Ionq, Inc. · NYSE:IONQ
Ionq — SPAC Merger (March 2021)
49 slides from Ionq's SPAC merger presentation, Mar 8, 2021
Slide 1: Investor Presentation 2021
Exhibit 99.2 Investor Presentation 2021 1Exhibit 99.2 Investor Presentation 2021 1
Slide 2: Cautionary Notes
Cautionary Notes This presentation (“Presentation”) is for informational purposes only. This Presentation shall not constitute an Presentation to our “partners” or “partnerships” with technology companies, governmental entities, universities offer to sell, or the solicitation of an offer to buy, any
Slide 3: Cautionary Notes (continued)
Cautionary Notes (continued) Use of Projections • IonQ may not be able to scale its business quickly enough to meet its customers’ growing needs, and if it is This Presentation contains projected financial information. Such projected financial information constitutes not able to grow efficiently, it
Slide 4: Cautionary Notes (continued)
Cautionary Notes (continued) • IonQ depends on a particular isotope of an atomic element that provides qubits for its ion trap technology. If • If IonQ is unable to obtain and maintain patent protection for its products and technology, or if the scope of IonQ is unable to procure these isotopically
Slide 5: dMY Management Team
dMY Management Team Harry You, Chairman Niccolo De Masi, Chief Executive Officer Director of Broadcom Mobile pioneer – Software & Hardware Former President, CFO and Co-Founder of Current Chairman of Glu Mobile GTY (largest tech SPAC at time of IPO) Former CEO of Glu Mobile, Monstermob and Former EVP
Slide 6: Transaction Overview
Transaction Overview ($ in millions, except per share data) Sources Pro Forma Valuation dMY III Shares $ 1,275 Share Price $ 10.00 dMY III Cash Held in Trust 300 Pro Forma Shares Outstanding 199 1 IonQ Cash 36 Equity Value $ 1,993 PIPE Investment 350 (+) Debt 0 Total Sources $ 1,961 (-) Pro Forma Ca
Slide 7: Our Mission
OUR MISSION To build the world’s best quantum computers to solve the world’s most complex problems, transforming business, society, and the planet for the better. 7OUR MISSION To build the world’s best quantum computers to solve the world’s most complex problems, transforming business, society, and
Slide 8: The Only Public Pure-Play Quantum Opportunity
The Only Public Pure-Play Quantum Opportunity Unparalleled Technological Advantage 32,000x more powerful than competing quantum systems Massive Opportunity Experts expect a TAM of approximately $65B by 2030 (CAGR of 56.0%) World-Class Team Led by the pioneers of quantum computing Quantum Computation
Slide 9: IonQ: The Leader In Quantum Computing
PICTURED: IONQ-DEVELOPED ION TRAP CHIP 01 IonQ: The Leader In Quantum Computing 99PICTURED: IONQ-DEVELOPED ION TRAP CHIP 01 IonQ: The Leader In Quantum Computing 99
Slide 10: Led by Industry Pioneers
Led by Industry Pioneers Peter Chapman Jungsang Kim President & CEO Co-founder & CTO Career began at 16 in MIT AI Lab under Marvin Minsky In 2001, led a Bell Labs team to break the world record for what is still the world's largest optical switch Led technology for Amazon’s Prime division, 2014–2019
Slide 11: A 25-Year History of Innovation and Leadership
A 25-Year History of Innovation and Leadership Our co-founders’ academic labs have been at the forefront of quantum computing for decades 1 Government Grants To Date Publications 2004 2012 Kim proposes chip-based Kim integrates optics with ion trap QC architecture ion qubits on chip $165M 200+ (Bell
Slide 12: IonQ: Leading the Quantum Computing Revolution
IonQ: Leading the Quantum Computing Revolution IonQ has brought the world’s best hardware to the commercial market with extreme capital efficiency 1 1 Founded Total VC Investment Patents & Applications 2019 IonQ raises ~$62M in Series B 2015 $84M 61 IonQ announces partnership with Amazon and Microso
