Figma Inc. (NYSE: FIG) shares dropped 19% after releasing second-quarter results, with revenue of $249.64 million, beating estimates. Adjusted earnings were 8 cents per share, missing estimates but up from 7 cents last year. On a GAAP basis, Figma reported break-even earnings, a significant improvement from last year’s loss.

Looking ahead, Figma forecasts optimistic revenue for fiscal 2025, expecting $1.021 billion to $1.025 billion, above the Street consensus. For Q3 2025, revenue is projected to range from $263 million to $265 million, surpassing expectations. Analysts updated ratings, with price targets adjusted following the earnings report.

Figma stock is trading 18.5% lower at $55.50. RBC Capital’s Rishi Jaluria maintained a Sector Perform rating but lowered the price forecast. Wells Fargo’s Michael Turrin reiterated an Equal-Weight rating with a reduced price forecast. Piper Sandler’s Brent Bracelin initiated coverage with an Overweight rating and a price forecast of $85.

Read more at Yahoo Finance: Why Is Figma Stock Plunging Thursday?