Financial Performance - For the year ended December 31, 2024, the company reported revenue of $10.79 million, a decrease of 10% compared to $12.01 million in 2023[475]. - The net loss for the year ended December 31, 2024, was $200.99 million, significantly higher than the net loss of $75.11 million in 2023, representing a 168% increase in losses[475]. - The company has an accumulated deficit of $554.7 million as of December 31, 2024[457]. - The company expects to continue incurring losses as it invests in research and development and infrastructure[457]. - The company reported a total comprehensive loss of $201,127,000 for 2024, compared to a total comprehensive loss of $74,702,000 in 2023[566]. - The net loss for the year ended December 31, 2024, was $200.988 million, compared to a net loss of $75.107 million in 2023, indicating a significant increase in losses[571]. - Cash flows from operating activities resulted in a net cash used of $50.627 million in 2024, slightly higher than the $50.579 million used in 2023[571]. Revenue and Expenses - Revenue from Quantum Computing as a Service (QCaaS) decreased by $2.0 million in 2024, contributing to the overall revenue decline[476]. - Gross profit for 2024 was $5,697,000, down 38.4% from $9,208,000 in 2023[563]. - Total operating expenses decreased to $74,207,000 in 2024 from $81,503,000 in 2023, reflecting a reduction of 9.0%[563]. - Research and development expenses decreased by $3.0 million for the year ended December 31, 2024, largely due to a $0.9 million decrease in salaries and a $2.8 million decrease in IT costs[481][482]. - Selling, general and administrative expenses decreased by $3.3 million for the year ended December 31, 2024, primarily due to prior year expenses related to a forward agreement and impairment charges[484][485]. - Interest expenses decreased by $2.5 million for the year ended December 31, 2024, due to regular principal repayments and the full repayment of outstanding debt in December 2024[489]. Cash Flow and Financing - Cash used in investing activities totaled $78.4 million for the year ended December 31, 2024, primarily due to $224.8 million in purchases of available-for-sale securities[512]. - Cash provided by financing activities totaled $175.5 million for the year ended December 31, 2024, reflecting proceeds from multiple stock offerings[515]. - The company reported a net cash provided by financing activities of $175.459 million in 2024, a substantial increase from $13.230 million in 2023[571]. - Cash and cash equivalents increased significantly to $67,674,000 in 2024 from $21,392,000 in 2023, a growth of 216.5%[561]. - The company purchased available-for-sale securities totaling $224.764 million in 2024, compared to $109.252 million in 2023[571]. Future Plans and Investments - The company plans to release a 36-qubit system by mid-2025, targeting a 2x reduction in error rates from those achieved at the end of 2024[459]. - The company entered into a Collaboration Agreement with Quanta, committing to invest at least $250 million over the next five years in quantum computing[463]. - The company anticipates that R&D expenditures will grow in the future as it focuses on its technology roadmap and achieving broad quantum advantage[483]. Assets and Liabilities - Total assets rose to $284,787,000 in 2024, up 78.1% from $159,913,000 in 2023[561]. - Total liabilities increased to $158,198,000 in 2024, compared to $50,325,000 in 2023, marking a rise of 214.5%[561]. - The fair value of the derivative liability for Private Warrants was $22.8 million as of December 31, 2024, up from $1.6 million in 2023[530]. - The fair value of the derivative liability for Public Warrants was $70.3 million as of December 31, 2024, compared to $1.3 million in 2023[531]. - The Company had derivative warrant liabilities totaling $70.265 million for public warrants and $68.727 million for private warrants as of December 31, 2024[646]. Accounting and Reporting - The Company remains classified as an emerging growth company under the JOBS Act, allowing it to delay the adoption of certain accounting standards[545]. - The Company has recorded a full valuation allowance against its deferred tax assets as of December 31, 2024, and December 31, 2023[626]. - The Company adopted ASU No. 2023-07, effective for the year ended December 31, 2024, which requires additional disclosures regarding reportable segment expenses[638]. - The Company is evaluating the impact of ASU 2022-03 and ASU 2023-09, effective for annual periods beginning after December 15, 2024, on its consolidated financial statements[639][640].

