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IonQ Announces Full Year 2021 Financial Results and Provides Business Update – Yahoo Finance

Total contract bookings of $16.7M (5% beat) for the Full Year 2021

Total contract bookings of $1.5M (115% beat) in the Fourth Quarter 2021

Increases total contract bookings guidance midpoint 47% from $15M to $22M for 2022

Revenue of $2.1M (31% beat) for the Full Year 2021

Revenue of $1.6M (50% beat) in the Fourth Quarter 2021

Expects 2022 revenue to be 5x 2021’s topline

COLLEGE PARK, Md., March 28, 2022–(BUSINESS WIRE)–IonQ (NYSE: IONQ), a leader in quantum computing, today announced financial results for the fourth quarter and full year ended December 31, 2021 and provided a business update.

“IonQ’s 2021 was outstanding. We more than tripled our initial bookings target, announced what we believe to be the world’s most powerful quantum computer, and became the world’s first public quantum computing company,” said Peter Chapman, President and CEO of IonQ. “Our fourth quarter results are testament to our success in both technology development and rapid commercialization.”

2021 Financial Highlights

  • After tripling the Company’s original 2021 contract bookings forecast in September from $5 million to $15 million, IonQ beat that number again to end up at $16.7 million for the full year.

  • IonQ achieved revenue of $2.1 million for the full year, which was 31% above the $1.6 million IonQ forecasted on the Company’s Q3 call.

  • Cash, cash equivalents and investments were $603 million as of December 31, 2021.

  • Net loss was $106.2 million and adjusted EBITDA loss was $28.3 million for 2021.*

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

2022 Financial Outlook

  • IonQ expects revenue for 2022 to be 5x IonQ’s 2021 topline. For the full year 2022, IonQ expects revenue to be between $10.2 million and $10.7 million, with between $1.8 million and $2.0 million for the first quarter.

  • IonQ anticipates full year 2022 bookings of between $20 million and $24 million, with between $3 million and $4 million for the first quarter.

  • IonQ believes that over the next two years, one or two system sales could push combined TCV contract bookings over nine figures for the three year period from 2021 to 2023.

  • IonQ anticipates an adjusted EBITDA loss of $55 million for the full year 2022 at the midpoint of the revenue outlook provided above.**

**The Company cannot provide a reconciliation between its forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of estimates for stock-based compensation and change in fair value of assumed warrant liabilities as these items are not within the Company’s control, may vary greatly between periods and could significantly impact future financial results.

Commercial Highlights

Technical Highlights

  • In February, IonQ announced that the latest-generation IonQ Aria system achieved a record 20 algorithmic qubits, representing a massive leap forward not just for IonQ, but for the entire quantum computing industry.

  • In March, Microsoft announced official plans to bring IonQ Aria to the Azure Quantum Cloud, democratizing access to the world’s most powerful quantum computer. IonQ became the only company to make its quantum computers available via all three major cloud providers (Google Cloud, Microsoft Azure, AWS) in 2021.

  • In December, IonQ announced plans to build quantum computers with barium qubits, which the Company expects will contribute to higher gate fidelity, faster gates, lower error rates, and lower system costs.

  • IonQ’s new barium qubits are already delivering on their promise of more accurate quantum computing with recent results showing a 13-fold reduction in state preparation and measurement errors.

  • The Company has secured a sustainable, perpetual source of barium qubits through a partnership with the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL).

  • Earlier this year, IonQ announced the invention of a new family of quantum gates in collaboration with the Duke Quantum Center (DQC) at Duke University. IonQ believes these new gates will eventually lead to more efficient quantum algorithms requiring many fewer qubits. Importantly, the gates can only be run using the unique architecture employed by IonQ and DQC systems.

  • Last year, IonQ became the first team in the world to demonstrate fault-tolerant error correction in practice, as documented in a peer-reviewed Nature paper in collaboration with Duke University, the University of Maryland and the Georgia Institute of Technology.

Team Highlights

  • IonQ hired world-class talent, with key positions filled by Thomas Kramer as Chief Financial Officer (Opower, Cvent), Tom Jones as Chief People Officer (Blue Origin, Microsoft, Honeywell), Laurie Babinski as General Counsel and Secretary (Intuit’s Credit Karma), Ariel Braunstein as Senior Vice President of Product Management (Google, Lytro, Cisco), Dean Kassmann as Vice President of Research and Development (Blue Origin, Amazon), Jordan Shapiro as Vice President of Financial Planning & Analysis (NEA, Samsung), Kevin Caimi as Controller (Opower, Ernst & Young), Anant Sanchetee as Senior Director of Marketing (Meta, Dreem), and Mark Solomon as Director of Quantum Sales (IBM).

