Ionq, Inc. · NYSE:IONQ
Ionq — dMY Technology Group, Inc. III — SPAC Merger (April 2021)
76 slides from Ionq's SPAC merger presentation, Apr 13, 2021
Slide 1: Management Presentation Analyst Day — April 2021
Management Presentation Analyst Day — April 13 2021
Slide 2: Cautionary Notes
Cautionary Notes This presentation (“Presentation”) is for informational purposes only. This Presentation shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities, nor shall there be any sale of securities in any states or jurisdictions in which such offer, solic
Slide 3: Cautionary Notes (continued)
Cautionary Notes (continued) Use of Projections This Presentation contains projected financial information. Such projected financial information constitutes forward-looking information, and is for illustrative purposes only and should not be relied upon as necessarily being indicative of future resu
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 IonQ is unable to procure these isotopically enriched atomic samples, or is unable to do so on a timely and cost-effective basis, and in sufficient quantities,
Slide 5: Analyst Day Agenda
Analyst Day Agenda Time (EST) 12P 12:05P 12:15P 12:50P 1P 1:15P 1:20P 1:50P 2:10P 2:40P 2:50P 3:00P Topic Welcome Introduction to IonQ IonQ and The Quantum Opportunity Q&A Break: The Quantum Opportunity The Quantum Landscape Q&A Break: The Quantum Landscape IonQ’s Technology and Path to Scale Q&A Br
Slide 6: dMY Management Team
dMY Management Team Harry You, Chairman Director of Broadcom Former President, CFO and Co-Founder of GTY (largest tech SPAC at time of IPO) Former EVP, Office of Chairman of EMC Former CEO of Bearing Point Former CFO of Oracle and Accenture Deep Transactional Experience ü Closed numerous M&A transac
Slide 7: Transaction Overview
Transaction Overview ($ in millions, except per share data) Sources dMY III Shares dMY III Cash Held in Trust IonQ Cash1 PIPE Investment Total Sources Uses Pro Forma Cash Equity to IonQ Existing Investors Transaction Expenses & Fees Total Uses $ 1,275 300 36 350 $ 1,961 $ 616 1,275 70 $ 1,961 1 IonQ
Slide 8: IonQ: The Leader In Quantum Computing
PICTURED: IONQ-DEVELOPED ION TRAP CHIP 01 IonQ: The Leader In Quantum Computing 8
Slide 9: 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. 9
Slide 10: 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 11: Led by Industry Pioneers
Led by Industry Pioneers Peter Chapman President & CEO Career began at 16 in MIT AI Lab under Marvin Minsky Led technology for Amazon’s Prime division, 2014–2019 Innovator in financial, aviation, e-reader technology with several successful exits (Data Acquisition Systems, New Media Graphics, Boston
Slide 12: 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 200+ $165M Licensed Patents1 19 Academic Labs 1 As of 20 December 2020; all grants and patents awarded to University of Ma
Slide 13: 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 2015 $84M 87 Employees2 Spent To Date3 Hardware Generations1,4 66 $52M 6 Investors 1 As of March 202
Slide 14: World-Class Board
World-Class Board Peter Chapman President & CEO, IonQ 40-year innovator with multiple fundamental technologies and successful exits to his credit Jungsang Kim Co-founder & CTO, IonQ Pioneer in photonics, optics, and quantum engineering credited with a variety of novel inventions in the space Blake B
Slide 15: The Quantum Revolution is Here
PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS 02 The Quantum Revolution is Here 15
Slide 16: 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.
Slide 17: Quantum computing has the potential to change the world
By providing solutions to these challenges, quantum computing has the potential to change the world Computers that utilize the power of quantum mechanics could provide revolutionary breakthroughs in human health and longevity, climate change and energy production, artificial intelligence, and more.
Slide 18: The Next Technological Revolution Is Quantum
The Next Technological Revolution Is Quantum IonQ is poised to be the first mover in the quantum revolution, ushering in the next great age of productivity. Human Progress Information Age Cheap, connected computation Industrial Age Electric power, mass manufacturing, economies of scale Time 18
Slide 19: 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 20: IonQ is Winning The Quantum Space Race
PICTURED: IONQ ION TRAP CHIP IN VACUUM PACKAGE 03 IonQ is Winning The Quantum Space Race 20
Slide 21: IonQ Leads The Pack
IonQ Leads The Pack Phase I Potential Quantum Volume by Vendor, Q2B December 2020 -- 4 -- 4 256 3 128 2 1 4,194,304 128 2 -- 4 -- 4 8 3 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 o
Slide 22: 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 23: Phase I: IonQ's Technological Advantage
PICTURED: IONQ-DEVELOPED CONTROL ELECTRONICS 04 Phase I: IonQ’s Technological Advantage 23
Slide 24: Empowered by Unique Technological Advantages
Empowered by Unique Technological Advantages Phase I 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 Cap
Slide 25: Phase II: Error Correction
PICTURED: IONQ-DEVELOPED CONTROL ELECTRONICS 05 Phase II: Error Correction 25
Slide 26: Why Do You Need Quantum Error Correction?
