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DEEP RESEARCH · PALANTIR Q3 2024

Palantir’s Q3 2024 Results and Possible Links to Korean Defense

A short earnings comment centered on operating leverage, three consecutive quarterly surprises, and the company’s U.S. government advantage

Written: 2024-11-05 · Earnings review and industry interpretation · Naver Blog

Investment decisions are your own responsibility. This material is research and is not a recommendation to buy or sell.

0. Bottom line first

I view Palantir as being in an operating-leverage phase where future cash-flow growth can surge. With three consecutive quarterly surprises, I see the trend as just beginning, so I think a position-increase perspective is needed for the time being.

1. The key point from Q3 2024 results

Mirae Asset Q3 2024 Palantir report image

Official fact: The source post includes an image captioned as a “Mirae Asset Q3 2024 report.”

For this company, I think it is in a period of operating leverage in which future cash-flow growth can surge. After achieving surprises for three consecutive quarters, I view it as a company whose trend has now started.

Palantir earnings interpretation structureThe flow of the source investment idea
Three consecutive surprisesSignal that the trend has started
Revenue growthGrowth continues
SG&A controlOperating leverage
Cash-flow growthPosition-increase view
The core interpretation is that revenue growth and cost control are appearing together.

2. Revenue growth and SG&A control

Looking at the graph below, SG&A does not increase despite revenue growth. It is truly a beautiful set of results.

Interpretation: If SG&A does not rise sharply while revenue increases, incremental revenue can flow more strongly into profit and cash flow. That is why I view this as an operating-leverage phase.

Palantir revenue and SG&A trend graph Additional Palantir earnings-related graph

3. Business advantage: U.S. government relationships

I think the company’s business advantage lies in its transactions with the U.S. government. Based mainly on cooperation with the U.S. Department of Defense, collaboration with defense companies around the world also seems likely to be easier.

Looking at the contract record, expansion into the private sector also seems to have no clear boundary.

4. Possible connection to Korean defense

Among the contracted companies that can be confirmed through shareholder-official materials, there are also Korean defense companies. I briefly wonder whether the recent strength of Korean defense could be related to this as well.

The core of the investment idea is Palantir’s operating leverage and its U.S. government transaction base. The connection to Korean defense is presented in the source post as a possibility, not as a definitive conclusion.

Sources

Naver original