• FY 2024 Bookings up 128% Year over Year
• Q4 Bookings up 502% Year over Year
• Current Cash Position Exceeds $300 Million

PALO ALTO, Calif. / Mar 13, 2025 / Business Wire / D-Wave Quantum Inc. (NYSE: QBTS) (“D-Wave” or the “Company”), a leader in quantum computing systems, software, and services, today announced financial results for its fourth fiscal quarter and year ended December 31, 2024.

“Every day D-Wave’s quantum technology is helping customers gain competitive advantages, discover new scientific breakthroughs, and fuel innovations that were previously unimaginable,” said Dr. Alan Baratz, CEO of D-Wave. “Our mission is unwavering - to help organizations realize the benefits of quantum computing now. With record bookings, a record cash position and an unequivocal demonstration of our quantum system outperforming classical on a real-world problem, our progress toward achieving that mission is clear.”

Recent Business and Technical Highlights

• Announced that D-Wave has demonstrated quantum computational supremacy over classical computation on a useful, real-world problem, with peer-reviewed publication of the research in the esteemed journal, Science. The research, which has relevance to customers’ problems in materials discovery, solved the complex materials simulation problem on D-Wave’s Advantage2™ annealing quantum computer prototype significantly faster and with far less power consumption than one of the world’s most powerful classical supercomputers.
• Introduced an on-premises systems offering to enable customers to push the boundaries of quantum-fueled experimentation, development and usage. Also announced that the Julich Supercomputing Centre is the first high-performance computing (HPC) center to purchase and own a D-Wave Advantage annealing quantum computing system. It is expected that D-Wave’s system will be connected to the JUPITER supercomputer, Europe’s first and only exascale HPC, to facilitate breakthroughs in AI and quantum optimization applications.
• Announced the “Quantum Uplift" program to address customers’ disappointment with competitor quantum systems that have proven to be incapable of solving practical real-world problems and lack reliable uptime and availability. The program offers incentives to dissatisfied organizations toward the purchase of a D-Wave Advantage system that will enable them to pursue groundbreaking research and novel AI applications.
• Announced the calibration of a third 4,400 qubit Advantage2 processor. Compared with the current Advantage system, the Advantage2 processor delivers significant performance gains with doubled qubit coherence time, which drives faster time to solution; a 40% increase in energy scale for higher-quality solutions; and increased qubit connectivity from 15-way to 20-way, enabling solutions to larger, more complex problems.
• Worked with customers on a variety of quantum and hybrid quantum applications including: drug discovery with Japan Tobacco; insurance portfolio optimization with Leithà, the technology and data factory of Unipol, a leading Italian insurance company; and optimization of police vehicle deployment with North Wales Police.
• Announced a commercial hybrid-quantum application built with Staque that simulates and optimizes movements of autonomous agriculture vehicles. The companies expect the application could have important benefits to farmers as they adopt autonomous agriculture machines in order to scale and increase the output of their fields, with quantum computing providing the analysis, speed, and accuracy to help maximize production and minimize costs.
• Announced a partnership with Carahsoft Technology Corp., enabling them to co-market D-Wave’s comprehensive solutions to the public sector through Carahsoft’s reseller network. These solutions include real-time access to the D-Wave Advantage™ quantum computing systems through D-Wave’s Leap™ quantum cloud service, workforce training programs to upskill current public sector employees, and specialized support from D-Wave’s professional services team to develop applications for specific public sector use cases.
• Initiated the Leap Quantum LaunchPad program designed to accelerate the exploration and development of quantum and hybrid-quantum applications. The program is structured as a free 3-month trial that provides access to D-Wave’s production-grade annealing quantum computers and the Leap real-time quantum cloud service as well as expert project support.
• Launched the new “Quantum Realized” brand campaign to showcase the benefits of today’s quantum computing and presented a framework to help customers evaluate a quantum computing company’s relative value. The campaign will span digital and print advertising channels, events, and the Company’s sponsorship of the International Year of Quantum Science and Technology, an initiative that aims to raise public awareness about quantum computing.
• Announced that Qubits 2025, the Company’s annual user conference, will take place March 31, 2025 and April 1, 2025 in Scottsdale, Arizona. Themed “Quantum Realized,” the event will feature company executives, customers and industry thought leaders discussing the ways that D-Wave products are delivering tangible value today. Speakers include Charles Payne of Fox Business’s “Making Money with Charles Payne,” IDC, Davidson Technologies, Julich Supercomputing Centre, Japan Tobacco, NTT DOCOMO, Pusan National University, Quantum Research Sciences, SAS, the University of Southern California and more.
• Announced record Bookings for the year ended December 31, 2024, of $23.9 million, an increase of $13.4 million, or 128%, from Bookings of $10.5 million for the year ended December 31, 2023, and fiscal 2024 fourth quarter Bookings of $18.3 million, an increase of $15.3 million, or 502% from the fiscal 2023 fourth quarter Bookings of $3.0 million.
• D-Wave’s consolidated cash balance totaled $178.0 million as of December 31, 2024 and is in excess of $300 million as of the date of this earnings press release.

