Palantir Technologies Inc
For the period ended Sep 30, 2024. Filed Nov 5, 2024.
View on SEC.govAbout this filing
A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Sep 30, 2024 · Filed Nov 5, 2024
PLTR$160.38+3.5%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-06-30; filed 2024-08-06.
0001321655-24-000135
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2024-09-30; filed 2024-11-05.
0001321655-24-000209
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 143 previous paragraphs and 144 current paragraphs.
104 unchanged; 34 reworded; 5 added; 5 removed; 0 previous and 1 current paragraphs rearranged.
Tables are not compared: 13 previous and 13 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (5)
Current report
Our gross margin for the three months ended September 30, 2024 decreased from 81% for the same period in 2023 to 80% as a result of the growth of cost of revenue slightly outpacing revenue growth.
Current report
Sales and marketing expenses increased by $33.1 million, or 19%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $16.4 million in stock-based compensation and related expenses and $7.2 million in payroll and other payroll-related costs.
Current report
Research and development expenses increased by $11.8 million, or 11%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to an increase of $11.0 million in stock-based compensation and related expenses.
Current report
Research and development expenses increased by $41.0 million, or 14%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $27.5 million in stock-based compensation and related expenses and $12.5 million in third-party cloud hosting services.
Current report
General and administrative expenses increased by $10.5 million, or 8%, for the three months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $5.5 million in stock-based compensation and related expenses and $5.1 million in travel costs.
Removed paragraphs (5)
Previous report
Our gross margin for the six months ended June 30, 2024 increased to 81% from 80% for the same period in 2023 as a result of revenue growth outpacing costs of revenue. This growth rate variation was primarily due to the decreases in field service representatives and hardware costs in costs of revenue relative to total expense growth as compared to the prior year.
Previous report
Sales and marketing expenses increased by $12.6 million, or 7%, for the three months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $6.9 million in third-party cloud hosting services and $7.7 million in stock-based compensation and related expenses.
Previous report
Sales and marketing expenses increased by $18.7 million, or 5%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $15.2 million in stock-based compensation and related expenses and $6.1 million in third-party cloud hosting services.
Previous report
Research and development expenses increased by $29.2 million, or 15%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $16.5 million in stock-based compensation and related expenses and $8.6 million in third-party cloud hosting services.
Previous report
General and administrative expenses increased by $6.0 million, or 5%, for the three months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to an increase of $6.0 million in stock-based compensation and related expenses.
Reworded paragraphs (34)
Previous wording
We have built four principal software platforms, Gotham, Foundry, Apollo, and our Artificial Intelligence Platform (“AIP”). Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of our existing machine learning technologies alongside generative AI models, including large language models (“LLMs”), directly within Gotham and/or Foundry to help operationalize AI on enterprise data. For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond. Foundry is becoming a central operating system not only for individual institutions but also for entire industries. Apollo, which we began offering as a commercial solution in 2021, is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Apollo allows our customers to run their software in virtually any environment.
Current wording
For over a decade, Gotham has surfaced insights for global defense agencies, the intelligence community, disaster relief organizations and beyond. Foundry is becoming a central operating system not only for individual institutions but also for entire industries. Apollo, which we began offering as a commercial solution in 2021, is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Apollo allows our customers to run their software in virtually any environment.
Previous wording
For the three months ended June 30, 2024, we generated $678.1 million in revenue, reflecting a 27% growth rate from the three months ended June 30, 2023 when we generated $533.3 million in revenue. For the six months ended June 30, 2024, we generated $1.3 billion in revenue, reflecting a 24% growth rate from the six months ended June 30, 2023 when we generated $1.1 billion in revenue.
Current wording
For the three months ended September 30, 2024, we generated $725.5 million in revenue, reflecting a 30% growth rate from the three months ended September 30, 2023, when we generated $558.2 million in revenue. For the nine months ended September 30, 2024, we generated $2.0 billion in revenue, reflecting a 26% growth rate from the nine months ended September 30, 2023, when we generated $1.6 billion in revenue.
