IONQ - Earnings call transcript Q4 2024

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Operator

Greetings. Welcome to the IonQ's Fourth Quarter and Full Year 2024 Earnings Call. [Operator instructions] As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce Jordan Shapiro, Vice President, FP&A, Head of Investor Relations. Jordan, you may begin.

Jordan Shapiro

welcome Call. Fourth and Year and everyone, Earnings XXXX afternoon, to Quarter IonQ's Full Good is Shapiro, of name Planning at My Jordan and of Vice IonQ. Analysis Financial President and Head Investor here and Relations I'm the Senior pleased and Chief Peter IonQ's by Dean Financial our President Officer; Executive today's Officer; Technology. Executive our Masi, Chapman, and de and to Chief be Vice Niccolo Thomas I'm Engineering on new call President joined of Chair; Kramer, Kasman, our access to year investors.ionq.com. have section company's fourth release By this full should now, website is Relations the quarter and the XXXX issued at everyone of our Investor press earnings available afternoon, which on note which Please to call, non-GAAP refer will adjusted is on EBITDA, that financial today's management a measure.

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

adjusted a to directed are You GAAP of our its release for closest comparable measure. reconciliation EBITDA press to

call, to the this or statements. have after business mentioned call, our those changes any except our outlook revise including undertake required on uncertainties, and no to based as discuss we occur of the number materially and our XX-K as forward-looking expectations are comments filed differ law. due could today. predictions Actual that in SEC we These with results obligation We reflect of today. and events statements a risks make that will by to During

it IonQ. turn Peter of Peter? I Executive over Chapman, to will Chair Now

Peter Chapman

listening. to and Jordan, you, Thank you everyone thank

but end nearly believe the be IonQ's it our we and of full our quarter, one call, range. XXXX best of is growth away the last grew assets by which achieving announced $XX.X to the IonQ this and have we $XX.X bookings for our all million market. year leader, an doubled networking rapid the XXXX, exceeding year take revenue, closed. Quantum in both drives year let since acquisition XX% To our you continue to substantially inflection be the In this. the high fourth If year from rate, million our we slated XXXX of $XX.X Inc., Qubitekk, was we quantum ever, million for quarter, guidance thing

Our today. in computing to quantum in It is quantum its computers GPUs networking way and interest by same classical multifaceted. the scale distributed networked enables together CPUs much are quantum enabling IonQ

existing in unique environments. Our architecture with us interface to real-world telecommunication networks allows

deal the the which facet Once ID agreement the definitive The Quantique, in IonQ a am second of Internet, the With ID IonQ has from book and Quantique's more computers. a networking. networking. networking stake controlling ID quantum player is acquire applications IonQ XXX to nearly business, quantum quantum quantum patents Quantique, potential announce generation XXX will threat and and shortly global secure aggregate, networking across of of distribution, consolidate thrilled quantum in is computing. team a next classical global and furthers and signed patent will I applications. leadership to build quantum patents control to that large in XXX than members almost of quantum gain Today, closes, quantum In sensing, its patent IonQ key control

to stations for component will telecom out battlefield. Those closely IonQ technologies Our fiber all forms, goal is suite satellites infrastructure communication secure from to telecommunication that key that we drones in across build existing defense the a sectors. the quantum on and of ground are products a enable note to building following

environments. new SK We blue-chip partner Telecom of allow customer which in With hardware the Chattanooga. Power include to customers, with Electric to their computing. of of real-world pending the These test Research Tempo, as Force us system to addition Qubitekk, well completed for gears Basel. will addition the IonQ our and enterprise our the first Board Switching and unit system make relationships and Air and continues first Forte with Quantum delivered ID to existing applications the sold to Quantique as we varium-based our to Lab. called next-generation Switzerland slated already system in progress delivery Basel first on developing

