Shares of quantum computing company D-Wave Quantum fell 9.5% on the day its CFO announced retirement this week.
D-Wave Quantum (NASDAQ: QBTS) announced this week that CFO John Markovich will retire on September 2, causing the company's stock price to fall by 9.5% on the day of the announcement. Despite the company disclosing in its Q2 earnings call that remaining performance obligations (RPO) reached $40.7 million as of the end of June, a 668% year-over-year increase, with over half expected to convert to revenue within the next year, the company faces challenges of rapid cash burn and equity dilution. Free cash flow over the past four quarters was -$119 million, and equity has doubled within two years. Analysts believe that while D-Wave has real customers and a dual-platform strategy in the pure quantum computing field, its valuation already assumes everything goes smoothly, and the CFO change serves as a reminder of potential risks.
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