Financial Data and Key Metrics Changes - Revenue for fiscal year 2024 was $8.8 million, essentially flat compared to fiscal year 2023 revenue of $8.8 million [30] - Bookings for fiscal year 2024 reached a record $23.9 million, an increase of 128% from fiscal year 2023 bookings of $10.5 million [30] - GAAP gross profit for fiscal year 2024 was $5.6 million, a 20% increase from fiscal year 2023 gross profit of $4.6 million [31] - Net loss for fiscal year 2024 was $143.9 million, compared to a net loss of $82.7 million in fiscal year 2023 [32] - Adjusted EBITDA loss for fiscal year 2024 was $56 million, an increase of 3% from the adjusted EBITDA loss of $54.3 million in fiscal year 2023 [33] Business Line Data and Key Metrics Changes - The fourth quarter revenue totaled $2.3 million, a decrease of 21% from the fourth quarter of fiscal year 2023 revenue of $2.9 million [34] - Bookings for the fourth quarter were a record $18.3 million, an increase of over 500% compared to the fourth quarter of fiscal year 2023 bookings of $3 million [34] - Non-GAAP gross profit for the fourth quarter was $1.7 million, a decrease of 28% from the fourth quarter of fiscal year 2023 non-GAAP gross profit of $2.3 million [34] Market Data and Key Metrics Changes - D-Wave had a total of 135 customers in fiscal year 2024, compared to 133 customers in fiscal year 2023 [30] - The customer base included 59 research institution and government customers in 2024, up from 55 in fiscal year 2023 [30] - The number of commercial customers was 76 in fiscal year 2024, down from 78 in fiscal year 2023 [30] Company Strategy and Development Direction - D-Wave aims to be the first pure play quantum company to reach profitability with less cash invested than competitors [10] - The company is focusing on a quantum compute as a service model for the majority of its commercial customers while also pursuing system sales [18] - D-Wave is developing a sixth generation annealing quantum computer, Advantage 2, which is expected to deliver significant performance gains [15] Management's Comments on Operating Environment and Future Outlook - Management highlighted the importance of the recent demonstration of quantum supremacy as a significant milestone for the quantum industry [57] - The company expects to see increased interest in system sales and believes that the recent achievements will positively impact customer engagement [49] - Management anticipates fiscal year 2025 Q1 revenue to exceed $10 million, driven by the sale of an Advantage annealing quantum computer [39] Other Important Information - D-Wave's cash balance exceeded $300 million, which is believed to be sufficient to reach sustained profitability [10] - The company completed two separate ATM programs in the fourth quarter that brought in a total of $175 million in gross proceeds [25] - D-Wave announced a quantum uplift program to attract organizations dissatisfied with competitors' quantum systems [22] Q&A Session Summary Question: Insights on Advantage 2's impact on existing commercial engagements - Management confirmed that Advantage 2's capabilities will enhance performance for existing customers and attract new ones [44] Question: Future system sales and revenue expectations - Management indicated ongoing discussions with three other institutions for potential system sales, but did not provide specific revenue guidance [50] Question: Impact of recent publications on industry perception - Management noted that the recent achievement has positively influenced both the academic community and commercial entities, despite some resistance [56] Question: Breakdown of revenue recognition from the Jülich system sale - Management clarified that revenue from the Jülich system sale will be recognized in the first quarter following installation and acceptance [105] Question: Future revenue models for system sales - Management stated that future deals will be tailored to customer needs, affecting the structure of revenue recognition [75] Question: Potential for scaling and R&D acceleration - Management expressed interest in accelerating R&D efforts, particularly in scaling quantum systems and exploring gate model opportunities [86]