  • IonQ appointed Inder Singh, CFO of Arm, as an independent member of the Company’s Board of Directors.

Fourth Quarter 2021 Conference Call

IonQ will host a conference call today at 4:30 p.m. Eastern time to review the Company’s financial results for the fourth quarter and full year ended December 31, 2021. The call will be accessible by telephone at 877-407-4018 (domestic) or 201-689-8471 (international) using passcode 13726155. The call will also be available live via webcast on the Company’s website here, or directly here. A telephone replay of the conference call will be available at 844-512-2921 or 412-317-6671 with access code 13726155 and will be available until 11:59 PM Eastern time, April 11, 2022. An archive of the webcast will also be available shortly after the call and will remain available for 90 days.

Non-GAAP Financial Measures

To supplement IonQ’s condensed financial statements presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. Adjusted EBITDA is a financial measure that is not required by or presented in accordance with GAAP. Management believes that this measure provides investors an additional meaningful method to evaluate certain aspects of the company’s results period over period. Adjusted EBITDA is defined as net loss before interest expense, income tax expense (benefit), depreciation and amortization expense, stock-based compensation, remeasurements of liability-classified warrants, and other nonrecurring nonoperating income and expenses. We use Adjusted EBITDA to measure the operating performance of our business, excluding specifically identified items that we do not believe directly reflect our core operations and may not be indicative of our recurring operations. The presentation of non-GAAP financial measures is not meant to be considered in isolation or as a substitute for the financial results prepared in accordance with GAAP, and the Company’s non-GAAP measures may be different from non-GAAP measures used by other companies. For IonQ’s investors to be better able to compare its current results with those of previous periods, the Company has shown a reconciliation of GAAP to non-GAAP financial measures at the end of this release.

About IonQ

IonQ, Inc. is a leader in quantum computing, with a proven track record of innovation and deployment. IonQ’s latest generation quantum computer, IonQ Aria, is the world’s most powerful quantum computer, and IonQ has defined what it believes is the best path forward to scale.

IonQ is the only company with its quantum systems available through the cloud on Amazon Braket, Microsoft Azure, and Google Cloud, as well as through direct API access. IonQ was founded in 2015 by Christopher Monroe and Jungsang Kim based on 25 years of pioneering research. To learn more, visit www.ionq.com.

Forward-Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Some of the forward-looking statements can be identified by the use of forward-looking words. Statements that are not historical in nature, including the words “anticipate,” “expect,” “suggests,” “plan,” “believe,” “intend,” “estimates,” “targets,” “projects,” “should,” “could,” “would,” “may,” “will,” “forecast” and other similar expressions are intended to identify forward-looking statements. These statements include those related to the Company’s ability to further develop and advance its quantum computers and achieve scale; ability to attract personnel; market opportunity, anticipated growth, and future financial performance, including management’s financial outlook for 2022. Forward-looking statements are predictions, projections and other statements about future events that are based on current expectations and assumptions and, as a result, are subject to risks and uncertainties. Many factors could cause actual future events to differ materially from the forward-looking statements in this press release, including but not limited to: management’s financial outlook for 2022; market adoption of quantum computing solutions and the Company’s products, services and solutions; the ability of the Company to protect its intellectual property; changes in the competitive industries in which the Company operates; changes in laws and regulations affecting the Company’s business; the Company’s ability to implement its business plans, forecasts and other expectations, and identify and realize additional partnerships and opportunities; and the risk of downturns in the market and the technology industry including, but not limited to, as a result of the COVID-19 pandemic. The foregoing list of factors is not exhaustive. You should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of IonQ’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2021 and other documents filed by the Company from time to time with the Securities and Exchange Commission. 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 do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. The Company does not give any assurance that it will achieve its expectation

IonQ, Inc.

Condensed Consolidated Statements of Operations

(unaudited)

(in thousands, except share and per share data)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Revenue

$

1,648

$

$

2,099

$

Costs and expenses:

Cost of revenue (excluding depreciation and amortization)

298

86

1,040

143

Research and development

4,917

2,514

20,228

10,157

Sales and marketing

849

223

3,233

486

General and administrative

5,416

1,707

13,737

3,547

Depreciation and amortization

1,005

405

2,548

1,400

Total operating costs and expenses

12,485

4,935

40,786

15,733

Loss from operations

(10,837

)

(4,935

)

(38,687

)

(15,733

)

Change in fair value of warrant liabilities

(63,332

)

(63,332

)

Offering costs associated with warrants

(4,259

)

Other income (expense), net

85

4

92

309

Loss before benefit for income taxes

(74,084

)

(4,931

)

(106,186

)

(15,424

)

Benefit for income taxes

Net loss

$

(74,084

)

$

(4,931

)

$

(106,186

)

$

(15,424

)

Net loss per share attributable to common stockholders

Basic and diluted

$

(0.39

)

$

(0.04

)

$

(0.77

)

$

(0.13

)

Weighted average shares used in computing net loss per share attributable to common stockholders

Basic and diluted

192,077,222

116,374,374

137,609,620

115,045,097

IonQ, Inc.

