The jump in **Cash and cash equivalents** in Q1 2024 was primarily driven by a significant inflow from **investing activities**, where matured and sold available-for-sale securities greatly exceeded the purchases and other capital expenditures. This was complemented by a smaller positive contribution from **financing activities** despite a notable outflow from **operating activities** due to investments in R&D, sales and marketing, administrative expenses, and a net loss. Overall, these factors combined to result in the considerable increase in cash balances during the quarter.  **[0000950170-24-055629_ionq-ex99_1.htm:5]** 

Why did Cash and cash equivalents jump in Q1 2024?

The **Total Assets** dropped in Q3 2024 primarily because the company saw a **significant reduction in long-term investments**, which decreased from **$100,489 thousand** to **$17,131 thousand**. Additionally, there was a **notable decline in accounts receivable** (from **$11,467 thousand** to **$4,137 thousand**) and a **slight decrease in cash and cash equivalents** (from **$35,665 thousand** to **$30,172 thousand**). Although there was an **increase in property and equipment, net**, this was not enough to offset the declines mentioned, leading to an overall drop in total assets.  **[0000950170-24-122264_ionq-ex99_1.htm:6]** **[0000950170-24-122305_ionq-20240930.htm:4]** 

Why did Total Assets drop in Q3 2024?

There was **no change** in Goodwill in Q4 2023; the value remained constant at **$742,000** and did not sharply increase.  **[0000950170-24-022062_ionq-ex99_1.htm:4]** **[0000950170-24-022072_ionq-20231231.htm:132]** **[0000950170-23-061111_ionq-ex99_1.htm:4]** 

Why did Goodwill sharply increase in Q4 2023?

The decline in **Total liabilities** in Q2 2024 was primarily due to a significant decrease in **warrant liabilities** and **accrued expenses**. **Warrant liabilities** dropped from **$23,004 thousand** to **$7,738 thousand** as a result of changes in fair value, which also produced a non-cash gain of **$6.6 million**. Additionally, **accrued expenses** fell from **$18,376 thousand** to **$8,925 thousand**. Although there was a slight increase in **operating lease liabilities**, it did not offset the decreases in the other areas.  **[0000950170-24-092782_ionq-20240630.htm:4]** **[0000950170-24-092737_ionq-ex99_1.htm:0]** 

Why did Total liabilities decline in Q2 2024?

6b4b7ee315ea0e52d01b7781e015ddb4405dd7009d945644f0d7fbf8c3a363e8

The high **loss from operations** in **Q4 2023** was mainly due to a substantial increase in several key expense categories. **Total operating costs and expenses** rose significantly, with a pronounced increase in **Research and Development Expenses** (up 131% to **$31,620 thousand**), **Sales and Marketing Expenses** (up 189% to **$6,981 thousand**), and **General and Administrative Expenses** (up 69% to **$15,284 thousand**). These higher costs reflect IonQ’s increased investments in payroll-related expenses, including stock-based compensation, and its strategic focus on expanding commercialization efforts and overall operational capabilities.  **[0000950170-24-022062_ionq-ex99_1.htm:4]** **[IONQ_3375722_6]** 

Why was Loss from operations so high in Q4 2023?

IonQ’s R&D expenses jumped in **Q4 2023** primarily because of a significant increase in **payroll-related costs** driven by higher headcount and a sharp rise in **stock-based compensation**—which, along with increased spending on **materials, supplies, and equipment**, supported the expansion of their R&D activities to accelerate system development and commercialization.  **[IONQ_3375722_6]** **[0000950170-24-022062_ionq-ex99_1.htm:4]** **[0000950170-24-022072_ionq-20231231.htm:103]** 

Why did R&D expenses jump in Q4 2023?

IonQ's revenue increase in Q1 2024 was driven by **significant progress on its specialized quantum computing hardware contracts** and the **securing of new revenue contracts**, which together contributed to a **77% growth in revenue** compared to Q1 2023.  **[0000950170-24-057804_ionq-20240331.htm:39]** 

What drove the revenue increase in Q1 2024?