Slide 13: World-Class Board, World-Class Advisors
World-Class Board World-Class Advisors David Wineland Peter Chapman Harry You University of Oregon President & CEO, IonQ Chairman, dMY Physicist and Nobel laureate, pioneered many 40-year innovator with multiple Experienced public company fundamental techniques used in trapped-ion fundamental techno
Slide 14: The Quantum Revolution is Here
PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 02 The Quantum Revolution is Here 14 14PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 02 The Quantum Revolution is Here 14 14
Slide 15: Important problems classical computers may never be able to solve
There are important problems that classical computers may never be able to solve Addressing many of the world's greatest problems and opportunities would require the construction of classical computers larger than the universe itself. 15 15There are important problems that classical computers may ne
Slide 16: Quantum computing has the potential to change the world
Optimal Routing Complex Financial Modeling Chemical Modeling By providing solutions to these challenges, Behavioral Inference Manufacturing Optimization Load Optimization quantum computing has the potential to Artificial Intelligence In-silico Drug Discovery Complex Logistics change the world Effici
Slide 17: The Next Quantum Age
The Next Quantum Age Breakthroughs in energy, medicine, materials science, machine learning, Technological and more Revolution Is Quantum Information Age Cheap, connected IonQ is poised to be the first mover computation in the quantum revolution, ushering in the next great age of productivity. Indus
Slide 18: IonQ is Winning The Quantum Space Race
PICTURED: IONQ ION TRAP CHIP IN VACUUM PACKAGE 03 IonQ is Winning The Quantum Space Race 18 18PICTURED: IONQ ION TRAP CHIP IN VACUUM PACKAGE 03 IonQ is Winning The Quantum Space Race 18 18
Slide 19: Focus on the Results, Not the Hype
Focus on the Results, Not the Hype Systems getting Most usable qubits Highest quantum Best error correction volume by many orders overhead smaller each generation of magnitude Q# QDK OpenQASM First known simulation Only commercial Only systems available Support for most major of water to approach sy
Slide 20: Expected Phases of Quantum Computing Maturity
Expected Phases of Quantum Computing Maturity Boston Consulting Group Analysis Phase I Phase II Phase III Estimated Impact (Operating Income): Estimated Impact (Operating Income): Estimated Impact (Operating Income): $2-5 Billion $25-50 Billion $450-850 Billion Technical Barrier To Entry Technical B
Slide 21: Phase I: IonQ Leads The Pack
Phase I IonQ Leads The Pack Potential Quantum Volume by Vendor, Q2B December 2020 4 -- 4 -- 3 256 2 128 1 4,194,304 2 128 4 -- 4 -- 3 8 0 1,000,000 2,000,000 3,000,000 4,000,000 th 1 Estimated quantum volume of IonQ’s 5 generation system — assumes 32 qubits with 99.9% fidelity two-qubit gates based
Slide 22: Phase I: Empowered by Unique Technological Advantages
Phase I Empowered by Unique Technological Advantages Individual atomic ion qubits in an ion trap are superior to competing qubit platforms, creating the ability for IonQ to move farther, faster than the competition. • Identical and naturally quantum • Perfectly isolated from environmental influences
Slide 23: Phase II: IonQ Leads in Error Correction Overhead
Phase II IonQ Leads in Error Correction Overhead 1 2 16:1 1000:1 – 1,000,000:1 Other Approaches 1 Estimate based on IonQ technical roadmap and experimental results recently published by IonQ founder Chris Monroe, advisor Ken Brown, and collaborators 23 2 1000:1 based on overhead for surface codes on
Slide 24: Phase III: IonQ's Leading Modular Architecture
