Palantir CEO Touts Record Q3 Results Amid Software Sector Comparisons
Palantir Technologies Inc. delivered a standout third quarter, with CEO Alex Karp proclaiming the results potentially unmatched in software industry history. Revenue surged 63% year-over-year, while free cash FLOW margins reached 42% - yielding a Rule of 40 score of 105 that edges out previous quarters.
The Rule of 40 benchmark, a key industry metric combining growth and profitability, places Palantir among elite performers. Yet historical context tempers the superlatives: Zoom Video Communications averaged 413 during its pandemic boom, while Atlassian and Shopify have previously posted comparable or superior metrics during peak growth cycles.