Figma Reports AI Impact on Hiring, Stock Declines
Design software firm Figma Inc. disclosed AI's influence on its staffing strategy, but investors reacted negatively to high expenses and an operational loss.
Figma Inc. (NASDAQ: FIG) shares fell more than 14% in premarket trading on Thursday as investors showed skepticism regarding the company's substantial investments in artificial intelligence.
The design software company released its second-quarter earnings on Wednesday, reporting operating expenses of $426.9 million, nearly double year-over-year. Research and development costs were the largest component, reaching $167.3 million for the quarter, up from $83.1 million in the prior year. The company also posted a GAAP operating loss of $117.3 million.
Despite Figma announcing a 48% year-over-year revenue increase to $370.1 million, the results did not assuage investor concerns, which have been heightened by fears of AI overspending. In a post-earnings call, CFO Praveer Melwani stated that the company is hiring fewer people than initially planned, attributing this to AI and tools augmenting the existing team and modernizing processes.
Figma offers AI-powered tools for workflow and design, with this quarter marking its first to fully monetize AI credits. While expenses remain high, the company raised its 2026 revenue guidance to between $1.463 billion and $1.467 billion, projecting an average annual growth of 39%. This marks an increase from the previous quarter's forecast.
Figma, which went public just over a year ago, has seen its stock price decrease by 25% year-to-date and by nearly 69% over the last 12 months.