Full Year Results of $22.0 Million in Revenue,
Above High End of Range
Full Year Results of $65.1 Million in Bookings,
Above High End of Range, with Strong Pipeline Entering 2024
Fourth Quarter Results of $6.1 Million in
Revenue, High End of Range
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 (NYSE: IONQ), a leader in the quantum computing industry,
today announced financial results for the quarter and full year
ended December 31, 2023.
“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 Seattle manufacturing facility to begin
producing more systems to fulfill our growing pipeline. IonQ’s
pipeline for 2024 is stronger than ever, and our sale of two
systems in Europe last year is accelerating interest in system
purchases, especially in Europe.”
“With the rise of generative AI, we are increasingly hearing
from customers about the prohibitively expensive and lengthy
compute resources–upwards of $1 billion and 3 months–required to
train certain large language models. We estimate that to fully
simulate 64 algorithmic qubits, you would need 3.6 billion GPUs,
and that by shifting AI workloads to our increasingly powerful
quantum computers, IonQ can help address the world’s next great
computing challenge. We are eager to work with our customers on the
next era of computing and networking in 2024 and beyond.”
Financial Highlights
- IonQ recognized revenue of $6.1 million for the quarter and
$22.0 million for the full year, putting results at the high end
and above the high end of the respective financial outlook range.
This represents 98% annual growth compared to $11.1 million in the
prior year.
- IonQ achieved $6.7 million in new bookings for the fourth
quarter and $65.1 million for the full year, above the high end of
the full year financial outlook range. This represents 166% annual
growth compared to $24.5 million in the prior year.
- Cash, cash equivalents and investments were $455.9 million as
of December 31, 2023.
- Net loss was $41.9 million and Adjusted EBITDA loss was $20.0
million for the fourth quarter. As for the full year 2023, net loss
was $157.8 million and Adjusted EBITDA loss was $77.7 million,
ahead of IonQ’s full year Adjusted EBITDA financial outlook.*
Exclusions from Adjusted EBITDA include a non-cash gain in the
fourth quarter of $7.6 million and a full year 2023 loss of $19.2
million related to the change in the fair value of IonQ’s warrant
liabilities.
*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 the U.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 and
Mississippi, 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 the State of Washington to inaugurate the Company’s
new Seattle 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 by 50%.
2024 Financial Outlook
- For the full year 2024, IonQ expects revenue to be between
$37.0 million and $41.0 million, with between $6.5 million and $7.5
million for the first quarter.
- IonQ anticipates full year 2024 bookings of between $70 million
and $90 million.
- IonQ anticipates an Adjusted EBITDA** loss of $110.5 million
for the full year 2024 at the midpoint of the revenue outlook
provided above.
** 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 San Francisco, CA on Tuesday, March 5, 2024. The
Company’s discussion will begin at 5:05 PM ET and the webcast link
will be available on IonQ’s website here, or directly here.
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 Seattle manufacturing facility, the company’s future sales
strategy, the company’s ability to establish public-private
partnerships, the ability for third parties to implement IonQ’s
offerings to increase their quantum computing capabilities, the
effect of increased availability of customer support functions,
projected cost savings from a planned quantum machine learning
model, IonQ’s quantum computing capabilities and plans, access to
IonQ’s quantum computers, increases in algorithmic qubit
achievement, the scalability and reliability of IonQ’s quantum
computing offerings, the anticipated components of IonQ’s quantum
computing offerings, and the delivery of IonQ’s services and
quantum computing offerings in the future. 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; changes in laws and regulations affecting
IonQ’s business; 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; and
risks associated with U.S. government sales, partnerships and
contracts, including changes in policy affecting the feasibility of
public-private partnerships and provisions that allow the
government to unilaterally terminate or modify contracts for
convenience and the uncertain scope and impact of a possible U.S.
government shutdown or operation under a continuing resolution. 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.
IonQ, Inc.
Consolidated Statements of
Operations
(unaudited)
(in thousands, except share and
per share data)
Three Months Ended December
31,
Year Ended December
31,
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— basic and diluted
$
(0.20
)
$
(0.09
)
$
(0.78
)
$
(0.25
)
Weighted average shares used in computing
net loss per share attributable to common stockholders—basic and
diluted
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 December
31,
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 December
31,
Year Ended December
31,
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
)
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IonQ Media Contact: press@ionq.com IonQ Investor Contact:
investors@ionq.com
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