D-Wave Quantum stock is facing a decline in today’s trading session following the release of its preliminary second-quarter data. The quantum-computing specialist reported disappointing results and a downward revision of its annual sales target, leading to a drop in the stock price.
According to the data from S&P Global Market Intelligence, D-Wave Quantum shares were down 7.3% at noon ET. The company published its preliminary Q2 data before the market opened, revealing a substantial growth in bookings but also signs of growth deceleration.
In the second quarter, D-Wave reported total bookings of $2.5 million, marking a significant 146% year-over-year growth. However, compared to the previous quarter’s bookings of $2.9 million, there was a decline. Additionally, the average deal size in Q2 increased by 136% year over year, but this represented a significant decrease from the 430% increase in Q1. Furthermore, the company revised its annual sales target downwards.
D-Wave now expects its revenue for the full year to be between $11 million and $13 million, with a midpoint growth rate of approximately 67% compared to the previous year’s revenue of $7.2 million. The management also anticipates an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss below $58 million.
While D-Wave Quantum’s stock has seen an impressive 76% increase year to date, it trades at around 27 times the midpoint of the company’s current sales target. This valuation is heavily dependent on growth, which may lead to volatile trading if the results fail to meet investors’ expectations.
Despite today’s pullback, the company remains optimistic about significant sales growth. However, their latest guidance reflects a downward adjustment from their previous sales range and EBITDA loss target. Investors will be closely monitoring D-Wave Quantum’s performance in the coming quarters to assess the company’s ability to maintain its growth momentum.
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