I want to give you the microphone. Just tell us why this technology is so exciting and where you fit in it. >> Yeah.Well, look, INQ is the biggest player in the business of quantum, right. We are the 800 pound gorilla of both quantum computing and quantum networking. So, we're in fact a fullyfledged quantum internet company, right. So, we're building the most powerful and most affordable quantum computers.We're also building the networks, nodes, repeaters to be able to communicate safely, not just safely in ...

Key Takeaways IONQ has acquired Capella Space to advance a quantum key distribution network in orbit. The integration aims to secure defense, finance, and Earth observation via quantum encryption. IONQ stock has jumped 61% in three months, but the high valuation raises questions about future upside.IonQ. Inc. (IONQ) , a pioneer in quantum computing, is setting its sights far beyond Earth’s surface. With the recent acquisition of Capella Space, a satellite technology firm known for synthetic aperture radar ...

Core Insights - D-Wave Quantum Inc. is experiencing significant financial growth, with a 509% year-over-year increase in revenues in Q1 2025, primarily due to a $12.6 million sale of a quantum system to Germany's Julich Supercomputing Center [2][9] - The company has achieved a GAAP gross margin of 92.5% and reduced its adjusted EBITDA loss by 53% year-over-year, indicating improved operational efficiency [3][9] - D-Wave completed a $400 million equity offering at a 149% premium, increasing its cash reserves to approximately $815 million, which provides strategic flexibility for expansion and R&D [4][9] Financial Performance - D-Wave's revenue model is evolving towards a hybrid mix of high-value system sales and recurring subscription-based Quantum Computing-as-a-Service [2] - The company reported its lowest net loss since going public, showcasing meaningful operating leverage as revenues increased [3] Market Position and Growth Strategy - D-Wave's stock has surged 152% over the past three months, outperforming the broader industry and sector [5] - The company is positioned with the strongest balance sheet among publicly traded quantum computing firms, allowing for strategic acquisitions and expansion of cloud services [4] Competitive Landscape - Rivals like Rigetti Computing and IonQ are also pursuing growth strategies, with Rigetti raising $350 million for hardware expansion and IonQ acquiring companies to enhance its quantum capabilities [8][10] - D-Wave's average target price indicates further growth potential, as it is currently trading 8% below the average price target set by analysts [11]

Financial Data and Key Metrics Changes - The company reported revenue of $7.6 million for Q1 2025, exceeding the midpoint of their guidance range [27] - Total operating costs and expenses increased to $83.2 million, up 38% from $60.5 million in the prior year [28] - The net loss for Q1 was $32.3 million, an improvement from a net loss of $40 million in the prior year [29] - Adjusted EBITDA loss for Q1 was $30.8 million, compared to a loss of $27 million in the prior year [30] - Cash and cash equivalents at the end of the quarter were approximately $697.1 million [31] Business Line Data and Key Metrics Changes - Research and development costs rose to $40 million, up 23% from $32.4 million in the prior year [28] - Sales and marketing costs increased to $8.6 million, up 28% from $6.7 million in the prior year [28] - General and administrative costs surged to $23.8 million, up 70% from $14 million in the prior year [28] Market Data and Key Metrics Changes - The company has established four quantum networks serving various sectors, including defense and telecommunications [54] - The acquisition of ID Quantique has expanded the company's capabilities in quantum networking [91] Company Strategy and Development Direction - The company aims to be the leading player in quantum computing and networking, focusing on revenue growth and delivering AQ64 [11] - Recent acquisitions, including LightSync and Capella, are expected to enhance the company's quantum networking capabilities and accelerate the development of the quantum Internet [16][21] - The company is committed to building a quantum-safe Internet and addressing the challenges posed by quantum computing to data security [8][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong balance sheet and the potential for growth driven by geopolitical factors [22] - The company anticipates continued investments to support its quantum computing and networking roadmaps, with a focus on integrating acquired entities [30] - Management highlighted the importance of real-world applications and partnerships in advancing their quantum networking initiatives [44][100] Other Important Information - The company celebrated National Quantum Day and showcased advancements in quantum machine learning [15] - The company is actively involved in DARPA's quantum benchmarking initiative [14] Q&A Session Summary Question: Update on recent acquisitions and expected revenue - Management believes the acquisitions will strengthen revenue growth and are expected to be accretive in the long term [37] Question: Vision for the quantum Internet - The company aims to build networks that extend over great distances using quantum memory technology, enabling connections between locations like Chattanooga and Oak Ridge National Labs [40] Question: Technology and IP driving the LightSync acquisition - The acquisition is synergistic for both quantum networking and computing, enhancing throughput and error rates [49][50] Question: Current quantum networks and providers - The company has four quantum networks serving various sectors, including defense and telecommunications [54] Question: Capella's role in the platform - Capella provides a revenue-generating application for secure communications, enhancing the company's capabilities in space-based quantum networking [70] Question: Updates on the technical roadmap - The development of the tempo system is ongoing, with performance metrics being actively worked on [77] Question: Impact of ID Quantique acquisition on guidance - The acquisition has been factored into internal estimates, contributing to the company's revenue guidance for the year [91] Question: Future of quantum networking adoption - The company sees leading companies beginning to invest in quantum networks for secure communications, indicating a growing market [96]