Company Performance - D-Wave Quantum Inc. reported a quarterly loss of $0.02 per share, better than the Zacks Consensus Estimate of a loss of $0.05, and an improvement from a loss of $0.11 per share a year ago, representing an earnings surprise of 60% [1] - The company posted revenues of $15 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 38.05%, compared to revenues of $2.47 million in the same quarter last year [2] - Over the last four quarters, D-Wave Quantum has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - D-Wave Quantum shares have declined approximately 18% since the beginning of the year, while the S&P 500 has decreased by 4.3% [3] - The current consensus EPS estimate for the upcoming quarter is -$0.07 on revenues of $4.43 million, and for the current fiscal year, it is -$0.25 on revenues of $23.29 million [7] Industry Context - The Internet - Software industry, to which D-Wave Quantum belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, suggesting that the industry outlook can significantly impact stock performance [5][8]

Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $15 million for Q1 fiscal 2025, representing a 509% increase from $2.5 million in Q1 fiscal 2024 [21][24] - Non-GAAP gross profit reached a record $14 million, up 644% from $1.9 million in the same quarter last year [24] - The net loss for Q1 fiscal 2025 was $5.4 million, a significant reduction from a net loss of $17.3 million in Q1 fiscal 2024, marking the lowest quarterly loss since going public [24][26] - Adjusted EBITDA loss decreased by 53% to $6.1 million from $12.9 million year-over-year [24] Business Line Data and Key Metrics Changes - Bookings for Q1 were $1.6 million, down 64% from $4.5 million in Q1 fiscal 2024, with professional services bookings comprising over 50% of the total [22] - The company has 133 customers, including 69 commercial customers, with 36% being Forbes Global 2000 companies [23] Market Data and Key Metrics Changes - The company has seen a 153% increase in website traffic from October 2024 to March 2025, and media coverage increased by 803% from February to March 2025 [18] Company Strategy and Development Direction - The company aims to be the first independent publicly held quantum computing company to achieve sustained profitability with less funding than competitors [25] - The focus is on enhancing blockchain security and efficiency through quantum computing, with ongoing discussions for partnerships in this area [8][43] - The company is progressing on its product roadmap, targeting general availability of the Advantage 2 quantum computer by the end of the quarter [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technology and commercial opportunities, highlighting the strong interest in quantum computing solutions [19][102] - The company is optimistic about the future, citing increased customer engagement and interest in quantum applications [19][102] Other Important Information - The Advantage 2 quantum computer has achieved significant technical milestones, including calibration of 4,400+ qubit processor chips and successful quantum error mitigation [9][10] - The company has completed the physical assembly of the Advantage 2 system at Davidson Technologies, with installation nearing completion [11] Q&A Session Summary Question: Clarification on Davidson Technology - Management clarified that the Davidson system is not part of previously mentioned system sales and is focused on developing applications for the US government [30][32] Question: Error Correction and Cryogenic Control - Management stated that the company is a leader in cryogenic control, operational today, while error correction for gate model systems is still under development [36][39] Question: Blockchain Application Partnerships - Management indicated that they are open to partnerships with organizations that specialize in blockchain, emphasizing the potential for enhancing security and efficiency [42][43] Question: System Sale Pricing and Pipeline Activity - Management noted that while the gross margin from the recent system sale is a good proxy, each deal will have unique elements [45][47] - The sales pipeline is healthy, with increased activity from larger organizations, although longer procurement processes are expected [50] Question: Revenue Per Customer Growth - Management observed that initial applications often lead to multiple opportunities, with larger companies engaging for proof of concept [60][62] Question: Future Profitability and Revenue Run Rate - Management did not provide specific revenue run rate estimates for achieving profitability but confirmed sufficient liquidity to reach that point [63]

D-Wave Quantum (QBTS) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, everyone, and welcome to D Wave's First Quarter of Fiscal Year twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, I'd like to turn the floor over to Kevin Hunt of Investor Relations. Please go ahead. Speaker1 Thank you, and good morning. With me today are Doctor. Alan Barris, our Chief Executive Officer and John Hakavich, our Chief Financial Officer. Before we begin, I'd like t ...

Business & Technology Highlights - D-Wave's annealing quantum computer demonstrated quantum supremacy on a real-world problem, solving a magnetic materials simulation in minutes compared to nearly one million years for a classical supercomputer[8] - Ford Otosan deployed a hybrid-quantum application, reducing vehicle scheduling time from 30 minutes to less than five minutes, a 6x improvement[10] - A proof-of-concept successfully combined quantum and AI for drug discovery with Japan Tobacco, resulting in better molecular structures for drug development[13] - Jülich Supercomputing Centre (JSC) purchased the first D-Wave Advantage system to support quantum computing exploration in Europe[16] - D-Wave introduced new hybrid quantum solver capabilities, including support for continuous variables with linear interactions, enabling new use cases like budget allocation[20] - Research indicates quantum computation for blockchain hashing could reduce electricity costs by up to a factor of 1,000 compared to classical resources[22] Financial Performance (Q1 2025) - Quarterly revenue decreased to $2.5 million from $15.0 million in Q1 2024[27] - Quarterly gross profit decreased to $1.7 million from $13.9 million in Q1 2024[29] - Quarterly gross margin increased to 67.3% from 92.5% in Q1 2024[30] - Cash position decreased to $27.3 million from $304 million in Q1 2024[32] - Quarterly Adjusted EBITDA Loss improved to $(6.1) million from $(12.9) million in Q1 2024[33]

Exhibit 99.1 Recent Business and Technical Highlights • Announced record revenue of $15.0 million for the first quarter of fiscal 2025. This is an increase of $12.5 million, or 509%, from revenue of $2.5 million for the first quarter of fiscal 2024. • D-Wave's consolidated cash balance totaled $304.3 million as of March 31, 2025, a record quarter-end balance for the Company. Management believes that its cash balance is sufficient to fund the Company to profitability. • Published the peer-reviewed paper "Bey ...

