Figma forecasts annual revenue above estimates on strong design software demand
03/09/2025 21:05
Sept 3 (Reuters) - Figma FIG.N on Wednesday forecast full-year revenue above Wall Street expectations in its first financial report as a public company, highlighting strong demand for its artificial intelligence-powered design tools. The company delivered a blowout debut in July, as investors rallied behind its new product lineup, revenue growth and potential to capture a large share of the design software market. Figma's strategy to incorporate every aspect of product development — from ideation to coding and shipping — into its software has made it an attractive option for companies such as Netflix NFLX.O and freelancers to create their own platforms. The company expects fiscal 2025 revenue to be between $1.02 billion and $1.03 billion, compared with analysts' average estimate of $1.01 billion, according to data compiled by LSEG. Figma has been aggressively rolling out new features to attract and retain subscribers. This year it launched four products, including Figma Make — an AI-powered product that turns a written prompt into a functional prototype. The company's shares, which gained 250% on the first day of trading, were down more than 40% since the debut. As its stock price has met certain conditions relating to its initial public offering, the lock-up period for certain employees will end later this week, while senior executives will have to hold their shares till later in the year. Figma's second-quarter revenue jumped 41% to $249.6 million, beating the estimate of $248.8 million. For the third quarter, it forecast revenue to be between $263 million and $265 million, while analysts expect $256.8 million. (Reporting by Zaheer Kachwala in Bengaluru; Editing by Shilpi Majumdar) ((Zaheer.Kachwala@thomsonreuters.com))