RGTI - Earnings call 3 2023 | Rigetti Computing, Inc.

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Operator

Good day, and thank you for standing by. Welcome to Rigetti Computing Third Quarter 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Subodh Kulkarni. Please go ahead.

Subodh Kulkarni

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

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

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

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

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

Materials in QPU part & which Quantum QPU, second the quarter laboratory. we unit first I'm to as grow its X-qubit processing with QPU of X-qubit that is of follows of sale of a now which pleased delivery QPU third SQMS. to business sales. a partnership our Center, of quantum we XXXX, XXXX. continue In the the national system XXXX to Rigetti another Fermilab expanded Turning report QPU the to delivered of premier quarter Systems third our our to quarter Superconducting in customer This base,

to with build to manufacturing Delivery contract AFRL Indefinite AFRL a supply allows This quantum AFRL, awarded researchers leverage Directorate the Information customized X-year contract and capabilities Rigetti's were We to quantum with services. Research Force Lab, foundry Air systems. IDIQ Quantity, Indefinite fabrication

QPUs. builds contract, capabilities relationship quantum Rigetti will provide the microwave contract This we quantum and for the scope the X-qubit fabrication be research and integrated harness networking to hardware, quantum circuits, existing cryogenic on our amplifiers, and limited of Within development. to able AFRL between components

enabling that Rigetti's are fabrication agencies national capabilities labs quantum are advantage algorithms to are established our and and technology towards we a recently that report were problems. thrilled believe providing quantum to solving IMPAQT quantum optimization choose to that DARPA progress and computing development. narrow pleased to I'm advance combinatorial breakthroughs. beginning government we leading quantum their QPUs, We hands-on access advance we contract By greater to research awarded for

problems develop goal most Our to are be DARPA which and qubits, types NISQ-era as encoding of of optimization scheduling specifically challenging IMPAQT problems quantum mapped project of available known the computers. best will seeks of efficient the address The enabling as and optimization well larger onto across problems combinatorial project to novel currently to pervasive some problems a to the among solve. numerous most industries with

quantum in awarded XXXX, of studies we an were as Innovate grant the applications computing Additionally, part in U.K. feasibility competition. October

current of using Software at to aims in state-of-the-art the Rigetti existing Edinburgh based National algorithms. the goal laundering the Joining enhance a the learning the is money of improving Together, consortium performance Computing this techniques machine Quantum techniques and work Center. machine Quantum HSBC, Lab by learning with University quantum of

support couplers, to of XX-qubit front, the generation are improve technology lattice and system. system our features our continuing tunable architecture, to to which we work Ankaa-X anticipated a square fourth On chip the performance

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

on systems. fidelity good to our make progress continue fourth generation We with

X-qubit XX-qubit fidelity system our fidelity to XXXX. and higher system, have XX% XX% Ankaa-X continues with XX-qubit X-qubit Ankaa-X XX% median X-qubit get system.Our our X-quibit and our our We with with with fidelity in median XX-qubit median system achieved to X-qubit fidelity fidelity XX% median to over X-qubit higher than plan XX% be than median

XXX-qubit quantum years. system Lyra advantage and demonstrate develop we to Thereafter, X narrow X nQA, to in to intend the

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

Jeffrey Bertelsen

in Revenue Subodh. XXXX company's quarter expected major the government in up to the the of Revenues XX%, nature of third the third this period Thanks, $X.X in million and deliverables in XXXX the contract gross XX%. to of be of evolution, variable margins in of third same XXXX the $X.X of quarter at quarter compared were agencies. stage of million with is XXXX. at from given timing variability Gross came margins

included million reduction by XXXX resulting XXXX workforce. in in in expense in stock reduction same G&A $XXX,XXX compensation lower XXXX. the wages agreement the the expense. $XX.X the side, the quarter of year. million was in February compared the the million value The warrant million Ampere decrease $XX.X with $X.X due $XX.X compared was XXXX quarter third in total primarily in quarter change of G&A decreases to On quarter of reduction XXXX costs benefit increased noncash third OpEx period our expense year-over-year the the and employee the fair to an third the in prior in from expense forward of Other in third The for of

and depreciation of loss of $XX.X compared to compared the was respectively. $XX.X XXXX in an XXXX, XXXX, third XXXX million $X.XX $X.X for same the Net million compared million, for of of warrant noncash amortization $XX.X quarter for the earnout quarter 'XX Net of noncash loss impacted the quarter and or impacted third was by quarter derivative the fair the period quarter respectively. million respectively. same quarter of per of and change third the the $X.X of $X.X stock $X.X million, million favorably $XX.X fair net compensation to the loss liabilities In and of value million of was share million million $XX.X $X.X was $X.XX loss Operating $X.X and expense derivative change in earnout of negatively totaled of XXXX. and totaled the expense million operating a $X.X by to loss for period per of and loss or the for the third share third million XXXX. the value of XXXX third for liabilities million Net the warrant in

of June equivalents available totaled million of for and XXXX. cash Cash, $XXX.X sale as $XXX.X million investments compared as XX, with XXXX, XX, September

assuming raised the XXXX. the months cash Based under XX, During our on December $XX.X expect B. we for common $XX with quarter X ending Riley. we X.X and at of sale available purchase and $XX stock current no operating of the shares third to sale million from cash, our agreement of stock of XXXX, million XXXX, common to have the additional in million of capital is end million equivalents raised securities plan

questions. Thank you. answer to be We your would now happy

Operator

first Krish Cowen. TD Sankar [Operator comes Instructions] from with Our question

Kinney Chin

calling And of technical on Air get [ those great. you and Steven can Any timing components any contract think contract of some based the it's ] on the the might on of Research Force win is for of that more when had long-term be -- kind I cryogenic that details This behalf how contingencies sort that first I or revenues I be maybe wanted that the you when the value provide question maybe highlighted detail of you some of that? soon Yes, highlighted. Krish. on Lab to that for materialize Subodh. a finding might you -- of might just

Subodh Kulkarni

Sure. Thanks, Steven.

in indefinite expect means and IDIQ organization AFRL all value as it's They foundry which to is they affiliated of is by contract services, a So huge in its on hard contract. broad Air us new what committed quantum services because computing. it's indefinite. give definition, certain an moratory Force are the by funding QPU contract, the guidelines It's described, we to a included get put definition Research evaluation. out They Certainly, TOT. it Lab on

expect So we be sizable, it but now. certainly here we quantify cannot sitting right to

quarters. dollars the monetization We Hopefully, started, that that subsequent some already QX. question. already to in that the answers in that QX Regarding increase contract expect in definitely contract value from and your of booked has

Kinney Chin

quarters. And of another QPU you've follow-up the sales in the I last that guess to X sort recognized

just of go need purchasing and to to even you sell number agencies system QPUs with a year. Just more is I into to potential assume kind the make investment. -- there's government next And the side the just these there's that investment it's of long-term that like support previously modality said and big infrastructure better superconducting tributaries. a given -- ministry a issuing given think I [indiscernible] question picture

compared So I the superconducting respect the on modalities scalability and anything maturity modalities? national with to let's competing say labs other guess, does other to with the that about modalities versus, views the say, superconducting these of this

Subodh Kulkarni

Sure.

believe for contenders modalities, leading the one you other So modalities superconducting as superconducting although Certainly, know. the certainly modality there is computing, advantage huge we are of scalability. competitive of has quantum

we XX-qubit, at see, other already are in can are you competitors the range. in similar As superconducting

So benefit certainly already, higher than have scaling other significantly we the and of modalities we competitive are up.

for the Quantum DOE, narrow on benefit that, to government investing X when will we said The have and/or superconducting. committed means X Having area, still the we in classical are organizations of different Advantage they modalities, to benefits compared DoD, applications. significantly offer demonstrating we are about from all as said, which performance us quantum years advantage, invest practical are in cost computing definitely to

we the have dispose to most to in working And QX. our first the name sold Hopefully, QPU, that In now in premier know, now Regarding lab. center be company to In organization. soon. can right X we and -- a now. at in done QX, we'll the are quantum that But that SQMS as only it's national QX, able actually QPU we far first disclose we sales. shipped sold and row any QPU QX the cannot as Fermilab. disclose exciting We has we in computer another to second another the we a

it's for company. the huge So a milestone

are excited super about We it.

accomplishment. that of proud are We

The build. pipeline to continues

getting how researchers They There's hand are the with and doing lot number who of experience research. in optimize, in computations how you university with you lot customers, do do quantum hands-on kinds have to on. first do computing, organizations on-premise do a quantum national how can so labs, of significant on interest computer. and you can They also We value talking do algorithm those a that. but an get developments of do

interested a premise. in customers many reasons getting So are quantum are on computer why there

already have simple refrigerator. existing refrigerator. we way university researchers And have quantum labs computer, into plugged X-qubit national module and enabled dilution many The gets a that it's essentially a an purchased dilution a

put for get running So components fairly the and change our in computer up them, relatively and quickly. some quantum it's to take straightforward off and a they

course. of somebody process we and now experience, on simple on relatively a the hands the technology get development a enabled it's part, right that's and to get focused computer with So what quantum are besides

