Slide 1: Investor Presentation
Investor Presentation October 2021
Slide 2: Cautionary Notes
Cautionary Notes This presentation (“Presentation”) is for informational purposes only. This Presentation shall not constitute an offer Combination. Viewers of this Presentation should each make their own evaluation of Rigetti and of the relevance and to sell, or the solicitation of an offer to buy,
Slide 3: Cautionary Notes (continued)
Cautionary Notes (continued) Use of Projections - This Presentation contains projected financial information. Such projected financial information party may rely upon will be that in such representations and warranties as may be contained in a definitive constitutes forward-looking information, and
Slide 4: Supernova Partners Acquisition Company II
Supernova Partners Acquisition Company II ● Supernova Partners Acquisition Company II, Inc. (“Supernova”; NYSE:SNII) raised $345 million in March 2021 ● Diverse management team with deep sector expertise and decades of operational, investment and acquisition experience ● Supernova Partners Acquisiti
Slide 5: World-changing opportunity, winning technology, distinctive approach
World-changing opportunity Massive untapped revenue opportunity expected to exceed current HPC and cloud hardware markets. Winning technology Superconducting quantum computers have the most qubits, the lowest error rates, and are scaling the fastest. Distinctive approach Proprietary chip architectur
Slide 6: Transaction Summary
Transaction Summary Transaction overview Pro forma valuation ($M, except per share data) • Highly attractive opportunity to invest at the inflection point Total shares outstanding2 155.0 • Attractive entry multiple relative to public peers and recent transactions Price per share $10.00 • $1,152M pos
Slide 7: Chad Rigetti, PhD and Taryn Naidu
Chad Rigetti, PhD Taryn Naidu Founder and CEO COO ● Founded Rigetti Computing in 2013 as the first company focused on ● Former CEO, Rightside (Nasdaq: NAME) developing universal, gate-model quantum computers ● EVP Demand Media, IPO 2011 ● Raised $200M+ in venture funding and recruited world class bo
Slide 8: Mission: Build the world's most powerful computers
Mission: Build the world’s most powerful computers to help solve humanity’s most important and pressing problems. 8
Slide 9: Pioneering industry leadership and operational execution
Pioneering industry leadership and operational execution 2014 2016 2018 2020 Invented & patented Rigetti Fab-1 is First chemically Selected to build first hybrid quantum-classical commissioned as the accurate simulation commercial quantum co-processor architecture first and only dedicated on a cloud
Slide 10: Pioneering industry leadership and operational execution
Pioneering industry leadership and operational execution E2021+ Rigetti 80Q+ 2018-2020 Rigetti 16Q 2015 Rigetti 3Q 2017-2018 2019-present Rigetti 4Q/8Q Rigetti 32/40Q 10
Slide 11: Quantum computing is a world-changing opportunity
1 Quantum computing is a world-changing opportunity. 11
Slide 12: One quantum computer could be more powerful than today's global cloud
In the next decade one quantum computer could be more powerful than today’s entire global cloud. 12
Slide 13: Potential to unlock solutions to the most pressing problems
Computer Vision Potential to Hypersonic Simulation Computational Fluid Dynamics unlock solutions to the most In-silico Drug Discovery pressing and Artificial Intelligence important problems while creating Climate Simulation Portfolio Optimization unimagined opportunities Cybersecurity Supply Chain O
Slide 14: Harnessing nature's operating system unlocks exponential computational power
Harnessing nature’s operating system unlocks exponential computational power Classical Bits Quantum Bits (Binary) (Qubits) Either 0 or 1 Both 0 and 1 at the same time Solves problems by evaluating Solves problems by evaluating solutions sequentially. solutions simultaneously. 14
Slide 15: Harnessing nature's operating system unlocks exponential computational power
Harnessing nature’s operating system unlocks exponential computational power e.g., computing power needed to discover the next penicillin A classical computer with more A quantum computer transistors (1086) than there are with 286 qubits atoms in the observable universe Source “Will Quantum Computin
Slide 16: Enhance human health and longevity
