Rigetti Computing Reports Fourth Quarter and Full Year 2023 Results
- Deployment of the 84-qubit Ankaa-2 quantum computer with a 2.5X improvement in error performance compared to previous QPUs.
- Achievement of a 98% median 2-qubit fidelity with the Ankaa-2 system.
- Winning competition to deliver a 24-qubit quantum computing system to the UK's National Quantum Computing Centre.
- Launch of the Novera QPU, a 9-qubit quantum processor unit available for integration into customers' on-premise systems.
- Financial results for Q4 2023: Total revenues of $3.4 million, operating loss of $17.2 million, and net loss of $12.6 million.
- Financial results for full year 2023: Total revenues of $12.0 million, operating loss of $72.3 million, and net loss of $75.1 million.
- Awarded grants to advance quantum machine learning techniques for finance and DARPA Quantum Benchmarking Program.
- Partnerships with Oak Ridge National Laboratory and Riverlane to integrate and benchmark Rigetti quantum computers with ORNL's Summit Supercomputer.
- Plans to develop the Ankaa-3 system with a target of achieving a 99% median 2-qubit gate fidelity by the end of 2024.
- None.
Insights
The deployment of the 84-qubit Ankaa-2 quantum computer by Rigetti Computing represents a significant technological advancement, with a 2.5X improvement in error performance and a 98% median 2-qubit fidelity. This indicates a leap forward in the quantum computing space, which is known for its potential to revolutionize industries through unprecedented computational power. The sale of the Novera QPU to the Air Force Research Lab further illustrates the company's growth in commercializing quantum technology.
From a market perspective, these developments could signal Rigetti's strengthening position within the quantum computing industry, potentially affecting investor sentiment and the company's stock valuation. The ability to secure contracts with national research centers and defense agencies suggests a competitive edge and may forecast future revenue streams. However, the financial highlights indicate a substantial operating loss and net loss, raising questions about the company's short-term profitability and cash burn rate. Investors would need to weigh the potential long-term gains from technological advancements against the current financial performance.
Examining Rigetti's financial results for the fourth quarter and full year 2023, it's apparent that the company is operating at a loss, with operating expenses significantly exceeding revenues. The reported net loss of $12.6 million for the quarter and $75.1 million for the year is a critical concern for stakeholders and could impact the company's ability to sustain operations without additional funding or a strategic shift to reduce costs.
On the balance sheet, the $99.9 million in cash and securities offers a buffer, but the burn rate suggests the need for careful financial management or additional capital infusions in the near future. Investors should consider the company's long-term potential in the emerging quantum computing market against the immediate financial risks. The grants and contracts won, such as the Innovate UK competition and the DARPA program, may provide some reassurance of incoming revenue and support for research and development efforts.
The advancements in quantum computing, such as the deployment of the Ankaa-2 and the development of the 24-qubit system for the UK's National Quantum Computing Centre, are noteworthy for their potential to accelerate computational capabilities in various fields. Quantum computing is a cutting-edge field that operates on the principles of quantum mechanics, enabling computers to process information at speeds unattainable by classical computers.
The 98% median 2-qubit fidelity is a metric indicating the reliability of quantum operations, with higher percentages reflecting fewer errors and more reliable computations. Achieving such high fidelity is a technical milestone that may enhance the performance of quantum algorithms. The strategic collaborations with national labs and institutions like AFRL and ORNL are crucial for the development and integration of quantum technologies with existing systems. These partnerships could lead to innovations in quantum networking and machine learning applications, potentially impacting sectors like finance, defense and scientific research.
- Deployed the 84-qubit Ankaa™-2 quantum computer, with a 2.5X improvement in error performance compared to the Company’s previous QPUs and achieved a
98% median 2-qubit fidelity. - Won competition to develop and deliver a 24-qubit quantum computing system to the UK’s National Quantum Computing Centre (NQCC).
- Launched the Novera™ QPU, a 9-qubit quantum processor unit available for integration into customers’ on-premise systems.
- Announces second Novera QPU sale to the Air Force Research Lab (AFRL).
BERKELEY, Calif., March 14, 2024 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the fourth quarter and year ended December 31, 2023.
