Revenue of $1.8 million Total Bookings of $2.5
million Cash Balance in excess of $50 million
D-Wave Quantum Inc., (NYSE: QBTS) (“D-Wave” or the “Company”) a
leader in commercial quantum computing systems, software, and
services, today announced financial results for its fiscal second
quarter ended June 30, 2023.
“Our second quarter results reflect, we believe, growing
enterprise commitment to and investment in practical quantum
computing solutions that can address their complex operational
challenges today. Our triple-digit increases in bookings and
average deal size on a year-over-year basis are evidence, in our
opinion, of forward-looking organizations prioritizing quantum as
part of their modern tech infrastructure,” said Dr. Alan Baratz,
CEO of D-Wave. “Companies and governments alike appear to be
recognizing the value of today’s market-ready annealing quantum
computing systems to drive business and national competitiveness.
We’re helping harness the power of this transformative technology
through industry-leading quantum hardware and software solutions
and a consultative professional services approach that fuels
application development and, increasingly, is preparing these
applications for in-production scenarios that support customers’
daily operations.”
Recent Commercial / Business Highlights
- During the second quarter, signed a number of new and expanded
existing customer engagements with Forbes Global 2000 companies
including Interpublic Group and VINCI Energies as well as industry
leaders such as Unisys Corporation.
- Worked with customers on a variety of new quantum and
quantum-hybrid applications spanning media and advertising
optimization, industrial construction, financial market performance
predictions, transportation logistics and much more.
- Grew second quarter bookings (as defined below) by 146% on a
year-over-year basis, representing the fifth consecutive quarter of
year-over-year growth in bookings; bookings totaled $5.4 million in
the first half of 2023, an increase of $3.7 million, or 209% over
the first half of 2022.
- Increased average deal size (as defined below) per booking in
the second quarter by 136% on a year-over-year basis and by 252%
when comparing the first half of 2023 to the first half of
2022.
- Improved the Company’s liquidity position with a current cash
balance in excess of $50 million.
Recent Technical Highlights
- Continued development of the next-generation Advantage2 quantum
computing system, which recently successfully yielded 1,200-qubit
prototype processors in the new higher coherence fabrication stack.
Advantage2 is expected to feature 7,000 qubits, 20-way connectivity
and higher coherence for increased performance.
- Introduced new enhancements to the Leap real-time quantum cloud
service, including algorithmic updates to our hybrid solvers
designed to drive increased performance for key customers. In
addition, we are implementing organization administration changes
in Leap to streamline project management for both D-Wave and our
customers.
Second Quarter Fiscal 2023 Financial Highlights
- Revenue: Revenue for the second quarter of fiscal 2023
was $1.7 million, an increase of $336,000, or 25%, from fiscal 2022
second quarter revenue of $1.4 million. Given the nature of our
professional services engagements, the timing of revenue
recognition associated with our professional services contracts may
vary from period to period.
- Bookings1: Bookings for the second quarter of fiscal
2023 were $2.5 million, an increase of $1.5 million, or 146%, from
fiscal 2022 second quarter bookings of $1.0 million. This
represents D-Wave’s fifth consecutive quarter of year-over-year
growth in bookings.
- Average Deal Size2: During the second quarter of fiscal
2023, D-Wave’s average deal size per booking increased by 136% when
compared to the second quarter of fiscal 2022. During the same
period, the average deal size per booking from commercial customers
increased by 163% year over year.
- Customers: Over the last four quarters, we had 68
revenue producing commercial customers compared with 72 commercial
customers in the immediately preceding four quarters with total
commercial revenue increasing by 44% between the two periods and
the average deal size for commercial customers increasing by 308%
between the two periods. Over the last four quarters, we had a
total of 115 revenue producing customers compared with 116 total
customers in the immediately preceding four quarters, with total
customers including commercial, educational and government
accounts.
- GAAP Gross Profit: GAAP gross profit for the second
quarter of fiscal 2023 was $705,000, a decrease of $46,000, or 6%,
from the second quarter of fiscal 2022 GAAP gross profit of
$751,000, with the decrease due primarily to higher stock-based
compensation expenses in cost of sales in the second quarter of
fiscal 2023.
