- Rigetti Computing’s (RGTI) shares rose 4.60% to $8.56 on Thursday, March 06, despite a Q4 net loss of $153.0 million, including $135.1 million in non-cash charges, and full-year 2024 revenue of $10.8 million against a $201.0 million net loss.
- The company’s cash reserves stood at $217.2 million as of December 31, 2024, supporting its goal to develop a 36-qubit processor by mid-2025 and a 100+ qubit tiled system by year-end, amid operating losses of $18.5 million in Q4 and $68.5 million for the year.
- Despite a sequential revenue drop to $2.3 million in Q4, Rigetti sold Novera chips to Montana State University and the U.K. government, reflecting early market traction for the quantum pure play, which continues to burn cash typical of its sector.
Rigetti Computing Inc. (RGTI), a quantum computing pioneer, saw its shares rise 4.60% to $8.56 in midday trading on Thursday, March 06, despite a Q4 earnings report that laid bare the financial challenges inherent in this nascent industry. The company reported revenues of $2.3 million for the three months ended December 31, 2024, dwarfed by operating expenses of $19.5 million, resulting in an operating loss of $18.5 million and a significant net loss of $153.0 million, which included $135.1 million in non-cash charges tied to fair value adjustments of earn-out and derivative warrant liabilities. For the full year, Rigetti’s revenues reached $10.8 million against operating expenses of $74.2 million, yielding an operating loss of $68.5 million and a net loss of $201.0 million, with $133.9 million of that attributed to similar non-cash charges, yet its cash reserves remained robust at $217.2 million in cash, cash equivalents, and available-for-sale securities.
The financial picture, while daunting, aligns with the realities of quantum pure plays like Rigetti and its peer IonQ Inc. (IONQ), which went public in 2021 and 2022, respectively, as they prioritize long-term technological breakthroughs over immediate profitability. These companies are in the early stages of development, burning through significant capital to advance quantum computing capabilities, a field that promises revolutionary computational power but remains years from widespread commercial viability. Rigetti’s cash position of $217.2 million provides a critical buffer, offering the financial runway needed to sustain its ambitious roadmap, which includes achieving a 36-qubit processor by mid-2025 through the integration of four 9-qubit QPUs and scaling to a tiled system exceeding 100 qubits by year-end.
Bright spots in the report include two Novera chip sales in Q4 – one to Montana State University and another to the U.K. government – demonstrating incremental progress in market penetration despite a sequential revenue decline. These transactions underscore Rigetti’s focus on establishing itself as a credible player in the quantum ecosystem, catering to academic and governmental entities keen to explore quantum applications. The company’s trajectory reflects the broader quantum computing narrative: high risk, high potential, and a reliance on investor patience as it navigates substantial losses to deliver on its technological promises. With shares currently up nearly 5%, the market appears to be balancing Rigetti’s steep net losses against its strategic advancements and substantial liquidity, signaling cautious optimism for its role in shaping the future of computing.
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