Core Viewpoint - Figma's stock price plummeted over 14% after its first earnings report post-IPO, which fell short of Wall Street expectations, leading to concerns about its high valuation compared to peers in the software industry [1][3]. Financial Performance - Figma reported Q2 revenue of approximately $249.6 million, a 41% year-over-year increase, but slightly below the average analyst expectation of $250 million [3][4]. - The company achieved a net profit of about $846,000 under GAAP, contrasting with a loss of approximately $827.9 million in the same quarter last year, resulting in an earnings per share close to breakeven, but below the expected $0.09 [3][4]. - The net revenue retention rate was reported at 129%, down from 132% in Q1, indicating a decline in customer expansion despite strong performance from existing clients [3][4]. Customer Base and Growth Projections - Figma has 1,119 customers with annualized revenue exceeding $100,000, up from 1,031 in the previous quarter [4]. - For Q3, Figma expects revenue between $263 million and $265 million, representing a 33% year-over-year growth, slightly exceeding analyst expectations [4]. - The management anticipates full-year adjusted operating profit between $88 million and $98 million, with total revenue projected between $1.021 billion and $1.025 billion, indicating a growth expectation of about 37% [5]. Market Position and Product Offering - Figma is a cloud-based collaborative design and product development platform, with core products including Figma Design, FigJam, and Dev Mode [8]. - The company emphasizes its end-to-end workflow capabilities, strong cross-role collaboration, and unique design and development ecosystem as key competitive advantages [9]. - Recent product launches include Figma Make and Figma Sites, which integrate AI capabilities into design processes [10]. Analyst Sentiment and Valuation Concerns - Analysts generally hold a cautious stance on Figma due to its high valuation, with most ratings being neutral or market perform rather than buy [14][15]. - The market perceives Figma's valuation as excessive, with expected revenue multiples significantly higher than comparable software companies [16]. - Despite concerns about competition from AI-driven applications, analysts believe AI could serve as a growth catalyst for Figma [15].

Core Insights - Figma's Q2 revenue reached $249.6 million, exceeding analyst expectations of $248.8 million, with a year-over-year growth of 41% [1] - The company reported a net profit of $846,000 in Q2, a significant turnaround from a loss of $827.9 million in the same period last year [1] - Figma forecasts Q3 revenue to be between $263 million and $265 million, representing an approximate 33% year-over-year growth, surpassing market expectations of $256.8 million [1] - The company anticipates full-year revenue to exceed $1.02 billion, reflecting a growth of about 37%, slightly above market expectations of $1.01 billion [1] - CEO Dylan Field indicated that the strong momentum from the launch of Dev Mode last year may impact the revenue growth rate in Q3 [1]

Core Viewpoint - Figma's stock price plummeted over 14% after its first earnings report post-IPO, which fell short of Wall Street expectations, raising concerns about its high valuation compared to peers in the software industry [1][8]. Financial Performance - Figma reported Q2 revenue of approximately $249.6 million, a 41% year-over-year increase, but slightly below the average analyst expectation of $250 million [1][2]. - The company achieved a net profit of approximately $846,000 for Q2, a significant improvement from a loss of about $827.9 million in the same quarter last year, but below the expected earnings per share of $0.09 [1][2]. - The net revenue retention rate was reported at 129%, down from 132% in Q1, indicating a decline in customer expansion [2]. - Figma has 1,119 customers with annual revenues exceeding $100,000, up from 1,031 in the previous quarter [2]. Future Guidance - For Q3, Figma expects revenue between $263 million and $265 million, which represents a year-over-year growth of approximately 33% and slightly exceeds analyst expectations [3]. - The company projects full-year adjusted operating profit between $88 million and $98 million, with total revenue expected to be between $1.021 billion and $1.025 billion, indicating a growth rate of about 37% [3]. Company Background - Figma is a cloud-based collaborative design and product development platform, with core products including Figma Design, FigJam, and Dev Mode [4]. - The company went public on July 31, 2025, under the ticker FIG, following a failed acquisition attempt by Adobe [4]. Competitive Positioning - Figma's platform offers end-to-end workflow capabilities, strong cross-role collaboration, and a unique design and development ecosystem [5]. - The company has introduced AI-driven products like Figma Make and Figma Sites, aiming to enhance its offerings and expand its market reach [6][7]. Analyst Sentiment - Wall Street analysts generally hold a cautious stance on Figma due to its high valuation, with most ratings being neutral or market perform rather than buy [8][10]. - Analysts have expressed concerns about Figma's valuation, which is significantly higher than its software peers, with estimates suggesting a 32x revenue multiple for 2026 compared to about 10x for comparable companies [9][10].

