IonQ Announces Fourth Quarter and Full Year 2023 Financial Results
Full Year Results of
Full Year Results of
Fourth Quarter Results of
Achieved 2024 Technical Milestone of #AQ 35 in
Doubled Compute Space Performance Again, Reaching #AQ 36 in
Achieved First
“IonQ had a landmark year in 2023, meeting and exceeding our financial expectations, and accomplishing our technical goals early,” said
“With the rise of generative AI, we are increasingly hearing from customers about the prohibitively expensive and lengthy compute resources–upwards of
Financial Highlights
-
IonQ recognized revenue of$6.1 million for the quarter and$22.0 million for the full year, putting results at the high end and above the high end of the respective financial outlook range. This represents 98% annual growth compared to$11.1 million in the prior year. -
IonQ achieved$6.7 million in new bookings for the fourth quarter and$65.1 million for the full year, above the high end of the full year financial outlook range. This represents 166% annual growth compared to$24.5 million in the prior year. -
Cash, cash equivalents and investments were
$455.9 million as ofDecember 31, 2023 . -
Net loss was
$41.9 million and Adjusted EBITDA loss was$20.0 million for the fourth quarter. As for the full year 2023, net loss was$157.8 million and Adjusted EBITDA loss was$77.7 million , ahead of IonQ’s full year Adjusted EBITDA financial outlook.* Exclusions from Adjusted EBITDA include a non-cash gain in the fourth quarter of$7.6 million and a full year 2023 loss of$19.2 million related to the change in the fair value of IonQ’s warrant liabilities.
*Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.
Corporate Highlights
-
IonQ today announced the appointment ofRobert Cardillo , former Director of theNational Geospatial-Intelligence Agency , to its Board of Directors. In this role, Cardillo will seek to expand upon IonQ’s work with theU.S. government in establishing public-private partnerships that position theU.S. as a global leader in the quantum economy. -
IonQ today announced the appointment ofBill Scannell , President of Global Sales and Customer Operations at Dell Technologies, to its Board of Directors. As a member of the Board of Directors, Scannell will provide input and direction for IonQ’s system sales strategy and help strengthen the company’s leadership position in the quantum economy.
Technical Highlights
-
IonQ achieved its 2024 technical milestone of #AQ 35 on IonQ Forte inDecember 2023 , a full year ahead of schedule. At #AQ 35,IonQ expects its systems may be more commercially practical than the world’s most powerful quantum simulators for certain applications. These systems will now be more useful than ever for tackling quantum applications, such as those in quantum machine learning and quantum chemistry. -
IonQ today announced that it has furthered its performance leadership by achieving #AQ 36 inJanuary 2024 , also on IonQ Forte. Achieving #AQ 36 roughly doubles the computational space that Forte can now consider, relative to its performance at #AQ 35. -
IonQ announced that it had achieved its first major milestone in implementing photonic interconnects, the core technology that will allowIonQ to scale compute and networking between multiple quantum processing units (QPUs).IonQ can now generate photons entangled with ions repeatedly and reproducibly, creating a quantum state which will allow future quantum systems to communicate and transfer information between each other. -
IonQ today announced that it has demonstrated its forthcoming photonic integrated circuit, or PIC, technology in a lab setting. This technology will allow for the light that controls qubits to be routed directly to QPUs, enabling superior performance and form factors for future generations ofIonQ quantum computers.
Commercial Highlights
-
IonQ announced the start of construction on its first production-class IonQ Forte Enterprise systems in itsSeattle manufacturing facility, with plans to begin delivery to customers by the end of 2024. These #AQ 35 systems will feature modular rack-mounted form factors designed to fit seamlessly into customers’ data centers. -
IonQ announced the availability of IonQ Forte through Amazon Braket Direct, a fully managed, white glove quantum computing service fromAmazon Web Services . Customers can use Braket Direct to reserve dedicated capacity on different quantum devices and connect with quantum computing experts for hands-on support. -
IonQ announced a predictive maintenance project withThompson Machinery , a Caterpillar dealer serving parts ofTennessee andMississippi , to deploy a quantum machine learning model tasked with detecting potential failures in equipment and compare it directly to a classical model. The quantum model was more likely to detect failures, did so with more precision, and shows promise of being economically significant. -
Earlier this month,
IonQ was joined byU.S. SenatorMaria Cantwell from theState of Washington to inaugurate the Company’s newSeattle production facility with a ribbon cutting ceremony. Responding to an uptick in customer demand,IonQ has already decided to increase the footprint of this facility by 50%.
2024 Financial Outlook
-
For the full year 2024,
IonQ expects revenue to be between$37.0 million and$41.0 million , with between$6.5 million and$7.5 million for the first quarter. -
IonQ anticipates full year 2024 bookings of between$70 million and$90 million . -
IonQ anticipates an Adjusted EBITDA** loss of$110.5 million for the full year 2024 at the midpoint of the revenue outlook provided above.
** Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures.” The Company cannot provide a reconciliation between its forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of estimates for stock-based compensation and change in fair value of assumed warrant liabilities, as these items are not within the Company’s control, may vary greatly between periods and could significantly impact future financial results.
