Q4 Revenue and FY Revenue up 21% and 22% Year
over Year Q4 Bookings and FY Bookings up 34% and 89% Year over Year
Expanding Gross Margins, Declining OpEx and Improving Net Loss and
Adjusted EBITDA
D-Wave Quantum Inc., (NYSE: QBTS) (“D-Wave” or the “Company”) a
leader in commercial quantum computing systems, software, and
services, today announced financial results for its fourth fiscal
quarter and year ended December 31, 2023.
“Our momentum is undeniable,” said Dr. Alan Baratz, CEO of
D-Wave. “From our commercial traction to substantive product
advancements, from our ground-breaking scientific milestones to new
strategic partnerships — we believe all these achievements are
propelling us forward to solidify D-Wave’s position as the
commercial quantum category builder and leader.”
Recent Business and Technical Highlights
- Bolstered the executive leadership team and Board of Directors
to drive rapid growth and deliver strategic execution with the
addition of Lorenzo Martinelli, Chief Revenue Officer, the
promotion of Dr. Trevor Lanting to Chief Development Officer, and
the addition of Secretary Kirstjen Nielsen, former Secretary of
Homeland Security, to the Board of Directors.
- Entered into a multi-year strategic collaboration with Zapata
AI to advance quantum-enabled machine learning, initially focused
on building quantum generative AI models that accelerate the
discovery of new materials and molecules.
- Progressed applications into production, with two customer
applications deployed (employee scheduling and driver delivery
scheduling) and additional customer applications nearing production
deployment for promotional tour routing and customer reward program
optimization.
- Launched the 1,200+ qubit Advantage2 prototype and made it
accessible in the Leap quantum cloud service, making the Company’s
most performant system available to customers. Built with a new
lower-noise fabrication stack, the Advantage2 prototype has 2x the
qubit coherence for faster time-to-solution and 40% energy scale
improvement to deliver higher-quality solutions.
- Worked with customers on a variety of quantum-hybrid
applications including cargo loading optimization, job shop
scheduling, building electrical grid optimization, customer rewards
optimization with Satispay, HVAC system design with VINCI Energies
and QuantumBasel, and aircraft network optimization with
SavantX.
- Signed a number of new and renewed customer engagements,
including agreements with Bridgestone Corp., Ford Otosan, Julich
Supercomputing Centre, Quantum Algorithms Institute, Qunova
Computing, SavantX and UKRI National Quantum Computing Centre.
- Launched a new go-to-market growth initiative designed to
increase sales and help move customer applications into production,
initially focused on key verticals including logistics,
manufacturing and government.
- Announced partnerships with NEC Australia and Deloitte Canada
to expedite the exploration and adoption of quantum computing
solutions among governments and businesses.
- Grew fourth quarter Bookings1 by 34% on a year-over-year basis,
representing the Company’s seventh consecutive quarter of
year-over-year growth in quarterly Bookings. For the fiscal year
ended December 31, 2023 ("fiscal 2023") Bookings totaled $11.5
million, an increase of $5.4 million, or 89% from the fiscal year
ended December 31, 2022 ("fiscal 2022") Bookings.
- First quarter FY24 Bookings expected to be at least $4.3
million representing a minimum 36% growth over the fourth quarter
of fiscal 2023, 47% growth over the first quarter of fiscal 2023
and representing the Company’s 8th consecutive quarter of
year-over-year growth in quarterly Bookings.
- Ended 2023 with $41.3 million in cash and approximately $82.1
million of equity issuance capacity available under the Company's
Equity Line of Credit.
Fourth Quarter Fiscal 2023 Financial Highlights
- Revenue: Revenue for the fourth quarter of fiscal 2023
was $2.9 million, an increase of $0.5 million, or 21%, from fiscal
2022 fourth quarter revenue of $2.4 million, and an increase of
$0.3 million, or 13%, from the fiscal 2023 third quarter revenue of
$2.6 million, representing D-Wave's third consecutive quarter of
sequential quarter-to-quarter growth in revenue.
