What's behind QBTS's consecutive earnings misses in 2024?

D-Wave Quantum Inc. (QBTS) has faced consistent revenue shortfalls and earnings misses in 2024, primarily due to operational inefficiencies and high cost ratios: 1. **Revenue Shortfalls**: The company's revenue has been decreasing, from $2.6 million in Q3 2023 to $2.18 million in Q2 2024, and $2.31 million in Q4 2024. This decline is attributed to a reduction in professional service revenue. The estimated revenue for the full year 2024 was $10.09 million, which was not met. 2. **Earnings Misses**: QBTS has struggled with net income deficits, with a net income of -$86.08 million reported for the year. The company has not met consensus EPS estimates, with the latest EPS surprise being -$0.02. This underperformance can be attributed to high operating expenses and cost ratio increases. 3. **Cost Ratio Increases**: The cost ratio for the company has risen to 44%, primarily due to higher non-cash stock-based compensation and fabrication expenses. This increase in cost ratio has adversely affected the company's profitability. 4. **Operational Inefficiencies**: QBTS has faced challenges in optimizing its operations, which has led to a decrease in revenue and profitability. For instance, the company's cost of revenue for the quarter was $827,000, representing 44% of revenue, compared to 40% in the same quarter of the previous year. In summary, QBTS's consecutive earnings misses in 2024 are primarily due to operational inefficiencies, high cost ratios, and a decrease in revenue. These factors have resulted in the company's financial performance not meeting expectations.