ANNUAL REPORT 2024 Dear D-Wave Stockholders, I am very pleased to report to you that quantum computing is here, now. $W':DYHZHDUHVHHLQJȴUVWKDQGWKHYDOXHWKDWRXUTXDQWXPWHFKQRORJ\LVGHOLYHULQJIRUFXVWRPHUVWRGD\8QOLNHZLWKRWKHUTXDQWXPFRPSXWLQJDSSURDFKHVWKH\GRQȇWQHHGWRZDLWDQRWKHURU\HDUVΖQIDFWRXUFXVWRPHUVDUHVHHLQJWDQJLEOHEHQHȴWVIURPXVLQJRXUV\VWHPVULJKWQRZVROYLQJKLJKO\FRPSOH[FRPSXWDWLRQDOSUREOHPVRIWHQEHWWHUDQGIDVWHUWKDQWKHLUFXUUHQWFODVVLFDOWHFKQRORJLHV':DYHTXDQWXPFRPSXWHUVRHUDPRUHSRZHUIXODQGHQHUJ\HɝFLHQWDSSURDFKWKDQFODVVLFDOFRPSXWHUVΖQDZRUOGIDFLQJDVLJQLȴFDQWFRPSXWDWLRQDOFUXQFKDQGHVFDODWLQJHQHUJ\FRVWVIURPDUWLȴFLDOLQWHOOLJHQFH $Ζ ZRUNORDGVWKHRSSRUWXQLW\WRXVHLQFUHGLEO\SRZHUIXOTXDQWXPFRPSXWHUVWKDWFRQVXPHVOHVVHOHFWULFLW\WKDQFODVVLFDOFRPSXWLQJIRUKDUGSUREOHPVKDVWKHSRWHQWLDOWREHJDPHFKDQJLQJ This is quantum realized, brought to you only by D-Wave. :HGHYHORSHGWKH4XDQWXP5HDOL]HGIUDPHZRUNWRGHȵDWHLQGXVWU\K\SHDQGKHOSSHRSOHIRUPXODWHDQLQIRUPHGSRVLWLRQRQTXDQWXP7KHIUDPHZRUNSUHVHQWVWKUHHEHQFKPDUNVWRFRQVLGHUZKHQDVVHVVLQJDSDUWLFXODUTXDQWXPFRPSDQ\ȇVYDOXH)LUVWGRHVWKHTXDQWXPFRPSXWLQJFRPSDQ\KDYHWHFKQRORJ\WKDWFDQVROYHFRPSOH[SUREOHPVEHWWHURUIDVWHUWKDQFODVVLFDOFRPSXWLQJDORQH"6HFRQGDUHWKHTXDQWXPV\VWHPVKLJKO\SHUIRUPDQWUHOLDEOHDQGDYDLODEOH"7KLUGGRHVWKHFRPSDQ\KDYHSURYHQFRPPHUFLDOFXVWRPHUVXFFHVVHVLQSURRIRIFRQFHSWVDQGLQSURGXFWLRQDSSOLFDWLRQGHSOR\PHQWV"7KHVHDUHWKHFULWHULDWKDWFXVWRPHUVQHHGWRVHHWRUHDOL]HUHDOYDOXHIURPTXDQWXPFRPSXWLQJWRGD\ȂDQGZHEHOLHYHWKDWRQO\':DYHFXUUHQWO\PHHWVDOORIWKHVHFULWHULD ΖWȇVDYHU\H[FLWLQJWLPHIRU':DYHDVZHOODVRXUFXVWRPHUVSDUWQHUVDQGVWRFNKROGHUV2XUEXVLQHVVPRPHQWXPLVDFFHOHUDWLQJ7KHLQFUHDVLQJGHPDQGIRURXUWHFKQRORJ\LVHYLGHQWLQRXUUHFRUG%RRNLQJVIRUȴVFDO\HDUZKLFKZHUHPLOOLRQDQLQFUHDVHRIPLOOLRQRUIURP%RRNLQJVRIPLOOLRQIRUȴVFDO\HDUΖQDGGLWLRQZHVXEVWDQWLDOO\LPSURYHGWKHVWUHQJWKRIRXUEDODQFHVKHHWE\UDLVLQJDGGLWLRQDOHTXLW\DQGSD\LQJRRXUVHFXUHGGHEWUHVXOWLQJLQH[FHVVRIPLOOLRQLQFDVKDVRIWKHGDWHRIRXU0DUFKȴVFDO\HDUHDUQLQJVUHOHDVH:HEHOLHYHWKLVOHYHORIFDVKLVVXɝFLHQWWREULGJHWKHFRPSDQ\WRVXVWDLQHGSURȴWDELOLW\ 2XUWHFKQRORJLFDOGHYHORSPHQWDQGVFLHQWLȴFPLOHVWRQHVUHȵHFWDWUDFNUHFRUGRIFRQWLQXRXVLQQRYDWLRQDQGSURGXFWGHOLYHU\GHVLJQHGWRXQORFNODVWLQJFXVWRPHUYDOXH$FKLHYHPHQWVLQFOXGHGHPRQVWUDWLRQVRIRXUV\VWHPVROYLQJSUREOHPVEH\RQGWKHUHDFKRIFODVVLFDOFRPSXWHUVLQFUHDVHGTXELWFRKHUHQFHDQGFRQQHFWLYLW\H[FLWLQJHDUO\H[SORUDWLRQRITXDQWXP$ΖQRYHOTXDQWXPEORFNFKDLQDUFKLWHFWXUHVDQGPXFKPRUH:HȇYHVHHQFXVWRPHUVDGRSWLQJRXUWHFKQRORJ\WRDGGUHVVVRPHRIWKHLUPRVWFRPSXWDWLRQDOO\GLɝFXOWSUREOHPVDQGEXLOGDSSOLFDWLRQVWKDWDUHGULYLQJRSHUDWLRQDOHɝFLHQFLHVDQGIXHOLQJQHZVFLHQWLȴFGLVFRYHULHV :HFRQWLQXHWRVWDQGDWWKHIRUHIURQWRIWKHTXDQWXPPDUNHW:HZHUHWKHȴUVWWRODXQFKFRPPHUFLDOTXDQWXPV\VWHPVWKHȴUVWWRKDYHTXDQWXPDSSOLFDWLRQVUXQQLQJLQSURGXFWLRQIRUFRPPHUFLDOFXVWRPHUVDQGZHEHOLHYHZHDUHWKHȴUVWWRDFKLHYHDGHPRQVWUDWLRQRITXDQWXPVXSUHPDF\RQDUHDOZRUOGSUREOHP D-Wave is Quantum Realized. ANNUAL REPORT 2024 Beyond Classical: D-Wave Outperforms One of World’s Most Powerful Supercomputers :HEHOLHYHWKDWZHDUHWKHRQO\TXDQWXPFRPSXWLQJFRPSDQ\WKDWFDQFODLPDQGVXSSRUWWKDWLWKDVRXWSHUIRUPHGFODVVLFDOFRPSXWLQJRQDXVHIXOKLJKO\FRPSOH[FRPSXWDWLRQDOSUREOHPRIUHOHYDQFHWREXVLQHVVDQGVFLHQFHWRGD\7KLVJURXQGEUHDNLQJZRUNZKLFKZDVDFKLHYHGXVLQJRXUTXELW$GYDQWDJH70prototype annealing quantumFRPSXWHUZDVSXEOLVKHGLQDSHHUUHYLHZHGSDSHULQ6FLHQFHRQ0DUFK':DYHȇVTXDQWXPFRPSXWHUSHUIRUPHGDFRPSOH[PDJQHWLFPDWHULDOVVLPXODWLRQLQPLQXWHVDQGZLWKDOHYHORIDFFXUDF\WKDWZRXOGWDNHQHDUO\RQHPLOOLRQ\HDUVXVLQJRQHRIWKHZRUOGȇVPRVWSRZHUIXOVXSHUFRPSXWHUVΖQDGGLWLRQLWZRXOGUHTXLUHPRUHWKDQWKHworld’s annual electricity consumption to solve this problem using that supercomputer, which is built with graphicsprocessing unit clusters. It’s a truly remarkable achievement, and it’s just the beginning. We are already developing applications that useWHFKQLTXHVIURPWKHTXDQWXPVXSUHPDF\GHPRQVWUDWLRQLQFOXGLQJEORFNFKDLQ:HLQWURGXFHGDQRYHOEORFNFKDLQDUFKLWHFWXUHWKDWDGGVTXDQWXPWRWUDGLWLRQDOEORFNFKDLQFRPSXWDWLRQWRHQKDQFHVHFXULW\DQGHɝFLHQF\%ORFNFKDLQVUHO\RQKDVKLQJDPDWKHPDWLFDOIXQFWLRQWKDWDFWVOLNHDGLJLWDOȴQJHUSULQW':DYHKDVEXLOWDQGWHVWHGDȊTXDQWXPSURRIRIZRUNȋDOJRULWKPWKDWXVHVTXDQWXPFRPSXWDWLRQWRJHQHUDWHDQGYDOLGDWHEORFNFKDLQKDVKHV2XUUHVHDUFKLQGLFDWHVWKDWXVLQJTXDQWXPFRPSXWDWLRQIRUKDVKLQJDQGSURRIRIZRUNFRXOGSRWHQWLDOO\UHTXLUHDIUDFWLRQRIWKHHOHFWULFLW\XVHGE\FODVVLFD