Third Quarter Results of $2.8M in Revenue and
$16.4M in Bookings, On Track for 2022 Targets
Signs Groundbreaking $13.4M Contract with the
U.S. Air Force Research Lab
Achieves 2022 Technical Milestone of 25
Algorithmic Qubits, Increases Power of IonQ Aria by 4x
Maintains 2022 Full Year Guidance
IonQ (NYSE: IONQ), a leader in quantum computing, today
announced financial results for the quarter ended September 30,
2022. “The third quarter represented an important inflection point
in business momentum for IonQ,” said Peter Chapman, President and
CEO of IonQ.
“During the quarter, we announced a $13.4 million contract with
the U.S. Air Force Research Lab, which represents a major step in
hitting our bookings goal for the year and in the public-private
effort to bring quantum technology into the mainstream. We also
achieved our technical milestone for the year of 25 algorithmic
qubits, setting an industry-wide record and representing a 4x
improvement in the computational power of IonQ Aria.”
“This morning, we announced that IonQ is now a trusted provider
of quantum technology to Dell Technologies, one of the world’s
foremost names in computing hardware. Together with Dell, we will
be introducing powerful and groundbreaking new hybrid
quantum-classical compute solutions to the market,” noted Chapman.
“We are pleased with our third quarter progress and look forward to
continuing to deliver on our track record of success.”
Third Quarter 2022 Financial Highlights
- IonQ recognized revenue of $2.8 million for the third quarter,
above the midpoint of the previously provided range, compared to
$233 thousand in the prior year period.
- IonQ achieved bookings of $16.4 million for the third quarter.
As IonQ has noted on prior calls, management continues to expect
bookings to be lumpy for quite some time.
- Cash, cash equivalents and investments were $555.8 million as
of September 30, 2022.
- Net loss was $24.0 million and Adjusted EBITDA was ($13.4)
million.* Excluded from Adjusted EBITDA is, among other
adjustments, a non-cash loss of $1.2 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.
Commercial Highlights
- In September, the United States Air Force Research Lab (AFRL)
announced a multi-part, $13.4 million contract with IonQ. IonQ will
supply cloud access to compute on its cutting-edge trapped ion
systems and certain hardware components to further research in
quantum networking.
- IonQ announced a project with the Oak Ridge National
Laboratory, part of the U.S. Department of Energy, to research
benchmark circuits for the discovery of new quantum chemistry
applications.
- IonQ announced a new partnership with Dell Technologies to
offer joint customers a world-class hybrid computing solution,
allowing for the seamless transitioning of workloads between the
world’s leading quantum and classical computing hardware
systems.
Technical Highlights
- IonQ increased the computational power of its Aria system by
approximately 4x, now reaching #AQ 25, up from #AQ 23. Aria was
already believed to be the most powerful quantum computer known,
and has now achieved IonQ’s #AQ technical milestone for 2022. Aria
is available to the public via cloud access on Microsoft’s Azure
Quantum Cloud.
- IonQ announced a next generation custom chip called the
multilayered glass trap (MGT), which utilizes multiple layers to
route wires across the chip to enable higher qubit count per
chip.
2022 Financial Outlook
- For the fourth quarter of 2022, IonQ is expecting revenue of
between $2.9 million and $3.4 million.
- For the full year 2022, IonQ is reiterating the previously
stated revenue outlook range of $10.2 million to $10.7
million.
- IonQ is maintaining its previously stated bookings range of $23
million to $27 million for the full year 2022.
- IonQ notes that United States government investment in quantum
information science R&D nearly doubled from 2019 to 2022, going
from a reported $449 million to a requested $877 million.
Third Quarter 2022 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 quarter ended
September 30, 2022. The call will be accessible by telephone at
877-407-4018 (domestic) or 201-689-8471 (international) using
passcode 13733574. 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 at 844-512-2921 or
412-317-6671 with access code 13733574 and will be available until
11:59 PM Eastern time, November 28, 2022. An archive of the webcast
will also be available shortly after the call and will remain
available for 90 days.
