PALO ALTO, Calif. – November 14, 2024 – D-Wave Quantum Inc., (“D-Wave” or the “Company”) a leader in commercial quantum computing systems, software, and services, today announced financial results for its third fiscal quarter ended September 30, 2024.

“Annealing quantum computing is continuing to drive the commercial adoption of quantum technology,” said Dr. Alan Baratz, CEO of D-Wave. “Organizations around the world – from Vinci Energies in Europe to NTT DOCOMO in Japan – are recognizing the value our technology can bring right now in fueling new discoveries, facilitating operational excellence and driving measurable outcomes."

Third Quarter Fiscal 2024 Financial Highlights

Revenue: Revenue for the third quarter of fiscal 2024 was $1.9 million, a decrease of $0.7 million, or 27%, from the fiscal 2023 third quarter revenue of $2.6 million.

• QCaaS revenue for the third quarter of fiscal 2024 was $1.6 million, an increase of $0.5 million, or 41%, from the fiscal 2023 third quarter QCaaS revenue of $1.1 million, with the increase principally due to a higher average revenue per customer for D-Wave’s QCaaS subscription services.
• As a result of the timing of closing new professional services engagements, professional services revenue for the third quarter of fiscal 2024 was $0.3 million, a decrease of $1.0 million, or 80%, from the fiscal 2023 third quarter professional services revenue of $1.3 million.

Bookings: Bookings for the third quarter of fiscal 2024 were $2.3 million, a decrease of $0.6 million, or 22% from the fiscal 2023 third quarter Bookings of $2.9 million.

GAAP Gross Profit: GAAP gross profit for the third quarter of fiscal 2024 was $1.0 million, a decrease of $0.5 million, or 32%, from the fiscal 2023 third quarter gross profit of $1.5 million, with the decrease due primarily to lower professional services revenue that was partly offset by higher QCaaS revenue.

GAAP Gross Margin: GAAP gross margin for the third quarter of fiscal 2024 was 55.8%, a decrease of 3.9% from the fiscal 2023 third quarter GAAP gross margin of 59.7%.

Non-GAAP Gross Profit: Non-GAAP gross profit for the third quarter of fiscal 2024 was $1.3 million, a decrease of $0.6 million, or 35%, from the fiscal 2023 third quarter Non-GAAP gross profit of $1.9 million. The difference between GAAP and Non-GAAP gross profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross profit.

Non-GAAP Gross Margin: Non-GAAP gross margin for the third quarter of fiscal 2024 was 67.2%, a decrease of 8.4% from the fiscal 2023 third quarter Non-GAAP gross margin of 75.6%. The difference between GAAP and Non-GAAP gross margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross margin.

GAAP Operating Expenses: GAAP operating expenses for the third quarter of fiscal 2024 were $21.7 million, an increase of $1.8 million, or 9%, from the fiscal 2023 third quarter GAAP operating expenses of $19.9 million with the increase driven primarily by $1.3 million in third party professional fees and the balance by incremental investments in go-to-market personnel and related expenses.

Non-GAAP Adjusted Operating Expenses: Non-GAAP Adjusted Operating Expenses for the third quarter of fiscal 2024 were $15.1 million, an increase of $1.6 million, or 12% from the fiscal 2023 third quarter Non-GAAP adjusted operating expenses of $13.5 million, with the difference between GAAP and non-GAAP operating expenses being primarily non-cash stock-based compensation expense, non-recurring one-time expenses, and depreciation and amortization.

Net Loss: Net loss for the third quarter of fiscal 2024 was $22.7 million, an increase of $6.6 million, or 41% from the fiscal 2023 third quarter net loss of $16.1 million. Net loss per share for the third quarter of fiscal 2024 was $0.11 per share, a decrease of 01 from the fiscal 2023 third quarter net loss of $0.12 per share.

Adjusted EBITDA Loss: Adjusted EBITDA loss for the third quarter of fiscal 2024 was $13.8 million, an increase of $2.2 million, or 19%, from the fiscal 2023 third quarter Adjusted EBITDA loss of $11.6 million with the increase due primarily to lower revenue and higher operating expenses that were principally related to the Company’s increased investment in its go-to-market organization.