IonQ Announces Third Quarter 2024 Financial Results
-
Exceeds High End of
Guidance Range with Third Quarter Revenue of$12.4 Million , Representing 102% Year-Over-Year Growth -
Raises Full Year Revenue Guidance to Between
$38.5 Million and$42.5 Million -
Secures
$63.5 Million in Third Quarter Bookings, Including Largest 2024 U.S. Quantum Contract Award of$54.5 Million withUnited States Air Force Research Lab - Signs Definitive Agreement to Acquire Qubitekk, Furthering Leadership in Quantum Networking
- Enters New Era of Quantum Networking Commercialization, with Significant Government Backing
- Announces Plan to Partner with AstraZeneca to Accelerate Drug Discovery and Development
-
Announces Partnership with Ansys to Bring the Power of Quantum to the$10 Billion Computer-Aided Engineering Industry -
Signs
$9 Million Partnership withUniversity of Maryland to Drive Quantum Innovation
“We had yet another banner quarter at
“For the first time in IonQ’s history, we are announcing a plan to partner on the development of quantum applications for a production use case with AstraZeneca,” said Chapman. “We believe this monumental collaboration will be the first step to validate the years of pioneering research we have conducted in quantum chemistry.”
Financial Highlights
-
IonQ recognized revenue of$12.4 million for the third quarter, which is above the high end of the previously provided range and represents 102% growth compared to$6.1 million in the prior year period. -
IonQ achieved$63.5 million in new bookings for the third quarter. -
Cash, cash equivalents, and investments were
$382.8 million as ofSeptember 30, 2024 . -
Net loss was
$52.5 million and Adjusted EBITDA loss was$23.7 million for the third quarter.* Exclusions from Adjusted EBITDA include a non-cash loss of$3.9 million related to the change in the fair value of IonQ’s warrant liabilities.
*Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.
Q3 and Recent Commercial Highlights
-
IonQ announced a$54.5 million contract with theUnited States Air Force Research Lab (AFRL) to design, develop, and deliver technology and hardware that enables the scaling, networking, and deployability of quantum systems. The project will help advance quantum networking compatibility with existing telecommunications infrastructure, interoperability with different quantum systems and devices, and deployability of systems suitable for various environments. The contract is IonQ’s third with AFRL and will be delivered over four years. -
IonQ announced a$9 million agreement with theUniversity of Maryland (UMD) to expand their partnership to provide state-of-the-art quantum computing access at theNational Quantum Lab atMaryland (QLab). QLab provides UMD-affiliated students, faculty, researchers, staff, and partners with an unprecedented opportunity to work closely with IonQ’s scientists and engineers as they gain experience with industry-leading trapped ion quantum computers. -
IonQ signed a definitive agreement to acquire substantially all of the assets and team ofQubitekk, Inc. , aVista, CA -based quantum networking company. As part of the transaction, whichIonQ anticipates closing within the next six months,IonQ will fortify its leading position in the quantum networking industry by bringing on Qubitekk's team, customer base, and technology portfolio of 118 U.S. and international granted patents in the areas of quantum networking hardware and quantum network security and protection. -
IonQ announced the creation of a new quantum application development center in collaboration with AstraZeneca.IonQ will be leveraging the power of its quantum experts and AstraZeneca’s world-class scientists to develop applications in their innovation BioVentureHub inGothenburg, Sweden . -
IonQ announced a partnership with Ansys to accelerate simulation, expand high-fidelity design exploration, and reduce product development timelines, enabling faster market entry for more innovative products. The partnership is aimed at making simulation accessible to both quantum experts and non-experts by allowing seamless integration between Ansys software andIonQ computers.
Technical Highlights
-
IonQ demonstrated remote ion-ion entanglement, the second of four significant milestones required to develop at-scale photonic interconnects. TheIonQ team achieved remote entanglement by developing a system to collect photons from two trap wells and route them to a single detection hub. This critical “point-to-point” step established a quantum communication link, an essential element in scaling quantum systems. -
IonQ announced a partnership with NKT Photonics to develop next-generation laser systems to power future quantum computers. The partnership includes NKT Photonics developing and delivering three prototype optical subsystems toIonQ in 2025, designed to support the commercialization of IonQ’s data center-ready quantum computers – such as IonQ Tempo and future barium-based systems. -
IonQ announced a partnership with imec – a world-renowned R&D center in nanoelectronics and digital technologies – to develop photonic integrated circuits and chip-scale ion trap technology. With these ground-breaking technologies,IonQ aims to reduce overall hardware system size and cost, increase qubit count, and improve system performance and scale.
2024 Financial Outlook
-
For the full year 2024,
IonQ is raising its revenue expectations to between$38.5 million and$42.5 million , with between$7.1 million and$11.1 million for the fourth quarter. -
For the full year 2024,
IonQ is reiterating its previously stated bookings range of between$75 million and$95 million .