Financial Data and Key Metrics Changes - Figma achieved $250 million in revenue for Q2 2025, marking a new quarterly revenue record and representing a 41% year-over-year growth [8][44]. - The company maintained a non-GAAP operating margin of 5% and an adjusted free cash flow margin of 24% [8][48]. - Gross margin for the quarter was reported at 90%, with expectations of further compression due to investments in AI products [46][47]. Business Line Data and Key Metrics Changes - Figma launched four new products at the Config conference: Figma Make, Figma Draw, Figma Sites, and Figma Buzz, effectively doubling its product offering [13][34]. - Over 80% of customers utilized two or more products, and two-thirds used three or more products during Q2 [44]. Market Data and Key Metrics Changes - The company localized its product and support for Korean and Brazilian Portuguese markets, which resonated well with customers in those regions [37]. - Figma's platform is increasingly being adopted by large enterprises, with notable examples including Itau Unibanco and Nubank in Latin America [38]. Company Strategy and Development Direction - Figma aims to build a durable, long-term business focused on serving the evolving needs of designers and product development teams, with significant investments planned in AI [11][12]. - The company is committed to transparency and may adjust its reporting framework as the business evolves [8][9]. Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the role of design in a software landscape increasingly influenced by AI, emphasizing that design is a critical differentiator for companies [39][40]. - The company plans to deepen investments in AI and other growth opportunities, indicating a willingness to take significant swings when opportunities arise [11][86]. Other Important Information - Figma ended the quarter with $1.6 billion in cash, cash equivalents, and marketable securities, including approximately $91 million in a Bitcoin exchange-traded fund [49]. - The company has established a new annual guidance framework for operating income, reflecting its commitment to finding timely investment opportunities [51][53]. Q&A Session Summary Question: Context on the ramp of new products and monetization - Management acknowledged that new products are still early in their lifecycle but noted strong initial engagement, particularly with Figma Draw and Figma Sites [58][59]. Question: Quantifying the impact of Figma Make on full seat usage - Management indicated that they are working on monetization strategies for Figma Make and have seen broad usage across different personas, including developers and marketers [66][68]. Question: Competitive environment and differentiation - Management highlighted that Figma Make's unique integration with design context sets it apart from competitors, and they are excited about customer engagement with the product [68][69]. Question: User demographics for Figma Make - Management noted that Figma Make is attracting a diverse range of users, including product managers and marketers, expanding the platform's reach beyond traditional designers [72][74]. Question: Future cash usage and investment strategy - Management confirmed that the $1.6 billion cash reserve provides flexibility for investments in AI and other growth areas, with a focus on high-priority opportunities [82][84].

Financial Data and Key Metrics Changes - Figma achieved $250 million in revenue for Q2 2025, marking a new quarterly revenue record and representing a 41% year-over-year growth [8][46] - The non-GAAP operating margin was 5%, while the adjusted free cash flow margin was 24% [8][50] - The gross margin for the quarter was 90%, with expectations of further compression due to AI product rollouts [48][49] Business Line Data and Key Metrics Changes - Figma launched four new products at the Config conference: Figma Make, Figma Draw, Figma Sites, and Figma Buzz, effectively doubling its product offering [14][35] - Over 80% of customers used two or more products, and two-thirds used three or more products during Q2 [46] Market Data and Key Metrics Changes - The company localized its product and support for Korean and Brazilian Portuguese users, which resonated well with customers in the LatAm region [38][39] - Figma's platform is increasingly being adopted by large enterprises, with over 11,900 paid customers spending over $10,000 in ARR, and more than 1,100 customers spending over $100,000 in ARR, a 42% year-over-year growth [48] Company Strategy and Development Direction - Figma aims to build a durable, long-term business focused on the evolving needs of designers and product development teams, with significant investments in AI efforts [12][41] - The company plans to complement its existing seat-based subscription model with a consumption model to meet the evolving product platform needs [53] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the role of design and craft in a world where AI simplifies software