D-Wave Quantum (QBTS)2025-05-08 13:02Financial Data and Key Metrics Changes - The company reported record quarterly revenue of $15 million for Q1 fiscal 2025, representing a 509% increase from $2.5 million in Q1 fiscal 2024 [21][24] - Non-GAAP gross profit reached a record $14 million, up 644% from $1.9 million in the same quarter last year [24] - The net loss for Q1 fiscal 2025 was $5.4 million, a significant reduction from a net loss of $17.3 million in Q1 fiscal 2024, marking the lowest quarterly loss since going public [24][26] - Adjusted EBITDA loss decreased by 53% to $6.1 million from $12.9 million year-over-year [24] Business Line Data and Key Metrics Changes - Bookings for Q1 were $1.6 million, down 64% from $4.5 million in Q1 fiscal 2024, with professional services bookings comprising over 50% of the total [22] - The company has 133 customers, including 69 commercial customers, with 36% being Forbes Global 2000 companies [23] Market Data and Key Metrics Changes - The company has seen a 153% increase in website traffic from October 2024 to March 2025, and media coverage increased by 803% from February to March 2025 [18] Company Strategy and Development Direction - The company aims to be the first independent publicly held quantum computing company to achieve sustained profitability with less funding than competitors [25] - The focus is on enhancing blockchain security and efficiency through quantum computing, with ongoing discussions for partnerships in this area [8][43] - The company is progressing on its product roadmap, targeting general availability of the Advantage 2 quantum computer by the end of the quarter [9][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's technology and commercial opportunities, highlighting the strong interest in quantum computing solutions [19][102] - The company is optimistic about the future, citing increased customer engagement and interest in quantum applications [19][102] Other Important Information - The Advantage 2 quantum computer has achieved significant technical milestones, including calibration of 4,400+ qubit processor chips and successful quantum error mitigation [9][10] - The company has completed the physical assembly of the Advantage 2 system at Davidson Technologies, with installation nearing completion [11] Q&A Session Summary Question: Clarification on Davidson Technology - Management clarified that the Davidson system is not part of previously mentioned system sales and is focused on developing applications for the US government [30][32] Question: Error Correction and Cryogenic Control - Management stated that the company is a leader in cryogenic control, operational today, while error correction for gate model systems is still under development [36][39] Question: Blockchain Application Partnerships - Management indicated that they are open to partnerships with organizations that specialize in blockchain, emphasizing the potential for enhancing security and efficiency [42][43] Question: System Sale Pricing and Pipeline Activity - Management noted that while the gross margin from the recent system sale is a good proxy, each deal will have unique elements [45][47] - The sales pipeline is healthy, with increased activity from larger organizations, although longer procurement processes are expected [50] Question: Revenue Per Customer Growth - Management observed that initial applications often lead to multiple opportunities, with larger companies engaging for proof of concept [60][62] Question: Future Profitability and Revenue Run Rate - Management did not provide specific revenue run rate estimates for achieving profitability but confirmed sufficient liquidity to reach that point [63]