Rigetti(US:RGTI)2025-03-06 06:40Financial Data and Key Metrics Changes - Revenues in Q4 2024 were $2.3 million, down from $3.4 million in Q4 2023, indicating a decrease of approximately 32.4% year-over-year [15] - Gross margins in Q4 2024 were 44%, significantly lower than 75% in Q4 2023, primarily due to lower margins 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 commitment of over $100 million from both parties, aims to strengthen Rigetti's position in the quantum computing market [6] - The partnership is expected to leverage Quanta's strengths in server manufacturing to enhance Rigetti's quantum computing technology [5] Company Strategy and Development Direction - Rigetti aims to be at the forefront of the quantum computing industry by focusing on superconducting quantum technology and modular architecture [6] - The company plans to scale its systems to over 100 qubits by the end of 2025, with a targeted reduction in error rates [13] - Rigetti emphasizes the importance of R&D milestones over immediate commercial sales, indicating a long-term focus on technology development [39] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding potential government funding, including a bipartisan bill for $2.5 billion aimed at supporting quantum computing initiatives [30][34] - The company anticipates significant investments from the Department of Energy (DOE) and the Department of Defense (DoD) in the coming years [34] - Management believes that superconducting qubits are the winning modality for quantum computers, citing fast speeds and scalability as key advantages [13] Other Important Information - Rigetti's collaboration with Quanta includes a $35 million investment in Rigetti common stock, pending regulatory clearance [6] - The company launched its 84-qubit Ankaa-3 system in December 2024, achieving major fidelity milestones [9] Q&A Session Summary Question: Can you help us understand the Quanta partnership? - The partnership was initiated by Quanta seeking a suitable quantum computing partner, with discussions starting nearly a year ago. Rigetti's technology was deemed a strong fit for Quanta's goals [22][24] Question: What is the status of government funding? - A bipartisan bill for $2.5 billion has been introduced, with expectations for it to be signed soon, which would benefit DOE labs that Rigetti relies on for funding [31][34] Question: How does the cash position affect R&D and marketing? - Rigetti has approximately $500 million available for investment over the next five years, allowing for continued focus on R&D without immediate cash concerns [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, with the university focusing on fundamental quantum computing experiments [45] Question: What is the scaling approach for reaching 100+ qubits? - Rigetti plans to use a tiling approach to scale its systems, with initial milestones set for 36 qubits by mid-2025 and over 100 qubits by the end of the year [85][92] Question: How does the open modular architecture benefit Rigetti? - The open architecture allows for easier integration of innovative solutions from third parties, which is viewed positively by government labs and enhances Rigetti's competitive edge [121]