- 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 with
United 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 with University of Maryland to
Drive Quantum Innovation
IonQ (NYSE: IONQ), a leader in the quantum computing industry,
today announced financial results for the quarter ended September
30, 2024.
“We had yet another banner quarter at IonQ, booking $63.5
million and exceeding the high end of our revenue range. We won a
$54.5 million deal with the United States Air Force Research Lab
(AFRL) to develop and deliver hardware that enables the scaling and
networking of quantum systems,” said Peter Chapman, President and
CEO of IonQ. “We have entered a new era of commercialization for
quantum networking, as demonstrated by the AFRL deal, today's
announcement of the Qubitekk acquisition, and last quarter’s
networking win with ARLIS. These announcements advance our position
as a market leader in quantum networking, in addition to our pole
position in quantum computing.”
“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
of September 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 the United 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 the University of
Maryland (UMD) to expand their partnership to provide
state-of-the-art quantum computing access at the National Quantum
Lab at Maryland (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 of Qubitekk, Inc., a Vista, CA-based quantum
networking company. As part of the transaction, which IonQ
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 in Gothenburg, 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 and IonQ
computers.
Technical Highlights
- IonQ demonstrated remote ion-ion entanglement, the second of
four significant milestones required to develop at-scale photonic
interconnects. The IonQ 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 to IonQ 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
IonQ will host a conference call today at 4:30 p.m. Eastern time
to review the Company’s financial results for the third quarter
ended September 30, 2024 and to provide a business update. The call
will be accessible by telephone at 877-407-4078 (domestic) or
+1-201-689-8471 (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
13748910 and will be available until 11:59 p.m. Eastern time,
November 20, 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 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 Qubitekk, Inc., including its
patents; the expected hiring of Qubitekk employees; the delivery of
hardware and technology by IonQ under its contract with AFRL;
advancement of quantum networking technology; the expected delivery
to IonQ of components for its next generation systems; IonQ’s
development of applications in AstraZeneca’s BioVentureHub; the
Company’s technology driving commercial applications 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 and its suppliers’ businesses; 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; its
inability to effectively enter new markets; IonQ’s ability to
deliver services and products within currently anticipated
timelines; its inability to attract and retain key personnel; the
conditions for closing the asset purchase transaction with Qubitekk
not being met, including the entry into certain contracts and
amendments to contracts; IonQ’s customers deciding or declining to
extend contracts into new phases; the inability of its suppliers to
deliver components that meet expectations timely; 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 quantum networking; 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 September
30,
Nine Months Ended September
30,
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
IonQ, Inc.
Condensed Consolidated Balance
Sheets
(unaudited)
(in thousands)
September 30,
December 31,
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
Goodwill
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
IonQ, Inc.
Condensed Consolidated
Statements of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended September
30,
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
IonQ, Inc.
Reconciliation of Net Loss to
Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended September
30,
Nine Months Ended September
30,
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: Tyler Ogoshi press@ionq.com
IonQ Investor Contact: investors@ionq.com
IonQ (NYSE:IONQ)
Historical Stock Chart
From Nov 2024 to Dec 2024
IonQ (NYSE:IONQ)
Historical Stock Chart
From Dec 2023 to Dec 2024
