IONQ, INC., 10-Q filed on 11/6/2024
Quarterly Report
v3.24.3
Cover Page - shares
 9 Months Ended
Sep. 30, 2024
Oct. 30, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Sep. 30, 2024  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q3  
Entity Registrant Name IONQ, INC.  
Entity Central Index Key 0001824920  
Current Fiscal Year End Date --12-31  
Document Quarterly Report true  
Document Transition Report false  
Entity Incorporation, State or Country Code DE  
Entity File Number 001-39694  
Entity Tax Identification Number 85-2992192  
Entity Address, Address Line One 4505 Campus Drive  
Entity Address, City or Town College Park  
Entity Address, State or Province MD  
Entity Address, Postal Zip Code 20740  
City Area Code 301  
Local Phone Number 298-7997  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   216,392,242
Warrant [Member]    
Entity Information [Line Items]    
Trading Symbol IONQ WS  
Title of 12(b) Security Warrants, each exercisable for one share of common stock for $11.50 per share  
Security Exchange Name NYSE  
Common Stock [Member]    
Entity Information [Line Items]    
Trading Symbol IONQ  
Title of 12(b) Security Common stock, par value $0.0001 per share  
Security Exchange Name NYSE  
v3.24.3
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 30,172 $ 35,665
Short-term investments 335,538 319,776
Accounts receivable 4,137 11,467
Prepaid expenses and other current assets 25,553 23,081
Total current assets 395,400 389,989
Long-term investments 17,131 100,489
Property and equipment, net 49,454 37,515
Operating lease right-of-use assets 10,029 4,613
Intangible assets, net 17,487 15,077
Goodwill 727 742
Other noncurrent assets 7,683 5,155
Total Assets 497,911 553,580
Current liabilities:    
Accounts payable 4,854 5,599
Accrued expenses 15,657 18,376
Current portion of operating lease liabilities 3,089 710
Unearned revenue 8,332 12,087
Current portion of stock option early exercise liabilities 392 392
Total current liabilities 32,324 37,164
Operating lease liabilities, net of current portion 15,214 7,395
Unearned revenue, net of current portion 60 447
Stock option early exercise liabilities, net of current portion 154 448
Warrant liabilities 11,607 23,004
Other noncurrent liabilities 2,869 128
Total liabilities 62,228 68,586
Commitments and contingencies (see Note 7)
Stockholders' Equity:    
Common stock $0.0001 par value; 1,000,000,000 shares authorized; 0 and 206,611,704 shares issued and outstanding as of September 30, 2024 and December 31, 2023, respectively 22 20
Additional paid-in capital 917,048 839,014
Accumulated deficit (481,722) (352,073)
Accumulated other comprehensive income (loss) 335 (1,967)
Total stockholders' equity 435,683 484,994
Total Liabilities and Stockholders' Equity $ 497,911 $ 553,580
v3.24.3
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2024
Dec. 31, 2023
Common stock, par value $ 0.0001 $ 0.0001
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 215,975,686 206,611,704
Common stock, shares outstanding 215,975,686 206,611,704
v3.24.3
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Revenue $ 12,400 $ 6,136 $ 31,363 $ 15,936
Costs and expenses:        
Cost of revenue (excluding depreciation and amortization) 6,515 2,008 15,552 4,945
Research and development 33,178 24,599 96,750 60,701
Sales and marketing 6,630 5,047 19,468 11,289
General and administrative 14,322 13,927 41,395 35,438
Depreciation and amortization 4,890 2,749 13,150 6,869
Total operating costs and expenses 65,535 48,330 186,315 119,242
Loss from operations (53,135) (42,194) (154,952) (103,306)
Gain (loss) on change in fair value of warrant liabilities (3,868) (7,640) 11,398 (26,787)
Interest income, net 4,508 5,007 14,108 14,115
Other income (expense), net 15 55 (164) 150
Loss before income tax expense (52,480) (44,772) (129,610) (115,828)
Income tax benefit (expense) (16) (39) (39) (39)
Net loss $ (52,496) $ (44,811) $ (129,649) $ (115,867)
Net loss per share attributable to common stockholders—basic $ (0.24) $ (0.22) $ (0.61) $ (0.57)
Net loss per share attributable to common stockholders—diluted $ (0.24) $ (0.22) $ (0.61) $ (0.57)
Weighted average shares used in computing net loss per share attributable to common stockholders—basic 214,305,053 203,390,383 211,378,045 201,656,916
Weighted average shares used in computing net loss per share attributable to common stockholders—diluted 214,305,053 203,390,383 211,378,045 201,656,916
v3.24.3
Condensed Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net loss $ (52,496) $ (44,811) $ (129,649) $ (115,867)
Other comprehensive income (loss), net of reclassification adjustments:        
Change in unrealized gain (loss) on available-for-sale securities, net 1,713 1,292 2,348 2,560
Currency translation adjustments (60) 1 (46) 1
Total other comprehensive income (loss) 1,653 1,293 2,302 2,561
Total comprehensive loss $ (50,843) $ (43,518) $ (127,347) $ (113,306)
v3.24.3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
$ in Thousands
Total
Common Stock [Member]
Additional Paid-In Capital [Member]
Accumulated Deficit [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Dec. 31, 2022 $ 568,211 $ 20 $ 769,848 $ (194,302) $ (7,355)
Balance (in shares) at Dec. 31, 2022   199,862,123      
Net loss (115,867) $ 0 0 (115,867) 0
Other comprehensive income (loss) 2,561 0 0 0 2,561
Stock options exercised 775 $ 0 775 0 0
Stock options exercised (in shares)   1,358,096      
Vesting of restricted common stock 846 $ 0 846 0 0
Vesting of restricted common stock (in shares)   376,023      
Issuance of common stock from the settlement of restricted stock units 2,641 $ 0 2,641 0 0
Issuance of common stock from the settlement of restricted stock units (in shares)   2,519,921      
Stock-based compensation 39,312 $ 0 39,312 0 0
Warrants exercised shares   921      
Warrants exercised 17 $ 0 17 0 0
Balance at Sep. 30, 2023 498,496 $ 20 813,439 (310,169) (4,794)
Balance (in shares) at Sep. 30, 2023   204,117,084      
Balance at Jun. 30, 2023 523,246 $ 20 794,671 (265,358) (6,087)
Balance (in shares) at Jun. 30, 2023   201,869,202      
Net loss (44,811) $ 0 0 (44,811) 0
Other comprehensive income (loss) 1,293 0 0 0 1,293
Stock options exercised 234 $ 0 234 0 0
Stock options exercised (in shares)   568,330      
Vesting of restricted common stock 282 $ 0 282 0 0
Vesting of restricted common stock (in shares)   125,341      
Issuance of common stock from the settlement of restricted stock units 141 $ 0 141 0 0
Issuance of common stock from the settlement of restricted stock units (in shares)   1,553,290      
Stock-based compensation 18,094 $ 0 18,094 0 0
Warrants exercised shares   921      
Warrants exercised 17 $ 0 17 0 0
Balance at Sep. 30, 2023 498,496 $ 20 813,439 (310,169) (4,794)
Balance (in shares) at Sep. 30, 2023   204,117,084      
Balance at Dec. 31, 2023 484,994 $ 20 839,014 (352,073) (1,967)
Balance (in shares) at Dec. 31, 2023   206,611,704      
Net loss (129,649) $ 0 0 (129,649) 0
Other comprehensive income (loss) 2,302 0 0 0 2,302
Stock options exercised $ 2,270 $ 0 2,270 0 0
Stock options exercised (in shares) 3,417,286 3,318,104      
Vesting of restricted common stock $ 294 $ 0 294 0 0
Vesting of restricted common stock (in shares)   144,435      
Issuance of common stock from the settlement of restricted stock units 11,444 $ 2 11,442 0 0
Issuance of common stock from the settlement of restricted stock units (in shares)   5,901,443      
Stock-based compensation 64,028 $ 0 64,028 0 0
Balance at Sep. 30, 2024 435,683 $ 22 917,048 (481,722) 335
Balance (in shares) at Sep. 30, 2024   215,975,686      
Balance at Jun. 30, 2024 463,274 $ 21 893,797 (429,226) (1,318)
Balance (in shares) at Jun. 30, 2024   213,722,503      
Net loss (52,496) $ 0 0 (52,496) 0
Other comprehensive income (loss) 1,653 0 0 0 1,653
Stock options exercised 1,085 $ 0 1,085 0 0
Stock options exercised (in shares)   671,689      
Vesting of restricted common stock 98 $ 0 98 0 0
Vesting of restricted common stock (in shares)   48,145      
Issuance of common stock from the settlement of restricted stock units 1 $ 1 0 0 0
Issuance of common stock from the settlement of restricted stock units (in shares)   1,533,349      
Stock-based compensation 22,068 $ 0 22,068 0 0
Balance at Sep. 30, 2024 $ 435,683 $ 22 $ 917,048 $ (481,722) $ 335
Balance (in shares) at Sep. 30, 2024   215,975,686      
v3.24.3
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Cash flows from operating activities:    
Net loss $ (129,649) $ (115,867)
Adjustments to reconcile net loss to net cash used in operating activities:    
Depreciation and amortization 13,150 6,869
Non-cash research and development arrangements 390 390
Stock-based compensation 67,607 38,549
(Gain) loss on change in fair value of warrant liabilities (11,398) 26,787
Amortization of premiums and accretion of discounts on available-for-sale securities (7,086) (7,287)
Other, net 3,901 1,036
Changes in operating assets and liabilities:    
Accounts receivable 7,341 946
Prepaid expenses and other current assets (9,899) (7,545)
Accounts payable (463) 975
Accrued expenses 612 8,066
Unearned revenue (4,232) (4,944)
Other assets and liabilities 3,471 (156)
Net cash provided by (used in) operating activities (66,255) (52,181)
Cash flows from investing activities:    
Purchases of property and equipment (14,399) (6,544)
Capitalized software development costs (3,064) (3,134)
Intangible asset acquisition costs (1,201) (1,057)
Purchases of available-for-sale securities (241,162) (230,350)
Maturities of available-for-sale securities 318,192 285,665
Net cash provided by (used in) investing activities 58,366 44,580
Cash flows from financing activities:    
Proceeds from stock options exercised 2,270 775
Other financing, net 144 9
Net cash provided by (used in) financing activities 2,414 784
Effect of foreign exchange rate changes on cash, cash equivalents and restricted cash 4 3
Net change in cash, cash equivalents and restricted cash (5,471) (6,814)
Cash, cash equivalents and restricted cash at the beginning of the period 38,081 46,367
Cash, cash equivalents and restricted cash at the end of the period 32,610 39,553
Supplemental disclosures of non-cash investing and financing transactions    
Property and equipment purchases in accounts payable and accrued expenses 559 4,202
Intangible asset purchases in accounts payable and accrued expenses 226 321
Operating lease right-of-use assets subject to lease liability 6,129 2,380
Noncash reclassification of warrant liabilities to equity upon exercise 0 7
Bonus settled in restricted stock units 11,443 2,641
Net share settled stock option exercises $ 1,016 $ 0
v3.24.3
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Pay vs Performance Disclosure        
Net Income (Loss) $ (52,496) $ (44,811) $ (129,649) $ (115,867)
v3.24.3
Insider Trading Arrangements
 3 Months Ended
Sep. 30, 2024
Trading Arrangements, by Individual  
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
Rule 10b5-1 Arrangement Modified false
Non-Rule 10b5-1 Arrangement Modified false
v3.24.3
Description of Business
 9 Months Ended
Sep. 30, 2024
Description of Business

1. DESCRIPTION OF BUSINESS

IonQ, Inc. (“IonQ” or the “Company”), formerly known as dMY Technology Group, Inc. III (“dMY”), was incorporated in the state of Delaware in September 2020 and formed as a special purpose acquisition company for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization, or similar business combination with one or more businesses. IonQ Quantum, Inc. (formerly known as IonQ, Inc., and referred to as “Legacy IonQ” herein), was incorporated in the state of Delaware in September 2015 and is headquartered in College Park, Maryland.

On March 7, 2021, Legacy IonQ entered into an Agreement and Plan of Merger (the “Merger Agreement”) with dMY and Ion Trap Acquisition Inc. (“Merger Sub”), a direct, wholly owned subsidiary of dMY. Pursuant to the Merger Agreement, on September 30, 2021 (“the Closing Date”), the Merger Sub was merged with and into Legacy IonQ with Legacy IonQ continuing as the surviving corporation following the merger, becoming a wholly owned subsidiary of dMY and the separate corporate existence of the Merger Sub ceased (the “Business Combination”). Contemporaneously with the Business Combination, dMY changed its name to IonQ, Inc. and Legacy IonQ changed its name to IonQ Quantum, Inc.

IonQ is engaged in quantum computing and develops general-purpose quantum computing systems designed to solve some of the world’s most complex problems, and transform business, society, and the planet for the better. To operate the quantum computing systems, the Company has developed custom hardware, custom firmware, and an operating system to orchestrate the quantum computers.

Segment Reporting

The Company operates as one operating segment as its chief executive officer, who is the chief operating decision maker, reviews financial information on a consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance.

v3.24.3
Summary of Significant Accounting Policies
 9 Months Ended
Sep. 30, 2024
Summary of Significant Accounting Policies

2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Significant Accounting Policies

The Company’s significant accounting policies, which are disclosed in the audited financial statements for the year ended December 31, 2023, and the notes thereto are included in the Company’s Annual Report on Form 10-K (the “Annual Report”) that was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024. Since the date of that filing, there have been no material changes to the Company’s significant accounting policies except as noted below.

Basis of Preparation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”). Such condensed consolidated financial statements include the accounts of IonQ and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Unaudited Interim Financial Information

The interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by the Company and are unaudited, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for a quarterly report and are adequate to make the information presented not misleading. The interim condensed consolidated financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. These interim condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2023, included in the Annual Report. The condensed consolidated statements of operations and the condensed consolidated statements of comprehensive loss for the three or nine months ended September 30, 2024, are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2024, or thereafter. All references to September 30, 2024 and 2023, in the notes to the condensed consolidated financial statements are unaudited.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP and the rules and regulations of the SEC require management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes.

Significant estimates and assumptions are inherent in the analysis and measurement of items including, but not limited to: standalone selling price for revenue arrangements with multiple performance obligations, total expected costs for revenue arrangements recognized over time, capitalization of quantum computing system costs, useful lives for quantum computing systems, and stock-based compensation for awards with performance and market conditions. Management bases its estimates and assumptions on historical experience, expectations, forecasts, and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ and be affected by changes in those estimates.

Foreign Currency

The reporting currency of the Company is the U.S. dollar. Financial statements of subsidiaries whose functional currency is not the U.S. dollar are translated at exchange rates in effect at the balance sheet date for assets and liabilities and at average exchange rates for revenues and expenses for the respective periods. Translation adjustments are recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets.

The Company is exposed to foreign currency risk to the extent that it enters into transactions denominated in currencies other than its subsidiaries’ respective functional currencies. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the Company’s condensed consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses resulting from the conversion of the transaction currency to functional currency are included in other income (expense), net in the condensed consolidated statements of operations.

Fair Value Measurements

The Company evaluates the fair value of certain assets and liabilities using the fair value hierarchy. Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

•
Level 1—Observable inputs, which include quoted prices in active markets;
•
Level 2—Observable inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in markets that are not active, or other inputs such as broker quotes, benchmark yield curves, credit spreads and market interest rates for similar securities that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;
•
Level 3—Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined using pricing models, discounted cash flow methodologies or similar techniques.

The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.

Assets and liabilities that are measured at fair value on a non-recurring basis include property and equipment, intangible assets, and goodwill. The Company recognizes these items at fair value when they are considered to be impaired or upon initial recognition when acquired through a business combination or an asset acquisition. The fair value of these assets and liabilities are determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models.

Due to their short-term nature, the carrying amounts reported in the Company’s condensed consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses.

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include cash in banks, checking deposits, money market funds, and U.S. government and agency securities. The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash for collateralizing letters of credit and corporate credit cards is included in other noncurrent assets in the condensed consolidated balance sheets. The Company issues letters of credit in the ordinary course of business, including for lease arrangements. As of September 30, 2024 and December 31, 2023, letters of credit totaling $2.1 million were outstanding.

The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets to the amounts included in the condensed consolidated statements of cash flows (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Cash and cash equivalents

 

$

30,172

 

 

$

35,665

 

Restricted cash

 

 

2,438

 

 

 

2,416

 

Total cash, cash equivalents and restricted cash in the condensed
   consolidated statements of cash flows

 

$

32,610

 

 

$

38,081

 

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are non-interest bearing and represent amounts billed and currently due from customers at the gross invoiced amount as well as unbilled amounts related to unconditional rights for consideration to be received for services performed but not yet invoiced. A receivable is recorded when the Company has an unconditional right to receive payment. Accounts receivable consists of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Billed accounts receivable

 

$

3,265

 

 

$

8,564

 

Unbilled accounts receivable

 

 

872

 

 

 

2,903

 

Total accounts receivable

 

$

4,137

 

 

$

11,467

 

 

On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance for credit losses. This assessment is based on management’s evaluation of relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the receivable.

The Company did not have any allowance for credit losses as of either September 30, 2024 or December 31, 2023.

Materials and Supplies, Net

Materials and supplies are carried at average cost and recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. Materials and supplies used in the production of quantum computing systems to be made commercially available are capitalized to property and equipment when installed. Materials and supplies used for maintenance, research and development efforts or to service customer contracts are expensed when consumed. The Company capitalized $1.9 million and $0.9 million of materials and supplies to property and equipment for the three months ended September 30, 2024 and 2023, respectively, and $4.5 million and $3.1 million of materials and supplies to property and equipment for the nine months ended September 30, 2024 and 2023, respectively.

Materials and supplies are evaluated regularly for excess quantities and obsolescence. This evaluation includes analysis of the Company's current and future strategic plans, risk of technological obsolescence, and general market conditions. During the three and nine months ended September 30, 2024, excess and obsolescence charges were $1.0 million and $1.1 million, respectively. There were no excess and obsolescence charges during either of the three or nine months ended September 30, 2023.