- Bookings1: Bookings for the fourth quarter of fiscal
2023 were $3.1 million, an increase of $0.8 million, or 34%, from
fiscal 2022 fourth quarter Bookings of $2.4 million, and an
increase of $0.2 million, or 8%, from the fiscal 2023 third quarter
Bookings of $2.9 million, representing D-Wave’s seventh consecutive
quarter of year-over-year growth in quarterly Bookings.
- GAAP Gross Profit: GAAP gross profit for the fourth
quarter of fiscal 2023 was $2.0 million, an increase of $0.6
million, or 45%, from fiscal 2022 fourth quarter GAAP gross profit
of $1.4 million and an increase of $0.5 million, or 29%, from the
fiscal 2023 third quarter GAAP gross profit of $1.5 million. This
represents D-Wave's third consecutive quarter of sequential
quarter-to-quarter improvement in GAAP gross profit with the
increase due primarily to the growth in revenue.
- GAAP Gross Margin: GAAP gross margin for the fourth
quarter of fiscal 2023 was 67.7%, an increase of 10.8% from the
fiscal 2022 fourth quarter GAAP gross margin of 56.9%, and an
increase of 8.0% from the fiscal 2023 third quarter GAAP gross
margin of 59.7%, representing D-Wave's third consecutive quarter of
sequential quarter-to-quarter improvement in GAAP gross
margin.
- Non-GAAP Gross Profit2: Non-GAAP gross profit for the
fourth quarter of fiscal 2023 was $2.3 million, an increase of $0.6
million, or 34%, from fiscal 2022 fourth quarter Non-GAAP gross
profit of $1.7 million, and an increase of $0.4 million, or 20%,
from the immediately preceding fiscal 2023 third quarter Non-GAAP
gross profit of $1.9 million. This represents the third consecutive
quarter of sequential quarter-to-quarter improvement in Non-GAAP
gross profit with the increase due primarily to the growth in
revenue. The difference between GAAP and Non-GAAP gross profit is
limited to non-cash stock-based compensation and depreciation
expenses that are excluded from Non-GAAP gross profit.
- Non-GAAP Gross Margin2: Non-GAAP gross margin for the
fourth quarter of fiscal 2023 was 80.2%, an increase of 7.6% from
the fiscal 2022 fourth quarter Non-GAAP gross margin of 72.6%, and
an increase of 4.6% from the fiscal 2023 third quarter Non-GAAP
gross margin of 75.6%. This represents D-Wave's third consecutive
quarter of sequential quarter-to-quarter improvement in Non-GAAP
gross margin with the increase due primarily to higher revenue. The
difference between GAAP and Non-GAAP gross margin is limited to
non-cash stock-based compensation and depreciation expenses that
are excluded from the Non-GAAP gross margin.
- GAAP Operating Expenses: GAAP operating expenses for the
fourth quarter of fiscal 2023 were $18.5 million, a decrease of
$3.8 million, or 17%, from the fiscal 2022 fourth quarter GAAP
operating expenses of $22.3 million, and a decrease of $1.4
million, or 7%, from the fiscal 2023 third quarter GAAP operating
expenses of $19.9 million. This represents D-Wave's third
consecutive quarter of sequential quarter to quarter decrease in
GAAP operating expenses with the decrease driven primarily by lower
non-cash stock-based compensation expenses.
- Non-GAAP Adjusted Operating Expense2: Non-GAAP adjusted
operating expenses for the fourth quarter of fiscal 2023 were $13.2
million, a decrease of $2.7 million, or 17%, from the fiscal 2022
fourth quarter Non-GAAP adjusted operating expenses of $15.9
million and a decrease of $0.3 million, or 2%, from the fiscal 2023
third quarter Non-GAAP adjusted operating expenses of $13.5
million, representing D-Wave's third consecutive quarter of
sequential quarter-to quarter decrease in Non-GAAP adjusted
operating expenses. The difference between GAAP and Non-GAAP
adjusted operating expenses is limited to non-cash stock-based
compensation and depreciation expenses that are excluded from the
Non-GAAP adjusted operating expenses.
