After tripling the Company’s original 2021 contract bookings forecast in September from $5 million to $15 million, IonQ beat that number again to end up at $16.7 million for the full year.

IonQ achieved revenue of $2.1 million for the full year, which was 31% above the $1.6 million IonQ forecasted on the Company’s Q3 call.

Cash, cash equivalents and investments were $603 million as of December 31, 2021.

Net loss was $106.2 million and adjusted EBITDA loss was $28.3 million for 2021.*

Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.

IonQ expects revenue for 2022 to be ~5x IonQ’s 2021 topline. For the full year 2022, IonQ expects revenue to be between $10.2 million and $10.7 million, with between $1.8 million and $2.0 million for the first quarter.

IonQ anticipates full year 2022 bookings of between $20 million and $24 million, with between $3 million and $4 million for the first quarter.

IonQ believes that over the next two years, one or two system sales could push combined TCV contract bookings over nine figures for the three year period from 2021 to 2023.

IonQ anticipates an adjusted EBITDA loss of $55 million for the full year 2022 at the midpoint of the revenue outlook provided above.**

The Company cannot provide a reconciliation between its forecasted Adjusted EBITDA and net loss without unreasonable effort due to the unavailability of estimates for stock-based compensation and change in fair value of assumed warrant liabilities as these items are not within the Company’s control, may vary greatly between periods and could significantly impact future financial results.

In January, the Company announced a major commercial deal with Hyundai Motor Company to develop quantum algorithms that may improve the charging, discharging, durability, capacity, and safety of electric vehicle batteries.

IonQ is collaborating with Oak Ridge National Laboratory to research metal hydrides, which can benefit development of technologies including batteries and hydrogen storage for hydrogen powered vehicles.

In 2021, IonQ collaborated with leading organizations such as Accenture, Goldman Sachs, and GE Research.

In 2021, IonQ partnered with The University of Maryland to create the National Quantum Lab at Maryland (Q-Lab), the nation’s first user facility to enable hands-on access to a commercial-grade quantum computer.

In February, IonQ announced that the latest-generation IonQ Aria system achieved a record 20 algorithmic qubits, representing a massive leap forward not just for IonQ, but for the entire quantum computing industry.

In March, Microsoft announced official plans to bring IonQ Aria to the Azure Quantum Cloud, democratizing access to the world’s most powerful quantum computer. IonQ became the only company to make its quantum computers available via all three major cloud providers (Google Cloud, Microsoft Azure, AWS) in 2021.

In December, IonQ announced plans to build quantum computers with barium qubits, which the Company expects will contribute to higher gate fidelity, faster gates, lower error rates, and lower system costs.

IonQ’s new barium qubits are already delivering on their promise of more accurate quantum computing with recent results showing a 13-fold reduction in state preparation and measurement errors.

The Company has secured a sustainable, perpetual source of barium qubits through a partnership with the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL).

Earlier this year, IonQ announced the invention of a new family of quantum gates in collaboration with the Duke Quantum Center (DQC) at Duke University. IonQ believes these new gates will eventually lead to more efficient quantum algorithms requiring many fewer qubits. Importantly, the gates can only be run using the unique architecture employed by IonQ and DQC systems.

Last year, IonQ became the first team in the world to demonstrate fault-tolerant error correction in practice, as documented in a peer-reviewed Nature paper in collaboration with Duke University, the University of Maryland and the Georgia Institute of Technology.

IonQ hired world-class talent, with key positions filled by Thomas Kramer as Chief Financial Officer (Opower, Cvent), Tom Jones as Chief People Officer (Blue Origin, Microsoft, Honeywell), Laurie Babinski as General Counsel and Secretary (Intuit’s Credit Karma), Ariel Braunstein as Senior Vice President of Product Management (Google, Lytro, Cisco), Dean Kassmann as Vice President of Research and Development (Blue Origin, Amazon), Jordan Shapiro as Vice President of Financial Planning & Analysis (NEA, Samsung), Kevin Caimi as Controller (Opower, Ernst & Young), Anant Sanchetee as Senior Director of Marketing (Meta, Dream), and Mark Solomon as Director of Quantum Sales (IBM).

IonQ appointed Inder Singh, CFO of Arm, as an independent member of the Company’s Board of Directors.

Revenue

Costs and expenses:

Cost of revenue (excluding depreciation and amortization)

Research and development

Sales and marketing

General and administrative

Depreciation and amortization

Total operating costs and expenses

Loss from operations

Change in fair value of warrant liabilities

Offering costs associated with warrants

Other income (expense), net

Loss before benefit for income taxes

Benefit for income taxes

Net loss

Net loss per share attributable to common stockholders

Basic and diluted

Weighted average shares used in computing net loss per share attributable to common stockholders

Basic and diluted

Assets

Current assets:

Cash and cash equivalents

Short-term investments

Accounts receivable

Prepaid expenses and other current assets

Total current assets

Long-term investments

Property and equipment, net

Operating lease right-of-use assets

Intangible assets, net

Other noncurrent assets

Total Assets

Liabilities and Stockholders’ Equity

Current liabilities:

Accounts payable

Accrued expenses

Current portion of operating lease liabilities

Unearned revenue

Current portion of stock option early exercise liabilities

Total current liabilities

Operating lease liabilities, net of current portion

Unearned revenue, net of current portion

Stock option early exercise liabilities, net of current portion

Warrant liabilities

Total liabilities

Stockholders’ Equity:

Common stock

Additional paid-in capital

Accumulated deficit

Accumulated other comprehensive loss

Total stockholders’ equity

Total Liabilities and Stockholders’ Equity

Cash flows from operating activities:

Net loss

Adjustments to reconcile net loss to net cash used in operating activities:

Depreciation and amortization

Non-cash research and development arrangements

Amortization of customer warrant

Offering costs associated with warrants

Stock-based compensation expense

Change in fair value of warrant liabilities

Other, net

Changes in operating assets and liabilities:

Accounts receivable

Prepaid expenses and other current assets

Other noncurrent assets

Accounts payable

Accrued expenses

Operating lease liabilities

Unearned revenue

Net cash used in operating activities

Cash flows from investing activities:

Purchases of property and equipment

Capitalized software development costs

Purchases of available-for-sale securities

Intangible asset acquisition costs

Net cash used in investing activities

Cash flows from financing activities:

Proceeds from stock options exercised

Repurchase of early exercised stock options

Proceeds from public warrants exercised

Proceeds from merger and PIPE transaction, net of transaction costs

Net cash provided by financing activities

Net change in cash and cash equivalents

Cash and cash equivalents at the beginning of the period

Cash and cash equivalents at the end of the period

Net loss

Interest expense

Benefit for income taxes

Depreciation and amortization expense

Stock-based compensation

Change in fair value of assumed warrant liabilities

Offering cost associated with warrants

Adjusted EBITDA