Core Viewpoint - The individual investor adopts a contrarian investment style, focusing on stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are buying shares at lower prices [1] Investment Strategy - The investment portfolio is split approximately 50%-50% between shares and call options, indicating a balanced approach to risk and potential returns [1] - The investor's timeframe for holding positions typically ranges from 3 to 24 months, suggesting a medium-term investment horizon [1] - Fundamental analysis is employed to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] Stock Selection Criteria - The investor screens thousands of stocks, primarily in the US, looking for those that have undergone recent sell-offs [1] - A professional background check is conducted on each insider who purchased shares after the sell-off, adding a layer of due diligence [1] Technical Analysis - Technical analysis is utilized to optimize entry and exit points, with a focus on support and resistance levels on weekly charts [1] - Multicolor lines and trend lines are used in technical analysis to identify patterns and potential price movements [1]

Core Insights - Michael Wiggins De Oliveira is an inflection investor, focusing on acquiring undervalued companies at pivotal moments when their business narratives are shifting towards increased profitability over the next year [1] - The investment strategy emphasizes technology and the Great Energy Transition, including uranium, with a concentrated portfolio of approximately 15 to 20 stocks and an average holding period of 18 months [1] Group Features - Michael has over 10 years of experience analyzing companies in the tech and energy sectors, and has built a following of over 40,000 on Seeking Alpha [2] - He leads the investing group Deep Value Returns, which offers insights through a concentrated portfolio of value stocks, timely updates on stock picks, and a weekly webinar for live advice [2] - The Deep Value Returns community is described as active, vibrant, and supportive, providing accessible chat options for both new and experienced investors [2]

Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $2.3 million, down from $3.4 million in Q4 2023, indicating a decline in revenue [15] - Gross margins in Q4 2024 were 44%, significantly lower than 75% in Q4 2023, primarily due to lower margin revenues from a contract with the UK's NQCC [16] - Total operating expenses (OpEx) in Q4 2024 were $19.5 million, slightly down from $19.7 million in the same period of the prior year [17] - Net loss for Q4 2024 was $153 million, or $0.68 per share, compared to a net loss of $12.6 million, or $0.09 per share, in Q4 2023 [17] - Cash, cash equivalents, and available-for-sale investments totaled $217.2 million as of December 31, 2024 [18] Business Line Data and Key Metrics Changes - Rigetti sold its first Novera QPU to Montana State University in December 2024, marking a significant milestone in sales to academic institutions [7] - An additional Novera sale occurred in Q4 2024 to the UK government, indicating growth in government sales [8] Market Data and Key Metrics Changes - The collaboration with Quanta Computer, which includes a $35 million investment in Rigetti shares and a commitment of over $250 million for hardware development, is expected to strengthen Rigetti's market position [6][28] - The US government is expected to increase funding for quantum computing, with a bipartisan bill proposing $2.5 billion over five years, which could benefit Rigetti [30][34] Company Strategy and Development Direction - Rigetti aims to leverage its partnership with Quanta to enhance its superconducting quantum computing capabilities and expand its market presence [5][6] - The company is focused on R&D milestones, with plans to scale its systems to over 100 qubits by the end of 2025, while maintaining a strong emphasis on error rate reduction [13][39] - Rigetti's open modular architecture is seen as a competitive advantage, allowing for easier integration of third-party innovations [121] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding government funding initiatives and their potential impact on future sales and contracts [34][36] - The company remains focused on R&D, with expectations that commercial sales will not significantly increase in the near term, projecting a timeline of four to five years before commercial viability [39][40] Other Important Information - Rigetti launched its 84-qubit Ankaa-3 system in December 2024, achieving significant milestones in gate fidelity [9][10] - The company is exploring advanced technologies such as fiber optics for signal transmission to enhance scalability and performance [96][98] Q&A Session Summary Question: Can you help us understand the Quanta partnership? - The partnership with Quanta was initiated about a year ago, focusing on leveraging their manufacturing capabilities and financial investment to enhance Rigetti's quantum computing technology [22][24][28] Question: What is the status of government funding? - A bipartisan bill proposing $2.5 billion for quantum computing is expected to be signed soon, with funding likely to benefit DOE labs and Rigetti [30][34] Question: How does the cash position affect R&D and sales? - Rigetti has approximately $500 million available for investment over the next five years, which should support R&D without the immediate need for additional cash raises [36][39] Question: Can you discuss the QPU sale to Montana State University? - The sale was part of Rigetti's strategy to build a quantum ecosystem for research applications, focusing on fundamental understanding rather than commercial competition [45][46] Question: What is the scaling approach for reaching 100 qubits? - Rigetti plans to use a tiling approach to scale its systems, with a target of demonstrating 36 qubits by mid-2025 and over 100 qubits by the end of the year [85][92] Question: How does Rigetti differentiate itself from competitors? - Rigetti's open modular architecture allows for easier integration of third-party innovations, which is a significant advantage over competitors with more closed systems [121]

Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $2.3 million, down from $3.4 million in Q4 2023, indicating a decrease of approximately 32.4% year-over-year [15] - Gross margins in Q4 2024 were 44%, significantly lower than 75% in Q4 2023, primarily due to lower margins from a contract with the UK's NQCC [16] - Total operating expenses (OpEx) in Q4 2024 were $19.5 million, slightly down from $19.7 million in the same period of the prior year [17] - Net loss for Q4 2024 was $153 million, or $0.68 per share, compared to a net loss of $12.6 million, or $0.09 per share, in Q4 2023 [17] - Cash, cash equivalents, and available-for-sale investments totaled $217.2 million as of December 31, 2024 [18] Business Line Data and Key Metrics Changes - Rigetti sold its first Novera QPU to Montana State University in December 2024, marking a significant milestone in sales to academic institutions [7] - An additional Novera sale occurred in Q4 2024 to the UK government, indicating growth in government sales [8] Market Data and Key Metrics Changes - The collaboration with Quanta Computer, which includes a commitment of over $100 million from both parties, aims to strengthen Rigetti's position in the quantum computing market [6] - The partnership is expected to leverage Quanta's strengths in server manufacturing to enhance Rigetti's quantum computing technology [5] Company Strategy and Development Direction - Rigetti aims to be at the forefront of the quantum computing industry by focusing on superconducting quantum technology and modular architecture [6] - The company plans to scale its systems to over 100 qubits by the end of 2025, with a targeted reduction in error rates [13] - Rigetti emphasizes the importance of R&D milestones over immediate commercial sales, indicating a long-term focus on technology development [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding potential government funding, including a bipartisan bill for $2.5 billion aimed at supporting quantum computing initiatives [30][34] - The company anticipates significant investments from the Department of Energy (DOE) and the Department of Defense (DoD) in the coming years [34] - Management believes that superconducting qubits are the winning modality for quantum computers, citing fast speeds and scalability as key advantages [13] Other Important Information - Rigetti's collaboration with Quanta includes a $35 million investment in Rigetti common stock, pending regulatory clearance [6] - The company launched its 84-qubit Ankaa-3 system in December 2024, achieving major fidelity milestones [9] Q&A Session Summary Question: Can you help us understand the Quanta partnership? - The partnership was initiated by Quanta seeking a suitable quantum computing partner, with discussions starting nearly a year ago. Rigetti's technology was deemed a strong fit for Quanta's goals [22][24] Question: What is the status of government funding? - A bipartisan bill for $2.5 billion has been introduced, with expectations for it to be signed soon, which would benefit DOE labs that Rigetti relies on for funding [31][34] Question: How does the cash position affect R&D and marketing? - Rigetti has approximately $500 million available for investment over the next five years, allowing for continued focus on R&D without immediate cash concerns [36][39] Question: Can you discuss the QPU sale to Montana State University? - The sale was part of Rigetti's strategy to build a quantum ecosystem for research applications, with the university focusing on fundamental quantum computing experiments [45] Question: What is the scaling approach for reaching 100+ qubits? - Rigetti plans to use a tiling approach to scale its systems, with initial milestones set for 36 qubits by mid-2025 and over 100 qubits by the end of the year [85][92] Question: How does the open modular architecture benefit Rigetti? - The open architecture allows for easier integration of innovative solutions from third parties, which is viewed positively by government labs and enhances Rigetti's competitive edge [121]

Core Insights - Rigetti Computing, Inc. reported a quarterly loss of $0.08 per share, consistent with the Zacks Consensus Estimate, and an improvement from a loss of $0.09 per share a year ago [1] - The company's revenues for the quarter ended December 2024 were $2.27 million, missing the Zacks Consensus Estimate by 5.25% and down from $3.38 million year-over-year [2] - Rigetti Computing shares have declined approximately 48.5% year-to-date, contrasting with the S&P 500's decline of 1.8% [3] Earnings Outlook - The future performance of Rigetti Computing's stock will largely depend on management's commentary during the earnings call and the earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is -$0.08 on revenues of $2.59 million, and for the current fiscal year, it is -$0.28 on revenues of $15.32 million [7] Industry Context - The Internet - Software industry, to which Rigetti Computing belongs, is currently ranked in the bottom 48% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