- Net Loss: Net Loss for the fourth quarter of fiscal 2023
was $16.0 million, or $0.10 per share, a decrease of $2.2 million,
or 12%, from the fiscal 2022 fourth quarter net loss of $18.2
million, and a decrease of $0.1 million, or 1%, from the fiscal
2023 third quarter net loss of $16.1 million, representing D-Wave's
second consecutive quarter of sequential quarter-to-quarter
improvement in net loss with the improvement driven by higher gross
profit in combination with lower operating expenses.
- Adjusted EBITDA Loss2: Adjusted EBITDA loss for the
fourth quarter of fiscal 2023 was $10.9 million, a decrease of $3.5
million, or 24%, from the fiscal 2022 fourth quarter adjusted
EBITDA loss of $14.4 million, and a decrease of $0.7 million, or
6%, from the immediately preceding fiscal 2023 third quarter
adjusted EBITDA loss of $11.6 million, representing the third
consecutive quarter of sequential quarter-to-quarter improvement in
adjusted EBITDA loss.
Financial Results for the Fiscal Year 2023
- Revenue: Revenue for fiscal 2023 was $8.8 million, an
increase of $1.6 million, or 22%, from revenue of $7.2 million in
fiscal 2022.
- Customers: In comparing fiscal 2023 with fiscal 2022,
D-Wave had:
- A total of 133 customers compared with a total of 120
customers;
- 78 commercial customers compared with 74 commercial customers;
and
- 27 Forbes Global 2000 customers compared with 24 Forbes Global
2000 customers.
- Commercial Traction: In comparing fiscal 2023 with
fiscal 2022:
- Revenue from commercial customers increased by $1.8 million, or
41%;
- Commercial revenue as a percentage of total revenue increased
from 60% to 70%:
- Revenue from Forbes Global 2000 customers increased by $0.4
million, or 20% and comprised 26.1% of total revenue.
- Bookings1: Fiscal 2023 Bookings were $11.5 million, an
increase of $5.4 million, or 89%, from fiscal 2022 Bookings of $6.1
million.
- GAAP Gross Profit: Fiscal 2023 GAAP gross profit was
$4.6 million, an increase of $0.4 million, or 9%, from fiscal 2022
GAAP gross profit of $4.3 million with the improvement due
primarily to higher revenue.
- GAAP Gross Margin: Fiscal 2023 GAAP gross margin was
52.8%, a decrease of 6.5% from fiscal 2022 GAAP gross margin of
59.2% with the decrease due primarily to higher non-cash,
stock-based compensation expenses in fiscal 2023 cost of sales when
compared to fiscal 2022 cost of sales.
- Non-GAAP Gross Profit2: Fiscal 2023 Non-GAAP gross
profit was $6.1 million, an increase of $1.3 million, or 27%, from
fiscal 2022 Non-GAAP gross profit of $4.8 million with the
improvement due primarily to higher revenue.
- Non-GAAP Gross Margin2: Fiscal 2023 Non-GAAP gross
margin was 69.8%, an increase of 2.5% from fiscal 2022 Non-GAAP
gross margin of 67.3% The difference between GAAP and Non-GAAP
gross profit and margin is limited to non-cash stock-based
compensation and depreciation expenses that are excluded from the
Non-GAAP gross profit and margin.
- GAAP Operating Expenses: Fiscal 2023 GAAP operating
expenses were $85.2 million compared with fiscal 2022 GAAP
operating expenses of $63.7 million with the $21.5 million
year-over-year increase comprised of $11.5 million in non-cash,
stock-based compensation expense, $5.3 million in public company
related costs, $3.4 million in salaries and other personnel related
costs and $1.5 million in research and development fabrication
costs.
- Non-GAAP Adjusted Operating Expense2: Fiscal 2023
Non-GAAP adjusted operating expenses were $60.4 million, an
increase of $8.0 million, or 15% from fiscal 2022 Non-GAAP adjusted
operating expenses of $52.4 million with the increase primarily
comprised of $3.4 million in personnel related costs, $2.8 million
in public company related costs and $1.5 million in research and
development fabrication costs. The difference between GAAP and
Non-GAAP adjusted operating expenses being primarily non-cash
stock-based compensation expense, non-recurring one-time expenses,
and amortization and depreciation expense.
