based compensation expense and employer payroll taxes related to our Market-Vesting SARs; operating margin when excluding one-time SAR-related expenses; adjusted free cash flow; adjusted free cash flow margin; adjusted earnings before interest, taxes, depreciation, and amortization (“adjusted EBITDA”); adjusted EBITDA margin; adjusted net income attributable to common stockholders; net income when excluding one-time SAR-related expenses, which excludes the one-time accelerated stock-based compensation expense, employer payroll taxes, and income tax effects and adjustments related to our Market-Vesting SARs; EPS when excluding one-time SAR-related expenses, diluted; and adjusted EPS, diluted. Market-Vesting SARs are discussed further in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2024.

We believe these non-GAAP financial measures and other metrics described in this press release help us evaluate our business, identify trends affecting Palantir’s business, formulate business plans and financial projections, and make strategic decisions. We exclude stock-based compensation, which is a non-cash expense, from these non-GAAP financial measures because we believe that excluding this item provides meaningful supplemental information regarding operational performance and provides useful information to investors and others in understanding and evaluating our operating results in the same manner as our management team. We exclude employer payroll taxes related to stock-based compensation as it is difficult to predict and outside of Palantir’s control. During the year and quarter ended December 31, 2024, we also excluded the one-time accelerated stock-based compensation expense and employer payroll taxes related to our Market-Vesting SARs as each is associated with the early acceleration of such Market-Vesting SARs upon achievement of the market condition of such awards. At the time of grant, the achievement of the market condition of the Market-Vesting SARs was difficult to predict and dependent on future events that were uncertain and were not within our control. We believe separate presentation of SARs-adjusted income from operations provides useful information regarding the impacts of our Market-Vesting SARs.

Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations as they do not include the impact of certain expenses that are reflected in our consolidated statements of operations. For example, adjusted free cash flow does not reflect our future contractual commitments or the total increase or decrease in our cash balances for a given period. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP.

We compensate for these limitations by providing a reconciliation of each of these non-GAAP measures to the most comparable GAAP measure. We encourage investors and others to review our business, results of operations, and financial information in their entirety, not to rely on any single financial measure, and to view these non-GAAP measures in conjunction with the most directly comparable GAAP financial measure.

A reconciliation table of the most comparable GAAP financial measure to each non-GAAP financial measure used in this press release is included at the end of this release. A reconciliation of non-GAAP guidance measures to corresponding GAAP measures is not available on a forward-looking basis without unreasonable effort due to the uncertainty regarding, and the potential variability of, reconciling items that may be incurred in the future, such as stock-based compensation and related employer payroll taxes, the effect of which may be significant.

Available Information

Palantir uses its Investor Relations website at https://investors.palantir.com as a means of disclosing material non-public information and for complying with its disclosure obligations under Regulation FD. Accordingly, investors should monitor Palantir’s Investor Relations website, in addition to following our press releases, SEC filings, public conference calls, and webcasts.

About Palantir Technologies Inc.

Foundational software of tomorrow. Delivered today. Additional information is available at https://www.palantir.com.

Palantir Technologies Inc.

Condensed Consolidated Statements of Operations

(in thousands, except per share amounts)

(unaudited)

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

827,519

 

 

$

608,350

 

 

$

2,865,507

 

 

$

2,225,012

 

Cost of revenue (1)

 

174,533

 

 

 

108,639

 

 

 

565,990

 

 

 

431,105

 

Gross profit

 

652,986

 

 

 

499,711

 

 

 

2,299,517

 

 

 

1,793,907

 

Operating expenses:

 

 

 

 

 

 

 

Sales and marketing (1)

 

288,295

 

 

 

197,363

 

 

 

887,755

 

 

 

744,992

 

Research and development (1)

 

171,502

 

 

 

109,283

 

 

 

507,878

 

 

 

404,624

 

General and administrative (1)

 

182,146

 

 

 

127,271

 

 

 

593,481

 

 

 

524,325

 

Total operating expenses

 

641,943

 

 

 

433,917

 

 

 

1,989,114

 

 

 

1,673,941

 

Income from operations

 

11,043

 

 

 

65,794

 

 

 

310,403

 

 

 

119,966

 

Interest income

 

54,727

 

 

 

44,545

 

 

 

196,792

 

 

 

132,572

 

Other income (expense), net

 

14,768

 