Investments

Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. The Company primarily invests in debt securities and classifies its investments as available-for-sale at the time of purchase if they are available to support either current or future operations. This classification is re-evaluated at each balance sheet date. Investments not

considered cash equivalents, with remaining contractual maturities of one year or less from the balance sheet date are classified as short-term investments, and those with remaining contractual maturities greater than one year from the balance sheet date are classified as long-term investments. All investments are recorded at their estimated fair value, and any unrealized gains and losses are recorded in the condensed consolidated balance sheets in accumulated other comprehensive loss. Realized gains and losses on sales and maturities of investments are determined based on the specific identification method and are recognized in the condensed consolidated statements of operations in other income (expense), net. Accrued interest receivable on available-for-sale investments is recorded in the condensed consolidated balance sheets in prepaid expenses and other current assets.

The Company performs periodic evaluations to determine whether any declines in the fair value of investments below amortized cost are credit losses or impairments. The evaluation consists of qualitative and quantitative factors regarding the severity of the unrealized loss, as well as the Company’s ability and intent to hold the investments until a forecasted recovery occurs. Declines in fair value are considered to be credit losses if they are related to deterioration in credit risk or are considered impairments if it is likely that the underlying securities will be sold prior to a full recovery of their cost basis. Credit losses and impairments are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations.

Property and Equipment, Net

Property and equipment, net is stated at cost less accumulated depreciation. Historical cost of fixed assets is the cost as of the date acquired. Hardware and labor costs associated with the building of quantum computing systems are capitalized in the period the costs are incurred when it is probable that the system will provide future economic benefit. The costs of quantum computing systems that are used in research and development activities and have alternative future uses are capitalized. Costs to maintain quantum computing systems are expensed as incurred.

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Useful lives are as follows:

 

Computer equipment and acquired computer software

 

3 – 5 years

Machinery, equipment, furniture and fixtures

 

4 – 7 years

Quantum computing systems

 

3 years

Leasehold improvements

 

Shorter of the lease term or the estimated useful life of the related asset

 

The Company evaluates the useful life of its assets periodically and whenever events or changes in circumstances indicate that the useful life may have changed. In assessing useful lives, the Company considers, among other factors, the use of the asset, changes in technology, and the competitive environment.

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current operating lease liabilities and operating lease liabilities, net of current portion on the Company’s condensed consolidated balance sheets. As of September 30, 2024, the Company has no financing lease arrangements. The Company recognizes lease expense for its operating leases on a straight-line basis over the term of the lease.

The Company records a ROU asset and lease liability in connection with its operating leases. The Company’s lease portfolio is comprised primarily of real estate leases, which are accounted for as operating leases. The Company elected the practical expedient to not separate lease and non-lease components for all leases.

ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease payments, including the impact of any lease incentives, as applicable, over the lease term. An amendment to a lease is assessed to determine if it represents a lease modification or a separate contract. Lease modifications are reassessed as of the effective date of the modification using an incremental borrowing rate based on the information available at the commencement date. For modified leases the Company also reassesses the lease classification as of the effective date of the modification.

The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company considers contractual-based factors such as the nature and terms of the renewal or termination, asset-based factors such as physical location of the asset and entity-based factors such as the importance of the leased asset to the Company’s

operations to determine the lease term. The Company generally uses the base non-cancelable lease term when determining the ROU assets and lease liabilities.

Software Development Costs

The Company incurs software development costs for internal-use software, which the Company primarily uses to provide services to its customers, as well as for external-use software that will be part of a product to be sold, leased, or marketed.

Internal-Use Software

The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended, until the time the software is placed in service for its intended use. Any costs incurred during subsequent efforts to upgrade and enhance the functionality of the software are also capitalized. Once this software is ready for its intended use, these costs are amortized on a straight-line basis over the estimated useful life of the software, which is typically assessed to be three years. Capitalized internal-use software is recorded within intangible assets, net, in the condensed consolidated balance sheets. During the three months ended September 30, 2024 and 2023, the Company capitalized $1.7 million and $2.0 million in internal-use software costs, respectively, and during the nine months ended September 30, 2024 and 2023, the Company capitalized $5.5 million and $5.3 million, respectively. The Company amortized $1.4 million and $0.8 million of capitalized internal-use software costs during the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $1.9 million of capitalized internal-use software costs during the nine months ended September 30, 2024 and 2023, respectively.

External-Use Software

Costs incurred in researching and developing external-use software are expensed as incurred until technological feasibility is established. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this occurs shortly before the products are released to production. No external-use software costs were capitalized during any of the three or nine months ended September 30, 2024 and 2023.

Impairment of Long-Lived Assets

Long-lived assets, such as property and equipment and other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for any of the three or nine months ended September 30, 2024 and 2023.

Warrant Liabilities

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging.” For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued upon exercise or at each reporting date for the unexercised warrants, with changes in the fair value reported in the condensed consolidated statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. The warrants of dMY assumed in the Business Combination are classified as liabilities and remeasured at each reporting period. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

Revenue Recognition

The Company derives revenue from the design, development, and construction of specialized quantum computing hardware together with related services, from providing access to its quantum-computing-as-a-service (“QCaaS” or “Platform” services), and from consulting services related to co-developing algorithms on the quantum computing systems. The Company applies the provisions of the FASB Accounting Standards Update (“ASU”), Revenue from Contracts with Customers (“ASC 606”), and all related applicable guidance. The core principle of ASC 606 is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

To support this core principle, the Company applies the following five step approach:

1.
Identify the contract with the customer
2.
Identify the performance obligations
3.
Determine the transaction price
4.
Allocate the transaction price to the performance obligations
5.
Recognize revenue when (or as) the entity satisfies a performance obligation

Certain of the Company’s contracts contain multiple performance obligations, most commonly in contracts for the sale of specialized quantum computing hardware together with related maintenance and support. Such contracts may also include access to the Company’s QCaaS. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. When there are multiple performance obligations in a contract, the Company allocates the transaction price to each performance obligation based on its standalone selling price when available. The Company determines standalone selling price based on the observable price of a product or service when it sells the products or services separately in similar circumstances and to similar customers. Certain products and services have limited or no history of being sold on a standalone basis, requiring the Company to estimate the standalone selling price. To date, the Company has estimated the standalone selling price based on other contracts for similar products and services adjusted for differing terms than the contract being evaluated, as well as internal pricing guidelines and market factors. In addition, the Company takes into consideration the estimated costs to be incurred to satisfy the performance obligation plus an appropriate profit margin. In limited situations, for certain contracts executed in prior years, when the standalone selling price was not known, due to it being either highly variable or uncertain, the Company allocated the transaction price using the residual approach.

The Company has determined that its QCaaS contracts represent a combined, stand-ready performance obligation to provide access to its quantum computing systems together with related maintenance and support. The transaction price generally consists of a fixed fee for a minimum volume of usage to be made available over a defined period of access. Fixed fee arrangements may also include a variable component whereby customers pay an amount for usage over contractual minimums contained in the contracts. The Company has determined that contracts that contain consulting services related to co-developing quantum computing algorithms and the ability to use its quantum computing systems to run such algorithms represent a combined performance obligation that is satisfied over-time.

Performance obligations are satisfied over time if the customer receives the benefits as the Company performs the work, if the customer controls the asset as it is being produced (continuous transfer of control), or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment for performance to date. For performance obligations related to specialized quantum computing hardware and consulting services, revenue is recognized over time based on the efforts incurred to date relative to the total expected effort, primarily based on a cost-to-cost input measure. The Company applies judgment to determine a reasonable method to measure progress and to estimate total expected effort. Factors considered in these estimates include the Company's historical performance, the availability, productivity and cost of labor, the nature and complexity of work to be performed, the effect of change orders, availability and cost of materials, and the effect of any delays in performance. For performance obligations related to providing QCaaS access, fixed fees are recognized on a straight-line basis over the access period.

For the three and nine months ended September 30, 2024 and 2023, substantially all revenue was recognized based on transfer of service over time. Revenues recognized at a point in time were not material. In arrangements with cloud service providers, the cloud service provider is considered the customer and IonQ does not have any contractual relationships with the cloud service providers’ end users. For these arrangements, revenue is recognized at the amount charged to the cloud service provider and does not reflect any mark-up to the end user.

The Company may enter into multiple contracts with a single counterparty at or near the same time. The Company will combine contracts and account for them as a single contract when one or more of the following criteria are met: (i) the contracts are negotiated as a package with a single commercial objective; (ii) consideration to be paid in one contract depends on the price or performance of the other contract; and (iii) goods or services promised are a single performance obligation. Consideration payable to a customer includes cash amounts that an entity pays, or expects to pay, to the customer. For arrangements that contain consideration payable to a customer, the Company uses judgment in determining whether such payments are a reduction of the transaction price or a payment to the customer for a distinct good or service.

The variable fees associated with the QCaaS are generally billed a month in arrears. Customers also have the ability to make advance payments. If a contract exists under ASC 606, advance payments are recorded as a contract liability until services are delivered or obligations are

met and revenue is earned. Contract liabilities to be recognized in the succeeding 12-month period are classified as current and the remaining amounts are classified as non-current liabilities in the Company’s condensed consolidated balance sheets.

Assets Recognized from Costs to Obtain a Contract

Sales commissions paid to employees and third parties are considered incremental costs to obtain a contract with a customer. These costs are capitalized in the period a customer contract is executed and are amortized as an expense consistent with the transfer of the goods or services to the customer. Capitalized costs are recorded in prepaid expenses and other current assets and other noncurrent assets in the condensed consolidated balance sheets. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets is one year or less. As of September 30, 2024 and December 31, 2023, total capitalized costs were $5.3 million and $2.8 million, respectively. Amortization expense was $0.4 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $1.3 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively, and is included in sales and marketing in the condensed consolidated statements of operations.

Research and Development

Research and development expenses consist of personnel-related costs, including salaries, benefits and stock-based compensation expense, and allocated shared resource costs for the Company’s hardware, software and engineering personnel who design and develop the Company’s quantum computing systems and research new quantum computing technologies. Unlike a standard computer, design and development efforts continue throughout the useful life of the Company’s quantum computing systems to ensure proper calibration and optimal functionality. Research and development expenses also include purchased hardware and software costs related to quantum computing systems constructed for research purposes that are not probable of providing future economic benefit and have no alternate future use, as well as costs associated with third-party research and development arrangements.

Under an agreement with Duke University (“Duke”), the Company issued common shares to Duke in consideration for research and development services through July 15, 2026. The agreement is considered a research and development service arrangement and is recorded as a prepayment based on the fair value of the common stock issued and is amortized over the term of the arrangement as services are received and is recognized in research and development in the condensed consolidated statements of operations.

Stock-Based Compensation

The Company measures and records the expense related to stock-based awards based on the fair value of those awards as determined on the date of grant. The Company recognizes stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and uses the straight-line method to recognize stock-based compensation. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of subjective assumptions, which determine the fair value of stock option awards, including the option’s expected term, the price volatility of the underlying common stock, risk-free interest rates, and the expected dividend yield of the common stock. The assumptions used to determine the fair value of the stock options represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The Company records forfeitures as they occur.

Stock-based compensation cost for restricted stock units and performance-based restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The fair value of performance-based restricted stock units with a market condition is estimated on the date of grant using the Monte Carlo simulation model. The Monte Carlo simulation model requires the use of subjective assumptions, which determine the fair value of these awards, including price volatility, contractual term, discount rate, risk-free interest rates, and the expected dividend yield of the common stock. The assumptions used to determine the fair value of the performance-based restricted stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. For awards with a performance-based vesting condition, including those with a market condition, the Company records stock-based compensation cost if it is probable that the performance conditions will be achieved. Stock-based compensation cost will be recognized if the performance condition is satisfied, even if the market condition is not met and the award does not vest. At each reporting period, the Company reassesses the probability of the achievement of the performance conditions and any change in expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of the adjustment.

The Company records stock-based compensation expense for incentive compensation liabilities based on estimated payments to employees for which the Company expects to settle the liability by granting restricted stock units. For these awards, stock-based compensation expense is accrued commencing at the service inception date, which generally precedes the grant date, through the end of the requisite service period.

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, investments, and trade accounts receivable. The Company maintains the majority of its cash, cash equivalents, restricted cash and investments with three financial institutions. The Company’s deposits routinely exceed amounts guaranteed by the Federal Deposit Insurance Corporation.

The Company’s accounts receivable are derived from customers primarily located in the U.S. The Company performs periodic evaluations of its customers’ financial condition and generally does not require its customers to provide collateral or other security to support accounts receivable and maintains an allowance for credit losses. Credit losses historically have not been material.

Significant customers are those that represent more than 10% of the Company’s total revenue. For the three and nine months ended September 30, 2024, the Company had two significant customers that accounted for 84% and 79% of total revenue, respectively. For the three and nine months ended September 30, 2023, the Company had three and two significant customers, respectively, that accounted for 68% and 58% of total revenue, respectively.

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of shares of common stock during the period, plus common stock equivalents, outstanding during the period. If the Company reports a net loss, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be antidilutive.

The following table sets forth the computation of basic and diluted loss per share attributable to common stockholders (in thousands, except share and per share data):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

Numerator:

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss attributable to common stockholders

 

$

(52,496

)

 

$

(44,811

)

 

$

(129,649

)

 

$

(115,867

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss
   per share attributable to common stockholders—
   basic and diluted

 

 

214,305,053

 

 

 

203,390,383

 

 

 

211,378,045

 

 

 

201,656,916

 

Net loss per share attributable to common
   stockholders—basic and diluted

 

$

(0.24

)

 

$

(0.22

)

 

$

(0.61

)

 

$

(0.57

)

 

In periods with a reported net loss, the effect of stock options, warrants, unvested restricted stock units, unvested performance-based restricted stock units, and unvested common stock (including unvested restricted common stock) are excluded and diluted loss per share is equal to basic loss per share. The following is a summary of the weighted average common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Common stock options outstanding

 

 

18,693,271

 

 

 

23,443,324

 

 

 

19,715,840

 

 

 

23,952,845

 

Warrants to purchase common stock

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

Public warrants

 

 

5,228,253

 

 

 

5,231,164

 

 

 

5,228,253

 

 

 

5,231,378

 

Unvested restricted stock units

 

 

16,087,407

 

 

 

15,749,472

 

 

 

16,478,732

 

 

 

13,009,874

 

Unvested performance-based restricted stock units

 

 

1,918,817

 

 

 

—

 

 

 

1,970,331

 

 

 

—

 

Unvested common stock

 

 

283,401

 

 

 

591,771

 

 

 

331,546

 

 

 

717,112

 

Total

 

 

50,512,351

 

 

 

53,316,933

 

 

 

52,025,904

 

 

 

51,212,411

 

Recently Issued Accounting Standards Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of ASU 2023-07 should be applied on a retrospective basis, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.
v3.24.3
Cash, Cash Equivalents, Restricted Cash And Investments
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
Cash, Cash Equivalents, Restricted Cash and Investments

3. CASH, CASH EQUIVALENTS, RESTRICTED CASH AND INVESTMENTS

The following table summarizes the Company’s unrealized gains and losses and estimated fair value of cash, cash equivalents, restricted cash and investments in available-for-sale securities recorded in the condensed consolidated balance sheets (in thousands):

 

 

As of September 30, 2024

 

 

As of December 31, 2023

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

Cash and money market funds

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

 

$

25,131

 

 

$

—

 

 

$

—

 

 

$

25,131

 

Commercial paper

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,374

 

 

 

—

 

 

 

(14

)

 

 

16,360

 

Corporate notes and bonds

 

 

67,545

 

 

 

47

 

 

 

(226

)

 

 

67,366

 

 

 

176,793

 

 

 

38

 

 

 

(1,854

)

 

 

174,977

 

Municipal bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,990

 

 

 

—

 

 

 

(43

)

 

 

4,947

 

US government and agency

 

 

284,733

 

 

 

638

 

 

 

(68

)

 

 

285,303

 

 

 

237,015

 

 

 

311

 

 

 

(395

)

 

 

236,931

 

Total cash, cash equivalents,
   restricted cash and
   investments

 

$

384,888

 

 

$

685

 

 

$

(294

)

 

$

385,279

 

 

$

460,303

 

 

$

349

 

 

$

(2,306

)

 

$

458,346

 

 

Unrealized losses related to investments were primarily a result of interest rate fluctuations. The following tables present information about the Company’s investments in available-for-sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023 (in thousands):

 

 

As of September 30, 2024

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Loses

 

Corporate notes and bonds

 

$

—

 

 

$

—

 

 

$

56,462

 

 

$

(226

)

 

$

56,462

 

 

$

(226

)

US government and agency

 

 

23,646

 

 

 

(17

)

 

 

19,889

 

 

 

(51

)

 

 

43,535

 

 

 

(68

)

Total

 

$

23,646

 

 

$

(17

)

 

$

76,351

 

 

$

(277

)

 

$

99,997

 

 

$

(294

)

 

 

As of December 31, 2023

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Loses

 

Commercial paper

 

$

16,360

 

 

$

(14

)

 

$

—

 

 

$

—

 

 

$

16,360

 

 

$

(14

)

Corporate notes and bonds

 

 

11,074

 

 

 

(58

)

 

 

151,174

 

 

 

(1,796

)

 

 

162,248

 

 

 

(1,854

)

Municipal bonds

 

 

—

 

 

 

—

 

 

 

4,947

 

 

 

(43

)

 

 

4,947

 

 

 

(43

)

US government and agency

 

 

109,540

 

 

 

(192

)

 

 

24,795

 

 

 

(203

)

 

 

134,335

 

 

 

(395

)

Total

 

$

136,974

 

 

$

(264

)

 

$

180,916

 

 

$

(2,042

)

 

$

317,890

 

 

$

(2,306

)

 

The Company did not have any allowance for credit losses as of either September 30, 2024 or December 31, 2023. The Company neither intends to nor believes that it is more likely than not that it will be required to sell the investments in an unrealized loss position before the recovery of the associated amortized cost basis.

