QBTS Earnings Preview: Expecting Q2 Loss and Revenue Growth

D-Wave Quantum (QBTS) is set to report Q2 earnings on August 7, with analysts expecting a loss of $0.05 per share and a 16% increase in revenues to $2.54 million. Investors will be watching for signs of Advantage2 demand, new business deals, and steady income from repeat customers. Analysts are bullish on the stock, with a Strong Buy consensus rating and an average price target of $21.00. Options traders anticipate a 14.92% move in either direction after the earnings report.

D-Wave Quantum (QBTS) is set to release its Q2 earnings on August 7, with analysts anticipating a loss of $0.05 per share and a 16% increase in revenues to $2.54 million. Investors will closely monitor the report for indications of Advantage2 demand, new business deals, and steady income from repeat customers. Analysts are optimistic about the stock, with a Strong Buy consensus rating and an average price target of $21.00. Options traders expect a significant move in either direction following the earnings report, with a projected 14.92% swing.

D-Wave Quantum reported revenues of $15 million in the first quarter, a remarkable 509% year-over-year increase. The growth was driven by the delivery of its first "Advantage" quantum computer system to the Jülich Supercomputing Centre in Germany [2]. The company's cloud-based quantum computing services, offered through a model known as quantum computing as a service (QCaaS), are also contributing to its revenue growth. In the first quarter, D-Wave Quantum acquired 133 customers, up from 128 last year, with notable clients including Lockheed Martin Corporation (LMT) and Mastercard Incorporated (MA) [2].

Despite the impressive Q1 performance, the company reported an operating loss of $11.3 million. However, D-Wave Quantum's substantial cash reserves, with a balance of $815 million as of July, significantly exceed its total liabilities of $118.2 million from the first quarter [2]. The company also raised $400 million through an equity offering in June, positioning it to pursue acquisitions that could drive revenue growth.

The launch of a toolkit for AI model developers is expected to boost D-Wave Quantum's revenue further. The company's strong cash position and the potential for new business deals make it an attractive investment opportunity. However, investors should be cautious, as quantum computing is still in development and faces stiff competition from larger tech firms [2].

Analysts are optimistic about D-Wave Quantum's prospects, with a Strong Buy consensus rating and an average price target of $21.00. The company's Q2 earnings report will provide more insights into its financial health and future growth potential. Investors will be watching for signs of Advantage2 demand, new business deals, and steady income from repeat customers.

References:
[1] https://finance.yahoo.com/news/better-quantum-computing-stock-rigetti-222000641.html
[2] https://www.nasdaq.com/articles/rigetti-or-d-wave-which-pure-play-quantum-stock-buy