Alan Baratz: Yes, so David, as you know, we’ve talked regularly about the fact that D-Wave is the only commercial quantum computing company, and that everybody else is pretty much taking government research funding to help build their systems. However, there is a lot of that government funding that’s been handed out to the other quantum computing companies, and that’s not something that D-Wave has participated in up to this point in time. In part because our systems are commercial today, so we don’t need government research grants to help us build them. But in part because governments around the world until very recently had been focused on only gate-model and only our long-term R&D in the development of those systems.
But what we’ve been focused on is helping governments around the world, understand that quantum is real today and can be a benefit to their operations today. And so for example, we’ve had success getting language into the U.S. House version of the National Defense Authorization Act that talks to being inclusive of all quantum technologies that includes a kneeling as well as language around focusing on near-term applications of quantum computing, not just long-term research. And we are starting to have success in getting governments around the world. I mentioned some of those countries a minute ago to adopt the same point of view. Now it takes time for these things to kind of transition from making sure the governments understand, then getting them into the various acts and the appropriations, and then being able to tap into the funding.
But we’re making good progress on that. And so, we expect that over the course of the next year or two, we’ll start to see that money flowing and D-Wave will be best able to benefit from that aspect of government funding because we really are the only ones that can help with near-term solutions. And by the way, I also mentioned that I was at the space in Missile Defense Symposium just this week in Huntsville with Davidson where we’re demonstrating some work that we’ve done with them. And there was an enormous amount of interest in that because until then, it really just wasn’t understood by that community that quantum can help solve important problems that they’re facing today.
David Williams: Thanks so much guys. Certainly, I appreciate the help.
Operator: And our next question comes from Suji Desilva from ROTH Capital. Please go ahead, Suji.
Suji Desilva: Good morning, Alan. Good morning, John. Congratulations on the progress here. So the average deal size increasing, I’m wondering if this level from last year is kind of the new level or whether those deal sizes can increase in meaning in similar magnitudes over the next 12 months, 24 months. I just know digging into that bit, there’s a number of applications per customer trending higher from kind of trying a few to more. And are – is the percent of deals involving professional services increasing? I’m just trying to figure out some of those indicators would lead to the belief that deal size will continue to grow?
Alan Baratz: Yes, so Suji, there are a couple of things that drive the increase in deal sizes. One is in fact customers buying into quantum, more broadly upfront as represented by deals that include a combination of not just one, but multiple POCs and quantum compute as a service in support of those POCs and ultimately moving them into production. And so, the bigger deals are in part as a result of customers buying upfront more of our capability as represented by not just a single POC, but multiple POCs across different applications plus quantum compute as a service. And then the second element of that is as applications move from POCs into production that represents a significant increase as well because the running of those applications in production, really generates higher revenue quantum compute as a service deals than the shorter upfront POC engagement deals.
