IonQ, Inc.

Good day and welcome to the IonQ third quarter 2021 earnings call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing star then zero on your telephone keypad. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then 2. Please note this event is being recorded. I would now like to turn the conference over to Mr. Jordan Shapiro, Vice President of Financial Planning and Analysis, Head of Investor Relations. Please go ahead.

Good afternoon, everyone, and welcome to INQ's third quarter 2021 earnings call. My name is Jordan Shapiro, and I am the Vice President of Financial Planning and Analysis and Head of Investor Relations here at INQ. I am pleased to be joined on today's call by Peter Chapman, INQ's President and Chief Executive Officer, and Thomas Kramer, our Chief Financial Officer. By now, everyone should have access to the company's third quarter 2021 earnings press release issued this afternoon. which is available on the Investor Relations section of our website at investors.inq.com. Before we begin, a quick reminder to our listeners. Through the course of this call, management will make forward-looking statements within the meaning of the federal securities laws. These statements are based on management's current expectations and beliefs and involve risks and uncertainties that could cause actual results to differ materially from those described in these forward-looking statements. Actual results and the timing of certain events may differ materially from the results or timing predicted or implied by such forward-looking statements, and reported results should not be considered as an indication of future performance. Please note that these forward-looking statements made during this conference call speak only as of today's date, and the company undertakes no obligation to update them to reflect subsequent events or circumstances other than to the extent required by law. please refer to today's press release and to the company's quarterly report on Form 10-Q for the quarter ended September 30, 2021, which was also filed with the SEC earlier today, as well as other filings with the SEC for a detailed discussion of the risks that could cause actual results to differ materially from those expressed or implied in any forward-looking statements made today. Please note that on today's call, management will refer to adjusted EBITDA, which is a non-GAAP financial measure. While the company believes this non-GAAP financial measure provides useful information for investors, the presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP. Please refer to our earnings press release for reconciliation of adjusted EBITDA to its most comparable measure prepared in accordance with GAAP. Now, I will turn it over to Peter Chapman President and CEO of IonQ. Peter?

