• Revenue: $293,000 for fiscal year 2024, down from $640,000 in 2023.

• Operating Loss: $24.6 million for fiscal year 2024, compared to $54.5 million in 2023.

• Administrative Expenses: $23.5 million for fiscal year 2024, down from $52.5 million in 2023.

• Cash and Cash Equivalents: $18.7 million at the end of fiscal year 2024, compared to $44.5 million in 2023.

• Headcount: Reduced to 85 employees at fiscal year end 2024, from 147 in 2023.

• Contracts Executed: 13 contracts in 2024, up from 7 in 2023.

• Warning! GuruFocus has detected 8 Warning Signs with ARQQ.

Release Date: December 05, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Arqit Quantum Inc (NASDAQ:ARQQ) has a unique and purpose-built Metric Key Agreement software product.

• The company is experiencing accelerated engagement with OEMs, network operators, governments, and end users.

• Arqit Quantum Inc (NASDAQ:ARQQ) has been recognized as a 2024 IDC Innovator for post-quantum cryptography.

• The company executed 13 contracts in 2024, nearly doubling from the previous year.

• Arqit Quantum Inc (NASDAQ:ARQQ) has reduced its monthly operating costs and headcount, focusing resources on sales, engineering, and customer fulfillment.

Negative Points

• Revenue for fiscal year 2024 was $293,000, down from $640,000 the previous year.

• The company did not sell any significant perpetual enterprise licenses in fiscal year 2024.

• Arqit Quantum Inc (NASDAQ:ARQQ) is transitioning from perpetual licenses to operational licenses, resulting in lower upfront revenue.

• The company ended fiscal year 2024 with a reduced cash balance of $18.7 million, down from $44.5 million the previous year.

• Despite progress, the company acknowledges that significant work is needed to drive revenue to scale.

Q & A Highlights

Q: Can you discuss the revenue cadence for the seven-figure Middle East deal? Does it ramp over time or remain steady? A: The deal is steady and will start being reflected in our results during this reporting period. It doesn't ramp up over time.

Q: Could you provide more details on additional government enterprise contract opportunities in the Middle East region? A: We are seeing strong interest from governmental bodies and larger enterprises in the Middle East, partly due to proactive legislation on post-quantum encryption. Our strong local partnerships position us well to capitalize on these opportunities.

Q: How is AI impacting the use of your quantum-safe technology? A: We are exploring AI's role in our technology roadmap, particularly in remediation. AI could help identify vulnerabilities and suggest solutions, making the technology more accessible to non-experts.