#1Q Palantir Business Update ● O O O Q1 2021 O2021 Palantir Technologies Inc. May 11 2021#2Disclaimer Safe Harbor This presentation and the accompanying oral commentary contain "forward-looking" statements within the meaning of the federal securities laws, and these statements involve substantial risks and uncertainties. All statements other than statements of historical fact could be deemed forward-looking, including, but not limited to, expectations of future operating results or financial performance, market size and growth opportunities, the calculation of certain of our key financial and operating metrics, plans for future operations, competitive position, technological capabilities, and strategic relationships, as well as assumptions relating to the foregoing. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified. In some cases, you can identify forward-looking statements by terminology such as "guidance," "expect," "anticipate," "should," "believe," "hope," "target," "project," "plan," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," "shall," and variations of these terms or the negative of these terms and similar expressions. You should not put undue reliance on any forward-looking statements. Forward-looking statements should not be read as a guarantee of future performance or results and will not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved, if at all. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control. Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to risks detailed in our filings with the Securities and Exchange Commission (the "SEC"), including our annual report on Form 10-K for the fiscal year ended December 31, 2020 and other filings and reports that we may file from time to time with the SEC, including our quarterly report on Form 10-Q for the quarter ended March 31, 2021. You can locate these reports on our investor relations website (investors.palantir.com) or on the SEC website (www.sec.gov). If the risks or uncertainties ever materialize or the assumptions prove incorrect, our results may differ materially from those expressed or implied by such forward-looking statements. Except as required by law, we assume no obligation and do not intend to update these forward-looking statements or to conform these statements to actual results or to changes in our expectations. We use the non-GAAP financial measures adjusted free cash flow and adjusted free cash flow margin; contribution margin; adjusted gross profit and adjusted gross margin; billings; and adjusted operating income (loss) and adjusted operating margin to help us evaluate our business, identify trends affecting our business, formulate business plans and financial projections, and make strategic decisions. Our definitions may differ from the definitions used by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Further, these metrics have certain limitations in that they do not include the impact of certain expenses that are reflected in our consolidated statement of operations. Thus, these non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, measures prepared in accordance with GAAP. We compensate for these limitations by providing reconciliations of these non-GAAP financial measures to the most comparable GAAP measures. We encourage investors and others to review our business, results of operations and financial information in its entirety, not to rely on any single financial measure, and to view these non-GAAP financial measures in conjunction with the most directly comparable GAAP financial measures. This presentation contains statistical data, estimates and forecasts that are based on independent industry publications or other publicly available information, as well as other information based on our internal sources. This information involves many assumptions and limitations, and you are cautioned not to give undue weight to these estimates. We have not independently verified the accuracy or completeness of the data contained in these industry publications and other publicly available information. Accordingly, we make no representations as to the accuracy or completeness of that data nor do we undertake to update such data after the date of this presentation. This presentation also contains links to publicly-available websites, data, or other information. We