Palantir's Trillion Dollar Transformation, Early Tesla Investor Explains
Palantir is rapidly productizing its offerings, best evidenced by a rising contribution margin. Contribution margin is defined as “revenue less cost of revenue and sales and marketing expenses, excluding stock-based compensation, divided by revenue.”
Increasing contribution margin signals lower cost of deployment and therefore improved unit economics. As a leading indicator of profitability, all margins follow suit. Contribution margin is therefore the Palantir thesis’s most signal-rich metric: if it rises quickly, so too will cash flow production.
Per my original thesis, aggregate contribution margin has risen from 54% in FY2022 to 56% in FY2023. More impressively, the metric has risen from 55% in Q1 2023 to 60% in Q1 2024, implying a meaningful acceleration in the rate of productization.
As the bootcamps themselves are productized-thus enabling Palantir to conduct more bootcamps per unit of time-I believe contribution margin will accelerate further. I also believe we can already see this dynamic in this quarter’s acceleration.
At the current rate of acceleration, the contribution margin will rise above 90% in the coming years and this will fundamentally change Palantir moving forward.
At 90%, seamless deployment will allow Palantir to drastically increase the number of customers per vertical, enabling a blueprint for scaling infrastructure that becomes accessible to companies N+1 and beyond.
This approach frees each subsequent company from purchasing raw compute and allows them to acquire computation tailored precisely to their operational objectives. Drawing a parallel to gasoline, this shift is akin to providing wildcatters with industrial drilling equipment.
This changes how computation is sold in the market and places Palantir at the top of the cloud compute funnel-in the fortunate position of being able to redirect prospective customers to the cloud hyperscalers. In time, this should proliferate Palantir’s operating capability and, thus, free cash flow levels per share.
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Amazing video bro. Quality improved dramatically!
@alc_magic
Ай бұрын
Thanks, Arny! Lots of iterations.
This is a gem. Listened to it 3 times already. Thanks Antonio!
@alc_magic
20 күн бұрын
Thank you sir
Excellent analysis, thank you! I work in tech and watching CodeStrap videos has me convinced on tech side and you Arny, Amit and others has me convinced on the business side. 🚀
@alc_magic
20 күн бұрын
Thanks a lot for your comment :)
very good
Nice video. Given what’s happening in the Middle East I can’t get down with Palantir anymore.
@alc_magic
20 күн бұрын
Thank you sir
Wow, well said. Very intricate very direct very genuine. Wonderful analysis and I completely agree I don’t think people still fully realize the absurd potential of Palantir
@alc_magic
20 күн бұрын
Thanks a lot for your comment!
Nice one mate, I'm hopeless at all the technical data, I just invested at DPO on the basis of their ability to build Ontologys as I see the potential for every business to utilise this to be better. This is proved in the BP story reducing the cost to produce oil by half in 6 months. I think once the bootcamps have run for long enough they will figure out a model to commercialise this to the masses, A simple software program that you link into to your business and then boom you basically have the strength of AI and smarter decision making. I design and sell kit homes, I was gutted the builders program was only available to UK and US I'd holders. I need this in my life!
@alc_magic
20 күн бұрын
Thanks a lot friend
Great vid
@alc_magic
20 күн бұрын
Thank you sir!!
Nice🎉🎉
@raggimagga9324
29 күн бұрын
Dude, you are everywhere hahaha ♥
@midwestcannabis
29 күн бұрын
@@raggimagga9324 Takes one to know one 👌👌🥳🥳🥳✌️✌️✌️✌️
@alc_magic
20 күн бұрын
Thank you sir
@alc_magic
20 күн бұрын
@@raggimagga9324 thank you both for being here!!
Karp keeps selling. Recent sell comprises more than 15% of his total
@alc_magic
20 күн бұрын
Concerning
@jasonmoseley8788
18 күн бұрын
@@alc_magic I don't think so. PLTR higher manager's pay plan is more stock driven. He has sold same amount like clock work. I honestly think by next earning release PLTR will be trading between $30 to $35. I have built a little position with shares and calls for August 16
low audio level. had to turn up volume quite a bit.
@alc_magic
20 күн бұрын
Thank you for the feedback! Will improve on it.
Hat tip
@alc_magic
20 күн бұрын
Thank you sir!!
Investing in alternative income streams that are independent of the government should be the top priority for everyone right now. especially given the global economic crisis we are currently experiencing. Stocks, gold, silver, and virtual currencies are still attractive investments at the moment.
@softy-bf5eg
25 күн бұрын
There are strategies that could be put in place for solid gains regardless of economy situation, but such execution is usually carried out by an investment specialist
@TitaAnderson
25 күн бұрын
I've been in touch with a financial analyst ever since I started investing. Knowing today's culture The challenge is knowing when to purchase or sell when investing in trending stocks, which is pretty simple. On my portfolio, which has grown over $900k in a little over a year, my adviser chooses entry and exit orders
@Cammimullens
25 күн бұрын
Mind if I ask you to recommend this particular coach you using their service? Seems you've figured it all out.
@TitaAnderson
25 күн бұрын
“Angela Lynn Shilling’’ is the licensed fiduciary I use. Just research the name. You’d find necessary details to work with a correspondence to set up an appointment.
@Cammimullens
25 күн бұрын
Thank you for this Pointer. It was easy to find your handler, She seems very proficient and flexible. I booked a call session with her.
So how do you think there’s any chance that palantir data analysis application development tools have even the slightest chance of competing with the products offered by Microsoft and Amazon considering they seamlessly integrate with training generative ai models to minimize token cost? Palantirs only competitive advantage is visualization UI that looks prettier for management teams but pretty much anyone actually developing the data analytics tools isn’t even slightly interested in AIP compared to azure ML and Amazon bedrock/sagemaker. Palantir is literally an extremely weak player in everything they claim to be a leader in other than data visualization UI which has its place but as a peripheral to the more important aspects of data analysis mainly provided by CSPs, and it likely becomes less important and less of a competitive advantage as generative ai further develops. Palantir has a much smaller addressable market and is much less scalable than people are giving it credit for trading at about 50x ntm fcf.
This video is rather monotonous
Analysis shows PLTR is worth $0
@gielwinkelmolen7045
29 күн бұрын
Analysis shows you're dumb