Phase III IonQ’s Leading Modular Architecture Each Generation of IonQ Hardware is Getting Smaller & Cheaper to Build 6ft 20ft 2in An IBM engineer working on the custom- Google rendering of a planned million- IonQ ion trap and vacuum chamber in a 1 built dilution refrigerator casing for a physical-qu
Slide 25: Smaller Every Generation: Quantum Core
Phase III Smaller Every Generation: Quantum Core 2016 2020 2021 2023 1 2 Chamber Package Mini Package Chip 1 The package pictured is a prototype developed at IonQ founder Jungsang Kim’s Duke University lab. 25 2 This chip and image is a project of MIT Lincoln Labs, not IonQ. Used for illustrative pu
Slide 26: Smaller Every Generation: Complete System
Phase III Smaller Every Generation: Complete System 2016 2020 2021 2023 1 2 3 Lab Scale Tabletop Benchtop Rackmount 1 The system pictured is an early trapped ion system from IonQ founder Chris Monroe’s UMD lab. 2 The system pictured is a prototype developed at IonQ founder Jungsang Kim’s Duke Univer
Slide 27: Roadmap For Growth & Market Leadership
Roadmap For Growth & Market Leadership Better Optimization Chemistry 1200 Materials 3 1024 1000 Machine Learning Faster Optimization 800 600 3 384 400 2 256 200 2 64 29 35 22 25 0 2021 2022 2023 2024 2025 2026 2027 2028 Phase I Phase II Phase III Note Prepared on the basis of certain technical, mark
Slide 28: IonQ Is Poised To Win The Quantum Market
PICTURED: IONQ ION TRAP CHIP MOUNTED IN SUPPORT HARDWARE 04 IonQ Is Poised To Win The Quantum Market 28 28PICTURED: IONQ ION TRAP CHIP MOUNTED IN SUPPORT HARDWARE 04 IonQ Is Poised To Win The Quantum Market 28 28
Slide 29: Business Model Aligned to Rapid Quantum Market Growth
Business Model Aligned to Rapid Quantum Market Growth Application Full-scale quantum solutions based on the latest IonQ hardware, accelerating customers into the Quantum Age. Delivered via direct partnerships, value-add resellers, and the world’s largest cloud providers. Development Side-by-side dev
Slide 30: Quantum Machine Learning
Quantum Machine Learning Problem IonQ Projects Machine learning powers much of modern technology, but further improvement requires prohibitively expensive classical computation. As an example, Google and DeepMind have used ML techniques to Generative learning on handwritten digits achieve a 40% redu
Slide 31: Finance: Faster Optimal Arbitrage
Finance: Faster Optimal Arbitrage Problem IonQ Projects Markets are never perfectly efficient, giving arbitrageurs a wealth of opportunities to capitalize on pricing Leading Global Bank discrepancies if they can identify them before the Multiple initiatives related to fraud competition. Improving sp
Slide 32: Technical Progress Unlocks Quantum Commercial Markets Over Time
Technical Progress Unlocks Quantum Commercial Markets Over Time Inflection Point: Better Optimization Chemistry Inflection Point: Materials Faster Optimization Inflection Point: Machine Learning Development Machine Learning Faster Optimization Materials Chemistry Better Optimization 32 Note Inflecti
Slide 33: Financials and Transaction Overview
PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 05 Financials and Transaction Overview 33 33PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 05 Financials and Transaction Overview 33 33
Slide 34: Poised For Rapid Growth Over The Next Decade
Poised For Rapid Growth Over The Next Decade Summary Forecasted Financial Data ($M) $600 Key Growth Drivers & Commentary Revenue projection includes algorithm $522 co-development (professional services, $500 compute) and full-scale applications. Once sufficient computational power is $400 reached fo
Slide 35: IonQ Can Scale Quantum Compute With Controlled CapEx
IonQ Can Scale Quantum Compute With Controlled CapEx IonQ Cash Position ($M) Cash Balance $700 SPAC and PIPE are expected to fund IonQ to cashflow breakeven in 2027. IonQ may $600 opportunistically consider debt facilities to fund additional system builds if market $500 demand outpaces expectations.
