IonQ Announces Second Quarter 2024 Financial Results
Second Quarter Results of
Secures
Demonstrates Company Record Two-Qubit Native Gate Fidelity of 99.9%, Paving the Way for Highly Accurate Quantum Systems
Announces Discovery of Partial Error Correction Technique, Bringing Quantum Era Within Reach
“This was a tremendous quarter for
“This was also a major quarter for IonQ’s commercialization, including our win of a system design project with ARLIS (the
Financial Highlights
-
IonQ recognized revenue of$11.4 million for the second quarter, which is above the high end of the previously provided range of$7.6 to$9.2 million , and represents 106% growth compared to$5.5 million in the prior year. -
IonQ achieved$9.0 million in new bookings for the second quarter. -
Cash, cash equivalents and investments were
$402.0 million as ofJune 30, 2024 . -
Net loss was
$37.6 million and Adjusted EBITDA loss was$23.7 million for the second quarter.* Exclusions from Adjusted EBITDA include a non-cash gain of$6.6 million related to the change in the fair value of IonQ’s warrant liabilities.
*Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.
Technical Highlights
-
IonQ demonstrated a company record, two-qubit native gate fidelity of 99.9% using its next-generation barium qubits, paving the way for highly accurate quantum systems to tackle increasingly complex problems for customers. This milestone was achieved on an engineering development system running two qubits andIonQ believes it is a harbinger for superior qubit fidelities on forthcoming barium-based production systems. -
IonQ announced the invention of a new, industry-first partial error correction technique for an important class of quantum gates. The technique, which reduces the errors for Clifford gates within circuits, offers the potential to supercharge the accuracy of near-term quantum computers, bringingIonQ much closer to commercial advantage. This Clifford error reduction technique, whichIonQ plans to offer in upcoming Tempo systems, allows for more accurate quantum algorithms and requires a ratio of only about three physical qubits per one error-reduced qubit. -
IonQ announced new, more aggressive technical roadmap targets on its webinar in June, including a goal of 99.999% logical two-qubit gate fidelity and 100 physical qubits in new systems by the end of 2025. -
IonQ announced an exciting new research project with theUnited States Naval Research Lab (NRL) using IonQ Aria to sample quantum states in molecular structures affecting corrosion. Corrosion is a more than$20 billion problem annually for theNavy , and through this project,IonQ quantum computers delivered results ahead of what is possible with classical computers.
Commercial Highlights
-
IonQ announced its selection by theApplied Research Laboratory for Intelligence and Security (ARLIS) through a competitive bidding process to design a first-of-its-kind, networked system for blind quantum computing. Blind quantum computing is a process where quantum computers remain ‘blind’ to what information is being processed through them, and is a key achievement target for the US national security apparatus. In fiscal 2023 and 2024,Congress funded this research for a total of$40 million . The initial phase of the contract is a$5.7 million award for the design of the quantum computers based onIonQ trapped ion processors.IonQ expects to complete this work by the end of this year. In the next phase of the project, ARLIS plans to have two systems built based on the initialIonQ design. -
IonQ announced the extension of its access contract with AWS to continue to offer its world-class quantum computers via Amazon Braket, the quantum computing service of AWS, to developers everywhere who want to leverage the power of quantum computing. AWS users can access IonQ’s generally available quantum computers including IonQ Aria through Amazon Braket, and request early access to IonQ Forte through Braket Direct. -
In July,
IonQ started final assembly of its first Forte Enterprise system at QuantumBasel inBasel, Switzerland , where installation and setup has begun. -
IonQ announced the start of construction on two more Forte Enterprise systems being manufactured in the Company’sSeattle facility.
Corporate Highlights
-
IonQ announced the promotion of Dr.Dean Kassmann to Senior Vice President of the newly formed Engineering and Technology division.Dr. Kassmann has over 30 years of leadership experience in software, hardware, and technology development, and has been instrumental in delivering IonQ’s technical milestone achievements.
2024 Financial Outlook
-
For the full year 2024,
IonQ is increasing its revenue expectations to between$38 million and$42 million , with between$9 million and$12 million for the third quarter. -
For the full year 2024,
IonQ is reiterating its previously stated bookings range of$75 million and$95 million .