Financial Results for the Fiscal Year 2024

• Revenue: Revenue for the year ended December 31, 2024, was $8.8 million, essentially flat compared to revenue of $8.8 million for the year ended December 31, 2023.
• Bookings¹: 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.
• Customers: In comparing the year ended December 31, 2024 with the year ended December 31, 2023, D-Wave had:
  • A total of 135 customers compared with a total of 133 customers;
  • 76 commercial customers compared with 78 commercial customers;
  • 59 research institution and government customers compared with 55 research institution and government customers; and
  • 28 Forbes Global 2000 customers compared with 27 Forbes Global 2000 customers constituting 37% of the total number of commercial customers.
• GAAP Gross Profit: GAAP gross profit for the year ended December 31, 2024 was $5.6 million, an increase of $1.0 million, or 20%, from $4.6 million of GAAP gross profit for the year ended December 31, 2023, with the increase due primarily to an increase in higher margin QCaaS revenue and lower stock-based compensation expense in cost of sales.
• GAAP Gross Margin: GAAP gross margin for the year ended December 31, 2024 was 63.0%, an increase of 10.2% from the 52.8% GAAP gross margin for the year ended December 31, 2023.
• Non-GAAP Gross Profit²: Non-GAAP Gross Profit for the year ended December 31, 2024 was $6.4 million, an increase of $0.3 million, or 5%, from the Non-GAAP Gross Profit of $6.1 million for the year ended December 31, 2023. The difference between GAAP and Non-GAAP Gross Profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross profit.
• Non-GAAP Gross Margin²: Non-GAAP Gross Margin for the year ended December 31, 2024 was 72.8%, an increase of 3.0% from the 69.8% Non-GAAP Gross Margin for the year ended December 31, 2023. The difference between GAAP and Non-GAAP Gross Margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross margin.
• GAAP Operating Expenses: GAAP operating expenses for the year ended December 31, 2024 were $82.8 million, a decrease of $2.4 million, or 3% from GAAP operating expenses of $85.2 million for the year ended December 31, 2023, with the year-over-year decrease primarily driven by decreases of $5.6 million in non-cash stock-based compensation expense, $3.8 million in third party professional services and $1.0 million in insurance expenses, partially offset by increases in salaries and related personnel costs of $6.0 million related to incremental investments to support the Company's continued growth and expansion.
• Non-GAAP Adjusted Operating Expenses²: Non-GAAP Adjusted Operating Expenses for the year ended December 31, 2024 were $62.4 million, an increase of $2.0 million or 3% from Non-GAAP Adjusted Operating Expenses of $60.4 million for the year ended December 31, 2023, with the difference between GAAP and Non-GAAP Adjusted Operating Expenses being primarily non-cash stock-based compensation expense, non-recurring one-time expenses, and depreciation and amortization.
• Net Loss: Net loss for the year ended December 31, 2024 was $143.9 million, or $0.75 per share, an increase of $61.2 million, or $0.15 per share, from the net loss of $82.7 million or $0.60 per share, for the year ended December 31, 2023. The increase was primarily due to a $68.3 million non-cash, non-operating charge related to the remeasurement of the Company's warrant liability, that materially increased as a result of the significant price appreciation of the Company's warrants.
• Adjusted Net Loss²: Adjusted Net Loss for the year ended December 31, 2024, was $75.6 million, or $0.39 per share, a decrease of $7.3 million, or $0.21 per share, from an Adjusted Net Loss of $83.0 million, or $0.60 per share, for the year ended December 31, 2023, with the difference between Net Loss and Adjusted Net Loss being non-cash, non-operating charge related to the remeasurement of the Company's warrant liability.
• Adjusted EBITDA Loss²: The Adjusted EBITDA Loss for the year ended December 31, 2024 was $56.0 million, an increase of $1.7 million or 3% from the Adjusted EBITDA Loss of $54.3 million for the year ended December 31, 2023, with the increase due primarily to higher operating expenses, driven by the Company’s increased investment in its go-to-market and research and development organizations.

