Rigetti Computing (RGTI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2.4 million, down 23% year-over-year, with a net loss of $14.8 million, improved from $22.2 million in Q3 2023; nine-month net loss was $48.0 million, improved from $62.5 million year-over-year.

• Advanced modular system architecture, targeting a 36-qubit system by mid-2025 and a 100+ qubit system by end of 2025, both aiming for 99.5% median 2-qubit gate fidelity.

• Progress on the 84-qubit Ankaa-3 system remains on track for release by end of 2024, targeting 99%+ median 2-qubit gate fidelity.

• Demonstrated real-time, low-latency quantum error correction with Riverlane on the 84-qubit Ankaa-2 system and introduced ABAA chip fabrication technique for higher fidelity.

• Expanded international presence with installations at the Israeli Quantum Computing Center and the UK’s NQCC, supporting research and quantum machine learning projects.

Financial highlights

• Q3 2024 revenue was $2.4 million, down from $3.1 million in Q3 2023, mainly due to lower QCaaS revenue and a lower-margin 24-qubit system contract.

• Gross margin for Q3 2024 was 51%, compared to 73% in Q3 2023, impacted by higher costs and unfavorable contract mix.

• Total operating expenses were $18.6 million, down from $19.1 million year-over-year.

• Net loss for Q3 2024 was $14.8 million ($0.08 per share), improved from $22.2 million ($0.17 per share) in Q3 2023.

• Cash used in operating activities for the nine months ended September 30, 2024 was $42.1 million, up from $38.2 million in 2023.

Outlook and guidance

• Confident in executing the roadmap for modular, tiled quantum systems, with 36-qubit and 100+ qubit systems planned for 2025.

• Cash, cash equivalents, and investments of $92.6 million expected to fund operations until midway through Q1 2026; additional capital will be required beyond that period.

• Revenue is expected to remain volatile, with development contracts and QPU sales as primary sources for the next few years.

• No significant increase in OpEx anticipated; spending to remain in line or slightly higher than recent quarters.

• Technology roadmap includes a 336-qubit Lyra system after 2025.