D-Wave Quantum Inc

D-Wave Quantum Inc. (NYSE: QBTS) is a quantum computing company, which is engaged in the development and delivery of quantum computing systems, software, and services. The Company builds and delivers the systems, cloud services, application development tools, and professional services to support the end-to-end quantum computing journey for enterprises and developers. The Company's products include The Leap and The Advantage.

Recent Business and Financial Updates

• Strong Growth in Bookings for FY 2024: D-Wave Quantum Inc. (NYSE: QBTS) reported significant growth in its bookings for fiscal year 2024, marking a 128% increase year over year, with total bookings reaching USD 23.9 million, compared to USD 10.5 million in 2023. The fourth quarter of fiscal 2024 was especially robust, seeing a 502% increase in bookings from the previous year, with USD 18.3 million in bookings compared to USD 3.0 million in the same period in 2023. This strong booking performance reflects a growing demand for D-Wave’s quantum computing solutions across various industries.
• Record Cash Position Exceeds USD 300 Million: D-Wave’s financial position is bolstered by its record cash balance, which exceeded USD 300 million as of March 2025, significantly higher than the USD 178 million reported at the close of fiscal 2024. This solid cash position enables the company to continue its investments in innovation and expand its quantum computing operations. During the fourth quarter of fiscal 2024, D-Wave raised USD 307.5 million through equity offerings, enhancing its liquidity and ensuring financial flexibility for future growth initiatives.
• Technological Advancements and Quantum Supremacy: D-Wave has achieved notable technological milestones, particularly in the area of quantum computational supremacy. The company successfully demonstrated that its Advantage2™ quantum annealing system can solve a complex materials discovery problem significantly faster and with lower power consumption than one of the world’s most advanced classical supercomputers. This breakthrough, which has been peer-reviewed and published in the Science journal, showcases the superior performance of D-Wave's quantum technology in addressing real-world challenges. Furthermore, D-Wave introduced an on-premises quantum system to enable customers to push the boundaries of quantum experimentation, with the Julich Supercomputing Centre becoming the first to acquire a D-Wave Advantage system for integration with Europe’s first exascale HPC, the JUPITER supercomputer.
• Expanding Customer Base and Strategic Partnerships: D-Wave’s customer base has grown steadily, with 135 customers at the close of fiscal 2024, compared to 133 customers in 2023. Notably, the company has attracted 28 Forbes Global 2000 customers, representing 37% of its commercial clientele. D-Wave has also formed strategic partnerships to further extend its reach, including a collaboration with Carahsoft Technology Corp. to bring quantum computing solutions to the public sector. This partnership will enable public sector organizations to access D-Wave’s Leap quantum cloud service, as well as benefit from workforce training programs and specialized application development support.
• Financial Results and Profitability Overview: D-Wave’s financial performance for fiscal year 2024 showed steady revenue of USD 8.8 million, which remained consistent with the previous year. The company achieved a 20% increase in GAAP gross profit, totaling USD 5.6 million in 2024, driven by higher-margin quantum computing-as-a-service (QCaaS) revenue and reduced stock-based compensation expenses. Despite this, D-Wave posted a net loss of USD 143.9 million for the year, an increase from the previous year’s loss of USD 82.7 million, mainly due to non-cash charges related to the revaluation of the company’s warrant liability.
• Fourth Quarter Financial Performance: In the fourth quarter of fiscal 2024, D-Wave experienced a 21% decline in revenue, which totaled USD 2.3 million, compared to USD 2.9 million in the fourth quarter of fiscal 2023. However, the company reported a 502% increase in bookings, reaching a record USD 18.3 million for Q4, a significant jump from USD 3.0 million in Q4 2023. The GAAP gross margin for Q4 was 63.8%, reflecting a decrease from the 67.7% margin reported in the previous year, mainly due to lower professional services revenue. Operating expenses for Q4 increased by 17%, driven by higher personnel costs and fabrication expenses, as the company continued its investments in growth and development.
• Outlook for First Quarter Fiscal 2025: Looking ahead, D-Wave anticipates revenue for the first quarter of fiscal 2025 to exceed USD 10 million, with a significant portion of the revenue coming from the sale of a D-Wave Advantage annealing quantum computer. This forecast highlights the company’s ongoing growth trajectory and its strong position in the quantum computing industry, as D-Wave continues to advance its product offerings and expand its customer base.
  

Technical Observation (on the daily chart):

The 14-day Relative Strength Index (RSI) is currently at 49.05, currently downward trending and recovered from overbought zone, with the expectations of consolidation or some support from 50-SMA support. In addition, the current price is above both the 50-day and 200-day Simple Moving Averages (SMAs), which may work as medium to long term support levels.

As per the above-mentioned price action, recent key business and financial updates, momentum in the stock over the last month, and technical indicators analysis, a ‘WATCH’ rating has been given D-Wave Quantum Inc. (NYSE: QBTS) at the current price of USD 7.42, as of March 31, 2025, at 09:15 am PDT. 

Individuals can evaluate the stock based on the support and resistance levels provided in the report in case of keen interest taking into consideration the risk-reward scenario. 

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and prevailing geopolitical tensions. Therefore, it is prudent to follow a cautious approach while investing.

Related Risk: This report may be looked at from a high-risk perspective and a recommendation is provided for a short duration. This report is solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc. 

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 31, 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.