Many would agree with you. I don't really have a strong opinion. If this represents a permanent upward demand inflection with continued explosive profit beats it could work well. But that needs to happen and I don't know if it will or won't.
I was also impressed by PLTR's recent earnings report. So much to like - expanding margins, expanding cash flow margins, rising cash on balance sheet etc. Commercial business growth is the main investing thesis in this company and they are doing excellent in that arena. The shareholder dilution is, as you pointed out, one of the biggest red flags in their fundamentals and there seems to be no end in sight or even commentary from the mgmt about reversing it.
I always include operating lease liabilities (current and non current) in what I consider to be total debt and this also gets included in my EV calculation, my valuation metrics for the stock etc.
Interesting! I do not. Operating lease liabilities don't offer creditors a legal claim to the lease to force transfer of ownership (as they already own the asset) like they do with debt repayment & costs are incurred as leasing/occupancy expense above the operating income line. But some do it your way.
Hi Brad,
Thanks for your insightful take on the quarter. While I agree with your bullish view on AIP, Palantir’s overall results and 2024 guide do not justify its valuation - https://seekingalpha.com/article/4667632-palantir-stock-pops-on-unwarranted-optimism-avoid
Many would agree with you. I don't really have a strong opinion. If this represents a permanent upward demand inflection with continued explosive profit beats it could work well. But that needs to happen and I don't know if it will or won't.
I was also impressed by PLTR's recent earnings report. So much to like - expanding margins, expanding cash flow margins, rising cash on balance sheet etc. Commercial business growth is the main investing thesis in this company and they are doing excellent in that arena. The shareholder dilution is, as you pointed out, one of the biggest red flags in their fundamentals and there seems to be no end in sight or even commentary from the mgmt about reversing it.
Breakout quarter for sure. Had to do a double take when I first saw 70% U.S. Commercial growth.
Thanks Brad! Always appreciated. In section 3 you say there is no “traditional” debt. What do you mean by that?
I saw debt of $229M on the balance sheet.
Not seeing that on the balance sheet. Don't see any traditional debt. Which line item are you looking at?
Just no debt listed on the balance sheet
I always include operating lease liabilities (current and non current) in what I consider to be total debt and this also gets included in my EV calculation, my valuation metrics for the stock etc.
Interesting! I do not. Operating lease liabilities don't offer creditors a legal claim to the lease to force transfer of ownership (as they already own the asset) like they do with debt repayment & costs are incurred as leasing/occupancy expense above the operating income line. But some do it your way.
Nice beat for $PLTR
Really good quarter for sure