2023 Cash Flow Analysis for Palantir Technologies Inc. PLTR

Palantir Technologies Inc. is a public American software company that specializes in big data analytics. Founded in 2003 and headquartered in Denver, Colorado, Palantir is known for its platforms like Palantir Gotham and Palantir Foundry, which are used by organizations to integrate, manage, and analyze large data sets.

The cash flow statement provides insight into how much cash or cash equivalents a company has generated and used over a specific period. It is divided into three sections: operating activities, investing activities, and financing activities. This statement is crucial for investors and analysts to understand how a company manages its cash resources.

How to read the chart

The chart above illustrates the cash flow of Palantir Technologies in 2023. The width of the bars represents the amount of cash flow, with wider bars indicating larger amounts.

We start on the left with Palantir's cash position at the beginning of the year. During the year, the cash decreased significantly, with substantial cash outflows in investing activities. The cash flow from operating activities is a positive contributor, while financing activities also added to the cash flow but to a lesser extent.

The cash flow from investing activities is negative, indicating that the company spent more on new investments than it received from selling assets or investments. The cash flow from financing activities is positive, reflecting that the company raised more cash through activities such as issuing debt or equity than it paid out for purposes like debt repayments or dividend payments.

After accounting for the changes in cash, including the effects of exchange rates, we end on the right with Palantir's cash position at the end of the year.

Real-Time Cash Flow Counter

To provide a sense of the scale of Palantir Technologies' cash flow, we have created a real-time counter that simulates the company's cash flow for 2023. The counter starts when you scroll to this section and runs at the same speed as the company's reported cash flow.

This is not a live counter of real cash flows as they happen, but a simulation based on the company's reported cash flow for 2023. The counter is meant to give you a sense of the scale of the company's cash flow and how quickly it moves.

Cash Flow Statement

In 2023, Palantir Technologies generated $712 million in cash from operating activities and spent $2,711 million on investing activities. The company raised $219 million through financing activities. As a result, Palantir's cash balance decreased by approximately $1,778 million during the year, including the effects of exchange rate changes.

The company's beginning cash balance was $2,627 million, which typically includes cash and cash equivalents, such as short-term investments that can be easily converted into cash. The ending cash balance was $850 million.

Palantir's capital expenditures for the year were $15 million, representing the cash spent on investments in property, plant, and equipment. Subtracting capital expenditures from cash flow from operations gives the company's free cash flow, which was $697 million in 2023. This amount represents the cash available to pay dividends, repurchase stock, or make other investments.

Summary

Palantir Technologies experienced a significant decrease in its cash position in 2023, primarily due to substantial outflows in investing activities. Despite generating positive cash flow from operations and raising funds through financing activities, the company ended the year with a significantly lower cash balance. The free cash flow remained strong, indicating that Palantir has the capacity to support strategic initiatives and investments.