Rigetti(US:RGTI)2022-05-17 02:50Financial Data and Key Metrics Changes - In Q1 2022, the company generated revenue of $2.1 million, a decrease from $2.4 million in the same period last year, primarily due to the completion of a large government project [43] - Total GAAP operating expenses for the quarter were $25.5 million, up from $9.8 million a year ago, driven by higher stock compensation and increased headcount [46] - Net GAAP loss was $10.5 million or $0.20 per share, compared to a net loss of $7.8 million or $0.36 per share in the prior year [52] - As of March 31, 2022, cash and cash equivalents stood at $206.6 million, significantly up from $11.7 million at the end of 2021 due to proceeds from a business combination [53] Business Line Data and Key Metrics Changes - The majority of revenues in Q1 2022 were derived from development contracts, with expectations for this trend to continue as the company ramps up its Quantum Computing-as-a-Service (QCaaS) business [44] - The company anticipates that QCaaS revenue growth will eventually outpace development contract revenue growth over time [44] Market Data and Key Metrics Changes - The company is focused on expanding its presence in the quantum computing market, with partnerships across various sectors including government and private enterprises [15][18] - The company is working with key public and private sector players to explore applications in areas such as machine learning, materials simulation, and drug discovery [16][17] Company Strategy and Development Direction - The company aims to build the world's most powerful quantum computers to address significant global challenges, with a focus on drug development, clean energy, and supply chain optimization [8][9] - The company is pursuing a vertically integrated approach, controlling the entire process from chip design to cloud delivery, which is seen as a competitive advantage [86] - The roadmap includes the introduction of an 84 qubit quantum computer in 2023, followed by a 336 qubit multi-chip processor later that year, and plans for 1,000+ and 4,000+ qubit systems by 2025 and 2027 respectively [32][33] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for quantum computing to create significant value, estimating up to $850 billion in annual value creation for end users and technology providers [23] - The company expects revenue for the full year 2022 to be between $12 million and $13 million, with an adjusted EBITDA loss between $50 million and $53 million, citing lower than anticipated new government contract opportunities as a limiting factor [56] Other Important Information - The company has a robust IP portfolio with over 140 patents issued and pending, which supports its competitive edge in the quantum computing space [14] - The company is actively pursuing development contracts with government agencies, including DARPA and the U.S. Department of Energy, to advance its technology [38][39] Q&A Session Summary Question: What is the customer mix between academic and corporate clients? - The business is currently heavily weighted towards development contracts and government customers, which is part of the long-term strategy to build relationships in the public sector [65][66] Question: How is the Aspen-M system performing? - The Aspen-M system is performing well and is the basis for many commercial partnerships, with plans to leverage it further as the company develops its technology [70][71] Question: How does Rigetti differentiate itself from competitors? - Rigetti's strengths lie in its vertical integration and hybrid approach to quantum computing, allowing for faster innovation cycles and a comprehensive service offering [86][88] Question: What are the key performance metrics to monitor for Rigetti? - Progress towards quantum advantage, particularly in quantum machine learning, is a key area to monitor, with expectations for advancements to emerge on an application-by-application basis [91][92] Question: What is the status of the $40 million contract backlog? - A substantial portion of the backlog remains tied to longer-term development contracts, with timing for revenue recognition dependent on government project phases [104][106] Question: What are the bottlenecks affecting the roadmap for future systems? - Higher than anticipated costs and supply chain uncertainties are impacting the timeline for the introduction of the 1,000 and 4,000 qubit systems [111][112]