Cerebras Declines 11% After Investors Digest First Public Financial Results

Cerebras Systems reported a strong increase in revenue, up 92% year over year, but investor sentiment weakened after the company forecast lower margins for the next quarter.

In its first earnings release since its May IPO, Cerebras Systems (CBRS) declined roughly 11% in after-hours trading after issuing guidance that pointed to softer profitability ahead.

First-quarter revenue nearly doubled from the prior year to $193.4 million, while the company posted an adjusted net loss of $2.5 million, comfortably beating analyst expectations of a $36.75 million loss.

Looking ahead, Cerebras guided second-quarter revenue to about $194 million. However, markets focused on margin compression, with core gross margin expected to fall to 36%–38% from 46.5% in the first quarter.

Cerebras raised $6 billion in its May IPO at $185 per share. The stock briefly climbed to $385 after listing before pulling back, and it extended losses by another 11% in after-hours trading to around $201.55 following the earnings report.