What Happened?
On Thursday, March 13, 2025, D-Wave Quantum announced its financial results for the Q4 2024 quarter and 2024 fiscal year ending December 31, 2024. See its press release for the full details.
The Numbers
Despite talk of bookings and technical achievements, D-Wave’s revenue was down year-over-year for the fourth quarter and only up 0.8% for the full year. This is not a growth scenario, especially for a company founded in 1999.
The large increases in Net Loss and Diluted Loss Per Share are attributable to the outstanding warrants and the large surge in the company’s share price at the end of 2024. We discuss this effect in our report on Rigetti Computing’s Q4 and FY 2024 earnings.
D-Wave Quantum GAAP Quarterly Financial Results
| Q4 2024 | Q3 2024 | Q/Q | Q4 2023 | Y/Y | |
|---|---|---|---|---|---|
| Revenue ($M) | 2.309 | 1.870 | ↑ 23.5 % | 2.906 | ↓ 20.5 % |
| Operating Expenses ($M) | 21.705 | 21.679 | ↑ 0.1 % | 18.509 | ↑ 17.3 % |
| Net Income (Loss) ($M) | (86.077) | (22.712) | ↑ 279.0 % | (16.014) | ↑ 437.5 % |
| Diluted Earnings (Loss) Per Share ($) | (0.37) | (0.11) | ↑ 236.4 % | (0.10) | ↑ 270.0 % |
D-Wave Quantum GAAP Annual Financial Results
| FY 2024 | FY 2023 | Y/Y | |
|---|---|---|---|
| Revenue ($M) | 8.827 | 8.758 | ↑ 0.8 % |
| Operating Expenses ($M) | 82.786 | 85.168 | ↓ 2.8 % |
| Net Income (Loss) ($M) | (143.879) | (82.715) | ↑ 73.9 % |
| Diluted Earnings (Loss) Per Share ($) | (0.75) | (0.60) | ↑ 25.0 % |
The Charts
Figure 1 shows that revenue has stagnated over eight quarters, but the company has kept its operating expenses in check. Again, we see the effect of the warrant and stock price on the net loss.
CEOs love to talk about increases in bookings during earnings calls. Bookings are essential for commercial companies, as they are signed contracts for future product or service delivery. They are not revenue, though, and not money in the bank until the money changes hands. There are usually clauses in sales contracts allowing the agreements to be broken. It’s also important to note the delivery and payment dates in the bookings. Large and increasing bookings are essential for growth. They can indicate future growth when paired with historical conversion rates to revenue. Over time, we must see those bookings transition into revenue.
In their earnings report, D-Wave stated: “Bookings for the year ended December 31, 2024, were $23.9 million, an increase of $13.4 million, or 128%, from Bookings of $10.5 million for the year ended December 31, 2023.” We’ll watch how those are reflected in 2025 revenue.
Figure 2 shows the Operating Expenses again but also the Research and Development (R&D) expenses. The latter is in line with the former, and the company is keeping R&D well-funded, which is essential in a Deep Tech industry with many competitors.
The Quantum Angle
Sutor Group is now tracking 76 companies that make quantum computing devices, also known as quantum processing units. Of these, only D-Wave and NEC take a quantum annealing approach, a so-called “paradigm,” which is unusual for a technology that dates back to the late 1990s. In contrast, we track 14 companies implementing the analog paradigm (for example, Xanadu and QuEra) and 63 with the digital paradigm (for example, IBM and Infleqtion). While it could be the case that annealing is locked up with patents and other intellectual property, it begs the question, “If annealing is so significant, why aren’t more companies doing it?”. In its defense, D-Wave regularly publishes press releases and use cases showing customers getting good results from its systems.
This week, D-Wave also claimed quantum supremacy over classical computers. As is usual with such claims, scientists question the validity of the results, and others question whether the work constitutes valuable innovation for practical problems important to society and industry. See the New Scientist article “Doubts cast over D-Wave’s claim of quantum computer supremacy” for such a discussion with historical context.
Company Profile
Company
Contact Email: sales@dwavesys.com
Contact Phone: +16046301428
Year Founded
1999
Date Went Public
August 8, 2022
Headquarters
3033 Beta Avenue, Burnaby, British Columbia, V5G 4M9, Canada
Company Description
Generated by Perplexity on March 14, 2025
D-Wave Quantum is a leader in quantum computing systems, software, and services, specializing in annealing quantum computers. The company’s technology utilizes superconducting flux qubits, leveraging quantum effects such as superposition, entanglement, and tunneling to solve complex problems. D-Wave’s quantum computers, like the Advantage2 system, feature thousands of qubits, enabling powerful performance in quantum simulations. The company is known for its advancements in quantum hardware, which have led to significant breakthroughs in quantum computing capabilities. D-Wave’s systems are designed to operate in highly controlled environments, utilizing sophisticated cryogenic refrigeration and shielding.
Senior Leadership
- Alan Baratz, Chief Executive Officer
- John Markovich, Chief Financial Officer
- Lorenzo Martinelli, Chief Revenue Officer
- Trevor Lanting, Chief Development Officer
- Sophie Ames, Chief Human Resources Officer
- Diane Thi Dong Quan Nguyen, General Counsel
- Allison Schwartz, Vice President of Global Government Relations and Public Affairs
Selected Recent News and Announcements
- March 12, 2025 – Beyond Classical: D-Wave First to Demonstrate Quantum Supremacy on Useful, Real-World Problem
- February 18, 2025 – D-Wave and Staque Announce New Hybrid-Quantum Application for Optimization of Autonomous Agriculture Vehicle Movements
- February 13, 2025 – Forschungszentrum Jülich Purchases D-Wave™ Quantum Computer, Becoming First High-Performance Computing Center in the World to Own D-Wave’s Advantage™ System
- February 5, 2025 – D-Wave Announces Qubits 2025 Quantum Computing User Conference
- February 3, 2025 – D-Wave Launches “Quantum Realized” Brand Campaign to Illustrate Benefits of Today’s Quantum Computing
Related Content and Analysis
- November 21, 2024 – The Futurum Group – Quantum in Context: D-Wave, IonQ, and Rigetti 3Q2024 Financial Results
- August 13, 2024 – The Futurum Group – D-Wave Reports Second Quarter 2024 Results
- May 15, 2024 – The Futurum Group – Quantum in Context: D-Wave Q1 2024 Earnings
- April 2, 2024 – The Futurum Group – Quantum in Context: D-Wave Q4 2023 Earnings and Other Numbers
Disclosures and Disclaimers
Bob Sutor is a former employee of IBM and Infleqtion and holds equity positions or stock options in each company. He is a Non-Executive Director for Nu Quantum and Advisor to the venture capital firm Forma Prime.
The information contained in reports, newsletters, articles, and the resources available on the Sutor Group Intelligence and Advisory website is not intended as, and shall not be understood or construed as, legal or financial advice. We are not attorneys, accountants, or financial advisors, nor are we holding ourselves out to be. The information is not a substitute for legal or financial advice from a professional who is aware of the facts and circumstances of your individual or organizational situation.