分组1 - D-Wave Quantum Inc. reported a quarterly loss of $0.37 per share, significantly worse than the Zacks Consensus Estimate of a loss of $0.09, representing an earnings surprise of -311.11% [1] - The company posted revenues of $2.31 million for the quarter ended December 2024, which was 3.27% above the Zacks Consensus Estimate, but down from $2.91 million in the same quarter last year [2] - D-Wave Quantum shares have declined approximately 30.7% since the beginning of the year, contrasting with the S&P 500's decline of -4.8% [3] 分组2 - The current consensus EPS estimate for the upcoming quarter is -$0.09 on revenues of $2.66 million, and for the current fiscal year, it is -$0.38 on revenues of $15.42 million [7] - The Zacks Industry Rank for Internet - Software is in the top 31% of over 250 Zacks industries, indicating that the industry outlook can significantly impact stock performance [8]

Financial Performance - Fiscal 2024 Q4 bookings reached at least $18 million, a 500% increase from $3 million in Q4 2023[7] - Total bookings for fiscal year 2024 exceeded $23 million, representing a 120% increase over fiscal year 2023[7] - The company ended fiscal year 2024 with a record cash position of approximately $178 million[7]

Core Viewpoint - D-Wave Quantum (QBTS) is expected to report a decline in fourth-quarter revenues and losses, but the company is benefiting from increased adoption of its quantum computing solutions and expanding customer base across various sectors [2][4][5]. Financial Performance - The Zacks Consensus Estimate for fourth-quarter revenues is $2.24 million, reflecting a year-over-year decline of 23.16% [2]. - The consensus estimate for loss is 9 cents per share, unchanged over the past 30 days, compared to a loss of 10 cents per share in the same quarter last year [2]. Customer Base and Demand - D-Wave Quantum has broadened its customer base to 132 clients across commercial, government, and research sectors, with significant revenue increases of 66% from government customers and 47% from research customers in Q3 2024 [6]. - The company anticipates improved bookings in Q4 2024 due to rising demand for its quantum computing services [5]. Product Advancements - The completion of the 4,400-qubit Advantage 2 processor is expected to drive customer interest and technology adoption in the upcoming quarter [7]. - Key clients, such as NTT DOCOMO, are moving into production with quantum applications, which is likely to enhance revenues and customer engagement [8]. Stock Performance - QBTS shares have surged 124% over the past 12 months, outperforming the broader Zacks Computer and Technology sector, which returned 5.5% [9]. - Compared to peers like IBM and Alphabet, which gained 29.9% and 19.8% respectively, QBTS has shown stronger performance [11]. Valuation Concerns - D-Wave Quantum shares are currently considered overvalued, with a forward 12-month price/sales ratio of 66.8X, significantly higher than its median of 12.10X and the sector's 5.70X [12]. Partnerships and Innovations - Partnerships with companies like Carahsoft and Zapata Computing are expected to contribute to growth in Q4 2024 [15]. - A recent collaboration with Staque introduced a commercial hybrid-quantum application for optimizing autonomous agriculture vehicles, which may positively impact performance [16]. Competitive Landscape - D-Wave Quantum faces increasing competition from companies like Rigetti Computing, IBM, Google, and IonQ, which are advancing their quantum technologies [17][20]. - The launch of Rigetti's 84-qubit Ankaa-3 system highlights the competitive pressures in the quantum computing market [18]. Market Sentiment - Influential tech leaders express skepticism about the near-term utility of quantum computing, which adds to the uncertainty surrounding the market [20][21].

Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for D-Wave Quantum Inc. despite lower revenues, with a focus on how actual results will compare to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show a quarterly loss of $0.09 per share, reflecting a 10% improvement year-over-year, while revenues are projected to be $2.24 million, down 23% from the previous year [3]. - The earnings report is scheduled for release on March 13, 2025, and could influence stock movement based on whether results exceed or fall short of expectations [2]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a stable outlook from covering analysts [4]. - The Most Accurate Estimate for D-Wave Quantum is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -22.22%, suggesting a bearish sentiment among analysts [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank of 1, 2, or 3 [8]. - D-Wave Quantum currently holds a Zacks Rank of 3, making it challenging to predict an earnings beat conclusively [11]. Historical Performance - In the last reported quarter, D-Wave Quantum was expected to post a loss of $0.10 per share but actually reported a loss of $0.11, resulting in a surprise of -10% [12]. - The company has not beaten consensus EPS estimates in any of the last four quarters [13]. Conclusion - While the potential for an earnings beat exists, D-Wave Quantum does not appear to be a compelling candidate for such an outcome, and investors should consider other factors before making decisions [16].

