IonQ is doubling down on quantum networking with an acquisition, diversifying globally and has a new CEO along with fourth quarter results and plans to raise more capital.
For one of quantum computing's highfliers that's a busy afternoon and a lot of transition going into a new fiscal year.
IonQ's busy news day was framed by a leadership change. IonQ named Niccolo de Masi CEO with Peter Chapman becoming Executive Chair. Chapman will focus on strategy and enterprise adoption. De Masi was already on IonQ's board and previously was CEO of the SPAC that hatched IonQ in 2021.
On a conference call, de Masi and Chapman took questions and covered topics seamlessly. "This evolution will allow me to spend more time focused on our strategic customer relationships and the development of quantum AI," said Chapman, who noted de Masi has been involved in IonQ's strategic direction and growth plans from the beginning. IonQ also named Gabrielle Toledano, Chief People Officer of Tesla, to its board.
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"There's a lot of continuity, and there's obviously an opportunity for the two of us to tackle two businesses, which are growing at inflection points that are truly historic," said de Masi. "There are no changes in strategic direction, because Peter and I have been working together closely to set the strategic direction the last five years, and we'll continue to do that."
And then there's the bet on quantum networking. IonQ has focused on quantum computing systems, but is betting that quantum networking can be just as big of a market. The company said it will buy ID Quantique in a move that will boost its quantum networking business. In November, IonQ bought Quibitekk.
The purchase of ID Quantique gives IonQ more quantum networking patents and diversifies the company's global footprint with expansion in South Korea. IonQ also forged a partnership with SK Telecom. With 300 patents from ID Quantique, IonQ now has 900 patents that are granted or pending.
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Chapman explained:
"Our goal is to build a suite of products that enable secure quantum communication in all forms, from satellites to ground stations, across existing telecommunication fiber infrastructure, to drones on a battlefield. Those following IonQ closely will note that we are building out the key component technologies for the telecom and defense sectors. With the pending addition of ID Quantique and the completed addition of Qubitekk, we will partner with their existing blue chip customers, which include SK Telecom and the Electric Power Board of Chattanooga. These customer relationships allow us to test new hardware and applications in real-world environments."
Q4 results, new capital, new use cases
IonQ reported fourth quarter revenue of $11.71 million with a net loss of $202 million, or 93 cents a share. IonQ's net loss was inflated by the fair value of warrant liabilities. When IonQ shares go higher so do the warrant liabilities.
For 2024, IonQ delivered revenue of $43.07 million, nearly double from a year ago. The net loss was $331.65 million for 2024.
IonQ projected 2025 revenue of $75 million to $95 million with between $7 million to $8 million in the first quarter. IonQ also said it would offer $500 million in stock to raise cash that will be used to expand the quantum networking business.
Chapman said IonQ's partnership with AstraZeneca is showing promising results in chemistry modeling. An Ansys partnership puts IonQ in the computer-aided engineering market. “We believe that 2025 will, in fact, be the year of quantum, one in which you see both public and private institutions realize that computing and networking game will be forever changed by IonQ systems,” said Chapman. “With commercial advantage right around the corner, the inflection point that everyone has been waiting for is not far behind it.”
In the weeks ahead, IonQ will outline commercial advances, appear at Nvidia GTC and launch new quantum computing metrics as it depreciates its AQ performance benchmark, said Chapman.
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