Cerebras $CBRS drops 14%; Q2 revenue misses by $14M despite higher guide
Original: Cerebras stock plunges 14% after second earnings report following IPO View original →
Cerebras Systems ($CBRS) fell about 14% in extended trading after second-quarter revenue of $180 million missed the $194 million LSEG consensus by $14 million. Adjusted loss per share was $0.05, narrower than the $0.17 loss expected. The split result showed that stronger adjusted profitability and guidance did not offset the GAAP revenue shortfall.
The company's official earnings release reported GAAP revenue of $180.1 million, up 74% from $103.3 million a year earlier. Core revenue, a non-GAAP measure that adjusts for pass-through revenue and customer-warrant amortization, reached $209.9 million, up 103%. Investors therefore received two revenue measures with different accounting treatments; the LSEG comparison cited by CNBC used GAAP revenue.
Cloud and other services supplied most of the growth. GAAP cloud revenue rose 281% to $126.0 million, while hardware revenue declined to $54.1 million from $70.3 million. GAAP gross margin was 14%, compared with a 41% core gross margin. The company recorded a $450.5 million net loss, including $386.6 million of stock-based compensation, after net income of $309.5 million a year earlier.
Cerebras raised full-year core-revenue guidance to $880 million-$890 million from $855 million-$865 million. It also projected third-quarter core revenue of $214 million-$216 million, a 38%-40% core gross margin and a negative 25%-23% core operating margin. Remaining performance obligations stood at $25.4 billion, and the company said more than 600 MW of data-center capacity was live or contracted for delivery by the end of 2027.
The balance sheet reflects the May IPO. Cash, restricted cash and short-term investments totaled $8.6 billion, while gross IPO proceeds were $6.4 billion. Cerebras closed at $262.06 before the report, 42% above its $185 IPO price, according to CNBC. The 14% after-hours decline followed a valuation that had already moved sharply since listing.
The next report will test whether cloud growth converts into GAAP revenue and gross margin. Watch third-quarter core revenue against the $214 million-$216 million range, the gap between 14% GAAP and 41% core gross margins, and delivery against the 600 MW capacity plan. Those figures will show whether the $25.4 billion backlog can become recognized revenue without another large expansion in losses.
Not investment advice. Verify all figures with primary sources before acting.
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