Rigetti(RGTI) - 2024 Q2 - Quarterly Results

Second Quarter 2024 Financial Highlights Rigetti reported Q2 2024 revenues of $3.1 million and a net loss of $12.4 million, strengthening its balance sheet by raising $27.8 million through its ATM program and ending the quarter with $100.5 million in cash, cash equivalents, and available-for-sale securities Q2 2024 Key Financial Metrics | Metric | Value (USD) | | :--- | :--- | | Total Revenues | $3.1 million | | Total Operating Expenses | $18.1 million | | Operating Loss | $16.1 million | | Net Loss | $12.4 million | - As of June 30, 2024, cash, cash equivalents, and available-for-sale securities totaled $100.5 million[1] - The company raised $27.8 million from the sale of 24.1 million common shares under its At-The-Market (ATM) program between April 1 and July 12, 2024[1] Technology and Operational Updates Rigetti is on track with its Ankaa-3 system development, targeting 99+% 2-qubit gate fidelity by year-end 2024, while highlighting superior gate speeds and publishing research on its scalable modular chip architecture and a new qubit-efficient optimization solver QPU Roadmap and Performance The company is progressing towards its goal of deploying the 84-qubit Ankaa™-3 system with over 99% median 2-qubit gate fidelity by the end of 2024, with current 24-qubit systems demonstrating strong performance and significantly faster gate speeds than competitors - Rigetti remains on track to develop and deploy its 84-qubit Ankaa™-3 system, aiming for a median 2-qubit gate fidelity of 99+% by the end of 2024[2] - The company's current 24-qubit system is performing in the 99% range for 2-qubit fidelity[2] - Gate speeds of 60-80ns are reported, making Rigetti's systems twice as fast as other superconducting competitors and 3-4 orders of magnitude faster than trapped ion systems[2] QPU Scaling and Architecture Rigetti published research in 'Physical Review Applied' on its multichip tunable couplers, a key component of its modular chip architecture introduced in 2021, enabling the tiling of multiple chips to create larger processors, reducing manufacturing complexity, and facilitating predictable scaling - In May 2024, Rigetti's research on multichip tunable couplers was published in the peer-reviewed journal, Physical Review Applied[3] - This modular architecture, first introduced in 2021, allows for connecting multiple identical chips to form a large-scale quantum processor, reducing manufacturing complexity[3] Research and Algorithm Development The company released preliminary research from its DARPA Benchmarking program, developing a framework to estimate resources for fault-tolerant quantum computers, and introduced a new qubit-efficient method to solve large combinatorial optimization problems on small-qubit systems, demonstrated on its Ankaa-9Q-3 system - In June 2024, Rigetti released preliminary research from Phase 1 of the DARPA Benchmarking Program, presenting a software tool to estimate physical resources required for specific quantum algorithms[4] - In July 2024, the company introduced a qubit-efficient combinatorial solver method to solve large problems using a small number of qubits, demonstrated on the Ankaa-9Q-3 system[5] Financial Statements The unaudited condensed consolidated financial statements show total assets of $162.4 million and total liabilities of $40.3 million as of June 30, 2024, with a net loss of $33.2 million on revenues of $6.1 million and net cash used in operating activities at $26.7 million for the six months ended June 30, 2024 Condensed Consolidated Balance Sheets As of June 30, 2024, total assets increased to $162.4 million from $159.9 million at year-end 2023, total liabilities decreased to $40.3 million from $50.3 million primarily due to a reduction in debt, and stockholders' equity grew to $122.2 million from $109.6 million Balance Sheet Summary (in thousands) | Account | June 30, 2024 | Dec 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $20,684 | $21,392 | | Total current assets | $109,667 | $107,667 | | Total assets | $162,412 | $159,913 | | Total current liabilities | $25,564 | $29,052 | | Total liabilities | $40,254 | $50,325 | | Total stockholders' equity | $122,158 | $109,588 | Condensed Consolidated Statements of Operations For Q2 2024, revenue was $3.1 million, a decrease from $3.3 million in Q2 2023, while the net loss improved to $12.4 million from $17.0 million year-over-year, resulting in a net loss per share of $0.07 compared to $0.13, aided by a $3.7 million gain in 'Total other income (expense), net' Statement of Operations - Quarterly Comparison (in thousands, except per share data) | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Revenue | $3,086 | $3,327 | | Gross Profit | $1,990 | $2,730 | | Loss from operations | $(16,085) | $(16,236) | | Net loss | $(12,421) | $(16,966) | | Net loss per share | $(0.07) | $(0.13) | Statement of Operations - Six-Month Comparison (in thousands) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Revenue | $6,138 | $5,527 | | Loss from operations | $(32,670) | $(38,256) | | Net loss | $(33,194) | $(40,320) | Condensed Consolidated Statements of Cash Flow For the six months ended June 30, 2024, net cash used in operating activities was $26.7 million, an improvement from $33.6 million in the prior year period, with net cash provided by financing activities significantly increasing to $33.1 million primarily from stock sales, ending the period with $20.7 million in cash and cash equivalents Statement of Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | $(26,656) | $(33,618) | | Net cash used in investing activities | $(7,033) | $(2,765) | | Net cash provided by financing activities | $33,093 | $286 | | Net decrease in cash | $(708) | $(36,176) | | Cash at end of period | $20,684 | $21,712 | Conference Call Information Rigetti will host a conference call and webcast on August 8, 2024, at 4:30 p.m. ET to discuss the Q2 2024 financial results, with access details available on the company's investor relations website - A conference call to discuss Q2 2024 financial results was scheduled for August 8, 2024, at 4:30 p.m. ET[6] Forward-Looking Statements This report contains forward-looking statements regarding the company's technology roadmap, system performance expectations (Ankaa-3, Lyra), customer adoption, and financial outlook, which are based on current estimates and subject to significant risks and uncertainties detailed in SEC filings - The report includes forward-looking statements concerning the performance of Ankaa systems, the development of Ankaa-3 and Lyra systems, customer adoption, and the success of partnership programs[7] - These statements are subject to risks and uncertainties detailed in the "Risk Factors" section of the Company's Annual Report on Form 10-K and Quarterly Report on Form 10-Q[7]