Core Viewpoint - Figma's first earnings report as a publicly traded company led to a significant drop in its stock price, despite initial excitement following its IPO [1][2][12] Financial Performance - Figma reported second-quarter revenue growth of 41% to $249.6 million, slightly exceeding analyst expectations of $248.7 million [5] - The company maintained a net dollar retention rate of 129% for customers with over $10,000 in annual recurring revenue, indicating increased spending by existing customers [6] - Figma achieved an adjusted operating income of $11.5 million, with adjusted earnings per share of $0.09, surpassing the consensus estimate of $0.08 [7] Guidance and Future Outlook - The company provided guidance for third-quarter revenue of $263 million to $265 million, reflecting a 33% growth at the midpoint, which is above the consensus of $259.2 million [8] - For the full year, Figma anticipates revenue between $1.021 billion and $1.025 billion, indicating a 37% growth at the midpoint, compared to estimates of $1.01 billion [8] - Management's guidance is viewed as conservative, considering the recent launch of new products, which may introduce some uncertainty [9] Product Development - Figma launched four new products in the quarter, doubling its product offering, which includes Figma Make, Figma Draw, Figma Sites, and Figma Buzz [10][11] - The introduction of new products may impact gross margins, which slipped to 90%, but is expected to drive future growth despite short-term uncertainties [11] Investment Considerations - Despite the stock's decline, there are no significant red flags in Figma's earnings report, and the conservative guidance is seen as reasonable for a debut report [12] - The price-to-sales ratio for Figma has adjusted from 40 to 29, making it more comparable to other high-growth software stocks, suggesting a potential buying opportunity for risk-tolerant investors [13] - The long-term outlook for Figma remains positive, with a strong combination of revenue growth, profitability, and an expanding product portfolio [14]

Core Insights - Figma, Inc. reported mixed second-quarter results, with earnings of zero cents per share, missing the analyst estimate of 18 cents, while quarterly revenue reached $249.64 million, surpassing the Street estimate of $228.2 million and increasing from $177.19 million year-over-year [1][2] Financial Performance - Quarterly earnings were zero cents per share, missing the expected 18 cents [1] - Quarterly revenue was $249.64 million, exceeding the estimate of $228.2 million and up from $177.19 million in the same quarter last year [1] - For the third quarter, Figma expects revenue between $263 million and $265 million, and for the full year, revenue is projected between $1.021 billion and $1.025 billion, indicating a 37% year-over-year growth at the midpoint [2] Stock Performance - Following the earnings announcement, Figma shares fell by 18.5%, trading at $55.44 [2] - Analysts adjusted their price targets for Figma, with Wells Fargo lowering it from $82 to $70, RBC Capital from $75 to $65, and Morgan Stanley from $80 to $70, while maintaining their ratings [4]

Figma's public debut reality check arrived quickly after its massive IPO.Shares of Figma (FIG -18.61%) are sinking on Thursday, down 18.3% as of 1:09 p.m. ET. The drop comes as the S&P 500 and the Nasdaq Composite both gained 0.4%.The design software vendor reported earnings for the first time as a public company, delivering numbers that were largely in line but failed to justify the stock's massive post-IPO run-up.Figma stock crashes despite 41% sales growthThe company reported Q2 sales of $249.6 million, ...

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With big sell-offs today, Figma is being pushed to its lowest prices since its IPO.Figma (FIG -18.49%) stock is sinking rapidly in Thursday's trading. The company's share price was down 17.7% as of 12:30 p.m. ET and had been down as much as 21.9% earlier in trading.After the market closed yesterday, Figma published its first quarterly report as a publicly traded company. While its sales and earnings for the second quarter were slightly better than Wall Street's targets, the company's forward guidance is dri ...

Figma Inc. FIG shares plunged nearly 19% Thursday following the release of its second-quarter results after Wednesday's market close. The company posted revenue of $249.64 million, significantly surpassing the consensus estimate of $228.2 million. This represents a 41% year-over-year increase from $177.20 million in the same quarter last year.Adjusted earnings for the quarter were 8 cents per share, missing the consensus estimate of 18 cents per share, but reflecting an increase over the 7 cents per share r ...

