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D-Wave Quantum Analysts Highlight Strong Results, First System Sale, Growing Backlog

Benzinga·03/14/2025 16:42:40
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Shares of D-Wave Quantum Inc (NYSE:QBTS) were climbing in early trading on Friday, after the company reported upbeat fourth-quarter results.

The company reported its results amid an exciting earnings season. Here are some key analyst takeaways.

Roth Capital Markets On D-Wave Quantum

Analyst Suji Desilva maintained a Buy rating, while raising the price target from $7 to $10.

D-Wave Quantum reported revenues of $2.3 million, up 23.5% sequentially but down 21% year-on-year, Desilva said. The figure came in higher than consensus, "reflecting steady QCaaS service revenue results," he added.

Bookings stood at $18.3 million, "reflected inclusions of the company's first quantum annealing computer sale booked in the quarter," the analyst stated. "We are encouraged by the growing backlog and opportunity to diversify into hardware sales beyond core QCaaS quantum cloud services," he further wrote.

Check out other analyst stock ratings.

Benchmark On D-Wave Quantum

Analyst David Williams reiterated a Buy rating and price target of $8.

D-Wave Quantum delivered "another quarter of strong results, demonstrating continued progress across its technology, financials, customer base, and business development initiatives," Williams said. We think the peer-reviewed publication of the company's quantum supremacy demonstration is a significant achievement and was the highlight since the company's last earnings release.

The company enjoyed momentum in hardware sales, with the first on-site Advantage system sale, the analyst stated. The launch of the next-generation Advantage 2 system, anticipated for later this year, is expected to "serve as a catalyst for additional sales opportunities," he wrote.

Needham On D-Wave Quantum

Analyst Quinn Bolton reiterated a Buy rating and price target of $8.50.

D-Wave Quantum "achieved quantum supremacy on a real world magnetic materials simulation problem, meaningfully strengthened its balance sheet," Bolton said. The company announced the sale of an Advantage system to the Julich Supercomputing Center in Germany, which is the first system sale in its history, he added.

While the system was booked in the fourth quarter, most of the revenue will be recognized in the first quarter of 2025, the analyst stated. "The company is engaged with three other institutions globally for quantum systems but does not expect additional system sales this year," he wrote.

QBTS Price Action: Shares of D-Wave Quantum had risen by 37.7% to $9.52 at the time of publication on Friday.

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