Kinney Chin

Okay. Perfect.

question, Just I last to quantum service. cloud about I wanted the your if could. ask

shift it's think, interest progress so QCS commercial still I So I either given early nongovernment QCS of still sense and revenues, cloud in any far -- year. focus from all fidelity terms in you for QCS innings that just any very guess, and direct work your in I your strategic know in using guess deliver your noticeable feedback partners customers the your this business. it's ecosystem I to rates made maybe you've to indications engine? shift have from you from with services service

Subodh Kulkarni

sure. So

definitely cloud well and our computer there, advantage. university are likely, have government relationships service to as be is with still select organizations. low we quantum because For still it relatively obviously from as labs most is quantum offers also compared ORLL And away Azure researchers. but our through quantum AWS, the national Commercial and cloud to own interest we

of is definitely quantum X expect dominate usage next in to university from years approach X the as national the some and the explosive narrow researchers years, labs sour, opportunity of where commercial advantage potential we usage now. today, X in, of most to in computing we growth But and As quantum interest comes still that's and or X researchers the today.

Operator

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

David Williams

and you anything that the bit could one had talk I you of answered already, disclose, to can't mentioned that you in I seeing know I'm little previously. here. maybe me a wanted additional or But guess, the if you little inbound joining there activity future? if gives just but about you sale another QPU about see, sales was you you're just, Subodh, this late talk asked if could the a optimism Forgive

Subodh Kulkarni

Sure. Thanks, David.

of this as computer year. hopefully this name disclose at earlier, we the know, and another of QPU So and in QPU time far to lab, of with company another mentioned QX formula, will course, able QX happened national saw, year customer, I soon. in SQMS we We in that that any the center that QX first sold to we to be sold a as as premier was a has is quantum

we from can very for on-premise to algorithm fundamental quantum the Overall, continues now. to many reaction Pipeline sales price of do more development full you recent are computing than expressed X-qubit where have X-qubits, the for interest specifically. for for we future Most expressed dramatically And an has goes dozen pleased with from things think XX-qubit of. applications to getting some build, in and XX-qubit. QPU the XX-qubit them QPU in again, of are interest a talking to go to are and they that up shape are point other QPU of understanding customers right to anything when -- they optimization XX-qubit, most certainly one imposes applications can

that hopefully question? answers your So

David Williams

that's think about stream you've kind got of you opportunity And in XX achieve out you potentials helpful. feels you just no, on then quantum the really here of efficiency everything forward, in maybe No, then you've as to processor it great a of the you've the And some and just definitely progress. you've and to also made instilled multiple terms this go been have very if getting like revenue I the comment that able there. service.

that. So on congrats

you of envision understand they're have I whenever time. in QPUs But given the if just over ago. could guess business you this time how if interest versus today, thought help some where developing would I you guess, us on came you some different And the

Subodh Kulkarni

David. Thanks,

stated XXX-qubit scale from is to and then have development right our So on focus our up fidelity there. we fundamental as before, XX% strategy now technology improve and to to

XX-qubit, then we talking we release, are making when are year. are are are All at we mentioned As at talking closer X-qubit our remarkably And where about XX-qubit, fidelities. XX% in we fidelity, we dealing XX%. XX%. are right than to these X-qubit are press are the are with And then at numbers considering numbers we started QPUs, QPUs now, about we good these more we we XX%

accomplishment company. rates our core advantage. error narrow huge a companies to to which of enables is the because essentially of improve That's a have been since opportunity. by -- that. gets you the the is been continue the mission factor So focus the that's rates error We'll I've quantum objective explosive That growth what flashed the on in and what to

hands we for said that, Having onto in latched want the meantime, who QPU get XX%. experiments researchers I have this opportunities their to QPU close already as themselves. and X-qubit is do to on And sales mentioned,

So sales. are why do to with. finding focused we -- continue -- potential and there But certainly and sales that's near are are can as -- value don't grow the And I hopefully researchers growing they again, sales not in QPU they generate term. exciting continue again, things a practical that. on service, for to to experiment to quantum and cloud I But believe we'll many want keep

technology, is getting that advantage focus possible go to and after counter as as that. growth developing Our on fast the us for come clearly opportunities then explosive narrow

Operator

this concludes session. to call to Dr. And like closing for would question-and-answer back remarks. turn I the the Kulkarni over

Subodh Kulkarni

We results. you for and you after questions. look again. Thank interest QX updating Thanks forward our your to

Operator

conference concludes for this today's Thank all participating. call. you And

disconnect. now may You

Rigetti Computing (RGTI) 9 Nov 232023 Q3 Earnings call transcript