Executive Summary
D-Wave Quantum Inc. delivered a significant milestone in Q4 2024 with record bookings of $18.3 million, bolstered by the first sale of its Advantage system to the Jülich supercomputing center. Despite a net loss of $86.1 million for the quarter, management highlighted strong cash reserves exceeding $300 million, positioning the company for sustained growth and capitalizing on its first-mover advantage in the quantum computing space. The successful demonstration of quantum supremacy enhances D-Wave's reputation and offers a clear competitive edge in an industry marked by rapid advancements.
Key Performance Indicators
QoQ: 23.48% | YoY:-20.54%
QoQ: 41.23% | YoY:-25.11%
QoQ: -278.99% | YoY:-437.51%
QoQ: -236.36% | YoY:-270.00%
Key Insights
**Revenue Performance:** D-Wave reported Q4 revenue of $2.3 million, down 21% YoY, yet showed a 23.48% increase QoQ. This reflects the transition strategy toward quantum compute-as-a-service (QCaaS) following a profitable hardware sale.
**Profitability Outlook:** The net income for the quarter stood at -$86.1 million, adversely impacted by a $68.3 million non-cash, non-operating charge. Excluding this, adjusted net loss declined to $17.8 million. Management's guidance anticipates Q1 2025 ...
Financial Highlights
Revenue Performance: D-Wave reported Q4 revenue of $2.3 million, down 21% YoY, yet showed a 23.48% increase QoQ. This reflects the transition strategy toward quantum compute-as-a-service (QCaaS) following a profitable hardware sale.
Profitability Outlook: The net income for the quarter stood at -$86.1 million, adversely impacted by a $68.3 million non-cash, non-operating charge. Excluding this, adjusted net loss declined to $17.8 million. Management's guidance anticipates Q1 2025 revenue to exceed $10 million, signaling potential recovery.
Liquidity Position: Cash liquidity is robust, with cash and equivalents surpassing $300 million, ensuring operational stability and growth investments. The current ratio stands at 6.14, significantly above industry thresholds, demonstrating strong short-term financial viability.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.31M |
-20.54% |
23.48% |
| Gross Profit |
1.47M |
-25.11% |
41.23% |
| Operating Income |
-20.23M |
-22.31% |
1.96% |
| Net Income |
-86.08M |
-437.51% |
-278.99% |
| EPS |
-0.37 |
-270.00% |
-236.36% |
Key Financial Ratios
operatingProfitMargin
-876%
Management Commentary
Key Growth Drivers:
"We see system sales as an important component in our go-to-market strategy moving forward... we expect to be the first pure play quantum company to reach profitability." - Dr. Alan Baratz.
"Our business momentum continues and we have never been in a stronger position as a company." - Dr. Alan Baratz.
Innovative Developments:
* "We are proud to be the first in the world to demonstrate quantum supremacy on a useful real-world problem..." - Dr. Alan Baratz, emphasizing the company's unique competitive advantage.
"We have never been in a stronger position as a company." - Dr. Alan Baratz
— Dr. Alan Baratz
"We expect to be the first pure play quantum company to reach profitability... with less cash invested than any of our competitors." - Dr. Alan Baratz
— Dr. Alan Baratz
Forward Guidance
Management projects revenue growth to exceed $10 million in Q1 2025, driven by the Jülich system sale and increased demand in QCaaS. With over $300 million in cash reserves, D-Wave aims to secure its leadership position in the emerging quantum computing market and achieve profitability faster than its competitors. Investors should monitor future sales of Advantage systems and emerging QCaaS contracts as key indicators of sustained growth.