Fourth Quarter Fiscal 2024 Financial Highlights

• Revenue: Revenue for the fourth quarter of fiscal 2024 was $2.3 million, a decrease of $0.6 million, or 21%, from the fiscal 2023 fourth quarter revenue of $2.9 million.
• Bookings¹: Bookings for the fourth quarter of fiscal 2024 were a record $18.3 million, an increase of $15.3 million, or 502% from the fiscal 2023 fourth quarter Bookings of $3.0 million.
• GAAP Gross Profit: GAAP gross profit for the fourth quarter of fiscal 2024 was $1.5 million, a decrease of $0.5 million, or 25%, from the fiscal 2023 fourth quarter gross profit of $2.0 million, with the decrease due primarily to lower professional services revenue.
• GAAP Gross Margin: GAAP gross margin for the fourth quarter of fiscal 2024 was 63.8%, a decrease of 3.9% from the fiscal 2023 fourth quarter GAAP gross margin of 67.7%.
• Non-GAAP Gross Profit²: Non-GAAP Gross Profit for the fourth quarter of fiscal 2024 was $1.7 million, a decrease of $0.6 million, or 28%, from the fiscal 2023 fourth quarter Non-GAAP Gross Profit of $2.3 million. The difference between GAAP and Non-GAAP gross profit is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross profit.
• Non-GAAP Gross Margin²: Non-GAAP Gross Margin for the fourth quarter of fiscal 2024 was 73.0%, a decrease of 7.2% from the fiscal 2023 fourth quarter Non-GAAP Gross Margin of 80.2%. The difference between GAAP and Non-GAAP Gross Margin is limited to non-cash stock-based compensation and depreciation and amortization expenses that are excluded from the Non-GAAP gross margin.
• GAAP Operating Expenses: GAAP operating expenses for the fourth quarter of fiscal 2024 were $21.7 million, an increase of $3.2 million, or 17%, from the fiscal 2023 fourth quarter GAAP operating expenses of $18.5 million with the increase driven primarily by an increase in personnel costs of $4.1 million, and fabrication costs of $0.6 million, partially offset by a decrease in third party professional fees of $1.2 million.
• Non-GAAP Adjusted Operating Expenses²: Non-GAAP Adjusted Operating Expenses for the fourth quarter of fiscal 2024 were $17.0 million, an increase of $3.8 million, or 29% from the fiscal 2023 fourth quarter Non-GAAP Adjusted Operating Expenses of $13.2 million, with the difference between GAAP and Non-GAAP Adjusted Operating Expenses being primarily non-cash stock-based compensation expense, non-recurring one-time expenses, and depreciation and amortization.
• Net Loss: Net loss for the fourth quarter of fiscal 2024 was $86.1 million, an increase of $70.1 million, or 438%, from the fiscal 2023 fourth quarter net loss of $16.0 million. The increase was primarily due to a $68.3 million non-cash, non-operating charge related to the remeasurement of the warrant liability, that materially increased as a result of the significant price appreciation of the Company's warrants. Net loss per share for the fourth quarter of fiscal 2024 was $0.37 per share, an increase of $0.27 from the fiscal 2023 fourth quarter net loss of $0.10 per share.
• Adjusted Net Loss²: Adjusted Net Loss for the fourth quarter of fiscal 2024, was $17.8 million, or $0.08 per share, an increase of $1.5 million and a decrease of $0.03 per share, compared with an Adjusted Net Loss of $16.4 million, or $0.10 per share, for the fiscal 2023 fourth quarter, with the difference between Net Loss and Adjusted Net Loss being the non-cash, non-operating charge related to the remeasurement of the Company's warrant liability.
• Adjusted EBITDA Loss²: Adjusted EBITDA Loss for the fourth quarter of fiscal 2024 was $15.3 million, an increase of $4.4 million, or 41%, from the fiscal 2023 fourth quarter Adjusted EBITDA Loss of $10.9 million, with the increase due primarily to lower revenue and higher operating expenses that were principally related to the Company’s increased investment in its go-to-market and research and development organizations.

Balance Sheet and Liquidity

As of December 31, 2024, D-Wave’s consolidated cash balance totaled $178.0 million and, as of the date of this earnings press release, exceeded $300 million. During the fourth quarter of fiscal 2024, the Company raised $161.3 million in equity through its At-The-Market (ATM) and Equity Line of Credit (ELOC) common stock issuance programs and, during the current first quarter of fiscal 2025, the Company raised an additional $146.2 million under an ATM program for total net proceeds of $307.5 million. Of the $307.5 million, $295.4 million was raised under the ATM programs at an average price per share of $4.30 that was $0.08 higher than the corresponding Volume Weighted Average Price (VWAP) of $4.22 per share. In addition, the Company paid off the remaining balance of its $50 million secured term loan with PSPIB Unitas Investments II Inc. during the fourth quarter.

