We ended Q4 with $3.7 billion in cash, cash equivalents and short-term US treasury securities. We retain access to additional liquidity of up to $500 million through our revolving credit facility, which remains entirely undrawn. Now, turning to our outlook. For Q1 2024, we expect revenue of between $612 million and $616 million; adjusted income from operations of between a $196 million and $200 million. For full year 2024, we expect revenue of between $2.652 billion and $2.668 billion; US commercial revenue in excess of $640 million, representing a growth rate of at least 40%; adjusted income from operations of between $834 million and $850 million; adjusted free cash flow of between $800 million and $1 billion; GAAP operating income and net income in each quarter of this year.
With that, I’ll turn it over to Alex for a few remarks, and then Ana will kick off the Q&A.
Alex Karp: Welcome to our earnings. There’s really so much to say. Obviously, our performance in US commercial is extraordinary, some would say bombastic. The numbers that just fly off the screen are the 70% year-on-year growth in Q4. The number numbers that I almost had to turn the page when I saw them were the — over 100 contracts, over $1 million, 37 over $5 million, and 21, roughly, over $10 million. There is — it’s almost inconceivable to do that many contracts given the way our product used to be. And so, what you see is a convergence of our product being easier to use, an augmentation of its charisma, both driven by developments in AI, large language models, which make the product approachable foundry to the broader market.
You also see just this enormous demand and our ability to meet that demand with a pilot — new piloting approach that we call bootcamp. So, we went, like — two years ago, we did 92 pilots. And last year, really mostly the second half of the year, we did over 500 bootcamps. I go around the country now telling CEOs, CTOs, and really, whoever has $1 million to buy our product and transform their enterprise, take everything you’ve done in AI since you started, put your best people on it, and we’re going to show up at any time you want, and we’re going to run your data at a bootcamp for 10 hours. And then, you compare your self-pleasuring to our operationally-relevant, commercially-valuable, critical-to-your-enterprise results. Our 10 hours, your 10 months.
Any products you want, any vendor you want, any hyperscaler you want, you pick them, we’ll show up. The reaction to this because every — what America obviously realize is this is real. But if you took the total number of people, total number of enterprises that are doing AI of any kind, including Algebra, and said, it would be probably less than the 300. We have 300 customers that are creating operational results using our AIP power — operational meaning, define how you want, I’m defining as they’ll pay $1 million or more for it. So, it’s real. And we’re doing this at a scale and pace that is inconceivable for Palantir up until recently. And you have just have number after number after number, interface after interface, this is — there are some caveats.
Europe has decided that they are not going to engage in this revolution. There are other caveats for our society. I don’t want to spend too much time on that, but the winners are going to win more. This is a revolution for incumbents that have distribution and already strong products, which is why we’re massively outperforming. There’s some caveats for us internally. We’re having to rebuild the whole system, our whole company to deal with this demand. We have a latent nascent sales force that has put its tiny toe in the water and has noticed that it can move around. We have to build that into a strong, aggressive machine. There are some positive caveats. We’re doing this our way. We are not — we are proud of our work on the front. We are proud that we support the US.
We are proud that we support the US military. We are proud to have an operational crucial role in Ukraine, and I am exceedingly proud that after October 7, within weeks, we are on the ground, and we are involved in operationally crucial, operations in Israel. I know of no other software company in the world that has been engaged by Ukraine and Israel, or in general, I’m not sure they buy software from any other company at our scale. These are momentous events built on the back of a 20-year assumption that software would define our reality. The winners would be those that understood software, rejecting linear, narrow, sales-driven software, Frankenstein monster infrastructures that have been so historically popular for investment in Silicon Valley, rejecting sophism, as not only an approach to business, meaning I only say what I believe if it doesn’t matter or I never say what I believe.
