What were the key takeaways from Figma’s earnings call?

What were the key takeaways from Figma's earnings call?

What factors drove the changes in Figma's revenue and profit?

Did Figma beat or miss consensus estimates last quarter?

What is Figma's gross profit margin?

What is the revenue and EPS growth rate for Figma year over year?

What does Figma do and what are its main business segments?

What is Figma's latest dividend and current dividend yield?

- **Record Growth**: Q3 revenue $274M (+38% YoY), $1B ARR run rate, 540K paid customers (+20% QoQ), 70% using 3+ products.
- **AI-Driven Innovation**: Figma Make adoption at 30% of 100K+ ARR customers weekly, Weavy acquisition expands creative workflows.
- **Financial Strength**: 12% operating margin, $49M free cash flow, despite $100M one-time SBC expense.
- **Strategic Focus**: Investing in AI-native workflows, consumption-based pricing, and developer tools for long-term growth.


**【Management Opening Remarks】**
- Figma reported Q3 2025 revenue of $274 million, up 38% year-over-year, with a record $1 billion annualized revenue run rate.
- CEO Dylan Field highlighted the launch of Figma Make, Weavy acquisition, and AI integrations as key growth drivers.
- CFO Praveer Melwani emphasized strong financial performance with 12% operating margin and $49 million adjusted free cash flow.

**【CEO Summary Section】**
- Q3 was Figma’s best quarter, with 540,000 paid customers, up 20% from Q1, and 70% of customers using three+ products.
- Figma Make adoption reached 30% of 100K+ ARR customers weekly, driving faster prototyping and production workflows.
- AI-native tools like Make and Prompt to Edit enable seamless design-to-code workflows, reducing thrash and accelerating delivery.
- Weavy acquisition adds AI-driven creative tools, expanding Figma’s platform for brand and product design teams.

**【CFO Financial Commentary】**
- Q3 GAAP net loss due to $100M one-time stock-based compensation, but non-GAAP EPS of $1.08 beat expectations.
- Gross margin 86%, down 200bps vs. Q2 due to AI inference costs, but operating margin improved to 12% from 10%.
- Q4 guidance: $292-294M revenue (35% YoY), FY25 $1.044-1.046B (40% YoY), with consumption-based pricing not material yet.

**【Q&A Highlights】**
- **Weavy Integration**: Will operate as standalone but integrate with Figma platform over time, targeting creative teams and agencies.
- **AI Tool Chain**: Figma’s platform advantage lies in combining AI models with professional design tools, enabling higher craft output.
- **Make Adoption**: 90K+ new paid teams added in Q3, with 140 net customers added in Q3 vs. 88 in Q2, driven by product innovation.
- **Dev Mode Growth**: MCP Server and Code Connect adoption accelerating, with NAB and Flipkart renewing for expanded dev seats.
- **OpenAI Partnership**: ChatGPT integration for diagramming in Q3, with potential monetization discussions ongoing.


Figma, Inc.(FIG)-20251106-2025 Q3 Earnings call transcript

- **Revenue Surge**: Q2 2025 revenue of $250M (+41% YoY) driven by new AI-powered products like Figma Make and Draw.
- **Product Expansion**: 4 new products launched, with Figma Make enabling 10x faster prototyping for customers like Affirm.
- **Financial Discipline**: 5% operating margin with $1.6B cash, but 90% gross margin set to decline due to AI investments.
- **Customer Growth**: 11,900+ paid customers >$10k ARR, 80%+ using 2+ products, and 30%+ monthly active developers.
- **Future Outlook**: FY25 guidance of $1.02B revenue (+37% YoY) with operating income of $88-98M, reflecting strategic investments in AI and global expansion.

**【CEO Summary Section】**
- **Revenue Growth**: Q2 2025 revenue reached $250 million, a 41% year-over-year increase, driven by new product launches and customer expansion.
- **Product Innovations**: Launched 4 new products at Config 2025:
  - **Figma Make**: AI-powered prompt-to-code tool enabling rapid app prototyping (e.g., Affirm reduced PM workflow time by 50%).
  - **Figma Draw**: Advanced vector design tools with 20+ features (e.g., Erica Leong uses it for product design and illustration).
  - **Figma Sites**: Direct-to-web publishing for dynamic websites.
  - **Figma Buzz**: AI-driven brand asset generation for marketers.
- **AI Investment**: Margins expected to compress as $1.6B cash is allocated to AI inference costs and product development.
- **Customer Expansion**: 11,900+ paid customers >$10k ARR, 1,100+ >$100k ARR, with 80%+ using 2+ products.

**【CFO Financial Commentary】**
- **Financial Highlights**: 
  - Non-GAAP operating margin: 5% (down from 12% YoY due to Config costs).
  - Adjusted free cash flow margin: 24% (up from 18% YoY).
  - Gross margin: 90% (expected to decline with AI spend).
- **Guidance**: 
  - Q3 2025 revenue: $263-265M (15% YoY growth).
  - FY25 revenue: $1.021-1.025B (37% YoY growth).
  - Operating income: $88-98M (down from $110M in FY24 due to investments).
- **Lock-up Releases**: 5 largest VC holders will release 17.5% of shares post-Q3 2025 earnings.

**【Q&A Key Highlights】**
- **Figma Make Monetization**: Early beta usage shows potential for AI credit-based pricing; enterprise users already exceeding credit limits.
- **Competitive Edge**: Figma's design context integration (e.g., style libraries) differentiates Make from standalone AI tools.
- **Cash Allocation**: $1.6B cash will fund AI inference, sales/marketing, and strategic M&A (e.g., Payload and Modyfi acquisitions).
- **Customer Feedback**: 30%+ monthly active users are developers, with Coinbase seeing 10x speed improvements via Dev Mode MCP.
- **Global Expansion**: Localized product launches in Korean and Brazilian Portuguese drove LatAm growth (e.g., Itaú Unibanco adoption).

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