Rigetti Computing (RGTI) 14 Mar 242023 Q4 Earnings call transcript

Good day, and thank you for standing by. Welcome to Rigetti Computing's Fourth Quarter and Full Year 2023 Financial Results Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Subodh Kulkarni, Chief Executive Officer. Please go ahead, sir. .

you fourth in December quarter thank call earnings XX, and the covering and afternoon, for Rigetti's participating conference XXXX. Good year ended

will some today our me is Bertelsen, CFO, Joining Jeffrey results following detail who in my overview. our review

here is session. David in participate also CTO, the to Our Rivas, Q&A

the We will at be remarks. our answer to of pleased questions your conclusion

could regarding future operating described and statements XXXX, We and year results are QX could a assumptions would and in to press contain identify -- annual Securities to XX-K call Form and time release and documents subject Rigetti's and filed December to the time Exchange important you differ the the ended like and in objectives with are Commission. actual to this urge risks point address and other We risks year to current forward-looking uncertainties and our regarding uncertainties report on factors. from filings of statements December forward-looking statements. underlying out XX, company and contained by the results. XX, These expectations, detail that cause actual XXXX, cause from for those These risk those forward-looking number materially and these more of from ended described differ in discussions to materially review our that results events that

in a hardware pleased later on U.K. which were be U.K. develop number The and the a landmark Innovate proposed deploy serve this I'm report Quantum deployed as to by of computing In is Ankaa expected computer quantum to brand at is system architecture. research events. open small a Center quantum awarded XX-qubit planned we support National recent business February funded to on year facility developments. NQCC's the will to to XXXX, our to now campus, research NQCC's and based Turning and Computing from new initiative

the could at currently quantum deepen tactical of privilege resources computers the solving computer computing goal innovative have We system to in more alone. classical talented intractable how of even quantum community. our XXXX, had research by improve NQCC problems with U.K.'s enable we of the understanding to with a first superconducting quantum Since U.K.-based our deploying discoveries collaborating building believe

we Ankaa Novera X processing commercially class In December XXXX, on quantum has based our available our first architecture. the and launched unit, chip Novera is qubits QPU.

We X completed to national QPU have Novera both sales leading labs.

first and XXXX. second The in was led the System of sale by Materials quarter Quantum to Fermilab Superconducting Centers

Novera the In development. Rigetti's Lab harness the quantum indefinite third second to quarter contract enables Research part our hardware networking Air capabilities fabrication of Information The our Director Force Head quantity of to delivered as AFRL delivery, XXXX, we contract. IDIQ research indefinite

continuing our efforts financial solutions are to quantum We institutions. computing develop for

aim to with U.K. make with quantum techniques learning financial We the to effectively machine complex an institutions grant were states. enable awarded Innovate interpret to decisions data and more recently develop process,

in Joining and is London Chartered. Web College Imperial Services, Rigetti project Amazon this Standard

be requirements University Southern of California to framework the to Phase a requirements. the superconducting of problems continue X. computing University Sydney, project delivering for these X Phase provide We DARPA new optimize the a Phase in scale of recently solving for and bounds is X large-scale which the utility were develop selected partners University insight The of estimates of and necessary resource refine goal Aalto complex program, quantum system The will upper to estimation Technology to problems. aims of into awarded

on ORNL to high-performance first-ever system of the project Oak HPC to integration Ridge run National build and improve joint performance partners supercomputer. [indiscernible] the computing quantum benchmarking computing quantum quantum a are Laboratory with Summit work partnering and plan plus to of high-performance the integration. into a To Riverlane We develop to computers suite be environments,

our For use components, remote researchers California. correction to located Riverlane's stack and the at of key real in quantum hardware error hardware quantum on based headquarters simulated elements plan

And now regarding map. a few comments our technology road

Following in The our XXXX, XX made Ankaa-X in XX the was available to QPU December system available system public. XXXX. or our internal the March qubit publicly qubit XX-qubit Ankaa-X qubit development is system of Ankaa-X count highest

XX% to [ architecture these increase circuit a in includes ] In board fabrication error addition improvements. fidelity, get Combined, and lattice achieving our a that compared new QPUs. new features new improvements couplers, square to a Ankaa-X tunable printed prior technology chip a electronic Ankaa-X median chip a X-qubit and performance to X.Xx contributed process,

achieving anX develop anticipated the system We XX-qubit of develop X LiDAR XXXX. our of XXX deploy [ to Master, qubit by the it's to goal with qubit median -- end the and system. XX% plan plan our ] fidelity gate

innovative a in in are evidenced ability that groundwork architecture performing X-qubit design we gate for better We confident building We our build fidelity. Ankaa-X our scalable, QPUs to resulted Ankaa QPUs impressive XX% as chip the have by believe the laid our chip with [indiscernible] and median performance. high-performing

paired of researchers a world are anticipated expertise industry quantum of excellence of our world to a the addressing building ingenuity position with demonstrate capable challenges our real our computer leadership problems. full stack and academia, in for quantum deployment development collaborations We and in government and Ankaa-X with believe teams. unique which around puts R&D of system, excited the across strong will tackle the and we systems the believe our us We

