RGTI - Earnings call 1 2023 | Rigetti Computing, Inc.

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Operator

Thank you for standing by, and welcome to the Rigetti Computing First Quarter 2023 Financial Results Conference Call. [Operator Instructions] And now I'd like to introduce your host for today's program, Dr. Subodh Kulkarni, President and CEO. Please go ahead, sir.

Subodh Kulkarni

Good afternoon, and thank you for participating in Rigetti's earnings conference call covering the first quarter of 2023.

Jeff some CFO, detail, is our will today in results following me Bertelsen, who our review Joining my overview.

Rivas, David the CTO, is to here Our participate Q&A session. also in

results risk at statements months regarding pleased regarding objectives, answer to Form and forward-looking the We be operating are current subject XX-K like these out QX ended expectations, and We point and our our March and to XX-Q a future with XX, discussed number our year this those to Commission. of results. These urge contain XXXX the you will Form in We December press XX, would SEC your with ended questions release XXXX, detail outlook differ our factors. filings materially to filings and other for the and to XXXX, are risks Securities could remarks. call Rigetti's of subsequent assumptions from uncertainties X and that underlying in the cause conclusion Exchange forward-looking the statements actual described of and review our more for discussions that

on the report road first Turning I'm and to XXXX. of we announced in that we track map nearer-term towards are now we the quarter progressing strategic pleased priorities believe technology to business the of and XXXX. February

to which cash designed implementation updated preserve business our is of our strategy efficiency, to the in We following starting announced February impacts are XXXX, positive see focus, resources. we and improve operating

testing nanosecond is and to to deployed square based fidelity internally testing. XX median system, in built our for internal of new speeds couplers is using qubit to was which and Our qubits Rigetti Ankaa-X XX% lattice XX on achieving XXXX. March Ankaa-X gauge next-generation XX XX% architecture within tunable

system to and leap of gauge the belief MX as forward in confirm to these that compared the and design. to fidelity XXX We in XX-qubit, median XX% Aspen-MX Ankaa-X speeds. Ankaa-X demonstrate architectural superior a XXX prior generation performance is nanosecond chip XX% used X-qubit Aspen believe achieved Our metrics our system

we disclosed, select Ankaa-X to in previously As launching mid-XXXX. currently anticipate customers

with anticipated work We X-qubit the system. improve continue goal Ankaa-X, support Fidelity Ankaa-X of Median XX-qubit XX% of the to to reaching to performance

We improvements to that illustrates to released system application be demonstrate XXXX of deployed quantum as demonstrate anticipated narrow we and and application learning approach presented the classical Imperial enhanced with problem fidelity in of using performance which customers College is compared of the class for outperforms we and forecasting quantum as this a anticipated model work of Ankaa-X, techniques we able standard accurately quantum quantum of we advancement is By development thereafter. recently noiseless classical our Tech used of with hardware and addressing At achieved of remain demonstrates progress recession. that advantage. Using signature of external quantum able novel potentially in transformations. undertaken towards Moody's alternatives. simulations, methods problems models Ankaa-X, using version Our the London reflects results the that we data a believe April, classical in were cutting-edge the and combine committed improving Quantum methods system simulation, the to enhanced the machine predicting the new the qubit available to development conference results to achieve XX-qubtit to to work and power design making recessions were to version kernel well the the fourth capabilities, Lyra with be that classical software company XXX working XXXX. expected expect of in qubit made in We to X towards its with XX% which the quarter quantum-inspired achieving the computational

towards technology who milestones project, outperforms map DARPA manuscript our the NASA classical even road we over performance. meeting are new of our ongoing on that noise and that now our XXXX current performance remain stage algorithm our and our same presents and with I'll solving we And advantage. fueling believe review assurances first to of quantum with optimization development, several provides solving that We key financial quantum of executing part that, a objectives. released achieving with focused our At our problems goal to quarter call quantum achieving for a Jeff, As turn for problems. the approaches will

