plunges – LSD News https://lsd.hu Updates You With The Latest News 24/7 Wed, 13 May 2026 10:39:48 +0000 en-US hourly 1 https://lsd.hu/wp-content/uploads/2026/02/cropped-lsd-32x32.png plunges – LSD News https://lsd.hu 32 32 Alibaba’s core profit plunges 84% even as AI and cloud growth accelerate https://lsd.hu/alibabas-core-profit-plunges-84-even-as-ai-and-cloud-growth-accelerate/ Wed, 13 May 2026 10:39:48 +0000 https://lsd.hu/alibabas-core-profit-plunges-84-even-as-ai-and-cloud-growth-accelerate/

Jaap Arriens | Nurphoto | Getty Images

Alibaba on Wednesday said its core profitability plunged in the March quarter amid heavy investments in tech and e-commerce.

The Chinese tech giant said its adjusted earnings before interest, taxes, and amortization (EBITA), a measure of the company’s underlying profitability, came in at 5.1 billion Chinese yuan ($750.9 million).

This financial metric strips out one-time gains or losses to focus on a company’s core business.

Alibaba’s U.S.-listed shares were initially higher in premarket trade before turning negative. They were last seen trading down 3.4%.

The tech giant has been investing heavily in semiconductors for AI, data centers, and the development of its own family of models under the brand of Qwen. This has paid off in its cloud computing segment.

While cloud has been a bright spot for Alibaba, driven by AI demand in China, investors have been grappling with the company’s continued investments into so-called quick or instant commerce. This is a shopping service that allows users to get good with super-fast delivery speeds under an hour, and it has become somewhat of a battleground for China’s e-commerce giants.

Adjusted EBITA in Alibaba’s China e-commerce group dropped 40% year-on-year in the March quarter on the back of these investments, even as customer management revenue — its single-largest contributor — grew 1%.

However, Alibaba is seeing strong growth from those investments with quick commerce revenue up 57% year-on-year.

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]]> Nintendo plunges 8% after Switch 2 price hike and weak sales forecast https://lsd.hu/nintendo-plunges-8-after-switch-2-price-hike-and-weak-sales-forecast/ Tue, 12 May 2026 06:33:47 +0000 https://lsd.hu/nintendo-plunges-8-after-switch-2-price-hike-and-weak-sales-forecast/

A Super Mario character is pictured at a Nintendo display ahead of the launch of the company’s Switch 2 console, at an electronics store in Nagoya, Japan, June 2, 2025.

Richard A. Brooks | Afp | Getty Images

Nintendo shares plunged on Monday after the gaming giant warned that sales of its flagship Switch 2 console would fall this fiscal year and it announced a price hike for the device due to rising memory costs.

Shares of Nintendo closed 8.4% lower in Tokyo, Japan to 7,020 yen (US$44.64), the lowest since August 2024. The stock has fallen 34% this year.

On Friday, Nintendo announced price hikes for its Switch 2 console in markets across the world. An unprecedented surge in the price of memory chips, driven by the AI infrastructure boom, has increased the cost of producing the device.

Nintendo said that it forecasts 16.5 million unit sales of the Switch 2 in the current fiscal year, which ends in March 2027, down from 19.86 million since its launch last June. The predicted fall in sales of the console — which is less than a year old — is raising concerns among investors.

“Nintendo is predicting Switch 2 hardware sales to go down this fiscal year — instead of going up as it usually is the case with new consoles,” Serkan Toto, CEO of Kantan Games, told CNBC on Monday.

“The biggest factor is of course the price hike that Nintendo thinks will lead to softer demand.”

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Nintendo shares since August 2024.

‘Lowballing’ guidance

Nintendo has a reputation for issuing conservative guidance. Toto said the latest numbers are likely no different.

“I believe that Nintendo is, as usual, lowballing because users will get used to the new price of the console over time,” Toto said.

Kazunori Ito, director at Morningstar, said in a note on Sunday that Nintendo’s guidance was “overly conservative.”

