#1Q Palantir A#2WRITTEN DISCLAIMER These materials form a part of the live presentation at which they are being shown and are intended to provide an introduction to and overview of Palantir Technologies Inc. (including subsidiaries as may be applicable, referred to herein as the "Company," "we," us," and "our") and do not purport to contain all relevant information about the Company. Forward-Looking Statements This presentation contains forward-looking statements. These statements may relate to, but are not limited to, expectations of future operating results or financial performance, growth opportunities, the calculation of certain of our key financial and operating metrics, plans for future operations, 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 "may," "will," "should," "could," "expect," "plan," anticipate," "believe," "estimate, "predict," "intend," "potential," "would," "continue," "ongoing" or the negative of these terms or other comparable terminology. 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 based on information available at the time those statements are made and/or management's good faith beliefs and assumptions as of that time with respect to future events and are subject to risks and uncertainties that could cause actual performance or results to differ materially from those expressed in or suggested by the forward-looking statements. In light of these risks and uncertainties, the forward-looking events and circumstances discussed in this presentation may not occur and actual results could differ materially from those anticipated or implied in the forward-looking statements. These risks and uncertainties include our expectations regarding financial performance, including but not limited to our expectations regarding revenue, costs of revenue, and operating expenses and our ability to achieve or maintain profitability, our ability to successfully execute our business and growth strategy, the sufficiency of our cash and cash equivalents to meet our liquidity needs; the demand for our platforms in general; our ability to increase our number of new customers and revenue generated from customers; our expectations regarding the future contribution margin of our existing and future customers; our ability to become profitable in the future; our ability to sustain our revenue growth rate in the future; our long and unpredictable sales cycle; our ability to retain and expand our customer base; the fluctuation of our results of operations and our key business measures on a quarterly basis in future periods; the seasonality of our business; the complexity and lengthy implementation process for our platforms; our ability to successfully develop and deploy new technologies to address the needs of our customers; our ability to maintain and enhance our brand and reputation; news or social media coverage of Palantir, including but not limited to coverage that presents, or relies on, inaccurate, misleading, incomplete, or otherwise damaging information; and any breach or access to customer or third-party data. Additional information regarding these and other risks and uncertainties that could cause actual results to differ materially from the Company's expectations is included in our registration statement on Form S-1, as amended, filled with the Securities and Exchange Commission ("SEC"). Except as required by law, we do not undertake any obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future devel- opments or otherwise. 