Fourth Quarter and Full Year 2023 Financial Highlights
- Total revenues for the three months ended December 31, 2023 were
$3.4 million - Total operating expenses for the three months ended December 31, 2023 were
$19.7 million - Operating loss for the three months ended December 31, 2023 was
$17.2 million - Net loss for the three months ended December 31, 2023 was
$12.6 million - As of December 31, 2023 cash, cash equivalents and available-for-sale securities totaled
$99.9 million - For the year ended December 31, 2023, total revenues were
$12.0 million , total operating expenses were$81.5 million , operating loss was$72.3 million and net loss was$75.1 million
Business Updates
Wins Innovate UK Competition to Deliver 24-Qubit Quantum Computing System to NQCC
In February 2024, Rigetti was awarded a Small Business Research Initiative (SBRI) grant from Innovate UK and funded by the National Quantum Computing Centre (NQCC) to develop and deliver a quantum computer to the NQCC. As part of the project, Rigetti proposes to develop and deploy a 24-qubit quantum computer based on the Company’s Ankaa-class architecture. The proposed system is planned to be deployed at NQCC’s Harwell Campus, which is expected to open later this year and will serve as NQCC’s landmark facility to support quantum computing research in the UK.
“Since deploying our first UK-based quantum computer in 2022, we have had the privilege of collaborating with the UK’s talented quantum computing research community. We believe building a system at the NQCC could enable even more innovative discoveries to deepen our understanding of how to improve superconducting quantum computers with the goal of solving practical problems currently intractable by classical resources alone,” said Dr. Subodh Kulkarni, Rigetti CEO.
On-Premise QPU Capabilities Mature with Novera™ QPU Launch
In December 2023, Rigetti launched the Novera QPU (quantum processing unit), a 9-qubit QPU based on the Company’s Ankaa™-class chip architecture. The Novera QPU is Rigetti’s first commercially available QPU. After identifying an emerging market of researchers needing hands-on access to a quantum computer with high performing qubits, Rigetti made the strategic decision to meet the anticipated growing demand with its in-house quantum foundry capabilities and years of experience building 9-qubit QPUs for internal R&D. Rigetti designs and manufactures its QPUs at Fab-1, the industry’s first dedicated and integrated quantum device and manufacturing facility, located in Fremont, California. Rigetti has now completed two Novera QPU sales, both to leading national labs. The first sale was to the Superconducting Quantum Materials and Systems Center (SQMS) led by Fermilab in the second quarter of 2023 as part of the Company’s partnership with SQMS as its lead industry partner.
QPU Sales Grow with Delivery of Novera QPU to AFRL
In the third quarter of 2023, Rigetti delivered its second Novera QPU to the Air Force Research Lab (AFRL) Information Directorate as part of the Company’s Indefinite Delivery Indefinite Quantity (IDIQ) contract. The IDIQ contract enables AFRL to harness Rigetti’s fabrication capabilities for quantum networking hardware research and development.
“A key objective of AFRL's Information Directorate quantum networking program is to develop interfaces between leading quantum technologies to enhance the functionality, scalability, and application space of quantum networking hardware. This includes innovating new interfaces to enable the operation of superconducting qubit platforms with telecom light," said Matthew LaHaye, Senior Research Physicist at AFRL Information Directorate. “AFRL researchers plan to utilize the Novera QPU, in conjunction with photonic integrated circuitry, for novel investigations of light delivery and collection in the control and measurement of superconducting quantum processors. This work will entail fundamental studies of light-matter interactions and engineering of new, reduced-footprint techniques for cryogenic optical i/o,” LaHaye added.
Awarded Innovate UK Grant to Advance Quantum Machine Learning Techniques for Finance
Rigetti is continuing its efforts to develop quantum computing solutions for financial institutions. Rigetti was awarded an Innovate UK grant with the aim to develop quantum machine learning techniques to enable financial institutions to more effectively process, interpret, and make decisions with complex data streams. Joining Rigetti in this project is Amazon Web Services (AWS), Imperial College London, and Standard Chartered.
Awarded Phase 2 of DARPA Quantum Benchmarking Program
Building on the work completed in Phase 1 of the Defense Advanced Research Projects Agency (DARPA) Quantum Benchmarking program aiming to develop a resource estimation framework to provide insight into the requirements of a superconducting quantum computing system necessary for solving large-scale, complex problems, Rigetti was awarded Phase 2, the goal of which is refining and optimizing the estimates for selected utility-scale problems, delivering new upper bounds on these requirements. Phase 2 is expected to be heavily focused on researching fault-tolerant quantum applications. Of particular interest are dynamical chemistry simulations and modeling the dynamics of quantum systems. The University of Technology Sydney, Aalto University, and the University of Southern California will continue to be project partners in Phase 2.
