In This Article:
Release Date: May 12, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Rigetti Computing Inc (NASDAQ:RGTI) has been selected to participate in DARPA's quantum benchmarking initiative, advancing their utility scale quantum computer concept.
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The company received an AFOSR award to further develop their breakthrough chip fabrication technology, ABAA, in collaboration with prestigious institutions.
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Rigetti Computing Inc (NASDAQ:RGTI) was awarded three Innovate UK Quantum Miss Pilot Awards to advance superconducting quantum computing.
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The company successfully demonstrated optical control of a superconducting qubit, which could significantly aid in scaling quantum systems.
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Rigetti Computing Inc (NASDAQ:RGTI) closed a strategic investment deal with Quanta Computer Inc, securing approximately $35 million.
Negative Points
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Revenues in the first quarter of 2025 were $1.5 million, a decrease from $3.1 million in the first quarter of 2024.
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Gross margins dropped to 30% in Q1 2025 from 49% in Q1 2024, partly due to lower margin contracts.
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Operating expenses increased to $22.1 million in Q1 2025 from $18.1 million in the prior year, driven by salary increases and stock compensation expenses.
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The company reported an operating loss of $21.6 million for Q1 2025, up from $16.6 million in the previous year.
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The passage and appropriation of the NQI reauthorization bill, which is crucial for funding, has been delayed, impacting potential sales and funding opportunities.
Q & A Highlights
Q: Can you provide an update on the progress of deploying chiplets to achieve 36 qubits by mid-year and over 100 by the end of 2025? A: (CEO) Deploying chiplets is crucial for scaling up qubits. We are confident in achieving 49 qubit chiplets by mid-year and over 100 qubits by year-end. Our previous attempts with two chiplets have been successful, and we believe this approach is essential for scaling superconducting qubits effectively.
Q: What is the status of the NQI reauthorization Act, and how does it impact your funding? A: (CEO) The NQI reauthorization Act has bipartisan support, but it hasn't passed yet. Once it does, it will take a couple of months for funds to be appropriated. We are optimistic about its passage soon, which is crucial for funding quantum computing initiatives.
Q: Can you elaborate on the DARPA contract and its significance? A: (CEO) The DARPA Quantum Benchmarking Initiative aims to build utility-scale quantum computing in the next seven years. We are in phase A, focusing on demonstrating chiplets and high fidelity. Success in this phase could lead to further phases with increased funding and strategic importance.