Jeffrey Bertelsen

$X.X is in major of of Thanks, the given the period be million company's contract of Revenue Subodh. the government Revenues agencies. at quarter same first to with of expected stage evolution, variability the million to XXXX. in timing compared $X.X nature were XXXX this

the Our XX%. came technical the XXXX development first according of first in margins line work revenue of cost-share arrangements varying consist in with also at virtually of of XXXX of in primarily recognition timing milestone-based or in with margins quarter gross contracts quarter deliverables. Gross XX%, to the

that XXXX including business of year-over-year the OpEx was the in related total was quarter quarter combination side, combination, March $XX.X $X.X resolved of first million stock due the expense $X.X to and expense the to satisfaction The bonuses. same the million a in XXXX million mainly was transaction prior of expenses in to million deferred of related liquidity the $XX business by of decrease cumulative in to year. of compared compensation On period first XXXX the condition virtue recorded

December in higher for of first same public increased prior in The expense the $X.X quarter of a million Ampere million increases totaled of compared legal $XX.X for XXXX with cost expense to equivalents, area, for quarter $XXX,XXX XXXX. of March an headcount, $XX the also the were the XXXX this $XX XXXX. In or offering the higher executive XXXX, in plan, R&D quarter its equivalents, securities fees impairment of operating expenses at investments XXXX. quarter We current in charge loss cash, contractual current loss to a end XXXX. million quarter of per $X million and G&A compared cash fees. and and time, depreciation that net utility raise available-for-sale $X.X the period forward recognized objectives. happy the the $XXX.X XXXX costs, Cash, $X the $X.XX for was $X.X being to $X.XX primarily the operating XX, expense electric change the first would we compared first the of million in achieve to included between of million Thank compared At base to that the and quarter. the questions. its and research loss in of XXXX will compared stock per first need million expense of warrant million the have of expect to of million be the plan, totaling million efforts for in of as fair costs deferred late XXXX to quarter reduction now the G&A $X.X on value business to $XX terminated of same XXXX Rigetti of entirety we as of related when loss of Other during million catch-up mainly for million period anticipate first We $XX.X of share officers severance operating first for of for in was by of and your XXXX million respectively. XXXX, period agreement compensation of restructuring and recognized Net million a development and company and to $XX.X by quarter compared XXXX in million, or the of for first quarter the insurance, $XX.X We cash on amortization D&O a XXXX, XXXX. quarter Operating available-for-sale you. first $X.X first funding quarter the share totaled first of per totaled expense period additional $XXX or for our for based and and XX, early our continue answer million XXXX. Based with XXXX same

Operator

from Our from line first Instructions] Gianmarco comes [Operator of Bank. question Deutsche the

Gianmarco Conti

guys to to a with more guess terms are progress system once expectations of what on the hoping in adoption Sidney. customer you Gianmarco encouraging that bit mid-XXXX. about on was you the hear made. I speak is the Ankaa, start to performance your have improvements it's Subodh This is in for little certainly could I But deployed

that with of your And go been of you where And of and QCS a just quick conversations a how do follow-up, rate the if customers see sort have follow-up. kind of I deployed? have once proceeding? utilization to sort then could speak your of And you

Subodh Kulkarni

very of the Certainly, with Sure. pleased are Ankaa. we performance

As a with denser we it tunable is new a architecture. before, said or lattice square lattice is have couplers. It

and built to the bring chip is took and a it the So get right working that lot effort which up, it chip -- now. bring of the -- --

fidelities speeds for of of numbers in have Median XX% gauge to to more continue nanoseconds. We of the XX certainly to and reported other XX X-Q improve XX%, do work Fidelity to Fidelity. metrics our have pretty We impressive

XX-plus range goes X-Q expectation Our XX-plus year by and for we sometime add. that XXXX. in the in Fidelity continue level should to in on this improve -- range and to of the will as year. percent be is the Ankaa percent the median That's high end

labs, and better, square customers in couplers. potential a from are the now. the it's middle interest standpoint. done going where Right select available their going, from already remains currently of higher Fidelity, like all do our will and was available right all the feel Lot lattice Initially, few we we'll customers General making XX-qubit have that. are be start confident we high. have application DoE, was we As select said, our interested with tested. others year. customer Ankaa internal very that tunable to have that Once and to would are that I customers access, question internally customer customers we the the that DoD, standpoint now, obviously, we to get and your say to it a of testing this very

percent So will we be significantly the higher. will at as XX%, to year, we certainly get and XX-plus next improve continue to interest adoption

