EPS of -2c beat estimates of -3.9c. Revenue of $15M beat estimates of $10.5M. EBITDA of -$6M beat estimates of -$9.5M. Investors loved the results and the stock surged 51%, The quantum sector itself was broadly higher today. QBTS called the quarter its 'most significant in D-Wave's history', with the first Advantage system sale to a major research institution. This certainly is a good endorsement. Mgmt. also noted it was in a very solid cash position that should be sufficient for the company to reach profitability. Results and comments are certainly positive, it is just the valuation that concerns us. Market cap of $3B is a bit too high for a company expected to only have $25M in sales this year. We do not mind expensive stocks, but at 120X sales it is one of the most expensive on a P/S basis in the market.
5i Research Answer: