This Genius Quantum Computing Stock Just Grew Its Revenue at a 755% Rate

One of my favorite investments in the quantum computing space is IonQ (NYSE: IONQ), and in its first-quarter report, it just revealed incredible top-line growth.

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Quantum computing is closer to reality than you may think

Quantum computing is still a fledgling technology, but as companies like IonQ work toward producing commercially viable systems, they are securing partnerships with potential future customers in advance. Cutting-edge companies want to be ready so that when genuinely useful quantum computers become available, they are ready to hit the ground running.

IonQ already boasts partnerships with several major companies, and it has become a top choice due to its technological edge. Quantum computers are all built around "qubits" -- quantum bits, their fundamental unit of information. But qubits can be created in several different ways, and all the players are using their own unique variations. So far, IonQ's technology holds the record for quantum computing accuracy. This is a big deal. Even the best current systems generate high levels of errors in their results, which is the primary reason that quantum computing isn't a commercially useful technology yet.

Another issue is the amount of computing power available. Just as traditional computers process information in bits, quantum computers use qubits. The more qubits in a system, the more powerful it is. IonQ is working toward its groundbreaking 256-qubit computer, which will be able to provide impressive results for those who deploy it, although even that will still be a bit too small for widespread commercial relevance. Still, the company announced its first system sale in the first quarter of this year.

In Q1, IonQ's combined revenue from system sales and research contracts topped $64.7 million -- up 755% year over year. That's major growth for any company, and if IonQ can keep signing new clients and selling more systems, it has the potential to keep producing impressive top-line growth for several more quarters.

While IonQ is still deeply unprofitable, with an adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) loss of $96.8 million in Q1, it's a top competitor in its space and a leading investment among the pure-plays in the sector. While there is no guarantee of success for IonQ over the long term, I think these client wins and its demonstrated ability to capturie some of the initial market opportunity go a long way toward establishing its potential to become a viable business.

Keithen Drury has positions in IonQ. The Motley Fool has positions in and recommends IonQ. The Motley Fool has a disclosure policy.