In its inaugural earnings report since going public in May, Cerebras Systems (CBRS) has seen its stock decline by 11% in after-hours trading after projecting lower profit margins for the upcoming quarter.
The company reported a remarkable 92% increase in revenue year-over-year, reaching $193.4 million in the first quarter, while its adjusted net loss of $2.5 million was significantly better than analysts' expectations of a $36.75 million loss.
Looking ahead to the second quarter, Cerebras anticipates revenue of $194 million. However, investor sentiment appears to be focused on the projected core gross margin, which is expected to be between 36% and 38%, a decrease from 46.5% in the previous quarter.
During its May IPO, Cerebras raised $6 billion at a share price of $185. Following the IPO, the stock surged to a peak of $385 but has since dropped, currently trading at $201.55 after the latest after-hours decline of 11%.