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. No representation is made as to the completeness or accuracy of any statements contained via links or references to media articles. No content from such links or media articles is incorporated by reference herein and we have not independently verified any data from such sources. QPalantir#3WRITTEN DISCLAIMER CONT. We have filed a registration statement (including a preliminary prospectus) on Form S-1 (File No. 333-248413) with the SEC for the offering to which this communication relates. Such registration statement has not yet become effective. The securities proposed to be offered pursuant to such registration statement may not be sold, nor may offers to buy be accepted, prior to the time the registration statement becomes effective. You should read the preliminary prospectus in that registration statement and other documents we have filed with the SEC for more complete information about the Company and this offering. You may get these documents for free by visiting EDGAR on the SEC website at www.sec.gov.When available, a copy of the prospectus related to the registration statement may be obtained from Palantir Technologies Inc., c/o Investor Relations, 1555 Blake Street, Suite 250 Denver, Colorado 80202 or by email at [email protected]. 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. The 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 our platforms or this proposed offering. These materials are not an offer to issue or sell or the solicitation of an offer to buy any of our securities and do not constitute any recommendation regarding an investment decision by us or our management. There shall not be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities law of any such state or jurisdiction. Non-GAAP Financial Measures and Unaudited Financial Information We measure and use various financial and operational data about our business, including our consolidated financial statements, which are prepared and presented in accordance with GAAP, as well as several non-GAAP financial measures. There are inherent limitations associated with these non-GAAP measures. Because these measures are not prepared or presented in accordance with GAAP, other companies should be expected to define and calculate these measures in different ways and using different methodologies than us. A reconciliation of these measures to the most directly comparable GAAP measures is included in the Appendix to this presentation. All interim period financial information and results included in this presentation, as well as all financial information and results for any period during the year ended December 31, 2020, are unaudited. Results presented for interim peri- ods in 2020 are not necessarily indicative of expected results for the year ending December 31, 2020, nor are they guarantees of future performance or results. Accordingly, you are cautioned not to place significant reliance on these estimates and should view them as subject to change. Q Palantir#4PALANTIR AT A GLANCE $743M FY 2019 Total Revenue QPalantir 49% H1 2020 Revenue Growth 78% H1 2020 Gross Margin, Excluding Stock-Based Compensation#5OUR PLATFORMS: GOTHAM AND FOUNDRY GOTHAM QPalantir Soldiers can plan and execute complex while incorporating the latest intelligence data Analysts can track vessel movements they stopped at suspicious porta FOUNDRY DO DO A O As more employees return to work in the wake of the onset of the pandemic companies can simulate the allocation and distribution of personal protective equipment across geographically depersed workforces. These simulations can account for different variables, such as evolving operational needs supply chain inventory, and data regarding local cases of the vious#6APOLLO: DELIVERING RAPID UPGRADES AND SAAS ECONOMICS ACROSS HETEROGENOUS TARGETS AVERAGE WEEKLY PLATFORM UPGRADES QPalantir 20,000 02 2019 41,000+ 02 2020#7KEY TRENDS SHAPING OUR INDUSTRY AND OUR CUSTOMERS ALPHA VS. BETA QPalantir Customers need to differentiate themselves to generate Alpha. Packaged software makes companies more similar, not different. Industry standard solutions help companies keep up, but not get ahead. We create differentiation with our software platforms.