Why is D-Wave Quantum Inc stock underperforming the market?

D-Wave Quantum Inc. (NYSE: QBTS) is experiencing significant market activity driven by anticipated growth in bookings and strategic partnerships. The company expects bookings to exceed $23 million, a 120% increase over fiscal year 2023, with fourth-quarter 2024 bookings projected to reach at least $18 million, marking a 500% increase from the previous year. Despite a third-quarter loss of 11 cents per share, slightly below expectations, and revenue of $1.87 million, which fell short of the anticipated $2.53 million, D-Wave remains optimistic. The company has reaffirmed its outlook for improved adjusted EBITDA losses in 2024 and expects a quarter-over-quarter increase in revenue and bookings in the fourth quarter. Strategic partnerships, such as the collaboration with Carahsoft Technology Corp to distribute quantum computing solutions to the Public Sector, have bolstered D-Wave's market position. Industry developments, including announcements from Microsoft and Nvidia, underscore the importance of being "quantum ready." CEO Alan Baratz emphasized the growing commercial adoption of D-Wave's technology, which is driving new discoveries and operational excellence. While QCaaS revenue increased by 41% to $1.6 million, overall bookings fell by 22%. D-Wave Quantum's market activity is shaped by a combination of anticipated booking growth, strategic partnerships, and industry advancements in quantum computing solutions.