Cerebras Systems announced its second quarterly earnings report following its initial public offering in May, with mixed results that triggered a significant stock decline in after-hours trading.
The chipmaker reported total revenue of $180 million for the second quarter. However, the company highlighted a core revenue figure of $210 million, which excludes pass-through revenue and amortization of customer warrant assets. Following the earnings announcement, the major index provider acknowledged that the core revenue metric should be used going forward for growth calculations. For the current quarter, Cerebras projected core revenue between $214 million and $216 million.
Despite the near-term performance, Cerebras raised its full-year outlook substantially. The company now expects core revenue between $880 million and $890 million, compared with its prior guidance range of $855 million to $865 million. The chipmaker recorded a net loss of $450.5 million for the quarter, a reversal from the prior-year period when it recorded a profit of $309.5 million, or $1.91 per share. The loss was primarily attributable to stock-compensation costs of $386.6 million.
CEO Andrew Feldman emphasized strong market conditions, noting that demand for the company’s specialty inference chips remains robust and that customers are willing to pay premium prices. Cerebras competes with larger rivals like Nvidia by focusing on applications requiring low latency, or rapid responses for interactive tasks. The company projected its core gross margin would expand to between 38% and 40% in the current quarter, addressing investor concerns about profitability. Feldman indicated that gross margins benefit from premium pricing for the company’s fast inference capabilities and recent increases in AI output per system.
Cerebras had approximately $25.4 billion in remaining performance obligations, a figure management characterized as evidence of strong future demand. The company also stated it expects revenue to triple in the next fiscal year. Recent developments included a partnership with Advanced Micro Devices with products entering production later in the year, and an agreement allowing OpenAI to utilize Cerebras chips for its latest model. The company’s cloud business generated $126 million in revenue during the June quarter.
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