#8OUR HISTORY We have built two principal software platforms, Palantir Gotham and Palantir Foundry. Our customers pay us to use the software platforms we have built. Today, our software is used by customers across 36 industries and by users in more than 150 countries. Q Palantir $800M $700M $600M $500H $400M $300M $200M $100M Founded Released Palantir Gotham Surpassed $100M in revenue Surpassed 100 airlines on Skywise Surpassed $500M in revenue Released Palantir Foundry 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019#9KEY TRENDS SHAPING OUR INDUSTRY AND OUR CUSTOMERS BUILD VS. BUY QPolantir In search of Alpha, institutions often attempt to build it themselves. Consultants and IT services attempt to stitch together packaged and open-source software, promising differentiation. We primarily compete with the customer's attempt to build something from scratch, as these efforts often take too long, are too expense, and do not work. Our platforms can deliver on these big promises quickly and with scale.#10WE ACCELERATED START TIME WITH CUSTOMERS BY 5X • ERP Suite: from data access to a working ontology in 4 days. This used to take us a month and a half. • Multitenancy: improved our average customer onboarding time to 14 days, 5x faster than Q2 2019. We recently onboarded a customer in just 1 hour and 45 minutes. QPalantir#11DISPARATE, SILOED SYSTEMS CREATE COMPLEXITY Analyzing data from disparate systems is often expensive and inefficient. POINT SOLUTION QPalantir DATA LAKE CUSTOM APPLICATION DATA LAKE POINT SOLUTION DATA LAKE CUSTOM APPLICATION#12CASE STUDY 1: EUROPEAN BANK Leveraging Palantir, the bank's compliance division has become a data-driven organization and has the largest data lake in the bank for expansive data connectivity. PALANTIR DATA PLATFORM COMPLIANCE FRONT OFFICE RISK INTERNAL AUDIT QPalantir 2016 1 USE CASE 2016 2017 2018 2019 2020 70+ USE CASES 2020#13CASE STUDY 2: EUROPEAN BANK Today, thousands of users rely on Foundry for dozens of use cases in many verticals across the group, including audit, compliance, retail banking, corporate banking, risk management, and more. AUDIT COMPLIANCE RETAIL BANKING CORPORATE BANKING RISK MANAGEMENT QPalantir UNIQUE WEEKLY USERS 10.000 8.000 4,000 2,000 2018 1 USE CASE 1 BUSINESS UNIT 2018 60 USE CASES 7,000 WEEKLY USERS 2020 >10 BUSINESS UNITS 200+ POWER USERS#14OUR PLATFORMS ARE DEPLOYED TO 36 INDUSTRIES AROUND THE WORLD GOVERNMENT COMMERCIAL 2008 QPalantir 2009 2010 2011 2012 2013 2015 .. 2017 2018 2019 . & De#15OUR PLATFORMS ARE USED BY INDIVIDUALS IN OVER 150 COUNTRIES 40% Of 2019 Revenue From U.S. Customers 60% Of 2019 Revenue From Non-U.S. Customers GOVERNMENT 47% QPalantir OF 2019 REVENUE COMMERCIAL 53%#16ACCELERATING GROWTH ACROSS BOTH COMMERCIAL AND GOVERNMENT SEGMENTS ANNUAL REVENUE H1 REVENUE - REVENUE GROWTH GOVERNMENT $400M $300M $200M $100M Y/Y Growth QPalantir $255M 2018 5346M $146M 2019 35% 5258M H1 2020 76% 76% REVENUE GROWTH OVER HI 2019 COMMERCIAL $400M $300M $200M $100M 50 Y/Y Growth $340M 2018 $397M $177M 2019 17% $224M 2020 27% 27% REVENUE GROWTH OVER HI 2019#17OUR EXISTING CUSTOMERS TEND TO INVEST MORE IN OUR PRODUCTS OVER TIME TOTAL REVENUE CUSTOMER NET GROWTH H1 2019 REVENUE $500M $400M $300M $200M $100M SO QPalantir $323M 2019 H1 2020 REVENUE SIAM EXISTING CUSTOMER NET GROWTH $14M NEW CUSTOMER NET GROWTH $481M H1 2020#18IN 2019, OUR AVERAGE REVENUE PER CUSTOMER WAS $5.6M, AND AVERAGE REVENUE OF OUR TOP 20 CUSTOMERS WAS $24.8M ANNUAL REVENUE H1 REVENUE - REVENUE GROWTH AVERAGE REVENUE OF TOP 20 CUSTOMERS $25M $20M $15M $10M SSM SOM $1.2M QPalantir $3.1M $5.8M $6.9M $8.2M $12.6M $17.7M $19.4M $21.7M $24.8M $11.0M 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 $15.0M 2020 36% GROWTH OVER HI 2019 2019 AVERAGE DURATION TOP 20 CUSTOMERS 6.6 Years 2019 AVERAGE REVENUE PER CUSTOMER $5.6M COMPOUND ANNUAL GROWTH RATE OF AVERAGE REVENUE PER CUSTOMER FROM 2009-2019 30%#19INCREASED PRODUCT LEVERAGE YIELDING EXPANDING GROSS MARGINS GROSS MARGIN — GROSS MARGIN, EXCLUDING STOCK-BASED COMPENSATION 100% 90% 80% 70% 50% 30% 20% QPalantir 73% 69% 01 2019 70% 68% 02 2019 70% 66% 03 2019 72% 67% 04 2019 75% 72% 01 2020 80% 73% 02 2020#20WE SUBSTANTIALLY IMPROVED CONTRIBUTION MARGIN, FROM 14% IN Q1 2019, TO 41% IN Q1 2020 AND 55% IN Q2 2020 We define contribution margin as gross profit less