IonQ Announces Second Quarter 2023 Financial Results
- Q2 revenue above expectations
- Increased 2023 revenue outlook
- Increased 2023 bookings outlook
- Established first quantum data center in Europe
- Strong cash position
- None.
Second Quarter Results of
2023 Full Year Revenue Outlook Increased to
Second Quarter Bookings of
2023 Full Year Bookings Outlook Increased to
Established Company’s First Quantum Data Center in
“This was another landmark quarter for IonQ, most notably with a record-setting
“Our impressive second quarter results come on the heels of us achieving our 2023 technical target of 29 algorithmic qubits (#AQ) seven months early. As our path to #AQ 64 and quantum advantage comes into clearer focus, we have seen both public and private institutions investing not just in our current Forte platform, but in IonQ’s technical roadmap. Our track record of success is beginning to speak for itself in the public markets, and we are relentlessly focused on bringing broad quantum advantage to all our customers.”
Second Quarter 2023 Financial Highlights
-
IonQ recognized revenue of
$5.5 million 111% growth compared to$2.6 million -
IonQ achieved
$28.0 million $32.2 million -
Cash, cash equivalents and investments were
$509.2 million -
Net loss was
$43.7 million $19.4 million $15.5 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.
Commercial Highlights
- IonQ and QuantumBasel partnered to jointly establish a European quantum data center, which will be the future home of IonQ systems capable of up to #AQ 35 and #AQ 64.
- IonQ signed a memorandum of understanding with South Korea’s Ministry of Science and ICT to become a core provider of education for Korean students, researchers, and industry professionals. IonQ also met with South Korea’s President, Yoon Suk Yeol, to discuss how IonQ quantum computing can help accelerate the nation’s economy.
- IonQ Forte access was expanded to all IonQ direct access customers, offering the power of #AQ 29 to developers around the world. IonQ recently published benchmarks validating IonQ Forte’s #AQ 29 performance level.
Technical Highlights
- IonQ published a manuscript with Oak Ridge National Laboratory on modeling the molecular structure of the benzene molecule, commonly used as an industrial solvent and as a benchmark to evaluate quantum chemistry algorithms. IonQ believes this represents the most accurate benzene model run on a quantum computer to date.
- IonQ intends to achieve an #AQ 64 system by the end of 2025. The company believes that with that #AQ milestone, its systems will deliver quantum advantage for certain use cases and classical computers will no longer be able to fully simulate an IonQ system.
- IonQ expects to share a more detailed technical roadmap and upcoming product specifications at Quantum World Congress on September 27th, which will be live-streamed for all who are interested in learning more about accessing IonQ’s upcoming systems.
2023 Financial Outlook
-
For the full year 2023, IonQ is increasing its revenue outlook range to
$18.9 million $19.3 million -
For the third quarter of 2023, IonQ is expecting revenue of between
$4.8 million $5.2 million -
For the full year 2023, IonQ is increasing its bookings expectation range again to between
$49 million $56 million 100% growth in bookings year-over-year at the midpoint. - Seeing increased demand for its systems, IonQ hopes to sell a number of systems over the next 18 months, in various configurations based on customer needs. The Company’s guidance for this year is a probability weighted average of its pipeline, which already accounts for the 2023 portion of these potential sales.
Second 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 first quarter ended June 30, 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 two hours after its conclusion at 844-512-2921 (domestic) or 412-317-6671 (international) with access code 13739464 and will be available until 11:59 p.m. Eastern time, August 24, 2023. An archive of the webcast will also be available here shortly after the call and will remain available for one year.
Non-GAAP Financial Measures
To supplement IonQ’s condensed 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, benefit from income taxes, 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, with a proven track record of innovation and deployment. IonQ’s current generation quantum computer, IonQ Forte, is the latest in a line of cutting-edge systems, boasting an industry-leading 29 algorithmic qubits. Along with record performance, IonQ has defined what it believes is the best path forward to scale.
IonQ is the only company with its quantum systems available through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ was founded in 2015 by Dr. Christopher Monroe and Dr. Jungsang Kim based on 25 years of pioneering research. To learn more, visit www.ionq.com.