Non-GAAP Financial Measures
To supplement IonQ’s condensed consolidated financial statements
presented in accordance with GAAP, we use 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, net,
interest expense, benefit from income taxes, depreciation and
amortization expense, stock-based compensation, change in fair
value of assumed warrant liabilities, offering cost associated with
warrants, 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 reflects 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. For IonQ’s investors to be better able to compare the
Company’s current results with those of previous periods, 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, with a proven track
record of innovation and deployment. IonQ’s current generation
quantum computer, IonQ Forte, is the latest in a line of
cutting-edge systems, including IonQ Aria, a system that boasts
industry-leading 25 algorithmic qubits. Along with record
performance, IonQ has defined what it believes is the best path
forward to scale.
IonQ is the only company with its quantum systems available
through the cloud on Amazon Braket, Microsoft Azure, and Google
Cloud, as well as through direct API access. IonQ was founded in
2015 by Christopher Monroe and Jungsang Kim based on 25 years of
pioneering research. To learn more, visit www.ionq.com.
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”
and other similar expressions are intended to identify
forward-looking statements. These statements include those related
to the Company’s ability to further develop and advance its quantum
computers and achieve scale, including by continuing to improve its
algorithmic qubits at the same pace or at all; the potential
benefits of quantum computing and IonQ’s collaborations and
partnerships, including its new partnership with Dell Technologies,
contract with the AFRL and/or project with Oak Ridge National
Laboratory, the success or outcome of new contracts entered into
with IonQ customers, IonQ’s market opportunity, anticipated growth,
and future financial performance, including management’s financial
outlook for the fourth quarter and full year 2022. 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: market adoption of quantum
computing solutions and the Company’s products, services and
solutions; the ability of the Company to protect its intellectual
property; changes in the competitive industries in which the
Company operates; changes in laws and regulations affecting the
Company’s business; the Company’s ability to implement its business
plans, forecasts and other expectations, and identify and realize
additional partnerships and opportunities; and the risk of
downturns in the market and the technology industry including, but
not limited to, as a result of the COVID-19 pandemic and/or
increased inflationary pressures. The foregoing list of factors is
not exhaustive. You should carefully consider the foregoing factors
and the other risks and uncertainties described in the “Risk
Factors” section of IonQ’s Quarterly Report on Form 10-Q for the
quarter ended September 30, 2022 and other documents filed by the
Company 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 the Company assumes no obligation
and do not intend to update or revise these forward-looking
statements, whether as a result of new information, future events,
or otherwise. The Company 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
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Revenue
$
2,763
$
233
$
7,324
$
451
Costs and expenses:
Cost of revenue (excluding
depreciation and amortization)
733
234
2,043
742
Research and development
13,292
6,180
30,282
15,311
Sales and marketing
1,969
1,286
5,971
2,384
General and administrative
10,149
2,461
26,901
8,321
Depreciation and amortization
1,531
596
4,248
1,543
Total operating costs and
expenses
27,674
10,757
69,445
28,301
Loss from operations
(24,911
)
(10,524
)
(62,121
)
(27,850
)
Change in fair value of warrant
liabilities
(1,151
)
—
28,358
—
Interest income, net
2,059
—
3,926
—
Offering costs associated with
warrants
—
(4,259
)
—
(4,259
)
Other income (expense), net
20
2
(27
)
7
Loss before benefit for income
taxes
(23,983
)
(14,781
)
(29,864
)
(32,102
)
Benefit for income taxes
—
—
—
—
Net loss
$
(23,983
)
$
(14,781
)
$
(29,864
)
$
(32,102
)
Net loss per share attributable
to common stockholders - basic and diluted
$
(0.12
)
$
(0.12
)
$
(0.15
)
$
(0.27
)
Weighted average shares used in
computing net loss per share attributable to common stockholders -
basic and diluted
198,301,240
120,605,457
197,255,965
119,535,167
IonQ, Inc.