Partners with Oak Ridge National Laboratory (ORNL) and Riverlane to Integrate and Benchmark Rigetti Quantum Computers with ORNL’s Summit Supercomputer
Recently, Rigetti announced that it is partnering with Riverlane and Oak Ridge National Laboratory (ORNL) to work to improve HPC-quantum integration. To develop the integration of quantum computers into HPC environments, the project partners plan to build the first-ever benchmarking suite for measuring the performance of a joint HPC + quantum system, to be run on ORNL’s Summit supercomputer. For the quantum components, researchers plan to use simulated hardware based on key elements of Riverlane’s quantum error correction stack and real remote hardware located at Rigetti’s headquarters in California.
Technology Roadmap and QPU Performance Milestones
Deploys 84-Qubit Ankaa-2 System with a 2.5X Increase in Error Performance
Following the internal deployment of the 84-qubit Ankaa-1 system in March 2023, Rigetti’s 84-qubit Ankaa-2 system was made publicly available in December 2023 — making it the Company’s highest qubit count QPU available to the public. In addition to the new chip architecture that features a square lattice and tunable couplers, Rigetti implemented several technology updates to the system, including a new chip fabrication process, new printed circuit board technology, and electronics improvements, that contributed to Ankaa-2 achieving a
Building on Performance Success of Ankaa-2; Announces Ankaa-3 Launch Plan
The Company plans to develop and deploy its anticipated 84-qubit Ankaa-3 system with the goal of achieving a
“We are confident in our ability to build better performing QPUs, as evidenced by our impressive Ankaa-2 performance. We believe we have laid the groundwork for building scalable, high performing QPUs with our proven modular chip architecture and the innovative Ankaa chip design that resulted in a
“We believe our leadership and expertise in full-stack quantum systems paired with our strong collaborations with researchers around the world across academia, industry, and government, puts us in a unique position to tackle the challenges of building a quantum computer capable of addressing real-world problems. With Rigetti QPUs now in two research labs internationally, we are even more optimistic that practical quantum computing is in reach,” said Dr. Kulkarni.
Conference Call and Webcast
Rigetti will host a conference call later today, March 14, 2024, at 5:00 p.m. ET, or 2:00 p.m. PT, to discuss its fourth quarter 2023 and full year 2023 financial results.
You can listen to a live audio webcast of the conference call at https://edge.media-server.com/mmc/p/5yuqcscr/ or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.
To participate in the live call, you must register using the following link: https://register.vevent.com/register/BI50b5aaacc3644ccfad45c9fcfbb1bb2e. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.
About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s proprietary quantum-classical infrastructure provides high performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at www.rigetti.com.
Contacts
Rigetti Computing Investor Contact:
IR@Rigetti.com
Rigetti Computing Media Contact:
press@rigetti.com
Cautionary Language Concerning Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including statements with respect to the Company’s expectations with respect to the commercialization of the Novera 9-qubit QPU, customer adoption of the Novera 9-qubit QPU and use and research by customers of the Novera 9-qubit QPU, expectations related to the Innovate UK SBRI award to develop and deliver a 24-qubit quantum computer to the NQCC and NQCC’s expected use of the system and potential to enable even more innovative discoveries to deepen understanding of how to improve superconducting quantum computers with the goal of solving practical problems currently intractable by classical resources alone, expectations related to the Innovate UK grant to work with AWS, Imperial College London and Standard Chartered to develop quantum machine learning techniques to enable financial institutions to more effectively process, interpret, and make decisions with complex data streams, expectations related to the DARPA Benchmarking Program with respect to Rigetti’s Phase 2 award to refine and optimize the estimates for selected utility-scale problems and deliver new upper bounds on those requirements, expectations related to the collaboration with Riverlane and ORNL to work to improve HPC-quantum integration, expectations related to the Company’s ability to achieve milestones including developing the Ankaa-3 84-qubit system with at least