Second Quarter 2024 Conference Call
Non-GAAP Financial Measures
To supplement IonQ’s condensed consolidated financial statements presented in accordance with GAAP,
About
IonQ Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast”, “offers” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the Company’s technology driving commercial advantage in the future; the Company’s future financial and operating performance, including our preliminary outlook and guidance; the appearance of new applications of IonQ’s products and services; the ability for third parties to implement IonQ’s offerings to solve their problems and increase their quantum computing capabilities; expansion of IonQ’s sales pipeline; IonQ’s quantum computing capabilities and plans; future deliveries of and access to IonQ’s quantum computers and services; future purchases of IonQ’s offerings by customers using congressionally-appropriated funds from the
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Three Months Ended
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Six Months Ended
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|
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2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Revenue |
|
$ |
11,381 |
|
|
$ |
5,515 |
|
|
$ |
18,963 |
|
|
$ |
9,800 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (excluding depreciation and amortization) |
|
|
5,623 |
|
|
|
1,901 |
|
|
|
9,037 |
|
|
|
2,937 |
|
Research and development |
|
|
31,204 |
|
|
|
19,869 |
|
|
|
63,572 |
|
|
|
36,102 |
|
Sales and marketing |
|
|
6,137 |
|
|
|
3,575 |
|
|
|
12,838 |
|
|
|
6,242 |
|
General and administrative |
|
|
13,053 |
|
|
|
10,930 |
|
|
|
27,073 |
|
|
|
21,511 |
|
Depreciation and amortization |
|
|
4,305 |
|
|
|
2,329 |
|
|
|
8,260 |
|
|
|
4,120 |
|
Total operating costs and expenses |
|
|
60,322 |
|
|
|
38,604 |
|
|
|
120,780 |
|
|
|
70,912 |
|
Loss from operations |
|
|
(48,941 |
) |
|
|
(33,089 |
) |
|
|
(101,817 |
) |
|
|
(61,112 |
) |
Gain (loss) on change in fair value of warrant liabilities |
|
|
6,639 |
|
|
|
(15,537 |
) |
|
|
15,266 |
|
|
|
(19,147 |
) |
Interest income, net |
|
|
4,801 |
|
|
|
4,877 |
|
|
|
9,600 |
|
|
|
9,108 |
|
Other income (expense), net |
|
|
(45 |
) |
|
|
31 |
|
|
|
(179 |
) |
|
|
95 |
|
Loss before income tax expense |
|
|
(37,546 |
) |
|
|
(43,718 |
) |
|
|
(77,130 |
) |
|
|
(71,056 |
) |
Income tax benefit (expense) |
|
|
(15 |
) |
|
|
— |
|
|
|
(23 |
) |
|
|
— |
|
Net loss |
|
$ |
(37,561 |
) |
|
$ |
(43,718 |
) |
|
$ |
(77,153 |
) |
|
$ |
(71,056 |
) |
Net loss per share attributable to common stockholders—basic and diluted |
|
$ |
(0.18 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.37 |
) |
|
$ |
(0.35 |
) |
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
|
|
211,637,479 |
|
|
|
201,431,494 |
|
|
|
209,898,459 |
|
|
|
200,775,817 |
|
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||||||||
|
|
|
|
|
|
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||
|
|
2024 |
|
|
2023 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
41,752 |
|
|
$ |
35,665 |
|
Short-term investments |
|
|
328,045 |
|
|
|
319,776 |
|
Accounts receivable |
|
|
7,893 |
|
|
|
11,467 |
|
Prepaid expenses and other current assets |
|
|
27,165 |
|
|
|
23,081 |
|
Total current assets |
|
|
404,855 |
|
|
|
389,989 |
|
Long-term investments |
|
|
32,171 |
|
|
|
100,489 |
|
Property and equipment, net |
|
|
47,883 |
|
|
|
37,515 |
|
Operating lease right-of-use assets |
|
|
9,938 |
|
|
|
4,613 |
|
Intangible assets, net |
|
|
16,969 |
|
|
|
15,077 |
|
|
|
|
719 |
|
|
|
742 |
|
Other noncurrent assets |
|
|
4,900 |
|
|
|
5,155 |
|
Total Assets |
|
$ |
517,435 |
|
|
$ |
553,580 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
6,324 |
|
|
$ |
5,599 |
|
Accrued expenses |
|
|
8,925 |
|
|
|
18,376 |
|
Current portion of operating lease liabilities |
|
|
1,479 |
|
|
|
710 |
|
Unearned revenue |
|
|
13,668 |
|
|
|
12,087 |
|
Current portion of stock option early exercise liabilities |
|
|
392 |
|
|
|