creation, emphasizing that design is a critical differentiator for companies [41][42] - The company anticipates revenue for Q3 2025 to be between $263 million and $265 million, and for the full year, between $1.021 billion and $1.025 billion, implying a 37% year-over-year growth at the midpoint [54][55] Other Important Information - Figma ended the quarter with $1.6 billion in cash, cash equivalents, and marketable securities, including approximately $91 million in a Bitcoin exchange-traded fund [51] - The company has a structured lockup release plan for its early VC stockholders, with specific percentages of shares being released at different intervals [52] Q&A Session Summary Question: Context on the ramp of new products and monetization - Management acknowledged that new products are still early in their lifecycle but noted strong initial engagement, particularly with Figma Draw and Figma Sites [60][61] Question: Uptick in full seat usage due to Figma Make - Management confirmed that they are building out billing infrastructure to support future monetization and have broadened usage across different seat types [69] Question: Competitive environment and differentiation - Management highlighted that Figma Make's unique ability to integrate design context sets it apart from other tools in the market [71][72] Question: User personas for Figma Make - Management noted that Figma Make is attracting a diverse range of users, including designers, developers, and marketers, expanding exposure across different personas [75][76] Question: AI's impact on Figma's relevance - Management expressed confidence that Figma will remain relevant in a post-AI software world by supporting diverse design surfaces and integrating AI into their platform [80][82] Question: Use of cash and investment framework - Management indicated that the $1.6 billion cash position provides flexibility for investments in AI and other growth areas, with a focus on high-priority opportunities [87][89] Question: Pricing and packaging rollout feedback - Management reported positive feedback from enterprise customers regarding the new pricing and packaging, estimating a mid to high single-digit growth contribution for the year [92][94]

（文章来源：每日经济新闻） 每经AI快讯，9月4日，Figma盘后大跌10%，公司Q2营收2.496亿美元，同比增长41%。经调整净利润 1150万美元，预计全年营收10.21-10.25亿美元。 ...

Customer Growth - Figma's paid customers with more than $10,000 in ARR increased to 11,906 as of June 30, 2025, up from 9,071 in the same period of 2024, representing a growth of 31%[154] - The number of paid customers with more than $100,000 in ARR rose to 1,119, compared to 787 in June 2024, indicating a growth of 42%[154] - The Net Dollar Retention Rate was 129% for June 30, 2025, slightly down from 130% in June 2024, reflecting stable customer retention and expansion[154] Financial Performance - For the three months ended June 30, 2025, the company reported revenue of $249,640,000, a 40.8% increase from $177,198,000 in the same period of 2024[180] - The company achieved a Free Cash Flow of $60,603,000 for the three months ended June 30, 2025, compared to a negative Free Cash Flow of $(179,812,000) for the same period in 2024[165] - Adjusted Free Cash Flow for the six months ended June 30, 2025, was $155,185,000, significantly up from $54,599,000 in the same period of 2024[165] - Revenue for the six months ended June 30, 2025, increased by $144.4 million, or 43%, to $477.8 million compared to $333.4 million in the same period of 2024[191] - The company reported a net income of $28,227,000 for the three months ended June 30, 2025, compared to a net loss of $(827,854,000) in the same period of 2024[180] - The company reported a net income of $73.1 million for the six months ended June 30, 2025, contributing to positive cash flow from operating activities[211] Expenses and Margins - Non-GAAP operating income for the three months ended June 30, 2025, was $11.5 million, compared to $4.9 million in the same period of 2024[161] - Non-GAAP operating margin improved to 5% for the three months ended June 30, 2025, compared to 3% in the same period of 2024[161] - The company incurred research and development expenses of $83,052,000 for the three months ended June 30, 2025, which represented 33.3% of revenue[180] - Sales and marketing expenses for the three months ended June 30, 2025, were $97,701,000, accounting for 39.1% of revenue[180] - General and administrative expenses were $38,922,000 for the three months ended June 30, 2025, representing 15.6% of revenue[180] - General and administrative expenses decreased by $173.7 million, or 72%, for the six months ended June 30, 2025, primarily due to a reduction in stock-based compensation[196] Investments and Future Outlook - Figma continues to invest in AI to enhance its platform, aiming to accelerate the product development process for users of all skill levels[146] - The company expects significant investments in AI technologies, which may impact gross margins and operating margins in the short term[170] - The