[Financial and Business Highlights](index=1&type=section&id=Financial%20and%20Business%20Highlights) Rigetti reported Q4 revenues of $2.3 million and full-year revenues of $10.8 million, securing a strategic collaboration with Quanta Computer and ending 2024 with $217.2 million in cash after a significant capital raise Key Financial Metrics | Financial Metric | Q4 2024 | Full-Year 2024 | | :--- | :--- | :--- | | Revenues | $2.3 million | $10.8 million | | Operating Expenses | $19.5 million | $74.2 million | | Operating Loss | $18.5 million | $68.5 million | | Net Loss | $153.0 million | $201.0 million | | Cash, Cash Equivalents & Securities (as of Dec 31, 2024) | - | $217.2 million | - Entered a strategic collaboration with Quanta Computer, with each company committing to invest over **$100 million** over five years, and Quanta investing **$35 million** to purchase Rigetti common stock[3](index=3&type=chunk) - Sold a Novera QPU to Montana State University in December 2024, marking the company's first QPU sale to an academic institution[5](index=5&type=chunk) - Raised **$153.3 million** in net proceeds during Q4 2024 from stock offerings and fully prepaid all amounts owed under its loan agreement with Trinity Capital, Inc[7](index=7&type=chunk) [Technology and Research Developments](index=1&type=section&id=Technology%20and%20Research%20Developments) Rigetti launched the 84-qubit Ankaa-3 system with 99.5% median fidelity, demonstrated AI-powered QPU calibration, and published joint research on optical readout for superconducting qubits - Launched the **84-qubit** Ankaa-3 system in December 2024, achieving a **99.0%** median iSWAP gate fidelity and demonstrating **99.5%** median fidelity with fSim gates[6](index=6&type=chunk) - Successfully demonstrated AI-powered remote calibration of a **9-qubit** Novera™ QPU in collaboration with Quantum Elements and Qruise, highlighting the potential of AI to improve quantum computing capabilities[9](index=9&type=chunk) - Joint research with QphoX and Qblox, published in Nature Physics, demonstrated the ability to read out superconducting qubits using an optical transducer, which could offer a more compact and scalable approach compared to current microwave-based techniques[12](index=12&type=chunk) [Financial Statements](index=6&type=section&id=Financial%20Statements) Rigetti's 2024 financial statements show increased cash and total assets due to financing activities, despite a $201.0 million net loss primarily from non-cash charges [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) Rigetti's total assets increased to **$284.8 million** in 2024, driven by cash and investments, while total liabilities grew to **$158.2 million** due to derivative warrant and earn-out liabilities Consolidated Balance Sheet Summary (in thousands) | Balance Sheet Item (in thousands) | Dec 31, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $206,758 | $107,667 | | Cash and cash equivalents | $67,674 | $21,392 | | **Total Assets** | **$284,787** | **$159,913** | | **Total Current Liabilities** | $11,867 | $29,052 | | Derivative warrant liabilities | $93,095 | $2,927 | | Earn-out liabilities | $45,897 | $2,155 | | **Total Liabilities** | **$158,198** | **$50,325** | | **Total Stockholders' Equity** | **$126,589** | **$109,588** | [Consolidated Statements of Operations](index=7&type=section&id=Consolidated%20Statements%20of%20Operations) Rigetti's 2024 revenue decreased to **$10.8 million**, with an operating loss of **$68.5 million**, and a widened net loss of **$201.0 million** due to non-cash charges Consolidated Statements of Operations Summary (in thousands) | Income Statement (in thousands) | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Revenue | $2,274 | $3,376 | $10,790 | $12,008 | | Gross Profit | $1,003 | $2,516 | $5,697 | $9,208 | | Loss from Operations | $(18,494) | $(17,207) | $(68,510) | $(72,295) | | Net Loss | $(152,961) | $(12,572) | $(200,988) | $(75,107) | | Net Loss per Share | $(0.68) | $(0.09) | $(1.09) | $(0.57) | [Consolidated Statements of Cash Flow](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flow) Net cash used in operating activities was **$50.6 million** and investing activities was **$78.4 million**, offset by **$175.5 million** from financing activities, resulting in a **$46.3 million** net cash increase Consolidated Statements of Cash Flow Summary (in thousands) | Cash Flow (in thousands) | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(50,627) | $(50,579) | | Net cash (used in) provided by investing activities | $(78,362) | $773 | | Net cash provided by financing activities | $175,459 | $13,230 | | **Net increase (decrease) in cash** | **$46,282** | **$(36,496)** | | **Cash and cash equivalents – end of period** | **$67,674** | **$21,392** |

