D-Wave Quantum Inc. (QBTS -9.28%) shares fell 9.3% on Thursday. The S&P 500 slid 0.2%, and the Nasdaq Composite finished flat.
The quantum computing company missed Wall Street's estimates on revenue and earnings in its latest quarterly report.
NASDAQ: QBTS
Key Data Points
D-Wave misses estimates as costs nearly double
The company reported Q2 results before the market opened on Thursday. Revenue came in at $3.1 million, essentially unchanged from a year ago and short of the $4.1 million analysts were looking for. D-Wave's net loss also missed estimates, coming in $0.13 per share, compared to the $0.09 was expected.
Operating expenses climbed 93% from a year ago to $55 million, and the adjusted loss before interest, taxes, depreciation, and amortization (EBITDA) -- a rough measure of what the core business burns -- widened 85% to $37.1 million.
Image source: Getty Images.
Why the cash cushion isn't enough to win me over
D-Wave finished June with $546.2 million in cash reserve, which at the current burn rate buys it years of runway. That's a good thing when you're dealing in Quantum, a technology that could take many years to pay off.
Despite the cushion, I'm not a fan. I think investors have gotten far ahead of themselves, and D-Wave's nearly 500 price-to-sales ratio just does not pencil out.