Those assumptions have seeped into our products, whether they’re a military product, whether they’re foundry, or ontology, or AIP. They also — by the way, for those listening who think our strategy is crazy, many of your best people are applying to Palantir now. So, while we may be crazy, we are being bombarded by people who want to work at this company, bombarded. I cannot — a day does not go by where I’m not getting a call, an email, 50 attempts to get into our company. We are razor, we are white-hot in recruiting. We’re 20-year company with the strongest recruiting I’ve ever seen from a company that’s historically had the strongest recruiting in the most competitive environment in the world, Silicon Valley. That is because we stand behind our values and because we intend to win with those values, which we’re approving.
So, this was an extraordinary last year. We also took care of making sure we’re aligned internally on comp. We are streamlining our events, the way we go to market. And I would also say from the perspective as, the leader of our movement, nominally called the CEO of our company, we have never been this aligned internally. We are a company that engages the most talented, interesting, and difficult people in the world. Some of them are at this table. And there has never been a time where we have been this motivated, this in unison, and this proud of our company and our accomplishments. And so, I’m proud to be proud with them, and we are going to keep on on our efforts, and I foresee a very, very strong year, especially in US commercial. I would also say this strength of our US commercial and the strength of our products being used in the most difficult and most important war zones in the world is going to have a handoff function into USG, and I’m optimistic that handoff function will happen, and we will be as successful there as we are in US com.
A – Ana Soro: With that, we’ll begin with a few questions from our shareholders before we open up the call. Our first question is from Andrew. Given the significant increase in demand for AIP, could the management team elaborate on the advancements made in formulating monetization strategy for these offerings?
Ryan Taylor: Yeah. You’re right to comment. The demand is off the charts for AIP, with bootcamps as the delivery mechanism for AIP, and we’re seeing AIP drive the expanding addressable market, that we’re seeing. As Alex commented, we closed 103 deals in Q4 alone over $1 million. Having been involved in many of those directly and on the ground, I can tell you that the feeling, the demand, the excitement over AIP and over Palantir is unlike anything I’ve seen in the 14 years I’ve been here, and we feel that. We feel that in a tangible way on the ground with our customers, And we’re starting to see the beginnings of that in our Q4 results. In October, we set the goal of executing 500 bootcamps for top of funnel for AIP. As noted, we’ve already exceeded that with over 560 bootcamps just about four months later, and that is only continuing to increase that momentum.
Then, you see the results in US commercial, 70% year-over-year growth in revenue in Q4, 55% growth in customer count year-over-year, a 107% growth in TCV closed on an adjusted basis. And then, you see emerging from that the archetypes — to the question on monetization, the archetypes of the types of monetization we’re seeing. Either it’s — first, it’s boot camps that are quickly converting to paying customers or it’s expansion of existing customers or it’s customers where maybe we’ve been engaged for a while and introduction of AIP, that whole process has been accelerated. We’re seeing that across the board, and yet at the same time, we barely touched that addressable market, and we’re really only at the beginning. So excited to see where that takes us.
Ana Soro: Thanks, Ryan. Our next question is from Tanner who asks, what kind of interest has the FedStart program seen as of late? Has the market responded to this? And will there be additional marketing made towards these start-ups? And relatedly, when do you expect Apollo to be a significant contributor to Palantir’s revenue?
Shyam Sankar: Great. Thanks, Tanner. Yeah, FedStart has been a hit. And I think it’s easy to understand why. There’s been $100 billion of capital that’s flowed into the defense tech community at large. No one can afford the two years and $2 million it takes to achieve this accreditation. This provides market access. We’ve started with an intense focus on IL5, bringing folks to the DoD market. We plan to release an IL6 FedStart at the end of Q2 and FedRAMP High at the end of Q3, early Q4. And we’re also going to be taking this to our allies. So, we intend to launch FedStart with the UK on the secret network and above top secret network later this year. Apollo is having its moment. I think the charisma it has with customers when they see it running at scale, running, managing all $2.2 billion of our revenue, I think a big part of this is they’ve spent the last two years trying to solve these problems on their own.
