Cerebras Systems (CBRS) experienced an 11% drop in its stock price during after-hours trading following its first earnings report since its public debut in May. The decline comes as the company forecasts lower profit margins for the next quarter.
In the report, Cerebras revealed a substantial year-over-year revenue growth of 92%, totaling $193.4 million for the first quarter. Additionally, the company reported an adjusted net loss of $2.5 million, which was significantly better than analysts' predictions of a $36.75 million loss.
For the upcoming second quarter, Cerebras projects revenue to reach $194 million. However, investor concerns are primarily centered around the expected core gross margin, projected to fall between 36% and 38%, down from 46.5% in the prior quarter.
