IonQ Reports ‘Fantastic 2022,’ Sees Faster Growth in 2023

Insider Summary

• IonQ beat 2022’s highest earnings guide, with $11.1 million in revenue.
• Cash, cash equivalents and investments were $537.8 million
• Critical Quote: “Our financial outlook for this year predicts even faster growth than in 2022, as customers and prospects continue to demonstrate enthusiasm and commitment to our industry-leading quantum computers and the future of quantum as a whole.” — Peter Chapman, President and CEO of IonQ.

PRESS RELEASE — IonQ (NYSE: IONQ), a leader in the quantum computing industry, announced financial results for the quarter and full year ending December 31, 2022, and provided business updates.

“IonQ had a fantastic 2022. We continue to lead our industry as the world’s most advanced and well-capitalized public pure-play quantum computing company, and by a wide margin,” said Peter Chapman, President and CEO of IonQ.

“We hit our FY22 goal #AQ 25 early, and our 29 #I goals for 2023 ensure that we will work to advance our technical excellence in the industry. As we continue to deliver contrary to our technical roadmap, we expect our systems to continue to be the most powerful in the world, enabling our customers to solve their most complex problems.”

“While we have seen market conditions that slow demand for certain technologies, even impacting some of our associates, IonQ shows no signs of slowing down,” said Chapman. “Our financial outlook for this year predicts faster growth than in 2022, as customers and prospects continue to demonstrate enthusiasm for and commitment to our industry-leading quantum computers and the future of quantum as a whole.”

Financial Highlights 2022

• IonQ beat the guide’s highest 2022 full-year earnings, with $11.1 million in revenue.
• IonQ recognized revenue of $3.8 million for the fourth quarter, compared with $1.6 million in the prior-year period.
• IonQ achieved orders of $24.5 million for the full year 2022.
• Cash, cash equivalents and investments were $537.8 million as of December 31, 2022.
• IonQ’s diverse strategies and partnerships with some of the major global banking institutions mean that the Company’s exposure to current events in the banking sector is not critical. IonQ believes that this approach will continue to serve the Company well in the future.
• IonQ is confident in the state of cash and other financial assets, and believes they provide the Company with sufficient reserves to achieve profitability without the need to raise additional funds, based on the current roadmap.
• Net loss was $18.6 million in the fourth quarter, compared with $74.1 million in the prior-year period, and net loss was $48.5 million for the 2022 full year versus $106.2 million in 2021.
• Adjusted EBITDA* for the fourth quarter was ($13.3) million, compared to ($8.0) million in the prior-year period, and ($48.7) million for full year 2022 compared to ($28.4) million for 2021. Excluded from Adjusted EBITDA are, among other adjustments, the non-cash gains associated with changes in the fair value of IonQ’s warrant obligations of $1.8 million for the fourth quarter and $30.1 million for full year 2022.

* Adjusted EBITDA is a non-GAAP financial measure defined under a “Non-GAAP Financial Measure”, and reconciled to net loss, the closest GAAP comparable measure, at the end of this release.

Financial Prospects for 2023

• For the full year 2023, IonQ expects between $18.4 million and $18.8 million in revenue, with between $3.6 million and $4.0 million for the first quarter.
• IonQ anticipates full 2023 orders of between $38 million and $42 million.
• IonQ anticipates an Adjusted EBITDA** loss of $80.5 million for full year 2023 at the midpoint of the revenue outlook given above.

** Adjusted EBITDA is a non-GAAP financial measure that is defined under “Non-GAAP Financial Measures.” The Company is unable to provide a reconciliation between the estimated Adjusted EBITDA and the unreasonable effortless net loss due to the unavailability of estimates for share-based compensation and the assumed changes in the fair value of the warrant obligations, since these matters are not within the Company’s control, may vary greatly. between periods and could significantly affect future financial results.

Commercial Highlights

Technical Highlights

• IonQ achieves #AQ 25, its technical milestone for 2022, increasing the computing power of the Aria system by approximately 4x. Aria is already believed to be the most powerful quantum computer known, and available to the public via cloud access in Microsoft Azure Quantum Cloud.
• IonQ believes that quantum machine learning, or QML, will be one of the most practical and powerful applications of quantum computing in the coming years, given its ability to search large amounts of data and identify the best statistical matches. IonQ announced a number of QML updates, including:
  • In collaboration with Hyundai Motor Company, IonQ applies QML techniques to 3D object detection for autonomous vehicles to reduce modeling complexity by several orders of magnitude.
  • IonQ successfully designed and executed the first quantum circuit that can simulate human cognitive biases, paving the way for this model to potentially become a key component in the future development of highly effective AI-enabled chatbots.
• In partnership with Hyundai Motor Company, IonQ successfully ran the largest correlated quantum chemistry simulation in history, using the IonQ quantum computer.
• In partnership with Accenture and the Irish Center for High-End Computing, IonQ created a scalable chemistry simulation platform focused on solving human-made carcinogens in the environment.