- Net Loss: Fiscal 2023 net loss was $82.7 million, or
$0.60 per share, compared with fiscal 2022 net loss of $53.7
million, or $0.45 per share.
- Adjusted EBITDA Loss2: Fiscal 2023 adjusted EBITDA loss
was $54.3 million, compared with $48.0 million in fiscal 2022, with
the increase due primarily to higher public company and
headcount-related expenses.
Balance Sheet and Liquidity
As of December 31, 2023, D-Wave’s consolidated cash balance
totaled $41.3 million, an increase of $34.2 million, or 485%, from
the December 31, 2022 consolidated cash balance of $7.1
million.
During fiscal 2023, D-Wave raised $98.1 million in capital,
including $66.1 million in equity, primarily under the Company’s
common stock purchase agreement (“Equity Line of Credit” or “ELOC”)
with Lincoln Park Capital Fund, LLC (“Lincoln Park”), and $32.0
million in debt, primarily under the Company’s $50 million
four-year term loan agreement with PSPIB Unitas Investments II
Inc., an affiliate of PSP Investments. As of December 31, 2023,
D-Wave has $82.1 million in remaining capacity under the Lincoln
Park ELOC commitment that terminates in October 2025. D-Wave’s
ability to raise funds under the ELOC is subject to a number of
conditions including having a sufficient number of registered
shares and having D-Wave’s stock price above $1.00 per share.
Fiscal Year 2024 and Q1 Outlook
Based on the information available on March 27, 2024, guidance
for the full year 2024 and the first quarter is as follows and our
guidance is subject to various cautionary factors described
below:
Adjusted EBITDA Loss
- We expect fiscal 2024 Adjusted EBITDA Loss3 to be less than the
fiscal 2023 Adjusted EBITDA Loss of $54.3 million.
Bookings
- We expect fiscal 2024 first quarter bookings to be at least
$4.3 million.
___________________
1“Bookings” is an operating metric that is
defined as customer orders received that are expected to generate
net revenues in the future. We present the operational metric of
Bookings because it reflects customers' demand for our products and
services and to assist readers in analyzing our potential
performance in future periods.
2“Non-GAAP Gross Profit”, “Non-GAAP Gross
Margin”, “Non-GAAP Adjusted Operating Expenses”, and “Adjusted
EBITDA Loss”, are non-GAAP financial measures or metrics. Please
see the discussion in the section “Non-GAAP Financial Measures” and
the reconciliations included at the end of this press release.
3We are not able to reconcile guidance for
Adjusted EBITDA Loss to its most directly comparable GAAP measure,
Net Loss, and cannot provide an estimated range of net loss for
such period without unreasonable efforts because certain items that
impact Net Loss, including foreign exchange and the fair value of
warrant liabilities, are not within our control or cannot be
reasonably predicted.
Earnings Conference Call
In conjunction with this announcement, D-Wave will host a
conference call on Thursday, March 28, 2024, at 8:00 a.m. (Eastern
Time), to discuss the Company’s financial results and business
outlook. The live dial-in number is 1-800-267-6316 (domestic) or
1-203-518-9783 (international). The Conference ID is "D-Wave."
Participating in the call on behalf of the Company will be Chief
Executive Officer Alan Baratz and Chief Financial Officer John
Markovich.
About D-Wave Quantum Inc.
D-Wave is a leader in the development and delivery of quantum
computing systems, software, and services, and is the world’s first
commercial supplier of quantum computers. Our mission is to unlock
the power of quantum computing today to benefit business and
society. We do this by delivering customer value with practical
quantum applications for problems as diverse as logistics,
artificial intelligence, materials sciences, drug discovery,
scheduling, cybersecurity, fault detection, and financial modeling.
D-Wave’s technology has been used by some of the world’s most
advanced organizations, including Mastercard, Deloitte, Davidson
Technologies, ArcelorMittal, Siemens Healthineers, Unisys, NEC
Corporation, Pattison Food Group Ltd., DENSO, Lockheed Martin,
Forschungszentrum Jülich, University of Southern California, and
Los Alamos National Laboratory.
