PALO ALTO, Calif., Aug. 8, 2024 — D-Wave Quantum Inc., a leader in commercial quantum computing systems, software, and services, today announced financial results for its second fiscal quarter ended June 30, 2024.

“Our second quarter results show continued traction on all fronts – revenue, bookings, customer acquisition, liquidity and technical advancements,” said Dr. Alan Baratz, CEO of D-Wave. “There is rapidly growing awareness of annealing quantum computing and its ability to deliver business benefits today, and the market is responding. This is further strengthened by our product development activities in hardware (Advantage2 prototype), software (new nonlinear hybrid solver and fast anneal feature), and Quantum Artificial Intelligence. Our momentum as one of the few companies in the world leading the quantum transformation is evident.”

Second Quarter Fiscal 2024 Financial Highlights

• Revenue: Revenue for the second quarter of fiscal 2024 was $2.2 million, an increase of $0.5 million, or 28%, from the fiscal 2023 second quarter revenue of $1.7 million.
• Bookings: Bookings for the second quarter of fiscal 2024 were $2.7 million, an increase of $0.2 million, or 6% from the fiscal 2023 second quarter Bookings of $2.5 million. This represents D-Wave’s ninth consecutive quarter of year-over-year growth in quarterly Bookings.
• Customers: In comparing the most recent four quarters with the immediately preceding four quarters, D-Wave had:
  • A total of 130 customers compared with a total of 114 customers;
  • 77 commercial customers compared with 70 commercial customers; and
  • 26 Forbes Global 2000 customers compared with 22 Forbes Global 2000 customers constituting 34% of the total number of commercial customers.
• Commercial Traction: In comparing the most recent four quarters with the immediately preceding four quarters:
  • Revenue from commercial customers increased by 35%, or $1.8 million.
  • Commercial revenue as a percentage of total revenue changed slightly from 66.7% to 65.9%; and
  • Revenue from Forbes Global 2000 customers increased by $0.9 million, or 50%, and comprised 26% of total revenue.
• GAAP Gross Profit: GAAP gross profit for the second quarter of fiscal 2024 was $1.4 million, an increase of $0.7 million, or 97%, from the fiscal 2023 second quarter gross profit of $0.7 million, with the increase due primarily to the growth in revenue and increased operating efficiencies.
• GAAP Gross Margin: GAAP gross margin for the second quarter of fiscal 2024 was 63.6%, an increase of 22.3% from the fiscal 2023 second quarter GAAP gross margin of 41.3% with the increase due primarily to the growth in revenue and operating efficiencies.
• Non-GAAP Gross Profit: Non-GAAP Gross Profit for the second quarter of fiscal 2024 was $1.6 million, an increase of $0.6 million, or 61%, from the fiscal 2023 second quarter Non-GAAP Gross Profit of $1.0 million. The difference between GAAP and Non-GAAP Gross Profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP Gross Profit.
• Non-GAAP Gross Margin: Non-GAAP Gross Margin for the second quarter of fiscal 2024 was 73.1%, an increase of 15.0% from the fiscal 2023 second quarter Non-GAAP Gross Margin of 58.1%. The difference between GAAP and Non-GAAP Gross Margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP Gross Margin.
• GAAP Operating Expenses: GAAP operating expenses for the second quarter of fiscal 2024 were $20.2 million, a decrease of $1.4 million, or 6%, from the fiscal 2023 second quarter GAAP operating expenses of $21.6 million with the decrease driven primarily by decreases of $1.7 million in professional services and $0.4 million in non-cash stock-based compensation expense, partially offset by an increase of $0.8 million in marketing costs.
• Non-GAAP Adjusted Operating Expenses: Non-GAAP Adjusted Operating Expenses for the second quarter of fiscal 2024 were $15.5 million, a decrease of $0.4 million, or 3% from the fiscal 2023 second quarter Non-GAAP Adjusted Operating Expenses of $15.9 million with the decrease driven primarily by decreases of $0.8 million in professional services, $0.2 million in fabrication and related activities and $0.2 million in insurance, partially offset by an increase of $0.8 million in marketing costs.
• Net Loss: Net loss for the second quarter of fiscal 2024 was $17.8 million, or $0.10 per share, a decrease of $8.4 million, or $0.11 per share, from the fiscal 2023 second quarter net loss of $26.2 million, or $0.21 per share.
• Adjusted EBITDA Loss: Adjusted EBITDA Loss for the second quarter of fiscal 2024 was $13.9 million, a decrease of $1.0 million, or 7%, from the fiscal 2023 second quarter Adjusted EBITDA Loss of $14.9 million with the improvement due primarily to higher gross profit and lower operating expenses.

