What drove PLTR's earnings growth in 2024?

Palantir's earnings growth in 2024 was driven by several key factors:

1. **Strong Commercial Sector Performance**: The company's commercial revenue grew significantly, with a 27% year-over-year increase. This was driven by the expansion of the customer base and growth in existing customer engagements. Palantir's focus on product differentiation and its involvement in programs like the TITAN program, which establishes its role as a software prime contractor, have been instrumental in this growth.
2. **Government Sector Growth**: The government sector also contributed to the revenue growth, with a 40% surge in revenue from U.S. government contracts in the third quarter. This was due to strong demand for Palantir's AI platform and its software that visualizes army positions.
3. **AI Platform Adoption**: The adoption of Palantir's AI platform has been a significant driver of customer acquisition and revenue growth. The platform is used for testing, debugging code, and evaluating AI-related scenarios, which has led to strong demand from businesses looking to make faster and more informed decisions.
4. **Strategic Partnerships**: Palantir's strategic partnerships, such as with Fujitsu in Japan, have helped the company expand its reach and bring its AI and data integration capabilities to new geographic locations. These partnerships have been crucial in driving international revenue growth.
5. **Economies of Scale**: The company's focus on responsible growth and economies of scale has played a role in driving margin growth. As the commercial segment continues to grow, this is likely to accelerate revenue growth and contribute to robust earnings growth.

In summary, Palantir's earnings growth in 2024 was driven by strong performance in both the commercial and government sectors, fueled by the adoption of its AI platform, strategic partnerships, and operational efficiencies.