Financial Performance - Revenue for the three months ended September 30, 2025, was $274.2 million, a 38% increase from $198.6 million in the same period of 2024[207]. - Revenue for the nine months ended September 30, 2025, increased by $219.9 million, or 41%, to $752.0 million compared to $532.1 million in the same period of 2024[216]. - The net loss for the three months ended September 30, 2025, was $1,097.0 million, compared to a net loss of $15.6 million in the same period of 2024[205]. - For the nine months ended September 30, 2025, the company reported a net loss of $1.0 billion, adjusted for $1.1 billion in non-cash charges, resulting in cash provided from operating activities of $210.8 million[234]. - The cash used in operating activities for the nine months ended September 30, 2024, was $134.8 million, influenced by a net loss of $829.9 million[235]. Customer Growth - The number of paid customers with more than $10,000 in annual recurring revenue (ARR) increased to 12,910 as of September 30, 2025, up from 9,762 a year earlier, representing a growth of 32.8%[180]. - The number of paid customers with more than $100,000 in ARR rose to 1,262, an increase from 876, reflecting a growth of 43.9% year-over-year[181]. - The increase in revenue was primarily driven by a 32% increase in Paid Customers with more than $10,000 in ARR and a 44% increase in Paid Customers with more than $100,000 in ARR[207]. - The number of Paid Customers with more than $10,000 in ARR and more than $100,000 in ARR increased by 32% and 44%, respectively, as of September 30, 2025[216]. Expenses and Costs - Research and development expenses surged to $680.9 million for the three months ended September 30, 2025, a 554% increase from $104.2 million in 2024[210]. - Sales and marketing expenses increased by 247% to $274.8 million for the three months ended September 30, 2025, compared to $79.3 million in 2024[211]. - General and administrative expenses rose to $371.4 million, a 748% increase from $43.8 million in the same period of 2024[212]. - Cost of revenue rose by $60.2 million, or 85%, primarily due to higher technical infrastructure and hosting costs, which increased by $28.9 million[217]. - Research and development expenses increased by $141.3 million, or 20%, to $833.9 million, driven by a $125.3 million rise in employee-related costs[218]. - Sales and marketing expenses grew by $30.4 million, or 7%, to $441.3 million, attributed to higher technical infrastructure costs and increased marketing spend[219]. - General and administrative expenses surged by $153.9 million, or 54%, to $440.6 million, mainly due to a $138.3 million increase in employee-related costs[220]. Cash Flow and Liquidity - The net cash provided by operating activities for the nine months ended September 30, 2025, was $210,795, compared to a net cash used of $(134,808) in 2024[191]. - The company had cash and cash equivalents of $340.5 million, digital assets of $30.3 million, and marketable securities of $1.2 billion as of September 30, 2025[246]. - The company believes its current liquidity will be sufficient to fund operations for at least the next twelve months, with potential future investments in complementary businesses and technologies[224]. - Net cash used in investing activities for the nine months ended September 30, 2025, was $294.4 million, primarily due to the purchase of marketable securities totaling $1.0 billion[237]. - Net cash used in financing activities during the nine months ended September 30, 2025, was $55.7 million, mainly due to $494.6 million for employee tax payments related to RSU awards[239]. Stock-Based Compensation - Figma recognized a one-time cumulative stock-based compensation expense of $975.7 million related to vested restricted stock units in connection with the IPO[172]. - Figma modified certain restricted stock units in May 2024, resulting in a stock-based compensation expense of $801.2 million during the nine months ended September 30, 2024[177]. - The company reported a $1.1 billion increase in stock-based compensation expense for the nine months ended September 30, 2025, net of amounts capitalized[234]. Other Financial Metrics - Non-GAAP operating income for the nine months ended September 30, 2025, was $85,530, up from $70,807 in 2024, reflecting a non-GAAP operating margin of 11%[187]. - Free Cash Flow for the three months ended September 30, 2025, was $49,047, compared to $60,419 in 2024, while Adjusted Free Cash Flow was $49,047 for 2025 versus $60,971 for 2024[191]. - The company expects Free Cash Flow to fluctuate in future periods as it invests in business growth initiatives[189]. - The gross margin may fluctuate due to the timing and amount of technical infrastructure costs and investments in AI technologies[197]. - The company has made significant investments in integrating AI into its platform, which is expected to impact operating results and financial condition[195]. IPO and Mergers - Figma completed its IPO on August 1, 2025, issuing 12.5 million shares at $33.00 per share, resulting in net proceeds of $393.1 million after underwriting discounts[170]. - Figma incurred transaction costs of $4.4 million and $13.6 million related to the abandoned merger with Adobe for the three and nine months ended September 30, 2024, respectively[175]. - The operating cash outflow associated with the transaction costs from the abandoned merger was $68.5 million for the three and nine months ended September 30, 2024[176]. - The company recorded transaction costs associated with the abandoned merger with Adobe, impacting both Free Cash Flow and Adjusted Free Cash Flow[189]. Tax and Valuation - The company maintains a full valuation allowance on its deferred tax assets, indicating uncertainty about their realization[203]. - The provision for income taxes recorded a benefit decrease of $56.4 million, or 105%, due to income tax expense related to foreign subsidiaries[222]. - The fair value of the company's investment in a Bitcoin exchange-traded fund was $96.4 million as of September 30, 2025, with a hypothetical 10% decrease in price potentially reducing its value by $9.6 million[251]. Future Outlook - The company expects general and administrative expenses to decrease as a percentage of revenue over time, despite absolute dollar increases as the business grows[201]. - The company does not currently engage in hedging activities to mitigate foreign currency exchange risks, although it may consider this in the future[249].

