Rigetti Computing, Inc. Q2 FY2024 earnings call

• Technology Roadmap: Rigetti is on track to deploy the 84-qubit Ankaa-3 system with a goal of 99+% median 2-qubit gate fidelity by end-2024. The 24-qubit system has 99% 2-qubit fidelity and 60-80 nanosecond gate speeds. Introduced multi-chip twin-level couplers and modular chip architecture. Released research on resource estimation framework and qubit-efficient combinatorial solver.
• Financials: Revenues for Q2 2024 were $3.1M, gross margin 64%, net loss $12.4M. Raised $27.8M via ATM program, with $15.8M in Q2 2024. Cash should cover operating needs until mid-2026 based on current plan.

Revenues in the second quarter of 2024 were $3.1 million, compared to $3.3 million in the second quarter of 2023. Gross margins in the second quarter of 2024 came in at 64%, compared to 82% in the second quarter of 2023. Net loss for the second quarter of 2024 was $12.4 million, or $0.07 per share, compared to a net loss of $17 million, or $0.13 per share, for the second quarter of 2023. Cash, cash equivalents, and available for sale investments totaled $100.5 million as of June 30, 2024. During the three months ended June 30, 2024, $15.8 million was raised under the ATM program.

Expect revenues to ramp up in the next 1-2 years due to increasing government funding for quantum computing. Novera sales are expected to have good margins, which should help future margins.

• Lumpy revenue and gross margin due to small revenue size and different project types. - Dependence on government funding, which can be unpredictable and lumpy.

Q: Craig Ellis asked about progress with partners and engagements.

A: Subodh Kulkarni discussed that partners, including U.S. and international entities, are pleased with progress in fidelity and gate speed, and government funding for quantum computing is increasing.

Q: Quinn Bolton asked about 84-qubit QPU fab and confidence.

A: Subodh Kulkarni explained the same chip is used for 24 and 84-qubit, multiple 84-qubit chips already fabricated and being characterized.

Q: Quinn Bolton asked about revenue pipeline.

A: Subodh Kulkarni said revenues are expected to ramp up due to increasing government funding for quantum computing.

Q: David Williams asked about 24-qubit system setup and government funding specifics.

A: Subodh Kulkarni discussed setup timeline for 24-qubit system and government funding being a large part of near-term business.

Q: Unidentified Analyst asked about competitive environment and commercial revenue.

A: Subodh Kulkarni talked about superconducting modality advantage and need for narrow quantum advantage for commercial adoption.

Q: Unidentified Analyst asked about aftermarket stock sale program.

A: Jeff Bertelsen said the program would be used opportunistically based on share price.

Q: Brian Kinstlinger asked about pipeline and talent retention.

A: Subodh Kulkarni said pipeline has increased due to more interest from national labs and low attrition due to excitement about roadmap