IonQ Reports Second Quarter 2024 Financial Results

IonQ has reported its financial results for the three and six months ended June 30, 2024. The company’s net loss was $37.6 million and $77.2 million for three and six months, respectively. IonQ’s adjusted EBITDA was $23.7 million and $50.7 million for the same periods. The Ion Trap Quantum Computing Company has shown that it has increased its income and generated new bookings.

IonQ IPO’ed via an SPAC or SPAQ, which has been the route of similar pure-play publicly listed quantum companies such as Rigetti and D-Wave. However, the market could be seen as not that friendly to the Ion Trap Company. The current share price is languishing below the “float” price. It had some upward movement back in 2021, when IonQ hit its all-time high of $28. The current price on Friday, August 9, 2024, was $7.12 at the end of the day.

The company’s cash flows from operating activities were $(47) million and $(29.9) million for the three and six months, respectively. IonQ’s cash and cash equivalents were $44.2 million on June 30, 2024.

Financial Highlights

• IonQ recognized revenue of $11.4 million for the second quarter, which is above the high end of the previously provided range of $7.6 to $9.2 million, and is 106% growth compared to $5.5 million in the prior year.
• IonQ achieved $9.0 million in new bookings for the second quarter.
• Cash, cash equivalents and investments were $402.0 million as of June 30, 2024.
• Net loss was $37.6 million and Adjusted EBITDA loss was $23.7 million for the second quarter.* Exclusions from Adjusted EBITDA include a non-cash gain of $6.6 million related to the change in the fair value of IonQ’s warrant liabilities.

Technical Highlights

• IonQ demonstrated a company record, two-qubit native gate fidelity of 99.9%. The company used its next-generation barium qubits. This paves the way for highly accurate quantum systems. These systems can tackle increasingly complex problems for customers. This milestone was achieved on an engineering development system running two qubits. IonQ believes it is a harbinger for superior qubit fidelities on forthcoming barium-based production systems.
• IonQ announced the invention of a new, industry-first partial error correction technique for an important class of quantum gates. The technique reduces the errors for Clifford gates within circuits. It offers the potential to supercharge the accuracy of near-term quantum computers. This brings IonQ much closer to commercial advantage. This Clifford error reduction technique, which IonQ plans to offer in upcoming Tempo systems, allows for more accurate quantum algorithms and requires a ratio of only about three physical qubits per one error-reduced qubit.
• IonQ announced new, more aggressive technical roadmap targets on its webinar in June , including a goal of 99.999% logical two-qubit gate fidelity and 100 physical qubits in new systems by the end of 2025.
• IonQ announced an exciting new research project with the United States Naval Research Lab (NRL) using IonQ Aria to sample quantum states in molecular structures affecting corrosion. Corrosion is a more than $20 billion problem annually for the Navy, and through this project, IonQ quantum computers delivered results ahead of what is possible with classical computers.

Commercial Highlights

• IonQ announced its selection by the Applied Research Laboratory for Intelligence and Security (ARLIS) through a competitive bidding process to design a first-of-its-kind, networked system for blind quantum computing. Blind quantum computing is a process where quantum computers remain ‘blind’ to what information is being processed through them, and is a key achievement target for the US national security apparatus. In fiscal 2023 and 2024, Congress funded this research for a total of $40 million. The initial phase of the contract is a $5.7 million award for the design of the quantum computers based on IonQ trapped ion processors. IonQ expects to complete this work by the end of this year. In the next phase of the project, ARLIS plans to have two systems built based on the initial IonQ design.
• IonQ announced the extension of its access contract with AWS to continue to offer its world-class quantum computers via Amazon Braket, the quantum computing service of AWS, to developers everywhere who want to leverage the power of quantum computing. AWS users can access IonQ’s generally available quantum computers including IonQ Aria through Amazon Braket, and request early access to IonQ Forte through Braket Direct.
• In July, IonQ started final assembly of its first Forte Enterprise system at QuantumBasel in Basel, Switzerland , where installation and setup has begun.
• IonQ announced the start of construction on two more Forte Enterprise systems being manufactured in the Company’s Seattle facility .

Corporate Highlights

• IonQ announced the promotion of Dr. Dean Kassmann to Senior Vice President of the newly formed Engineering and Technology division . Dr. Kassmann has over 30 years of leadership experience in software, hardware, and technology development, and has been instrumental in delivering IonQ’s technical milestone achievements.

2024 Financial Outlook

• For the full year 2024, IonQ is increasing its revenue expectations to between $38 million and $42 million, with between $9 million and $12 million for the third quarter.
• For the full year 2024, IonQ is reiterating its previously stated bookings range of $75 million and $95 million.

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