Second Quarter Results of $11.4 Million in
Revenue, Exceeding High End of Guidance Range, Representing 106%
Year-Over-Year Growth
Secures $9 Million in Bookings, Including
System Design Win with ARLIS
Demonstrates Company Record Two-Qubit Native
Gate Fidelity of 99.9%, Paving the Way for Highly Accurate Quantum
Systems
Announces Discovery of Partial Error Correction
Technique, Bringing Quantum Era Within Reach
Raises Full Year Revenue Guidance Range to
Between $38 Million and $42 Million
IonQ (NYSE: IONQ), a leader in the quantum computing industry,
today announced financial results for the quarter ended June 30,
2024.
“This was a tremendous quarter for IonQ, with the company
posting revenue well above the high-end of our guidance range and
leading the industry in technical innovations that have brought the
quantum era within reach,” said Peter Chapman, President and CEO of
IonQ. “Specifically, the second quarter saw the launch of our
accelerated technical roadmap, our demonstration of 99.9% fidelity
using our next-generation barium qubits, and our invention of an
industry-first partial error correction scheme, a new technique
that could allow much larger applications to run on near-term
quantum systems.”
“This was also a major quarter for IonQ’s commercialization,
including our win of a system design project with ARLIS (the
Applied Research Laboratory for Intelligence and Security) via a
competitive bidding process and an extension of our system access
contract with AWS.”
Financial Highlights
- IonQ recognized revenue of $11.4 million for the second
quarter, which is above the high end of the previously provided
range of $7.6 to $9.2 million, and represents 106% growth compared
to $5.5 million in the prior year.
- IonQ achieved $9.0 million in new bookings for the second
quarter.
- Cash, cash equivalents and investments were $402.0 million as
of June 30, 2024.
- Net loss was $37.6 million and Adjusted EBITDA loss was $23.7
million for the second quarter.* Exclusions from Adjusted EBITDA
include a non-cash gain of $6.6 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.
Technical Highlights
- IonQ demonstrated a company record, two-qubit native gate
fidelity of 99.9% using its next-generation barium qubits, paving
the way for highly accurate quantum systems to tackle increasingly
complex problems for customers. This milestone was achieved on an
engineering development system running two qubits and IonQ believes
it is a harbinger for superior qubit fidelities on forthcoming
barium-based production systems.
- IonQ announced the invention of a new, industry-first partial
error correction technique for an important class of quantum gates.
The technique, which reduces the errors for Clifford gates within
circuits, offers the potential to supercharge the accuracy of
near-term quantum computers, bringing IonQ much closer to
commercial advantage. This Clifford error reduction technique,
which IonQ plans to offer in upcoming Tempo systems, allows for
more accurate quantum algorithms and requires a ratio of only about
three physical qubits per one error-reduced qubit.
- IonQ announced new, more aggressive technical roadmap targets
on its webinar in June, including a goal of 99.999% logical
two-qubit gate fidelity and 100 physical qubits in new systems by
the end of 2025.
- IonQ announced an exciting new research project with the United
States Naval Research Lab (NRL) using IonQ Aria to sample quantum
states in molecular structures affecting corrosion. Corrosion is a
more than $20 billion problem annually for the Navy, and through
this project, IonQ quantum computers delivered results ahead of
what is possible with classical computers.
Commercial Highlights
- IonQ announced its selection by the Applied Research Laboratory
for Intelligence and Security (ARLIS) through a competitive bidding
process to design a first-of-its-kind, networked system for blind
quantum computing. Blind quantum computing is a process where
quantum computers remain ‘blind’ to what information is being
processed through them, and is a key achievement target for the US
national security apparatus. In fiscal 2023 and 2024, Congress
funded this research for a total of $40 million. The initial phase
of the contract is a $5.7 million award for the design of the
quantum computers based on IonQ trapped ion processors. IonQ
expects to complete this work by the end of this year. In the next
phase of the project, ARLIS plans to have two systems built based
on the initial IonQ design.
