The stock of Figma (FIG) is down 15% after the design software company reported financial results for the first time since its initial public offering (IPO) held in July of this year.
The company reported breakeven earnings and revenue of $249.6 million U.S. for this year’s second quarter.
The revenue figure narrowly beat the $248.8 million U.S. expected on Wall Street. Sales were up 41% year-over-year.
In terms of guidance, Figma forecast revenue of $263 million U.S. to $265 million U.S., which would represent about 33% growth at the midpoint.
Analyst were looking for Q3 sales of $256.8 million U.S.
For the entire year, Figma is forecasting between $88 million U.S. and $98 million U.S. in operating income and a little more than $1.02 billion U.S. in revenue.
The revenue range implies 37% growth and is above the $1.01 billion U.S. consensus estimate.
Management said they have yet to start fully charging for artificial intelligence (A.I.) products and declined to provide a forecast for third quarter operating income.
There are concerns on Wall Street related to A.I. and whether it will displace the business of creative software firms such as Figma.
However, management said they’re not seeing a disruption from A.I. Figma reported a 129% net retention rate, a reflection of expansion with existing customers.
Figma said that it had 1,119 customers paying more than $100,000 U.S. in annualized revenue, up from 1,031 in the year’s first quarter.
The company also reported $1.6 billion U.S. in cash, cash equivalents, and marketable securities on June 30, with $90.8 million U.S. in a Bitcoin (BTC) exchange-traded fund (ETF).
Prior to today (Sept. 4), FIG stock had fallen 41% since its IPO to trade at $68.13 U.S. a share.