have not independently verified the accuracy or completeness of such websites, data, or information and accordingly we make no representations as to their accuracy or completeness nor do we undertake to update such data or information after the date of this presentation. The inclusion of external links does not constitute endorsement by Palantir of the linked websites or the data or information contained therein. By attending or receiving this presentation you acknowledge that you will be solely responsible for your own assessment of the market and our market position and that you will conduct your own analysis and be solely responsible for forming your own view of the potential future performance of our business. Any non-Palantir logos or trademarks included herein are the property of the owners thereof and are used for reference purposes only. Such use should not be construed as an endorsement of the platform and products of Palantir. The appearance of U.S. Department of Defense (DoD) visual information does not imply or constitute DoD endorsements.#3ΟΙ T Introduction 01 1.5 million individual shareholders strong.#4ΟΙ Business Update 02 Q1 was a record-breaking quarter.#5Adjusted Free Cash Flow Fig 01 ΟΙ Business Update 02 In Q1 2021, we generated $151 million in adjusted free cash flow - an increase of $441 million from Q1 2020. $200M 44% adjusted free cash flow margin Adjusted free cash flow and adjusted free cash flow margin are defined as cash flow from operating activities, plus cash paid for employer taxes related to stock-based compensation, less cash used to purchase property and equipment. Please see the appendix for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. $100M ($100M) ($200M) ($300M) ($290M) Q1 2020 +$441M | $151M I 44% ADJUSTED FREE CASH FLOW MARGIN Q1 2021 | | | | |#6Business Update 02 In Q1 2021, we grew revenue by 49% year-over-year, generating $341 million in revenue across our government and commercial segments. 49% revenue growth year-over-year Revenue Fig 02 $400M $300M $200M $100M $229M +49% $341M Q1 2020 Q1 2021 | | |#7Business Update 02 In Q1 2021, we grew billings by 248% year-over-year to $362 million, resulting in higher than expected cash flow. Billings Fig 03 $400M 248% billings growth year-over-year Billings is defined as revenue plus the change in contract liabilities for the period presented. Please see the appendix for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. $300M $200M $100M $104M | +248% $362M Q1 2020 Q1 2021 | | |#8Business Update 02 Our duration-adjusted commercial deal value grew by 76% year-over-year. H Total deal value is the total remaining deal value of contracts that have been awarded by our government and commercial customers and includes existing contractual obligations and unexercised contract options available to those customers. Total deal value presumes the exercise of all contract options and no termination of contracts; however, the majority of our contracts are subject to termination for convenience provisions and there can be no guarantee that contracts are not terminated or that contract options will be exercised. Commercial deal value growth on a constant duration basis represents the growth of total deal value from commercial customers divided by dollar-weighted average commercial contract duration year-over-year.#9Business Update 02 In Q1 2021, our total US revenue grew by 81% year-over-year. US revenue is revenue from customers that have their headquarters located in the United States. NDC 0409-6625-02 contains sodium bicarbonate, 84 mg 2 cale) pH 7.8 (7.0 to 8.5). Single-dose Contains no bacteriostat. Discard sportion Do not resterilize. For es use. Usual dose: See insert Sterile Use only if clear and seal is intact damaged. Do not use the injection d s precipitate 0059 (4/04) • EV EXP 1JUN2014 Hospira eólica cesa ^^#10Business Update 02 Apollo for Edge Al is enabling the US government to operationalize Al at scale: upgrade the software, upgrade the sensor, upgrade the effects chain. | ठ | | | -○#110 Business Update 02 The same innovations apply to the commercial sector: Al models on factory floors, detecting on-land risks from space, and enabling predictive maintenance at the edge. RUKA ms Aerospace WILL#12Business Update 02 In Q1 2021, our total US revenue grew by 81% year-over-year