Core Viewpoint - D-WAVE QUANTUM (QBTS) shares are currently overvalued, indicated by a Value Score of F, with a forward 12-month price/sales (P/S) ratio of 90.31X, significantly higher than its median of 14.26X and the sector's 6.49X [1][2]. Company Performance - QBTS shares have surged 554.8% in the trailing six months, outperforming the broader Zacks Computer and Technology sector's return of 13.7% and the Internet - Software industry's appreciation of 38.7% [3][4]. - QBTS has outperformed peers like IBM and Alphabet, which gained 33.2% and 14.2% respectively in the same period, attributed to its expanding clientele and influence in quantum computing [5]. Market Dynamics - The global quantum computing market is expected to grow at a CAGR of 20.1% from 2024 to 2030, indicating a robust growth trajectory for the industry [11]. - QBTS' Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in Q3 2024, driven by higher average revenue per customer [7]. Strategic Initiatives - In January, QBTS launched the Leap Quantum LaunchPad program, offering a three-month free trial of its technology to accelerate quantum application deployment [8]. - QBTS has formed partnerships with companies like Carahsoft and Zapata Computing, which have been significant growth drivers, particularly in the public sector [12]. Customer Base and Revenue Growth - QBTS has a diverse customer base of 132 across commercial, government, and research sectors, with a 66% revenue increase from government customers and a 47% increase from research customers in Q3 2024 [13]. - The Zacks Consensus Estimate for 2025 revenues is projected at $15.42 million, reflecting a 76.22% year-over-year increase [14]. Competitive Landscape - QBTS faces growing competition from companies like Rigetti Computing, IBM, Google, and IonQ, which are advancing in quantum technologies [16]. - Rigetti launched its 84-qubit Ankaa-3 system, enhancing its market position and potentially challenging QBTS [17]. Market Sentiment - Influential tech leaders, including Meta's CEO Mark Zuckerberg, express skepticism about the near-term utility of quantum computing, adding to market uncertainty [18][19]. Conclusion - The stretched valuation and stiff competition are expected to pressure QBTS shares in the near term, with a Zacks Rank 3 (Hold) suggesting a cautious approach for investors [20].

Investment Strategy - The company employs a contrarian investment style, focusing on high-risk, illiquid options and shares [1] - The investment portfolio is split approximately 50%-50% between shares and call options [1] - The investment timeframe typically ranges from 3 to 24 months [1] Stock Selection Criteria - The company targets stocks that have recently experienced sell-offs due to non-recurrent events, particularly when insiders are buying shares at lower prices [1] - Fundamental analysis is utilized to assess the health of companies, including their leverage and financial ratios compared to sector and industry averages [1] - Professional background checks are conducted on insiders who purchased shares after sell-offs [1] Technical Analysis - Technical analysis is used to optimize entry and exit points for positions, employing multicolor lines for support and resistance levels on weekly charts [1] - Trend lines are drawn in multicolor patterns to aid in analysis [1]

