Cerebras shares fell after the company raised its annual revenue forecast
Shares of AI chipmaker Cerebras Systems fell by about 12% in after-hours trading following the release of its quarterly report and an upward revision to its annual revenue forecast. This is the company’s second earnings report since its Nasdaq IPO in May, according to CNBC.
For the second quarter, Cerebras reported core revenue of $210 million and a loss of $2.89 per share. Meanwhile, revenue under GAAP standards totaled $180.1 million. For the current quarter, the company expects core revenue of $214–216 million, while the median forecast of analysts surveyed by LSEG was $212.6 million.
The company also raised its full-year core revenue forecast from $855–865 million to $880–890 million. Cerebras CEO Andrew Feldman stated that demand for artificial intelligence technologies is very high, and customers are willing to pay more for specialized inference chips.
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Cerebras competes with Nvidia, the market leader in AI chips, in applications where low response latency is critical. The company refers to this area as fast inference. It expects its core gross margin for the current quarter to be 38–40%. According to Feldman, the margin growth is driven by premium pricing for fast inference and improved system performance.
At the time of the report, Cerebras had $25.4 billion in outstanding contract obligations, which the company cited as a sign of significant future demand. It also forecasts a tripling of revenue in the next fiscal year. In the June quarter, Cerebras’ cloud service, which provides access to its chips, generated $126 million in revenue.
During its IPO in May, Cerebras priced its shares at $185 and raised $6.4 billion. On Wednesday, the company’s stock closed at $262.06—42% above the offering price.
