Core Viewpoint - Figma's stock experienced a significant drop after a strong IPO debut, raising questions about its future performance and investment potential [1][2]. Financial Performance - Figma reported a 41% year-over-year revenue growth in Q2, reaching $249.6 million, with gross profit increasing to $221.8 million from $137.6 million in 2024 [5]. - The company's balance sheet showed assets totaling $2 billion, including cash and equivalents of $621.6 million, while total liabilities were $607.4 million, with $433.1 million classified as deferred revenue [6]. Stock Price Decline - The stock price fell due to a disappointing outlook, with Q3 sales expected between $263 million and $265 million, representing a 33% year-over-year growth, a decline from Q2's 41% [7]. - The full-year revenue forecast of $1 billion indicates a 37% year-over-year growth, which raised concerns among investors regarding a potential sales slowdown and the stock's high valuation [8]. Summary of IPO and Market Reaction - Figma's IPO was initially successful, with shares more than tripling on debut, but subsequent earnings reports indicated a potential slowdown in growth, leading to a decline in stock price [9].
Is Now the Time to Buy Figma Stock?