D-WAVE QUANTUM (QBTS) is set to report first-quarter 2025 results on Thursday.The Zacks Consensus Estimate for first-quarter revenues is currently pegged at $10.87 million, indicating an increase of 339.92% year over year. The consensus mark for loss is currently pegged at 5 cents per share, unchanged over the past 30 days. QBTS reported a loss of 11 cents per share in the year-ago quarter.QBTS earnings missed the Zacks Consensus Estimate in three of the trailing four quarters and matched once, the negative ...

Industry Overview - Quantum computing represents a rare ground-floor investment opportunity with transformative potential across various industries [2][3] - The quantum computing market is rapidly expanding, projected to grow from approximately $1 billion in 2024 to over $12 billion by 2032 [5] Company Analysis: IonQ, Inc. - IonQ specializes in trapped-ion quantum computing, offering superior coherence times and fidelity compared to superconducting methods, which is critical for complex calculations [6] - IonQ's stock is currently trading 40% below its 52-week high, presenting a potential entry point for risk-tolerant investors [7] - The company has formed strategic partnerships with major cloud providers, although it continues to operate with significant quarterly losses [7][9] - IonQ is considered a high-risk, high-reward investment, suitable for long-term investors [8][9] Company Analysis: D-Wave Quantum - D-Wave is focusing on quantum annealing technology, which is already solving complex optimization problems for over 100 commercial customers [11] - The stock is trading roughly 30% below its 52-week high, offering a tactical entry point for investors [10] - D-Wave faces challenges from better-funded rivals and requires additional capital to scale, but its specialized focus on immediate business value positions it for substantial revenue growth [12][13]

Core Viewpoint - The Schall Law Firm is investigating D-Wave Quantum Inc. for potential violations of securities laws, focusing on misleading statements and undisclosed information regarding the company's technology and future roadmap [1][2]. Group 1: Investigation Details - The investigation centers on whether D-Wave issued false or misleading statements and failed to disclose critical information to investors [2]. - A report by Kerrisdale Capital, published on April 29, 2025, questions the credibility of D-Wave's technology, suggesting it is more of a market strategy than a genuine quantum computing advancement [2]. - The report also claims that D-Wave has not developed a viable future roadmap and that its technology relies on traditional computing methods rather than true quantum computing [2]. Group 2: Legal Representation - The Schall Law Firm encourages shareholders who have suffered losses to participate in the investigation and offers free consultations regarding their rights [3]. - The firm specializes in securities class action lawsuits and shareholder rights litigation, representing investors globally [3].

Core Viewpoint - D-Wave Quantum Inc. has experienced an 8% decline in the last month, attributed to the ongoing trade war between the U.S. and China, leading to mixed opinions among investors regarding the stock's potential [1] Company Overview - D-Wave Quantum's current stock price is $6.68, with a 52-week range between $0.75 and $11.95, and a price target of $8.42, indicating a potential upside of 26.85% [2][10] - The company has faced criticism for its high price-to-sales ratio of over 230, suggesting it may be overvalued relative to its fundamentals [11] Recent Developments - In late April, D-Wave completed a significant project with Davidson Technologies, which may enhance its marketability in the defense sector [3] - The project involved the physical assembly of a D-Wave Advantage2 annealing quantum system, marking the first such system built on-premises in Alabama [4] Strategic Importance - The partnership with Davidson is crucial as it supports secure quantum research for national defense applications, with the annealing quantum computer housed at Davidson's headquarters [5] - Once operational, the computer is expected to facilitate collaborative research with defense agencies and academic institutions, aiming to become a vital tool for the U.S. Department of Defense [6] Market Position and Technology - D-Wave's focus on annealing technology has faced skepticism, with some analysts suggesting that its advantages over classical computing are not yet proven [8] - The company has recently entered the race to develop alternative quantum computing technologies, such as gate-model systems, which are viewed as potentially more marketable [8] Future Outlook - The operational success of the annealing quantum computer in defense applications could significantly impact D-Wave's market position and investor confidence [9] - Analysts currently rate D-Wave Quantum as a Buy, but some believe there are better investment opportunities available [14]

Group 1 - Block & Leviton is investigating D-Wave Quantum Inc. for potential securities law violations following a report by Kerrisdale Capital, which claims the company's technology is a marketing gimmick and lacks a credible plan for a viable gate-model quantum computer [2][4] - Kerrisdale Capital's report asserts that D-Wave Quantum's solutions primarily depend on classical computing rather than quantum computing, leading to a decline of up to 6% in the company's stock price during intraday trading [2] - Investors who have experienced losses in their D-Wave Quantum investments are encouraged to contact Block & Leviton for potential recovery options [3][5] Group 2 - Block & Leviton is prepared to file an action to recover losses on behalf of investors who have been affected by the alleged securities law violations [4] - The firm is recognized as a leading securities class action firm, having recovered billions of dollars for defrauded investors and representing many top institutional investors [7]