Quantum Computing Market Overview - IBM and Google have made significant advancements in quantum computing, with IBM launching its most advanced quantum computers and Google's Willow quantum chip demonstrating exceptional computational efficiency [1] - The global quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030, driven by increasing demand for quantum solutions [10] QBTS Performance and Market Position - QBTS shares surged 420.3% in the trailing six months, outperforming the broader Zacks Computer and Technology sector (3.7%) and Internet - Software industry (14.2%) [8] - QBTS' Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in Q3 2024, driven by higher average revenue per customer [9] - QBTS expanded its customer base to 132 customers across commercial, government, and research sectors, with significant revenue increases from government (66%) and research (47%) customers in Q3 2024 [11] QBTS Technological Advancements - QBTS completed the calibration and benchmarking of its 4,400+ qubit Advantage2 processor, marking significant performance improvements over the Advantage system in optimization, AI, and materials science [4] - QBTS successfully completed its second SOC 2 Type 2 audit in December 2024, reaffirming its commitment to customer data security and protection [15] QBTS Partnerships and International Expansion - QBTS' partnerships with Zapata Computing Holdings, Japan Tobacco, and Staque have been major growth drivers [5] - NTT DOCOMO plans to deploy a hybrid-quantum application using D-Wave technology to optimize mobile network performance and reduce signal congestion, expanding QBTS' international footprint [10] Competitive Landscape - Rigetti Computing launched its 84-qubit Ankaa-3 quantum computing system in December 2024, featuring significant hardware enhancements and major two-qubit gate fidelity milestones, potentially challenging QBTS' market position [7] - QBTS faces growing pressure from competitors like IBM, Google, and IonQ, intensifying market pressures with advancements in quantum computing technologies [12] Financial Outlook - The Zacks Consensus Estimate for QBTS' 2025 revenues is $15.42 million, indicating a 76.22% year-over-year increase [17] - QBTS is trading at a forward 12-month Price/Sales ratio of 103.34X, significantly higher than the sector's 7.09X, suggesting a stretched valuation [18]

Group 1: Quantum Computing Industry - Quantum computing is transitioning from a buzzword to a significant business sector, with Rigetti Computing Inc leading the way through its Quantum Cloud Services platform and innovative quantum processors [3][4] - Rigetti's business model is likened to an early-stage Nvidia, positioning it as a foundational player in quantum computing, with a strong cash position that supports further innovation [4] - D-Wave Quantum Inc is also making strides with its Quantum Computing as a Service model, focusing on real-world applications such as supply chain optimization and drug discovery, which has attracted investor interest [14][15] Group 2: Company Performance and Growth - Rigetti Computing has achieved a year-to-date gain of 1,578%, reflecting strong market confidence in its potential [12] - D-Wave Quantum has seen a year-to-date gain of 1,107%, driven by its focus on practical applications of quantum technology [14] - SoundHound AI Inc has experienced a remarkable year-to-date gain of 1,064%, with a 89% revenue increase in Q3 2024, attributed to strategic partnerships that enhance customer interactions [7][9]

Core Insights - D-Wave Quantum's stock price has surged by 500% in a month, driven by advancements in quantum computing technology and significant government funding [1][3]. Company Overview - D-Wave specializes in quantum computing, utilizing quantum annealing technology to solve complex optimization problems, distinguishing itself from conventional binary computing [1]. - The company generates revenue primarily through its Quantum Computing as a Service (QCaaS) offerings, which include access to advanced quantum technologies and tools for building quantum applications [4]. Industry Context - The potential applications of quantum computing span various fields, including financial modeling, drug discovery, and materials science, although the technology is still in a developmental stage [2][5]. - Recent advancements from major players like Google and Amazon have contributed to a rally in quantum stocks, including D-Wave [3]. Financial Performance - D-Wave reported a revenue of $9.4 million over the last twelve months, which is considered trivial in the context of its growth potential [5]. - The company has faced significant operating losses, amounting to $74 million in the last twelve months, indicating the high-risk, high-growth nature of its business model [5]. Market Comparison - D-Wave's stock has exhibited high volatility, with returns of -86% in 2022 and -39% in 2023, contrasting sharply with the performance of the Trefis High Quality Portfolio, which has consistently outperformed the S&P 500 [5].

The quantum computing industry is shaping to be one of the most dynamic investment frontiers, fueled by surging interest from commercial and government sectors. Market forecasts paint a bright future, with the industry expected to expand from $1.16 billion in 2024 to $12.6 billion by 2032, reflecting a remarkable 34.8% annual growth rate.Google’s recent unveiling of its quantum computing chip, “Willow”, has intensified this momentum, marking a significant leap in the field and highlighting quantum computing ...

