What happened

Shares of D-Wave Quantum (QBTS -4.00%) are losing ground in Friday's trading following the release of preliminary second-quarter data. The quantum-computing specialist's stock was down 7.3% at noon ET, according to data from S&P Global Market Intelligence.

D-Wave Quantum published preliminary Q2 data before the market opened today. While the company expects substantial bookings growth, the early second-quarter results and forward guidance appear to have disappointed the market. 

So what

D-Wave reported total bookings of $2.5 million in the second quarter, representing 146% growth year over year (YOY). Revenue is projected to come in between $1.65 million and $1.8 million. While these figures suggest strong YOY momentum, there are also signs of significant growth deceleration in the data.

Second-quarter bookings were up big compared to the prior-year period, but they were actually down from the $2.9 million in bookings that the company recorded in the first quarter. Additionally, the company noted that its average deal size had increased 136% YOY in Q2, but this was down from a 430% increase for average deal size in Q1. Making matters worse, management issued a downward revision for its annual sales target.

Now what

For the full-year period, D-Wave is guiding for revenue to come in between $11 million and $13 million. Hitting the midpoint of that target would see the company growing sales roughly 67% over the $7.2 million in revenue it recorded last year. Management also said it expects to post an earnings before interest, taxes, depreciation, and amortization (EBITDA) loss below $58 million. 

While the company still expects significant sales growth, its previous guidance range called for sales between $12 million and $13 million. The upside is that D-Wave had also previously targeted an EBITDA loss of less than $62 million, and its new guidance suggests a significantly lower loss on that front. 

Even with today's pullback, D-Wave Quantum's stock has risen roughly 76% year to date and trades at roughly 27 times the midpoint of management's current sales target. While the company has been posting some strong sales momentum, that's the kind of growth-dependent valuation that opens the door to turbulent trading if results fail to meet investors' expectations.