- GAAP Gross Margin: GAAP gross margin for the second
quarter of fiscal 2023 was 41.3%, a decrease of 13.5% from the
54.8% GAAP gross margin for the second quarter of fiscal 2022 with
the decrease principally due to higher stock-based compensation
expense in cost of sales. GAAP gross margin for the second quarter
of fiscal 2023 increased by 14.7% from the 26.6% GAAP gross margin
in the immediately preceding first quarter of fiscal 2023 due
primarily to higher revenue and lower stock-based compensation
expenses.
- Non-GAAP Gross Profit3: Non-GAAP gross profit for the
second quarter of fiscal 2023 was $1.0 million, an increase of
$201,000, or 25%, from the second quarter of fiscal 2022 non-GAAP
gross profit of $791,000. The difference between GAAP and non-GAAP
gross profit is limited to non-cash stock-based compensation and
depreciation expenses that are excluded from the non-GAAP gross
profit.
- Non-GAAP Gross Margin4: Non-GAAP gross margin for the
second quarter of fiscal 2023 was 58.1%, an increase of 0.4% from
the second quarter of fiscal 2022 non-GAAP gross margin of 57.7%.
Non-GAAP gross margin for the second quarter of fiscal 2023
increased by 4.3% from the 53.8% non-GAAP gross margin in the
immediately preceding first quarter of fiscal 2023 due primarily to
higher revenue. The difference between GAAP and non-GAAP gross
margin is limited to non-cash stock-based compensation and
depreciation expenses that are excluded from the non-GAAP gross
margin.
- GAAP Operating Expenses: GAAP operating expenses for the
second quarter of fiscal 2023 were $21.6 million compared with
$13.2 million in the second quarter of fiscal 2022 with the
year-over-year increase including $3.7 million in non-cash
stock-based compensation expense and higher public company and
headcount-related expenses.
- Non-GAAP Adjusted Operating Expenses5: Non-GAAP
operating expenses for the second quarter of fiscal 2023 were $15.9
million compared with $12.0 million in the year earlier fiscal 2022
second quarter with the difference between GAAP and non-GAAP
operating expenses being primarily non-cash stock-based
compensation expense, non-recurring one-time expenses, and
depreciation.
- Net Loss: Net loss for the second quarter of fiscal 2023
was $25.9 million, or $0.20 per share, compared with a net loss of
$13.3 million, or $0.11 per share, in the second quarter of fiscal
2022.
- Adjusted EBITDA6: Adjusted EBITDA for the second quarter
of fiscal 2023 was negative $14.9 million, compared with a negative
$11.3 million in the fiscal 2022 second quarter and an improvement
over the negative $16.9 million in the immediately preceding first
quarter of fiscal 2023 with the year-over-year increase due
primarily to higher public company and headcount-related
expenses.
Financial Results for the First Half of Fiscal Year
2023
- Revenue: Revenue for the six months ended June 30, 2023,
was $3.3 million, an increase of $207,000, or 7%, from revenue of
$3.1 million in the six months ended June 30, 2022.
- Bookings1: Bookings for the six months ended June 30,
2023, were $5.4 million, an increase of $3.7 million, or 209%, from
bookings in the six months ended June 30, 2022.
- Average Deal Size2: During the six months ended June 30,
2023, D-Wave’s average deal size per booking increased by 252% when
compared to the six months ended June 30, 2022. During the same
period, the average deal size per booking from commercial customers
increased by 232% year over year.
- GAAP Gross Profit: GAAP gross profit for the six months
ended June 30, 2023, was $1.1 million, a decrease of $722,000, or
39%, from $1.8 million in GAAP gross profit the six months ended
June 30, 2022, with the decrease due primarily to higher
stock-based compensation expense in cost of sales in the first half
of fiscal 2023.
- GAAP Gross Margin: GAAP gross margin for the six months
ended June 30, 2023, was 34.2%, a decrease of 25.7% from the 59.9%
GAAP gross margin in the six months ended June 30, 2022, with the
decrease due primarily to higher stock-based compensation expense
in cost of sales.
