8-K: Rigetti Computing Announces Preliminary Q4 and Full Year 2023 Financial Results, Achieves Quantum Computing Milestone

Rigetti Computing released preliminary unaudited financial results for Q4 and the full year 2023, alongside announcing the public availability of their 84-qubit Ankaa-2 quantum system and a UK grant for a 24-qubit computer.

Summary

• Rigetti Computing has announced preliminary unaudited financial results for the fourth quarter and full year ended December 31, 2023.
• The company estimates revenue for Q4 2023 to be between $2.9 million and $3.4 million, and full-year revenue to be between $11.5 million and $12.1 million.
• The estimated operating loss for Q4 2023 is between $19.2 million and $17.7 million, and for the full year, it is estimated to be between $74.3 million and $72.8 million.
• As of December 31, 2023, the company's cash, cash equivalents, and available-for-sale investments are estimated to be approximately $99.9 million.
• Rigetti made its 84-qubit Ankaa-2 quantum system publicly available via its Quantum Cloud Services platform in Q4 2023.
• The Ankaa-2 system has achieved a 98% median 2-qubit fidelity and a 2-qubit gate time of 68 nanoseconds.
• Rigetti UK Limited was awarded a grant to develop and deliver a 24-qubit quantum computer to the National Quantum Computing Centre.
• Since September 30, 2023, Rigetti sold 5,215,464 shares of common stock for net proceeds of $5.5 million.

Sentiment

Score: 5

Explanation: The document presents a mixed picture. While there are positive technological advancements and a new grant, the significant operating losses and the need to raise capital through share sales temper the overall sentiment. The preliminary nature of the financial results also adds uncertainty.

Positives

• The Ankaa-2 system represents a significant improvement in error performance with a 2.5x improvement compared to previous QPUs.
• The 2-qubit gate time of 68 nanoseconds is the shortest demonstrated by a Rigetti QPU.
• The grant awarded to Rigetti UK Limited demonstrates external validation of their technology.
• The company has a cash balance of approximately $99.9 million.

Negatives

• The company is still operating at a significant loss, with an estimated operating loss of $72.8 million to $74.3 million for the full year 2023.
• The financial results are preliminary and unaudited, subject to adjustments and revisions.
• The company has sold a significant number of shares for a relatively small amount of capital.

Risks

• The preliminary financial results are subject to change upon completion of the audit.
• The company's ability to achieve technological advancements and develop practical applications is uncertain.
• The company's ability to secure government contracts and funding is not guaranteed.
• The company faces risks related to the evolution of the quantum computing market and competition.
• The company is exposed to various economic, business, and competitive factors, including global events.

Future Outlook

The company anticipates announcing final earnings results for the quarter and full year ended December 31, 2023 in March 2024, and is focused on developing and delivering a 24-qubit quantum computer to the National Quantum Computing Centre.

Management Comments

• Management's current expectations and estimates are the basis for the preliminary unaudited financial results.
• Management considers the estimates and assumptions used in the forward-looking statements to be reasonable, but inherently uncertain.

Industry Context

The announcement highlights Rigetti's progress in quantum computing technology, particularly with the public availability of the Ankaa-2 system, which is a key milestone in the competitive quantum computing landscape. The grant for the 24-qubit computer also positions Rigetti as a player in the UK's quantum computing initiatives.

Comparison to Industry Standards

• Rigetti's 98% median 2-qubit fidelity is a significant improvement over their previous systems, but it is important to compare this to other quantum computing companies such as IonQ and Google Quantum AI, who also report high fidelity results.
• The 68 nanosecond 2-qubit gate time is competitive, but other companies are also working on improving gate times and coherence.
• The revenue figures are relatively low compared to more established tech companies, but this is expected for a company in the early stages of the quantum computing market.
• The operating losses are substantial, which is typical for companies investing heavily in research and development in this sector. Companies like D-Wave and Xanadu also report significant losses as they develop their technology.

Stakeholder Impact

• Shareholders may be concerned about the significant operating losses and the dilution of their shares due to the recent capital raise.
• Employees may be encouraged by the technological advancements and the new grant, but also concerned about the company's financial performance.
• Customers may be interested in the availability of the Ankaa-2 system and the potential for future quantum computing solutions.
• Creditors may be concerned about the company's financial losses and its ability to repay debts.

Next Steps

• The company will finalize its financial statements for the year ended December 31, 2023.
• The company will announce final earnings results in March 2024.
• Rigetti UK Limited will develop and deliver a 24-qubit quantum computer to the National Quantum Computing Centre.

Key Dates

Keywords

quantum computing, quantum processor, Ankaa-2, QPU, financial results, revenue, operating loss, quantum cloud services, fidelity, gate time, capital raise