Why Do You Need Quantum Error Correction? Phase II Gate fidelity: the probably of successful execution of a quantum gate Qubits Without error correction, the power of a quantum computer will plateau Algorithmic 22 gate fidelity = 99.9% 22 Physical Qubits 26
Slide 27: Qubits and Fidelity Are Both Critical to Success
Qubits and Fidelity Are Both Critical to Success Phase II Qubits When you see an announcement of a 1000 qubit machine, if it only has 99% gate fidelity, Algorithmic it is no more powerful than a 7 qubit machine 7 gate fidelity = 99% 7 1000 Physical Qubits 27
Slide 28: Quantum Error Correction
Quantum Error Correction Phase II Idea: encode one qubit into a larger number of qubits to get better gate fidelities 1 encoded qubit 16 physical qubits 99.99% gate fidelity 99.9% gate fidelity Key Metric: how many qubits does it take to create one encoded qubit? 28
Slide 29: Quantum Error Correction For More Quantum Power
Quantum Error Correction For More Quantum Power Phase II no error 16:1 error 32:1 error correction correction correction 324 AQ 300 Qubits Algorithmic 200 100 65 AQ gate fidelity = 99.9% 22 AQ 10 100 1000 10000 100000 Physical Qubits 29
Slide 30: Quantum Error Correction For More Quantum Power
Quantum Error Correction For More Quantum Power Phase II no error 16:1 error 32:1 error correction correction 1283 AQ correction 1200 High fidelity gates have big payoff in scaling Qubits 800 algorithmic qubits Algorithmic 400 324 AQ gate fidelity = 99.96% 165 AQ gate fidelity = 99.9% 35 AQ 10 100 1
Slide 31: Ions vs Superconducting Qubits
Ions vs Superconducting Qubits Phase II Physics limits superconducting qubits to low gate fidelities Ion decoherence limit: 99.99% 72 Qubits Algorithmic Superconducting decoherence limit: 99.9% 22 Physical Qubits 31
Slide 32: IonQ's Connectivity Advantage
IonQ’s Connectivity Advantage Phase II IonQ Trapped Ions Other Approaches All-to-all connectivity Nearest-neighbor connectivity Two qubit gates can be Two qubit gates between distant performed between any two qubits require many extra gates qubits with no extra steps to move information around 32
Slide 33: Trapped Ion Quantum Computers Are Beginning to Enter Phase II Today
Trapped Ion Quantum Computers Are Beginning to Phase II Enter Phase II Today Recently hired by IonQ Founder, CSO Advisor This paper: Demonstrates a logical gate that is better than any physical gate possible on hardware Uses Bacon-Shor code for 13:1 error correction encoding Source Fault-Tolerant Op
Slide 34: IonQ Overhead Compared to Other Approaches
IonQ Overhead Compared to Other Approaches Phase II 16:1 1 1000:1 – 1,000,000:1 2 Other Approaches 1 Estimate based on IonQ technical roadmap and experimental results recently published by IonQ founder Chris Monroe, advisor Ken Brown, and collaborators 34 2 1000:1 based on overhead for surface codes
Slide 35: Phase III: Engineering a Modular Future
PICTURED: IONQ-DEVELOPED CONTROL ELECTRONICS 06 Phase III: Engineering a Modular Future 35
Slide 36: IonQ's Leading Modular Architecture
IonQ’s Leading Modular Architecture Phase III 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 37: Smaller Every Generation: Quantum Core
Smaller Every Generation: Quantum Core Phase III 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 38: Smaller Every Generation: Complete System
Smaller Every Generation: Complete System Phase III 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 39: Multi-Core QPUs
Multi-Core QPUs Phase III QPUs can be expanded to contain multiple compute zones: Allows for scaling to hundreds of physical qubits within a single QPU Zones connected via shuttling techniques already in use in current-gen systems Requires advanced trap design – IonQ has already begun designing its
Slide 40: Modular Networking of Multiple QPUs
Modular Networking of Multiple QPUs Phase III Individual QPU units can be connected via photonic networking. Utilizes existing, well-understood photonic and optical fiber technology Proof-of-principle demonstrated in labs Reconfigurable optical switching allows for full modular connectivity 8 ´ 8 QP
Slide 41: Roadmap For Growth & Market Leadership
Roadmap For Growth & Market Leadership Better Optimization Chemistry 1200 Materials 3 1024 1000 Machine Learning Faster Optimization 800 1 600 3 Qubits 384 400 2 256 200 Algorithmic 64 2 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 ce
