Rigetti Computing, Inc. (Nasdaq: RGTI) (“Rigetti” or the
“Company”), a pioneer in full-stack quantum-classical computing,
today announced its financial results for the second quarter ended
June 30, 2024.
Second Quarter 2024 Financial Highlights
- Total revenues for the three months ended June 30, 2024 were
$3.1 million
- Total operating expenses for the three months ended June 30,
2024 were $18.1 million
- Operating loss for the three months ended June 30, 2024 was
$16.1 million
- Net loss for the three months ended June 30, 2024 was $12.4
million
- For the period from April 1 - July 12, 2024 raised $27.8
million from the sale of 24.1 million common shares under our
current ATM program, including $15.8 million raised in the three
months ended June 30, 2024
- As of June 30, 2024 cash, cash equivalents and
available-for-sale securities totaled $100.5 million
Technology Updates
Roadmap and QPU PerformanceRigetti remains on track to develop
and deploy its anticipated 84-qubit Ankaa™-3 system with the goal
of achieving a 99+% median 2-qubit gate fidelity by the end of
2024.
“We are seeing very promising results both with fidelity and
speed on our current systems which leverage the underpinning
technology of our upcoming Ankaa-3 system. Our 24-qubit system is
performing in the 99% range for 2-qubit fidelity. Our gate speeds
are 60-80ns, making our systems twice as fast as other
superconducting quantum computing players, and 3-4 orders of
magnitude faster than trapped ion and pure atom quantum computing
systems. We are confident that we can translate this level of
performance to our 84-qubit chip,” says Dr. Subodh Kulkarni,
Rigetti CEO.
Continued Leadership in QPU Scaling Technology
Published Research on Modular Chip
Architecture: Rigetti continues to demonstrate leadership
in developing high performing, scalable quantum processors. In May
2024, Rigetti’s research introducing multichip tunable couplers,
floating tunable couplers that can be used to entangle qubits on
separate chips, was published in the peer-reviewed scientific
journal, Physical Review Applied. Rigetti introduced the world’s
first modular chip architecture in 2021, unlocking the ability to
connect multiple identical chips into a large-scale quantum
processor. This modular approach exponentially reduces
manufacturing complexity and allows for accelerated, predictable
scaling.
This architecture will allow for future Ankaa systems to be
tiled together to create larger qubit count processors without
sacrificing gate performance.
DARPA Benchmarking Phase 2 Research: Furthering
the Company’s work to improve the industry’s understanding of the
requirements needed for fault-tolerant quantum computers, in June
2024 Rigetti released preliminary research on the resource
estimation framework the company developed in Phase 1 of the DARPA
Benchmarking Program. Rigetti’s manuscript presents the resource
estimation framework and a software tool that estimates the
physical resources required to execute specific quantum algorithms,
compiled into their graph-state form, and laid out onto a modular
superconducting hardware architecture. Rigetti will continue to
work to optimize quantum algorithms for a variety of applications
and improve the utility estimates to understand the value
proposition of future quantum computers.
Quantum Optimization Algorithm DevelopmentThe limited number of
qubits available on current quantum computers is a challenge that
must be overcome to deliver utility in quantum combinatorial
optimization. In July 2024, Rigetti introduced a method to solve
large combinatorial problems using a small number of qubits. This
method introduces a qubit-efficient combinatorial solver, which
stores classical variables in an entangled wave function of fewer
qubits. Rigetti’s manuscript demonstrates this method on Rigetti’s
Ankaa-9Q-3 system.
Conference Call and WebcastRigetti will host a
conference call later today, August 8, 2024, at 4:30 p.m. ET, or
1:30 p.m. PT, to discuss its second quarter 2024 financial
results.
You can listen to a live audio webcast of the conference call at
https://edge.media-server.com/mmc/p/p9p5pvoq 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, please dial in toll free at
1-888-596-4144. When your line is picked up, please type in
Conference ID 6114948 and press #.
About RigettiRigetti 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.
