Release Date: March 20, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Quantum Computing Inc (NASDAQ:QUBT) reported significant operational and financial progress in Q4 2024, positioning the company well for scaling and commercialization in 2025.
• The company expanded its partnership with NASA, securing multiple contracts that demonstrate the practical applications of its quantum technology.
• Quantum Computing Inc (NASDAQ:QUBT) is in the final stages of commissioning its photonic chip foundry in Arizona, with production set to begin in early Q2 2025.
• The company's gross margin improved significantly to 55% in Q4 2024, up from 13% in the same quarter of the previous year.
• Quantum Computing Inc (NASDAQ:QUBT) strengthened its balance sheet with a significant increase in cash and cash equivalents, bolstered by net proceeds from stock offerings.

Negative Points

• Q4 2024 revenues decreased to approximately $62,000 compared to $75,000 in the prior year quarter.
• Operating expenses increased to $8.9 million in Q4 2024, up from $6.6 million in the same quarter last year, driven by higher employee-based expenses and increased depreciation.
• The company reported a net loss attributable to common stockholders of $51.2 million, significantly higher than the $6.8 million loss in the prior year quarter.
• The higher net loss was primarily due to non-cash charges related to the mark-to-market of the company's warrant liability.
• There is a startup time expected for the photonic chip foundry to reach full operational efficiency, which may delay immediate revenue generation.

Q & A Highlights

• Warning! GuruFocus has detected 2 Warning Sign with QUBT.

Q: Are you focusing on domestic business or international opportunities? A: (CEO) Currently, our primary focus is on the US market, particularly with commercial entities and US government initiatives. However, we do have some orders for our photonic chips from Europe and Asia, indicating a mix of domestic and international opportunities.

Q: Will the foundry business be operating at full capacity immediately, or will it take time to ramp up? A: (CEO) There will be a ramp-up period as we establish our process design kits (PDKs) and begin delivering proof of concept chips to customers in Q2. We are a new foundry, so initial orders will be smaller, leading to a scaled-up multi-project wafer platform over time.

Q: Can you elaborate on the financial performance and strategic initiatives for Q4 2024? A: (CFO) In Q4 2024, we strengthened our cash position and advanced strategic initiatives. Revenues were $62,000, with a significant gross margin improvement to 55%. Operating expenses increased due to higher employee-based expenses and depreciation. We reported a net loss of $51.2 million, primarily due to non-cash charges related to our merger with QPhoton.

Q: What are the key operational highlights from Q4 2024? A: (CEO) We expanded our partnership with NASA, securing contracts for quantum modeling and solar noise removal. Our photonic chip foundry in Arizona is in the final commissioning stage, with production set to begin in early Q2. We also strengthened industry relationships and secured multiple preorders for our photonic chips.

Q: What is the company's strategy for 2025? A: (CEO) In 2025, we aim to drive revenue from our foundry and quantum machines, expand industry partnerships, and continue R&D innovation. Our strong financial position will support the commercialization of our quantum photonic solutions and expand their adoption.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.