D-Wave Quantum flat revenue, surging backlog

What happened: D-Wave Quantum (QBTS) reported flat revenue of $3.1 million in Q2, despite a 1,120% surge in bookings. The company's loss narrowed to 13 cents per share, missing analyst estimates. D-Wave's price-to-sales ratio stands at 496, making it expensive compared to peers. Investors are watching for commercial growth in quantum computing.

Market impact: The flat revenue and high valuation drove a decline in D-Wave stock. This narrative affects quantum computing stocks, with investors focusing on commercial growth. D-Wave's underperformance may impact the broader sector's valuation and investor sentiment.

What to watch next: D-Wave's Q3 earnings, expected in late October, will provide insight into whether the company can convert its surging backlog into revenue. Additionally, the development of D-Wave's quantum as a service (QCaaS) platform and its impact on recurring revenue will be crucial to monitor.