(Reuters) -Figma on Wednesday forecast full-year revenue above Wall Street expectations in its first financial report as a public company, highlighting strong demand for its artificial intelligence-powered design tools.
The company delivered a blowout debut in July, as investors rallied behind its new product lineup, revenue growth and potential to capture a large share of the design software market.
Figma’s strategy to incorporate every aspect of product development — from ideation to coding and shipping — into its software has made it an attractive option for companies such as Netflix and freelancers to create their own platforms.
The company expects fiscal 2025 revenue to be between $1.02 billion and $1.03 billion, compared with analysts’ average estimate of $1.01 billion, according to data compiled by LSEG.
Figma has been aggressively rolling out new features to attract and retain subscribers. This year it launched four products, including Figma Make — an AI-powered product that turns a written prompt into a functional prototype.
The company’s shares, which gained 250% on the first day of trading, were down more than 40% since the debut.
As its stock price has met certain conditions relating to its initial public offering, the lock-up period for certain employees will end later this week, while senior executives will have to hold their shares till later in the year.
Figma’s second-quarter revenue jumped 41% to $249.6 million, beating the estimate of $248.8 million.
For the third quarter, it forecast revenue to be between $263 million and $265 million, while analysts expect $256.8 million.
(Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar)
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