With QX spoke partners in engineering, earnings before cases. and During the chemistry a share We ANSYS our with other we in AstraZeneca about call, showcase I collaboration of progress some continuing in making billion our our has industry. discovery plan to with significantly. computer-aided partnership $XX call. drug also are work modeling can Tonight, ANSYS, collaboration next use progress we on with the advanced earnings that are our great

we quarter, do of of impact and Dynamics these Forte emblematic businesses IonQ accuracy. partners General General solutions continue computing Dynamics, as detection and systems. develop enhance applications a have collaborations Information large reflect with more sets by how the a irregularities division announced Not fraud only quantum create are of breadth Quantum This and quantum Technology, using that also with identifying and future to value to is anomaly today, also new bringing greater will to that Enterprise and our they partnership speed data

make We performance against map technical continue to progress and our goals. road

performance this been year, reconfirming We quantum be Historically, system. to on the Varium-based will by has best our AQ in measure are tool systems. end achieving confidence across which #AQ our next-generation the XX demonstrated of

capable can applications #AQXX operations. benchmarks and However, reflect our of that X,XXX its pace only end gate and compiler By innovation system of ago future years quantum true defined technology introduction, the we circa have demonstrate year, been progressing no rapidly of longer this capabilities. high-quality our X since system so will

will set application era AQ gear be success of an of updated networking of with progress and commercial deprecate road favor new These it. a the accompanied our will aligned will computing measure technical a to we up in by metrics and customers' for advantage, closely of as map we As new benchmarks. be match

today an want moment take I regarding future discuss team. our Thomas the for leadership financials, of a our made Before it to to turn we we announcement over to exciting

has allow more Chair. will our me originally since Niccolo while and Chief our leadership and a physicist is as focused relationships Board key member went a direction spend on of public. as He Masi appointed Our President our evolution has my we development Quantum as and team Officer, a strategic the of company This a made been contributions and twice to continue Executive Niccolo de strategic and growth public CEO I customer initiatives Executive AI. to director. has important time

experience that We Gabrielle Chief is track Siebold People quantum AI new at Officer a Arts, of Electronic on former are insights to Gabrielle compensation. record and expertise, enable Nic commercial executive our With brief also era organizational Today, Oracle. Both to as senior IonQ, Tesla. will quantum She the over continued an advantage. of executive a everything has Toladano. held success growth. Microsoft discussion. of these and I'll leadership in brings welcome and for growth for IonQ further of wealth we are from and leadership position accelerate the IonQ to to announcements She a that, confident optimally Systems, this Niccolo's roles quantum director hand

Unknown Executive

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Cambridge both As my worked I physics next-generation in an quantum role and XX student I've in truly an importance know, I of at Early and been solar my sponsor of I've on original long-time career, a computing grad things work, University. the a many X computing for undergrad in both enthusiast cells, long pioneering as energy. to quantum years, people in was IonQ's advantage IonQ's renewable believed novel ever of like last director IPO. realize as supporter the the been and of I've years a since

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Thomas Kramer

joining today. us you, thank you Thank to and everyone Niccolo,

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

As Peter mentioned, had revenue. fourth million $XX.X in quarter, an excellent recognizing we

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

down statement. the Moving income

operating year prior expenses For period. XX% XXXX, quarter the our the and were $XX.X $XX.X in million, from costs million fourth up total

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

various R&D investing the XX% investing was million full in $XX.X are demand. lines to product the are our in production we that number XXXX. For XXXX, $XXX.X from meet up that million, customer in projected of year Recall heavily and

Our $X period. sales the quarter marketing and up $X.X prior XX% million, costs million from fourth in the were year in

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

administrative XX% period. million year $XX.X prior costs fourth the million, and general in in up quarter from were the Our $XX.X

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

and loss to noncash XXXX. resulted of important to $XXX.X of liabilities XXXX plan. projected the net results period XXXX million, full for include XXXX quarter versus versus for and EBITDA prior the million for $XXX.X million expected our loss $XXX.X of $XX.X of We million adjusted net again year note a an in warrant and adjusted a this in year in loss $XX loss value million for of in million the of fair noncash the year $XXX.X for quarter XXXX. loss full period the $XXX the million that It saw of of loss $XXX.X in is fourth a All loss year to in compared $XXX.X a a for in fourth million Note the change fourth these the related XXXX. full full once million that prior to an our year quarter the we million loss compared $XX.X the year for EBITDA million beating $XX.X

our sheet. lines December IonQ equip use a of with share to even of now and the that XXXX, investments as our to accelerate plan areas. to growth facility $XXX million were Cash, promising I'm cash equivalents chest. networking at-the-market excited and Turning war to $XXX.X to balance business is launching We an new application larger million. in IonQ proceeds XX, create

