Rigetti(US:RGTI)2024-05-10 02:00Financial Data and Key Metrics Changes - Revenues in Q1 2024 were $3.1 million, up 39% from $2.2 million in Q1 2023 [15] - Gross margins in Q1 2024 were 49%, down from 77% in Q1 2023 [15] - Operating loss for Q1 2024 was $16.6 million, improved from an operating loss of $22 million in Q1 2023 [18] - Net loss for Q1 2024 was $20.8 million, or $0.14 per share, compared to a net loss of $23.4 million, or $0.19 per share in Q1 2023 [18] - Cash, cash equivalents, and available for sale investments totaled $102.8 million as of March 31, 2024, compared to $99.9 million as of December 31, 2023 [19] Business Line Data and Key Metrics Changes - The company is growing its non-premises quantum processor unit (QPU) sales, with the delivery of a Novera QPU to Horizon Quantum Computing in April 2024 [9] - The Novera QPU Partnership Program was launched to support on-premises quantum ecosystems, aiming to create a network of quantum computing hardware, software, and service providers [10][11] Market Data and Key Metrics Changes - The company is currently in discussions with approximately 10 to 15 customers for quantum computing systems, primarily for research purposes [4] - The company has established a presence in Singapore with the sale of the Novera QPU to Horizon Quantum Computing, marking its first QPU installation in the region [9] Company Strategy and Development Direction - The company aims to achieve over 99% 2-qubit gate fidelity on its anticipated 84-qubit device by the end of the year, with plans to develop a 336-qubit system thereafter [8] - The company emphasizes an open modular approach to quantum computing, allowing for faster innovation by partnering with various companies specializing in different aspects of quantum technology [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving key milestones in their technology roadmap, including improvements in qubit count and fidelity [2] - The company believes that existing cash balances will be sufficient to meet operating cash needs until mid-Q4 2025 based on current business plans [20] Other Important Information - The company anticipates revenue recognition for the Novera sale in Q2 2024, depending on the terms of the contracts [38] - The company has raised $32.9 million from the sale of shares under its common stock purchase agreement, including $23.9 million raised in Q1 2024 [19] Q&A Session Summary Question: Details on the Novera sale to Horizon Quantum Computing - The sale was made to a Singapore-based company funded by the government, aiming to establish a hardware testbed for quantum computing [24] Question: Details on the Novera QPU Partner Program - The program aims to enable high-performing on-premises quantum computing by creating an ecosystem of partners, with no obligation for partners to purchase the Novera QPU [26] Question: Pipeline expectations in the U.S. and UK - The company feels optimistic about its early sales to national labs and expects additional sales opportunities in the U.S. and UK due to its established presence [30] Question: Revenue recognition timing for the Horizon sale - Revenue for the Horizon sale is expected to be recognized in Q2 2024 [38] Question: Long-term revenue opportunities versus near-term hardware sales - Management believes there is no trade-off between current hardware sales and future revenue opportunities from quantum computing services, viewing current sales as foundational for future applications [42]