company anticipates increased general and administrative expenses in 2025 due to costs associated with operating as a public company[176] - Free Cash Flow and Adjusted Free Cash Flow are expected to fluctuate as Figma invests in growth initiatives, potentially decreasing Free Cash Flow as a percentage of revenue in future periods[164] Cash and Liquidity - As of June 30, 2025, the company had cash and cash equivalents of $621.6 million, marketable securities of $971.7 million, and digital assets of $30.1 million[199] - The company anticipates that its current liquidity will be sufficient to fund operations for at least the next twelve months, depending on various growth factors[201] - Net cash provided by operating activities was $159.6 million for the six months ended June 30, 2025, compared to a cash outflow of $196.4 million in the same period of 2024[209] IPO and Financing - The company completed its IPO on August 1, 2025, issuing 12,472,657 shares of Class A common stock at $33.00 per share, resulting in net proceeds of approximately $393.1 million[200] - The company drew $330.5 million under the Revolving Credit Facility on July 30, 2025, to cover RSU-related obligations, later repaid using IPO proceeds[208] - The Revolving Credit Facility provides for up to $500.0 million, with a subfacility of $150.0 million for letters of credit, maturing on June 27, 2030[205] Risks and Market Conditions - The company does not anticipate material risks from interest rate changes due to the short-term nature of its investments, with a hypothetical 100 basis points change having no material impact on financial statements[223] - The company is exposed to foreign currency exchange risks, particularly with the British pound, Euro, Japanese yen, and Canadian dollar, which may negatively affect revenue expressed in U.S. dollars[224] - Inflation has not had a material effect on the company's business, but significant inflationary pressures could harm its financial condition[226] - The company has not used any derivative financial instruments to manage interest rate risk exposure[223]

Financial Results Q2 2025 September 3, 2025 Dylan Field CEO + Co-Founder Safe Harbor Disclaimer Q2 2025 This presentation contains "forward-looking statements" within the meaning of applicable securities laws. All statements other than statements of historical fact could be deemed to be forward-looking, including, but not limited to, statements regarding our guidance and future financial performance, market demand, product development, growth prospects, business strategies and plans, ability to attract and ...

Core Insights - Figma shares surged 229% after raising $1.2 billion in its IPO, valuing the company above $20 billion, which was higher than a previously planned merger with Adobe [1] - Following its IPO, Figma's shares dropped 13% after reporting its first earnings, with revenue increasing 41% year-over-year in Q2 [2] - The company reported a net income of $846,000, a significant improvement from a loss of $827.9 million in Q2 2024, and adjusted operating income of $11.5 million [3] Financial Performance - Figma forecasts Q3 revenue between $263 million and $265 million, indicating approximately 33% growth at the midpoint, surpassing LSEG consensus of $256.8 million [3] - For the full year, Figma anticipates adjusted operating income between $88 million and $98 million, with total revenue projected to exceed $1.02 billion, reflecting about 37% growth and above the LSEG consensus of $1.01 billion [4] Product Development - In Q2, Figma launched Figma Make, an AI tool for app and website design, and Figma Sites, which converts designs into functional websites [5] - The company also acquired Modyfi, a vector graphics startup, and Payload, a content management system startup [5] Market Position and Strategy - Figma's co-founder and CEO stated that the role of designers is becoming more critical despite concerns about AI displacing jobs, emphasizing the need for a human touch in software development [6][7] - The company reported a net retention rate of 129%, slightly down from 132% in Q1, indicating strong expansion with existing customers [7] Stock Performance and Lock-Up Period - Figma's stock closed at $68.13 after pricing at $33 during its IPO, with an initial surge to $115.50 [9] - A lock-up period for 25% of employee stock will expire on September 4, while over half of Figma's Class A stock will have an extended lock-up until August 2026 [8]

[Executive Summary](index=1&type=section&id=Executive%20Summary) Figma achieved record revenue in Q2 FY2025, growing 41% year-over-year, launched four new products, and continued AI investment, demonstrating strong business and design value with a 129% net dollar retention rate [Second Quarter 2025 Performance Overview](index=1&type=section&id=Second%20Quarter%202025%20Performance%20Overview) Figma achieved record revenue in Q2 FY2025, growing 41% year-over-year, launched four new products, and continued AI investment, demonstrating strong business and design value with a 129% net dollar retention rate - Figma achieved record revenue in Q2 FY2025, growing **41% year-over-year**[1](index=1&type=chunk)[3](index=3&type=chunk) - The company launched four new products and continued investing in AI to expand its platform[2](index=2&type=chunk)[3](index=3&type=chunk) - Net Dollar Retention Rate reached **129%**, indicating deepening customer investment in the Figma platform[3](index=3&type=chunk) [Financial Highlights and Outlook](index=1&type=section&id=Financial%20Highlights%20and%20Outlook) Figma reported significant financial growth in Q2 FY2025 with strong revenue and positive operating profit, providing optimistic guidance for Q3 and the full fiscal year [Second Quarter 2025 Financial Performance](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Performance) Figma achieved significant financial growth in Q2 FY2025, with revenue increasing 41% year-over-year to $249.6 million, reporting positive GAAP and non-GAAP operating profit and margins, and strong cash flow 2025 Fiscal Second Quarter Key Financial Data | Metric | Amount (Millions USD) | YoY Growth | Margin | Non-GAAP Amount (Millions USD) | Non-GAAP Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Revenue | 249.6 | 41% | - | - | - | | Operating Profit | 2.1 | - | 1% | 11.5 | 5% | | Net Cash from Operating Activities | 62.5 | - | 25% | - | - | | Adjusted Free Cash Flow | 60.6 | - | 24% | - | - | | Net Income | 28.2 | - | - | 19.8 | - | | Cash, Cash Equivalents, and Marketable Securities | 1,600.0 | - | - | - | - | [Financial Outlook](index=2&type=section&id=Financial%20Outlook) Figma provided financial guidance for Q3 and full-year FY2025, projecting continued revenue growth and an expected range for full-year non-GAAP operating profit [Third Quarter 2025 Outlook](index=2&type=section&id=Third%20Quarter%202025%20Outlook) The company expects Q3 FY2025 revenue to be between $263 million and $265 million, with a midpoint year-over-year growth of 33% 2025 Fiscal Third Quarter Financial Guidance | Metric | Range (Millions USD) | Midpoint YoY Growth | | :--- | :--- | :--- | | Revenue | 263.0 - 265.0 | 33% | [Full Year 2025 Outlook](index=2&type=section&id=Full%20Year%202025%20Outlook) Figma projects full-year FY2025 revenue between $1.021 billion and $1.025 billion, with a midpoint year-over-year growth of 37%, and non-GAAP operating profit between $88 million and $98 million 2025 Fiscal Full Year Financial Guidance | Metric | Range (Millions USD) | Midpoint YoY Growth | | :--- | :--- | :--- | | Revenue | 1,021.0 - 1,025.0 | 37% | | Non-GAAP Operating Profit | 88.0 - 98.0 | - | [Business and Operational Highlights](index=1&type=section&id=Business%20and%20Operational%20Highlights) Figma demonstrated strong product innovation, customer engagement, and strategic acquisitions in Q2, further solidifying its market position and platform capabilities [Product Innovation and Development](index=1&type=section&id=Product%20Innovation%20and%20Development) Figma significantly expanded its product line in Q2, launching four new products, including AI-driven prototyping tools, and released Dev Mode MCP servers to accelerate developer workflows - Launched four new products: Figma Make (AI-driven prototyping), Figma Draw (visual expression), Figma Sites (publishing live website designs), and Figma Buzz (creating marketing assets)[6](index=6&type=chunk) - Released Figma's Dev Mode MCP server to accelerate developer workflows by bringing design system context into LLM-generated code[6](index=6&type=chunk) [Customer Metrics and Engagement](index=1&type=section&id=Customer%20Metrics%20and%20Engagement) Figma demonstrated strong customer growth and retention, particularly among high-value clients, with high multi-product usage indicating strong platform stickiness Second Quarter 2025 Customer Metrics | Metric | Quantity | | :--- | :--- | | Net Dollar Retention Rate (Customers with ARR ≥ $10,000) | 129% | | Paying Customers (ARR ≥ $10,000) | 11,906 | | Paying Customers (ARR ≥ $100,000) | 1,119 | - Over **80%** of Figma customers used two or more products, and **two-thirds** used three or more products[6](index=6&type=chunk) [Strategic Acquisitions](index=2&type=section&id=Strategic%20Acquisitions) Figma completed two strategic acquisitions in Q2, Modyfi and Payload, aimed at enhancing its motion, animation, vector tools, and headless CMS and application framework capabilities - Acquired Modyfi to support Figma's work in motion, animation, and vector tools[7](index=7&type=chunk) - Acquired Payload, a leading headless content management system and developer application framework[7](index=7&type=chunk) [Corporate Events](index=1&type=section&id=Corporate%20Events) Figma successfully hosted its annual user conference, Config, a significant investment in community, customer relations, and product development, which impacted operating profit this quarter - Figma hosted its annual user conference, Config, a significant investment in