Core Insights - Rigetti Computing is a notable quantum computing start-up with stock trading around $11 per share, previously reaching $20 early in the year, raising questions about its potential to return to that price by the end of 2025 [1] Company Overview - Rigetti Computing focuses on providing a full-stack quantum computing solution, including quantum processing units (QPUs) and necessary software, positioning itself as a potential leader in the quantum computing arms race [3] - The company employs a superconducting approach to quantum computing, cooling particles to nearly absolute zero to enhance measurement accuracy, indicating that its technology is currently available [7] Industry Challenges - The primary challenge in quantum computing is achieving computing accuracy, which is a common issue across all manufacturers [4] - Quantum computing utilizes qubits, which can exist in a superposition of states, making them more powerful than traditional bits, but this also introduces potential for errors in calculations [5][6] Product Offering - Rigetti's Novera QPU, a 9-qubit unit, is priced starting at $900,000 and boasts a 99.4% 2-qubit gate fidelity, showcasing the company's advancements in quantum technology [9] - Despite having a product available, Rigetti's sales remain low, with Q1 revenue reported at $1.5 million, as institutions are currently seeking government grants to fund purchases [10] Market Dynamics - A significant order from a company interested in deploying quantum technology could lead to a surge in Rigetti's stock price, potentially driving it toward $20 per share [11] - The stock's performance is largely influenced by market sentiment and news within the quantum computing sector, making it more speculative than a solid investment [12]

Core Insights - Rigetti Computing has completed sales of $350 million in gross proceeds from its common stock through an at-the-market equity offering program, bringing its total cash, cash equivalents, and available-for-sale investments to approximately $575 million with no debt [1] - The company plans to utilize the proceeds primarily for working capital, capital expenditures, and general corporate purposes, with potential future investments in strategic collaborations, acquisitions, or partnerships [1] Company Overview - Rigetti Computing is a pioneer in full-stack quantum computing, operating quantum computers over the cloud since 2017 and serving a diverse clientele including global enterprises, government, and research institutions through its Rigetti Quantum Cloud Services platform [2] - The company began selling on-premises quantum computing systems in 2021, featuring qubit counts ranging from 24 to 84, and introduced its 9-qubit Novera QPU in 2023 to support the R&D community [2] - Rigetti has developed the industry's first multi-chip quantum processor for scalable quantum computing systems and manufactures its chips in-house at Fab-1, the first dedicated and integrated quantum device manufacturing facility [2]

Core Viewpoint - Rigetti Computing and CoreWeave are identified as high-risk, high-reward investment opportunities in the quantum computing and AI sectors respectively [1][17] Rigetti Computing - Rigetti's stock has increased by over 970% in the past 12 months, indicating significant market interest [2] - The company offers quantum processing units (QPUs), full quantum systems, and a cloud-based platform for quantum applications, positioning itself as a comprehensive provider in the quantum computing space [4] - Rigetti's revenue is projected to grow at a compound annual rate of 52% from $10.8 million in 2024 to $37.7 million in 2027, despite a decline in revenue of 8% in 2023 and 10% in 2024 [9][10] - The company has a market cap of $3.3 billion and trades at 87 times its estimated sales for 2027, raising concerns about its high valuation [11] - Major clients include the Superconducting Quantum Materials and Systems Center and the Air Force Research Lab, with recent product launches including a 9-qubit Novera QPU and an 84-qubit Ankaa 3 quantum system [8] CoreWeave - CoreWeave's stock has surged approximately 250% since its IPO in March, reflecting strong growth in the AI sector [2] - The company transitioned from Ethereum mining to AI tasks, significantly expanding its infrastructure with a $100 million purchase of Nvidia's H100 GPUs [12] - CoreWeave's revenue is expected to grow at a compound annual rate of 105% from $1.92 billion in 2024 to $16.55 billion in 2027, despite a widening net loss from $31 million in 2022 to $863 million in 2024 [14][15] - With a market cap of $67.3 billion, CoreWeave trades at 4 times its estimated sales for 2027, suggesting a more reasonable valuation compared to Rigetti [16] Comparative Analysis - While Rigetti has potential in the expanding quantum computing market, its business remains unstable and is trading at inflated valuations, making it a riskier investment [17] - CoreWeave, on the other hand, is experiencing faster growth and has more reasonable valuations, positioning it as a more attractive investment option in the current market [17]

