The company exceeded third-quarter targets with $391.4 million in revenue and lifted its full-year outlook, yet shares dropped 7% after hours due to an expected deceleration to roughly 33% growth in the fourth quarter. Management attributed the revenue trade-off to distributing additional machine learning credits without raising client prices. Figma shares have now declined around 41% year to date amid persistent fears regarding artificial intelligence competition. The operational adjustments arrive shortly after direct competitor Canva slashed nearly a quarter of its staff.
Key points
Leadership is intentionally sacrificing immediate revenue by offering free artificial int…: Leadership is intentionally sacrificing immediate revenue by offering free artificial intelligence credits to secure customer retention.
Slower projected fourth-quarter growth triggered an after-hours sell-off despite an eleva…: Slower projected fourth-quarter growth triggered an after-hours sell-off despite an elevated full-year financial forecast.
Broad competitive pressures continue to challenge the design industry, leading to signifi…: Broad competitive pressures continue to challenge the design industry, leading to significant stock drops and competitor layoffs.
Sources checked by our analysis pipeline: 1
Figma shares tumbled 7% in extended trading after the company reported third-quarter results and guidance that surpassed Wall Street's predictions.
Here's how the company performed relative to LSEG consensus:
- Earnings per share: 10 cents adjusted vs. 5 cents expected
- Revenue: $391.4 million vs. $375.8 million expected
Figma's revenue grew about 43% year over year in the quarter, according to a statement. Net loss narrowed to $81.3 million, or 15 cents per share, compared with a loss of $1.10 billion, or $2.72 per share, a year earlier.
The company's 12% adjusted operating margin exceeded the 6.1% consensus among analysts polled by StreetAccount.
Executives lifted the full-year forecast. Figma now anticipates an 11% operating margin, up from 9% as of August, and $1.497 billion to $1.499 billion in revenue, compared with $1.463 billion to $1.467 billion before. Analysts surveyed by LSEG were looking for $1.471 billion in 2026 revenue.
The company sees fourth-quarter revenue growth slowing to about 33%. Analysts polled by LSEG had predicted 28% growth.
Figma's announcement comes a day after highly valued design software startup Canva said…
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