Cerebras falls 8% after chipmaker forecasts shrinking margin in first earnings report since IPO
Cerebras said revenue almost doubled in the AI chipmaker's first earnings report since its initial public offering last month. The stock fell 10% in extended trading as the company forecast a drop in its gross margin.
The company's revenue increased 92% in the first quarter from $99.5 million a year earlier, according to a statement. Net loss narrowed to $14 million from $23.9 million, or 46 cents per share, a year ago.
Capitalizing on investor interest in infrastructure for running AI models, Cerebras went public on the Nasdaq in May. After pricing its IPO at $185, Cerebras saw its stock open at $350 and close at $311.07.
The shares have since dropped 28%, closing on Tuesday at $226.72.
Cerebras said its core gross margin, or the profit left after accounting for the cost of goods sold, will shrink to between 36% and 38% in the second quarter from 46.5% in the first.
The company said it expects core revenue growth of 88% from a year earlier to $914 million. And full-year core revenue will be between $855.5 million and $865 million, representing 69% growth at the midpoint, Cerebras said.
Founded in 2015, the Cerebras raised over $6 billion in the offering, the most for a U.S. technology company since Uber's debut in 2019.
Cerebras is trying to challenge AI chip leader Nvidia in one corner of the market, and it also operates a service for running AI models through data centers filled with its processors.
Cerebras enjoys a performance advantage in part by packing many times more SRAM memory on its chip than Google's latest tensor processing unit or the Groq 3 LPU chip that Nvidia announced in March, Mizuho said in a June 8 note to clients.
During the first quarter, Cerebras said its chips will go inside Amazon Web Services' data centers, and it announced a deal worth over $20 billion to supply OpenAI with computing power.
Executives will discuss the results with analysts on a conference call starting at 5 p.m. ET.
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