community, customer relationships, and product momentum[6](index=6&type=chunk) - Increased sales and marketing expenses during the Config conference impacted Figma's operating profit[6](index=6&type=chunk) [Shareholder Information](index=2&type=section&id=Shareholder%20Information) Figma provided details on lock-up agreements, including early release conditions for employees and an extended lock-up plan for major shareholders, impacting future stock availability [Lock-Up Agreements](index=2&type=section&id=Lock-Up%20Agreements) Figma disclosed early release conditions and expected dates for IPO-related lock-up agreements, along with extended lock-up agreements with major shareholders and their phased release plans [Early Lock-Up Release](index=2&type=section&id=Early%20Lock-Up%20Release) The lock-up for 25% of eligible securities held by certain employees and service providers is expected to be released at market open on September 5, 2025, subject to specific closing price conditions for Figma Class A common stock - The lock-up for **25%** of eligible securities (held by certain employees and service providers) is expected to be released at market open on **September 5, 2025**[14](index=14&type=chunk) - Release conditions require Figma Class A common stock's closing price to be more than **25% above the IPO price** for at least five out of ten consecutive trading days, with at least one trading day occurring after the Q2 2025 earnings release[11](index=11&type=chunk)[13](index=13&type=chunk) [Stockholder Extended Lock-Up](index=3&type=section&id=Stockholder%20Extended%20Lock-Up) Shareholders holding approximately 54.1% of outstanding Class A common stock have agreed to extend lock-up until August 31, 2026, with a phased release plan tied to future quarterly and annual earnings release dates - Shareholders holding approximately **54.1%** of outstanding Class A common stock have entered into extended lock-up agreements until **August 31, 2026**[15](index=15&type=chunk) Phased Release Plan for Extended Lock-Up Shares | Release Date | Percentage of Shares Released | Approximate Shares (Millions) | | :--- | :--- | :--- | | After Q3 2025 Earnings Release | 17.5% | 38.9 | | After Q4 2025 Earnings Release | Additional 20% | 44.4 | | After Q1 2026 Earnings Release | Additional 27.5% | 61.1 | | After Q2 2026 Earnings Release or August 31, 2026 (whichever is earlier) | Remaining Portion | 77.7 | [Company Information and Disclosures](index=4&type=section&id=Company%20Information%20and%20Disclosures) This section provides essential company information, including Figma's mission, forward-looking statement caveats, definitions of non-GAAP financial measures, and key business metric definitions [About Figma](index=4&type=section&id=About%20Figma) Founded in 2012, Figma has evolved into a connected, AI-driven platform that helps teams transform ideas into digital products and experiences, making the entire design and product development process more collaborative, efficient, and enjoyable - Figma is an **AI-driven platform** that helps teams transform ideas into digital products and experiences[18](index=18&type=chunk) - The platform aims to make the entire design and product development process more collaborative, efficient, and enjoyable[18](index=18&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) This press release contains forward-looking statements regarding Figma's future operating results, financial condition, business strategy, and plans, which are based on current information and assumptions, subject to risks and uncertainties that may cause actual results to differ materially - Forward-looking statements cover Figma's future operating results, financial condition, business strategy, and plans, including financial outlook for Q3 and full-year FY2025[19](index=19&type=chunk) - These statements are based on current information and assumptions, subject to various risks and uncertainties, and actual results may differ materially from expectations[20](index=20&type=chunk) - Figma undertakes no obligation to update or revise any forward-looking statements, except as required by law[20](index=20&type=chunk) [Non-GAAP Financial Measures](index=4&type=section&id=Non-GAAP%20Financial%20Measures) Figma uses non-GAAP financial measures to assess its financial position and operating performance, excluding stock-based compensation, acquisition-related amortization, Adobe merger termination costs, and other non-recurring expenses, to provide a more consistent view of financial performance - Non-GAAP financial measures include free cash flow, adjusted free cash flow, non-GAAP gross profit, non-GAAP operating profit, and non-GAAP net income[21](index=21&type=chunk) - These metrics primarily exclude non-recurring items such as stock-based compensation expense, amortization of acquired intangible assets, transaction costs related to the Adobe merger termination, employer payroll taxes, and 2024 tender offer transaction costs[21](index=21&type=chunk)[22](index=22&type=chunk) - Management