Why did QBTS's gross profit decline sharply in early 2023?

The gross profit of D-Wave Quantum (QBTS) declined sharply in early 2023 due to several factors: 1. **Revenue Shortfall**: Although bookings increased significantly, revenue remained flat compared to the previous year, coming in at $8.8 million for the fiscal year 2024. This shortfall indicates challenges in converting technological advancements into financial gains. 2. **Cost of Revenue**: The cost of revenue increased to $3.264 billion, up from $2.939 billion in the same period of the previous year. This rise in costs likely contributed to the decline in gross profit. In summary, the decline in gross profit can be attributed to a combination of factors, including revenue shortfall and cost of revenue.