Cerebras Systems posted strong revenue growth, rising 92% year over year, but its outlook for declining margins next quarter weighed on investor sentiment and pushed the stock lower.

In its first earnings report since its May IPO, Cerebras Systems (CBRS) fell about 11% in after-hours trading after guiding to weaker profitability in the upcoming quarter.

Revenue in the first quarter nearly doubled from a year earlier to $193.4 million, while the company reported an adjusted net loss of $2.5 million, significantly better than analyst expectations of a $36.75 million loss.

For the second quarter, Cerebras projected revenue of roughly $194 million. However, investors focused more on profitability metrics, with core gross margin expected to decline to 36%–38%, down from 46.5% in Q1.

The company went public in May through a $6 billion IPO priced at $185 per share. The stock quickly surged to $385 after listing but later retreated, extending its decline with an additional 11% drop in after-hours trading to around $201.55 following the earnings release.