“We're raising adjusted operating income guidance to an excess of $1 billion, well over that actually, which represents a 39% margin in Q4.”

In context

“lantir continues to invest in new AI technologies and expand globally, how are you balancing these investments with maintaining or improving profitability and operating margins, especially given the current macroeconomic challenges? David Glazer: We aren't just bouncing, we're excelling. Revenue grew 30% year-over-year in Q3, 44% in the U.S. in the quarter. And you couple that with our expanding margins in the quarter. We did 38% adjusted operating margin, our eighth consecutive quarter of expanding margins and we posted 68 in, 68 in the Rule of 40 score. At the same time, we had an outstanding adjusted free cash flow margin in the quarter, 60%. And so looking forward, we're raising guidance. We're raising guidance for adjusted free cash flow to an excess of $1 billion for full year 2024. We're raising adjusted operating income guidance to an excess of $1 billion, well over that actually, which represents a 39% margin in Q4. And we're doing all this while we're continuing to invest at the beginning of the AI revolution that is -- there is an incredible amount of demand there and we're investing in technical talent and we're continuing to build out world class product. Alex Karp: There's a steel man version of this, which is given how well you're doing, given you've really accelerated to 30%, given the U.S. is growing 44%, why don't you blow up your Rule of 68, which by the way, to my knowledge is the single best in of comparable companies in the world and significantly better than many very strong companies. So an average normal way of looking at Palantir be like, great, you have a 44% growth on $2 billion base in the U.S. and you have a Rule of 68. Get that 68 down to 50 and maybe you can grow. But in fact,”