PALO ALTO, Calif. - D-Wave Quantum (NASDAQ:QMCO) Inc. (NYSE: QBTS), a quantum computing company with a market capitalization of $1.88 billion, has announced the successful completion of its SOC 2 Type 2 audit on November 25, 2024, underscoring its commitment to customer data security. The company's stock has shown remarkable momentum, gaining over 100% in the past week alone, according to InvestingPro data. This marks the second year the quantum computing firm has achieved this compliance standard, following its initial audit in December 2023.
SOC 2 Type 2 compliance is crucial for companies like D-Wave that handle customer data, as it demonstrates adherence to stringent security and privacy protocols. The audit, conducted by A-LIGN, a respected security and compliance firm, serves as an independent validation of D-Wave's security measures. A-LIGN's COO, Steve Simmons, commended D-Wave for completing the audit, which is globally recognized as a benchmark for trust and security in data protection. With annual revenue of $9.42 million and a gross profit margin of 64.27%, the company maintains a moderate debt level while focusing on operational excellence.
In addition to maintaining SOC 2 Type 2 compliance, D-Wave has been active in enhancing support for its customers' quantum application deployments. In October 2024, the company introduced tailored service-level agreements (SLAs) for its Leap quantum cloud service. These SLAs aim to guarantee high service availability and scalability for commercial-grade quantum and hybrid-quantum applications. InvestingPro analysis reveals the stock has demonstrated significant volatility, with a beta of 1.78, and has delivered an impressive 624% return over the past six months.
Dr. Trevor Lanting, Chief Development Officer at D-Wave, emphasized the importance of security for enterprises utilizing quantum computing solutions in their daily operations. The SOC 2 compliance not only reflects D-Wave's leadership in security practices but also its proactive approach to risk mitigation for its clients.
D-Wave is recognized as a pioneer in quantum computing, providing systems, software, and services to a range of organizations, including Mastercard (NYSE:MA) and Lockheed Martin (NYSE:LMT). The company plans to conduct annual SOC 2 Type 2 assessments and will make the reports available to current or potential customers under a nondisclosure agreement.
The information in this article is based on a press release statement.
In other recent news, D-Wave Quantum Inc. has successfully raised $175 million through its equity offering programs, strengthening its financial position as it continues to develop its quantum computing technology. The company anticipates ending the fourth quarter of fiscal year 2024 with at least $160 million in cash. D-Wave has also seen changes in its board of directors, with the resignation of Ziv Ehrenfeld and the strategic appointment of tech industry veteran Sharon Holt.
In financial developments, D-Wave reported a 27% decline in overall revenue to $1.9 million in its Q3 2024 earnings call, but also reported a 41% increase in its core Quantum Computing as a Service (QCaaS) segment. Despite an increased net loss, D-Wave managed to pay off a substantial $50 million loan, maintaining a healthy cash balance.
The company has made significant strides in its technology, with its 4,400 qubit Advantage 2 processor showing progress and a major pilot with NTT DOCOMO resulting in a 15% reduction in network congestion. Looking forward, D-Wave reiterated its full-year adjusted EBITDA loss guidance of less than $54.3 million and aims for sustained profitability with less funding than competitors. These are the recent developments in D-Wave's ongoing efforts to establish a strong presence in the quantum computing market.
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