Figma's AI Costs Sink Stock Despite Strong Q2 Earnings Beat
Figma announced its Q2 revenue at $370.1 million, reflecting a 48% increase compared to the previous year and surpassing its forecasts. However, shares dropped by 16.52% due to escalating AI expenses. The adjusted earnings per share (EPS) stood at $0.08, outpacing Wall Street’s expectation of $0.04, while revenue exceeded the consensus of $352 million. GAAP operating expenses climbed to $426.9 million, resulting in a GAAP operating loss of $117.3 million, with stock-based compensation amounting to $147.6 million. Non-GAAP operating income was reported at $36.1 million, achieving a 10% margin. For Q3, Figma projects revenue between $373 million and $375 million and has increased its full-year forecast to $1.463 billion to $1.467 billion. CFO Praveer Melwani highlighted a net dollar retention rate of 136%.
Key facts
- Figma reported Q2 revenue of $370.1 million, up 48% year over year.
- Stock dropped 16.52% in after-hours trading.
- Adjusted EPS of $0.08 beat estimates of $0.04.
- GAAP operating expenses rose to $426.9 million from $219.7 million.
- GAAP operating loss was $117.3 million, versus income of $2.1 million a year earlier.
- Stock-based compensation was $147.6 million.
- Non-GAAP operating income was $36.1 million (10% margin).
- Cost of revenue more than doubled to $60.5 million; gross margin fell to 84% from 89%.
- Q3 guidance: revenue $373M-$375M, implying 36% growth.
- Full-year revenue target raised to $1.463B-$1.467B.
- Net dollar retention rate was 136%.
- Over 80% of large customers used AI credits weekly; over 50% used Figma agent weekly.
- AI usage limits enforced in March; net dollar retention was 139% after Q1.
- Full-year non-GAAP operating income projected at $125M-$135M.
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- Figma
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