01 Quantum (ONE) Q3 2024 earnings summary

Executive summary

• Achieved near break-even in Q3 2024, with an operating loss of approximately CAD 5,000, reflecting strong cost control and operational progress.

• Incorporated NIST's three new PQC standards into IronCAP engine, maintaining a multi-year lead in post-quantum cryptography.

• Revenue showed a slight uptick, and the company remains debt-free, positioning it well for future profitability as market momentum builds.

• Business model focuses on providing a free encryption engine and monetizing end-user post-quantum applications and conversion services.

• Positioned for profitability as revenue from partners and customers builds.

Financial highlights

• Q3 2024 operating loss reduced to about CAD 5,000, essentially achieving break-even.

• Revenue rose to $126,103 from $106,197 year-over-year, driven mainly by recurring subscription fees.

• Cash operating expenses reduced to $119,335 from $173,395; product development expenses fell to $34,538 from $73,995.

• Over CAD 6 million invested in IronCAP development, fully expensed in the books.

• Cash balance at quarter-end was $125,716, down from $272,540 at prior fiscal year-end.

Outlook and guidance

• Expects to cross into profitability with any increase in revenue momentum.

• Anticipates strong business opportunities as PQC adoption accelerates, especially in AI, cryptocurrencies, remote access, and file sharing.

• Management is optimistic about the remainder of 2024 and into 2025, citing industry trends and technology fit.

• Profitability expected if revenue growth from partners and customers materializes.

• Anticipates further NIST PQC standards, with ongoing focus on quantum-safety in technology sectors.