Exhibit 99.1
IonQ Announces Second Quarter 2023 Financial Results
Second Quarter Results of $5.5 Million in Revenue, Above High End of Range
2023 Full Year Revenue Outlook Increased to $18.9 Million to $19.3 Million
Second Quarter Bookings of $28.0 Million Bring Bookings to $32.2 Million for the First Half
2023 Full Year Bookings Outlook Increased to $49 Million to $56 Million
Established Company’s First Quantum Data Center in Europe with QuantumBasel, which is expected to be Powered by Future #AQ 35 and #AQ 64 Systems
COLLEGE PARK, Md.--(BUSINESS WIRE)-- IonQ (NYSE: IONQ), a leader in the quantum computing industry, today announced financial results for the quarter ended June 30, 2023.
“This was another landmark quarter for IonQ, most notably with a record-setting $28 million in bookings, bringing the total to over $32 million in the first half,” said Peter Chapman, President and CEO of IonQ. “We are now well on our way to our revised, higher bookings expectations of $49 million to $56 million for the year. We are also within striking range of our goal of $100 million in cumulative bookings within the first three years of IonQ’s commercialization, starting in 2021.”
“Our impressive second quarter results come on the heels of us achieving our 2023 technical target of 29 algorithmic qubits (#AQ) seven months early. As our path to #AQ 64 and quantum advantage comes into clearer focus, we have seen both public and private institutions investing not just in our current Forte platform, but in IonQ’s technical roadmap. Our track record of success is beginning to speak for itself in the public markets, and we are relentlessly focused on bringing broad quantum advantage to all our customers.”
Second Quarter 2023 Financial Highlights
*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.
Commercial Highlights
Technical Highlights
2023 Financial Outlook
Second Quarter 2023 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 first quarter ended June 30, 2023 and to provide a business update. The call will be accessible by telephone at 877-407-4018 (domestic) or 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 two hours after its conclusion at 844-512-2921 (domestic) or 412-317-6671 (international) with access code 13739464 and will be available until 11:59 p.m. Eastern time, August 24, 2023. 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, net, interest expense, benefit from income taxes, 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. For IonQ’s investors to be better able to compare the Company’s current results with those of previous periods, IonQ shows a reconciliation of GAAP to non-GAAP financial measures at the end of this release.
About IonQ
IonQ, Inc. is a leader in quantum computing, with a proven track record of innovation and deployment. IonQ’s current generation quantum computer, IonQ Forte, is the latest in a line of cutting-edge systems, boasting an industry-leading 29 algorithmic qubits. Along with record performance, IonQ has defined what it believes is the best path forward to scale.
IonQ is the only company with its quantum systems available through the cloud on Amazon Braket, Microsoft Azure and Google Cloud, as well as through direct API access. IonQ was founded in 2015 by Dr. Christopher Monroe and Dr. Jungsang Kim based on 25 years of pioneering research. To learn more, visit www.ionq.com.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the Company’s ability to further develop and advance its quantum computers and achieve scale; the Company’s ability to reach #AQ 35 and/or #AQ 64 and quantum advantage; the potential benefits of quantum computing and IonQ’s collaborations, partnerships and customer contracts, including those with QuantumBasel and the government of South Korea; IonQ’s market opportunity, anticipated growth, and future financial performance, including management’s financial outlook for the third quarter and full year 2023; continued customer demand for IonQ’s products; and the ability of quantum computing to improve decision-making models and artificial intelligence. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: market adoption of quantum computing solutions and the Company’s products, services and solutions; the ability of the Company to protect its intellectual property; changes in the competitive industries in which the Company operates; changes in laws and regulations affecting the Company’s business; the Company’s ability to implement its business plans, forecasts and other expectations, and identify and realize additional partnerships and opportunities; the Company’s ability to effectively expand geographically; and the risk of downturns in the market and the technology industry including, but not limited to, as a result of public health crises and/or increased inflationary pressures. The foregoing list of factors is not exhaustive. You should
carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of IonQ’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2023 and other documents filed by the Company from time to time with the Securities and Exchange Commission. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and the Company assumes no obligation and does not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectations.
IonQ, Inc.
