Earnings call transcript Q2 2023

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Operator

Good day and welcome to the Rigetti Computing Second Quarter 2023 Financial Results Call. At this time, all participants are in a listen-only mode. After the speakers' presentations, there'll be a question-and-answer session. [Operator Instructions] As a reminder, today's program is being recorded.

I’d like to turn the call over to Subodh Kulkarni.

begin. may You

Dr. Subodh Kulkarni

thank call and participating Rigetti’s in Good the you second conference covering quarter earnings afternoon, for of XXXX.

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

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

our We be of answer at the your will questions to conclusion pleased remarks.

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

of to quarter our we the the XXXX. I'm milestones of with pleased technology year-end to now on track Turning system. report business that beliefs reach our second remain to our fourth-generation

work the new to have partner our Riverlane long-time system excited improving as techniques our After external launched to we first partner internally, having using are Ankaa-X error architecture. the on on correction

this the year. making innovative to system QX most quantum of our public We forward general to also look available in

goal anticipated X-qubit of to system. As Ankaa-X to XX% improve to previously of disclosed, with work continuing the the fidelity are XX-qubit support Ankaa-X median reaching we performance

system to customers and with improvements XXXX. Our available the be to is performance deployed Ankaa-X in fourth external and of made design quarter expected in XX-qubit anticipated

development to to X-qubit of XX% achieved in achieve committed fidelity we and expect with XXXX, We Lyra™ system be Ankaa-X, thereafter. anticipated median which working of the remain XXX-qubit to the

design, recently which and address collaboration a We use computing we industry. to applications quantum has build, execute, signed investment problem, ADIA Lab distribution the to direct in many also a practical optimize to classification intended that cases announced the probability agreement with solution

tunable Tackling problems part important perform associated which a sale, I'm quantum of entangling is very real-world towards QPU to announce can the recently X-qubit lab, delivered like with QPU first lattice this which pleased computationally and lab. challenging that an features completed national to a X-qubit advantage. couplers a working to gate We that we operations. also our went hardware narrow square

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

and our map achieving remain At on executing we technology stage our to believe are achieving meeting that development, current towards road objectives. key our our advantage. fueling focused We our of milestones goal of quantum

performance. that, And will turn who our call Jeff, to second over with now quarter financial XXXX the I'll review

Jeff Bertelsen

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

cost of deliverables. contracts technical timing share consist development work recognition the to of milestone-based varying Our primarily or with also according arrangements, revenue

the the in variability in margins profit XX%, to is in of at total margins Gross from quarter improvement in quarter XXXX significant of the second came primarily second the of our pricing XX%. contracts. in terms up in gross development gross due The of XXXX

was same $XX million, $XX the OpEx million quarter On the the expense the to in prior side, second total in XXXX in period year. compared of

professional the the due reduction was The second February and fees Other employee in workforce. compensation lower our stock in resulting benefit from included decreases XXXX reduction lower costs, in primarily expense. and wages XXXX with a G&A to decrease of expense agreement quarter the the year-over-year of reduction of forward the X.X warrant XXXX. ampere in of The increased compared a XXXX, quarter value expense in change million the second by fair G&A in for second $XX,XXX quarter in

In to loss expense the second in respectively. second $X.X million quarter and depreciation stock the expense was of second compared million, million, of Operating totaled XXXX for of XXXX. $X.X quarter and same to of the period $X.X million, XXXX, $XX.X XXXX for an million and million operating compensation $XX.X loss amortization compared the totaled $XX of quarter

$XXX compared quarter for $XX of the share, loss $X.XX Net to liability XXXX. loss impacted in of million of the same March XXXX for XXXX, a derivative of was cash sale and changes the for XXXX of investments of respectively. $X.XX million out $X loss for for million totaled warrant urn or XX, million XXXX. million second and liabilities as favorably with period was the equivalents, second $X.X Cash, available net by and per of XX, as June or $XX.X compared share million $XXX.X the quarter per Net

we of at and for our sale second XXXX. million stock securities purchase agreement common have quarter stock $XX of sale $XX million of B. with end common we of plan, available between expect to of cash, our and XXXX, cash from Based operating X.XXX million under raised the During current Riley. $X.XXX the the equivalents, million on shares

by time, will development and continue achieve and this or early our operating to to research business we funding additional plan, XXXX its need Regetti that objectives. you. on efforts its based late At raise XXXX Thank current anticipate

now would answer your We be happy questions. to

Operator

& Quinn question Bolton first Our Company. from Instructions] [Operator with Needham you. Thank comes

Your line is open.

