Release Date: November 12, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Rigetti Computing Inc (RGTI, Financial) plans to introduce a new modular system architecture by mid-2025, with a 36-qubit system based on 49-qubit chips and a targeted 99.5% median two-qubit gate fidelity.
- The company remains on track to develop and deploy its anticipated 84-qubit ONCA three system with a goal of achieving a 99+% median two-qubit gate fidelity by the end of 2024.
- Rigetti Computing Inc (RGTI) has demonstrated successful tiling of nine-qubit chips without performance deterioration, marking a significant milestone in multichip QPU architecture.
- The company is collaborating with River Lane to advance quantum error correction technology, demonstrating real-time low latency quantum error correction.
- Rigetti Computing Inc (RGTI) has a strong cash position with $92.6 million in cash, cash equivalents, and available-for-sale investments as of September 30, 2024, providing sufficient funds to meet anticipated operating cash needs until midway through the first quarter of 2026.
Negative Points
- Revenues for the third quarter of 2024 were $2.4 million, a decrease from $3.1 million in the third quarter of 2023.
- Gross margins in the third quarter of 2024 were 51%, down from 73% in the third quarter of 2023, due to variability in contract deliverables and timing with major government agencies.
- The company reported a net loss of $14.8 million for the third quarter of 2024, although this was an improvement from a net loss of $22.2 million in the same period of the prior year.
- The NQCC contract has a lower gross margin profile, which will continue to impact financials through the first quarter of 2025.
- The delay in the reauthorization of the National Quantum Initiative Act has impacted near-term financials, affecting funding from government sources.
Q & A Highlights
Q: Has anything changed in the way that you're thinking about the roadmap and strategy, especially regarding the progress on tiling?
A: Subodh Kulkarni, President and CEO, stated that confidence in the roadmap is increasing. Rigetti is making high-quality nine-qubit chips with high fidelity and has demonstrated successful tiling without performance deterioration. The company plans to scale up to 36 qubits by mid-2025 and over 100 qubits by the end of 2025, maintaining high gate speeds and fidelities.
Q: Were there any metrics that were better than expected or areas needing improvement in the tiling of nine-qubit chips?
A: Subodh Kulkarni explained that tiling chips at high fidelity without losing performance is a significant achievement. The tiling approach leverages chiplet technology from the CMOS industry, which helps in scaling and maintaining high yields.
Q: How do you view government funding opportunities, and are there any updates on lobbying efforts?
A: Subodh Kulkarni mentioned that the U.S. government is a primary funding source. The NQI Act reauthorization is pending, which affects near-term financials. Rigetti is pursuing opportunities with the Department of Defense and DARPA, and is increasing lobbying efforts to secure funding.
Q: What is the balance between single-chip processors and multi-tile systems for future scalability?
A: Subodh Kulkarni noted that while the optimal qubit count for tiling is still being explored, the current nine-qubit tiling approach is effective. Tiling allows for high yields and scalability, similar to the CMOS industry's chiplet technology.
Q: When will quantum error correction become a focus, and how does it fit into the roadmap?
A: Subodh Kulkarni stated that quantum error correction is already being integrated, as demonstrated with River Lane. While fidelity improvements will continue, error correction becomes practical at mid-99% fidelity levels, enabling near-term quantum advantage.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