and commercial opportunities in the US and the UK have increased by 2.5x since February 2021. In the same period, active commercial pilots have more than doubled. We consider a pilot to be active when a technical exchange agreement has been signed by a prospective customer and we have begun working on implementation. NDC 0409-6625-02 contains sodium bicarbonate, 84 mg 2 Contains no bacteriostat Discat calc pH 7.8170 to 851 Single-dose anton Do not resterilize For use Usual dose See insert Stre nic Use only if clear and seal is intact maged Do not use the injection fa precipitate 009 (4/04) Hospira EXP 1JUN2014 edlica cesa ^^#13ΟΙ Business Update 02 Our platforms serve as the modern operating system for the enterprise ― including companies of all sizes and at all stages.#14ΟΙ T Business Update 02 Lilium, a revolutionary eVTOL transportation company, will use Foundry to connect design, engineering, procurement, testing, production, quality, logistics, and in-service operations. 7 READ MORE#15ΟΙ T Business Update 02 Sarcos is using Foundry for industrials and manufacturing, and infusing Apollo for Edge Al into their exoskeletons. 7 READ MORE 10 SARGOD' $#16ΟΙ Business Update 02 We are investing deeply in Western innovation. 20+ y Pt of oly 55 KD 2010 Quad#17Total Government Growth Fig 04 $208M Business Update 02 In parallel, our government business continues to grow quickly. In Q1 2021, we grew government revenue by 76%, fueled largely by 83% growth in the US government business. $200M $150M $100M $50M $118M +76% | | | Q1 2020 Q1 2021 |#18ΟΙ Business Update 02 In Q1 2021, we were awarded a five-year contract with a total value of up to $89.9 million by the National Nuclear Security Administration to provide the operational platform for the SAFER project. → Managing safety analytics, forecasting, and evaluation → Supporting efficient allocation of resources to prioritize safety and manage nuclear security → Enabling a granular security model 7 READ MORE#19ΟΙ T Business Update 02 U.S. SPACE COMMAND In Q1 2021, Palantir's software was leveraged in the Global Information Dominance Experiment, enabling all 11 DoD Combatant Commands to generate globally integrated, strategic decision advantage from intelligence, operations, logistics and supply data advanced by AI / ML. 7 READ MORE U.S. NORTHERN COMMAND FUNCTIONAL COMBATANT COMMAND U.S. SPECIAL OPERATIONS COMMAND U.S. TRANSPORTATION COMMAND U.S. STRATEGIC U.S. SOUTHERN COMMAND COMMAND U.S. CYBER COMMAND U.S. EUROPEAN COMMAND U.S. AFRICA COMMAND U.S. CENTRAL COMMAND U.S. INDO-PACIFIC COMMAND#20Business Update 02 In Q1 2021 alone, we hired nearly 50 new salespeople. $5.4B in total remaining deal value + IDIQ awards as of the end of Q1 2021 IDIQ refers to the value of government contracts where the funding of such contracts ― also known as indefinite delivery, indefinite quantity (IDIQ) contracts - has not yet been determined and is not guaranteed. АПИШИН#21Business Update 02 Our channel partnerships continue to accelerate with complementary independent software vendors ("ISVs"), hyperscalers, and global system integrators ("GSIS") - across both government and commercial segments. Independent software vendors IBM booked first customer within 16 days of the product's General Availability ("GA") Hyperscalers Building our products into reference architectures and going to market with joint offerings across verticals and functional areas Global system integrators Building targeted Archetypes and accelerating time to market, with 15 GSIs working adjacent to our products Government Sls Enabling the hardware platforms of traditional defense contractors with Apollo for Edge Al 7 GET STARTED 7 GET STARTED 7 GET STARTED 7 GET STARTED#220 Business Update 02 We are enabling channel partners to go to market with battle-tested software platforms - instead of marketecture diagrams and false promises. Marketecture YEAR 1 Discussions Our platforms DAY 1 Onboarding DAYS 2+ ✓ Operational use in production YEAR 2 YEAR 3+ YEAR? Architecture design Custom development Promise of production Time periods are for illustration only and may not be representative of the actual experience of each organization.