So and are are we going question. evolve. potential customers -- what to and we hope our that with where are now, we thing from what overall, is existing hearing where we are pleased answers this right your I

Gianmarco Conti

And more Jeff, one can for squeeze then maybe I That's I helpful. if Absolutely. guess, burn. in very on cash you,

burn cash think year? could CapEx have be of a the we through us the better of of through XXXX. help can you linearity what go sense you If as do And sort the about

Jeffrey Bertelsen

XX mean When QX. we between expect cash when Yes. today's the at had said year. end in about think of obviously, release, to we think or the I a as I about -- have burn, we and $XX we of million cash here in hand restructuring on

see expect reduction to in QX. from action starting that would in we kick So expense fully

recur won't which We QX. also QX, in incurred severance quarter restructuring costs this and in

would from So we from here, would you first expenses annual quarter. reporting also plus costs the have a linear go perspective, and down think certainly in type XX-K that the

perspective. So that's a linear from

focus We to wisely. make focused any but CapEx is on very guidance, cautious sure our stay we're aren't specific spending certainly, spending to giving on dollars our and to CapEx that be

forward going to into think I in think some I and tied see cautious and see forward. -- cautious see hopefully CapEx So expect also reduction we'll some the headcount, going spending

Operator

comes next And of question David the our Benchmark from Williams from Company. the line

David Williams

Good both. with to speak you

months like you more of But over Just the good progressing forgive me, it guess expect a anything the you has improvement confidence some surprised as a terms side? of sounds on of or But beginning are towards you'll in the fidelities. call just giving fidelities guess, progress several you is questions, I bit here. the the technology the quick last I and there I couple making at in missed that things

Subodh Kulkarni

it's the mean, Aspen are XX% it's our we with to fidelity median don't to nice with XQ all and when where square architecture what right coupler. are the XX%, lattice we Ankaa. David, to were MX considering a we a know But I It's jump with get close pleased XX% question, Certainly, with initial a here. measured off particularly XX% fidelities Ankaa, we take system, starting which in you now. we coming going the tricky Fidelity, are to know issues to sitting that whereas new a up, with tunable is with

We have data.

the approach, kind [indiscernible] where semi-conductor is going We industry. from, are and we at of in systematically them very are are systematically looking using coming analyzing that data quite which analysis and common after errors

this fidelity we XX-plus year, That's systematically. percent us what by certainly, be confidence close median gives of it X-Q know the to the me So Fidelity. we going year. next are will it And already XX-plus to percent will end at that take Ankaa what take to

be we will have starting planning what already team next to the have problems. we Ankaa seen to what actions based confidence high for contributing now is I few So the and numbers in able to and those taken on address get to our are errors right to and those take have point months

answers hopefully, question. that your So

David Williams

adoption Certainly No, you And now hearing it are like time helpful. you had secondly, CBO you've the [ I a in more What that still And does. are feeling from the Rigetti? they guess, previously? And kicking otherwise? customers? little Are ]. folks the been programs, the looking maybe the of maybe tires at and some has improvement any changes, maybe or were still there that

Subodh Kulkarni

as mean, Moody's, the the mean in can the a we I continues interest, is not us to published with announcements or our certainly the algorithms traction, did we done interest the side, recessions as the would advantage QPU lot excited be only of published organizations. customers Good we what of gotten a and papers fidelity, those has is interested That see in with algorithms. in certainly, some getting questions, NQA of to but to improve predictability financial our Moody's bankruptcies. obviously quantum work I lot in kinds more I improve everyone definitely of Moody's. and work of increase. obviously, narrow other we and such our on David. side, say There's