 

 

(4,092

)

 

 

(18,022

)

 

 

(15,447

)

Income before provision for income taxes

 

80,538

 

 

 

106,247

 

 

 

489,173

 

 

 

237,091

 

Provision for income taxes

 

3,602

 

 

 

9,334

 

 

 

21,255

 

 

 

19,716

 

Net income

$

76,936

 

 

$

96,913

 

 

$

467,918

 

 

$

217,375

 

Less: Net income (loss) attributable to noncontrolling interests

 

(2,073

)

 

 

3,522

 

 

 

5,728

 

 

 

7,550

 

Net income attributable to common stockholders

$

79,009

 

 

$

93,391

 

 

$

462,190

 

 

$

209,825

 

Earnings per share attributable to common stockholders, basic

$

0.03

 

 

$

0.04

 

 

$

0.21

 

 

$

0.10

 

Earnings per share attributable to common stockholders, diluted

$

0.03

 

 

$

0.04

 

 

$

0.19

 

 

$

0.09

 

Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, basic

 

2,304,883

 

 

 

2,187,214

 

 

 

2,250,163

 

 

 

2,147,446

 

Weighted-average shares of common stock outstanding used in computing earnings per share attributable to common stockholders, diluted

 

2,528,279

 

 

 

2,357,742

 

 

 

2,450,818

 

 

 

2,297,927

 

 



(1)

Includes stock-based compensation expense as follows (in thousands):

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Cost of revenue

$

33,124

 

$

11,000

 

$

69,065

 

$

35,995

Sales and marketing

 

97,953

 

 

 

43,689

 

 

 

239,121

 

 

 

160,645

 

Research and development

 

77,533

 

 

 

32,996

 

 

 

165,065

 

 

 

98,064

 

General and administrative

 

73,188

 

 

 

44,923

 

 

 

218,387

 

 

 

181,199

 

Total stock-based compensation

$

281,798

 

 

$

132,608

 

 

$

691,638

 

 

$

475,903

 

Palantir Technologies Inc.

Condensed Consolidated Balance Sheets

(in thousands)

(unaudited)

 

As of December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

2,098,524

 

 

$

831,047

 

Marketable securities

 

3,131,463

 

 

 

2,843,132

 

Accounts receivable, net

 

575,048

 

 

 

364,784

 

Prepaid expenses and other current assets

 

129,254

 

 

 

99,655

 

Total current assets

 

5,934,289

 

 

 

4,138,618

 

Property and equipment, net

 

39,638

 

 

 

47,758

 

Operating lease right-of-use assets

 

200,740

 

 

 

182,863

 

Other assets

 

166,217

 

 

 

153,186

 

Total assets

$

6,340,884

 

 

$

4,522,425

 

Liabilities and Equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

103

 

 

$

12,122

 

Accrued liabilities

 

427,046

 

 

 

222,991

 

Deferred revenue

 

259,624

 

 

 

246,901

 

Customer deposits

 

265,252

 

 

 

209,828

 

Operating lease liabilities

 

43,993

 

 

 

54,176

 

Total current liabilities

 

996,018

 

 

 

746,018

 

Deferred revenue, noncurrent

 

39,885

 

 

 

28,047

 

Customer deposits, noncurrent

 

1,663

 

 

 

1,477

 

Operating lease liabilities, noncurrent

 

195,226

 

 

 

175,216

 

Other noncurrent liabilities

 

13,685

 

 

 

10,702

 

Total liabilities

 

1,246,477

 

 

 

961,460

 

Stockholders’ equity:

 

 

 

Common stock

 

2,339

 

 

 

2,200

 

Additional paid-in capital

 

10,193,970

 

 

 

9,122,173

 

Accumulated other comprehensive income (loss), net

 

(5,611

)

 

 

801

 

Accumulated deficit

 

(5,187,423

)

 

 

(5,649,613

)

Total stockholders’ equity

 

5,003,275

 

 

 

3,475,561

 

Noncontrolling interests

 

91,132

 

 

 

85,404

 

Total equity

 

5,094,407

 

 

 

3,560,965

 

Total liabilities and equity

$

6,340,884

 

 

$

4,522,425

 

Palantir Technologies Inc.