Non-GAAP Financial Measures
To supplement the financial information presented in accordance
with GAAP, we use non-GAAP measures of certain components of
financial performance. Each of non-GAAP gross profit, non-GAAP
gross margin, Adjusted EBITDA and non-GAAP adjusted operating
expenses is a financial measure that is not required by or
presented in accordance with GAAP. Management believes that each
measure provides investors an additional meaningful method to
evaluate certain aspects of such results period over period. The
Company defines each of its non-GAAP financial measures as
follows:
- Non-GAAP gross profit is defined as GAAP Gross Profit less
non-cash stock-based compensation expense. We use non-GAAP gross
profit to measure, understand and evaluate our core operating
performance and trends and to develop short-term and long-term
operating plans.
- Non-GAAP gross margin is defined as GAAP Gross Margin less
non-cash stock-based compensation expense. We use non-GAAP gross
margin to measure, understand and evaluate our core business
performance.
- Adjusted EBITDA is defined as net loss before interest expense,
income tax expense (benefit), depreciation and amortization
expense, stock-based compensation, remeasurements of
liability-classified warrants, and other non-recurring
non-operating income and expenses. We use Adjusted EBITDA to
measure the operating performance of our business, excluding
specifically identified items that we do not believe directly
reflect our core operations and may not be indicative of our
recurring operations.
- Non-GAAP Adjusted operating expenses is defined as operating
expenses before depreciation and amortization expense,
non-recurring one-time expense and non-cash stock-based
compensation expense. We use non-GAAP adjusted operating expenses
to measure our operating expenses, excluding items we do not
believe directly reflect our core 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 our presentation of
non-GAAP measures may be different from non-GAAP measures used by
other companies. For a reconciliation of non-GAAP gross profit,
non-GAAP gross margin, Adjusted EBITDA and non-GAAP adjusted
operating expenses to its most directly comparable GAAP measure,
please refer to the reconciliations below.
Forward-Looking Statements
Certain statements in this press release are forward-looking, as
defined in the Private Securities Litigation Reform Act of 1995.
These statements involve risks, uncertainties, and other factors
that may cause actual results to differ materially from the
information expressed or implied by these forward-looking
statements and may not be indicative of future results.
Forward-looking statements in this press release include, but are
not limited to, statements regarding full-year 2024 guidance. These
forward-looking statements are subject to a number of risks and
uncertainties, including, among others, various factors beyond
management’s control, including; our ability to raise funds under
the ELOC or meet the conditions necessary to draw on the third
tranche of the PSP Loan; general economic conditions and other
risks; our ability to maintain and expand our customer base and the
customer adoption of our solutions; risks within D-Wave’s industry,
including anticipated trends, growth rates, and challenges for
companies engaged in the business of quantum computing and the
markets in which they operate; the outcome of any legal proceedings
that may be instituted against us; risks related to the performance
of our business and the timing of expected business or financial
milestones; unanticipated technological or project development
challenges, including with respect to the cost and/or timing
thereof; the performance of our products; like our hybrid solvers
and software like “zero downtime deployment”; the effects of
competition on our business; the risk that we will need to raise
additional capital to execute our business plan, which may not be
available on acceptable terms or at all; the risk that we may never
achieve or sustain profitability; the risk that we are unable to
secure or protect our intellectual property; volatility in the
price of our securities; the risk that our securities will not
maintain the listing on the NYSE; and the numerous other factors
set forth in D-Wave’s Annual Report on Form 10-K/A for its fiscal
year ended December 31, 2022 filed on March 18, 2024, as may be
supplemented or amended by the Company's other SEC filings,
including the Form 10-K for year ended December 31, 2023 expected
to be filed today. Any such forward-looking statements represent
management’s estimates as of the date of this press release. Undue
reliance should not be placed on the forward-looking statements in
this press release in making an investment decision, which are
based on information available to us on the date hereof. We
undertake no duty to update this information unless required by
law.
D-Wave Quantum Inc.
