IonQ CEO on Timeline to Quantum Value

Rhea-AI Summary

IonQ's CEO Peter Chapman outlines the company's vision and timeline for quantum computing advancement. The company's current #AQ 36 Forte Enterprise systems are already serving customers, with plans to launch #AQ 64 Tempo systems in 2025 and next-generation #AQ 256 systems thereafter. Chapman emphasizes quantum AI's potential to outperform classical AI and highlights IonQ's leadership in quantum networking.

The statement notes that global quantum investment reached $50 billion by end of 2023, with major tech companies actively investing in quantum computing. IonQ expects 2024 results to be at the high end of their guidance and projects profitability with sales approaching $1 billion by 2030.

Positive

• Company expects 2024 results at high end of bookings and revenue guidance
• Projects reaching $1 billion in sales and profitability by 2030
• Planned launch of more powerful #AQ 64 Tempo systems in 2025
• Current #AQ 36 Forte Enterprise systems already serving customers

Negative

• None.

Insights

Financial Analyst

The CEO's statement provides important forward-looking projections, particularly the ambitious target of $1 billion in sales and profitability by 2030. The confirmation that 2024 results will be at the high end of guidance suggests strong execution and market demand. The quantum computing market's total investment of $50 billion by end-2023 indicates substantial market validation.

The company's progression from #AQ 36 to planned #AQ 256 systems demonstrates a clear technology roadmap. With major tech giants like Amazon, Google, NVIDIA, IBM and Microsoft investing in quantum computing, IonQ's position in both quantum computing and networking presents dual revenue streams. The market's current $6.5 billion valuation suggests investors are pricing in significant growth expectations.

Tech Expert

The technical roadmap from #AQ 36 Forte to #AQ 64 Tempo and future #AQ 256 systems represents a 7x increase in quantum processing capability. This exponential scaling is particularly relevant for AI applications, where quantum advantage could revolutionize machine learning algorithms. The focus on quantum networking is strategically sound, as quantum-secure communications will become critical with the advent of quantum computers capable of breaking current encryption methods.

For context, classical computing faces fundamental physical limitations in power consumption and heat dissipation. IonQ's trapped-ion approach offers superior coherence times and gate fidelities compared to superconducting qubits, potentially providing a competitive advantage in the race to quantum supremacy.

Market Research Analyst

The quantum computing market is experiencing accelerated institutional adoption, evidenced by major tech companies' strategic investments. IonQ's dual focus on computing and networking positions it uniquely in the quantum landscape. McKinsey's report indicating $50 billion in global quantum investment validates the market's maturity and growth trajectory.

The emphasis on 'near-term business value' and 'natively quantum AI' suggests a shift from pure research to commercial applications, particularly in AI and secure communications. This transition from theoretical to practical applications could accelerate revenue growth and market adoption, supporting the company's ambitious 2030 financial targets.

COLLEGE PARK, Md.--(BUSINESS WIRE)-- The following is a statement from Peter Chapman, Chairman and CEO of IonQ (NYSE: IONQ):

Today’s classical computing hardware is limited by computational capacity and power requirements in ways that will likely prohibit society from ever being able to solve some of its most pressing problems.

IonQ’s current #AQ 36 Forte Enterprise systems are already providing insight to solutions for customers today, and our upcoming #AQ 64 Tempo systems in 2025 and next-generation #AQ 256 systems will enable us to tackle increasingly complex problems to deliver near-term business value. One of the areas facing the most significant potential disruption is strong AI, where we believe natively quantum AI will outperform classical AI.

Prudent leaders invest in things that have the potential for near-term returns. By the end of 2023, global quantum investment had reached $50 billion.* Companies like Amazon, Google, NVIDIA, IBM, and Microsoft are investing and hiring in the quantum compute area today.

The world depends on secure communications from financial services to military applications. IonQ is a leader in quantum networking, which we believe is as significant a market as quantum computing.

IonQ also has a history of delivering upon its technical and commercial milestones.

We anticipate that 2024 results will be at the high end of our bookings and revenue guidance and are extremely excited about 2025.

We believe that IonQ will be profitable, with sales approaching $1 billion, by 2030.

* McKinsey, Third Annual Quantum Technology Monitor 2024 Overview, April 24, 2024

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,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast,” “offers,” and other similar expressions are intended to identify forward-looking statements. These statements include those related to IonQ’s position in the quantum networking sector; the expected progress of IonQ’s systems development; advancement of quantum computing and quantum networking technology; the Company’s future financial and operating performance, including our preliminary outlook and guidance; IonQ’s quantum computing capabilities and plans; future deliveries of and access to IonQ’s quantum computers and services; and the scalability and reliability of IonQ’s quantum computing 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: changes in the competitive industries in which IonQ operates, including development of competing technologies; our ability to sell effectively to government entities and large enterprises; changes in laws and regulations affecting IonQ’s and its suppliers’ businesses; IonQ’s ability to implement its business plans, forecasts, and other expectations, to identify and realize partnerships and opportunities, and to engage new and existing customers; its inability to effectively enter new markets; IonQ’s ability to deliver services and products within currently anticipated timelines; its inability to attract and retain key personnel; IonQ’s customers deciding or declining to extend contracts into new phases; the inability of its suppliers to deliver components that meet expectations timely; changes in U.S. government spending or policy that may affect IonQ’s customers; changes to U.S. government goals and metrics of success with regard to implementation of quantum computing and quantum networking; and risks associated with U.S. government sales, including availability of funding and provisions that allow the government to unilaterally terminate or modify contracts for convenience. 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/20250110462219/en/

IonQ Media contact:

Jane Mazur

press@ionq.co

IonQ Investor Contact:

investors@ionq.co

Source: IonQ

FAQ

What are IonQ's revenue and profitability targets for 2030?

IonQ projects reaching sales approaching $1 billion and achieving profitability by 2030.

When will IonQ launch its #AQ 64 Tempo quantum systems?

IonQ plans to launch its #AQ 64 Tempo quantum systems in 2025.

What is the current global investment in quantum technology according to IonQ?

According to McKinsey's Third Annual Quantum Technology Monitor 2024, global quantum investment reached $50 billion by the end of 2023.

What is IonQ's performance outlook for 2024?

IonQ anticipates that 2024 results will be at the high end of their bookings and revenue guidance.

What quantum computing systems does IONQ currently offer?

IonQ currently offers #AQ 36 Forte Enterprise systems, which are already providing solutions to customers.