D-Wave Sees Revenues, Bookings Jump Compared to Last Year’s Second Quarter

Insider Brief

• D-Wave reports on second quarter earnings, highlighting that revenue for the second quarter of fiscal 2023 was $1.7 million, an increase of $336,000.
• 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.
• Critical Quote: “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.” — Dr. Alan Baratz, CEO of D-Wave

PRESS RELEASE — D-Wave Quantum Inc., 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.”

D-Wave trades on the New York Stock Exchange under the ticker QBTS.

Recent Commercial / Business Highlights

During the second quarter, signed a number of new and expanded existing customer engagements with Forbes Global 2000 companies including Interpublic Group and VINCI Energies as well as industry leaders such as Unisys Corporation.

Worked with customers on a variety of new quantum and quantum-hybrid applications spanning media and advertising optimization, industrial construction, financial market performance predictions, transportation logistics and much more.

Grew second quarter bookings (as defined below) by 146% on a year-over-year basis, representing the fifth consecutive quarter of year-over-year growth in bookings; bookings totaled $5.4 million in the first half of 2023, an increase of $3.7 million, or 209% over the first half of 2022.

Increased average deal size (as defined below) per booking in the second quarter by 136% on a year-over-year basis and by 252% when comparing the first half of 2023 to the first half of 2022.

Improved the Company’s liquidity position with a current cash balance in excess of $50 million.

Recent Technical Highlights

Continued development of the next-generation Advantage2 quantum computing system, which recently successfully yielded 1,200-qubit prototype processors in the new higher coherence fabrication stack. Advantage2 is expected to feature 7,000 qubits, 20-way connectivity and higher coherence for increased performance.

Introduced new enhancements to the Leap real-time quantum cloud service, including algorithmic updates to our hybrid solvers designed to drive increased performance for key customers. In addition, we are implementing organization administration changes in Leap to streamline project management for both D-Wave and our customers.

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.