The estimated fair value of the Company’s cash, cash equivalents, restricted cash and investments in available-for-sale securities as of September 30, 2024, aggregated by investment category and classified by contractual maturity date, is as follows (in thousands):

 

 

1 Year
or Less

 

 

Greater than
1 Year

 

 

Total

 

Cash and money market funds

 

$

30,205

 

 

$

2,405

 

 

$

32,610

 

Corporate notes and bonds

 

 

63,930

 

 

 

3,436

 

 

 

67,366

 

US government and agency

 

 

271,608

 

 

 

13,695

 

 

 

285,303

 

Total

 

$

365,743

 

 

$

19,536

 

 

$

385,279

 

 
v3.24.3
Fair Value Measurements
 9 Months Ended
Sep. 30, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Fair Value Measurements

4. FAIR VALUE MEASUREMENTS

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

 

 

Fair Value Measured as of

 

 

 

September 30, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

Total cash, cash equivalents and restricted cash

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

63,930

 

 

 

—

 

 

 

63,930

 

US government and agency

 

 

—

 

 

 

271,608

 

 

 

—

 

 

 

271,608

 

Total short-term investments

 

$

—

 

 

$

335,538

 

 

$

—

 

 

$

335,538

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

3,436

 

 

 

—

 

 

 

3,436

 

US government and agency

 

 

—

 

 

 

13,695

 

 

 

—

 

 

 

13,695

 

Total long-term investments

 

$

—

 

 

$

17,131

 

 

$

—

 

 

$

17,131

 

Total Assets

 

$

32,610

 

 

$

352,669

 

 

$

—

 

 

$

385,279

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

11,607

 

 

$

—

 

 

$

—

 

 

$

11,607

 

 

 

Fair Value Measured as of

 

 

 

December 31, 2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

25,131

 

 

$

—

 

 

$

—

 

 

$

25,131

 

US government and agency

 

 

—

 

 

 

12,950

 

 

 

—

 

 

 

12,950

 

Total cash, cash equivalents and restricted cash

 

$

25,131

 

 

$

12,950

 

 

$

—

 

 

$

38,081

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

—

 

 

 

16,360

 

 

 

—

 

 

 

16,360

 

Corporate notes and bonds

 

 

—

 

 

 

130,423

 

 

 

—

 

 

 

130,423

 

Municipal bonds

 

 

—

 

 

 

4,947

 

 

 

—

 

 

 

4,947

 

US government and agency

 

 

—

 

 

 

168,046

 

 

 

—

 

 

 

168,046

 

Total short-term investments

 

$

—

 

 

$

319,776

 

 

$

—

 

 

$

319,776

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

44,554

 

 

 

—

 

 

 

44,554

 

US government and agency

 

 

—

 

 

 

55,935

 

 

 

—

 

 

 

55,935

 

Total long-term investments

 

$

—

 

 

$

100,489

 

 

$

—

 

 

$

100,489

 

Total Assets

 

$

25,131

 

 

$

433,215

 

 

$

—

 

 

$

458,346

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

23,004

 

 

$

—

 

 

$

—

 

 

$

23,004

 

 

(1)
Includes money market funds associated with the Company’s overnight investment sweep account and cash collateralizing the Company's letter of credit and corporate credit cards.

Transfers to/from Levels 1, 2 and 3 are recognized at the beginning of the reporting period. There were no transfers between levels during the period. On September 30, 2024, the closing trading price of the public warrants was $2.22 per warrant.

v3.24.3
Property And Equipment, Net
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Property And Equipment, Net

5. PROPERTY AND EQUIPMENT, NET

Property and equipment, net is composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Computer equipment and acquired computer software

 

$

5,968

 

 

$

4,537

 

Machinery, equipment, furniture and fixtures

 

 

13,821

 

 

 

9,238

 

Leasehold improvements

 

 

17,717

 

 

 

10,043

 

Quantum computing systems

 

 

35,622

 

 

 

28,296

 

Gross property and equipment

 

 

73,128

 

 

 

52,114

 

Less: accumulated depreciation

 

 

(23,674

)

 

 

(14,599

)

Total property and equipment, net

 

$

49,454

 

 

$

37,515

 

 

Depreciation expense for the three months ended September 30, 2024 and 2023, was $3.5 million and $1.9 million, respectively. Depreciation expense for the nine months ended September 30, 2024 and 2023, was $9.1 million and $4.7 million, respectively.
v3.24.3
Other Balance Sheet Accounts
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Other Balance Sheet Accounts

6. OTHER BALANCE SHEET ACCOUNTS

Prepaid expenses and other current assets are composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Materials and supplies

 

$

17,949

 

 

$

12,476

 

Prepaid expenses

 

 

3,102

 

 

 

5,696

 

Accrued interest receivable

 

 

2,194

 

 

 

2,109

 

Other current assets

 

 

2,308

 

 

 

2,800

 

Total prepaid expenses and other current assets

 

$

25,553

 

 

$

23,081

 

 

Accrued expenses are composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Accrued salaries and other payroll liabilities

 

$

12,477

 

 

$

15,950

 

Accrued professional services

 

 

1,723

 

 

 

605

 

Accrued equipment and services liabilities for research and development

 

 

176

 

 

 

112

 

Accrued expenses—other

 

 

1,281

 

 

 

1,709

 

Total accrued expenses

 

$

15,657

 

 

$

18,376

 
v3.24.3
Commitments and Contingencies
 9 Months Ended
Sep. 30, 2024
Commitments and Contingencies

7. COMMITMENTS AND CONTINGENCIES

Warranties and Indemnification

The Company’s commercial services are typically warranted to perform in a manner consistent with general industry standards that are reasonably applicable and materially in accordance with the Company’s documentation under normal use and circumstances.

The Company’s arrangements generally include certain provisions for indemnifying customers against liabilities if its products or services infringe third-party intellectual property rights. To date, the Company has not incurred any material costs as a result of such obligations and has not accrued any liabilities related to such obligations in the accompanying condensed consolidated financial statements.

Stockholder Lawsuit

In May 2022, a securities class action complaint captioned Leacock v. IonQ, Inc. et al., Case No. 8:22-cv-01306, was filed by a stockholder of the Company in the United States District Court for the District of Maryland (the “Leacock Litigation”) against the Company and certain of the Company’s current officers. In June 2022, a securities class action complaint captioned Fisher v. IonQ, Inc., Case No. 8:22-cv-01306-DLB (the “Fisher Litigation”) was filed by a stockholder against the Company and certain of the Company’s current officers (“IonQ Defendants”). Both the Leacock Litigation and Fisher Litigation, which have been consolidated into a single action, allege violations of Section 10(b) of the Exchange Act, and Rule 10b-5 promulgated thereunder, and Section 20(a) of the Exchange Act and seek damages. In September 2022, the Court appointed lead plaintiffs and counsel for lead plaintiffs, and ordered lead plaintiffs to file a consolidated amended complaint. The consolidated amended complaint was filed on November 22, 2022. As part of the consolidated amended complaint, certain members of the

Company’s board of directors as well as other dMY-related defendants (“Additional Defendants”) have been added as defendants to the case. On February 7, 2023, the IonQ Defendants and the Additional Defendants each filed a motion to dismiss the consolidated amended complaint. On March 23, 2023, lead plaintiffs filed their omnibus opposition to the motions to dismiss. On April 26, 2023, the IonQ Defendants and the Additional Defendants each filed a reply in support of the motions to dismiss. On September 28, 2023, the District Court of Maryland issued an order dismissing plaintiffs' claims against the IonQ Defendants and the Additional Defendants with prejudice and directed the clerk to close the case. On October 26, 2023, the plaintiffs filed a motion for post-judgment relief, seeking to amend their consolidated amended complaint. The IonQ Defendants and Additional Defendants filed oppositions to plaintiffs’ motion on December 1, 2023, and plaintiffs filed their reply on January 8, 2024. On July 10, 2024, the plaintiffs' motion for post-judgment relief was denied and the District Court of Maryland directed the clerk to close the case. On July 26, 2024, the plaintiffs filed a Notice of Appeal with the Fourth Circuit Court of Appeals seeking to review the trial court's decision. Plaintiffs filed their Opening Brief in the Fourth Circuit on September 9, 2024. A response brief by IonQ Defendants was filed on October 8, 2024 and plaintiffs’ reply brief was filed on October 29, 2024. Given the uncertainty of litigation and the legal standards that must be met for, among other things, success on the case merits, the Company cannot reasonably estimate the possible loss or range of loss, if any, that may result from the associated suit.

v3.24.3
Warrants
 9 Months Ended
Sep. 30, 2024
Warrants [Abstract]  
Warrants

8. WARRANTS

In November 2019, contemporaneously with a revenue arrangement, the Company entered into a contract, pursuant to which the Company agreed to issue to a customer warrants to acquire shares of Legacy IonQ Series B-1 preferred stock (the “Warrant Shares”), subject to certain vesting events. Upon closing of the Business Combination, the Warrant Shares were assumed by the Company and converted into a warrant to purchase shares of common stock. As of September 30, 2024, the contract allows for the customer to acquire up to 8,301,202 shares of common stock in the Company. The Warrant Shares will vest and become exercisable upon satisfaction of certain milestones based on revenue generated under the commercial agreement with the customer, to the extent certain prepayments are made by the customer. The exercise price for the Warrant Shares is $1.38 per share and the warrant is exercisable through November 2029. As the Warrant Shares were issued in connection with an existing commercial agreement with a customer, the value of the Warrant Shares was determined to be consideration payable to the customer and consequently will be treated as a reduction to revenue recognized under the corresponding revenue arrangement to the extent the Warrant Shares vest and become exercisable.

As part of the Business Combination, the Company assumed 7,500,000 public warrants on September 30, 2021 as part of the Business Combination. As of September 30, 2024, there were 5,228,253 public warrants to purchase common stock outstanding. Each warrant entitles the registered holder to purchase one share of common stock at a price of $11.50 per share. The public warrants are classified as liabilities and remeasured at each reporting period. No public warrants have been redeemed by the Company as of September 30, 2024.
v3.24.3
Revenue
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Revenue

9. REVENUE

Disaggregated Revenue

The Company's revenues disaggregated by revenue source is as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Specialized quantum computing hardware

 

$

6,345

 

 

$

2,006

 

 

$

17,301

 

 

$

5,331

 

Platform, consulting and support services

 

 

6,055

 

 

 

4,130

 

 

 

14,062

 

 

 

10,605

 

Total revenue

 

$

12,400

 

 

$

6,136

 

 

$

31,363

 

 

$

15,936

 

 

The Company's revenues disaggregated by customer location is as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

11,895

 

 

$

5,037

 

 

$

29,910

 

 

$

13,575

 

International

 

 

505

 

 

 

1,099

 

 

 

1,453

 

 

 

2,361

 

Total revenue

 

$

12,400

 

 

$

6,136

 

 

$

31,363

 

 

$

15,936

 

Remaining Performance Obligations

As of September 30, 2024, approximately $110.1 million of revenue is expected to be recognized from remaining performance obligations that are unsatisfied (or partially unsatisfied), including both funded (firm orders for which funding has been both authorized and appropriated by the customer) and unfunded (firm orders for which funding has not been appropriated) orders. Unexercised contract options are not included in

remaining performance obligations until the time the option is exercised. The Company expects approximately 30% of the remaining performance obligations to be recognized as revenue within the next twelve months.

Unearned Revenue

The following table summarizes the changes in unearned revenue for the nine months ended September 30, 2024 (in thousands):

 

 

Total

 

Balance as of December 31, 2023

 

$

12,534

 

Revenue recognized

 

 

(11,091

)

New deferrals, net

 

 

6,949

 

Balance as of September 30, 2024

 

$

8,392

 
v3.24.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]  
Stock-Based Compensation

10. STOCK-BASED COMPENSATION

Equity Incentive Plans

The Company has a 2015 Equity Incentive Plan (the “2015 Plan”), which provided for the grant of share-based compensation to certain officers, directors, employees, consultants, and advisors. Upon the closing of the Business Combination, no further awards were made pursuant to the 2015 Plan and all outstanding Legacy IonQ stock options under the 2015 Plan were assumed by the Company. Such stock options granted under the 2015 Plan will continue to be governed by the terms of the 2015 Plan and the stock option agreements thereunder, until such outstanding options are exercised or until they terminate or expire by their terms. For awards granted under the 2015 Plan, vesting generally occurs over four to five years from the date of grant.

In August 2021, the Company’s board of directors adopted the 2021 Equity Incentive Plan (the “2021 Plan”), which was subsequently approved by the Company’s stockholders in September 2021, and became effective upon the closing of the Business Combination. The 2021 Plan provides for the grant of stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards (“RSU”), performance awards and other forms of awards to employees, directors, and consultants. The number of shares of the Company’s common stock reserved for issuance under the 2021 Plan automatically increases on January 1 of each year, through and including January 1, 2031, by 5% of the Fully Diluted Common Stock (as defined in the 2021 Plan) outstanding on December 31 of the preceding year, or a lesser number of shares determined by the Company’s board of directors prior to such increase. As of January 1, 2024, the number of shares reserved for issuance under the 2021 Plan increased by 14,215,808. For awards granted under the 2021 Plan, vesting terms range from one to four years from the date of grant. As of September 30, 2024, the Company had 23,704,859 shares available for grant under the 2021 Plan.

Under both equity incentive plans, all options granted have a contractual term of 10 years.

Stock Options

The Company estimates the fair value of stock options on the date of grant using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires estimates of highly subjective assumptions, which affect the fair value of each stock option. For stock options granted during the three and nine months ended September 30, 2024 and 2023, the assumptions for the Black-Scholes option-pricing model were developed as follows:

Expected Volatility—The expected volatility was based on the average historical stock price volatility of comparable publicly-traded companies in the Company's industry peer group, financial, and market capitalization data, due to the limited history of a public market for the Company's common stock prior to closing the Business Combination relative to the expected term of the options.

Expected Term—The expected term of the Company’s options represents the period that the stock options are expected to be outstanding.

The Company has estimated the expected term of its employee stock option awards using the SAB Topic 14 Simplified Method allowed by the FASB and SEC for calculating expected term, as it has limited historical exercise data to provide a reasonable basis upon which to otherwise estimate expected term. Certain of the Company’s stock options began vesting prior to the grant date, in which case the Company uses the remaining vesting term at the grant date in the expected term calculation.

Risk-Free Interest Rate—The Company estimates its risk-free interest rate by using the yield on actively traded non-inflation-indexed U.S. treasury securities with contract maturities equal to the expected term.

Dividend Yield—The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero.

Fair Value of Underlying Common Stock—The Company utilizes the closing stock price on the date of grant as the fair value of the common stock underlying such stock options in the Black-Scholes option-pricing model.

The assumptions used to estimate the fair value of stock options granted are as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Risk-free interest rate

 

 

—

%

 

 

—

%

 

 

4.31

%

 

 

4.09

%

Expected term (in years)

 

 

—

 

 

 

—

 

 

 

6.00

 

 

 

5.50

 

Expected volatility

 

 

—

%

 

 

—

%

 

 

79.33

%

 

 

80.63

%

Dividend yield

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

The stock option activity is summarized in the following table:

 

 

Number of
Option
Shares

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value
(in millions)

 

Outstanding as of December 31, 2023

 

 

21,664,377

 

 

$

2.26

 

 

 

 

 

 

 

Granted

 

 

52,640

 

 

 

11.24

 

 

 

 

 

 

 

Exercised

 

 

(3,417,286

)

 

 

0.96

 

 

 

 

 

 

 

Cancelled/ Forfeited

 

 

(87,631

)

 

 

4.03

 

 

 

 

 

 

 

Outstanding as of September 30, 2024

 

 

18,212,100

 

 

$

2.52

 

 

 

5.70

 

 

$

118.34

 

Exercisable as of September 30, 2024

 

 

14,461,879

 

 

$

1.91

 

 

 

5.33

 

 

$

102.17

 

Exercisable and expected to vest as of September 30, 2024

 

 

18,212,100

 

 

$

2.52

 

 

 

5.70

 

 

$

118.34

 

Early Exercised Stock Options

As of September 30, 2024 and December 31, 2023, there were 259,329 and 403,764 shares, respectively, subject to repurchase related to stock options early exercised and unvested. As of September 30, 2024 and December 31, 2023, the Company recorded a liability related to these shares subject to repurchase in the amount of $0.5 million and $0.8 million, respectively, in its condensed consolidated balance sheets.

Restricted Stock Units

The RSU activity is summarized in the following table:

 

 

Number of
RSUs

 

 

Weighted
Average
Grant
Date Fair
Value

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Outstanding as of December 31, 2023

 

 

15,107,535

 

 

$

8.90

 

 

 

 

Granted

 

 

7,944,799

 

 

 

9.45

 

 

 

 

Vested

 

 

(5,901,443

)

 

 

9.12

 

 

 

 

Forfeited

 

 

(1,946,950

)

 

 

9.86

 

 

 

 

Outstanding as of September 30, 2024

 

 

15,203,941

 

 

$

8.97

 

 

 

2.71

 

Expected to vest after September 30, 2024

 

 

15,162,941

 

 

$

8.96

 

 

 

2.71

 

 

During the three and nine months ended September 30, 2024, the Company released zero and 1,064,518 RSUs, respectively, related to the settlement of an accrued bonus liability. During the three and nine months ended September 30, 2023, the Company released 20,334 and 381,204 RSUs, respectively, related to the settlement of an accrued bonus liability.

Performance-Based Restricted Stock Units

The Company grants performance-based restricted stock unit awards (“PSU”) to certain officers and employees, which vest over approximately three to four years. The number of shares that can be earned will range from 0% to 300% of the target number of shares, based on the Company's achievement of certain financial and technical goals, as well as a stock price hurdle requirement for a portion of the awards. In the event that the stock price hurdle is not met at the time the PSUs vest, the maximum PSU opportunity shall be limited to target (100%)

performance. The number of PSUs expected to vest and for which compensation cost has been recognized is based on the number of awards that the Company believes are probable of vesting as of September 30, 2024.