#23ΟΙ Palantir Unlock 7 GET STARTED We are emancipating data from legacy systems and proprietary data models, and delivering it in any open-source format - at no cost to Western companies that are: Core to the economy → Employ large numbers of people Crucial to the restart T Business Update 02#24Business Update 02 Thank you to Palantirians. Palantir Palant QPla Palagit#25ΟΙ ↑ Section 03 Q1 2021 Financial Update#26Financial Update 03 Q1 2021 highlights 49% revenue growth year-over-year $229M $341M $117M adjusted operating income, up $133M year-over-year, representing a 34% adjusted operating margin Q1 2020 Q1 2021 $117M $151M adjusted free cash flow, up $441 million year-over-year, representing a 44% adjusted free cash flow margin $151M ($16M) ($290M) Q1 2020 Q1 2021 Q1 2020 Q1 2021 Adjusted operating income (loss) and adjusted operating margin excludes stock-based compensation and related employer payroll taxes. Please see the appendix for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures.#27Financial Update 03 In Q1 2021, we grew revenue by 49% - ahead of prior guidance of 45%. $800M annualized revenue run rate from US customers Annualized revenue run rate from US customers is the product of Q1 2021 revenue from US customers, multiplied by four. Revenue Fig 06 $400M $300M $200M $100M $229M +49% $341M Q1 2020 Q1 2021 | | |#28$118M Financial Update 03 Our government business generated $208 million in revenue in Q1 2021, up 76% year-over-year - with 83% growth from US government customers. Total Government Growth Fig 07 $200M +76% $208M $150M $100M $50M | | | Q1 2020 Q1 2021 |#29Total Commercial Growth Fig 08 Financial Update 03 Our commercial business generated $133 million in revenue in Q1 2021, up 19% year-over-year - with 72% growth from US commercial customers. $150M $100M $50M $111M +19% $133M Q1 2020 Q1 2021 | | |#300 Financial Update 03 We ended Q1 2021 with $2.8 billion in total remaining deal value, up 40% year-over-year. 15 Deals worth $5 million or more 6 Deals worth $10 million or more 3.7 years Average contract duration 4.6 years Average contract duration of commercial customers Value of deals signed refers to total contract value that have been awarded by our government and commercial customers and includes existing contractual obligations and unexercised contract options available to those customers. Dollar-weighted average contract duration represents the length of time we expect to generate revenue on average, including existing contractual obligations and assumes that our customers will exercise all of the contractual options available to them and is subject to change as we enter into new contracts or if customers terminate for convenience. Dollar-weighted contract duration is calculated on a dollar-weighted basis to account for smaller deals.#31Financial Update 03 We added 11 new commercial customers. Revenue per customer Fig 09 $10M | $8M $6M $4M $2M $6.3M +29% $8.1M TRAILING 12 MONTHS ENDED MARCH 31, 2020 TRAILING 12 MONTHS ENDED MARCH 31, 2021 I | Average revenue per top 20 customers Fig 10 $40M $30M $20M $10M $27.0M +34% TRAILING 12 MONTHS ENDED MARCH 31, 2020 $36.1M TRAILING 12 MONTHS ENDED MARCH 31, 2021 We define a customer as an organization from which we have recognized revenue during the trailing twelve month period. Average revenue per customer is calculated as total revenue for the trailing twelve-month period divided by the number of customers from which we recognized that revenue. Average revenue from our top twenty customers for each period presented is the average revenue recognized from the twenty customers with the greatest amount of revenue recognized in each respective period. | | | |#32Financial Update 03 In Q1 2021, our adjusted gross margin grew to 83% - and contribution margin grew to 60%. Adjusted gross margin Fig 11 85% 80% 75% 70% 75% Q1 2020 83% Contribution margin Fig 12 60% о 55% Q1 2021 50% 45% 40% 41% Q1 2020 Adjusted gross margin excludes stock-based compensation. Contribution margin is defined as revenue less cost of revenue and sales and marketing expenses, excluding stock-based compensation, divided by revenue. Adjusted gross margin and contribution margin are non-GAAP financial measures. Please see the appendix for reconciliations of these non-GAAP financial measures to the most directly comparable GAAP measures. 