IonQ Q3 Results: $6.1 Million in Revenue, Sees Growing Momentum

Insider Brief

• IonQ reports $6.1 million in revenue for the third quarter of 2023.
• Revenue represents 122% growth compared to $2.8 million in the prior year period.
• Net loss was $44.8 million and Adjusted EBITDA loss was $22.4 million.

PRESS RELEASE — IonQ (NYSE: IONQ), a leader in the quantum computing industry, announced financial results for the quarter ended September 30.

“Our third quarter represents another massive step in a pivotal year for IonQ as we usher in the enterprise era of quantum computing. I am pleased to report we have achieved our goal of $100 million in cumulative bookings within the first three years of commercialization, since 2021, and are on track to exceed that goal by the end of 2023. IonQ’s commercial pipeline is bigger and better than ever and our technical momentum, while always arduous, continues to be ahead of schedule,” said Peter Chapman, President and CEO of IonQ.

“This quarter, we saw further validation of our technology with another two systems sold in a $25.5 million deal from the US Air Force Research Lab (AFRL) to further explore quantum networking. We also unveiled our next two future generations of quantum computers: IonQ Forte Enterprise and IonQ Tempo. IonQ Forte Enterprise will bring #AQ 35 to customers in a form factor that integrates seamlessly into existing data centers. IonQ Tempo will deliver #AQ 64 and quantum advantage for certain applications.”

Third Quarter 2023 Financial Highlights

• IonQ recognized revenue of $6.1 million for the third quarter, which is above the high end of the previously provided range, and represents 122% growth compared to $2.8 million in the prior year period.
• IonQ achieved $26.3 million in new bookings for the third quarter, and $58.4 million year-to-date as of September 30, 2023.
• IonQ achieved its previously stated goal of $100 million in cumulative bookings within the first three years of its commercialization efforts, starting in 2021, a full quarter ahead of the initial prediction.
• Cash, cash equivalents and investments were $485.1 million as of September 30, 2023.
• Net loss was $44.8 million and Adjusted EBITDA loss was $22.4 million for the third quarter. Exclusions from Adjusted EBITDA include a non-cash loss of $7.6 million related to the change in the fair value of IonQ’s warrant liabilities.

Commercial Highlights

• IonQ announced a new $25.5 million deal with existing customer AFRL to deploy two barium-based trapped ion quantum computing systems for quantum networking research and application development.
• IonQ unveiled two future enterprise-grade quantum computers: IonQ Forte Enterprise, a #AQ 35 quantum computer, and IonQ Tempo, a #AQ 64 quantum computer expected to deliver quantum advantage for certain applications. Both systems will feature modular rack-mounted form factors designed to fit seamlessly into customers’ data centers.
• IonQ was awarded an extension to its existing contract with ZapataAI and the US Defense Advanced Research Projects Agency (DARPA), to help establish the next generation of benchmarking for quantum computers.
• IonQ was honored to rank 32nd in the 2023 Deloitte Technology Fast 500 List of the Fastest-Growing Companies in North America, recognizing the significant business growth of IonQ and the broader quantum industry in recent years.

Technical Highlights

• IonQ announced at its September Analyst Day that it now believes it will be able to reach #AQ 64 and commercial advantage using error mitigation–the same technique the company is already employing today–rather than needing to implement full error correction. Error mitigation requires fewer qubits than error correction, and makes IonQ even more confident in the company’s ability to reach #AQ 64 in the near-term.
• IonQ achieved #AQ 29 on Next Generation Barium Qubits to Deliver Industry Leading Performance, marking a key milestone in the company’s journey towards developing scalable and reliable systems capable of commercial quantum advantage.
• IonQ intends to achieve an #AQ 64 system by the end of 2025. The company believes that in reaching this #AQ milestone, its systems will deliver quantum advantage for certain use cases and classical computers will no longer be able to fully simulate an IonQ system.

2023 Financial Outlook

• For the full year 2023, IonQ is increasing its revenue outlook range to $21.2 million to $22.0 million.
• For the fourth quarter of 2023, IonQ is expecting revenue of between $5.3 million and $6.1 million.
• For the full year 2023, IonQ is increasing its bookings expectation range to between $60.0 million to $63.0 million.