IonQ Announces Fourth Quarter and Full Year 2023 Financial Results
- IonQ exceeded revenue expectations with $22.0 million in revenue for the full year 2023.
- Bookings for the full year reached $65.1 million, surpassing the high end of the range.
- Fourth-quarter revenue of $6.1 million met the high end of the range.
- Achieved technical milestone #AQ 35 in December 2023, a full year ahead of schedule.
- Doubled compute space performance again, reaching #AQ 36 in January 2024.
- First major milestone achieved in implementing photonic interconnects for networked QPUs.
- Strong pipeline entering 2024 with increased interest in system purchases, especially in Europe.
- None.
Insights
The announcement by IonQ reflects a significant positive performance in terms of revenue and bookings, surpassing the high end of their expected range. This performance indicates robust demand for their quantum computing systems, which is critical information for investors evaluating the company's growth trajectory. The reported doubling of compute space performance, measured by #AQ 36 and the early achievement of technical milestones, such as the implementation of photonic interconnects, suggest that IonQ is advancing its technology at a rapid pace. This technological progress could enhance the company's competitive edge in the nascent but rapidly evolving quantum computing market.
Furthermore, the expansion into the European market, with the sale of two systems, suggests a strategic move to diversify their customer base geographically. This can mitigate risks associated with market concentration and could lead to increased stability in revenue streams. These factors combined with a strong pipeline entering 2024, signal potential for continued growth and market expansion, which are key indicators of a company's health and future prospects for investors.
From a financial perspective, IonQ's report of $22.0 million in revenue and $65.1 million in bookings is a clear indication of the company's strong financial position and operational efficiency. The achievement of these figures above the high end of their forecasted range demonstrates effective management and a positive market reception to their product offerings. The opening of a new manufacturing facility is an indicator of scaling operations, which is typically associated with increased production capacity and potentially lower unit costs over time.
Investors should note that the company's early accomplishment of its technical milestones could translate into a faster time-to-market for new products, which is critical in technology sectors where first-mover advantage can be significant. However, it is essential to consider the capital expenditures associated with these advancements and how they might affect the company's cash flow and profitability in the short term. Long-term, these investments could lead to substantial returns if the technology gains widespread adoption.
The achievements of IonQ in the quantum computing industry, particularly reaching an #AQ of 36, is a noteworthy technical milestone. For those unfamiliar, #AQ is a performance benchmark for quantum computers that reflects the number of qubits, connectivity and error rates. Doubling the compute space performance implies significant improvements in the power and reliability of their quantum processors. The early implementation of photonic interconnects for networked Quantum Processing Units (QPUs) is also a critical development. Photonic interconnects can potentially provide faster and more energy-efficient connections between qubits, which is a substantial technical hurdle in quantum computing.
These technical advancements could make IonQ's systems more appealing to industries that require complex computations, such as pharmaceuticals, finance and materials science. The mention of generative AI indicates that IonQ is tapping into new application areas for quantum computing, which could open additional revenue streams. The strategic focus on technical innovation, coupled with the expansion of manufacturing capabilities, positions the company to capitalize on the growing interest in quantum computing applications.
Full Year Results of
Full Year Results of
Fourth Quarter Results of
Achieved 2024 Technical Milestone of #AQ 35 in December 2023, a Full Year Early
Doubled Compute Space Performance Again, Reaching #AQ 36 in January 2024
Achieved First Major Milestone on Implementing Photonic Interconnects for Networked QPUs
“IonQ had a landmark year in 2023, meeting and exceeding our financial expectations, and accomplishing our technical goals early,” said Peter Chapman, President and CEO of IonQ. “We sold four systems, unveiled the designs for our upcoming generations, and opened our new
“With the rise of generative AI, we are increasingly hearing from customers about the prohibitively expensive and lengthy compute resources–upwards of
Financial Highlights
-
IonQ recognized revenue of
$6.1 million $22.0 million 98% annual growth compared to$11.1 million -
IonQ achieved
$6.7 million $65.1 million 166% annual growth compared to$24.5 million -
Cash, cash equivalents and investments were
$455.9 million -
Net loss was
$41.9 million $20.0 million $157.8 million $77.7 million $7.6 million $19.2 million
*Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.
Corporate Highlights
-
IonQ today announced the appointment of Robert Cardillo, former Director of the National Geospatial-Intelligence Agency, to its Board of Directors. In this role, Cardillo will seek to expand upon IonQ’s work with the
U.S. government in establishing public-private partnerships that position theU.S. as a global leader in the quantum economy. - IonQ today announced the appointment of Bill Scannell, President of Global Sales and Customer Operations at Dell Technologies, to its Board of Directors. As a member of the Board of Directors, Scannell will provide input and direction for IonQ’s system sales strategy and help strengthen the company’s leadership position in the quantum economy.
