PALO ALTO, Calif. – May 13, 2024 – D-Wave Quantum Inc., (NYSE: QBTS) (“D-Wave” or the “Company”) a leader in commercial quantum computing systems, software, and services, today announced financial results for its first fiscal quarter ended March 31, 2024.

“D-Wave’s first quarter revenue and bookings reflect growing customer demand for quantum and hybrid quantum solutions that can drive measurable impact today,” said Dr. Alan Baratz, CEO of D-Wave. “Coupled with the significant technical milestones we’ve achieved with the Advantage2TM prototype, we believe our progress leading the commercialization of quantum through our products, customer application development and accelerating adoption is evident.”    

First Quarter Fiscal 2024 Financial Highlights

Revenue: Revenue for the first quarter of fiscal 2024 was $2.5 million, an increase of $0.9 million, or 56%, from the fiscal 2023 first quarter revenue of $1.6 million.

Bookings: Bookings for the first quarter of fiscal 2024 were $4.5 million, an increase of $1.6 million, or 54%, from the fiscal 2023 first quarter Bookings of $2.9 million. This represents D-Wave’s eighth consecutive quarter of year-over-year growth in quarterly bookings.

Customers: In comparing the most recent four quarters with the immediately preceding four quarters, D-Wave had:

• A total of 128 customers compared with a total of 113 customers;
• 75 commercial customers compared with 69 commercial customers; and
• 25 Forbes Global 2000 customers compared with 22 Forbes Global 2000 customers constituting 33% of · the total number of commercial customers.

Commercial Traction: In comparing the most recent four quarters with the immediately preceding four quarters:

• Revenue from commercial customers increased by $2.2 million, or 51%;
• Commercial revenue as a percentage of total revenue increased from 63% to 69%; and
• Revenue from Forbes Global 2000 customers increased by $0.9 million, or 50%, and comprised 27%of total revenue.

GAAP Gross Profit: GAAP gross profit for the first quarter of fiscal 2024 was $1.7 million, an increase of $1.3 million, or 294%, from the fiscal 2023 first quarter gross profit of $0.4 million, with the increase due primarily to the growth in revenue and increased operating efficiencies.
GAAP Gross Margin: GAAP gross margin for the first quarter of fiscal 2024 was 3%, an increase of 40.7% from the fiscal 2023 first quarter GAAP gross margin of 26.6% with the increase due primarily to the growth in revenue and increased operating efficiencies.

Non-GAAP Gross Profit2: Non-GAAP gross profit for the first quarter of fiscal 2024 was $1.9 million, an increase of $1.0 million, or 122%, from the fiscal 2023 first quarter non-GAAP gross profit of $0.9 million. The difference between GAAP and non-GAAP gross profit is limited to non-cash stock-based compensation and depreciation expenses that are excluded from the non-GAAP gross profit.

Non-GAAP Gross Margin2: Non-GAAP gross margin for the first quarter of fiscal 2024 was 6%, an increase of 22.8% from the fiscal 2023 first quarter non-GAAP gross margin of 53.8%. The difference between GAAP and non-GAAP gross margin is limited to non-cash stock-based compensation and depreciation expenses that are excluded from the non-GAAP gross margin.

GAAP Operating Expenses: GAAP operating expenses for the first quarter of fiscal 2024 were $19.2 million, a decrease of $5.9 million, or 24%, from the fiscal 2023 first quarter GAAP operating expenses of $25.1 million with the decrease driven primarily by a decrease of $3.0 million in non-cash stock-based compensation expense, $2.2 million in professional services and $0.5 million in marketing costs.

Non-GAAP Adjusted Operating Expenses: Non-GAAP adjusted operating expenses for the first quarter of fiscal 2024 were $14.8 million, a decrease of $3.0 million, or 17% from the fiscal 2023 first quarter non-GAAP adjusted operating expenses of $17.8 million with the decrease driven primarily by a decrease of $2.2 million in professional services and $0.5 million in marketing costs.

Net Loss: Net loss for the first quarter of fiscal 2024 was $17.3 million, or $0.11 per share, a decrease of $7.1 million, or $0.09 per share, from the fiscal 2023 first quarter net loss of $24.4 million, or $0.20 per share.

Adjusted EBITDA Loss2: Adjusted EBITDA Loss for the first quarter of fiscal 2024 was $12.9 million, a decrease of $4.0 million, or 24%, from the fiscal 2023 first quarter Adjusted EBITDA Loss of $16.9 millionwith the improvement due primarily to higher gross profit and lower operating expenses.