Cerebras Systems Inc.

Good afternoon and welcome to Cerebras Systems first quarter fiscal year 2026 earnings conference call. Currently, all participants are in a listen-only mode. Following management's prepared remarks, we will open the call for questions. Please note that today's call is being recorded. I will now turn the call over to Sean Dorsey, head of investor relations. Please go ahead.

Thank you, operator. Good afternoon, everyone, and welcome to Cerebra Systems' first earnings call as a public company. Earlier today, we issued our press release and posted our supplemental earnings presentation to the investor relations section of our website. A replay of this webcast will also be available on our investor relations website following the call. Joining me today are Andrew Feldman, our co-founder, chief executive, and president, and Bob Komen, our chief financial officer. Before we begin, I would like to remind everyone that today's discussion will include forward-looking statements under the safe harbor of the Private Securities Litigation Reform Act of 1995. These statements include, but are not limited to, statements regarding our future financial performance, business strategy, market opportunity, customer demand, product roadmap, technology leadership, supply chain, operating model, and outlook for Q2 and full year 2026. Forward-looking statements are based on current expectations and assumptions and are subject to risks and uncertainties that could cause actual results to differ materially from those expressed or implied. These risks are described in our SEC filings, including our final prospectus related to our IPO and our future periodic filings with the SEC. We undertake no obligation to update these forward-looking statements except as required by law. During today's call, we will also discuss certain non-GAAP financial measures. Reconciliations between GAAP and non-GAAP results are included in today's press release and supplemental materials, which are available on the Investor Relations page of our website. With that, I'll turn the call over to Andrew.

Thank you, Sean, and thank you, everyone, for joining us today. This has been an extraordinary several months, and I want to begin by thanking our customers, partners, suppliers, employees, and shareholders. We would not be here without your trust and your support. Earlier today, we posted our Q1 2026 results, and we delivered a strong quarter. We delivered core revenue of $191.3 million. up 92% year over year. Core hardware revenue contributed $111.6 million, up 60% year over year, while core cloud and services revenue contributed $79.8 million, up 167% year over year. Bob will share more color on our financial results shortly. Before Bob digs into that, I'd like to say a few things about the market. I'll divide my comments into several sections. I'll begin by spending a few minutes sharing my views on the larger drivers underpinning the AI revolution, their impact on the compute market, and why speed wins. I'll then turn to our successes in Q1 with special attention to our progress with OpenAI, and AWS. And finally, I will talk about how we expect to avoid many of the supply chain challenges that bedevil others in our space. To understand the dynamics in the compute market, it's important to realize that AI provides new capabilities to computers. AI gives computers purchase on whole swaths of the world that had previously been foreclosed. This is why AI is so transformative and why its impact is so profound and why we believe it increases the size of the market addressable to compute by many thousands of times. Computers have historically been good at math, very good, but they were relatively poor at everything else. They did not provide much insight into text or images. For these modalities, all they could do is store and retrieve. Computers were at their best in a 2D world of numbers. In a real world of three dimensions, they were challenged. AI opens up the world of human experience to computers. As a result, the size of the market increases exponentially. It is as if prior to AI, computers worked in black and white and in two dimensions, and after AI, they address a world of color in many dimensions. This is why AI has spurred an explosion in the demand for compute. Computers can now do things they have never done before, and why, in our opinion, demand will continue to accelerate for many years to come. Text, images, video, agents, robotics, these are all part of how AI expands the computer's ability to understand, participate, and take actions in the world. These all represent opportunities for Cerebras. Let's look at the specifics of how this is unfolding. Prior to 2025, AI was a parlor trick, a novelty. Interesting, but not useful. Cool, but not valuable. AI is now valuable because it has become profoundly useful. Led by OpenAI, the foundation model providers pioneered the way. The foundation model makers and shortly thereafter the open source models made models smart enough to be useful across many domains. And once something is useful, people use it. And once people start using a technology, speed determines its productivity. Fast is productive and slow is unproductive. Speed provides answers in less time, providing competitive advantage. Speed makes the largest and smartest frontier models interactive. Speed enables agents to complete tasks faster. Fast tokens are the most valuable tokens because they get more work done in less time. And today, Cerebras delivers the fastest AI in the world, bar none. Not by a little bit, but by an order of magnitude. And we do this for small models, for medium models, and for the largest models in the industry. We do this for models with small KV cache, with medium KV cache and with giant KV caches. We generate tokens faster than anyone else. What I'd like to show you right now is a quick demo just of how much faster we are than GPUs on Kimi K2, a trillion parameter open source model.