For the portion of the PSUs subject to the stock price hurdle, the fair value was determined using a Monte Carlo simulation model. The Monte Carlo simulation model requires estimates of highly subjective assumptions, which affect the fair value of each PSU. For PSUs granted during the three and nine months ended September 30, 2024 and 2023, the assumptions for the Monte Carlo simulation model were developed as follows:

Expected Volatility—The expected volatility in 2024 was determined based on the Company's historical stock price volatility. The expected volatility in 2023 was based on the average historical stock price volatility of comparable publicly traded companies in the Company's industry peer group, financial, and market capitalization data, due to the limited history of a public market for the Company's common stock prior to closing the Business Combination.

Contractual Term—The Company utilizes the remaining performance period on the date of grant as the contractual term, which represents the period that the PSUs are expected to be outstanding.

Risk-Free Interest Rate—The Company estimates its risk-free interest rate by using the yield on actively traded non-inflation-indexed U.S. treasury securities with contract maturities equal to the expected term.

Dividend Yield—The Company has not declared or paid dividends to date and does not anticipate declaring dividends. As such, the dividend yield has been estimated to be zero.

Fair Value of Underlying Common Stock—The Company utilizes the closing stock price on the date of grant as the fair value of the common stock underlying such PSUs in the Monte Carlo simulation model.

The assumptions used to estimate the fair value of PSUs subject to the stock price hurdle are as follows:

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Risk-free interest rate

 

 

—

%

 

 

4.59

%

 

 

4.86

%

 

 

4.59

%

Contractual term (in years)

 

 

—

 

 

 

3.37

 

 

 

2.69

 

 

 

3.37

 

Expected volatility

 

 

—

%

 

 

80.00

%

 

 

85.00

%

 

 

80.00

%

Dividend yield

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 

The PSU activity is summarized in the following table, based on awards at target:

 

 

Number of
PSUs

 

 

Weighted
Average
Grant
Date Fair
Value

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Outstanding as of December 31, 2023

 

 

4,307,833

 

 

$

15.75

 

 

 

 

Granted

 

 

364,128

 

 

 

7.49

 

 

 

 

Forfeited

 

 

(834,328

)

 

 

15.56

 

 

 

 

Outstanding as of September 30, 2024

 

 

3,837,633

 

 

$

15.01

 

 

 

2.42

 

Expected to vest after September 30, 2024(1)

 

 

5,756,450

 

 

$

14.32

 

 

 

2.42

 
(1)
Represents the number of PSUs expected to vest, which may exceed the target number of shares, based on the Company's probability assessment of expected performance during the performance period.

Stock-Based Compensation Expense

Total stock-based compensation expense for stock option awards, RSUs, and PSUs, which are included in the condensed consolidated financial statements, is as follows (in thousands):

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of revenue

 

$

1,332

 

 

$

680

 

 

$

3,392

 

 

$

1,462

 

Research and development

 

 

13,907

 

 

 

9,534

 

 

 

37,840

 

 

 

21,168

 

Sales and marketing

 

 

2,929

 

 

 

2,000

 

 

 

8,157

 

 

 

3,523

 

General and administrative

 

 

6,399

 

 

 

4,763

 

 

 

18,218

 

 

 

12,396

 

Stock-based compensation, net of amounts capitalized

 

 

24,567

 

 

 

16,977

 

 

 

67,607

 

 

 

38,549

 

Capitalized stock-based compensation—Intangibles and fixed assets

 

 

1,468

 

 

 

1,116

 

 

 

4,214

 

 

 

2,711

 

Total stock-based compensation

 

$

26,035

 

 

$

18,093

 

 

$

71,821

 

 

$

41,260

 

Unrecognized Stock-Based Compensation

A summary of the Company's remaining unrecognized compensation expense and the weighted-average remaining amortization period as of September 30, 2024, related to its non-vested RSUs, PSUs, and stock option awards is presented below (in millions, except time period amounts):

 

 

 

Unrecognized
Expense

 

 

Weighted-
Average
Amortization
Period (Years)

 

Restricted stock units

 

$

128.4

 

 

 

2.8

 

Performance-based restricted stock units

 

 

56.9

 

 

 

2.4

 

Stock options

 

 

17.5

 

 

 

1.6

 

Employee Stock Purchase Plan

In August 2021, the Company’s board of directors adopted the Employee Stock Purchase Plan (the “ESPP”), which was subsequently approved by the Company’s stockholders in September 2021, and became effective upon the closing of the Business Combination. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the U.S. Internal Revenue Code of 1986, as amended (the “Code”). The number of shares of common stock initially reserved for issuance under the ESPP was 5,354,000 shares. The ESPP provides for an annual increase on January 1 of each year, beginning on January 1, 2022, and continuing through and including January 1, 2031, equal to the lesser of (i) 1% of the fully diluted shares of common stock outstanding on the last day of the prior fiscal year, (ii) 10,708,000 shares, or (iii) a lesser number of shares determined by the Company’s board of directors prior to such increase. The board of directors elected not to approve the annual increase of ESPP shares on January 1, 2024.

Under the terms of the ESPP, eligible employees can elect to acquire shares of the Company’s common stock through periodic payroll deductions during a series of offering periods. Purchases under the ESPP are affected on the last business day of each offering period at a 15% discount to the lower of closing price on that day or the closing price on the first day of the offering period. As of September 30, 2024, no shares of common stock had been issued under the ESPP and no offering period had been set by the board of directors.

v3.24.3
Income Taxes
 9 Months Ended
Sep. 30, 2024
Income Taxes

11. INCOME TAXES

Income tax expense was less than $0.1 million for each of the three and nine months ended September 30, 2024 and 2023, due to the Company's international operations. The effective tax rate for each period differs from the statutory rate primarily as a result of not recognizing a deferred tax asset for losses due to having a full valuation allowance against deferred tax assets.

The realization of tax benefits of deferred tax assets is dependent upon future levels of taxable income, of an appropriate character, in the periods the items are expected to be deductible or taxable. Based on the available objective evidence, the Company does not believe it is more likely than not that the net deferred tax assets will be realizable. Accordingly, the Company has provided a full valuation allowance against the net deferred tax assets as of September 30, 2024, and December 31, 2023. The Company intends to maintain the remaining valuation allowance until sufficient positive evidence exists to support a reversal of, or decrease in, the valuation allowance.

v3.24.3
Leases
 9 Months Ended
Sep. 30, 2024
Leases [Abstract]  
Leases

12. LEASES

The Company has operating leases for its various facilities, including its two primary locations in College Park, Maryland, and Bothell, Washington. The College Park, Maryland facility is used for research and development, servicing customers and corporate functions and is leased from the University of Maryland (“UMD”). The Bothell, Washington facility is used for manufacturing, research and development, and general office space. Both the College Park, Maryland, and Bothell, Washington, leases expire in 2030. As of September 30, 2024 and December 31, 2023, the Company's weighted-average remaining lease term was 5.5 years and 6.5 years, respectively, and the weighted-average discount rate was 8.2% and 9.0%, respectively.

The Bothell, Washington facility lease includes a landlord-provided tenant improvement allowance to offset a portion of the costs of the construction of leasehold improvements. The Company determined that the leasehold improvements will be Company-owned, and as such, reflected the lease incentive as a reduction of lease payments used to measure the operating lease liability and ROU asset as of the lease commencement date.

The components of lease cost were as follows (in thousands):

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating lease cost(1)

 

 

 

 

 

 

 

 

 

 

 

 

Fixed lease cost

 

$

672

 

 

$

365

 

 

$

1,846

 

 

$

1,085

 

Short-term cost

 

 

67

 

 

 

35

 

 

 

147

 

 

 

117

 

Total operating lease cost

 

$

739

 

 

$

400

 

 

$

1,993

 

 

$

1,202

 

 

(1)
The lease costs are reflected in the condensed consolidated statements of operations as follows (in thousands):

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of revenue

 

$

64

 

 

$

53

 

 

$

187

 

 

$

85

 

Research and development

 

 

461

 

 

 

129

 

 

 

1,198

 

 

 

462

 

Sales and marketing

 

 

60

 

 

 

22

 

 

 

116

 

 

 

51

 

General and administrative

 

 

154

 

 

 

196

 

 

 

492

 

 

 

604

 

Total operating lease cost

 

$

739

 

 

$

400

 

 

$

1,993

 

 

$

1,202

 

 

Supplemental cash flow and other information related to operating leases was as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash payments (receipts) included in the measurement of
   operating lease liabilities, net

 

$

(835

)

 

$

(616

)

 

$

(2,932

)

 

$

(284

)

 

As of September 30, 2024, maturities of operating lease liabilities are as follows (in thousands):

 

Amount

 

Year Ending December 31,

 

 

 

2024

 

$

801

 

2025

 

 

3,729

 

2026

 

 

4,260

 

2027

 

 

4,322

 

2028

 

 

4,422

 

Thereafter

 

 

5,470

 

Total lease payments

 

$

23,004

 

Less: imputed interest

 

 

(4,592

)

Less: lease incentives

 

 

(109

)

Present value of operating lease liabilities

 

$

18,303

 

v3.24.3
Related Party Transactions
 9 Months Ended
Sep. 30, 2024
Related Party Transaction [Line Items]  
Related Party Transactions

13. RELATED PARTY TRANSACTIONS

Transactions with University of Maryland

The Company has contracts with UMD, including contracts to provide certain quantum computing services and facility access, to provide customized quantum computing hardware, and an operating lease. Following the departure of the Company's Chief Scientist, UMD is no longer considered a related party as of January 1, 2024. Revenue recognized from contracts entered into while UMD was a related party was $0.8 million and $1.3 million for the three months ended September 30, 2024 and 2023, respectively, and $3.2 million and $3.3 million for the nine months ended September 30, 2024 and 2023, respectively.

The Company had the following balances related to contracts entered into while UMD was a related party, as reflected in the condensed consolidated balance sheets (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Operating lease right-of-use asset

 

$

3,207

 

 

$

3,452

 

Liabilities

 

 

 

 

 

 

Current portion of operating lease liabilities

 

$

676

 

 

$

661

 

Unearned revenue

 

 

436

 

 

 

2,670

 

Operating lease liabilities, net of current portion

 

 

2,932

 

 

 

3,181

 

Transactions with Duke University

In July 2016, the Company entered into an exclusive license agreement (the “License Agreement”) and an exclusive option agreement (the “Option Agreement”) with Duke whereby the Company, in the normal course of business, has licensed certain intellectual property and, in the case of the amendments to the Option Agreements, has purchased research and development services. Following the departure of the Company's Chief Technology Officer, Duke is no longer considered a related party as of July 1, 2024.

The Company has the following balances related to agreements entered into while Duke was a related party, as reflected in the condensed consolidated balance sheets (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Prepaid expenses and other current assets

 

$

520

 

 

$

520

 

Other noncurrent assets

 

 

415

 

 

 

805

 
v3.24.3
Subsequent Events
 9 Months Ended
Sep. 30, 2024
Subsequent Events [Abstract]  
Subsequent Events

14. SUBSEQUENT EVENTS

In November 2024, the Company entered into a definitive agreement to acquire substantially all of the assets of Qubitekk, Inc., a California-based leader in quantum networking, for $22.0 million, subject to certain adjustments, in an all-cash transaction. The acquisition is expected to close within the next six months, subject to the satisfaction of certain closing conditions.
v3.24.3
Summary of Significant Accounting Policies (Policies)
 9 Months Ended
Sep. 30, 2024
Significant Accounting Policies

Significant Accounting Policies

The Company’s significant accounting policies, which are disclosed in the audited financial statements for the year ended December 31, 2023, and the notes thereto are included in the Company’s Annual Report on Form 10-K (the “Annual Report”) that was filed with the Securities and Exchange Commission (“SEC”) on February 28, 2024. Since the date of that filing, there have been no material changes to the Company’s significant accounting policies except as noted below.

Basis of Preparation

Basis of Preparation

The accompanying condensed consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) as determined by the Financial Accounting Standards Board (“FASB”). Such condensed consolidated financial statements include the accounts of IonQ and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated in consolidation.

Unaudited Interim Financial Information

Unaudited Interim Financial Information

The interim condensed consolidated financial statements included in this Quarterly Report on Form 10-Q have been prepared by the Company and are unaudited, pursuant to the rules and regulations of the SEC. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. However, the Company believes that the disclosures contained in this Quarterly Report on Form 10-Q comply with the requirements of Section 13(a) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), for a quarterly report and are adequate to make the information presented not misleading. The interim condensed consolidated financial statements included herein reflect all adjustments (consisting of normal recurring adjustments) which are, in the opinion of management, necessary for a fair presentation of the financial position, results of operations and cash flows for the interim periods presented. These interim condensed consolidated financial statements should be read in conjunction with the financial statements and notes thereto for the year ended December 31, 2023, included in the Annual Report. The condensed consolidated statements of operations and the condensed consolidated statements of comprehensive loss for the three or nine months ended September 30, 2024, are not necessarily indicative of the results to be anticipated for the entire year ending December 31, 2024, or thereafter. All references to September 30, 2024 and 2023, in the notes to the condensed consolidated financial statements are unaudited.

Use of Estimates

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP and the rules and regulations of the SEC require management to make estimates and assumptions that affect the amounts reported in these condensed consolidated financial statements and accompanying notes.

Significant estimates and assumptions are inherent in the analysis and measurement of items including, but not limited to: standalone selling price for revenue arrangements with multiple performance obligations, total expected costs for revenue arrangements recognized over time, capitalization of quantum computing system costs, useful lives for quantum computing systems, and stock-based compensation for awards with performance and market conditions. Management bases its estimates and assumptions on historical experience, expectations, forecasts, and on various other factors that are believed to be reasonable under the circumstances. Due to the inherent uncertainty involved in making estimates, actual results reported in future periods may differ and be affected by changes in those estimates.

Foreign Currency

Foreign Currency

The reporting currency of the Company is the U.S. dollar. Financial statements of subsidiaries whose functional currency is not the U.S. dollar are translated at exchange rates in effect at the balance sheet date for assets and liabilities and at average exchange rates for revenues and expenses for the respective periods. Translation adjustments are recorded in accumulated other comprehensive loss in the condensed consolidated balance sheets.

The Company is exposed to foreign currency risk to the extent that it enters into transactions denominated in currencies other than its subsidiaries’ respective functional currencies. Transactions denominated in currencies other than subsidiaries’ functional currencies are recorded based on exchange rates at the time such transactions arise. Changes in exchange rates with respect to amounts recorded in the Company’s condensed consolidated balance sheets related to these items will result in unrealized foreign currency transaction gains and losses based upon period-end exchange rates. The Company also records realized foreign currency transaction gains and losses upon settlement of the transactions. Foreign currency transaction gains and losses resulting from the conversion of the transaction currency to functional currency are included in other income (expense), net in the condensed consolidated statements of operations.
Fair Value Measurements

Fair Value Measurements

The Company evaluates the fair value of certain assets and liabilities using the fair value hierarchy. Fair value is an exit price representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:

•
Level 1—Observable inputs, which include quoted prices in active markets;
•
Level 2—Observable inputs other than the quoted prices in active markets that are observable either directly or indirectly, such as quoted prices in markets that are not active, or other inputs such as broker quotes, benchmark yield curves, credit spreads and market interest rates for similar securities that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities;
•
Level 3—Unobservable inputs that are supported by little or no market activity and that are based on management’s assumptions, including fair value measurements determined using pricing models, discounted cash flow methodologies or similar techniques.

The Company’s assessment of the significance of a particular input to the fair value measurements requires judgment and may affect the valuation of the assets and liabilities being measured and their placement within the fair value hierarchy.

For assets that are measured using quoted prices in active markets, the total fair value is the published market price per unit multiplied by the number of units held, without consideration of transaction costs. Assets and liabilities that are measured using significant other observable inputs are primarily valued by reference to quoted prices of similar assets or liabilities in active markets, adjusted for any terms specific to that asset or liability.

Assets and liabilities that are measured at fair value on a non-recurring basis include property and equipment, intangible assets, and goodwill. The Company recognizes these items at fair value when they are considered to be impaired or upon initial recognition when acquired through a business combination or an asset acquisition. The fair value of these assets and liabilities are determined with valuation techniques using the best information available and may include quoted market prices, market comparables and discounted cash flow models.

Due to their short-term nature, the carrying amounts reported in the Company’s condensed consolidated financial statements approximate the fair value for cash and cash equivalents, accounts receivable, accounts payable and accrued expenses.

Cash, Cash Equivalents and Restricted Cash

Cash, Cash Equivalents and Restricted Cash

Cash and cash equivalents include cash in banks, checking deposits, money market funds, and U.S. government and agency securities. The Company considers all short-term highly liquid investments with an original maturity at the date of purchase of three months or less to be cash equivalents. Restricted cash for collateralizing letters of credit and corporate credit cards is included in other noncurrent assets in the condensed consolidated balance sheets. The Company issues letters of credit in the ordinary course of business, including for lease arrangements. As of September 30, 2024 and December 31, 2023, letters of credit totaling $2.1 million were outstanding.

The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets to the amounts included in the condensed consolidated statements of cash flows (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Cash and cash equivalents

 

$

30,172

 

 

$

35,665

 

Restricted cash

 

 

2,438

 

 

 

2,416

 

Total cash, cash equivalents and restricted cash in the condensed
   consolidated statements of cash flows

 

$

32,610

 

 

$

38,081

 
Accounts Receivable and Allowance for Credit Losses

Accounts Receivable and Allowance for Credit Losses

Accounts receivable are non-interest bearing and represent amounts billed and currently due from customers at the gross invoiced amount as well as unbilled amounts related to unconditional rights for consideration to be received for services performed but not yet invoiced. A receivable is recorded when the Company has an unconditional right to receive payment. Accounts receivable consists of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Billed accounts receivable

 

$

3,265

 

 

$

8,564

 

Unbilled accounts receivable

 

 

872

 

 

 

2,903

 

Total accounts receivable

 

$

4,137

 

 

$

11,467

 

 

On a periodic basis, management evaluates its accounts receivable and determines whether to provide an allowance for credit losses. This assessment is based on management’s evaluation of relevant information about past events, including historical experience, current conditions and reasonable and supportable forecasts that affect the collectability of the receivable.

