NYSE$QBTS

D-Wave Quantum Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

D-Wave reported a substantial increase in bookings but faced a revenue decline and widening losses in Q4 2024.

D-Wave's Q4 2024 revenue declined by 21% to $2.3 million, primarily due to lower professional services revenue. However, bookings surged 502% year-over-year to a record $18.3 million. Despite a 25% drop in gross profit, the company maintained a 63.8% gross margin. Net loss widened to $86.1 million due to a non-cash remeasurement charge related to warrant liabilities.

  • Revenue decreased by 21% to $2.3 million.
  • Bookings surged 502% to $18.3 million.
  • Net loss increased to $86.1 million from $16.0 million last year.
  • Gross profit declined by 25% to $1.5 million.

Headline financials

Total Revenue

$2.31M

Previous: $2.91M-20.5%
EPS (adj)

-$0.08

Previous: -$0.10+20.0%
Q4 Bookings

$18.3M

Previous: $3M+510.0%
Non-GAAP Gross Margin

73.0%

No prior period
GAAP Gross Margin

63.8%

No prior period
Adjusted EBITDA Loss

-$15.3M

No prior period
Net Income

-$86.1M

Previous: -$16M-437.7%
Operating Income

-$20.2M

Previous: -$16.5M-22.3%
Gross Profit

$1.47M

Previous: $1.97M-25.1%

Revenue & EPS history

D-Wave · Revenue · Quarterly

$2.31M

Q4 2024-20.5%vs Q4 2023
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

D-Wave anticipates revenue exceeding $10 million in Q1 2025, largely driven by the sale of an Advantage annealing quantum computer.

Tailwinds

  • Expected revenue surpassing $10 million in Q1 2025.
  • Advantage annealing quantum computer sale to contribute significantly to revenue.
  • Ongoing partnerships expanding market presence.
  • Continued investment in quantum research and development.
  • Strengthened cash position exceeding $300 million.

Headwinds

  • Declining revenue trend in Q4 raises concerns.
  • Increased operating expenses impacting profitability.
  • Significant net loss due to non-cash remeasurement charges.
  • Lower gross profit and margin compression.
  • Higher investments required to maintain growth momentum.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q4 2024

Historical avgQ4 2024

+7.2%

Avg return

Earnings day

+9.5%

Avg return

5 days after

+29.1%

Avg return

30 days after

48%

10 / 21 earnings

Positive

+67.2%

Q1 2023

Best reaction

-21.6%

Q4 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-9.8%-17.7%
Q4 2025-0.6%-7.2%-29.3%
Q3 2025-10.2%-6.5%-13.0%
Q1 2025+51.6%+55.7%+170.2%
Q4 2024+18.7%+85.6%+24.6%
Q3 2024-7.9%-16.3%+180.9%
Q2 2024+4.0%+17.0%+8.6%
Q1 2024+7.7%+0.0%-10.8%
Q4 2023-5.2%-12.4%-31.4%
Q3 2023-16.0%-4.4%+22.4%
Q2 2023-14.2%-11.2%-46.1%
Q1 2022+67.2%+80.3%+208.2%
Q1 2023+67.2%+80.3%+208.2%
Q4 2020+21.0%+12.0%+12.0%
Q4 2022-21.6%-5.2%-36.7%
Q3 2022+9.1%+4.0%-8.3%
Q3 2021+9.1%+4.0%-8.3%
Q2 2021-8.6%-21.7%-24.6%
Q4 2021-8.6%-21.7%-24.6%
Q2 2022-3.1%-16.4%-22.2%
Q1 2021+1.7%+1.8%+1.4%

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