Rigetti Computing, Inc. Q1 FY2024 earnings call

Technology Roadmap - Achieved 99.3% median 2-qubit gate fidelity on 9-qubit Ankaa class quantum system. Confident of reaching 99-plus percent median two-qubit gate fidelity on 84-qubit Ankaa 3 by end of 2024, then plan to develop 336-qubit Lyra system. ### Business Update - Delivered Novera QPU to Horizon Quantum Computing in April 2024 for their Singapore hardware testbed, first QPU in Singapore. Launched Novera QPU Partnership Program to support on-premises quantum ecosystems. First Novera QPU sales to U.S. government labs. ### Financials - Revenues up 39% YoY; OpEx decreased due to restructuring, workforce reduction, and R&D IT systems rationalization; cash position at $102.8 million as of March 31, 2024.

In the first quarter of 2024, Rigetti's revenues were $3.1 million, which is a 39% increase compared to $2.2 million in the first quarter of 2023. Gross margins in Q1 2024 were 49% versus 77% in Q1 2023. Operating loss for Q1 2024 was $16.6 million compared to $22 million in the same period of 2023. Net loss was $20.8 million, or $0.14 per share, compared to $23.4 million, or $0.19 per share in Q1 2023. Cash, cash equivalents, and available for sale investments totaled $102.8 million as of March 31, 2024.

- Anticipate reaching 99-plus percent median two-qubit gate fidelity on 84-qubit Ankaa 3 system by end of 2024. ### - Existing cash, cash equivalents, and marketable securities should be sufficient to meet anticipated operating cash needs until midway through the fourth quarter of 2025 based on current business plan and assumptions.

- Forward-looking statements are subject to risks and uncertainties discussed in Form 10-K for 2023, Form 10-Q for Q1 2024, and other SEC filings that could cause actual results to differ materially from forward-looking statements.

Q: Could you elaborate further on the sale of Novera to Horizon Quantum Computing?

A: Horizon Quantum Computing is in Singapore, funded by the government, and this was their first quantum computing purchase for a hardware test bed with superconducting. They expect to install it by early 2025.

Q: Can you talk about the pipeline in the U.S. and UK regarding QPU sales?

A: Talking to about 10 to 15 leads worldwide, primarily for research purposes, narrowing down interested and serious customers.

Q: Has anything changed in the technology roadmap?

A: Achieved 99.3% 2-qubit gate fidelity on 9-qubit device, confident of 84-qubit device reaching over 99% fidelity by end of 2024, executing well on roadmap.

Q: Regarding revenue recognition for QPU sales to research labs?

A: Rev-rec for Novera sale to Horizon is anticipated in Q2; generally, revenue for QPUs is recognized when shipped, depending on contract terms.