Rigetti Reports Q2 Earnings, Revenue Up 40-, to Raise Another $75 Million

On August 12, Rigetti Computing, Inc. (NASDAQ: RGTI), a full-stack quantum computing company, announced its financial results for the second quarter of 2022 (ended June 30).

Balance sheet from December 31, 2021 to June 30, 2022 (unaudited)

3 month, 6 month basis operating statements (unaudited)

Six-monthly cash flow statements for 2021 and 2022 (unaudited)

Rigetti is a full-stack quantum meter company. It has been serving global enterprise, government and research customers through the Rigetti Quantum Cloud Services platform since 2017. In this public report, Chad Rigetti, the company's founder and CEO, said, "We achieved our core objectives for our second quarter 2022 results, advancing our product roadmap, continuing to attract key talent, and strengthening our customer and partner relationship base. Our technology team made significant progress in the second quarter and is on track to achieve the expected roadmap milestones previously announced related to our first quarter 2022 revenue performance; we also deepened existing relationships and won new contracts in the UK and US: this means we continue to work hand-in-hand with top organizations in pursuit of quantum advantage."

01Summary of Second Quarter Financial Highlights, and Fiscal Year 2022 Outlook

Revenues for the second quarter of fiscal 2022 were $2.1 million, up 39% from $1.5 million in the prior year period.

Total gross profit for the second quarter was $1.3 million compared to $1.2 million for the same period last year.

Total GAAP operating expenses for the second quarter of 2022 were $26.9 million compared to $10.9 million in the same period last year. Total non-GAAP operating expenses for the second quarter of 2022 were $16.4 million compared to $9.3 million in the same quarter last year.

Net GAAP loss for the second quarter of 2022 was $10.0 million or $0.09 per share, compared to $10.1 million or $0.46 per share in the same period last year.

Adjusted EBITDA loss of $15.1 million for the second quarter of 2022 compared to a loss of $8.1 million for the same period last year.

As of June 30, 2022, the company had cash and cash equivalents of $184 million.

In response, Rigetti said it estimates revenue for fiscal 2022 will be between $12 million and $13 million: this includes approximately $4 million related to negotiated contracts with existing government customers, and if negotiations are not completed and contracts are not executed until after 2022, it is estimated that some or all of the $4 million in revenue recognition (some of which relates to work already completed and costs already incurred costs incurred) could be deferred to fiscal periods beyond fiscal year 2022. In this case, the Adjusted EBITDA loss for fiscal 2022 could be greater than the range of $50 million to $53 million estimated in May.

02Recent Business Developments, and Technology Roadmap

In addition to this, this earnings report lists Rigetti's specific near-term business development milestones.

On June 21, 2022, Rigetti announced the UK launch of its 32-quantum-bit Aspen family of quantum computers - as Rigetti's first UK-based quantum computer, the system is expected to be available via Rigetti QCS™ via the cloud to the company's UK partners The Rigetti-led consortium, which aims to advance practical quantum computing applications in machine learning, materials simulation and finance, has been funded by the UK government-led Quantum Technology Challenge. The delivery of the system achieves a key milestone in the consortium's efforts to accelerate the commercialization of quantum computing in the UK.

Rigetti UK Limited, a wholly owned subsidiary of Rigetti, was jointly awarded two Innovate UK Awards on April 29, 2022 as part of the ISCF Commercialization Quantum Technology Challenge. As part of the awards, Rigetti and Riverlane plan to collaborate on research and development for quantum error correction. In addition, Rigetti, Phasecraft and BT (formerly BT) plan to develop quantum algorithms and software to solve optimization and constraint satisfaction problems for quantum computers.

Rigetti has been selected by the Defense Advanced Research Projects Agency (DARPA) to lead a program: benchmarking the performance of quantum applications on large quantum computers. The program awards Rigetti and his partners up to $2.9 million over three years, with approximately $1.5 million contingent on DARPA exercising an option to extend the initial 18-month period. The award is also part of DARPA's Quantum Benchmarking Program.

Rigetti's inclusion in the Russell 3000 Index following the conclusion of the annual restructuring of the Russell Index in 2022 signifies its successful inclusion in the Top 3000 U.S. public companies.

Going forward, Rigetti remains on track to launch a single-chip 84-quantum-bit quantum computer in 2023, a 336-quantum-bit multi-chip processor later in 2023; and will launch a 1000+ quantum-bit system by the end of 2025 and a 4000+ quantum-bit system in 2027 or later.

Rigetti is using its patented multi-chip scaling technology in its planned 1000+ quantum bit systems and 4000+ quantum bit systems, consistent with the company's technology roadmap announced in its first quarter 2022 earnings release on May 16.

03Latest Equity Financing: $75 million

On August 11, the Company entered into a common stock purchase agreement with B. Riley Principal Capital II, LLC (B. Riley). Under the agreement, the Company has the right to sell and issue up to $75 million, 17,1008 shares of common stock to B. Riley over a 24-month period. And, free of certain conditions and obligations.

Chad Rigetti said, "As we advance our technology and business, we are pleased to announce our committed equity financing. We believe this will provide us with the financial flexibility to support our mission and business objectives. In addition, in the current uncertain macro environment, we believe this development is well thought out."

Reference link:

https://www.globenewswire.com/news-release/2022/08/11/2497117/0/en/Rigetti-Computing-Reports-Second-Quarter-2022-Financial-Results -and-Provides-Business-Update.html