Consolidated Balance
Sheets
December 31,
December 31,
(In thousands, except share and per share
data)
2023
2022
(Unaudited)
Assets
Current assets:
Cash
$
41,307
$
7,065
Trade accounts receivable, net
1,652
757
Research incentive receivable
—
264
Inventories
2,078
2,196
Prepaid expenses and other current
assets
2,009
3,643
Total current assets
47,046
13,925
Property and equipment, net
2,551
2,294
Operating lease right-of-use assets
8,223
9,133
Intangible assets, net
179
244
Other non-current assets
1,357
1,351
Total assets
$
59,356
$
26,947
Liabilities and stockholders'
deficit
Current liabilities:
Trade accounts payable
$
1,465
$
3,756
Accrued expenses and other current
liabilities
5,343
6,687
Current portion of operating lease
liabilities
1,374
1,533
Loans payable, net, current
399
1,863
Deferred revenue, current
2,669
1,781
Promissory notes - related party
—
420
Total current liabilities
11,250
16,040
Warrant liabilities
1,630
1,892
Operating lease liabilities, net of
current portion
7,028
7,301
Loans payable, net, non-current (including
$31,400 and $— as of December 31, 2023 and 2022, respectively, at
fair value)
63,850
31,168
Deferred revenue, non-current
79
9
Total liabilities
$
83,837
$
56,410
Commitments and contingencies
Stockholders' deficit:
Common stock, par value $0.0001 per share;
675,000,000 shares and unlimited shares authorized at December 31,
2023 and December 31, 2022, respectively; 161,113,744 shares and
113,335,530 shares issued and outstanding as of December 31, 2023
and December 31, 2022, respectively.
16
11
Additional paid-in capital
469,081
381,274
Accumulated deficit
(483,061
)
(400,346
)
Accumulated other comprehensive loss
(10,517
)
(10,402
)
Total stockholders' deficit
(24,481
)
(29,463
)
Total liabilities and stockholders’
deficit
$
59,356
$
26,947
D-Wave Quantum Inc.
Consolidated Statements of
Operations and Comprehensive Loss
Three Months Ended December
31,
Year ended December
31,
(In thousands, except share and per share
data)
2023
2022
2023
2022
(Unaudited)
(Unaudited)
(Unaudited)
Revenue
$
2,906
$
2,394
$
8,758
$
7,173
Cost of revenue
939
1,033
4,136
2,923
Total gross profit
1,967
1,361
4,622
4,250
Operating expenses:
Research and development
7,956
10,336
37,878
32,101
General and administrative
8,139
8,009
37,014
21,539
Sales and marketing
2,414
3,956
10,276
10,068
Total operating expenses
18,509
22,301
85,168
63,708
Loss from operations
(16,542
)
(20,940
)
(80,546
)
(59,458
)
Other income (expense), net:
Interest income (expense)
1,785
(598
)
(37
)
(2,335
)
Change in fair value of Term Loan
(716
)
640
—
Term Loan debt issuance costs
—
(2,118
)
—
Change in fair value of warrant
liabilities
341
3,570
262
6,173
Lincoln Park Purchase Agreement issuance
costs
—
—
(629
)
Other income (expense), net
(882
)
(234
)
(916
)
2,547
Total other income (expense), net
528
2,738
(2,169
)
5,756
Net loss
$
(16,014
)
$
(18,202
)
$
(82,715
)
$
(53,702
)
Net loss per share, basic and diluted
$
(0.10
)
$
(0.15
)
$
(0.60
)
$
(0.45
)
Weighted-average shares * used in
computing net loss per share, basic and diluted
158,869,112
120,610,855
137,993,736
119,647,777
Comprehensive loss:
Net loss
$
(16,014
)
$
(18,202
)
$
(82,715
)
$
(53,702
)
Foreign currency translation adjustment,
net of tax
(45
)
23
(115
)
41
Net comprehensive loss
$
(16,059
)
$
(18,179
)
$
(82,830
)
$
(53,661
)
* Weighted-average shares have been
retroactively restated to give effect to the Merger.
D-Wave Quantum Inc.