believes non-GAAP metrics aid in evaluating ongoing operations and internal planning but emphasizes they should not substitute GAAP financial information and have inherent limitations[23](index=23&type=chunk)[24](index=24&type=chunk) [Certain Definitions](index=5&type=section&id=Certain%20Definitions) This section provides definitions for key business metrics used in Figma's financial reporting, including Annual Recurring Revenue (ARR), paying customers, and Net Dollar Retention Rate, which help understand the company's customer growth and revenue model - Annual Recurring Revenue (ARR) is defined as the annualized value of Figma's active customer agreements as of the measurement date, assuming agreements expiring in the next twelve months renew under existing terms[26](index=26&type=chunk) - Paying customers are defined as customer accounts with an active paid subscription, billed separately, as of the last day of the applicable measurement period[27](index=27&type=chunk) - Net Dollar Retention Rate is calculated by comparing ARR from paying customers with ARR greater than $10,000 from twelve months prior, reflecting customer expansion, contraction, and churn[29](index=29&type=chunk) [Condensed Consolidated Financial Statements (GAAP)](index=7&type=section&id=Condensed%20Consolidated%20Financial%20Statements%20(GAAP)) This section presents Figma's GAAP financial statements, including statements of operations, balance sheets, and cash flows, providing a comprehensive view of the company's financial position and performance [Condensed Consolidated Statements of Operations](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Figma's condensed consolidated statements of operations show Q2 FY2025 revenue of $249.6 million, a 41% year-over-year increase, with gross profit of $221.8 million, operating profit of $2.1 million, and net income of $28.2 million Condensed Consolidated Statements of Operations Summary (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Revenue | 249,640 | 177,198 | 477,839 | 333,427 | | Gross Profit | 221,751 | 137,640 | 430,498 | 281,079 | | Operating Income (Loss) | 2,076 | (894,287) | 41,825 | (881,766) | | Net Income (Loss) | 28,227 | (827,854) | 73,109 | (814,329) | | Net Income (Loss) Per Share, Basic and Diluted | 0 | (4.39) | 0.10 | (4.53) | [Condensed Consolidated Balance Sheets](index=8&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2025, Figma's total assets increased to $2.0347 billion from $1.7931 billion on December 31, 2024, with cash and cash equivalents rising to $621.6 million, total liabilities at $607.4 million, and total stockholders' equity at $1.4272 billion Condensed Consolidated Balance Sheets Summary (As of June 30, 2025) | Metric (Thousands USD) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Cash and Cash Equivalents | 621,619 | 486,954 | | Marketable Securities | 971,719 | 970,883 | | Total Assets | 2,034,663 | 1,793,148 | | Deferred Revenue | 433,147 | 381,363 | | Total Liabilities | 607,449 | 469,095 | | Total Stockholders' Equity | 1,427,214 | 1,324,053 | [Condensed Consolidated Statements of Cash Flow](index=9&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flow) In Q2 FY2025, Figma generated $62.5 million in net cash from operating activities, used $74.8 million in investing activities, and provided $15.4 million from financing activities, with total cash, cash equivalents, and restricted cash at period-end reaching $632.4 million Condensed Consolidated Statements of Cash Flow Summary (Q2 2025) | Cash Flow Type (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Net Cash from Operating Activities | 62,455 | (178,243) | 159,632 | (196,382) | | Net Cash from Investing Activities | (74,826) | (173,216) | (33,575) | (509,846) | | Net Cash from Financing Activities | 15,445 | 21,860 | 15,784 | 21,900 | | Cash, Cash Equivalents, and Restricted Cash—End of Period | 632,426 | 589,781 | 632,426 | 589,781 | [Reconciliation of GAAP to Non-GAAP Results](index=10&type=section&id=Reconciliation%20of%20GAAP%20to%20Non-GAAP%20Results) This section provides detailed reconciliations of Figma's GAAP financial measures to non-GAAP metrics, offering a clearer view of underlying operational performance by adjusting for specific non-recurring and non-cash items [Non-GAAP Gross Profit and Margin Reconciliation](index=10&type=section&id=Non-GAAP%20Gross%20Profit%20and%20Margin%20Reconciliation) Figma provides a reconciliation of GAAP gross profit and margin to non-GAAP metrics, with key adjustments including stock-based compensation, amortization of capitalized internal-use software development costs, acquired intangible asset amortization, and employer payroll taxes related to RSU releases and tender offers Gross Profit and Margin Reconciliation (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | | :--- | :--- | :--- | | GAAP Gross Profit | 221,751 | 137,640 | | Non-GAAP Gross Profit | 223,954 | 163,179 | | GAAP Gross Margin | 89% | 78% | | Non-GAAP