- Non-GAAP Gross Profit3: Non-GAAP gross profit for the
six months ended June 30, 2023, was $1.8 million, a decrease of
$83,000, or 4%, from the non-GAAP gross profit of $1.9 million in
the six months ended June 30, 2022. The difference between GAAP and
non-GAAP gross profit is limited to non-cash stock-based
compensation and depreciation expenses that are excluded from the
non-GAAP gross profit.
- Non-GAAP Gross Margin4: Non-GAAP gross margin for the
six months ended June 30, 2023, was 56.1%, a decrease of 6.4% from
the 62.5% non-GAAP gross margin in the six months ended June 30,
2022. The difference between GAAP and non-GAAP gross margin is
limited to non-cash stock-based compensation and depreciation
expenses that are excluded from the non-GAAP gross margin.
- GAAP Operating Expenses: GAAP operating expenses for the
six months ended June 30, 2023, were $46.7 million compared with
$25.2 million in the six months ended June 30, 2022, with the
year-over-year increase including $9.3 million in non-cash
stock-based compensation expense and higher public company and
headcount-related expenses.
- Non-GAAP Adjusted Operating Expenses5: Non-GAAP
operating expenses for the six months ended June 30, 2023, were
$33.7 million compared with $23.0 million in the six months ended
June 30, 2022, with the difference between GAAP and non-GAAP
operating expenses being primarily non-cash stock-based
compensation expense, non-recurring one-time expenses, and
depreciation.
- Net Loss: Net loss for the six months ended June 30,
2023, was $50.5 million, or $0.40 per share, compared with a net
loss of $25.3 million, or $0.20 per share, in the six months ended
June 30, 2022.
- Adjusted EBITDA6: Adjusted EBITDA for the six months
ended June 30, 2023, was negative $31.8 million, compared with a
negative $21.1 million in the six months ended June 30, 2022, with
the increase due primarily to higher public company and
headcount-related expenses.
We are providing non-GAAP financial measures including non-GAAP
gross profit, non-GAAP gross margin, non-GAAP adjusted operating
expenses and Adjusted EBITDA, as well as bookings and average deal
size operating measures, as we believe these metrics improve
investors’ ability to evaluate our underlying performance. Non-GAAP
measures do not have any standardized meaning under GAAP, and
therefore may not be comparable to similar measures employed by
other companies.
- “Bookings” is an operating measure that is defined as customer
orders received that are expected to generate net revenues in the
future. We present the operational metric of bookings because it
reflects customers' demand for our products and services and to
assist readers in analyzing our performance in future periods.
- “Average deal size” is an operating measure that is defined as
the average dollar amount per booking.
- “Non-GAAP gross profit” is a non-GAAP financial measure. For a
description of non-GAAP gross profit and a reconciliation to gross
profit, the closest comparable GAAP financial measure, refer to
“Non-GAAP Financial Measures” below and the reconciliation table at
the end of this release.
- “Non-GAAP gross margin” is a non-GAAP financial measure. For a
description of non-GAAP gross margin and a reconciliation to gross
margin, the closest comparable GAAP financial measure, refer to
“Non-GAAP Financial Measures” below and the reconciliation table at
the end of this release.
- Adjusted operating expenses is a non-GAAP financial measure.
For a description of adjusted operating expenses and a
reconciliation to operating expenses, the closest comparable GAAP
financial measure, refer to “Non-GAAP Financial Measures” below and
the reconciliation table at the end of this release.
- Adjusted EBITDA is a non-GAAP financial measure. For a
description of Adjusted EBITDA and a reconciliation to net loss,
the closest comparable GAAP financial measure, refer to “Non-GAAP
Financial Measures” below and the reconciliation table at the end
of this release.
Balance Sheet and Liquidity
As of August 8, 2023, D-Wave’s consolidated cash balance
exceeded $50 million compared to the June 30, 2023, consolidated
cash balance of $7.5 million. This represents the Company’s largest
cash balance in its history. On April 13, 2023, D-Wave entered into
a $50 million four-year term loan agreement (the “PSP Loan”) with
PSPIB Unitas Investments II Inc., an affiliate of PSP Investments.
