IONQ - Earnings call 4 2023

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Operator

Greetings and welcome to the IonQ Fourth Quarter and Full Year 2023 Earnings Call. [Operator Instructions] As a reminder, this conference is being recorded.I'd now like to turn the conference over to your host, Jordan Shapiro. Thank you, and you may proceed.

Jordan Shapiro

Good afternoon, everyone, and welcome to IonQ's fourth quarter and full year 2023 earnings call. My name is Jordan Shapiro, and I'm the Vice President of Financial Planning and Analysis and Head of Investor Relations here at IonQ. section company's Officer; this of be Chapman, today's year Executive well XXXX IonQ's Kramer, Chief the to Seattle, release here issued afternoon, should Officer; as note is today's pleased full Vice Investor website that Development.By our have EBITDA, Peter our now, Vice financial by earnings President Financial Research call, refer Pat am Tang, joined Engineering President call, on our in and Thomas President is Relations access at investors.ionq.com.Please management measure. our fourth quarter I of a non-GAAP to Kassmann, of to as on which the and Dean which available and on press adjusted Chief will everyone

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

any it with Peter? Peter of are except we our I You closest of will the are statements. reflect on a to call, filed We IonQ's press measure.During by comments reconciliation uncertainties, expectations a and over SEC law.Now the our after or business to GAAP statements to CEO, have comparable including to occur risks we today. due revise for call, adjusted and no XX-K These required number release those mentioned turn changes EBITDA Chapman. that today. materially discuss and in as this undertake that of obligation Actual to make its our based outlook could forward-looking to as events results predictions will directed our differ

Peter Chapman

a Thank the to board warm members. call, including you, on our two new Jordan, everyone and welcome

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Thomas Kramer

Peter, $X.X detail.As in ado, quarter Thank us walk let's you joining an we thank mentioned, revenue. and results quarter's this you, further through With million more and had year, in financial everyone Peter to today. recognizing excellent no

For up bookings, the end above updated revenue, for our We guidance and in full million high year, XX% up range range also and we ended was the with $XX the XXXX guidance our of year updated year-over-year. of the $XX.X million with end above ended which XX% high in year-over-year.

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

operating and from prior total million Our in expenses were million, up the XXX% $XX.X $XX.X costs period. year

from that To was For $XX.X XX% down research $XXX.X the XXX% million further, in costs million $XX.X the number in from XXXX, quarter were million, full development $XX.X fourth this million, and up the up year our break for period. prior year XXXX.

quarter period. in $X.X We costs that are XXX% to in million fourth customer XXXX, the from the For up are increasing marketing from prior up projected and our investing in we of the meet sales XXXX. systems R&D and call production heavily year million full $XX.X our was year demand.Our XXX% $X million, in $XX number were that million,

million, number the as that increase commercialization as For in and from function This sales continue growing due to initiatives.Our our efforts, full million up go-to-market the year fourth investment year in million, was $XX.X and trend the we general expand $XX.X to we $X.X the our prior costs from period. XXX% our year our up that $X.X us administrative in quarter in were continue expect was XX% XXXX. full we million further XXXX,

full year number the year XXXX, Stock-based XXXX. For $XX.X the $XX that XX% the million, full the from XXXX, million $XX.X in was XXXX. from was year compensation full year full $XX.X up million for in up million

million loss that loss $XX million EBITDA a million beating million XXXX, the our loss actuals, cash a for million. $XXX.X Cash, adjusted $XX.X to investments expected announced is XX, of All of sheet. once to this an quarter resulted an loss versus in million year for as in a versus December in $XX.X of note plan.Turning $XX.X fourth quarter net balance to of in full a now loss XXXX of million and $XX.X $XXX.X adjusted for non-cash $XX.X for fourth our projected million net loss in Note XXXX and the for the the year the the period year million non-cash value XXXX. of fourth year were fair liabilities quarter saw of prior equivalents and million compared compared that have to again of of $XX.X we period important year $XX.X for million in $X.X include $XX.X for in the million loss $XX.X full results year warrant XXXX.It EBITDA the million the a full to and gain related XXXX.We these prior and the

position, against We our confident positions full our map.Looking year XXXX which are us in outlook. continue well forward technical executing to cash to road our

are million a $X.X between revenue $XX fiscal of introducing full $XX the of revenue and and quarter and XXXX million target we are for We between $X.X first million, million year. projecting