Condensed Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

Years Ended December 31,

 

 

2024

 

 

 

2023

 

Operating activities

 

 

 

Net income

$

467,918

 

 

$

217,375

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

Depreciation and amortization

 

31,587

 

 

 

33,354

 

Stock-based compensation

 

691,638

 

 

 

475,903

 

Noncash operating lease expense

 

41,239

 

 

 

47,019

 

Unrealized and realized (gain) loss from marketable securities, net

 

19,306

 

 

 

13,160

 

Noncash consideration

 

(52,521

)

 

 

(46,609

)

Other operating activities

 

24,795

 

 

 

(34,255

)

Changes in operating assets and liabilities:

 

 

 

Accounts receivable, net

 

(211,157

)

 

 

(106,159

)

Prepaid expenses and other current assets

 

7,202

 

 

 

(6,197

)

Other assets

 

4,681

 

 

 

3,242

 

Accounts payable

 

(18,841

)

 

 

(31,832

)

Accrued liabilities

 

115,634

 

 

 

52,895

 

Deferred revenue, current and noncurrent

 

22,356

 

 

 

79,512

 

Customer deposits, current and noncurrent

 

54,440

 

 

 

64,347

 

Operating lease liabilities, current and noncurrent

 

(48,966

)

 

 

(49,630

)

Other noncurrent liabilities

 

4,554

 

 

 

58

 

Net cash provided by operating activities

 

1,153,865

 

 

 

712,183

 

Investing activities

 

 

 

Purchases of property and equipment

 

(12,634

)

 

 

(15,114

)

Purchases of marketable securities

 

(5,395,913

)

 

 

(5,636,406

)

Proceeds from sales and redemption of marketable securities

 

5,073,507

 

 

 

2,889,268

 

Other investing activities

 

(5,615

)

 

 

51,072

 

Net cash used in investing activities

 

(340,655

)

 

 

(2,711,180

)

Financing activities

 

 

 

Proceeds from the exercise of common stock options

 

745,396

 

 

 

218,238

 

Repurchases of common stock

 

(64,196

)

 

 

—

 

Taxes paid related to net share settlement of equity

 

(218,280

)

 

 

—

 

Other financing activities

 

444

 

 

 

601

 

Net cash provided by financing activities

 

463,364

 

 

 

218,839

 

Effect of foreign exchange on cash, cash equivalents, and restricted cash

 

(6,745

)

 

 

2,930

 

Net increase (decrease) in cash, cash equivalents, and restricted cash

 

1,269,829

 

 

 

(1,777,228

)

Cash, cash equivalents, and restricted cash - beginning of period

 

850,107

 

 

 

2,627,335

 

Cash, cash equivalents, and restricted cash - end of period

$

2,119,936

 

 

$

850,107

 

Palantir Technologies Inc.

Reconciliation of GAAP to Non-GAAP Financial Measures

(unaudited)

Non-GAAP Reconciliations

Adjusted Income from Operations and Adjusted Operating Margin (in thousands, except percentages)

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Income from operations

$

11,043

 

 

$

65,794

 

 

$

310,403

 

 

$

119,966

 

Add: stock-based compensation

 

281,798

 

 

 

132,608

 

 

 

691,638

 

 

 

475,903

 

Add: employer payroll taxes related to stock-based compensation

 

79,681

 

 

 

10,953

 

 

 

126,021

 

 

 

36,907

 

Adjusted income from operations

$

372,522

 

 

$

209,355

 

 

$

1,128,062

 

 

$

632,776

 

Adjusted operating margin

 

45

%

 

 

34

%

 

 

39

%

 

 

28

%

Income from Operations When Excluding One-Time SAR-Related Expenses and Operating Margin When Excluding One-Time SAR-Related Expenses (in thousands, except percentages

 

Three Months Ended December 31, 2024

 

Years Ended December 31, 2024

Income from operations

$

                      11,043

 

 

$

                    310,403

 

Add: accelerated stock-based compensation expense related to Market-Vesting SARs

 

                      115,776

 

 

 

                      115,776

 

Add: employer payroll taxes related to Market-Vesting SARs

 

                        15,528

 

 

 

                        15,528

 

Income from operations when excluding one-time SAR-related expenses

$

                    142,347

 

 

$

                    441,707

 

Operating margin when excluding one-time SAR-related expenses

 

17

%

 

 

15

%

Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin (in thousands, except percentages)

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net cash provided by operating activities

$

460,327

 

 

$

301,172

 

 

