Cerebras Systems beats Q1 revenue estimate, shares fall 14% on margin outlook
Cerebras Systems reported first-quarter GAAP revenue of $193.4 million and core revenue of $191.3 million, topping the $181 million consensus. Shares fell 14% after the AI chipmaker forecast a sharp decline in gross margins for Q2, despite raising full-year guidance.
Cerebras Systems reported first-quarter GAAP revenue of $193.4 million and core revenue of $191.3 million, exceeding Wall Street expectations of about $181 million [1]. The AI chipmaker, which completed its initial public offering earlier this year, saw revenue increase 92% from $99.5 million a year earlier [2]. Shares fell 14% to about $194 on Tuesday despite the beat [1].
The decline came after Cerebras forecast a sharp decline in gross margins for the current quarter [1]. The margin guidance overshadowed the top-line performance and a raised full-year revenue outlook, signaling investor concern that the company's path to profitability may take longer than anticipated even as demand for its AI chips accelerates.
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