Shares of Cerebras Systems fell almost 20% on Wednesday following its first earnings report since going public. The decline came despite the company reporting better-than-expected first-quarter results, with revenue reaching $193 million, up 94% year-over-year. Net loss narrowed to $14 million, compared to $23.9 million in the same period last year.
The stock hit a new low, nearly reaching its IPO price. According to the company’s earnings report, revenue for the quarter reached $193 million, up 94% year-over-year. Net loss narrowed to $14 million, down from $23.9 million a year earlier.
The company said during its earnings call that it decided to make more capacity available sooner by temporarily renting its own systems back from an existing customer while it builds out and deploys its own data center capacity. This decision would cut into profit margins this year. The CEO noted that investors had misunderstood the company’s margin guidance, explaining that Cerebras will need to rent back some equipment from one of its largest customers.
The company forecast a full-year margin of 38% to 41%, compared with the 47% reported in the first quarter. The stock hit a new low on Wednesday, almost hitting the company’s IPO price. Source: techcrunch
