IonQ, Inc. Q1 FY2025 earnings call

• Peter Chapman highlighted the seamless transition to Niccolo de Masi as CEO, international activities like MOUs in Japan and Korea for quantum, and showcases at NVIDIA's GTC with partners like AstraZeneca and Ansys.
• Niccolo de Masi discussed acquisitions of Lightsynq and Capella, partnerships with EPB for a quantum hub, participation in DARPA's quantum benchmarking initiative, and solidifying global dominance in quantum networking via ID Quantique acquisition.
• Jordan Shapiro talked about IonQ's strength in quantum networking, its role in the quantum internet, and involvement in previous acquisitions.
• Thomas Kramer provided detailed financials, including revenue, costs, and balance sheet details, and reaffirmed guidance.

In the first quarter of 2025, IonQ recognized revenue of $7.6 million, which beat the midpoint of the previously provided guidance. Total operating costs and expenses for the quarter were $83.2 million, up 38% from the prior year period. Research and development costs were $40 million, up 23% from the prior year. Sales and marketing costs were $8.6 million, up 28% from the prior year. General and administrative costs were $23.8 million, up 70% from the prior year. The net loss for the quarter was $32.3 million, compared to a $40 million net loss in the prior year. Adjusted EBITDA loss was $35.8 million for the quarter compared to a $27 million loss in the prior year. Cash, cash equivalents, and investments as of March 31st were $697.1 million. IonQ reaffirmed its revenue guidance for the full year 2025 and expects Q2 revenue to be between $16 million and $18 million. The company also anticipates an increase in the adjusted EBITDA loss previously projected by approximately 35% due to ongoing investments.

• Reaffirmed revenue guidance for full year 2025.
• Expect Q2 revenue to be between $16 million and $18 million.
• Anticipate an increase in adjusted EBITDA loss previously projected by approximately 35% due to ongoing investments and bringing acquired entities up to U.S. public company reporting standards.

Q: Could you give an update on revenue expected from recent acquisitions and cost structure impact?

A: Thomas Kramer stated that acquisitions will strengthen revenue growth potential and are accretive, with good gross margins, though interim investments will need funding but are modest compared to the acquired companies.

Q: Can you quantify the number of quantum networks IonQ currently has and who they span?

A: Jordan Shapiro responded that IonQ today has four quantum networks serving Defense, EPB in the enterprise and energy sector, SK Telecom in South Korea, and Singtel in Singapore.

Q: How do Lightsynq's capabilities integrate with IonQ's PICs and what about the space-based network opportunity?

A: Dean Kasman explained Lightsynq's diamond silicon vacancies have long coherence times and integrate with multiple modalities, with frequency conversion technology mature. Jordan Shapiro mentioned the quantum networking opportunity is as large as quantum compute, with Capella providing revenue-generating applications and access to space-based hardware validation.

Q: Does the quantum network opportunity start with labs, academics, and critical infrastructure before broader adoption?

A: Peter Chapman disagreed, stating leading companies are starting to invest in building quantum networks with QKD for security, and IonQ's quantum networks have enterprise deployments like EPB's.