IonQ Announces Largest 2024 U.S. Quantum Contract Award of $54.5M with United States Air Force Research Lab

Rhea-AI Summary

IonQ, a leader in quantum computing, has secured a $54.5 million contract with the United States Air Force Research Lab (AFRL). This deal marks the largest 2024 U.S. quantum contract award and accelerates IonQ's expansion into the $15 billion quantum networking market. With $72.8 million in bookings year-to-date, IonQ is confident in meeting or exceeding its $75-95 million bookings guidance for the year.

The company has demonstrated impressive growth, nearly doubling revenue annually since going public in 2021. IonQ has achieved compound annual growth rates of almost 100% for sales and nearly 225% for recognized revenue. The AFRL partnership focuses on developing technology for scaling, networking, and deploying quantum systems over four years.

IonQ's recent successes include a contract extension with Amazon Web Services and a $9 million deal with the University of Maryland. These developments underscore IonQ's growing influence in both government and commercial sectors of the quantum computing industry.

Positive

• Secured a $54.5 million contract with the United States Air Force Research Lab
• Year-to-date bookings of $72.8 million, on track to meet or exceed $75-95 million guidance
• Nearly doubled revenue annually since going public in 2021
• Compound annual growth rates of ~100% for sales and ~225% for recognized revenue
• Contract extension with Amazon Web Services
• $9 million deal with the University of Maryland for quantum computing access

Negative

• None.

Insights

Financial Analyst

IonQ's $54.5 million contract with the AFRL marks a significant milestone, pushing their year-to-date bookings to $72.8 million. This puts them on track to meet or exceed their $75-95 million bookings guidance for the year. The company's growth trajectory is impressive, with nearly 100% compound annual growth rates in bookings and 225% in recognized revenue since going public in 2021.

The four-year contract focuses on quantum networking, aligning with IonQ's expansion into the $15 billion quantum networking market. This diversification could provide a new revenue stream and strengthen IonQ's market position. The company's ability to secure large government contracts and partnerships with major players like AWS demonstrates increasing market validation and potential for future growth.

However, investors should note that while bookings are growing rapidly, recognized revenue may lag due to the nature of long-term contracts. The company's ability to convert bookings into revenue and achieve profitability will be important metrics to watch in the coming years.

Tech Expert

IonQ's contract with AFRL signifies a major leap in quantum computing's practical applications, particularly in defense and telecommunications. The focus on quantum networking compatibility with existing infrastructure and interoperability between different quantum systems is important for widespread adoption.

The company's approach of addressing performance and scale while delivering enterprise-grade solutions sets it apart in the quantum race. IonQ's work on blind quantum computing with ARLIS further demonstrates its advanced capabilities in quantum security, a critical aspect for government and enterprise applications.

IonQ's partnerships across government, academia and industry giants like AWS create a robust ecosystem, potentially accelerating quantum technology development and commercialization. This multi-faceted approach could give IonQ a competitive edge in the rapidly evolving quantum computing market.

However, the quantum computing field is still nascent, with technological challenges and competition from tech giants. IonQ's ability to maintain its technological lead and successfully commercialize its innovations will be key to its long-term success.

IonQ’s trailblazing technology has grown quantum into a substantial global business

The company is expecting to nearly double its revenue for the third year in a row

Deal accelerates IonQ’s expansion into the $15B quantum networking market*

COLLEGE PARK, Md.--(BUSINESS WIRE)-- IonQ (NYSE: IONQ), a leader in the quantum computing industry, today announced that it has signed a $54.5 million contract with the United States Air Force Research Lab (AFRL). With a quarter remaining in the fiscal year, IonQ has announced $72.8 million in bookings year-to-date and reiterated its confidence in meeting or exceeding its bookings guidance of $75-95 million for the year.

Governments, businesses, and academia are investing in quantum computing to tackle complex, multi-billion-dollar problems in areas such as healthcare, finance and chemistry. Pioneering in both quantum computing and networking, IonQ has nearly doubled revenue every year since going public in 2021 as the company has helped customers address their needs.

By delivering on its mature – and commercially focused – technology roadmap, IonQ has emerged as one of the frontrunners in today’s quantum race. The company has hired seasoned professionals from global technology leaders such as Microsoft, Amazon, IBM, Oracle, Nvidia, Google and HPE to partner with the world’s largest organizations to help deliver value. IonQ is now in its third year of significant commercial revenue and has delivered compound annual growth rates of almost 100% for sales (bookings) and nearly 225% for recognized revenue.

“We are thrilled to be at a major inflection point for the company and the industry. No other publicly traded pure-play quantum computing company has nearly doubled revenue each year since going public, nor have they approached the $100M bookings mark so quickly,” said Peter Chapman, President and CEO of IonQ.

