D-Wave Reports 2nd Quarter Results

August 10, 2023

BURNABY, British Columbia and PALO ALTO, Calif., Aug. 10, 2023 — D-Wave Quantum Inc., (NYSE: QBTS) 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.”

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.
  • Bookings: 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 Size: 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 Profit: 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 Margin: 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 Expenses: 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 EBITDA: 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.
  • Bookings: 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 Size: 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 Profit: 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 Margin: 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 compensationand 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 Expenses: 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 EBITDA: 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.

 

For D-Wave’s complete second quarter results, click here.


Source: D-Wave

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