Palantir Technologies Inc. Class A Common Stock (PLTR)

Pretax margin

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	503,581	430,282	321,254	229,507	162,061	-38,753	-245,792	-363,631	-522,058	-500,016	-467,555	-488,571	-521,325	-1,282,450
Revenue (ttm)	US$ in thousands	2,646,338	2,478,981	2,334,164	2,225,012	2,125,286	2,045,007	1,984,700	1,905,871	1,830,114	1,744,380	1,647,012	1,541,889	1,431,113	1,328,333
Pretax margin		19.03%	17.36%	13.76%	10.31%	7.63%	-1.90%	-12.38%	-19.08%	-28.53%	-28.66%	-28.39%	-31.69%	-36.43%	-96.55%

September 30, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $503,581K ÷ $2,646,338K
= 19.03%

The pretax margin of Palantir Technologies Inc. Class A Common Stock has shown a fluctuating trend over the past several quarters. The pretax margin steadily improved from negative levels in the first quarter of 2021 to reach a peak of 19.03% in the most recent quarter of September 2024. This suggests that the company has been able to generate more income before taxes for every dollar of revenue during this period.

The positive trend in the pretax margin indicates improved operational efficiency and cost management by Palantir Technologies Inc. It signifies that the company has been able to control its expenses and generate higher profits relative to its revenue. However, it is important to note that there were periods of negative pretax margins in the past, indicating challenges in profitability and cost management during those quarters.

Overall, the increasing pretax margin reflects positively on the company's financial performance, showing a trend towards improved profitability and potentially effective business operations. It suggests that Palantir Technologies Inc. has been able to enhance its earnings potential and efficiency in generating profits before accounting for taxes.