Gross Margin | 90% | 92% | - Key adjustments include stock-based compensation expense, amortization of stock-based compensation in capitalized internal-use software development costs, amortization of acquired intangible assets, and employer payroll taxes related to 2024 RSU releases and tender offers[39](index=39&type=chunk) [Non-GAAP Operating Expenses Reconciliation](index=10&type=section&id=Non-GAAP%20Operating%20Expenses%20Reconciliation) This section reconciles GAAP operating expenses (R&D, Sales & Marketing, G&A) to non-GAAP metrics, primarily excluding stock-based compensation, Adobe merger termination costs, employer payroll taxes, acquired intangible asset amortization, and 2024 tender offer transaction costs Operating Expenses Reconciliation (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | | :--- | :--- | :--- | | GAAP Research and Development Expense | 83,052 | 535,676 | | Non-GAAP Research and Development Expense | 77,113 | 53,707 | | GAAP Sales and Marketing Expense | 97,701 | 276,246 | | Non-GAAP Sales and Marketing Expense | 97,056 | 81,813 | | GAAP General and Administrative Expense | 38,922 | 220,005 | | Non-GAAP General and Administrative Expense | 38,313 | 22,779 | - Key adjustments include stock-based compensation expense, transaction costs related to the Adobe merger termination, employer payroll taxes, amortization of acquired intangible assets, and 2024 tender offer transaction costs[39](index=39&type=chunk) [Non-GAAP Operating Income and Margin Reconciliation](index=10&type=section&id=Non-GAAP%20Operating%20Income%20and%20Margin%20Reconciliation) Figma's GAAP operating income was $2.1 million with a 1% margin in Q2 2025, which, after various non-GAAP adjustments, resulted in a non-GAAP operating income of $11.5 million and a non-GAAP operating margin of 5% Operating Income and Margin Reconciliation (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | | :--- | :--- | :--- | | GAAP Operating Income (Loss) | 2,076 | (894,287) | | Non-GAAP Operating Income | 11,472 | 4,880 | | GAAP Operating Margin | 1% | (505)% | | Non-GAAP Operating Margin | 5% | 3% | - Adjustments include stock-based compensation expense, amortization of stock-based compensation in capitalized internal-use software development costs, transaction costs related to the Adobe merger termination, employer payroll taxes, amortization of acquired intangible assets, and 2024 tender offer transaction costs[39](index=39&type=chunk) [Non-GAAP Net Income Reconciliation](index=11&type=section&id=Non-GAAP%20Net%20Income%20Reconciliation) Figma's GAAP net income was $28.2 million in Q2 2025, which, after non-GAAP adjustments for stock-based compensation, transaction costs, employer payroll taxes, acquired intangible asset amortization, equity investment gains/losses, and income tax effects, resulted in a non-GAAP net income of $19.8 million Net Income Reconciliation (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | | :--- | :--- | :--- | | GAAP Net Income (Loss) | 28,227 | (827,854) | | Non-GAAP Net Income (Loss) | 19,783 | 14,275 | - Key adjustments include stock-based compensation expense, amortization of stock-based compensation in capitalized internal-use software development costs, transaction costs related to the Adobe merger termination, employer payroll taxes, 2024 tender offer transaction costs, amortization of acquired intangible assets, net gain/loss on equity investments, and income tax effects of non-GAAP adjustments[41](index=41&type=chunk) [Free Cash Flow Reconciliation](index=12&type=section&id=Free%20Cash%20Flow%20Reconciliation) Figma reconciles GAAP cash flow from operating activities to free cash flow and adjusted free cash flow, reporting net cash from operating activities of $62.5 million, free cash flow of $60.6 million, and adjusted free cash flow of $60.6 million in Q2 2025 Free Cash Flow Reconciliation (Q2 2025) | Metric (Thousands USD) | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 62,455 | (178,243) | | Free Cash Flow | 60,603 | (179,812) | | Adjusted Free Cash Flow | 60,603 | 6,127 | | Operating Cash Flow Margin | 25% | (101)% | | Free Cash Flow Margin | 24% | (102)% | | Adjusted Free Cash Flow Margin | 24% | 4% | - Free cash flow is derived from net cash from operating activities by subtracting capital expenditures and capitalized internal-use software development costs[43](index=43&type=chunk) - Adjusted free cash flow further considers transaction costs related to the Adobe merger termination and estimated income taxes[43](index=43&type=chunk) [Investor and Media Contacts](index=13&type=section&id=Investor%20and%20Media%20Contacts) This section provides essential contact information for investor relations and media inquiries [Contact Information](index=13&type=section&id=Contact%20Information) This section provides contact details for Figma's investor relations and media inquiries - Investor contact email: ir@figma.com[46](index=46&type=chunk) - Media contact email: press@figma.com[46](index=46&type=chunk)