Core Insights - Ark Invest purchased over 108,000 shares of Figma after its stock dropped nearly 20% following a disappointing earnings report as a public company [1] - Figma's stock initially surged over 250% during its IPO, but subsequent Q2 results and guidance fell short of expectations, leading to a significant selloff [2] - Figma has a solid user base with over 13 million monthly users and more than 1,000 clients paying over $100,000 annually, including major companies like Alphabet, Microsoft, Netflix, and Uber [3] Financial Performance - In Q2 2025, Figma reported record revenue of $250 million, marking a 41% year-over-year increase [5] - The adjusted operating margin was 5%, while the adjusted free cash flow margin was significantly higher at 24% [5] Product Innovation - Figma has expanded its product portfolio by launching four new products, including Figma Make, an AI-powered tool for creating prototypes and web applications [6][7] - Other new products include Draw for enhanced visual expression, Sites for web publishing, and Buzz for scalable brand asset creation [7] Market Context - Adobe attempted to acquire Figma for $20 billion in 2022, but the deal fell through in 2023 due to competition concerns raised by U.K. regulators [4]
Cathie Wood Is Buying the Dip in Figma Stock. Should You?