Financial Data and Key Metrics Changes - Revenue for Q3 2024 totaled $1.9 million, a decrease of approximately $700,000 or 27% from Q3 2023 revenue of $2.6 million [24] - GAAP gross profit for Q3 was $1 million, a decrease of $500,000 or 32% from Q3 2023 gross profit of $1.5 million [30] - Net loss for Q3 was $22.7 million or $0.11 per share compared to a net loss of $16.1 million or $0.12 per share in Q3 2023 [33] - Adjusted EBITDA loss for Q3 was $13.8 million, an increase of $2.2 million or 19% compared to the adjusted EBITDA loss of $11.6 million in Q3 2023 [34] Business Line Data and Key Metrics Changes - QCaaS revenue for Q3 was $1.6 million, an increase of $500,000 or 41% from Q3 2023 QCaaS revenue of $1.1 million [24] - Professional services revenue for Q3 was $300,000, a decrease of $1 million or 80% from Q3 2023 professional services revenue of $1.3 million [25] - Bookings for Q3 totaled $2.3 million, a decrease of $600,000 or 22% compared to Q3 2023 bookings of $2.9 million [26] Market Data and Key Metrics Changes - Revenue from government customers increased by $800,000 or 66% compared to the previous four quarters [29] - Revenue from research customers increased by $600,000 or 47% compared to the previous four quarters [29] - Revenue from commercial customers decreased slightly by $200,000 or 4% compared to the previous four quarters [29] Company Strategy and Development Direction - The company is focused on expanding its go-to-market organization, having filled 11 positions across various regions [27] - D-Wave aims to be the first independent publicly held quantum computing company to achieve sustained profitability with less funding than competitors [41] - The company is exploring generative AI architectures that utilize quantum processing units for model training and inference [11] Management's Comments on Operating Environment and Future Outlook - Management noted increasing interest in quantum technology and believes that annealing quantum computing is critical for commercial adoption [7] - The company is optimistic about the potential for government funding through the re-authorization of the National Quantum Initiative [50] - Management highlighted the significant progress with NTT DOCOMO and the potential for increased QCaaS revenue as applications move into production [46] Other Important Information - D-Wave has been deemed awardable on the U.S. Department of Defense's Tradewinds buying platform, facilitating easier procurement of their products [17] - The company has nearly $30 million in cash and has paid off a $50 million secured term loan [22][41] - D-Wave's Leap quantum cloud service has consistently exceeded 99.9% availability over the past two years [12] Q&A Session Summary Question: Timing for NTT DOCOMO moving to production - Management confirmed that NTT DOCOMO is planning to move applications into production but has not disclosed a timeline [46] Question: Insights on government business momentum - Management noted significant interest from U.S. government agencies and highlighted the importance of being deemed awardable on the Tradewinds platform [51] Question: Impact of recent research on encryption from China - Management clarified that while the research is interesting, it does not pose a current threat to existing cryptographic systems [58] Question: Potential for government budget tightening - Management indicated that any potential budget tightening would likely impact gate model providers more than D-Wave, which has focused on commercial revenue [94]

D-Wave Quantum Inc. (QBTS) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced a loss of $0.10, delivering no surprise.Over the last four quarters, the company has not been able t ...

LOS ANGELES, Aug. 12, 2024 (GLOBE NEWSWIRE) -- via IBN -- D-Wave Quantum Inc. (NYSE: QBTS) ("D-Wave" or the "Company"), a leader in quantum computing systems, software, and services, and the world's first commercial supplier of quantum computers, today announced that it has been featured in a broadcast via NetworkNewsAudio ("NNA"), which delivers additional visibility, recognition and brand awareness to the investment community via distribution to thousands of syndication points. The audio news release cove ...

D-Wave Quantum Inc. (QBTS) came out with a quarterly loss of $0.10 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.14 per share a year ago. These figures are adjusted for nonrecurring items. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.11, delivering a surprise of -37.50%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. D-WAVE QUANTUM, which belongs ...

The Stock2Me Podcast features a fascinating array of companies and individuals, many of whom are actively revolutionizing antiquated business practices within their respective markets. The latest podcast episode features Murray Thom, Vice President of Quantum Technology Evangelism at D-Wave Quantum Inc. (NYSE:QBTS) ("D-Wave"), a leader in quantum computing systems, software and services focused on delivering customer value via practical quantum applications for problems within logistics, artificial intellig ...

BOSTON, June 18, 2024 (GLOBE NEWSWIRE) -- Zapata Computing, Inc. ("Zapata AI") (Nasdaq: ZPTA), the Industrial Generative AI company, today announced that its paper on early fault tolerant quantum algorithms has been published in PRX Quantum, a highly selective journal that publishes research with an emphasis on outstanding and lasting impact. The paper, titled "Early Fault-Tolerant Quantum Computing" provides a unique, quantitative perspective that bridges the theoretical ideal of fault tolerant quantum com ...