IonQ ($IONQ)- Investing Analysis and Opinions

Updated on 08/10/23

About:

IonQ, Inc. develops and manufactures quantum computers.

Latest Q2 2023 Financial Results

• Revenue: $5.5M, +111% y/y
• Bookings: $28M
• 2023 Revenue Outlook: Increased to $18.9M to $19.3M
• Net Loss: $43.7M
• Adjusted EBITDA Loss: $19.4M, on projection track
• Cash: $509.2M
• Established First Quantum Data Center in Europe

Quotes:

CEO Peter Chapman:

“We are within striking range of our goal of $100 million in cumulative bookings within the first three years of IonQ’s commercialization, starting in 2021.”

“ Our track record of success is beginning to speak for itself in the public markets, and we are relentlessly focused on bringing broad quantum advantage to all our customers.”

“our team had already accomplished our technical goal for 2023 over seven months ahead of schedule, by achieving a record-breaking 29 algorithmic qubits or AQ on our IonQ Forte system.”

“We currently expect to deliver AQ 64 by the end of 2025. At AQ 64, IonQ quantum computers will be able to explore a useful computational space of two to the power of 64 for running quantum algorithms; classical computers will no longer be able to fully simulate an IonQ system, and as a result, we believe these systems will enable customers to tackle certain problems that even the best classical supercomputers can’t solve.”

How is inbound interest for the product?

“Customers are starting to recognize that that’s going to be — what I would say is kind of quantum’s ChatGPT moment”

How is new product development?

“We continue to execute against our tech roadmap, just as what we said we were doing. And so we will continue doing that. We’re very confident in it.”

Bullish Opinions

• Growth:111% y/y revenue growth with solid bookings
• Differentiator: It is the only quantum hardware available on all major clouds including Microsoft Azure, Amazon AWS, and Google Cloud.
• Management: IonQ is led by founders with good execution records. The team showed a lot of confidence during earning call.

Bearish Opinions

• Valuation: P/S ratio (TTM) is 200+