Quinn Bolton

track in in of guys. QPU guess your to wanted of the see the Subodh Great to quarter. for great XX% ask, wondering to progress a things. on sell-on the see quarter, kind technical I the first qubit. the couple second Hey, to Congratulations sale

national even looking how forward, now that question is the the see from the for important are the QPU of commercial starting interest you perhaps more that other quantify can the business growing in a could going perhaps versus million, side, development agencies, forward? the of stream of you to on First, meaningful labs, more sale X.X you. much systems, Thank revenue greater complete and interest portion Then sale? and contracts a become government of

Dr. Subodh Kulkarni

questions. Quinn. Thanks Excellent

So is to from regarding the the the a of obvious for it price be position, still but research contracts, revenue it breakdown, QPU contributed. first question million exact quantify to majority sale X-qubit coming don't suffice although in under dollars. going reasons, of to their is have obviously dilution for who for QPU refrigerators say QPU the We price want a X-qubit customers

here. we gives about are a So of frame you of that reference what talking

majority DOE, our type as DOD cloud cloud, and still service from well revenue contributed obviously, AWS So comes all contracts, during of Azure quarter. they the as the the well as

from with did the performance and seems of the part are we that coupler and along. important do think very to getting saw of to national will pipeline your Suddenly question the we the you more X-qubit. will, to and get we with interest X-qubit Lot excited tunable coming the the that's is to at. the the happen what sale first you with what if QPU, for customers Now be the in expressing are pipeline, particularly you lab QPU a exciting see are sales we very, interest

student research, are of things basic or algorithmic applications, or characterizations, so measurements, control that applications stuff. of training, research, pulse Most the for simple like optimized research kind materials and design,

for works certainly not quantum QPU are it's we having close research even on-premise primarily mostly there in an But to security, to So so and how are quantum being in hybrid who are narrow for climate research, still many trying advantage, interested various on. see environment, or anywhere the advantage used so purposes. their customers reasons,

certainly it this the margins, points pretty we will us to and cash we stream interest be good seems mentioned, to our so be revenue help your potential we definitely that healthy that and answers At make think price excited could see our will a to So that a situation. I questions. Hopefully very good are emerging with feel we sales that margins. fairly be with the X-qubit, the contributor comfortable

Quinn Bolton

was Yes, great. no, couple a of I guess follow-ons. that

I'm buying QPU, purchased own have a included not the in for that's by they're have sale. the the refrigerators I their if is just QPU, so they refrigerator. directly dilution that is know customers, mentioned, expensive, to customer assuming the you dilution are refrigerator pretty First, dilution this

Dr. Subodh Kulkarni

attach general. many customers in in but want obviously can research we we sell that purposes, mean, it purchased fairly can kind to system, system has system whole QPU, a trying already them thing I their FedEx them no will, and dilution to Yes, box, a existing sell talking point and as they you ship it to, it, so if they plug-and-play the I have them UPSI have they about, a system primarily working can are in and if quickly. whole they where immediately when get for of dilution refrigeration the a literally it already just it's said, we or be refrigeration to finished

it's into already primarily roughly will on in who for the from simple to want point obviously If DR, just buy in to have the ship us, range customers the a and X-qubit get and environment be including but we get a system, system plugged buying DR the So higher, whole interested they their it the XX.X operation are fairly QPU focused it are the going. and price in us. from the

Quinn Bolton

this XX so do etc., give QP guess, mentioned last of that you lattice X-qubit a know, or there circuits? and my road the sort business gate to if square complex, doing natural you XX-qubit, kind Got I to they begs capability a to etc., you're square this base do it. a a or customer And XX-qubit QPU question in question, can lattice, of, map QPUs more greater with is, is lattice, nine square a

Dr. Subodh Kulkarni

we map. a go way right And our forward question. as lot Excellent with to road internally to debated the

a we structure square a not when is structure, It's But our As we a if say already it will. is described, of actual XX-qubit. the the square square It's have lattice, Ankaa-X lattice. not qubit. you

So square if by Ankaa-X just a is layout, will. XX a in lattice, you X still

the each square, other. up is of the location So X-qubits how exact it when squares the style we say and with

we some certainly this to published coupler. can to that's couplers stay the way, going much Certainly, versus the that tunable should we look the we performance the internally the lattice. more than other coupler, square actually of camp. a that leads conducting we believe couplers blog are into than fixed significantly a the companies qubit today fixed getting time, It do. more looking to nine at important that couplers are and in than we is is that a and why the But to details tunable And pattern tunable debate others going approach doing are XX with higher we XX better super trying XX. square want by to in part And if at an X XX-qubit XX, with by at be

So at a our website encourage right you is on take that I certainly to look that blog now.

on. fidelity, so and get this if anyway, it to sometime look of just XX-qubit certainly so we by So go XX, lattice XX XXX next that is up XX, But that scale roadmap square and are are and on, from to and end can XX% median-X the open fidelity X, to sense. XXX we going qubit and at if to year, XX% year, makes our get then so

Quinn Bolton

it. Thank Got you.