The Company did not have any allowance for credit losses as of either September 30, 2024 or December 31, 2023.

Materials and Supplies, Net

Materials and Supplies, Net

Materials and supplies are carried at average cost and recorded in prepaid expenses and other current assets in the condensed consolidated balance sheets. Materials and supplies used in the production of quantum computing systems to be made commercially available are capitalized to property and equipment when installed. Materials and supplies used for maintenance, research and development efforts or to service customer contracts are expensed when consumed. The Company capitalized $1.9 million and $0.9 million of materials and supplies to property and equipment for the three months ended September 30, 2024 and 2023, respectively, and $4.5 million and $3.1 million of materials and supplies to property and equipment for the nine months ended September 30, 2024 and 2023, respectively.

Materials and supplies are evaluated regularly for excess quantities and obsolescence. This evaluation includes analysis of the Company's current and future strategic plans, risk of technological obsolescence, and general market conditions. During the three and nine months ended September 30, 2024, excess and obsolescence charges were $1.0 million and $1.1 million, respectively. There were no excess and obsolescence charges during either of the three or nine months ended September 30, 2023.
Investments

Investments

Management determines the appropriate classification of investments at the time of purchase based upon management’s intent with regard to such investments. The Company primarily invests in debt securities and classifies its investments as available-for-sale at the time of purchase if they are available to support either current or future operations. This classification is re-evaluated at each balance sheet date. Investments not

considered cash equivalents, with remaining contractual maturities of one year or less from the balance sheet date are classified as short-term investments, and those with remaining contractual maturities greater than one year from the balance sheet date are classified as long-term investments. All investments are recorded at their estimated fair value, and any unrealized gains and losses are recorded in the condensed consolidated balance sheets in accumulated other comprehensive loss. Realized gains and losses on sales and maturities of investments are determined based on the specific identification method and are recognized in the condensed consolidated statements of operations in other income (expense), net. Accrued interest receivable on available-for-sale investments is recorded in the condensed consolidated balance sheets in prepaid expenses and other current assets.

The Company performs periodic evaluations to determine whether any declines in the fair value of investments below amortized cost are credit losses or impairments. The evaluation consists of qualitative and quantitative factors regarding the severity of the unrealized loss, as well as the Company’s ability and intent to hold the investments until a forecasted recovery occurs. Declines in fair value are considered to be credit losses if they are related to deterioration in credit risk or are considered impairments if it is likely that the underlying securities will be sold prior to a full recovery of their cost basis. Credit losses and impairments are determined based on the specific identification method and are reported in other income (expense), net in the condensed consolidated statements of operations.

Property and Equipment, Net

Property and Equipment, Net

Property and equipment, net is stated at cost less accumulated depreciation. Historical cost of fixed assets is the cost as of the date acquired. Hardware and labor costs associated with the building of quantum computing systems are capitalized in the period the costs are incurred when it is probable that the system will provide future economic benefit. The costs of quantum computing systems that are used in research and development activities and have alternative future uses are capitalized. Costs to maintain quantum computing systems are expensed as incurred.

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Useful lives are as follows:

 

Computer equipment and acquired computer software

 

3 – 5 years

Machinery, equipment, furniture and fixtures

 

4 – 7 years

Quantum computing systems

 

3 years

Leasehold improvements

 

Shorter of the lease term or the estimated useful life of the related asset

 

The Company evaluates the useful life of its assets periodically and whenever events or changes in circumstances indicate that the useful life may have changed. In assessing useful lives, the Company considers, among other factors, the use of the asset, changes in technology, and the competitive environment.
Leases

Leases

The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets and current operating lease liabilities and operating lease liabilities, net of current portion on the Company’s condensed consolidated balance sheets. As of September 30, 2024, the Company has no financing lease arrangements. The Company recognizes lease expense for its operating leases on a straight-line basis over the term of the lease.

The Company records a ROU asset and lease liability in connection with its operating leases. The Company’s lease portfolio is comprised primarily of real estate leases, which are accounted for as operating leases. The Company elected the practical expedient to not separate lease and non-lease components for all leases.

ROU assets and lease liabilities are recognized at the lease commencement date based on the present value of the future minimum lease payments, including the impact of any lease incentives, as applicable, over the lease term. An amendment to a lease is assessed to determine if it represents a lease modification or a separate contract. Lease modifications are reassessed as of the effective date of the modification using an incremental borrowing rate based on the information available at the commencement date. For modified leases the Company also reassesses the lease classification as of the effective date of the modification.

The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.

The Company’s lease terms include periods under options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. The Company considers contractual-based factors such as the nature and terms of the renewal or termination, asset-based factors such as physical location of the asset and entity-based factors such as the importance of the leased asset to the Company’s

operations to determine the lease term. The Company generally uses the base non-cancelable lease term when determining the ROU assets and lease liabilities.

Software Development Costs

Software Development Costs

The Company incurs software development costs for internal-use software, which the Company primarily uses to provide services to its customers, as well as for external-use software that will be part of a product to be sold, leased, or marketed.

Internal-Use Software

The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended, until the time the software is placed in service for its intended use. Any costs incurred during subsequent efforts to upgrade and enhance the functionality of the software are also capitalized. Once this software is ready for its intended use, these costs are amortized on a straight-line basis over the estimated useful life of the software, which is typically assessed to be three years. Capitalized internal-use software is recorded within intangible assets, net, in the condensed consolidated balance sheets. During the three months ended September 30, 2024 and 2023, the Company capitalized $1.7 million and $2.0 million in internal-use software costs, respectively, and during the nine months ended September 30, 2024 and 2023, the Company capitalized $5.5 million and $5.3 million, respectively. The Company amortized $1.4 million and $0.8 million of capitalized internal-use software costs during the three months ended September 30, 2024 and 2023, respectively, and $3.8 million and $1.9 million of capitalized internal-use software costs during the nine months ended September 30, 2024 and 2023, respectively.

External-Use Software

Costs incurred in researching and developing external-use software are expensed as incurred until technological feasibility is established. Once technological feasibility is established, software costs are capitalized until the product is available for general release to customers. Judgment is required in determining when technological feasibility of a product is established. Generally, this occurs shortly before the products are released to production. No external-use software costs were capitalized during any of the three or nine months ended September 30, 2024 and 2023.
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

Long-lived assets, such as property and equipment and other long-term assets, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. If circumstances require a long-lived asset or asset group be tested for possible impairment, the Company first compares undiscounted cash flows expected to be generated by that asset or asset group to its carrying amount. If the carrying amount of the long-lived asset or asset group is not recoverable on an undiscounted cash flow basis, an impairment is recognized to the extent the carrying amount of the underlying asset exceeds its fair value. No impairment loss was recognized for any of the three or nine months ended September 30, 2024 and 2023.

Warrant Liabilities

Warrant Liabilities

The Company evaluates its financial instruments to determine if such instruments are derivatives or contain features that qualify as embedded derivatives in accordance with ASC Topic 815, “Derivatives and Hedging.” For derivative financial instruments that are accounted for as liabilities, the derivative instrument is initially recorded at its fair value on the grant date and is then re-valued upon exercise or at each reporting date for the unexercised warrants, with changes in the fair value reported in the condensed consolidated statements of operations. The classification of derivative instruments, including whether such instruments should be recorded as liabilities or as equity, is evaluated at the end of each reporting period. The warrants of dMY assumed in the Business Combination are classified as liabilities and remeasured at each reporting period. Derivative warrant liabilities are classified as non-current liabilities as their liquidation is not reasonably expected to require the use of current assets or require the creation of current liabilities.

Revenue Recognition

Revenue Recognition

The Company derives revenue from the design, development, and construction of specialized quantum computing hardware together with related services, from providing access to its quantum-computing-as-a-service (“QCaaS” or “Platform” services), and from consulting services related to co-developing algorithms on the quantum computing systems. The Company applies the provisions of the FASB Accounting Standards Update (“ASU”), Revenue from Contracts with Customers (“ASC 606”), and all related applicable guidance. The core principle of ASC 606 is that an entity shall recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services.

To support this core principle, the Company applies the following five step approach:

1.
Identify the contract with the customer
2.
Identify the performance obligations
3.
Determine the transaction price
4.
Allocate the transaction price to the performance obligations
5.
Recognize revenue when (or as) the entity satisfies a performance obligation

Certain of the Company’s contracts contain multiple performance obligations, most commonly in contracts for the sale of specialized quantum computing hardware together with related maintenance and support. Such contracts may also include access to the Company’s QCaaS. A contract’s transaction price is allocated to each distinct performance obligation and recognized as revenue when or as the performance obligation is satisfied. When there are multiple performance obligations in a contract, the Company allocates the transaction price to each performance obligation based on its standalone selling price when available. The Company determines standalone selling price based on the observable price of a product or service when it sells the products or services separately in similar circumstances and to similar customers. Certain products and services have limited or no history of being sold on a standalone basis, requiring the Company to estimate the standalone selling price. To date, the Company has estimated the standalone selling price based on other contracts for similar products and services adjusted for differing terms than the contract being evaluated, as well as internal pricing guidelines and market factors. In addition, the Company takes into consideration the estimated costs to be incurred to satisfy the performance obligation plus an appropriate profit margin. In limited situations, for certain contracts executed in prior years, when the standalone selling price was not known, due to it being either highly variable or uncertain, the Company allocated the transaction price using the residual approach.

The Company has determined that its QCaaS contracts represent a combined, stand-ready performance obligation to provide access to its quantum computing systems together with related maintenance and support. The transaction price generally consists of a fixed fee for a minimum volume of usage to be made available over a defined period of access. Fixed fee arrangements may also include a variable component whereby customers pay an amount for usage over contractual minimums contained in the contracts. The Company has determined that contracts that contain consulting services related to co-developing quantum computing algorithms and the ability to use its quantum computing systems to run such algorithms represent a combined performance obligation that is satisfied over-time.

Performance obligations are satisfied over time if the customer receives the benefits as the Company performs the work, if the customer controls the asset as it is being produced (continuous transfer of control), or if the product being produced for the customer has no alternative use and the Company has a contractual right to payment for performance to date. For performance obligations related to specialized quantum computing hardware and consulting services, revenue is recognized over time based on the efforts incurred to date relative to the total expected effort, primarily based on a cost-to-cost input measure. The Company applies judgment to determine a reasonable method to measure progress and to estimate total expected effort. Factors considered in these estimates include the Company's historical performance, the availability, productivity and cost of labor, the nature and complexity of work to be performed, the effect of change orders, availability and cost of materials, and the effect of any delays in performance. For performance obligations related to providing QCaaS access, fixed fees are recognized on a straight-line basis over the access period.

For the three and nine months ended September 30, 2024 and 2023, substantially all revenue was recognized based on transfer of service over time. Revenues recognized at a point in time were not material. In arrangements with cloud service providers, the cloud service provider is considered the customer and IonQ does not have any contractual relationships with the cloud service providers’ end users. For these arrangements, revenue is recognized at the amount charged to the cloud service provider and does not reflect any mark-up to the end user.

The Company may enter into multiple contracts with a single counterparty at or near the same time. The Company will combine contracts and account for them as a single contract when one or more of the following criteria are met: (i) the contracts are negotiated as a package with a single commercial objective; (ii) consideration to be paid in one contract depends on the price or performance of the other contract; and (iii) goods or services promised are a single performance obligation. Consideration payable to a customer includes cash amounts that an entity pays, or expects to pay, to the customer. For arrangements that contain consideration payable to a customer, the Company uses judgment in determining whether such payments are a reduction of the transaction price or a payment to the customer for a distinct good or service.

The variable fees associated with the QCaaS are generally billed a month in arrears. Customers also have the ability to make advance payments. If a contract exists under ASC 606, advance payments are recorded as a contract liability until services are delivered or obligations are

met and revenue is earned. Contract liabilities to be recognized in the succeeding 12-month period are classified as current and the remaining amounts are classified as non-current liabilities in the Company’s condensed consolidated balance sheets.

Assets Recognized from Costs to Obtain a Contract

Sales commissions paid to employees and third parties are considered incremental costs to obtain a contract with a customer. These costs are capitalized in the period a customer contract is executed and are amortized as an expense consistent with the transfer of the goods or services to the customer. Capitalized costs are recorded in prepaid expenses and other current assets and other noncurrent assets in the condensed consolidated balance sheets. Applying the practical expedient, the Company recognizes the incremental costs of obtaining contracts as an expense when incurred if the amortization period of the assets is one year or less. As of September 30, 2024 and December 31, 2023, total capitalized costs were $5.3 million and $2.8 million, respectively. Amortization expense was $0.4 million and $0.2 million for the three months ended September 30, 2024 and 2023, respectively, and $1.3 million and $0.5 million for the nine months ended September 30, 2024 and 2023, respectively, and is included in sales and marketing in the condensed consolidated statements of operations.

Research and Development

Research and Development

Research and development expenses consist of personnel-related costs, including salaries, benefits and stock-based compensation expense, and allocated shared resource costs for the Company’s hardware, software and engineering personnel who design and develop the Company’s quantum computing systems and research new quantum computing technologies. Unlike a standard computer, design and development efforts continue throughout the useful life of the Company’s quantum computing systems to ensure proper calibration and optimal functionality. Research and development expenses also include purchased hardware and software costs related to quantum computing systems constructed for research purposes that are not probable of providing future economic benefit and have no alternate future use, as well as costs associated with third-party research and development arrangements.

Under an agreement with Duke University (“Duke”), the Company issued common shares to Duke in consideration for research and development services through July 15, 2026. The agreement is considered a research and development service arrangement and is recorded as a prepayment based on the fair value of the common stock issued and is amortized over the term of the arrangement as services are received and is recognized in research and development in the condensed consolidated statements of operations.

Stock-Based Compensation

Stock-Based Compensation

The Company measures and records the expense related to stock-based awards based on the fair value of those awards as determined on the date of grant. The Company recognizes stock-based compensation expense over the requisite service period of the individual grant, generally equal to the vesting period and uses the straight-line method to recognize stock-based compensation. The Company uses the Black-Scholes-Merton (“Black-Scholes”) option-pricing model to determine the estimated fair value for stock options. The Black-Scholes option-pricing model requires the use of subjective assumptions, which determine the fair value of stock option awards, including the option’s expected term, the price volatility of the underlying common stock, risk-free interest rates, and the expected dividend yield of the common stock. The assumptions used to determine the fair value of the stock options represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The Company records forfeitures as they occur.

Stock-based compensation cost for restricted stock units and performance-based restricted stock units is measured based on the fair value of the Company’s common stock on the grant date. The fair value of performance-based restricted stock units with a market condition is estimated on the date of grant using the Monte Carlo simulation model. The Monte Carlo simulation model requires the use of subjective assumptions, which determine the fair value of these awards, including price volatility, contractual term, discount rate, risk-free interest rates, and the expected dividend yield of the common stock. The assumptions used to determine the fair value of the performance-based restricted stock awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. For awards with a performance-based vesting condition, including those with a market condition, the Company records stock-based compensation cost if it is probable that the performance conditions will be achieved. Stock-based compensation cost will be recognized if the performance condition is satisfied, even if the market condition is not met and the award does not vest. At each reporting period, the Company reassesses the probability of the achievement of the performance conditions and any change in expense resulting from an adjustment in the estimated shares to be released is treated as a cumulative catch-up in the period of the adjustment.

The Company records stock-based compensation expense for incentive compensation liabilities based on estimated payments to employees for which the Company expects to settle the liability by granting restricted stock units. For these awards, stock-based compensation expense is accrued commencing at the service inception date, which generally precedes the grant date, through the end of the requisite service period.

Concentrations of Credit Risk

Concentrations of Credit Risk

Financial instruments that potentially subject the Company to concentrations of credit risk consist primarily of cash, cash equivalents, restricted cash, investments, and trade accounts receivable. The Company maintains the majority of its cash, cash equivalents, restricted cash and investments with three financial institutions. The Company’s deposits routinely exceed amounts guaranteed by the Federal Deposit Insurance Corporation.

The Company’s accounts receivable are derived from customers primarily located in the U.S. The Company performs periodic evaluations of its customers’ financial condition and generally does not require its customers to provide collateral or other security to support accounts receivable and maintains an allowance for credit losses. Credit losses historically have not been material.

Significant customers are those that represent more than 10% of the Company’s total revenue. For the three and nine months ended September 30, 2024, the Company had two significant customers that accounted for 84% and 79% of total revenue, respectively. For the three and nine months ended September 30, 2023, the Company had three and two significant customers, respectively, that accounted for 68% and 58% of total revenue, respectively.

Earnings (Loss) Per Share

Earnings (Loss) Per Share

Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted-average number of shares of common stock outstanding for the period. Diluted earnings per share is computed by dividing net income (loss) by the weighted average number of shares of common stock during the period, plus common stock equivalents, outstanding during the period. If the Company reports a net loss, the computation of diluted loss per share excludes the effect of dilutive common stock equivalents, as their effect would be antidilutive.

