Cerebras Systems reported second-quarter results that included an increase to its full-year revenue outlook, though the announcement was met with a sharp stock decline in after-hours trading.
The chipmaker posted $180 million in total second-quarter revenue, with a core revenue figure of $210 million after adjusting for pass-through revenue and customer warrant asset amortization. The company guided for third-quarter core revenue between $214 million and $216 million, while raising its full-year core revenue forecast to a range of $880 million to $890 million from a prior guidance of $855 million to $865 million.
Cerebras recorded a net loss of $450.5 million for the quarter, a significant swing from a $309.5 million profit, or $1.91 per share, in the prior-year period. The loss was largely attributable to stock-compensation expenses totaling $386.6 million. Leadership indicated that core gross margins would expand to between 38% and 40% in the current quarter, addressing investor concerns about profitability. Chief Executive Andrew Feldman attributed the margin expansion to premium pricing for the company’s specialty inference chips, which emphasize speed for interactive applications.
The company cited $25.4 billion in remaining performance obligations as evidence of strong future demand. Cerebras went public on the Nasdaq in May at an offering price of $185 per share, raising $6.4 billion. The stock closed the day at $262.06, representing a gain of 42% from its IPO price despite the post-earnings decline. Recently, Cerebras announced a partnership with Advanced Micro Devices, with production slated for later in the year, and disclosed that OpenAI can utilize its chips for its latest model offerings. The company’s cloud computing segment generated $126 million in revenue during the June quarter.
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