Can a record revenue quarter still be considered a setback? As Figma Inc.‘s (NYSE:FIG) shares plummet and analysts scramble to adjust their forecasts, the surprising details behind the numbers reveal why the market isn’t impressed.
Shares of Figma tanked in early trading on Thursday after the company reported disappointing second-quarter earnings.
Here are some analyst takeaways.
- RBC Capital Markets analyst Rishi Jaluria maintained a Sector Perform rating, while reducing the price target from $75 to $65.
- BofA Securities analyst Brad Sills reaffirmed a Neutral rating, while cutting the price target from $85 to $69.
- Piper Sandler analyst Brent Bracelin reiterated an Overweight rating and price target of $85.
Check out other analyst stock ratings.
RBC Capital Markets: Figma generated record revenue of $249.6 million, up 41% year-on-year, in line with consensus, Jaluria said in a note. He added, however, that non-GAAP earnings of $11.5 million missed the consensus of $13.8 million.
The company's customers that contribute more than $10,000 rose to 11,906 and those with revenue of $100,000 increased to 1,119 during the quarter, the analyst stated. The revenue guidance for the third quarter and full year came in around $2.3 million and $1.1 million above consensus estimates at the midpoint, he further said.
"We note Figma’s current guidance contemplates investments in new products, AI, etc. but does not contemplate any new product revenue contribution for FY25 given it remains early days for new products," Jaluria wrote.
BofA Securities: Figma did not deliver significant upside, although some metrics stood out, like 9% sequential revenue growth, Sill said. Customers with over $10,000 annual recurring revenue (ARR) of 7% came in below the 13% recorded in the same quarter in 2024, he added.
The third-quarter outlook does not include any monetization from AI features, the analyst stated. "However, it is possible that monetization could drive upside in FY26," he further wrote.
Piper Sandler: This was the first quarter in which Figma almost crossed $1 billion in revenue run rate, Bracelin said. He added, however, that the company's year-on-year revenue growth decelerated to 41%, from 46% in the previous quarter.
Figma's gross margin moved below 90% for the first time, with the company continuing to invest in AI, the analyst stated. "Pricing is expected to drive a mid-to-high single digit tailwind to growth over the course of the year," he further wrote.
FIG Price Action: Figma shares were down 17.69% at $56.08 at the time of publication on Thursday, according to Benzinga Pro data.
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