- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings, and welcome to IonQ's Inc.

Third Quarter 2022 Earnings Conference Call. [Operator Instructions]. I would now like to turn the conference over to your host, Jordan Shapiro. Thank you.

begin. may You

Jordan Shapiro

and Head Monroe, and By today's Call. have everyone, Kim, Officer; quarter Kramer, that am Chris refer IonQ's Quarter a on President which Technology to the Executive at Analysis Third Co-Founder Vice IonQ. Chief the issued here Good and am Co-Founder and by our I management on name Relations to welcome call, Chief Jungsang adjusted Peter financial today's third is EBITDA, our Dr. Earnings available release Investor Chief Dr. pleased website now, and and Planning My investors.ionq.com. Scientist; of joined section this I Thomas Investor Jordan XXXX Please and Chief Financial is our non-GAAP is will afternoon, Relations President at measure. our on XXXX company's afternoon, access note Officer. be earnings Financial to of call press Shapiro, should which Officer; the IonQ's and everyone to Chapman, of

this substitute financial information in While be believes not accordance in GAAP. to for as this information non-GAAP presentation financial company measure is intended information provides considered or isolation investors, for the the the a useful of with presented

release You a are to reconciliation to our for GAAP. directed press of such measures

in outlook recent and differ forward-looking statements. including a with make could mentioned our based predictions to of our These and or our of SEC. expectations filings as and During number business the today. discuss most uncertainties, due the we call, are on Actual those materially will risks results comments events

and to IonQ. over it of turn CEO Peter? will Peter Chapman, I President Now

Peter Chapman

where to public. excited into consistently our been public. stands computer performance you. available quarter, IonQ other To being outpaced and details to contextualize date, today the I'd start, Jordan. This with a like a after every of fantastic to quantum Thanks, year dive has But to system the I'm has

you'll we for hit to are technical our and winning today, As computing. approach hear quantum we milestones, that the believe we're continuing building

We and track technology for hit commercial meaningful are impact business on our all currently milestones our of customers translating to into XXXX. our for are

We also advantage in a have as the we competitive especially in which industry, balance this view quantum computing strong a sheet, market.

industry disciplined is our may having IonQ noticing are are clear. a managing for continuing increasingly are we The results costs, others back. IonQ to cash is talent to We to market have computing. noticing noticing, believe leading allows The are the While to place in and this quantum customers quantum we plan make while pull have the to and quantum be a clear computing accelerate technology. is governments ubiquitous noticing.

the supercomputers. is QX context, reducing Our the quantum to that that to results. rival market computers With win focus quantum space into for the time the best jump let's by race

another quarter so This was quarter record on many levels.

annual First, of puts a I'll a end and brings $XX number and $XX on third strong million to million. track $XX.X IonQ as financial $XX.X bookings the our We of of That recap. quarter firmly of bookings the new of million us to start achieve bookings. generated with million between

to revenue the As year-over-year million a prior $XXX,XXX compares $XX.X us on we to quarter, million. $XX XXXX year We in bookings in XX% result, of This the midpoint supports range hitting $XX.X recognized we growth the million. believe in revenue expect annual full-year our of period. based $X.X for which million

algorithmic public it XX XX in AQ had AQ on we announce before XXXX, in continued this financial a the of from story. growing progressing algorithmic over happy years I XX ago qubits, bookings to believe have our refer up of will or we to achieved map year, goal shows our More with which covers this discuss you AQ will would in very of am have year for our our goal an core road for The X for to published IonQ I XXXX. to only revenue a qubits December to map so public Thomas technical road success very ahead RIA the in announcement class of huge a microphone the milestone, turn hit are full progress technical us XX but our next, shout-out minutes lots AQ, growth This I map. importantly, at so, doing XX, machine. quarter. to continues technical road AQ X XXXX. to in a benchmark who year-over-year we for on set our not hitting XXXX, But and XX us the discuss our did few systems. strong the the schedule. in our team

know, of year power achievement time for in is you you increase XXX,XXX you times add As is latest an an of cloud. a double in algorithms. space an started the computational the with qubit, more power, which computational We the a X single available computational every on The algorithmic than year. running useful AQ

demonstrate behind quantum road useful is invest are time applications posting counts to technologies this show corner. to cubic be they'd benchmark over the We the higher believe much we continue customers. expertise resolves clear It they for develop the machine algorithmic is map, early AQ qubit that in believe other XX real in Occasionally, applications. when We Quantum field Quantum confused classical applications left believe quantum that is IonQ's. than which a just around now, computer to physical future. less critical how is leveling near hear providing the years milestone the hardware. companies and now, to advantage IonQ people will mere playing Quantum Based hardware takes quantum X from a to leading around learning X on our

