8-K: D-Wave Quantum Inc. Reports Record Bookings and Strong Cash Position in Q4 and Year-End 2024 Results

D-Wave Quantum Inc. announces a 128% year-over-year increase in bookings and a cash position exceeding $300 million, highlighting significant commercial and technical advancements.

Summary

• D-Wave Quantum Inc. reported its financial results for the fourth quarter and full year ended December 31, 2024.
• The company achieved record bookings for the year, totaling $23.9 million, a 128% increase from the previous year's $10.5 million.
• Fourth-quarter bookings reached $18.3 million, a 502% increase compared to the $3.0 million recorded in the same period last year.
• D-Wave's consolidated cash balance as of December 31, 2024, was $178.0 million, and it has since exceeded $300 million as of the date of the earnings press release.
• Revenue for the year was $8.8 million, consistent with the previous year.
• GAAP gross profit for the year increased by 20% to $5.6 million, with a gross margin of 63.0%.
• The company's net loss for the year was $143.9 million, or $0.75 per share, primarily due to a non-cash charge related to the remeasurement of the company's warrant liability.
• Adjusted EBITDA loss for the year was $56.0 million, a 3% increase from the previous year.
• The company expects first quarter fiscal 2025 revenue to exceed $10 million.

Sentiment

Score: 7

Explanation: The document presents a generally positive outlook due to record bookings and a strong cash position. However, the increased net loss and adjusted EBITDA loss temper the overall sentiment.

Positives

• Record bookings for the year, increasing 128% to $23.9 million.
• Significant increase in Q4 bookings, up 502% to $18.3 million.
• Strong cash position, exceeding $300 million.
• Demonstrated quantum computational supremacy on a real-world problem.
• Introduction of on-premises systems offering and first purchase by Julich Supercomputing Centre.
• Launch of Quantum Uplift program to attract dissatisfied customers from competitors.
• Calibration of a third 4,400 qubit Advantage2 processor with performance gains.
• GAAP gross profit increased by 20% to $5.6 million.
• D-Wave raised $307.5 million through ATM programs.

Negatives

• Revenue for the year remained flat at $8.8 million.
• Net loss for the year increased to $143.9 million, primarily due to a non-cash charge related to warrant liability.
• Adjusted EBITDA loss increased by 3% to $56.0 million.
• Revenue for the fourth quarter of fiscal 2024 decreased 21% to $2.3 million.
• GAAP gross profit for the fourth quarter of fiscal 2024 decreased 25% to $1.5 million.

Risks

• The company's ability to raise additional funds under the ELOC is subject to conditions, including stock price being above $1.00 per share.
• Forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially.

Future Outlook

The company expects first quarter fiscal 2025 revenue to exceed $10 million, including revenue from the sale of an Advantage annealing quantum computer.

Management Comments

• Every day D-Waves quantum technology is helping customers gain competitive advantages, discover new scientific breakthroughs, and fuel innovations that were previously unimaginable, said Dr. Alan Baratz, CEO of D-Wave.
• Our mission is unwavering to help organizations realize the benefits of quantum computing now.
• With record bookings, a record cash position and an unequivocal demonstration of our quantum system outperforming classical on a real-world problem, our progress toward achieving that mission is clear.

Industry Context

D-Wave is positioning itself as a leader in the quantum computing space, emphasizing its focus on practical, real-world applications and its ability to outperform classical computers on useful problems. The company is actively targeting organizations dissatisfied with competitor quantum systems, suggesting a competitive landscape where D-Wave aims to differentiate itself through tangible value and reliable uptime.

Comparison to Industry Standards

• D-Wave highlights its 99.9%+ availability of D-Wave Leap quantum cloud service, contrasting it with competitors like IonQ ( > 1 week average queue time), Rigetti ( < 70% Azure uptime), and QuEra ( < 33% Braket uptime).
• The company emphasizes its demonstration of quantum supremacy on important/useful problems, directly applicable to materials simulation, while criticizing Google's demonstration on a contrived problem with no practical application.
• D-Wave points out that its revenue is generated from 70+ revenue generating commercial customers with business applications in production, contrasting it with IonQ/Rigetti, whose revenue is dominated by a few government grants.

Stakeholder Impact

• Shareholders will likely react positively to the record bookings and strong cash position.
• Customers will benefit from the advancements in quantum computing technology and the availability of on-premises systems.
• Employees may experience increased job security and growth opportunities due to the company's expansion.

Next Steps

• The company will host a conference call on March 13, 2025, to discuss the financial results and business outlook.
• Qubits 2025, the company's annual user conference, will take place March 31 and April 1 in Scottsdale, Arizona.

Key Dates