Q3 2023 IonQ Inc Earnings Call
Good day and welcome to the ion killed third quarter 2023 earnings conference call all participants will be in a listen only mode.
So they need assistance. Please signal our conference specialist by pressing the star key followed by zero. After today's presentation there'll be an opportunity to ask questions to ask a question you May Press Star then one on your telephone keypad to withdraw your question. Please press Star then two please.
Please note that this event is being recorded.
I would now like to turn the conference over to Jordan Shapiro. Please go ahead.
Afternoon, everyone and welcome to <unk> third quarter 2023 earnings call.
My name is Jordan Shapiro and I'm, the Vice President of financial planning and analysis and head of Investor Relations here I N Q.
I'm pleased to be joined on today's call by Peter Chapman, and she was president and Chief Executive Officer.
Thomas Kramer, our Chief Financial Officer, and Dr. Cosman, our vice President of Engineering.
By now everyone should have access to the company's third quarter 2023 earnings press release issued this afternoon, which is available on the Investor Relations section of our website at investors I think you dotcom. Please.
Please note that on today's call management will refer to adjusted EBITDA, which is a non-GAAP financial measure.
While the company believes this non-GAAP financial measure provides useful information for investors. The presentation of this information is not intended to be considered in isolation or as a substitute for the financial information presented in accordance with GAAP.
You are directed to our press release for a reconciliation of adjusted EBITDA to its closest comparable GAAP measure.
During the call, we will discuss our business outlook and make forward looking statements. These comments are based on our predictions and expectations as of today.
Actual events or results could differ materially due to a number of risks and uncertainties, including those mentioned.
In our 10-Q that we intend to file with the SEC Tomorrow.
We undertake no obligation to revise any statements to reflect changes that occur after this call except as required by law.
Now I will turn it over to Peter Chapman, President and CEO of Inq Peter.
Thanks, Jordan and thanks, everyone for joining us today.
Today, we are calling in from our new Seattle office, which is our location for manufacturing quantum computing system at scale.
We are very happy with financial and technical progress.
This quarter and so far this year.
We are seeing a clear pickup in interest from early adopters, who quantum computing with revenue of $6 $1 million in Q3, 2023, representing 122% increase from the prior year period.
Moreover, we added $26 $3 million in bookings during the third quarter.
This puts us above the high end of our previously announced annual bookings range for the year.
With a full quarter left to go.
Over the course of this year, we haven't substantially built the size and visibility of our sales pipeline.
Well, we expected continued to be lumpy today, we are pleased to announce that by the end of 2023.
On a path to exceeding our goal of accumulative $100 million in bookings since the start of 2021.
In 2022, we told you that there was a possibility I think you could sound like pool quantum system by the end of 2023.
We have now sold for.
I think she is commercial and technical momentum.
To accelerate ahead of our original expectations.
Believe our paths to a commercial advantage with EQ 64 is clear without requiring full error correction.
Customers are expressing strong interest in our eqs 64 simple system with our HQ35, Forte enterprise systems and stepping stones.
Quantum algorithms ecosystems.
Moreover, we are seeing growing interest in quantum networking bolstered by our recent sales in the United States Air Force Research lab.
The main conclusions you should draw from today's call are that one our pipeline is bigger and better than ever and two that are technical momentum. While always arduous continues to be ahead of schedule now let's dive into the details.
I think it was focused on are showing in the enterprise.
Hum.
In our financial performance is beginning to reflect that reality.
Both public and private institutions are quickly coming to the conclusion that early adopters stand to benefit the most from quantum technology and are eager to prepare themselves for the quantum era.
Those of you who turned into our presentation at quantum World Congress in September.
We made two major announcements that demonstrate inq's continued market leadership.
The first announcement is that we have agreed to sell two systems.
United States Air Force Research lab or <unk>.
Significant deals for <unk>, and the quantum computing industry as a whole.
This $25 5 million dollar deal.
Two quantum network node system, which will be used for research and application development.
Notably these systems will use our cutting edge <unk> technology.
The second major announcement from quantum World Congress.
Two new inq system generation.
In Q Forte enterprise will be a rack mounted production grade <unk> 35 system.
Enterprise will deliver on our goals of reducing system footprint.
Providing modularity all in Iraq mounted form factor that will integrate seamlessly into existing data centers.
It will also be the first <unk> system generation manufactured at our new Seattle facility.
Following Forte enterprise Inq tempo will be Iraq mountain production grade E 64 system.
