IonQ kicked off the quantum earnings season on Wednesday, posting what its CEO called "the strongest quarter" in the company's history.
Maryland-based IonQ -- which has expanded from its roots in quantum computing to adjacent technologies such as networking and sensing -- posted a narrower-than-expected adjusted loss of 33 cents a share compared to analysts' calls for a loss of 56 cents.
The real bright spot was revenue, which nearly quadrupled from last year to $80.1 million, ahead of Wall Street's forecast for $66.5 million. Management cited growing traction with commercial customers using IonQ's Tempo quantum computers and continued demand for its cloud computing services.
The surge in revenue came even as IonQ posted a wider quarterly loss. IonQ's net loss for the period was nearly $1.9 billion. Its adjusted earnings before interest, taxes, depreciation, and amortization loss, at $120.3 million, reflects the costs of its commercial relationship with and pending acquisition of SkyWater Technologies. These figures compare to losses of $177.5 million and $36.5 million, respectively, in the same period last year.
No surprises there: The company remains unprofitable, even as its technology continues to gain traction, both with enterprises and at the government level. For now, earnings mean very little in the world of quantum computing, as investors await technical milestones at the end of the decade that are expected to catalyze the market.
Still, IonQ was rising in after-hours trading Wednesday following the report. Shares gained 2% after ending the regular session down 4.3%.
One reason could be a guidance hike. IonQ now sees full-year revenue between $280 million and $290 million, up from a prior range of $260 million to $270 million. Analysts are looking for $268.6 million.
To bolster growth ahead of broader commercialization, the company has leaned heavily into acquisitions of related businesses. Last week, IonQ completed its $1.8 billion acquisition of chip maker SkyWater, bringing its semiconductor foundries in-house to gain full control of the hardware supply chain.
The deal hit a snag after the Federal Trade Commission's top leaders disagreed on whether the merger posed risks to competition, prompting a regulatory review. Chairman Andrew Ferguson proposed requiring IonQ to grant fair access to rival quantum computing companies, some of which have ongoing contracts with SkyWater. Commissioner Mark Meador disagreed, saying he believed the merger wouldn't diminish competition. The FTC ultimately cleared the transaction on Friday.
The deal comes as the U.S. government moves to strengthen the domestic quantum supply chain. In May, a handful of public companies including Rigetti Computing and D-Wave Quantum struck tentative agreements with the Commerce Department, trading minority stakes for federal funding.
While IonQ was notably absent from that deal, the company remains a key government collaborator. CEO Niccolo de Masi attended a White House summit in July, the latest sign of the company's deep ties to the federal level after establishing a business division for government clients late last year.
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