- IonQ announced the extension of its access contract with AWS to
continue to offer its world-class quantum computers via Amazon
Braket, the quantum computing service of AWS, to developers
everywhere who want to leverage the power of quantum computing. AWS
users can access IonQ’s generally available quantum computers
including IonQ Aria through Amazon Braket, and request early access
to IonQ Forte through Braket Direct.
- In July, IonQ started final assembly of its first Forte
Enterprise system at QuantumBasel in Basel, Switzerland, where
installation and setup has begun.
- IonQ announced the start of construction on two more Forte
Enterprise systems being manufactured in the Company’s Seattle
facility.
Corporate Highlights
- IonQ announced the promotion of Dr. Dean Kassmann to Senior
Vice President of the newly formed Engineering and Technology
division. Dr. Kassmann has over 30 years of leadership experience
in software, hardware, and technology development, and has been
instrumental in delivering IonQ’s technical milestone
achievements.
2024 Financial Outlook
- For the full year 2024, IonQ is increasing its revenue
expectations to between $38 million and $42 million, with between
$9 million and $12 million for the third quarter.
- For the full year 2024, IonQ is reiterating its previously
stated bookings range of $75 million and $95 million.
Second Quarter 2024 Conference Call
IonQ will host a conference call today at 4:30 p.m. Eastern time
to review the Company’s financial results for the second quarter
June 30, 2024 and to provide a business update. The call will be
accessible by telephone at 844-512-2921 (domestic) or
+1-412-317-6671 (international). The call will also be available
live via webcast on the Company’s website here, or directly here. A
telephone replay of the conference call will be available
approximately three hours after its conclusion at 844-512-2921
(domestic) or 412-317-6671 (international) with access code
13746744 and will be available until 11:59 p.m. Eastern time,
August 21, 2024. An archive of the webcast will also be available
here shortly after the call and will remain available for one
year.
Non-GAAP Financial Measures
To supplement IonQ’s condensed consolidated financial statements
presented in accordance with GAAP, IonQ uses non-GAAP measures of
certain components of financial performance. Adjusted EBITDA is a
financial measure that is not required by or presented in
accordance with GAAP. Management believes that this measure
provides investors an additional meaningful method to evaluate
certain aspects of the Company’s results period over period.
Adjusted EBITDA is defined as net loss before interest income,
interest expense, income tax expense, depreciation and amortization
expense, stock-based compensation, change in fair value of assumed
warrant liabilities, and other non-recurring non-operating income
and expenses. IonQ uses Adjusted EBITDA to measure the operating
performance of its business, excluding specifically identified
items that it does not believe directly reflect its core operations
and may not be indicative of recurring operations. The presentation
of non-GAAP financial measures is not meant to be considered in
isolation or as a substitute for the financial results prepared in
accordance with GAAP, and IonQ’s non-GAAP measures may be different
from non-GAAP measures used by other companies. IonQ shows a
reconciliation of GAAP to non-GAAP financial measures at the end of
this release.
About IonQ
IonQ, Inc. is a leader in quantum computing that delivers
high-performance systems capable of solving the world’s largest and
most complex commercial and research use cases. IonQ’s current
generation quantum computer, IonQ Forte, is the latest in a line of
cutting-edge systems, boasting 36 algorithmic qubits. The Company’s
innovative technology and rapid growth were recognized in Fast
Company’s 2023 Next Big Things in Tech List and Deloitte’s 2023
Technology Fast 500™ List, respectively. Available through all
major cloud providers, IonQ is making quantum computing more
accessible and impactful than ever before. Learn more at
IonQ.com.
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 the Company’s technology driving commercial advantage in the
future; the Company’s future financial and operating performance,
including our preliminary outlook and guidance; the appearance of
new applications of IonQ’s products and services; the ability for
third parties to implement IonQ’s offerings to solve their problems
and increase their quantum computing capabilities; expansion of
IonQ’s sales pipeline; IonQ’s quantum computing capabilities and
plans; future deliveries of and access to IonQ’s quantum computers
and services; future purchases of IonQ’s offerings by customers
using congressionally-appropriated funds from the U.S. government;
IonQ’s performance of existing contracts in the future, including
anticipated timing of completion of research, development and
manufacturing by IonQ; IonQ receiving additional revenues under
planned subsequent phases of customer contracts; and the
scalability and reliability of IonQ’s quantum computing offerings.
