Release Date: August 07, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- IonQ Inc (IONQ, Financial) exceeded the high end of their revenue range for the quarter, delivering $11.4 million in recognized revenue.
- The company achieved a two Qubit native gates fidelity of 99.9%, a significant technical milestone.
- IonQ Inc (IONQ) has developed a new industry-first partial error correction technique for quantum gates, enhancing computational accuracy.
- The company secured a $5.7 million contract with ARILS for quantum networking node systems, with potential for further phases.
- IonQ Inc (IONQ) raised their revenue guidance for the full year 2024 to a range of $38 million to $42 million, reflecting increased confidence in their progress.
Negative Points
- Total operating costs and expenses for the second quarter were $60.3 million, up 56% from the prior year period.
- Research and development costs increased by 57% to $31.2 million, indicating high ongoing investment.
- Sales and marketing costs rose by 72% to $6.1 million, reflecting increased spending on commercial efforts.
- The company reported a net loss of $37.6 million for the second quarter, despite improvements from the prior year.
- Adjusted EBITDA loss for the second quarter was $23.7 million, compared to a $19.4 million loss in the prior year period.
Q & A Highlights
Q: Can you give more color on the partial error mitigation scheme and how it changes your roadmap?
A: (Peter Chapman, CEO) This technique targets Clifford gates, which are used in many different applications. It reduces the noise in these gates, making a larger set of applications reachable sooner. This innovation gives us confidence in the timeframe for meaningful applications and significant revenue generation.
Q: Can you explain the different figures mentioned in the ARLIS contract?
A: (Peter Chapman, CEO) Congress funded this project for $40 million in fiscal '23 and '24. We won the first phase for $5.7 million. We expect to win the next phase for an additional $12 million by the end of this year, contributing roughly $17.5 million towards our bookings goal for 2024.
Q: How do you view your progress over the last 12 months and the pathway to real quantum computing?
A: (Peter Chapman, CEO) We believe IONQ is well-positioned for success. We are transitioning from early sales to generating revenue from applications. We are on track to break the $100 million mark in sales, which is a significant milestone.
Q: What are the key milestones on the updated technical roadmap?
A: (Dean Kassmann, SVP of Engineering & Technology) Our roadmap remains the same, targeting AQ 64 in Tempo and using barium qubits. We are on track for delivering the first manufactured systems for Tempo in 2025.
Q: Can you give a sense of how frequently Clifford gates are used in quantum circuits?
A: (Dean Kassmann, SVP of Engineering & Technology) Clifford gates are highly applicable to many different applications, including chemistry circuits. This noise reduction technique allows us to target key pieces of these circuits, improving overall results and accelerating capabilities.
Q: Can you provide more color on the ARLIS contract and the competitive bidding process?
A: (Peter Chapman, CEO) It was an open bid against other companies and modalities. We believe our technical capability, track record, and investment in quantum networking and computing helped us win.
Q: Have you seen an increase in commercial and enterprise customers looking to adopt quantum computing?
A: (Peter Chapman, CEO) Yes, we see increased interest in both quantum networking and computing for application development. We will discuss the first of these applications in the next earnings call.
Q: Why do you think IONQ keeps winning federal opportunities?
A: (Peter Chapman, CEO) Our product's superior error rates and a strong sales team contribute to our success. Our track record and technical capabilities also play a significant role.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