Financial Performance - Q3 2025 Revenue reached $274 million[15] - Year-over-year revenue growth was 38%[16] - Net Dollar Retention was 131%[18] - Non-GAAP Gross Margin was 86%[105, 106] - Non-GAAP Operating Margin was 12% of revenue[108, 109] - Adjusted Free Cash Flow Margin was 18%[115, 116] Customer Metrics - Paid Customers with more than $10,000 in ARR grew 32%[101] - Paid Customers with more than $100,000 in ARR grew 44%[101] Financial Outlook - Expected Q4 2025 Revenue is $292-294 million[121] - The company holds $16 billion in cash, cash equivalents, and marketable securities as of September 30, 2025[114]

Core Insights - Figma is experiencing strong performance heading into the end of the year, with significant customer adoption and product velocity [1][2] - The company has launched over 50 new features, indicating a robust development cycle and commitment to enhancing user experience [2] - Figma's revenue for the full year is projected to be between $1.044 billion and $1.046 billion, reflecting growth in both existing and new customer segments [5][6] Customer Behavior and Product Adoption - There is a notable increase in both existing customers utilizing more products and new customers adopting Figma's offerings, contributing to overall growth [6] - The Average Revenue per User (ARPU) has increased from $129 to $131, showcasing improved monetization strategies [6] - The platform's interoperability and the appeal of its product ecosystem are driving customer adoption [7] Financial Performance and Strategy - The company reported net losses primarily due to stock-based compensation, a common practice in the tech industry [7][8] - Figma aims to normalize stock-based compensation on a non-GAAP basis as it continues to invest in long-term growth [9][10] - The company is focused on enhancing its platform capabilities while balancing short-term investments with long-term profitability [10][12] AI Integration and Future Outlook - Figma is actively working on integrating AI capabilities, which is expected to enhance user experience and expand its market reach [23][24] - The company is exploring monetization strategies related to its AI offerings, particularly in collaboration with OpenAI [16][24] - Figma's leadership is committed to continuous improvement and responsiveness to customer feedback, which is crucial for maintaining competitive advantage [20][21]

Core Insights - Figma has raised its annual revenue forecast, indicating confidence in its growth strategy and market position [1] Company Summary - Figma is focusing on expanding its product line-up to enhance its offerings [1] - The company aims to grow its user base, which is a critical component of its revenue growth strategy [1]