Previous wording
In the three months ended June 30, 2024, we generated income from operations of $105.3 million, or adjusted income from operations of $253.6 million when excluding stock-based compensation and related employer payroll taxes. In the three months ended June 30, 2023, we generated income from operations of $10.1 million, or adjusted income from operations of $135.0 million when excluding stock-based compensation and related employer payroll taxes. In the six months ended June 30, 2024, we generated income from operations of $186.2 million, or adjusted income from operations of $480.0 million when excluding stock-based compensation and related employer payroll taxes. In the six months ended June 30, 2023, we generated income from operations of $14.2 million, or adjusted income from operations of $260.1 million when excluding stock-based compensation and related employer payroll taxes.
Current wording
In the three months ended September 30, 2024, we generated income from operations of $113.1 million, or adjusted income from operations of $275.5 million when excluding stock-based compensation and related employer payroll taxes. In the three months ended September 30, 2023, we generated income from operations of $40.0 million, or adjusted income from operations of $163.3 million when excluding stock-based compensation and related employer payroll taxes. In the nine months ended September 30, 2024, we generated income from operations of $299.4 million, or adjusted income from operations of $755.5 million when excluding stock-based compensation and related employer payroll taxes. In the nine months ended September 30, 2023, we generated income from operations of $54.2 million, or adjusted income from operations of $423.4 million when excluding stock-based compensation and related employer payroll taxes.
Previous wording
In the three months ended June 30, 2024, our gross profit was $549.6 million, reflecting a gross margin of 81%, or 83% when excluding stock-based compensation. In the three months ended June 30, 2023, our gross profit was $426.4 million, reflecting a gross margin of 80%, or 81% when excluding stock-based compensation. In the six months ended June 30, 2024, our gross profit was $1.1 billion, reflecting a gross margin of 81%, or 83% when excluding stock-based compensation. In the six months ended June 30, 2023, our gross profit was $844.0 million, reflecting a gross margin of 80%, or 81% when excluding stock-based compensation.
Current wording
In the three months ended September 30, 2024, our gross profit was $578.9 million, reflecting a gross margin of 80%, or 82% when excluding stock-based compensation. In the three months ended September 30, 2023, our gross profit was $450.2 million, reflecting a gross margin of 81%, or 82% when excluding stock-based compensation. In the nine months ended September 30, 2024, our gross profit was $1.6 billion, reflecting a gross margin of 81%, or 83% when excluding stock-based compensation. In the nine months ended September 30, 2023, our gross profit was $1.3 billion, reflecting a gross margin of 80%, or 82% when excluding stock-based compensation.
Previous wording
We define a customer as an organization from which we have recognized revenue during the trailing twelve-month period. During the period ended June 30, 2024, we had 593 customers, including companies in various commercial sectors and government agencies around the world. During the period ended June 30, 2023, we had 421 customers.
Current wording
We define a customer as an organization from which we have recognized revenue during the trailing twelve-month period. During the period ended September 30, 2024, we had 629 customers, including companies in various commercial sectors and government agencies around the world. During the period ended September 30, 2023, we had 453 customers.
Previous wording
We have built lasting and significant customer relationships and partnerships with some of the world’s leading government institutions and companies. Our average revenue for the top twenty customers during the trailing twelve months ended June 30, 2024 was $57.3 million, which grew 9% from an average of $52.6 million in revenue from the top twenty customers during the trailing twelve months ended June 30, 2023, demonstrating our expanding relationships with existing customers.
Current wording
We have built lasting and significant customer relationships and partnerships with some of the world’s leading government institutions and companies. Our average revenue for the top twenty customers during the trailing twelve months ended September 30, 2024 was $60.1 million, which grew 12% from an average of $53.7 million in revenue from the top twenty customers during the trailing twelve months ended September 30, 2023, demonstrating our expanding relationships with existing customers.
Previous wording
Organizations in the commercial and government sectors face similar challenges when it comes to managing data, and we intend to expand our reach in both markets moving forward. Our decisions about which customer relationships require further investment may change over time, based on our assessment of the potential long-term value that our software can generate for them. We conduct pilots and bootcamps with customers, generally at our own expense and without a guarantee of future returns, in order to access a unique set of opportunities that others may pass over for lack of resources and shorter investment horizons. We manage customers at the account level, not by industry or sector, so that we can optimize on the specific growth opportunities for each customer. In the six months ended June 30, 2024, 54% of our revenue came from government customers and 46% came from commercial customers.