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,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the Company’s ability to further develop and advance its quantum computers and achieve scale; the Company’s ability to reach #AQ 35 and/or #AQ 64 and quantum advantage; the potential benefits of quantum computing and IonQ’s collaborations, partnerships and customer contracts, including those with QuantumBasel and the government of
IonQ, Inc. Condensed Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data) |
||||||||||||||||
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Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Revenue |
|
$ |
5,515 |
|
|
$ |
2,608 |
|
|
$ |
9,800 |
|
|
$ |
4,561 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
||||||||
Cost of revenue (excluding depreciation and amortization) |
|
|
1,901 |
|
|
|
742 |
|
|
|
2,937 |
|
|
|
1,310 |
|
Research and development |
|
|
19,869 |
|
|
|
9,653 |
|
|
|
36,102 |
|
|
|
16,990 |
|
Sales and marketing |
|
|
3,575 |
|
|
|
2,132 |
|
|
|
6,242 |
|
|
|
4,002 |
|
General and administrative |
|
|
10,930 |
|
|
|
7,558 |
|
|
|
21,511 |
|
|
|
16,752 |
|
Depreciation and amortization |
|
|
2,329 |
|
|
|
1,451 |
|
|
|
4,120 |
|
|
|
2,717 |
|
Total operating costs and expenses |
|
|
38,604 |
|
|
|
21,536 |
|
|
|
70,912 |
|
|
|
41,771 |
|
Loss from operations |
|
|
(33,089 |
) |
|
|
(18,928 |
) |
|
|
(61,112 |
) |
|
|
(37,210 |
) |
Change in fair value of warrant liabilities |
|
|
(15,537 |
) |
|
|
16,061 |
|
|
|
(19,147 |
) |
|
|
29,509 |
|
Interest income, net |
|
|
4,877 |
|
|
|
1,259 |
|
|
|
9,108 |
|
|
|
1,867 |
|
Other income (expense), net |
|
|
31 |
|
|
|
(46 |
) |
|
|
95 |
|
|
|
(47 |
) |
Loss before benefit for income taxes |
|
|
(43,718 |
) |
|
|
(1,654 |
) |
|
|
(71,056 |
) |
|
|
(5,881 |
) |
Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(43,718 |
) |
|
$ |
(1,654 |
) |
|
$ |
(71,056 |
) |
|
$ |
(5,881 |
) |
Net loss per share attributable to common stockholders—basic and diluted |
|
$ |
(0.22 |
) |
|
$ |
(0.01 |
) |
|
$ |
(0.35 |
) |
|
$ |
(0.03 |
) |
Weighted average shares used in computing net loss per share attributable to common stockholders—basic and diluted |
|
|
201,431,494 |
|
|
|
197,214,022 |
|
|
|
200,775,817 |
|
|
|
196,708,008 |
|
IonQ, Inc. Condensed Consolidated Balance Sheets (unaudited) (in thousands) |
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|
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|
||||
|
|
June 30, |
|
December 31, |
||||
|
|
|
2023 |
|
|
|
2022 |
|
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
13,984 |
|
|
$ |
44,367 |
|
Short-term investments |
|
|
361,677 |
|
|
|
311,430 |
|
Accounts receivable |
|
|
2,428 |
|
|
|
3,292 |
|
Prepaid expenses and other current assets |
|
|
13,236 |
|
|
|
12,539 |
|
Total current assets |
|
|
391,325 |
|
|
|
371,628 |
|
Long-term investments |
|
|
133,542 |
|
|
|
182,001 |
|
Property and equipment, net |
|
|
29,089 |
|
|
|
26,014 |
|
Operating lease right-of-use assets |
|
|
5,605 |
|
|
|
3,753 |
|
Intangible assets, net |
|
|
11,548 |
|
|
|
8,944 |
|
Goodwill |
|
|
742 |
|
|
|
742 |
|
Other noncurrent assets |
|
|
5,001 |
|
|
|
4,910 |
|
Total Assets |
|
$ |
576,852 |
|
|
$ |
597,992 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
4,560 |
|
|
$ |
3,055 |
|
Accrued expenses |
|
|
9,251 |
|
|
|
6,655 |
|
Current portion of operating lease liabilities |
|
|
628 |
|
|
|
591 |
|
Unearned revenue |
|
|
8,428 |
|
|
|
8,729 |
|
Current portion of stock option early exercise liabilities |
|
|
761 |
|
|
|
1,130 |
|
Total current liabilities |
|
|
23,628 |
|
|
|
20,160 |
|
Operating lease liabilities, net of current portion |