IonQ’s higher net loss in Q3 2024 was primarily driven by increased operating costs and expenses. This includes a significant rise in **R&D expenses** (up by **$8,579 thousand** or **35%**), **Sales and Marketing** expenses (an increase of **$1,583 thousand**), and modest growth in **G&A expenses** (up by **$395 thousand**), contributing to an overall operating cost increase of **$17,205 thousand**. Additionally, a substantial jump in the **cost of revenue** (an increase of **$4,507 thousand** or **224%**)—primarily due to higher hardware and labor costs—further contributed to the increased net loss. Moreover, higher **stock-based compensation** and a recorded **non-cash loss on warrant liabilities** added to the overall impact on net loss in Q3 2024.  **[IONQ_3406399_4]** **[0000950170-24-122305_ionq-20240930.htm:5]** **[0000950170-24-122305_ionq-20240930.htm:43]** 

What factors contributed to the higher net loss in Q3 2024?

a70f69606b4d7c1d90f922ffb1946d869ef4f7e9bdd86ec5364e5c7861dbe542

Cash and cash equivalents (USD, thousands)

Short-term investments (USD, thousands)

Accounts receivable (USD, thousands)

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Total current assets (USD, thousands)

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Property and equipment, net (USD, thousands)

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Goodwill (USD, thousands)

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Accrued expenses (USD, thousands)

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Unearned revenue (USD, thousands)

Current portion of stock option early exercise liabilities (USD, thousands)

Total current liabilities (USD, thousands)

Operating lease liabilities, net of current portion (USD, thousands)

Warrant liabilities (USD, thousands)

Other noncurrent liabilities (USD, thousands)

Total liabilities (USD, thousands)

Common stock (USD, thousands)

Additional paid-in capital (USD, thousands)

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Total Liabilities and Stockholders’ Equity (USD, thousands)

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Net Loss (USD, thousands)

Depreciation and Amortization (USD, thousands)

Stock-Based Compensation (USD, thousands)

(Gain) Loss on Change in Fair Value of Warrant Liabilities (USD, thousands)

Amortization of Premiums and Accretion of Discounts on Available-for-Sale Securities (USD, thousands)

Other, net (USD, thousands)

Net Cash Provided by (Used in) Operating Activities (USD, thousands)

Purchases of Property and Equipment (USD, thousands)

Capitalized Software Development Costs (USD, thousands)

Intangible Asset Acquisition Costs (USD, thousands)

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Other Financing, Net (USD, thousands)

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Effect of Foreign Exchange Rate Changes on Cash, Cash Equivalents and Restricted Cash (USD, thousands)

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Other Assets and Liabilities (USD, thousands)

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Cash, Cash Equivalents and Restricted Cash at the End of the Period (USD, thousands)

ec64f662513a9866acaefb3ded5b3d7352ab4b6c11cb5ab7865ddf560f226d6a

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Cost of revenue (excluding depreciation and amortization) (USD, thousands)

Research and development (USD, thousands)

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Gain (loss) on change in fair value of warrant liabilities (USD, thousands)

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Loss before income tax expense (USD, thousands)

Income tax benefit (expense) (USD, thousands)

Net loss (USD, thousands)

f5e0625e83e3f6e07112572407992bc206636436de6e09ce7b9683aa360fe696

Adjustments for Non-Cash Items (USD, thousands)

Changes in Working Capital (USD, thousands)

Capital Expenditures (CapEx) (USD, thousands)

Proceeds from / Repayments of Debt (USD, thousands)

Share Repurchases (USD, thousands)

Dividend Payments (USD, thousands)

Net Change in Cash (USD, thousands)

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Current Assets (USD, thousands)

Cash and Cash Equivalents (USD, thousands)

Inventory (USD, thousands)

Non-Current Assets (USD, thousands)

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Current Liabilities (USD, thousands)

Short-term Debt (USD, thousands)

Non-Current Liabilities (USD, thousands)

Long-term Debt (USD, thousands)

Lease Liabilities (USD, thousands)

Deferred Tax Liabilities (USD, thousands)

Shareholders' Equity (USD, thousands)

Retained Earnings (USD, thousands)

Common Stock (USD, thousands)

Additional Paid-in Capital (USD, thousands)

dbc2942b124795cf98a3ef21545080152fe0d9eab3eb6f5e32f343a5c6807746

Total Revenue (USD, thousands)

Cost of Goods Sold (USD, thousands)

Selling, General, and Administrative Expenses (USD, thousands)

Research and Development (USD, thousands)

Interest Expense (USD, thousands)

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Earnings Per Share (EPS) - Basic (USD)

Earnings Per Share (EPS) - Diluted (USD)

88a09240079c0ce24a2d35eac2eb856c0ac24a764d84679d10d02ac712fb1919

United States

International

Other Regions

Total Revenue

4fe39c72875079849491af1ecaae8186fca6bc3629e7a273565c06c0831b6faf

Specialized Quantum Computing Hardware

Platform, Consulting, and Support Services

ecc16305cd936bd9a5229955df8ae251be1a349086ba1ac0c5d6072a434604b6

IonQ (IONQ)

Financials