XXXX of we in million quantum unpredictability bookings our and remain between XXXX. year the range We $XX of pipeline confident our for process. government government's fiscal U.S. highly bookings the given in Additionally, acknowledges of federal that anticipate uncertainty investment million budget $XX the

would some adjusted loss for midpoint an year we back anticipate Finally, of Peter remarks. XXXX that, the $XXX.X with full revenue like turn for at million EBITDA of the to call to I guidance.And over our the closing

Peter Chapman

year of We The facility this was for in time technical and quantum up, and heating Board growth. both Thomas. fantastic and expanded increasing only is market our for is we another team, increased performance, you, for wants IonQ. matter financial words, IonQ's to and next coming line with is world like brought of set to expectations truly we hit across open meet IonQ all before its think catalyze our in OpenAI footprint other believe Thank Cisco and production executive moment companies quantum's that, defining if networking one.And who XXXX I'd stage about demand it In ChatGPT computing, exceeded to online, you wave on questions. continued quantum the a AI. years the NVIDIA, the and be and operator,

Operator

Stanley. question first comes The from from Moore Instructions] [Operator Joe Morgan

Joseph Moore

will if we we your still like several kind technology I ask think kind that? about to understand like us of timeframe talked I gets beyond and quantum of But simulation, with I feel we bit might classical demonstrate the a you become in still in capability being expect pickup wonder of done point you and get you you years at at a area? be where questions to breaking investment more away, that can what can world what quite quicker. XX aware about just Because be broader the -- could year #AQ quantum, you -- next what there point

Peter Chapman

XX We and simulating to would systems going of where question going the one alone. our number happen be needed the I think be to number now that doing. to for is is great what at simulate between quantum question the it kind investors. looking we're at Joe, of XX GPUs a and place It's XX, just interesting,

that of difficult becoming what do for simulation to a already it's of we're a point huge that it what so we're proof kind now market increasingly is there's it's says doing. classical kind in And of way.So that not doing classical

think different do a technical not a point, we we But time when it's number XX, to but I that of within a this get So proof applications. one. will period see business

other of to one the to think of to the right said, our there's algorithm really seems the I X X bunch things as for a has, of to kind come hardware we'll it's as see out managed we're said the advantage just to be come improvements, really, potential the early these think of we to a of in signs kind somebody in today, ChatGPT power.So that And need along a And I lot of together. things kind well. timing, of less getting along own when out and industry is to the have with We you'll of I ready of There's particular kind comes Xx for work on having working year there's terms as had them like, and it announces roughly breakthrough. for script, developers Telltale And take the as every mentioned build now resources. somebody It they've that day, together period hell it with moment need applications, now algorithmic today's to that you off. potentials quantum computational all like other talking so really optimize do history I X seems starts.Now where in pieces that And take it's that starts less. and way increasingly way. more

when predicting difficult we're surprise too. the future, it's do. could kind kind So It's of we to have of a

Operator

comes & Quinn from Bolton Needham Company. from question next The

Quinn Bolton

I the 'XX first, and on finish for 'XX. maybe to nice strong for Congratulations Thomas. guess outlook

And you quarter how were in diversified Just that in then 'XX bookings, the the maybe the the a what's sense hardware number? any sales into million or fourth fourth question, bookings Can us professional between systems similar $XX in talk million about or versus a there service to looking -- components system quarter, guidance. those QCS bookings where give $XX more split development contracts? hardware or type or

