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Crossroads
@Dr_Crossroads
Investment enthusiast. Driven by faith, family, and the conviction that the best is yet to come. YouTube
Joined May 2017
420 Following    35.7K Followers
$PLTR While the RPO didn't increase much this quarter, billings absolutely did. These, along with deals landed in the prior two quarters, are what helps me project the revenue with fairly close accuracy. After 2023, revenue the following quarter has always exceeded billings, and that spread has widened. Over the past 4 quarters, this spread has averaged 11.69%. If that average holds, Palantir will post $2.74b in Q4, representing 95% Y/Y growth and a significant beat over the $2.45b the street expects and is higher than the ~$2.65b Palantir guided for. It wouldn't surprise me to see $2.8b given the cadence of deals landed in Q2.
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$PLTR One of the "bearish" parts of the earnings for Palantir was the lack of Q/Q growth in RPO. While we may see some slowdown from the nearly 100% growth they are putting up, it's not as significant as the RPO #'s might indicate. Per Glazer, "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 most of our government business." Palantir noted that they signed multiple 8-figure deals that were shorter than typical, and are likely to expand in terms of duration and monetization. This is worth keeping an eye on for sure, but I believe it explains the sequential weakness for the RPO figures.
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