Learn More: Letter to Community

Our Journey and Vision

Our views about the ways in which software could be built, and what it was capable of accomplishing, for years had been derided as fringe. We were routinely told by investors that building technical infrastructure for the enterprise market, let alone government agencies, was the surest and quickest way to run a business into the ground. Many balked at supporting us. Others insisted we should focus on catering to the needs of consumers. And many more simply would not return our calls.

The market, however, has shifted, and quickly. Our business is now growing at a scale and pace that even our most ardent advocates would have been hard-pressed to say was likely, or even possible.

We generated $634 million in revenue in the first quarter of 2024 alone, representing a 21% increase over the prior year and significantly surpassing the upper end of our guidance. In addition, the profits that we promised would come, and that skeptics repeatedly and confidently said were beyond us, have now arrived.

In the three months ending March 31, 2024, we earned $106 million, the largest quarterly profit in our company's twenty-year history. For comparison, we now earn more profit in a single quarter than the amount of revenue we generated in an entire year a little more than a decade ago.

Expansion and Opportunities

We are working to make AIP available to an even broader range of organizations in the markets that we serve, including businesses across the United States and abroad, state and local government entities, as well as research scientists and academic institutions.

Our expansion strategy includes significant investments in our infrastructure to ensure that our services remain scalable and reliable. We are also exploring partnerships with leading academic institutions to further enhance our AI capabilities and stay at the forefront of innovation.

Furthermore, we are committed to making our technology accessible to smaller enterprises and startups, providing them with the tools they need to compete on a global scale. By democratizing access to advanced AI solutions, we aim to foster a new wave of innovation and economic growth.

Financial Performance and Outlook

Our financial performance over the past year has been nothing short of remarkable. With robust revenue growth and significant improvements in profitability, we are well-positioned for sustained success. Our strategic investments in AI and infrastructure are expected to drive further growth and efficiency.

Looking ahead, we anticipate continued strong performance in our core markets, supported by an expanding customer base and increasing adoption of our AI solutions. We remain focused on delivering long-term value to our shareholders through disciplined execution and innovation.

As we move forward, we will continue to prioritize our investment in R&D, ensuring that our products remain at the cutting edge of technology. Our goal is to maintain our leadership position in the AI industry and to deliver unparalleled value to our customers and partners.

Ethical Considerations and Future Directions

Warfare in this century will continue to be transformed by software. Many fear the application of artificial intelligence in the military context, including its potential to make possible more autonomous and indeed self-directed weapons systems. It has been less fashionable, however, to note that software, including the systems that currently enable target selection and mission planning, has become as vital to the elimination of an adversary as it is to protecting the innocent from harm.

The platforms in use by our defense and intelligence partners present a very real threat to the survival of our enemies. But those same software systems may also make possible and indeed hasten the beginning of the end of an era of total and indiscriminate war.

We are committed to ensuring that our technology is used responsibly and ethically. Our AI systems are designed with rigorous safeguards to prevent misuse and to ensure compliance with international laws and norms. We believe that, with proper oversight and ethical considerations, AI can be a force for good, enhancing security and protecting lives.

Conclusion and Commitment

As we reflect on our journey and look to the future, we remain steadfast in our commitment to our customers, partners, and shareholders. Our focus on innovation, ethical AI, and delivering value will continue to drive our success. We are grateful for your support and excited about the opportunities that lie ahead.

Together, we can build a future where technology empowers people and organizations to achieve their highest potential. We invite you to join us on this journey and to be a part of the transformative impact that AI can have on our world.

Forward-Looking Statements

This letter contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including, but not limited to, statements regarding our financial outlook, product development and related timing, distribution, and pricing, expected benefits of and applications for our software platforms, business strategy, and plans (including strategy and plans relating to our Artificial Intelligence Platform ("AIP"), our expected growth and expansion in our customer base, and our future investment and development priorities. These statements are based on current expectations, forecasts, and assumptions that involve risks and uncertainties that could cause actual outcomes and results to differ materially. We disclaim any obligation to update these forward-looking statements except as required by law.