Cerebras Systems reported financial results for the second quarter following its May initial public offering, raising its full-year revenue outlook while experiencing a significant stock decline in after-hours trading.
The chipmaker reported core revenue of $210 million for the second quarter, surpassing analyst expectations of $212.6 million. The company also disclosed GAAP revenue of $180.1 million, which excludes pass-through revenue. However, Cerebras recorded a net loss of $450.5 million compared to a profit of $309.5 million, or $1.91 per share, in the prior year. The company attributed most of the loss to stock-compensation costs totaling $386.6 million.
Management raised its full-year core revenue guidance to a range of $880 million to $890 million, up from the previous projection of $855 million to $865 million. The company also indicated that core gross margins would expand to between 38% and 40% in the current quarter. CEO Andrew Feldman stated that artificial intelligence demand remains strong and that customers are willing to pay premium prices for the company’s specialty inference chips, which are designed for tasks requiring low latency and fast responses.
Cerebras went public in May at $185 per share and raised $6.4 billion in its offering. The stock closed on Wednesday at $262.06, representing a 42% increase 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. Recently, Cerebras announced partnerships with Advanced Micro Devices and OpenAI, and reported $126 million in cloud revenue during the June quarter.
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