As we amount in a of was quantum that computing business. mass us the amount for capital raised provide we sufficient the networking the initial for and believe largely with public capital communications advancing this business, will of went critical new we when

long-term this is we investors scale advantage. and are unique for of a Our for the to quantum build era up finite, at as a moment capital gear position needs

in We to for aim We our another what XXXX. year for growth continue foundation we incredible be will are a generating again IonQ. strong once expect

between million full projecting of are to to in $X the $X and $XX million We year million revenue for million QX. $XX

are the includes in organic to sales X of expected a in of the inorganic revenue we it revenue, turn investors to to guidance With the created stage gauge activity. XXXX, guidance. company's our and takes and the time next momentum progress. sale bookings XXXX the Our to metric sunsetting figures into bookings year Because early all be organization back we allow

We update commercial on milestones. significant of course, market will, continue the to

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

Peter Chapman

announced bit QX Historically, Thank year, closed the IonQ. Quantique a strong you, Thomas. and We Qubitekk a today. for this But of acquisition our a of had in start. stake majority we've slow acquisition ID a time pending is

forward, for some Looking there out events investors watch are for. important to

bipartisan XXXX both be and that support. public in that realize forever and of quantum, fiscal be worth awards legislative will, to budget believe will Senate X make systems. advancing With institutions the announce and Along IonQ waiting with in First, on conference. UNESCO, open updates would that, of $X for corner, billion approval it. initiatives the $X.X Day the billion advantage computing look $XXX have capital NVIDIA's And behind DOE following quantum the we out right networking Congressional for the questions. the potentially for fact, benchmarking Phase year everyone Quantum which lastly, million. Investors through GCC Act, of you for Quantum be Quantum. line see Maryland far one bill with changed XXXX; by seems potential DARPA game that been for the a State Maryland operator, point from at the its will Leadership initiative a the to is around that private commercial year not like inflection I should has to

Operator

Instructions] Our line first with Benchmark comes from the question Williams David of [Operator Company.

David Williams

role. congratulations, for time you. enjoyed the And Peter, first, with our Niccolo, certainly CEO we And

with changing about are move you business as or strategic anticipate running Niccolo? So we just here, any that, thinking be in of I the changes terms how forward we guess, should maybe there

Peter Chapman

going jump here first, anywhere. actually I'm to to know, going just in let you I'm not

So on the and you'll future probably rest. earnings even see calls me all

is especially change just where for to a one So this from company. do, job, there's is this and this too perspective, my big much

really look If business we enough. quantum an on application, is things itself the building networking, at we're a hard new you computing all in have

is we're on offload able in what work part is of to because board doing I was coming quantum reason to work the here Niccolo AI. the think primary be IonQ I to So to some came on

will this work up for hoping also than able far. do that to been as well, me free to time I'm so I've some And so more on

a change, I'm not going is anywhere. it not So it's -- but

leave to I'll So Nic just But as an it FYI.

Unknown Executive

Look, to me IPO. bandwidth one of closely Board Peter the worked and support let over So expansion think, proudly have his a add years. just have you I last the actually to before for Peter. members few meet since been, years. active most you. for the I I Nice that. And thank the is this together contributory and And

opportunity Peter and And so which of that obviously the for full of two there's obviously thought at Board opportunity with are that truly to time tackle the growing a is made historic. to points There's work of lot continuity, one lot are sense. the businesses, a an inflection us two

because to closely strategic no together to your do continue and last no, question that. So I years, Peter we'll answer working the in nutshell, direction a and been there's set the changes in to in strategic direction X have

Peter Chapman

don't do I go up the hope Niccolo interviews job, but TV is like of give parts I my going to some tomorrow. to

