AI chipmaker Cerebras Systems reports $193.4 million Q1 revenue but warns of shrinking profit margins next quarter.
Cerebras Systems (CBRS) fell 11% in after-hours trading after forecasting a decline in core gross margins for the second quarter. The company reported first-quarter revenue of $193.4 million, up 92% year-over-year, while its adjusted net loss narrowed to $2.5 million, beating analyst expectations of $36.75 million.
For the second quarter, Cerebras guided to revenue of $194 million but projected gross margins of 36%-38%, down from 46.5% in the prior quarter. The company raised $6 billion in its May IPO at $185 per share, with shares peaking at $385 before retreating.
Shares dropped to $201.55 in after-hours trading, reflecting investor concern over margin compression despite strong revenue growth.