Rigetti Computing (RGTI) Q3 Earnings call transcript Nov 12, 2024

Rigetti Computing, a leading player in the quantum computing industry, recently held its third quarter 2024 earnings call, highlighting significant strides in technology development and strategic partnerships. The call, led by Dr. Subodh Kulkarni, President and CEO, and Jeffrey Bertelsen, CFO, provided valuable insights into the company's current financial standing and future plans.

Confidence in Roadmap and Technological Advancements

Subodh Kulkarni expressed confidence in Rigetti's roadmap, emphasizing the company's progress in developing high-quality qubits with impressive gate speeds. By mid-2025, Rigetti plans to release a 36-qubit system based on 4 9-qubit chips, targeting a 99.5% median 2-qubit gate fidelity. The company is also developing the 84-qubit Ankaa-3 system with the goal of achieving a 99-plus percent median 2-qubit gate fidelity by the end of 2024. These advancements underscore Rigetti's commitment to driving innovation in quantum computing.

Strategic Partnerships and Collaborations

Rigetti's strategic partnerships have been a significant highlight, particularly its collaboration with Riverlane to advance quantum error correction technology. This partnership is expected to play a crucial role in developing fault-tolerant quantum computers, a key milestone in the field. Additionally, the company's work with NVIDIA and Quantum Machines has demonstrated the potential of hybrid quantum computing, showcasing the importance of high-speed qubits in coexisting with CPUs and GPUs.

Financial Performance and Future Outlook

While revenues for Q3 2024 were lower than the previous year, the company is optimistic about its future revenue growth. Jeffrey Bertelsen emphasized the importance of lobbying efforts to secure government funding, particularly the anticipated NQI reauthorization, which could significantly impact Rigetti's financial trajectory in the coming years. The company's financial statements also highlight a decrease in total Operating Expenses (OpEx) for Q3 2024 compared to the previous year, primarily due to the expiration of the Ampere Forward agreement.

Market Opportunities and Competitive Landscape

With a market opportunity of $7.5 billion in the next 5 years, Rigetti is well-positioned to capitalize on the growing demand for quantum computing. The company's focus on superconducting qubits, with their faster gate operations and compatibility with hybrid computing, positions it favorably against competitors. Rigetti's strategic partnerships and collaborations are expected to bolster its market share and drive growth in the superconducting quantum computing space.

In conclusion, Rigetti Computing's Q3 2024 earnings call highlighted the company's robust progress in technology development, strategic partnerships, and financial management. With a clear focus on innovation, Rigetti is well-positioned to capitalize on the growing demand for quantum computing, particularly in the research and development sector. As the company continues to execute its roadmap, investors and stakeholders can look forward to exciting developments and growth opportunities in the quantum computing industry.