Fourth Quarter 2023 Conference Call
Upcoming Investor Conference Participation
Non-GAAP Financial Measures
To supplement IonQ’s consolidated financial statements presented in accordance with GAAP,
About
IonQ Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “plan,” “believe,” “estimates,” “projects,” “could,” “would,” “may,” “will,” “forthcoming” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the company’s technology driving commercial advantage in the future, the company’s future financial and operating performance, including our outlook and guidance, the timing of delivering to customers the first production-class IonQ Forte Enterprise systems, the planned increase to the footprint of the
Consolidated Statements of Operations (unaudited) (in thousands, except share and per share data) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Revenue |
|
$ |
6,106 |
|
|
$ |
3,807 |
|
|
$ |
22,042 |
|
|
$ |
11,131 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cost of revenue (excluding depreciation and amortization) |
|
|
3,163 |
|
|
|
901 |
|
|
|
8,108 |
|
|
|
2,944 |
|
Research and development |
|
|
31,620 |
|
|
|
13,696 |
|
|
|
92,321 |
|
|
|
43,978 |
|
Sales and marketing |
|
|
6,981 |
|
|
|
2,414 |
|
|
|
18,270 |
|
|
|
8,385 |
|
General and administrative |
|
|
15,284 |
|
|
|
9,065 |
|
|
|
50,722 |
|
|
|
35,966 |
|
Depreciation and amortization |
|
|
3,506 |
|
|
|
1,356 |
|
|
|
10,375 |
|
|
|
5,604 |
|
Total operating costs and expenses |
|
|
60,554 |
|
|
|
27,432 |
|
|
|
179,796 |
|
|
|
96,877 |
|
Loss from operations |
|
|
(54,448 |
) |
|
|
(23,625 |
) |
|
|
(157,754 |
) |
|
|
(85,746 |
) |
Gain (loss) on change in fair value of warrant liabilities |
|
|
7,581 |
|
|
|
1,778 |
|
|
|
(19,206 |
) |
|
|
30,136 |
|
Interest income, net |
|
|
5,207 |
|
|
|
3,167 |
|
|
|
19,322 |
|
|
|
7,093 |
|
Other income (expense), net |
|
|
(235 |
) |
|
|
33 |
|
|
|
(85 |
) |
|
|
6 |
|
Loss before income tax expense |
|
|
(41,895 |
) |
|
|
(18,647 |
) |
|
|
(157,723 |
) |
|
|
(48,511 |
) |
Income tax benefit (expense) |
|
|
(9 |
) |
|
|
— |
|
|
|
(48 |
) |
|
|
— |
|
Net loss |
|
$ |
(41,904 |
) |
|
$ |
(18,647 |
) |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Net loss per share attributable to common stockholders—
|
|
$ |
(0.20 |
) |
|
$ |
(0.09 |
) |
|
$ |
(0.78 |
) |
|
$ |
(0.25 |
) |
Weighted average shares used in computing net loss per share
|
|
|
205,305,233 |
|
|
|
199,155,110 |
|
|
|
202,576,492 |
|
|
|
197,727,642 |
|
Consolidated Balance Sheets (unaudited) (in thousands) |
||||||||
|
|
|
|
|
|
|
||
|
|
2023 |
|
|
2022 |
|
||
Assets |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
35,665 |
|
|
$ |
44,367 |
|
Short-term investments |
|
|
319,776 |
|
|
|
311,430 |
|
Accounts receivable |
|
|
11,467 |
|
|
|
3,292 |
|
Prepaid expenses and other current assets |
|
|
23,081 |
|
|
|
12,539 |
|
Total current assets |
|
|
389,989 |
|
|
|
371,628 |
|
Long-term investments |
|
|
100,489 |
|
|
|
182,001 |
|
Property and equipment, net |
|
|
37,515 |
|
|
|
26,014 |
|
Operating lease right-of-use assets |
|
|
4,613 |
|
|
|
3,753 |
|
Intangible assets, net |
|
|
15,077 |
|
|
|
8,944 |
|
|
|
|
742 |
|
|
|
742 |
|
Other noncurrent assets |
|
|
5,155 |
|
|
|
4,910 |
|
Total Assets |
|
$ |
553,580 |
|
|
$ |
597,992 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
5,599 |
|
|
$ |
3,055 |
|
Accrued expenses |
|
|
18,376 |
|
|
|
6,655 |
|
Current portion of operating lease liabilities |
|
|
710 |
|
|
|
591 |
|
Unearned revenue |
|
|
12,087 |
|
|
|
8,729 |
|
Current portion of stock option early exercise liabilities |
|
|
392 |
|
|
|
1,130 |
|
Total current liabilities |
|
|
37,164 |
|
|
|
20,160 |
|
Operating lease liabilities, net of current portion |
|
|
7,395 |
|
|
|
3,459 |
|
Unearned revenue, net of current portion |
|
|
447 |
|
|
|
1,201 |
|
Stock option early exercise liabilities, net of current portion |
|
|
448 |
|
|
|
839 |
|
Warrant liabilities |
|
|
23,004 |
|
|
|
3,819 |
|
Other noncurrent liabilities |
|
|
128 |
|
|
|
303 |
|
Total liabilities |
|
$ |
68,586 |
|
|
$ |
29,781 |
|
Stockholders’ Equity: |
|
|
|
|
|
|
||
Common stock |
|
$ |
20 |
|
|
$ |
20 |
|
Additional paid-in capital |
|
|
839,014 |
|
|
|
769,848 |
|
Accumulated deficit |
|
|
(352,073 |
) |
|
|
(194,302 |
) |
Accumulated other comprehensive loss |
|
|
(1,967 |
) |
|
|
(7,355 |
) |
Total stockholders’ equity |
|
$ |
484,994 |
|
|
$ |
568,211 |
|
Total Liabilities and Stockholders’ Equity |
|
$ |
553,580 |
|
|
$ |
597,992 |
|
Consolidated Statements of Cash Flows (unaudited) (in thousands) |
||||||||
|
|
Year Ended
|
|
|||||
|
|
2023 |
|
|
2022 |
|
||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net loss |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
|
||
Depreciation and amortization |
|
|
10,375 |
|
|
|
5,604 |
|
Non-cash research and development arrangements |
|
|
520 |
|
|
|
520 |
|
Stock-based compensation |
|
|
69,743 |
|
|
|
31,456 |
|
(Gain) loss on change in fair value of warrant liabilities |
|
|
19,206 |
|
|
|
(30,136 |
) |
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
|
(9,746 |
) |
|
|
(1,577 |
) |
Other, net |
|
|
1,474 |
|
|
|
441 |
|
Changes in operating assets and liabilities: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(8,175 |
) |
|
|
(1,510 |
) |
Prepaid expenses and other current assets |
|
|
(14,413 |
) |
|
|
(7,012 |
) |
Accounts payable |
|
|
2,188 |
|
|
|
1,060 |
|
Accrued expenses |
|
|
3,319 |
|
|
|
1,344 |
|
Unearned revenue |
|
|
2,604 |
|
|
|
3,892 |
|
Other assets and liabilities |
|
|
1,865 |
|
|
|
(269 |
) |
Net cash provided by (used in) operating activities |
|
$ |
(78,811 |
) |
|
$ |
(44,698 |
) |
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property and equipment |
|
|
(13,703 |
) |
|
|
(9,336 |
) |
Capitalized software development costs |
|
|
(4,558 |
) |
|
|
(2,179 |
) |
Intangible asset acquisition costs |
|
|
(1,288 |
) |
|
|
(1,049 |
) |
Purchases of available-for-sale securities |
|
|
(298,445 |
) |
|
|
(605,689 |
) |
Maturities and sales of available-for-sale securities |
|
|
386,760 |
|
|
|
310,045 |
|
Business acquired |
|
|
— |
|
|
|
(848 |
) |
Net cash provided by (used in) investing activities |
|
$ |
68,766 |
|
|
$ |
(309,056 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from stock options exercised |
|
|
1,954 |
|
|
|
1,059 |
|
Other financing, net |
|
|
(193 |
) |
|
|
37 |
|
Net cash provided by (used in) financing activities |
|
$ |
1,761 |
|
|
$ |
1,096 |
|
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash |
|
|
(2 |
) |
|
|
— |
|
Net change in cash, cash equivalents and restricted cash |
|
|
(8,286 |
) |
|
|
(352,658 |
) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
|
46,367 |
|
|
|
399,025 |
|
Cash, cash equivalents and restricted cash at the end of the period |
|
$ |
38,081 |
|
|
$ |
46,367 |
|
Reconciliation of Net Loss to Adjusted EBITDA (unaudited) (in thousands) |
||||||||||||||||
|
|
Three Months Ended
|
|
|
Year Ended
|
|
||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||
Net loss |
|
$ |
(41,904 |
) |
|
$ |
(18,647 |
) |
|
$ |
(157,771 |
) |
|
$ |
(48,511 |
) |
Interest income, net |
|
|
(5,207 |
) |
|
|
(3,167 |
) |
|
|
(19,322 |
) |
|
|
(7,093 |
) |
Interest expense |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Income tax expense (benefit) |
|
|
9 |
|
|
|
— |
|
|
|
48 |
|
|
|
— |
|
Depreciation and amortization |
|
|
3,506 |
|
|
|
1,356 |
|
|
|
10,375 |
|
|
|
5,604 |
|
Stock-based compensation |
|
|
31,194 |
|
|
|
8,895 |
|
|
|
69,743 |
|
|
|
31,456 |
|
Loss (gain) on change in fair value of warrant liabilities |
|
|
(7,581 |
) |
|
|
(1,778 |
) |
|
|
19,206 |
|
|
|
(30,136 |
) |
Adjusted EBITDA |
|
$ |
(19,983 |
) |
|
$ |
(13,341 |
) |
|
$ |
(77,721 |
) |
|
$ |
(48,680 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240228606867/en/
IonQ Media Contact:
press@ionq.com
IonQ Investor Contact:
investors@ionq.com
Source: