2025-09-04
Early gains are being reassessed as a high starting valuation and a near-term lock-up release met solid but not spectacular results, which led to profit-taking despite 41% revenue growth and above-consensus guidance.
After-hours movement: The stock declined approximately 13% on September 3rd following the post-release announcement.
Last close before results: $68.13 on Wednesday.
IPO and day-one high: $33 offer; about $115.50 first day high.
Q2 revenue: about $249.6m, up 41% year on year.
Q3 guide: $263–$265m versus roughly $256.8m consensus.
Full-year guide: slightly above $1.02bn, about 37% growth.
Net revenue retention (NRR): 129%, from 132% in Q1.
Customers over $100k annual spend: 1,119, up from 1,031 in the March quarter.
Lock-up: 25% of some employees' shares are eligible after 4 Sept close.
Figma shares fell by roughly 13% in after-hours trade on 3 September following its first earnings report since listing in late July, setting a weaker tone for the next session.
The stock had closed at $68.13 before the release, after being priced at $33 in the IPO and hitting about $115.50 on day one, which shows how far expectations had risen into the event. (CNBC) Quarterly revenue rose 41% to about $249.6m on strong enterprise adoption and product expansion, with the growth rate well above most software peers this quarter.
Management guided Q3 revenue to $263–$265m and full-year revenue to slightly above $1.02bn, both ahead of published estimates and consistent with mid-30s growth.
Net revenue retention eased to 129% from 132% in Q1, which still signals healthy expansion within existing accounts but also hints at normalising spend patterns.
| Metric | Q2 Reported | Street/Prev | Direction |
|---|---|---|---|
| Revenue | ~$249.6m | — | +41% YoY |
| Q3 Guide | $263–$265m | ~$256.8m | Above |
| FY Guide | >$1.02bn | ~$1.01bn | Above |
| NRR | 129% | 132% (Q1) | Down seq. |
| >$100k Customers | 1,119 | 1,031 (Mar qtr) | Up |
Figma's rapid early share-price rise and a full valuation left a thin margin for error, so even an above-consensus quarter did not extend the rally on the first public results. Reports pointed to a rich multiple base and high expectations as the main reasons the tape reacted negatively despite strong revenue and a healthy outlook.
A late August decline of about 39% suggests expectations had already cooled ahead of the earnings release, while a small sequential dip in net revenue retention and a normalisation of expansion rates tempered enthusiasm where the starting point assumed sustained acceleration. (Nasdaq)
Management said 25% of some employees' shares would be sale-eligible after the market close on 4 September, while certain A-share holders agreed to longer lock-ups, and another block expires in August 2026.
Partial unlocks often add short-term supply and can widen spreads briefly, which is a common source of caution around the release window for newly listed companies.
Net income came in at about $846,000 versus a large year-ago loss, and adjusted operating income of $11.5 million landed within guidance, showing early operating leverage.
Independent coverage noted investor focus on free cash flow as a medium-term anchor for valuation, alongside steady progress on margins over several quarters.
Commentary highlighted that valuation remained demanding relative to the software sector even after the pullback, which raised the hurdle for upside on day one reporting.
New AI features and adjacent products, including Figma Make and Figma Sites, broaden the addressable base but can weigh on near-term margins until monetisation deepens.
Clearer gross and operating margin trajectories over multiple quarters that anchor valuation at a more durable level.
Stabilising NRR alongside continued growth in customers over $100k and evidence of product uptake in new modules.
Smooth lock-up absorption with normalised volumes and tighter bid-ask spreads following the 4 September unlock.
A softer software tape or a higher-rate backdrop that compresses sector multiples and pressures higher-valuation names first. (yahoo!finance)
A slowdown relative to guidance or another dip in NRR that clouds the medium-term growth profile.
Prolonged post-unlock volatility keeps marginal buyers cautious beyond the usual digestion window.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment, or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction, or investment strategy is suitable for any specific person.
