The quantum computing industry is shaping to be one of the most dynamic investment frontiers, fueled by surging interest from commercial and government sectors. Market forecasts paint a bright future, with the industry expected to expand from $1.16 billion in 2024 to $12.6 billion by 2032, reflecting a remarkable 34.8% annual growth rate.Google’s recent unveiling of its quantum computing chip, “Willow”, has intensified this momentum, marking a significant leap in the field and highlighting quantum computing ...

Revenue and Cost of Revenue - Revenue decreased by $0.7 million (27%) to $1.9 million for Q3 2024 compared to $2.6 million in Q3 2023, driven by a $1.1 million decrease in professional service revenue partially offset by a $0.5 million increase in QCaaS revenue[91] - Revenue increased by $0.7 million (11%) to $6.5 million for the nine months ended September 30, 2024, driven by a $1.7 million increase in QCaaS revenue[100] - Cost of revenue decreased by $0.2 million (20%) to $0.8 million for Q3 2024 compared to $1.0 million in Q3 2023, primarily due to a decrease in non-cash stock-based compensation[92] - Cost of revenue decreased by $0.8 million (24%) to $2.4 million for the nine months ended September 30, 2024, primarily due to reductions in non-cash stock-based compensation and personnel costs[101] Net Loss and Accumulated Deficit - Net loss increased by $6.6 million (41%) to $22.7 million for Q3 2024 compared to $16.1 million in Q3 2023[90] - The company had an accumulated deficit of $540.9 million as of September 30, 2024, with net cash outflows from operating activities of $44.7 million for the nine months ended September 30, 2024[111] Research and Development Expenses - Research and development expenses decreased by $0.8 million (8%) to $8.7 million for Q3 2024 compared to $9.5 million in Q3 2023, driven by decreases in stock-based compensation and fabrication costs[93] - Research and development expenses decreased by $4.4 million (15%) to $25.5 million for the nine months ended September 30, 2024, driven by lower stock-based compensation and personnel costs[102] General and Administrative Expenses - General and administrative expenses increased by $1.3 million (16%) to $9.3 million for Q3 2024 compared to $8.0 million in Q3 2023, primarily due to increases in professional services and credit losses[94] - General and administrative expenses decreased by $4.6 million (16%) to $24.3 million for the nine months ended September 30, 2024, primarily due to reductions in professional fees and stock-based compensation[103] Sales and Marketing Expenses - Sales and marketing expenses increased by $1.3 million (52%) to $3.8 million for Q3 2024 compared to $2.5 million in Q3 2023, driven by increases in personnel costs and stock-based compensation[95] - Sales and marketing expenses increased by $3.4 million (43%) to $11.2 million for the nine months ended September 30, 2024, driven by higher personnel costs and stock-based compensation[104] Interest Expense and Term Loan - Interest expense increased by $0.1 million (14%) to $1.2 million for Q3 2024 compared to $1.0 million in Q3 2023, primarily due to the Term Loan[96] - Interest expense increased by $1.7 million (91%) to $3.5 million for the nine months ended September 30, 2024, primarily due to the Term Loan[105] - The fair value of the Term Loan increased by $1.6 million for Q3 2024 compared to a decrease of $1.7 million in Q3 2023[97] - The fair value of the Term Loan increased by $0.6 million for the nine months ended September 30, 2024, compared to a decrease of $1.4 million in the same period in 2023[106] - Term Loan debt issuance costs decreased by $0.7 million for Q3 2024 compared to Q3 2023, as there were no advances on the Term Loan during Q3 2024[98] Other Income and Expenses - Gain on investment in marketable equity securities increased by $1.5 million for the nine months ended September 30, 2024, due to an acquisition of an investee[108] - Other income (expense), net increased by $1.8 million (5365%) to $1.8 million for the nine months ended September 30, 2024, driven by foreign exchange gains and higher interest income[110] Cash Flow and Liquidity - Net cash used in operating activities for the nine months ended September 30, 2024 was $44.7 million, a decrease of $1.3 million from $45.9 million in 2023[115] - Net cash used in investing activities for the nine months ended September 30, 2024 was $2.2 million, an increase of $2.0 million from $0.2 million in 2023[116] - Net cash provided by financing activities for the nine months ended September 30, 2024 was $34.9 million, a decrease of $57.5 million from $92.4 million in 2023[118] - Proceeds from the issuance of common stock pursuant to the ATM Agreement were $20.7 million for the nine months ended September 30, 2024[118] - The company's liquidity condition raises substantial doubt about its ability to continue as a going concern for one year from the issuance of the financial statements[113] - The decrease in noncash items was primarily due to a $5.6 million decrease in stock-based compensation and a $3.1 million decrease in non-cash interest expense[115] - The increase in cash used in investing activities was primarily due to a $1.0 million purchase of convertible notes and a $1.0 million increase in property and equipment purchases[116] - The decrease in cash provided by financing activities was primarily due to a $29.2 million decrease in proceeds from the issuance of common stock and a $29.0 million decrease in debt financing proceeds[118] - The company may need to obtain additional capital through debt or equity issuance if sufficient capital is not obtained from existing agreements[113] - The company's operating cash flows are significantly affected by research and development, sales and marketing, and general and administrative activities[115] QCaaS Revenue Expectations - The company expects QCaaS revenue as a percentage of total revenue to increase due to more QCaaS agreements driven by professional services engagements and direct Leap cloud service access[84]