“We believe the console price hike was inevitable given the prolonged inflation in memory costs. While the weak shipment guidance likely reflects undue caution on demand, the hike itself was kept modest, and we expect shipments to hold up better than the company anticipates,” Ito said.

The price of the Switch 2 was raised by $50 in the U.S., and by 10,000 Japanese yen (US$64) in Japan.

Ito said he expects Switch 2 sales to hit 19 million units in the current fiscal year compared to Nintendo’s forecast of 16.5 million units.

“We view Nintendo’s shares as undervalued,” Ito said. “The market appears overly focused on near-term headwinds and conservative guidance, while underappreciating the long-term earnings growth from over 100 million Switch users migrating to the new platform and increasing game purchases.”

Game sales concerns

Another metric the market watched closely was Nintendo’s software or game sales, because blockbuster titles can help drive sales of hardware.

The Japanese gaming giant said it expects software sales across the original Switch and Switch 2 to total 165 million units in the fiscal year ending March 2027. That would mark a roughly 11% year-on-year fall.

“The year-on-year decline in game shipment guidance risks signaling that Nintendo lacks confidence in its pipeline,” Morningstar’s Ito said.

“However, as user engagement typically accelerates in the second year of a console cycle, we view this as too pessimistic,” he said, adding that Morningstar forecasts software sales of 205 million units, above Nintendo’s own forecast.

Nintendo has had some early game successes with the Switch 2, including “Mario Kart World” and “Pokémon Pokopia,” which became a surprise viral hit and sold over 4 million units in the five weeks after its release in March.

Why Nintendo stopped chasing power — and changed the game

However, investors are waiting to hear more on Nintendo’s gaming pipeline, and in particular on any upcoming games involving some of its most iconic characters such as Mario and Zelda. Investors are watching closely for when the company will announce a Nintendo Direct event, which is where it typically lays out its upcoming major hits.

“We should get a new Nintendo Direct presentation laying out the software 2026 lineup as soon as next month,” Toto said.

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]]> Nifty Bank plunges 3% as HDFC Bank crashes: Key levels to watch out for https://lsd.hu/nifty-bank-plunges-3-as-hdfc-bank-crashes-key-levels-to-watch-out-for/ Thu, 19 Mar 2026 06:56:55 +0000 https://lsd.hu/nifty-bank-plunges-3-as-hdfc-bank-crashes-key-levels-to-watch-out-for/

Heavyweight HDFC Bank shares crashed around 9% on Thursday, dragging down the Nifty Bank index as bearish sentiment spilled over to other banking stocks such as Axis Bank and ICICI Bank. The banking index also breached key support levels after three days of gains.

The Nifty Bank index declined more than 3% to hit an intraday low of 53,437 in the morning before recovering some losses. At 10:30 am, the index was down 2.8% at 53,774, as HDFC Bank shares recovered slightly to trade nearly 5% lower.

Shares of IDFC First Bank, AU Small Finance Bank, and Axis Bank declined around 3%, while IndusInd Bank, Kotak Mahindra Bank, Bank of Baroda, Punjab National Bank (PNB), Union Bank of India, Federal Bank, Yes Bank, ICICI Bank, Canara Bank, and State Bank of India (SBI) fell around 2% each.

The index has erased all the gains recorded during the three-day rally earlier this week in just one session so far.

Nifty Bank breaches support levels

Bajaj Broking had said that a breach below Wednesday’s low of 54,689 will signal a pause in the pullback, leading to some consolidation in the range of 53,300-55,600 in the coming sessions. The index today has already breached the support level and is heading towards the lower end of the range suggested by the domestic brokerage. “Volatility is expected to remain elevated in the near term, driven by uncertain global cues and rising geopolitical tensions, which continue to weigh on overall market sentiment,” it said.

Vatsal Bhuva, Technical Analyst at LKP Securities, had placed the immediate support at 54,600, which the index has comfortably breached. The analyst saw resistance near 55,900.

