Rigetti Computing, Inc. Q3 FY2024 earnings call

• Rigetti plans to introduce a new modular system architecture, with a 36-qubit system expected by mid-2025, over 100-qubit by end-2025, and a 336-qubit LiRAR system thereafter. - On track for 84-qubit Ankaa 3 system with 99%+ median 2-qubit gate fidelity by end-2024. - Superconducting-qubits offer advantages like faster gate operations (60-80 nanoseconds) and use of established semiconductor techniques. - Developed ABAA technique for high-performance QPUs and collaborated with Riverlane on quantum error correction, publishing a paper on real-time low latency error correction. - 9-qubit Nuvera QPU used for research, Innovaira QPU co-located at IQCC with NVIDIA and Quantum Machines, and UK's NQCC has Rigetti's 24-qubit Ankaa class system.

In the third quarter of 2024, Rigetti's revenues were $2.4 million, down from $3.1 million in the third quarter of 2023. Gross margins were 51% in Q3 2024 compared to 73% in Q3 2023. Net loss for Q3 2024 was $14.8 million or $0.08 per share, better than the net loss of $22.2 million or $0.17 per share in Q3 2023. Cash, cash equivalents, and available-for-sale investments totaled $92.6 million as of September 30, 2024.

• Expect to release 36-qubit system by mid-2025 with 99.5% median 2-qubit gate fidelity. - End-2025 release of over 100-qubit system with 99.5% median 2-qubit gate fidelity. - Existing cash balances should cover operating needs until mid-2026 based on current business plan.

Forward-looking statements are subject to risks in SEC filings, including macroeconomic conditions and execution risks in technology development as outlined in Form 10-K and 10-Q documents.

Q: Any changes in roadmap strategy?

A: Subodh Kulkari mentioned increased confidence in roadmap, tiling 9-qubit chips with no performance deterioration, leveraging CMOS chiplet technology.

Q: When does quantum error correction start playing a bigger role?

A: Already starting with Riverlane collaboration, mid-99s fidelity allows practical error correction, and will continue pushing fidelity while integrating error correction.

Q: Impact of government funding reauthorization?

A: NQI Reauthorization Act could increase quantum funding by 4-5x, benefiting Rigetti with more government R&D procurements.

Q: International engagements progress?

A: Increasing opportunities with 15-20 countries, hardware improvements and practical applications increasing appetite for government and commercial research customers.