Rigetti Computing, Inc. Q4 FY2024 earnings call

• Strategic collaboration with Quanta Computer: Over $100 million each to be invested over 5 years, with Quanta buying $35 million in Rigetti shares. - Sales: Sold Novera QPU to Montana State University and the UK government. - Technology: Launched 84-qubit Ankaa-3 system with improved performance, achieving high gate fidelities. AI-powered tools automated QPU calibration. - Modular approach: Enables integration of partner technologies to advance quantum computing capabilities.

In the fourth quarter of 2024, revenues were $2.3 million, compared to $3.4 million in the fourth quarter of 2023. Gross margins in Q4 2024 were 44% vs. 75% in Q4 2023. Cash, cash equivalents, and available for sale investments totaled $217.2 million as of December 31, 2024. During Q4 2024, the company received net proceeds of $153.3 million from stock sales and prepaid the remaining loan amount with Trinity Capital.

• Plan to scale to 100+ qubits by end of 2024 with a 2x reduction in error rates. - Existing cash balances should suffice for operating needs for at least the next three years. - Anticipate increased government funding from DOE and DoD initiatives, expecting significant investment in 2025.

• Uncertainties in government funding approval and timing. - Challenges in scaling quantum computing technology, including packaging and error correction. - Competition and rapid technological changes in the quantum computing space could impact market position.

Q: Craig Ellis asked about details of the Quanta partnership and government funding.

A: Subodh Kulkarni discussed Quanta's role as a large Taiwanese company and the $2.5 billion DOE bill progress.

Q: Shadi Mitwalli inquired about the QPU sale to MSU and DOE bill details.

A: Subodh Kulkarni explained the QPU sale for research purposes and clarified the DOE bill is the same initiative.

Q: Steven Silverman asked about scaling via tiling and error rates.

A: Subodh Kulkarni outlined the tiling roadmap and error rate targets for 2024.

Q: Richard Shannon asked about tiling vs competitors and joint research.

A: Subodh Kulkarni compared tiling approaches and discussed joint work on signal cabling.

Q: Brian Kinstlinger asked about tiling by competitors and IP differentiation.

A: Subodh Kulkarni discussed tiling by competitors and IP differentiation in architecture and chiplets.

Q: David Williams asked about IP differentiation and customer demand.

A: Subodh Kulkarni talked about IP differentiation and customer demand trends in quantum computing.

Q: Craig Ellis asked about QPU sales RevRec.

A: Jeffrey Bertelsen stated the two Novera QPU sales fully RevReced in Q4 and the UK system sale timeline.