Four pure-play quantum computing companies have posted their Q1 2023 earnings results.
IonQ, Rigetti, D-Wave, and Quantum Computing Inc. all posted losses again, with some seeing increased revenue gains.
D-Wave secured a fifth quarter of increased bookings. IonQ achieved 29 algorithmic qubits on its IonQ Forte system and completed construction of a second Aria system. QCI launched its Quantum Random Number Generator system. Rigetti launched its 84-qubit Ankaa-1 system internally with plans for an external launch later in the year.
While it broke out results for Q4 2022, Honeywell hasn’t broken out individual results for Quantinuum this quarter.
D-Wave: Another loss, bookings increase
D-Wave revenue for the first quarter of fiscal 2023 was $1.6 million, a decrease of $130,000 (7.6 percent) from Q1 2022 revenue of $1.7 million. GAAP gross profit for the quarter was $421,000, a decrease of $676,000; Non-GAAP gross profit was $852,000, a decrease of $317,000.
Net Loss for the quarter was $24.6 million, up from a net loss of $11.7 million in Q1 2022. Adjusted EBITDA for the first quarter of fiscal 2023 was a loss of $16.9 million, compared with negative $9.8 million last year.
The company said the increased loss was due primarily to higher public company and headcount-related expenses.
Bookings for the first quarter of fiscal 2023 were $2.9 million, up $2.2 million year-on-year. This represents D-Wave’s fifth consecutive quarter of sequential quarter-to-quarter growth in bookings and the fourth consecutive quarter of year-over-year growth in bookings.
“Our first quarter results reflect our continued measured progress across key business initiatives including commercial customer adoption, production-readiness efforts, product development, and scientific advancements,” said Dr. Alan Baratz, CEO of D-Wave. “We continue to expand our business with commercial customers with the percentage of our revenue derived from commercial customers increasing by 30 percent when comparing our last four quarters with the immediately preceding four quarters.
"First-quarter bookings of $2.9 million were up by 297 percent on a year-over-year basis, representing the fifth consecutive quarter of sequential quarter-to-quarter increases in bookings. On the technical front, we achieved a significant scientific milestone, published in Nature, proving that the D-Wave Advantage system’s use of quantum delivers a speedup over classical for an important class of complex problems, 3D spin glasses. The observed speedup matches the theory of coherent quantum annealing and shows a direct connection between coherence and the core computational power of quantum annealing. We believe this research has important implications to optimization and the benefits will increase with future generation systems, including Advantage2.”
D-Wave’s consolidated cash balance totaled $9 million.
“We believe that D-Wave has the opportunity to be the first independent publicly held quantum computing company to achieve sustained profitability and to achieve this milestone with substantially less funding than required by any other independent publicly held quantum computing company,” CFO John Markovich said during the earnings call.
IonQ: Builds another quantum computer
IonQ posted first-quarter revenues of $4.3 million, compared to $2 million in the prior year period.
Net loss was $27.3 million and adjusted EBITDA loss was $15.9 million for the first quarter; compared to a Net Loss of $4.2m and Adjusted EBITDA loss of $10.3m last year.
“IonQ is off to a strong start this year – technically, operationally, and financially,” said Peter Chapman, President and CEO of IonQ. “Most importantly, we met our FY23 technical target of 29 algorithmic qubits (AQ) seven months earlier than expected.”
“We are also excited to announce that we hit this target using IonQ Forte, our newest world-class quantum system. IonQ Forte represents a 16x step up in power from our IonQ Aria system. With Forte already running select customer jobs, this milestone brings us yet closer to reaching quantum advantage.”
IonQ secured $4.1 million in new bookings for the first quarter.
On the technical side, IonQ achieved 29 algorithmic qubits on its IonQ Forte system, and completed construction of IonQ Aria 2, a second Aria-class quantum computer. This new machine will join IonQ Aria 1 on the public cloud this quarter.
“Our next major technical milestone is achieving 35 AQ, which is particularly significant. At 35 AQ, simulating the operations of quantum algorithms using classical hardware can become exceedingly challenging and costly,” Chapman said during the earnings call. “We expect at 35 AQ, some customers will have an increasingly clear business case for running models on actual quantum computers, rather than attempting to simulate those models with classical computers.”
Rigetti: Deploys 84-qubit Ankaa-1 system
Rigetti saw total revenues for Q1 2023 of $2.2 million, compared to $2.1 million in the same period of 2022.
Operating loss for the quarter was $22 million, compared to $25.3 million in the same period of 2022. Net loss for Q1 2023 was $23.4 million, compared to $17.6 million last year.
“I’m pleased to report that we believe we are on track and progressing toward the nearer-term strategic priorities and technology roadmap we announced in February 2023. Following the implementation of our updated business strategy we announced in February 2023, which is designed to improve our focus, operating efficiency and preserve cash resources, we are starting to see positive impacts,” said Dr. Subodh Kulkarni, Rigetti CEO.
The quarter saw the company launch its 84-qubit Ankaa-1 system internally. Testing, characterization, and design optimization is underway with an external launch to select customers expected in mid-2023.
The Ankaa-2 84-qubit system, is expected to be deployed and made available to external customers in the fourth quarter of 2023.
Rigetti’s cash and equivalents currently total $122 million. Based on its current operating plan, the company anticipates that it will need to raise additional funding by late 2024 or early 2025.
Quantum Computing Inc.: Launches QRNG system
In the first quarter of commercialization, Quantum Computing Inc.'s first quarter revenues totaled approximately $121,000. compared to $31,000 generated in the first quarter 2022.
The Company reported a Net Loss of $8.5 million for the first quarter of 2023, compared to a Net Loss of $7.1 million last year.
“We have been building toward this quarter. QCI is prioritizing top-line growth as we roll out our leading-edge quantum computing product line throughout 2023 and beyond. We are establishing ourselves as a leader in photonic quantum information processing, which has proven to be a distinctly superior methodology featuring greater processing capability, higher-speed, superior accuracy, and security at less cost with lower power requirements than the alternative quantum approaches,” said Robert Liscouski, co-founder, CEO & chairman of QCI.
The company announced its reprogrammable and non-repeatable Quantum Random Number Generator (QRNG) quantum computer. The QRNG is available through a cloud-based subscription on the company website, and will be followed by an option to purchase the hardware later in 2023.
The quarter also saw the company launch a wholly-owned subsidiary, QI Solutions, Inc., to deliver quantum products and services to the US government agencies and defense markets.
QCI received a subcontract award from SSAI to support NASA’s testing of quantum photonic sensing solutions for monitoring climate change. QCI will test an existing LiDAR system designed to remotely measure the physical properties of different types of snowpacks, including the density, particle size, and depth.
This week also saw the company announce plans to acquire AI startup Millionways. QCI has signed a letter of intent to acquire 100 percent of the firm, which develops AI algorithms used to analyze users on their emotional state and personality insights. Terms of the deal were not shared.
More in Investment / M&A
Conference Session DCD>Talks State of the Market with Howard Berry, Avison Young