D-Wave Quantum Inc. (NYSE: QBTS) saw its shares drop by nearly 22% following its third-quarter earnings report, despite revenue and bookings surging, technological advances, and a strong cash position. The stock is still up 1,700% YOY, but investors remain skeptical about the company’s marketability and profitability.

The company reported impressive revenue growth of $3.7 million, more than double the previous year, and bookings climbed to $2.4 million for the third quarter. An agreement worth 10 million euros for an Advantage2 system installation in Italy signals continued momentum through the end of the year.

D-Wave has made progress in the technology sector, particularly in military and defense applications. The company’s cash position is robust at $836 million, a substantial increase from the previous year, positioning them for further growth.

Despite positive signs, the main concern for D-Wave is when quantum technology will become widespread enough for consistent profitability. Investors are optimistic about the company’s potential but are cautious about waiting for returns and competition in the quantum space.

D-Wave remains a strong candidate in the quantum industry with massive returns in the last year. Analysts rate QBTS shares as a Buy, and there is anticipation that the company will use its cash reserves to acquire smaller quantum tech rivals to expand capabilities and eliminate competition.

Read more at Nasdaq: An Earnings Win With a Stock Slump: What’s Happening With D-Wave?