D-Wave Quantum (QBTS) Q1 2025 Earnings Call May 08, 2025 08:00 AM ET Speaker0 Good morning, everyone, and welcome to D Wave's First Quarter of Fiscal Year twenty twenty five Earnings Conference Call. Today's call is being recorded. At this time, I'd like to turn the floor over to Kevin Hunt of Investor Relations. Please go ahead. Speaker1 Thank you, and good morning. With me today are Doctor. Alan Barris, our Chief Executive Officer and John Hakavich, our Chief Financial Officer. Before we begin, I'd like t ...

Business & Technology Highlights - D-Wave's annealing quantum computer demonstrated quantum supremacy on a real-world problem, solving a magnetic materials simulation in minutes compared to nearly one million years for a classical supercomputer[8] - Ford Otosan deployed a hybrid-quantum application, reducing vehicle scheduling time from 30 minutes to less than five minutes, a 6x improvement[10] - A proof-of-concept successfully combined quantum and AI for drug discovery with Japan Tobacco, resulting in better molecular structures for drug development[13] - Jülich Supercomputing Centre (JSC) purchased the first D-Wave Advantage system to support quantum computing exploration in Europe[16] - D-Wave introduced new hybrid quantum solver capabilities, including support for continuous variables with linear interactions, enabling new use cases like budget allocation[20] - Research indicates quantum computation for blockchain hashing could reduce electricity costs by up to a factor of 1,000 compared to classical resources[22] Financial Performance (Q1 2025) - Quarterly revenue decreased to $2.5 million from $15.0 million in Q1 2024[27] - Quarterly gross profit decreased to $1.7 million from $13.9 million in Q1 2024[29] - Quarterly gross margin increased to 67.3% from 92.5% in Q1 2024[30] - Cash position decreased to $27.3 million from $304 million in Q1 2024[32] - Quarterly Adjusted EBITDA Loss improved to $(6.1) million from $(12.9) million in Q1 2024[33]

IonQ公布业绩，好于预期的财务业绩，为量子计算这一前沿科技领域提供了一线曙光。 美东时间周三，IonQ公布第一季度财报，主营收入依旧以直接销售量子硬件和基于订阅的量子云服务 为主： 财务表现：第一季度营收760万美元，持平同比，环比下滑35%，但略高于分析师预期的750 万美元；净亏损3230万美元，较去年同期的3960万美元有所收窄。 发展预期：管理层预计全年营收在7500万至9500万美元之间，第二季度营收预期为1600万至 1800万美元 业务进展：近期宣布一系列合作与收购，包括收购瑞士量子密码公司ID Quantique控股权和 与EPB达成2200万美元合作。 业绩亮眼但仍未实现盈利 虽然IonQ的业绩在短期内带来一丝乐观情绪，但投资者需要清醒认识到，量子计算行业的核心矛盾仍 然存在：巨大的技术潜力与当前有限的商业化能力之间的鸿沟。 对比来看，IonQ的竞争对手Quantum Computing在3月底公布的第四季度业绩显示收入下降17%，季度亏 损进一步扩大，形成鲜明对比。而D-Wave Quantum和Rigetti Computing将分别于美东时间本周四和下 周公布业绩。IonQ的良好业绩 ...

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]

Financial Performance & Market Opportunity - IonQ预计2025财年收入为7500万美元至9500万美元[13] - 截至2025年3月31日，IonQ的现金、现金等价物和投资为6.971亿美元[13] - 到2035年，量子计算、安全和网络市场的潜在市场规模（TAM）预计将达到870亿美元[13] - 量子计算和网络预计到2040年将创造高达8800亿美元的经济价值[18] Technology & Innovation - IonQ拥有超过950项量子计算和量子网络专利组合（包括已授权和待批准的专利）[12, 21, 23] - IonQ正在开发通往数百万量子比特的路径，这得益于对Lightsynq的拟议收购[8] - IonQ的离子阱架构具有高保真度和连接性，以及较低的纠错开销[8, 39] Commercialization & Partnerships - IonQ是唯一在所有主要云平台上提供量子硬件的公司[13] - IonQ正在通过与EPB的2200万美元交易，开发量子就绪型劳动力[70] - IonQ正在扩展其亚太地区的生态系统，并在日本和韩国签署了谅解备忘录（MOU）[62] Strategic Expansion - IonQ正在通过收购和合作，扩大其全球业务范围，包括收购Qubitekk、Entangled Networks以及ID Quantique的多数股权[61] - IonQ正在开发量子中继器，以扩展量子网络的范围，目标是在中继器之间实现数百公里的距离[88, 90]