sales and marketing expenses, each excluding stock-based compensation, divided by revenue. - CONTRIBUTION MARGIN 60% 50% 20% 10% ON QPalantir 14% 01 2019 18% 02 2019 15 % 03 2019 33% 2019 01 2020 55% 02 2020#21UPFRONT INVESTMENT YIELDS CUSTOMER INDEPENDENCE AND CONTRIBUTION MARGIN EXPANSION SCALE 76% QPalantir ACQUIRE % OF 2019 REVENUE EXPAND 24% ACQUIRE PHASE 2019 Cohort (10.900%) 2019 ■ HI 2020 EXPAND PHASE 2019 Cohort 2019 35% HI 2020 SCALE PHASE 2019 Cohort Contribution margin for top 25% of customers in 2010 was 17% and for the same customers in H1 2020 was 89% 68% 55% 2019 2020 TOTAL 21% 2019 H1 2020#22ACQUIRE PHASE We define a customer or potential customer in the Acquire phase if, as of the end of a given calendar year, we have recognized less than $100,000 in revenue from the customer that year. In 2019, customers in the Acquire phase yielded a contribution loss of $65.4 million. In H1 2020, those same customers generated $18.8 million in revenue, which yielded a contribution loss of $13.9 million. QPalantir REVENUE 50.6M (565.4M) 2019 CONTRIBUTION $18.8M ($13.9M) 2020#23EXPAND PHASE We define a customer or potential customer in the Expand phase as any customer from which we have recognized more than $100,000 in revenue in a calendar year and whose account had a negative contribution margin, as determined as of the end of the year. In 2019, we generated $176.3M in revenue from customers that were in the expand phase as of the end of that year, with a contribution margin of (43% ). In H1 2020, those same customers generated $160.5M of revenue with a contribution margin of 35%. QPalantir REVENUE CONTRIBUTION MARGIN $176.3M 2019 (43%) CONTRIBUTION MARGIN $160.5M HI 2020 35% CONTRIBUTION MARGIN#24SCALE PHASE We define a customer in the Scale phase as any customer from which we have recognized more than $100,000 in revenue in a calendar year and whose account had a positive contribution margin as determined at the end of the year. In 2019, we generated $565.7M in revenue from customers in the Scale phase with a contribution margin of 55%. In H1 2020, those same customers generated $296.3M in revenue with a contribution margin of 68%. Q Palantir REVENUE $565.7M CONTRIBUTION MARGIN 55% CONTRIBUTION MARGIN H1 68% CONTRIBUTION MARGIN#25SCALE PHASE: TOP CUSTOMER QUARTILE The top 25% of our Scale phase customers, as measured by contribution margin at the end of 2019, generated $101.6M of revenue in H1 2020, with a contribution margin of 89%. QPalantir REVENUE CONTRIBUTION MARGIN $110.7M 2019 87% CONTRIBUTION MARGIN $101.6M H1 2020 89% CONTRIBUTION MARGIN#26CASE STUDY 3: FORTUNE 20 CUSTOMER We started working with a Fortune 20 company in 2019, beginning with a two-week pilot focused on improving order workflows and compliance. Within six months, 500 operational users generated $180M in operational value across multiple use cases. The customer proceeded to sign a multi-year deal to leverage our software in moving their entire data infrastructure to the cloud, as well as streamlining their technical infrastructure by identifying and deprecating competing platforms. The customer is one of the first we onboarded with our direct sales team. While this initial deal is focused on infrastructure, we are pursuing several additional use cases in other functional areas. QPalantir • 500 ● $180M OPERATIONAL USERS REALIZED OPERATIONAL VALUE#27CASE STUDY 4: UNITED STATES DEPARTMENT OF DEFENSE In 2008, U.S. Army special forces commanders in Iraq and Afghanistan began using our software to make decisions when lives were on the line. Today, U.S. Army commanders use Palantir to keep one million troops ready for their missions, and all 31 brigades use our software for intelligence analysis. The U.S. Navy, Air Force, and Marines, among other defense agencies, all use Palantir as well. QPalantir SOLDIERS AND THOUSANDS OF 1M PIECES OF EQUIPMENT REFLECTED IN PROJECT VANTAGE • 10,000+ • 31 USERS ON PROJECT VANTAGE BRIGADES USING OUR SOFTWARE FOR INTELLIGENCE ANALYSIS#28OUR COMMERCIAL BUSINESS