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Cerebras stock plunges after earnings as CEO says margin outlook was misunderstood
TechCrunch • • business
Key Points:
- Cerebras Systems' shares fell nearly 20% despite reporting better-than-expected first-quarter earnings, driven by concerns over a lowered full-year gross margin forecast of 38% to 41%, down from the 47% reported in Q1.
- The stock hit a new low, approaching the company's IPO price, as investors reacted to the margin guidance.
- CEO Andrew Feldman explained that the margin guidance was misunderstood, attributing the lower margins to the temporary rental of equipment back from a major customer to increase capacity ahead of building its own data center.
- The company reported Q1 revenue of $193 million, a 94% increase year-over-year, and reduced its net loss to $14 million from $23.9 million the previous year.
