Open main menu
Home
Random
Donate
Recent changes
Special pages
Community portal
Preferences
About Stockhub
Disclaimers
Search
User menu
Talk
Contributions
Create account
Log in
Editing
D-Wave Quantum Systems Inc.
(section)
Warning:
You are not logged in. Your IP address will be publicly visible if you make any edits. If you
log in
or
create an account
, your edits will be attributed to your username, along with other benefits.
Anti-spam check. Do
not
fill this in!
=== '''<u>Annual Performance</u>''' === {| class="wikitable" |+'''Income Statement: Past 3 Years''' !Income Statement !FY-2020 !FY-2021 !FY-2022 |- |'''Revenue ($m)''' |5.16 |6.28 |7.17 |- |'''Revenue Growth (%)''' |/ |21.69 |14.24 |- |'''Gross Profit ($m)''' |4.25 |4.53 |4.25 |- |'''Gross Margin (%)''' |82.27 |72.13 |59.25 |- | | | | |- |'''Operating Profit ($m)''' | -31.47 | -38.95 | -59.46 |- |'''Net Profit ($m)''' | -10.02 | -31.55 | -51.53 |- |'''EBIT ($m)''' | -4.76 | -29.82 | -46.9 |} '''Balance Sheet: Past 3 years''' {| class="wikitable" !Balance Sheet !FY-20 !FY-21 !FY-22 |- |'''Total Assets (£m)''' |47.46 |32.61 |26.95 |- |'''Total Liabilities (£m)''' |14.73 |29.59 |32.86 |- |'''Net Assets (£m)''' |32.73 |3.02 | -5.91 |} '''Income Statement: 5-year Forecast(by historical CAGR)''' {| class="wikitable" !Income Statement !FY-23 !FY-24 !FY-25 !FY-26 !FY-27 |- |'''Revenue (£m)''' |1630.2 |1858.4 |2081.4 |2289.5 |2404.0 |- |'''Gross Profit (£m)''' |554.3 |659.7 |749.3 |847.1 |913.5 |- |'''Gross Margin (%)''' |34% |36% |36% |37% |38% |- | | | | | | |- |'''EBIT(£m)''' | -100.32 | -214.57 | -458.95 | -981.67 | -2099.74 |} The historical CAGR(compound annual growth rate) of revenues is: <math display="inline">(\frac{7.17}{5.16})^{\frac{1}{2}}-1 = 17.88%</math>, for Gross Profit, this is <math display="inline">(\frac{4.25}{4.25})^{\frac{1}{2}}-1 =0.00%</math>, for Gross Margin, this is <math display="inline">(\frac{59.25}{82.27})^{\frac{1}{2}}-1 =-15.14%</math>, for EBIT, this is <math display="inline">-(\frac{46.9}{4.76})^{\frac{1}{2}}-1 =-213.89%</math>. The CAGRs are used to extrapolate the future income statements. As we can see, the historical CAGR for gross margin and EBIT, historical Net Assets are all non-positive, while revenues are increasing, positive, this implies significant increase in operating expenses. Given D-Wave is constantly doing research and development in the field of quantum applications, this reflects: * R&D in the lastest technology is cash-burning, especially when exploring applications of quantum computing. * The company is still in the early stages of development. This is often the case with companies that are developing new technologies. The development process can be expensive and time-consuming, and it can take several years before a new technology becomes commercially viable. During this time, the company may be operating at a loss, which could lead to a negative CAGR. * The company is facing stiff competition. The quantum computing market is still in its early stages, and there are a number of leading companies in computer hardware, including IBM, Microsoft, Google, Honeywell, are competing to develop the most advanced technology. This competition could drive down prices and make it difficult for D-Wave to generate profits. * The company's technology is not yet ready for prime time. Quantum computing is not yet fully exploited, which can be implied by the D-Wave's expanding Total Addressabel Market(see '''Markets''' section). If D-Wave's technology is not yet ready for commercial use, this could also lead to a negative CAGR. In conclusion, the <u>Income Statement forecast in the next few years might not be accurate</u>, if CAGR is solely used, while the sample length is too short, this does not accurate demonstrate the potential performance of D-wave in the upcoming years, especially when there will be technological breakthrough changing the situation in the upcoming years.
Summary:
Please note that all contributions to Stockhub may be edited, altered, or removed by other contributors. If you do not want your writing to be edited mercilessly, then do not submit it here.
You are also promising us that you wrote this yourself, or copied it from a public domain or similar free resource (see
Stockhub:Copyrights
for details).
Do not submit copyrighted work without permission!
Cancel
Editing help
(opens in new window)