Key Stats for Figma Stock
- Pre-market Price Change for Figma stock: 4.5%
- $FIG Share Price as of Nov. 5: $44
- 52-Week High: $143
- $FIG Stock Price Target: $71
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What Happened?
Figma (FIG) stock is up more than 4% in pre-market trading after the design software company crushed third-quarter expectations and issued strong guidance for the current quarter.
Figma reported revenue of $274.2 million, a 38% increase year over year and significantly ahead of the $265.2 million analysts had expected. Adjusted earnings per share came in at $0.10, and the company posted an adjusted operating margin of 12%, double the 6.5% Wall Street had anticipated.
For the fourth quarter, Figma guided revenue to be between $292 million and $294 million, surpassing the consensus estimate of $283 million. At the midpoint, that implies 35% growth and would bring full-year revenue above $1 billion.
The company now has over 1,250 customers spending more than $100,000 annually, adding 140 net new large customers in Q3 alone.
That’s a significant acceleration from the 88 added in the second quarter. Net dollar retention for customers spending at least $10,000 annually improved to 131%, up from 129% in the previous quarter.
CEO Dylan Field credited much of the growth to Figma Make, the company’s AI-powered design tool that launched broadly in July.
Approximately 30% of customers spending over $100,000 are now using Figma on a weekly basis, and that number continues to rise.
The product has attracted new customers to the platform and increased usage among existing teams.
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What the Market Is Telling Us About Figma Stock
The strong positive reaction to Figma stock suggests investors are buying into the company’s AI strategy and platform approach.
While many AI coding tools have seen growth slow down, Figma Make appears to be gaining momentum.
More than 70% of Figma’s customers now use three or more products on the platform, showing that the company’s strategy of bundling design tools together is working.
The company added over 90,000 paid teams in just two quarters, expanding its total paid customer base to 540,000.
What’s particularly impressive is that Figma is delivering this growth while maintaining profitability. The 12% operating margin beat demonstrates that Figma can invest heavily in AI while still maintaining control over costs.
CFO Praveer Melwani said Figma isn’t yet charging for AI consumption or enforcing credit limits, meaning there’s potential upside once those monetization levers get pulled.
The net loss of $1.10 billion appears alarming at first glance, but it was primarily driven by a massive one-time stock-based compensation expense related to its initial public offering.
The adjusted metrics exclude that non-cash charge and better reflect the underlying business performance.
Figma stock has gained 33% since its July IPO at $33 per share, significantly outperforming the Nasdaq’s 11% gain over the same period.
The company also announced that it has acquired Weavy, an AI creative tools startup that will become Figma Weave, although pricing and revenue contribution details weren’t disclosed.
Field emphasized that the company will continue to invest aggressively in AI, even if it means sacrificing near-term margins.
With customers quickly adopting new products and the platform expanding into new use cases, Figma appears well-positioned to continue growing at a rate above 35% while competitors struggle to maintain momentum.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
