D-Wave Quantum Inc. Q1 FY2025 earnings call

• Technical Achievements: Demonstrated quantum supremacy with the 1200 qubit prototype Advantage2, published a blockchain research paper using quantum computation, and deployed blockchain architecture on cloud-based quantum computers.
• Product Development: Advantage2 annealing quantum computer achieved milestones like calibration of 4,400+ qubit processor chips, Fast Anneal feature for faster annealing times, and error mitigation in the 1200 qubit prototype. Physical assembly of the Advantage2 system at Davidson Technologies is complete.
• Commercial Progress: Ford Otosan developed a hybrid quantum application in production, Qubits 2025 event had record attendance with customer use cases displayed, and strong interest in the Leap Quantum Launchpad program.

In the first quarter of fiscal 2025, D-Wave's revenue totaled a record $15 million. This was driven by the sale of an Advantage2 annealing quantum computing system to the Julich Supercomputer Center, which constituted approximately $12.6 million of the quarterly revenue, with QCAAS and professional services making up the balance. Bookings for the first quarter were $1.6 million, a decrease from the prior year. GAAP gross profit was a record $13.9 million, and non-GAAP gross profit was $14 million. The net loss for the quarter was $5.4 million, which was lower than the prior year due to increased gross profit. The cash position was a record $304 million as of March 31.

• D-Wave believes it has the opportunity to be the first independent publicly held quantum computing company to achieve sustained profitability with sufficient cash. - Progress continues on the product roadmap focusing on innovation, scaling, and developing analog digital quantum computing techniques.

• Limited interest from the US Government in system sales due to gate model bias. - Need for partnerships in blockchain as D-Wave is not a blockchain expert. - Gate model quantum computers still require development in error correction technology.

Q: Could you provide more color on blockchain application partnerships?

A: D-Wave is not a blockchain expert and would partner with organizations focused on blockchain to leverage the technology.

Q: What characteristics are sought in a blockchain partner?

A: Partners should be focused on blockchain, with characteristics like expertise in protecting assets and information.

Q: Can the gate model be toggled through software in annealing quantum computers?

A: No, annealing and gate model are different architectures; gate model development is separate and in early R&D.