Current wording
Organizations in the commercial and government sectors face similar challenges when it comes to managing data, and we intend to expand our reach in both markets moving forward. Our decisions about which customer relationships require further investment may change over time, based on our assessment of the potential long-term value that our software can generate for them. We conduct pilots and bootcamps with customers, generally at our own expense and without a guarantee of future returns, in order to access a unique set of opportunities that others may pass over for lack of resources and shorter investment horizons. We manage customers at the account level, not by industry or sector, so that we can optimize on the specific growth opportunities for each customer. In the nine months ended September 30, 2024, 55% of our revenue came from government customers and 45% came from commercial customers.
Previous wording
Our U.S. customers have been a meaningful source of revenue growth for our business. In the six months ended June 30, 2024, we generated 64% of our revenue from customers in the United States and the remaining 36% from non-U.S. customers. Revenue from our U.S. customers during the trailing twelve months ended June 30, 2024 was $1.6 billion, which grew 23% from the prior twelve-month period. We expect that U.S. customers will continue to be a source of significant revenue growth for us.
Current wording
Our U.S. customers have been a meaningful source of revenue growth for our business. In the nine months ended September 30, 2024, we generated 66% of our revenue from customers in the United States and the remaining 34% from non-U.S. customers. Revenue from our U.S. customers during the trailing twelve months ended September 30, 2024 was $1.7 billion, which grew 30% from the prior twelve-month period. We expect that U.S. customers will continue to be a source of significant revenue growth for us.
Previous wording
Our contracts with customers and vendors are primarily denominated in U.S. dollars. However, the general strengthening of the U.S. dollar relative to other major foreign currencies (primarily the Euro and British pound sterling (“GBP”)) has had, and could in the future have, an unfavorable impact on our revenues and expenses from certain non-U.S. customers or vendors whose contracts are denominated in currencies other than U.S. dollars. Additionally, certain of our U.S. and non-U.S. subsidiaries may hold monetary assets and liabilities in currencies other than their functional currency (primarily the Japanese Yen (“JPY”), Euro, and GBP), which could subject our results of operations and cash flows to adverse fluctuations due to changes in such foreign currency exchange rates as compared to the U.S. dollar. For the six months ended June 30, 2024 such impacts were not material to our financial position or results of operations.
Current wording
Our contracts with customers and vendors are primarily denominated in U.S. dollars. However, the general strengthening of the U.S. dollar relative to other major foreign currencies (primarily the Euro and British pound sterling (“GBP”)) has had, and could in the future have, an unfavorable impact on our revenues and expenses from certain non-U.S. customers or vendors whose contracts are denominated in currencies other than U.S. dollars. Additionally, certain of our U.S. and non-U.S. subsidiaries may hold monetary assets and liabilities in currencies other than their functional currency (primarily the Japanese Yen (“JPY”), Euro, and GBP), which could subject our results of operations and cash flows to adverse fluctuations due to changes in such foreign currency exchange rates as compared to the U.S. dollar. For the nine months ended September 30, 2024 such impacts were not material to our financial position or results of operations.
Previous wording
The following table provides a reconciliation of contribution margin for the three and six months ended June 30, 2024 and 2023 (in thousands, except percentages):
Current wording
The following table provides a reconciliation of contribution margin for the three and nine months ended September 30, 2024 and 2023 (in thousands, except percentages):
Previous wording
The following table provides a reconciliation of gross profit and gross margin, excluding stock-based compensation for the three and six months ended June 30, 2024 and 2023 (in thousands, except percentages):
Current wording
The following table provides a reconciliation of gross profit and gross margin, excluding stock-based compensation for the three and nine months ended September 30, 2024 and 2023 (in thousands, except percentages):
Previous wording
The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the three and six months ended June 30, 2024 and 2023 (in thousands):
Current wording
The following table provides a reconciliation of adjusted income from operations, which excludes stock-based compensation and related employer payroll taxes for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Previous wording
Comparison of the Three and Six Months Ended June 30, 2024 and 2023
Current wording
Comparison of the Three and Nine Months Ended Months Ended September 30, 2024 and 2023
Previous wording
Revenue increased by $144.8 million, or 27%, for the three months ended June 30, 2024 compared to the same period in 2023. Revenue from government customers increased by $69.3 million, or 23%, for the three months ended June 30, 2024 compared to the same period in 2023. Of the increase, $58.5 million was from government customers existing as of December 31, 2023. Revenue from U.S. government customers was $278.0 million for the three months ended June 30, 2024 compared to $225.0 million for the same period in 2023. Revenue from commercial customers increased by $75.6 million, or 33%, for the three months ended June 30, 2024 compared to the same period in 2023. Of the increase, $56.8 million was from commercial customers existing as of December 31, 2023, including a decrease of $10.2 million of revenue from Strategic Commercial Contracts. Revenue from U.S. commercial customers was $159.2 million for the three months ended June 30, 2024 compared to $103.0 million for the same period in 2023, a 55% increase.
Current wording
Revenue increased by $167.4 million, or 30%, for the three months ended September 30, 2024 compared to the same period in 2023. Revenue from government customers increased by $100.7 million, or 33%, for the three months ended September 30, 2024 compared to the same period in 2023. Of the increase, $74.9 million was from government customers existing as of December 31, 2023. Revenue from U.S. government customers was $319.8 million for the three months ended September 30, 2024 compared to $229.2 million for the same period in 2023. Revenue from commercial customers increased by $66.6 million or 27%, for the three months ended September 30, 2024 compared to the same period in 2023. Of the increase, $47.9 million was from commercial customers existing as of December 31, 2023, including a decrease of $5.0 million of revenue from Strategic Commercial Contracts. Revenue from U.S. commercial customers was $179.2 million for the three months ended September 30, 2024 compared to $116.3 million for the same period in 2023, a 54% increase.
Previous wording
Revenue increased by $254.0 million, or 24%, for the six months ended June 30, 2024 compared to the same period in 2023. Revenue from government customers increased by $115.6 million, or 20%, for the six months ended June 30, 2024 compared to the same period in 2023. Of the increase, $100.4 million was from government customers existing as of December 31, 2023. Revenue from U.S. government customers was $534.7 million for the six months ended June 30, 2024 compared to $454.8 million for the same period in 2023. Revenue from commercial customers increased by $138.4 million, or 30%, for the six months ended June 30, 2024 compared to the same period in 2023. Of the increase, $106.2 million was from commercial customers existing as of December 31, 2023, including a decrease of $19.7 million of revenue from Strategic Commercial Contracts. Revenue from U.S. commercial customers was $308.9 million for the six months ended June 30, 2024 compared to $210.1 million for the same period in 2023, a 47% increase.
Current wording
Revenue increased by $421.3 million, or 26%, for the nine months ended September 30, 2024 compared to the same period in 2023. Revenue from government customers increased by $216.3 million, or 24%, for the nine months ended September 30, 2024 compared to the same period in 2023. Of the increase, $177.1 million was from government customers existing as of December 31, 2023. Revenue from U.S. government customers was $854.5 million for the nine months ended September 30, 2024 compared to $684.0 million for the same period in 2023. Revenue from commercial customers increased by $205.0 million, or 29%, for the nine months ended September 30, 2024 compared to the same period in 2023. Of the increase, $154.4 million was from commercial customers existing as of December 31, 2023, including a decrease of $24.7 million of revenue from Strategic Commercial Contracts. Revenue from U.S. commercial customers was $488.1 million for the nine months ended September 30, 2024 compared to $326.3 million for the same period in 2023, a 50% increase.