We expect this upcoming generation to allow our customers to begin solving certain problems with quantum computing that even today's best classical supercomputers and.
Well, what we refer to as commercial advances.
We have already announced plans to deliver one of each of these systems Forte enterprise in tempo to service quantum Basle, Switzerland.
We also recently announced that <unk> has officially reached <unk> 29 on a barium based system.
This is powerful validation of our work on barium systems with air performance now catching up to that.
Utopian based inq fortunate.
He believes that future trapped ion quantum computers will be enhanced by barrier and this milestone shows we are one step closer to <unk> 64.
And another technical roadmap announcements I would also like to highlight an important development that we had discussed at our analyst day in September.
Thank you now believes that we will be able to reach a 64 in commercial advantage using ever mitigation rather than needing to implement full error correction.
There are mitigation requires fewer kubitz, an error correction and makes us even more confident in our ability to reach <unk> 64 in the near term.
Alongside our exciting progress on hardware.
I think he was commercial momentum is continuing to pick up steam.
September we also hosted the official opening of the keel up alongside our partners at the University of Maryland.
Or is that the event included U S. Senator been carton.
Maryland Senate President Bill Ferguson.
In Maryland, Lieutenant Governor I Wanna Miller.
<unk> lab is just one example on how I think new customers are creating ecosystems around quantum computing.
In November we were awarded an extension of our contract with support of the AI and the U S Defense Advanced research projects agency or DARPA to lay the groundwork for benchmarking quantum.
On the corporate front, we announced last month, the crisp Monroe Inq's co founder and Chief Sciences has returned to his focus to quantum academic research and policy pursuits.
We will continue to benefit from his future work, usually intellectual property agreement, but I am still maintains with Duke University.
That agreement grants us exclusive access to trapped ion quantum computing that generated by our co founders departments.
We are grateful for Chris his many contributions.
And early foundational scientific breakthroughs.
As we enter I think use next stage of growth with many scientific breakthroughs behind US. We're now entirely focused on executing against our roadmap, which requires more engineering and product development and science.
In some respects this represents a generational shift, but one that is natural for rapidly evolving companies.
Our team is experienced and growing company.
We are building on that strength, while continuing to add new capabilities for today tomorrow and the quantum of future ahead.
In our analyst day presentation last month, we introduced you to the broader lineup of our I N Q executive.
This team includes Doctor, Jim Cashman, Dr. David Mayhew and Dr. Pat.
Our vps of engineering.
Engineering and R&D, respectively.
These industry veterans from Amazon Blue origin, and Apple represent the next generation of IL two technical leadership.
With you our vision and experience on our side, we are fully confident in our ability to deliver on our roadmap.
We believe inq's, Fortunately enterprise in tempo and their respective <unk> 35 in the EQ 64 milestones or right around the corner.
Organizations are starting to recognize this potential and are seeking out contracts with buying too as reflected by our strong bookings thus far in 2023.
Our momentum continues to grow just today, we were honored to have been selected as a winner of Deloitte technology Fast 500 awards there.
<unk> is the most innovative fastest growing companies in North America.
In 2022, we told you there was a possibility I think you could sell it for quantum system by the end of 2023.
We have now sold for.
Today I can tell you our pipeline of customers seriously interested in purchasing I think you system is robust and gaining momentum each quarter.
So in addition to this being yet another milestone quarter for I didn't feel we were even more excited about the bright future ahead for our business.
With that I would now like to turn the call over to Thomas for a more detailed review of the financials.
Thank you Peter.
Before we dive into our financial results. We are pleased to announce the newest additions to our executive team Margaret I recall, the chief marketing officer, and Kurt as Vice President of software.
Martin brings to <unk> over 25 years of hardware software and cloud experience.
And Microsoft She was responsible for the multibillion dollar U S windows and surfaces.
More recently, she served as the chief marketing officer, and pools outreach catastrophe, which led all aspects of marketing.
<unk> joins us with over 30 years of software framework and integration experience at Microsoft Nintendo and Nortel networks.
I'm excited to welcome Margaret too.
Two technology industry veteran.
<unk> team.
Margaret incurred will contribute their deep expertise to inq's already robust bench of talent, which includes 65 Phd graduates 84 massive scribe and counting on these quantum pioneers several earned their degrees and Chris One rose Jonathan Kim slab and for them both.
Yeah.
