Bessemer Venture Partners, a prominent investment firm, recently reduced its holdings in Rigetti Computing, Inc. (NASDAQ:RGTI) by selling shares worth approximately $1.08 million. The transactions occurred over two consecutive days, with sales executed at prices ranging from $1.56 to $1.63 per share.
On November 14, 2024, Bessemer Venture Partners X Institutional L.P. and Bessemer Venture Partners X L.P. sold a total of 580,125 shares at a weighted average price of $1.63. This transaction left BVP X Institutional holding 9,200,815 shares and BVP X holding 9,801,278 shares.
The following day, November 15, 2024, the two entities sold an additional 86,868 shares at a weighted average price of $1.56. After this sale, BVP X Institutional's holdings were reduced to 9,158,754 shares, while BVP X held 9,756,471 shares.
These transactions were executed indirectly through Deer X & Co. Ltd. and Deer X & Co. L.P., which serve as general partners for the Bessemer Venture Partners funds.
In other recent news, Rigetti Computing, Inc. reported its third-quarter earnings for 2024, revealing a drop in revenue from $3.1 million to $2.4 million and gross margins falling to 51%. However, the company's net loss improved, decreasing from $22.2 million to $14.8 million. Despite these financial hurdles, Rigetti has made significant advancements in quantum computing, with plans to introduce a 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025. The company is also collaborating with Riverlane and NVIDIA (NASDAQ:NVDA) to enhance quantum error correction and hybrid computing.
Rigetti's CEO, Dr. Subodh Kulkarni, expressed optimism about securing government contracts and the potential to participate in a $300 million DARPA project. He also highlighted the international opportunities in quantum computing, as nearly 20 countries are pursuing national quantum missions. These developments are part of Rigetti's broader strategy to secure a significant share in the projected $7.6 billion total addressable market over the next five years, primarily for on-premise quantum computers.
InvestingPro Insights
Recent data from InvestingPro sheds additional light on Rigetti Computing's financial situation and market performance, providing context to Bessemer Venture Partners' decision to reduce its stake.
According to InvestingPro data, Rigetti Computing's market capitalization stands at $271.14 million. The company's revenue for the last twelve months as of Q3 2023 was $11.89 million, with a concerning revenue decline of 19.06% over the same period. This decline in revenue aligns with an InvestingPro Tip indicating that Rigetti is "quickly burning through cash."
Despite the recent share sales by Bessemer Venture Partners, Rigetti's stock has shown strong performance in the short term. InvestingPro data reveals a 17.12% price return over the past month and an impressive 49.43% return over the last three months. This recent uptrend is reflected in an InvestingPro Tip noting a "strong return over the last three months."
However, potential investors should be cautious. Another InvestingPro Tip warns that the "stock generally trades with high price volatility," which is evident in the 12.75% price decline over the past week. Additionally, analysts do not anticipate the company to be profitable this year, which may explain Bessemer's decision to reduce its position.
For readers interested in a more comprehensive analysis, InvestingPro offers 8 additional tips for Rigetti Computing, providing a deeper understanding of the company's financial health and market position.
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