Previous wording
Generally, increases in revenue from our existing customers are related to increased adoption of our products and services within their organizations. For additional information on Strategic Commercial Contracts, see Note 4. Investments and Fair Value Measurementsin our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Generally, increases in revenue from our existing customers are related to increased adoption of our products and services within their organizations. For additional information on Strategic Commercial Contracts, see Note 4. Investments and Fair Value Measurements in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Cost of revenue for the three months ended June 30, 2024 increased by $21.7 million, or 20%, compared to the same period in 2023. The increase was primarily due to increases of $14.4 million in third-party cloud hosting services and $10.8 million in subcontractor expenses. These increases were partially offset by a decrease of $7.8 million in field service representatives and hardware costs.
Current wording
Cost of revenue for the three months ended September 30, 2024 increased by $38.7 million compared to the same period in 2023. The increase was primarily due to increases of $20.1 million in subcontractor expenses, $8.8 million in third-party cloud hosting services, and $6.2 million in stock-based compensation and related expenses.
Previous wording
Cost of revenue for the six months ended June 30, 2024 increased by $30.3 million, or 14%, compared to the same period in 2023. The increase was primarily due to increases of $20.9 million in third-party cloud hosting services, $19.6 million in subcontractor expenses, and $7.3 million in stock-based compensation and related expenses. These increases were partially offset by decreases of $10.3 million in field service representatives and $7.0 million in hardware costs.
Current wording
Cost of revenue for the nine months ended September 30, 2024 increased by $69.0 million, or 21%, compared to the same period in 2023. The increase was primarily due to increases of $39.7 million in subcontractor expenses, $29.7 million in third-party cloud hosting services, and $13.5 million in stock-based compensation and related expenses. These increases were partially offset by a decrease of $11.0 million in field service representatives.
Previous wording
Our gross margin for the three months ended June 30, 2024 increased to 81% from 80% for the same period in 2023 as a result of revenue growth outpacing costs of revenue. This growth rate variation was primarily due to the decreases in field service representatives and hardware costs in cost of revenue relative to revenue growth as compared to the prior year.
Current wording
Our gross margin for the nine months ended September 30, 2024 increased from 80% for the same period in 2023 to 81% as a result of the growth of revenue slightly outpacing cost of revenue growth.
Previous wording
Research and development expenses increased by $9.2 million, or 9%, for the three months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $5.4 million in stock-based compensation and related expenses and $5.0 million in third-party cloud hosting services.
Current wording
Sales and marketing expenses increased by $51.8 million, or 9%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $31.6 million in stock-based compensation and related expenses and $10.6 million in third-party cloud hosting services.
Previous wording
General and administrative expenses increased by $3.7 million, or 1%, for the six months ended June 30, 2024 compared to the same period in 2023. The increase was primarily due to an increase of $8.8 million in stock-based compensation and related expenses partially offset by a decrease of $5.7 million to our allowance for credit losses.
Current wording
General and administrative expenses increased by $14.3 million, or 4%, for the nine months ended September 30, 2024 compared to the same period in 2023. The increase was primarily due to increases of $14.3 million in stock-based compensation and related expenses, and $8.6 million in travel costs. These increases were partially offset by a decrease of $9.4 million to our allowance for credit losses.
Previous wording
Stock-based compensation expenses increased by $27.6 million, or 24%, and $38.5 million, or 17%, for the three and six months ended June 30, 2024 compared to the same periods in 2023, respectively. The increase was driven by expense from new grants awarded since June 30, 2023, including restricted stock units (“RSUs”), performance-based RSUs (“P-RSUs”), and stock appreciation rights (“SARs”), partially offset by a reduction in expense from awards that became fully vested and lower expense under the accelerated attribution method for RSUs granted prior to September 30, 2020, the date we completed the direct listing of our Class A common stock on the New York Stock Exchange (“NYSE”).
Current wording
Stock-based compensation expenses increased by $28.0 million and $66.5 million, or 25% and 19%, for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023. The increase was driven by expense from new grants awarded since September 30, 2023, including restricted stock units (“RSUs”), performance-based RSUs (“P-RSUs”), and stock appreciation rights (“SARs”), partially offset by a reduction in expense from equity awards that became fully vested, forfeitures, and lower expense under the accelerated attribution method for RSUs granted prior to September 30, 2020, the date we completed the direct listing of our Class A common stock on the New York Stock Exchange (“NYSE”).
