Rigetti Computing, Inc. reported its financial results for the three and nine months ended September 30, 2024, revealing a decline in revenue and profitability compared to the previous fiscal period. Revenue for the third quarter was $2.378 million, a decrease of 23% from $3.105 million in Q3 2023. For the nine months, revenue totaled $8.516 million, down 1% from $8.632 million in the same period last year. The total gross profit for Q3 2024 was $1.204 million, a significant drop of 47% from $2.271 million in Q3 2023, while gross profit for the nine months decreased by 30% to $4.694 million from $6.692 million.

Operating expenses for the third quarter were $18.550 million, slightly lower than $19.103 million in Q3 2023, and for the nine months, they decreased to $54.710 million from $61.780 million. Despite the reduction in operating expenses, the company reported a loss from operations of $17.346 million for Q3 2024, an increase of 3% from the loss of $16.832 million in Q3 2023. However, the loss for the nine months improved to $50.016 million, down from $55.088 million in the prior year.

The net loss for Q3 2024 was $14.833 million, a notable decrease of 33% from $22.215 million in Q3 2023. For the nine months, the net loss was $48.027 million, down 23% from $62.535 million in the same period last year. The net loss per share for Q3 2024 was $(0.08), compared to $(0.17) in Q3 2023, while for the nine months, it was $(0.28) versus $(0.48).

The company’s cash position showed a slight decline, with cash and cash equivalents at $20.286 million as of September 30, 2024, down from $21.392 million at the end of 2023. Rigetti's total assets decreased to $157.250 million from $159.913 million, while total liabilities fell significantly to $34.412 million from $50.325 million.

Strategically, Rigetti has faced challenges, including a workforce reduction in February 2023 that impacted approximately 50 employees, or 28% of its workforce, resulting in a restructuring charge of $1.0 million. The company is also navigating increased costs due to inflation and geopolitical tensions, which may affect future growth and operational efficiency. Rigetti anticipates needing additional capital for research and development, with existing cash expected to meet operational needs until mid-Q1 2026.

The company continues to focus on its quantum computing technology, having launched the Ankaa 84-qubit system in 2023 and planning further advancements in quantum processing units. However, it faces a material weakness in internal controls over financial reporting, which management is working to remediate.