Rigetti, IonQ, D-Wave: Side-by-Side Q3 2023 Results

Piggy Bank PB
In Q3 2023, key developments unfolded in the quantum computing sector.  Rigetti, IonQ, and D-Wave each delivered their Q3 2023 results this past week.  We have done our best to distill these reports and give them an apples-to-apples comparison.  Reviewing the financial and business highlight tables, below, one can take in key points from these reports*. 

The Bottom-Line-Up-Front.  Rigetti secured funding through strategic stock sales, showcasing financial strength. IonQ exceeded Q3 revenue expectations, indicating strong year-over-year growth. D-Wave reported a substantial 51% YoY increase in Q3 revenues and a notable 50% increase from the previous quarter. 

These achievements underscore the competitive progress in quantum computing’s public forerunners.

Their Outlook.  In terms of financial outlook, Rigetti projects an ending balance of $88 million to $94 million in cash, cash equivalents, and available-for-sale securities by the conclusion of 2023. This estimation is contingent upon the current operating plan and assumes no additional capital is raised in the three months ending December 31, 2023. The company should closely monitor its financial position and make strategic decisions accordingly.

In 2023, IonQ is optimistic about its financial performance, raising the revenue outlook to $21.2–$22.0 million for the full year. Anticipating a strong end to the year, Q4 is expected to yield revenue between $5.3–$6.1 million. Additionally, IonQ is optimistic about bookings, adjusting the expectation range to $60.0–$63.0 million for the full year.

For D-Wave, the company is anticipating fiscal 2023 revenue between $10 million and $11.5 million, with an expected Adjusted EBITDA Loss of less than $56 million. However, reconciling this loss to GAAP Net Loss is challenging due to uncontrollable factors such as foreign exchange and warrant liabilities, hindering the estimation of net loss without unreasonable efforts.

Company*Major Financial HighlightFinancial Notables
RigettiRaised $12.7 million through stock sales in Q3 2023.
  • Total Revenues: $3.1 million;
  • Operating Expenses: $19.1 million;
  • Operating Loss: $16.8 million;
  • Net Loss: $22.2 million;
  • Cash, Equivalents, Securities: $110.2 million.
IonQExceeded Q3 revenue expectations at $6.1 million, reflecting 122% YoY growth.
  • Q3 Net Loss: $44.8 million;
  • Adjusted EBITDA Loss: $22.4 million;
  • Cash, Equivalents, Investments: $485.1 million;
  • New Bookings (Q3): $26.3 million, totaling $58.4 million YTD;
  • Achieved $100 million cumulative bookings goal ahead of schedule.
D-WaveQ3 Revenue of $2.6 million, up 51% YoY, and 50% from the preceding quarter.
  • $2.9 million, a 53% YoY increase (Bookings);
  • Marks sixth consecutive quarter of YoY growth (Bookings);
  • $2.6 million, a 51% YoY increase (Revenue);
  • Professional services contract timing may cause variation in Revenue recognition (Revenue).
Company*Major Business & Commerce HighlightBusiness and Commerce Notables
RigettiThe brightest highlight for Rigetti was the continued growth in QPU sales and the award of a significant five-year contract with the Air Force Research Lab for quantum foundry services.
  • Rigetti’s QPU Sales continued growth, delivering a 9-qubit QPU to a national lab in Q3 2023;
  • Quantum Foundry Services: Awarded a five-year contract with AFRL to provide customized quantum systems;
  • New Contracts: Awarded DARPA IMPAQT contract and Innovate UK grant for quantum algorithm and application development;
  • Technology Roadmap: Progressing with the fourth-generation chip architecture for the Ankaa-2 84-qubit system, expected in Q4 2023.
IonQCapping the 3rd quarter 2023 is IonQ’s $25.5 million deal with AFRL for quantum networking research, showcasing a substantial financial investment and emphasizing the practical applications of IonQ’s quantum computing technology.
  • Struck $25.5M deal with AFRL for barium-based trapped ion quantum computing systems in quantum networking and application development;
  • Unveiled IonQ Forte Enterprise (#AQ 35) and IonQ Tempo (#AQ 64) for quantum advantage in certain applications, with modular rack-mounted designs;
  • Awarded extension for benchmarking quantum computers with ZapataAI and DARPA;
  • Ranked 32 in 2023 Deloitte Technology Fast 500™ List;
  • Anticipating #AQ 64 and commercial advantage using error mitigation by end of 2025;
  • Achieved #AQ 29 on Next Generation Barium Qubits.
D-WaveThe most significant highlight for D-Wave this quarter was the substantial growth in bookings, with a 53% YoY increase and year-to-date bookings reaching $8.4 million, a remarkable 125% increase from the same period in 2022. This demonstrates consistent and significant business expansion.
  • Signed agreements with BBVA, QuantumBasel, NTT Docomo, Poznan Superconducting, and Satispay;
  • Optimization: Worked on applying quantum algorithms to customer rewards and 6G satellite networks;
  • Explored quantum technology integration with new machine learning areas;
  • Forward progress in developing high-coherence qubits;
  • Successful demonstration of quantum error mitigation on Advantage2TM prototype;
  • Algorithmic updates to the Constrained Quadratic Model hybrid solver for increased performance;
  • Released new administration features for customer organization and project management;
  • Implemented “zero downtime deployment” features for LeapTM real-time quantum cloud service;
  • Reached end stages of securing SOC 2 Type 2 compliance for enhanced data protection and streamlined procurement.

Finally.  For quantum computing, the financial outlooks of Rigetti, IonQ, and D-Wave demonstrate significant progress. Rigetti’s projected ending balance indicates financial stability, providing a basis for strategic decisions and potential expansion. IonQ’s optimistic outlook, seen in increased revenue and booking expectations, suggests notable growth and rising confidence in the market. D-Wave’s anticipation of revenue growth and careful financial considerations reflects a commitment to navigating challenges. Collectively, we see maturity and advancement for these three quantum computing companies. Their reports validate the ability to balance financial stability, innovation, and adaptability in this complex technology and evolving market.

Gordon

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* Cautionary Note Regarding Forward-Looking Statements: This communication includes forward-looking statements that reflect current expectations and projections about future events. These statements involve inherent risks and uncertainties that could cause actual results to differ materially from those anticipated or implied in the forward-looking statements. Factors that could cause actual results to differ materially from those expressed or implied include general economic conditions, industry trends, regulatory changes, and other risks and uncertainties. Readers are encouraged to refer to the company-provided press releases for a more detailed understanding of their Q3 2023 financial positions and forward-looking statements. We do not assume any risk for oversights or inaccuracies in data used in or provided by our analysis.  

Source data:

Rigetti  https://investors.rigetti.com/news-releases/news-release-details/rigetti-computing-reports-third-quarter-2023-results

IonQ  https://ionq.com/news/ionq-announces-third-quarter-2023-financial-results

D-Wave  https://www.dwavesys.com/company/newsroom/press-release/d-wave-reports-third-quarter-results

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