For those looking to find strong Business Services stocks, it is prudent to search for companies in the group that are outperforming their peers. Is Arqit Quantum Inc. (ARQQ) one of those stocks right now? Let's take a closer look at the stock's year-to-date performance to find out.Arqit Quantum Inc. is one of 305 companies in the Business Services group. The Business Services group currently sits at #5 within the Zacks Sector Rank. The Zacks Sector Rank gauges the strength of our 16 individual sector group ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

Financial Data and Key Metrics - Revenue for fiscal year 2024 was $293,000, down from $640,000 in 2023, primarily due to a shift from perpetual licenses to operational licenses with lower upfront revenue [30][31] - Administrative expenses decreased to $23.5 million from $55.2 million in 2023, driven by lower share-based compensation, employee expenses, and legal fees [32] - Operating loss for 2024 was $24.6 million, compared to $54.5 million in 2023, reflecting reduced administrative expenses [33] - Cash and cash equivalents at the end of fiscal year 2024 stood at $18.7 million, down from $44.5 million in 2023 [34] Business Line Data and Key Metrics - The company executed 13 contracts in 2024, up from 7 in 2023, with significant technical discussions held with 11 entities, including 8 telecom network operators [22] - A seven-figure multi-year contract with a Middle East governmental agency was executed, expected to generate annual recurring revenue starting in fiscal year 2025 [18][19] - The company engaged with Sparkle, a telecom network operator, to secure its Quantum-Safe network-as-a-Service product, with potential for license revenue as customers sign up [16] Market Data and Key Metrics - The telecom network, government, and military markets are key focus areas, with increasing engagement and contract wins [20][26] - The company is exploring opportunities in financial services and IP-rich industries, driven by concerns over quantum threats to data security [26][51] - The Middle East and U.S. government markets are showing strong interest in post-quantum encryption solutions, with potential for further contracts [42][44] Company Strategy and Industry Competition - The company is transitioning from perpetual licenses to operational licenses to build a recurring revenue model [30] - Focus is on converting technical engagements into material revenue contracts, particularly in telecom, government, and military markets [26] - The company is leveraging its compliance with NSA requirements and industry recognition to drive customer engagement [14] - AI is being integrated into the technology roadmap to enhance remediation and customer support [45][46] Management Commentary on Operating Environment and Future Outlook - The market for enhanced encryption is moving towards the company, with increasing awareness of quantum threats [11][36] - The company is focused on executing its sales strategy and converting opportunities into revenue, with a strong emphasis on customer fulfillment [9][27] - The company expects 2025 to bring increased dialogue around quantum computing and encryption, driven by market and media interest [11][12] Other Important Information - Headcount was reduced to 82 employees at fiscal year-end from 147 in 2023, with a focus on sales, engineering, and customer fulfillment [25] - Budgeted monthly operating costs for fiscal year 2025 have been reduced to $2.15 million, with cost-saving initiatives ahead of budget [24] - The company received additional capital investments from board members, providing confidence in its forward strategy [10] Q&A Session Summary Question: Revenue cadence for the Middle East deal - The revenue from the Middle East deal will be recognized ratably, starting in the current reporting period [40] Question: Additional government and enterprise contract opportunities in the Middle East - The Middle East deal is expected to catalyze further opportunities with governmental bodies and large enterprises in the region, driven by proactive legislation on post-quantum encryption [42] Question: Role of AI in the Quantum-Safe story - AI is being explored as a remediation tool to guide customers in addressing vulnerabilities and applying the company’s technology [45][46] Question: Focus verticals beyond government, telecom, and defense - Financial services and IP-rich industries are emerging as key verticals, with concerns over data security and quantum threats [51] Question: Operating leverage and cost structure - The company expects to deliver expected revenue in fiscal year 2025 with the current cost base, with minimal leverage anticipated [53] Question: Cash balance and recent capital raise - A portion of the capital raise ($1.8 million) was received in early October and not included in the fiscal year 2024 cash balance [55]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1 ...

Investors interested in Business Services stocks should always be looking to find the best-performing companies in the group. Has Arqit Quantum Inc. (ARQQ) been one of those stocks this year? Let's take a closer look at the stock's year-to-date performance to find out.Arqit Quantum Inc. is one of 303 individual stocks in the Business Services sector. Collectively, these companies sit at #4 in the Zacks Sector Rank. The Zacks Sector Rank includes 16 different groups and is listed in order from best to worst ...

While "the trend is your friend" when it comes to short-term investing or trading, timing entries into the trend is a key determinant of success. And increasing the odds of success by making sure the sustainability of a trend isn't easy.The trend often reverses before exiting the trade, leading to a short-term capital loss for investors. So, for a profitable trade, one should confirm factors such as sound fundamentals, positive earnings estimate revisions, etc. that could keep the momentum in the stock aliv ...