Financial Results for the First Half of Fiscal Year 2024

• Revenue: Revenue for the six months ended June 30, 2024, was $4.6 million, an increase of $1.3 million, or 41%, from revenue of $3.3 million for the six months ended June 30, 2023.
• Bookings: Bookings for the six months ended June 30, 2024, were $7.2 million, an increase of $2.7 million, or 58%, from Bookings of $4.5 million for the six months ended June 30, 2023.
• GAAP Gross Profit: GAAP gross profit for the six months ended June 30, 2024, was $3.0 million, an increase of $1.9 million, or 171%, from $1.1 million in GAAP gross profit for the six months ended June 30, 2023, with the increase due primarily to the growth in revenue and lower stock-based compensation expense in cost of sales in the first half of fiscal 2024.
• GAAP Gross Margin: GAAP gross margin for the six months ended June 30, 2024, was 65.6%, an increase of 31.4% from the 34.2% GAAP gross margin for the six months ended June 30, 2023, with the increase due primarily to an increase in revenue and a decrease in share based compensation costs and increased operating efficiencies.
• Non-GAAP Gross Profit: Non-GAAP Gross Profit for the six months ended June 30, 2024, was $3.5 million, an increase of $1.7 million, or 89%, from the Non-GAAP Gross Profit of $1.8 million for the six months ended June 30, 2023. The difference between GAAP and non-GAAP gross profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP Gross Profit.
• Non-GAAP Gross Margin: Non-GAAP Gross Margin for the six months ended June 30, 2024, was 75.0%, an increase of 18.9% from the 56.1% Non-GAAP Gross Margin for the six months ended June 30, 2023. The difference between GAAP and non-GAAP gross margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP Gross Margin.
• GAAP Operating Expenses: GAAP operating expenses for the six months ended June 30, 2024, were $39.4 million, a decrease of $7.3 million or 16% from GAAP operating expenses of $46.7 million for the six months ended June 30, 2023, with the year-over-year decrease primarily driven by decreases of $3.5 million in non-cash stock-based compensation expense and $4.0 million in professional services.
• Non-GAAP Adjusted Operating Expenses: Non-GAAP Adjusted Operating Expenses for the six months ended June 30, 2024, were $30.3 million, a decrease of $3.4 million or 10% from Non-GAAP Adjusted Operating Expenses of $33.7 million for the six months ended June 30, 2023, 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 and amortization.
• Net Loss: Net loss for the six months ended June 30, 2024, was $35.1 million, or $0.21 per share, a decrease of $15.5 million, or $0.19 per share, compared with a net loss of $50.6 million or $0.40 per sharefor the six months ended June 30, 2023.
• Adjusted EBITDA Loss: Adjusted EBITDA Loss for the six months ended June 30, 2024, was $26.8 million, a decrease of $5.0 million or 16% from Adjusted EBITDA Loss of $31.8 million for the six months ended June 30, 2023, with the decrease due primarily to higher gross profit and reduced operating expenses.

Balance Sheet and Liquidity

As of June 30, 2024, D-Wave’s consolidated cash balance totaled $40.9 million, an increase of $33.4 million, or 444%, from the fiscal 2023 second quarter consolidated cash balance of $7.5 million.

On April 12, 2024, the Company’s $175 million shelf registration statement on Form S-3 went effective and, on May 24, 2024, the S-3 was partially used for a $100 million At-The-Market (“ATM”) program. As of June 30, 2024, D-Wave had $90.7 million of issuance capacity under the ATM program.

D-Wave’s Equity Line of Credit (“ELOC”) registration statement on Form S-3 with Lincoln Park Capital Fund, LLC also went effective on April 12, 2024. As of June 30, 2024, the Company had $61.8 million in available issuance capacity under the ELOC with the investment commitment running through October 2025. D-Wave’s ability to raise additional funds under the ELOC is subject to a number of conditions including having a sufficient number of registered shares and D-Wave’s stock price being above $1.00 per share.

Fiscal Year 2024 Outlook

We are reiterating the full year 2024 financial guidance set forth in our June 28, 2024, fiscal 2023 fourth quarter and full year earnings press release. Our guidance is subject to various cautionary factors described below. Based on the information available on August 7, 2024, guidance for the full year 2024 is as follows:

Adjusted EBITDA Loss

• We expect fiscal 2024 Adjusted EBITDA Loss to be less than the fiscal 2023 Adjusted EBITDA Loss of $54.3 million.

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. 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 has been used by some of the world’s most advanced organizations, including 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.

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Source: D-Wave