Enhance human health and longevity Problem Developing treatments for leading causes of death requires understanding the biochemical properties of potential therapies.1 Constraint Exact modeling of molecular and materials properties grows exponentially with each added atom. Quantum Solution Direct qu
Slide 17: Clean energy from the same reactions that power the sun
Clean energy from the same reactions that power the sun Problem Reliance on fossil fuels is accelerating climate change. Global energy use is expected to increase by 50% by 2050.1 Constraint Energy production in fusion reactors requires compressing plasma into extreme conditions where quantum effect
Slide 18: Increase the speed and accuracy of market insights
Increase the speed and accuracy of market insights Problem Optimizing investment positions and pricing decisions depends on accurate quantitative models that can swiftly respond to changing market conditions. Constraint Realistic models incorporating available data can be too slow and expensive to i
Slide 19: Classical computers have hit fundamental limits
Classical computers have hit fundamental limits Performance of classical processors since 1980 Diminishing returns Amdahl’s “Moore’s Law has finished.” Law 2x / 20 yrs End of - Jensen Huang, 2019 (3% / yr) CEO, NVIDIA Processor performance Dennard 2x / 6 yrs scaling (12% / yr) Multicore 2x / 3.5 yrs
Slide 20: Massive untapped demand when quantum computers meet requirements
Massive untapped demand when quantum computers meet requirements for practical workloads $850B Requirements for practical workloads Scale: >1000 qubits Error Rates: < 0.5% Clock Speed: >1 MHz Fully Programmable & Universal (run general quantum algorithms) Manufacturable $100B Co-processor $40B (can
Slide 21: Rigetti scalable chip technology can unlock the market
2 Rigetti scalable chip technology can unlock the market. 21
Slide 22: Superconducting quantum computers have the most qubits, lowest error rates
Superconducting quantum computers have the most qubits, the lowest error rates1, and are scaling the fastest Progress in scaling universal gate-model quantum computing systems by hardware modality: 2011 to 2021 2011 2021 2011 2021 2011 2021 2011 2021 2-6 7-12 Photons 13-17 Atoms 18-20 Example key pl
Slide 23: Rigetti is the only pure play superconducting company and scaling fastest
Among industry leaders, Rigetti is the only pure play superconducting company and is scaling fastest Increase in system qubit count: June 2017 vs. June 2021 Modular Full Scalable Pure Play Processor Stack 7.8x 10-13 ✓ ✓ ✓ larger 5.9x larger ✓ Qubits 4.1x larger 2.2x larger ✓ 1,2 3-5 6,7 8,9 1 Reagor
Slide 24: Proprietary modular chip architecture eliminates key scaling roadblocks
Proprietary modular chip architecture eliminates key scaling roadblocks Typical Quantum Chip Proprietary Quantum Chip Single-chip processors Large-scale processors built from identical tiles ● Entire re-design with each generation ● Modular ● Component yield requirements increase ● Manufacturable ex
Slide 25: Proprietary technology unlocked by 6+ years of fab-driven innovation
Proprietary technology unlocked by 6+ years of fab- driven innovation 21 patents pending and issued 1 Pictured: Rigetti modular, multi-chip quantum processor Superconducting caps Superconducting TSVs Interchip Coupling Developed 2015 - 2018 Developed 2016 - 2019 Developed 2018 - 2021 Facilitates sca
Slide 26: Modular system architecture designed for rapid scaling
Modular system architecture designed for rapid scaling to advantage and beyond Large Scale Fault Tolerance Advantage Scale Performance Broad Quantum Advantage Narrow Quantum Advantage Multi-chip Processor 2018 2019 2020 2021 2021 2024 2026 Beyond In development In development In development In devel
Slide 27: Distinctive quantum chip manufacturing drives core value creation
Distinctive quantum chip Rapid design-fab-test iteration loops and short production cycles create compounding advantages over time manufacturing drives core value creation 5–15 Typical 17–30 MEMS Typical 22–40 Semiconductor 0 10 20 30 40 50 Processing Lead Time (weeks) Leading research institutions
Slide 28: Rigetti is positioned to be the industry leader
3 Rigetti is positioned to be the industry leader. 28
Slide 29: Technology advantages can give Rigetti a larger market opportunity