This ensures that <unk> choose scientific heritage is deeply ingrained in our DNA as we charge towards the next stage of growth.
Today <unk> is proudly Campos, so some of the world's top content talent and industry leaders.
Our patent portfolio to 74 U S issued patents plus another 163 U S pending patent applications as well as a 19 internationally issued patents and another 111 international pending patent applications.
Note that these two patent portfolio figures are also October 31 2023.
As Peter mentioned earlier, our team is in a strong position to execute on our roadmap deliver on our targets and fulfill our customer needs.
With full confidence in our team and I want to personally thank everyone at <unk> for their hard work and dedication that has led to a record year for the company so far.
Now, let's walk through this quarters financial results in more detail as Peter mentioned, we had an excellent quarter, recognizing $6 $1 million in revenue, which is the bonds. The high end of the outlook. We previously provided.
We successfully delivered on percentage of completion projects earlier than expected.
Which resulted in the explanation of some revenue into the third quarter.
We exited the quarter with $26 $3 million in bookings this put us at $58 $4 million. So far this year above the high end of our previous guidance range of between 49 and $56 million for the full year.
The fourth quarter is supposed to go.
Today, we are increasing the full year 2023 bookings projection range to be between 60 and $63 million.
Given that we are still early on in <unk> commercialization phase.
I want to reiterate my comments from prior earnings calls that we expect bookings continued to be lumpy for quite some time.
Moving down the income statement for Q3 2023, our total operating costs and expenses for the third quarter were $48 3 million up 75% from $27 $7 million in the prior year period.
It's still within our plan for the year.
To break this down further.
Our research and development costs for the third quarter were $24 $6 million up 85% from $33 million in the prior year period.
Recall that we are investing heavily in R&D and given projected demand are also investing in our manufacturing capabilities to build more systems than previously anticipated this year.
Our sales and marketing costs in the third quarter were $5.0 million up 156% from 2.0 a million dollars in the prior year period.
This increase was due to us growing our go to market function and additional sales and support personnel as we continue our investment into our commercial efforts.
Our general and administrative costs in the third quarter were $13 $9 million up 37% from the $10 1 million in the prior year period.
All of this resulted in a net loss of $44 8 million in the third quarter.
<unk> to 'twenty $4.0 million in the prior year period.
It's important to note that these results include a non cash loss of $7 6 million for the third quarter.
Mainly to the fair value of our warrant liabilities.
Which impacts our GAAP bottom line results.
We saw an adjusted EBITDA loss for the third quarter of $22 $4 million compared to a $13 $4 million loss in the prior year period.
No, but we projected an adjusted EBITDA loss for the year of $85 million. So this quarter's loss, we continue to expect to remain within our planning for the year.
Turning now to our balance sheet cash cash equivalents and investments as of September 30th 2023 were $485 $1 million.
Tomorrow, you may noticed those file a universal shelf registration statement with the SEC.
While we continue to believe that our cash on hand is more than sufficient to get the company to cash flow positive.
And we have no immediate plans to raise additional capital. We also believe that opportunities for strategic M&A may arise in the near to medium term.
We are comfortable with our cash balance didn't want to maintain the optionality to raise additional capital to fund M&A and strategic growth.
As a reminder, this announcement is not an offer to sell or a solicitation of an offer to buy securities nor may there be any sale of securities in any state or jurisdiction in which such an offer solicitation or sale would be unlawful prior to the effectiveness of the registration statement with the SEC and.
Creation of qualification under the securities laws of any state or jurisdiction any offer solicitation or sale of any of the securities registered under the registration statement will be made only through the prospectus and the prospectus supplement once the SEC declares the registration statement to be affected.
Yeah.
Now turning to our fourth quarter and full year 2020 free outlook. We are pleased to increase our full year 2023 revenue outlook to $21 million to $22.0 million for the full year 2023.
This represents our expectation that we may be able to accelerate delivery against milestones on some of our customer contracts in the fourth quarter.
Additionally, we are introducing fourth quarter revenue guidance of between $5, three and $6 $1 million.
Lastly, I would also like to highlight that they announced a final deal. Peter mentioned is expected to recognize revenue over the following 18 months as the project works its way towards delivery.
And as I already mentioned, we are also increasing our bookings guidance to between $16 million and $53 million for the full year 2023 <unk>.
Increasing our target to reflect our successful system sales to add for all in the third quarter.
With that I'll turn the call back over to Peter.
Clearly the <unk> team has been hard at work in executing diligently against our technical and financial roadmap.