ContactsRigetti Computing Investor
Contact:IR@Rigetti.comRigetti Computing Media
Contact:press@rigetti.com
Cautionary Language Concerning Forward-Looking
StatementsCertain statements in this communication may be
considered “forward-looking statements” within the meaning of the
federal securities laws, including statements with respect to the
Company’s expectations with respect to the success and performance,
including anticipated future performance improvements of the
Ankaa-2 system, including the 9-qubit Ankaa system, its ability to
improve 2-qubit gate fidelity performance on future systems,
expectations related to the Company’s ability to achieve milestones
including developing the Ankaa-3 84-qubit system and the 336-qubit
Lyra system on the anticipated timing or at all; future sales or
leases of the Novera QPU, customer adoption of the Ankaa-2 and
Ankaa-3 systems and Novera QPU, the success of, benefits of and
future sales related to the Novera QPU Partner Program; expecations
with respect to scaling to create larger qubit systems without
sacrificing gate performance using the Company’s modular chip
architecture; expectations regarding optimization of quantum
algorithms based on the DARPA benchmarking program; expectations
with respect to combinatorial optimization for algorithm
development; expectations with respect to a vibrant on-premises
quantum computing market and the needs and benefits thereof;
expectations with respect to a quantum-ready society; expectations
with respect to the Company’s partners and customers and the
quantum computing plans and activities thereof; the Company’s
expectations with respect to its unique position to tackle the
challenges of building a quantum computer capable of addressing
real-world problems and practical quantum computing; the Company’s
expectations with respect to the timing of next generation systems;
the Company’s expectations with respect to the anticipated stages
of quantum technology maturation, including its ability to develop
a quantum computer that is able to solve a practical, operationally
relevant problem significantly better, faster, or cheaper than a
current classical solution and achieve quantum advantage on the
anticipated timing or at all. These forward-looking statements are
based upon estimates and assumptions that, while considered
reasonable by the Company and its management, are inherently
uncertain. Factors that may cause actual results to differ
materially from current expectations include, but are not limited
to: the Company’s ability to achieve milestones, technological
advancements, including with respect to its technology roadmap,
help unlock quantum computing, and develop practical applications;
the ability of the Company to obtain government contracts
successfully and in a timely manner and the availability of
government funding; the potential of quantum computing; the ability
of the Company to expand its QPU sales and the Novera QPU
Partnership Program; the success of the Company’s partnerships and
collaborations; the Company’s ability to accelerate its development
of multiple generations of quantum processors; the outcome of any
legal proceedings that may be instituted against the Company or
others; the ability to maintain relationships with customers and
suppliers and attract and retain management and key employees;
costs related to operating as a public company; changes in
applicable laws or regulations; the possibility that the Company
may be adversely affected by other economic, business, or
competitive factors; the Company’s estimates of expenses and
profitability; the evolution of the markets in which the Company
competes; the ability of the Company to implement its strategic
initiatives, expansion plans and continue to innovate its existing
services; the expected use of proceeds from the Company’s past and
future financings or other capital; the sufficiency of the
Company’s cash resources; unfavorable conditions in the Company’s
industry, the global economy or global supply chain, including
financial and credit market fluctuations and uncertainty, rising
inflation and interest rates, disruptions in banking systems,
increased costs, international trade relations, political turmoil,
natural catastrophes, warfare (such as the ongoing military
conflict between Russia and Ukraine and related sanctions and the
state of war between Israel and Hamas and related threat of a
larger conflict), and terrorist attacks; and other risks and
uncertainties set forth in the section entitled “Risk Factors” and
“Cautionary Note Regarding Forward-Looking Statements” in the
Company’s Annual Report on Form 10-K for the year ended December
31, 2023 and Quarterly Report on Form 10-Q for the quarter ended
June 30, 2024, and other documents filed by the Company from time
to time with the SEC. 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 other than as required by applicable
law. The Company does not give any assurance that it will achieve
its expectations.