Slide 42: Winning The Quantum Market
PICTURED: IONQ ION TRAP CHIP MOUNTED IN SUPPORT HARDWARE 07 Winning The Quantum Market 42
Slide 43: 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 44: Microsoft Azure Quantum partner testimonial
Azure customers around the world are investing to “ understand the impact of powerful quantum solutions on their businesses, today and tomorrow. Our strategic partnership with IonQ brings our easy-to-use, scalable quantum tooling with their latest in trapped-ion quantum hardware together into a sing
Slide 45: Quantum Machine Learning
Quantum Machine Learning Problem 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 achieve a 40% reduction in energy used for cooling Google’s datacenters.1
Slide 46: Matt Johnson, aC Ware CEO
Matt Johnson aC Ware CEO
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Slide 48: Finance: Faster Optimal Arbitrage
Finance: Faster Optimal Arbitrage Problem Markets are never perfectly efficient, giving arbitrageurs a wealth of opportunities to capitalize on pricing discrepancies if they can identify them before the competition. Improving speed to solution has a direct impact on profit. Solution Quantitative hed
Slide 49: Materials: Efficient Solar Conversion
Materials: Efficient Solar Conversion Problem Modern, commercially available solar cells convert sunlight into electricity with about 20% efficiency, with the market valued at $115 billion in 2019.2 Improving efficiency with existing technology is prohibitively expensive. Solution Solar energy produ
Slide 50: Dow testimonial on IonQ results
We believe that our preliminary results on the “ IonQ system are an important milestone; they demonstrate that our methods have the potential to scale up quantum chemistry simulations and achieve chemical accuracy on large molecular systems when coupled with high-performance quantum hardware. Dave M
Slide 51: Chemistry: Materials for Better Electric Vehicles
Chemistry: Materials for Better Electric Vehicles Problem The electric vehicle market is rapidly emerging, with a large amount of value still left to capture by companies that can effectively innovate in the space. Today, the avenues for innovation—better materials and manufacturing processes, bette
Slide 52: Breakthrough Energy Ventures testimonial
Although researchers have been developing quantum “ computing for decades, it is rapidly approaching an inflection point, and we believe that IonQ has a clear lead in the field … The need for better computational tools in our fight against climate change is urgent and we are delighted to partner wit
Slide 53: Optimization: Logistics
Optimization: Logistics Problem 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 computer longer than the age of the universe to calcu
Slide 54: 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 55: Quantum Computing at The Edge
Quantum Computing at The Edge Problem As quantum computing applications mature, dedicated, on-site systems will become increasingly attractive to certain customers, including financial firms looking to minimize over-the-wire time, compute-centric businesses with high throughput needs, and increasing
Slide 56: 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 57: Compelling Cloud Momentum
Compelling Cloud Momentum Compute Usage By Month Sep-20 Oct-20 Nov-20 Dec -20 Ja n-21 Feb-21 Ma r-21 Note Past results may not be indicative of future results; there is no guarantee that we will continue to grow our cloud quantum compute usage at the same rate or at all. Additional Commentary Cloud
Slide 58: AWS partner testimonial
By working with partners such as IonQ, we “ can help the community as a whole develop a deeper understanding of the opportunities and challenges that lie ahead ... together, we can accelerate innovation and make progress towards the goal of delivering quantum solutions for real-world problems.” Nadi
Slide 59: Financials
PICTURED: A TEST WAFER FROM THE TRAP DEVELOPMENT PROCESS09 Financials 59
Slide 60: IonQ Revenue Drivers
IonQ Revenue Drivers Application Co-Development Formation of long-term partnerships with select industry-leading companies to co-develop end-to-end quantum solutions. Partner Cloud Access Partnerships with Amazon Braket, Azure Quantum and other cloud providers designed to make quantum hardware avail
