BOSTON, Aug. 14, 2024 -- Zapata Computing Holdings Inc. (“Zapata AI” or “the Company”), a leading provider of industrial-grade software for enterprise AI, today announced its financial results for the second quarter of 2024 and provided a business update.

Business Highlights

• Significantly expanded partnership with D-Wave Quantum Inc. to accelerate the development and delivery of integrated quantum and generative AI solutions in D‑Wave’s Leap cloud platform
• Successfully collaborated with KPMG on a project to streamline the compliance models of a leading global insurance firm
• Alongside its project collaborators, published select research findings from its participation in Phase II of the Defense Advanced Research Projects Agency (DARPA) Quantum Benchmarking program, a critical milestone in the project’s initiative
• Announced a strategic collaboration with Tech Mahindra that leverages Zapata AI's quantum-based generative AI to improve network operations and customer service for Tech Mahindra's global telecom customers
• Bolstered the senior leadership team with the additions of Sumit Kapur, an accomplished technology industry finance leader, as Chief Financial Officer, and Derron Blakely, who brings a strong legal background at fast-growing public companies in the AI and defense industries, as General Counsel
• Subsequent to Q2 2024-end, announced a Cooperative Research and Development Agreement with the U.S. Department of Defense’s (“DOD”) U.S. Special Operations Command ("USSOCOM") to collaborate on real-time intelligence

Financial highlights

• Revenue of $2.00 million in Q2 2024 versus $1.43 million in Q2 2023
• Gross margin of 36.0% in Q2 2024 versus 19.7% in Q2 2023
• Operating loss of $7.37 million in Q2 2024 versus $4.14 million in Q2 2023
• Net cash used by operating activities of $6.11 million in Q2 2024 versus $3.61 million in Q2 2023
• Cash and cash equivalents of $7.16 million, excluding $0.14 million of restricted cash, as of June 30, 2024 versus $7.25 million, excluding $0.14 million, at March 31, 2024
• $6.06 million in net cash provided from financing activities during Q2 2024
• Qualified pipeline of more than $30 million

Executive Commentary

“Zapata AI is solving AI’s biggest challenges, which include addressing the deficiencies of Large Language Models (LLMs), the cost burden and accessibility challenges of AI compute, and the inherent risks posed to data privacy and security from AI platforms today, through our ensembles of small, quantum-inspired, highly tailored AI models,” said Christopher Savoie, CEO and Co-founder of Zapata AI. “This message has been well received by the market, and we made strong progress during the second quarter in building awareness and appreciation for our technology, evolving our partnerships, and growing our qualified pipeline of customers, which today stands at more than $30 million and spans across several focus industries.”

“As we look ahead, we are excited by the robust level of dialogue we are having with prospective customers. We have seen significant growth in customer interest since the beginning of the year and especially in Q2, as evidenced by strong growth in our qualified pipeline in our target verticals. We are optimistic about an acceleration in our business and converting on this pipeline as we go through the second half of 2024 and beyond,” concluded Savoie.