Quantum computing small cap D-Wave Quantum quintuples revenue, shares soar
A significant portion of D-Wave’s revenue came from selling its supercomputer to a German research center. / Photo: X/dwavequantum
Shares of D-Wave Quantum, a developer of quantum computing systems and the world's first commercial supplier of quantum supercomputers, surged more than 50% yesterday, May 8, after it reported a record top line, which soared 500% year over year.
Details
Yesterday, D-Wave jumped 51% on the Nasdaq to $10.40 per share, its highest close since August 2022. The rally followed the release of the company’s first-quarter financials, which showed a 509% year-over-year increase in revenue to $15 million. According to FactSet, this is 30% above Wall Street’s consensus estimate.
Most of the first-quarter revenue came from the sale of the company’s Advantage quantum computer to the Jülich Supercomputing Centre in Germany.
The net loss shrank more than threefold from $17.3 million a year earlier to $5.4 million, while the adjusted EBITDA loss halved to $6.1 million.
As of the end of the quarter, D-Wave had a record $304.3 million in consolidated cash. The management believes this to be sufficient to fund the company until it reaches profitability, as noted in the press release.
About D-Wave Quantum
D-Wave Quantum specializes in the development and delivery of quantum computing systems, software, and services. The company is the first to bring quantum computers from research labs to commercial space. Its clients include Japan’s largest telecom operator, NTT Docomo, and Canadian supermarket operator Pattison Food Group.
In early March, D-Wave published a paper in the journal Science claiming that its Advantage2 system solved a problem in 20 minutes that would take one of the world’s most powerful supercomputers, Hewlett Packard Enterprise’s Frontier, nearly 1 million years to complete.
The claim was challenged by researchers at the Center for Computational Quantum Physics, though other scientists said D-Wave’s argument held up.
For the year to date, D-Wave stock is up 24%. All six analysts covering the name have “buy” recommendations. However, the market price has already risen above their average target price of $9.50 per share.
