Figma Stocks Drop 16% After Annual Profit Guidance Misses Estimates

Graphic design and web editing software company Figma (NYS:FIG) plunged 16% in after-hours trading on August 5 (US local time) after issuing annual operating profit guidance that fell short of market expectations. The company's second-quarter financial results exceeded analyst forecasts, but concerns over annual profitability growth overshadowed the quarterly performance. According to CNBC, Figma provided an annual adjusted operating profit guidance range of $125 million to $135 million, positioned at the lower end of the $133.2 million consensus estimate compiled by FactSet.

Figma Reports Q2 Revenue Growth of 48% Year-Over-Year

Figma reported second-quarter revenue of $371 million, representing a 48% increase compared to the same period last year. The figure surpassed the company's own previous forecast and marked the third consecutive quarter of accelerating revenue growth. The company's adjusted gross margin reached 85%, while its Net Dollar Retention (NDR) rate maintained a robust level of 136%.

Figma Sets Annual Operating Profit Guidance Below Analyst Expectations

The company issued annual adjusted operating profit guidance of $125 million to $135 million, excluding one-time items. This range sits at the lower boundary of the $133.2 million analyst consensus compiled by FactSet. The guidance reflects the company's outlook for profitability improvement in the second half of the year.

Figma Stock Drops 16.48% in After-Hours Trading

Figma's stock price fell $4.64 to $23.51 in after-hours trading, representing a 16.48% decline. The drop occurred as market concerns spread regarding the company's profitability improvement pace in the second half not meeting investor expectations, despite the strong second-quarter performance.

FAQ

What were Figma's second-quarter financial results on August 5?

Figma reported second-quarter revenue of $371 million, up 48% year-over-year, with an adjusted gross margin of 85% and a Net Dollar Retention rate of 136%. The results exceeded the company's own forecast and marked three consecutive quarters of revenue growth acceleration.

Why did Figma stocks drop 16% in after-hours trading?

Figma's stock dropped 16.48% in after-hours trading on August 5 (US local time) after the company issued annual adjusted operating profit guidance of $125 million to $135 million, which fell at the lower end of the $133.2 million analyst consensus estimate compiled by FactSet, raising concerns about profitability growth despite strong Q2 results.

What is Figma's annual operating profit guidance range?

Figma provided an annual adjusted operating profit guidance range of $125 million to $135 million, excluding one-time items, according to the announcement made on August 5 (US local time).