Peter Chapman

have in hardware-related not We did bookings QX. any

other is from $XX price. in we things very and to bookings absolutely a 'XX. thing to can you that fact representative the bookings tell range, which that And a $XX the expecting that's X are see systems Number of million one, a high. high million But the comes are high However, can you that our sell is from very much worth at from that number, fact just wide range, the our it. that it's see like

flips a could quarter the you something to see when so from swing And other. one easily

are in and not terms you difference to the But the our bookings other guiding yet services. between of hardware outperform We will hardware software should expect compared and to weight categories. that the

Thomas Kramer

here, assume when sale a just mean going hardware of hardware as systems. we And clarification, say we we're to

actual is time. Of hardware course, time of in terms there compute

and the So a quarter, at selling of it development. if look time would on applications be you systems mixture fourth

to I So quarter. the fourth the here think in sell system what we're trying say we didn't is

Peter Chapman

compute. we aggregation Ultimately, is small block an do sell one it a when of sell all And we compute just at once, That's correct. system at time.

Thomas Kramer

Exactly.

Quinn Bolton

Got this it. how not sure answer ask I'll to it. I'll I'm then much you And but question, -- if get

$XXX.X You're guiding $XXX an to EBITDA of loss million. million,

and My future is starts EBITDA it 'XX look take? too probably question would do expect years? I As in is, you we to forward, you loss if continues XXXX grow. EBITDA what look call Or to early peaks come year might down to revenue in and loss think beyond obviously,

Thomas Kramer

We looking. briefing new on look for and is Seattle. sales, 'XX with in both what in getting We're we you are call. how you coming made. back projections more are to sitting very the room investments were pleased to now to that we domestically with is funnel and But the tell with make that can very And ready we internationally, forward happy we're executive QX the the

Operator

David from comes from question Benchmark next Williams Company. The

David Williams

to the for if but the thanks you've the front becoming you're -- you specifically perspective, And great progress government entities? seeing hurdles in are more of see there, really what Are you bit that to of color related a you maybe about And from about you nongovernmental commercial. script talk made interest is your guess kind and algorithmic your terms can there. talk maybe you on maybe that that in I seeing in beginning where dissect gaining up? you Peter, all of quantum pick from could qubits? are a also you

Peter Chapman

Yes.

domestically of seems is particularly the international be terms I'd in in pretty kind reasons of top is of of at moment our funnel So, than government. strong, happy stronger say to terms even one maybe we're is of

that's of And so one area strength. which is

a we mentioned pass bit as year. a little because will know build we we're not whether in hedging this this, don't As to Congress of or kind budget

roughly have that So to interest how roughly funnel look top I of equal would see we at kind of say of kind goes. moment, But in commercial. I is at the from there's when

enterprise the as there's And heavy interest well. so in

David Williams

we've just like more but if wanted So recognize maybe forward. little lot seems thought provide do Jungsang quick happened ask real impact or work it just and if I going still lot hurdles, his And wondering role. departure that's his going can there's to I of a transitions know bit the that made just business forward. that But here. of the current curious maybe about a the going it I you from a and through color process the to to

Peter Chapman

great a That's a there's in question. these lot always energy topics. -- also I'm of that's sure

a longer which and terms it you started was was there it. give I time. Jungsang ago, running a I'll the and was when here maybe little light We So bookkeeper it the years -- at QuickBooks myself. in X of bit answer, That a on management, top. Chris, was at pretty had We're is

Chris are questions, the of One were and Jungsang professors still and today.

business we exclusive through they have UMD at exchange capture universities we this on keep beginning, quote royalty-free And how the do about don't so very to X.X% me so that this a for which the where also the question the company is that.And this at And and the relationship we their this we them and company but have -- with under, gave generate Duke, we was it, company. going. universities IP little arrangement with relationship, of start in I think, arrangement,

a from was what Maryland Jungsang Duke important and to to the there help. has the the IonQ now Duke run being from going by he Chris Quantum so that's to come research the become was -- is company And to captured because going sabbatical Duke company. of University to was moved And that to on going to take Center. And

