PLTR 4Q24: 4Q MISS, Some Headwinds Appear

Although Palantir's strong government revenue and innovative commercial business strategies, Bootcamps+AIP, provide a solid foundation, latest quarter survey has revealed some headwinds, making it challenging to achieve accelerated revenue growth in FY2025

For a stock like Palantir, whose valuation may be difficult for most buyers to comprehend, marginal improvements are more likely to drive a BUY consensus. However, a slowdown in revenue growth could be a significant negative factor affecting the stock price.

In the following sections, we will primarily detail the factors behind the quarter's underperformance, as well as provide our preview for 4Q24 and outlook for 2025.

Headwinds:

1.The acquisition of new commercial customers will slow down in 2025

Bootcamps are currently the most important growth engine for the Commercial business. It has effectively shortened the customer acquisition cycle, with approximately 60-70% of new Commercial customers in 2024 coming from Bootcamps.