For the third straight quarter, IonQ (NYSE: IONQ) saw its revenue more than triple. However, this time, its results were not enough to give the stock a lift, as its shares fell more than 9% the following session after its May 6 announcement. Yet the stock remains up more than 60% over the past year.
Let’s look at the quantum computing company’s earnings report and prospects to see whether this dip is a good buying opportunity.
Will AI create the world’s first trillionaire? Our team just released a report on the one little-known company, called an “Indispensable Monopoly” providing the critical technology Nvidia and Intel both need. Continue »
Revenue surges again
While quantum computing is in its infancy, IonQ has become one of the early leaders in the field because its trapped-ion technology has proven to be one of the most accurate. This was on display when it hit the milestone of 99.99% 2-qubit gate fidelity (accuracy) last fall. This, in turn, is helping lead to more sales and contacts.
In the first quarter, IonQ’s revenue surged 755% to $64.7 million from $7.6 million a year ago. That was 30% above the midpoint of its guidance range.
About 60% of its revenue came from commercial customers, with the company saying its quantum solutions are moving from the lab to real-world applications. Meanwhile, 35% of revenue came from international markets, while a third came from multiproduct sales.
Remaining performance obligations (RPOs), which can be an indicator of future growth, soared 554% to $470 million. It noted that for every $1 in revenue, it was seeing $2.50 in new RPOs.
Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA), meanwhile, came in at a loss of $96.8 million, compared to a loss of $34.1 million a year ago. It said excluding spending with foundry SkyWater, which it is in the process of acquiring, adjusted EBITDA would have been a loss of $85 million. Adjusted EPS, meanwhile, was a loss of $0.34.
IonQ also continues to burn cash, with negative operating cash flow of $151 million for the quarter, and negative free cash flow of $159.3 million. It ended the year with about $3.1 billion in cash and investments on its balance sheet and no debt.
The company raised its full-year revenue guidance to $260 million to $270 million, up from a prior outlook of $225 million to $245 million. It said that organic revenue growth would double. For Q2, it is looking for revenue between $65 million and $68 million. However, IonQ did maintain its full-year EBITDA guidance of a loss of $330 million to $310 million.