Slide 36: Attractive and Increasing System Unit Economics
Attractive and Increasing System Unit Economics System Lifetime Value 2021 System Lifetime Value 2026 Additional Commentary Exponential increases in algorithmic qubit $118.6M $10.8M $107.3M count drive system lifetime value, all while $0.4M 90.5% offering lower computer prices. Utilization and uptim
Slide 37: Upon closing, IonQ will trade on the NYSE under IONQ
Upon closing of the transaction, IonQ will trade on the NYSE under the symbol IONQ as the first public pure-play quantum computing hardware and software company. We believe IonQ could grow at a pace similar to previous foundational computing companies. Join us in creating the future. Fully Capitaliz
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Slide 39: Appendix
PICTURED: IONQ-DEVELOPED ION TRAP CHIP Appendix 39 39PICTURED: IONQ-DEVELOPED ION TRAP CHIP Appendix 39 39
Slide 40: Summary Forecasted Financial Data
Summary Forecasted Financial Data $M 2021E 2022E 2023E 2024E 2025E 2026E 1 Systems Online (Year End) 1 1 2 7 17 33 2 Revenue 5 15 34 60 237 522 193% 118% 78% 288% 120% % Growth 3 (-) Costs of Goods Sold (2) (5) (6) (9) (27) (75) Gross Profit 2 10 27 51 210 447 47% 67% 80% 85% 88% 85% Gross Margin %
Slide 41: Selected Financial Data
Selected Financial Data $ in thousands, except per share data Statements of Operations Data Balance Sheet Data Year Ended December 31, December 31, 2020 2019 2020 2019 Revenue $ - $ 200 Cash and cash equivalents $ 36,120 $ 59,527 2 1 Working capital $ 36,698 $ 59,608 Operating costs and expenses $ 1
Slide 42: Operational and Valuation Benchmarking
Operational and Valuation Benchmarking Operational Valuation Revenue Growth (%) Enterprise Value ($billion) 120% Median: 33% $324 $107 32% 33% $1.4 ‘25-’26E ‘21-’23E ‘21-’23E Gross Margin (%) EV / Revenue (x) Median: 12.1x Median: 56% 88% 85% 16.3x 66% 47% 7.8x 5.8x 2.6x ‘25E ‘26E ‘21E ‘21E ‘25E ‘26
Slide 43: IonQ Has Significant Upside Potential
IonQ Has Significant Upside Potential ($ in billions) Summary of Approach Applies a range of 10.0x – 15.0x EV / Revenue multiple to IonQ’s 2026E revenue to arrive at an Implied Future $7.8 Enterprise Value range. $6.5 Future Enterprise Value range is discounted 5 years at a 20% discount rate to arri
Slide 44: Key Milestones to Quantum Market Leadership
Key Milestones to Quantum Market Leadership Launch Customer, University, Development, >$100M of EBITDA COMMERCIAL and Additional Cloud Partnerships Revenue Positive MILESTONES Handwriting Novel Solutions for Early Quantum Broad ILLUSTRATIVE Recognition Machine Learning, Advantage (ML, Quantum APPLIC
Slide 45: Materials: Efficient Solar Conversion
Materials: Efficient Solar Conversion Problem IonQ Projects Modern, commercially available solar cells convert sunlight into electricity with about 20% efficiency, with Dow Chemical 2 the market valued at $115 billion in 2019. Improving Benchmarking of widely applicable efficiency with existing tech
Slide 46: Chemistry: Materials for Better Electric Vehicles
Chemistry: Materials for Better Electric Vehicles Problem IonQ Projects The electric vehicle market is rapidly emerging, with a large amount of value still left to capture by companies Multinational Electronics Conglomerate that can effectively innovate in the space. Today, the Engaged to research a
Slide 47: Optimization: Logistics
Optimization: Logistics Problem IonQ Projects As an illustrative example among many parcel services: 1 a UPS driver makes an average of 135 deliveries daily. The number of possible routes they could take is so large, it has 227 digits. It would take a classical Successfully ran a broadly-applicable
Slide 48: Optimization: Improved Drug Discovery
Optimization: Improved Drug Discovery Problem The average cost to develop a new pharmaceutical is nearly $2.2 billion. A large portion of this cost is due to the inefficiency of pre-clinical research: it takes 10,000 small molecules initially screened to yield just 10 candidates for clinical trials,
Slide 49: Quantum Computing at The Edge
Quantum Computing at The Edge Problem IonQ Projects As quantum computing applications mature, dedicated, on-site systems will become increasingly attractive to Aerospace & Defense Firm certain customers, including financial firms looking to Agreement to put a future-generation minimize over-the-wire