Photo: Jan Dittrich (WMDE) / Wikimedia Commons / CC BY 4.0
Figma raised its full-year outlook Wednesday after third-quarter revenue jumped 43%, saying customers are flocking to its AI design tools – but the shares fell about 8% in extended trading as of 4:36 p.m. ET, Reuters reported, after gross margin came in just below expectations.
The San Francisco design software company earned an adjusted 10 cents a share on revenue of $391.4 million in the quarter, topping expectations of 5 cents on $375.8 million. Its net loss narrowed to $81.3 million from $1.10 billion a year earlier, and its 12% adjusted operating margin roughly doubled what analysts expected.
Figma now expects full-year revenue of $1.497 billion to $1.499 billion, up from $1.463 billion to $1.467 billion, and an adjusted operating margin of 11%, up from 9%, with adjusted operating income of $158 million to $163 million. Gross margin of 80% in the quarter fell just short of the 81% analysts expected – the miss that pressured the stock. The company sees fourth-quarter revenue growth of about 33%.
The AI bet. Figma started giving customers more AI credits at the same prices during the quarter, deliberately trading near-term revenue for deeper usage of tools like its Figma Agent design assistant. “You’re potentially trading off near-term revenue, investing in your customers, and then allowing yourself to grow durably over the long term,” finance chief Praveer Melwani told CNBC. More than 80% of Figma’s large paid customers used AI credits weekly through October, and credit utilization has risen 40% since the repricing, Melwani said. Figma also more than doubled the share of work powered by its own design model, which serves customers at lower cost than third-party models, the company said.
The stock remains down about 41% this year as investors have worried AI could undercut design software. Rival Canva said Tuesday it is cutting 22% of its staff after growth slowed.
JBizNews Desk | San Francisco
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