D-Wave completes $150 million stock sale, eyes profitability

Published 23/01/2025, 13:06
D-Wave completes $150 million stock sale, eyes profitability

PALO ALTO, Calif. - D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), a pioneer in quantum computing, has announced the successful sale of $150 million in common stock, finalizing its "at-the-market" equity offering program. The sales, which took place between January 15th and January 21st, were executed at an average share price of $6.10, slightly above the volume-weighted average price during the sale period. With this move, the company's cash reserves have risen to approximately $320 million. According to InvestingPro data, QBTS has demonstrated significant market momentum, with a 7.57% return in the past week, though the stock is known for its high price volatility.

The capital raised is earmarked for working capital and capital expenditure to support D-Wave's ongoing technical development and business operations. According to CEO Dr. Alan Baratz, this infusion of funds positions the company to execute its operating plan aimed at achieving sustained profitability and positive cash flow. With a current ratio of 1.36 and revenue growth of 14.27% in the last twelve months, the company maintains moderate financial flexibility despite an EBITDA of -$72.51 million.

D-Wave has established itself as a leader in the quantum computing industry, being the first to market commercially available quantum computers. The company's technology portfolio includes both annealing quantum computers and gate-model quantum computers, catering to a variety of applications ranging from logistics and artificial intelligence to materials science and financial modeling. D-Wave's client list boasts prominent organizations like Mastercard (NYSE:MA), Lockheed Martin (NYSE:LMT), and Siemens (ETR:SIEGn) Healthineers.

The recent financial move by D-Wave underscores its confidence in the commercial viability of quantum computing. The company stresses its commitment to driving value for customers and shareholders alike, citing deployed customer applications and ongoing advancements in quantum artificial intelligence as evidence of its momentum.

Despite the optimism expressed, the company acknowledges the forward-looking nature of its statements, which are subject to risks and uncertainties that could cause actual results to differ. Analyst price targets for QBTS range from $2.25 to $9.00, reflecting mixed market sentiment. For deeper insights into D-Wave's valuation and growth prospects, investors can access comprehensive analysis through InvestingPro, which offers exclusive financial metrics and detailed Pro Research Reports for over 1,400 US stocks. Investors are cautioned not to place undue reliance on these forward-looking statements, which reflect the company's position as of the date of the press release.

This news report is based on a press release statement from D-Wave Quantum Inc.

In other recent news, D-Wave Quantum Inc. has announced the Leap Quantum LaunchPad program, designed to hasten the adoption of quantum computing applications in business and scientific research. D-Wave Quantum has also reported a significant increase in bookings for fiscal year 2024, surpassing $23 million, a 120% rise from the previous year. The company has raised approximately $150 million in cash since the end of the third quarter and has filed for an additional $150 million at-the-market offering. The firm has seen board-related changes with the resignation of Ziv Ehrenfeld and the appointment of tech industry veteran Sharon Holt. Analyst firms Benchmark and Craig-Hallum have maintained a Buy rating on D-Wave Quantum, with both firms raising their stock targets. These are recent developments in D-Wave Quantum's ongoing efforts to establish a strong presence in the quantum computing market.

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