D-Wave, reported a 50% increase in revenue to $2.6 million for Q3 2023. The company’s cash balance reached $53.3 million, the highest in its history. CEO Dr. Alan Baratz highlighted the company’s growth in customer bookings and commercial revenue. D-Wave has signed new agreements with BBVA, QuantumBasel, NTT Docomo, Poznan Superconducting and Networking Center, and Satispay. The company is also exploring integrating its quantum technology with machine learning. D-Wave has made significant progress in the development of high-coherence qubits and quantum error mitigation.
D-Wave Quantum Inc. Reports Financial Results for Q3 2023
D-Wave a commercial quantum computing systems, software, and services company, has announced its financial results for the third quarter of 2023. The company reported a revenue of $2.6 million, a 50% increase from Q2, and a 62% increase in commercial revenue year-over-year. The company also reported total bookings of $2.9 million and a cash balance of $53.3 million, the highest in the company’s history.
The company’s CEO, Dr. Alan Baratz, stated that this is a pivotal moment in quantum computing as the industry shifts from research and development to delivering quantum’s enterprise value and utility. D-Wave’s annealing quantum computing solutions are driving real business impact today, and the company’s third-quarter results reflect a growing recognition of this. The company has seen growth in customer bookings, commercial revenue, and the size of commercial deals.
D-Wave Systems Inc. is a Canadian quantum computing company, notable for producing the first commercially available quantum computers. They specialize in the development of quantum annealing technology to address complex computing challenges.
New and Expanded Customer Engagements
D-Wave signed a number of new and expanded existing customer engagements in the third quarter. These include agreements with financial services company BBVA, European quantum innovation hub QuantumBasel, Japanese mobile phone company NTT Docomo, e-infrastructure development company Poznan Superconducting and Networking Center, and European fintech company Satispay.
The company has worked with commercial customers on a variety of new quantum and quantum-hybrid applications. These span customer rewards optimization, radar scheduling for national security, HVAC system design optimization, 6G satellite network optimization and more. D-Wave has also initiated exploration of its quantum technology’s integration with new machine-learning areas, including prompt optimization and model training.
Financial Highlights
D-Wave reported a 53% year-over-year increase in third quarter bookings, representing the company’s sixth consecutive quarter of year-over-year growth in bookings. Year-to-date bookings totaled $8.4 million, an increase of $4.6 million, or 125% from the same period of 2022.
The company also reported a 51% year-over-year increase in third quarter revenue, and a 50% sequential quarter-to-quarter increase. The average deal size per booking increased by 172% for commercial customers and 178% for all customers when comparing the most recent four quarters with the immediately preceding four quarters.
Technical Highlights
D-Wave announced notable progress in the development of high coherence qubits, which are qubits capable of doing quantum computations for a longer period of time without errors. The company has designed, manufactured, and operated fluxonium qubits that have demonstrated quantum properties that are comparable to the best seen to date in peer-reviewed scientific literature.
The company also successfully demonstrated quantum error mitigation on the upcoming Advantage2TM annealing quantum system prototype, extending the coherent annealing range by nearly an order of magnitude. New algorithmic updates to the Constrained Quadratic Model hybrid solver deliver increased performance for existing binary problem classes, which can include offer allocation, portfolio optimization, and satisfiability.
Fiscal Year 2023 Outlook
Based on the information available on November 8, 2023, D-Wave expects fiscal 2023 revenue to be in a range of $10 million to $11.5 million. This guidance is subject to various cautionary factors. The company’s consolidated cash balance as of September 30, 2023, totalled $53.3 million, an increase of $45.8 million, or 610%, from the end of the immediately preceding fiscal 2023 second quarter.
“We believe that this is a pivotal moment in quantum computing, as D-Wave leads the industry’s transformative shift from research and developmental experimentation to true delivery of quantum’s enterprise value and utility. Our annealing quantum computing solutions are driving real business impact today, and we believe that our third quarter results reflect a growing recognition that D-Wave is leading the enterprise quantum wave,” said Dr. Alan Baratz, CEO of D-Wave. “Once again, we experienced quarter-over-quarter and year-over-year growth in the number of customer bookings, commercial revenue, and the size of commercial deals. We’re also seeing customers moving from development to deployment of applications, as they are seeing first-hand the business impact and near-term advantage that can be achieved using D-Wave’s annealing quantum computing solutions. That growing commercial success, coupled with our ongoing world-class product development and scientific advancements, reflect, in our opinion, impressive progress across all facets of our business.”
Quick Summary
D-Wave Quantum Inc., a recognised name in commercial quantum computing systems, has reported significant growth in its third quarter, with revenue up 50% from the previous quarter and commercial revenue up 62% year-over-year. The company has also made notable progress in the development of high coherence qubits, which are capable of performing quantum computations for longer periods without errors, and has successfully demonstrated quantum error mitigation on its upcoming Advantage2 annealing quantum system prototype.
- D-Wave Quantum Inc., a leader in commercial quantum computing systems, software, and services, reported its fiscal third quarter results, ending September 30, 2023.
- The company’s revenue was $2.6 million, a 50% increase from Q2, and commercial revenue was up 62% year-over-year.
- D-Wave’s CEO, Dr. Alan Baratz, stated that the company is leading the industry’s shift from research and development to the delivery of quantum’s enterprise value and utility.
- The company signed new and expanded existing customer engagements in the third quarter, including agreements with BBVA, QuantumBasel, NTT Docomo, Poznan Superconducting and Networking Center, and Satispay.
- D-Wave is exploring the integration of its quantum technology with new machine learning areas to bring the power of quantum to artificial intelligence/machine learning for its customers.
- The company announced progress in the development of high coherence qubits, which are capable of doing quantum computations for a longer period of time without errors.
- D-Wave’s cash balance at the end of the quarter was $53.3 million, the highest in the company’s history.