Forward-looking statements are predictions, projections and other
statements about future events that are based on current
expectations and assumptions and, as a result, are subject to risks
and uncertainties. Many factors could cause actual future events to
differ materially from the forward-looking statements in this press
release, including but not limited to: changes in the competitive
industries in which IonQ operates, including development of
competing technologies; our ability to sell effectively to
government entities and large enterprises; changes in laws and
regulations affecting IonQ’s business; IonQ’s ability to implement
its business plans, forecasts and other expectations, to identify
and realize partnerships and opportunities, and to engage new and
existing customers; IonQ’s ability to deliver services and products
within currently anticipated timelines; IonQ’s customers deciding
or declining to extend contracts into new phases; changes in U.S.
government spending or policy that may affect IonQ’s customers;
changes to U.S. government goals and metrics of success with regard
to implementation of quantum computing; and risks associated with
U.S. government sales, including availability of funding and
provisions that allow the government to unilaterally terminate or
modify contracts for convenience. You should carefully consider the
foregoing factors and the other risks and uncertainties disclosed
in the Company’s filings, including but not limited to those
described in the “Risk Factors'' section of IonQ’s most recent
Quarterly Report on Form 10-Q and other documents filed by IonQ
from time to time with the Securities and Exchange Commission.
These filings identify and address other important risks and
uncertainties that could cause actual events and results to differ
materially from those contained in the forward-looking statements.
Forward-looking statements speak only as of the date they are made.
Readers are cautioned not to put undue reliance on forward-looking
statements, and IonQ assumes no obligation and does not intend to
update or revise these forward-looking statements, whether as a
result of new information, future events, or otherwise. IonQ does
not give any assurance that it will achieve its expectations.
IonQ, Inc. Condensed
Consolidated Statements of Operations (unaudited) (in
thousands, except share and per share data)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Revenue
$
11,381
$
5,515
$
18,963
$
9,800
Costs and expenses:
Cost of revenue (excluding depreciation
and amortization)
5,623
1,901
9,037
2,937
Research and development
31,204
19,869
63,572
36,102
Sales and marketing
6,137
3,575
12,838
6,242
General and administrative
13,053
10,930
27,073
21,511
Depreciation and amortization
4,305
2,329
8,260
4,120
Total operating costs and expenses
60,322
38,604
120,780
70,912
Loss from operations
(48,941
)
(33,089
)
(101,817
)
(61,112
)
Gain (loss) on change in fair value of
warrant liabilities
6,639
(15,537
)
15,266
(19,147
)
Interest income, net
4,801
4,877
9,600
9,108
Other income (expense), net
(45
)
31
(179
)
95
Loss before income tax expense
(37,546
)
(43,718
)
(77,130
)
(71,056
)
Income tax benefit (expense)
(15
)
—
(23
)
—
Net loss
$
(37,561
)
$
(43,718
)
$
(77,153
)
$
(71,056
)
Net loss per share attributable to
common stockholders—basic and diluted
$
(0.18
)
$
(0.22
)
$
(0.37
)
$
(0.35
)
Weighted average shares used in computing
net loss per share attributable to common stockholders—basic and
diluted
211,637,479
201,431,494
209,898,459
200,775,817
IonQ, Inc. Condensed
Consolidated Balance Sheets (unaudited) (in thousands)
June 30,
December 31,
2024
2023
Assets
Current assets:
Cash and cash equivalents
$
41,752
$
35,665
Short-term investments
328,045
319,776
Accounts receivable
7,893
11,467