every now in computer me to level. algorithmic I'd the avoidance of at other but level, So know be switch systems We've exceeding exciting focus clear. the of universal for our to of on gate news the like chip are systems Quantum covered doubt, we terms let qubits. IonQ down

of will Trap short. to for custom also line first of We The level chip IonQ or Today, Multilayer the I'm Glass a this multi-core and Trap follow route beyond our EGT a the wires develops technology our should of utilizes those going Last believe per EGT us an EGT MGT. custom know, the As cubics to the single across performance. higher called we count arrangement. or layer a of year, announce chips. next-generation happy our in Evaporated chip ushered unveiled custom-made hundreds chip chip unprecedented enable who Glass in capabilities to fit cubic

to and photonic for ion Additionally, PIC laser circuits we integrated offers compact technology to a trapped deliver light or way short, been that qubits. developing a have robust

increasing single we the qubits integrate received integration our devices. those This have our We number traps the chip. of cubic first future complexity quarter, PIK trap ion and batch goal We a of scale our this of reducing of plan with into size, believe system up on chip will us levels the to cost. while help ion per

as ion computer. side, I the to AFRL, In much scale to the our multi-part some Research MGT U.S. and to to of we cloud further in that efforts more sale compute had contract IonQ scaling architecture. another We Force milestones, announced single quarter. number million end QPUs We such to deliver we allow for trapped systems calls. constitute updates Air deliver into we greater and expect contract networking. as earnings will with a will to allow discussed qubits PICs this with components continue providing on where a an the to of us I a light had cutting-edge quantum full or not future system business our a Lab, fit robust commercial their more area that multiple look on this way incredible supply powerful September, our as our want even quantum research $XX.X in Back systems with forward will will to quantum compact ARL us physical we hardware chip our sale, we We unit. believe the processing clarify prior an on with does access

next number parties, to kicked a are QX. the we of the government This months. interested of project in with with one system sale continue and pursuing National the second to We IonQ of nature Laboratory. also with full Department that believe off in U.S. XX actively new a exciting Energy's Ridge a occur that could XX sales Oak

to researching focuses circuits provide break and cloud to We be in agreement support the new new new quantum as benchmark ORNL. chemistry on research for of physics IonQ aim to computational applications. ground a of interesting new Our applications well development discovery access applications. used will chemistry variety as

of the Dell's best and a system Dell to hybrid Our It Technologies. will to that is formed commercial quarter computing, world-class best the computing compute new With working now provider between forces, combined PowerEdge servers. this IonQ IonQ quantum Dell government. classical was workloads customers to with our success my pleasure offer seamlessly announce to limited to IonQ's a combining now and not trusted ability quantum this ARIA have of is partnership have the the hardware. quantum transition computing, solution, classical with

Beyond several new these with new and contracts several contracts, we've also renewed signed customers. existing our partnerships

algorithmic quarter financial will new We increasingly targets. IonQ also accessible road Azure we're cloud, range quarter, to IonQ's of our full-stack on that Azure in Quantum a powerful qubits the counts. about we This making for goal, with capacity more AQ ourselves We not ahead. XX momentum Microsoft delivering computing. quantum approach As put and be systems can on could access third an to added quantum up innovated be the Quantum of customers IonQ's picks and near was computer. on future. our IonQ's chips focused available thrilled most usable meaning our within to all commercial phenomenal This anyone striking steam, past account now hit a our

to a Thomas? Thomas we to the team the most We now complex hard I'd for well financials incredible of quantum committed problems. like run-through proud in the are out, of corporate this most powerful and as to work world's remain world's IonQ and the our on as to call turn solve for our computers day over day updates building initiatives.

Thomas Kramer

Peter. you, Thank

walk through in Now this financial detail. results more let's quarter's

mentioned, had above previously Peter excellent in quarter, As revenue, an which of is million $X.X we provided. midpoint outlook the recognizing we the

million expectation the puts to $XX the which million to exited on in hit million with $XX bookings $XX.X year-to-date, quarter also for year. stated between us We our full previously of track

be are phase, earnings our some we at to continue call to that expect commercialization comments my time. Given we I bookings beginning quite that of reiterate the want still to for from lumpy last our

Moving down statement. income to the

the QX XXX% break To year. our well this from XXXX, quarter $XX.X $XX.X third expenses within period, for in for further. year were down the million total the costs For but prior and million, plan operating up our

prior the Our period. $XX.X million, R&D year in third heavily were XXX% research and than anticipated investing building quarter we $X.X development costs given from in year. systems projected for and demand the previously Recall that are up more million this are

marketing were into our to efforts. costs in in increase year go-to-market million quarter we XX% Our our was up our growing $X.X sales investment million, $X from period. third and continue as due the function This the prior commercial us

