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IonQ (IONQ)
NYSE:IONQ
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IonQ
(NYSE:IONQ)
43Neutral
Positive Factors
Financial Performance
Results in the quarter were slightly better than previewed, with bookings/revenue above the high end of the guided range.
Strategic Initiatives
The firm continues to make strong progress across technical and operational fronts of the business with the highlights being the acquisition of ID Quantique, a $500M planned capital raise, and a new partnership with SK Telecom.
Negative Factors
Stock Reaction
Despite the negative stock reaction following the print, which is primarily related to the dilutive effect of the capital raise and the all-stock transaction to acquire IDQ.
IonQ (IONQ) vs. S&P 500 (SPY)
Market Cap
$4.17B
Dividend YieldN/A
Average Volume (3M)16.55M
Price to Earnings (P/E)―
Beta (1Y)4.10
Revenue Growth95.41%
EPS Growth-97.85%
CountryUS
Employees324
SectorTechnology
Sector Strength45
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-1.54
Shares Outstanding222,842,180
10 Day Avg. Volume20,510,652
30 Day Avg. Volume16,551,332
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)96.75
Price to Cash Flow (P/CF)-26.40
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$41.60Price Target Upside90.65% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering6
IonQ Business Overview & Revenue Model
Company DescriptionIonQ, Inc. is a leader in the quantum computing industry, specializing in the development and commercialization of trapped-ion quantum computers. The company harnesses the unique properties of quantum mechanics to develop powerful computing solutions that have the potential to solve complex problems beyond the reach of classical computers. IonQ operates in the technology and computing sector, offering access to its quantum computing services through cloud providers and direct partnerships, targeting industries such as finance, pharmaceuticals, automotive, and more.
How the Company Makes MoneyIonQ generates revenue primarily through the provision of quantum computing services. The company offers access to its quantum computers on a pay-per-use basis via cloud platforms, including partnerships with major providers such as Amazon Web Services (AWS), Microsoft Azure, and Google Cloud. These collaborations allow IonQ to reach a broader market by integrating its quantum computing solutions into existing cloud ecosystems, thus providing scalable and flexible computing resources to clients. Additionally, IonQ engages in direct partnerships with enterprises across various industries to develop customized quantum solutions, enabling them to tackle specific computational challenges. Revenue is also derived from research grants, collaborations with academic institutions, and government contracts aimed at advancing quantum technology research and development.
IonQ Financial Statement Overview
Summary
IonQ is experiencing significant revenue growth but also substantial losses. The company has a strong equity position and low leverage, though it faces cash flow challenges and needs to improve profitability.Income Statement
IonQ has demonstrated significant revenue growth, with a revenue increase from $2.1 million in 2021 to $43.1 million in 2024. However, the company is experiencing substantial losses, with a net income of -$331.6 million in 2024, indicating ongoing challenges in profitability. The gross profit margin improved to 52.2% in 2024, showing better cost management, but the net profit margin remains deeply negative.40
Negative
Balance Sheet
The balance sheet shows a strong equity position with a stockholders' equity of $383.9 million in 2024. The debt-to-equity ratio remains low at 0.046, indicating limited leverage use. However, the return on equity is negative due to consistent net losses, suggesting challenges in generating returns for shareholders.45
Neutral
Cash Flow