| RIGETTI COMPUTING, INC. | |||||||
| CONSOLIDATED BALANCE SHEETS | |||||||
| (in thousands, except share and per share amount) | |||||||
| (unaudited) | |||||||
| December 31, | December 31, | ||||||
| 2023 | 2022 | ||||||
| Assets | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 21,392 | $ | 57,888 | |||
| Available-for-sale investments | 78,537 | 84,923 | |||||
| Accounts receivable | 5,029 | 6,235 | |||||
| Prepaid expenses and other current assets | 2,709 | 2,450 | |||||
| Forward contract—assets | — | 2,229 | |||||
| Deferred offering costs | — | 742 | |||||
| Total current assets | 107,667 | 154,467 | |||||
| Property and equipment, net | 44,483 | 39,530 | |||||
| Operating lease right-of-use assets | 7,634 | 9,316 | |||||
| Other assets | 129 | 129 | |||||
| Total assets | $ | 159,913 | $ | 203,442 | |||
| Liabilities and Stockholders' Equity | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 5,772 | $ | 1,938 | |||
| Accrued expenses and other current liabilities | 8,563 | 8,205 | |||||
| Deferred revenue | 343 | 961 | |||||
| Current portion of debt | 12,164 | 8,303 | |||||
| Current portion of operating lease liabilities | 2,210 | 2,345 | |||||
| Total current liabilities | 29,052 | 21,752 | |||||
| Debt, less current portion | 9,894 | 20,635 | |||||
| Operating lease liabilities, less current portion | 6,297 | 7,858 | |||||
| Derivative warrant liabilities | 2,927 | 1,767 | |||||
| Earn-out liabilities | 2,155 | 1,206 | |||||
| Total liabilities | 50,325 | 53,218 | |||||
| Commitments and contingencies | |||||||
| Stockholders’ equity: | |||||||
| Preferred stock, par value | — | — | |||||
| Common stock, par value | 14 | 12 | |||||
| Additional paid-in capital | 463,089 | 429,025 | |||||
| Accumulated other comprehensive income (loss) | 244 | (161 | ) | ||||
| Accumulated deficit | (353,759 | ) | (278,652 | ) | |||
| Total stockholders’ equity | 109,588 | 150,224 | |||||
| Total liabilities and stockholders’ equity | $ | 159,913 | $ | 203,442 | |||
| RIGETTI COMPUTING, INC. | |||||||||||||||
| CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
| (in thousands, except for per share data) | |||||||||||||||
| (unaudited) | |||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||
| Revenue | $ | 3,376 | $ | 6,060 | $ | 12,008 | $ | 13,102 | |||||||
| Cost of revenue | 860 | 810 | 2,800 | 2,873 | |||||||||||
| Total gross profit | 2,516 | 5,250 | 9,208 | 10,229 | |||||||||||
| Operating expenses: | |||||||||||||||
| Research and development | 12,787 | 15,912 | 52,768 | 59,952 | |||||||||||
| Selling, general and administrative | 6,936 | 10,687 | 27,744 | 53,980 | |||||||||||
| Goodwill impairment | — | 5,377 | — | 5,377 | |||||||||||
| Restructuring | — | — | 991 | — | |||||||||||
| Total operating expenses | 19,723 | 31,976 | 81,503 | 119,309 | |||||||||||
| Loss from operations | (17,207 | ) | (26,726 | ) | (72,295 | ) | (109,080 | ) | |||||||
| Other income (expense), net | |||||||||||||||
| Interest expense | (1,268 | ) | (1,475 | ) | (5,779 | ) | (5,286 | ) | |||||||
| Interest income | 1,330 | 1,261 | 5,076 | 2,433 | |||||||||||
| Change in fair value of derivative warrant liabilities | 3,160 | 2,279 | (1,160 | ) | 22,132 | ||||||||||
| Change in fair value of earn-out liabilities | 1,413 | 1,789 | (949 | ) | 19,207 | ||||||||||
| Transaction costs | — | — | — | (927 | ) | ||||||||||
| Total other income (expense), net | 4,635 | 3,854 | (2,812 | ) | 37,559 | ||||||||||
| Net loss before provision for income taxes | (12,572 | ) | (22,872 | ) | (75,107 | ) | (71,521 | ) | |||||||
| Provision for income taxes | — | — | — | — | |||||||||||
| Net loss | $ | (12,572 | ) | $ | (22,872 | ) | $ | (75,107 | ) | $ | (71,521 | ) | |||
| Net loss per share attributable to common stockholders - basic and diluted | $ | (0.09 | ) | $ | (0.19 | ) | $ | (0.57 | ) | $ | (0.70 | ) | |||
| Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 140,537 | 121,889 | 131,977 | 102,301 | |||||||||||
| RIGETTI COMPUTING INC. | |||||||
| CONSOLIDATED STATEMENTS OF CASH FLOWS | |||||||
| (in thousands) | |||||||