RIGETTI COMPUTING, INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except number of shares
and par value)(unaudited)
|
|
|
|
|
|
|
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
2023 |
Assets |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
20,684 |
|
|
$ |
21,392 |
|
Available-for-sale
investments |
|
|
79,792 |
|
|
|
78,537 |
|
Accounts receivable |
|
|
5,232 |
|
|
|
5,029 |
|
Prepaid expenses and other
current assets |
|
|
3,959 |
|
|
|
2,709 |
|
Total current assets |
|
|
109,667 |
|
|
|
107,667 |
|
Property and equipment, net |
|
|
45,651 |
|
|
|
44,483 |
|
Operating lease right-of-use
assets |
|
|
6,850 |
|
|
|
7,634 |
|
Other assets |
|
|
244 |
|
|
|
129 |
|
Total assets |
|
$ |
162,412 |
|
|
$ |
159,913 |
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Accounts payable |
|
$ |
1,843 |
|
|
$ |
5,772 |
|
Accrued expenses and other
current liabilities |
|
|
7,609 |
|
|
|
8,563 |
|
Deferred revenue |
|
|
836 |
|
|
|
343 |
|
Current portion of debt |
|
|
13,042 |
|
|
|
12,164 |
|
Current portion of operating
lease liabilities |
|
|
2,234 |
|
|
|
2,210 |
|
Total current liabilities |
|
|
25,564 |
|
|
|
29,052 |
|
Debt, less current portion |
|
|
3,364 |
|
|
|
9,894 |
|
Operating lease liabilities, less
current portion |
|
|
5,455 |
|
|
|
6,297 |
|
Derivative warrant
liabilities |
|
|
3,410 |
|
|
|
2,927 |
|
Earn-out liabilities |
|
|
2,461 |
|
|
|
2,155 |
|
Total liabilities |
|
|
40,254 |
|
|
|
50,325 |
|
Commitments and
contingencies |
|
|
|
|
|
|
Stockholders’ equity: |
|
|
|
|
|
|
Preferred stock, par value
$0.0001 per share, 10,000,000 shares authorized, none
outstanding |
|
|
— |
|
|
|
— |
|
Common stock, par value $0.0001
per share, 1,000,000,000 shares authorized, 179,596,760 shares
issued and outstanding at June 30, 2024 and 147,066,336 shares
issued and outstanding at December 31, 2023 |
|
|
17 |
|
|
|
14 |
|
Additional paid-in capital |
|
|
508,971 |
|
|
|
463,089 |
|
Accumulated other comprehensive
income |
|
|
123 |
|
|
|
244 |
|
Accumulated deficit |
|
|
(386,953 |
) |
|
|
(353,759 |
) |
Total stockholders’ equity |
|
|
122,158 |
|
|
|
109,588 |
|
Total liabilities and
stockholders’ equity |
|
$ |
162,412 |
|
|
$ |
159,913 |
|
|
|
|
|
|
|
|
|
|
RIGETTI
COMPUTING, INC.CONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS (in thousands, except per share
data)(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|
|
2024 |
2023 |
|
2024 |
|
2023 |
Revenue |
|
$ |
3,086 |
|
|
$ |
3,327 |
|
|
$ |
6,138 |
|
|
$ |
5,527 |
|
Cost of revenue |
|
|
1,096 |
|
|
|
597 |
|
|
|
2,648 |
|
|
|
1,106 |
|
Total gross profit |
|
|
1,990 |
|
|
|
2,730 |
|
|
|
3,490 |
|
|
|
4,421 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
Research and development |
|
|
11,870 |
|
|
|
13,219 |
|
|
|
23,341 |
|
|
|
26,925 |
|
Selling, general and
administrative |
|
|
6,205 |
|
|
|
5,747 |
|
|
|
12,819 |
|
|
|
14,761 |
|
Restructuring |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
991 |
|
Total operating expenses |
|
|
18,075 |
|
|
|
18,966 |
|
|
|
36,160 |
|
|
|
42,677 |
|
Loss from operations |
|
|
(16,085 |
) |
|
|
(16,236 |
) |
|
|
(32,670 |
) |
|
|
(38,256 |
) |
Other income (expense), net |
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
(969 |
) |
|
|
(1,574 |
) |
|
|
(2,076 |
) |
|
|
(3,038 |
) |
Interest income |
|
|
1,218 |
|
|
|
1,199 |
|
|
|
2,341 |
|
|
|
2,483 |
|
Change in fair value of
derivative warrant liabilities |
|
|
2,100 |
|
|
|
(5 |
) |
|
|
(483 |
) |
|
|
(878 |
) |
Change in fair value of earn-out
liabilities |
|
|
1,315 |
|
|
|
(350 |
) |
|
|
(306 |
) |
|
|
(631 |
) |
Total other income (expense),
net |
|
|
3,664 |
|
|
|
(730 |
) |
|
|
(524 |
) |
|
|
(2,064 |
) |
Net loss before provision for
income taxes |
|
|
(12,421 |
) |
|
|
(16,966 |
) |
|
|
(33,194 |
) |
|
|
(40,320 |
) |
Provision for income taxes |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Net loss |