Third Quarter 2024 Conference Call
Non-GAAP Financial Measures
To supplement IonQ’s condensed consolidated financial statements presented in accordance with GAAP,
About
IonQ Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” “offers,” and other similar expressions are intended to identify forward-looking statements. These statements include those related to IonQ’s position in the quantum networking sector; its planned partnership with AstraZeneca to develop production applications; the expected progress of IonQ’s application development collaborations; the closing of its transaction to acquire substantially all of the assets of
|
||||||||||||||||
Condensed Consolidated Statements of Operations |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Revenue |
|
$ |
12,400 |
|
|
$ |
6,136 |
|
|
$ |
31,363 |
|
|
$ |
15,936 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue (excluding depreciation and amortization) |
|
|
6,515 |
|
|
|
2,008 |
|
|
|
15,552 |
|
|
|
4,945 |
|
Research and development |
|
|
33,178 |
|
|
|
24,599 |
|
|
|
96,750 |
|
|
|
60,701 |
|
Sales and marketing |
|
|
6,630 |
|
|
|
5,047 |
|
|
|
19,468 |
|
|
|
11,289 |
|
General and administrative |
|
|
14,322 |
|
|
|
13,927 |
|
|
|
41,395 |
|
|
|
35,438 |
|
Depreciation and amortization |
|
|
4,890 |
|
|
|
2,749 |
|
|
|
13,150 |
|
|
|
6,869 |
|
Total operating costs and expenses |
|
|
65,535 |
|
|
|
48,330 |
|
|
|
186,315 |
|
|
|
119,242 |
|
Loss from operations |
|
|
(53,135 |
) |
|
|
(42,194 |
) |
|
|
(154,952 |
) |
|
|
(103,306 |
) |
Gain (loss) on change in fair value of warrant liabilities |
|
|
(3,868 |
) |
|
|
(7,640 |
) |
|
|
11,398 |
|
|
|
(26,787 |
) |
Interest income, net |
|
|
4,508 |
|
|
|
5,007 |
|
|
|
14,108 |
|
|
|
14,115 |
|
Other income (expense), net |
|
|
15 |
|
|
|
55 |
|
|
|
(164 |
) |
|
|
150 |
|
Loss before income tax expense |
|
|
(52,480 |
) |
|
|
(44,772 |
) |
|
|
(129,610 |
) |
|
|
(115,828 |
) |
Income tax benefit (expense) |
|
|
(16 |
) |
|
|
(39 |
) |
|
|
(39 |
) |
|
|
(39 |
) |
Net loss |
|
$ |
(52,496 |
) |
|
$ |
(44,811 |
) |
|
$ |
(129,649 |
) |
|
$ |
(115,867 |
) |
Net loss per share attributable to common stockholders—basic and diluted |
|
$ |
(0.24 |
) |
|
$ |
(0.22 |
) |
|
$ |
(0.61 |
) |
|
$ |
(0.57 |
) |
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
|
|
214,305,053 |
|
|
|
203,390,383 |
|
|
|
211,378,045 |
|
|
|
201,656,916 |
|
|
||||||||
Condensed Consolidated Balance Sheets |
||||||||
(unaudited) |
||||||||
(in thousands) |
||||||||
|
|
|
|
|
||||
|
|
2024 |
|
2023 |
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
30,172 |
|
|
$ |
35,665 |
|
Short-term investments |
|
|
335,538 |
|
|
|
319,776 |
|
Accounts receivable |
|
|
4,137 |
|
|
|
11,467 |
|
Prepaid expenses and other current assets |
|
|
25,553 |
|
|
|
23,081 |
|
Total current assets |
|
|
395,400 |
|
|
|
389,989 |
|
Long-term investments |
|
|
17,131 |
|
|
|
100,489 |
|
Property and equipment, net |
|
|
49,454 |
|
|
|
37,515 |
|
Operating lease right-of-use assets |
|
|
10,029 |
|
|
|
4,613 |
|
Intangible assets, net |
|
|
17,487 |
|
|
|
15,077 |
|
|
|
|
727 |
|
|
|
742 |
|
Other noncurrent assets |
|
|
7,683 |
|
|
|
5,155 |
|
Total Assets |
|
$ |
497,911 |
|
|
$ |
553,580 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
4,854 |
|
|
$ |
5,599 |
|
Accrued expenses |
|
|
15,657 |
|
|
|
18,376 |
|
Current portion of operating lease liabilities |
|
|
3,089 |
|
|
|
710 |
|
Unearned revenue |
|
|
8,332 |
|
|
|
12,087 |
|
Current portion of stock option early exercise liabilities |
|
|
392 |
|
|
|
392 |
|
Total current liabilities |
|
|
32,324 |
|
|
|
37,164 |
|
Operating lease liabilities, net of current portion |
|
|
15,214 |
|
|
|
7,395 |
|
Unearned revenue, net of current portion |
|
|
60 |
|
|
|
447 |
|
