Insider Brief
- D-Wave reported record bookings of $23.9 million in 2024, up 128% from the prior year, but revenue remained flat at $8.8 million, and net loss widened to $143.9 million.
- The company highlighted a peer-reviewed study claiming quantum computational supremacy and expanded its partnerships, including with Julich Supercomputing Centre and Carahsoft.
- Despite technical progress, financial concerns persist as operating expenses remain high, revenue growth lags bookings, and quantum annealing’s commercial viability remains debated.
D-Wave Quantum Inc. (NYSE: QBTS) reported record bookings of $23.9 million for fiscal year 2024, up 128% from the previous year, according to a statement, but its annual revenue remained flat at $8.8 million. The company also posted a net loss of $143.9 million, a sharp increase from $82.7 million in 2023, largely due to a non-cash charge linked to warrant revaluation.
The pioneering developer of quantum computing systems and services said its cash balance exceeded $300 million as of its latest earnings announcement. CEO Alan Baratz pointed to the company’s progress in delivering tangible quantum computing applications, citing advances in materials simulation and optimization problems.
“Every day D-Wave’s quantum technology is helping customers gain competitive advantages, discover new scientific breakthroughs, and fuel innovations that were previously unimaginable,” said Dr. Alan Baratz, CEO of D-Wave. “Our mission is unwavering – to help organizations realize the benefits of quantum computing now. With record bookings, a record cash position and an unequivocal demonstration of our quantum system outperforming classical on a real-world problem, our progress toward achieving that mission is clear.”
Revenue Unchanged
Despite strong growth in bookings, D-Wave’s revenue remained unchanged, indicating a gap between contract commitments and recognized income. The company attributed an increase in its gross profit, which rose 20% to $5.6 million, to a higher proportion of revenue from quantum-computing-as-a-service (QCaaS) offerings. However, its net loss deepened, driven by a $68.3 million charge related to its warrants.
Fourth-quarter results were mixed. While bookings surged 502% year-over-year to $18.3 million, quarterly revenue dropped 21% to $2.3 million. The company also reported a fourth-quarter net loss of $86.1 million, compared to $16.0 million in the same period last year. A rise in operating expenses contributed to the loss, with personnel and fabrication costs increasing.
Business And Technical Achievements
D-Wave highlighted a series of business and technical milestones, including its claim of quantum computational supremacy for a real-world materials simulation problem. The research, published in Science, demonstrated that D-Wave’s Advantage2 system could solve a materials discovery problem faster and more efficiently than a classical supercomputer.
The company also expanded its commercial and research partnerships. Julich Supercomputing Centre in Germany became the first high-performance computing facility to acquire a D-Wave quantum annealer, which is expected to integrate with Europe’s JUPITER exascale system. Additionally, D-Wave announced an agreement with Carahsoft Technology Corp. to market its quantum computing solutions to the U.S. public sector.
In a move aimed at differentiating itself from competitors, D-Wave launched its “Quantum Uplift” program, targeting organizations dissatisfied with other quantum platforms. The initiative offers incentives for switching to D-Wave systems, which it claims have greater reliability and uptime for solving real-world optimization problems.
The company continued advancing its hardware, announcing the calibration of its third 4,400-qubit Advantage2 processor. The updated system features a 40% energy scale increase and enhanced qubit connectivity, which D-Wave says enables solutions to more complex problems. While other quantum computing companies focus on gate-based quantum computing, D-Wave specializes in annealing quantum systems, which are suited for optimization tasks such as logistics, scheduling, and machine learning.
D-Wave also reported new commercial applications for its technology, including optimizing police vehicle deployment in the U.K. and simulating autonomous agriculture machinery with Staque. Japan Tobacco and Unipol’s tech subsidiary, Leithà, have also used D-Wave systems for drug discovery and insurance portfolio optimization, respectively.
Future Outlook
While the company has seen growing interest from enterprises and governments, questions remain about the long-term profitability of its approach. The company’s operating expenses remain high, and its revenue growth has not kept pace with bookings.
Additionally, the practical advantages of quantum annealing over classical methods remain a subject of debate in the scientific community.
Baratz responded to those criticisms in a statement: “Let me be clear, as there seems to be confusion and misleading claims around our computational supremacy work that Science published in a peer-reviewed paper today. We have shown quantum supremacy on complex materials simulation problems. This is a first for the industry. Other physicists’ papers published this week do not come close to achieving what we accomplished on the D-Wave Advantage2 quantum computer, and their claims are confusing the public. These new pre-prints have only demonstrated mixed success on small simulations and claim without evidence that they can extend easily to larger systems.”
D-Wave is positioning itself as a leader in applied quantum computing, with an emphasis on immediate, real-world benefits. The company has also increased its marketing efforts, launching the “Quantum Realized” campaign to raise awareness of its technology and its role in AI and optimization applications.
Looking ahead, D-Wave is set to host its annual Qubits conference in March 2025, featuring industry leaders discussing commercial and research advancements. The event will include speakers from Julich Supercomputing Centre, Japan Tobacco, NTT Docomo, and the University of Southern California, among others.
