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]
Figma(FIG) - 2025 Q2 - Quarterly Report