60% Q1 2021#33Financial Update 03 In Q1 2021, we generated $117 million in adjusted operating income - representing an adjusted operating margin of 34%, ahead of prior guidance of 23%. Adjusted operating income (loss) $150M $100M | $50M +$133M ($50M) ($16M) Q1 2020 $117M Fig 13 34% ADJUSTED OPERATING MARGIN Q1 2021 | | |#34Adjusted Free Cash Flow Fig 05 ΟΙ Financial Update 03 In Q1 2021, we generated $151 million in adjusted free cash flow - representing an adjusted free cash flow margin of 44%. $200M $100M ($100M) ($200M) ($300M) ($290M) Q1 2020 +$441M $151M 44% ADJUSTED FREE CASH FLOW MARGIN Q1 2021 | | | | |#35ΟΙ Financial Update 03 Looking ahead Q2 2021 FULL YEAR 2021 → Revenue growth of 43%, or $360 million → Adjusted operating margin of 23% → Raising adjusted free cash flow guidance from breakeven to in excess of $150 million LONG-TERM ↑ Revenue growth of 30%+ for this year and the next four years 7 WATCH VIDEO#36ΟΙ ↑ Section 04 Appendix A#370 Appendix A Reconciliation of Cash Flow from Operating Activities to Adjusted Free Cash Flow and Adjusted Free Cash Flow Margin Adjusted free cash flow margin is calculated as adjusted free cash flow divided by revenue. ($ THOUSANDS) Cash Flow from Operating Activities Add: Cash Paid for Taxes Related to Stock-Based Compensation Less: Cash Used to Purchase Property and Equipment Adjusted Free Cash Flow Adjusted Free Cash Flow Margin Q1 2020 Q1 2021 $ (287,184) $ 116,881 $ $ 34,802 $ (3,016) $ (708) $ (290,200) $ 150,975 (127%) 44%#380 Appendix A Reconciliation of Loss from Operations to Adjusted Operating Income (Loss) and Adjusted Operating Margin [Excluding Stock-Based Compensation and Related Employer Payroll Taxes] Adjusted operating margin is calculated as adjusted operating income (loss) divided by revenue. ($ THOUSANDS) Loss from Operations Add: Stock-Based Compensation Employer Payroll Taxes Related to Stock-Based Compensation Adjusted Operating Income (Loss) Adusted Operating Margin Q1 2020 Q1 2021 $ (70,185) $ (114,014) $ 54,107 $ 193,731 $ $ 36,866 $ (16,078) $ 116,583 (7%) 34%#390 Appendix A Reconciliation of Gross Profit to Adjusted Gross Profit and Adjusted Gross Margin [Excluding Stock-Based Compensation] Adjusted gross margin is calculated as adjusted gross profit divided by revenue. ($ THOUSANDS) Gross Profit Add: Stock-Based Compensation Adjusted Gross Profit Adjusted Gross Margin Q1 2020 Q1 2021 $ 165,033 $ 267,123 $ 8,068 $ 15,977 $ 173,101 $ 283,100 75% 83%#400 Appendix A Reconciliation of Loss from Operations to Contribution Margin ($ THOUSANDS) Loss from Operations Add: Research and Development Expenses, Excluding Stock-Based Compensation General and Administrative Expenses, Excluding Stock-Based Compensation Stock-Based Compensation Contribution Contribution Margin Q1 2020 Q1 2021 $ (70,185) $ (114,014) $ 50,768 $ 60,597 $ 58,221 $ 63,975 $ 54,107 $ 193,731 $ 92,911 $ 204,289 41% 60%#410 Appendix A Reconciliation of Revenue to Billings ($ THOUSANDS) Revenue Plus: change in contract liabilities Billings Q1 2020 Q1 2021 $ 229,327 $ 341,234 $ (125,473) $ 20,567 $ 103,854 $ 361,801#42ΟΙ ↑ Section 05 Appendix B#43Ô Appendix B In the US and the UK, we have had the privilege to help the government combat the pandemic. Example 01 Built a no-code PPE distribution application in Foundry in two days fia Example 02 Used software-defined data integration to manage capacity and inventory across 6,000 hospitals within weeks Vou BYD CARE Single-use Surgical Mask (DVD) SINGLE-USE SURGICAL MASK BYD CARE SINGLE-USE SURGICAL MASK BYD SURGICAL E-US BY ANGLEUSE MASK#44ΟΙ Appendix B Congratulations to the NIH's National Center for Advancing Translation Sciences for the ongoing work in combatting the long-term effects of COVID-19 - and for reaching a milestone of 1.5+ million COVID-19 patients in their secured data asset. 7 READ MORE 7 WATCH DEMO#45ΟΙ Appendix B Congratulations to the World Food Programme for winning the 2021 Franz Edelman Award for their work delivering food assistance amidst the pandemic. 7 READ MORE 50 KG PETIT MIL LOCAL PROGRAMME ALIMENTAIRE MONDIAL vote WFP wfp.org Date de La Campagne 201 Date De Péremption : 1021 Fournisseur ENAZIF Origine: BURKINA FASO#46ΟΙ Appendix B SW.4.2 Congratulations to PEO EIS's Army Vantage program, part of the Army Data and Analytics Platforms portfolio, for having been named a winner of the American Council for Technology - Industry Advisory Council (ACT-IAC) 2021 Innovation Awards. 7 READ MORE ΕΓ gr RMY Getac