IonQ recognized revenue of $2.0 million for the first quarter.

IonQ achieved bookings of $4.2 million for the first quarter.

Cash, cash equivalents and investments were $586.4 million as of March 31, 2022.

Net loss was $4.2 million and adjusted EBITDA loss was $10.3 million.* These GAAP results include a non-cash gain of $13.4 million related to the fair value of IonQ’s warrant liabilities.

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 discussed early applications research results that demonstrate effective training of quantum image classification models which act on sparse input features. The quantum models rival corresponding classical machine learning models, while only utilizing a small fraction of the number of training parameters seen in non-quantum computer models. Using IonQ Aria, the new applications research is designed to apply quantum machine learning to image classification and 3D object detection for future mobilities.

IonQ announced that IonQ Aria will soon be accessible on Microsoft Azure’s Quantum Cloud, bringing the world’s most powerful quantum computer out of private beta and giving full access to the public. This will enable developers everywhere to learn about and begin leveraging quantum and demonstrates IonQ’s dedication to spearheading access in the industry.

IonQ announced a major research project 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.

IonQ was part of a group of private companies and universities that received a research and development award from DARPA to fund a quantum algorithms benchmarking project. While contracting is still being finalized, we are the only quantum hardware maker selected for this multi-year award.

IonQ announced that the team has completed construction on IonQ Forte, the next generation in IonQ’s series of quantum computers. Forte is a ytterbium system that uses IonQ’s in-house ion trap chip. The system incorporates a new beam-steering technology for the lasers that control its qubits and is designed to allow IonQ to work with larger numbers of qubits and deliver stable beams which IonQ believes can more precisely address and encode those qubits. Forte is expected to launch with select developer, partner and research access in the second half of this year and broader customer access in 2023.

In February, IonQ announced that the latest-generation IonQ Aria system achieved a record 20 algorithmic qubits, representing a significant leap forward for IonQ.

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

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

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.

IonQ recently announced that it now offers native gate access, allowing developers to optimize their quantum algorithms down to the individual qubit and giving them increased access to the power at the core of our systems.

IonQ was named one of TIME’s 100 Most Influential Companies. This ranking highlights 100 companies that are making extraordinary impacts across the globe.

For the second quarter of 2022, IonQ is expecting:

Revenue of between $2.3 and $2.5 million

Bookings of between $3.0 and $5.0 million

For the full year 2022, IonQ has reiterated the previously stated revenue outlook range of $10.2 million to $10.7 million.

For the full year 2022, IonQ has increased its total contract bookings expectations from a range of $20.0 to $24.0 million to a new range of $23.0 to $27.0 million.

IonQ continues to believe 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, Inc.

Condensed Consolidated Statements of Operations

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

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

Stock-based compensation

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

Maturities 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

Proceeds from public warrants exercised

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 income

Interest expense

Benefit for income taxes

Depreciation and amortization expense

Stock-based compensation

Change in fair value of assumed warrant liabilities

Adjusted EBITDA