Rigetti(US:RGTI)2024-11-12 11:33Financial Performance - The company reported net losses of $75.1 million and $71.5 million for the years ended December 31, 2023 and 2022, respectively, with a net loss of $48.0 million for the nine months ended September 30, 2024[174]. - Revenue for the three months ended September 30, 2024, was $2,378 million, a decrease of $727 million (23%) compared to $3,105 million for the same period in 2023[194]. - Total gross profit for the three months ended September 30, 2024, was $1,204 million, down $1,067 million (47%) from $2,271 million in the same period in 2023[194]. - Net loss for the three months ended September 30, 2024, was $14,833 million, a decrease of $7,382 million (33%) compared to a net loss of $22,215 million for the same period in 2023[214]. - The net loss for the nine months ended September 30, 2024, was $48.0 million, a decrease of $14.5 million from a net loss of $62.5 million in the same period of 2023[230]. Cash Flow and Liquidity - As of September 30, 2024, the company had an accumulated deficit of $401.8 million[174]. - The company expects existing cash, cash equivalents, and marketable securities to meet anticipated operating cash needs until midway through Q1 2026[175]. - The company expects existing cash, cash equivalents, and available-for-sale investments to meet operating cash needs for at least the next 12 months and into the first quarter of 2026[217]. - Net cash used in operating activities for the nine months ended September 30, 2024, was $42.1 million, an increase of $3.9 million compared to $38.2 million for the same period in 2023[228][230]. - Cash provided by financing activities during the nine months ended September 30, 2024, totaled $41.8 million, an increase of $31.2 million compared to $10.5 million in the same period of 2023[234][237]. - The company has an effective shelf registration statement allowing it to offer and sell up to $250.0 million in securities, with $60.2 million of common stock remaining available for sale as of the report date[224]. - Total principal amount outstanding under the Amended Loan Agreement was $12.9 million as of September 30, 2024, with an interest rate of 11% or the US Prime Rate plus 7.50%[225]. - Changes in operating assets and liabilities had a $7.2 million negative impact on net cash used in operating activities during the nine months ended September 30, 2024[228]. Research and Development - The company anticipates continued increases in research and development expenses as it invests in quantum computing technologies[189]. - Research and development expenses decreased by $304 million (2%) for the three months ended September 30, 2024, compared to $13,056 million for the same period in 2023[198]. - The company anticipates that R&D expenditures will grow in the future as it continues to focus on its technology roadmap[201]. - The company anticipates needing additional capital to fund research and development efforts and business objectives, with future capital requirements dependent on various factors[217][224]. Operational Changes - A workforce reduction in February 2023 impacted approximately 50 employees, or 28% of the workforce, incurring a $1.0 million restructuring charge[180]. - The company plans to enhance its sales and service offerings and expand its customer base after potentially achieving quantum advantage[205]. Product Development - The company launched the Ankaa 84-qubit Ankaa™-2 system in 2023, achieving 98% median 2-qubit fidelity, a 2.5x performance improvement over previous QPUs[178]. - The company plans to release a 36-qubit system with a targeted 99.5% median 2-qubit fidelity by mid-2025 and a system with over 100 qubits by the end of 2025[178]. - The company plans to pursue sales of Novera™, its first commercially available QPU launched in 2023, featuring a 9-qubit chip[179]. - The company expects much of its future revenue to be generated from development contracts and anticipated sales of on-premises QPUs[195]. Cost Management - Cost of revenue increased by $340 million (41%) for the three months ended September 30, 2024, compared to $834 million for the same period in 2023[196]. - Selling, general and administrative expenses decreased by $200 million (1%) for the three months ended September 30, 2024, compared to $6,047 million for the same period in 2023[202]. - Interest expense decreased by $740 million (50%) for the three months ended September 30, 2024, compared to $1,473 million for the same period in 2023[208]. - Rising costs of raw materials and labor, attributed to inflation and supply chain constraints, are expected to persist[182].