The loan agreement is comprised of three individual tranches of $15
million, $15 million, and $20 million respectively and, to date,
D-Wave has drawn the first two tranches totaling $30 million.
However, there can be no assurance that the Company will be able to
meet the conditions necessary to draw on the third tranche.
As previously disclosed, on June 16, 2022, D-Wave entered into a
common stock purchase agreement (Equity Line of Credit or “ELOC”)
with Lincoln Park Capital Fund, LLC (“Lincoln Park”) wherein the
Company has the right, but not the obligation, to issue and sell up
to $150 million of shares of its common stock to Lincoln Park,
subject to certain limitations and satisfaction of certain
conditions, over a 3-year period. As of the end of the first
quarter of 2023, D-Wave raised approximately $20 million through
the ELOC leaving $130 million in availability with over two years
remaining under the ELOC commitment. On July 24, 2023, D-Wave
re-commenced its use of the ELOC and raised a total of $35.1
million through August 8, 2023. D-Wave’s ability to raise funds
under the ELOC is subject to a number of conditions including
having a sufficient number of registered shares and having the
stock price being above $1.00 per share.
Fiscal Year 2023 Outlook
We are reiterating the full year 2023 financial guidance set
forth in our July 20, 2023, preliminary second quarter revenue and
bookings press release. Our guidance is subject to various
cautionary factors described below. Based on the information
available on August 9, 2023, guidance for the full year 2023 is as
follows:
Revenue
- We expect fiscal 2023 revenue to be in a range of $11 million
to $13 million.
Adjusted EBITDA
- We expect fiscal 2023 Adjusted EBITDA[3] to be less than
negative $58 million.
3. We are not able to reconcile guidance for Adjusted EBITDA to
its most directly comparable GAAP measure, net loss, and cannot
provide an estimated range of net loss for such period without
unreasonable efforts because certain items that impact net loss,
including foreign exchange and stock-based compensation, are not
within our control or cannot be reasonably predicted.
Second Quarter 2023 Conference Call
In conjunction with this announcement, D-Wave will host a
conference call on Thursday, August 10, 2023, at 8:00am (Eastern
Time) to discuss such financial results and its business outlook.
The live dial-in number is 1-888-999-5318 (domestic) or
1-848-280-6460 (international)
About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum
computing systems, software, and services, and is the world’s first
commercial supplier of quantum computers—and the only company
building both annealing quantum computers and gate-model quantum
computers. Our mission is to unlock the power of quantum computing
today to benefit business and society. We do this by delivering
customer value with practical quantum applications for problems as
diverse as logistics, artificial intelligence, materials sciences,
drug discovery, scheduling, cybersecurity, fault detection, and
financial modeling. D-Wave’s technology is being used by some of
the world’s most advanced organizations, including Volkswagen,
Mastercard, Deloitte, Davidson Technologies, ArcelorMittal, Siemens
Healthineers, Unisys, NEC Corporation, Pattison Food Group Ltd.,
DENSO, Lockheed Martin, Forschungszentrum Jülich, University of
Southern California, and Los Alamos National Laboratory.
Non-GAAP Financial Measures
To supplement the financial information presented in accordance
with GAAP, we use non-GAAP measures of certain components of
financial performance. Each of non-GAAP gross profit, non-GAAP
gross margin, Adjusted EBITDA and non-GAAP adjusted operating
expenses is a financial measure that is not required by or
presented in accordance with GAAP. Management believes that each
measure provides investors an additional meaningful method to
evaluate certain aspects of such results period over period.
Non-GAAP gross profit is defined as GAAP Gross Profit less non-cash
stock-based compensation expense. We use non-GAAP gross profit to
measure, understand and evaluate our core operating performance and
trends and to develop short-term and long-term operating plans.
Non-GAAP gross margin is defined as GAAP Gross Margin less non-cash
stock-based compensation expense. We use non-GAAP gross margin to
measure understand and evaluate our core business performance.
Adjusted EBITDA is defined as net loss before interest expense,
income tax expense (benefit), depreciation and amortization
expense, stock-based compensation, remeasurements of
liability-classified warrants, and other nonrecurring nonoperating
income and expenses. We use Adjusted EBITDA to measure the
operating performance of our business, excluding specifically
identified items that we do not believe directly reflect our core
operations and may not be indicative of our recurring operations.