This is shaping up to be yet another landmark year for <unk> with quantum computing as a whole.
And I could not be more proud of our team that is making it all happen.
What you should conclude from today's call is that one our commercial traction has reached $100 million in bookings since the start of 2021.
Two our pipeline is bigger and better than ever.
Three our technical momentum continues to be ahead of schedule.
And with that I'd like to turn the call back over to our operator for the Q&A session.
Operator.
Thank you.
Well now begin the question and answer session to ask a question you May Press Star then one on your telephone keypad, if youre using a speakerphone. Please pick up your handset before pressing the keys to withdraw your question. Please press Star then two.
At this time, we'll pause momentarily to assemble our roster.
The first question comes from David Williams with benchmark. Please go ahead.
Hey, good afternoon, and congrats on a really solid progress you're doing.
Thank you. Thank you.
I guess first Tom.
Tom you had talked about potential M&A activity in terms of your filing there could you maybe talk a little bit about what you think would be compelling are attractive in this market where are you looking to fill holes in and what are the technologies out there that could be complementary to your existing business.
Excellent question and thank you for bringing that up first I want to emphasize that this is a shelf filing and it's just something that we want to have in place for if and when it becomes appropriate.
Secondly, we are constantly scanning the market.
And anything that will allow us to advance our technical roadmap or advance the delivery to our customers all of our services and systems.
That we will find interesting and that's a pretty wide gambit that.
It's also important to us that we get in a deal that will be good not just out there to acquire things that we're looking at everything. So if you have suggestions send them our way.
[laughter] certainly will do that.
And maybe Peter just just kind of thinking about the day to day impact of Chris, leaving what are the operational aspects. It may be affected in any color. You can provide that may give us comfort in the transition and continuity of the roadmap I think that'd be very helpful. Thank you.
Obviously, Chris is one of the two co founders and seminal in the in the quantum computing business starting way back in the in the mid nineties.
However, you know Chris would be the first one to tell you that the physics behind what it is that I N. Q is doing is now been solved it's largely an engineering problem.
And so.
And we have been saying this for the last couple of years that the company is moving from its academic or origins now two in engineering and <unk>.
And even more so now to a product driven company so well.
Well, Chris is leaving.
You know he's going back to his academic routes he's teaching classes at Duke and we'll continue to work on quantum computing and we will partner with him and Duke University as we have always as a day to day operational impact.
Impact.
It will not have an impact kind of going forward.
Chris isn't adviser has it been an adviser to the company, but has no direct reports that report to him.
And it hasn't since since day, one so it's it's largely.
We will have no impact to the company.
Okay fantastic. Thanks for that color and then just one more if I can quickly here.
Can you talk a little bit about the software strategy and how you see that developing I know at the analyst day, you discussed the revenue really predominantly coming from hardware sales for now and maybe software later, but can you give us a sense of how you see this playing out into the model and it feels like maybe a SaaS model developing potentially over time is that is that a fair way to think about it as well.
Well, we have software investments kind of all up and down the stack. So for instance, where you have a team which is working on a.
Next generation operating system for.
For our quantum computers.
So which is to be able to do support the next generation hardware and quantum networking and such we have another team which is working on a next generation compiler.
And so this is one of the things that is also leading us to a 64 is to be able to optimize the circuits and to be able to make sure. The compiler generates a gates, which are you know gets the best performance out of your particular application if I go higher in the stack.
Then you see we have our applications team today and so they're working on applications with customers, what where we're now focusing on which is now a little bit now in the in the past we've kind of worked with customers on P O sees and and kind of early quantum.
But we're now focused on finding the one or two applications that we can get to a commercial advantage, where we can start to put these applications and productions. So that they're ready to go when we have a template system. So that's kind of our latest kind of change in focus on that front, but we.
Have a fairly large.
Software group inside the company.
It's been said before that that a large part of what I in Q is doing obviously, there's a hardware component, but most of the things that that we do is controlled by software. So it's very much a software investment.
In terms of being able to get performance out of our systems.
Okay.
Okay.
The operator, if we go to a to the next caller.
Of course, the next question comes from Quinn Bolton with Needham <unk> co. Please go ahead.
Hey.
Peter and Thomas I'll offer my congratulations as well on the continued momentum Peter just wanted to you know maybe.
You know challenge you a little bit on on what you said on inq started transitioning more to an engineering and and even a product company.
