IonQ reports Q2 earnings orders up over 10x year-over-year
On August 16, IonQ (NYSE: IONQ), a leader in quantum computing, reported financial results for the quarter ended June 30, 2022.
Report Highlights.
Increased computing power of cloud products by 130,000+ times.
Increasing the power of Aria by a factor of 8: from 20 to 23 algorithmic quantum bits.
Expected launch of Aria Access on Microsoft Azure on August 17.
New customers include Airbus and Dow Chemical.
Over 10x year-over-year increase in order value.
In response, IonQ President and CEO Peter Chapman said, "It's great to share the progress we made in the second quarter, and the future of quantum computing is about to get even brighter."
01Financial Data Highlights
IonQ recognized revenue of $2.6 million in the second quarter. This compares to $93,000 in the same quarter last year and is above IonQ's previously provided revenue expectations.
Cash, cash equivalents and investments of $571.3 million as of June 30, 2022.
A net loss of $1.7 million and an Adjusted EBITDA loss of $11.6 million.
Note: Adjusted EBITDA is a non-GAAP financial measure as defined under Non-GAAP Financial Measures and excludes a non-cash gain of $16.1 million related to the change in fair value of IonQ's warrant liability.
02Business Highlights
IonQ announced a paid contract with Airbus, which is using Aria, IonQ's newest quantum system, to explore core optimization problems in its aviation business, such as how to efficiently load cargo on an aircraft.IonQ expects that the quantum algorithms it is developing with Airbus will consider many key aviation variables: classical algorithms have particular difficulty solving these problems.
IonQ Aria offers minimal gate errors and world-leading performance
IonQ announced a paid contract with Dow, a global leader in chemistry and materials science, who is using Aria to explore the boundaries of quantum computing in new materials research. They are also exploring the intersection of quantum machine learning, materials science and chemistry with other IonQ customers with whom they are collaborating.
IonQ announced the results of a collaboration with GE Research to develop quantum algorithms for managing financial risk exposures. The work uses large datasets to generate risk models for up to four variables that are broadly applicable to industries with risk management needs, such as finance, insurance and supply chain management.
Aria - which currently has 23 algorithmic quantum bits and is considered by IonQ to be the world's most powerful commercial quantum computer - will be available to all users of Microsoft Azure Quantum starting Aug. 17. The announcement further confirms IonQ's previous commitment to give current and future generations of quantum programmers public access to its industry-leading hardware.
IonQ has signed a formal agreement with the University of Maryland (UMD) to collaborate on a National Science Foundation project. To this end, IonQ will build and host a quantum router as part of a new quantum network (Mid-Atlantic Regional Quantum Internet) spanning the UMD campus and surrounding areas. This work is not only important for quantum communications, but also continues IonQ's work to connect multiple quantum computers together to form more powerful systems.
IonQ has a subcontract with Zapata Computing to collaborate on the multi-million dollar Defense Advanced Research Projects Agency (DARPA) project.
03Technology Highlights
IonQ Quantum Computing Roadmap
Approximately 8x increase in computational power, now from 20 algorithmic quantum bits (#AQ) to 23. Aria will be IonQ's newest cloud offering, with more than 130,000x increase in computational power over existing offerings.
IonQ announced an 8x increase in computational power for IonQ Harmony, from the previous benchmark of #AQ 6 to #AQ 9. The Harmony system is available to customers through all three major cloud partners, including Microsoft Azure, Amazon Web Services and Google Cloud.
IonQ is investing in cutting-edge research in natural language processing (NLP). ionQ creates quantum NLP algorithms to represent language quality, such as ambiguity, vagueness and novelty, which are difficult to represent in classical computing. No previously published work has demonstrated ambiguity resolution or language generation working on real-time quantum hardware. ionQ believes that this quantum technology can significantly improve NLP performance.
04Company Highlights
IonQ has identified a facility in Seattle, Washington to host its first assembly line for the production of quantum computers.
IonQ announced the hiring of Dave Mehuys as Vice President of Product Engineering to support its production program. Dr. Mehuys comes to IonQ after serving as Vice President of Systems Engineering at PsiQuantum, bringing with him a deep understanding of quantum hardware.
IonQ announces the formation of IonQ GmbH and IonQ Israel Ltd to support the growing, investment in the field of quantum computing.
IonQ announced in July 2022 the addition of Kathy Chou to the IonQ Board of Directors. Ms. Chou is currently Senior Vice President of SaaS Engineering at Nutanix and has extensive experience in go-to-market strategy and developing and deploying SaaS applications.
05Financial Outlook
IonQ expects revenues in the range of $2.6 - $2.9 million for the third quarter of 2022.
For the full year 2022 expectations, IonQ reaffirms its previously stated revenue outlook range of $10.2 million to $10.7 million.
IonQ noted that global quantum computing investments exceed $24 billion between 2016 and 2021. A near doubling of U.S. government investment in quantum information science R&D from 2019 to 2022, from a reported $449 million to a requested $877 million.
IonQ booked $600,000 in the second quarter, compared to $57,000 in the same period last year, an increase of more than 10 times year-over-year. As IonQ noted in its previous conference call, management expects bookings to be volatile for quite some time. This means that while IonQ is confident in the overall economic performance, it is sometimes difficult to predict exactly in which quarter deals will close. ionQ believes that providing forecasts on an annual rather than a quarterly basis will better capture its business outlook and intends to provide future annual forecasts only.
That IonQ will maintain its previously stated order forecast of $23 million to $27 million for the full year 2022.
IonQ believes it will achieve its order forecast, but also believes it is prudent to acknowledge the risks associated with current market conditions, which have resulted in contract delays across the technology sector. ionQ has identified $12 million of late stage opportunities in its order forecast that could end, but the exact timing is unclear, which could result in them missing out on some or all of the value in 2022, but management remains confident that these customers will contract with IonQ.
IonQ noted that the $571.3 million in cash, cash equivalents and investments allows the company to invest in R&D and manufacturing to continue to deliver market-leading systems.
Reference Link：
https://ionq.com/news/august-15-2022-ionq-2022-q2-earnings-release
