Executive Summary
Rigetti Computing Inc. (RGTI) reported a revenue of $2.4 million for Q3 2024, a decline of 22.94% from Q2 2024 and a decrease of 23.41% year-over-year. The reduction in revenue aligns with the company's ongoing shift towards more complex contract deliverables and the competitive dynamics inherent in quantum computing. Rigetti CEO Subodh Kulkarni emphasized the introduction of a modular architecture and upcoming product launches that will enhance scale and efficiency in quantum processing units (QPUs). Despite the challenges, management remains optimistic about the company's roadmap and cash reserves are projected to suffice until mid-2026, underpinning ongoing R&D investments.
Key Performance Indicators
QoQ: -22.94% | YoY:-23.41%
QoQ: -39.50% | YoY:-46.98%
QoQ: 19.42% | YoY:-33.23%
Key Insights
**Revenue:** $2.4 million, YoY decrease of 23.41% (from $3.1 million) and QoQ decrease of 22.94% (from $3.1 million).
**Gross Profit:** $1.2 million; Gross Margin: 51%, declining from 73% YoY due to lower-margin contracts.
**Net Loss:** $14.8 million or $0.08 per share, improving from a net loss of $22.2 million YoY.
**Operating Expenses:** $18.6 million, down from $19.1 million YoY, attributing partly to the end of certain contractual obligations.
**Cash and Cash Equivalents:** $92.6 millio...
Financial Highlights
Revenue: $2.4 million, YoY decrease of 23.41% (from $3.1 million) and QoQ decrease of 22.94% (from $3.1 million).
Gross Profit: $1.2 million; Gross Margin: 51%, declining from 73% YoY due to lower-margin contracts.
Net Loss: $14.8 million or $0.08 per share, improving from a net loss of $22.2 million YoY.
Operating Expenses: $18.6 million, down from $19.1 million YoY, attributing partly to the end of certain contractual obligations.
Cash and Cash Equivalents: $92.6 million.
Current Ratio: 4.84, indicating strong coverage of current liabilities.
These metrics illustrate a company adjusting strategically while navigating evolving market dynamics, with a focus on long-term technological advancements.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.38M |
-23.41% |
-22.94% |
| Gross Profit |
1.20M |
-46.98% |
-39.50% |
| Operating Income |
-17.35M |
3.05% |
7.84% |
| Net Income |
-14.83M |
-33.23% |
19.42% |
| EPS |
-0.08 |
-53.71% |
8.85% |
Key Financial Ratios
operatingProfitMargin
-729%
operatingCashFlowPerShare
$-0.08
freeCashFlowPerShare
$-0.09
Management Commentary
- Scalability Focus: Dr. Kulkarni noted, "We plan to introduce a new modular system architecture, which will enhance our qubit count significantly by mid-2025." This reflects a strategic pivot to improving cost structure and performance efficiency.
- Management Confidence: Kulkarni expressed confidence in their 84-qubit system achieving targeted fidelities, stating, "Our confidence in our roadmap is increasing."
- Investment in R&D: CFO Jeff Bertelsen pointed toward revenue generation as crucial for funding their strategic initiatives: "Revenue is an important part of our strategy to fund our ongoing research initiatives."
"Our approach to scalability mirroring multi-chip architectures...is the cornerstone of our scaling strategy" - Subodh Kulkarni.
— Subodh Kulkarni
"Revenue and gross margin variability is to be expected at this stage of the company's evolution" - Jeff Bertelsen.
— Jeff Bertelsen
Forward Guidance
Management projects continued investment in R&D targeting product advancements in quantum computing. The upcoming modular architecture aims for rollouts featuring 36-qubit and 100-qubit systems by the latter half of 2025. Rigetti is enhancing efforts to secure government contracts and funding, particularly in light of potential increases with the Quantum Initiative reauthorization, projected to improve funding availability significantly from 2025 onward. Key factors to monitor will include performance on contract deliverables and reliance on government funding, alongside product rollout timelines.