Figma, the collaborative design software company recently acquired by Adobe, has launched two exciting new products—Figma Make and Figma Sites. Its first earnings report since going public came in with mixed financial results. According to the company’s announcement, Figma Make leverages artificial intelligence to generate beautiful, unique app and website designs from user written prompts. At the same time, Figma Sites lets anyone turn those designs into real-deal websites.
In Q2 2024, Figma became profitable with a net income of $846k. This success was especially impressive given that the company reported a massive $827.9 million loss. Although disappointing, this loss signals the hard realities that the company is dealing with as they expand their operations after going public. It recently recorded an enviable adjusted consolidated operating income of $11.5 million. This figure exceeded the initial estimate, which was between $9 million and $12 million.
Figma’s revenue for the quarter jumped up to $263 million to $265 million. During the third quarter, the company said revenue growth will face tough comparisons. The company now expects its full year adjusted operating income to be in the range of $88 million to $98 million.
The trajectory of Figma’s stock since going public has been a wild one. The shares were originally priced at $33 but went on to open at $115.50. As of Wednesday, though, Figma’s stock was listed at $68.13, a sign of optimism despite its cloudy bottom line.
Dylan Field, co-founder and CEO of Figma, commented on the role of AI in design, stating, “I think that the more that software becomes easier to build with AI, the more that people are going to see that that human touch is needed.” This view very much reflects the company’s intent to balance new innovations with creative intuition.
Figma recently announced two acquisitions to bolster its collaborative capabilities. The new company brings in Modyfi, a vector graphics startup, and Payload, a content management system startup. This decision further supports its stated goal of growing and enhancing its capacity in design and content management.
Figma isn’t shy about forecasting its revenue to be higher than $1.02 billion for the year. This bullish projection underscores the company’s confidence in its growth trajectory, despite challenges being experienced today. The company has continued looking ahead, finding ways to further utilize AI technology to save designers time and create better overall user experiences.
“That’s something that I think is valuable information.” – Dylan Field