Figma shares dropped 14% in after-hours trading on September 3, after releasing its first earnings report since its July IPO.

The company posted Q2 revenue of US$249.6 million, up 41% year-on-year and slightly above estimates.

Net income was US$846,000, compared with a loss of US$827.9 million a year earlier.

Earnings per share broke even, while adjusted operating income reached US$11.5 million.

For Q3, Figma expects revenue between US$263 million and US$265 million, above consensus, and forecasts full-year revenue to top US$1.02 billion.

The company had 1,119 customers paying more than US$100,000 annually as of June 30 and reported US$1.6 billion in cash and equivalents, including US$90.8 million in a bitcoin ETF.

An extended lock-up will keep 35% of shares held by certain investors restricted until August 2026.

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🔗 Source: CNBC

🧠 Food for thought

1️⃣ Post-IPO lockup dynamics often create selling pressure despite strong fundamentals

Figma’s 14% stock drop despite beating revenue expectations illustrates a common pattern for newly public companies facing share lockup expirations 1.

The company’s lockup for 25% of employee shares expired on September 4, just one day after earnings, creating potential selling pressure regardless of financial performance 1.

This dynamic explains why Figma’s stock fell from its $115.50 IPO debut to $68.13 at close, even as the company reported 41% revenue growth and turned profitable with $846,000 in net income versus an $827.9 million loss the previous year 1.

The timing demonstrates how selling from lockup expirations can overshadow positive business metrics in the short term.

Notably, investors holding over half of Figma’s outstanding shares agreed to extend their lockup until August 2026, suggesting institutional confidence in the company’s long-term prospects despite immediate stock pressure 1.

2️⃣ Design software companies embrace AI as enhancement rather than replacement

Figma’s approach to artificial intelligence contrasts with broader software industry concerns about AI displacement.

While 30% of software developers believe AI will replace their roles by 2040, Figma CEO Dylan Field argues that AI will make human designers more valuable, not less 21.

The company launched AI-powered tools like Figma Make and Figma Sites but hasn’t started charging for them yet, building costs into their existing model while testing market adoption 1.

This strategy reflects confidence that AI will expand Figma’s addressable market rather than cannibalize existing revenue streams.

Field’s perspective that “the more that software becomes easier to build with AI, the more that people are going to see that that human touch is needed” positions design as increasingly critical as development becomes automated 1.

Recent Figma developments

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