optimization talking up QPUs our that pretty to and many other markets financial vertical those problems. -- optimizations, foundation problems you on other demonstrate besides know, are look industries, and some to need of with opening used ground, we many improve markets good So as combinatorial well really customers pretty doors unique vertical work markets, And work things. Also, to kinds how the combinatorial basic is our at. with optimization for take lays be because financial work the a to that is more pretty work can of NASA DARPA

and of optimization of it's So a at not speeds with QA definitely pace I then quantum very in gauge your generate kick think a level, I general, customers. Certainly, in also to are think it would tires customers that to are we a lot fidelity customers still make an computing, but to works that stack Ankaa are want interested high improved software the only amongst and they say it the as doing -- we sure using combination work our chip with -- continues should. interest

that benefits Moody's practical to them. or look As with DARPA picks talk we work practical certainly what demonstrate work their more at interest the in like we NASA other the about conjunction problems can

answers that question. hopefully, So your

David Williams

And congrats progress and of best continued again, luck on the on the success.

Operator

And line Quinn Needham. Bolton question comes from from our of next the

Trevor Janoskie

Trevor on is This Quinn. for

to is customer actually there and the you in engaged I'm the paying sidelines an XX% that up start, are add cloud? currently incremental Ankaa achieved customers to for fidelities becoming a introduced you're wondering step to on revenue with Ankaa that do So if that, are improve before waiting and once Fidelities to to are expect

Subodh Kulkarni

fidelities At saying how That hard among revenues interest is fidelity ramp exactly customers improve. a goes tell. high up the improve, with without level, going certainly to the to as

that of researchers are in think certainly, the getting quantum computing I government all revenues whole now national or labs of world, from all kind are us customers. right the

So future. seeing most how be QPUs relevant out they of and it algorithms the is in testing could and

are yet. here. computers point classical So quantum That's significantly a or say clearly where none can us of at computers we are in performance cost goal than better the

years X reach stage, think quantum roughly happens we to when said which now. of I advantage only real ramp-up the revenues have you from X is that

high this is X yes, quantum kind get research more next that things, level, color you going customer now. them computing will, the interest, we some yes. real of all us, advantage, to likely, are the small going gives beyond inflection happen quantum of more we scheme from be at years your point are really will on once if which to would in But Hopefully, is for least it's for fidelity once revenues in we get X big potatoes of a that at dollars projects, question. year companies, So to get XX% certainly to XXXX, we in you

Trevor Janoskie

does. working to fidelity the but I your are question, a Ankaa until using part I you guess waiting interested QPUs, agencies? working first just with of Are but to it any start you? talking in to certain what Yes, no Do But customers matter So like that customers my they're they're yet, hits not to government asking are was you you more with paying of universities and they see be. any plan these or system of is available? they that

Subodh Kulkarni

they we organizations or current the time. are directly once specific AWS many either reach are commercial anyone or everyone XX% talking government all that at of has service open well a but I will, customers percent, recall XX%, Look, And anyone you the be again, are is understand you we and how contract told to paying talking wants that involved categorically. are applications us don't and would or if XX-plus that universities, This But said to give certainly Azure. them up. through more having us with if cloud to certainly as our fidelity customers,

a say have XX%, soon is that said So hit as number general, XX% along I we those customers lines. the who as direction we have contract But in there. of or they cannot x will anything sign or

Trevor Janoskie

Yes.

to Will the to quick that's Okay. become platforms? customers available the clarification. become over Ankaa-X cloud? is just available Or And expected over broadly cloud Ankaa-X a that

Subodh Kulkarni

into to set plan once at evolved have would to the Ankaa-X is -- Ankaa-X are is year, make XX-plus-percent this what to we is Ankaa-X available internal will of the of what customers doing this customer available it we have end that said, is Trevor, that level. make testing, and select are the we So we Ankaa-X, broader -- By middle year. our which what by

we That's releasing So timing availability would for the fidelity. Ankaa-X be type what we XX% think general of announced. have and

