Quantum Computing Inc. (NASDAQ: QUBT) shares plunged 12.18% in Thursday's trading session following the release of the company's fourth quarter 2024 financial results. The significant drop reflects investor concerns over the quantum technology company's widening losses and slower-than-expected revenue growth.
The company reported a staggering net loss of $51.2 million for Q4 2024, or $(0.47) per basic share, compared to a net loss of $6.8 million or $(0.09) per share in the same period last year. This substantial increase in losses was primarily attributed to non-cash charges related to the mark-to-market of the company's warrant-related derivative liability. Additionally, operating expenses rose to $8.9 million, up from $6.6 million in Q4 2023, driven by higher non-cash employee-based expenses and increased depreciation costs for production equipment.
Despite reporting a 55% gross margin, Quantum Computing Inc. faced challenges with its top-line performance. The company's Q4 revenue of approximately $62,000 fell short of analyst expectations of $200,000. While CEO Dr. William McGann emphasized the company's strengthened financial position, with cash and cash equivalents increasing to $78.9 million, investors appeared more focused on the current financial performance rather than future potential. As Quantum Computing Inc. continues to invest in scaling operations and commercialization efforts, it remains to be seen whether the company can translate its technological advancements into sustainable financial growth.
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