Cerebras Systems delivered strong revenue growth, with sales up 92% from a year earlier, but a weaker margin outlook for the next quarter pressured the stock.
In its first earnings release since going public in May, Cerebras Systems (CBRS) dropped roughly 11% in after-hours trading after issuing guidance pointing to lower profitability in the upcoming quarter.
First-quarter revenue almost doubled year over year to $193.4 million, while the company posted an adjusted net loss of $2.5 million, outperforming analyst estimates that had projected a $36.75 million loss.
For Q2, the company guided revenue to about $194 million. However, investor attention shifted to profitability metrics, with core gross margin expected to fall to 36%–38% from 46.5% in the prior quarter.
Cerebras completed a $6 billion IPO in May at $185 per share. The stock briefly surged to $385 post-listing before retreating, and it extended losses by another 11% in after-hours trading to around $201.55 following the report.