With Rigetti computing that even now is regarding will labs we our X Jeff recent in more a practical few performance. are QPUs now make quantum remarks financial internationally, optimistic reach. in research

of be agencies. margin compared expected and variable in major deliverables at XX% given XXXX XX% compared XXXX company's the evolution to to a from SQMS gross and of in of the were revenue nature fourth amount came this of quarter with to the fourth Thanks, million quarter period for variability large when Subodh. is at stage XXXX. margins was Revenues the timing contract government Revenue in recognized. Gross in $X.X of quarter of XXXX the the same $X.X fourth million of

OpEx The primarily impairment was million quarter was same fourth $X.X expense due XXXX $XX.X quarter a charge the to the of booked the the to decrease side, and the in expense. compared the compensation million in reduction million million $X.X goodwill year-over-year $XX On XXXX prior in fourth of in in stock period total year.

the the our operating of the XXXX costs XXXX, benefit expense fourth of quarter decreases to Other million of quarter the loss Net XXXX. Cash, workforce. net of totaled quarter to XXXX compared employee of million million XXXX. of loss XXXX $XX.X loss million fourth equivalents and fourth quarter or of September million at $X.XX fourth was from totaled million $X.XX per Operating $XX.X same for XXXX XXXX. loss XXXX. XX, the XX, stock for $XX.X and million was per compared period the share lower wages for $X.X of in same compensation an compared fourth or share February for cash $XX.X In $XX.X million to period $XXX.X $X.X resulting quarter of and the investments December XXXX included December of in reduction XX, as XXXX, $XXX.X compared available-for-sale of as of million with a

Riley. of for million agreement. from During There the shares million further of we sale sale a B. common purchase $X.X with common raised first no $XX.X Subsequent stock XX.X we B. year-end, X.X to million under XXXX, are more the agreement. raised our of shares of the sale under quarter during XXXX, available Riley stock fourth million agreement from of of shares stock common quarter this the under the

we December shelf $XXX In Exchange million Securities XXXX, filed and with the a statement registration Commission.

financing We our are continually options. evaluating

questions. be We to would now your Thank happy answer you.

comes from question the Our first Quinn . line Company. with Bolton Needham & of

Can you hear me?

we Yes, can.

can of then finish. I couple, X-qubit nice there But of -- the year, for mentioned for to if prepared fiscal of that helpful. anything balance or year-end I since Congratulations Ankaa-X maybe year-end, XX% don't year-end 'XX. Perfect. would of do you you kind share I guess of sort else anything fidelities is to terms do highest know sort for revenue milestones. target. priorities? you're be your anything the shape a give And flow us at you the a Perfect. sort think any Subodh, can cash last there's Jeff, help if expectations like milestones provided cash in cash big on but anything and are wondering You -- median gate this can XXXX, you

Sure. Thanks, Quinn.

milestone important metric plan most certainly, is to most right for in we deliver important So XXXX fidelity. quantum the That the computing now. is in improvement

as percent fidelity, median stated, system X-qubit So not computation systems. our our Xx median well well from fidelity, a plan, of big also errors, only and in we can we correction, things XX-qubit XX-plus with and because error you reduction are milestone is get qubit doing are where error it's in start fidelity, through XX% [indiscernible] to conventional us XX% to at X is which known that's a mitigation, today kinds those gate realistic that but

that's milestone from So big a technology a standpoint.

our we that, obviously once As hit we press start we'll system. we continue release, do in XX%, qubit towards improve XXX while to working our we'll And Lyra fidelity. mentioned also

next to with the ] Our goal mid-XXs qubit. into year the hundred along [ is several get

