EPS of $-0.95 decreased by 375% from previous year
Gross margin of 93.7%
Net income of -202.00M
""We are generating a strong foundation for what we expect will be another incredible year for IonQ."" - Thomas Kramer (CFO)
IonQ Inc (IONQ) Q4 2024 Financial Results: Quantum Computing's Best Year Yet, A Look into 2025
Executive Summary
IonQ Inc recorded a remarkable financial performance in Q4 2024, achieving revenues of $11.7 million, marking a 91.78% increase year-over-year. Total bookings surged to $95.6 million, a notable 47% increase compared to last year, driven by strategic acquisitions and a growing market demand for quantum solutions. The company's comprehensive approach towards enhancing its core offerings in quantum networking, as underscored by the acquisition of Qubitekk and the announced acquisition of ID Quantique, aims at establishing IonQ as a leader in the sector. Management emphasized that 2025 is expected to be a pivotal year for the company, positioning itself for inflection in quantum market growth. Despite a significant net loss of $202 million for the quarter and $331.6 million for the year, driven by increased operational investments, the outlook remains optimistic with projected 2025 revenue guidance between $75 million and $95 million.
Key Performance Indicators
Revenue
11.71M
QoQ: -5.56% | YoY:91.78%
Gross Profit
10.97M
93.68% margin
QoQ: 86.41% | YoY:272.75%
Operating Income
-77.50M
QoQ: -45.86% | YoY:-42.34%
Net Income
-202.00M
QoQ: -284.79% | YoY:-382.05%
EPS
-0.95
QoQ: -295.83% | YoY:-375.00%
Revenue Trend
Margin Analysis
Key Insights
**Revenue**: Q4 2024 revenue reached **$11.7 million**, nearly double compared to the prior year, driven by an increase in bookings and market demand.
**Operating Expenses**: Total operating expenses were **$89.2 million** for the quarter, up 47% from the prior year, with an emphasis on R&D and G&A costs to support growth.
**Net Income**: The company reported a net loss of **$202 million** for Q4 2024 compared to a loss of **$41.9 million** in Q4 2023.
**EPS**: Diluted EPS was **-$0.95**.
**Bookings**: Total bookings for 2024 amounted to **$95.6 million**, reflecting robust demand.
Financial Highlights
Financial Performance
- Revenue: Q4 2024 revenue reached $11.7 million, nearly double compared to the prior year, driven by an increase in bookings and market demand.
- Operating Expenses: Total operating expenses were $89.2 million for the quarter, up 47% from the prior year, with an emphasis on R&D and G&A costs to support growth.
- Net Income: The company reported a net loss of $202 million for Q4 2024 compared to a loss of $41.9 million in Q4 2023.
- EPS: Diluted EPS was -$0.95.
- Bookings: Total bookings for 2024 amounted to $95.6 million, reflecting robust demand.
Liquidity Ratios:
- Current Ratio: 10.50, indicating strong short-term liquidity.
- Cash Position: As of December 31, 2024, IonQ had $363.8 million in cash and cash equivalents, providing significant runway for ongoing operations and investments.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
11.71M
91.78%
-5.56%
Gross Profit
10.97M
272.75%
86.41%
Operating Income
-77.50M
-42.34%
-45.86%
Net Income
-202.00M
-382.05%
-284.79%
EPS
-0.95
-375.00%
-295.83%
Key Financial Ratios
currentRatio
10.5
grossProfitMargin
93.7%
operatingProfitMargin
-662%
netProfitMargin
-1725%
returnOnAssets
-39.7%
returnOnEquity
-52.6%
debtEquityRatio
0.05
operatingCashFlowPerShare
$0.03
freeCashFlowPerShare
$0.08
dividendPayoutRatio
-0.02%
priceToBookRatio
23.18
priceEarningsRatio
-11.01
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Key Management Insights
- Peter Chapman (Executive Chair): "2024 was IonQ's best year ever... we believe 2025 is slated to be the year IonQ drives an inflection in the quantum market." This underscores management's confidence in future growth.
- Niccolo de Masi (CEO): "I've long believed that the mid-2020s will be when quantum computing begins to impact virtually every aspect of applied science... Quantum networking is expected to be an equally large and impactful market opportunity." Highlights a strategy geared towards taking advantage of upcoming quantum technologies.
"We are generating a strong foundation for what we expect will be another incredible year for IonQ."
— Thomas Kramer (CFO)
"We are bullish about driving market leadership in quantum networking, furthering our goal of becoming the go-to provider in quantum technologies."
— Peter Chapman (Executive Chair)
Forward Guidance
IonQ is projecting revenue for 2025 to be between **$75 million and $95 million** with expectations of a continued upward trajectory in demand for quantum solutions. The shift away from providing bookings guidance indicates management's confidence in transforming this growth into tangible revenue. They anticipate an adjusted EBITDA loss of **$120 million** for the midpoint of their revenue guidance. Critical factors to monitor include the integration of acquired companies and their impact on IonQ's operational capabilities and product offerings, which will be critical for achieving stated revenue targets.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
IONQ Focus
93.68%
-6.62%
-52.60%
-11.01%
RGTI
44.10%
-8.13%
-1.21%
-5.65%
QUBT
-62.20%
-105.58%
-11.30%
-2.13%
DM
19.70%
-58.40%
-72.20%
-34.90%
QMCO
38.20%
38.20%
15.60%
-70.30%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
IonQ Inc stands at a significant juncture given its extensive plans for 2025. With management articulating strong growth initiatives, especially in quantum networking, prospects appear bright despite current losses. Investors are advised to consider both the growth potential and the associated risks, particularly operational expenditures. The anticipated revenue growth, emphasis on innovation, and strategic acquisitions provide a compelling case for investment as the company endeavors to solidify its market position amidst evolving industry dynamics. IonQ’s ability to navigate challenges and capitalize on opportunities within the quantum space could yield strong returns for long-term investors.
Key Investment Factors
Growth Potential
IonQ is positioning itself for significant growth with a projected nearly **95% revenue increase** in 2025 based on expanded market capabilities and new product offerings, particularly in quantum networking.
Profitability Risk
The ongoing financial losses and dependence on continuous R&D expenditures pose risks, particularly if anticipated growth does not materialize. Competition in the quantum computing space is intensifying, necessitating consistent innovation.
Financial Position
IonQ maintains a robust cash balance, bolstered by a new **$500 million** at-the-market facility, facilitating the potential for rapid scaling of operations and acquisitions.
SWOT Analysis
Strengths
Strong cash position with **$363.8 million** available for growth and acquisitions.
Significant year-over-year revenue growth of **91.78%** in Q4 2024 and **95%** for the full year.
Acquisition of strategic assets from Qubitekk and ID Quantique enhancing technological capabilities and market positioning.
Weaknesses
High operational costs leading to considerable net losses (**$331.6 million** for the full year).
Heavy dependence on R&D spending with losses impacting long-term profitability.
Opportunities
Growing demand for quantum computing and networking solutions with expected market expansion.
Potential for commercial advantage as quantum technologies evolve, positioning IonQ for leadership in new markets.
Threats
Intensifying competition from established and emerging players in the quantum computing sector.
Market volatility affecting technology investments and operational scalability.