PLTR Financial Analysis Report for 2023
Revenue Analysis
Total and Operating Revenue: PLTR’s total revenue has been increasing consistently throughout the quarters of 2023. In the first quarter, total revenue was $525.186 million, which gradually increased to $608.350 million by the fourth quarter.
Gross Profit Margin: Gross profit has shown a positive trend, rising from $417.541 million in Q1 to $499.711 million in Q4. This indicates improving efficiency in managing production or service delivery costs relative to sales.
Cost Management
Cost of Revenue: The cost of revenue has remained stable, starting at $107.645 million in Q1 and reaching approximately $108.639 million by Q4. This stability suggests controlled variable costs relative to the scale of operations.
Operating Expense: Operating expenses have seen a decrease from $413.426 million in Q1 to $433.917 million in Q4, reflecting a significant increase in spending as revenues grow. Efforts to scale operations may have contributed to this rise.
Total Expenses: Despite growing revenues, total expenses escalated from $521.071 million in Q1 to $542.556 million in Q4, indicating increasing operational costs while expanding business activities.
Profitability Analysis
EBITDA: EBITDA improved significantly from $30.427 million in Q1 to $114.355 million in Q4, showing enhanced operational profitability over the year.
Operating Income: Operating income has increased notably from $4.115 million in Q1 to $65.794 million in Q4, underlining better management of operating costs or increased operational efficiency.
Pretax Income: Pretax income rose from $20.832 million in Q1 to $106.247 million in Q4, reflecting higher operating income and possibly better cost management.
Net Income: Net income showed a steady increase from $16.802 million in Q1 to $93.391 million in Q4, an indicator of overall financial health improving through the year.
Cash Flow Indicators
Reconciled Depreciation: Depreciation expenses were relatively stable, with a slight increase from $8.320 million in Q1 to $7.972 million in Q4, hinting at consistent capital asset depreciation over time.
Interest Expense: Interest expenses are very minimal, impacting less significantly on financials, ranging from $1.275 million in Q1 to $0.136 million in Q4.
Taxation
Tax Rate: The effective tax rate has shown variability, decreasing progressively from 8.069% in Q1 to 8.785% in Q4.
Tax Provision: Tax provisions increased from $1.681 million in Q1 to $9.334 million in Q4, suggesting higher taxable income as the year progressed.
Tax Effect Of Unusual Items: There was no tax effect of unusual items observed throughout the year, aiding in straightforward tax assessments.
Shareholder Metrics
Diluted and Basic EPS: Both diluted and basic EPS doubled from $0.01 in Q1 to $0.04 in Q4, indicating beneficial growth for shareholders.
Average Shares: The number of diluted average shares increased from 2.217 billion in Q1 to 2.358 billion in Q4, reflecting potential equity financing activities.
Net Income Available to Common Stockholders: This followed the trend of net income, with a substantial increase from the first to the last quarter of the year.
Conclusion
PLTR has demonstrated significant financial improvements over 2023, marked by increased revenue, controlled expense growth, and rising profitability. Operational efficiency seems to have been enhanced, and shareholder value has increased. These trends suggest a strong fiscal position that could support future expansion or strategic initiatives.
Appendices
Supporting data tables and detailed calculations were utilized to prepare this analysis, underlining the quantitative insights discussed.