D-Wave Quantum today
- 52 week range
- US$0.68
▼
$11.41
- Target price
- $6.38
D-Wave Quantum Inc. New York Stock Exchange: QBTS is a pioneering company in the rapidly growing quantum computing sector. D-Wave shares have recently rallied after falling. This resurgence is attracting the attention of investors, especially those interested in the transformative potential of quantum technologies.
As the first commercial supplier of quantum computers and the only company to produce annealed and gate-based quantum computers, D-Wave is uniquely positioned in this market. This resurgence in D-Wave’s share price is being driven by a variety of factors, including renewed investor interest in the quantum computing sector, positive developments within the company, and a number of analyst updates.
D-Wave Quantum Leap: Quantum Finance
D-Wave’s business model is based on its innovative quantum annealing technology, which it offers through cloud access and on-premises systems. Unlike gate-model quantum computers, whose competitors such as IBM New York Stock Exchange: IBM and Google (parent company of Alphabet NASDAQ: GOOG) are still being developed, D-Wave quantum annealing computers are commercially available today. This distinction makes D-Wave unique in the market, enabling it to offer practical quantum solutions to businesses and organizations.
D-Wave’s third-quarter 2024 earnings report showed revenue of $1.9 million, down 27% year over year. The decline was primarily due to a decline in professional services revenue. However, the company’s quantum computing as a service (QCaaS) revenue grew 41% year-over-year to $1.6 million. Orders for the quarter were $2.3 million, down 22% year-over-year. . Despite the overall decline in revenue, D-Wave reported GAAP gross profit of $1.0 million and GAAP gross margin of 55.8%. Non-GAAP gross profit was $1.3 million and non-GAAP gross margin was 67.2%. The company’s net loss for the quarter was $22.7 million, with an adjusted EBITDA loss of $13.8 million.
D-Wave Quantum stock forecast today
$6.38
Growth potential 10.03%Buy
Based on ratings from 6 analysts
| High forecast | US$9.00 |
|---|---|
| Average forecast | $6.38 |
| Low forecast | $2.25 |
D-Wave Quantum Stock Forecast Details
Looking at results for the nine months of 2024, D-Wave reported revenue of $6.5 million, up 11% year-over-year. QCaaS revenue for the period was even more impressive, up 52% year-over-year to $5.1 million. However, the company’s net loss widened to $57.8 million and its adjusted EBITDA loss was $40.6 million. Despite these losses, D-Wave ended fiscal 2024 with a healthy cash position of approximately $178 million, supported by the successful completion of the offering shares on the market worth US$175 million. This financing provides the company with the necessary resources to fund its ongoing operations and growth initiatives.
D-Wave has reached a major milestone with its first customer purchasing an on-premises Advantage quantum computing system. This demonstrated the commercial viability of their technology and indicated a potential shift in their revenue model towards direct system sales, beyond cloud services. The company also reported impressive order volumes in fiscal 2024, exceeding $23 million, up 120% from fiscal 2023. Orders in the fourth quarter reached at least $18 million, up 500% year over year.
Shaping the Future: Strategic Initiatives and Partnerships
D-Wave is actively pursuing strategic partnerships to expand the reach and application of its quantum computing solutions. One notable collaboration is with NTT DOCOMO, Japan’s largest mobile operator. The two companies are working together to optimize mobile network performance using D-Wave’s quantum computing annealing technology. This partnership has already delivered impressive results, including a 15% improvement in mobile network resource utilization.
Another key partnership is with Japan Tobacco Inc., where D-Wave technology is being used to develop new drugs. This collaboration aims to create a new discovery process for “first-in-class” pharmaceutical small compounds, demonstrating the potential of quantum computing in the life sciences sector. To further expand its market presence, D-Wave has partnered with Carahsoft, a leading public sector IT solutions provider. This collaboration aims to make D-Wave’s quantum computing solutions more accessible to government agencies, potentially opening up significant opportunities in areas such as national defense, intelligence, and infrastructure optimization.
D-Wave has also achieved “rewarded” status on the U.S. Department of Defense’s Tradewinds platform, a major milestone that opens the door to potential government contracts. This recognition underscores the value and relevance of D-Wave technology to address the complex challenges facing the defense sector. To support the growing adoption of its quantum solutions, D-Wave has introduced service level agreements (SLAs) for its Leap quantum cloud service customers. These service level agreements provide guarantees of availability, reliability, and scalability that are critical for enterprises moving their quantum applications into production.
The company is also making strides in artificial intelligence (AI). D-Wave is actively exploring generative AI architectures that use quantum processing units (QPUs). Leveraging the unique capabilities of quantum distributions, these architectures are designed to enable faster and more energy-efficient model training and inference, potentially revolutionizing the field of artificial intelligence. Underscoring its commitment to data security, D-Wave has completed its second SOC 2 Type 2 audit. This compliance demonstrates the company’s commitment to industry-leading standards for protecting customer data, a critical factor for enterprises considering implementing quantum computing solutions.
D-Wave has further strengthened its leadership team with the recent appointments of Sharon Holt, John DiLullo and Rohit Ghai to the board of directors. These individuals bring a wealth of experience in technology, go-to-market strategies and business leadership, positioning D-Wave to capitalize on growing market opportunities.
Quantum computing pioneer
The recovery in D-Wave Quantum shares is a testament to the growing interest in the quantum computing sector and the company’s unique position within it. As the first commercial supplier of quantum computers and the only company to use both annealing and gate models, D-Wave is at the forefront of this revolutionary technology. Although the quantum computing market is still in its early stages of development, D-Wave’s recent achievements suggest that it is well positioned to capitalize on the enormous opportunities that lie ahead. Investors should continue to closely monitor the company’s progress, particularly its ability to translate technological advancements into sustainable revenue and profitability growth. The quantum computing sector is rapidly evolving, and D-Wave’s performance will be a key indicator of the industry’s trajectory in the coming years.
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