NOTICE: This is an early access video for Darntons Premium Subscribers.
Letter To Shareholders:
Long Term Vision:
There are a few noticeable points I want to analyse in regards to the shareholder letter for the company.
One point of mention includes Karp’s opening statements of the letter, in which he restates his long term outlook for the company.
“Our commitment to and relentless focus on the long term at times has required patience.”CEO
Fundamentally, as noted within the past, I do believe that the obsession from Wall Street and the majority of retail investors upon short term metrics and results is dangerous for true wealth generation capabilities. I have noted in the past that within a world of conventionality, the biggest enemy is an unprofitable company in which is investing deeply within the future.
Yet, personally, this I believe is where real wealth generation is created.
Over the past few months, management touched upon their response in regards to alternative software solutions, and the importance of building truly transformative technologies. Whilst alternative software providers create platforms that are minimally viable, and thus fail to create any transformation, Palantir is focused upon creating deep technologies in which are fundamentally stemming from a Zero To One Outlook upon the future.
Within a recent talk by Shyam Sankar at Palantir FoundryCon, Sankar noted the distinction between minimally viable, versus alpha. This is a distinction to represent the deepness and robustness of software solutions, some being thin – yet backed by large sales teams, whereas other are thick – but disregard mostly the necessity for a sales team.
As I commonly note, Snowflake I believe is a perfect example of minimally viable software – in which produces some utility – however is fundamentally not transformative for organisations.
Having a multi decade outlook in regards to the future of a business is a key tenant for true wealth generation.
Sales Force:
A substantial U.S. commercial business, in particular, has emerged in essentially two years, with a fledgling sales force that is still in its infancy and only now taking shape.CEO
Fascinatingly, Palantir still is within the infancy stages of a sales force. There are very few organisations in which garner $1B within revenue, solely based upon a minimal sales team. In fact, Alex Karp himself, solely was responsible for selling the product up until a few quarters ago.
As noted within prior quarters:
