Cerebras Systems (CBRS) shares fell more than 7% in extended trading following its first quarterly report since its May IPO.

First-quarter revenue surged 94% year-over-year to $193.4 million, exceeding analyst expectations.

The GAAP net loss narrowed to $14 million, or $0.22 per share, compared to $23.9 million in the prior year.

Investors reacted negatively to full-year guidance, which forecasts a core gross margin between 38% and 41%.

This outlook indicates profitability pressure as the company scales operations to compete with Nvidia.