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margins from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in Q1 2024, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility-scale quantum computer concept through collaborations and government contracts, which are critical for future sales [4][5] - The NQCC contract is noted for having lower gross margins, but it is strategically important for the company to establish itself in the UK quantum ecosystem [50] Market Data and Key Metrics Changes - The company is actively participating in DARPA's quantum benchmarking initiative, which is crucial for advancing utility-scale quantum computing [4][27] - The interest in quantum computing remains primarily in R&D, with significant government contracts driving current sales, but commercial sales are expected to be several years away [39] Company Strategy and Development Direction - The company aims to scale up qubit counts using a chiplet approach, with plans to demonstrate over 100 qubits by the end of 2025 [16][18] - The focus is on achieving higher fidelity and faster gate speeds as part of the roadmap to utility-scale quantum computing [26][56] - The partnership with Quanta Computer is strategic, with a commitment of $250,000,000 over five years to support non-GPU hardware development [90] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the NQI reauthorization bill, which is expected to provide funding for quantum computing initiatives, although delays are anticipated [20][46] - The company is still in the R&D phase of quantum computing, with expectations that significant commercial sales will not materialize for another three to five years [39][41] Other Important Information - The company has received multiple awards to advance its quantum computing technologies, including a $5,480,000 grant for chip fabrication technology development [5][67] - The integration of optical signaling is seen as a critical advancement for scaling quantum systems, with expectations for implementation in the next few years [76][80] Q&A Session Summary Question: Progress on chip tiling and timelines - Management confirmed confidence in the chiplet approach to achieve 36 qubits by mid-year and over 100 by the end of 2025, with promising data supporting this strategy [16][17] Question: Updates on the NQI Reauthorization Act - Management indicated bipartisan support for the NQI reauthorization, but noted that it has not yet passed, with funding expected to take additional time to flow after approval [20][46] Question: Details on the DARPA contract - The DARPA Quantum Benchmarking Initiative is critical for achieving utility-scale quantum computing, with specific milestones related to qubit counts and fidelity required to progress to the next phase [25][26] Question: Customer interest in quantum processors - Management noted that while interest exists, the current environment is primarily R&D-focused, with significant sales unlikely until quantum advantage is achieved [39][41] Question: Optical signaling and its importance - Management highlighted the significance of optical signaling for future scalability, with a transition expected from coax to fiber optic cables in the coming years [76][80] Question: Revenue recognition from NQCC and Air Force contracts - Revenue from the NQCC opportunity is expected to be recognized over the next year, while the Air Force contract is projected to contribute approximately $1,000,000 over the upcoming year [81][82] Question: Future milestones with Quanta Computer - The partnership with Quanta is expected to evolve, with Quanta taking on more R&D responsibilities for control systems and hardware components over the next year [90][93]

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margin revenues from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases, new hires, and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in Q1 2024, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility scale quantum computer concept, collaborating with Riverlane on quantum error correction technology [4][5] - The consortium for the AFOSR award aims to develop chip fabrication technology, with a total award of $5,480,000 [5] Market Data and Key Metrics Changes - The company is actively participating in DARPA's quantum benchmarking initiative, which is critical for advancing utility scale quantum computing [4][28] - The interest in quantum computing remains primarily in R&D, with significant government contracts driving current sales [38][41] Company Strategy and Development Direction - The company is pursuing a chiplet approach to scale qubit counts, aiming for 36 qubits by mid-2025 and over 100 qubits by the end of 2025 [16][18] - The strategy includes enhancing quantum error correction capabilities and integrating digital chip-based technology with existing systems [8][9] - The partnership with Quanta Computer is strategic, focusing on non-GPU hardware components, which will allow the company to concentrate on QPU development [91][94] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the NQI reauthorization bill, which is expected to pass with bipartisan support, although funding may take additional time to materialize [21][48] - The company anticipates that achieving quantum advantage will take at least three to five years, with current efforts focused on R&D and technology milestones [38][42] Other Important Information - The company has closed a $35,000,000 investment from Quanta Computer, which strengthens their strategic collaboration [10][90] - The company is exploring optical signaling as a future technology to improve scalability and reduce thermal load in quantum systems [78][81] Q&A Session Summary Question: Progress on chip tiling and timelines - Management confirmed confidence in the chiplet approach to achieve 36 qubits by mid-2025 and over 100 by the end of 2025, with promising data supporting this strategy [16][17] Question: Updates on the DARPA contract - The DARPA Quantum Benchmarking Initiative is crucial for utility scale quantum computing, with specific milestones related to qubit count and fidelity required to progress to the next phase [26][28] Question: Revenue from DARPA phases - Phase A of the DARPA project includes a $1,000,000 award, with expectations for increased funding in subsequent phases [34] Question: Customer interest in quantum processors - Current interest remains in R&D, with significant government funding impacting the conversion of interest into orders [40][41] Question: Optical signaling and its roadmap - Optical signaling is a key element for future scalability, with expectations to transition from coax to fiber optic cables in the next three to four years [78][81] Question: NQCC revenue recognition timeframe - Revenue from the NQCC opportunity is expected to be recognized over the next year, with a similar timeline for the Air Force contract [84]

