IONQ Q1 2024 Earnings Release, Gradually Growing Companies

IONQ Q1 2024 Earnings Release, Gradually Growing Companies

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IONQ is developing faster and faster in the quantum computer sector. Of course, the stock price has risen relatively much, so it’s going sideways, but if it goes up to a surplus, the stock price will also pay great rewards, right?
Sales in the first quarter were $7.6M, up 25% from the fourth quarter and achieving the largest sales in the quarter. The maximum sales guidance was $7.5M, but it exceeded that. The sales margin increased to 55%, but the operating deficit was similar to that of the fourth quarter and the EBITDA margin fell even more. When you look at the cost, it decreased slightly from the fourth quarter, and general administrative expenses were greatly reduced. Based on InvestingCOM, both sales and EPS exceeded market forecasts, and the stock price rose by 3% outside the market after the earnings announcement. Looking at the financial position, debt was reduced more than capital, and the debt-to-equity ratio decreased slightly to 13%. Liquidity increased to 118! As the current assets increased and current liabilities decreased. Cash flow reduced operating cash outflows from the fourth quarter. Investment cash flow is an inflow, and 115M came in due to the maturity and sale of securities. So it seems that cash and current assets increased even though it was in the red. The stock price was listed in December 20 and exceeded $30 at the end of 21st, but the stock price plummeted when the recession hit. However, in May 23, the first quarter earnings exceeded expectations and began to surge again, but the stock price sank again on the shocking news that CTO Kim Jung-sang was stepping down when the fourth quarter earnings announcement was made. On top of that, the stock price is hardly recovering due to the high bond interest rate. Currently, the Seattle manufacturing facility is running at full capacity, and Forte Enterprise, which sold to Quantem Bassel, is also building a system. We plan to produce and sell an additional four units. With the approval of the U.S. federal budget, it has increased its reservation guidance for this year from $70 to $90 to $75 to $95 million, claiming that it will have a $50M sales opportunity. They say they need to sign a contract for more details, but they expect sales to occur in software rather than hardware. Perhaps due to this good trend, second-quarter sales are expected to increase by 21% from the first quarter to $7.6-9.2M.

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And the data center in Basel, Switzerland, is said to be nearly complete, serving customers in Europe, the Middle East and Africa. In April, the company agreed to work with Oak Ridge National Laboratory to explore ways to optimize the U.S. power grid using quantum computing technology, and through an agreement with South Carolina Quantum, it will provide quantum computing services to institutions in South Carolina.

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In sum, as the US federal budget passed, there was an opportunity for additional sales from the government, and the stock price seemed to have risen as the first quarter also exceeded expectations. I think the stock price has not risen as much as I thought, but I think it is because the stock price has already risen a lot since $7.09 on 4/19. I thought if the second quarter also goes near or passes the maximum sales target of $9.2M, there would be a bigger rise in the stock price. I’m looking forward to it.