Intrinsic and durable technology advantages can give Rigetti a larger market opportunity than competitors >100x speed advantage enables solutions to a broader set of practical problems1 e.g., market trajectory analysis for portfolio optimization Current deployed systems Future systems running error
Slide 30: Rigetti is poised to win the race to critical inflection points
Rigetti is poised to win the race to critical inflection points Narrow Broad Quantum Quantum Advantage2 Advantage2 Potential Revenue1 2022 2024 2026 R&D Quantum Machine Learning Quantum Simulation Optimization Narrow Quantum Advantage Broad Quantum Advantage Solve a practical, operationally relevant
Slide 31: Partners + customers recognize Rigetti technology leadership
Partners + customers recognize Rigetti technology leadership Rigetti is the lead industry partner of a US Quantum Information Research Center Superconducting Quantum Materials and Systems Center: ● One of five national DOE QIS Research Centers ● Five-year, $115M effort ● 20 partner institutions with
Slide 32: Strategic IP portfolio >100 patents and applications
Strategic IP portfolio >100 patents and applications Patent portfolio is designed to:1,2 Key patented technology areas ▪ Protect Rigetti full-stack technology across hardware, Quantum computing From hybrid quantum-classical computing and low-latency software and services systems, software cloud plat
Slide 33: World-class technical talent drives culture of innovation
World-class technical talent drives culture of innovation 130+ 100+ 40+ 1K+ Employees Technical staff PhDs Peer reviewed publications PhDs from: 33
Slide 34: Extraordinary founder-led leadership team and board
Extraordinary founder-led leadership team and board Management team Current board members / select advisors Chad Rigetti Taryn Naidu Brian Sereda Rick Danis David Cowan Alissa Ray O. Founder, CEO COO CFO General Counsel Fitzgerald and Chairman Bessemer, Co-founder Johnson of Verisign, Midas List AMF
Slide 35: Rigetti Quantum Cloud Services delivers capability to the mainstream market
Rigetti Quantum Cloud Services delivers the capability for practical workloads to the mainstream market Enterprise Academia Startups Government Pure Play Advantage Energy Logistics Rigetti plans to grow its Pharma Finance partnerships with the existing cloud and HPC Cirq Qiskit PyQuil Jupyter Mathem
Slide 36: Financials and transaction overview
4 Financials and transaction overview. 36
Slide 37: Positioned for explosive revenue growth
Positioned for explosive revenue growth Summary forecasted financial data ($M) 594 600 Narrow Broad Key Growth Drivers: Quantum Quantum Advantage1 Advantage1 ● Achieving quantum advantage 480 ● New production system releases ● Maturing quantum ecosystem 380 360 288 Commentary Revenue growth supporte
Slide 38: Rapidly increasing revenue per customer and system
Rapidly increasing revenue per customer and system 2026 QCaaS Demand Projections 2026 QCaaS Delivery Projections Number of Revenue per Description customers customer Deep full-stack QCaaS integration of Direct workloads through 100+ $0.8 - $13M Customers QCS Partnered QCaaS distribution Distribution
Slide 39: Revenue potential increases with each system generation
Revenue potential increases with each system generation System Costs Estimated system costs increase with the scaling of system size in new generations but the projected gross margin per system ($14.3) increases with each generation. 1,000 qubit D-2 System Post quantum advantage, there are $96.4 Est
Slide 40: Capitalized to unlock market demand
Capitalized to unlock market demand Cash position and EBITDA less capex ($M) Cash Balance $600 The net proceeds of this transaction are expected to fund Rigetti to EBITDA breakeven by 2025. $400 EBITDA less capex Spending increases to scale technical teams and invest in infrastructure needed to para
Slide 41: Upon closing, Rigetti will trade on the NYSE under RGTI
Upon closing of the transaction, Leading Investors Rigetti will trade on the NYSE under the symbol RGTI. Leading Customers and Partners We believe Rigetti is poised to be the global leader in quantum computing and can have a Fully Capitalized Balance Sheet profound positive impact on Transaction all
Slide 42: World-changing opportunity, winning technology, distinctive approach
