D-Wave Systems reported strong Q4 2022 Results, Increased Customer Engagement, and Advances in Quantum Computing Technology. D-Wave Quantum, a company dedicated to providing quantum computing systems, software, and services, announced its Q4 2022 financial results, reporting a 41% increase in revenue from Q3 and an 18% increase in commercial customers, with 67 revenue-generating customers in 2022. The company also closed a $50 million four-year term loan.
The company reported a 41% increase in Q3 to Q4 sequential revenue growth, driven by the increasing adoption of quantum computing technology. The number of commercial customers also increased by 18% to 67 during fiscal 2022, including over two dozen Forbes Global 2000 companies. D-Wave Quantum also closed a $50 million four-year term loan.
The company continued to innovate and advance its product portfolio by introducing new offerings that enable customers to accelerate their artificial intelligence and machine learning efforts using quantum computing.
Regarding financial metrics, D-Wave Quantum reported a GAAP gross profit of $4.3 million for fiscal 2022, compared to $4.5 million in fiscal 2021, and a GAAP gross margin of 59.3% for fiscal 2022, down from 72.1% in fiscal 2021. Non-GAAP gross profit for fiscal 2022 was $4.6 million compared with $4.5 million in fiscal 2021, and non-GAAP gross margin for fiscal 2022 was 64.5% compared with 72.1% in fiscal 2021.
D-Wave’s Quantum Technical Highlights and Commercial Achievements over the Year
In addition to its financial performance, D-Wave Quantum highlighted recent commercial and technical achievements. The company’s annual user conference, Qubits 2023, showcased quantum and quantum-hybrid applications from more than a dozen companies, including Mastercard, Deloitte, and Davidson Technologies. D-Wave also signed several new and expanded customer engagements with industry leaders such as ArcelorMittal, BASF, and Siemens Healthineers.
D-Wave Quantum reported an increase in average QCaaS deal size by 78% on a year-over-year basis. It announced plans to build and deliver feature selection solutions to help customers expedite artificial intelligence/machine learning workflows. The company also continued the expansion of its commercial customer base, with more than 50 million problems running on its Leap quantum cloud service since September 2020.
D-Wave Quantum also made significant progress in advancing its technology, including continued growth of its quantum cloud service and calibration of its next-generation Advantage2 annealing quantum system, which is expected to feature 7000+ qubits, 20-way connectivity, and higher coherence. The company also extended its scientific efforts through research published in Nature Physics that demonstrated large-scale coherence in quantum annealing computers, an important step toward proving quantum advantage. Read More
“We believe our fourth quarter and 2022 year-end results reflect a clear signal: companies are rapidly embracing today’s quantum technology solutions to drive competitive advantage, now. In this complex economic environment, business leaders are actively looking for ways to improve operational efficiencies, reduce costs, fuel innovation, and increase revenue. We believe that near-term quantum and quantum-hybrid applications are critical for navigating this complexity by helping solve businesses’ most difficult computational problems. Our revenue metrics reflect increasing quantum adoption, which accelerated growth of our business and drove a 41% increase in Q3 to Q4 sequential revenue growth.”
Dr. Alan Baratz, CEO of D-Wave.
“Sixty-seven commercial customers used D-Wave solutions in 2022, and we now count more than two dozen of the Forbes Global 2000 as customers, as an increasing number of companies turn to quantum computing to solve complex business problems ranging from customer loyalty to supply chain logistics to e-commerce optimization. Beyond our continued commercial traction, we’re driving ongoing innovation and advancement of our product portfolio, most recently introducing new offerings that help customers harness quantum to accelerate artificial intelligence and machine learning efforts. We’re seeing accelerating momentum across all facets of our business. Finally, we are pleased to announce the closing of a $50 million four-year term loan.”
Dr. Alan Baratz, CEO of D-Wave.
