IonQ announced its second quarter financial results for the period ending June 30, 2022. Revenue achieved was $2.6 million versus $93 thousand in the second quarter o 2021. EBITDA in Q2 2022 was a loss of $11.6 million versus $7.0 million in 2021 and the GAAP net loss was $1.7 million versus $10.0 million in Q2 2021. A significant account adjustment of $16 million due to a change in fair value of warrant liabilities account for much of the difference between the EBITDA and GAAP net loss numbers. The company still has $571 million in cash and investments available and indicated that they do not expect they will need any further financing before they reach profitability and positive cash flow.

In their earnings call, CEO Peter Chapman highlighted the progress that have made with their Aria class machine. This is their current generation of processor that could contain as more than two dozen qubits depending on how many ions are loaded in. They announced that they have improved a measure they call Algorithmic Qubits (AQ) from 20 to 23 through improved software, hardware, and error mitigation techniques. An equivalent measure to 23 AQs in terms of Quantum Volume would be something like 8 million. He also announced that they are now making this machine available through Microsoft’s Azure Quantum service this week. Previously, the only IonQ machine available on Azure was their 11 qubit Harmony system and the Aria was only available to select customers who accessed it directly through IonQ. Mr. Chapman also announced that they are currently building a second Aria class machine for increased capacity.

IonQ also announced they have selected a facility in Seattle, Washington as a manufacturing site for their quantum computers and have hired a vice president to oversee future production. Once this facility is complete, it will start manufacturing with the Forte class processor, which is the next generation beyond the current Aria. They announced signing paid contracts with Airbus and Dow adding to their client base and indicated strong customer interest overall in their offerings. They are working on a project with the University of Maryland related to quantum networking. Part of the benefits of this is that it will help IonQ’s long term scaling plans which includes connecting multiple quantum processors together for higher performance. They are also working with Zapata on a quantum benchmarking program funded by DARPA and GE Research to develop a quantum algorithm that manages financial risk exposure.

All-in-all IonQ indicated that overall they remain on-track to their full year 2022 business plan, but said that quarterly booking and revenue statistics could remain lumpy due to possible negotiation delays and quarterly timing of large deals. You can access IonQ’s press release of their Q2 results on their web site here, listen to an audio recording of their Q2 conference call here, and read the 10-Q filing made with the SEC which is available here.

August 15, 2022