After Cerebras published its first financial report on the market, the stock price fell sharply on Wednesday, one time approaching its IPO issue price. The focus of market attention is not revenue growth, but firm conservative guidance on the full-year Māori rate.
Revenue growth, but profit-rate pressure
The company disclosed that quarterly receipts amounted to $193 million, an increase of 94 per cent over the same period last year. The net loss narrows to $14 million, down from $23.9 million in the same period last year.
At the same time, however, companies have given lower annual Māori rates, which are expected to range from 38 per cent to 41 per cent. This level is lower than the 47 per cent reported in the first quarter and is also the main reason for investors to repricing.
CEO says market error guidance.
Andrew Feldman, CEO of Cerebras, stated to CNBC that investors had misunderstood the company's Maori rate guidelines. According to him, the company needed to lease back some of the equipment from a large client.
The company explained at the press conference that it wished to release the calculus more quickly and that it would temporarily lease its own system back to existing customers while continuing to build and deploy its own data centre capacity. The company indicated that this arrangement would reduce the profit margin this year.
The pace of expansion remains a market concern.
This means that the current growth story of Cerebras is still based on the expansion of computing supply. In the short term, the allocation of capacity and customer cooperation arrangements will have a direct impact on profit performance.
For investors, it sends two signals: on the one hand, revenue is still growing rapidly and on the other hand, the pace of expansion and delivery is ahead of profit.