Dr. Subodh Kulkarni

Quinn. Thanks,

Operator

Thank you.

comes question [indiscernible] Cowen. next from with Our TD

is line Your open.

Unidentified Analyst

terms you're is taking I that Actually, the assume with computing Chris. well QPU guess follow package. Hi, the hardware the referring on of to associated that's calling control couplers, sales.X Steven of part in the sale, some This questions. behalf terms as that's of some thanks associate in of overall for QPU ups I my hardware of the on

a and service be Dhabi sale any QPU the on comments there any associated the for ones? also profile similarly follow the on that? is the official with so And and period sort profile might Labs, revenue over or Abu revenues for of maintenance that And ADIA the partnership, contract long-term

Dr. Subodh Kulkarni

So thanks, good questions, Steven, your for questions.

lab So regarding large is we sale that this itself, the deal a QPU national with.

answer with what Long Leads on-premise. national opportunities, with a So to Quinn organizations. I it's the about. to That's a term, QPU service other sale other is certainly exciting and research get as was organizations, think this the to wanted academic contributor stream. institutes, big previous labs, in they we revenue certainly mentioned

are these complex because QPUs, will they selling service start you support. be systems, need to going When

So term. with expect go sale service stream long QPU definitely to the a

Many dealing I on-premise are early about national who are term, their quite to hundreds service. large with location. think doing of of labs too have we it's talk researchers because them short on of capable

want And in want tuning know-how from they own but like that. fact, optimizations their poor and us, stuff to they and do

term, short to service this not in long is but a the customers discussing revenue of portion are national stream. really we life significant term, So the service definitely of

specific them we large focused on the are question announced. extremely with are probability on ADIA lab, series us and obviously distribution ADIA many the functions. take a some of research collaboration as different release, was financial They the they the we is complex to giving time approached partnership Exciting us on Your ADIA. in in and our things, being about with and mentioned the second classical These problems, organization money. press computation. one areas

We It's we much. that quantum with the are to a haven't more computing want of work a strategic partnership how show We them. small disclosed makes to want things. big We again difference. in them It's excited that scheme about. of

classical these With computing in problems. advantage solving quantum computing, distinct you complex get over a

term, a the Hopefully Long wasn't we as build service from financial, a our revenue these is ADIA answers It with proximity as can close your certainly vertical specifically goal that done demonstrate organizations in We with partner to the opportunity with question. narrow Our advantage really just was real for or quantum term. advantage problems. quantum fantastic a really complex a or long comes mind. to like to narrow ADIA. market, partnership not hope

Unidentified Analyst

Thank you for much so that. does. It

Just with Thanks. progress of error on efforts? know if on makes sales more error for that talk as guys additional development guess doors expectations Riverlane, leads regarding fidelity, about longer to implications the whether contract gate but Riverlane's that internally that? you any I I there Riverlane is signings correction working follow-up, term lab any with potential Since my front, correction big systems additional you projects? supplementing announcement or error not of internal efforts to can your the opens more are or the QPU own correction, your system development Are more focused of for

Dr. Subodh Kulkarni

definitely is important routinely an including on of long system correction. so Certainly system Yes. correction mean, today, any I a computing corrections very classical. even of is error part component error we system, Riverlane correction classical error quantum company error computing to key be any specifically excellent use we focused in term. expect

past in with right we partner excited system. We now have are Ankaa-X with them with partnered them the and to definitely the

but advancement, or do We area to or positively and are working preclude with ourselves, certainly in will we on like others, by quantum are the do computing from talking that generally others doesn't general whole too. received Riverlane we error partnerships at with areas is Any whether looking community. this us be they and in

