D-Wave Quantum (NYSE: QBTS) stock surged 5.79% in pre-market trading Friday after the company reported a staggering 502% jump in fourth-quarter bookings for 2024.
D-Wave Quantum recently released its financial results for the fourth quarter and full year ending December 31, 2024.
The quantum computing firm reported $2.3 million in revenue for Q4, a 21% decrease from the $2.9 million recorded in the same quarter of 2023. Despite the revenue drop, D-Wave achieved record bookings of $18.3 million—an impressive 502% surge compared to the $3.0 million in bookings during Q4 2023. This growth underscores the rising interest in its quantum computing solutions.
GAAP gross profit dropped 25% to $1.5 million from $2.0 million in the same period last year, mainly due to reduced professional services revenue. The GAAP gross margin also slipped to 63.8%, compared to 67.7% in Q4 2023. On a non-GAAP basis, gross profit was $1.7 million, reflecting a 28% decrease from $2.3 million a year ago, with the non-GAAP gross margin falling to 73.0% from 80.2%.
D-Wave Quantum (NYSE: QBTS) missed Wall Street expectations, posting a net loss of $17.8 million against an estimated earnings per share of $-0.078 and revenue of $2.51 million. The loss widened from $16.0 million in Q4 2023, driven by a $68.3 million non-cash charge tied to warrant liability remeasurement. However, the adjusted net loss per share improved to $0.08 from $0.10 year-over-year.
The adjusted EBITDA loss widened to $15.3 million, marking a 41% increase from $10.9 million in Q4 2023. The larger loss was driven by lower revenue and higher operating costs, primarily due to expanded sales efforts and R&D investments. D-Wave views these investments as essential for building a foundation for future growth.
For the first quarter of fiscal 2025, D-Wave expects revenue to top $10 million, boosted by the planned sale of an Advantage annealing quantum computer.
The company maintains a strong financial position, with a cash balance of over $300 million as of its latest earnings report. This stability is bolstered by successful equity raises via its At-The-Market and Equity Line of Credit programs, which collectively generated over $307 million. These funds will support D-Wave’s strategic initiatives, including further development of quantum computing technologies and expansion into new markets.