Technical Highlights
- IonQ achieved its 2024 technical milestone of #AQ 35 on IonQ Forte in December 2023, a full year ahead of schedule. At #AQ 35, IonQ expects its systems may be more commercially practical than the world’s most powerful quantum simulators for certain applications. These systems will now be more useful than ever for tackling quantum applications, such as those in quantum machine learning and quantum chemistry.
- IonQ today announced that it has furthered its performance leadership by achieving #AQ 36 in January 2024, also on IonQ Forte. Achieving #AQ 36 roughly doubles the computational space that Forte can now consider, relative to its performance at #AQ 35.
- IonQ announced that it had achieved its first major milestone in implementing photonic interconnects, the core technology that will allow IonQ to scale compute and networking between multiple quantum processing units (QPUs). IonQ can now generate photons entangled with ions repeatedly and reproducibly, creating a quantum state which will allow future quantum systems to communicate and transfer information between each other.
- IonQ today announced that it has demonstrated its forthcoming photonic integrated circuit, or PIC, technology in a lab setting. This technology will allow for the light that controls qubits to be routed directly to QPUs, enabling superior performance and form factors for future generations of IonQ quantum computers.
Commercial Highlights
-
IonQ announced the start of construction on its first production-class IonQ Forte Enterprise systems in its
Seattle manufacturing facility, with plans to begin delivery to customers by the end of 2024. These #AQ 35 systems will feature modular rack-mounted form factors designed to fit seamlessly into customers’ data centers. - IonQ announced the availability of IonQ Forte through Amazon Braket Direct, a fully managed, white glove quantum computing service from Amazon Web Services. Customers can use Braket Direct to reserve dedicated capacity on different quantum devices and connect with quantum computing experts for hands-on support.
-
IonQ announced a predictive maintenance project with Thompson Machinery, a Caterpillar dealer serving parts of
Tennessee andMississippi , to deploy a quantum machine learning model tasked with detecting potential failures in equipment and compare it directly to a classical model. The quantum model was more likely to detect failures, did so with more precision, and shows promise of being economically significant. -
Earlier this month, IonQ was joined by
U.S. Senator Maria Cantwell from theState of Washington to inaugurate the Company’s newSeattle production facility with a ribbon cutting ceremony. Responding to an uptick in customer demand, IonQ has already decided to increase the footprint of this facility by50% .
2024 Financial Outlook
-
For the full year 2024, IonQ expects revenue to be between
$37.0 million $41.0 million $6.5 million $7.5 million -
IonQ anticipates full year 2024 bookings of between
$70 million $90 million -
IonQ anticipates an Adjusted EBITDA** loss of
$110.5 million
** Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures.” The Company cannot provide a reconciliation between its forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of estimates for stock-based compensation and change in fair value of assumed warrant liabilities, as these items are not within the Company’s control, may vary greatly between periods and could significantly impact future financial results.
Fourth Quarter 2023 Conference Call
IonQ will host a conference call today at 4:30 p.m. Eastern time to review the Company’s financial results for the fourth quarter and full year ended December 31, 2023 and to provide a business update. The call will be accessible by telephone at 877-407-4018 (domestic) or 201-689-8471 (international). The call will also be available live via webcast on the Company’s website here, or directly here. A telephone replay of the conference call will be available approximately three hours after its conclusion at 844-512-2921 (domestic) or 412-317-6671 (international) with access code 13743612 and will be available until 11:59 p.m. Eastern time, March 13, 2024. An archive of the webcast will also be available here shortly after the call and will remain available for one year.
Upcoming Investor Conference Participation
IonQ today announced that Thomas Kramer, Chief Financial Officer, and Jordan Shapiro, Vice President of FP&A and Head of Investor Relations, will participate in a fireside chat at the Morgan Stanley Technology, Media, and Telecom Conference at the Palace Hotel in
Non-GAAP Financial Measures
To supplement IonQ’s consolidated financial statements presented in accordance with GAAP, IonQ uses non-GAAP measures of certain components of financial performance. Adjusted EBITDA is a financial measure that is not required by or presented in accordance with GAAP. Management believes that this measure provides investors an additional meaningful method to evaluate certain aspects of the Company’s results period over period. Adjusted EBITDA is defined as net loss before interest income, net, interest expense, income tax expense, depreciation and amortization expense, stock-based compensation, change in fair value of assumed warrant liabilities, and other non-recurring non-operating income and expenses. IonQ uses Adjusted EBITDA to measure the operating performance of its business, excluding specifically identified items that it does not believe directly reflect its core operations and may not be indicative of recurring operations. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and IonQ’s non-GAAP measures may be different from non-GAAP measures used by other companies. For IonQ’s investors to be better able to compare the Company’s current results with those of previous periods, IonQ shows a reconciliation of GAAP to non-GAAP financial measures at the end of this release.
