Rigetti(US:RGTI)2024-11-12 18:33Financial Data and Key Metrics Changes - Revenues in Q3 2024 were $2.4 million, down from $3.1 million in Q3 2023, reflecting the variable nature of contract deliverables and timing with major government agencies [12] - Gross margins decreased to 51% in Q3 2024 from 73% in Q3 2023, attributed to a recent contract with a lower gross margin profile [12] - Total operating expenses (OpEx) in Q3 2024 were $18.6 million, slightly down from $19.1 million in the same period last year [13] - Net loss for Q3 2024 was $14.8 million or $0.08 per share, compared to a net loss of $22.2 million or $0.17 per share in Q3 2023 [13] - Cash, cash equivalents, and available-for-sale investments totaled $92.6 million as of September 30, 2024, with $12 million raised from the sale of common shares during Q3 2024 [14][15] Business Line Data and Key Metrics Changes - The company is on track to develop and deploy the anticipated 84-qubit Ankaa 3 system by the end of 2024, aiming for over 99% median 2-qubit gate fidelity [5][6] - The introduction of a new modular system architecture is planned, with a 36-qubit system expected by mid-2025 [5] Market Data and Key Metrics Changes - The company is focusing on government funding opportunities, particularly from the U.S. Government, which is seen as a primary source for funding ongoing research initiatives [21][22] - The NQI reauthorization is expected to significantly increase quantum funding, potentially reaching $2.5 billion over five years [47][50] Company Strategy and Development Direction - The company plans to leverage its ABAA technique and multi-chip architecture as the cornerstone of its scaling strategy for higher-qubit count systems [11] - The focus on tiling smaller qubit chips is seen as a more practical approach to scaling qubit counts compared to larger monolithic chips [27][52] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving targeted fidelities and scaling qubit counts, emphasizing the advantages of superconducting qubits for hybrid computing [17][21] - The company anticipates that successful execution of its roadmap will increase interest and funding from government and research customers [53][54] Other Important Information - The UK’s National Quantum Computing Centre officially opened a facility that will support quantum computing research, including the company’s 24-qubit Ankaa class system [10] - The company is collaborating with Riverlane to advance quantum error correction technology, which is critical for developing fault-tolerant quantum computers [8][39] Q&A Session Summary Question: Changes in roadmap and strategy - Management confirmed increased confidence in the roadmap and the ability to achieve targeted fidelities while scaling qubit counts [16][17] Question: Government funding opportunities - Management highlighted the importance of U.S. government funding and ongoing lobbying efforts to secure contracts, especially in light of the NQI reauthorization [20][21] Question: Balance between single chip processors and tiling - Management indicated that tiling 9-qubit chips is currently optimal, but they will explore other configurations as needed [24][26] Question: Quantum error correction focus - Management stated that error correction is already becoming relevant and will play a larger role as fidelity improves [30][31] Question: NQCC contract status - Management confirmed that the NQCC contract will continue through Q1 2025, with ongoing gross margin challenges [32] Question: International engagement and opportunities - Management noted increasing opportunities with international governments as hardware capabilities improve [56][58] Question: Total addressable market (TAM) outlook - Management projected a sizable market opportunity of $7.5 billion over the next five years, primarily from on-premise quantum computing for research customers [60][62]