Rigetti Computing Reports Third Quarter 2023 Results
- Rigetti expanded its QPU customer base and was awarded contracts for quantum foundry services and quantum algorithm development, demonstrating growth and diversification in its business operations.
- The company's financial results for Q3 2023 show a net loss of $22.2 million, which may raise concerns about its financial stability and profitability.
- None.
BERKELEY, Calif., Nov. 09, 2023 (GLOBE NEWSWIRE) -- Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the “Company”), a pioneer in full-stack quantum-classical computing, today announced its financial results for the third quarter ended September 30, 2023.
Third Quarter 2023 Financial Highlights
- Total revenues for the three months ended September 30, 2023 were
$3.1 million - Total operating expenses for the three months ended September 30, 2023 were
$19.1 million - Operating loss for the three months ended September 30, 2023 was
$16.8 million - Net loss for the three months ended September 30, 2023 was
$22.2 million - As of September 30, 2023 cash, cash equivalents and available-for-sale securities totaled
$110.2 million - Raised
$12.7 million during the three months ended September 30, 2023 from sales of stock through the Company’s Common Stock Purchase Agreement with B. Riley
Business Updates
9Q QPU Sales Continue; Quantum Foundry Services Contract Awarded
Rigetti continues to grow its QPU system sales. In the third quarter of 2023 Rigetti expanded its QPU customer base with its delivery of a 9-qubit quantum processing unit (QPU) to another premier national laboratory. This follows Rigetti’s first QPU sale in the second quarter of 2023 to Fermilab in which it delivered a 9Q QPU as part of the Company’s partnership with the Superconducting Quantum Materials and Systems Center (SQMS).
Rigetti was awarded a five-year Indefinite Delivery Indefinite Quantity (IDIQ) contract with the Air Force Research Lab (AFRL) Information Directorate to supply AFRL researchers with quantum foundry services. This contract allows AFRL to leverage Rigetti’s fabrication and manufacturing capabilities to build customized quantum systems. Within the scope of the contract, Rigetti will be able to provide quantum integrated circuits (QuICs), quantum-limited amplifiers, cryogenic microwave components, and 9Q QPUs. This contract builds on the existing relationship between Rigetti and AFRL to harness the Company’s fabrication capabilities for quantum networking hardware research and development.
“We are thrilled that leading government agencies and national labs are beginning to choose Rigetti’s established fabrication capabilities to advance their quantum computing research and development. By providing hands-on access to our QPUs we believe that we are enabling greater progress towards narrow quantum advantage and quantum technology breakthroughs,” said Dr. Subodh Kulkarni, Rigetti CEO.
New Contracts Awarded for Application and Algorithm Development
In September 2023, Rigetti was awarded a DARPA IMPAQT contract to advance quantum algorithms for solving combinatorial optimization problems. Rigetti’s project, “Scheduling Problems with Efficient Encoding of Qubits” (SPEEQ), seeks to develop a novel and efficient encoding of optimization problems onto qubits, with the goal of enabling larger problems to be mapped to currently available NISQ-era quantum computers. The project will specifically address scheduling problems, which are among the best-known and most pervasive types of combinatorial optimization problems across numerous industries, as well as some of the most challenging to solve.
Additionally, in October 2023, Rigetti was awarded an Innovate UK grant as part of the Feasibility Studies in Quantum Computing Applications competition. Joining Rigetti in this work is HSBC, the Quantum Software Lab based at the University of Edinburgh, and the National Quantum Computing Centre. Together, the consortium aims to enhance existing anti-money laundering techniques by using quantum machine learning techniques with the goal of improving the performance of current-state-of-the-art machine learning algorithms.
Technology Roadmap Continues as Planned
The Company is continuing to work to improve the system performance of its fourth generation chip architecture, which features a square lattice and tunable couplers, to support its anticipated Ankaa™️️️-2 84-qubit system. The Company’s Ankaa-2 84-qubit system is expected to be deployed and made available to external customers in the fourth quarter of 2023.
‘'We continue to make good progress with fidelity on our fourth generation systems. We have achieved higher than
Outlook
Based on its current operating plan and assuming no additional capital is raised in the three months ending December 31, 2023, Rigetti expects to have cash, cash equivalents, and available-for-sale securities of
Conference Call and Webcast
Rigetti will host a conference call later today, November 9, 2023, at 5:00 p.m. ET, or 2:00 p.m. PT, to discuss its third quarter 2023 financial results.
You can listen to a live audio webcast of the conference call at https://edge.media-server.com/mmc/p/urrxupx7/ or the “Events & Presentations” section of the Company’s Investor Relations website at https://investors.rigetti.com/. A replay of the conference call will be available at the same locations following the conclusion of the call for one year.
To participate in the live call, you must register using the following link: https://register.vevent.com/register/BIdd6903c7b8ab498b8d00181141d4275d. Once registered, you will receive dial-in numbers and a unique PIN number. When you dial in, you will input your PIN and be routed into the call. If you register and forget your PIN, or lose the registration confirmation email, simply re-register to receive a new PIN.