Previous wording
Interest income increased by $16.3 million and $38.8 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023 primarily due to an increase in our interest-bearing cash, cash equivalents, and our investments in short-term U.S. treasury securities.
Current wording
Interest income increased by $15.3 million and $54.0 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 primarily due to an increase in our interest-bearing cash, cash equivalents, and our investments in short-term U.S. Treasury securities.
Previous wording
Other income (expense), net changed by $0.8 million and $10.2 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023 primarily due to an increase in net realized and unrealized losses from our shares held in equity securities.
Current wording
Other income (expense), net changed by $11.2 million and $21.4 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 primarily due to an increase in net realized and unrealized losses from our shares held in equity securities.
Previous wording
Provision for income taxes increased by $3.0 million and $6.0 million for the three and six months ended June 30, 2024, respectively, compared to the same periods in 2023 primarily due to increased foreign tax expense as a result of higher foreign taxable income and withholding taxes, as well as increases in state taxes.
Current wording
Provision for income taxes increased by $1.3 million and $7.3 million for the three and nine months ended September 30, 2024, respectively, compared to the same periods in 2023 primarily due to increased foreign tax expense as the result of higher foreign taxable income and withholding taxes.
Previous wording
We generated positive cash flow from operations for the six months ended June 30, 2024. We had cash and cash equivalents and short-term U.S. treasury securities totaling $4.0 billion available as of June 30, 2024. We believe that cash flows generated from operations, cash, cash equivalents, marketable securities, available funds, and access to financing sources, including our undrawn credit facility, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months. However, any projections of future cash needs and cash flows are subject to substantial uncertainty. While we have generated income from operations and positive cash flows from operations for the six months ended June 30, 2024, the amounts may fluctuate for the foreseeable future.
Current wording
We generated positive cash flow from operations for the nine months ended September 30, 2024. We had cash, cash equivalents, and short-term U.S. Treasury securities totaling $4.6 billion available as of September 30, 2024. We believe that cash flows generated from operations, available funds, and access to financing sources, including our undrawn credit facility, will be sufficient to meet our anticipated operating cash needs for at least the next twelve months. However, any projections of future cash needs and cash flows are subject to substantial uncertainty. While we have generated income from operations and positive cash flows from operations for the nine months ended September 30, 2024, the amounts may fluctuate for the foreseeable future.
Previous wording
As of June 30, 2024, our accumulated deficit balance was $5.4 billion, and our principal sources of liquidity were cash and cash equivalents and short-term U.S. treasury securities totaling $4.0 billion.
Current wording
As of September 30, 2024, our accumulated deficit balance was $5.3 billion, and our principal sources of liquidity were cash, cash equivalents, and short-term U.S. Treasury securities totaling $4.6 billion.
Previous wording
As of June 30, 2024, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500 million under our credit facility. For more information, see Note 6. Debt in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
As of September 30, 2024, we had no outstanding debt balances and additional available and undrawn revolving commitments of $500.0 million under our credit facility. For more information, see Note 6. Debt in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
During the six months ended June 30, 2024, the Company repurchased and subsequently retired 1.2 million shares of its Class A common stock for an aggregate amount, including commissions, of $26.7 million under the Share Repurchase Program. As of June 30, 2024, approximately $973.3 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.
Current wording
During the nine months ended September 30, 2024, the Company repurchased and subsequently retired 1.8 million shares of its Class A common stock for an aggregate amount, including commissions, of $45.6 million under the Share Repurchase Program. As of September 30, 2024, approximately $954.4 million of the originally authorized amount under the Share Repurchase Program remained available for future repurchases.
