D-Wave Quantum (QBTS) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue increased 28% year-over-year to $2.2 million, with bookings up 6% to $2.7 million, marking the ninth consecutive quarter of bookings growth and customer count rising to 130.

• Net loss narrowed to $17.8 million ($0.10/share) from $26.2 million ($0.21/share) in Q2 2023, and cash at quarter-end was $40.9 million.

• Achieved major technical and product milestones, including a new quantum AI/ML roadmap, expanded Zapata AI partnership, and a second US-based Advantage quantum computer.

• Expanded commercial and government adoption, with 26 Forbes Global 2000 customers and notable use cases in logistics, manufacturing, and public sector.

• Recognized as a market leader with the world's largest quantum computer accessible via cloud and a robust patent portfolio.

Financial highlights

• Q2 2024 gross profit was $1.4 million, up 97% year-over-year; GAAP gross margin improved to 63.6% from 41.3%; non-GAAP gross margin was 73.1%.

• Q2 non-GAAP adjusted operating expenses were $15.5 million, down 3% year-over-year; adjusted EBITDA loss was $13.9 million, a 7% improvement.

• First half 2024 revenue was $4.6 million, up 41% year-over-year; bookings were $7.2 million, up 58%.

• Net loss for the first half was $35.1 million, down from $50.6 million in the prior year period.

• Cash used in operations for the first half of 2024 was $26.6 million, a decrease from $29.0 million in the prior year period.

Outlook and guidance

• Reiterated full-year 2024 guidance, expecting adjusted EBITDA loss to be less than 2023's $54.3 million.

• Management expects continued significant operating losses and negative cash flows as investments in R&D and commercial expansion persist.

• Substantial doubt exists about the ability to continue as a going concern for the next year without additional capital.

• Sales organization transformation expected to complete by year-end, with anticipated acceleration in bookings thereafter.

• Ongoing calibration of a 4800+ qubit Advantage2 processor, with a roadmap toward a 7000+ qubit system.