Bessemer Venture Partners, through its entities Bessemer Venture Partners X Institutional L.P. and Bessemer Venture Partners X L.P., recently sold a significant portion of its holdings in Rigetti Computing, Inc. (NASDAQ:RGTI). The transactions, which took place on November 8 and November 11, 2024, involved the sale of a total of 1,999,000 shares of Rigetti's common stock, amounting to approximately $3.04 million.
On November 8, Bessemer Venture Partners X Institutional L.P. and Bessemer Venture Partners X L.P. sold 345,663 and 368,223 shares, respectively, at a weighted average price of $1.52 per share. These shares were sold in multiple transactions with prices ranging from $1.45 to $1.55.
Following this, on November 11, the two entities sold an additional 622,736 and 663,885 shares, respectively, at a weighted average price of $1.50 per share. These transactions also occurred in multiple trades, with prices ranging from $1.43 to $1.53.
After these sales, Bessemer Venture Partners X Institutional L.P. holds 9,481,711 shares, and Bessemer Venture Partners X L.P. holds 10,100,507 shares of Rigetti Computing's common stock. Deer X & Co. Ltd. and Deer X & Co. L.P., which are associated with Bessemer Venture Partners, disclaim beneficial ownership of the securities held by the funds, except to the extent of their pecuniary interest.
In other recent news, Rigetti Computing, Inc. reported its third-quarter earnings for 2024, revealing a decrease in revenue to $2.4 million from $3.1 million in the same period the previous year, and a net loss of $14.8 million, which is, however, an improvement from the prior year's $22.2 million loss. Despite these financial hurdles, the company has made significant progress in quantum computing technology, with plans to introduce a 36-qubit system by mid-2025 and a system with over 100 qubits by the end of 2025. Collaborations with Riverlane and NVIDIA (NASDAQ:NVDA) are central to Rigetti's strategy for quantum error correction and hybrid computing.
These recent developments also include the company's focus on securing government contracts and optimism about the National Quantum (NASDAQ:QMCO) Initiative Reauthorization Act. The company is targeting the delivery of its 84-qubit Ankaa 3 system by the end of 2024, and the total addressable market for on-premise quantum computers is projected to be $7.6 billion over the next five years. Rigetti's advancements in hardware and practical applications are attracting interest from both government and commercial sectors internationally. The company's financial position remains stable, with sufficient cash to support operations through early 2026.
InvestingPro Insights
The recent stock sales by Bessemer Venture Partners come at a time when Rigetti Computing (NASDAQ:RGTI) is experiencing significant market volatility and financial challenges. According to InvestingPro data, Rigetti's stock has shown strong returns over the past week (24.17%) and month (82.51%), which may have influenced the timing of these transactions.
Despite the recent stock performance, InvestingPro Tips highlight that Rigetti is "quickly burning through cash" and is "not profitable over the last twelve months." This aligns with the company's financial metrics, including a negative operating income of $66.71 million and a gross profit margin of 65.59% for the last twelve months as of Q2 2024.
Interestingly, while the company faces profitability challenges, it "holds more cash than debt on its balance sheet," and "liquid assets exceed short term obligations," according to InvestingPro Tips. This suggests that Rigetti maintains a relatively strong liquidity position despite its operational losses.
For investors seeking a more comprehensive analysis, InvestingPro offers 12 additional tips for Rigetti Computing, providing a deeper understanding of the company's financial health and market position. These insights could be particularly valuable given the stock's recent volatility and the significant insider sales reported in the article.
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