In its first earnings report since its May IPO, Cerebras Systems (CBRS) is down 11% in after-hours trading after guiding for lower profit margins in the next quarter.
First-quarter revenue nearly doubled from a year earlier to $193.4 million, and the company’s adjusted net loss of $2.5 million outpaced analyst forecasts of $36.75 million.
For the second quarter, the company targets revenue of $194 million, but investors, for now, are focused on core gross margins — the company expects 36%-38% in the second quarter, compared with 46.5% in the first quarter.
Cerebras raised $6 billion in its May IPO at a price of $185 per share. The stock soared to $385 shortly after going public, but has since retreated. It is down 11% at $201.55 in after-hours trading.