D-Wave Quantum Expects Q2 Revenues Below Consensus, Cuts 2023 Outlook

D-Wave Quantum Inc QBTS provided Q2 2023 preliminary revenues below the consensus.

The company expects Q2 revenues in the $1.65 million-$1.80 million range below the consensus of $2.3 million due to the timing of revenue recognition on some professional services contracts. 

Bookings rose 146% Y/Y to $2.5 million, representing the fifth consecutive quarter of Y/Y booking growth.

In Q2, the average deal size rose 136% Y/Y.

2023 Outlook: QBTS cut the guidance for revenue to $11 million-$13 million (from $12 million-$13 million earlier vs. consensus of $12.25 million) and now expects adjusted EBITDA to be less than negative $(58) million (vs. less than negative $(62) million earlier).

The company updated the outlook to reflect the timing of the revenue recognition related to professional services contracts and current market conditions.

"We believe that enterprise adoption of quantum computing is accelerating, as evidenced by our year-over-year and YTD uptick and growth in bookings. We're seeing an increased appetite for our quantum solutions by companies from all sectors – technology, life sciences, media and advertising, energy, just to name a few – recognizing the value our annealing quantum computing solutions can bring to solving tough business challenges and fueling operational excellence today. On top of our commercial momentum, we're also encouraged by the flurry of US legislative proposals we believe are designed to quicken the adoption of near-term quantum computing solutions," said Dr. Alan Baratz, CEO.

Price Action: QBTS shares are trading higher by 1.09% at $2.78 premarket on the last check Friday.