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01/11 04:03
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call reveals strong financial performance with a 509% revenue increase, significant gross margin improvements, and reduced net losses. Additionally, D-Wave's strategic initiatives, such as the Quantum Realized Framework and new partnerships, demonstrate potential for growth. However, some concerns arise from the Q&A session, particularly regarding undisclosed partnership details and lack of clarity on future revenue run rates. Despite these uncertainties, the overall sentiment remains positive due to record revenues, profitability outlook, and robust cash position, likely leading to a positive stock price movement.
Revenue $15 million, an increase of $12.5 million or 509% from Q1 2024 revenue of $2.5 million, driven by the sale of an Advantage2 annealing quantum computing system to the Julich Supercomputer Center.
Bookings $1.6 million, a decrease of $2.9 million or 64% compared to Q1 2024 bookings of $4.5 million, with professional services bookings comprising more than 50% of the first quarter bookings.
GAAP Gross Profit $13.9 million, an increase of $12.2 million or 736% from Q1 2024 GAAP gross profit of $1.7 million, due primarily to the higher margin Advantage2 system sale.
Non-GAAP Gross Profit $14 million, an increase of $12.2 million or 644% from Q1 2024 non-GAAP gross profit of $1.9 million, influenced by the higher margin Advantage2 system sale.
GAAP Gross Margin 92.5%, an increase of 25.2% from Q1 2024 GAAP gross margin of 67.3%.
Non-GAAP Gross Margin 93.6%, an increase of 17% from Q1 2024 non-GAAP gross margin of 76.6%.
Net Loss $5.4 million or $0.02 per share, compared with a net loss of $17.3 million or $0.11 per share in Q1 2024, driven primarily by the $12.2 million increase in gross profit.
Adjusted EBITDA Loss $6.1 million, a decrease of $6.8 million or 53% from Q1 2024 adjusted EBITDA loss of $12.9 million, due primarily to the year-over-year increase in revenue and associated gross profit, partially offset by higher operating expenses.
Cash Position $304 million, a record cash position as of March 31, 2025.
Shareholders Equity $207.4 million, a record as of the end of the first quarter.
Advantage2 Quantum Computer: The Advantage2 annealing quantum computer has achieved important milestones on the path to general availability, expected by the end of this quarter. Key enhancements include calibration of 4,400+ qubit processor chips, Fast Anneal feature for faster processing, and successful quantum error mitigation.
Hybrid Quantum Solver: New hybrid quantum solver capabilities introduced, now supporting problems with up to 2 million variables, including integer and continuous variables, expanding use cases.
Open-source Toolkit: Launched an open-source toolkit in D-Wave’s Ocean SDK to accelerate quantum AI and machine learning innovation, enabling integration with PyTorch.
Ford Otosan Application: Ford Otosan developed a hybrid quantum application in production, reducing vehicle scheduling time from 30 minutes to less than 5 minutes.
Leap Quantum Launchpad Program: Strong interest in the Leap Quantum Launchpad program, with the first customer intending to convert from free trial to paid engagement in less than two months.
Record Revenue: Q1 revenue reached a record $15 million, a 509% increase from Q1 2024, influenced by the sale of an Advantage2 system.
Cash Position: Closed the quarter with a record $304 million in cash, sufficient to reach profitability.
Market Positioning: D-Wave is positioning itself as a leader in quantum computing, evidenced by increased website traffic (up 153%) and media coverage (up 803%).
Competitive Pressures: D-Wave faces competitive pressures from other quantum computing companies, which may impact its market share and pricing strategies.
Regulatory Issues: The company must navigate regulatory challenges related to quantum computing technology, which could affect its operations and product development.
Supply Chain Challenges: Potential supply chain disruptions could impact the production and delivery of quantum computing systems, affecting revenue and customer satisfaction.
Economic Factors: Economic downturns or fluctuations could influence customer spending on quantum computing solutions, impacting D-Wave's revenue growth.
Customer Adoption: The pace of customer adoption of quantum computing technology may be slower than anticipated, affecting future revenue projections.
Investment Risks: D-Wave's reliance on external funding and equity issuance poses risks if market conditions change or investor interest wanes.
Record Quarterly Revenue: Q1 revenue reached a record $15 million, driven by the sale of the Advantage2 system.
Cash Position: Closed the quarter with a record $304 million in cash, sufficient to reach profitability.
Product Development Milestones: Advantage2 system achieved significant performance enhancements, including doubled coherence time and increased qubit connectivity.
Hybrid Quantum Solver Capabilities: Introduced new capabilities to handle problems with up to 2 million variables, expanding use cases.
Leap Quantum Launchpad Program: Strong interest in the program, with the first customer converting from free trial to paid engagement in less than two months.
Future Revenue Expectations: Expect additional customer applications to enter production deployments over the course of 2025.
Profitability Outlook: D-Wave aims to be the first independent publicly held quantum computing company to achieve sustained profitability.
Customer Base Growth: Total of 133 customers, including 69 commercial customers, indicating a broadening customer base.
Investment in R&D: Increased investment in go-to-market and R&D organizations, impacting operating expenses.
Equity Raised: D-Wave raised $146.2 million in equity through its third aftermarket common stock issuance program during the fiscal 2025 first quarter.
Shareholder Equity: D-Wave exited the first quarter with a record $207.4 million in shareholders equity.
Equity Line of Credit: As of the end of the quarter, D-Wave had $37.8 million in available issuance capacity under the equity line of credit with Lincoln Park Capital Fund.
The earnings call indicates strong revenue growth, improved gross margins, and strategic initiatives in quantum AI and government engagements. Despite a significant net loss, the adjusted figures show improvement. The Q&A highlights potential in national security and defense, and successful trials in optimization problems. The focus on high-margin revenue streams and strategic partnerships, along with optimistic future plans, suggest a positive sentiment. However, the lack of clarity on certain deals and the increase in operating expenses temper the outlook. Overall, the stock is likely to see a positive movement.
The earnings call reveals strong financial performance, including record revenue and a robust cash position, which supports future profitability. Product development is promising, with the Advantage2 system demonstrating quantum supremacy. While M&A strategies and quantum AI milestones lack specificity, the company's strategic priorities and advancements in cryogenic technology are positive. The Q&A section highlights a focus on growth through acquisitions and R&D, with a high customer retention rate. Overall, the sentiment is positive, with potential for stock price appreciation over the next two weeks.
The earnings call reveals strong financial performance with a 509% revenue increase, significant gross margin improvements, and reduced net losses. Additionally, D-Wave's strategic initiatives, such as the Quantum Realized Framework and new partnerships, demonstrate potential for growth. However, some concerns arise from the Q&A session, particularly regarding undisclosed partnership details and lack of clarity on future revenue run rates. Despite these uncertainties, the overall sentiment remains positive due to record revenues, profitability outlook, and robust cash position, likely leading to a positive stock price movement.
The earnings call highlights strong financial performance with a 509% increase in revenue and a significant reduction in net loss. The company has a strong cash position and aims for profitability with less investment than competitors, indicating financial health. The Q&A section did not reveal major concerns and maintained positive sentiment, although some details were withheld. The company's technological advancements and strategic partnerships add to the positive outlook. Despite some uncertainties in customer adoption and error correction, the overall sentiment is positive, likely leading to a stock price increase in the short term.
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