Palantir (PLTR.US) FY25Q2 conference call: US business expected to achieve 10x revenue growth in the next 5 years.

Palantir(PLTR.US) held its FY25Q2 earnings call. Palantir stated that it expects 10 times revenue growth in its U.S. business over the next 5 years, with many companies mentioning Palantir in their earnings calls, making collaboration smoother without starting from scratch in an unfamiliar state, with a higher starting point and continued improvement. The company maintains a small, flexible sales team, with senior employees handling major deals, while a specialized team manages contracts, focusing on creating value and then getting returns. Currently, client leadership is actively cooperating, leading to faster and deeper collaboration, discussing enterprise-wide expansion from the beginning. This is due to the flexibility advantage in the U.S.: compared to countries with fixed patterns like Germany, the U.S. is more open to creating value, with high employee engagement and a focus on efficiency rather than just talk. Q&A Q: Besides using Large Language Models (LLMs), how does Palantir make artificial intelligence more useful for frontline workers and decision-makers (not just data scientists)? A: There is a significant difference between ivory tower AI researchers and frontline practical situations. We are always rooted in the production linewhether it's factory workers or firefighting units. We see that AI is giving American workers superpowers: ICU nurses have more time with patients, reducing time spent on clinical records; submarine base workers are freed from 3 days of quoting parts to focus on solving production issues. One case that excites me the most is our work with Panasonic Energy, where the AI we developed is training workers who previously worked in casinos to operate precise Japanese high-end battery technology. This expands employment, enhances mobility and creativity, and is why we promote the "American Technology Scholarship." In practice, some of the most creative AI applications come from blue-collar workers (like self-taught auto mechanics) who not only use AI but also build AI applications that can transform their business. We want to find and empower these individuals, unlocking their potential in the U.S. economy through training. Our experience shows that some of the most innovative AI applications come from blue-collar workersthose who are self-taught automotive mold makers, not computer science graduates. They are not only using AI, but more importantly, building AI applications that can change their business. We need to identify and empower these individuals, provide qualifications, and unleash their potential in the U.S. economy through training. Q: How do you approach achieving such tremendous success without a direct sales team and considering the competitive landscape of the software industry? Would you consider building one, or maintain the current cautious approach? A: For those who are just getting to know Palantir, we have made many controversial decisions, one of which is rejecting the common sales approach in the software industryrelying on networking to sell products of no real value. We believe in deriving benefits from creating value, and our organizational structure, including internal collaboration and flat hierarchies, revolves around this idea. Our main sales force now and in the future is through customer referrals, where customers tell others to "bring them in and see how their product fits with our culture." We do have direct sales personnel, but credibility is key, allowing customers to deeply use our product from the start (rather than outdated versions), aiming to achieve more possibilities with ontology and large models. The disadvantage of this approach is the lack of a large sales force, but the advantage is high credibility once in contact with customers. Customers trust that we can make them profitable, save money, or make soldiers safer and more efficient, based on recommendations from trusted sources, and opportunities arise from employee turnover (those who have interacted with us reach out after changing jobs). Meetings have now shifted from "not sure how to use" to "how to achieve similar impact," which drives business data growth. The U.S. business is expected to achieve a 10-fold revenue growth in the next 5 years, with many companies mentioning us in their earnings calls, making collaboration smoother without starting from scratch in an unfamiliar state, with a higher starting point and continued improvement. We maintain a small, flexible sales team, with senior employees handling major deals, a specialized team handling contracts, focusing on creating value and getting returns. Currently, client leadership actively cooperates, leading to faster and deeper collaboration, discussing enterprise-wide expansion from the beginning. This is due to the flexibility advantage in the U.S.: compared to countries with fixed patterns like Germany, the U.S. is more open to creating value, with high employee engagement and a focus on efficiency rather than just talk. Q: Regarding the White House's recent release of the artificial intelligence action plan, you were involved in the process by providing suggestions. What excites you the most about this, and what areas do you think need improvement? A: This essentially unleashes all constraints. Artificial intelligence is an empirical exploration journey that requires hands-on experience and a focus on implementation. This clearly emphasizes the importance of having an open-source AI technology stack in the U.S.something that everyone can use to build solutions. Perhaps we have been too apprehensive in the past and not proactive enough. Therefore, not only Palantir but the entire industry and clients are eager to take action, create value, and expect support and further investment. Q: Considering the intense talent competition among software companies, and the need to become the mainstream software of the future, attracting, retaining, and developing suitable talent is crucial. How do you ensure that Palantir is ahead of other companies in attracting the right talent? A: The key to talent is exposing people to meaningful problems. Our retention rate is high because there are few places like it elsewhere. While some people enjoy pure research, we can attract, retain, and motivate those who want to change history and solve practical, outcome-oriented problems. For those talented individuals who embrace Western superiority (or can tolerate this view), Palantir is a very unique place. In over twenty years, I have been in contact with many Western institutions and companies, but none have empowered their employees as quickly as Palantir, from onboarding to owning projects that make headlines in just 3 months, and we continue to improve this by strengthening internal collaboration. Today, the Palantir experience is the most significant "pass" in the tech industry, setting the tone for one's career. Moreover, at Palantir, it doesn't matter whether you went to school, the school's reputation, or your background. What matters is your experience at Palantir, your reputation, and the projects you've been involved in. We are creating a new qualification that is independent of class and background, which is the most important qualification in the tech industry. It is the combination of autonomy and this new qualification that makes us excel in talent recruitment and retention.