Unheard of: Palantir scores 127 on the Rule of 40 used to measure tech companies.

Palantir is an amazing company with the idiosyncratic Alex Karp as their CEO.

The Rule of 40 is used to value software and Saas (software as a service) companies. You get the number by adding profit margin + revenue growth. The point is that 40 is considered a good, solid score.

In their quarterly report on Monday their Rule of 40 score is 127. When I asked PerplexityAI about what a 127 score says about a company (without telling Perplexity which company) they said “it’s worth double checking the inputs because it is so far above typical benchmarks.”

Here is Karp in a conference call about the quarterly report; and he is a unique dude. His PhD. is not in any tech area; it’s a philosophy/sociology degree from Goethe University in Germany. And he has law degree from Stanford.