DoD the technology Rigetti say all that the [indiscernible] it essentially computing we choice lab lab quantum big now with and So [indiscernible] can and with you premier see could milestones. Along those are AFRL, both other chosen quantum companies. as the computing [indiscernible] have

we lab deploy government U.K. the government had up it, DoD to chosen U.K. system. DOE and competition our computing the piece quantum the has and if set will. the so out XX-qubit came at top, U.K. [indiscernible] securing you a So Along national with or of government

hope goes other to higher or on, customers national some DOD We are we systems U.K., to continuing DOE existing and those. the we count the like some and announce or whether hope to can as labs, or certainly announce of work governments, U.K. DOD DOE, wins and more including it's year we national new qubit with the we'll

a you to So business about are technology we question as level cash? standpoint. well both a Jeff, the high that's answer as at from doing what want

providing comment sufficient we the we to now, Quinn, into and guidance right available not Sure. hand, would that on securities QX any I sale take forward-looking our Yes, given of cash part for us have funding current early although are XXXX.

cash to that provide outlook. runway want just I So

got Okay. sort of for don't you formal of obviously, guidance of can you've that Maybe give any 'XX. to contracts. sort walk want -- Understanding you Jeff, through kind

for get you the analysts you the reasonable the ASPs You of that run to mean, sort won't a that as from rate? certainly Is but 'XX. again, contracts qubit feels likely is I higher 'XX December won't trending especially I and announced sales flat it up. between you've I kind QPU revenue sales of to QPU, and to think QPU try I grow should to over you year to revenue like also -- to the think XX see of sort you, go get pinpoint through have

to NQCC goal get have QPU reduce to our nice Sure. it's and we I the mean X can drive [ revenues loss. continue that we and we contract, the Again, now XX just guidance, Q product did do certainly no forward-looking which helped. but obviously, our sell, ] Novera

So help we're regard. extend on will our focused those things, which in cash that runway and definitely

So focused all we're levers. the definitely on

[indiscernible] basic technology main just again, plus already to XX-qubit close NQCC, given But mean, expect growth. that and quantum [indiscernible]. story be we the over improvement to certainly here the the I we and sale fidelity sales getting contracts have, to continues

So of how sales technology. succeeding to metric be want with we the I don't the are

one just Subodh. it. last Maybe quick Got one,

to to [ the well the and give at have But way that fidelity? sort XX% year? XX%. fidelities you announced Ankaa-X feel their fidelity that as And percent you already ], confidence end is have perhaps to XX-plus X most or you XX% do knowing is qubit of points ability obviously, that for the sort get that gate important you the won continue in the Ankaa-X run are qubit of the by on to your goal, you wafers like of Just proof do the

before and That's question. have I together systems. actually, XX have mean And qubit we you put for do data a on data. a X XX-qubit lot of we always good qubit out it

which much at the that with feel be confident qubit higher hitting indications qubit our are Ankaa-X we level, XX% than X So the will certainly means X XX initial goal of we that at and qubit all level. very

getting initial is before about this to the year. overall good qubit XX promising level the for So very end we XX% of Ankaa-X, data the at and feel pretty

line comes Instructions] . Brian Kinstlinger [Operator Alliance next the question Global from Our Partners. with of

process? you Who could is the long competition And first My specifically piece award on of the evaluation was How for the the what system. qubit the procurement? NQCC was QPU the why the XX Rigetti? discuss is feedback for

Thanks, Brian. Good questions.

facility on wanted They was quantum the in computer government. U.K. build they set basically, quantum which So the NQCC infrastructure. a competition by, their foundational U.K.'s

piece they that's procuring. key So that very a of equipment were

cutting didn't are sure we was divulge most of they they build a That's U.K.'s part chose X-month but roughly that companies of of feel we that the really of They to that us set technology period. evaluated, the all the quantum The were that computing quantum choice competition. are edge for competitors as competition pretty at technology the and why good infrastructure.

it demonstrates of and computing [ conducting Rigetti computing technology faith ] choice. leading superconducting as clearly, quantum quantum technology So technology their in the municipal

So very our making important beliefs really that computers We validated right third-party and an fact feel the quantum about the best good confirmed are now. that competition. we external

types it technology technology? you of did for gating your And the the compete different you Or was with for all QPU you? only against, think,

looking at were They purpose for the more that, gate-based but probably that computing computing, general they on they looked didn't approaches. clarify based fact

look As they like annealing, can when few you you things number like a restricted they're of know, optimization applications pursue other very that. like the at probably applications and to

you as market, broader a go computing soon gate-based purpose for you general As have with really, say the approach. to

were looking gate-based at So approaches. computing the tells that looking fact general you were for they that primarily they

see And whether a if interest? to more. NQCC the you can it's labs guess put or of that then leadership so curious that, just this Great. X has or I'm other additional other increased position this kind XX sales, seeing award QPU procurements I are qubit, in lead even you does national