LONDON, Nov. 26, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (“Arqit”), a leader in quantum safe encryption, announced it will report financial results for the fiscal year ending September 30, 2024 on Thursday, December 5, 2024. In conjunction with this announcement, Arqit will host a conference call at 11:00 a.m. ET / 8:00 a.m. PT on December 5, 2024 with the Company’s CEO, Andy Leaver, and CFO, Nick Pointon. A live webcast of the call will be available on the “News & Events” page of the Company’s website ...

LONDON, Sept. 27, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (Nasdaq: ARQQ, ARQQW), a leading provider of quantum-safe encryption, today announced a leadership transition. Andy Leaver, a seasoned software company executive and Operating Partner from Notion Capital, has been appointed as Chief Executive Officer and a member of the Board of Directors, effective today. Co-Founder and current CEO David Williams will step down from his role as CEO and as a member of the Board of Directors. The executive transit ...

LONDON, June 20, 2024 (GLOBE NEWSWIRE) -- Arqit Quantum Inc. (NASDAQ:ARQQ, ARQQW))) (Arqit), a leader in quantum-safe encryption, announces the full commercial launch of a new feature of its Symmetric Key Agreement Platform, the "Encryption Intelligence" service. Encryption Intelligence assists organizations in identifying network risks and developing mitigation plans to enhance their security posture against current and evolving cybersecurity threats. Arqit secured its first paid contract for this feature ...

Financial Data and Key Metrics - Revenue for the first half of fiscal year 2024 was $0.1 million, a modest result but supported by strong customer engagements [5] - Year-over-year revenue growth from $19,000 in 2023 to $119,000 in 2024, driven by increased contracts for the Symmetric Key platform [26] - Operating loss decreased to $16.6 million from $25.4 million in the same period last year, primarily due to cost reductions [29] - Cash balance at the end of the period was $21.3 million, down from $44.5 million at the end of fiscal year 2023 [30] Business Line Data and Key Metrics - The company experienced a 100% renewal rate for expiring contracts, particularly for the Symmetric Key Agreement platform and network secure firewall products [7] - Three additional major telcos agreed to launch or launched initial test installations of Arqit's SKA products, bringing the total to six major telcos engaging with the product [7] - The company secured its first seven-figure multi-year government contract, expected to be finalized in early summer [11] Market Data and Key Metrics - The company is engaged with about a dozen large-scale telecom operators, with Telecom Italia Sparkle completing the initial installation of Arqit's SKA platform [15][16] - The government market is showing significant interest, with growing opportunities in defense and enterprise sectors [12][13] - The enterprise market is slower to adopt, but 40% of respondents in a recent survey are planning to implement post-quantum cryptographic solutions within the next 12 months [21] Company Strategy and Industry Competition - The company is focusing on government contracts, telco partnerships, and OEM collaborations to drive revenue growth [12][17] - The integration with Intel's Xeon Scalable processors represents a significant market opportunity, with joint marketing efforts already underway [17][18] - The company is prioritizing cost control, with a 40% reduction in monthly operating costs expected by July 2024 [28] Management Commentary on Operating Environment and Future Outlook - Management expressed high conviction in the business trajectory, citing multiple contract awards and partnerships as evidence of market maturation [5][19] - Sales cycles are shortening, with customer engagements now taking three to four months, indicating a growing mainstream appreciation for quantum-safe encryption [20] - The company expects significant revenue flow in 2024, driven by government contracts, telco rollouts, and OEM partnerships [24][33] Other Important Information - The company announced further cost-saving initiatives, including headcount reductions and real estate rationalization, reducing employee count to 81 [28] - The collaboration with Intel is seen as a large-scale route to market, with significant potential for global revenue generation [17][18] Q&A Session Summary Question: Timing and revenue potential for the EMEA contract - The EMEA contract is a multi-year seven-figure deal, with first revenues expected in the current half-year [37] - Additional contracts and telco rollouts are also expected to contribute to revenue in the same timeframe [37] Question: Feedback from partners on contract renewals - Partners report that Arqit's products are easy to use, quick to deploy, and highly stable, with no network outages experienced [40] - The integration with Intel, Fortinet, and Juniper enhances ease of deployment and performance, providing a competitive advantage [41] Question: Cost control and potential for adding back infrastructure - Cost reductions have been achieved through exiting the satellite business and scaling back software development [43] - The company expects to maintain a stable cost base, with only modest additions in customer support and service as contracts ramp up [44]