PALO ALTO, Calif. - D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), a quantum computing technology company with a market capitalization of $1.37 billion, has reported a significant increase in bookings for fiscal year 2024, with figures surpassing $23 million, marking a 120% rise from the previous year. According to InvestingPro data, the company has shown strong momentum with a 621% return over the last year, despite recent market volatility. The company attributes this growth to the first customer purchase of its D-Wave Advantage annealing quantum computing system. This sale not only reflects a milestone for D-Wave but also signifies an expansion in the company's revenue model, as it now includes on-premise system sales in addition to its cloud services.
The D-Wave Advantage system, which boasts over 5,000 qubits and 15-way connectivity, represents a leap in annealing quantum technology adoption. The sale to an undisclosed customer allows for full access to the system, including customization of parameters and integration capabilities that were not previously available. D-Wave's on-premise quantum systems are gaining traction among research institutions, high-performance computing centers, and businesses, which see the technology as a means to enhance competitive differentiation, national security, and address challenges such as AI's increasing energy demands.
D-Wave ended the fourth quarter of fiscal year 2024 with bookings of at least $18 million, a substantial 500% increase over the $3 million in bookings for the same period in the previous year. The company also reported a record cash position of approximately $178 million at the end of 2024. Financial metrics from InvestingPro show the company maintains a healthy gross profit margin of 64.27% and has achieved revenue growth of 14.27% in the last twelve months, though analysts anticipate continued investment in growth over immediate profitability.
Dr. Alan Baratz, CEO of D-Wave, expressed confidence in the practical applications and value of the company's quantum systems. He emphasized D-Wave's role in the commercialization of quantum computing, contrasting it with competitors who are still in research and development phases.
D-Wave, headquartered in Palo Alto, California, with its Quantum Center of Excellence near Vancouver, Canada, is recognized as the first commercial supplier of quantum computers. The company builds both annealing and gate-model quantum computers and has provided its technology to various advanced organizations worldwide. For investors seeking deeper insights into D-Wave's potential, InvestingPro offers a comprehensive research report with detailed analysis of the company's financial health, market position, and growth prospects, along with 8 additional ProTips that could help inform investment decisions.
This article is based on a press release statement from D-Wave Quantum Inc.
In other recent news, D-Wave Quantum Inc. has been the focus of analyst attention, with both Benchmark and Craig-Hallum raising their stock targets. Benchmark cited potential sales acceleration and quantum market growth, while Craig-Hallum underscored potential in the quantum computing sector. Both firms maintained a Buy rating for D-Wave. The company has also successfully maintained its SOC 2 Type 2 compliance, emphasizing its commitment to customer data security.
Financially, D-Wave raised $175 million through equity offering programs, strengthening its financial position, and anticipates ending the fourth quarter of 2024 with at least $160 million in cash. However, the company reported a 27% decline in overall revenue to $1.9 million in its Q3 2024 earnings call, although its core Quantum Computing as a Service (QCaaS) segment saw a 41% increase.
In board-related news, D-Wave saw the resignation of Ziv Ehrenfeld and the strategic appointment of tech industry veteran Sharon Holt. These are recent developments in D-Wave's ongoing efforts to establish a strong presence in the quantum computing market.
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