MAY BE YOUNG, BUT OUR US GOVERNMENT BUSINESS IS EVEN YOUNGER PRE 2377 REVENUE POST 2377 REVENUE $BOM 570M 560M 550M $40M $30M 520M $10M 50 QPalantir SOM 2008 2009 Palantir trains with 5/2 Stryker Brigade, deploys with Army Special Forces in Iraq 50.6M 2009 $2.5M 2010 $2.3M 2011 2012 82nd Airborne division turns to Palantir to counter roadside bombing epidemic $5.3M 2012 requested by Army Special Forces leading international. coalition against ISIS $9.1M 2015 Palantir platform 2013 $6.9M 2014 $8.9M 2015 2016 Palantir files and wins lawsuit against the Army before the U.S. Court of Federal Claims $5.9M 2016 2018 Palantir's landmark win against the Army upheld by the U.S. Court of Appeals for the Federal Circuit $5.9M 2017 $6.6M 2018 $53.7M 2019 $78.8M HI 2020#29KEY FINANCIAL HIGHLIGHTS SCALE $743M 2019 Revenue MARGIN PROFILE 21% 2019 Contribution Margin QPalantir $481M H1 2020 Revenue 55% Q2 2020 Contribution Margin GROWTH 25% 2019 Revenue Growth 3% H1 2020 Operating Margin, Excluding Stock-Based Compensation 49% H1 2020 YOY Revenue Growth LIQUIDITY $1.5B Cash and Cash Equivalents at June 30, 2020 Operating margs, encluding stock-based compensation and contribution margin are son-GAAP#30CONSISTENT REVENUE GROWTH SINCE LAUNCH OF FOUNDRY ANNUAL REVENUE HI REVENUE - REVENUE GROWTH $800M 5700M $600M $500M $400M $300M $200M $100M 50 Y/Y Growth QPalantir $466M 2016 $515M 2017 11% $595M 2018 16% $743M $323M 2019 25% $481M H1 2020 49% 49% REVENUE GROWTH OVER R1 2019.#31IMPROVING OPERATING LEVERAGE OPERATING INCOME / (LOSS). EXCLUDING STOCK-BASED COMPENSATION OPERATING INCOME / (LOSS) $100M 50 ($100M) ($200M) ($300M) ($400M) ($500M) 1500RMI ($700M) QPalantir (63%) 2018 (45%) 2019 OPERATING MARGIN. EXCLUDING STOCK-BASED COMPENSATION 13% 2020#32SELECTED BALANCE SHEET INFORMATION (in thousands) Cash and cash equivalents Restricted cash, current and noncurrent Total assets Deferred revenue, current and noncurrent Customer deposits, current and noncurrent Debt, noncurrent, net QPalantir $ As of December 31, 2019 1,116,342 $ 1,079,154 $ 150,493 1,430,965 2018 409,094 248,018 I 322,808 1,594,025 263,135 531,676 396,065 As of June 30, 2020 (unaudited) 1,497,591 139,424 1,892,360 289,714 398,873 297,576#33REVENUE (CONT'D) 100% of customers are on either Gotham or Foundry (or both) G GOTHAM A APOLLO QPalantir CLOUD F FOUNDRY multipass-group-aum / multipass-group-sum 3 versions 1 stale install ON-PREMISES (60) Remote Installs: 2 installs (1 versions 94.8% CLASSIFIED/AIR-GAPPED NETWORKS#34REVENUE VISIBILITY $2.6B IDIQ Contract Awards as of 6/30/2020 QPalantir GOVERNMENT DEAL VALUE ● EXERCISED $1.28 $18 $800M $600M $400M $200M $0 CONTRACTUAL OPTIONS 6671M $189M $482M 2018 $1.18 $564M $579M 2019 $1.2B $604M $559M H1 2020#35REVENUE VISIBILITY 6.6 Yrs Average Duration of Top 20 Customers in 2019 $24.8M 2019 Average Revenue of Top 20 Customers QPalantir 3.5 Yrs Average Scheduled Revenue for Outstanding Contracts as of June 30, 2020¹ $5.6M 2019 Average Revenue Per Customer#36CAPITAL STOCK PRICE HISTORY Year ended December 31, 2020 January February March April May June July August September (through September 1) QPalantir Per Share Sale Price Per Share Sale Price Low $ $ 5.45 $ $ 5.75 5.40 6.35 5.50 $ 5.08 $ 6.70 S $ 11.50 $ 11.00 $ 5.00 $ 4.50 $ 4.50 4.85 4.80 4.20 4.17 $ 4.40 $ 8.00 S $ $ S Volume-Weighted Average Price 5.21 5.08 5.21 4.93 4.96 4.62 5.34 7.31 9.17#37SHARE LOCK-UP • Substantially all holders are subject to lock-up. • Up to 20% of applicable shares and options freely tradable on listing day. . Remaining 80% released on third business day following release of FY 2020 earnings. • RSUS will not be subject to the lock-up period. QPalantir#38WE ESTIMATE THE TOTAL ADDRESSABLE MARKET FOR OUR SOFTWARE ACROSS THE COMMERCIAL AND GOVERNMENT SECTORS TO BE APPROXIMATELY $119 BILLION $56B TOTAL COMMERCIAL TAM Potential customers around the world (defined broadly as 6,000 companies with more than $500 million in annual revenue) x assumed annual contract value for each potential customer We