$

1,153,865

 

 

$

712,183

 

Add: cash paid for employer payroll taxes related to stock-based compensation

 

60,164

 

 

 

8,440

 

 

 

107,991

 

 

 

33,455

 

Less: purchases of property and equipment

 

(3,106

)

 

 

(4,860

)

 

 

(12,634

)

 

 

(15,114

)

Adjusted free cash flow

$

517,385

 

 

$

304,752

 

 

$

1,249,222

 

 

$

730,524

 

Adjusted free cash flow margin

 

63

%

 

 

50

%

 

 

44

%

 

 

33

%

Adjusted EBITDA and Adjusted EBITDA Margin (in thousands, except percentages)

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income attributable to common stockholders

$

79,009

 

 

$

93,391

 

 

$

462,190

 

 

$

209,825

 

Add: net income (loss) attributable to noncontrolling interests

 

(2,073

)

 

 

3,522

 

 

 

5,728

 

 

 

7,550

 

Less: interest income

 

(54,727

)

 

 

(44,545

)

 

 

(196,792

)

 

 

(132,572

)

Add: other (income) expense, net

 

(14,768

)

 

 

4,092

 

 

 

18,022

 

 

 

15,447

 

Add: provision for income taxes

 

3,602

 

 

 

9,334

 

 

 

21,255

 

 

 

19,716

 

Add: depreciation and amortization

 

7,006

 

 

 

7,972

 

 

 

31,587

 

 

 

33,354

 

Add: stock-based compensation

 

281,798

 

 

 

132,608

 

 

 

691,638

 

 

 

475,903

 

Add: employer payroll taxes related to stock-based compensation

 

79,681

 

 

 

10,953

 

 

 

126,021

 

 

 

36,907

 

Adjusted EBITDA

$

379,528

 

 

$

217,327

 

 

$

1,159,649

 

 

$

666,130

 

Adjusted EBITDA margin

 

46

%

 

 

36

%

 

 

40

%

 

 

30

%

Adjusted Net Income and Adjusted Earnings Per Share, Diluted (in thousands, except per share amounts and percentages)

 

Three Months Ended

December 31,

 

Years Ended

December 31,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Net income attributable to common stockholders

$

79,009

 

 

$

93,391

 

 

$

462,190

 

 

$

209,825

 

Add: stock-based compensation

 

281,798

 

 

 

132,608

 

 

 

691,638

 

 

 

475,903

 

Add: employer payroll taxes related to stock-based compensation

 

79,681

 

 

 

10,953

 

 

 

126,021

 

 

 

36,907

 

Less: income tax effects and adjustments (1)

 

(98,541

)

 

 

(47,312

)

 

 

(278,000

)

 

 

(151,026

)

Adjusted net income attributable to common stockholders, diluted

$

341,947

 

 

$

189,640

 

 

$

1,001,849

 

 

$

571,609

 

Adjusted weighted-average shares used in computing adjusted earnings per share, diluted

 

2,528,279

 

 

 

2,357,741

 

 

 

2,450,818

 

 

 

2,297,928

 

Adjusted earnings per share, diluted

$

0.14

 

 

$

0.08

 

 

$

0.41

 

 

$

0.25

 

(1)

 

Income tax effect is based on long-term estimated annual effective tax rates of 23.0% for the periods ended 2024 and 2023.

Net Income When Excluding One-Time SAR-Related Expenses and Earnings Per Share When Excluding One-Time SAR-Related Expenses, Diluted (in thousands, except per share amounts and percentages)

 

Three Months Ended

December 31, 2024

Net income attributable to common stockholders

$

79,009

 

Add: accelerated stock-based compensation expense related to Market-Vesting SARs

 

115,776

 

Add: employer payroll taxes related to Market-Vesting SARs

 

15,528

 

Less: income tax effects and adjustments related to Market-Vesting SARs (1)

 

(45,599

)

Net income when excluding one-time SAR-related expenses

$

164,714

 

Net income when excluding one-time SAR-related expenses margin

20

%

Adjusted weighted-average shares used in computing earnings per share when excluding one-time SAR-related expenses, diluted

 

2,528,279

 

Earnings per share when excluding one-time SAR-related expenses, diluted

$

0.07

 

(1)

 

Income tax effect is based on long-term estimated annual effective tax rates of 23.0% for the period ended 2024.

 

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