About IonQ
IonQ, Inc. is a leader in quantum computing that delivers high-performance systems capable of solving the world’s largest and most complex commercial and research use cases. IonQ’s current generation quantum computer, IonQ Forte, is the latest in a line of cutting-edge systems, boasting 36 algorithmic qubits. The company’s innovative technology and rapid growth were recognized in Fast Company’s 2023 Next Big Things in Tech List and Deloitte’s 2023 Technology Fast 500™ List, respectively. Available through all major cloud providers, IonQ is making quantum computing more accessible and impactful than ever before. Learn more at IonQ.com.
IonQ Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “plan,” “believe,” “estimates,” “projects,” “could,” “would,” “may,” “will,” “forthcoming” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the company’s technology driving commercial advantage in the future, the company’s future financial and operating performance, including our outlook and guidance, the timing of delivering to customers the first production-class IonQ Forte Enterprise systems, the planned increase to the footprint of the
IonQ, Inc. Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
6,106 |
|
|
$ |
3,807 |
|
|
$ |
22,042 |
|
|
$ |
11,131 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (excluding depreciation and amortization) |
|
|
3,163 |
|
|
|
901 |
|
|
|
8,108 |
|
|
|
2,944 |
|
Research and development |
|
|
31,620 |
|
|
|
13,696 |
|
|
|
92,321 |
|
|
|
43,978 |
|
Sales and marketing |
|
|
6,981 |
|
|
|
2,414 |
|
|
|
18,270 |
|
|
|
8,385 |
|
General and administrative |
|
|
15,284 |
|
|
|
9,065 |
|
|
|
50,722 |
|
|
|
35,966 |
|
Depreciation and amortization |
|
|
3,506 |
|
|
|
1,356 |
|
|
|
10,375 |
|
|
|
5,604 |
|
Total operating costs and expenses |
|
|
60,554 |
|
|
|
27,432 |
|
|
|
179,796 |
|
|
|
96,877 |
|
Loss from operations |
|
|
(54,448 |
) |
|
|
(23,625 |
) |
|
|
(157,754 |
) |
|
|
(85,746 |
) |
Gain (loss) on change in fair value of warrant liabilities |
|
|
7,581 |
|
|
|
1,778 |
|
|
|
(19,206 |
) |
|
|
30,136 |
|
Interest income, net |
|
|
5,207 |
|
|
|
3,167 |
|
|
|
19,322 |
|
|
|
7,093 |
|
Other income (expense), net |
|
|
(235 |
) |
|
|
33 |
|
|
|
(85 |
) |
|
|
6 |
|
Loss before income tax expense |
|
|
(41,895 |
) |
|
|
(18,647 |
) |
|
|
(157,723 |
) |
|
|
(48,511 |
) |
Income tax benefit (expense) |
|
|
(9 |
) |
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
Net loss |
|
$ |
(41,904 |
) |
|
$ |
(18,647 |
) |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Net loss per share attributable to common stockholders—
|
|
$ |
(0.20 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.25 |
) |
Weighted average shares used in computing net loss per share
|
|
|
205,305,233 |
|
|
|
199,155,110 |
|
|
|
202,576,492 |
|
|
|
197,727,642 |
|
IonQ, Inc. Consolidated Balance Sheets (unaudited) (in thousands) |
||||||||
|
|
December 31, |
|
|
December 31, |
|
||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
35,665 |
|
|
$ |
44,367 |
|
Short-term investments |
|
|
319,776 |
|
|
|
311,430 |
|
Accounts receivable |
|
|
11,467 |
|
|
|
3,292 |
|
Prepaid expenses and other current assets |
|
|
23,081 |
|
|
|
12,539 |
|
Total current assets |
|
|
389,989 |
|
|
|
371,628 |
|
Long-term investments |
|
|
100,489 |
|
|
|
182,001 |
|
Property and equipment, net |
|
|
37,515 |
|
|
|
26,014 |
|
Operating lease right-of-use assets |
|
|
4,613 |
|
|
|
3,753 |
|
Intangible assets, net |
|
|
15,077 |
|
|
|
8,944 |
|
Goodwill |
|
|
742 |
|
|
|
742 |
|
Other noncurrent assets |
|
|
5,155 |
|
|
|
4,910 |
|
Total Assets |
|
$ |
553,580 |
|
|
$ |
597,992 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
5,599 |
|
|
$ |
3,055 |
|
Accrued expenses |
|
|
18,376 |
|
|
|
6,655 |
|
Current portion of operating lease liabilities |
|
|
710 |
|
|
|
591 |
|
Unearned revenue |
|
|
12,087 |
|
|
|
8,729 |
|
Current portion of stock option early exercise liabilities |
|
|
392 |
|
|
|
1,130 |
|
Total current liabilities |
|
|
37,164 |
|
|
|
20,160 |
|
Operating lease liabilities, net of current portion |
|
|
7,395 |
|
|
|
3,459 |
|
Unearned revenue, net of current portion |
|
|
447 |
|
|
|
1,201 |
|
Stock option early exercise liabilities, net of current portion |
|
|
448 |
|
|
|
839 |
|
Warrant liabilities |
|
|
23,004 |
|
|
|
3,819 |
|
Other noncurrent liabilities |
|
|
128 |
|
|
|
303 |
|
Total liabilities |
|
$ |
68,586 |
|
|
$ |
29,781 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Common stock |
|
$ |
20 |
|
|
$ |
20 |
|
Additional paid-in capital |
|
|
839,014 |
|
|
|
769,848 |
|
Accumulated deficit |
|
|
(352,073 |
) |
|
|
(194,302 |
) |
Accumulated other comprehensive loss |
|
|
(1,967 |
) |
|
|
(7,355 |
) |
Total stockholders’ equity |
|
$ |
484,994 |
|
|
$ |
568,211 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
553,580 |
|
|
$ |
597,992 |
|
IonQ, Inc. Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
Year Ended
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
10,375 |
|
|
|
5,604 |
|
Non-cash research and development arrangements |
|
|
520 |
|
|
|
520 |
|
Stock-based compensation |
|
|
69,743 |
|
|
|
31,456 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
19,206 |
|
|
|
(30,136 |
) |
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
|
(9,746 |
) |
|
|
(1,577 |
) |
Other, net |
|
|
1,474 |
|
|
|
441 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(8,175 |
) |
|
|
(1,510 |
) |
Prepaid expenses and other current assets |
|
|
(14,413 |
) |
|
|
(7,012 |
) |
Accounts payable |
|
|
2,188 |
|
|
|
1,060 |
|
Accrued expenses |
|
|
3,319 |
|
|
|
1,344 |
|
Unearned revenue |
|
|
2,604 |
|
|
|
3,892 |
|
Other assets and liabilities |
|
|
1,865 |
|
|
|
(269 |
) |
Net cash provided by (used in) operating activities |
|
$ |
(78,811 |
) |
|
$ |
(44,698 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(13,703 |
) |
|
|
(9,336 |
) |
Capitalized software development costs |
|
|
(4,558 |
) |
|
|
(2,179 |
) |
Intangible asset acquisition costs |
|
|
(1,288 |
) |
|
|
(1,049 |
) |
Purchases of available-for-sale securities |
|
|
(298,445 |
) |
|
|
(605,689 |
) |
Maturities and sales of available-for-sale securities |
|
|
386,760 |
|
|
|
310,045 |
|
Business acquired |
|
|
— |
|
|
|
(848 |
) |
Net cash provided by (used in) investing activities |
|
$ |
68,766 |
|
|
$ |
(309,056 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from stock options exercised |
|
|
1,954 |
|
|
|
1,059 |
|
Other financing, net |
|
|
(193 |
) |
|
|
37 |
|
Net cash provided by (used in) financing activities |
|
$ |
1,761 |
|
|
$ |
1,096 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(2 |
) |
|
|
— |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(8,286 |
) |
|
|
(352,658 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
46,367 |
|
|
|
399,025 |
|
Cash, cash equivalents and restricted cash at the end of the period |
|
$ |
38,081 |
|
|
$ |
46,367 |
|
IonQ, Inc. Reconciliation of Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net loss |
|
$ |
(41,904 |
) |
|
$ |
(18,647 |
) |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Interest income, net |
|
|
(5,207 |
) |
|
|
(3,167 |
) |
|
|
(19,322 |
) |
|
|
(7,093 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax expense (benefit) |
|
|
9 |
|
|
|
— |
|
|
|
48 |
|
|
|
— |
|
Depreciation and amortization |
|
|
3,506 |
|
|
|
1,356 |
|
|
|
10,375 |
|
|
|
5,604 |
|
Stock-based compensation |
|
|
31,194 |
|
|
|
8,895 |
|
|
|
69,743 |
|
|
|
31,456 |
|
Loss (gain) on change in fair value of warrant liabilities |
|
|
(7,581 |
) |
|
|
(1,778 |
) |
|
|
19,206 |
|
|
|
(30,136 |
) |
Adjusted EBITDA |
|
$ |
(19,983 |
) |
|
$ |
(13,341 |
) |
|
$ |
(77,721 |
) |
|
$ |
(48,680 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228606867/en/
IonQ Media Contact:
press@ionq.com
IonQ Investor Contact:
investors@ionq.com
Source: IonQ
FAQ
What were IonQ's full-year revenue results for 2023?
How did IonQ perform in terms of bookings for the full year 2023?
What technical milestone did IonQ achieve in December 2023?
What progress did IonQ make in January 2024?
What major milestone did IonQ reach in terms of QPUs?
