Full Year 2022 Arqit Quantum Inc Earnings Call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Scott Buck - H.C. Wainwright - Analyst : Hi, good morning, guys. Thank you for taking my questions. David, the first one, how should we think about these channel partnerships converting to revenue? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 14, 2022 / 4:00PM, ARQQ.OQ - Full Year 2022 Arqit Quantum Inc Earnings Call

Question: Scott Buck - H.C. Wainwright - Analyst : Great, that's very helpful. I'm curious, what is the level of product education, you've already provided the partners? And how should we think about, how that those sales channels begin to scale?

Question: Scott Buck - H.C. Wainwright - Analyst : That's great. And are there any exclusivity arrangements in any of these partnership contracts that would meaningfully restrict your ability to sign additional channel partners? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 14, 2022 / 4:00PM, ARQQ.OQ - Full Year 2022 Arqit Quantum Inc Earnings Call

Question: Scott Buck - H.C. Wainwright - Analyst : Okay. Great. And then I wanted to ask you a little bit about the work you're doing on the trade finance side. And obviously, that's a large market. I'm curious how far out are we from that becoming a meaningful revenue contributor?

Question: Scott Buck - H.C. Wainwright - Analyst : Yes. No, that makes a ton of sense. And then last one for me. David, any hesitancy you're seeing among potential customers just given kind of the rising level of macro uncertainty?

Question: Scott Buck - H.C. Wainwright - Analyst : Okay. Great. I appreciate your time this morning, guys. Thank you.

Question: Nihal Choksi - Northland Capital Markets - Analyst : Yeah. Thank you for taking my call. So how long ago were the Dell, AWS and Fortinet relationships started and were they part of that $740 million pipeline signed a few months ago?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Understood. So, but were they actually part of that sort of $740 million pipeline that you guys started from the SPAC roadshow?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Understood. And is your understanding of what the value of that pipeline for each of those changed since citing that initial $740 million pipeline?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Got it. And breaking down that price times volume equation that you now have greater detail and confidence on what the price times volume is, how has that price changed from 15 months ago and volume changed from 15 months ago?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Great. So you had $7 million in QuantumCloud for fiscal year 2022. What is actually to exit ARR for fiscal year 2022 on the ARR? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 14, 2022 / 4:00PM, ARQQ.OQ - Full Year 2022 Arqit Quantum Inc Earnings Call

Question: Nihal Choksi - Northland Capital Markets - Analyst : Got it. Okay. And then what do you expect Arqit needs to do other than educating these partners 'sales teams to sell the Arqit solution in order to drive the customers of Dell, AWS and Fortinet to adopt the Arqit solution? What Arqit is going to be doing beyond just the education of their sales team?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Got it. Okay. A couple more quick questions here. Just going back to the $7 million QuantumCloud. Is that all effectively subscription revenue or is some of that enterprise licenses were it's essentially a perpetual?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Okay. So just to be clear then, when you say enterprise license revenue, is that term based or is it a perpetual arrangement? REFINITIV STREETEVENTS | www.refinitiv.com | Contact Us consent of Refinitiv. 'Refinitiv' and the Refinitiv logo are registered trademarks of Refinitiv and its affiliated companies. DECEMBER 14, 2022 / 4:00PM, ARQQ.OQ - Full Year 2022 Arqit Quantum Inc Earnings Call

Question: Nihal Choksi - Northland Capital Markets - Analyst : Yup, got it, right. And then finally this $50 million ATM that you announced this morning, what share price range do you expect to be utilizing it? And what is your current cash burn rate?

Question: Nihal Choksi - Northland Capital Markets - Analyst : And cash burn rate?

Question: Nihal Choksi - Northland Capital Markets - Analyst : Okay, great, great. Thank you. Well, congratulations on these partnerships you have announced, they are indeed significant.