|
$ |
(12,421 |
) |
|
$ |
(16,966 |
) |
|
$ |
(33,194 |
) |
|
$ |
(40,320 |
) |
Net loss per share attributable
to common stockholders - basic and diluted |
|
$ |
(0.07 |
) |
|
$ |
(0.13 |
) |
|
$ |
(0.21 |
) |
|
$ |
(0.32 |
) |
Weighted average shares used in
computing net loss per share attributable to common
stockholders – basic and diluted |
|
|
171,903 |
|
|
|
128,515 |
|
|
|
161,705 |
|
|
|
126,657 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
RIGETTI
COMPUTING INC.CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOW(in thousands)(Unaudited)
|
|
|
|
|
Six Months Ended June 30, |
|
|
2024 |
|
2023 |
Cash flows from
operating activities: |
|
|
|
|
|
|
Net loss |
|
$ |
(33,194 |
) |
|
$ |
(40,320 |
) |
Adjustments to reconcile net
loss to net cash used in operating activities: |
|
|
|
|
|
|
Depreciation and
amortization |
|
|
3,334 |
|
|
|
4,249 |
|
Stock-based compensation |
|
|
6,278 |
|
|
|
5,058 |
|
Change in fair value of
earn-out liabilities |
|
|
306 |
|
|
|
631 |
|
Change in fair value of
derivative warrant liabilities |
|
|
483 |
|
|
|
878 |
|
Change in fair value of
forward contract |
|
|
— |
|
|
|
1,144 |
|
Impairment of deferred
offering costs |
|
|
— |
|
|
|
836 |
|
Accretion of
available-for-sale securities |
|
|
(1,776 |
) |
|
|
(1,571 |
) |
Amortization of debt issuance
costs, commitment fees and accretion of debt end-of-term
liabilities |
|
|
547 |
|
|
|
682 |
|
Non-cash lease expense |
|
|
784 |
|
|
|
764 |
|
Changes in operating assets
and liabilities: |
|
|
|
|
|
|
Accounts receivable |
|
|
(203 |
) |
|
|
(1,394 |
) |
Prepaid expenses, other
current assets and other assets |
|
|
(1,021 |
) |
|
|
(889 |
) |
Deferred revenue |
|
|
493 |
|
|
|
(128 |
) |
Accounts payable |
|
|
(1,085 |
) |
|
|
(1,298 |
) |
Accrued expenses and operating
lease liabilities |
|
|
(1,602 |
) |
|
|
(2,260 |
) |
Net cash used in operating
activities |
|
|
(26,656 |
) |
|
|
(33,618 |
) |
Cash flows from
investing activities: |
|
|
|
|
|
|
Purchases of property and
equipment |
|
|
(7,538 |
) |
|
|
(5,735 |
) |
Purchases of
available-for-sale securities |
|
|
(75,995 |
) |
|
|
(57,619 |
) |
Maturities of
available-for-sale securities |
|
|
76,500 |
|
|
|
60,589 |
|
Net cash used in investing
activities |
|
|
(7,033 |
) |
|
|
(2,765 |
) |
Cash flows from
financing activities: |
|
|
|
|
|
|
Payments of principal of notes
payable |
|
|
(6,199 |
) |
|
|
(2,858 |
) |
Proceeds from sale of common
stock from sales through Common Stock Purchase Agreement |
|
|
12,838 |
|
|
|
2,348 |
|
Proceeds from sale of common
stock from sales through At-The-Market (ATM) Offering |
|
|
26,833 |
|
|
|
— |
|
Payments of offering
costs |
|
|
(447 |
) |
|
|
(107 |
) |
Proceeds from issuance of
common stock upon exercise of stock options and warrants |
|
|
68 |
|
|
|
903 |
|
Net cash provided by financing
activities |
|
|
33,093 |
|
|
|
286 |
|
Effects of exchange rate
changes on cash and cash equivalents |
|
|
(112 |
) |
|
|
(79 |
) |
Net decrease in cash and cash
equivalents |
|
|
(708 |
) |
|
|
(36,176 |
) |
Cash and cash equivalents –
beginning of period |
|
|
21,392 |
|
|
|
57,888 |
|
Cash and cash equivalents –
end of period |
|
$ |
20,684 |
|
|
$ |
21,712 |
|
Supplemental
disclosures of other cash flow information: |
|
|
|
|
|
|
Cash paid for interest |
|
$ |
1,504 |
|
|
$ |
2,330 |
|
Non-cash investing and
financing activities: |
|
|
|
|
|
|
Capitalization of deferred
costs to equity upon share issuance |
|
|
132 |
|
|
|
13 |
|
Purchases of property and
equipment recorded in accounts payable |
|
|
739 |
|
|
|
307 |
|
Purchases of property and
equipment recorded in accrued expenses |
|
|
849 |
|
|
|
33 |
|
Purchases of deferred offering
costs in accounts payable |
|
|
29 |
|
|
|
— |
|
Unrealized (Loss) Gain on
short term investments |
|
|
(16 |
) |
|
|
241 |
|
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