World-changing opportunity Massive untapped revenue opportunity expected to exceed current HPC and cloud hardware markets. Winning technology Superconducting quantum computers have the most qubits, the lowest error rates, and are scaling the fastest. Distinctive approach Proprietary chip architectur
Slide 43: rigetti
rigetti
Slide 44: Risk Factors
Risk Factors Certain Risks Related to Rigetti & Co, Inc. - All references to the “Company,” “Rigetti,” “we,” “us” or “our” in this ● Rigetti relies on access to high performance third party classical computing through public clouds, high presentation refer to the business of Rigetti & Co, Inc. The r
Slide 45: Risk Factors (continued)
Risk Factors (continued) ● Rigetti’s international sales and operations subject it to additional risks and costs, including the ability to engage ● Rigetti may become subject to product liability claims, which could harm its financial condition and liquidity if it is not with customers in new geogra
Slide 46: Appendix
5 Appendix rigetti
Slide 47: Summary financial forecast
Summary financial forecast ($M) 2021E 2022E 2023E 2024E 2025E 2026E Total revenue1 7 18 34 73 288 594 % growth 39% 142% 92% 113% 293% 106% (-) Cost of goods sold (3) (6) (10) (17) (36) (69) Gross profit 5 12 25 56 252 525 % margin 61% 69% 72% 76% 88% 88% (-) Operating expenses (41) (60) (70) (86) (1
Slide 48: Selected historical financials
Selected historical financials ($ in thousands) Statement of Operations Consolidated Balance Sheet Year ended January 31, FY2020 FY2021 January 31, FY2020 FY2021 Total revenue 735 5,543 Cash and cash equivalents 309 22,202 Operating costs and expenses1 48,149 39,143 Working capital2 (33,487) (1,688)
Slide 49: Operational benchmarking
Operational benchmarking Revenue growth (%) 293% 295% Median: 13% Median: 17% 106% 120% 13% 12% 22% 13% 1 2025E 2026E 2025E 2026E 2023E 2023E 2023E 2023E Gross margin (%) Median: 60% Median: 68% 88% 88% 89% 86% 68% 51% 68% NA 2025E 2026E 2025E 2026E 2023E 2023E 2023E 2023E EBITDA margin (%) Median:
Slide 50: Valuation benchmarking
Valuation benchmarking EV / Revenue Median: 10.9x Median: 10.1x 15.9x 11.0x 9.3x 6.0x 4.0x 3.9x 1.9x 1.8x 1 2025E 2026E 2025E 2026E 2023E 2023E 2022E 2023E EV / EBITDA Median: 27.5x Median: 21.4x 30.9x 24.1x 24.6x 18.2x 15.1x 8.1x 3.0x 3.4x 1 2025E 2026E 2025E 2026E 2023E 2023E 2022E 2023E Quantum H
Slide 51: Significant upside potential
Significant upside potential ($bn) Implied future EV Implied discounted EV Transaction value $6.5 $5.3 Implied discount of $3.8 ~67% at the midpoint $3.1 $1.2 ● Rigetti is valued by applying a ● Rigetti’s 2024 future EV is ● Transaction is priced at an 2-year forward multiple then discounted back 3
Slide 52: Fastest rate of progress on increasing fidelity
Fastest rate of progress on increasing fidelity Increase in best demonstrated 2Q median fidelity from June 2017 to June 2021 5% 4.4% Rigetti has systematically increased gate fidelity on 4% cloud-deployed systems. 3% 2.7% Additional fidelity will be achieved via integrating faster gates and longer c
Slide 53: Fastest rate of progress on increasing fidelity
Fastest rate of progress on increasing fidelity Best demonstrated median 2Q fidelity: June 2017 vs. June 2021 99.0 99.8 100.0 98.7 97.4 96.8 97.5 96.0 93.0 90.0 80.0 70.0 60.0 50.0 1,2 3–5 6,7 8,9 1 Reagor, M., et al. “Demonstration of Universal Parametric Entangling Gates on a Multi-Qubit Lattice.”
Slide 54: Partnering on quantum machine learning applications
$1.1B+ Partnering on quantum machine learning applications Annual revenue opportunity by 20261 Quantum machine learning integrates quantum algorithms and ML programs by improving predictive accuracy or reducing training time by encoding data in the exponential Hilbert space of the quantum computer I
Slide 55: Partnering on optimization applications
$1.5B+ Partnering on optimization applications Annual revenue opportunity by 20261 Solve hard, constrained combinatorial optimization problems faster and within a defined error tolerance. The quantum approximate optimization algorithm (QAOA) is a path to quantum supremacy.2 Optimal spectrum allocati
Slide 56: Partnering on simulation applications
$1.4B+ Partnering on simulation applications Annual revenue opportunity by 20261 Simulate quantum mechanical systems exponentially faster to unlock the complexities of nature, such as predicting intractable dynamics at the core of physical models, and estimating physical properties of materials. Fus