Consolidated Statements of
Cash Flows
Year ended December
31,
(in thousands)
2023
2022
(Unaudited)
Cash flows from operating
activities:
Net loss
$
(82,715
)
$
(53,702
)
Adjustments to reconcile net loss to
cash used in operating activities:
Depreciation and amortization
1,054
1,423
Allowance for doubtful accounts
—
1
Stock-based compensation
21,919
9,164
Amortization of operating right-of-use
assets
791
910
Provision for excess and obsolete
inventory
32
66
Non-cash interest (income) expense
(78
)
185
Venture Loan interest and final payment
fee
—
1,808
Amortization of Venture Loan commitment
fee
—
(175
)
Non-cash Lincoln Park Purchase Agreement
issuance costs
—
629
Change in fair value of Warrant
liabilities
(262
)
(6,173
)
Change in fair value of Term Loan
(640
)
—
Debt issuance costs expensed for loans
recorded under the fair value option
993
—
Unrealized foreign exchange loss
(gain)
955
(2,459
)
Realized loss on issuance of shares under
the Lincoln Park Purchase Agreement
—
75
Change in operating assets and
liabilities:
Trade accounts receivable
(818
)
(337
)
Research incentives receivable
264
1,332
Inventories
(237
)
(148
)
Prepaid expenses and other current
assets
1,636
(387
)
Trade accounts payable
(2,614
)
3,597
Accrued expenses and other current
liabilities
(1,374
)
715
Deferred revenue
958
(929
)
Operating lease liability
(510
)
(821
)
Other non-current assets
(3
)
—
Net cash used in operating
activities
(60,649
)
(45,226
)
Cash flows from investing
activities:
Purchase of property and equipment
(583
)
(423
)
Purchase of software
(47
)
(75
)
Net cash used in investing
activities
(630
)
(498
)
Cash flows from financing
activities:
Merger, net of redemption and transaction
costs (Note 3)
—
4,100
Transaction costs paid directly by D-Wave
Systems
—
(6,528
)
Proceeds from issuance of common stock
from the PIPE investment (Note 3)
—
40,000
Proceeds from exercise of Public
Warrants
—
924
Proceeds from Lincoln Park Purchase
Agreement
63,676
4,250
Proceeds from issuance of common stock
upon exercise of stock options
1,897
1,077
Proceeds from common stock issued under
the Employee Stock Purchase Plan
491
—
Payment of tax withheld for common stock
issued under stock-based compensation plans
(416
)
—
Short swing profit settlement
244
—
Proceeds from debt financing
29,007
20,000
Proceeds from government assistance
2,996
3,159
Government loan payment
(374
)
(398
)
Repayment of promissory notes - related
party
(420
)
—
Debt payments
(1,465
)
(21,511
)
Venture Loan interest and final payment
fee
—
(1,808
)
Net cash provided by financing
activities
95,636
43,265
Effect of exchange rate changes on cash
and cash equivalents
(115
)
41
Net (decrease) increase in cash and cash
equivalents
34,242
(2,418
)
Cash and cash equivalents at beginning of
period
7,065
9,483
Cash and cash equivalents at end of
period
$
41,307
$
7,065
D-Wave Quantum Inc.
Reconciliation of Gross Profit
to Non-GAAP Gross Profit
For the Three Months &
Year Ended December 31, 2023 and 2022
For the three months ended
September 30,
Three Months Ended December
31,
Years ended December
31,
(in thousands of U.S. dollars)
2023
2022
2023
2022
2023
2022
Gross Profit
$
1,529
$
1,041
$
1,967
$
1,361
$
4,622
$
4,250
Gross Margin
59.7
%
61.4
%
67.7
%
56.9
%
52.8
%
59.2
%
Excluding:
Depreciation and Amortization (1)
54
40
54
78
218
199
Stock-based compensation (2)
353
45
310
299
1,272
379
Non-GAAP Gross Profit
1,936
1,126
$
2,331
$
1,738
$
6,112
$
4,828
Non-GAAP Gross Margin
75.6
%
66.4
%
80.2
%
72.6
%
69.8
%
67.3
%
(1)
Depreciation and Amortization reflects the
Depreciation and Amortization record in Cost of Revenue only, which
differs from the total Depreciation and Amortization set forth in
the Condensed Consolidated Statement of Cash Flows that also
includes Depreciation and Amortization recorded in Operating
Expenses.