Thanks, Jordan, and thank you all for tuning in to our first earnings call as a public company. Before I jump into the results and the event of the quarter, I wanted to give you some background for those who are new to the IonQ story. IonQ makes the world's most powerful quantum computers, and we differ from most of our competitors by using a unique trapped ion approach. We employ some of the world's foremost talent in our space, including our co-founders, Dr. Jung Sang Kim and Dr. Chris Monroe. Both have been trailblazers in the world of quantum computing for decades and sit on the White House's National Quantum Initiative Advisory Committee. They are some of the most cited quantum computing researchers in the industry with complementary skill sets in electronics and experimental physics. In the six years since INQ's founding, we've made significant strides in taking our revolutionary trapped ion technology out of the lab and putting it into the hands of our customers as a commercial-grade, readily available quantum computer. INQ's hardware is being used by companies and partners to push the boundaries in areas like machine learning, financial modeling, logistics optimization, and even quantum video games. At a high level, I am pleased to announce that IMQ is tracking at or ahead of schedule on all critical path items underpinning our business. We manufacture and operate the best quantum computers in the world, and our mission is to make our quantum computers even more accessible and to nurture a global developer ecosystem. In the next few minutes, I'll take you through IonQ's strong progress against its technical milestones we outlined earlier in the year, how we are continuing to broaden and deepen our ecosystem, and how we are accelerating in scaling and commercialization. Let's begin with the impressive progress we have made on scaling our hardware. Quantum computing is a next generation form of computation similar to how a GPU differs from a CPU. There are several approaches to quantum computing. INQ's technology use trapped ions for our qubits, or the quantum bits underlying our systems. We chose trapped ions because we believe they exhibit qualities that are well suited for stability and their ability to scale. It can be hard to evaluate the relative merits of various quantum compute platforms in the market. However, the recent publication of the benchmarking study of all commercially available quantum computers by the QEDC, a third-party industry group confirmed that INQ's computers are best in class along key dimensions, such as their accuracy while running algorithms with high circuit width and circuit depth. INQ's hardware outperformed the field, outpacing entities from IBM, Honeywell, and Regetti. For additional details, we refer you to the original paper and a blog post on our website that walks you through the value of the algorithm-based benchmarks, the specific tests performed, and the conclusions of the paper. Broadly speaking, every quantum computing company is working to increase the number of qubits in their systems and at the same time reduce the prevalence of errors in order to improve the capacity of their platforms. for our Quantum Processing Unit, or QPU, that is designed to allow us to increase the number of qubits in our system while maintaining stability. We believe this creates a path to scale that could allow us to place hundreds of qubits on a single chip, up from the dozens we have on chips today. In early October, researchers from INQ and the University of Maryland published results in a prominent peer-reviewed journal that documented best-in-class error correction technology. This joint study with Duke University, the University of Maryland, and the Georgia Institute of Technology was the first and so far the only one on any quantum computing system to show fault-tolerant error correction working in practice. Solving error correction is critical to creating quantum computers large enough to deal with the complex problems that governments, businesses, and societies face today. In summary, we are confident that our technical progress to date will allow INQ to continue its leadership in the quantum industry. Next, I'm excited to update you on how we are bringing quantum out of the lab and into the real world. Our goal is to enable every developer to use INQ's quantum hardware and create applications that take advantage of the unique strengths of our quantum computers. Year to date, we've accomplished what we believe to be the two most important steps in making INQ's quantum hardware widely accessible, broad cloud partnerships and broad software support. First, INQ is the only provider of quantum computing hardware available on all three major public clouds. We already have two quantum systems available for our customers through every major US cloud provider, including Amazon Web Services, Microsoft Azure, and Google Cloud. We've also completed the construction of our third more powerful system, which we announced at our second quarter business update call on September 22nd this year. This is now available as a private beta for select customers via our dedicated cloud. We are the only provider of quantum computing hardware available on all three major public clouds. And second, we've integrated INQ's hardware with every major quantum software development kit, including platforms like IBM's Qiskit and Google's Cirq. This simplifies access to our hardware for hundreds of thousands of developers already on those platforms. Lastly, I will discuss the great progress we've made on the commercial side of the business and in building the company. We are proud to announce that we've tripled our bookings expectations for fiscal year 2021. This past quarter, we announced partnerships and collaborations with world class companies, including Goldman Sachs, Fidelity Center for Applied Technology, Accenture, and GE Research, as well as with educational institutions like the University of Maryland. We continue to make progress towards new and exciting applications and customer wins. We have also fortified INQ's balance sheet in recent months, having completed our business combination with DMY Technology Group 3 on September 30th, 2021. INQ is now the first publicly traded pure play quantum computing company in the world. We are fortunate to have Hyundai Motor Company and Kia Corporation, Silver Lake, MSD Partners, Breakthrough Energy Ventures, NEA, GV, and Fidelity Management and Research Company as stockholders of INQ. As a result of this transaction, we received net proceeds of $575 million which will fund our commercialization efforts and accelerate the development of future generations of quantum computers. While we achieved all these milestones through Q3 2021 with comparatively modest funding, we are now one of the best funded quantum computing companies in the world. Part of scaling the business is growing the team, including recent key hires. We brought in Ariel Braun as Senior Vice President of Product Management Ariel's background is truly impressive with extensive experience across diverse roles and technology areas, working in companies ranging from early startups to the Fortune 100. In addition to co-founding Pure Digital Technology, which generated over $1 billion in revenue with the Flip video camcorder, Ariel led Cisco's consumer product portfolio as well as Google's AR and VR product management. We hired Dean Kasseman as Vice President of Research and Development. Prior to joining us, he was Senior Director of Advanced Technology for Blue Origin. There, Dean established and led the team responsible for company-wide applied research in the support of their launch vehicle, engines, and in-space product lines. Dean has over 25 years of leadership in software, hardware, and technology development, including advanced modeling and planning roles at both Aspen Technology and Amazon. We are thrilled to welcome Ariel and Dean to the IAQ family and look forward to working with them as we continue to build out our world-class team. We are beyond excited to begin our life as a public company, and I want to thank all our board members, advisors, investors, employees, and everyone who make our public listing possible. And with that, I'd like to turn over the call to our CFO, Thomas Kramer. Thomas?