Unknown Executive

go. we There

David Williams

secondly, acquisition just That's nice well made understood. And a maybe then last you've quarter.

and You quarter. Qubitekk ID the this closed you've Quantique announced

patents? this then are kind mean, just How these I Just around And is strategy kind do the term? anticipate? a anything longer of or you from what about be should consolidation that M&A perspective? consolidation we curious And going you how forward, patents thinking helps this significant. of think maybe we should the XXX

Unknown Executive

Yes.

portfolio. this the the care So is obviously on about this We've been IPO. since We Nicolo. focused patent

I think when number a we met first had low of Peter, I patents. double-digit

as space it's the We it an so continually. is be organically becoming well. if and will. to the era bigger obviously view game, We make advantage into that as we quantum that make make commercial And inorganically you a of we we company's it one investment head

to lesser computing that both an networking. so is here and extent a offensive both potentially or and mode greater a one And defensive in

are around advances in our patents interconnects. our the and photonic synergies prior computing obviously the around significant particularly between calls, As and business, networking there you've heard

organically to it's us internally, course, course, not patent best accelerating with have these we we new of of done here going extent, Quantique. whilst worlds we're, So us, ID just to We're and of geographies. networking course, but is bringing some and get IDQ to, of integrate both out capabilities, this Qubitekk as acquisitions. bringing the aim

we've we both East, in and presence. got And and as these Europe so businesses, our Middle where using to be will expand already Asia the basis both organic

So our of of lots on about course, but the quality. house. position, And both work of team patent the doing sides and computing best attract to of the the do, we're continue, excited networking talent world-class both and to we'll half

Operator

is the Our Craig-Hallum. next Richard question from line Shannon of with

Unknown Analyst

And and acquisitions? This is happy Tyler on market? should market the at networking I'm you're we when think least. line for Richard. could impacts Congrats, from the Niccolo. of these And timing sticking start Peter, about seeing top around How we size

Unknown Executive

are... So I we think that

I that. for my about Sorry microphone. Thanks question. that misplaced

impact of the acquisitions. our seeing already are We

acquisition first our is deeply we a core we design already how is in in In today. and fact, part made technology systems of the XXXX ingrained our

are to the to of although same We acquiring effect partnership already And expect seeing where I we the going also together soon, of say the Qubitekk, our we're clients. entire that company. not service acquisition we're our and IDQ see should from

a equity majority their now. of have part We

Peter Chapman

going outside I in Quantique just date And add September. the for ID was that to is

terms And be will won't as of year. this year, so it next in as it its great be impact

Unknown Executive

it's investment of we've from Yes. firm team networking in guy because that So... position the course, it, hope the including, a of governments course, been it perspective, could exactly customers, inorganically. I'm that delighted grown And patent demanding I be are, at organically. watched the No, I every for. leading already new IonQ here our been could both has on We've as almost increasing I throw to joining think into metric, and right? partners a strategic So is I've organically here

Peter Chapman

is matter scale, no what you network to And that bit to the quantum in to more, qubit little add together. a have too, sense able to computing, them that methodology be I'll used for just get the

chip. And is most market. next is companies systems, a horizon that will, the moat, if today to you where on But QPU. we they're to patent to strong portfolio able focused here, And are network together building still beyond be are that QPU controlling in so

so which Quantum for And market, as -- the TAM is the as now a new well up Internet. opening

computing. So it's quite with synergistic quantum

Unknown Analyst

QRNG, on there then Quantique? in the frequency And you technologies you What some of conversion? acquired, timing to specifics there. the said took -- were in there's Okay. some Is you company. the on Did interested were that anything ID only instrumentation you you drew --

Peter Chapman

Yes.

above. So it's all of the

opening obviously interesting and overlap us. technology, Some things up technologies single between and the of as have that those sorts we all pieces market. there's a of things. well, in bit of market -- for like terms in of quite a new the underlying own is interested it other and X of bits And photon the our their detectors There's systems kinds

building So quantum area some And up about pick just that is it's secure ID quantum, Qubitekk of But first Quantique -- networking is we both as which time third we're it for and Internet. we're excited going excited, market, which also have was new quantum it And well. been well. a It's market was areas. quantum the a the those and different as as sensing. after honestly, -- here

pick to if quantum off, area networking. we'll take sensing So it's that need going And is well. going some quantum technology in up as to

covering you the kind bases, we're So will. of if

Unknown Executive

be purchased we we've closes. majority, that clear when it will be consolidating to them the Just so super

Peter Chapman

Exactly.

