As Google released it quantum computing processor , the market interest in companies listed in the space witnessed active buyer interest in the emerging technology for the future. Rigetti Computing Inc (Nasdaq: RGTI) is one such company listed on the Nasdaq. For over a month the Rigetti stock has been one of most traded stocks on the exchange in terms of volume of stocks.
Rigetti Computing stock delivered 20x gains during the Oct-Dec quarter as its stock price rose from $0.72 to $15 by end of December. RGTI continued to witness surge in its stock price since the beginning in December when it stood at $3, in a month it rose to $20 by Jan. Since then its price moderated at stood at $13 as on 04 February.
Financial Performance: The financial performance has been lukewarm considering market interest.
- September (Q3) results were not so good for Rigetti as its Revenue declined by 23% to $23Mn and it post Net loss of $-14.8Mn.
- Rigetti’s revenue growth in past three years has seen moderate growth, it rose from $8Mn in 2021 to $12Mn in 2023. The company has continued to post net loss of income for past three years.
- Despite RGTI’s not so great financial performance, investor interest has arisen due to its presence in an emerging sector of Quantum Computing.
Business Model
Rigetti Computing’s business model focuses on a few segments –
Quantum Computing Systems: Company designs, manufactures, and deploys full-stack quantum computing systems which integrate both quantum and classical computing resources. This hybrid approach allows users to benefit from the strengths of both paradigms, making it suitable for various applications, including drug discovery.
Quantum Cloud Services (QCS): QCS service provides developers and researchers with access to quantum computing resources via a subscription model. A significant component of company’s revenue comes from its Quantum Cloud Services platform.
Quantum Ecosystem Development: Rigetti has partnered with industry players such as Microsoft Azure and AWS to facilitate broader access to their quantum services; and with NASA for advancing quantum technology through research and infrastructure development.
Revenue Streams: Rigetti has three revenue streams which include:
Subscription Fees: Revenue is generated through tiered subscription plans for QCS, which cater to different user needs.
Hardware Sales: Rigetti sells proprietary quantum processors and full quantum computing systems directly to research institutions and enterprises.
Consulting Services: The company offers consulting services related to quantum computing strategy and algorithm development.