Despite D-Wave Quantum’s 81% revenue drop, shares rose 2.7% in premarket trading. Investors focused on a jump in bookings, indicating real business progress. Here’s a look at the numbers and why the company’s outlook matters more than its recent performance.
First-quarter revenue fell to $2.86 million, down from last year and below the $4.2 million analysts predicted. The decline happened because last year’s results had a large one-time quantum computer sale. D-Wave’s CEO said these kinds of revenue swings are common in the quantum industry, since a single big sale can change results from one quarter to the next.
Bookings showed a different trend. Orders totaled $33.4 million this quarter, up from $1.6 million a year ago. This increase resulted from a $20 million system sale to Florida Atlantic University and a $10 million two-year agreement with a Fortune 100 company. Since bookings represent future revenue, this change may indicate increased adoption of D-Wave’s technology by businesses.
Other quantum computing companies also saw their stocks rise on Tuesday. IonQ was up 3.5%, and Rigetti Computing gained 4.1% after it released its first-quarter earnings report on Monday.
D-Wave’s results indicate a current market focus on recent bookings rather than present revenue as a measure of business adoption.
Featured Courses
Recent news
OpenAI Weighs 5% U.S. Government Stake Ahead of Blockbuster IPO
OpenAI has held discussions about offering the U.S. government a 5% ownership stake, potentially structured through a sovereign wealth fund, according to a Financial Times report citing people familiar with the matter. The ChatGPT maker did not immediately respond to a request for comment. The move would add Washington to an already formidable roster of […]
Tesla Deliveries Loom as Investors Bet on Second Straight Quarterly Gain
Tesla is poised to report second-quarter delivery figures Thursday morning, capping a period marked by geopolitical conflict, a spike in oil prices, and continued fallout from shifting U.S. electric-vehicle policy. The automaker’s shares have rallied sharply ahead of the report, a signal that investors anticipate a strong outcome. Even so, forecasts vary widely enough that […]
Nvidia Stock Trails Chip Peers in First Half as Competition Broadens
Nvidia shares rose 0.4% to $195.75 in premarket trading on Tuesday, ending a first half that trailed the broader semiconductor sector. The stock is up 4.5% for the year through Monday, much less than the PHLX Semiconductor Index’s 94% gain over the same period. Here’s a look at why Nvidia has underperformed and what investors […]
Trade with fewer limits
Day trade with fewer limits at fast speed. Buy stocks and ETFs at low fees.