Quantum computing listed companies announce Q3 results, IonQ grows 10x, Rigetti earnings hard to come by
Recently, three quantum computing companies, D-Wave, IonQ, and Rigetti, announced their third quarter financial results one after another. In stark contrast, IonQ's revenue grew more than 10 times year-over-year in the third quarter, and D-Wave also saw modest growth, but Rigetti, which was supposed to announce its results today, announced a delay.
This is also reflected in the stock price, which has risen 30% in the last three trading days, while D-Wave and Rigetti are up 9% and 8% respectively.
01D-Wave: Quarterly revenue up 30% year-over-year
On November 10, D-Wave Quantum Inc. announced its financial results for the third quarter ended September 30, 2022[1].
1) Commercial/business highlights
Signed several new and expanded customer agreements with Forbes Global 2000 companies and industry leaders such as ArcelorMittal, BASF and Deloitte.
Continued to expand our commercial client base with 63 commercial clients in the first nine months of the year, a 34% increase year-over-year.
Worked with customers on a variety of new and expanded quantum hybrid applications; including 3D bin packaging, customer quote allocation, employee scheduling, machine learning for feature selection, job shop scheduling and manufacturing optimization.
Created a new, streamlined pricing structure for QCaaS products, moving from a time-based consumption approach to a seat- and application-based product portfolio designed to better meet customer needs and deliver business value.
Launched D-Wave in the AWS marketplace, introducing AWS customers to the Leap Quantum Cloud service and the use of three professional services quantum computing offerings.
2) Technology Highlights
Progress in gate model development, reaching several milestones during the quarter: fabricated the first gate model quantum bits in a multilayer stack, began benchmarking single- and double-quantum bit gates with these devices, and demonstrated a scalable readout method for gate model architectures.
Published results in Nature Physics demonstrating large-scale coherence in annealing quantum computers, an important step toward practical quantum advantages; and provided conclusive evidence that D-Wave's system can perform coherent quantum annealing, which is not possible through classical simulations.
An updated version of the CQM hybrid solver was introduced, enabling companies to run quadratic optimization problems with weighted constraints and to benefit from pre-solution techniques that streamline and simplify problem formulation.
3) Third Quarter Financial Results (as of September 30, 2022)
Revenues for the third quarter of fiscal 2022 were $1.7 million, an increase of $338,000, or 30%, from $1.3 million in the third quarter of fiscal 2021, and an increase of $324,000, or 24%, from revenues of $1.4 million in the immediately preceding second quarter of fiscal 2022.
Gross profit for the third quarter of fiscal 2022 was $1.1 million, an increase of $86,000, or 9%, from $1.0 million in the third quarter of fiscal 2021, and an increase of $301,000, or 38%, from gross profit of $785,000 in the immediately preceding second quarter of fiscal 2022.
Gross margin for the third quarter was 64.1%, a decrease of 12.4% from 76.5% in the third quarter of fiscal 2021, and an increase of 6.8% from the gross margin of 57.3% in the immediately preceding second quarter of fiscal 2022
Finally, for information as of November 10, 2022, D-Wave stated that its FY2022 revenues are expected to be in the range of $7 million to $9 million.
02IonQ: An Important Turning Point in Business Momentum
On November 14, IonQ (NYSE: IONQ) announced its financial results for the quarter ended September 30, 2022[2].
1) Commercial Highlights
In September, the U.S. Air Force Research Laboratory (AFRL) announced a multi-part, $13.4 million contract with IonQ, which will provide cloud access for its capture ion system and provide certain hardware components to further research quantum networks.
IonQ is working with a project at Oak Ridge National Laboratory, part of the Department of Energy, to study benchmark circuits for discovering new quantum chemistry applications.
A new partnership between IonQ and Dell Technologies to provide joint customers with a world-class hybrid computing solution that allows workloads to seamlessly transition between the world's leading quantum and classical computing hardware systems.
2) Technology Highlights
IonQ has increased the computing power of its Aria system by approximately four times, and Aria, already considered the most powerful quantum computer known, has now achieved IonQ's technology milestone. aria is available to the public through cloud access on Microsoft's Azure Quantum Cloud.
IonQ announced the next generation of custom chips, called multilayered glass trap (MGT), which uses multiple layers of wires wired on the chip to enable a higher number of quantum bits per chip.
3) Financial Highlights
IonQ achieved revenue of $2.8 million in the third quarter, above the median of previous forecasts, compared to $233,000 in the same period a year earlier. The year-over-year growth rate was more than 10x.
IonQ achieved $16.4 million in bookings in the third quarter.
As of September 30, 2022, cash, cash equivalents and investments were $555.8 million.
Net loss was $24.0 million and adjusted EBITDA was -$13.4 million.
Finally, for the full year 2022, IonQ's revenue outlook is approximately $10.2 million to $10.7 million.
On the same day, IonQ jointly demonstrated[3] the latest developments in hybrid quantum computing and real-world quantum use cases at the Supercomputing 2022 (SC22) conference with quantum researchers, scientists and executives from Dell Technologies and Amazon: the hybrid quantum platform is based on the Dell PowerEdge server built on s Dell classical quantum simulator and integrates the core quantum capabilities of IonQ's quantum computer and quantum algorithm development teams. Enabling a seamless transition of workloads from traditional to quantum hardware is the next major step in scaling quantum for the enterprise.
03Rigetti: Delayed Filing of Third Quarter Financial Results
On November 14, Rigetti Computing, Inc. filed an extension to file its financial results for the third quarter ended September 30, 2022 and provided a business update for the third quarter of 2022 [4].
1) Business Development
Rigetti's 80-bit Aspen-M-2 and 40-bit Aspen-11 available for public preview on Microsoft Azure Quantum Rigetti's systems are now available on two of the world's largest public cloud platforms
Announced a partnership with Bluefors, a leading provider of cryogenic systems, to deliver its next-generation KIDE cryogenic platform, which is expected to be required for Rigetti's planned 336Q, 1,000Q+ and 4,000Q+ quantum processing units.
A new partnership with Nvidia to develop a hybrid GPU-QPU workflow for climate modeling applications. This work is expected to build on Rigetti's previous application of quantum-classical solutions for weather modeling.
Announced the upcoming release of Keysight True-Q error mitigation software integrated into Rigetti's Quantum Cloud Service (QCSTM). True-Q will be the first third-party software tool to integrate directly into the QCS platform.
In addition, Rigetti said it will appoint Rick Danis, now general counsel, as interim president and CEO of the company. Rick Danis said, "During the third quarter, the Rigetti team made meaningful progress in developing the 84-bit Ankaa and 336-bit Lyra systems. We also announced relationships with Bluefors, Nvidia and Keysight, which we believe will further support our efforts to scale our systems and develop additional quantum use cases for our marketing activities."
Reference links：
[1]https://www.dwavesys.com/company/newsroom/press-release/d-wave-reports-third-quarter-results/
[2]https://ionq.com/news/ionq-announces-third-quarter-2022-financial-results
[3]https://ionq.com/news/ionq-to-present-end-to-end-quantum-computing-solutions-at-sc22
[4]https://www.globenewswire.com/news-release/2022/11/14/2555478/0/en/Rigetti-Computing-Files-Extension-for-Third-Quarter-2022-Financial-Results-and-Provides-Business-Update.html