About Rigetti
Rigetti is a pioneer in full-stack quantum computing. The Company has operated quantum computers over the cloud since 2017 and serves global enterprise, government, and research clients through its Rigetti Quantum Cloud Services platform. The Company’s proprietary quantum-classical infrastructure provides high performance integration with public and private clouds for practical quantum computing. Rigetti has developed the industry’s first multi-chip quantum processor for scalable quantum computing systems. The Company designs and manufactures its chips in-house at Fab-1, the industry’s first dedicated and integrated quantum device manufacturing facility. Learn more at www.rigetti.com.
Contacts
Rigetti Computing Investor Contact:
IR@Rigetti.com
Rigetti Computing Media Contact:
press@rigetti.com
Cautionary Language Concerning Forward-Looking Statements
Certain statements in this communication may be considered “forward-looking statements” within the meaning of the federal securities laws, including but not limited to, expectations with respect to the Company’s business and operations, including its expectations with respect to cash, cash equivalents, and available-for-sale securities at the end of 2023 and expectations with respect the Company’s technology roadmap, including its ability to achieve milestones with respect to the Ankaa 84-qubit system and the anticipated Lyra-336 system, and the achievement of target gate fidelities, including external availability of the Ankaa-2 84 qubit system and the achievement of median 2-qubit fidelity of
RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except number of shares and par value) (unaudited) | ||||||||
September 30, | December 31, | |||||||
2023 | 2022 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 41,757 | $ | 57,888 | ||||
Available-for-sale investments | 68,470 | 84,923 | ||||||
Accounts receivable, net | 2,996 | 6,235 | ||||||
Prepaid expenses and other current assets | 3,473 | 2,450 | ||||||
Forward contract—assets | — | 2,229 | ||||||
Deferred offering costs | — | 742 | ||||||
Total current assets | 116,696 | 154,467 | ||||||
Property and equipment, net | 40,348 | 39,530 | ||||||
Operating lease right-of-use assets | 8,028 | 9,316 | ||||||
Other assets | 132 | 129 | ||||||
Total assets | $ | 165,204 | $ | 203,442 | ||||
Liabilities and Stockholders' Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 1,447 | $ | 1,938 | ||||
Accrued expenses and other current liabilities | 7,389 | 8,205 | ||||||
Current portion of deferred revenue | 472 | 961 | ||||||
Current portion of debt | 11,522 | 8,303 | ||||||
Current portion of operating lease liabilities | 2,212 | 2,345 | ||||||
Total current liabilities | 23,042 | 21,752 | ||||||
Debt - net of current portion | 13,111 | 20,635 | ||||||
Operating lease liabilities, less current portion | 6,705 | 7,858 | ||||||
Derivative warrant liabilities | 6,087 | 1,767 | ||||||
Earn-out liabilities | 3,568 | 1,206 | ||||||
Total liabilities | $ | 52,513 | $ | 53,218 | ||||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Preferred stock, par value | — | — | ||||||
Common stock, par value | 14 | 12 | ||||||
Additional paid-in capital | 453,790 | 429,025 | ||||||
Accumulated other comprehensive gain (loss) | 74 | (161 | ) | |||||
Accumulated deficit | (341,187 | ) | (278,652 | ) | ||||
Total stockholders’ equity | 112,691 | 150,224 | ||||||
Total liabilities and stockholders’ equity | $ | 165,204 | $ | 203,442 | ||||
RIGETTI COMPUTING, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) | ||||||||||||||||
Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Revenue | $ | 3,105 | $ | 2,804 | $ | 8,632 | $ | 7,042 | ||||||||
Cost of revenue | 834 | 776 | 1,940 | 2,063 | ||||||||||||
Total gross profit | 2,271 | 2,028 | 6,692 | 4,979 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 13,056 | 17,365 | 39,981 | 44,040 | ||||||||||||
Selling, general and administrative | 6,047 | 15,987 | 20,808 | 43,293 | ||||||||||||
Restructuring | — | — | 991 | — | ||||||||||||
Total operating expenses | 19,103 | 33,352 | 61,780 | 87,333 | ||||||||||||
Loss from operations | (16,832 | ) | (31,324 | ) | (55,088 | ) | (82,354 | ) | ||||||||
Other income (expense), net | ||||||||||||||||
Interest expense | (1,473 | ) | (1,436 | ) | (4,511 | ) | (3,811 | ) | ||||||||
Interest income | 1,263 | 1,042 | 3,746 | 1,172 | ||||||||||||
Change in fair value of derivative warrant liabilities | (3,442 | ) | 8,103 | (4,320 | ) | 19,853 | ||||||||||
Change in fair value of earn-out liabilities | (1,731 | ) | 4,860 | (2,362 | ) | 17,418 | ||||||||||
