When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Before we discuss the reliability of brokerage recommendations and how to use them to your advantage, let's see what these Wall Street heavyweights think about IonQ, Inc. (IONQ) .IonQ currently has an average brokerage recommendation (ABR) of 2.00, on a s ...

IonQ's financial safety net is shrinking fast. Here's what could happen if the money runs out.Pure-play investments in the quantum computing space are often young, small, and financially unstable. Industry-leading quantum computing systems builder IonQ (IONQ 19.82%) collected just $12.4 million in revenues in the third quarter of 2024 while spending $65.5 million on operating costs.IonQ consumes plenty of cashThe company reported negative free cash flows of $24.2 million in the third quarter, consuming a to ...

Small deep value individual investor, with a modest private investment portfolio, split approx. 50%-50% between shares and call options. I have a B.Sc. in aeronautical engineering and over 6 years of experience as an engineering consultant in the aerospace sector. The latter statement is not relevant in any way whatsoever to my investment style, but I thought to add it for self-indulgent purposes. I have a contrarian investment style, highly risky, and often dealing with illiquid options. How illiquid? Well ...

IonQ, Inc. (NYSE: IONQ ) has been described by analysts in terms that might make even the hardiest of investors hesitate—words like “unproven,” “risky,” and “very negative” have been tossed about with little by way of encouragement. And yet, here we are: up 12% post-Q3 earnings, 70% inThe mission of Grassroots Trading rests on the following principles: providing objective, unbiased, and balanced research, backed by solid data and completely void of emotional influences or preference for companies; focusing ...

Stronger-than-expected sales performance in Q3 isn't the only good news IonQ delivered to investors.IonQ (IONQ 32.70%) stock is surging in Thursday's trading after the company published its third-quarter results. The quantum-computing specialist's share price was up 34.6% as of 1:30 p.m. ET.While IonQ's loss in Q3 came in higher than anticipated, sales were significantly better than expected. In addition to the sales beat, the company also announced a major new acquisition and gave forward financial perform ...

Financial Data and Key Metrics - Revenue for Q3 2024 was $12.4 million, exceeding the high-end of the expected range of $9 million to $12 million, representing more than double the revenue from the same quarter last year [10] - The company raised its full-year 2024 revenue guidance to a range of $38.5 million to $42.5 million [11] - Q3 2024 bookings were $63.5 million, bringing year-to-date bookings to $72.8 million, close to the target guidance of $75 million to $95 million [12][33] - Net loss for Q3 2024 was $52.5 million, compared to $44.8 million in the prior year period, including a non-cash loss of $3.9 million related to warrant liabilities [37] - Adjusted EBITDA loss for Q3 2024 was $23.7 million, compared to $22.4 million in the prior year period [38] - Cash, cash equivalents, and investments as of September 30, 2024, were $382.8 million [39] Business Line Data and Key Metrics - The company announced a $54.5 million contract with the United States Air Force Research Lab and a $9 million renewal with the University of Maryland [11] - IonQ has exceeded its original bookings targets for each of the past three years, raising or beating expectations in 12 out of 13 earnings calls [13] - The company is focusing on quantum applications in biopharmaceutical drug discovery and computer-aided simulations for engineering and manufacturing industries [19][20] - Quantum networking is a key focus, with recent contracts totaling over $60 million, including a $54.5 million deal with AFRL and a $5.7 million contract with ARLIS [23] Market Data and Key Metrics - The company is expanding its presence in the quantum networking market, with McKinsey estimating quantum communication to become a $36 billion market by 2040 [25] - IonQ is leveraging partnerships with AstraZeneca and Ansys to develop quantum applications in biopharmaceuticals and engineering, targeting a potential $2 trillion economic value by 2035 [21] Company Strategy and Industry Competition - IonQ is positioning itself as a leader in both quantum computing and quantum networking, with plans to expand into software applications [31][32] - The acquisition of Qubitekk, a quantum networking company, is expected to enhance IonQ's capabilities in quantum networking and expand its total addressable market [24][45] - The company is investing in R&D and manufacturing partnerships, including agreements with NKT Photonics and imec, to reduce hardware costs and improve system performance [28][30] Management Commentary on Operating Environment and Future Outlook - Management believes that early noisy quantum computers can provide value before perfection, giving IonQ a significant advantage in generating early cash flow [16] - The company is focused on profitable growth, positive free cash flow, and commercial quantum market leadership [40] - IonQ expects to continue its momentum in quantum networking and applications, with strong bookings and revenue growth anticipated for the future [43] Other Important Information - The company announced the achievement of ion-to-ion entanglement, a significant milestone in developing photonic interconnects [27] - IonQ is working on reducing the size, weight, and power of its quantum computers through partnerships with NKT Photonics and imec [29][30] Q&A Session Summary Question: Qubitekk Acquisition and Synergies - The acquisition of Qubitekk brings complementary technology and expands IonQ's total addressable market in quantum networking [45] - Qubitekk's existing contracts with telcos allow IonQ to move its quantum networking efforts from the lab to real-world testing [59] Question: Quantum Sensing and Future Market Focus - Quantum sensing is another potential market for IonQ, as it often requires quantum networking to transport quantum information [46] - The company is shifting its focus from government contracts to enterprise applications, particularly in biopharmaceuticals and engineering [62] Question: NKT Photonics Partnership and Commercialization - The partnership with NKT Photonics aims to reduce the cost and size of IonQ's quantum computers by developing next-generation laser systems [65][66] Question: OpEx and Team Expansion - The company is not making any changes to OpEx for the rest of the year and will discuss future OpEx plans during the Q4 earnings call [68] - IonQ is focusing on strategic growth and reallocating capital to areas with the highest potential impact [69]

IonQ, Inc. (IONQ) came out with a quarterly loss of $0.24 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to loss of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.35%. A quarter ago, it was expected that this company would post a loss of $0.22 per share when it actually produced a loss of $0.18, delivering a surprise of 18.18%.Over the last four quarters, the company has surpassed con ...