Operator

questions Platt next with are from of Davidson. the D.A. The line Alex

Alexander Platt

is role able with something wanted a of with sort about consumption you're I costs to new this completion you energy In week, last reduce and Congratulations, post, actually step energy transition. the mentioned Peter technology. this the materially announced ask on blog you XHB computational the sort to which of and next the Niccolo, on innovation. of

consumption think other maybe just maybe give of on for could where like could to energy at this So how the us and systems you better idea to was prior it market? Also this I a of sort baseline a now? then guess, where we compares

Dean Kassmann

engineering Thanks, and Alex. This is of Dean Kasman, kind here. running technology

Right to we we our down the kind power. and technology So reduce we the investing drive cost is amount post state, Right overall use put energy to, -- systems, the road XHB in ability the even one ability ions systems. energy from consumption of in that weight you have fact map, the systems, our one, of their are of number that the have now, you highlighted get overall amount lowest computational of current enhanced per terms trapped size, as of the drives in. piece the overall as of footprint, perspective basically versus now, in output drive a vacuum current scaling non-cryogenically down an the in of

qubit linearly, other trapped think example, exponentially. we as So for GPUs, and and about count, our scale modalities ions other scale systems systems and scaling

quantum computing offers overall adds the a an XHB from so just huge scaling And that. energy advantage to perspective.

simplification the the better overall engineering in effort design technology is scaling. the And we road map so and have the of and

Peter Chapman

systems a there's of of qubit, globe is will But also on will not to networking as get which bit where produce put have that advantages it all do And there you significant add qubit. to qubit And degrees. on deal is do. as computing, pros it's thing can cost that temperature just quantum great I'll just but in X top to And cryogenic per modalities to today, the cons. different prohibitively want a expensive little a get ultimately, focus are point down IonQ the this, such everyone, -- and over to last well about a near compared if have one would room vendor cost and that because quantum in to others be to

to our plans long-term here. about win So all it's

reducing So into it's the about cost qubit per our future.

Operator

from line with The Mitwalli next question Instructions] the [Operator Craig-Hallum. is Shadi of

Shadi Mitwalli

does How the Shadi acquisition to talk and of in And for regard you year. IDQ between with the being portfolio, then first previous this at on especially acquisition and into appointed differences on the on Needham. My the acquisition is solid technology IonQ's on congrats of similarities is can Niccolo, Quinn question This about to CEO. fit Congrats Bolton Qubitekk? IDQ. Qubitekk?

Peter Chapman

It's question. a great

the pieces has here. that There overlap that doesn't. things them, and each is a other So then of there's there's some couple company between

groups in where engineering can between we for a the by So areas reducing we stake as IDQ. we But two moment, we collaboration reduce at the majority expenses areas investments forward. our are, mention, the did there's and going have think

we honestly, quantum to much networking companies of shareholder kind I taking two creates of the be But we a brings with forward. largest it and So think, do closer have And knew of together. companies obviously that going revenue the is in had of two bringing them careful interests minority powerhouse the that together IonQ. really,

Dean Kassmann

can from Dean hardware speak bit I a perspective. This is a again. little

world. quantum also as and have as that's the And deployed ID network Qubitekk they IDQ has part different network EPV kind projects so both computing network Singapore. development Qubitekk networks well That's Quantique of plug a have deployed a Europe. There's Chattanooga in and can quantum city. where in there South devices as the have user networks the networks. deployed testing. Korea, has other in into around of quantum-safe in implementations for in They you

they deployment game. random technology, Qubitekk and part nano both are quantum on manufacture IDQ as photon been technology network they have does. business. overall Those of wire made in engineer has have also number slightly of the IDQ a generation. in technologies. does and slightly their rely offer single actually quantum QKD From able and kind hardware component core protocols different detectors their to software that not have so the And stacks. both solutions different They are solutions.