Our a growth expense, in from general up in the This prior to were million, the million quarter third year prior million largely $X.X in the period. year $XX.X stock-based and $X.X $XXX,XXX compensation period. quarter was administrative to increase third is which in for XXX% the compared costs attributable

note million liabilities. include warrant EBITDA period. Note and a $XX quarter the the our $X.X for a related compared that to We of have the $XX.X net in in million of third a for the prior the of loss third in loss $XX of adjusted value prior loss year year to resulted this third in is quarter an results of million of we loss net a million the that of $XX.X loss projected of fair the million EBITDA for adjusted to saw period. noncash $X.X million year to important an a It $XX.X these compared announced million loss quarter loss year-to-date. All

the So we within well expect remain our year. plan for to

balance investments as our were sheet. XXth, to Cash, and September XXXX, equivalents million. now $XXX.X of cash Turning

to needing map. road reserves to to We our gives current profitability raise us this cash additional given continue to get funds without sufficient believe

to outlook. XXXX turning Now our full-year

We revenue and are be both for pleased the bookings outlook full to year maintaining our XXXX.

between of bookings $XX.X million, As $XX we and and between million. million $XX expect we revenue a $XX.X anticipate and million of reminder,

Having conditions, opportunity. our centers to seeing of Meanwhile, corporations to this retreated experiencing. we our as could the we alone investments as many million. report quantum XXXX. progress $XX.X IonQ quantum well stood for $XXX government quarter to are of achieved we from market, government a data companies we that driven exceed financial and we to has of capture factors and to we that projections. is financial at Back market increase from incredibly in industry in difficult with taking about year-to-date, the their continue so this much are U.S. and an compliant quantum try In currently more not for rapidly leader be headwinds context, of have down industry is million is DoD our supersede promising. strategy interest as we excited you, projections. exceeding their million We continues are continued The portion earlier earlier For currently state a growing We these contrast, to can market but commercial year-to-date growth market industry a governments. quantum to spending the in note the believe and be well-positioned becoming and our have the targets. Science to from of it's substantial is quantum expected happy and another actions making our as such Peter. financial booked this In commercial to continue existential the by for Quantum despite IonQ market with customers. the government global IonQ is as We, requested and technology whole. order computing meeting year, are investment by that a limits is estimates, imperative already space, support in we $XXX that what whole, Information that worth believe in pleased year like as a Overall, the

Peter Chapman

IonQ in track year-to-date, goals $XX.X on expectations once bookings financial with in our for We the Thank year. you, to shared us all full and Thomas. and have million we revenue market. the $X.X In summary, again, the is quarter meeting finished exceeding the putting million hit with

cash, capable ourselves need we to QX of milestone in we going $XXX.X vision. additional will To have ahead totaled year X runway of private groundbreaking sector. appreciate equivalents and the facing have agreements to despite technical currently executing XXXX provide furthered the XX IonQ Our us both the industry We turbulent of our signed which And core profitability ago. conditions consistently cash end sufficient tracking schedule. technology with are the and continue public the as achieved the your on who goals customers to solidify of been economic industry, and algorithmic us believe investments public to million, get years, We hope support since with ambitious pleased leader, we at just we to without for raise our qubits those continue you funds. with how our new

I'd take join waiting to operator IonQ open like So line story to and IonQ we those the that, to are to new continue of quantum who questions. the the with heights. been in, you have you the or to invite to new for And as dig industry we us have

Operator

[Operator Instructions].

Bolton from Company. with comes Quinn Needham & question first Our

Quinn Bolton

glass do increase to [Technical achieve? XXXX? qubit trap. count you What to XX% you'll be the multilayer is And to Difficulty] how target able algorithmic cubic getting for in that think by important the

Christopher Monroe

Monroe, Chris Scientist. Chief

as we qubits. qubits how get the fidelities to control well. more about more and make those get So all. chip. traps We them on architecture, ability will XX“ to We know to qubits. our have qubits higher on the We basically numbers, know control as and to call to It's multi-core us that. many us we it's glass how a zones give that will as the allow fidelity, need add single the to simple to a that algorithmic multiple how to -- And component qubits

give so And the us flexibility on much glass of the scaling more traps number qubits.