Quantum Computing Market Overview - IBM and Google have made significant advancements in quantum computing, with IBM launching its most advanced quantum computers and Google's Willow quantum chip demonstrating exceptional computational efficiency [1] - The global quantum computing market is expected to witness a CAGR of 20.1% from 2024 to 2030, driven by increasing demand for quantum solutions [10] QBTS Performance and Market Position - QBTS shares surged 420.3% in the trailing six months, outperforming the broader Zacks Computer and Technology sector (3.7%) and Internet - Software industry (14.2%) [8] - QBTS' Quantum Computing-as-a-Service revenues grew 41% year over year, totaling $1.6 million in Q3 2024, driven by higher average revenue per customer [9] - QBTS expanded its customer base to 132 customers across commercial, government, and research sectors, with significant revenue increases from government (66%) and research (47%) customers in Q3 2024 [11] QBTS Technological Advancements - QBTS completed the calibration and benchmarking of its 4,400+ qubit Advantage2 processor, marking significant performance improvements over the Advantage system in optimization, AI, and materials science [4] - QBTS successfully completed its second SOC 2 Type 2 audit in December 2024, reaffirming its commitment to customer data security and protection [15] QBTS Partnerships and International Expansion - QBTS' partnerships with Zapata Computing Holdings, Japan Tobacco, and Staque have been major growth drivers [5] - NTT DOCOMO plans to deploy a hybrid-quantum application using D-Wave technology to optimize mobile network performance and reduce signal congestion, expanding QBTS' international footprint [10] Competitive Landscape - Rigetti Computing launched its 84-qubit Ankaa-3 quantum computing system in December 2024, featuring significant hardware enhancements and major two-qubit gate fidelity milestones, potentially challenging QBTS' market position [7] - QBTS faces growing pressure from competitors like IBM, Google, and IonQ, intensifying market pressures with advancements in quantum computing technologies [12] Financial Outlook - The Zacks Consensus Estimate for QBTS' 2025 revenues is $15.42 million, indicating a 76.22% year-over-year increase [17] - QBTS is trading at a forward 12-month Price/Sales ratio of 103.34X, significantly higher than the sector's 7.09X, suggesting a stretched valuation [18]

Group 1: Quantum Computing Industry - Quantum computing is transitioning from a buzzword to a significant business sector, with Rigetti Computing Inc leading the way through its Quantum Cloud Services platform and innovative quantum processors [3][4] - Rigetti's business model is likened to an early-stage Nvidia, positioning it as a foundational player in quantum computing, with a strong cash position that supports further innovation [4] - D-Wave Quantum Inc is also making strides with its Quantum Computing as a Service model, focusing on real-world applications such as supply chain optimization and drug discovery, which has attracted investor interest [14][15] Group 2: Company Performance and Growth - Rigetti Computing has achieved a year-to-date gain of 1,578%, reflecting strong market confidence in its potential [12] - D-Wave Quantum has seen a year-to-date gain of 1,107%, driven by its focus on practical applications of quantum technology [14] - SoundHound AI Inc has experienced a remarkable year-to-date gain of 1,064%, with a 89% revenue increase in Q3 2024, attributed to strategic partnerships that enhance customer interactions [7][9]

Core Insights - D-Wave Quantum's stock price has surged by 500% in a month, driven by advancements in quantum computing technology and significant government funding [1][3]. Company Overview - D-Wave specializes in quantum computing, utilizing quantum annealing technology to solve complex optimization problems, distinguishing itself from conventional binary computing [1]. - The company generates revenue primarily through its Quantum Computing as a Service (QCaaS) offerings, which include access to advanced quantum technologies and tools for building quantum applications [4]. Industry Context - The potential applications of quantum computing span various fields, including financial modeling, drug discovery, and materials science, although the technology is still in a developmental stage [2][5]. - Recent advancements from major players like Google and Amazon have contributed to a rally in quantum stocks, including D-Wave [3]. Financial Performance - D-Wave reported a revenue of $9.4 million over the last twelve months, which is considered trivial in the context of its growth potential [5]. - The company has faced significant operating losses, amounting to $74 million in the last twelve months, indicating the high-risk, high-growth nature of its business model [5]. Market Comparison - D-Wave's stock has exhibited high volatility, with returns of -86% in 2022 and -39% in 2023, contrasting sharply with the performance of the Trefis High Quality Portfolio, which has consistently outperformed the S&P 500 [5].