Figma shares plummeted nearly 20% on Thursday, falling to the lowest price since the design software vendor's IPO in July after the company reported earnings for the first time as a public company.Results for the second quarter were largely inline with expectations, as Figma had issued preliminary results a little over a month ago. Revenue increased 41% from a year earlier to $249.6 million, slightly topping analyst estimates of $248.8 million, according to LSEG.Analysts at Piper Sandler described the repor ...

Market Overview - US stock indices opened mixed on September 4, with Nasdaq up 0.2%, S&P 500 up 0.13%, and Dow Jones down 0.07% [1] Company News - C3.ai experienced a decline of over 10% due to first-quarter earnings falling short of expectations [1] - Salesforce dropped more than 6% as the company forecasted third-quarter revenue below expectations [1] - Figma saw a significant drop of over 17%, marking its largest decline since August 4, with Bank of America lowering its target price from $85 to $69 [1] - Tesla announced that its Robotaxi application is now open to the public as of September 3 [2] - Amazon completed the acquisition of Indian online financial platform Axio after receiving regulatory approval from the Reserve Bank of India, aiming to expand credit coverage across India [3] - ConocoPhillips confirmed plans to cut up to 25% of its workforce, approximately 3,250 employees, with most layoffs expected to be completed by the end of the year [4] - Faraday Future's founder and Co-CEO Jia Yueting increased his stake in the company by approximately $180,000, as part of a previously signed trading plan [5]

Market Movements - As of the report, U.S. stock index futures showed mixed results with Dow futures down 0.04%, S&P 500 futures up 0.17%, and Nasdaq futures up 0.18% [1] - European indices also experienced gains, with Germany's DAX up 0.81%, UK's FTSE 100 up 0.17%, and the Euro Stoxx 50 up 0.39% [2][3] Oil Prices - WTI crude oil prices fell by 0.92% to $63.38 per barrel, while Brent crude oil prices decreased by 0.93% to $66.97 per barrel [3][4] Economic Concerns - Wall Street is increasingly worried about the independence of the Federal Reserve amid President Trump's attempts to influence it, with a 93% risk of recession indicated by UBS based on hard data from May to July 2025 [5] - UBS described the current economic situation as "stable but high risk," with credit market pressures raising the likelihood of recession to 41% [5] Federal Reserve Insights - Minneapolis Fed President Kashkari warned that tariffs are pushing up commodity inflation, complicating the Fed's goal of achieving a 2% inflation rate [6] - Atlanta Fed President Bostic supports a modest rate cut this year, contingent on future inflation and employment data [6] Gold Price Predictions - Goldman Sachs analysts predict that if the Fed's credibility is damaged, gold prices could soar, with a basic forecast of $4,000 per ounce by mid-2026 and a tail risk scenario suggesting prices could approach $5,000 per ounce [6] Small-Cap Stocks - The rebound in U.S. small-cap stocks has stalled due to concerns over interest rate cuts not being sufficient to support heavily indebted companies [7] - Analysts are focusing on profitable small-cap companies that can thrive in uncertain environments [7] Company News - Tesla announced the public launch of its Robotaxi service, expanding from a limited user base to a broader audience [8] - Apple plans to launch an AI-driven search tool next year to compete with OpenAI, integrating it into Siri and potentially other platforms [8] - Salesforce reported Q2 revenue growth of 9.8% to $10.2 billion, slightly above expectations, but its Q3 revenue outlook is below Wall Street's average forecast [9] - C3.ai's Q1 revenue fell to $70.3 million, down from $87.2 million year-over-year, raising concerns about its financial health [10] - Figma's Q2 revenue growth of 41% to approximately $249.6 million was below analyst expectations, leading to a significant drop in its stock price [10]

Group 1 - Wells Fargo has lowered the target price for cloud collaboration design platform Figma from $82 to $70 [1]