Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal year 2025 totaled $3.1 million, an increase of approximately $900,000 or 42% from the 2024 revenue of $2.2 million [18] - Net loss for the second quarter was $167.3 million or $0.55 per share, an increase of $149.5 million or $0.45 per share from the 2024 net loss of $17.8 million or $0.10 per share [21] - Adjusted EBITDA loss for the second quarter was $20 million, an increase of $6.1 million or 44% from the 2024 adjusted EBITDA loss of $13.9 million [22] Business Line Data and Key Metrics Changes - Bookings for the second quarter totaled $1.3 million, an increase of approximately $600,000 or 92% from the 2024 bookings of $700,000 [19] - GAAP gross profit for the second quarter was $2 million, an increase of approximately $600,000 or 42% from the 2024 GAAP gross profit of approximately $1.4 million [21] - Non-GAAP gross profit for the second quarter was $2.2 million, an increase of approximately $600,000 or 39% from the 2024 non-GAAP gross profit of approximately $1.6 million [21] Market Data and Key Metrics Changes - The company has over 100 revenue-generating customers, including customers in the commercial, government, and research sectors, and nearly 2,000 Forbes Global 2000 companies [20] - The LaunchPad program has received more than 1,300 applications spanning business, government, and academic institutions since its introduction in January 2025 [16] Company Strategy and Development Direction - The company announced a new strategic development initiative focused on advanced cryogenic packaging to support both gate model and annealing quantum processor development [7] - The company aims to help organizations accelerate the use of annealing quantum computers in AI applications and has introduced a collection of developer tools for quantum AI and machine learning innovation [9] - The company is exploring M&A opportunities to accelerate R&D and product development activities [32][34] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the accelerating momentum across the business and highlighted the importance of the Advantage 2 quantum computer in achieving quantum supremacy [4][45] - The management noted that while there is a strong cash position, the timing of M&A activities is uncertain and will depend on market conditions [35] - Management emphasized the need for both annealing and gate model systems to address a full range of customer problems [13] Other Important Information - The company raised over $500 million in equity during the fiscal year, significantly improving its cash position to $819.3 million [24][25] - The company is investing in superconducting bump bond processes and upgrading its manufacturing operations to support future growth [26][27] Q&A Session Summary Question: What types of M&A does the company believe would make sense? - Management indicated that M&A is a strategic priority and will focus on accelerating R&D and product development activities [32][34] Question: Can you elaborate on the cryogenic news and its impact on the roadmap? - Management highlighted the importance of cryogenic control for scaling both annealing and gate model systems, noting faster-than-expected progress in this area [40][42] Question: What is the status of Advantage 2 and its deployment? - Management confirmed that Advantage 2 is crucial for demonstrating quantum supremacy and is driving increased customer interest [45][46] Question: Can you discuss the developer tools released? - Management explained that the new AI toolkit allows integration with PyTorch and enables the use of discrete data for machine learning, which is beneficial for quantum processes [54][56] Question: What is the retention rate for customers? - Management reported a retention rate exceeding 90% over a four-quarter period, with a focus on helping customers transition from experimentation to production applications [86]