The following table sets forth the computation of basic and diluted loss per share attributable to common stockholders (in thousands, except share and per share data):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

Numerator:

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss attributable to common stockholders

 

$

(52,496

)

 

$

(44,811

)

 

$

(129,649

)

 

$

(115,867

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss
   per share attributable to common stockholders—
   basic and diluted

 

 

214,305,053

 

 

 

203,390,383

 

 

 

211,378,045

 

 

 

201,656,916

 

Net loss per share attributable to common
   stockholders—basic and diluted

 

$

(0.24

)

 

$

(0.22

)

 

$

(0.61

)

 

$

(0.57

)

 

In periods with a reported net loss, the effect of stock options, warrants, unvested restricted stock units, unvested performance-based restricted stock units, and unvested common stock (including unvested restricted common stock) are excluded and diluted loss per share is equal to basic loss per share. The following is a summary of the weighted average common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Common stock options outstanding

 

 

18,693,271

 

 

 

23,443,324

 

 

 

19,715,840

 

 

 

23,952,845

 

Warrants to purchase common stock

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

Public warrants

 

 

5,228,253

 

 

 

5,231,164

 

 

 

5,228,253

 

 

 

5,231,378

 

Unvested restricted stock units

 

 

16,087,407

 

 

 

15,749,472

 

 

 

16,478,732

 

 

 

13,009,874

 

Unvested performance-based restricted stock units

 

 

1,918,817

 

 

 

—

 

 

 

1,970,331

 

 

 

—

 

Unvested common stock

 

 

283,401

 

 

 

591,771

 

 

 

331,546

 

 

 

717,112

 

Total

 

 

50,512,351

 

 

 

53,316,933

 

 

 

52,025,904

 

 

 

51,212,411

 
Recently Issued Accounting Standards Not Yet Adopted

Recently Issued Accounting Standards Not Yet Adopted

In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU 2023-07 is effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Adoption of ASU 2023-07 should be applied on a retrospective basis, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvement to Income Tax Disclosures to enhance the transparency and decision usefulness of income tax disclosures. ASU 2023-09 is effective for annual periods beginning after December 15, 2024, on a prospective basis, with early adoption permitted. The Company is currently evaluating the impact of this accounting standard update on its consolidated financial statements and related disclosures.
v3.24.3
Summary of Significant Accounting Policies (Tables)
 9 Months Ended
Sep. 30, 2024
Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of cash, cash equivalents and restricted cash included in the condensed consolidated balance sheets to the amounts included in the condensed consolidated statements of cash flows (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Cash and cash equivalents

 

$

30,172

 

 

$

35,665

 

Restricted cash

 

 

2,438

 

 

 

2,416

 

Total cash, cash equivalents and restricted cash in the condensed
   consolidated statements of cash flows

 

$

32,610

 

 

$

38,081

 
Summary of Loans and Financing Receivable Accounts receivable consists of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Billed accounts receivable

 

$

3,265

 

 

$

8,564

 

Unbilled accounts receivable

 

 

872

 

 

 

2,903

 

Total accounts receivable

 

$

4,137

 

 

$

11,467

 
Summary of Property Plant And Equipment Useful Life

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets. Useful lives are as follows:

 

Computer equipment and acquired computer software

 

3 – 5 years

Machinery, equipment, furniture and fixtures

 

4 – 7 years

Quantum computing systems

 

3 years

Leasehold improvements

 

Shorter of the lease term or the estimated useful life of the related asset
Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted loss per share attributable to common stockholders (in thousands, except share and per share data):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

Numerator:

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Net loss attributable to common stockholders

 

$

(52,496

)

 

$

(44,811

)

 

$

(129,649

)

 

$

(115,867

)

Denominator:

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares used in computing net loss
   per share attributable to common stockholders—
   basic and diluted

 

 

214,305,053

 

 

 

203,390,383

 

 

 

211,378,045

 

 

 

201,656,916

 

Net loss per share attributable to common
   stockholders—basic and diluted

 

$

(0.24

)

 

$

(0.22

)

 

$

(0.61

)

 

$

(0.57

)
Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share The following is a summary of the weighted average common stock equivalents for the securities outstanding during the respective periods that have been excluded from the computation of diluted net loss per common share:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Common stock options outstanding

 

 

18,693,271

 

 

 

23,443,324

 

 

 

19,715,840

 

 

 

23,952,845

 

Warrants to purchase common stock

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

 

 

8,301,202

 

Public warrants

 

 

5,228,253

 

 

 

5,231,164

 

 

 

5,228,253

 

 

 

5,231,378

 

Unvested restricted stock units

 

 

16,087,407

 

 

 

15,749,472

 

 

 

16,478,732

 

 

 

13,009,874

 

Unvested performance-based restricted stock units

 

 

1,918,817

 

 

 

—

 

 

 

1,970,331

 

 

 

—

 

Unvested common stock

 

 

283,401

 

 

 

591,771

 

 

 

331,546

 

 

 

717,112

 

Total

 

 

50,512,351

 

 

 

53,316,933

 

 

 

52,025,904

 

 

 

51,212,411

 
v3.24.3
Cash, Cash Equivalents, Restricted Cash And Investments (Tables)
 9 Months Ended
Sep. 30, 2024
Cash and Cash Equivalents [Abstract]  
Summary of Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Investments

The following table summarizes the Company’s unrealized gains and losses and estimated fair value of cash, cash equivalents, restricted cash and investments in available-for-sale securities recorded in the condensed consolidated balance sheets (in thousands):

 

 

As of September 30, 2024

 

 

As of December 31, 2023

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Estimated
Fair
Value

 

Cash and money market funds

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

 

$

25,131

 

 

$

—

 

 

$

—

 

 

$

25,131

 

Commercial paper

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

16,374

 

 

 

—

 

 

 

(14

)

 

 

16,360

 

Corporate notes and bonds

 

 

67,545

 

 

 

47

 

 

 

(226

)

 

 

67,366

 

 

 

176,793

 

 

 

38

 

 

 

(1,854

)

 

 

174,977

 

Municipal bonds

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

4,990

 

 

 

—

 

 

 

(43

)

 

 

4,947

 

US government and agency

 

 

284,733

 

 

 

638

 

 

 

(68

)

 

 

285,303

 

 

 

237,015

 

 

 

311

 

 

 

(395

)

 

 

236,931

 

Total cash, cash equivalents,
   restricted cash and
   investments

 

$

384,888

 

 

$

685

 

 

$

(294

)

 

$

385,279

 

 

$

460,303

 

 

$

349

 

 

$

(2,306

)

 

$

458,346

 
Summary of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value The following tables present information about the Company’s investments in available-for-sale securities with gross unrealized losses and the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2024 and December 31, 2023 (in thousands):

 

 

As of September 30, 2024

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Loses

 

Corporate notes and bonds

 

$

—

 

 

$

—

 

 

$

56,462

 

 

$

(226

)

 

$

56,462

 

 

$

(226

)

US government and agency

 

 

23,646

 

 

 

(17

)

 

 

19,889

 

 

 

(51

)

 

 

43,535

 

 

 

(68

)

Total

 

$

23,646

 

 

$

(17

)

 

$

76,351

 

 

$

(277

)

 

$

99,997

 

 

$

(294

)

 

 

As of December 31, 2023

 

 

Less than 12 Months

 

 

12 Months or Longer

 

 

Total

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Losses

 

 

Fair Value

 

 

Gross Unrealized
Loses

 

Commercial paper

 

$

16,360

 

 

$

(14

)

 

$

—

 

 

$

—

 

 

$

16,360

 

 

$

(14

)

Corporate notes and bonds

 

 

11,074

 

 

 

(58

)

 

 

151,174

 

 

 

(1,796

)

 

 

162,248

 

 

 

(1,854

)

Municipal bonds

 

 

—

 

 

 

—

 

 

 

4,947

 

 

 

(43

)

 

 

4,947

 

 

 

(43

)

US government and agency

 

 

109,540

 

 

 

(192

)

 

 

24,795

 

 

 

(203

)

 

 

134,335

 

 

 

(395

)

Total

 

$

136,974

 

 

$

(264

)

 

$

180,916

 

 

$

(2,042

)

 

$

317,890

 

 

$

(2,306

)
Schedule of Contractual Maturity Date of Cash Cash Equivalents, Restricted Cash and Investments in Available-for-Sale Securities

The estimated fair value of the Company’s cash, cash equivalents, restricted cash and investments in available-for-sale securities as of September 30, 2024, aggregated by investment category and classified by contractual maturity date, is as follows (in thousands):

 

 

1 Year
or Less

 

 

Greater than
1 Year

 

 

Total

 

Cash and money market funds

 

$

30,205

 

 

$

2,405

 

 

$

32,610

 

Corporate notes and bonds

 

 

63,930

 

 

 

3,436

 

 

 

67,366

 

US government and agency

 

 

271,608

 

 

 

13,695

 

 

 

285,303

 

Total

 

$

365,743

 

 

$

19,536

 

 

$

385,279

 

 
v3.24.3
Fair Value Measurement (Tables)
 9 Months Ended
Sep. 30, 2024
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]  
Summary of fair value measurements on a recurring basis and the level of inputs

The Company’s financial assets and liabilities subject to fair value measurements on a recurring basis and the level of inputs used for such measurements were as follows (in thousands):

 

 

Fair Value Measured as of

 

 

 

September 30, 2024

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

Total cash, cash equivalents and restricted cash

 

$

32,610

 

 

$

—

 

 

$

—

 

 

$

32,610

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

63,930

 

 

 

—

 

 

 

63,930

 

US government and agency

 

 

—

 

 

 

271,608

 

 

 

—

 

 

 

271,608

 

Total short-term investments

 

$

—

 

 

$

335,538

 

 

$

—

 

 

$

335,538

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

3,436

 

 

 

—

 

 

 

3,436

 

US government and agency

 

 

—

 

 

 

13,695

 

 

 

—

 

 

 

13,695

 

Total long-term investments

 

$

—

 

 

$

17,131

 

 

$

—

 

 

$

17,131

 

Total Assets

 

$

32,610

 

 

$

352,669

 

 

$

—

 

 

$

385,279

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

11,607

 

 

$

—

 

 

$

—

 

 

$

11,607

 

 

 

Fair Value Measured as of

 

 

 

December 31, 2023

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Total

 

Assets

 

 

 

 

 

 

 

 

 

 

 

 

Cash, cash equivalents and restricted cash:

 

 

 

 

 

 

 

 

 

 

 

 

Cash and money market funds(1)

 

$

25,131

 

 

$

—

 

 

$

—

 

 

$

25,131

 

US government and agency

 

 

—

 

 

 

12,950

 

 

 

—

 

 

 

12,950

 

Total cash, cash equivalents and restricted cash

 

$

25,131

 

 

$

12,950

 

 

$

—

 

 

$

38,081

 

Short-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Commercial paper

 

 

—

 

 

 

16,360

 

 

 

—

 

 

 

16,360

 

Corporate notes and bonds

 

 

—

 

 

 

130,423

 

 

 

—

 

 

 

130,423

 

Municipal bonds

 

 

—

 

 

 

4,947

 

 

 

—

 

 

 

4,947

 

US government and agency

 

 

—

 

 

 

168,046

 

 

 

—

 

 

 

168,046

 

Total short-term investments

 

$

—

 

 

$

319,776

 

 

$

—

 

 

$

319,776

 

Long-term investments:

 

 

 

 

 

 

 

 

 

 

 

 

Corporate notes and bonds

 

 

—

 

 

 

44,554

 

 

 

—

 

 

 

44,554

 

US government and agency

 

 

—

 

 

 

55,935

 

 

 

—

 

 

 

55,935

 

Total long-term investments

 

$

—

 

 

$

100,489

 

 

$

—

 

 

$

100,489

 

Total Assets

 

$

25,131

 

 

$

433,215

 

 

$

—

 

 

$

458,346

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

Public warrants

 

$

23,004

 

 

$

—

 

 

$

—

 

 

$

23,004

 

 

(1)
Includes money market funds associated with the Company’s overnight investment sweep account and cash collateralizing the Company's letter of credit and corporate credit cards.
v3.24.3
Property And Equipment, Net (Tables)
 9 Months Ended
Sep. 30, 2024
Property, Plant and Equipment [Abstract]  
Summary Of Property And Equipment, Net

Property and equipment, net is composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Computer equipment and acquired computer software

 

$

5,968

 

 

$

4,537

 

Machinery, equipment, furniture and fixtures

 

 

13,821

 

 

 

9,238

 

Leasehold improvements

 

 

17,717

 

 

 

10,043

 

Quantum computing systems

 

 

35,622

 

 

 

28,296

 

Gross property and equipment

 

 

73,128

 

 

 

52,114

 

Less: accumulated depreciation

 

 

(23,674

)

 

 

(14,599

)

Total property and equipment, net

 

$

49,454

 

 

$

37,515

 
v3.24.3
Other Balance Sheet Accounts (Tables)
 9 Months Ended
Sep. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Summary of Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets are composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Materials and supplies

 

$

17,949

 

 

$

12,476

 

Prepaid expenses

 

 

3,102

 

 

 

5,696

 

Accrued interest receivable

 

 

2,194

 

 

 

2,109

 

Other current assets

 

 

2,308

 

 

 

2,800

 

Total prepaid expenses and other current assets

 

$

25,553

 

 

$

23,081

 
Summary of accrued expenses

Accrued expenses are composed of the following (in thousands):

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Accrued salaries and other payroll liabilities

 

$

12,477

 

 

$

15,950

 

Accrued professional services

 

 

1,723

 

 

 

605

 

Accrued equipment and services liabilities for research and development

 

 

176

 

 

 

112

 

Accrued expenses—other

 

 

1,281

 

 

 

1,709

 

Total accrued expenses

 

$

15,657

 

 

$

18,376

 
v3.24.3
Revenue (Tables)
 9 Months Ended
Sep. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue Disaggregated by Revenue

The Company's revenues disaggregated by revenue source is as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Specialized quantum computing hardware

 

$

6,345

 

 

$

2,006

 

 

$

17,301

 

 

$

5,331

 

Platform, consulting and support services

 

 

6,055

 

 

 

4,130

 

 

 

14,062

 

 

 

10,605

 

Total revenue

 

$

12,400

 

 

$

6,136

 

 

$

31,363

 

 

$

15,936

 

 

The Company's revenues disaggregated by customer location is as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

United States

 

$

11,895

 

 

$

5,037

 

 

$

29,910

 

 

$

13,575

 

International

 

 

505

 

 

 

1,099

 

 

 

1,453

 

 

 

2,361

 

Total revenue

 

$

12,400

 

 

$

6,136

 

 

$

31,363

 

 

$

15,936

 
Summary of Changes in Unearned Revenue

The following table summarizes the changes in unearned revenue for the nine months ended September 30, 2024 (in thousands):

 

 

Total

 

Balance as of December 31, 2023

 

$

12,534

 

Revenue recognized

 

 

(11,091

)

New deferrals, net

 

 

6,949

 

Balance as of September 30, 2024

 

$

8,392

 
v3.24.3
Stock-Based Compensation (Tables)
 9 Months Ended
Sep. 30, 2024
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Summary of the Stock Option Activity

The stock option activity is summarized in the following table:

 

 

Number of
Option
Shares

 

 

Weighted
Average
Exercise
Price

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

 

Aggregate
Intrinsic
Value
(in millions)

 

Outstanding as of December 31, 2023

 

 

21,664,377

 

 

$

2.26

 

 

 

 

 

 

 

Granted

 

 

52,640

 

 

 

11.24

 

 

 

 

 

 

 

Exercised

 

 

(3,417,286

)

 

 

0.96

 

 

 

 

 

 

 

Cancelled/ Forfeited

 

 

(87,631

)

 

 

4.03

 

 

 

 

 

 

 

Outstanding as of September 30, 2024

 

 

18,212,100

 

 

$

2.52

 

 

 

5.70

 

 

$

118.34

 

Exercisable as of September 30, 2024

 

 

14,461,879

 

 

$

1.91

 

 

 

5.33

 

 

$

102.17

 

Exercisable and expected to vest as of September 30, 2024

 

 

18,212,100

 

 

$

2.52

 

 

 

5.70

 

 

$

118.34

 
Summary of restricted stock unit ("RSU") activity

The RSU activity is summarized in the following table:

 

 

Number of
RSUs

 

 

Weighted
Average
Grant
Date Fair
Value

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Outstanding as of December 31, 2023

 

 

15,107,535

 

 

$

8.90

 

 

 

 

Granted

 

 

7,944,799

 

 

 

9.45

 

 

 

 

Vested

 

 

(5,901,443

)

 

 

9.12

 

 

 

 

Forfeited

 

 

(1,946,950

)

 

 

9.86

 

 

 

 

Outstanding as of September 30, 2024

 

 

15,203,941

 

 

$

8.97

 

 

 

2.71

 

Expected to vest after September 30, 2024

 

 

15,162,941

 

 

$

8.96

 

 

 

2.71

 
Summary of Performance Share Unit ("PSU") Activity Based on Awards at Target

The PSU activity is summarized in the following table, based on awards at target:

 

 

Number of
PSUs

 

 

Weighted
Average
Grant
Date Fair
Value

 

 

Weighted
Average
Remaining
Contractual
Term (Years)

 

Outstanding as of December 31, 2023

 

 

4,307,833

 

 

$

15.75

 

 

 

 

Granted

 

 

364,128

 

 

 

7.49

 

 

 

 

Forfeited

 

 

(834,328

)

 

 

15.56

 

 

 

 

Outstanding as of September 30, 2024

 

 

3,837,633

 

 

$

15.01

 

 

 

2.42

 

Expected to vest after September 30, 2024(1)

 

 

5,756,450

 

 

$

14.32

 

 

 

2.42

 
(1)
Represents the number of PSUs expected to vest, which may exceed the target number of shares, based on the Company's probability assessment of expected performance during the performance period.
Summary of Stock-based Compensation Expenses for Stock Options and Unvested Common Stock

Total stock-based compensation expense for stock option awards, RSUs, and PSUs, which are included in the condensed consolidated financial statements, is as follows (in thousands):

 

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of revenue

 

$

1,332

 

 

$

680

 

 

$

3,392

 

 

$

1,462

 

Research and development

 

 

13,907

 

 

 

9,534

 

 

 

37,840

 

 

 

21,168

 

Sales and marketing

 

 

2,929

 

 

 

2,000

 

 

 

8,157

 

 

 

3,523

 

General and administrative

 

 

6,399

 

 

 

4,763

 

 

 

18,218

 

 

 

12,396

 

Stock-based compensation, net of amounts capitalized

 

 

24,567

 

 

 

16,977

 

 

 

67,607

 

 

 

38,549

 

Capitalized stock-based compensation—Intangibles and fixed assets

 

 

1,468

 

 

 

1,116

 

 

 

4,214

 

 

 

2,711

 

Total stock-based compensation

 

$

26,035

 

 

$

18,093

 

 

$

71,821

 

 

$

41,260

 
Summary of Unrecognized Stock-Based Compensation

A summary of the Company's remaining unrecognized compensation expense and the weighted-average remaining amortization period as of September 30, 2024, related to its non-vested RSUs, PSUs, and stock option awards is presented below (in millions, except time period amounts):