Previous wording
Our future capital requirements will depend on many factors, including, but not limited to, the rate of our growth, our ability to attract and retain customers and their willingness and ability to pay for our products and services, and the timing and extent of spending to support our efforts to market and develop our products. Further, we may enter into future arrangements to acquire or invest in businesses, products, services, strategic partnerships, and technologies; additionally, we have, and may in the future, repurchase shares of our Class A common stock from time to time under our Share Repurchase Program. As such, we may be required to seek additional equity or debt financing. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If additional funds are not available to us on acceptable terms, or at all, our business, financial condition, and results of operations could be adversely affected. For additional information on our Share Repurchase Program, see Note 8. Stockholders’ Equity in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Current wording
Our future capital requirements will depend on many factors, including, but not limited to, the rate of our growth, our ability to attract and retain customers and their willingness and ability to pay for our products and services, and the timing and extent of spending to support our efforts to market and develop our products. Further, we may enter into future arrangements to acquire or invest in businesses, products, services, strategic partnerships, and technologies; additionally, we have, and may in the future, repurchase shares of our Class A common stock from time to time under our Share Repurchase Program. As such, we may seek additional equity or debt financing on an as needed or opportunistic basis. In the event that additional financing is required from outside sources, we may not be able to raise it on terms acceptable to us or at all. If additional funds are not available to us on acceptable terms, or at all, our business, financial condition, and results of operations could be adversely affected. For additional information on our Share Repurchase Program, see Note 8. Stockholders’ Equityin our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q.
Previous wording
Net cash provided by operating activities was $273.8 million and $277.6 million for the six months ended June 30, 2024 and 2023, respectively. The decrease was primarily driven by timing of the receipt of payments from our customers and timing of payments to vendors.
Current wording
Net cash provided by operating activities was $693.5 million and $411.0 million for the nine months ended September 30, 2024 and 2023, respectively. The increase was primarily driven by the growth of our business and timing of the receipt of payments from our customers and timing of payments to vendors.
Previous wording
Net cash used in investing activities was $660.1 million and $1.9 billion for the six months ended June 30, 2024 and 2023, respectively. The decrease in cash used in investing activities was primarily due to fewer purchases of marketable securities, primarily comprised of short-term U.S. treasury securities compared to the prior year.
Current wording
Net cash used in investing activities was $980.8 million and $2.1 billion for the nine months ended September 30, 2024 and 2023, respectively. The decrease in cash used in investing activities was primarily due to fewer purchases of marketable securities, primarily comprised of U.S. Treasury securities, compared to the prior year.
Previous wording
Net cash provided by financing activities was $73.3 million and $116.7 million for the six months ended June 30, 2024 and 2023, respectively, each of which primarily consisted of proceeds from the exercise of common stock options, partially offset by share repurchases of $26.7 million during the six months ended June 30, 2024.
Current wording
Net cash provided by financing activities was $224.7 million and $167.6 million for the nine months ended September 30, 2024 and 2023, respectively, each of which primarily consisted of proceeds from the exercise of common stock options.
Previous wording
Our contractual obligations and commitments primarily consist of operating lease commitments for our facilities and non-cancelable purchase commitments related to third-party cloud hosting services. For additional information, refer to Note 7. Commitments and Contingencies to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Except as already disclosed in Note 7. Commitments and Contingencies in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there has been no material change in our contractual obligations and commitments other than in the ordinary course of business since our fiscal year ended December 31, 2023. See our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the SEC on February 20, 2024, for additional information regarding the Company’s contractual obligations.
Current wording
Our contractual obligations and commitments primarily consist of operating lease commitments for our facilities and non-cancelable purchase commitments related to third-party cloud hosting services. For additional information, refer to Note 7. Commitments and Contingencies to our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q. Except as already disclosed in Note 7. Commitments and Contingencies in our condensed consolidated financial statements included elsewhere in this Quarterly Report on Form 10-Q, there has been no material change in our contractual obligations and commitments other than in the ordinary course of business since our fiscal year ended December 31, 2023. See our Annual Report on Form 10-K for the year ended December 31, 2023, which was filed with the Securities and Exchange Commission (“SEC”) on February 20, 2024, for additional information regarding the Company’s contractual obligations.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
We have built four principal software platforms, Gotham, Foundry, Apollo, and our Artificial Intelligence Platform (“AIP”). Gotham and Foundry enable institutions to transform massive amounts of information into an integrated data asset that reflects their operations, and AIP leverages the power of our existing machine learning technologies alongside generative AI models, including large language models (“LLMs”), directly within Gotham and/or Foundry to help operationalize AI on enterprise data.