Transaction costs | — | — | — | (927 | ) | |||||||||||
Total other income (expense), net | (5,383 | ) | 12,569 | (7,447 | ) | 33,705 | ||||||||||
Net loss before provision for income taxes | (22,215 | ) | (18,755 | ) | (62,535 | ) | (48,649 | ) | ||||||||
Provision for income taxes | — | — | — | — | ||||||||||||
Net loss | $ | (22,215 | ) | $ | (18,755 | ) | $ | (62,535 | ) | $ | (48,649 | ) | ||||
Net loss per share attributable to common stockholders - basic and diluted | $ | (0.17 | ) | $ | (0.16 | ) | $ | (0.48 | ) | $ | (0.51 | ) | ||||
Weighted average shares used in computing net loss per share attributable to common stockholders – basic and diluted | 133,866 | 118,571 | 129,173 | 95,691 | ||||||||||||
RIGETTI COMPUTING INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (Unaudited) | ||||||||
Nine Months Ended September 30, | ||||||||
2023 | 2022 | |||||||
Cash flows from operating activities: | ||||||||
Net loss | $ | (62,535 | ) | $ | (48,649 | ) | ||
Adjustments to reconcile net loss to net cash used in operating activities: | ||||||||
Depreciation and amortization | 6,381 | 4,801 | ||||||
Stock-based compensation | 8,727 | 37,643 | ||||||
Change in fair value of earn-out liabilities | 2,362 | (17,418 | ) | |||||
Change in fair value of derivative warrant liabilities | 4,320 | (19,853 | ) | |||||
Change in fair value of forward contract | 2,229 | (5,465 | ) | |||||
Impairment of deferred offering costs | 836 | — | ||||||
Accretion of available-for-sale securities | (2,310 | ) | (356 | ) | ||||
Amortization of debt issuance costs, commitment fees and accretion of debt end-of-term liabilities | 1,100 | 1,072 | ||||||
Non-cash lease expense | 1,288 | — | ||||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | 3,239 | (753 | ) | |||||
Prepaid expenses, other current assets and other assets | (1,027 | ) | (2,247 | ) | ||||
Deferred revenue | (489 | ) | (174 | ) | ||||
Accounts payable | (212 | ) | (694 | ) | ||||
Accrued expenses and other current liabilities | (2,067 | ) | 3,469 | |||||
Other liabilities | — | 142 | ||||||
Net cash used in operating activities | $ | (38,158 | ) | $ | (48,482 | ) | ||
Cash flows from investing activities: | ||||||||
Purchases of property and equipment | (7,511 | ) | (19,294 | ) | ||||
Purchases of available-for-sale securities | (79,047 | ) | (87,186 | ) | ||||
Maturities of available-for-sale securities | 98,082 | — | ||||||
Net cash provided by (used in) investing activities | $ | 11,524 | $ | (106,480 | ) | |||
Cash flows from financing activities: | ||||||||
Proceeds from Business Combination, net of transaction costs paid | — | 225,604 | ||||||
Transaction costs paid directly by Rigetti | — | (18,420 | ) | |||||
Proceeds from issuance of notes payable | — | 5,000 | ||||||
Payment on principal of notes payable | (5,405 | ) | — | |||||
Payments on debt issuance costs | — | (85 | ) | |||||
Payment on loan and security agreement exit fees | — | (1,000 | ) | |||||
Payments on deferred offering costs | (107 | ) | — | |||||
Proceeds from sale of common stock through Common Stock Purchase Agreement | 15,051 | — | ||||||
Proceeds from issuance of common stock upon exercise of stock options and warrants | 1,002 | 5,990 | ||||||
Net cash provided by financing activities | $ | 10,541 | $ | 217,089 | ||||
Effects of exchange rate changes on cash and cash equivalents | (38 | ) | (219 | ) | ||||
Net (decrease) increase in cash and cash equivalents | (16,131 | ) | 61,908 | |||||
Cash and cash equivalents – beginning of period | 57,888 | 12,046 | ||||||
Cash and cash equivalents – end of period | $ | 41,757 | $ | 73,954 | ||||
Supplemental disclosures of other cash flow information: | ||||||||
Cash paid for interest | $ | 3,299 | $ | 2,739 | ||||
Non-cash investing and financing activities: | ||||||||
Initial fair value of earn-out liability acquired in merger | — | 20,413 | ||||||
Initial fair value of private placement and public warrant liability acquired in merger | — | 22,932 | ||||||
Reclassification of loan and security agreement warrants to equity | — | 6,370 | ||||||
Settlement of the first tranche of forward contract | — | 3,305 | ||||||
Capitalization of deferred costs to equity upon share issuance | 13 | 1,098 | ||||||
Purchases of property and equipment recorded in accounts payable | 394 | 449 | ||||||
Purchases of property and equipment recorded in accrued expenses | 605 | — | ||||||
Unrealized gain (loss) Short Term Investments | 273 | (356 | ) | |||||
FAQ
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