internally here photon we're In the computing. use different systems doing fact, We for detection work in that are other those quantum used on them many products.

are an are similar, overall move different things and some that there stack, quite as from things be very but are there's that forward. at we'll we that technology looking so And also

Unknown Executive

IDQ us is SK markets also the and brought Europe, next-generation business our obviously lead fortuitous announced forward-looking us, and all And that prosperity for like to much we networking great Korea, XXX XXX. about and that a in us to I'd U.S. pending, significant is, granted base. us going market. brought partnership that obviously, with the nearly And to that secure IDQs today. patents be think bringing Qubitekk Internet Qubitekk add bringing of customer obviously, is we Telecom had nature

So it's of moat, networking quite Peter a as globally. mentioned, powerhouse

Shadi Mitwalli

Can more of my with like makes in strong or XXXX. That development guidance, the be some and the growth. revenue seems revenue puts weighted. follow-up hardware is will will year-over-year for especially And give this guidance guidance back for how It's versus then it. maybe Got the sense. on implying guys be revenue? very And you sales of half mind? It takes this QX much QCA

Unknown Executive

forward it to that when really product able only of in the weaker we that but we other expect little selling So for quarters several a benefit with be has Traditionally, us, strong more correct will be now half. is now and it have back a than very QX we pipeline, been have able from. to go much we fuller areas And a being set look to than to compute. market to we're solutions

Operator

of line next Craig-Hallum. Richard is the with from question The Shannon

Richard Shannon

general. plan in EU product? product and mentioned that on you or the you U.S. Korea just expanding South into Do QRNG Korea So the

Peter Chapman

Korean us a becoming we Korea go because into relationship South of signposted as if They that to to company. And both and which especially more kind well. in geographic South in the think is do We're employees allows do say Quantique need number markets, enable think this, a and Niccolo I to as still Swiss little a in strong we current ID want But is having to acquisition what early would I take -- -- which it's marketplace, of products. the where kind locations the to complete have locations, multiple have is companies it will they of with is world nationalistic. European that and we the well.

sure of of bit of kind Korean the as a current going U.S. on that a derisking now globally and it's So just little sense, a but which I potential are not now, we're think that South company kind European in and well. things company make

it -- and depending that we with things also decide -- well. on in now locations tariffs, and well, what do those way things need manufacturing deal And now in so think as those we could with happens do to different you to

be also still picking of of So can advantages. helps kind other's can each footprint. salespeople, But is successful. the have we work do? it quite And just up been ahead of advantage How co-selling in thing next what who obviously, take kind that's global us. We'll then we unique a of

Richard Shannon

All margins sounds expect like the year? guidance any And you guys throughout to on OpEx give us look right. and That you what gross great. could

Unknown Executive

a past So guidance These goes that. pays on ready margin R&D seen benefit lower that the because we've to our are have What into gross give have products. lucky enough producing from government some for of that you're product. is not we what we large generation not actually to to it contracts. next tend does been in mass slightly generating But it is

So as commercialization further the lot. and up we enterprise positive direction into start trending the gross in a market margins expect that further the will moves quite that

saw up we we the had we enterprise were the compute. back selling just the we has it been past, the majority also same XX%, on But a are who computing networking meantime, longer know are we've whenever are term. crucial and we looking that areas of and are quantum think for gross expect customers, And So margin we we we -- into when the in development R&D go by saving the in projects customers and with a lot around XX%, that taking quantum of that there. into to looking over

Peter Chapman

As an ARXL with contract build an optical switch. a we example to of have that,

our to one that build working development might margin good, would and we directly they're paid for pocket. as the cost, otherwise have helping the which pay but with out of that for on not them be we're so And

kind a don't lens, the shipping Hopefully, we we will, So volume. terms that would of helps. if we're product in in that you use of that same

Richard Shannon

insight any expected any That cadence recognition have milestones you or of to revenue for Do contracts? those guys as just does.