Quinn Bolton

to And hours. technology implement technology that I think is XX new Is the used also gates. that you involves at how -- probably PIC get to mentioned important in the the lasers that PIC

Christopher Monroe

in a line, the needed not company anticipate at effort the term, more this We further is it's needing not for the technology now. gains immediately. but PIC immediately but right research down short of

Operator

Williams David from Benchmark. comes with question next Our

David Williams

sheet maybe on But assets the about first all And progress. I of just doing. others some maybe on guess most progress components and or accelerate than can refreshing you about But to and to moving if others, be I everything if maybe I the direction. Thinking and receiving, congrats other and you're IP IP I other here, your balance something accelerate there that milestones. That's infrastructure Peter, although in. is be the terms may in landscape the technology would any out forward strength to to be think see. or your definitely I that's curious as bookings seeing I'm right And different, the guess in and bit that hitting interested a the jump anything that consolidate think, assume there you path could just or ways your you're beneficial would in is

Peter Chapman

aspects great we question. a fact, number There's are. of here. different in a And It's

First, now. for it's environment little start-ups a difficult right for sometimes

So that the that some started integration so of well. bargain, And provides gets itself. opportunities thing then some is to as vertical for we've speak. other in of the buying, And hardware terms

year to you So it about in hear the that. more expect next

David Williams

little my there the that you visualize in are may And Can any the to, increase a the around? means? obvious help talked what I from can to power. It's times you guess, about understand and put you Great. exactly Can algorithmic wrap the easier be XX then head metrics around maybe X Okay. qubits. you increase help XXX,XXX qubit on me hard that understand, -- me to or

Peter Chapman

how to about Maybe visualize Jungsang you or -- Chris, maybe talk that I talk could one. will

Jungsang Kim

that. can is help This Jungsang. I with Yes,

in meaning access the space how to classical power with this if to you will we memory, of of terms want classical that the much quantum during what the memory consider much computation, be computational get -- computing needed can more is how in quantum So space. way model is the We powerful, run actually algorithms, we actually And finish and access more algorithm and some benchmark our measured measure that as computation. large ability that is by computational qubit. capability to computers that exponentially being

you So as and or qubits deeper run complexity you with if need some complexity to memory X a to of XX XX of will computation amount about using would able course, of more do of algorithmic the actually quantum. classical of qubits And you to this simulate on means million qubit have of now be were algorithms XX be computers to running going computer, of space qubit and amount with can you're and the X.X actually algorithmic level do much times upon from that the with power -- that.

Operator

Instructions]. [Operator

comes from question next with Our Craig-Hallum. Richard Shannon

Richard Shannon

might a your be Lab make recognized end one there milestones that are lumpy? Or over at announced somewhat that specifically describe of on Force recognition recognition. is a ratable can revenue contract this Maybe Air time quick way and Research this Any what you you the could September.

Peter Chapman

Thomas, to that? take want do you

Thomas Kramer

can that. Absolutely, take I

So be is this access node, forward. build very will an a important that this X recognized ratably AFRL agreement, other One the is for entire a which industry there parts. years. network going contract, is which where And milestone-based. are be and will we're is helping multiple-element existing over And X

We come this on projections next call. back for the is QX will recognized with how year

Richard Shannon

Force with contract or I with Air I here. please? yours. follow-on other a Can interoperates also think caught what doing, think, that Labs, a I what company announced helpful. quantum another what the Research weeks a differentiate doing is maybe from versus you're If topic correctly, on question how is, they're this them Okay. That's few it And you after distinct company

Thomas Kramer

agreements, and So and have other we these this company. their with involved are separate agreement. not been very

Richard Shannon

will photonic previous to you here describe own a I what response us Okay. you something My you it's down give road that did up question the in one could detail? a PIC on that on first it said of your follow last question, the intersection in That point Or any here. silicon is map is twofold. a helpful. on PIC here, required? where the more want be to road sense my within is this PIC? then And Can

Jungsang Kim

our photonics Yes. Kim. products. This will to PIC I is exactly guide scope will think based technology. this in a Jungsang silicon are at this be in future And general, when answer, yes, position this point, The we not intersecting of be on, with

Richard Shannon

that on technology enough. Okay. jump your you've Chris, question, That's of line here both public using in we terms qubit Jungsang trap arrogate the fair since here. the last I'll -- just and over progress I'll My have year ask in been the the

I That's last that summarize founding here rates are for and can the technologies of otherwise, of rates markets better. other the and technologies thesis you've and be companies the your versions in out versus company and and all me. that public one over where if the is you research seen error think even would quote other Maybe their are play great. year