Non-GAAP Adjusted operating expenses is defined as operating
expenses before depreciation and amortization expense and
stock-based compensation expense. We use non-GAAP adjusted
operating expenses to measure our operating expenses, excluding
items we do not believe directly reflect our core 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 our presentation of
non-GAAP measures may be different from non-GAAP measures used by
other companies. For a reconciliation of non-GAAP gross profit,
non-GAAP gross margin, Adjusted EBITDA and non-GAAP adjusted
operating expenses to its most directly comparable GAAP measure,
please refer to the reconciliations below.
Forward-Looking Statements
Certain statements in this press release are forward-looking, as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve risks, uncertainties, and other factors
that may cause actual results to differ materially from the
information expressed or implied by these forward-looking
statements and may not be indicative of future results.
Forward-looking statements in this press release include, but are
not limited to, the expected features of Advantage2, the Company’s
ability to raise funds under the ELOC, and full-year 2023 guidance.
These forward-looking statements are subject to a number of risks
and uncertainties, including, among others, the variability of
professional service revenues; profitability of new customer
contracts; D-Wave’s ability to draw on the third tranche of the PSP
Loan; general economic conditions and other risks; our ability to
expand our customer base and the customer adoption of our
solutions; risks within D-Wave’s industry, including anticipated
trends, growth rates, and challenges in those businesses and the
markets in which they operate; the outcome of any legal proceedings
that may be instituted against us; risks related to the performance
of our business and the timing of expected business or financial
milestones; unanticipated technological or project development
challenges, including with respect to the cost and or timing
thereof; the performance of our products; the effects of
competition on our business; the risk that we will need to raise
additional capital to execute our business plan, which may not be
available on acceptable terms or at all; the risk that we may never
achieve or sustain profitability; the risk that we are unable to
secure or protect our intellectual property; volatility in the
price of our securities; and the numerous other factors set forth
in D-Wave’s Annual Report on Form 10-K for its fiscal year ended
December 31, 2022 and other filings with the Securities and
Exchange Commission. Undue reliance should not be placed on the
forward-looking statements in this press release, which are based
on information available to us on the date hereof. We undertake no
duty to update this information unless required by law.
D-Wave Quantum Inc. Condensed Consolidated Balance
Sheets (Unaudited) June 30 December 31,
(In thousands of U.S. dollars, except share and per share data)
2023
2022
Assets Current assets: Cash
$
7,514
$
7,065
Trade accounts receivable, net
803
757
Inventories
2,325
2,196
Prepaid expenses and other current assets
2,200
3,907
Total current assets
12,842
13,925
Property and equipment, net
1,792
2,294
Operating lease right-of-use assets
8,716
9,133
Intangible assets, net
205
244
Other noncurrent assets
1,354
1,351
Total assets
24,909
26,947
Liabilities and stockholders' (deficit) equity Current
liabilities: Trade accounts payable
$
4,106
$
3,756
Accrued expenses and other current liabilities
10,800
8,640
Loans payable, current
15,910
1,671
Deferred revenue, current
2,827
1,781
Total current liabilities
33,643
15,848
Warrant liabilities
3,404
1,892
Operating lease liabilities, net of current portion
7,162
7,301
Loans payable, noncurrent
8,473
7,811
Deferred revenue, noncurrent
120
9
Total liabilities
52,802
32,861
Commitments and contingencies (Note 14) Stockholders' (deficit)
equity: Common stock, par value $0.0001 per share; 675,000,000
shares authorized at June 30, 2023 and December 31, 2022,
respectively; 128,028,658 shares and 113,335,530 shares issued and
outstanding as of June 30, 2023 and December 31, 2022,
respectively.
