Palantir Technologies Inc. Class A Common Stock (PLTR)

Pretax margin

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Earnings before tax but after interest (EBT) US$ in thousands 489,173 237,091 -361,027 -488,494 -1,179,030
Revenue US$ in thousands 2,865,510 2,225,010 1,905,870 1,541,890 1,092,670
Pretax margin 17.07% 10.66% -18.94% -31.68% -107.90%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $489,173K ÷ $2,865,510K
= 17.07%

The pretax margin of Palantir Technologies Inc. Class A Common Stock has shown a notable improvement over the past years. In December 2020, the pretax margin was at a concerning -107.90%, indicating high expenses relative to revenue. However, the company managed to significantly narrow this margin to -31.68% by December 2021, demonstrating initial progress in enhancing operational efficiency.

Further progress was seen in December 2022, with the pretax margin further improving to -18.94%, indicating continued efforts to control costs and increase profitability. The positive trend continued into December 2023, where the pretax margin turned positive at 10.66%, showcasing the company's ability to generate profits before taxes.

By December 2024, the pretax margin had expanded to 17.07%, indicating a strong performance in effectively managing costs and maximizing revenue. This upward trajectory suggests that Palantir Technologies Inc. Class A Common Stock has made significant strides towards achieving sustainable profitability and financial health.