Christopher Monroe

not Maybe a I'll technology and we level error is Again, start at level, yet. there real quick. know Chris that expect we're Monroe Trap Ion that the we type with some at here. of

why So confidence what to qubit means in are not the electronics the road the the so we've on controllers. our are that all our of means means ability they map. is And quantum intrinsic us, time this the dominated such and had optics, by for all And execute itself, it technology, to forth. errors is that

don't we there's that can mitigate why means add step of error. Jungsang, to learned if . They're want year, you know air can to in that ways correction, last that not that scope we dictated of over inherent that And So errors. so-called we exploit They're are the the not we've types to you of there errors and by expand that? that decoherence. different types the And many certainly are

Jungsang Kim

Sure.

sources [Technical control had the -- to Difficulty]. the we at aero many those have deeper what colleagues understanding a techniques overcome research control think the I in University including dominant been in arena, inventing gained group also different my my research of actually much So really And are. and we've

Unidentified Company Representative

our speaker. lost we think I

Christopher Monroe

to this algorithmic think an And I'm make what I be one isolate AQ area, in aware Yes, question, I errors method the deploying in mitigation And correction scale we to But to, is that off. it's those such we at air another cancel is numbers research Jungsang's well because the our up. of fundamental errors mitigation. of they've been get of extent But know -- and that's because qubits. of level , can think air we sense, design, stepped atomic our the a that call And we able taking we we air as how care we they're know by never something themselves just out. your will errors they're did talk where And about by card clocks, yet those. to in we're errors. not to fundamental limited we're play Jungsang

forging continue few next along again, and to we years vein. the So we're expect that forward

Operator

with question Kevin WestPark Capital. next Our is Garrigan from

Kevin Garrigan

me noise. congrats the the airport apologize I progress. echo Let my on I'm for now. any background in

me. So one quick question for just

able capture were us can a with of your your how for? ion-trap partnership? Any be great. went Dell, and to future is you the conversations they what architecture? were with Dell give the color performance there is would for believe you that sense computing quantum looking how Regarding Or partnership they Do

Peter Chapman

that. Yes, I can help with

a own from with marketplace. that in in that typically Dell in HPC the leading lot systems. we've quantum This is seen quantum HPC is working particular, what Dell And supercomputing. hybrid, called player has think interest is I people who obviously, a been who of group,

us on interested we reached So solution. them in out be inquire they're a And would demand. working to if customer to to seeing work they with

together. exoscale a which Dell hybrid so, DOE Compute is in Also, between of 'XX the that, talking hardware Super and is for combination the ready year terms about and to been So the we've see roughly compute. back the this of compute week. working working get large focus between that the software after next would hybrid X go booth last forth the the supercomputers is to in is so on going software us the quantum what do marriage at the the to be you'll -- of of And this project. And us computers or

also industry for it's So for important government and area obviously forward. going an

Operator

question [indiscernible]. is from next Our

Unidentified Analyst

real on be Trevor He on system This But give the can system, likely be you being is for built? that And timeline on a jump. to quick, is Quinn the going will second this last had to us ARS finished? when Bolton. ARIA

Peter Chapman

will to your to ARIA I the it probably ARIA last of be quarter start end is first that. built. customer be roughly it Yes, also come the take can we ready And towards that one will After online. â€“ then be redundancy The system will both when second rather will technologies, next for and and the this, other system built we Forte be hit demand. able this

Unidentified Analyst

more Okay. to And just do all? that you for is expect fidelities the the at trap glass help Or scaling?

Peter Chapman

Jungsang, Chris that? or would you like take to

Christopher Monroe

the electrodes are away almost this atomically small system. a harks of the impact fraction atoms, itself, Yes, speaking. thing. the electrodes to that the back find individual performance atoms almost millimeter no again, atoms. very I on suspended they quantum can They're take trap that that, have the Chris, are here. No, miles we can The fact, advantage away don't -- of is a And the having of and in

And affect it directly. So being ease the about control, really able electrode qubit of not trains. having what performance don't like different that's I the the are directly levitated structures all think to here. we train It's of train, really tracks the have the of influencing magnetically

Unidentified Analyst

quick just did as last quarter? it one Did Harmony's like And Awesome. AQ well then increase one.

Peter Chapman

an up stays to It probably get would where but X, EQ Not need to it that's it that better. we today. no, of hardware modifications brought

Jordan Shapiro

over end Peter for to the closing read of the We've the Chapman question-and-answer turn session. like now to remarks. I'd call

Peter Chapman

quarter. out We'll obviously, talking be been forward just -- time. both to we and fantastic obviously today. will QX recognized Well, you for for bookings at And spring. the call everyone, our a the projections thanks, that to Appreciate believe, the on look year. successful. the everyone. your It's for the time revenue We close with look Thanks, in

Operator

This concludes today's conference.

your your you thank at lines this participation. time, and disconnect we for may You

IonQ (IONQ) 15 Nov 222022 Q3 Earnings call transcript