Condensed Consolidated Statements of Operations
(unaudited)
(in thousands, except share and per share data)
| Three Months Ended |
|
| Six Months Ended |
| |||||||||||
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| |||||
Revenue |
| $ | 5,515 |
|
| $ | 2,608 |
|
| $ | 9,800 |
|
| $ | 4,561 |
|
Costs and expenses: |
|
|
|
|
|
|
|
|
|
|
|
| ||||
Cost of revenue (excluding depreciation and amortization) |
|
| 1,901 |
|
|
| 742 |
|
|
| 2,937 |
|
|
| 1,310 |
|
Research and development |
|
| 19,869 |
|
|
| 9,653 |
|
|
| 36,102 |
|
|
| 16,990 |
|
Sales and marketing |
|
| 3,575 |
|
|
| 2,132 |
|
|
| 6,242 |
|
|
| 4,002 |
|
General and administrative |
|
| 10,930 |
|
|
| 7,558 |
|
|
| 21,511 |
|
|
| 16,752 |
|
Depreciation and amortization |
|
| 2,329 |
|
|
| 1,451 |
|
|
| 4,120 |
|
|
| 2,717 |
|
Total operating costs and expenses |
|
| 38,604 |
|
|
| 21,536 |
|
|
| 70,912 |
|
|
| 41,771 |
|
Loss from operations |
|
| (33,089 | ) |
|
| (18,928 | ) |
|
| (61,112 | ) |
|
| (37,210 | ) |
Change in fair value of warrant liabilities |
|
| (15,537 | ) |
|
| 16,061 |
|
|
| (19,147 | ) |
|
| 29,509 |
|
Interest income, net |
|
| 4,877 |
|
|
| 1,259 |
|
|
| 9,108 |
|
|
| 1,867 |
|
Other income (expense), net |
|
| 31 |
|
|
| (46 | ) |
|
| 95 |
|
|
| (47 | ) |
Loss before benefit for income taxes |
|
| (43,718 | ) |
|
| (1,654 | ) |
|
| (71,056 | ) |
|
| (5,881 | ) |
Benefit for income taxes |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Net loss |
| $ | (43,718 | ) |
| $ | (1,654 | ) |
| $ | (71,056 | ) |
| $ | (5,881 | ) |
Net loss per share attributable to common stockholders— |
| $ | (0.22 | ) |
| $ | (0.01 | ) |
| $ | (0.35 | ) |
| $ | (0.03 | ) |
Weighted average shares used in computing net loss per share |
|
| 201,431,494 |
|
|
| 197,214,022 |
|
|
| 200,775,817 |
|
|
| 196,708,008 |
|
IonQ, Inc.
Condensed Consolidated Balance Sheets
(unaudited)
(in thousands)
| June 30, |
|
| December 31, |
| |||
| 2023 |
|
| 2022 |
| |||
Assets |
|
|
|
|
|
| ||
Current assets: |
|
|
|
|
|
| ||
Cash and cash equivalents |
| $ | 13,984 |
|
| $ | 44,367 |
|
Short-term investments |
|
| 361,677 |
|
|
| 311,430 |
|
Accounts receivable |
|
| 2,428 |
|
|
| 3,292 |
|
Prepaid expenses and other current assets |
|
| 13,236 |
|
|
| 12,539 |
|
Total current assets |
|
| 391,325 |
|
|
| 371,628 |
|
Long-term investments |
|
| 133,542 |
|
|
| 182,001 |
|
Property and equipment, net |
|
| 29,089 |
|
|
| 26,014 |
|
Operating lease right-of-use assets |
|
| 5,605 |
|
|
| 3,753 |
|
Intangible assets, net |
|
| 11,548 |
|
|
| 8,944 |
|
Goodwill |
|
| 742 |
|
|
| 742 |
|
Other noncurrent assets |
|
| 5,001 |
|
|
| 4,910 |
|
Total Assets |
| $ | 576,852 |
|
| $ | 597,992 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
|
| ||
Current liabilities: |
|
|
|
|
|
| ||
Accounts payable |
| $ | 4,560 |
|
| $ | 3,055 |
|
Accrued expenses |
|
| 9,251 |
|
|
| 6,655 |
|
Current portion of operating lease liabilities |
|
| 628 |
|
|
| 591 |
|
Unearned revenue |
|
| 8,428 |
|
|
| 8,729 |
|
Current portion of stock option early exercise liabilities |
|
| 761 |
|
|
| 1,130 |
|
Total current liabilities |
|
| 23,628 |
|
|
| 20,160 |
|
Operating lease liabilities, net of current portion |
|
| 5,609 |
|
|
| 3,459 |
|
Unearned revenue, net of current portion |
|
| 707 |
|
|
| 1,201 |
|
Stock option early exercise liabilities, net of current portion |
|
| 643 |
|
|
| 839 |
|
Warrant liabilities |
|
| 22,966 |
|
|
| 3,819 |
|
Other noncurrent liabilities |
|
| 53 |
|
|
| 303 |
|
Total liabilities |
| $ | 53,606 |
|
| $ | 29,781 |
|
Stockholders’ Equity: |
|
|
|
|
|
| ||
Common stock |
| $ | 20 |
|
| $ | 20 |
|
Additional paid-in capital |
|
| 794,671 |
|
|
| 769,848 |
|
Accumulated deficit |
|
| (265,358 | ) |
|
| (194,302 | ) |
Accumulated other comprehensive loss |
|
| (6,087 | ) |
|
| (7,355 | ) |
Total stockholders’ equity |
|
| 523,246 |
|
|
| 568,211 |
|
Total Liabilities and Stockholders’ Equity |
| $ | 576,852 |
|
| $ | 597,992 |
|
IonQ, Inc.