 

 

 

Unrecognized
Expense

 

 

Weighted-
Average
Amortization
Period (Years)

 

Restricted stock units

 

$

128.4

 

 

 

2.8

 

Performance-based restricted stock units

 

 

56.9

 

 

 

2.4

 

Stock options

 

 

17.5

 

 

 

1.6

 
Stock Options [Member]  
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Summary of Share Based Payment Award Stock Options Valuation Assumptions

The assumptions used to estimate the fair value of stock options granted are as follows:

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Risk-free interest rate

 

 

—

%

 

 

—

%

 

 

4.31

%

 

 

4.09

%

Expected term (in years)

 

 

—

 

 

 

—

 

 

 

6.00

 

 

 

5.50

 

Expected volatility

 

 

—

%

 

 

—

%

 

 

79.33

%

 

 

80.63

%

Dividend yield

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%
Performance Based Restricted Stock Units [Member]  
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Summary of Share Based Payment Award Stock Options Valuation Assumptions

The assumptions used to estimate the fair value of PSUs subject to the stock price hurdle are as follows:

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Risk-free interest rate

 

 

—

%

 

 

4.59

%

 

 

4.86

%

 

 

4.59

%

Contractual term (in years)

 

 

—

 

 

 

3.37

 

 

 

2.69

 

 

 

3.37

 

Expected volatility

 

 

—

%

 

 

80.00

%

 

 

85.00

%

 

 

80.00

%

Dividend yield

 

 

—

%

 

 

—

%

 

 

—

%

 

 

—

%

 
v3.24.3
Leases (Tables)
 9 Months Ended
Sep. 30, 2024
Lease, Cost [Abstract]  
Summary of Components of lease cost

The components of lease cost were as follows (in thousands):

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Operating lease cost(1)

 

 

 

 

 

 

 

 

 

 

 

 

Fixed lease cost

 

$

672

 

 

$

365

 

 

$

1,846

 

 

$

1,085

 

Short-term cost

 

 

67

 

 

 

35

 

 

 

147

 

 

 

117

 

Total operating lease cost

 

$

739

 

 

$

400

 

 

$

1,993

 

 

$

1,202

 
Summary of lease costs are reflected in the Statements of Operations and Comprehensive Loss
(1)
The lease costs are reflected in the condensed consolidated statements of operations as follows (in thousands):

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of revenue

 

$

64

 

 

$

53

 

 

$

187

 

 

$

85

 

Research and development

 

 

461

 

 

 

129

 

 

 

1,198

 

 

 

462

 

Sales and marketing

 

 

60

 

 

 

22

 

 

 

116

 

 

 

51

 

General and administrative

 

 

154

 

 

 

196

 

 

 

492

 

 

 

604

 

Total operating lease cost

 

$

739

 

 

$

400

 

 

$

1,993

 

 

$

1,202

 
Summary of Supplemental cash flow and other information related to operating leases

Supplemental cash flow and other information related to operating leases was as follows (in thousands):

 

 

Three Months Ended
September 30,

 

 

Nine Months Ended
September 30,

 

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cash payments (receipts) included in the measurement of
   operating lease liabilities, net

 

$

(835

)

 

$

(616

)

 

$

(2,932

)

 

$

(284

)
Summary of maturities of operating lease liabilities

As of September 30, 2024, maturities of operating lease liabilities are as follows (in thousands):

 

Amount

 

Year Ending December 31,

 

 

 

2024

 

$

801

 

2025

 

 

3,729

 

2026

 

 

4,260

 

2027

 

 

4,322

 

2028

 

 

4,422

 

Thereafter

 

 

5,470

 

Total lease payments

 

$

23,004

 

Less: imputed interest

 

 

(4,592

)

Less: lease incentives

 

 

(109

)

Present value of operating lease liabilities

 

$

18,303

 
v3.24.3
Related Party Transactions (Tables)
 9 Months Ended
Sep. 30, 2024
Related Party Transaction [Line Items]  
Schedule of Related Party Transactions

The Company had the following balances related to contracts entered into while UMD was a related party, as reflected in the condensed consolidated balance sheets (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Operating lease right-of-use asset

 

$

3,207

 

 

$

3,452

 

Liabilities

 

 

 

 

 

 

Current portion of operating lease liabilities

 

$

676

 

 

$

661

 

Unearned revenue

 

 

436

 

 

 

2,670

 

Operating lease liabilities, net of current portion

 

 

2,932

 

 

 

3,181

 

The Company has the following balances related to agreements entered into while Duke was a related party, as reflected in the condensed consolidated balance sheets (in thousands):

 

 

 

September 30,

 

 

December 31,

 

 

2024

 

 

2023

 

Assets

 

 

 

 

 

 

Prepaid expenses and other current assets

 

$

520

 

 

$

520

 

Other noncurrent assets

 

 

415

 

 

 