Unknown Executive

talking are about, AFRL we contract? contract the Which

Richard Shannon

on could if go out. I we basis, don't to mean want an break overall you anything

Unknown Executive

contracts in our flavors. overall, So tend to come different

been announced which as We such And will be are sometimes are the contracts that that months, to do mined XX X- but a to These months, entities year. that $XX.X XX-month up large to on projects contract million with XX AFRL. if last have was they there we have we application on -- tend platform.

we're is at. even months, on to and as a that more go we volume sell XX looking If XX around shorter and that project expect So system a up. delivering get it closer the we all depends system, on we to to lead which time XX

Operator

next Williams question Benchmark David Company. Our with is from

David Williams

mean of ask bit first still that's wanted we of I heard you in healthy. imagine quarter, -- a to -- just mentioned fairly kind strength I but little I sales, -- haven't the hardware pipeline I the

Just think, seeing around hardware that, activity what the any be any of helpful. terms sales I color in on would and you're

Peter Chapman

Peter. Yes. with This that. I help can is

is hardware see -- side that sales compute say to side, which be I time going dollar side lot networking what quite So to particularly to I the just you the to And It side, in I'll can nice as compute networking me be not right to lumpiness be it's that seem to doesn't which on computers. I'm a having here, forward offsets too, are a now. of And quantum say be when the our sales assume amounts, lumpy. it -- because we going just it lumpy. kind is will forward. not seems will quantum and looking more smaller mean compute from the the sales busy mention, nice seems is of in versus

for So compute the in probably on awarded and X us. or interesting know right a RFPs of time. a we're of And whether to next in we'll be those not now bunch at months, systems. guess, couple things really will side, There's months, are X to I within competing systems the

going I quite don't mentioned also picked on is there's but then in of for large close the I remarks, now, some kind the events. think And that the the And right so is -- which a of things grabs. compute up, company. DARPA benchmarking per up are of the in the compute a quantum of the initiative of marketplace has going side internationally, is huge fairly and reward on that I think quite kind there's bit at terms The world quantum

outsized an impact. have to potential the have things those so And

David Williams

today, you your not Great And in particular? then color job it experience? million the and for if powder dry you is about one having on Or have the that is I move constraints more target as here maybe there. that forward may, Okay. just around last Great. just one, announced $XXX

Peter Chapman

is quantum One to twofold. is in it's new which -- really networking. -- we TAM, entirely see It's an

And so it's supporting that.

that us. cash future. And said have far positive We could that, flow I too that first will the be in that for not becomes see business off happening the

have didn't The resources The generate applications to each just we is as networking, billions of business. exciting you announced are to ANSYS these just other with needs aspect, its optimization. which our the on to quantum own things, AstraZeneca and successful. There's is we themselves dollars. go haven't -- potential do computing, of businesses if just quantum work we're compelling the to doing one and be chemistry investment but other and have some that unfortunately applications, things quantum AI, yet

sufficient these to again, computing have we the the had application space. to we do didn't leading areas networking side, or quantum funds some in funds a the of while player so be And in

that thought means in -- we're So about markets piece as that. the way, the other money some these for we're and these for And is for used. exchange of excited some that going get I one doing that's this future pretty the to we of doing some about going will you're doing but into. going where say giving up venture action what and out holds of

Operator

time, the I'll Peter Chapman floor for remarks. Thank you. At this closing to turn back

Peter Chapman

also time you I wouldn't without team. management the that work at this thanks, of our say employees the Well, everyone investors Great. us. as Thank supports want and I thank and just everyone. to and happen always our all the hard for call. to to work company This the of do joining you,

you. joining thank XXXX. and great a for everyone, Thanks just look thanks, fantastic us XXXX, a we today. for forward so And And to

Operator

This today's does Thank you. conclude conference.

time. lines your your thank at you participation. disconnect may for You this We

IonQ (IONQ) 26 Feb 252024 Q4 Earnings call transcript