"We believe that D-Wave has the opportunity to be the first independent publicly held quantum computing company to achieve sustained profitability."
— Dr. Alan Baratz, CEO
03Detailed Report
QBTS
DWave Quantum Inc
Period
Q3 2024
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedMay 29, 2026
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Executive Summary
DWave Quantum Inc's Q3 2024 financial performance exhibited significant challenges, reflecting a 27% year-over-year decline in revenue. Despite these challenges, the company is witnessing increased customer interest in its quantum services, particularly with the recent successful pilot with NTT DOCOMO, which indicates positive momentum for future deployments. Management emphasized the potential for higher recurring revenues as applications transition to production, potentially generating significant annual revenue from key contracts. With a robust cash balance post-debt repayment and a growing client base, DWave is strategically positioning itself within the evolving quantum computing market.
Key Performance Indicators
Revenue
Decreasing
1.87M
QoQ: -14.34% | YoY: -27.01%
Gross Profit
Decreasing
1.04M
55.78% margin
QoQ: -24.86% | YoY: -31.79%
Operating Income
Decreasing
-20.64M
QoQ: -9.54% | YoY: -12.11%
Net Income
Decreasing
-22.71M
QoQ: -27.75% | YoY: -43.48%
EPS
Increasing
-0.11
QoQ: -10.00% | YoY: 8.33%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue Performance: DWave reported revenues of $1.87 million for Q3 2024, marking a decrease of 27% year-over-year from $2.56 million in Q3 2023. The decline was primarily driven by a drop in professional services revenue. Gross Profit: The gross profit stood at $1.04 million with a gross margin of 55.8%, down from 59.7% a year earlier.
Operating Income & Net Income: Q3 2024 saw an operating loss of $20.64 million, compared to a loss of $16.09 million in Q3 2023. Net income was reported at -$22.71 million, reflecting a concerning net profit margin of -12.15%.
Cash Position: DWave's cash balance improved to $29.3 million after debt repayment, bolstering liquidity as they advance toward commercial applications. The current ratio at 1.36 indicates a reasonable ability to cover short-term obligations.
YoY Comparisons: The company's year-to-date 2024 revenue is up 11% compared to the same period in 2023, mainly driven by substantial growth in Quantum Computing as a Service (QCaaS) revenue by 52%.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
1.87M
-27.01%
-14.34%
Gross Profit
1.04M
-31.79%
-24.86%
Operating Income
-20.64M
-12.11%
-9.54%
Net Income
-22.71M
-43.48%
-27.75%
EPS
-0.11
8.33%
-10.00%
Key Financial Ratios
Gross Profit Margin
Good
55.80%
Gross profit margin is healthy and competitive within industry standards
Operating Profit Margin
Weak
-11.04%
Operating margin is below industry norms, profitability concerns
Net Profit Margin
Weak
-12.15%
Net profit margin is below industry norms, profitability concerns
Return on Assets
Weak
-0.46%
Return on assets suggests inefficient capital allocation
Return on Equity
Weak
1.34%
Return on equity suggests inefficient capital allocation
Current Ratio
Adequate
1.36
Current ratio meets minimum requirements but limited cushion
Debt to Equity
Conservative
-3.23
Debt-to-equity shows conservative leverage and low financial risk
P/E Ratio
Negative
-2.18x
Negative earnings make P/E ratio not meaningful
Price to Book
Undervalued
-11.71x
Trading below book value, potential value opportunity or distressed
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