“Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year.”

In context

“irst quarter revenue and has been a leading driver of growth for 8 years with a 30% CAGR from 2013 to 2021, which we view as a long-term trend. More fundamentally, we believe supplying our products to the U.S. government and her allies is a core pillar of our business. As Alex mentioned, in the face of substantial macroeconomic and geopolitical challenges and uncertainty, the quality of our revenue as viewed through growth, margin performance and durability and especially resilience is unique to Palantir. As Alex wrote in his letter, we combine the resilience of the defense industrial sector with the growth of a software company. In the face of our customers' challenges, we have and will continue to incur expenses prior to having contracts in the delivery of mission-critical capabilities. Following these investments, we expect acceleration of our U.S. government revenue into the second half of the year. In Q2 to date, we've already seen the reacceleration of U.S. government revenue and expect acceleration of the overall government segment to follow in the next quarter or shortly thereafter. I'll now review our first quarter performance, followed by our outlook. First quarter revenue grew 31% year-over-year, ahead of our prior guidance to $446 million. Overall net dollar retention was 124%. Commercial revenue growth accelerated for the fifth consecutive quarter. First quarter commercial revenue increased 54% year-over-year to $205 million, up from a 47% increase in the fourth quarter. Commercial growth continues to be driven by our U.S. business as U.S. commercial revenue growth accelerated to 136% in the first quarter, up from 132% in Q4. International commercial revenue growth accelerat”