IonQ's cash flow statement reflects negative operating cash flows, with a free cash flow of -$123.7 million in 2024, indicating cash burn. While the operating cash flow to net income ratio shows consistency in cash flow relative to net losses, the company needs to focus on improving cash generation to support growth.35
Negative
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 43.07M | 22.04M | 11.13M | 2.10M | 0.00 | Gross Profit |
| 22.48M | 13.93M | 8.19M | 1.06M | -143.00K | EBIT |
| -232.46M | -157.75M | -85.75M | -38.69M | -15.73M | EBITDA |
| -213.80M | -147.38M | -80.14M | -36.14M | -14.33M | Net Income Common Stockholders |
| -331.65M | -157.77M | -48.51M | -106.19M | -15.42M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 340.29M | 355.44M | 355.80M | 522.47M | 36.12M | Total Assets |
| 508.39M | 553.58M | 597.99M | 642.03M | 60.48M | Total Debt |
| 17.73M | 8.11M | 4.05M | 4.21M | 4.27M | Net Debt |
| -36.67M | -27.56M | -40.32M | -394.81M | -31.85M | Total Liabilities |
| 124.53M | 68.59M | 29.78M | 50.80M | 6.78M | Stockholders Equity |
| 383.86M | 484.99M | 568.21M | 591.23M | 53.70M |
| Cash Flow | Free Cash Flow | |||
| -123.67M | -98.36M | -57.26M | -36.56M | -23.68M | Operating Cash Flow |
| -105.68M | -78.81M | -44.70M | -26.54M | -12.01M | Investing Cash Flow |
| 82.73M | 68.77M | -309.06M | -213.78M | -11.68M | Financing Cash Flow |
| 41.69M | 1.76M | 1.10M | 603.23M | 276.00K |
IonQ Technical Analysis
Neutral
21.82
Price Trends
35.40
Negative
31.37
Negative
19.61
Positive
Market Momentum
-4.81
Positive
33.55
Neutral
20.28
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IONQ, the sentiment is Neutral. The current price of 21.82 is below the 20-day moving average (MA) of 27.80, below the 50-day MA of 35.40, and above the 200-day MA of 19.61, indicating a neutral trend. The MACD of -4.81 indicates Positive momentum. The RSI at 33.55 is Neutral, neither overbought nor oversold. The STOCH value of 20.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for IONQ.
IonQ Risk Analysis
IonQ disclosed 65 risk factors in its most recent earnings report. IonQ reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
IonQ Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $2.65T | 37.02 | 119.18% | 0.03% | 114.20% | 146.26% | |
74 Outperform | $2.01T | 20.62 | 32.91% | 0.36% | 13.89% | 38.99% | |
73 Outperform | $156.80B | 96.45 | 2.89% | ― | 13.69% | 91.75% | |
58 Neutral | $21.35B | 9.96 | -19.72% | 2.38% | 5.03% | -22.83% | |
50 Neutral | $2.30B | ― | -170.20% | ― | -10.15% | -67.68% | |
43 Neutral | $4.17B | ― | -76.34% | ― | 95.41% | -97.85% | |
39 Underperform | $1.67B | ― | 436.39% | ― | 14.27% | 35.36% |
* Technology Sector Average
Performance Comparison
IONQ
IonQ
21.82
12.62
137.17%
AMD
Advanced Micro Devices
100.79
-86.27
-46.12%
GOOGL
Alphabet Class A
167.11
24.69
17.34%
NVDA
Nvidia
115.74
27.82
31.64%
QBTS
D-Wave Quantum
5.82
3.76
182.52%
RGTI
Rigetti Computing
8.95
6.97
352.02%
IonQ Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -27.10% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
IonQ reported strong revenue growth and strategic acquisitions, positioning itself for future expansion in quantum networking. However, increased operating costs, significant net losses, and adjusted EBITDA losses present financial challenges. The company's strategic moves and leadership changes suggest optimism for future growth, but financial headwinds temper the overall outlook.Highlights
Record Growth in Bookings and Revenue
IonQ's full-year bookings grew by 47% to $95.6 million, and revenue nearly doubled to $43.1 million, with $11.7 million in the fourth quarter, exceeding the high-end of guidance.
Strategic Acquisitions and Expansion
IonQ acquired substantially all assets of Qubitekk, Inc., and announced a definitive agreement to acquire a controlling stake in ID Quantique, enhancing its position in quantum networking.
Strong Financial Position
IonQ reported cash, cash equivalents, and investments of $363.8 million as of December 31, 2024, and announced a $500 million at-the-market facility to bolster its capital for future growth.