Core Insights - Rigetti Computing reported its financial results for Q4 and the full year of 2024, highlighting significant losses and strategic collaborations aimed at advancing quantum computing technology [1][2][8]. Financial Performance - Q4 2024 revenues were $2.3 million, a decrease from $3.4 million in Q4 2023 [8] - For the full year 2024, revenues totaled $10.8 million, down from $12.0 million in 2023 [8] - Operating expenses for Q4 2024 were $19.5 million, slightly lower than $19.7 million in Q4 2023 [8] - The net loss for Q4 2024 was $153.0 million, compared to a net loss of $12.6 million in Q4 2023 [8] - The full-year net loss for 2024 was $201.0 million, significantly higher than the $75.1 million loss in 2023 [8] Strategic Collaborations - Rigetti entered a strategic collaboration with Quanta Computer, committing over $100 million each over five years to develop superconducting quantum computing technologies [3][4] - Quanta will invest $35 million in Rigetti through a securities purchase agreement, pending regulatory clearance [3] Technology Developments - Rigetti launched the 84-qubit Ankaa-3 system in December 2024, achieving a median iSWAP gate fidelity of 99.0% and 99.5% median fidelity with fSim gates [6][9] - The Ankaa-3 system is available through Rigetti Quantum Cloud Services and platforms like Microsoft Azure and Amazon Braket [7] Academic Engagement - Rigetti sold its first Novera QPU to Montana State University, aimed at educating and training in quantum computing technologies [5] Cash Position - As of December 31, 2024, Rigetti had cash, cash equivalents, and available-for-sale securities totaling $217.2 million, a significant increase from $21.4 million at the end of 2023 [8][21]

Core Insights - Rigetti Computing has experienced significant stock volatility, down 61% from its 52-week high but up 362% over the past year, reflecting the unpredictable nature of quantum systems [1] - The company is well-positioned to capitalize on recent advances in quantum technology, with 2025 expected to be a pivotal year for growth [2][3] Industry Overview - Quantum computing is emerging as a critical theme in the stock market, with major tech companies like Alphabet and Microsoft investing heavily, and the market is projected to grow to between $90 billion and $170 billion by 2040 [4] - Rigetti, founded in 2013, is recognized as a pioneer in the quantum computing space, utilizing a vertically integrated model that includes in-house chip design and a quantum cloud services platform [5] Technological Developments - Rigetti has been offering cloud-based access to its quantum systems since 2017, achieving performance improvements and validating its technology through partnerships with organizations like NASA and Amazon [6] - Anticipation is building for the launch of Rigetti's new modular quantum system in Q2 2025, which is expected to significantly enhance its capabilities [7] Financial Performance - The company's financial results have shown mixed trends, with a projected revenue decline of 8.4% for 2024 and an EPS loss of -$0.29, indicating limited commercial momentum [9] - However, 2025 is forecasted to see a revenue increase of 42% to $15.6 million, with a modest narrowing of the EPS loss to -$0.20 [10][12] Valuation Concerns - Rigetti's market capitalization stands at $2.4 billion, with a forward price-to-sales ratio of 154 times the consensus 2025 revenue, indicating a high valuation that may already reflect future growth potential [11]

Rigetti Computing (RGTI -8.98%), one of a group of high-flying quantum computing stocks, took a dive last month as a combination of news items and macroeconomic concerns weighed on the stock.Shares of Rigetti, which currently has negligible revenue, have soared in recent months on investor excitement over quantum computing, but the stock remains a speculative play. Because of that, the stock is highly volatile, so it wasn't surprising that it didn't take much for the stock to fall 36% last month, according ...