D-Wave has announced its Q3 2024 financial results. A quick summary of some key financial metrics comparing Q3 2024 versus Q2 2024 and the year ago quarter of Q3 2023 is shown in the chart below.
Revenue for the quarter was slightly lower while expenses were slightly higher resulting in an increase in both operating an net losses versus the previous quarter and the year ago quarter. The decrease in revenue was due to a decrease in professional services engagements related to the timing of the closing of the engagements. QCaaS (Quantum Computing as a Service) revenue increased versus the year ago quarter. The company has increased its number of customers versus a year ago with 132 total customers in the most recent four quarters versus 125 in the four quarters before that. They have also seen increased revenue from government and research customers but a slight decrease in commercial customers. The company had about $29.3 million in cash on September 30, 2024 and subsequent to the end of the quarter they paid off a remaining balance of $13.7 million in a loan they had with PSPIB Unitas Investments II Inc.
In the technical and product areas they have completed calibration of the 4400 qubit version of their Advantage2 processor. This is a larger version of the 1200 qubit Advantage2 prototype the company put online earlier this year. The Advantage2 series has improved technical characteristics versus the earlier Advantage series with increased connectivity, better coherence times, and faster time-to-solution.
The company has also introduced Service Level Agreements (SLAs) for customers transitioning their applications to production. They are also continuing working with their customers to investigate how their quantum annealing processors can be used for generative AI and machine learning applications. In addition, the company is continuing to increase its available marketing collateral with a particular emphasis on use of their technology for optimization applications. And the company also mentioned some of their work with NTT DOCOMO and Japan Tobacco Inc. as well as collaborations with Staque to promote adoption of quantum annealing in the Middle East and the Chicago Quantum Exchange (CQE) to engage with other members of this group.
With regards to the company’s financial outlook for the rest of the year, they reiterated their forecast that the 2024 Adjusted EBITDA Loss will be lower than the 2023 EBITDA lost of $54.3 million. They also forecast that they expect Q4 revenues and bookings to show an increase over the Q3 levels.
For more information about D-Wave’s Q3 activities an financial report, you can view their Q3 2024 financial press release here, a Q3 2024 investor presentation here, a 10-Q filing they made with the U.S. Securities and Exchange Commission (SEC), and a recording of their earning call posted on YouTube here.
November 16, 2024
