IonQ Announces Fourth Quarter and Full Year 2021 Results – Quantum Computing Report

IonQ Announces Fourth Quarter and Full Year 2021 Results

IonQ announced its fourth quarter and full year 2021 financial results with significant increases from earlier periods and also significant increases from their own earlier forecasts. Fourth quarter 2021 revenue was $1.6 million compared to a third quarter revenue of $234 thousand with full year revenue at $2.1 million. IonQ also reported contracts bookings in 2021 at $16.7 million compared with the previous 2021 estimate of $15 million they made in November. Ionqs EBITDA (Earnings before Interest, Taxes, Depreciation, and Amortization) loss was $28.3 million with a total net loss of $106.2 million. The net loss was dominated by a Change in Fair value of Warrant Liabilities of $63.3 million and Offering Costs Associated with Warrants of $4.3 million. These are non-cash expenses and are expected to be non-recurring. R&D expenditures in 2021 roughly doubled in 2021 at $20.2 million from the previous amount of $10.2 million in 2020.

The company forecasts significant growth in 2022 with revenues between $10.2 million and $10.7 million, and EBITDA loss of around $55 million, and contract bookings between $20 and $24 million. The contract books can extend over several years, which explains why they would be higher than the revenues, particularly in a growing business. The company also warned that the revenue and earnings could be lumpy due to large individual bookings or shipments. This is not uncommon, and we have seen this before in results from classical computing companies that ship expensive supercomputers.

The company highlighted several of their commercial and technical achievements in 2021, most of which we have previously reported on in the Quantum Computing Report. However, there were a few new items that we thought were noteworthy. First, they indicated they are discussing with potential customers the sales of full systems for on-premise installations. This would provide them with additional revenues beyond selling time over the cloud on one of their machines. Although closing of any of these deals is not assured, if it did happen it would augment revenue starting in 2023. IonQ also indicated they are setting up a manufacturing group to allow them to build up machines in higher volume. And finally, they announced they are setting up a team in Seattle, Washington to increase their technical capabilities and take advantage of talent that is available in the Pacific Northwest. Among other activities, this group will be researching the use of photonics to connect multiple ion trap processors together.

You can view IonQs press release announcing their financial results and business update here. And you can find the 10-K Report they have filed with the U.S. Securities and Exchange Commission here.

March 28, 2022

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IonQ Announces Fourth Quarter and Full Year 2021 Results - Quantum Computing Report