Financial Data and Key Metrics Changes - Revenues in Q1 2025 were $1,500,000, down from $3,100,000 in Q1 2024, indicating a significant decline [12] - Gross margins decreased to 30% in Q1 2025 from 49% in Q1 2024, primarily due to lower margins from a contract with the UK's NQCC [12] - Total operating expenses (OpEx) increased to $22,100,000 in Q1 2025 from $18,100,000 in the same period last year, driven by salary increases, new hires, and higher stock compensation expenses [13] - The operating loss for Q1 2025 was $21,600,000, compared to $16,600,000 in the prior year [13] - The company recorded a net income of $42,600,000 in Q1 2025, a turnaround from a net loss of $20,800,000 in the previous year, largely due to favorable non-cash changes in derivative warrant and earn-out liabilities [14] Business Line Data and Key Metrics Changes - The company is focusing on advancing its utility scale quantum computer concept through collaborations and government contracts, which are critical for future sales [4][5] - The NQCC contract is noted for its lower gross margin profile, impacting overall profitability [12] Market Data and Key Metrics Changes - The company has been awarded multiple contracts, including a $1,000,000 award from DARPA for the Quantum Benchmarking Initiative, which is seen as strategically important despite its relatively small monetary value [34] - Interest in quantum computing remains primarily in R&D, with significant reliance on government contracts and academic research funding [41] Company Strategy and Development Direction - The company aims to demonstrate a chiplet approach to scale qubit counts, targeting over 100 qubits by the end of 2025 [16][19] - The strategy includes collaborations with various institutions to enhance quantum error correction capabilities and improve chip fabrication technology [5][6] - The company is optimistic about the NQI reauthorization, which is expected to provide funding for quantum computing initiatives, although delays in passing the bill are noted [22][50] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the chiplet approach as a means to scale up qubit counts, emphasizing its importance for the entire industry [19] - The company is optimistic about the future of quantum computing, although it acknowledges that achieving quantum advantage is still several years away [39] - Management highlighted the strategic importance of government contracts and collaborations in driving future growth [41][42] Other Important Information - The company has closed a $35,000,000 investment from Quanta Computer, which is expected to strengthen their partnership and reduce R&D costs in non-QPU hardware areas [10][96] - The company is exploring optical signaling as a future technology to improve scalability and reduce thermal load in quantum computing systems [80][84] Q&A Session Summary Question: Progress on chip tiling to reach 36 qubits - Management confirmed that the chiplet approach is critical for scaling qubit counts and expressed confidence in achieving the target by mid-year [16][19] Question: Updates on NQI Reauthorization Act - Management noted bipartisan support for the NQI reauthorization but indicated that it has not yet passed, with funding expected to take additional time to flow [21][50] Question: Details on the DARPA contract - The DARPA Quantum Benchmarking Initiative is crucial for developing utility scale quantum computing, with specific milestones related to qubit fidelity and gate speed [27][90] Question: Customer interest in acquiring processors - Management stated that interest remains high, but funding issues are currently hindering conversion to orders [41][42] Question: Timeframe for the 36 qubit QPU upgrade - Management indicated that the upgrade could occur in the second half of the year, depending on the demonstration of the chiplet approach [51][54] Question: Importance of optical signaling - Management emphasized the significance of optical signaling for future scalability and the transition from coax to fiber optic cables [80][84] Question: Revenue recognition from NQCC and Air Force contracts - Management expects revenue from the NQCC contract to be recognized over the next year, with the Air Force contract contributing approximately $1,000,000 over its three-year term [87]

Core Insights - Rigetti Computing, Inc. reported its financial results for Q1 2025, highlighting significant government-funded projects and advancements in quantum computing technology [1][2][3] Financial Highlights - Total revenues for Q1 2025 were $1.5 million, a decrease from $3.1 million in Q1 2024 [7][23] - Total operating expenses for Q1 2025 were $22.1 million, compared to $18.1 million in Q1 2024 [7][23] - The operating loss for Q1 2025 was $21.6 million, up from a loss of $16.6 million in Q1 2024 [7][23] - Net income for Q1 2025 was $42.6 million, which includes $62.1 million of non-cash gains from changes in fair value of derivative warrant and earn-out liabilities [7][23] - As of March 31, 2025, cash, cash equivalents, and available-for-sale investments totaled $209.1 million, increasing to $237.7 million by April 30, 2025 [7][9] Recent Business Developments - Rigetti was selected to participate in DARPA's Quantum Benchmarking Initiative, advancing to Stage A with a potential value of up to $1 million [4] - The company received a $5.48 million AFOSR award to develop its chip fabrication technology, collaborating with several academic institutions [5] - Rigetti was awarded £3.5 million in Innovate UK Quantum Mission Pilot Awards to enhance quantum error correction capabilities [6] Technical Updates - Rigetti successfully demonstrated the integration of a hybrid microwave-optical quantum transducer with a superconducting qubit, enabling optical control and promising scalability [12] - The company leveraged its new quantum optimization algorithm, quantum preconditioning, to improve classical optimizers for energy grid problems, showcasing practical applications of quantum computing [13] Strategic Collaborations - Rigetti closed a $35 million investment from Quanta Computer, enhancing its strategic collaboration [9] - Collaborations with various institutions aim to create an open-architecture quantum computing testbed and improve quantum error correction [18]

