Rigetti Computing, Inc., a California-based quantum computing company and pioneer in full-stack quantum-classical computing, has announced its financial results for the second quarter and six months ended June 30, 2022.
“We delivered against our core objectives for the second quarter 2022 results, advancing our product roadmap, continuing to attract key talent, and strengthening our base of customers and partnerships,” “Our technical teams made tremendous progress in the second quarter, and we remain on track to meet our anticipated roadmap milestone previously announced in connection with our first quarter 2022 earnings results. We also deepened existing relationships and won new deals in the U.K. and U.S. as we continued to work hand-in-hand with top organizations in pursuit of quantum advantage.”
“Alongside our technology and business progress, we’re excited to announce our committed equity facility. We believe this facility should provide us financial flexibility to support our focus on our mission and business objectives. Furthermore, in the current uncertain macro environment, we believe entering into this facility is prudent.”
Chad Rigetti, founder and CEO of the Company.
Second Quarter 2022 Financial Highlights
Highlights of the second quarter of the 2022 financial year are:
- 39% revenue increase from $1.5 million in the previous year to $2.1 million.
- Increase in total gross profit from $1.2 million in the prior year to $1.3 million.
- Total GAAP operating expenses increased from $10.9 million in the previous year to $26.9 million for the second quarter of 2022.
- Total non-GAAP operating expenses for the second quarter of 2022 were $16.4 million, compared with $9.3 million in the prior year.
- Adjusted EBITDA3 was a loss of $15.1 million, compared to a loss of $8.1 million in the previous year.
- Cash and cash equivalents of $184.0 million were recorded as of June 30, 2022.
- Net GAAP loss for the second quarter of 2022 was $10.0 million compared with $10.1 million in the previous year.
Technology Roadmap
In terms of future technological advancements:
- Rigetti is to release its anticipated 336-qubit multi-chip processor later in 2023, the 1,000+ qubit system in late 2025, and its 4,000+ qubit system in or after 2027.
- The Company also plans to release its expected single-chip 84-qubit quantum computer in 2023.
- Rigetti’s proposed 1,000+ qubit system and its planned 4,000+ qubit system will apply Rigetti’s patented, multi-chip scaling technique.
These goals align with the Company’s technological strategy, which they revealed in a press release on first quarter 2022 profits on May 16, 2022.
Committed Equity Facility
B. Riley Principal Capital II, LLC, and Rigetti entered a common stock purchase agreement on August 11, 2022. Following the agreement, Rigetti may, but is not obligated to, sell and issue up to $75 million worth of shares of its common stock to B. Riley during 24 months. As payment for B. Riley’s promise to acquire shares of Company common stock under the agreement, Rigetti gave B. Riley 171,008 shares of common stock.
Fiscal Year 2022 Outlook
For the upcoming financial year, Rigetti predicted that revenues for the fiscal year 2022 would be between $12 to $13 million in its Q1 results report in May. In this estimate, $4.0 million was allocated to contracts under negotiations with a government agency that is also a customer.
Since the contracting process has taken longer than expected, revenue recognition for some or all of the estimated $4.0 million, part of it which has been spent on work, could be deferred to a fiscal period after the fiscal year 2022 if negotiations are not completed, and contracts are not executed until after 2022.
As a result, the Adjusted EBITDA loss for the upcoming fiscal year 2022 may exceed the $50 to $53 million range we predicted in May. The overall expected value of these contracts may also decline if negotiations lead to unfavorable contract terms.
Recent Business Developments
- Rigetti launched its 32-qubit Aspen-series quantum computer in the U.K. on June 21, 2022, anticipated to be available over the Cloud through Rigetti QCS™ to the Company’s U.K. partners, including Oxford Instruments and Standard Chartered Bank.
- Rigetti UK Limited, a wholly owned subsidiary of Rigetti, jointly received two Innovate U.K. awards on April 29, 2022, as part of the ISCF Commercializing Quantum Technologies Challenge.
- Rigetti has been chosen by the Defense Advanced Research Projects Agency (DARPA) to lead a program to design benchmarks for quantum application performance on large-scale quantum computers. The program is worth up to $2.9 million to Rigetti and its partners, of which about $1.5 million is subject to DARPA’s exercise of an option to extend the initial eighteen-month term.
- Following the conclusion of the 2022 Russell indexes annual reconstitution, Rigetti was included in the Russell 2000 index.
September 2022 Investor Day
On Friday, September 16, 2022, Rigetti will conduct its maiden Investor Day at its Fab-1 facility in Fremont, California, the first dedicated quantum fab in the sector.
The event’s theme will be “Integrating Quantum into the Fabric of the Cloud.” The Company will make more event announcements in the upcoming weeks, including details about the webcast. For a small number of analyst and investor participants, the Company is also offering the option of in-person participation. Contact RGTI@investorrelations.com for further details about the event.
Second Quarter 2022 Conference Call
Rigetti also hosted a conference on August 11 to discuss its second quarter 2022 financial results and business updates. The call was hosted by Chad Rigetti, founder and CEO of Rigetti, and Brian Sereda, CFO of Rigetti.
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