The following is a summary of the D-Wave Quantum (QBTS) Q3 2024 Earnings Call Transcript:
Financial Performance:
D-Wave reported Q3 2024 revenue of $1.9 million, down by 27% from Q3 2023.
Non-GAAP gross margin for Q3 was 67.2%, a decrease from the prior year's 76.6%.
The company experienced a net loss of $22.7 million in Q3, compared with a net loss of $16.1 million in Q3 2023.Adjusted EBITDA loss increased by 19% YoY, amounting to $13.8 million.
For the first nine months of 2024, revenue increased 11% to $6.5 million.
Business Progress:
Enhanced the 4,400 qubit Advantage 2 processor, aiming for commercial release, showcasing double coherence time and increased qubit connectivity.
Launched SLAs for Leap quantum cloud service, showing over 99.9% availability, and introduced a powerful non-linear hybrid quantum solver.
Announced a major quantum optimization pilot with NTT DOCOMO and an AI collaboration with Japan Tobacco in drug discovery.
Joined as a corporate partner in the Chicago Quantum Exchange and filled key positions in the go-to-market team.
Opportunities:
The expansion of the Advantage 2 processor is expected to solve more complex computational problems, potentially boosting customer base and revenue.
Government and commercial interest in quantum applications, particularly optimization and AI, is growing, with specific interest shown by the U.S. Department of Defense and agencies abroad.
Partnerships and increased presence in emerging markets like the Middle East hint at broader adoption and new market avenues.
Risks:
The company is observing a significant increase in adjusted EBITDA losses due to higher operating expenses and lower revenue segments.
Market competition and advancements in quantum computing technology by other firms pose a risk to maintaining a technological edge and market share.
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