Cerebras Systems, following its initial public offering in May, experienced an 11% decline in after-hours trading after announcing expectations for reduced profit margins in the upcoming quarter.
The company’s first-quarter revenue reached $193.4 million, nearly doubling compared to the same period last year. Additionally, Cerebras reported an adjusted net loss of $2.5 million, significantly better than analyst predictions of a $36.75 million loss.
Looking ahead to the second quarter, Cerebras has projected revenue of $194 million. However, investor sentiment appears to be primarily influenced by the anticipated gross margin, which is expected to fall to between 36% and 38%, down from 46.5% in the first quarter.
In May, Cerebras raised $6 billion through its IPO, which was priced at $185 per share. The stock initially surged to a high of $385 shortly after its market debut but has since seen a decline, now trading at $201.55 following the latest earnings report.
Cerebras Systems reported strong revenue growth in its first quarter post-IPO, but a forecast of lower profit margins has led to a significant drop in its stock price. Investors are reacting to the company's guidance for the second quarter, which indicates a decline in gross margins.