As of December 31, 2024, the Company had $37.8 million in available issuance capacity under the ELOC with Lincoln Park Capital Fund, LLC, with the investment commitment running through October 2025. D-Wave’s ability to raise additional funds under the ELOC is subject to a number of conditions including having a sufficient number of registered shares and D-Wave's stock price being above $1.00 per share.

First Quarter Fiscal Year 2025 Outlook

• We expect first quarter fiscal 2025 revenue to exceed $10 million with a significant portion of the first quarter revenue including revenue recognized from the sale of an Advantage annealing quantum computer.

Earnings Conference Call

In conjunction with this announcement, D-Wave will host a conference call on Thursday, March 13, 2025, at 8:00 a.m. (Eastern Time), to discuss the Company’s financial results and business outlook. The live dial-in number is 1-800-717-1738 (domestic) or 1-646-307-1865 (international). Participating in the call will be Chief Executive Officer, Dr. Alan Baratz and Chief Financial Officer, John Markovich.

About D-Wave Quantum Inc.

D-Wave is a leader in the development and delivery of quantum computing systems, software, and services. We are the world’s first commercial supplier of quantum computers, and the only company building both annealing and gate-model quantum computers. Our mission is to help customers realize the value of quantum, today. Our 5,000+ qubit Advantage quantum computers, the world’s largest, are available on-premises or via the cloud, supported by 99.9% availability and uptime. More than 100 organizations trust D-Wave with their toughest computational challenges. With over 200 million problems submitted to our Advantage systems and Advantage2 prototypes to date, our customers apply our technology to address use cases spanning optimization, artificial intelligence, research and more. Learn more about realizing the value of quantum computing today and how we’re shaping the quantum-driven industrial and societal advancements of tomorrow: www.dwavequantum.com.

Non-GAAP Financial Measures

To supplement the financial information presented in accordance with GAAP, we use non-GAAP measures of certain components of financial performance. Each of Non-GAAP gross profit, Non-GAAP gross margin, Adjusted EBITDA loss, Adjusted Net Loss, Adjusted Net Loss per Share, and Non-GAAP adjusted operating expenses is a financial measure that is not required by or presented in accordance with GAAP. Management believes that each measure provides investors an additional meaningful method to evaluate certain aspects of such results period over period. The Company defines each of its non-GAAP financial measures as follows:

• Non-GAAP gross profit is defined as GAAP gross profit less non-cash stock-based compensation expense and depreciation and amortization expense. We use Non-GAAP gross profit to measure, understand and evaluate our core operating performance and trends and to develop short-term and long-term operating plans.
• Non-GAAP gross margin is defined as GAAP gross margin less non-cash stock-based compensation expense and depreciation and amortization expense. We use Non-GAAP gross margin to measure, understand and evaluate our core business performance.
• Adjusted EBITDA loss 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 non-recurring non-operating income and expenses. We use Adjusted EBITDA loss 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.
• Adjusted Net Loss and Adjusted Net Loss per Share are defined as net loss and net loss per share excluding the impact of the non-cash, non-operating charges associated with the remeasurement of the Company’s warrant liability.
• Non-GAAP adjusted operating expenses is defined as operating expenses before depreciation and amortization expense, non-recurring one-time expenses and non-cash stock-based compensation expense. We use Non-GAAP adjusted operating expenses to measure our operating expenses, excluding items we do not believe directly reflect our core 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 our presentation of non-GAAP measures may be different from non-GAAP measures used by other companies. For a reconciliation of these non-GAAP measures to the most directly comparable GAAP measures, please refer to the reconciliations below.

Forward Looking Statements

Certain statements in this press release are forward-looking, as defined in the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties, and other factors that may cause actual results to differ materially from the information expressed or implied by these forward-looking statements and may not be indicative of future results. These forward-looking statements are subject to a number of risks and uncertainties, including, among others, various factors beyond management’s control, including the risks set forth under the heading “Risk Factors” discussed under the caption “Item 1A. Risk Factors” in Part I of our most recent Annual Report on Form 10-K or any updates discussed under the caption “Item 1A. Risk Factors” in Part II of our Quarterly Reports on Form 10-Q and in our other filings with the SEC. Undue reliance should not be placed on the forward-looking statements in this press release in making an investment decision, which are based on information available to us on the date hereof. We undertake no duty to update this information unless required by law.