Figma Shares Tumble on Weak Sales Growth Outlook After IPO

Figma Inc., a design software company, saw its shares plummet following a weaker-than-expected annual revenue outlook after its initial public offering (IPO) on July 31. The company reported its Q3 2022 earnings, which included a revenue growth forecast for the full year that failed to meet investor expectations. Figma's shares declined significantly, reaching their lowest price since the company's public debut. The weak sales growth outlook, despite the company's strong performance in the reported quarter, led to concerns among investors about Figma's future prospects. The company attributed the slower growth to macroeconomic factors and increased competition in the design software market. Analysts noted that Figma's results and outlook, while not meeting the market's high expectations, still demonstrate the company's ability to maintain steady growth and capture market share in the design software industry.