(2)
Stock based compensation reflects the
stock based compensation recorded in Cost of Revenue only, which
differs from the total stock based compensation set forth in the
Condensed Consolidated Statement of Cash flows that also includes
stock based compensation recorded in Operating Expenses.
D-Wave Quantum Inc.
Reconciliation of Operating
Expenses to Non-GAAP Operating Expenses
For the Three Months &
Year Ended December 31, 2023 and 2022
For the three months ended
September 30,
Three Months Ended December
31,
Year Ended December 31,
2023
(in thousands of U.S. dollars)
2023
2022
2023
2022
2023
2022
Operating expenses
$
19,936
$
16,205
$
18,509
$
22,301
$
85,168
$
63,708
Excluding:
Depreciation and Amortization (1)
173
296
153
220
817
1,258
Stock-based compensation (2)
5,531
1,736
4,248
5,809
20,647
9,164
Non-recurring one time expenses (3)
714
-
882
387
3,278
843
Non-GAAP Operating Expenses
$
13,518
$
14,173
$
13,227
$
15,885
$
60,426
$
52,443
(1)
Depreciation and Amortization reflects the
Depreciation and Amortization record in the Operating Expenses
only, which differs from the total Depreciation and Amortization
set forth in the Condensed Consolidated Statement of Cash Flows
that also includes Depreciation and Amortization recorded in Cost
of Revenue.
(2)
Stock based compensation reflects the
stock based compensation recorded in Operating Expenses only, which
differs from the total stock based compensation set forth in the
Condensed Consolidated Statement of Cash flows that also includes
stock based compensation recorded in Cost of Revenue.
(3)
Non-recurring legal, consulting, and
accounting fees related to capital markets activities.
D-Wave Quantum Inc.
Reconciliation of Net Loss to
Adjusted EBITDA
For the Three Months &
Year Ended December 31, 2023 and 2022
For the three months ended
September 30,
Three Months Ended December
31,
Year Ended December 31,
2023
(in thousands of U.S. dollars)
2023
2022
2023
2022
2023
2022
Net loss
$
(16,106
)
$
(11,650
)
$
(16,014
)
$
(18,202
)
$
(82,715
)
$
(53,702
)
Excluding:
Depreciation and Amortization
227
336
207
385
1,035
1,423
Stock-based compensation
5,884
1,781
4,557
5,809
21,919
9,164
Interest (income) expense (1)
1,035
633
(1,785
)
598
37
2,335
Change in fair value of warrant
liabilities
(1,433
)
(2,603
)
(341
)
(3,570
)
(262
)
(6,173
)
Change in fair value of Term Loan
(1,701
)
—
716
—
(640
)
—
Term Loan debt issuance costs
725
—
—
—
2,118
—
Lincoln Park Purchase Agreement issuance
costs
—
629
—
—
—
629
Other (income) expense, net (2)
(927
)
(2,173
)
882
234
916
(2,547
)
Non-recurring one time expenses (3)
714
-
882
387
3,278
843
Adjusted EBITDA
$
(11,582
)
$
(13,047
)
$
(10,896
)
$
(14,359
)
$
(54,314
)
$
(48,028
)
(1)
Interest expense primarily reflects the
accrued interest associated with the below market interest rate
government loans as if they were interest-bearing at market rates
of interest, the paid-in-kind interest associated with the term
loan agreement with PSPIB Unitas Investments II Inc. entered into
on April 13, 2023, interest and adjustments to accrued interest on
the SIF Loan, and the interest and amortization of the final fee
associated with the Venture Loan with PSPIB Unitas Investments II
Inc. that was entered into on March 3, 2022.
(2)
Other income (expense), net consists
primarily of foreign exchange gains and losses.
(3)
Non-recurring legal, consulting, and
accounting fees related to capital markets activities.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240328387732/en/
Investor Contact: Kevin Hunt ir@dwavesys.com
Media Contact: Alex Daigle media@dwavesys.com
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