The focus of the AFRL partnership is to design, develop, and deliver technology and hardware that enables the scaling, networking, and deployability of quantum systems. The project will help advance quantum networking compatibility with existing telecommunications infrastructure, interoperability with different quantum systems and devices, and deployability of systems suitable for various environments. The contract will be delivered over four years.

“We are pleased to continue our partnership with IonQ," said Michael Hayduk, Deputy Director of the Air Force Research Laboratory, Information Directorate. "Working with industry partners, we can significantly advance the Department of Air Force's efforts to integrate quantum networks into future operations, bolstering our national defense.”

“I am proud to be the leading voice in Congress to strengthen the partnership between IonQ and the Rome Air Force Research Lab which strengthens our AFRL-Rome, New York facility as the center of gravity for quantum computing research within the Department of Defense. This collaboration is bringing new quantum computing jobs to Rome, and the work done there will ensure the U.S. remains the global defense leader,” said Congresswoman Elise Stafanik.

This AFRL contract builds upon the momentum IonQ has driven in quantum networking over the last year. IonQ announced last month that it was selected by the Applied Research Laboratory for Intelligence and Security (ARLIS) for a quantum networking contract to design a first-of-its-kind, networked system for blind quantum computing.

IonQ has seen traction and growth not just in government, but with global enterprise customers and leading academic institutions. Last month, IonQ announced a multi-million-dollar extension of its contract with Amazon Web Services (AWS) to offer its world-class quantum computers via Amazon Braket, the quantum computing service of AWS. The company also announced a $9M deal with the University of Maryland to provide state-of-the-art quantum computing access. IonQ’s approach addresses performance and scale while simultaneously delivering enterprise-grade quantum solutions. The company’s partnership with U.S. Government agencies and departments is a testament to this approach.

To learn more about IonQ and its latest system news and business developments, visit https://ionq.com/.

*(McKinsey Quantum Technology Monitor April 2024)

About IonQ

IonQ, Inc. is a leader in quantum computing that delivers high-performance systems to solve 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, such as “will”, “should”, “expects”, “is expecting”, “predicts”, “is predicting”, “outlook”, “guidance” and “believes”. Statements that are not historical in nature are intended to identify forward-looking statements. These statements include those related to IonQ doubling its revenue, its expansion into the quantum networking market, its projected 2024 bookings, improving quantum networking and system deployability, future delivery under its contract, the ability for third parties to implement IonQ’s offerings to increase their quantum computing and networking capabilities, IonQ’s quantum computing capabilities and plans, access to IonQ’s quantum computers, and the scalability, enterprise-readiness, and reliability of IonQ’s quantum computing and networking offerings. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: IonQ’s ability to scale its business and manage its growth to meet customer and market demands; any disruptions, performance problems or defects in its quantum computing and networking solutions; any slowing or cessation of growth in the quantum computing and quantum networking markets and demand for its solutions; changes in the competitive industries in which IonQ operates, including development of competing technologies; changes in laws and regulations affecting IonQ’s business; our customers’ abilities to maintain sufficient quantum resources for their business, to implement useful quantum algorithms and to otherwise achieve the intended successes for their projects; and IonQ’s ability to implement its business plans, forecasts and other expectations, identify and realize partnerships and opportunities, and to engage new and existing customers. You should carefully consider the foregoing factors and the other risks and uncertainties disclosed in the Company’s filings, including but not limited to those described in the “Risk Factors'' section of IonQ’s most recent Quarterly Report on Form 10-Q and other documents filed by IonQ from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and IonQ assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. IonQ does not give any assurance that it will achieve its expectations.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240927268921/en/

IonQ Media Contact:

Tyler Ogoshi

press@ionq.com

IonQ Investor Contact:

investors@ionq.co

Source: IonQ

FAQ

What is the value of IonQ's contract with the United States Air Force Research Lab?

IonQ secured a $54.5 million contract with the United States Air Force Research Lab (AFRL), marking the largest 2024 U.S. quantum contract award.

How much has IonQ (IONQ) booked in contracts year-to-date for 2024?

IonQ has announced $72.8 million in bookings year-to-date for 2024, with confidence in meeting or exceeding its $75-95 million bookings guidance for the year.

What is the focus of IonQ's partnership with the Air Force Research Lab?

The AFRL partnership focuses on designing, developing, and delivering technology and hardware for scaling, networking, and deploying quantum systems over a four-year period.

How has IonQ's revenue grown since going public in 2021?

IonQ has nearly doubled its revenue annually since going public in 2021, achieving compound annual growth rates of almost 100% for sales and nearly 225% for recognized revenue.