Cerebras Systems disclosed second-quarter financial results that included raised full-year guidance, yet the stock declined approximately 14% in after-hours trading. The chipmaker reported $180 million in total sales for the quarter, along with a core revenue figure of $210 million, which excludes pass-through revenue and amortization of customer warrant assets. The company guided for core revenue between $214 million and $216 million in the current quarter.
For the full year, Cerebras lifted its outlook to a core revenue range of $880 million to $890 million, up from a previous range of $855 million to $865 million. The company reported a net loss of $450.5 million, a reversal from a year-earlier profit of $309.5 million or $1.91 per share. The loss was primarily driven by stock-compensation costs of $386.6 million.
CEO Andrew Feldman stated that artificial intelligence demand remains exceptionally strong and that customers are willing to pay premium prices for the company’s specialty inference chips. Cerebras competes with market leader Nvidia in certain AI applications, particularly those requiring low latency responses. The company projected core gross margins would expand to between 38% and 40% in the current quarter, addressing prior investor concerns about profitability. Feldman noted that fast inference services command premium pricing and that output capacity has increased.
Cerebrugas completed its Nasdaq initial public offering in May at $185 per share, raising $6.4 billion. The stock closed on Wednesday at $262.06, representing a 42% gain from its IPO price. The company reported $25.4 billion in remaining performance obligations and projected that revenue would triple in the next fiscal year. Recent developments included a partnership with Advanced Micro Devices with products entering production later this year and an arrangement allowing OpenAI to utilize the company’s chips for its latest model. Cloud services generated $126 million in revenue during the June quarter.
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