D-Wave Quantum (US:QBTS)2025-08-07 13:02Financial 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]