College Park, MD — May 16, 2022

IonQ Announces First Quarter 2022 Financial Results

Revenue of $2.0 million

Total contract bookings of $4.2 million

Announces IonQ Forte, new ytterbium-based system featuring increased two-qubit gate fidelity

IonQ (NYSE: IONQ), a leader in quantum computing, today announced financial results for the quarter ended March 31, 2022.

“We continued to execute well in the first quarter, delivering financial results and operational achievements that exceeded our expectations, as well as breaking new barriers with the completion of our next generation of quantum computers, IonQ Forte,” said Peter Chapman, President and CEO of IonQ. “The first quarter was also characterized by cutting edge applications research, expanding public access to IonQ Aria, and the growth of our sales organization. We are honored to have been included in the Time 100 Most Influential Companies list, which includes some of the most outstanding and innovative names of our era.”

First Quarter 2022 Financial Highlights

  • IonQ recognized revenue of $2.0 million for the first quarter.

  • IonQ achieved bookings of $4.2 million for the first quarter.

  • Cash, cash equivalents and investments were $586.4 million as of March 31, 2022.

  • Net loss was $4.2 million and adjusted EBITDA loss was $10.3 million.* These GAAP results include a non-cash gain of $13.4 million related to the fair value of IonQ’s warrant liabilities.

* Adjusted EBITDA is a non-GAAP financial measure defined under “Non-GAAP Financial Measures,” and is reconciled to net loss, its closest comparable GAAP measure, at the end of this release.

Commercial Highlights

  • IonQ discussed early applications research results that demonstrate effective training of quantum image classification models which act on sparse input features. The quantum models rival corresponding classical machine learning models, while only utilizing a small fraction of the number of training parameters seen in non-quantum computer models. Using IonQ Aria, the new applications research is designed to apply quantum machine learning to image classification and 3D object detection for future mobilities.

  • IonQ announced that IonQ Aria will soon be accessible on Microsoft Azure’s Quantum Cloud, bringing the world’s most powerful quantum computer out of private beta and giving full access to the public. This will enable developers everywhere to learn about and begin leveraging quantum and demonstrates IonQ’s dedication to spearheading access in the industry.

  • IonQ announced a major research project to develop quantum algorithms that may improve the charging, discharging, durability, capacity and safety of electric vehicle batteries.

  • IonQ is collaborating with Oak Ridge National Laboratory to research metal hydrides, which can benefit development of technologies including batteries and hydrogen storage for hydrogen powered vehicles.

  • IonQ was part of a group of private companies and universities that received a research and development award from DARPA to fund a quantum algorithms benchmarking project. While contracting is still being finalized, we are the only quantum hardware maker selected for this multi-year award.

Technical Highlights

  • IonQ announced that the team has completed construction on IonQ Forte, the next generation in IonQ’s series of quantum computers. Forte is a ytterbium system that uses IonQ’s in-house ion trap chip. The system incorporates a new beam-steering technology for the lasers that control its qubits and is designed to allow IonQ to work with larger numbers of qubits and deliver stable beams which IonQ believes can more precisely address and encode those qubits. Forte is expected to launch with select developer, partner and research access in the second half of this year and broader customer access in 2023.

  • In February, IonQ announced that the latest-generation IonQ Aria system achieved a record 20 algorithmic qubits, representing a significant leap forward for IonQ.

  • IonQ’s new barium qubits are already delivering on their promise of more accurate quantum computing with recent results from IonQ’s first barium system showing a 13-fold reduction in state preparation and measurement errors.

  • Through a partnership with the U.S. Department of Energy’s Pacific Northwest National Laboratory (PNNL), the Company has secured a sustainable, perpetual source of barium qubits.

  • Earlier this year, IonQ announced the invention of a new family of quantum gates in collaboration with the Duke Quantum Center (DQC) at Duke University. IonQ believes these new gates will eventually lead to more efficient quantum algorithms requiring many fewer qubits. Importantly, the gates can only be run using the unique architecture employed by IonQ and DQC systems.

  • IonQ recently announced that it now offers native gate access, allowing developers to optimize their quantum algorithms down to the individual qubit and giving them increased access to the power at the core of our systems.

Company Highlights

2022 Financial Outlook

  • For the second quarter of 2022, IonQ is expecting:

    • Revenue of between $2.3 and $2.5 million

    • Bookings of between $3.0 and $5.0 million

  • For the full year 2022, IonQ has reiterated the previously stated revenue outlook range of $10.2 million to $10.7 million.

  • For the full year 2022, IonQ has increased its total contract bookings expectations from a range of $20.0 to $24.0 million to a new range of $23.0 to $27.0 million.

  • IonQ continues to believe that over the next two years, one or two system sales could push combined TCV contract bookings over nine figures for the three-year period from 2021 to 2023.

First Quarter 2022 Conference Call

IonQ will host a conference call today at 4:30 p.m. Eastern time to review the Company’s financial results for the quarter ended March 31, 2022. The call will be accessible by telephone at 877-407-4018 (domestic) or 201-689-8471 (international) using passcode 13729163. The call will also be available live via webcast on the Company’s website here, or directly here. A telephone replay of the conference call will be available at 844-512-2921 or 412-317-6671 with access code 13729163 and will be available until 11:59 PM Eastern time, May 30, 2022. An archive of