Core Insights - Figma achieved an annual revenue run rate exceeding $1 billion in the third quarter, indicating significant growth in the design platform's adoption [1] Company Summary - Figma's design platform has seen increased adoption, contributing to its milestone of crossing $1 billion in annual revenue run rate [1]

Financial Performance - Third quarter revenue reached $274.2 million, marking a 38% year-over-year growth and exceeding previous guidance, with an annual revenue run-rate surpassing $1 billion[5] - GAAP net loss was $(1.1) billion, influenced by a one-time stock-based compensation expense of $975.7 million due to the initial public offering[5] - Non-GAAP net income was $62.4 million, with a non-GAAP operating margin of 12%[5] - Revenue for the three months ended September 30, 2025, was $274.173 million, a 37.9% increase from $198.639 million in the same period of 2024[23] - Gross profit for the three months ended September 30, 2025, was $190.289 million, compared to $179.936 million in the prior year, reflecting a gross margin improvement[23] - Net loss for the three months ended September 30, 2025, was $1.097 billion, compared to a net loss of $15.598 million in the same quarter of 2024, indicating a substantial increase in losses[23] - GAAP gross profit for Q3 2025 was $190.3 million, up from $179.9 million in Q3 2024, representing a 7.5% increase[29] - Non-GAAP gross profit for Q3 2025 reached $236.9 million, compared to $183.1 million in Q3 2024, marking a 29.4% increase[29] - GAAP net loss for the nine months ended September 30, 2025, was $1.1 billion, compared to a net loss of $829.9 million for the same period in 2024[31] - Non-GAAP net income for Q3 2025 was $62.4 million, up from $47.2 million in Q3 2024, reflecting a 32.5% increase[31] - Free Cash Flow for Q3 2025 was $49.0 million, compared to $60.4 million in Q3 2024, a decrease of 18.5%[32] - Operating Cash Flow Margin for Q3 2025 was 19%, down from 31% in Q3 2024[32] - Non-GAAP operating income for Q3 2025 was $34.0 million, compared to $47.9 million in Q3 2024, indicating a decline of 29.1%[29] - GAAP operating loss for Q3 2025 was $1.1 billion, compared to a loss of $47.3 million in Q3 2024[29] - Non-GAAP gross margin for Q3 2025 was 86%, down from 92% in Q3 2024[29] Customer Metrics - Net Dollar Retention Rate for customers with ARR of $10,000 or more was 131%, up 2 percentage points quarter-over-quarter[5] - The company added over 1,000 Paid Customers with more than $10,000 in ARR during the third quarter, totaling 12,910[5] Future Guidance - Fourth quarter revenue guidance is set between $292.0 million and $294.0 million, implying a 35% year-over-year growth at the midpoint[8] - Full year 2025 revenue outlook is between $1.044 billion and $1.046 billion, indicating a 40% year-over-year growth at the midpoint[8] Product Development - Launched over 50 new features, including AI-driven tools like Copy Design and the Figma App for ChatGPT[8] - Acquired Weavy to enhance generative AI and professional editing capabilities on the Figma platform[8] - Welcomed Loredana Crisan as Chief Design Officer, bringing extensive experience from Meta[8] Stock-Based Compensation - The company reported stock-based compensation of $1.138 billion for the three months ended September 30, 2025, compared to $88.403 million in the same period of 2024[27] - The company reported a significant increase in stock-based compensation expense, totaling $1.1 billion for Q3 2025, compared to $88.4 million in Q3 2024[31] Cash and Assets - Cash and cash equivalents as of September 30, 2025, were $340.485 million, down from $486.954 million as of December 31, 2024[25] - Total assets increased to $2.073 billion as of September 30, 2025, from $1.793 billion as of December 31, 2024[25] - Deferred revenue as of September 30, 2025, was $473.567 million, up from $381.363 million at the end of 2024, indicating growth in future revenue recognition[25] Operating Expenses - Total operating expenses for the three months ended September 30, 2025, were $1.327 billion, significantly higher than $227.272 million in the same period of 2024, primarily due to increased R&D and marketing expenses[23] - Net cash provided by operating activities for the three months ended September 30, 2025, was $51.163 million, a decrease from $61.574 million in the same quarter of 2024[27] - The company had a weighted-average share count of 403.212 million for the three months ended September 30, 2025, compared to 210.768 million in the same period of 2024[23]