factor, labs premier and U.S. are pretty deems of the in sure, I'm that few us, Fermilab, NQCC, chances U.K. government labs us the national Certainly, beds DOE, because carefully U.K. that a NQCC's I choosing was best quantum that certainly much facilities mean, government the sure if we lab are making at government are facility, And DOD the test us are both looking in the decision U.S. XXXX, that will I'm fact middle the us. computing of at computers. quantum have computing DOE's best now we chosen and next chose look the who similar more -- computer, the making and quantum quantum now

kind is labs And are are calls industry? national there procurements other now? out right to of all early base running it incoming that any fill Or the

countries several where the they quantum on. are There going world have initiatives around

you governments. There computing. gotten If and India, are mean, going you up Italy, Japan the to builds other and certainly governments sometimes in even can around few various to their see respective clearly Australia, Denmark in go a world, have countries. on initiatives I quantum sponsored countries specific, themselves European Germany, in to get speed

So we really these position extending and that to U.S. are are countries now with getting our quantum U.K. that and right that leveraging into computing. different about optimistic and

on I system the have. same achieving And I to fidelity have the XX.X. XX% for in XXXX? question Last the What's Right. obstacle for biggest XX qubit on larger guess system you the XXXX question the

[ cooperate most discipline we what our basic on is the to ] us semiconductor or mean, I of industry improve in the rate use Certainly, analysis.

at of just contributor are and Pareto the We'll from diagnosis we and and where about every look go then we then that's we then at next -- and log the on. errors the do called errors then them. a then we'll day. thorough analysis them, them once so chase And resolve tier of we So coming and look biggest errors

things we in is So the chip. which call the to device last [indiscernible] first, proper XX% you conjunction itself, the XX% -- what all from year, to in did get XX% -- a

to to systems in primarily systems. that is We systems. This the of also more go the on our did XX%, of call the from use well we also refrigeration are refrigeration electronics like what we [ changes that some the the XX% we the as the as ], PCBs year, losses the qubit Hamiltonian from getting itself, into look refrigeration and focus proper design

and scientific pretty [indiscernible] after that year So getting good XX% We errors way of this to feel them. going using methodology. addressing about

TD Our comes Sankar Cowen. with . question Krish next the of line from

] Subodh, Steven [ behalf maybe one This you. of is for calling first Krish. on

the and -- timing of approximate that and goes might of into later subcomponents installation Or and running procurement potentially that know a the curious and when NQCC Just But late is it year? just going the deployment deployment you time. Can your facility that the system. be whether year of to up number system this the QPU that of of it's about when that, of in you will win back timing. around mentioned it or the next be? start sort Is their terms I year? kind this talk into

be And still building potentially that also, buildouts future in installing referenced in good of of template is line out time for countries? just countries kind other other other a more the might terms it, that by or Is broadly, early. NQCC's you and initiatives installments

Krish. Thanks, Yes.

So have certainly, the is QPU. to more the provided facility rather by gated us than the ability they that NQCC time our line supply

We are chip have the core started have already ordering several already basically. subcomponents, and ready and we the products

So are done right to facility is comes once that on make the with the we it side sure facility now them up.

delivered now target to period of all through month debugging year, said August the is when Having maybe right so that, then and or sometime a June middle month few take another a weeks, the also. installed us it in probably of and facility. properly get time It is this will

and running. before well this -- That's time year, line. system be the before So of the end should up overall

work. good is for NQCC point, and you qubit the but As is countries. other doing real really do we horsepower other This applications. computations gives qubits XX-odd replicable will, is where want lines they XX-plus it's other are to enough qubit if X countries basic starting research start. same some a is a looking to discussed model, in along model with national that you labs

are are that systems. So right we about talking talking to many labs XX-plus now national

the Obviously, will XX-plus ones. aggressive too. Those about price are systems, are that couple the a cubit more higher. be are There points

So different XX-plus labs hope using year will system XX-plus one some year, that may the least or maybe of systems then we national more, is get hopefully, next countries a early besides qubit starts some our more at that with cubit NQCC, next early work get this installed couple and middle year.

But focus on is again, all the mostly fidelity. really,

will improves, to happen. these opportunities As all fidelity continue

far, are also, it. published that seems exciting marketing that there curious, kind very like more QPU, From the be of could million, you helpful. see to and versions? $X program bespoke talk for and the but rough formalized you would it. Novera be for able under only of that. just is standard Got so like the configurations to more selling details of of it That's the very is sort And some bespoke Or pricing that ASP the Got just with designs? terms and associated for that is opportunities what -- revenue in you've about

in that Or lastly, still time the or terms longer sort fulfilled And of there orders backlog a or with intra-quarter get of is product Novera? a backlog, pretty time lead type it lead quickly? is associated

Regarding for essentially ]. mean, fairly our Novera, is mean the I [ I product product simple. is XXX,XXX

basic see will your plug into a play and become essentially can additional We refrigeration QPU modules a that systems.

