Rigetti Computing (RGTI) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue was $2.4 million, down 23% year-over-year, with a net loss of $14.8 million, improved from $22.2 million in Q3 2023; nine-month revenue was $8.5 million, nearly flat from 2023.

• Advanced modular system architecture, targeting a 36-qubit system by mid-2025 and a 100+ qubit system by end of 2025, both aiming for 99.5% median 2-qubit gate fidelity.

• Demonstrated successful tiling of 9-qubit chips and introduced ABAA chip fabrication for higher fidelity and scalability.

• Collaborated with Riverlane to achieve real-time quantum error correction on the 84-qubit Ankaa-2 system.

• Expanded international presence with installations at the Israeli Quantum Computing Center and the UK’s National Quantum Computing Center.

Financial highlights

• Gross margin for Q3 2024 was 51%, down from 73% in Q3 2023, impacted by a lower-margin 24-qubit system contract.

• Total operating expenses were $18.6 million, down from $19.1 million year-over-year; operating loss was $17.3 million.

• Non-cash changes in derivative warrant and earn-out liabilities favorably impacted net loss by $2 million.

• Cash used in operations for the nine months ended September 30, 2024 was $42.1 million.

• Cash, cash equivalents, and investments totaled $92.6 million as of September 30, 2024.

Outlook and guidance

• Confident in executing the roadmap to deliver 36-qubit and 100+ qubit systems with high fidelity by 2025, and the 336-qubit Lyra system thereafter.

• Cash and investments expected to fund operations until midway through Q1 2026; additional capital will be needed beyond that period.

• Revenue expected to remain volatile, with development contracts and QPU sales as primary sources.

• No significant increase in OpEx anticipated; spending to remain in line or slightly higher than recent quarters.

• Expect the NQCC contract to continue affecting gross margin through Q1 2025, with a new contract under negotiation.