805

 
v3.24.3
Description of Business - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2024
Segment
$ / shares
Dec. 31, 2023
$ / shares
Organization Business And Basis Of Presentation [Line Items]    
Common stock, par value | $ / shares $ 0.0001 $ 0.0001
Number of operating segment | Segment 1  
v3.24.3
Summary of Significant Accounting Policies - Additional Information (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
USD ($)
FinancialInstitution
Customers
$ / shares
shares
Sep. 30, 2023
USD ($)
Customers
Sep. 30, 2024
USD ($)
Customers
FinancialInstitution
$ / shares
shares
Sep. 30, 2023
USD ($)
Customers
Dec. 31, 2023
USD ($)
Sep. 30, 2021
shares
Significant Accounting Policies [Line Items]            
Revenue, remaining performance obligation, amount $ 110,100,000   $ 110,100,000      
Allowance for doubtful accounts 0   0   $ 0  
Impairment of Long-Lived Assets to be Disposed of 0 $ 0 0 $ 0    
Accrued interest receivable on available-for-sale investments 2,194,000   2,194,000   2,109,000  
Capitalized materials and supplies $ 1,900,000 900,000 $ 4,500,000 3,100,000    
Warrant issue price | $ / shares $ 11.5   $ 11.5      
Letters of credit outstanding amount $ 2,100,000   $ 2,100,000   2,100,000  
Percentage Of Remaining Performance Obligation 30.00%   30.00%      
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Explanation     twelve months      
Number of financial institutions | FinancialInstitution 3   3      
Research and development expense $ 33,178,000 24,599,000 $ 96,750,000 60,701,000    
Excess and Obsolescence [Member]            
Significant Accounting Policies [Line Items]            
Excess and obsolescence charges 1,000,000 0 1,100,000 0    
Capitalized Commissions [Member]            
Significant Accounting Policies [Line Items]            
Capitalized contract cost 5,300,000   5,300,000   $ 2,800,000  
Capitalized contract cost amortization expense $ 400,000 $ 200,000 $ 1,300,000 $ 500,000    
Revenue Benchmark [Member]            
Significant Accounting Policies [Line Items]            
Number of customers over ten percent benchmark | Customers 2 3 2 2    
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Minimum [Member]            
Significant Accounting Policies [Line Items]            
Concentration risk, percentage     10.00%      
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Two Customer [Member]            
Significant Accounting Policies [Line Items]            
Concentration risk, percentage 84.00%   79.00%      
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Three Customer [Member]            
Significant Accounting Policies [Line Items]            
Concentration risk, percentage   68.00%   58.00%    
Software and Software Development Costs [Member]            
Significant Accounting Policies [Line Items]            
Finite lived intangible asset, useful life 3 years   3 years      
Software and Software Development Costs [Member] | Internal-Use Software [Member]            
Significant Accounting Policies [Line Items]            
Amortization of intangible assets $ 1,400,000 $ 800,000 $ 3,800,000 $ 1,900,000    
Intangible asset capitalized during period 1,700,000 2,000,000 5,500,000 5,300,000    
Software and Software Development Costs [Member] | External-Use Software [Member]            
Significant Accounting Policies [Line Items]            
Intangible asset capitalized during period $ 0 $ 0 $ 0 $ 0    
Public Warrants [Member]            
Significant Accounting Policies [Line Items]            
Number of warrants or rights outstanding | shares 5,228,253   5,228,253     7,500,000
Class of warrant redeemed | shares 0   0      
v3.24.3
Summary of Significant Accounting Policies - Summary of Reconciliation of Cash, Cash Equivalents and Restricted Cash (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Sep. 30, 2023
Dec. 31, 2022
Cash and Cash Equivalents [Abstract]        
Cash and cash equivalents $ 30,172 $ 35,665    
Restricted cash 2,438 2,416    
Total cash, cash equivalents and restricted cash in the condensed consolidated statements of cash flows $ 32,610 $ 38,081 $ 39,553 $ 46,367
v3.24.3
Summary of Significant Accounting Policies - Summary of Loans and Financing Receivable (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable $ 4,137 $ 11,467
Billed Accounts Receivable [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable 3,265 8,564
Unbilled Accounts Receivable [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Accounts receivable $ 872 $ 2,903
v3.24.3
Summary of Significant Accounting Policies - Summary of Property Plant And Equipment Useful Life (Detail)
Sep. 30, 2024
Computer Equipment [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Computer Equipment [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 5 years
Machinery Equipment Furniture And Fixtures [Member] | Minimum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 4 years
Machinery Equipment Furniture And Fixtures [Member] | Maximum [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 7 years
Quantum Computing System [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Useful Life 3 years
Leasehold Improvements [Member]  
Property, Plant and Equipment [Line Items]  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
v3.24.3
Summary of Significant Accounting Policies - Schedule of Earnings Per Share, Basic and Diluted (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Numerator:        
Net loss attributable to common stockholders $ (52,496) $ (44,811) $ (129,649) $ (115,867)
Denominator:        
Weighted average shares used in computing net loss per share attributable to common stockholders – Basic 214,305,053 203,390,383 211,378,045 201,656,916
Net loss per share attributable to common stockholders - Basic $ (0.24) $ (0.22) $ (0.61) $ (0.57)
Weighted average shares used in computing net loss per share attributable to common stockholders – Diluted 214,305,053 203,390,383 211,378,045 201,656,916
Net loss per share attributable to common stockholders - Diluted $ (0.24) $ (0.22) $ (0.61) $ (0.57)
v3.24.3
Summary of Significant Accounting Policies - Summary of Antidilutive Securities Excluded from Computation of Earnings Per Share (Detail) - shares
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 50,512,351 53,316,933 52,025,904 51,212,411
Employee Stock Option        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 18,693,271 23,443,324 19,715,840 23,952,845
Warrants to purchase common stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 8,301,202 8,301,202 8,301,202 8,301,202
Public warrants        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 5,228,253 5,231,164 5,228,253 5,231,378
Unvested restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 16,087,407 15,749,472 16,478,732 13,009,874
Unvested performance-based restricted stock units        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 1,918,817 0 1,970,331 0
Unvested common stock        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share, amount 283,401 591,771 331,546 717,112
v3.24.3
Cash, Cash Equivalents, Restricted Cash And Investments - Summary of Unrealized Gains and Losses and Estimated Fair Value of Cash Equivalents and Investments (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Line Items]    
Amortized Cost $ 384,888 $ 460,303
Gross Unrealized Gains 685 349
Gross Unrealized Losses (294) (2,306)
Estimated Fair Value 385,279 458,346
Cash and money market funds [Member]    
Cash and Cash Equivalents [Line Items]    
Amortized Cost 32,610 25,131
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Estimated Fair Value 32,610 25,131
Commercial Paper [Member]    
Cash and Cash Equivalents [Line Items]    
Amortized Cost 0 16,374
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 (14)
Estimated Fair Value 0 16,360
Corporate Notes And Bonds [Member]    
Cash and Cash Equivalents [Line Items]    
Amortized Cost 67,545 176,793
Gross Unrealized Gains 47 38
Gross Unrealized Losses (226) (1,854)
Estimated Fair Value 67,366 174,977
Municipal Bonds [Member]    
Cash and Cash Equivalents [Line Items]    
Amortized Cost 0 4,990
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 (43)
Estimated Fair Value 0 4,947
US government and agency    
Cash and Cash Equivalents [Line Items]    
Amortized Cost 284,733 237,015
Gross Unrealized Gains 638 311
Gross Unrealized Losses (68) (395)
Estimated Fair Value $ 285,303 $ 236,931
v3.24.3
Cash Equivalents, Restricted Cash And Investments - Additional Information - (Details) - USD ($)
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Abstract]    
Allowance for credit losses $ 0 $ 0
v3.24.3
Cash, Cash Equivalents, Restricted Cash And Investments - Summary of Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Debt Securities, Available-for-Sale [Line Items]    
Less than 12 Months, Fair Value $ 23,646 $ 136,974
Less than 12 Months, Gross Unrealized Losses (17) (264)
12 Months or Longer, Fair value 76,351 180,916
12 Months or Longer, Gross Unrealized Losses (277) (2,042)
Total, Fair value 99,997 317,890
Total, Gross Unrealized Loses (294) (2,306)
Commercial Paper [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Less than 12 Months, Fair Value   16,360
Less than 12 Months, Gross Unrealized Losses   (14)
12 Months or Longer, Fair value   0
12 Months or Longer, Gross Unrealized Losses   0
Total, Fair value   16,360
Total, Gross Unrealized Loses   (14)
Corporate Notes and Bonds [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Less than 12 Months, Fair Value 0 11,074
Less than 12 Months, Gross Unrealized Losses 0 (58)
12 Months or Longer, Fair value 56,462 151,174
12 Months or Longer, Gross Unrealized Losses (226) (1,796)
Total, Fair value 56,462 162,248
Total, Gross Unrealized Loses (226) (1,854)
Municipal Bonds [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Less than 12 Months, Fair Value   0
Less than 12 Months, Gross Unrealized Losses   0
12 Months or Longer, Fair value   4,947
12 Months or Longer, Gross Unrealized Losses   (43)
Total, Fair value   4,947
Total, Gross Unrealized Loses   (43)
US government and agency [Member]    
Debt Securities, Available-for-Sale [Line Items]    
Less than 12 Months, Fair Value 23,646 109,540
Less than 12 Months, Gross Unrealized Losses (17) (192)
12 Months or Longer, Fair value 19,889 24,795
12 Months or Longer, Gross Unrealized Losses (51) (203)
Total, Fair value 43,535 134,335
Total, Gross Unrealized Loses $ (68) $ (395)
v3.24.3
Cash, Cash Equivalents, Restricted Cash And Investments - Schedule of Contractual Maturity Date of Cash Cash Equivalents, Restricted Cash and Investments in Available-for-Sale Securities (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Cash and Cash Equivalents [Line Items]    
1 Year or Less $ 365,743  
Greater than 1 Year 19,536  
Total 385,279 $ 458,346
Cash and money market funds [Member]    
Cash and Cash Equivalents [Line Items]    
1 Year or Less 30,205  
Greater than 1 Year 2,405  
Total 32,610 25,131
Commercial Paper [Member]    
Cash and Cash Equivalents [Line Items]    
Total 0 16,360
Corporate Notes and Bonds [Member]    
Cash and Cash Equivalents [Line Items]    
1 Year or Less 63,930  
Greater than 1 Year 3,436  
Total 67,366 174,977
US government and agency [Member]    
Cash and Cash Equivalents [Line Items]    
1 Year or Less 271,608  
Greater than 1 Year 13,695  
Total $ 285,303 $ 236,931
v3.24.3
Fair Value Measurements - Summary of fair value measurements on a recurring basis and the level of inputs (Detail) - Fair Value, Recurring [Member] - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Assets:    
Cash and cash equivalents $ 32,610 $ 38,081
Total Assets 385,279 458,346
Liabilities:    
Public warrants 11,607 23,004
Short-term Investments [Member]    
Assets:    
Investments 335,538 319,776
Other Long-term Investments [Member]    
Assets:    
Investments 17,131 100,489
Cash and money market funds [Member]    
Assets:    
Cash and cash equivalents [1] 32,610 25,131
Commercial Paper [Member] | Short-term Investments [Member]    
Assets:    
Investments   16,360
Municipal Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments   4,947
Corporate Notes And Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments 63,930 130,423
Corporate Notes And Bonds [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 3,436 44,554
US government and agency    
Assets:    
Cash and cash equivalents   12,950
US government and agency | Short-term Investments [Member]    
Assets:    
Investments 271,608 168,046
US government and agency | Other Long-term Investments [Member]    
Assets:    
Investments 13,695 55,935
Quoted Prices in Active Markets (Level 1) [Member]    
Assets:    
Cash and cash equivalents 32,610 25,131
Total Assets 32,610 25,131
Liabilities:    
Public warrants 11,607 23,004
Quoted Prices in Active Markets (Level 1) [Member] | Short-term Investments [Member]    
Assets:    
Investments 0 0
Quoted Prices in Active Markets (Level 1) [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 0 0
Quoted Prices in Active Markets (Level 1) [Member] | Cash and money market funds [Member]    
Assets:    
Cash and cash equivalents [1] 32,610 25,131
Quoted Prices in Active Markets (Level 1) [Member] | Commercial Paper [Member] | Short-term Investments [Member]    
Assets:    
Investments   0
Quoted Prices in Active Markets (Level 1) [Member] | Municipal Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments   0
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Notes And Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments 0 0
Quoted Prices in Active Markets (Level 1) [Member] | Corporate Notes And Bonds [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 0 0
Quoted Prices in Active Markets (Level 1) [Member] | US government and agency    
Assets:    
Cash and cash equivalents   0
Quoted Prices in Active Markets (Level 1) [Member] | US government and agency | Short-term Investments [Member]    
Assets:    
Investments 0 0
Quoted Prices in Active Markets (Level 1) [Member] | US government and agency | Other Long-term Investments [Member]    
Assets:    
Investments 0 0
Significant Other Observable Inputs (Level 2) [Member]    
Assets:    
Cash and cash equivalents 0 12,950
Total Assets 352,669 433,215
Liabilities:    
Public warrants 0 0
Significant Other Observable Inputs (Level 2) [Member] | Short-term Investments [Member]    
Assets:    
Investments 335,538 319,776
Significant Other Observable Inputs (Level 2) [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 17,131 100,489
Significant Other Observable Inputs (Level 2) [Member] | Cash and money market funds [Member]    
Assets:    
Cash and cash equivalents [1] 0 0
Significant Other Observable Inputs (Level 2) [Member] | Commercial Paper [Member] | Short-term Investments [Member]    
Assets:    
Investments   16,360
Significant Other Observable Inputs (Level 2) [Member] | Municipal Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments   4,947
Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes And Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments 63,930 130,423
Significant Other Observable Inputs (Level 2) [Member] | Corporate Notes And Bonds [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 3,436 44,554
Significant Other Observable Inputs (Level 2) [Member] | US government and agency    
Assets:    
Cash and cash equivalents   12,950
Significant Other Observable Inputs (Level 2) [Member] | US government and agency | Short-term Investments [Member]    
Assets:    
Investments 271,608 168,046
Significant Other Observable Inputs (Level 2) [Member] | US government and agency | Other Long-term Investments [Member]    
Assets:    
Investments 13,695 55,935
Unobservable Inputs (Level 3) [Member]    
Assets:    
Cash and cash equivalents 0 0
Total Assets 0 0
Liabilities:    
Public warrants 0 0
Unobservable Inputs (Level 3) [Member] | Short-term Investments [Member]    
Assets:    
Investments 0 0
Unobservable Inputs (Level 3) [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 0 0
Unobservable Inputs (Level 3) [Member] | Cash and money market funds [Member]    
Assets:    
Cash and cash equivalents [1] 0 0
Unobservable Inputs (Level 3) [Member] | Commercial Paper [Member] | Short-term Investments [Member]    
Assets:    
Investments   0
Unobservable Inputs (Level 3) [Member] | Municipal Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments   0
Unobservable Inputs (Level 3) [Member] | Corporate Notes And Bonds [Member] | Short-term Investments [Member]    
Assets:    
Investments 0 0
Unobservable Inputs (Level 3) [Member] | Corporate Notes And Bonds [Member] | Other Long-term Investments [Member]    
Assets:    
Investments 0 0
Unobservable Inputs (Level 3) [Member] | US government and agency    
Assets:    
Cash and cash equivalents   0
Unobservable Inputs (Level 3) [Member] | US government and agency | Short-term Investments [Member]    
Assets:    
Investments 0 0
Unobservable Inputs (Level 3) [Member] | US government and agency | Other Long-term Investments [Member]    
Assets:    
Investments $ 0 $ 0
[1] Includes money market funds associated with the Company’s overnight investment sweep account and cash collateralizing the Company's letter of credit and corporate credit cards.
v3.24.3
Fair Value Measurements - Additional Information (Detail)
Sep. 30, 2024
$ / shares
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]  
Class of warrants, exercise price per share $ 1.38
Public Warrants [Member]  
Schedule Of Changes In The Fair Value Of Warrant Liabilities [Line Items]  
Class of warrants, exercise price per share $ 2.22
v3.24.3
Property And Equipment, Net - Summary Of Property And Equipment (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Property, Plant and Equipment [Line Items]    
Gross property and equipment $ 73,128 $ 52,114
Less: accumulated depreciation (23,674) (14,599)
Total property and equipment, net 49,454 37,515
Computer equipment and acquired computer software    
Property, Plant and Equipment [Line Items]    
Gross property and equipment 5,968 4,537
Machinery, equipment, furniture, and fixtures    
Property, Plant and Equipment [Line Items]    
Gross property and equipment 13,821 9,238
Leasehold improvements [Member]    
Property, Plant and Equipment [Line Items]    
Gross property and equipment 17,717 10,043
Quantum computing systems [Member]    
Property, Plant and Equipment [Line Items]    
Gross property and equipment $ 35,622 $ 28,296
v3.24.3
Property And Equipment, Net - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Property, Plant and Equipment [Abstract]        
Depreciation $ 3.5 $ 1.9 $ 9.1 $ 4.7
v3.24.3
Other Balance Sheet Accounts - Summary of Prepaid Expenses and Other Current Assets (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Materials and supplies $ 17,949 $ 12,476
Prepaid expenses 3,102 5,696
Accrued interest receivable 2,194 2,109
Other current assets 2,308 2,800
Total prepaid expenses and other current assets $ 25,553 $ 23,081
v3.24.3
Other Balance Sheet Accounts - Summary of accrued expenses (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued salaries and other payroll liabilities $ 12,477 $ 15,950
Accrued professional services 1,723 605
Accrued equipment and services liabilities for research and development 176 112
Accrued expenses—other 1,281 1,709
Total accrued expenses $ 15,657 $ 18,376
v3.24.3
Warrants - Additional Information (Detail) - $ / shares
Sep. 30, 2024
Sep. 30, 2021
Class of warrant or right, number of securities called by warrants or rights 8,301,202  
Class of warrant or right, exercise price of warrants or rights $ 1.38  
Warrant issue price 11.5  
Public Warrants [Member]    
Class of warrant or right, exercise price of warrants or rights $ 2.22  
Number of warrants or rights outstanding 5,228,253 7,500,000
Class of warrant redeemed 0  
v3.24.3
Revenue - Schedule of Revenue Disaggregated by Revenue (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Total revenue $ 12,400 $ 6,136 $ 31,363 $ 15,936
Specialized Quantum Computing Hardware [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue 6,345 2,006 17,301 5,331
Platform, Consulting and Support Services [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue $ 6,055 $ 4,130 $ 14,062 $ 10,605
v3.24.3
Revenue - Schedule of Revenue Disaggregated by Customer Location (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disaggregation of Revenue [Line Items]        
Total revenue $ 12,400 $ 6,136 $ 31,363 $ 15,936
United States [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue 11,895 5,037 29,910 13,575
International [Member]        
Disaggregation of Revenue [Line Items]        
Total revenue $ 505 $ 1,099 $ 1,453 $ 2,361
v3.24.3
Revenue - Additional Information (Details)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Revenue from Contract with Customer [Abstract]  
Revenue, remaining performance obligation, amount $ 110.1
Percentage Of Remaining Performance Obligation 30.00%
Revenue Remaining Performance Obligation Expected Timing Of Satisfaction Explanation twelve months
v3.24.3
Revenue - Summary of Changes in Unearned Revenue (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2024
USD ($)
Deferred Revenue [Abstract]  
Beginning balance $ 12,534
Revenue recognized (11,091)
New deferrals, net 6,949
Ending balance $ 8,392
v3.24.3
Stock-Based Compensation - Additional Information (Detail) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Aug. 31, 2021
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Jan. 01, 2024
Dec. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Weighted-average remaining contractual term outstanding       5 years 8 months 12 days      
Stock subject to repurchase related to stock options early exercised and unvested   259,329   259,329     403,764
Stock repurchase program, remaining authorized repurchase amount   $ 0.5   $ 0.5     $ 0.8
Time Based Restricted Stock Units Rsu [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
PSUs ,Granted   0 20,334 1,064,518 381,204    
Performance Based Restricted Stock Units [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Dividend yield   0.00% 0.00% 0.00% 0.00%    
PSUs ,Granted       364,128      
Target percentage of number of shares earned       100.00%      
Performance Based Restricted Stock Units [Member] | Maximum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       4 years      
Percentage of number of shares earned       300.00%      
Performance Based Restricted Stock Units [Member] | Minimum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       3 years      
Percentage of number of shares earned       0.00%      
Stock Options [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Dividend yield   0.00% 0.00% 0.00% 0.00%    
2015 Equity Incentive Plan [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Weighted-average remaining contractual term outstanding       10 years      
2015 Equity Incentive Plan [Member] | Maximum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       5 years      
2015 Equity Incentive Plan [Member] | Minimum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       4 years      
2021 Equity Incentive Plan [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Shares reserved for issuances           14,215,808  
Weighted-average remaining contractual term outstanding       10 years      
Number of Shares Available for Grant   23,704,859   23,704,859      
Share based compensation arrangement by share based payment award cumulative annual increase percentage       5.00%      
2021 Equity Incentive Plan [Member] | Maximum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       4 years      
2021 Equity Incentive Plan [Member] | Minimum [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Share based compensation by share based award vesting term       1 year      
Employee Stock Purchase Plan [Member]              
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]              
Shares reserved for issuances 5,354,000            
Number of shares issued under share based compensation       0      
Share Based Compensation Arrangement, Cumulative Annual Increase,Shares 10,708,000            
Share Based Compensation Arrangement, Cumulative Annual Increase Percentage Of fully Diluted Shares Of Common stock outstanding 1.00%            
Percentage of discount to the lower of closing price on that day or the closing price on the first day of the offering period 15.00%            
v3.24.3
Stock-Based Compensation - Summary Of Share Based Payment Award Stock Options Valuation Assumptions (Detail)
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Stock Options [Member]        
Risk-free interest rate 0.00% 0.00% 4.31% 4.09%
Expected term (in years) 0 years 0 years 6 years 5 years 6 months
Expected volatility 0.00% 0.00% 79.33% 80.63%
Dividend yield 0.00% 0.00% 0.00% 0.00%
Performance Based Restricted Stock Units [Member]        
Risk-free interest rate 0.00% 4.59% 4.86% 4.59%
Expected term (in years) 0 years 0 years 2 years 8 months 8 days 0 years
Expected volatility 0.00% 80.00% 85.00% 80.00%
Dividend yield 0.00% 0.00% 0.00% 0.00%
v3.24.3
Stock-Based Compensation - Summary of the Stock Option Activity (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 9 Months Ended
Sep. 30, 2024
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of Option Shares, Beginning Balance 21,664,377
Number of Option Shares, Granted 52,640
Number of Option Shares, Exercised (3,417,286)
Number of Option Shares, Cancelled/ Forfeited (87,631)
Number of Option Shares, Ending Balance 18,212,100
Number of Option Shares, Exercisable 14,461,879
Number of Option Shares, Exercisable and expected to vest 18,212,100
Weighted Average Exercise Price, Beginning Balance $ 2.26
Weighted Average Exercise Price, Granted 11.24
Weighted Average Exercise Price, Exercised 0.96
Weighted Average Exercise Price, Cancelled/ Forfeited 4.03
Weighted Average Exercise Price, Ending Balance 2.52
Weighted Average Exercise Price, Exercisable 1.91
Weighted Average Exercise Price, Exercisable and expected to vest $ 2.52
Weighted-average Remaining Contractual Term, Outstanding 5 years 8 months 12 days
Weighted-average Remaining Contractual Term, Exercisable 5 years 3 months 29 days
Weighted-average Remaining Contractual Term, Exercisable and expected to vest 5 years 8 months 12 days
Aggregate Intrinsic Value, Outstanding $ 118,340
Aggregate Intrinsic Value, Exercisable 102,170
Aggregate Intrinsic Value, Exercisable and expected to vest $ 118,340
v3.24.3
Stock-Based Compensation - Summary of restricted stock unit ("RSU") activity (Detail) - Restricted Stock Units Outstanding [Member]
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Number of Option Shares, Beginning Balance 15,107,535
RSUs, Granted 7,944,799
RSUs, Vested (5,901,443)
RSUs, Forfeited (1,946,950)
Number of Option Shares, Ending Balance 15,203,941
RSUs, Expected to vest after September 30, 2024 15,162,941
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares $ 8.9
Weighted Average Grant Date Fair Value, Granted | $ / shares 9.45
Weighted Average Grant Date Fair Value, Vested | $ / shares 9.12
Weighted Average Grant Date Fair Value, Forfeited | $ / shares 9.86
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares $ 8.97
Weighted Average Grant Date Fair Value, Expected to vest 8.96
Weighted Average Remaining Contractual Term (Years) 2 years 8 months 15 days
Weighted Average Remaining Contractual Term (Years), Expected to vest 2 years 8 months 15 days
v3.24.3
Stock-Based Compensation - Summary of Performance Share Unit ("PSU") Activity Based on Awards at Target (Details) - Performance Based Restricted Stock Units [Member]
 9 Months Ended
Sep. 30, 2024
$ / shares
shares
Number of Option Shares, Beginning Balance 4,307,833
PSUs ,Granted 364,128
PSUs,Forfeited (834,328)
Number of Option Shares, Ending Balance 3,837,633
PSUs, Expected to vest after September 30, 2024 5,756,450
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares $ 15.75
Weighted Average Grant Date Fair Value, Granted | $ / shares 7.49
Weighted Average Grant Date Fair Value, Forfeited | $ / shares 15.56
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares $ 15.01
Weighted Average Grant Date Fair Value, Expected to vest 14.32
Weighted Average Remaining Contractual Term (Years) 2 years 5 months 1 day
Weighted Average Remaining Contractual Term (Years), Expected to vest 2 years 5 months 1 day
v3.24.3
Stock-Based Compensation - Summary of Stock-based Compensation Expenses for Stock Options and Unvested Common Stock (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 26,035 $ 18,093 $ 71,821 $ 41,260
Cost of Sales [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 1,332 680 3,392 1,462
Research and Development Expense [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 13,907 9,534 37,840 21,168
Selling and Marketing Expense [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 2,929 2,000 8,157 3,523
General and Administrative Expense [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 6,399 4,763 18,218 12,396
Stock-based Compensation, Net Of Amounts Capitalized [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense 24,567 16,977 67,607 38,549
Capitalized Stock-based Compensation – Intangibles And Fixed Assets [Member]        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock-based compensation expense $ 1,468 $ 1,116 $ 4,214 $ 2,711
v3.24.3
Stock-Based Compensation - Summary of Unrecognized Stock-Based Compensation (Detail)
$ in Millions
 9 Months Ended
Sep. 30, 2024
USD ($)
Restricted Stock Units Outstanding [Member]  
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Unrecognized Expense $ 128.4
Weighted- Average Amortization Period (Years) 2 years 9 months 18 days
Performance Based Restricted Stock Units [Member]  
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Unrecognized Expense $ 56.9
Weighted- Average Amortization Period (Years) 2 years 4 months 24 days
Stock Options [Member]  
Schedule Of Share Based Compensation Arrangements By Share Based Paymen tAward [Line Items]  
Unrecognized Expense $ 17.5
Weighted- Average Amortization Period (Years) 1 year 7 months 6 days
v3.24.3
Income Taxes - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended 12 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Dec. 31, 2023
Income Tax Disclosure [Line Items]          
Income tax expense $ 16 $ 39 $ 39 $ 39  
Valuation allowance against net deferred tax assets     full valuation allowance   full valuation allowance
Maximum [Member]          
Income Tax Disclosure [Line Items]          
Income tax expense $ 100 $ 100 $ 100 $ 100  
v3.24.3
Leases - Summary Of Components Of Lease Cost (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Lease, Cost [Abstract]        
Fixed lease cost $ 672 $ 365 $ 1,846 $ 1,085
Short-term cost 67 35 147 117
Total operating lease cost $ 739 $ 400 $ 1,993 $ 1,202
v3.24.3
Leases - Summary Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Disclosure Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss [Line Items]        
Total operating lease cost $ 739 $ 400 $ 1,993 $ 1,202
Cost of revenue        
Disclosure Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss [Line Items]        
Total operating lease cost 64 53 187 85
Research and development        
Disclosure Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss [Line Items]        
Total operating lease cost 461 129 1,198 462
Sales and marketing        
Disclosure Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss [Line Items]        
Total operating lease cost 60 22 116 51
General and administrative        
Disclosure Of Lease Costs Are Reflected In The Statements Of Operations And Comprehensive Loss [Line Items]        
Total operating lease cost $ 154 $ 196 $ 492 $ 604
v3.24.3
Leases - Summary Of Supplemental Cash Flow And Other Information Related To Operating Leases (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Leases [Abstract]        
Cash payments (receipts) included in the measurement of operating lease liabilities, net $ (835) $ (616) $ (2,932) $ (284)
v3.24.3
Leases - Summary Of Maturities Of Operating Lease Liabilities (Detail)
$ in Thousands
Sep. 30, 2024
USD ($)
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]  
2024 $ 801
2025 3,729
2026 4,260
2027 4,322
2028 4,422
Thereafter 5,470
Total lease payments 23,004
Less: imputed interest (4,592)
Less: lease incentives (109)
Present value of operating lease liabilities $ 18,303
v3.24.3
Leases - Additional Information (Detail)
 9 Months Ended
Sep. 30, 2024
Dec. 31, 2023
Leases [Abstract]    
Lease expiration year 2030  
Weighted-average remaining lease term 5 years 6 months 6 years 6 months
Weighted-average discount rate 8.20% 9.00%
v3.24.3
Related Party Transactions - Additional Information (Detail) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2024
Sep. 30, 2023
Sep. 30, 2024
Sep. 30, 2023
Related Party Transaction [Line Items]        
Revenue $ 12,400 $ 6,136 $ 31,363 $ 15,936
Research and development expense 33,178 24,599 96,750 60,701
UMD [Member]        
Related Party Transaction [Line Items]        
Revenue $ 800 $ 1,300 $ 3,200 $ 3,300
v3.24.3
Related Party Transactions - Schedule of Related Party Transactions (Detail) - USD ($)
$ in Thousands
Sep. 30, 2024
Dec. 31, 2023
Assets    
Prepaid expenses and other current assets $ 25,553 $ 23,081
Operating lease right-of-use assets 10,029 4,613
Other noncurrent assets 7,683 5,155
Liabilities    
Current portion of operating lease liabilities 3,089 710
Unearned revenue 8,332 12,087
Operating lease liabilities, net of current portion 15,214 7,395
Duke [Member]    
Assets    
Prepaid expenses and other current assets 520 520
Other noncurrent assets 415 805
UMD [Member]    
Assets    
Operating lease right-of-use assets 3,207 3,452
Liabilities    
Current portion of operating lease liabilities 676 661
Unearned revenue 436 2,670
Operating lease liabilities, net of current portion $ 2,932 $ 3,181
v3.24.3
Subsequent Events - Additional Information (Detail)
$ in Millions
Nov. 06, 2024
USD ($)
Qubitekk, Inc. [Member] | Subsequent Event [Member]  
Subsequent Event [Line Items]  
Payments to acquire businesses $ 22.0