Operator

the from of Sankar TD Cowen. question next And our Krish comes line from

Kinney Chin

year, calling development. Ankaa-X that [indiscernible] timeline. had is I guess This Ankaa you Steven wanted underlying that to a also that regarding the are understand with comes first out on Krish. supports what infrastructure QX. of just the specifically to the risks of tape-out maybe some I and sort in here of project behalf I Subodh, in I question guess review of potential for tape-out terms that this

incremental design Or For would an that about largely and be of Ankaa-X [indiscernible] and could example, to it chip is one to that talk progress if [indiscernible] sort of reaching the XX% it is is dependent come that is set? Ankaa-X already how so R&D expected to helpful. pipeline the that you

Subodh Kulkarni

Sure. technology we -- your as development. we details own can the know. how into you mean, you're I Thanks are as we question. own the imagine, probably do our for getting exactly of And you fab,

versions different are lots and doing. we us some all for So what various Ankaa-X about and are the Ankaa-X this at talking chips experimental chips and targeted we of even of running time some time, [ are that ] frankly,

those parallel. So experiments all going in are

as try this learn keep the coming data that by we the at bring Ankaa-X can we it use we now, definitely and all and right we end look to error year. we where will incorporate available that be to build looking of everything are learning, -- that from, we So that it, take Ankaa-X up, optimize the at as errors

we the QPU Ankaa-X believe into For certain as that fab because of ready the right will a it going maybe months and practical system. speak now get we chip all takes Ankaa-X, chip a through that it amount make to purposes, become

into putting So all from the we learnings Ankaa-X, are incorporating it Ankaa-X.

brought will being for that. The as become of our the the that you couple the if Ankaa-X we'll incorporate and [ year. this Ankaa-X but High freeze already said, some Ankaa-X started. up, we design doing by and Ankaa-X couple will I be will, We end next running are of from -- in Ankaa-X next months, ] and months, learning sometime has learnings is of design, in evaluations more work,

chip are already will Medium plus some become XXXX Ankaa-X early XX% that So we to time on Fidelity period. sometime experiments hopefully in running a

plan the of speak. are this several you through actual the So things obviously. color you on Hopefully, have to we some months launch, timelines. That's of what as we that ahead going kind gives

Kinney Chin

simply, it there's my pieces of, if existing if control then it guys on? And CapEx-related related Yes. guess, activities. Aspen guess, very color if not, some whether that infrastructure guess, is And from question follow-up I can on is the you from provide kind standpoint pretty Yes. an of certain is key runs more some of modular dilution Ankaa-X the I with fridges Ankaa-X are MX multiplexors I new much that? and infrastructure, to, is there it's dependencies for any Or infrastructure [indiscernible]? signals, compatible

Subodh Kulkarni

Sure.

lattice from couplers equipment, it design the change go the but fab, certainly, in of So that the outside only fridges. cables, other fab, pieces amplifiers, involved a to Aspen was not tunable to several the Ankaa, even and big square to the the

circling lot will it to they what from [ evolve a significant changing needs upgrading learn the obviously Things -- and The some hardware So from to Obviously, need software. Ankaa. will are change. we Aspen ] of continue to we hardware the will CapEx. keep as go needed where to

like is right some but there. I additional on there you forward. pieces few next we had of the we will all for CapEx last is Jeff there, out and the in don't what already Ankaa-X Ankaa-X. need numbers, to will not learn and mentioned big is see based think earlier, it's already the now, year Ankaa-X needed it But be going we I believe that for that we Ankaa as those that months Ankaa-X most bring capital needed may So

are be So on. we'll all with more to be much careful what we spending going

to Ankaa-X will and more that we for continue to optimize. as make some is and changes have infrastructure already lot here. we Ankaa-X be there But a So of the learn

Operator

Dr. today's conclude the like of I'd to hand Kulkarni to session program back for any remarks. does program. the This question-and-answer further

Subodh Kulkarni

year and questions. forward progresses. interest updating you Thank We you Well, as your the thank look for you. to

Operator

today's program. in the Difficulty] This conference. participation [Technical does gentlemen and conclude Ladies

now You disconnect. Good may day.

Rigetti Computing (RGTI) 11 May 232023 Q1 Earnings call transcript