estimate, based on data from International Data Corporation, that global spending in the subset of software categories that we believe our platforms address will be approximately $158 billion in 2020. QPalantir $63B TOTAL GOVERNMENT TAM Total spending across various functions of government x percentage of spending on software and consulting x capture opportunity#39LONG RANGE TARGET MODEL Gross Margin, Excluding Stock-Based Compensation Contribution Margin Operating Income /(Loss) Margin, Excluding Stock-Based Compensation QPalantir 2018 76% 14% 2019 71% 21% (63%) (45%) H1 2020 Target Model 78% >85% 48% 3% >70% >35%#40GOVERNMENT: THE MARKET WE ENGINEER INTO EXISTENCE QPalantir JADC2 2019 Al-enabled mission command 2018 Readiness, logistics, and back office functions Operations intelligence operations) 2010 Justice Cyber and Fraud 2009 Defense intelligence and 12 2007 All sources within the intelligence community 2003 HUMINT within the intelligence community#41COMMERCIAL: THE MARKET WE ENGINEER INTO EXISTENCE QPalantir 2020 Simulation, Digital twins, Low-code/No-code ERP, ML, Modeling Analytics 2017 Data platform#42O Automative Data Lineage Full Gra... Unknown PPE Excels 3 datasets Warranty 35 datasets Vehicles 48 datasets Manufacturing 134 datasets Dealership > Connected Vehic Modeled 2 datasets Parts 64 datasets COVID and Open. Write-back#43a a Int BR Monocle Tools Layout Undo/redo Clean Select Expand Color Find Remove Align Flow and Stand Assignment Information Q Q SFO gate_list sfo_gates_cleaned Layout Group Legend by color by color sfo_gates_transformed production Out-of-date Node color options sto flights > E- T B go g#44P ㅅ ㅅ ㄱ ㅓ#450 4 North Atlantic Ocean#46#47NON-GAAP FINANCIAL MEASURES We use contribution margin; gross profit, excluding stock-based compensation; gross margin, excluding stock-based compensation; sales and marketing expense, excluding stock-based compensation; and operating income (loss). excluding stock based compensation 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, our contribution marginc gross profit, excluding stock based compensation: gross margin, excluding stock-based compensation; sales and marketing expense, excluding stock-based compensation, and operating income (loss), excluding stock-based compensation 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 contribution margin; gross profit, excluding stock-based compensation; gross margin, excluding stock-based compensation; sales and marketing expense, excluding stock-based compensation; and operating income (loss), excluding stock-based compensation 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 contribution margin: gross profit, excluding stock-based compensation: gross margin, excluding stock-based compensation; sales and marketing expense, excluding stock-based compensation; and operating income (loss), excluding stock-based compensation in conjunction with the most directly comparable GAAP financial measures, QPalantir#48RECONCILIATION OF GROSS PROFIT TO GROSS PROFIT, EXCLUDING STOCK-BASED COMPENSATION ($m) Gross Profit Add: Stock-Based Compensation Gross Profit, Excluding Stock-Based Compensation Gross Margin, Excluding Stock-Based Compensation Q Palantir FY 2018 $430.0 $19.6 $449.6 76% Q1 2019 $101.5 $106.4 73% Q2 2019 $119.7 $124.2 70% Q3 2019 $125.5 $132.7 70% Q4 2019 $153.5 $11.4 $164.8 72% FY 2019 $500.2 $27.9 $528.1 71% Q1 2020 $165.0 $8.1 $173.1 75% Q2 2020 $183.5 $17.8 $201.3 HiEDEd $348.5 $374.4 ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliatio of the selected non-GAAP financial measures to the most comparable GAAP Tinancial measure#49RECONCILIATION OF SALES AND MARKETING EXPENSE TO SALES AND MARKETING EXPENSE, EXCLUDING STOCK-BASED COMPENSATION ($m) Sales and Marketing Expense Less: Stock-Based Compensation Sales and Marketing Expense, Excluding Stock-Based Compensation Sales and Marketing Expense, Excluding Stock-Based Compensation as % of Revenue Q Palantir Q1 2019 Q2 2019 $107.1 $21.5 $85.6 58% $110.5 $18.9 $91.7 52% Q3 2019 $119.7 $15.9 $103.8 Q4 2019 $112.9 $23.0 $89.9 39% Q12020 $98.7 $18.5 $80.2 35% Q2 2020 $102.5 $39.9 $62.6 25% ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliatio of the selected non-GAAP financial measures to the most comparable GAAP financial measure#50RECONCILIATION OF OPERATING INCOME/ (LOSS) TO OPERATING INCOME/ (LOSS), EXCLUDING STOCK-BASED COMPENSATION ($m) Operating Income / Loss Add: Stock-Based Compensation Operating Income / (Loss), Excluding Stock-Based Compensation Operating Margin, Excluding Stock-Based Compensation Q Palantir 2018 ($623.4) $248.5 ($374.9) 2019 ($576.4) $242.0 ($334.5) (45%) Hidd ($169.3) $182.0 $12.6 ALL figures in reconciliation tables are unsudited. The tables present direct or indirect reconciliati of the selected non-GAAP financial measures to the most comparable GAAP financial measure#51RECONCILIATION OF LOSS FROM OPERATIONS TO CONTRIBUTION MARGIN ($m) Loss from Operations Add: 1 Research and Development Expenses ¹ General and Administrative Expenses Stock-Based Compensation Contribution Contribution Margin Q Palantir FY 2018 ($623.4) $213.4 $242.9 $248.5 $81.4 Q1 2019 ($144.7) $57.5 $58.9 $20.8 Q2 2019 ($140.1) $62.3 $56.4 $54.0 $32.5 18% Q3 2019 ($144.1) $60.8 $60.4 $51.8 $28.9 15% Q4 2019 ($147.5) $57.0 $88.0 $74.9 33% FY 2019 ($576.4) $237.6 $254.0 $242.0 $157.2 21% Q1 2020 ($70.2) $50.8 $58.2 $54.1 $92.9 41% Q2 2020 ($99.1) $61.1 $127.8 $138.7 55% Hidd ($169.3) $99.7 $119.3 $182.0 $231.6 48% 1 Excludes stock-based compensatio ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliations of the selected non-GAAP Tinancial measures to the most comparable GAAP financial measure#52RECONCILIATION OF OPERATING INCOME / (LOSS) TO OPERATING INCOME /(LOSS), EXCLUDING STOCK-BASED COMPENSATION ($m) Operating Income / (Loss) Add: Stock-Based Compensation FY 2018 Q Palantir ($623.4) $248.5 Operating Income / (Loss), Excluding Stock-Based Compensation ($374.9) Operating Margin, Excluding Stock-Based Compensation (63%) Q1 2019 Q2 2019 ($144.7) $58.9 ($85.8) (59%) ($140.1) $54.0 ($86.1) (49%) Q3 2019 ($144.1) $51.8 ($92.4) (48%) Q4 2019 ($147.5) ($576.4) $77.3 FY 2019 ($70.1) (31%) $242.0 ($334.5) (45%) Q1 2020 ($70.2) $54.1 ($16.1) Q2 2020 ($99.1) $127.8 $28.7 11% Hito ($169.3) $182.0 $12.6 ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliatic of the selected non-GAAP financial measures to the most comparable GAAP financial measure#53RECONCILIATION OF LOSS FROM OPERATIONS TO CONTRIBUTION MARGIN ($m) Loss from Operations Add: 1 Research and Development Expenses ¹ General and Administrative Expenses Stock-Based Compensation Contribution Contribution Margin Q Palantir FY 2018 ($623.4) $213.4 $242.9 $248.5 $81.4 Q1 2019 ($144.7) $57.5 $58.9 $20.8 Q2 2019 ($140.1) $62.3 $56.4 $54.0 $32.5 18% Q3 2019 ($144.1) $60.8 $60.4 $51.8 $28.9 15% Q4 2019 ($147.5) $57.0 $88.0 $74.9 33% FY 2019 ($576.4) $237.6 $254.0 $242.0 $157.2 21% Q1 2020 ($70.2) $50.8 $58.2 $54.1 $92.9 41% Q2 2020 ($99.1) $61.1 $127.8 $138.7 55% Hidd ($169.3) $99.7 $119.3 $182.0 $231.6 48% 1 Excludes stock-based compensatio ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliations of the selected non-GAAP Tinancial measures to the most comparable GAAP financial measure#54RECONCILIATION OF OPERATING INCOME / (LOSS) TO OPERATING INCOME /(LOSS), EXCLUDING STOCK-BASED COMPENSATION ($m) Operating Income / (Loss) Add: Stock-Based Compensation FY 2018 Q Palantir ($623.4) $248.5 Operating Income / (Loss), Excluding Stock-Based Compensation ($374.9) Operating Margin, Excluding Stock-Based Compensation (63%) Q1 2019 Q2 2019 ($144.7) $58.9 ($85.8) (59%) ($140.1) $54.0 ($86.1) (49%) Q3 2019 $51.8 Q4 2019 ($144.1) ($147.5) ($576.4) ($92.4) (48%) FY 2019 $77.3 $242.0 ($70.1) ($334.5) (31%) (45%) Q1 2020 ($70.2) $54.1 ($16.1) Q2 2020 ($99.1) $127.8 $28.7 11% H100 ($169.3) $182.0 $12.6 ALL figures in reconciliation tables are unaudited. The tables present direct or indirect reconciliatic of the selected non-GAAP financial measures to the most comparable GAAP financial measure#55Q Palantir A