Core Insights - Figma's shares surged 229% after raising $1.2 billion in an IPO, valuing the company above $20 billion, which was previously tied to a now-scrapped merger with Adobe [1] Financial Performance - Figma reported a 38% year-over-year revenue growth in Q3, with revenue reaching $274.2 million, surpassing the expected $265.2 million [2][5] - The company's net loss increased significantly to $1.10 billion, or $2.72 per share, compared to a loss of $15.6 million, or $0.07 per share, in the same quarter last year [2] Adjusted Metrics - The adjusted earnings per share were reported at 10 cents, excluding a significant rise in stock-based compensation expenses [3][5] - Figma achieved an adjusted operating margin of 12%, exceeding the StreetAccount consensus of 6.5% [3] Product Adoption - Growth was partly driven by the adoption of Figma Make, which utilizes generative AI for app design, with about 30% of customers spending over $100,000 annually using it weekly [3][4]

Figma Inc (FIG), listed on the NYSE, is a company that has recently reported its earnings, showcasing a positive performance. On November 5, 2025, FIG announced earnings per share of $0.085, surpassing the estimated $0.080. The company also reported revenue of approximately $249.64 million, exceeding the estimated $248.62 million. This performance highlights FIG's ability to exceed market expectations.Despite the positive earnings report, FIG's stock has experienced a downward trend over the past four month ...

Core Insights - Earnings season is active with numerous companies reporting, including Figma, The Trade Desk, and Airbnb [1][2] Figma - Figma's stock has experienced volatility since its IPO at $33, peaking at over $140 before declining for four consecutive months, closing at $48.17, which is 46% higher than its IPO price [4][6] - The company reported a 41% revenue increase in Q2, down from 46% in Q1 and 48% for the entire year of 2024, with adjusted profits of $0.09 per share, slightly above market expectations [6] - Figma's revenue guidance for the upcoming quarter is between $263 million and $265 million, representing only a 33% increase from $198.6 million a year prior, leading to a 20% stock drop following the announcement [7] - The platform attracts a diverse range of developers with a subscription model costing between $3 to $90 per month per user [8] - Figma's growth and net dollar retention rate are slowing, but a strong Q3 performance could help regain momentum [9]

Core Viewpoint - Figma is a well-regarded design platform facing challenges due to high market expectations and a significant drop in stock value, raising questions about its valuation and potential as a buying opportunity [1][2]. Financial Performance - Figma's shares have decreased approximately 54% over the past year, indicating investor concerns about its valuation compared to financial performance [2]. - The company's market capitalization is around $27 billion, with projected full-year revenue between $1.021 billion and $1.025 billion, reflecting a 37% increase from 2024 [3]. - Despite a positive shift from a loss of $4.53 per share in the first half of 2024 to a profit of $0.10 per share in 2025, the valuation remains high at over 25 times sales projections [5][8]. Competitive Landscape - Figma operates in a competitive market dominated by major players like Adobe and emerging companies such as Canva, which poses challenges for sustaining high growth rates [4]. Strategic Developments - The integration of Figma with ChatGPT, as highlighted by OpenAI's CEO, could enhance user engagement and expand its market reach [6][7]. - The collaboration with Google is also in progress, indicating potential for further growth and innovation [6]. Market Sentiment - Investors are cautious as Figma's stock reflects significant optimism about future performance, which may not align with actual earnings [10][11]. - Long-term investors may find the recent stock pullback an attractive entry point, but patience is advised until financial performance aligns with the high valuation [11].