D-Wave’s revenue dips, but bookings, deal size jump
D-Wave reported first quarter revenue of $1.6 million, about $130,000 lower than the same quarter last year and well off the $2.4 million in revenue it collected for the fourth quarter of 2022. However, the company also touted $2.9 million in bookings during the quarter and said that its average deal size for bookings continues to grow.
Regarding the revenue decrease for Q1 2023, the company stated, “Given the nature of our professional services engagements, the timing of the booked revenue may vary from period to period resulting in some degree of variability in the timing of the corresponding revenue recognition.”
The firm’s earnings release went on to state that the increase in bookings during the quarter represented a 297% from fiscal 2022 first quarter bookings of $733,000, and marked D-Wave’s fifth consecutive quarter of sequential quarter-to-quarter growth in bookings and the fourth consecutive quarter of year-over-year growth in bookings.
The growth in average deal size was even bigger percentage-wise, as this metric (comprised of both QCaaS and Professional Services bookings) soared 430% compared to the same quarter last year. On a sequential quarter-to-quarter basis, the average size deal increased in each of the last five quarters and increased by 68% from the fourth quarter of fiscal 2022 to the first quarter of fiscal 2023.
Despite the revenue decrease, D-Wave reiterated its full-year guidance, stating that revenue is expected to be in a range of $12 million to $13 million for the year, representing growth of 67% to 80% over the fiscal 2022 revenue. Revenue also is expected to increase sequentially in the second quarter from the first quarter, the company said.
We will have more details from D-Wave’s fiscal first quarter 2023 earnings call in a follow-up story.
Dan O’Shea has covered telecommunications and related topics including semiconductors, sensors, retail systems, digital payments and quantum computing/technology for over 25 years.