IonQ, Inc.

Greetings. Welcome to the INQ's fourth quarter and full year 2024 earnings call. At this time, all participants are in listen-only mode. The question and answer session will follow the formal presentation. If anyone today should require operator assistance, please press star zero from your telephone keypad. As a reminder, this conference is being recorded. At this time, it is now my pleasure to introduce Jordan Shapiro, Vice President, FP&A, Head of Investor Relations. Jordan, you may begin.

Good afternoon, everyone, and welcome to INQ's fourth quarter and full year 2024 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 Executive Chair, Niccolo DeMasi, our new President and Chief Executive Officer, Thomas Kramer, our Chief Financial Officer, and Dean Kastman. our Senior Vice President of Engineering and Technology. By now, everyone should have access to the company's fourth quarter and full year 2024 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 a 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-K, that we have filed with the FCC today. 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, Executive Chair of INQ. Peter?

Thank you, Jordan, and thank you to everyone listening. If you take away one thing from this call, let it be this. 2024 was INQ's best year ever. but we believe 2025 is slated to be the year INQ drives an inflection in the quantum market. In 2024, we grew our full-year bookings by 47% to $95.6 million and nearly doubled our revenue, achieving $43.1 million for the year and $11.7 million for the fourth quarter, both exceeding the high end of our guidance range. To continue our rapid growth rate, last quarter we announced our acquisition of substantially all the assets of quantum networking leader Cubetech Inc., which we have since closed. Our interest in quantum networking is multifaceted. It enables INQ to scale its quantum computers by enabling distributed quantum computing in much the same way classical CPUs and GPUs are networked together today. Our unique architecture allows us to interface with existing telecommunication networks and real-world environments. The second facet is to build the next generation of the Internet, which is secure from the potential threat of classical and quantum computers. Today, I am thrilled to announce that INQ has signed a definitive agreement to acquire a controlling stake in ID Quantique, a large global player in quantum networking. Once the deal closes, INQ will consolidate IDQuantique's global book of business, more than 100 team members, and gain control of almost 300 quantum networking patents and patent applications. In aggregate, INQ will shortly control nearly 900 patents and patent applications across quantum key distribution, quantum sensing, quantum networking, and quantum computing. With IDQuantique, INQ furthers its leadership in quantum networking. Our goal is to build a suite of products that enable secure quantum communication in all forms, from satellites to ground stations, across existing telecommunication fiber infrastructure, to drones on a battlefield. Those following INQ closely We'll note that we are building out the key component technologies for the telecom and defense sectors. With the pending addition of ID Quantique and the completed addition of Cubatech, we will partner with their existing blue chip customers, which include SK Telecom and the electric power board of Chattanooga. These customer relationships allow us to test new hardware and applications in real-world environments. Switching gears to computing, we delivered our first Forte enterprise system to Quantum Basel in Switzerland, as well as our first system to the Air Force Research Lab. INQ continues to make progress on developing our next generation barium-based system called Tempo, with the first unit already sold and slated for delivery to Basel. During our Q3 earnings call, We spoke about our partnership with AstraZeneca on drug discovery use cases. Tonight, I can share that our work in chemistry modeling, in collaboration with other partners, has advanced significantly. We plan to showcase some of the progress before the next earnings call. With Ansys, we are also continuing our collaboration with Ansys and are making great progress in computer-aided engineering, a $10 billion industry. This quarter, we also announced a new partnership with General Dynamics Information Technology, a division of General Dynamics, to create quantum solutions that enhance fraud and anomaly detection by identifying irregularities and large data sets with greater speed and accuracy. Not only do these collaborations reflect how quantum is bringing value to businesses today, they are also emblematic of the breadth of impact that quantum computing will have as INQ and our partners continue to develop more applications using Forte Enterprise in future systems. We continue to make progress against our technical roadmap and performance goals. We are reconfirming our confidence in achieving AQ64 by the end of this year, which will be demonstrated on our next generation barium-based system. Historically, AQ has been the best tool to measure performance across quantum systems. However, since its introduction, quantum applications and compiler technology have been progressing so rapidly that benchmarks defined only four years ago can no longer reflect our true pace of innovation and future system capabilities. By the end of this year, we will demonstrate our AQ64 system capable of circa 3,000 high-quality gate operations, As we gear up for the era of commercial advantage, we will deprecate AQ as a measure of technical progress in favor of a new set of benchmarks. These new metrics will be closely aligned with our customers' application success and will be accompanied by an updated computing and networking roadmap to match it. Before we turn it over to Thomas for our financials, I want to take a moment to discuss an exciting announcement we made today regarding the future of our leadership team. Our board has appointed Niccolo DeMasi as president and chief executive officer, while I continue my leadership as executive chair. This evolution will allow me to spend more time focused on our strategic customer relationships and the development of quantum AI. Niccolo is originally a physicist and has twice been a public company CEO. and a key member of our team since we went public. He has made important contributions to our strategic direction and growth initiatives as a director. We are confident that Niccolo's track record of expertise, insights, and leadership will further enable INQ to accelerate our growth. Today, we are also welcome a new director to INQ, Gabrielle Toledano, Gabrielle is the former Chief People Officer of Tesla. She has held senior roles at Electronic Arts, Siebel Systems, Microsoft, and Oracle. She brings a wealth of experience as an executive on everything from organizational growth to executive compensation. Both of these leadership announcements optimally position INQ for continued success in the quantum era and quantum AI. and quantum commercial advantage. With that, I hand this over to Nick.