IonQ, Inc.

Good day and welcome to the IonQ third quarter 2023 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. 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 two. Please note that this event is being recorded. I would now like to turn the conference over to Jordan Shapiro. Please go ahead.

Good afternoon, everyone, and welcome to INQ's third quarter 2023 earnings call. My name is Jordan Shapiro, and I'm the Vice President of Financial Planning and Analysis and Head of Investor Relations here at INQ. I'm pleased to be joined on today's call by Peter Chapman, INQ's President and Chief Executive Officer, Thomas Kramer, our Chief Financial Officer, and Dean Kassman, our Vice President of Engineering. By now, everyone should have access to the company's third quarter 2023 earnings press release issued this afternoon, which is available on the Investor Relations section of our website at investors.inq.com. 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. You are directed to our press release for reconciliation of adjusted EBITDA to its closest comparable GAAP measure. During the call, we will discuss our business outlook and make forward-looking statements. These comments are based on our predictions and expectations as of today. Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned in our 10-Q that we intend to file with the SEC tomorrow. We undertake no obligation to revise any statements to reflect changes that occur after this call, except as required by law. Now, I will turn it over to Peter Chapman, President and CEO of INQ. Peter?

Thanks, Jordan, and thanks everyone for joining us today. Today we are calling in from our new Seattle office, which is our location for manufacturing quantum computing systems at scale. We are very happy with the financial and technical progress that we've made this quarter and so far this year. We are seeing a clear pickup in interest from early adopters of quantum computing. with revenue of $6.1 million in Q3 2023, representing a 122% increase from the prior year period. Moreover, we added $26.3 million in bookings during the third quarter. This puts us above the high end of our previously announced annual bookings range for the year, with a full quarter left to go. Over the course of this year, we have substantially built the size and visibility of our sales pipeline. Though we expect it to continue to be lumpy, today we are pleased to announce that by the end of 2023, we are on a path to exceeding our goal of a cumulative $100 million in bookings since the start of 2021. In 2022, We told you that there was a possibility INQ could sell a full quantum system by the end of 2023. We have now sold four. INQ's commercial and technical momentum continues to accelerate ahead of our original expectations. We believe our path to commercial advantage with AQ64 is clear without requiring full error corrections. customers are expressing strong interest in our AQ64 Tempo system with our AQ35 Forte Enterprise systems as stepping stones to develop quantum algorithms in ecosystems. Moreover, we're seeing growing interest in quantum networking, bolstered by our recent sale to the United States Air Force Research Lab. The main conclusions you should draw from today's call are that one, our pipeline is bigger and better than ever, and two, that our technical momentum, while always arduous, continues to be ahead of schedule. Now let's dive into the details. IMQ is focused on ushering in the enterprise era of quantum, and our financial performance is beginning to reflect that reality. Both public and private institutions are quickly coming to the conclusion that early adopters stand to benefit the most from quantum technology and are eager to prepare themselves for the quantum era. Those of you who turned into our presentation at Quantum World Congress in September know that we made two major announcements that demonstrate INQ's continued market leadership. The first announcement is that we have agreed to sell two systems to the United States Air Force Research Lab, or AFRL, in a significant deal for INQ and the quantum computing industry as a whole. This $25.5 million deal includes two quantum network node systems, which will be used for research and application development. Notably, these systems will use our cutting-edge barium qubit technology. The second major announcement from Quantum World Congress was the reveal of two new IMQ system generations. IMQ Forte Enterprise, will be a rack-mounted production-grade AQ35 system. Forte Enterprise will deliver on our goals of reducing system footprint while providing modularity, all in a rack-mounted form factor that will integrate seamlessly into existing data centers. It will also be the first IMQ system generation manufactured at our new Seattle facility. Following Forte Enterprise, IMQ Tempo will be our rack-mounted, production-grade AQ64 system. We expect this upcoming generation to allow our customers to begin solving certain problems with quantum computing that even today's best classical supercomputers cannot, or what we refer to as commercial advances. We have already announced plans to deliver one of each of these systems, Forte Enterprise and Tempo to service Quantum Basel in Switzerland. We also recently announced that INQ has officially reached AQ29 on a barium-based system. This is powerful validation of our work on barium systems, with their performance now catching up to that of our uterbium-based INQ Forte. We believe the future of trapped ion quantum computers will be enhanced by variance, and this milestone shows we are one step closer to AQ64. As another technical roadmap announcement, I would also like to highlight an important development that we had discussed at our Analyst Day in September. INQ now believes that we will be able to reach AQ64 and commercial advantage using error mitigation, rather than needing to implement full error correction. Error mitigation requires fewer qubits than error correction and makes us even more confident in our ability to reach AQ64 in the near term. Alongside our exciting progress on hardware, INQ's commercial momentum is continuing to pick up steam. In September, we also hosted the official opening of the QLab. alongside our partners at the University of Maryland. Speakers at the event included U.S. Senator Ben Cardin, Maryland Senate President Bill Ferguson, and Maryland Lieutenant Governor Aruna Miller. The QLab is just one example on how INQ customers are creating ecosystems around quantum computing. In November, we were awarded an extension of our contract with Zapata AI and the U.S. Defense Advanced Research Projects Agency, or DARPA, to lay the groundwork for benchmarking quantum computing. On the corporate front, we announced last month that Chris Monroe, INQ's co-founder and chief scientist, has returned his focus to quantum academic research and policy pursuits. We will continue to benefit from his future work via the intellectual property agreement that INQ maintains with Duke University. That agreement grants us exclusive access to trapped ion quantum computing patents generated by our co-founders' departments. We are grateful for Chris's many contributions to INQ and early foundational scientific breakthroughs. As we enter INQ's next stage of growth, with many scientific breakthroughs behind us, we are now entirely focused on executing against our roadmap, which requires more engineering and product development in science. In some respects, this represents a generational shift, but one that is natural for rapidly evolving companies. Our team is experienced in growing companies. We are building on that strength while continuing to add new capabilities for today, tomorrow, and the quantum future ahead. In our Analyst Day presentation last month, we introduce you to the broader lineup of our IMQ executive team. This team includes Dr. Dean Kassman, Dr. Dave Mayhew, and Dr. Pat Tang, our VPs of engineering, product engineering, and R&D, respectively. These industry veterans from Amazon, Blue Origin, and Apple represent the next generation of IMQ technical leadership. With their vision and experience on our side, we are fully confident in our ability to deliver on our roadmap. We believe INQ's forte, enterprise, and tempo in their respective AQ35 and AQ64 milestones are right around the corner. Organizations are starting to recognize this potential and are seeking out contracts with INQ, as reflected by our strong bookings thus far in 2023. Our momentum continues to grow. Just today, We are honored to have been selected as a winner of Deloitte's Technology Fast 500 Award that recognizes the most innovative, fastest growing companies in North America. In 2022, we told you there was a possibility IMQ could sell a full quantum system by the end of 2023. We have now sold four. Today, I can tell you our pipeline of customers seriously interested in purchasing, INQ Systems is robust in gaining momentum each quarter. So in addition to this being yet another milestone quarter for INQ, we are even more excited about the bright future ahead for our business. With that, I would now like to turn the call over to Thomas for a more detailed review of the financials. Thomas?