Quantum Computing Inc. Q4 FY2024 earnings call

• Partnership with NASA: Secured fifth task order in October 2024 for quantum modeling and solar noise removal, and an additional contract in December for phase unwrapping using Dirac-3 machine.
• Foundry progress: Final stage of commissioning in Tempe, Arizona, with construction substantially complete, establishing PDKs and set to begin production in early Q2 2025. Secured multiple preorders and five purchase orders for TFLN photonic chips.
• Market outreach: Actively engaged with commercial and government partners, attended up to 10 industry trade shows and conferences, including presenting at Quantum Frontiers Conference at Los Alamos National Laboratory.
• Balance sheet: Strengthened with $92.1 million raised in fourth quarter through common stock offerings, and subsequent additional private placement of $100 million.

Fourth quarter 2024 revenues totaled approximately $62,000 compared to $75,000 in the prior-year quarter. Gross margin improved significantly to 55%, up from 13% in the fourth quarter of 2023. Total assets stood at $153.6 million as of December 31, 2024, up from $74.4 million at year-end 2023. Cash and cash equivalents notably increased by $76.9 million to $78.9 million at year-end, bolstered by total net proceeds of $92.1 million raised in the fourth quarter through offerings of common stock. The foundry is in the final stage of commissioning and on schedule to begin production in early Q2 2025, with preorders to be fulfilled then.

• Foundry on track to be operational by end of March 2025, with deliveries of preorders in Q2 2025.
• Continued momentum with go-to-market strategy for quantum machines to drive revenue growth and sustainable cash flow.
• Additional private placement of $100 million in common stock to further strengthen balance sheet.

Q: Opportunities in international, focus on domestic or worldwide?

A: Currently big focus in US with commercial entities (global companies), some orders for photonic chips offshore in Europe and Asia. Focused on closing domestic orders for quantum machines, with mix of onshore/offshore for chips.

Q: Foundry business, will they operate at 100% efficiency right away or ramp up?

A: There's a startup time as they need to get PDKs (process design kits) going. Will deliver proof of concept chips to customers in Q2, with a ramp as expected for a new foundry, commissioning equipment and lining up PDKs, with partnerships to help.