Prepaid expenses and other current
assets
27,165
23,081
Total current assets
404,855
389,989
Long-term investments
32,171
100,489
Property and equipment, net
47,883
37,515
Operating lease right-of-use assets
9,938
4,613
Intangible assets, net
16,969
15,077
Goodwill
719
742
Other noncurrent assets
4,900
5,155
Total Assets
$
517,435
$
553,580
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
6,324
$
5,599
Accrued expenses
8,925
18,376
Current portion of operating lease
liabilities
1,479
710
Unearned revenue
13,668
12,087
Current portion of stock option early
exercise liabilities
392
392
Total current liabilities
30,788
37,164
Operating lease liabilities, net of
current portion
15,152
7,395
Unearned revenue, net of current
portion
121
447
Stock option early exercise liabilities,
net of current portion
252
448
Warrant liabilities
7,738
23,004
Other noncurrent liabilities
110
128
Total liabilities
$
54,161
$
68,586
Stockholders’ Equity:
Common stock
$
21
$
20
Additional paid-in capital
893,797
839,014
Accumulated deficit
(429,226
)
(352,073
)
Accumulated other comprehensive loss
(1,318
)
(1,967
)
Total stockholders’ equity
463,274
484,994
Total Liabilities and Stockholders’
Equity
$
517,435
$
553,580
IonQ, Inc. Condensed
Consolidated Statements of Cash Flows (unaudited) (in
thousands)
Six Months Ended June
30,
2024
2023
Cash flows from operating
activities:
Net loss
$
(77,153
)
$
(71,056
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
8,260
4,120
Non-cash research and development
arrangements
260
260
Stock-based compensation
43,040
21,572
(Gain) loss on change in fair value of
warrant liabilities
(15,266
)
19,147
Amortization of premiums and accretion of
discounts on available-for-sale securities
(4,787
)
(4,593
)
Other, net
1,896
736
Changes in operating assets and
liabilities:
Accounts receivable
3,558
2,074
Prepaid expenses and other current
assets
(8,341
)
(2,928
)
Accounts payable
(165
)
479
Accrued expenses
(2,116
)
2,267
Unearned revenue
1,262
(2,005
)
Other assets and liabilities
2,508
26
Net cash provided by (used in) operating
activities
$
(47,044
)
$
(29,901
)
Cash flows from investing
activities:
Purchases of property and equipment
(10,629
)
(2,411
)
Capitalized software development costs
(2,129
)
(1,950
)
Intangible asset acquisition costs
(892
)
(628
)
Purchases of available-for-sale
securities
(146,098
)
(185,377
)
Maturities of available-for-sale
securities
211,572
189,446
Net cash provided by (used in) investing
activities
$
51,824
$
(920
)
Cash flows from financing
activities:
Proceeds from stock options exercised
1,185
541
Other financing, net
141
(1
)
Net cash provided by (used in) financing
activities
$
1,326
$
540
Effect of foreign exchange rate changes on
cash, cash equivalents and restricted cash
4
—
Net change in cash, cash equivalents and
restricted cash
6,110
(30,281
)
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
$
44,191
$
16,086
IonQ, Inc.
Reconciliation of Net Loss to Adjusted EBITDA (unaudited)
(in thousands)
Three Months Ended June
30,
Six Months Ended June
30,
2024
2023
2024
2023
Net loss
$
(37,561
)
$
(43,718
)
$
(77,153
)
$
(71,056
)
Interest income, net
(4,801
)
(4,877
)
(9,600
)
(9,108
)
Interest expense
—
—
—
—
Income tax (benefit) expense
15
—
23
—
Depreciation and amortization
4,305
2,329
8,260
4,120
Stock-based compensation
20,979
11,304
43,040
21,572
(Gain) loss on change in fair value of
warrant liabilities
(6,639
)
15,537
(15,266
)
19,147
Adjusted EBITDA
$
(23,702
)
$
(19,425
)
$
(50,696
)
$
(35,325
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240807802557/en/
IonQ Media Contact: Tyler Ogoshi press@ionq.com
IonQ Investor Contact: investors@ionq.com
IonQ (NYSE:IONQ)
Historical Stock Chart
From Aug 2024 to Sep 2024
IonQ (NYSE:IONQ)
Historical Stock Chart
From Sep 2023 to Sep 2024