Cerebras Systems posted a sharp rise in revenue, up 92% year over year, but its outlook for lower core gross margins next quarter weighed on investor sentiment.
In its first earnings report since its May IPO, Cerebras Systems (CBRS) dropped about 11% in after-hours trading after guiding to weaker profitability in the coming quarter.
Revenue for the first quarter nearly doubled from a year earlier to $193.4 million, while the company reported an adjusted net loss of $2.5 million—well ahead of analyst expectations for a $36.75 million loss.
Looking ahead, Cerebras projected second-quarter revenue of around $194 million. However, the focus for investors shifted to margins, with core gross margin expected to decline to 36%–38%, compared with 46.5% in Q1.
Cerebras raised $6 billion in its May IPO at $185 per share. The stock initially surged to a high of $385 shortly after listing, before pulling back. It extended losses in after-hours trading, falling another 11% to about $201.55 following the earnings release.
