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.
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