12
11
Additional paid-in capital
409,885
381,274
Accumulated deficit
(427,303
)
(376,797
)
Accumulated other comprehensive loss
(10,487
)
(10,402
)
Total stockholders' (deficit) equity
(27,893
)
(5,914
)
Total liabilities and stockholders’ equity
$
24,909
$
26,947
D-Wave Quantum Inc. Condensed Consolidated Statements of
Operations and Comprehensive Loss (Unaudited)
For the Three Months EndedJune 30, For the Six Months
EndedJune 30, (In thousands of U.S. dollars, except share and
per share data)
2023
2022
2023
2022
Revenue
$
1,707
$
1,371
$
3,290
$
3,083
Cost of revenue
1,002
620
$
2,164
1,235
Total gross profit
705
751
1,126
1,848
Operating expenses: Research and development
9,548
7,456
20,463
14,260
General and administrative
9,576
3,959
20,872
7,606
Sales and marketing
2,488
1,739
5,388
3,339
Total operating expenses
21,612
13,154
46,723
25,205
Loss from operations
(20,907
)
(12,403
)
(45,597
)
(23,357
)
Other income (expense), net: Interest expense
(781
)
(1,479
)
(1,235
)
(2,262
)
Change in fair value of warrant liabilities
(2,150
)
-
(1,512
)
-
Change in fair value of Term Loan
(345
)
-
(345
)
-
Term Loan debt issuance costs
(1,393
)
-
(1,393
)
-
Other income (expense), net
(322
)
533
(424
)
353
Total other income (expense), net
(4,991
)
(946
)
(4,909
)
(1,909
)
Net loss
$
(25,898
)
$
(13,349
)
$
(50,506
)
$
(25,266
)
Net loss per share, basic and diluted
$
(0.20
)
$
(0.11
)
$
(0.40
)
$
(0.20
)
Weighted-average shares used in computing net loss per share, basic
and diluted
127,337,903
125,472,590
125,252,585
125,428,749
Comprehensive loss: Net loss
$
(25,898
)
$
(13,349
)
$
(50,506
)
$
(25,266
)
Foreign currency translation adjustment, net of tax
(66
)
32
(85
)
(38
)
Net comprehensive loss
$
(25,964
)
$
(13,317
)
$
(50,591
)
$
(25,304
)
D-Wave Quantum Inc. Condensed Consolidated Statements of
Cash Flows (Unaudited) Six months ended June
30, (in thousands of U.S. dollars)
2023
2022
Cash flows from operating activities: Net loss
$
(50,506
)
$
(25,266
)
Adjustments to reconcile net loss to cash used in operating
activities: Depreciation and amortization
601
705
Stock-based compensation
11,477
1,600
Amortization of operating right of use assets
417
459
Non-cash interest expense
1,198
1,679
Change in fair value of Warrant liabilities
1,512
-
Change in fair value of Term Loan
345
-
Debt issuance costs netted from Term Loan proceeds
643
-
Other non-cash activities
395
499
Change in operating assets and liabilities: Trade accounts
receivable
(40
)
(266
)
Inventories
(82
)
(301
)
Prepaid expenses and other current assets
1,709
(4,330
)
Trade accounts payable
339
(136
)
Accrued expenses and other current liabilities
2,126
4,578
Deferred revenue
1,157
(293
)
Operating lease liabilities, net of current portion
(335
)
(427
)
Net cash used in operating activities
(29,044
)
(21,499
)
Cash flows from investing activities: Purchase of property
and equipment
(59
)
(175
)
Purchase of software
(20
)
(43
)
Net cash used in investing activities
(79
)
(218
)
Cash flows from financing activities: Proceeds from Lincoln
Park Purchase Agreement
15,683
-
Proceeds from government program
-
3,178
Proceeds from debt financing
14,357
19,870
Proceeds from issuance of common stock upon exercise of stock
options
1,208
141
Debt payments
(1,835
)
(424
)
Short swing profit settlement
244
-
Net cash provided by financing activities
29,657
22,765
Effect of exchange rate changes on cash and cash equivalents
(85
)
(65
)
Net (decrease) increase in cash and cash equivalents
449
983
Cash and cash equivalents at beginning of period
$
7,065
$
9,483
Cash and cash equivalents at end of period
$
7,514
$
10,466
Supplemental disclosure of noncash investing and
financing activities: Unpaid deferred costs
$
-
$
3,734
D-Wave Quantum Inc. Reconciliation of Gross Profit to
Non-GAAP Gross Profit For the Three & Six Months Ended
June 30, 2023 and 2022 (in thousands of U.S.
