Cerebras Systems reported second-quarter financial results that included raised full-year guidance, though the announcement triggered a 14% stock decline in extended trading.
The chipmaker reported total revenue of $180 million for the second quarter. The company also disclosed a core revenue figure of $210 million, which excludes pass-through revenue and amortization of customer warrant assets. Following the earnings release, financial data provider LSEG indicated that the core revenue metric should be used going forward for growth calculations. For the current quarter, Cerebras projects core revenue between $214 million and $216 million.
The company elevated its full-year outlook, now expecting core revenue in the range of $880 million to $890 million, compared with the previous guidance of $855 million to $865 million. Despite the revenue growth, Cerebras recorded a net loss of $450.5 million for the quarter, largely driven by stock-compensation costs of $386.6 million. This contrasted with a profit of $309.5 million, or $1.91 per share, in the prior-year period.
Cerebras operates in the competitive artificial intelligence chip market, positioning its specialty inference chips as an alternative to dominant players like Nvidia, particularly for applications requiring low-latency responses. The company indicated its core gross margin will reach between 38% and 40% in the current quarter. Chief Executive Andrew Feldman attributed strong demand to the company’s premium pricing for fast inference capabilities and increased AI output capacity. The company reported $25.4 billion in remaining performance obligations and expects revenue to triple in the next fiscal year.
The company completed its initial public offering in May at $185 per share, raising $6.4 billion. The stock closed Wednesday at $262.06, representing a 42% gain from its IPO price. Recent developments include a partnership with Advanced Micro Devices with products entering production later this year, and OpenAI gaining access to Cerebras chips for its latest model. Cerebras’s cloud division generated $126 million in revenue during the second quarter.
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