Quick Summary
- Q2 revenue reached $5.14 million, surpassing the $5.09 million consensus and marking substantial growth from $1.8 million year-over-year.
- Shares declined 4.4% in extended trading hours despite exceeding revenue expectations.
- Operating losses expanded to $28.1 million compared to $20.4 million in the prior-year period.
- The company reported an EPS loss of $0.05, falling short of the Zacks consensus estimate for a $0.03 loss.
- As of June 30, the company maintained $541.3 million in cash reserves with zero debt obligations.
Rigetti Computing delivered second-quarter revenue of $5.14 million, surpassing Wall Street’s $5.09 million projection. This represents a significant increase from the $1.8 million recorded during the comparable quarter a year earlier. However, the positive revenue performance wasn’t enough to lift investor sentiment, as RGTI stock retreated 4.4% during Thursday’s after-hours session.
Year-to-date, the stock has declined approximately 24.2%, lagging significantly behind the S&P 500’s 12.8% gain during the same timeframe.
The stronger-than-expected revenue performance was primarily fueled by increased quantum system sales. These full-scale on-premise installations command multi-million dollar price tags, positioning them as critical revenue contributors for the organization.
The company disclosed that it is actively executing orders for systems powered by its Novera processor, which includes a substantial contract with a research facility in India. Additionally, Rigetti is preparing to install a quantum computing system at the Pittsburgh Supercomputing Center, supported by funding from the National Science Foundation.
This arrangement strengthens an ongoing collaboration with Hewlett Packard Enterprise.
Operating Losses Expand
While revenue showed impressive growth, the company’s financial losses intensified. Rigetti recorded a Q2 operating loss of $28.1 million, a notable increase from the $20.4 million loss reported during the same quarter last year.
Adjusted earnings per share registered a loss of $0.05, unchanged from the prior-year figure but disappointing compared to the Zacks consensus forecast calling for a $0.03 loss. This resulted in a negative earnings surprise of 66.67%.
On a more encouraging note, the company closed the quarter with a debt-free balance sheet and $541.3 million in cash, cash equivalents, and marketable securities.
For comparison, IonQ reported $80.1 million in revenue during its most recent quarter. Following Rigetti’s results, D-Wave Quantum shares edged down 0.1% in after-hours trading, while IonQ declined 0.9%.
Government Funding Deal Remains Unfinalized
A significant catalyst to monitor is a letter of intent with the Commerce Department, unveiled in May. According to the proposed terms, Rigetti stands to secure $100 million in government funding in return for providing an equity position.
Management confirmed Thursday that this arrangement has not yet been completed.
The company employs a superconducting quantum computing framework and is advancing a chiplet-based design strategy, which management believes will facilitate the construction of more powerful systems while maintaining acceptable error rates.
In recent months, Rigetti postponed the launch of its Cepheus-1-108Q system as it focused on achieving specific technical benchmarks.
Moving forward, Wall Street analysts currently project an EPS loss of $0.05 on $3.92 million in revenue for the upcoming quarter, and a full-year loss of $0.18 on $25.33 million in revenue.
Zacks has assigned RGTI a Hold rating (Rank 3), indicating expectations for market-level performance in the near term.
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