Executive Summary
Rigetti Computing Inc's first-quarter 2024 results reflect a notable 39% year-over-year revenue growth, driven by expanding sales in its quantum processor unit (QPU) segment. While the company's revenue increased to $3.1 million from $2.2 million in Q1 2023, it still reported a net loss of $20.8 million, slightly improving from $23.4 million in the same period last year. Rigetti's management highlighted promising technological advancements, including achieving a remarkable 99.3% median gate fidelity in their 9-qubit quantum system, setting the stage for launching the larger 84-qubit Ankaa 3 system later this year. Overall, the earnings call indicated a strategic pivot towards enhancing hardware sales while fostering vital partnerships across the growing quantum ecosystem.
Key Performance Indicators
QoQ: -126.65% | YoY:-116.97%
QoQ: -3.61% | YoY:-21.13%
QoQ: 65.23% | YoY:-20.57%
QoQ: 56.42% | YoY:-33.33%
Key Insights
**Revenue:** $3.1 million (up 39% YoY)
**Gross Profit:** -$287,000 (-9.4% margin)
**Operating Income:** -$16.6 million
**Net Income:** -$20.8 million (-$0.14 per share)
**Cash Position:** $102.8 million (up from $99.9 million at 2023 year-end)
Rigetti’s revenue growth is a positive indicator; however, the company continues to face pressure on margins and persistent operating losses stemming from high R&D expenses ($9.7 million) and operational expenditures, which amounted to $18.1 mil...
Financial Highlights
Revenue: $3.1 million (up 39% YoY)
Gross Profit: -$287,000 (-9.4% margin)
Operating Income: -$16.6 million
Net Income: -$20.8 million (-$0.14 per share)
Cash Position: $102.8 million (up from $99.9 million at 2023 year-end)
Rigetti’s revenue growth is a positive indicator; however, the company continues to face pressure on margins and persistent operating losses stemming from high R&D expenses ($9.7 million) and operational expenditures, which amounted to $18.1 million, down from $23.7 million in the previous year.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.05M |
38.66% |
-9.60% |
| Gross Profit |
-287.00K |
-116.97% |
-126.65% |
| Operating Income |
-16.59M |
-21.13% |
-3.61% |
| Net Income |
-20.77M |
-20.57% |
65.23% |
| EPS |
-0.14 |
-33.33% |
56.42% |
Key Financial Ratios
operatingProfitMargin
-543%
operatingCashFlowPerShare
$-0.09
freeCashFlowPerShare
$-0.12
Management Commentary
Technology Innovation: Subodh Kulkarni stated, "We achieved a 99.3% median 2-qubit gate fidelity on our 9-qubit Ankaa class quantum system, which gives us confidence for our 84-qubit Ankaa 3..."
Market Expansion: "We launched the Novera QPU Partnership Program... enabling a robust ecosystem for practical quantum computing..."
Financial Management: CFO Jeffrey Bertelsen remarked, "Operating loss for the first quarter of 2024 was $16.6 million, compared to an operating loss of $22 million for the same period of 2023."
"We believe that our existing balances of cash, cash equivalents, and marketable security should be sufficient to meet our anticipated operating cash needs until midway through Q4 2025" - Jeffrey Bertelsen
— Jeffrey Bertelsen
"We intend to grow the Novera QPU Partner Program with additional partners on an ongoing basis." - Subodh Kulkarni
— Subodh Kulkarni
Forward Guidance
Management expressed optimism regarding future growth in the quantum computing market, particularly with the anticipated deployment of the 84-qubit Ankaa 3 system. They aim to streamline costs through operational efficiencies stemming from previous restructuring efforts. Rigetti's existing cash reserves of $102.8 million are expected to support operational needs through at least mid-Q4 2025, but the ongoing requirement for new capital raises could put pressure on their financial health if sales do not meet projections. Investors should closely monitor the execution of the Novera QPU sales and the operational deployment of upcoming quantum systems.