|
|
5,609 |
|
|
|
3,459 |
|
Unearned revenue, net of current portion |
|
|
707 |
|
|
|
1,201 |
|
Stock option early exercise liabilities, net of current portion |
|
|
643 |
|
|
|
839 |
|
Warrant liabilities |
|
|
22,966 |
|
|
|
3,819 |
|
Other noncurrent liabilities |
|
|
53 |
|
|
|
303 |
|
Total liabilities |
|
$ |
53,606 |
|
|
$ |
29,781 |
|
Stockholders’ Equity: |
|
|
|
|
||||
Common stock |
|
$ |
20 |
|
|
$ |
20 |
|
Additional paid-in capital |
|
|
794,671 |
|
|
|
769,848 |
|
Accumulated deficit |
|
|
(265,358 |
) |
|
|
(194,302 |
) |
Accumulated other comprehensive loss |
|
|
(6,087 |
) |
|
|
(7,355 |
) |
Total stockholders’ equity |
|
|
523,246 |
|
|
|
568,211 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
576,852 |
|
|
$ |
597,992 |
|
IonQ, Inc. Condensed Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Cash flows from operating activities: |
|
|
|
|
||||
Net loss |
|
$ |
(71,056 |
) |
|
$ |
(5,881 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
4,120 |
|
|
|
2,717 |
|
Non-cash research and development arrangements |
|
|
260 |
|
|
|
260 |
|
Stock-based compensation |
|
|
21,572 |
|
|
|
12,556 |
|
Change in fair value of warrant liabilities |
|
|
19,147 |
|
|
|
(29,509 |
) |
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
|
(4,593 |
) |
|
|
108 |
|
Other, net |
|
|
736 |
|
|
|
(1,726 |
) |
Changes in operating assets and liabilities: |
|
|
|
|
||||
Accounts receivable |
|
|
2,074 |
|
|
|
(801 |
) |
Prepaid expenses and other current assets |
|
|
(2,928 |
) |
|
|
3,576 |
|
Accounts payable |
|
|
479 |
|
|
|
1,156 |
|
Accrued expenses |
|
|
2,267 |
|
|
|
484 |
|
Unearned revenue |
|
|
(2,005 |
) |
|
|
264 |
|
Other assets and liabilities |
|
|
26 |
|
|
|
(133 |
) |
Net cash used in operating activities |
|
$ |
(29,901 |
) |
|
$ |
(16,929 |
) |
Cash flows from investing activities: |
|
|
|
|
||||
Purchases of property and equipment |
|
|
(2,411 |
) |
|
|
(7,022 |
) |
Capitalized software development costs |
|
|
(1,950 |
) |
|
|
(982 |
) |
Intangible asset acquisition costs |
|
|
(628 |
) |
|
|
(370 |
) |
Purchases of available-for-sale securities |
|
|
(185,377 |
) |
|
|
(403,899 |
) |
Maturities and sales of available-for-sale securities |
|
|
189,446 |
|
|
|
73,090 |
|
Net cash used in investing activities |
|
$ |
(920 |
) |
|
$ |
(339,183 |
) |
Cash flows from financing activities: |
|
|
|
|
||||
Proceeds from stock options exercised |
|
|
541 |
|
|
|
567 |
|
Other financing, net |
|
|
(1 |
) |
|
|
488 |
|
Net cash provided by financing activities |
|
$ |
540 |
|
|
$ |
1,055 |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(30,281 |
) |
|
|
(355,057 |
) |
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 |
|
$ |
16,086 |
|
|
$ |
43,968 |
|
IonQ, Inc. Reconciliation of Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net loss |
|
$ |
(43,718 |
) |
|
$ |
(1,654 |
) |
|
$ |
(71,056 |
) |
|
$ |
(5,881 |
) |
Interest income, net |
|
|
(4,877 |
) |
|
|
(1,259 |
) |
|
|
(9,108 |
) |
|
|
(1,867 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Benefit for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Depreciation and amortization expense |
|
|
2,329 |
|
|
|
1,451 |
|
|
|
4,120 |
|
|
|
2,717 |
|
Stock-based compensation |
|
|
11,304 |
|
|
|
5,884 |
|
|
|
21,572 |
|
|
|
12,556 |
|
Change in fair value of assumed warrant liabilities |
|
|
15,537 |
|
|
|
(16,061 |
) |
|
|
19,147 |
|
|
|
(29,509 |
) |
Adjusted EBITDA |
|
$ |
(19,425 |
) |
|
$ |
(11,639 |
) |
|
$ |
(35,325 |
) |
|
$ |
(21,984 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230810541196/en/
IonQ Media Contact:
Tyler Ogoshi
press@ionq.com
IonQ Investor Contact:
investors@ionq.com
Source: IonQ
