D-Wave Quantum Inc. Q4 FY2024 earnings call

• Technical achievements: Demonstrated quantum supremacy on a real-world problem using a 1,200 qubit Advantage 2 prototype; development of Advantage 2 is progressing with calibration of a third 4,400 qubit processor, offering performance gains like doubled qubit coherence time, 40% energy scale increase, and increased connectivity.
• Commercial momentum: Sold first Advantage system to Jülich supercomputing center, with record Q4 bookings of $18.3 million; working with various customers on quantum and hybrid applications in areas like drug discovery, insurance optimization, and autonomous agriculture; increased interest at major events like SXSW and upcoming Qubit User Conference.
• Go-to-market strategies: Announced Quantum Uplift Program and Leap Quantum LaunchPad; continued to build management bench with appointment of Sharon Holt to board.
• Financials: Record bookings driven by Jülich deal; raised significant cash through ATM programs, ending 2024 with over $300 million in cash.

Revenue for fiscal 2024 was $8.8 million, essentially flat with fiscal 2023 revenue of $8.8 million. Bookings for fiscal 2024 were a record $23.9 million, an increase of 128% from fiscal 2023's $10.5 million. Fourth quarter revenue totaled $2.3 million, a decrease of ~$600,000 from Q4 2023, while bookings for Q4 2024 were a record $18.3 million, a 500% increase from Q4 2023. GAAP gross profit for fiscal 2024 was $5.6 million, up 20% from 2023, with non-GAAP gross profit at $6.4 million. Fourth quarter GAAP gross profit was $1.5 million, down 25% from Q4 2023, with non-GAAP gross profit at $1.7 million.

• Expect fiscal 2025 Q1 revenue to exceed $10 million, with a significant portion from the sale of an Advantage annealing quantum computer.
• Believes D-Wave has the potential to be the first independent publicly held quantum computing company to achieve sustained profitability with less cumulative funding than competitors.

Q: How has the paper on quantum supremacy changed opinions in the academic community and commercial entities?

A: The result has been significant, with academic institutions partnering on the work, though some resistance remains. Commercially, it's opening up opportunities with research institutions and government labs, melting away rhetoric around annealing vs gate.

Q: Can you comment on the trend of QCaaS bookings excluding system sales?

A: QCaaS bookings in Q4 were incrementally greater than in Q3.

Q: What does the integration of D-Wave's system with Jülich's Jupiter supercomputer mean?

A: It's the first tight integration of D-Wave's quantum system with a supercomputer of that scale, with potential for joint research in AI and workflows, exploring how quantum integration might change AI compute needs.

Q: How long will it take to recognize revenue from the Jülich system sale?

A: Revenue recognition includes installation/acceptance of the system in Q1, upgrade option, ongoing support/maintenance, and access to Leap/QCaaS over time.