We have relationship them. an with economic

VP instance, in interest tech And for started role taken I that We because in, was and that an to person, and was as of Jungsang Jungsang to then Dean have in over making got, had point go-to VP business come role. point, the hiring then XXXX Jungsang, you a Jungsang we've whatever Jungsang we Pat year, of applications. is then R&D. it that over we in he team. Duke come role of and Engineering. hired Dean the had went At role. works.And gave the basically And management and team. that Center last we the And we have our that went in if guy, to also where at for now up going he kind then became work and then the was Quantum will, that's the And open gotten then left that myself, the and sure then and then we management tech.And had to the quite full demanding. was So over Jungsang He

to things that professors thing you company do.And teach the a kind just to ran saw, full be the complete time, Jungsang a they it's so to it's to of now run here back where same -- and team. the and and now the basically we've do going continue Chris to And Duke has and management all the at obviously, course

things. or And those so we're of none no longer in QuickBooks

Jungsang still of that's those the maturity not all the qubitsing the still things team, on stop. combining of company. some So, going somewhat level, is be to designs of with rest at next-generation available, will and the

come was example, chew and for I the was able here time group them appreciate So be for and team. tidbit ones internal that people that.But really a XX, #AQ The to us, as taking kind it's that just professors. of to of that. an They join to know -- do of for we of and the it's Duke rest Jungsang was but Dean wasn't responsible leave from to absence that X the juicy of really are the on, that kind a able he be the engineering Jungsang, to

for years. have team in a of we've -- Jungsang's what enormous it's their originally now So because the to the been team, is good have now that Maryland same years management of days, X/X either we want got to strongly -- X also But And were people degrees. or staff many advanced I other kind be don't pretty time, in we've And have company an the Duke. early our participation side have in DNA academic minimize of academic the the about at PhDs. here students And over able. of we University our an because the that at been

And so well. on as continues that

So it there short go. you there's be what probably anyway, a to a long should but answer question,

Operator

from Craig-Hallum. Instructions] question [Operator next The Mitwalli comes from Shadi

Shadi Mitwalli

solid This Ion to prepared to Shadi somewhat year on Mitwalli of your of than a Richard potential for mentioned be magnitude. orders modalities. increase you are is on Congrats other traps question by knowing Maybe speed many Peter. qubits qubit for slower the guys. Shannon. a remarks, In the

this? will systems forthcoming accomplish do expect able how this use? to And be same So to you your is qubits with barium the

Peter Chapman

to on we you, Pat working be tell here, who it. happens have I'll sitting

answer. I'm going him So to let

Pat Tang

Right.

high really modality the we're another also research the One motional in at we upon looking have the that taking. you chain. paths switch know, electromagnetically. that schemes have, is optimizing which, we well using as relies two interact gate So mode current as we're gates But

that potentially So real a up speed give gate to would times.

that So very we made, of been in to I speak more about and you're and a but has addressed this the our research, forthcoming be point going going right to good with recognize this, as that active we're that's having hearing research, in entities attack this quarters try that that to progress quarters And come. hear to particular very to on of but all and future making good we're issue at we're this more now. you different angles, collaborations

Shadi Mitwalli

terms What progress for timeframe follow-up. more #AQ XX one your between for QPUs just quantum then of in in in And do we and milestones success system? look networking

Peter Chapman

techies Once the in the again, redirect we'll room. to

So take it away. Pat,

Pat Tang

Yes.

customers beyond track I'm happy very have this interconnect So And photonic recent we're scale photonic about year. that #AQ happy to able in press technology. finish interconnect beyond actually progress. XX. #AQ our interested report to We probably really it's we're of release, is And seen on the QPUs very to this the being And you've XX. method that

-- technology going more So making to this this And we you're stated us this important from going on expect this we're come this hear to to a progress very that to and this. reports. and year's is year us great complete

Peter Chapman

to Julie, just sure to a So make little just bit add people understood.