dollars)
For the three months ended June 30, For the six
months ended June 30,
2023
2022
2023
2022
Gross Profit
$
705
$
751
$
1,126
$
1,848
Excluding: Depreciation and Amortization (1)
54
40
109
80
Stock based compensation (2)
233
-
610
-
Non-GAAP Gross Profit
992
791
1,845
1,928
Non-GAAP Gross Profit %
58.1
%
57.7
%
56.1
%
62.5
%
(1) Depreciation and Amortization reflects the Depreciation and
Amortization record in Cost of Revenue only, which differs from the
total Depreciation and Amortization set forth in the Condensed
Consolidated Statement of Cash Flows that also includes
Depreciation and Amortization recorded in Operating Expenses. (2)
Stock based compensation reflects the stock based compensation
recorded in Cost of Revenue only, which differs from the total
stock based compensation set forth in the Condensed Consolidated
Statement of Cash flows that also includes stock based compensation
recorded in Operating Expenses.
D-Wave Quantum Inc.
Reconciliation of Operating Expenses to Non-GAAP Operating
Expenses For the Three & Six Months Ended June 30, 2023
and 2022 (in thousands of U.S. dollars)
For
the three months ended June 30, For the six months ended
June 30,
2023
2022
2023
2022
Operating expenses
$
21,612
$
13,154
$
46,723
$
25,205
Excluding: Depreciation and Amortization (1)
208
295
492
627
Stock based compensation (2)
4,489
817
10,867
1,600
Non-recurring one time expenses (3)
1,002
-
1,682
-
Non-GAAP Operating Expenses
$
15,913
$
12,042
$
33,682
$
22,978
(1) Depreciation and Amortization reflects the Depreciation and
Amortization record in the Operating Expenses only, which differs
from the total Depreciation and Amortization set forth in the
Condensed Consolidated Statement of Cash Flows that also includes
Depreciation and Amortization recorded in Cost of Revenue. (2)
Stock based compensation reflects the stock based compensation
recorded in Operating Expenses only, which differs from the total
stock based compensation set forth in the Condensed Consolidated
Statement of Cash flows that also includes stock based compensation
recorded in Cost of Revenue. (3) Non-recurring one time expenses
related to legal, consulting, and accounting fees.
D-Wave
Quantum Inc. Reconciliation of Net Loss to Adjusted
EBITDA For the Three & Six Months Ended June 30, 2023
and 2022 (in thousands of U.S. dollars)
For
the three months ended June 30, For the six months ended
June 30,
2023
2022
2023
2022
Net loss
$
(25,898
)
$
(13,349
)
$
(50,506
)
$
(25,266
)
Excluding: Depreciation and Amortization
262
335
601
707
Stock based compensation
4,722
817
11,477
1,600
Interest expense (1)
781
1,479
1,235
2,262
Change in fair value of warrant liabilities
2,150
-
1,512
-
Term Loan debt issuance costs
1,393
-
1,393
-
Change in fair value of Term Loan
345
-
345
-
Other Income (expense), net (2)
322
(533
)
424
(353
)
Non-recurring one time expenses (3)
1,002
-
1,682
-
Adjusted EBITDA
$
(14,921
)
$
(11,251
)
$
(31,837
)
$
(21,050
)
(1) Interest expense primarily reflects the accrued interest
associated with the below market interest rate government loans as
if they were interest-bearing at market rates of interest, the
paid-in-kind interest associated with the term loan agreement with
PSPIB Unitas Investments II Inc. entered into on April13, 2023 and
the interest and amortization of the final fee associated with the
Venture Loan with PSPIB Unitas Investments II Inc. that was entered
into on March 3, 2022. (2) Other Income (expense), net consists
primarily of foreign exchange gains and losses, and is included in
the above table to facilitate the reconciliation of Adjusted EBITDA
to Net loss. (3) Non-recurring one time expenses related to legal,
consulting, and accounting fees.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20230810959597/en/
Investor Contact: Kevin Hunt ir@dwavesys.com
Media Contact: Amy McDowell media@dwavesys.com
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