Key points:

• Figma shares pop a bit
• Stock still beat up out there
• Guidance leans a lot on AI tools

At one point earlier, shares were higher by nearly 12% in off-hours. But from their record? A steep 70% drop.

💻 Revenue Beats, but Losses Balloon

• Figma stock FIG gained 5% after the company beat revenue expectations for the third quarter.
• The firm reported adjusted earnings of 10 cents per share on revenue of $274.2 million, surpassing estimates of $265.2 million. Revenue grew 38% year over year, a strong performance for the young public company.
• However, net loss widened dramatically to $1.10 billion, or $2.72 per share, compared with a loss of $15.6 million, or 7 cents, a year earlier.

🤖 AI-Fueled Growth

• Much of the company’s momentum came from Figma Make, the company’s AI-driven design product that helps developers create app interfaces using generative models.
• CEO Dylan Field said about 30% of customers spending over $100,000 annually are now using Figma Make weekly – a figure that’s “continuing to grow rapidly.”
• “We will continue investing heavily in AI and we will trade near-term margin to build the right long-term platform for our customers,” Field said on the company’s earnings call.

📉 Stock Still Far From Its Peak

• Shares were up as much as 12% in extended trading before settling at a 5% gain ahead of Thursday’s opening bell.
• Still, the stock remains down about 70% from its record high of $143, set shortly after its public debut.
• Figma’s valuation and profitability remain a concern for investors, especially amid a cooling market for high-growth tech names.

Source: Tradingview