As the XX%, but some the I a error system. big make of by dominated mentioned does before, make obviously, fidelity It when overall than are fidelities frankly correction your difference, difference. are intrinsic errors much lower that doesn't the

system, overall started start and really corrections your the certainly you and factor XX% XX% increase of performance becoming fidelity range, big a partnership As to early. error in your XX.x% have we and determining why that's the

our from get. results improve final they side, in our they fidelity see we obviously the As the that benefit will

question. your answers that hopefully So

Unidentified Analyst

much Thank quarter. that. so [indiscernible] you you. for Thank the in

Dr. Subodh Kulkarni

you. Thank

Operator

you. Thank

Our David comes from Williams Company. Benchmark next the with question

open. is line Your

David Williams

And wanted congratulations your to my just on Subodh, I success. good afternoon. extend Hey,

think, You've I things things definitely and around a back putting on turning job done, track. fantastic

on your So progress. congratulations

Dr. Subodh Kulkarni

David. Thank you,

David Williams

customers, you're is level I since are you're has hearing guess my And interest a the that first pre-urrival what then? improved? of been around then able you just you've those just maybe terms interest what to and the contracts, done receiving, the from question pre-arrival, from order, the given accomplish you've success feedback short in what and customers seeing that in maybe

Dr. Subodh Kulkarni

launch the side on XX% end with see our to to one increase. the in know, just approach our and Aspen definitely we Aspen you with customers that when we customers were we fidelity our Certainly, company, started, our the about where And is have continued even lower is before improve we the to When our system. continues getting this interest year, more came dealing of fidelity system. We we are I were fidelity M-X we as to interest expect from as increase. the as

be plus definitely year, certainly XX% our at more a lot QPUs. we And interested customers expect next in to

to mean, our the XXs right in we with that mid I are fidelity Ankaa-X. firsthand So see now. high

We work on continue it. to

pretty We Ankaa-X. are with confident

in our this will of at the XX% press we release, before year. As we end be mentioned range plus

And our the using in correlates that customers QPUs. directly from with interest

as the our expect, our for us, we correlated. computers quantum They our from interest service customers up. improve we to directly So use fidelity, from buy continue will definitely to or that go are

first Going excited order it. on forward, and we to certainly, get the are execute

as QPU that's And our already we sold we a disclosed. huge So first accomplishment.

happen. are We what accomplished proud our in of that has making team

right publish as lab square and others We two-level now is couplers national they value are QPU our X-qubit who pipeline results who dealing see results the we has, as with publish and this more in with the lattice. more the customer,

will We definitely to of to well of interest expect expressing increase both And qubits. more we the quality as number be going forward. customers size continue the qubits as

Ankaa-X So XX-qubit. chip is

some customers will this term, XX-qubit the talk or are we That's customers like two-level something So community anyway, term. and square with couplers. to to the to about long But type in and interest global the the right we in systems. in continue more talking using certainly, exciting Near lattice away. X-qubit to more XX-qubit see potential

getting definitely a research right lot interest of customers are a now. on number of We

David Williams

that about? thinking And something latest of to that It's have you seeing that what a the more maybe you great interested how there. year? point of XX briefly, of And be maybe qubit a seeing it's lot away. you released? in is doing latest interest the in there? interest getting much telling closer something And terms kind right as this mentioned your of be that's Are more you'd Are in no, at potentially do interest end would maybe generation? Ankaa-X others you color price do Okay, that phase? Or have but your you research interest around you see

Dr. Subodh Kulkarni

XX-qubit questions. fidelity our levels. to Excellent entertaining certainly, own with bring we maybe XX-qubit. good I We system are right customers and now, with want mean, with first X-qubit type up

So when plus end we have user that the we definitely before a Ankaa-X first the will median-X want ourselves. fidelity. system And year happen to of qubit percent this XX XX-qubit be with

that, research would as out of to a cloud on a today. first, test in coupler I service can Most system a they want before lot want request. certainly it bring you to good premise. we customers tunable quality manner a will Beyond do entertain mean, within X-qubit it

this plus fidelity. you're XX% can As with of getting. A with research with that or goes of because the power is even computational X-qubits, lot handled raise exponential That really XX% you the to number. projects level that is be know, to it's

that's computing number get, you're X-qubits exponential goes Certainly, with So amount power dealing the as couplers. huge power. with you tunable an nine, a of even at up,

on entertain certainly be it your to better year. us for higher will to mean, customers. we of So number projects question. are with take want customers to I for to has fidelity Hopefully, answers But and we execute. will customers next qubits that happy to understand that talking to for be sense them. But with just only make difficult we

David Williams

Thanks so much. And again, congrats on the progress.

Dr. Subodh Kulkarni

Thank you.

Operator

There the closing this you. any over Thank remarks. at turn to I'll Subodh no call further questions are time. for

Dr. Subodh Kulkarni

next again. questions. our updating interest forward you Thank you look you your and progress for to We your quarter. Thank with

Operator

your This and Everyone participation. you now great Thank the have day. you include a may does for program disconnect.

Rigetti Computing (RGTI) 10 Aug 232023 Q2 Earnings call transcript