Shares in Figma Inc. plunged more than 13% in after-hours today after the graphic design software provider fell well short of expectations on earnings in its first quarterly results after going public in July.

For the quarter that ended on June 30, Figma reported it broke even on revenue of $249.6 million, up 41% year-over-year. The company did not provide adjusted earnings per share. The breakeven earnings figure was significantly below the 18 cents per share expected by analysts, while revenue was ahead of an expected $228.2 million.

Figma had 11,096 paid customers with more than $10,000 in annual recurring revenue as of the end of the quarter and 1,119 paid customers with annual recurring revenue of $100,000 or more. The company’s customers were also loyal, with Figma reporting a net dollar retention rate of 129%.

Net income in the quarter was $28.2 million and as of the end of June, Figma had $1.6 billion in cash, cash equivalents and marketable securities on hand.

Business highlights in the quarter included Figma launching four new products: Figma Make for artificial intelligence-powered prototyping, Figma Draw for richer visual expression, Figma Sites for publishing designs as live websites, and Figma Buzz for creating marketing assets.

Figma also released Dev Mode MCP Server, a Model Context Protocol offering that speeds up developer workflows by bringing context from design systems into LLM-generated code.

“We delivered record revenue in Q2 as we continued to innovate with the launch of four new products,” co-founder and Chief Executive Dylan Field said in the company’s earnings release. For its third quarter, Figma expects revenue of $263 million to $265 million, and for the full year, $1.021 billion to $1.025 billion.

Image: Figma