Slide 61: Poised For Rapid Growth Over The Next Decade
Poised For Rapid Growth Over The Next Decade Summary Forecasted Financial Data ($M) $600 $500 $400 $300 $200 $100 $5 $15 $34 $60 $237 $522 ($42) ($56) ($63) ($67) 2021E 2022E 2023E 2024E 2025E 2026E Key Growth Drivers & Commentary Revenue projection includes algorithm co-development (professional se
Slide 62: IonQ Can Scale Quantum Compute With Controlled CapEx
IonQ Can Scale Quantum Compute With Controlled CapEx IonQ Cash Position ($M) Cash Balance $700 $0 2021E 2022E 2023E 2024E 2025E 2026E ($100) Year Opening Cash Balance Free Cash Flow 1 SPAC/PIPE Investment Cash Balance SPAC and PIPE are expected to fund IonQ to cashflow breakeven in 2027. IonQ may op
Slide 63: Attractive and Increasing System Unit Economics
Attractive and Increasing System Unit Economics… System Lifetime Value 2021 $9.9M $2.1M $4.9M $2.9M 49.3% System System System Gross LTV Cost COGS Profit System Lifetime Value 2026 $118.6M $10.8M $107.3M $0.4M 90.5% System System System Gross LTV Cost COGS Profit Additional Commentary Exponential in
Slide 64: While Offering Decreasing Cost per Qubit to Customers
…While Offering Decreasing Cost per Qubit to Customers Hourly Pricing per Algorithmic Qubit ($K) $120 $100 $100 $80 $60 $40 $30 $20 $0 2021E 2026E Additional Commentary With increasingly powerful quantum computers, each generation containing more algorithmic qubits than the last, IonQ anticipates be
Slide 65: Increasing System Utilization Benefits Unit Economics
Increasing System Utilization Benefits Unit Economics System Utilization % 80% 70%+ 70% 60% 50% 40% 35% 30% 20% 10% 0% 2021E 2026E Additional Commentary Today, IonQ systems are still in early stages of commercialization and R&D. As a result, we reserve substantial system time for internal research a
Slide 66: Economies of Scale for IonQ's Production of Systems
Economies of Scale for IonQ’s Production of Systems Cost per Physical Qubit ~90% 2021E 2026E Additional Commentary IonQ systems will feature an increasing number of physical and algorithmic qubits each generation. Over time, we expect system costs on a per-qubit basis to decrease steadily, improving
Slide 67: 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 68: Key Technology Enablers in 2021 and 2022
Key Technology Enablers in 2021 and 2022 Larger-qubit quantum Reduction of system footprint processor cores Multi-core processor Ion-photon interface technology Note Prepared on the basis of certain technical, market, competitive and other assumptions to be subsequently described in further detail,
Slide 69: 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
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Slide 71: Appendix
Appendix 71
Slide 72: 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 73: Selected Financial Data
Selected Financial Data $ in thousands, except per share data Statements of Operations Data Year Ended December 31, 2020 2019 Revenue $ - $ 200 Operating costs and expenses 1 $ 15,733 $ 9,455 Operating loss $ (15,733) $ (9,255) Net loss $ (15,424) $ (8,926) Weighted average common stock outstanding
Slide 74: Operational and Valuation Benchmarking
Operational and Valuation Benchmarking Operational Revenue Growth (%) 120% Median: 33% 32% 33% ‘25-’26E ‘21-’23E ‘21-’23E Gross Margin (%) 88% 85% Median: 56% 66% 47% ‘25E ‘26E ‘21E ‘21E EBITDA Margin (%) 52% Median: 35% 47% 26% 23% ‘25E ‘26E ‘21E ‘21E Valuation Enterprise Value ($billion) $107 $324
Slide 75: IonQ Has Significant Upside Potential
IonQ Has Significant Upside Potential ($ in billions) $7.8 $6.5 $5.2 Implies a Discount of 35% - 56% $3.2 $2.1 $2.6 $1.4 10.0x – 15.0x 2026E Revenue Discounted 5 Years Back at 20% Post-Money Enterprise Value at Business Combination Note Future enterprise value range is discounted 5 years to 31-Dec-2
Slide 76: Glossary
Glossary Qubit: A quantum bit, or qubit, for short, is the basic building block of a quantum computer, analogous to a digital bit in a classical computer. Unlike a bit, which can only exist as a 0 or a 1, a qubit can exist in a superposition of these states and can be entangled with other qubits, un
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