Shares of D-Wave Computing (QBTS) are down 2.7% in pre-market trading following the release of mixed second-quarter results. QBTS reported an adjusted loss of $0.08 per share, which was considerably higher than analysts’ consensus of a $0.05 loss per share, but better than the prior year quarter’s loss of $0.12 per share.
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On the other hand, revenue jumped 42% year-over-year to $3.1 million, easily surpassing the consensus estimate of $2.54 million. Commenting on the results, CEO Alan Baratz said, “Our second-quarter results demonstrate consistently strong performance across a multitude of technical and business metrics.”
D-Wave Computing is one of the few leading players involved in the development and delivery of quantum computing systems, with expertise in both annealing and gate-model quantum computers.
Details About QBTS’ Q2 Performance
D-Wave Computing’s Q2 bookings (customer orders received) surged 92% year-over-year to $1.3 million. Moreover, D-Wave had more than 100 revenue-generating customers over the most recent four quarters.
During Q2, D-Wave Computing achieved several notable milestones, including launching its sixth-generation quantum computer, signing an agreement to acquire an on-premises system in South Korea, completing the assembly of a system at Davidson Technologies, and introducing developer tools to support quantum AI and machine learning innovation.
Importantly, D-Wave Computing ended the quarter with the highest cash balance in its history, exceeding $819 million. The company completed a successful $400 million at-the-money equity offering, which contributed to this strong cash position. QBTS intends to use these proceeds for strategic acquisitions and general corporate purposes.
Is QBTS Stock a Buy, Hold, or Sell?
Analysts remain highly optimistic about D-Wave Computing’s long-term outlook. On TipRanks, QBTS stock has a Strong Buy consensus rating based on eight Buy ratings. The average D-Wave Computing price target of $19.86 implies nearly 13% upside potential from current levels. Year-to-date, QBTS stock has surged over 109%.
Please note these ratings were given before the Q2 print and are subject to change once analysts review their recommendations.
