Cerebras Systems reported second-quarter revenue of $210 million, which is considered core revenue, and a net loss of $450.5 million, primarily due to stock-compensation costs of $386.6 million. The company raised its full-year revenue outlook to between $880 and $890 million, up from a previous estimate of $855 million to $865 million.
Analysts had expected $212.6 million in revenue for the quarter, indicating that while Cerebras met its own expectations, it fell short of broader analyst estimates. CEO Andrew Feldman highlighted the increasing demand for AI chips, particularly for low-latency applications, positioning Cerebras as a competitor to Nvidia.
The company also noted an expected expansion in core gross margins to between 38% and 40%, which may alleviate some investor concerns. Despite the stock's decline to $262.06 after the earnings report, it remains 42% above its IPO price of $185.
Cerebras has reported $25.4 billion in remaining performance obligations, suggesting strong future demand, and anticipates tripling its revenue in the next fiscal year. The company is also expanding its partnerships, including one with Advanced Micro Devices, and reported $126 million in revenue from its cloud services during the June quarter