Stock option early exercise liabilities, net of current portion |
|
|
154 |
|
|
|
448 |
|
Warrant liabilities |
|
|
11,607 |
|
|
|
23,004 |
|
Other noncurrent liabilities |
|
|
2,869 |
|
|
|
128 |
|
Total liabilities |
|
$ |
62,228 |
|
|
$ |
68,586 |
|
Stockholders’ Equity: |
|
|
|
|
||||
Common stock |
|
$ |
22 |
|
|
$ |
20 |
|
Additional paid-in capital |
|
|
917,048 |
|
|
|
839,014 |
|
Accumulated deficit |
|
|
(481,722 |
) |
|
|
(352,073 |
) |
Accumulated other comprehensive income (loss) |
|
|
335 |
|
|
|
(1,967 |
) |
Total stockholders’ equity |
|
|
435,683 |
|
|
|
484,994 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
497,911 |
|
|
$ |
553,580 |
|
|
||||||||
Condensed Consolidated Statements of Cash Flows |
||||||||
(unaudited) |
||||||||
(in thousands) |
||||||||
|
|
Nine Months Ended
|
||||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(129,649 |
) |
|
$ |
(115,867 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
13,150 |
|
|
|
6,869 |
|
Non-cash research and development arrangements |
|
|
390 |
|
|
|
390 |
|
Stock-based compensation |
|
|
67,607 |
|
|
|
38,549 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
(11,398 |
) |
|
|
26,787 |
|
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
|
(7,086 |
) |
|
|
(7,287 |
) |
Other, net |
|
|
3,901 |
|
|
|
1,036 |
|
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
7,341 |
|
|
|
946 |
|
Prepaid expenses and other current assets |
|
|
(9,899 |
) |
|
|
(7,545 |
) |
Accounts payable |
|
|
(463 |
) |
|
|
975 |
|
Accrued expenses |
|
|
612 |
|
|
|
8,066 |
|
Unearned revenue |
|
|
(4,232 |
) |
|
|
(4,944 |
) |
Other assets and liabilities |
|
|
3,471 |
|
|
|
(156 |
) |
Net cash provided by (used in) operating activities |
|
$ |
(66,255 |
) |
|
$ |
(52,181 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(14,399 |
) |
|
|
(6,544 |
) |
Capitalized software development costs |
|
|
(3,064 |
) |
|
|
(3,134 |
) |
Intangible asset acquisition costs |
|
|
(1,201 |
) |
|
|
(1,057 |
) |
Purchases of available-for-sale securities |
|
|
(241,162 |
) |
|
|
(230,350 |
) |
Maturities of available-for-sale securities |
|
|
318,192 |
|
|
|
285,665 |
|
Net cash provided by (used in) investing activities |
|
$ |
58,366 |
|
|
$ |
44,580 |
|
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from stock options exercised |
|
|
2,270 |
|
|
|
775 |
|
Other financing, net |
|
|
144 |
|
|
|
9 |
|
Net cash provided by (used in) financing activities |
|
$ |
2,414 |
|
|
$ |
784 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
4 |
|
|
|
3 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(5,471 |
) |
|
|
(6,814 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
38,081 |
|
|
|
46,367 |
|
Cash, cash equivalents and restricted cash at the end of the period |
|
$ |
32,610 |
|
|
$ |
39,553 |
|
|
||||||||||||||||
Reconciliation of Net Loss to Adjusted EBITDA |
||||||||||||||||
(unaudited) |
||||||||||||||||
(in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net loss |
|
$ |
(52,496 |
) |
|
$ |
(44,811 |
) |
|
$ |
(129,649 |
) |
|
$ |
(115,867 |
) |
Interest income, net |
|
|
(4,508 |
) |
|
|
(5,007 |
) |
|
|
(14,108 |
) |
|
|
(14,115 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax (benefit) expense |
|
|
16 |
|
|
|
39 |
|
|
|
39 |
|
|
|
39 |
|
Depreciation and amortization |
|
|
4,890 |
|
|
|
2,749 |
|
|
|
13,150 |
|
|
|
6,869 |
|
Stock-based compensation |
|
|
24,567 |
|
|
|
16,977 |
|
|
|
67,607 |
|
|
|
38,549 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
3,868 |
|
|
|
7,640 |
|
|
|
(11,398 |
) |
|
|
26,787 |
|
Adjusted EBITDA |
|
$ |
(23,663 |
) |
|
$ |
(22,413 |
) |
|
$ |
(74,359 |
) |
|
$ |
(57,738 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20241106385224/en/
IonQ Media Contact:
press@ionq.com
IonQ Investor Contact:
investors@ionq.com
Source: