On November 9, 2023, D-Wave Quantum Inc (QBTS, Financial), a leader in commercial quantum computing systems, software, and services, released its financial results for the fiscal third quarter ended September 30, 2023. The company reported a significant increase in revenue, bookings, and cash balance, reflecting a strong quarter of growth and financial health.
Financial Performance and Highlights
D-Wave Quantum Inc (QBTS, Financial) experienced a substantial increase in revenue, reporting $2.6 million for the third quarter, which is a 51% increase year-over-year and a 50% increase from the previous quarter. The company's total bookings for the quarter were $2.9 million, representing a 53% increase from the same period last year and a 16% increase from the second quarter of 2023. This marks the sixth consecutive quarter of year-over-year growth in bookings.
The company's cash balance reached a record high of $53.3 million, a significant increase from the previous quarter's $7.5 million. This financial strength is attributed to successful fundraising efforts, including over $94.0 million raised in debt and equity during the nine months ended September 30, 2023.
Commercial Success and Expansion
D-Wave Quantum Inc (QBTS, Financial) has seen notable commercial traction, with revenue from commercial customers increasing by 62% compared to the previous year. The company also reported an increase in the average revenue per commercial customer by 68%. Commercial revenue now represents 70% of the total revenue, up from 50%.
Dr. Alan Baratz, CEO of D-Wave, commented on the company's progress, stating,
We believe that this is a pivotal moment in quantum computing, as D-Wave leads the industry’s transformative shift from research and developmental experimentation to true delivery of quantum’s enterprise value and utility."He also highlighted the transition of customers from development to deployment of applications, emphasizing the business impact and near-term advantage of D-Wave's annealing quantum computing solutions.
Operational and Technical Advancements
The company has made significant technical advancements, including progress in the development of high coherence qubits and the successful demonstration of quantum error mitigation on the upcoming Advantage2TM annealing quantum system prototype. These developments are expected to have a substantial impact on future quantum technologies.
Financial Statements Analysis
The GAAP Gross Profit for the third quarter was $1.5 million, a 47% increase from the third quarter of fiscal 2022. The GAAP Gross Margin was 59.7%, slightly lower than the previous year's 61.4% due to higher non-cash stock-based compensation expense. The Non-GAAP Gross Profit and Margin saw significant improvements, with the Non-GAAP Gross Profit reaching $1.9 million, a 72% increase from the previous year, and the Non-GAAP Gross Margin at 75.6%, up from 66.4%.
GAAP Operating Expenses for the third quarter were $19.9 million, an increase primarily due to higher non-cash stock-based compensation expense and higher public company and headcount-related expenses. However, the company managed to reduce Non-GAAP Adjusted Operating Expenses sequentially, reporting $13.5 million for the third quarter, reflecting effective cost management.
The Net Loss for the third quarter was $15.8 million, or $0.12 per share, compared to a Net Loss of $13.3 million, or $0.11 per share, in the third quarter of fiscal 2022. The Adjusted EBITDA Loss for the third quarter was $11.6 million, an 11% decrease from the previous year, indicating an improvement in the company's operational efficiency.
Outlook and Future Prospects
For the full fiscal year 2023, D-Wave Quantum Inc (QBTS, Financial) expects revenue to be in the range of $10 million to $11.5 million and Adjusted EBITDA Loss to be less than $56 million. The company's financial health and operational advancements position it well for continued growth in the rapidly evolving quantum computing industry.
D-Wave Quantum Inc (QBTS, Financial) will host a conference call to discuss the financial results and business outlook, providing an opportunity for investors and analysts to gain further insights into the company's performance and strategies.
For detailed financial tables and a reconciliation of GAAP to Non-GAAP financial measures, please refer to the full earnings release.
Investors and stakeholders are encouraged to visit GuruFocus.com for more in-depth analysis and up-to-date information on D-Wave Quantum Inc (QBTS, Financial) and other investment opportunities.
Explore the complete 8-K earnings release (here) from D-Wave Quantum Inc for further details.
