On August 13, Cerebras Systems declined 16.51% overnight, trading at $218.80/share, after reporting second-quarter results that fell short of Wall Street expectations on both revenue and earnings.

The company posted Q2 revenue of $180.1 million, up 74% year-over-year but below the analyst consensus of approximately $190.6 million. Earnings per share came in at a loss of $2.98, significantly worse than the expected loss of $1.41 to $1.62. Hardware revenue declined 23% year-over-year to $54.1 million, serving as the primary drag, while cloud computing services surged 281% to $126 million. The CFO noted that adjusted gross margin was pressured by approximately 500 basis points due to leasing additional systems to expand cloud capacity.

Despite the Q2 miss, management raised full-year non-GAAP revenue guidance to $880-890 million from the prior $855-865 million range, and issued Q3 revenue guidance of $214-216 million, above the $210.2 million consensus. The CEO also clarified that the $25.4 billion order backlog does not yet include any business from AWS or other hyperscalers, and projected core revenue to more than triple in 2027.

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