DR. Our baseline of computing in they in familiar the can take with it a so their Novera assumption are plug facility, has quantum and is already just on [indiscernible]. concept QPU whole that the DR into customer That's general, their

have We X keep and now. the store or parts of we all X in ready literally

for day within straightforward who's dilution get tomorrow, fairly comes it's quantum familiar and up practically. order and it a an can and if a to refrigerations. customer running with ship computing So we And integrated

California. the the a generally companies order. sale, X system. in Instruments are goes QPU refrigeration DR. that couple Ship intra a There's the smaller different Each from of a that into dilution So fairly right slightly of standardized the Force, has into companies get Blue other one Oxford company; Form will, from product then a world getting business. now, Factor straightforward U.K.; available if the consideration And Finnish you their are it's

will the model be the straightforward side. not or it as suitable have can our but may to plug into quickly, customer that some on a keep standard the plug and has, play, to adjustment that product may which on it DR. But So try idea they need depending to ship customization, that in do do is do we existing DRs customer your -- But simple a an may which exact some what to are plan the to shipment. is adjustments off-the-shelf may and there some case, we have

for a be when might just and on And next side, Okay. just share for quantify full that quarter? Jeff. Great. the last quarter count could equity for dilution this wondering what raise, help Jeff, what recent bit the count if from a share the one you might the be

share Sure. of XXXX. the full QX I Yes. I really the We for in XXXX in quarter the million shares second sell first will count impact that in mean kick the from activity did that mentioned quarter. XX.X of

QX. perspective, So get will north time from shares XXX the a of share by here million to count the we of we be end

[Operator from comes Benchmark The next the Williams Instructions] question . with Company. Our line of David

hope me okay. I can hear you

we you. hear David. can Yes,

Great.

map, [indiscernible] you significant just how relative as the are sustainable. and Kind next that set do pretty peers? company. Rigetti? you your forward. what for path about think as be think you something [indiscernible] feel [indiscernible] of the do your bringing I the Some progress big out, steps wondering, road the aspects to you of that And firm look from And

Yes.

cutting was what it line understood. I I'll question, gist the out, but of I Your the so answer I think from got

regarding road of computing. top and as I points, in the Fidelity mentioned, critical So us our all quantum for is map point critical

gate accounts. X higher XX qubit Obviously, for median is at XX% much fidelity at are the level. the qubit qubit number We smaller

several are to important goal camp XX ] XX But like is at gets speeds speed. in lot particularly up of and range. attention. qubit. We gate our XX% the at. the are is trapped gate start us of lot what fidelity count, year next in in a atoms, ion look [ When superconducting they speeds to are modalities, the get gate Most this to that and looking we count qubit hopefully, about that other slower XX speed to now. space year Generally, or and the at the things point, metric dialing to the than XXX qubit talk mid-XXs other Our X qubit at right in we'll pure of are nanosecond which range magnitude a dealing gate orders XXX XXX with supercomputing nanosecond in we

always with is superconducting we challenge are challenge scalability dealing The of pure it's really to better for we quantum speed. mean the said, have the gate challenges like irons computing those scalability for fidelity. I for in speed. as is fidelity So challenge. our to The or Pure benefits of X intrinsically because speed Ion scalability other have Trapped gate pure atoms. are the them hard big modalities technologies But overcome they is the magnitude addition and gate Atoms, and orders kinds for and

in and space the at between way you that's computing firm we about look continue tackling why Google think companies And to is within problems. We quantum superconducting superconducting quantum few real-life collectively that overall, believers the to a like us So other space, computing. be others. IBM, the right in go and

are making all rapid really We of us. progress,

start X I'm percent And becoming at applications type fidelity the more speed. or of be sub-XXX So when that's advantage XX.X% nanosecond at camp X within quantum than X to sure meaningful. next X,XXX-plus qubit with the us superconducting real-life will better really in gate years,

over that and us in of choosing the government evidenced by camp feel We in U.K. of pretty leadership So I U.S. position government camp others. the the that's are good think as is that where going. the we superconducting

general So pretty our heard this correctly. that and about computing question your answers is position. good quantum within it Hopefully, I in if that, superconducting

like I'm for Subodh the Mr. back currently conference questions to remarks. no showing hand closing further over this Kulkarni I'd to at time.

questions forward and look you the updating Thank Thanks year all to We again. for progresses. as your you interest.

Thank today's call. concludes participation. This conference you your for

a may disconnect. now You day. wonderful Everyone, have