Financial Data and Key Metrics Changes - Figma achieved $250 million in revenue for Q2 2025, marking a new quarterly revenue record and representing a 41% year-over-year growth [8][46] - The non-GAAP operating margin was 5%, while the adjusted free cash flow margin was 24% [8][50] - The gross margin for the quarter was 90%, with expectations of further compression due to AI product rollouts [48][49] Business Line Data and Key Metrics Changes - Figma launched four new products at the Config conference: Figma Make, Figma Draw, Figma Sites, and Figma Buzz, effectively doubling its product offering [14][35] - Over 80% of customers used two or more products, and two-thirds used three or more products during Q2 [46] Market Data and Key Metrics Changes - The company localized its product and support for Korean and Brazilian Portuguese users, which resonated well with customers in the LatAm region [38][39] - Figma's platform is increasingly being adopted by large enterprises, with over 11,900 paid customers spending over $10,000 in ARR, and more than 1,100 customers spending over $100,000 in ARR, a 42% year-over-year growth [48] Company Strategy and Development Direction - Figma aims to build a durable, long-term business focused on the evolving needs of designers and product development teams, with significant investments in AI efforts [12][41] - The company plans to complement its existing seat-based subscription model with a consumption model to meet the evolving product platform needs [53] Management's Comments on Operating Environment and Future Outlook - Management expressed excitement about the role of design and craft in a world where AI simplifies software creation, emphasizing that design is a critical differentiator for companies [41][42] - The company anticipates revenue for Q3 2025 to be between $263 million and $265 million, and for the full year, between $1.021 billion and $1.025 billion, implying a 37% year-over-year growth at the midpoint [54][55] Other Important Information - Figma ended the quarter with $1.6 billion in cash, cash equivalents, and marketable securities, including approximately $91 million in a Bitcoin exchange-traded fund [51] - The company has a structured lockup release plan for its early VC stockholders, with specific percentages of shares being released at different intervals [52] Q&A Session Summary Question: Context on the ramp of new products and monetization - Management acknowledged that new products are still early in their lifecycle but noted strong initial engagement, particularly with Figma Draw and Figma Sites [60][61] Question: Uptick in full seat usage due to Figma Make - Management confirmed that they are building out billing infrastructure to support future monetization and have broadened usage across different seat types [69] Question: Competitive environment and differentiation - Management highlighted that Figma Make's unique ability to integrate design context sets it apart from other tools in the market [71][72] Question: User personas for Figma Make - Management noted that Figma Make is attracting a diverse range of users, including designers, developers, and marketers, expanding exposure across different personas [75][76] Question: AI's impact on Figma's relevance - Management expressed confidence that Figma will remain relevant in a post-AI software world by supporting diverse design surfaces and integrating AI into their platform [80][82] Question: Use of cash and investment framework - Management indicated that the $1.6 billion cash position provides flexibility for investments in AI and other growth areas, with a focus on high-priority opportunities [87][89] Question: Pricing and packaging rollout feedback - Management reported positive feedback from enterprise customers regarding the new pricing and packaging, estimating a mid to high single-digit growth contribution for the year [92][94]
Figma(FIG) - 2025 Q2 - Earnings Call Transcript