Cerebras Systems Inc., founded in 2016 and headquartered in Sunnyvale, California, is a leader in high-performance computing systems optimized for artificial intelligence (AI). The company is renowned for its revolutionary Wafer-Scale Engine (WSE), which is the largest processor ever built. By utilizing an entire silicon wafer for a single chip, Cerebras provides significantly more compute cores, local memory, and fabric bandwidth than traditional GPUs, enabling the training of massive AI models at unprecedented speeds. Cerebras' flagship product, the CS-3 system, is powered by the third-generation WSE-3 and is engineered to simplify the complexity of AI clusters. The company serves a diverse range of clients, including Fortune 500 enterprises, national laboratories, and government agencies, focusing on applications such as large language model (LLM) training, drug discovery, and climate modeling. Beyond hardware sales, Cerebras offers 'Cerebras Cloud,' an AI-as-a-service platform that allows developers to access its massive computing power via the cloud. Led by co-founder and CEO Andrew Feldman, Cerebras aims to solve the scaling limitations of traditional modular processors. By integrating compute, memory, and communication on a single piece of silicon, the company reduces the power and time required to train the world's most complex neural networks. As the demand for generative AI continues to grow, Cerebras positions itself as a critical infrastructure provider for the next generation of AI innovation.
Gross margin measures the amount of revenue that remains after subtracting costs directly associated with production.
The EBITDA margin is a measure of a company's operating profit desconsidering D&A costs as a percentage of its revenue.
The EBIT margin is a measure of a company's operating profit considering D&A costs as a percentage of its revenue.
The net profit margin, or simply net margin, measures how much net income or profit is generated as a percentage of revenue. It is the ratio of net profits to revenues for a company or business segment.
Many companies have a high D&A in relation to the company's operating profit (EBITDA) and although this indicator does not have an effective cash effect, it ends up influencing the accounting net income, so analyzing this relationship can help to understand when D&A has a relevant impact to the company's results.
Shows the amount spent on investments in research and development in relation to the Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Shows the amount spent on investments in Capex in relation to Net Revenue for the period. The company can use these investments to try to increase its revenue in the future.
Indicates a comparison between investments in fixed/intangible assets and the depreciation and amortization of some company assets. It serves to let managers know that the company's assets are devaluing periodically, and whether CAPEX has followed the same pace or not.
It shows the percentage of operating cash flow that the company uses in Capex (investments in fixed and intangible assets). When your result is greater than 100%, it demonstrates that there are expenses greater than what the company produces in its operations.
It demonstrates the percentage cost of Stock-Based Compensation compared to the company's operating cash flow. In some companies, the OCF is positive because of the SBC, which can lead to an incorrect cash flow analysis.
If the company has a lot of D&A, it helps to see if most of it tends to come from fixed assets. The account can include machinery, equipment, vehicles, buildings, land, office equipment, and furnishings, among other things.
If the company has a lot of D&A, it helps to see if most of it tends to come from Goodwill, that is an intangible asset that accounts for the excess purchase price of another company.
Return on equity (ROE) is the measure of a company's net income divided by its shareholders' equity and is a gauge of a corporation's profitability and how efficiently it generates those profits.
Return on invested capital (ROIC) is a calculation used to assess a company's efficiency in allocating capital to profitable investments. The formula for calculating ROIC involves dividing Net Income by the average of invested capital.
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