Figma’s stock declined 7% in extended trading following the release of its third-quarter financial results and forward guidance that exceeded analyst expectations.
The company reported revenue growth of approximately 43% year over year for the quarter. Net losses narrowed significantly to $81.3 million, or 15 cents per share, compared with a loss of $1.10 billion, or $2.72 per share, in the prior-year period. Figma’s adjusted operating margin reached 12%, surpassing the 6.1% consensus estimate among analysts surveyed by StreetAccount.
Looking ahead, Figma raised its full-year outlook. The company now projects an 11% operating margin, revised upward from 9% as of August, and revenue guidance of $1.497 billion to $1.499 billion, compared with its previous range of $1.463 billion to $1.467 billion. This new guidance exceeded LSEG analyst expectations of $1.471 billion for the year. For the fourth quarter, Figma forecast revenue growth of approximately 33%, ahead of the 28% growth anticipated by LSEG-polled analysts.
The company is strategically investing in artificial intelligence capabilities to drive long-term expansion. During the quarter, Figma distributed increased AI credits to clients while maintaining pricing levels, effectively trading shorter-term revenue for customer investment and sustainable growth. The number of weekly users at organizations spending over $10,000 annually on Figma who utilized AI credits rose by nearly 50% during the period. Additionally, Figma’s proprietary AI model doubled its share of work performed, and the rate of users reversing AI-generated results declined.
Figma’s leadership also signaled heightened attention to cybersecurity matters. The company is enhancing scrutiny of vendor security protocols following recent breaches at organizations like Hugging Face. Year to date, Figma shares have declined approximately 41%, significantly underperforming the S&P 500 index, which has gained 12%.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI