COLLEGE PARK, Md., November 06, 2024 -- IonQ, a leader in the quantum computing industry, today announced financial results for the quarter ended September 30, 2024.

“We had yet another banner quarter at IonQ, booking $63.5 million and exceeding the high end of our revenue range. We won a $54.5 million deal with the United States Air Force Research Lab (AFRL) to develop and deliver hardware that enables the scaling and networking of quantum systems,” said Peter Chapman, President and CEO of IonQ. “We have entered a new era of commercialization for quantum networking, as demonstrated by the AFRL deal, today's announcement of the Qubitekk acquisition, and last quarter’s networking win with ARLIS. These announcements advance our position as a market leader in quantum networking, in addition to our pole position in quantum computing.”

“For the first time in IonQ’s history, we are announcing a plan to partner on the development of quantum applications for a production use case with AstraZeneca,” said Chapman. “We believe this monumental collaboration will be the first step to validate the years of pioneering research we have conducted in quantum chemistry.”

Financial Highlights

IonQ recognized revenue of $12.4 million for the third quarter, which is above the high end of the previously provided range and represents 102% growth compared to $6.1 million in the prior year period.

IonQ achieved $63.5 million in new bookings for the third quarter.

Cash, cash equivalents, and investments were $382.8 million as of September 30, 2024.

Net loss was $52.5 million and Adjusted EBITDA loss was $23.7 million for the third quarter.* Exclusions from Adjusted EBITDA include a non-cash loss of $3.9 million related to the change in the fair value of IonQ’s warrant liabilities.

*Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.

Q3 and Recent Commercial Highlights

IonQ announced a $54.5 million contract with the United States Air Force Research Lab (AFRL) to design, develop, and deliver technology and hardware that enables the scaling, networking, and deployability of quantum systems. The project will help advance quantum networking compatibility with existing telecommunications infrastructure, interoperability with different quantum systems and devices, and deployability of systems suitable for various environments. The contract is IonQ’s third with AFRL and will be delivered over four years.

IonQ announced a $9 million agreement with the University of Maryland (UMD) to expand their partnership to provide state-of-the-art quantum computing access at the National Quantum Lab at Maryland (QLab). QLab provides UMD-affiliated students, faculty, researchers, staff, and partners with an unprecedented opportunity to work closely with IonQ’s scientists and engineers as they gain experience with industry-leading trapped ion quantum computers.

IonQ signed a definitive agreement to acquire substantially all of the assets and team of Qubitekk, Inc., a Vista, CA-based quantum networking company. As part of the transaction, which IonQ anticipates closing within the next six months, IonQ will fortify its leading position in the quantum networking industry by bringing on Qubitekk's team, customer base, and technology portfolio of 118 U.S. and international granted patents in the areas of quantum networking hardware and quantum network security and protection.

IonQ announced the creation of a new quantum application development center in collaboration with AstraZeneca. IonQ will be leveraging the power of its quantum experts and AstraZeneca’s world-class scientists to develop applications in their innovation BioVentureHub in Gothenburg, Sweden.

IonQ announced a partnership with Ansys to accelerate simulation, expand high-fidelity design exploration, and reduce product development timelines, enabling faster market entry for more innovative products. The partnership is aimed at making simulation accessible to both quantum experts and non-experts by allowing seamless integration between Ansys software and IonQ computers.

Technical Highlights

IonQ demonstrated remote ion-ion entanglement, the second of four significant milestones required to develop at-scale photonic interconnects. The IonQ team achieved remote entanglement by developing a system to collect photons from two trap wells and route them to a single detection hub. This critical “point-to-point” step established a quantum communication link, an essential element in scaling quantum systems.
IonQ announced a partnership with NKT Photonics to develop next-generation laser systems to power future quantum computers. The partnership includes NKT Photonics developing and delivering three prototype optical subsystems to IonQ in 2025, designed to support the commercialization of IonQ’s data center-ready quantum computers – such as IonQ Tempo and future barium-based systems.

IonQ announced a partnership with imec – a world-renowned R&D center in nanoelectronics and digital technologies – to develop photonic integrated circuits and chip-scale ion trap technology. With these ground-breaking technologies, IonQ aims to reduce overall hardware system size and cost, increase qubit count, and improve system performance and scale.

2024 Financial Outlook

For the full year 2024, IonQ is raising its revenue expectations to between $38.5 million and $42.5 million, with between $7.1 million and $11.1 million for the fourth quarter.

For the full year 2024, IonQ is reiterating its previously stated bookings range of between $75 million and $95 million.

Third Quarter 2024 Conference Call

IonQ will host a conference call today at 4:30 p.m. Eastern time to review the Company’s financial results for the third quarter ended September 30, 2024 and to provide a business update. The call will be accessible by telephone at 877-407-4078 (domestic) or +1-201-689-8471 (international). The call will also be available live via webcast on the Company’s website here, or directly here. A telephone replay of the conference call will be available approximately three hours after its conclusion at 844-512-2921 (domestic) or 412-317-6671 (international) with access code 13748910 and will be available until 11:59 p.m. Eastern time, November 20, 2024. An archive of the webcast will also be available here shortly after the call and will remain available for one year.

Non-GAAP Financial Measures

To supplement IonQ’s condensed consolidated financial statements presented in accordance with GAAP, IonQ uses non-GAAP measures of certain components of financial performance. Adjusted EBITDA is a financial measure that is not required by or presented in accordance with GAAP. Management believes that this measure provides investors an additional meaningful method to evaluate certain aspects of the Company’s results period over period. Adjusted EBITDA is defined as net loss before interest income, interest expense, income tax expense, depreciation and amortization expense, stock-based compensation, change in fair value of assumed warrant liabilities, and other non-recurring non-operating income and expenses. IonQ uses Adjusted EBITDA to measure the operating performance of its business, excluding specifically identified items that it does not believe directly reflect its core operations and may not be indicative of recurring operations. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and IonQ’s non-GAAP measures may be different from non-GAAP measures used by other companies. IonQ shows a reconciliation of GAAP to non-GAAP financial measures at the end of this release.