On August 13, Cerebras Systems fell 17.18% in pre-market trading, trading at $216.27/share, with turnover of $1.88 million.

The decline was triggered by the company's Q2 earnings report released after market close the previous day. Cerebras posted quarterly revenue of $180.1 million, missing the analyst consensus estimate of approximately $190.6-$194.2 million. Adjusted EPS came in at a loss of $2.98, far worse than the expected loss of $1.41-$1.62. Hardware revenue fell 23% year-over-year to $54.1 million, serving as the primary drag on the top-line miss, while cloud computing services revenue surged 281% to $126 million.

Despite the company raising full-year revenue guidance to $880-$890 million and lifting adjusted gross margin expectations to 41%-43%, the significant Q2 shortfall triggered concentrated profit-taking among investors who had accumulated gains since the IPO. The net loss of $451 million was largely attributed to $387 million in stock-based compensation expenses. Management guided Q3 revenue of $214-$216 million, above the $210.2 million consensus.

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