Figma Shares plummeted 14% in Wednesday’s extension trading after the design software company first reported results from its first public offering in July.
Here’s how the company did it compared to the LSEG consensus:
Earnings per share: BreakevenRevenue: $249.6 million vs. $248.8 million forecast
Revenues rose 41% year-on-year in the second quarter, Figma said, from $177.2 million the previous year. The company provided a preliminary estimate of between $247 million and $250 million in its July regulatory filing. CNBC is Figma’s first revenue report, so it does not include profit estimates.
Net income totaled $846,000 compared to a loss of $827.9 million in the second quarter of 2024. The company’s adjusted operating profit is $11.5 million after Figma provided $12 million from its previous estimate.
The third quarter Figma forecasts revenues between $263 million and $265 million, representing growth of about 33% in the middle of the range. The LSEG consensus was $256.8 million.
The company outperforms its adjusted operating income of $88 million to $98 million per year, earnings of more than $1.02 billion. The revenue range means growth of around 37%, exceeding the $10.1 billion LSEG consensus.
Last year, Figma made more revenue from customers as customers now have access to DEV mode. This helped software developers implement the designs designers create in their company’s software. The momentum is to dampen revenue growth in the third quarter, Dylan Field, co-founder and CEO of Figma, said in an interview.
In the second quarter, Figma announced Figma Make. FigmaMake uses artificial intelligence to create apps and website designs based on user descriptions. The company also acquired the launch payload for Vector Graphics startup Modyfi and content management system.
Figma has not yet begun fully charging the artificial intelligence product, but says it has built the underlying costs on the model. The company does not provide forecasts for its third quarter adjusted operating profit.
“We plan to let our customers know that they have the opportunity to purchase additional AI credits in the future,” Praveer Melwani, finance chief at Figma, said in a conference call with analysts.
This year, several software vendors are facing pressure due to concerns surrounding AI and whether it will drive away business. Field told CNBC he didn’t see it play inside and told CNBC that if there was, the role of designers would only be more important.
“I think the easier the software is to build using AI, the more people can see that it needs human touch,” Field said in an interview. He acknowledged that Figma employs so-called atmospheric tools for AI-driven software development.
Figma reported a net retention rate of 129%, reflecting growth with existing customers. The figures fell from 132% in the first quarter.
Following the IPO, Figma expects the stock sales lockup to expire for 25% of some employee shares after the market closure on September 4th.
Investors who hold just half of Figma’s outstanding Class A shares have agreed to an extension lockup as the final 35% of the shares expired in August 2026.
Field said he wanted to provide clarity to investors.
“I think that’s valuable information,” Field said in an interview.
On Wednesday, the company’s shares closed at $68.13. The company priced shares in the IPO at $33, bringing the stock to $115.50 on its debut.
Figma had 1,119 customers paying annual revenues of more than $100,000 from 1,031 in the March quarter, according to filings.
The company had about $1.6 billion in cash, cash equivalents and marketable securities on June 30th.
“We’re not trying to become Michael Saylor here,” Field said in an interview, referring to the co-founder and executive chairman. strategy. “This is not a Bitcoin holding company. It’s a design company, but I think the balance sheet has its place as part of a diverse financial strategy.”
