Cerebras Stock Falls 11% After First-Ever Public Earnings Report

Cerebras Systems reported strong top-line growth, with revenue rising 92% year over year, but the company also projected weaker core gross margins for the upcoming quarter, weighing on investor sentiment.

In its first earnings release since its May IPO, Cerebras Systems (CBRS) fell about 11% in after-hours trading after guiding to lower profitability metrics for the next quarter.

First-quarter revenue nearly doubled compared to the same period last year, reaching $193.4 million, while an adjusted net loss of $2.5 million came in significantly better than analyst expectations of a $36.75 million loss.

For the second quarter, the company forecast revenue of roughly $194 million. However, investors appeared more concerned with margin compression, as core gross margin is expected to decline to 36%–38%, down from 46.5% in the first quarter.

Cerebras went public in a $6 billion IPO in May at $185 per share. The stock quickly surged to as high as $385 post-listing before pulling back, and it fell a further 11% in after-hours trading to around $201.55 following the earnings update.