Core Insights - Rigetti Computing has successfully closed a $35 million investment from Quanta Computer, purchasing shares at approximately $11.59 each, as part of a strategic collaboration agreement [1][2] Company Overview - Rigetti Computing is a pioneer in full-stack quantum computing, operating quantum computers over the cloud since 2017 and serving various clients through its Rigetti Quantum Cloud Services platform [2] - The company began selling on-premises quantum computing systems in 2021, with qubit counts ranging from 24 to 84, supporting national laboratories and quantum computing centers [2] - Rigetti introduced its 9-qubit Novera QPU in 2023, designed for high-performance integration into existing cryogenic and control systems [2] - The company has developed the first multi-chip quantum processor for scalable quantum computing systems and manufactures its chips in-house at Fab-1, the first dedicated quantum device manufacturing facility [2] Strategic Collaboration - The collaboration with Quanta is expected to leverage Quanta's expertise in notebook and server manufacturing alongside Rigetti's advancements in superconducting quantum computing, positioning the company at the forefront of the quantum computing industry [2]

Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $2.3 million, down from $3.4 million in Q4 2023, indicating a decline in revenue [15] - Gross margins in Q4 2024 were 44%, significantly lower than 75% in Q4 2023, primarily due to lower margin revenues from a contract with the UK's NQCC [16] - Total operating expenses (OpEx) in Q4 2024 were $19.5 million, slightly down from $19.7 million in the same period of the prior year [17] - Net loss for Q4 2024 was $153 million, or $0.68 per share, compared to a net loss of $12.6 million, or $0.09 per share, in Q4 2023 [17] - Cash, cash equivalents, and available-for-sale investments totaled $217.2 million as of December 31, 2024 [18] Business Line Data and Key Metrics Changes - Rigetti sold its first Novera QPU to Montana State University in December 2024, marking a significant milestone in sales to academic institutions [7] - An additional Novera sale occurred in Q4 2024 to the UK government, indicating growth in government sales [8] Market Data and Key Metrics Changes - The collaboration with Quanta Computer, which includes a $35 million investment in Rigetti shares and a commitment of over $250 million for hardware development, is expected to strengthen Rigetti's market position [6][28] - The US government is expected to increase funding for quantum computing, with a bipartisan bill proposing $2.5 billion over five years, which could benefit Rigetti [30][34] Company Strategy and Development Direction - Rigetti aims to leverage its partnership with Quanta to enhance its superconducting quantum computing capabilities and expand its market presence [5][6] - The company is focused on R&D milestones, with plans to scale its systems to over 100 qubits by the end of 2025, while maintaining a strong emphasis on error rate reduction [13][39] - Rigetti's open modular architecture is seen as a competitive advantage, allowing for easier integration of third-party innovations [121] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding government funding initiatives and their potential impact on future sales and contracts [34][36] - The company remains focused on R&D, with expectations that commercial sales will not significantly increase in the near term, projecting a timeline of four to five years before commercial viability [39][40] Other Important Information - Rigetti launched its 84-qubit Ankaa-3 system in December 2024, achieving significant milestones in gate fidelity [9][10] - The company is exploring advanced technologies such as fiber optics for signal transmission to enhance scalability and performance [96][98] Q&A Session Summary Question: Can you help us understand the Quanta partnership? - The partnership with Quanta was initiated about a year ago, focusing on leveraging their manufacturing capabilities and financial investment to enhance Rigetti's quantum computing technology [22][24][28] Question: What is the status of government funding? - A bipartisan bill proposing $2.5 billion for quantum computing is expected to be signed soon, with funding likely to benefit DOE labs and Rigetti [30][34] Question: How does the cash position affect R&D and sales? - Rigetti has approximately $500 million available for investment over the next five years, which should support R&D without the immediate need for additional cash raises [36][39] Question: Can you discuss the QPU sale to Montana State University? - The sale was part of Rigetti's strategy to build a quantum ecosystem for research applications, focusing on fundamental understanding rather than commercial competition [45][46] Question: What is the scaling approach for reaching 100 qubits? - Rigetti plans to use a tiling approach to scale its systems, with a target of demonstrating 36 qubits by mid-2025 and over 100 qubits by the end of the year [85][92] Question: How does Rigetti differentiate itself from competitors? - Rigetti's open modular architecture allows for easier integration of third-party innovations, which is a significant advantage over competitors with more closed systems [121]