Financial Data and Key Metrics Changes - Revenue for Q3 2024 totaled $1.9 million, a decrease of approximately $700,000 or 27% from Q3 2023 revenue of $2.6 million [24] - GAAP gross profit for Q3 was $1 million, a decrease of $500,000 or 32% from Q3 2023 gross profit of $1.5 million [30] - Net loss for Q3 was $22.7 million or $0.11 per share compared to a net loss of $16.1 million or $0.12 per share in Q3 2023 [33] - Adjusted EBITDA loss for Q3 was $13.8 million, an increase of $2.2 million or 19% compared to the adjusted EBITDA loss of $11.6 million in Q3 2023 [34] Business Line Data and Key Metrics Changes - QCaaS revenue for Q3 was $1.6 million, an increase of $500,000 or 41% from Q3 2023 QCaaS revenue of $1.1 million [24] - Professional services revenue for Q3 was $300,000, a decrease of $1 million or 80% from Q3 2023 professional services revenue of $1.3 million [25] - Bookings for Q3 totaled $2.3 million, a decrease of $600,000 or 22% compared to Q3 2023 bookings of $2.9 million [26] Market Data and Key Metrics Changes - Revenue from government customers increased by $800,000 or 66% compared to the previous four quarters [29] - Revenue from research customers increased by $600,000 or 47% compared to the previous four quarters [29] - Revenue from commercial customers decreased slightly by $200,000 or 4% compared to the previous four quarters [29] Company Strategy and Development Direction - The company is focused on expanding its go-to-market organization, having filled 11 positions across various regions [27] - D-Wave aims to be the first independent publicly held quantum computing company to achieve sustained profitability with less funding than competitors [41] - The company is exploring generative AI architectures that utilize quantum processing units for model training and inference [11] Management's Comments on Operating Environment and Future Outlook - Management noted increasing interest in quantum technology and believes that annealing quantum computing is critical for commercial adoption [7] - The company is optimistic about the potential for government funding through the re-authorization of the National Quantum Initiative [50] - Management highlighted the significant progress with NTT DOCOMO and the potential for increased QCaaS revenue as applications move into production [46] Other Important Information - D-Wave has been deemed awardable on the U.S. Department of Defense's Tradewinds buying platform, facilitating easier procurement of their products [17] - The company has nearly $30 million in cash and has paid off a $50 million secured term loan [22][41] - D-Wave's Leap quantum cloud service has consistently exceeded 99.9% availability over the past two years [12] Q&A Session Summary Question: Timing for NTT DOCOMO moving to production - Management confirmed that NTT DOCOMO is planning to move applications into production but has not disclosed a timeline [46] Question: Insights on government business momentum - Management noted significant interest from U.S. government agencies and highlighted the importance of being deemed awardable on the Tradewinds platform [51] Question: Impact of recent research on encryption from China - Management clarified that while the research is interesting, it does not pose a current threat to existing cryptographic systems [58] Question: Potential for government budget tightening - Management indicated that any potential budget tightening would likely impact gate model providers more than D-Wave, which has focused on commercial revenue [94]

D-Wave Quantum Inc. (QBTS) came out with a quarterly loss of $0.11 per share versus the Zacks Consensus Estimate of a loss of $0.10. This compares to loss of $0.12 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -10%. A quarter ago, it was expected that this company would post a loss of $0.10 per share when it actually produced a loss of $0.10, delivering no surprise.Over the last four quarters, the company has not been able t ...

Exhibit 99.1 D-Wave Reports Third Quarter 2024 Results Q3 QCaaS Revenue up 41% Year over Year Fiscal YTD Revenue up 11% Year over Year Fiscal YTD GAAP Gross Profit up 54% Year over Year PALO ALTO, Calif. – November 14, 2024 – D-Wave Quantum Inc., (NYSE: QBTS) ("D-Wave" or the "Company") a leader in commercial quantum computing systems, software, and services, today announced financial results for its third fiscal quarter ended September 30, 2024. "Annealing quantum computing is continuing to drive the comme ...

This is my third article on D-Wave (NYSE: QBTS ); in the past, I have been put off investing because of a lack of evidence regarding commercial traction and clarity regarding the business model. The use case of D-Wave quantum annealing computersI look at small to mid-cap companies with disruptive technology. I provide competitive analysis of companies and often research the founders and their previous endeavors. I follow, investigate and report on companies that I believe have growth potential and highlight ...

LOS ANGELES, Aug. 12, 2024 (GLOBE NEWSWIRE) -- via IBN -- D-Wave Quantum Inc. (NYSE: QBTS) ("D-Wave" or the "Company"), a leader in quantum computing systems, software, and services, and the world's first commercial supplier of quantum computers, today announced that it has been featured in a broadcast via NetworkNewsAudio ("NNA"), which delivers additional visibility, recognition and brand awareness to the investment community via distribution to thousands of syndication points. The audio news release cove ...

Table of Contents ________________________ UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ________________________ FORM 10-Q ________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ and ____________ Commission file number 001-41468 D-WA ...

D-Wave Quantum Inc. (NYSE:QBTS) Q2 2024 Earnings Call August 8, 2024 8:00 AM ET Company Participants Kevin Hunt - Investor Relations Alan Baratz - Chief Executive Officer John Markovich - Chief Financial Officer Conference Call Participants Craig Ellis - B. Riley Securities Quinn Bolton - Needham Richard Shannon - Craig-Hallum David Williams - Benchmark Suji Desilva - ROTH Capital Harsh Kumar - Piper Sandler Operator Good morning, ladies and gentlemen and welcome to the D-Wave Second Quarter 2024 Earnings C ...

D-Wave Quantum Inc. (QBTS) came out with a quarterly loss of $0.10 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.14 per share a year ago. These figures are adjusted for nonrecurring items. A quarter ago, it was expected that this company would post a loss of $0.08 per share when it actually produced a loss of $0.11, delivering a surprise of -37.50%. Over the last four quarters, the company has not been able to surpass consensus EPS estimates. D-WAVE QUANTUM, which belongs ...