D-Wave Quantum (US:QBTS) ZACKS·2025-05-06 20:05Core Viewpoint - D-Wave Quantum (QBTS) is expected to report significant revenue growth in Q1 2025, with a projected revenue of $10.87 million, reflecting a year-over-year increase of 339.92% [1]. Group 1: Earnings Expectations - The Zacks Consensus Estimate for QBTS's first-quarter revenues is $10.87 million, indicating a substantial increase compared to the previous year [1]. - The consensus estimate for loss is 5 cents per share, unchanged over the past 30 days, compared to a loss of 11 cents per share in the same quarter last year [1]. Group 2: Revenue Drivers - QBTS anticipates revenues exceeding $10 million in Q1 2025, largely due to the sale of an Advantage annealing quantum computer to Julich Supercomputing Center [3]. - The company reported a 128% increase in bookings for fiscal 2024, with growth driven by expansion in commercial, government, and research sectors [4]. - QBTS's customer base has grown to 135, including 76 commercial customers, 28 of which are Forbes Global 2000 companies, contributing to the expected revenue growth [5]. Group 3: Market Position and Competition - QBTS is facing increasing competition in the quantum computing market from companies like Rigetti Computing, IBM, Alphabet, and IonQ, which may impact its financial performance [11]. - Rigetti Computing's recent collaboration with Quanta Computer, committing over $100 million each, further intensifies competition [12]. - Alphabet's advancements in quantum computing, particularly with its Google Willow quantum chip, highlight the competitive landscape [13]. Group 4: Market Outlook - The global quantum computing market was valued at approximately $1.42 billion in 2024 and is projected to grow at a compound annual growth rate of 20.5% from 2025 to 2030, indicating a positive outlook for QBTS [17]. - Despite macroeconomic challenges, QBTS's expanding clientele and influence in the quantum computing space are expected to benefit its topline, justifying its premium valuation [16].