Turning Into a Free Cash Flow Powerhouse

As a Palantir (NYSE:PLTR) shareholder, I couldn’t be happier with its ~35% post-earnings surge. The AI-driven data analytics and intelligence software company impressed investors, highlighting strong traction in bootcamps, growing AIP (Artificial Intelligence Platform) adoption, and improving profits. Management expects continued acceleration in its Commercial division. In the meantime, Palantir is gradually turning into a free cash flow powerhouse.

That said, while I will remain invested in Palantir for its long-term prospects, I have now adopted a neutral stance following the stock’s massive gains.

Bootcamps Driving Explosive Commercial Growth

One of the highlights of Palantir’s Q4 report was how the company was able to drive explosive growth in its Commercial division. Just to break it down a bit, Palantir’s business is split into two parts: Government (bringing in 53% of revenues) and Commercial (raking in the other 47%). Now, while the Government side is still growing rather rapidly, posting 11% growth in Q4, the real excitement is brewing in Palantir’s Commercial division.

Indeed, Palantir’s Commercial division far outperformed its Government business, growing revenues by 32% year-over-year. This was driven by a massive 55% increase in Palantir’s customer count to 221 firms. The rapid client success here can be attributed to Palantir’s implementation of a highly demonstrative customer acquisition strategy- bootcamps.

What Are Bootcamps All About?

Palantir’s bootcamps serve as intensive, hands-on workshops designed to showcase the capabilities of their products, particularly Palantir’s AIP.

Palantir’s strategy here literally involves cold-approaching CEOs and CTOs, urging them to put their best AI teams to the test. In Palantir’s words, such an approach usually sounds like this: