IonQ, Inc. · NYSE:IONQ
IonQ — SPAC Merger (March 2021)
49 slides from IonQ's SPAC merger presentation, Mar 7, 2021
Slide 1: Investor Presentation 2021
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 IonQ Cash1 36 Equity Value $ 1,993 PIPE Investment 350 (+) Debt 0 Total Sources $ 1,961 (-) Pro Forma Cas
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. 7
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 9
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 Led technology for Amazon’s Prime division, 2014–2019 the world's largest optical switch
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 Publications Government Grants To Date1 2004 2012 200+ $165M Kim proposes chip-based Kim integrates optics with ion trap QC architecture ion qubits on chip (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 Founded Total VC Investment1 Patents & Applications1 2019 2015 $84M 61 IonQ raises ~$62M in Series B IonQ announces partnership with Amazon and Microsoft
Slide 13: World-Class Board, World-Class Advisors
World-Class Board World-Class Advisors Peter Chapman Harry You David Wineland 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
Slide 15: There are important problems that 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
Slide 16: By providing solutions to these challenges, quantum computing has the potential to change the world
Optimal Routing Complex Financial Modeling Chemical Modeling By providing solutions to these challenges, quantum computing Behavioral Inference Manufacturing Optimization Load Optimization has the potential to change the world Artificial Intelligence In-silico Drug Discovery Complex Logistics Effici
Slide 17: The Next Technological Revolution
The Next Quantum Age Breakthroughs in energy, Technological medicine, materials science, machine learning, and more Revolution Is Quantum Human Progress Information Age Cheap, connected IonQ is poised to be the first mover computation in the quantum revolution, ushering in the next great age of prod
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
Slide 19: Focus on the Results, Not the Hype
Focus on the Results, Not the Hype Most usable qubits Highest quantum Best error correction Systems getting volume by many orders overhead smaller each of magnitude generation Q# QDK OpenQASM Only commercial Only systems available Support for most major First known simulation system running at room
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: IonQ Leads The Pack
Phase I IonQ Leads The Pack Potential Quantum Volume by Vendor, Q2B December 2020 -- 4 -- 4 3 256 128 2 1 2 4,194,304 128 -- 4 -- 4 83 0 1,000,000 2,000,000 3,000,000 4,000,000 1 Estimated quantum volume of IonQ’s 5th generation system — assumes 32 qubits with 99.9% fidelity two-qubit gates based on
Slide 22: 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: 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 2 1000:1 based on overhead for surface codes on a
Slide 24: 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 built dilution refrigerator casing for a physical-qubi
Slide 25: Smaller Every Generation: Quantum Core
Phase III Smaller Every Generation: Quantum Core 2016 2020 2021 2023 Chamber Package Mini Package 1 Chip 2 1 The package pictured is a prototype developed at IonQ founder Jungsang Kim’s Duke University lab. 2 This chip and image is a project of MIT Lincoln Labs, not IonQ. Used for illustrative purpo
Slide 26: Smaller Every Generation: Complete System
Phase III Smaller Every Generation: Complete System 2016 2020 2021 2023 Lab Scale 1 Tabletop Benchtop 2 Rackmount 3 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 Algorithmic Qubits1 600 3 384 400 2 256 200 2 64 22 25 29 35 0 2021 2022 2023 2024 2025 2026 2027 2028 Phase I Phase II Phase III Note Prepared on the basis of cer
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
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 competition. Improving speed to solution has a direct Multiple
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 Note Inflection
Slide 33: Financials and Transaction Overview
PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 05 Financials and Transaction Overview 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 $522 Revenue projection includes algorithm $500 co-development (professional services, compute) and full-scale applications. $400 Once sufficient computational power is reached fo
Slide 35: IonQ Can Scale Quantum Compute With Controlled CapEx
IonQ Can Scale Quantum Compute With Controlled CapEx IonQ Cash Position ($M) $700 Cash Balance SPAC and PIPE are expected to fund IonQ $600 to cashflow breakeven in 2027. IonQ may opportunistically consider debt facilities to $500 fund additional system builds if market 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 $118.6M $10.8M Exponential increases in algorithmic qubit $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. Leading Investo
Slide 38: Q Iona
Q Iona
Slide 39: Appendix
PICTURED: IONQ-DEVELOPED ION TRAP CHIP Appendix 39
Slide 40: Summary Forecasted Financial Data
Summary Forecasted Financial Data $M 2021E 2022E 2023E 2024E 2025E 2026E Systems Online (Year End) 1 1 1 2 7 17 33 Revenue 2 5 15 34 60 237 522 % Growth 193% 118% 78% 288% 120% (-) Costs of Goods Sold 3 (2) (5) (6) (9) (27) (75) Gross Profit 2 10 27 51 210 447 Gross Margin % 47% 67% 80% 85% 88% 85%
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, 2020 2019 December 31, 2020 2019 Revenue $ - $ 200 Cash and cash equivalents $ 36,120 $ 59,527 Operating costs and expenses 1 $ 15,733 $ 9,455 Working capital 2 $ 36
Slide 42: Operational and Valuation Benchmarking
Operational and Valuation Benchmarking Operational Valuation Revenue Growth (%) Enterprise Value ($billion) 120% Median: 33% 32% 33% $107 $324 $1.4 ‘25-’26E ‘21-’23E ‘21-’23E Gross Margin (%) EV / Revenue (x) Median: 56% Median: 12.1x 88% 85% 66% 16.3x 47% 7.8x 5.8x 2.6x ‘25E ‘26E ‘21E ‘21E ‘25E ‘26
Slide 43: IonQ Has Significant Upside Potential
IonQ Has Significant Upside Potential ($ in billions) Summary of Approach Applies a range of 10.0x – 15.0x EV / Revenue multiple to IonQ’s 2026E $7.8 revenue to arrive at an Implied Future 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 COMMERCIAL Launch Customer, University, Development, >$100M of EBITDA MILESTONES and Additional Cloud Partnerships Revenue Positive ILLUSTRATIVE Handwriting Novel Solutions for Early Quantum Broad APPLICATIONS Recognition Machine Learning, Advantage (ML, Q
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 the market valued at $115 billion in 2019.2 Improving efficiency with existing technology is prohibitively Benchmarkin
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 avenues for innovatio
Slide 47: Optimization: Logistics
Optimization: Logistics Problem IonQ Projects As an illustrative example among many parcel services: a UPS driver makes an average of 135 deliveries daily.1 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 c
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 minimize over-the-wire time, compute-centric Agreement to p