392 |
|
Total current liabilities |
|
|
30,788 |
|
|
|
37,164 |
|
Operating lease liabilities, net of current portion |
|
|
15,152 |
|
|
|
7,395 |
|
Unearned revenue, net of current portion |
|
|
121 |
|
|
|
447 |
|
Stock option early exercise liabilities, net of current portion |
|
|
252 |
|
|
|
448 |
|
Warrant liabilities |
|
|
7,738 |
|
|
|
23,004 |
|
Other noncurrent liabilities |
|
|
110 |
|
|
|
128 |
|
Total liabilities |
|
$ |
54,161 |
|
|
$ |
68,586 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Common stock |
|
$ |
21 |
|
|
$ |
20 |
|
Additional paid-in capital |
|
|
893,797 |
|
|
|
839,014 |
|
Accumulated deficit |
|
|
(429,226 |
) |
|
|
(352,073 |
) |
Accumulated other comprehensive loss |
|
|
(1,318 |
) |
|
|
(1,967 |
) |
Total stockholders’ equity |
|
|
463,274 |
|
|
|
484,994 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
517,435 |
|
|
$ |
553,580 |
|
|
||||||||
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Six Months Ended
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|||||
|
|
2024 |
|
|
2023 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(77,153 |
) |
|
$ |
(71,056 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
8,260 |
|
|
|
4,120 |
|
Non-cash research and development arrangements |
|
|
260 |
|
|
|
260 |
|
Stock-based compensation |
|
|
43,040 |
|
|
|
21,572 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
(15,266 |
) |
|
|
19,147 |
|
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
|
(4,787 |
) |
|
|
(4,593 |
) |
Other, net |
|
|
1,896 |
|
|
|
736 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
3,558 |
|
|
|
2,074 |
|
Prepaid expenses and other current assets |
|
|
(8,341 |
) |
|
|
(2,928 |
) |
Accounts payable |
|
|
(165 |
) |
|
|
479 |
|
Accrued expenses |
|
|
(2,116 |
) |
|
|
2,267 |
|
Unearned revenue |
|
|
1,262 |
|
|
|
(2,005 |
) |
Other assets and liabilities |
|
|
2,508 |
|
|
|
26 |
|
Net cash provided by (used in) operating activities |
|
$ |
(47,044 |
) |
|
$ |
(29,901 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(10,629 |
) |
|
|
(2,411 |
) |
Capitalized software development costs |
|
|
(2,129 |
) |
|
|
(1,950 |
) |
Intangible asset acquisition costs |
|
|
(892 |
) |
|
|
(628 |
) |
Purchases of available-for-sale securities |
|
|
(146,098 |
) |
|
|
(185,377 |
) |
Maturities of available-for-sale securities |
|
|
211,572 |
|
|
|
189,446 |
|
Net cash provided by (used in) investing activities |
|
$ |
51,824 |
|
|
$ |
(920 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from stock options exercised |
|
|
1,185 |
|
|
|
541 |
|
Other financing, net |
|
|
141 |
|
|
|
(1 |
) |
Net cash provided by (used in) financing activities |
|
$ |
1,326 |
|
|
$ |
540 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
4 |
|
|
|
— |
|
Net change in cash, cash equivalents and restricted cash |
|
|
6,110 |
|
|
|
(30,281 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
38,081 |
|
|
|
46,367 |
|
Cash, cash equivalents and restricted cash at the end of the period |
|
$ |
44,191 |
|
|
$ |
16,086 |
|
|
||||||||||||||||
|
|
Three Months Ended
|
|
|
Six Months Ended
|
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Net loss |
|
$ |
(37,561 |
) |
|
$ |
(43,718 |
) |
|
$ |
(77,153 |
) |
|
$ |
(71,056 |
) |
Interest income, net |
|
|
(4,801 |
) |
|
|
(4,877 |
) |
|
|
(9,600 |
) |
|
|
(9,108 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax (benefit) expense |
|
|
15 |
|
|
|
— |
|
|
|
23 |
|
|
|
— |
|
Depreciation and amortization |
|
|
4,305 |
|
|
|
2,329 |
|
|
|
8,260 |
|
|
|
4,120 |
|
Stock-based compensation |
|
|
20,979 |
|
|
|
11,304 |
|
|
|
43,040 |
|
|
|
21,572 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
(6,639 |
) |
|
|
15,537 |
|
|
|
(15,266 |
) |
|
|
19,147 |
|
Adjusted EBITDA |
|
$ |
(23,702 |
) |
|
$ |
(19,425 |
) |
|
$ |
(50,696 |
) |
|
$ |
(35,325 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807802557/en/
IonQ Media Contact:
press@ionq.com
IonQ Investor Contact:
investors@ionq.com
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