Condensed Consolidated Balance
Sheets
(unaudited)
(in thousands)
September 30,
2022
December 31,
2021
Assets:
Current assets:
Cash and cash equivalents
$
57,198
$
399,025
Short-term investments
348,435
123,443
Accounts receivable
2,876
707
Prepaid expenses and other current
assets
8,134
6,442
Total current assets
416,643
529,617
Long-term investments
150,154
80,110
Property and equipment, net
25,065
18,870
Operating lease right-of-use assets
3,824
4,032
Intangible assets, net
7,600
5,841
Other noncurrent assets
3,315
3,558
Total Assets
$
606,601
$
642,028
Liabilities and Stockholders’ Equity:
Current liabilities:
Accounts payable
$
5,042
$
1,882
Accrued expenses
8,177
2,647
Current portion of operating lease
liabilities
582
568
Unearned revenue
4,700
3,430
Current portion of stock option early
exercise liabilities
1,130
1,164
Total current liabilities
19,631
9,691
Operating lease liabilities, net of
current portion
3,512
3,643
Unearned revenue, net of current
portion
741
1,533
Stock option early exercise liabilities,
net of current portion
1,122
1,969
Warrant liabilities
5,598
33,962
Other noncurrent liabilities
367
—
Total liabilities
$
30,971
$
50,798
Stockholders’ Equity:
Common stock
20
19
Additional paid-in capital
760,389
737,150
Accumulated deficit
(175,655
)
(145,791
)
Accumulated other comprehensive loss
(9,124
)
(148
)
Total stockholders’ equity
575,630
591,230
Total Liabilities and Stockholders’
Equity
$
606,601
$
642,028
IonQ, Inc.
Condensed Consolidated Statements
of Cash Flows
(unaudited)
(in thousands)
Nine Months Ended
September 30,
2022
2021
Cash flows from operating activities:
Net loss
$
(29,864
)
$
(32,102
)
Adjustments to reconcile net loss to net
cash used in operating activities:
Depreciation and amortization
4,248
1,543
Non-cash research and development
arrangements
390
1,205
Amortization of customer warrant
—
219
Stock-based compensation expense
22,561
5,929
Change in fair value of warrant
liabilities
(28,358
)
—
Offering costs associated with
warrants
—
4,259
Other, net
(38
)
184
Changes in operating assets and
liabilities:
Accounts receivable
(1,135
)
(3,691
)
Prepaid expenses and other current
assets
(1,842
)
(3,950
)
Accounts payable
2,992
(1,191
)
Accrued expenses
1,996
1,714
Unearned revenue
(555
)
4,084
Other assets and liabilities
(180
)
(54
)
Net cash used in operating activities
(29,785
)
(21,851
)
Cash flows from investing activities:
Purchases of property and equipment
(8,381
)
(5,295
)
Capitalized software development costs
(1,491
)
(1,205
)
Intangible asset acquisition costs
(598
)
(414
)
Purchases of available-for-sale
securities
(488,887
)
—
Maturities and sales of available-for-sale
securities
185,150
—
Net cash used in investing activities
(314,207
)
(6,914
)
Cash flows from financing activities:
Proceeds from stock options exercised
953
5,424
Tax withholding receipts related to vested
and released restricted stock units
1,212
—
Tax withholding payments related to vested
and released restricted stock units
(17
)
—
Proceeds from public warrants
exercised
17
—
Repurchase of early exercised stock
options
—
(968
)
Proceeds from merger and PIPE transaction,
net of transaction costs
—
575,483
Net cash provided by financing
activities
2,165
579,939
Net change in cash and cash
equivalents
(341,827
)
551,174
Cash and cash equivalents at the beginning
of the period
399,025
36,120
Cash and cash equivalents at the end of
the period
$
57,198
$
587,294
IonQ, Inc.
Reconciliation of Net Loss to
Adjusted EBITDA
(unaudited)
(in thousands)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
2022
2021
Net loss
$
(23,983
)
$
(14,781
)
$
(29,864
)
$
(32,102
)
Interest income, net
(2,059
)
—
(3,926
)
—
Interest expense
—
—
—
—
Benefit for income taxes
—
—
—
—
Depreciation and amortization expense
1,531
596
4,248
1,543
Stock-based compensation
10,005
2,055
22,561
5,929
Change in fair value of assumed warrant
liabilities
1,151
—
(28,358
)
—
Offering cost associated with warrants
—
4,259
—
4,259
Adjusted EBITDA
$
(13,355
)
$
(7,871
)
$
(35,339
)
$
(20,371
)
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221114005783/en/
IonQ Media Contact: press@ionq.com
IonQ Investor Contact: investors@ionq.com
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