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]
Figma(FIG) - 2025 Q3 - Quarterly Results