Financial Performance and Expenses - The company reported net losses of $129.6 million for the nine months ended September 30, 2024, compared to $115.9 million for the same period in 2023, with an accumulated deficit of $481.7 million as of September 30, 2024[145] - Revenue increased by $6.3 million, or 102%, to $12.4 million for the three months ended September 30, 2024, driven by progress in specialized quantum computing hardware and new revenue contracts[169] - Cost of revenue increased by $4.5 million, or 224%, to $6.5 million for the three months ended September 30, 2024, due to higher hardware and labor costs[170] - Research and development expenses increased by $8.6 million, or 35%, to $33.2 million for the three months ended September 30, 2024, primarily due to higher payroll-related expenses and stock-based compensation[171] - Sales and marketing expenses increased by $1.6 million, or 31%, to $6.6 million for the three months ended September 30, 2024, driven by higher payroll-related expenses[172] - General and administrative expenses increased by $0.4 million, or 3%, to $14.3 million for the three months ended September 30, 2024, due to higher payroll-related expenses[173] - Depreciation and amortization expenses increased by $2.1 million, or 78%, to $4.9 million for the three months ended September 30, 2024, driven by higher depreciation and amortization costs[174] - Revenue increased by $15.4 million, or 97%, to $31.4 million for the nine months ended September 30, 2024, driven by progress in specialized quantum computing hardware and new revenue contracts[177] - Cost of revenue increased by $10.6 million, or 214%, to $15.6 million for the nine months ended September 30, 2024, due to higher hardware and labor costs[178] - Research and development expenses for the three months ended September 30, 2024, included $13.9 million in stock-based compensation, up from $9.5 million in the same period in 2023[168] - Sales and marketing expenses for the three months ended September 30, 2024, included $2.9 million in stock-based compensation, up from $2.0 million in the same period in 2023[168] - Research and development expenses increased by $36.0 million, or 59%, to $96.8 million for the nine months ended September 30, 2024, driven by payroll-related expenses and increased headcount[180] - Sales and marketing expenses increased by $8.2 million, or 72%, to $19.5 million for the nine months ended September 30, 2024, primarily due to payroll-related expenses[181] - General and administrative expenses increased by $6.0 million, or 17%, to $41.4 million for the nine months ended September 30, 2024, driven by payroll-related expenses[182] - Depreciation and amortization expenses increased by $6.3 million, or 91%, to $13.2 million for the nine months ended September 30, 2024, due to capitalized quantum computing system costs and other property and equipment[183] - The change in fair value of warrant liabilities increased by $38.2 million, or 143%, to a gain of $11.4 million for the nine months ended September 30, 2024, due to mark-to-market adjustments[184] - As of September 30, 2024, the company had cash, cash equivalents, and available-for-sale securities of $382.8 million, with an accumulated deficit of $481.7 million[186] - Net cash used in operating activities during the nine months ended September 30, 2024, was $66.3 million, primarily due to a net loss of $129.6 million[191] - Net cash provided by investing activities during the nine months ended September 30, 2024, was $58.4 million, primarily from maturities of available-for-sale securities[193] - Net cash provided by financing activities during the nine months ended September 30, 2024, was $2.4 million, primarily from proceeds from stock options exercised[195] - The company expects to incur significant losses and higher operating expenses for the foreseeable future, with future capital requirements dependent on growth and technology investments[186][187] Partnerships and Collaborations - The company announced a partnership with AstraZeneca to establish a quantum application development center in Gothenburg, Sweden[147] - A partnership with Ansys was formed to accelerate simulation and reduce product development timelines, integrating Ansys software with IonQ computers[147] - A partnership with NKT Photonics was announced to develop next-generation laser systems for future quantum computers, with prototypes expected in 2025[147] - The company partnered with imec to develop photonic integrated circuits and chip-scale ion trap technology, aiming to reduce hardware size and cost while increasing qubit count[147] Contracts and Agreements - The company secured a $54.5 million contract with the United States Air Force Research Lab (AFRL) to advance quantum networking compatibility and deployability over four years[146] - A $9 million agreement was signed with the University of Maryland to expand quantum computing access at the National Quantum Lab at Maryland (QLab)[146] Acquisitions - The company entered into a definitive agreement to acquire substantially all assets of Qubitekk, Inc. for $22.0 million in an all-cash transaction, expected to close within six months[139] Technological Milestones - The company demonstrated remote ion-ion entanglement, a critical milestone for scaling quantum systems[147] Operational Risks and Challenges - The company faces potential increases in operating costs due to inflation, supply chain constraints, geopolitical tensions, and wage increases, which may stress working capital resources[148]

Exhibit 99.1 IonQ Announces Third Quarter 2024 Financial Results • Exceeds High End of Guidance Range with Third Quarter Revenue of $12.4 Million, Representing 102% Year-Over-Year Growth • Raises Full Year Revenue Guidance to Between $38.5 Million and $42.5 Million • Secures $63.5 Million in Third Quarter Bookings, Including Largest 2024 U.S. Quantum Contract Award of $54.5 Million with United States Air Force Research Lab • Signs Definitive Agreement to Acquire Qubitekk, Furthering Leadership in Quantum Ne ...

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