Condensed Consolidated Statements of Cash Flows
(unaudited)
(in thousands)
|
| Six Months Ended |
| |||||
| 2023 |
|
| 2022 |
| |||
Cash flows from operating activities: |
|
|
|
|
|
| ||
Net loss |
| $ | (71,056 | ) |
| $ | (5,881 | ) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
|
|
| ||
Depreciation and amortization |
|
| 4,120 |
|
|
| 2,717 |
|
Non-cash research and development arrangements |
|
| 260 |
|
|
| 260 |
|
Stock-based compensation |
|
| 21,572 |
|
|
| 12,556 |
|
Change in fair value of warrant liabilities |
|
| 19,147 |
|
|
| (29,509 | ) |
Amortization of premiums and accretion of discounts on available-for-sale securities |
|
| (4,593 | ) |
|
| 108 |
|
Other, net |
|
| 736 |
|
|
| (1,726 | ) |
Changes in operating assets and liabilities: |
|
|
|
|
|
| ||
Accounts receivable |
|
| 2,074 |
|
|
| (801 | ) |
Prepaid expenses and other current assets |
|
| (2,928 | ) |
|
| 3,576 |
|
Accounts payable |
|
| 479 |
|
|
| 1,156 |
|
Accrued expenses |
|
| 2,267 |
|
|
| 484 |
|
Unearned revenue |
|
| (2,005 | ) |
|
| 264 |
|
Other assets and liabilities |
|
| 26 |
|
|
| (133 | ) |
Net cash used in operating activities |
| $ | (29,901 | ) |
| $ | (16,929 | ) |
Cash flows from investing activities: |
|
|
|
|
|
| ||
Purchases of property and equipment |
|
| (2,411 | ) |
|
| (7,022 | ) |
Capitalized software development costs |
|
| (1,950 | ) |
|
| (982 | ) |
Intangible asset acquisition costs |
|
| (628 | ) |
|
| (370 | ) |
Purchases of available-for-sale securities |
|
| (185,377 | ) |
|
| (403,899 | ) |
Maturities and sales of available-for-sale securities |
|
| 189,446 |
|
|
| 73,090 |
|
Net cash used in investing activities |
| $ | (920 | ) |
| $ | (339,183 | ) |
Cash flows from financing activities: |
|
|
|
|
|
| ||
Proceeds from stock options exercised |
|
| 541 |
|
|
| 567 |
|
Other financing, net |
|
| (1 | ) |
|
| 488 |
|
Net cash provided by financing activities |
| $ | 540 |
|
| $ | 1,055 |
|
Net change in cash, cash equivalents and restricted cash |
|
| (30,281 | ) |
|
| (355,057 | ) |
Cash, cash equivalents and restricted cash at the beginning of the period |
|
| 46,367 |
|
|
| 399,025 |
|
Cash, cash equivalents and restricted cash at the end of the period |
| $ | 16,086 |
|
| $ | 43,968 |
|
IonQ, Inc.
Reconciliation of Net Loss to Adjusted EBITDA
(unaudited)
(in thousands)
| Three Months Ended |
|
| Six Months Ended |
| |||||||||||
| 2023 |
|
| 2022 |
|
| 2023 |
|
| 2022 |
| |||||
Net loss |
| $ | (43,718 | ) |
| $ | (1,654 | ) |
| $ | (71,056 | ) |
| $ | (5,881 | ) |
Interest income, net |
|
| (4,877 | ) |
|
| (1,259 | ) |
|
| (9,108 | ) |
|
| (1,867 | ) |
Interest expense |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Benefit for income taxes |
|
| — |
|
|
| — |
|
|
| — |
|
|
| — |
|
Depreciation and amortization expense |
|
| 2,329 |
|
|
| 1,451 |
|
|
| 4,120 |
|
|
| 2,717 |
|
Stock-based compensation |
|
| 11,304 |
|
|
| 5,884 |
|
|
| 21,572 |
|
|
| 12,556 |
|
Change in fair value of assumed warrant liabilities |
|
| 15,537 |
|
|
| (16,061 | ) |
|
| 19,147 |
|
|
| (29,509 | ) |
Adjusted EBITDA |
| $ | (19,425 | ) |
| $ | (11,639 | ) |
| $ | (35,325 | ) |
| $ | (21,984 | ) |
IonQ Media Contact:
Tyler Ogoshi
press@ionq.com
IonQ Investor Contact:
investors@ionq.com