Needham analyst Quinn Bolton reiterated D-Wave Quantum Inc (NYSE:QBTS) with a Buy rating and a $2.50 price target.

Bolton noted that D-Wave reported total revenues of $2.5 million in the quarter, below consensus expectations of $3.0 million. The $2.465 million top-line number represented an increase of 55.7% on an annualized basis.

Management reported bookings of $4.5 million, which represented a 54% year-over-year increase relative to 2023.

For the second quarter, management did not provide a target for bookings and revenue following a significant increase in bookings in the first quarter. Regarding strategy, the company wants to expand its commercial customer base further, comprising ~70% of all revenues on a trailing 12-month basis.

Bolton flagged that quarterly bookings increased year over year for the eighth consecutive quarter, were broad-based, and included two large multi-year orders.

He also highlighted that D-Wave introduced its new fast anneal feature, which significantly accelerates quantum processing speeds. Since its launch in April, more than 530k jobs have taken advantage of fast anneal.

He noted that the technology roadmap continues to progress, as the company recently yielded 4,800+ qubit processors for its upcoming Advantage2 system.

D-Wave renewed its multi-year partnership with USC, Bolton added. Bolton projected second-quarter revenue and EPS of $2.8 million and $(0.08).

Benchmark analyst David Williams maintained a Buy rating on D-Wave Quantum with a price target of $4.

Williams said that D-Wave's first-quarter bookings show continued momentum. They benefit from the recent demonstration of potentially achieving Quantum Supremacy, which is driving strong inbound interest.

While QBTS continues to drive commercial momentum, the analyst is encouraged by the expansion of funding opportunities in the recent National Defense Authorization Act, which now includes language to support annealing, hybrid approaches, and gate models.

He noted these government-supported quantum computing initiatives will generate meaningful new opportunities for D-Wave to participate in hardware sales, adding another revenue stream to the current commercially driven QCaaS and services revenue.

Williams projected second-quarter revenue and EPS of $2.8 million and $(0.07).

Piper Sandler analyst Harsh V. Kumar reiterated an Overweight rating on D-Wave Quantum with a price target of $3.

Kumar is pleased with the strength of traction in D-Wave's revenues and technological prowess. The company continues to outpace its competitors in quantum computing, specifically around its annealing solution.

The analyst noted that D-Wave is the only company with a commercial model in the quantum industry. Substantial increases in the company's customer portfolio highlighted this once again.

He is also excited about fast annealing technology, which is opening up new avenues for the company's growth.

Kumar projected second-quarter revenue and EPS of $2.8 million and $(0.09).

QBTS Price Action: D-Wave Quantum shares traded higher by 1.90% at $1.40 at the last check Tuesday.