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].
Figma(FIG) - 2025 Q3 - Quarterly Report