D-Wave Quantum Inc. announced that its fiscal year 2024 bookings will exceed $23 million, a 120% increase over 2023. Key contributors include the first-ever customer purchase of a D-Wave Advantage™ annealing quantum computing system in Q4, signaling an expansion in the company’s revenue model to include on-premise system sales. This system, featuring over 5,000 qubits, offers customers enhanced control and integration capabilities.
The sale of the Advantage processor highlights an interesting change in D-Wave’s strategy. In earlier years the company had sold or leased on-premise machines to groups including USC/Lockheed-Martin, NASA Ames/Google, Los Alamos National Labs, and Temporal Defense Systems. But for a while they backed away from this strategy and emphasized cloud access instead. More recently, the company did install an Advantage processor at Davidson Technologies last June, but that was likely a lease arrangement rather than a sale. The company remarked that purchasing a processor provides a customer with the ability to modify system parameters and integrate the system in ways previously unavailable to them. GQI sees a growing trend from quantum hardware companies to pursue on-premise sales as it accelerates a company’s cash flow by receiving the payments up front.
The processor sale is certainly a key factor in the company achieving fiscal Q4 2024 bookings that reached at least $18 million, a 500% year-over-year increase. The growth reflects rising demand for D-Wave’s technology among research institutions, businesses, and organizations exploring quantum computing’s potential in areas like AI, national security, and competitive innovation.
The company also announced that they had ended the year with a record $178 million in cash. In addition, the company has just filed papers with the U.S. Securities and Exchange Commission (SEC) announcing they had entered into a sales agreement with Needham & Company, LLC, Stifel, Nicolaus & Company, Incorporated, B. Riley Securities, Inc., Roth Capital Partners, LLC, The Benchmark Company, LLC and Craig-Hallum Capital Group, LLC to offer and sell shares from time to time of its common stock having an aggregate offering price of up to $150.0 million. This amount assumes a sale of 24,590,164 shares at an assumed price of $6.10, the closing price on January 8, 2025. The actual number of share sold will vary as the price changes. As of January 8, 2025 the company had 266,568,046 shares of common stock outstanding.
For more information about the 2024 booking and the sale of the Advantage processor, you can visit a press release posted on the D-Wave website here. And for more information about the sales of up to $150 million in common stock, you can access a Form 8-K filing here and a Prospectus Supplement here that the company has just filed with the SEC.
January 11, 2025
