To The Moon

$Quantum Computing Inc.(QUBT)$ is expected to release its quarterly earnings result for Q4 2024 on 20 March 2025 after the market close.

While we analyse QUBT Q4 2024 earnings, I think we need to consider multiple factors, given the nascent stage of the quantum computing industry and company-specific dynamics.

This is especially so when we have the Nvidia GTC which has a quantum focused event, any commentary by $NVIDIA(NVDA)$ CEO could move the share price ahead of QUBT earnings result.

The consensus estimate for revenue is expected to come in at $200K which represent a significant 167.06% increase from same period a year ago.

The earnings per share consensus estimate though is anticipated to be a loss of 5 cents which represent an improvement of 44.49% from the same period one year ago.

Quantum Computing (QUBT) Financial Standings - Total Liabilities Reduction Significant

Quantum Computing reported a total revenue for Q3 2024 which increased by 102% to $101,000 compared to $50,000 in Q3 2023. QUBT also reduced operating expenses by 18% to $5.4 million, while net loss decreased 17% to $5.7 million compared to the prior year period. Gross margin was 9% versus 52% in Q3 2023.

QUBT continued investing in its AZ Chips Facility development and quantum technology research. As of September 30, 2024, cash and cash equivalents stood at $3.1 million, supported by $14.6 million in net proceeds from ATM facility sales and a new $8.25 million convertible note. Research and development expenses decreased 4% to $2.2 million while general and administrative costs fell 24% to $2.8 million.

Factors To Watch For Quantum Computing (QUBT) Q4 2024 Earnings

As we need to consider the nascent stage of the quantum computing industry, there are certain factors that might affect how QUBT earnings or guidance would show up.

Industry Context

Nascent Growth Phase: Quantum computing remains in early commercialization, with heavy R&D focus. Revenue streams are likely modest, but strategic partnerships and government/private sector investments may drive progress.

Market Sentiment: Bullish sentiment due to technological breakthroughs or adoption could overshadow short-term financials, while skepticism might amplify negative reactions to losses.

Company-Specific Factors

Historical Performance

QUBT's past earnings may show incremental revenue growth but persistent net losses due to R&D spend. Key metrics include cash burn rate and funding stability. QUBT Q3 2024 performance had show the total revenue increased by 102%.

Previous quarters in 2024 might indicate trends in contract signings or product milestones.

Recent Developments

Partnerships/Contracts: Any announced collaborations (e.g., government, enterprise) in 2024 could boost revenue or visibility. There is a concern raised by QUBT management during the Q3 2024 earnings call that they have substantial doubt about the company's ability to continue as a going concern, citing the need for additional financing within 12 months.

R&D Milestones: Progress in quantum software/applications (e.g., optimization, AI) might be highlighted, though monetization could lag. In January 2025, QUBT secures $100 Million in private placement for Photonics and Quantum Technology Development.

Financial Health

Cash Reserves: Sufficient liquidity is critical. A high burn rate without secured funding could raise concerns about dilution or debt. This is something that investors would need to take note as QUBT would need to continue to raise funds to sustain operations as well as R&D.

Expenses: Elevated R&D and operational costs likely persist, impacting profitability.

External Factors

Economic Conditions: Higher interest rates in 2024 could pressure fundraising. Broader tech sector performance may influence investor appetite for high-risk stocks.

Regulatory Environment: Policies favoring quantum tech (e.g., grants, subsidies) or restrictions (e.g., export controls) could impact operations.

Market Expectations

• Analyst Estimates: Limited coverage due to niche focus, but consensus may project modest revenue (2M–2M–5M range) and a net loss per share. Beating estimates could trigger volatility.

• Guidance: Management’s forward-looking statements on product launches, funding, or profitability timelines will be scrutinized. In Q3 2024, the management highlight of substantial doubt about the company's ability to continue as a going concern, citing the need for additional financing within 12 months might turned up again.

Competitive Landscape

• Peers like IBM, Rigetti, or IonQ may set benchmarks. Strong sector performance could buoy QUBT, while sector-wide struggles might signal broader challenges.

Technical Analysis - Exponential Moving Average (EMA)

If we looked at how QUBT have been trading last week and this week, we might be seeing price swing based on sentiment.

Positive news (e.g., contracts, tech milestones) including how Nvidia GTC commentary might offset weak financials, while cash concerns or missed targets could lead to sell-offs.

I would think QUBT could give a positive surprise if revenue beats estimates via new contracts; progress in tech commercialization; favorable guidance.

But if QUBT have a wider-than-expected losses of 5 cents, the cash crunch as highlighted by the management in Q3 2024 earnings call or R&D delays could produce negative delays.

For now, if we looked at the technicals, we are seeing investors buying pushing RSI higher towards the overbought region, and the price is also trending near the 50-day period, this might induce investors to get into this trade.

For now, I think there is opportunities to do a quick swing trade for profit while we await the Nvidia GTC commentary on quantum computing.

Summary

QUBT’s Q4 2024 earnings will likely reflect:

• Modest Revenue Growth: Driven by early adopters or partnerships.

• Significant Losses: Due to ongoing R&D investments.

• Strategic Updates: Emphasis on long-term potential over short-term profitability.

The important things that I would be watching is the cash burn rate as there might be a need for more fundings. I will try to find a nice price target for a quick swing trade for profit.

Appreciate if you could share your thoughts in the comment section whether you think QUBT would be a buy before its earnings for quick profit.

@TigerStars @Daily_Discussion @Tiger_Earnings @TigerWire appreciate if you could feature this article so that fellow tiger would benefit from my investing and trading thoughts.

Disclaimer: The analysis and result presented does not recommend or suggest any investing in the said stock. This is purely for Analysis.