Condensed Consolidated Balance Sheets

(unaudited)

(in thousands)

December 31,

2021

2020

Assets

Current assets:

Cash and cash equivalents

$

399,025

$

36,120

Short-term investments

123,443

Accounts receivable

707

390

Prepaid expenses and other current assets

6,442

2,069

Total current assets

529,617

38,579

Long-term investments

80,110

Property and equipment, net

18,870

11,988

Operating lease right-of-use assets

4,032

4,296

Intangible assets, net

5,841

2,687

Other noncurrent assets

3,558

2,928

Total Assets

$

642,028

$

60,478

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

$

1,882

$

538

Accrued expenses

2,647

608

Current portion of operating lease liabilities

568

495

Unearned revenue

3,430

240

Current portion of stock option early exercise liabilities

1,164

Total current liabilities

9,691

1,881

Operating lease liabilities, net of current portion

3,643

3,776

Unearned revenue, net of current portion

1,533

1,118

Stock option early exercise liabilities, net of current portion

1,969

Warrant liabilities

33,962

Total liabilities

$

50,798

$

6,775

Stockholders’ Equity:

Common stock

19

3

Additional paid-in capital

737,150

93,305

Accumulated deficit

(145,791

)

(39,605

)

Accumulated other comprehensive loss

(148

)

Total stockholders’ equity

591,230

53,703

Total Liabilities and Stockholders’ Equity

$

642,028

$

60,478

IonQ, Inc.

Condensed Consolidated Statements of Cash Flows

(unaudited)

(in thousands)

Year Ended December 31,

2021

2020

Cash flows from operating activities:

Net loss

$

(106,186

)

$

(15,424

)

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

2,548

1,400

Non-cash research and development arrangements

1,335

Amortization of customer warrant

528

38

Offering costs associated with warrants

4,259

Stock-based compensation expense

7,748

1,224

Change in fair value of warrant liabilities

63,332

Other, net

101

77

Changes in operating assets and liabilities:

Accounts receivable

(317

)

(290

)

Prepaid expenses and other current assets

(3,790

)

(699

)

Other noncurrent assets

(1,678

)

(11

)

Accounts payable

763

96

Accrued expenses

1,259

374

Operating lease liabilities

(44

)

(150

)

Unearned revenue

3,605

1,358

Net cash used in operating activities

(26,537

)

(12,007

)

Cash flows from investing activities:

Purchases of property and equipment

(7,783

)

(10,032

)

Capitalized software development costs

(1,621

)

(1,131

)

Purchases of available-for-sale securities

(203,761

)

Intangible asset acquisition costs

(620

)

(513

)

Net cash used in investing activities

(213,785

)

(11,676

)

Cash flows from financing activities:

Proceeds from stock options exercised

5,457

276

Repurchase of early exercised stock options

(968

)

Proceeds from public warrants exercised

26,070

Proceeds from merger and PIPE transaction, net of transaction costs

572,668

Net cash provided by financing activities

603,227

276

Net change in cash and cash equivalents

362,905

(23,407

)

Cash and cash equivalents at the beginning of the period

36,120

59,527

Cash and cash equivalents at the end of the period

$

399,025

$

36,120

IonQ, Inc.

Reconciliation of Net Loss to Adjusted EBITDA

(unaudited)

(in thousands)

Three Months Ended

Year Ended

December 31,

December 31,

2021

2020

2021

2020

Net loss

$

(74,084

)

$

(4,931

)

$

(106,186

)

$

(15,424

)

Interest expense

Benefit for income taxes

Depreciation and amortization expense

1,005

405

2,548

1,400

Stock-based compensation

1,819

543

7,748

1,224

Change in fair value of assumed warrant liabilities

63,332

63,332

Offering cost associated with warrants

4,259

Adjusted EBITDA

$

(7,928

)

$

(3,983

)

$

(28,299

)

$

(12,800

)

View source version on businesswire.com: https://www.businesswire.com/news/home/20220328005800/en/

Contacts

Media:
ionq@missionnorth.com

Investor:
investors@ionq.com

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