Core Viewpoint - Figma's first earnings report as a publicly traded company led to a significant drop in its stock price, despite initial excitement following its IPO [1][2][12] Financial Performance - Figma reported second-quarter revenue growth of 41% to $249.6 million, slightly exceeding analyst expectations of $248.7 million [5] - The company maintained a net dollar retention rate of 129% for customers with over $10,000 in annual recurring revenue, indicating increased spending by existing customers [6] - Figma achieved an adjusted operating income of $11.5 million, with adjusted earnings per share of $0.09, surpassing the consensus estimate of $0.08 [7] Guidance and Future Outlook - The company provided guidance for third-quarter revenue of $263 million to $265 million, reflecting a 33% growth at the midpoint, which is above the consensus of $259.2 million [8] - For the full year, Figma anticipates revenue between $1.021 billion and $1.025 billion, indicating a 37% growth at the midpoint, compared to estimates of $1.01 billion [8] - Management's guidance is viewed as conservative, considering the recent launch of new products, which may introduce some uncertainty [9] Product Development - Figma launched four new products in the quarter, doubling its product offering, which includes Figma Make, Figma Draw, Figma Sites, and Figma Buzz [10][11] - The introduction of new products may impact gross margins, which slipped to 90%, but is expected to drive future growth despite short-term uncertainties [11] Investment Considerations - Despite the stock's decline, there are no significant red flags in Figma's earnings report, and the conservative guidance is seen as reasonable for a debut report [12] - The price-to-sales ratio for Figma has adjusted from 40 to 29, making it more comparable to other high-growth software stocks, suggesting a potential buying opportunity for risk-tolerant investors [13] - The long-term outlook for Figma remains positive, with a strong combination of revenue growth, profitability, and an expanding product portfolio [14]