Rigetti Computing, Inc. Q4 FY2023 earnings call

Key Developments

• In February 2024, awarded Innovate UK grant to develop 24-qubit quantum computer for NQCC.
• Launched Novera quantum processing unit (first commercially available QPU) in December 2023, with two sales to national labs.
• Awarded grants for quantum ML in finance and DARPA program, partnering with Riverlane and ORNL.
• Technology roadmap: Ankaa-2 system at 98% median 2-qubit gate fidelity, plan to reach 99% with Ankaa-3 and develop 336-qubit Lyra system.

Financials

• Fourth quarter 2023 revenue $3.4M, gross margin 75%, operating loss $17.2M, net loss $12.6M.
• Cash position: $99.9M as of Dec 31, 2023; raised $5.5M in Q4 2023 and $12.8M in Q1 2024 from stock sales; filed $250M shelf registration.

There are no distinct product segments with revenue contribution percentages provided. Overall, in the fourth quarter of 2023, revenues were $3.4 million, gross margins were 75%, operating loss was $17.2 million, net loss was $12.6 million. Cash, cash equivalents and available-for-sale investments totaled $99.9 million as of December 31, 2023.

Guidance

• No formal 2024 revenue guidance, but cash runway to early Q3 2025.
• Focus on driving revenues and reducing loss.
• Confidence in technology milestones: Ankaa-3 to reach 99% median 2-qubit gate fidelity by end of 2024, then work on Lyra system.

Risks

• Forward-looking statements subject to risks in annual report, including factors like those affecting actual results differing from forward-looking statements as detailed in Form 10-K and other SEC filings.

Q: Could you give milestones for 2024 and cash outlook?

A: Important milestone is improving fidelity to 99%+ for Ankaa-3; cash runway to early Q3 2025.

Q: Discuss NQCC award for 24-qubit system?

A: UK government competition for foundational quantum computer, chose Rigetti as technology of choice, competition was 6 months, focused on gate-based computing.

Q: Timing of NQCC deployment and Novera QPU details?

A: NQCC facility to be up later this year, Novera QPU is plug-and-play, can ship quickly, ASP around $900K with standard versions but some customization possible.

Q: Next steps and peer comparison?

A: Focus on fidelity and qubit count, superconducting quantum computing has advantages over other modalities, confident in leadership position as shown by US and UK government choices.