You know I think you guys have established pretty good track record on the technical milestones to date for for the Ecu roadmap, but I guess, what I'm wondering is it still feels like there's a fair amount of work to be done on quantum networking and quantum error correction and wondering you know if you could provide.
Your thoughts on some of those challenges, maybe theyre not physics, but it still feels like there's some work to be done there and I was wondering if you might be able to comment on those two areas.
Certainly we have dean here and all I can pass it to a there is not a shortage of something to do and in part there's not a shortage of.
Of of kind of areas.
To go after for the company so when we talk about.
My comments were mostly focused around.
Kind of quantum.
Quantum computation and getting to a 64, but you're 100% right. There's a wide open field and quantum networking as an example, and so you know that will require a more science than maybe the computation side, but I'll give it to dean to comment.
Thank you Peter so.
Correct, we have a big engineering lift in front of US. If you think about Oh photonic interconnected systems right Christmas Lab was one of the first to develop and kind of demonstrate.
No.
Interconnects working using different colors of light right and so we're currently working through those pieces are we have that research activity occurring here in the Seattle labs.
So as we move forward the engineering focus is going to be on not the physics aspect of that as much as we'll be towards developing micro optics being able to do all of the other.
Pieces of the software stack to be able to support all of those those are gonna be engineering optical design.
Mechanical engineering problems that we have in front of us and so that's really where our focus will be over the coming years.
I appreciate that thank you.
Second maybe for Peter and Tom I, just wanted to see if you might be able to sort of compare and contrast, the a F. Our rail deal with the quantum a bet Basel deal you know that the revenue seems to be a similar.
But not sure if you'll comment you know whether these are 100% system sales the F. R. L. It it sounds like they may be and then you mentioned recognizing revenue over the next 18 months as you move towards system delivery I thought with quantum basal it was more you would Rev. Rec once those systems were put in place.
Which would imply perhaps a little bit later Rev. Rec policy for for quantum basal and maybe a little bit earlier offer for the F. R. L lab and so maybe maybe just walk us through the Rev Rec accounting on.
The a F R L transaction.
And I think this is we'll tag team. This one until the deals are different in that one of them is for quantum networking and the other one is for quantum.
Quantum computation and application work and they.
I also have two different delivery windows.
And I'll, let Thomas just talk about how that impacts drove right yeah.
Yeah, absolutely. So if you think about what we said about the quantum Basel deal. These are two systems that will be delivered on prem in Switzerland, and the customer will be running their jobs there are.
For a period of roughly five years. The we will start recognizing revenue on the system part of that itself. Once the first system is up and running until the end of the contract we will swap out the machine in between.
But that is a essentially a system deal we are retaining part of the capacity of those systems. So that we will use it pretty much as a beachhead into to Europe.
And that is a super exciting deal and it shows our first serious entry into Europe and also it shows people actually buying up to future generations of our systems in one go so super exciting, but we're also very excited about the air for a deal, but it's a very different deal.
It is for us to deliver a much smaller systems, which will be network nodes that are broken conduct research on networking.
I'm, sorry quantum networking on now.
Now once we deliver those nodes to to half are all up in Rome, New York.
The entire revenue recognition will be finished that will take us 18 months to do it.
And the reason why the revenue recognition is different here is that it's a different part of the gap what rules for recognizing revenue and is based on percentage of complete compete as opposed to usage and so as we complete more of the systems, we recognize more of that revenue and we will finish recognizing all of it when they are.
Up and running and Airfoils Rome facility.
Which we anticipate will take 18 months since contract side.
Got it thank you for explaining the differences really appreciate it.
Thank you.
Once again, if you wish to ask a question. Please press Star then one.
The next question comes from Trefor Genachowski with Goldman Sachs Goldman Sachs Saxe I'm sorry. Please go ahead.
Oh good Yeah, Hi, this is trevor on for Toshi. Thanks for letting me hop on here.
So real quick on your bookings there was so the $25 five from Air Force Research Lab 28 from a Basel for a total of 53 and a half.
Could you provide us with some information on the remaining $5 million in bookings and when would you expect this X systems portion of bookings to accelerate.
Okay.
Okay.
Okay.
Okay.
I'm, sorry, I'm, sorry can you repeat the question I apologize.
Yeah can you hear me yes.
Okay. So on.
On your bookings, where you had 25 and a half million with the Air Force Research lab $28 million from quantum Basil for a total of 53 and a half.