So work. think to to XX, interconnects need don't to hit photonic that we that able to we make #AQ be

end but of is by said, area. active to year we -- the So it we that. the expect demonstrations an first as And the of see

Operator

comes from David Benchmark question Williams next Company. from The

David Williams

which as to I photonic agnostic quickly. system be your -- long those matter it those working does or terms it want or the of of just is you're IonQ on specific ion trapped as the kind interconnects, hardware will ask systems? in Are real quantum to

Peter Chapman

So using the bearing be are can as a in principle, agnostic, you we know. but system, architecture itself

to But are that principle, the towards developed specifically a So geared we've in hardware special of special apply the the architecture set and is point, can that requires which lasers, for to particular optics, barium wavelength. modalities. different your

Operator

comes question from WestPark from next Capital. Kevin The Garrigan

Kevin Garrigan

joined these apologize have progress, a of late. on questions answered, I little been and any I if Congrats the

wondering where to component go teaching kind sense give to through can new start the of they talking what know problems the of is compute was how do if of to, customers that you helping a what you understand major solve? of do I kind process can they're they're to you of still that quantum us and So a trying help? them there have kind trying Or

Peter Chapman

not -- work and education That's a those. to there's a of guess. full so We conversation, I of a probably difficult or kind spectrum try POC stuff. Yes, do lot of complex,

of tend overall So whatever. sophisticated customers the or a range more quantum compute be our say but little I space -- in to most would

those companies sometimes things. of don't wide things. kinds do We see doing from you a or that those customers and XX XX have and things, they're XXX,XXX of engagements So range

the do of is that have have is there's small a So Z. and aren't of sometimes you mean a of problems coming batteries enable early said can the it's you good to reported solve But flying of are idea do do right? space. having it's do long we the customers, mean, ask think critical I us I question -- problems think we I themselves are hold get Thomas build in in generally, look what kind you business. How work with people And the enough. day, terms everything their that's at to pressing X,Y cars businesses that a and can't -- customer but that pretty the deals.So said, we've their to no, if be -- charge we if these the don't their to -- that, that able

not that people answers so critical raw of aren't for And things. They're your off kind things these are the generally these -- doing kinds R&D. Hopefully of question.

Kevin Garrigan

Yes, if every like competitive does. about It pops a It bit week, every talk you can of of computing up. company little And quantum that's wondering kind I just seems follow-up, was very a helpful. month, kind landscape. the just a as new then

seeing of the increased market? in competition So any you kind are

Peter Chapman

You're XXX% right.

university setting, years. investment probably in multiple you is I see to your and every well. to day There the if kind be you're news breakthrough a almost all the for way what look it in these every as First so a cycle watch of finished a of if a a technologies, to in go from product, at breakthrough you at billion $X seems feed, one looking qubit

the might of plant saying and problem ahead And is marketplace.And IonQ. qubit best so IonQ of are the other the which else no in said future it just a which I funded, but I better is than everyone in think have we're the is it, building this way-way that be past, manufacturing I there not have kind in fact only modalities,

future, decide we other that an ways advantage give the look things doing so, ion modalities XX might us into will the which it qubit and you so the and ability advance ask believe of will traps. have And be other of who be revenue us if we the years years, might the want to might it stream qubit or future. of to at in XX me and we be terms winner, or in technology X next sometime will -- not the a But and

So somebody to period. is up bother that's doesn't a which work, off show that I now, it time XX don't going is really doing me from different or -- years XX

worried the So about the competition at no, answer, we're current time. the short not

Operator

gentlemen, call we reached over I'd Thank Ladies now closing you, Chapman the hand session. and of remarks. question-and-answer to the sir. end have like to Peter the for

Peter Chapman

of everyone the for you shareholders Thank today. course, We And thank our look all joining forward our call. for speaking team updating next work on support. earnings to want financial community and their entire and call their thank with our I to for hard you, soon Well, our everyone.

IonQ (IONQ) 28 Feb 242023 Q4 Earnings call transcript