IonQ(US:IONQ)2025-02-26 21:07Revenue Growth - Revenue increased by $21.0 million, or 95%, to $43.1 million for the year ended December 31, 2024, from $22.0 million for the year ended December 31, 2023, primarily driven by progress on arrangements to build specialized quantum computing hardware and new revenue contracts [359]. Net Losses and Deficits - Net losses were $331.6 million, $157.8 million, and $48.5 million for the years ended December 31, 2024, 2023, and 2022, respectively, with an accumulated deficit of $683.7 million as of December 31, 2024 [342]. - The company expects to incur significant losses and higher operating expenses for the foreseeable future, with an accumulated deficit of $683.7 million as of December 31, 2024 [368]. Operating Costs and Expenses - Total operating costs and expenses for the year ended December 31, 2024, were $275.5 million, compared to $179.8 million for the year ended December 31, 2023 [358]. - Research and development expenses for the year ended December 31, 2024, were $136.8 million, up from $92.3 million in 2023 [358]. - Sales and marketing expenses increased to $28.4 million for the year ended December 31, 2024, compared to $18.3 million in 2023 [358]. - General and administrative expenses rose to $71.1 million for the year ended December 31, 2024, from $50.7 million in 2023 [358]. - Cost of revenue increased by $12.5 million, or 154%, to $20.6 million for the year ended December 31, 2024, driven by higher hardware and labor costs [361]. Future Financial Outlook - The company expects to continue incurring significant losses as it prioritizes reaching technical milestones necessary for quantum computing advancements [342]. - Future capital requirements will depend on investments in growth and technology, with potential needs for additional equity or debt financing [369]. Cash and Liquidity - As of December 31, 2024, the company had cash, cash equivalents, and available-for-sale securities totaling $363.8 million, excluding $2.4 million of restricted cash [368]. - As of December 31, 2024, the company had cash, cash equivalents, and available-for-sale securities totaling $363.8 million [388]. - The company holds cash and cash equivalents primarily for working capital purposes, investing in highly liquid securities to preserve principal and maximize yields [388]. - Cash and cash equivalents are deposited with large, reputable financial institutions, which may exceed federally insured limits [389]. Revenue Recognition and Accounting Policies - Revenue recognition for certain contracts may vary based on the allocation of arrangement consideration to performance obligations [384]. - The company applies judgment in estimating total expected effort for revenue recognition, which can lead to material changes in reported revenue [384]. - Costs to maintain quantum computing systems are expensed as incurred, impacting overall financial performance [386]. - The company evaluates changes in circumstances that may affect the useful life of assets, influencing reported property and equipment values [387]. Expenses Breakdown - Research and development expenses rose by $44.5 million, or 48%, to $136.8 million for the year ended December 31, 2024, primarily due to increased payroll-related expenses and materials costs [362]. - Sales and marketing expenses increased by $10.1 million, or 55%, to $28.4 million for the year ended December 31, 2024, mainly from higher payroll-related expenses [363]. - General and administrative expenses grew by $20.3 million, or 40%, to $71.1 million for the year ended December 31, 2024, largely due to increased payroll-related expenses [364]. - Depreciation and amortization expenses increased by $8.3 million, or 80%, to $18.7 million for the year ended December 31, 2024, driven by higher depreciation associated with capitalized quantum computing system costs [365]. Market and Economic Conditions - The macroeconomic climate, including inflation and interest rates, may adversely affect the company's operating results and ability to obtain financing [344]. - The company does not have material exposure to changes in fair value due to interest rate fluctuations, but declines in interest rates could reduce future interest income [388].