But your total was 58 and a half can you provide us with some more information on the remaining on that remaining $5 million in bookings and when would you expect that at systems portion of bookings to really accelerate.
So yeah. The I mean, the difference is just that we have other contracts in other sales. We also have a small portion that we can upsell to the after all and then I was just a little bit confused that that hasnt happened, yet and we will come back to you and tell you when that is and it's I mean, it's not a.
It's not a monumental number but it would be great. We can point you to the other deal announcements we met made in prior Qs and that should enable you to just like add them all up together.
Okay makes sense.
And a more longer term question, but in your high volume manufacturing roadmap would you be able to quantify how many systems. You believe you would be able to build within a year, let's say 2025 or 2026.
So.
We have that.
That is a great question and it's also a great problem to have the reality is that we will be able to expand our facilities. So that we can scale to any any amount of demand.
And we would love to be a has to worry about where can we find enough AR facility that we can do that right. Now we are planning to build a number of machines at our own facilities, but we are also planning to build some machines actually on prem at the customer's facilities, the Switzerland machines for instance will.
Be built in Switzerland.
Understood. Thank you.
And just one more for for Oh, Sorry go ahead, Peter just to add one thing, though you should get your orders in early if he would like to first.
The first off the line so to speak so we encourage customers to order early.
Yeah.
Understood.
And one more on the quantum networking deal it seems like well and you said that these systems are different from your actual quantum computers.
Could you provide some more color on that difference.
What the difference is maybe the menu how long it takes to manufacture. These is there an ecu score that you.
Provide for these what I guess anything would be helpful. Yeah, there they're kind of.
There's two different purposes, one of them, which is you know the forte enterprising and tempo systems. Those ones are people are worried about uptime and they're looking for you know as high an ecu number as they can possibly get and.
So they're building applications with it.
The networking is more in the R&D side.
So what they're looking to do is to get quantum computers, and then adding their own hardware to be able to do quantum networking and so sometimes they are asking for us to.
To make modifications so it's compatible with their hardware.
They don't care about so much about.
<unk> of of Kubitz or the Ecu, that's not really their focus.
And so and there were more workbench systems. They they care more about you know.
Can we share technical information so that they can figure out how to integrate their hardware in so it's it's kind of two different and as far as uptime concerned I mean, that's not really the goal of networking systems in the short term.
It's not really about total uptime, it's more like what can we can we get the basics to work or can we get it to work over you know maybe starting at a mile and then over 10 miles and under miles and hopefully eventually thousands of miles. So it's it's much more of our R&D phase than what you see in the other systems, which are really.
Production systems, obviously sometime in the future, we hope that quanta.
Quantum networking is a thing and it will drive tremendous demand for production systems.
Because if you're going to build a quantum internet youre going to need a lot of these things and but that's how we as you know we're not we're not selling that yet today, it's mostly in R&D.
R&D I don't know Athene, you would have.
So to give you a little bit of color in terms of just the differences between the hardware and the machines.
The software stacks can change based off of the customer needs for example, and so some of the research customers software stack, we need to tailor to F. R O needs on the hardware side.
The hardware.
Is a lower qubit system to be able to support the networking similar atomic species there both bearing system says like our tempo systems and the systems for F. R. L. A the optical system design has a lot of leverage from our existing systems a lot of the mechanical design has a carryover.
There are some of the read out and everything is different based off of the needs of our networking and so while there are many common components. There are some distinct pieces networking being one piece of it but just part of it is just the needs of the research community versus the needs of our commercial installation.
Understood.
And it seems like.
These quantum networking systems of a high price tag and a quicker Rev Rec could.
Could we expect more announcements like this over the next 18 months maybe.
We certainly hope so.
[laughter], well he'll talk about quantity, but yes.
Yeah, I mean, it's a there's a number of companies and startups, which are working on.
Quantum networking so as part of our pipeline that we talked about in terms of we have a robust pipeline and we're in the middle of conversations to provide more of these things with other customers.
Perfect. Thanks team.
Thank you all very much. This concludes our question and answer session I would like to turn the conference back over to Peter Chapman for any closing remarks. Please you may proceed.
Okay.
I want to thank everyone for joining us today and for all the thoughtful questions.
I wanted to thank the entire inq team for the continued diligent work that allowed us to achieve many business and technical milestones this quarter.
We truly believe that we are changing the world one day at a time and I look forward to speaking with all of you soon thank you.
Okay.
Yeah.
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