D-Wave Systems reported strong financial results for the first quarter of fiscal year 2025, with revenue increasing significantly compared to the previous year. This was driven by growing demand for quantum computing solutions across healthcare, finance, and logistics industries. The company highlighted advancements in its quantum systems and software tools, which are designed to solve complex optimisation problems more efficiently than classical computers.
Highlights from the quarter include:
- Record Quarterly Revenue of $15 Million – Up Over 500% year over year
- Increase of $12.5 million, or 509%, from revenue of $2.5 million for the first quarter of fiscal 2024
- Record Quarterly GAAP Gross Profit of $13.9 Million – Up 736% year over year
- Record Quarter End Cash Position of $304 Million – Up 1,014% year over year
- Quarterly Gross Margin of 92.5%- Up 25% year over year
With a focus on expanding its customer base and enhancing its product offerings, D-Wave continues to position itself as a leader in the quantum computing space, supported by strategic partnerships with major clients like IBM and Volkswagen. The company’s leadership team, including CEO Dr. Alan Baratz and CFO John Markovich, emphasised their commitment to innovation and growth, setting the stage for continued expansion in this rapidly evolving field.
Revenue for the first quarter of fiscal 2025 was $15.0 million, an increase of $12.5 million, or 509%, from revenue of $2.5 million for the first quarter of fiscal 2024. The increase was primarily driven by the sale of a quantum computing system in the first quarter of fiscal 2025. Bookings for the first quarter of fiscal 2025 were $1.6 million, a decrease of $2.9 million, or 64%, from the first quarter of fiscal 2024 Bookings of $4.5 million.
Compared with the immediately preceding four quarters, D-Wave had 133 customers compared with 128 customers. The 133 customers include 69 commercial customers (25 of which are Forbes Global 2000 customers), 52 research organizations, and 12 government customers.
GAAP gross profit for the first quarter of fiscal 2025 was a record $13.9 million, an increase of $12.2 million, or 736%, from the first quarter of fiscal 2024 GAAP gross profit of $1.7 million, with the increase due primarily to a higher margin system sale in the first quarter of fiscal 2025. GAAP gross margin for the first quarter of fiscal 2025 was 92.5%, an increase of 25.2% from the first quarter of fiscal 2024 GAAP gross margin of 67.3%, with the increase due primarily to the higher margin system sale in the first quarter of fiscal 2025.
The first quarter of fiscal 2025’s non-GAAP gross profit was a record $14.0 million, an increase of $12.1 million, or 644%, from the first quarter of fiscal 2024’s non-GAAP gross Profit of $1.9 million. The difference between GAAP and non-GAAP gross Profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the non-GAAP gross profit. Non-GAAP Gross Margin for the first quarter of fiscal 2025 was 93.6%, an increase of 17.0% from the first quarter of fiscal 2024 Non-GAAP Gross Margin of 76.6%. The difference between GAAP and Non-GAAP Gross Margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP Gross Margin.
GAAP operating expenses for the first quarter of fiscal 2025 were $25.2 million, an increase of $6.0 million, or 31%, from the first quarter of fiscal 2024 GAAP operating expenses of $19.2 million, with the year-over-year increase primarily driven by increases of $3.1 million in salaries and related personnel costs as well as increases of $1.1 million in marketing expenses, $0.5 million in non-cash stock-based compensation, $0.4 million in third party professional services and $0.4 million in fabrication costs. The increased operating expenses stem from incremental investments to support the Company’s continued growth and expansion.
Non-GAAP Adjusted Operating Expenses for the first quarter of fiscal 2025 were $20.2 million, an increase of $5.4 million, or 36%, from the first quarter of fiscal 2024 Non-GAAP Adjusted Operating Expenses of $14.8 million, with the difference between GAAP and Non-GAAP Adjusted Operating Expenses being primarily non-cash stock-based compensation expense, non-cash depreciation and amortization, and non-recurring one-time expenses.
Net loss for the first quarter of fiscal 2025 was $5.4 million, or $0.02 per share, a decrease of $11.9 million, or $0.09 per share, from the first quarter of fiscal 2024 net loss of $17.3 million or $0.11 per share. The lower net loss was primarily driven by a $12.2 million increase in gross profit associated with the sale of a quantum computing system. The Adjusted EBITDA Loss for the first quarter of fiscal 2025 was $6.1 million, a decrease of $6.8 million, or 53%, from the first quarter of fiscal 2024 Adjusted EBITDA Loss of $12.9 million, with the decrease due primarily to the increase in revenue, partially offset by higher operating expenses, driven by the Company’s increased investment in its go-to-market and research and development organizations.
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