| (unaudited) | |||||||
| Year Ended | |||||||
| December 31, | |||||||
| 2023 | 2022 | ||||||
| Cash flows from operating activities: | |||||||
| Net loss | $ | (75,107 | ) | $ | (71,521 | ) | |
| Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
| Depreciation and amortization | 7,426 | 7,017 | |||||
| Stock-based compensation | 12,409 | 44,812 | |||||
| Change in fair value of earn-out liabilities | 949 | (19,207 | ) | ||||
| Change in fair value of derivative warrant liabilities | 1,160 | (22,132 | ) | ||||
| Change in fair value of forward contract | 2,229 | (5,764 | ) | ||||
| Impairment of deferred offering costs | 836 | — | |||||
| Accretion of available-for-sale securities | (3,121 | ) | (949 | ) | |||
| Amortization of debt issuance costs, commitment fees and accretion of debt end-of-term liabilities | 1,453 | 1,468 | |||||
| Non-cash lease expense | 1,682 | 537 | |||||
| Goodwill impairment | — | 5,377 | |||||
| Changes in operating assets and liabilities: | |||||||
| Accounts receivable | 1,206 | (4,692 | ) | ||||
| Prepaid expenses, other current assets and other assets | (259 | ) | (1,065 | ) | |||
| Deferred revenue | (618 | ) | (24 | ) | |||
| Accounts payable | 895 | (707 | ) | ||||
| Accrued expenses and operating lease liabilities | (1,719 | ) | 4,456 | ||||
| Other liabilities | — | (295 | ) | ||||
| Net cash used in operating activities | (50,579 | ) | (62,689 | ) | |||
| Cash flows from investing activities: | |||||||
| Purchases of property and equipment | (9,059 | ) | (22,737 | ) | |||
| Purchases of available-for-sale securities | (109,252 | ) | (84,287 | ) | |||
| Maturities of available-for-sale securities | 119,084 | — | |||||
| Net cash provided by (used in) investing activities | 773 | (107,024 | ) | ||||
| Cash flows from financing activities: | |||||||
| Proceeds from Business Combination, net of transaction costs paid | — | 225,604 | |||||
| Transaction costs paid directly by Rigetti | — | (18,842 | ) | ||||
| Proceeds from issuance of notes payable | — | 5,000 | |||||
| Payments of principal of notes payable | (8,333 | ) | (1,291 | ) | |||
| Payments of debt issuance costs | — | (85 | ) | ||||
| Payment of loan and security agreement exit fees | — | (1,000 | ) | ||||
| Payments of offering costs | (107 | ) | — | ||||
| Proceeds from sale of common stock through Common Stock Purchase Agreement | 20,544 | — | |||||
| Proceeds from issuance of common stock upon exercise of stock options and warrants | 1,126 | 6,068 | |||||
| Net cash provided by financing activities | 13,230 | 215,454 | |||||
| Effects of exchange rate changes on cash and cash equivalents | 80 | 101 | |||||
| Net (decrease) increase in cash and cash equivalents | (36,496 | ) | 45,842 | ||||
| Cash and cash equivalents – beginning of period | 57,888 | 12,046 | |||||
| Cash and cash equivalents – end of period | $ | 21,392 | $ | 57,888 | |||
| Supplemental disclosures of other cash flow information: | |||||||
| Cash paid for interest | $ | 4,340 | $ | 3,819 | |||
| Non-cash investing and financing activities: | |||||||
| Initial fair value of earn-out liability acquired in merger | — | 20,413 | |||||
| Initial fair value of private placement and public warrant liability acquired in merger | — | 22,932 | |||||
| Reclassification of loan and security agreement warrants to equity | — | 6,370 | |||||
| Settlement of the first tranche of forward contract | — | 3,305 | |||||
| Capitalization of deferred costs to equity upon share issuance | 13 | 1,520 | |||||
| Purchases of property and equipment recorded in accounts payable | 3,612 | 673 | |||||
| Purchases of property and equipment recorded in accrued expenses | 1,019 | 639 | |||||
| Unrealized Gain (Loss) on short term investments | 325 | (314 | ) | ||||
| Right-of-use assets recorded on adoption of ASU 2016‑02 | — | 6,270 | |||||
| Operating lease liabilities recorded on adoption of ASU 2016‑02 | — | 6,620 | |||||
| Lease liabilities arising from obtaining right-of-use assets | — | 4,892 | |||||
FAQ
What is the ticker symbol of Rigetti Computing, Inc. mentioned in the press release?
What were the total revenues for the three months ended December 31, 2023?
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What is the Ankaa-2 quantum computer known for achieving?
Who was the second Novera QPU sale announced to?
What is the goal of developing the Ankaa-3 system?