Industry Overview - Quantum computing is a rapidly growing area in technology with the potential to transform the tech world and drive significant growth [1] - The efficiency gains from quantum computing could address the increasing demands of artificial intelligence (AI) and energy consumption [5] Company Analysis: Rigetti Computing - Rigetti Computing is emerging as a prominent player in the quantum computing niche, despite facing struggles this year [2] - The company has seen its stock value decline over 35% since the beginning of the year, yet it maintains a market cap of nearly $3 billion [9] - Rigetti generated less than $11 million in sales last year, with operating expenses exceeding $74 million, indicating a challenging path to profitability [10] - The company's valuation is high, trading at over 180 times its trailing revenue, which raises concerns about its affordability given the associated risks [11] Market Sentiment and Future Outlook - A report from McKinsey suggests that achieving commercially viable quantum computing may not occur until 2035 or later, creating uncertainty for companies like Rigetti [6] - The long timeline for quantum computing to become mainstream means that Rigetti's advancements may not yield immediate results [7] - Investors are advised to approach Rigetti as a high-risk, high-reward investment, with the potential for significant long-term gains if the industry grows [12][13]

Industry Overview - The launch of the "Benyuan Tianji 4.0," a quantum computing measurement and control system supporting over 500 qubits, signifies China's advancement in the quantum computing industry, establishing a foundation for mass production of hundred-qubit quantum computers [1] - Quantum computing is becoming a global technological battleground, with significant investments from tech giants; for instance, IBM announced a $150 billion investment over five years, with $30 billion allocated specifically for quantum computing [1] - The Chinese government has been progressively enhancing its quantum technology strategy for three consecutive years, transitioning from "opening new tracks" to "establishing investment mechanisms," highlighting its strategic importance as a core engine of new productive forces [1] Company Developments - Guoxin Technology reported successful internal testing of a new quantum-resistant encryption chip developed in collaboration with its affiliated company [3] - Guandun Quantum is recognized as a leading player in the domestic quantum industry [4] Policy and Ecosystem - The industry chain is focusing on breakthroughs in core components and devices, such as chips and measurement control technologies, while also constructing a "quantum+" ecosystem to promote the integration of production, education, and research [2] - The policy framework aims to provide clear research and market expansion pathways for upstream and downstream enterprises in the quantum technology sector, indicating a further focus on the industrialization of quantum technology [2]

Company Overview - Rigetti Computing, Inc. is a pioneer in full-stack quantum computing, operating quantum computers over the cloud since 2017 [2] - The company serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform [2] - In 2021, Rigetti began selling on-premises quantum computing systems with qubit counts between 24 and 84 qubits [2] - The company's 9-qubit Novera™ QPU was introduced in 2023, designed for high-performance, on-premises use [2] - Rigetti has developed the industry's first multi-chip quantum processor for scalable quantum computing systems [2] - The company designs and manufactures its chips in-house at Fab-1, the first dedicated and integrated quantum device manufacturing facility [2] Upcoming Events - Rigetti CEO, Dr. Subodh Kulkarni, will participate in a fireside chat at the 20th Annual Needham Technology, Media & Consumer Conference on May 9, 2025 [1] - The event will be available for live webcast at 1:30 PM ET, with a replay accessible for 90 days post-event [1]

Core Insights - Quantum Computing Inc. (QCi) will host a conference call and webcast on May 15, 2025, at 4:30 p.m. Eastern Time to discuss its operational progress for Q1 2025 [1] - The company will release its Q1 2025 financial results on the same day after market close [1] Company Overview - Quantum Computing Inc. is an innovative company specializing in integrated photonics and quantum optics technology, providing accessible and affordable quantum machines [4] - The company's products are designed to operate at room temperature and low power, making them cost-effective [4] - QCi's technology portfolio includes capabilities in high-performance computing, artificial intelligence, cybersecurity, and remote sensing applications [4]

Core Viewpoint - D-Wave Quantum Inc. is a prominent player in the quantum computing industry, which is projected to grow at a CAGR of over 20% for the next five years, despite facing challenges such as high valuation and legal issues [1][10]. Company Overview - D-Wave Quantum trades at a price-to-sales ratio of 262.07, raising investor caution despite a significant increase in stock value over the past year [2]. - The company has achieved a maximum recurring annual revenue of approximately $9 million, with revenues remaining flat year-over-year [7]. Competitive Landscape - D-Wave focuses on annealing quantum technology, which critics argue has limited commercial applications compared to gate-model quantum architecture pursued by competitors like IBM [3][4]. - The small size of D-Wave compared to larger tech firms may hinder its ability to compete effectively in the evolving quantum industry [9]. Legal and Financial Challenges - D-Wave is currently facing multiple legal challenges related to alleged securities fraud, which could further impact its stock price [5][6]. - The company has struggled to achieve profitability and relies heavily on capital raises for operations, leading to speculation about its long-term viability [8]. Market Sentiment - Despite the challenges, Wall Street analysts maintain a positive outlook, with all six analysts rating D-Wave as a Buy and a consensus price target suggesting a potential upside of 21.72% [10][11]. - Short interest in D-Wave shares has decreased slightly, indicating that not all investors are aligned with the bearish sentiment expressed in recent reports [10].