New Leadership and Board Members
Niccolo de Masi appointed as President and CEO, with Gabrielle Toledano joining as a new director, bringing extensive experience to IonQ's leadership.
Advancements in Quantum AI and Partnerships
Progress in chemistry modeling with AstraZeneca and computer-aided engineering with Ansys; new partnership with General Dynamics Information Technology.
Lowlights
Increased Operating Costs and Expenses
Operating costs and expenses for the fourth quarter of 2024 were $89.2 million, up 47% from the prior year, and $275.5 million for the full year, up 53%.
Significant Net Loss
IonQ reported a net loss of $202 million in the fourth quarter and $331.6 million for the full year 2024, including non-cash losses related to warrant liabilities.
Adjusted EBITDA Loss
IonQ saw an adjusted EBITDA loss of $32.8 million for the fourth quarter and $107.2 million for the full year 2024.
Company Guidance
During IonQ's fourth quarter and full-year 2024 earnings call, the company provided guidance indicating strong growth and strategic advancements. IonQ achieved a 47% increase in full-year bookings to $95.6 million and nearly doubled its revenue to $43.1 million, surpassing the high-end of its guidance range. The company also announced significant acquisitions, including the completion of Qubitekk, Inc., and a controlling stake in ID Quantique, adding nearly 300 quantum networking patents to its portfolio. IonQ plans to leverage these acquisitions to expand in quantum networking, aiming to build secure quantum communication products. For 2025, IonQ projected revenue between $75 million and $95 million and an adjusted EBITDA loss of $120 million. The company also highlighted strategic leadership changes, with Niccolo de Masi appointed as President and CEO, while Peter Chapman continues as Executive Chair.IonQ Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
IonQ Ends ATM Equity Offering Amid Market Turbulence
Neutral
Mar 11, 2025
On March 10, 2025, IonQ, Inc. announced the termination of its At-the-Market (ATM) equity offering program, which had raised over $372 million through the sale of 16,038,460 shares. The decision to end the program was influenced by recent market disruptions and the company’s assessment that it had secured sufficient capital to meet its needs, boosting its pro forma year-end cash balance to over $700 million. This move reflects IonQ’s strategic positioning to maintain its leadership in the quantum computing and networking sectors, despite turbulent market conditions.
Private Placements and Financing
IonQ Announces $500 Million Equity Offering Program
Neutral
Feb 27, 2025
On February 26, 2025, IonQ announced an ‘at the market’ equity offering program, allowing the company to sell up to $500 million in common stock through Morgan Stanley and Needham as sales agents. The proceeds are intended for general corporate purposes, including scaling its quantum computing and networking businesses. The sales will depend on market conditions and other factors, with no obligation for IonQ to sell any shares.
M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
IonQ Announces Acquisition to Boost Quantum Leadership
Positive
Feb 26, 2025
IonQ reported its financial results for the fourth quarter and full year of 2024, highlighting a significant year-over-year revenue growth of 95%, reaching $43.1 million. The company exceeded its financial guidance and secured $95.6 million in bookings for the year. IonQ also announced a definitive agreement to acquire a controlling stake in ID Quantique SA to bolster its leadership in quantum networking. The acquisition, along with strategic partnerships and expansions, positions IonQ as a prominent player in the global quantum industry, with a robust pipeline expected to drive future growth.
Executive/Board Changes
IonQ Announces New CEO Compensation Package
Neutral
Dec 20, 2024
IonQ, Inc. has announced a new executive compensation package for its President and CEO, Peter Chapman, which includes performance stock units and cash bonuses. The package is designed to align Mr. Chapman’s interests with those of the company’s stockholders by tying compensation to long-term strategic objectives and company performance. The compensation includes an award of performance stock units tied to financial and technical milestones, as well as cash bonuses for 2024 and 2025. This initiative aims to incentivize Mr. Chapman to continue leading the company and executing its critical growth initiatives.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.