Financial Data and Key Metrics Changes - Revenue for the second quarter of fiscal year 2025 totaled $3.1 million, an increase of approximately $900,000 or 42% from the 2024 revenue of $2.2 million [18] - GAAP gross profit for the second quarter was $2 million, an increase of approximately $600,000 or 42% from the 2024 GAAP gross profit of approximately $1.4 million [20] - Net loss for the second quarter was $167.3 million or $0.55 per share, an increase of $149.5 million or $0.45 per share from the 2024 net loss of $17.8 million or $0.10 per share [20] - Adjusted EBITDA loss for the second quarter was $20 million, an increase of $6.1 million or 44% from the 2024 adjusted EBITDA loss of $13.9 million [22] - The consolidated cash position as of June 30 was $819.3 million, representing over a 1900% increase from the fiscal 2024 second quarter consolidated cash balance of $40.9 million [24] Business Line Data and Key Metrics Changes - Bookings for the second quarter totaled $1.3 million, an increase of approximately $600,000 or 92% from the 2024 bookings of $700,000 [19] - The company signed new and renewing customer engagements with various organizations, including EON, GE Vernova, and the University of Oxford [13] Market Data and Key Metrics Changes - The company is experiencing high demand for purchasing systems, with numerous organizations globally interested in acquiring a D Wave quantum computer [9] - The LaunchPad program has received over 1,300 applications from business, government, and academic institutions since its introduction [15] Company Strategy and Development Direction - The company announced a strategic development initiative focused on advanced cryogenic packaging to support both gate model and annealing quantum processor development [5] - The company aims to accelerate its development efforts in support of its aggressive product roadmap towards 100,000 qubits [5] - The company is exploring M&A opportunities to enhance its R&D and product development activities [31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's strong cash position and its ability to explore M&A activities to propel business growth [17] - The management highlighted the importance of both annealing and gate model quantum computers in addressing a broad range of problems [12] - Management noted that while progress is being made, the government’s focus on gate model quantum computing may overlook the capabilities of annealing quantum computing [66] Other Important Information - The company is investing in superconducting bump bond processes and upgrading its manufacturing operations to support future growth [26] - The company is also expanding its professional services organization to meet growing demand for quantum optimization customer engagements [26] Q&A Session Summary Question: What types of M&A does the company believe would make sense? - Management indicated that M&A is now a strategic priority, focusing on accelerating R&D and product development activities [31] Question: Can you elaborate on the cryogenic news and its impact on the roadmap? - Management emphasized the importance of cryogenic control for scaling both annealing and gate model systems, noting faster-than-expected progress [39] Question: What is the status of Advantage Two and its deployment? - Management confirmed that Advantage Two is crucial for demonstrating quantum supremacy and is driving increased customer interest [42] Question: Can you elaborate on the developer tools released? - Management explained the introduction of a quantum AI toolkit that integrates with PyTorch, allowing for better machine learning model training [51] Question: What are the next milestones for Quantum AI? - Management stated that while no new announcements have been made, they are working on various approaches to AI and machine learning model training [56] Question: How has the tenor in the US government shifted regarding quantum annealing? - Management noted slow but steady progress in government interest, emphasizing the need for a broader focus on quantum computing approaches [66] Question: What is the customer retention rate? - Management reported a retention rate exceeding 90%, with efforts to help customers transition from experimentation to production applications [76]

Forward-Looking Statements Certain statements in this presentation are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various ...

Core Insights - D-Wave Quantum's significant growth this quarter is attributed to the successful launch and commercial deployment of its Advantage2 quantum annealer, resulting in a 509% year-over-year revenue increase [2][9] - The Advantage2 system features over 4,400 qubits and offers substantial performance improvements, enabling complex real-world applications in various sectors [6][9] - D-Wave Quantum's stock has increased by 67.4% over the past three months, outperforming the broader industry and benchmarks [3] Company Performance - The first commercial sale of the Advantage2 system to the Julich Supercomputing Center was a major contributor to the revenue growth in the last quarter [7][9] - A second deployment of the Advantage2 system is in progress at Davidson Technologies for U.S. defense applications, indicating its growing relevance in government sectors [7] - The Zacks Consensus Estimate for D-Wave Quantum's 2025 earnings suggests a 72% improvement over 2024, reflecting positive growth expectations [12] Product Development - Following its general availability in May 2025, D-Wave introduced new hybrid solvers for continuous and integer variables, expanding its use cases to include budgeting, scheduling, and resource optimization [8] - D-Wave also launched a quantum AI toolkit integrated with PyTorch, positioning the Advantage2 system as a platform for innovation in machine learning [8] Competitive Landscape - Competitors like IonQ are rapidly scaling up, with significant acquisitions and partnerships aimed at enhancing their quantum capabilities [9][10] - Rigetti Computing is focusing on qubit fidelity and error mitigation, positioning itself as a complete-stack provider with integrated software infrastructure [11]