Cerebras Reports 92% Revenue Growth in First Earnings Since May IPO

Cerebras reported revenue of $193.4 million in the first quarter, a 92% increase from $99.5 million a year earlier, in the AI chipmaker's first earnings report since its initial public offering in May. The company's net loss shrank to $14 million from $23.9 million a year ago. The earnings come after Cerebras went public on the Nasdaq in May, capitalizing on investor interest in infrastructure for running AI models, with the IPO raising over $6 billion—the most for a U.S. technology company since Uber's debut in 2019.

Cerebras Reports $193.4 Million Q1 Revenue with 92% Year-Over-Year Growth

The company reported a loss per share of 22 cents on revenue of $193.4 million for the first quarter, according to a statement filed with the SEC. Revenue increased 92% from $99.5 million a year earlier. Net loss was $14 million, compared to $23.9 million, or 46 cents per share, a year ago. Founded in 2015, Cerebras is trying to challenge AI chip leader Nvidia in one corner of the market and operates a service for running AI models through data centers filled with its processors.

Stock Declines 28% Since May IPO Opening

After pricing its IPO at $185 in May, Cerebras saw its stock open at $350 and close at $311.07. The shares have since dropped 28%, closing on Tuesday at $226.72. The stock fell 5% in extended trading following the earnings report.

Company Issues Q2 and Full-Year Revenue Guidance

Cerebras said it expects core revenue growth of 88% from a year earlier to $914 million for the second quarter. The company said full-year core revenue will be between $855.5 million and $865 million, representing 69% growth at the midpoint.

Cerebras Announces AWS Partnership and OpenAI Deal in Q1

During the first quarter, Cerebras said its chips will go inside Amazon Web Services' data centers. The company also announced a deal worth over $20 billion to supply OpenAI with computing power. Cerebras enjoys a performance advantage in part by packing many times more SRAM memory on its chip than Google's latest tensor processing unit or the Groq 3 LPU chip that Nvidia announced in March, according to a June 8 Mizuho note to clients.

FAQ

What revenue did Cerebras report in its first quarter earnings? Cerebras reported revenue of $193.4 million in the first quarter, a 92% increase from $99.5 million a year earlier.

How has Cerebras stock performed since its May IPO? After pricing its IPO at $185 and opening at $350 in May, Cerebras shares have dropped 28% to close at $226.72 on Tuesday, with an additional 5% decline in extended trading following the earnings report.

What revenue guidance did Cerebras provide for the second quarter and full year? Cerebras expects second quarter core revenue of $914 million, representing 88% growth from a year earlier, and full-year core revenue between $855.5 million and $865 million, representing 69% growth at the midpoint.