D-Wave Quantum Inc. (NYSE:QBTS) Q2 2024 Earnings Call August 8, 2024 8:00 AM ET

Company Participants

Kevin Hunt - Investor Relations
Alan Baratz - Chief Executive Officer
John Markovich - Chief Financial Officer

Conference Call Participants

Craig Ellis - B. Riley Securities
Quinn Bolton - Needham
Richard Shannon - Craig-Hallum
David Williams - Benchmark
Suji Desilva - ROTH Capital
Harsh Kumar - Piper Sandler

Operator

Good morning, ladies and gentlemen and welcome to the D-Wave Second Quarter 2024 Earnings Call. [Operator Instructions] This call is being recorded on Thursday, August 8, 2024. I would now like to turn the conference over to Kevin Hunt from Investor Relations. Please go ahead.

Kevin Hunt

Thank you and good morning. With me today are Dr. Alan Baratz, our Chief Executive Officer and John Markovich, our Chief Financial Officer.

Before we begin, I would like to remind everyone that this call may contain forward-looking statements and should be considered in conjunction with cautionary statements contained in our earnings release and the company’s most recent periodic SEC report.

During today’s call, management will provide certain information that will constitute non-GAAP financial and operational measures under SEC rules such as non-GAAP gross profit, non-GAAP gross margin, non-GAAP adjusted operating expenses, adjusted EBITDA loss and bookings. Reconciliations to GAAP financial measures and certain additional information are also included in today’s earnings release, which is available in the Investor Relations section of our company’s website at www.dwavequantum.com.

I will now hand over the call to Alan.

Alan Baratz

Good morning everyone, and thank you for joining us today. I’m excited to share our Q2 business results with you. As we continue to see positive momentum across the business. The world is waking up to the fact that annealing quantum computing is here. Now and it’s driving measurable outcomes for our commercial, government and research customers. We believe that D-Wave is single handedly, and I’ve said this before, single handedly, creating the market for commercial quantum computing.

Let me illustrate our momentum with a quote from IDC analyst, Heather West, who recently wrote, and I quote because D-Wave Quantum’s quantum annealer is specifically built for solving optimization problems. Some may argue that the quantum annealer is limited in the type of problem that it can be used to solve. However, optimization problems are one of the most prevalent problems found in all industries. Hence, D-Wave Quantum technology provides an access point for all end users that are interested in using quantum computing to gain business value, both today and into the future. Again, that’s our IDC analyst, Heather West. So there is rapidly growing recognition of the value and potential of D-Wave and its unique annealing quantum computing solutions to one streamline and optimize business processes, including applications like workforce scheduling, vehicle routing and resource allocation, and two fuel important research breakthroughs in areas like material science. And there is a growing realization that annealing quantum computing can deliver results in these areas today, not 5 or 7 years from now, but today. For example, we’re being invited to engage in an increasing number of government meetings and conferences to provide government personnel with a better understanding of the capabilities of quantum computing technologies today and in the future. We’re also seeing an increase in third-party scientific papers highlighting our annealing quantum computing technology and its capabilities.