Notably, apart from HDFC Bank’s sharp decline, the Federal Reserve’s hawkish commentary and decision to keep rates unchanged also remain a key factor. US Federal Reserve Chair Jerome Powell on Wednesday announced the American central bank’s decision to keep policy rates unchanged, as inflation is not coming down as much as they had hoped amid rising geopolitical tensions in the Middle East and President Donald Trump’s tariff flip-flops. Investors now increasingly eye RBI’s upcoming meeting in April, which can bear a strong impact on Indian lenders.

Motilal Oswal Financial Services said that its Q4 FY26 channel check paints a nuanced picture of a credit cycle, transitioning from a phase of stress normalization, mainly in unsecured segments, to a selective, execution-led recovery. “Geopolitical disturbances add a tail risk layer to export-linked credits in Gujarat and Maharashtra over the next quarter and have to be monitored. We continue to favor lenders with strong execution, liability franchise depth, and disciplined underwriting,” it said.

“ICICI Bank and HDFC Bank remain our top private sector picks, offering compounding growth with robust asset quality. SBI is our preferred PSU pick for its all-round execution and healthy growth trajectory. AUBANK remains well-positioned as it approaches the Universal Bank transition with an outlook to deliver industry-leading growth along with improved profitability,” it added.

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)

]]> Market cap of 9 of top-10 most valued firms plunges by Rs 2.51 lakh cr; RIL biggest laggard https://lsd.hu/market-cap-of-9-of-top-10-most-valued-firms-plunges-by-rs-2-51-lakh-cr-ril-biggest-laggard/ Sun, 25 Jan 2026 08:57:08 +0000 https://lsd.hu/market-cap-of-9-of-top-10-most-valued-firms-plunges-by-rs-2-51-lakh-cr-ril-biggest-laggard/

The combined market valuation of nine of the top-10 most valued firms slumped by Rs 2.51 lakh crore last week, with Reliance Industries taking the biggest hit, in line with a weak trend in equities.

Last week, the BSE benchmark Sensex tanked 2,032.65 points or 2.43 per cent.

“Markets witnessed a sharp sell-off during the week, with bears firmly in control. Weak global cues, persistent FII outflows, a depreciating rupee, and subdued corporate earnings kept pressure elevated throughout the week,” Ajit Mishra – SVP, Research, Religare Broking Ltd, said.

The combined market valuation of nine of the top-10 most valued firms, including Reliance Industries, HDFC Bank, ICICI Bank and Bharti Airtel, plunged by Rs 2,51,711.6 crore.

The market valuation of Reliance Industries tumbled Rs 96,960.17 crore to Rs 18,75,533.04 crore.

ICICI Bank’s valuation eroded by Rs 48,644.99 crore to Rs 9,60,825.29 crore.

The valuation of HDFC Bank tanked Rs 22,923.02 crore to Rs 14,09,611.89 crore and that of Bharti Airtel diminished by Rs 17,533.97 crore to Rs 11,32,010.46 crore.Market capitalisation (mcap) of Tata Consultancy Services (TCS) dropped by Rs 16,588.93 crore to Rs 11,43,623.19 crore and that of Larsen & Toubro tanked Rs 15,248.32 crore to Rs 5,15,161.91 crore.

Mcap of Bajaj Finance declined by Rs 14,093.93 crore to Rs 5,77,353.23 crore and that of State Bank of India edged lower by Rs 11,907.5 crore to Rs 9,50,199.77 crore.

Market valuation of Infosys dived Rs 7,810.77 crore to Rs 6,94,078.82 crore.

However, mcap of Hindustan Unilever climbed Rs 12,311.86 crore to Rs 5,66,733.16 crore.

Reliance Industries remained the most valued firm, followed by HDFC Bank, TCS, Bharti Airtel, ICICI Bank, State Bank of India, Infosys, Bajaj Finance, Hindustan Unilever and Larsen & Toubro.

“The correction was fuelled by a confluence of factors: escalating geopolitical tensions, aggressive FII selling, and panic regarding the Rupee’s weakness,” Santosh Meena, Head of Research at Swastika Investmart Ltd, said on markets sell-off last week.

]]> Bath & Body Works stock plunges as retailer misses third-quarter earnings, announces turnaround plan https://lsd.hu/bath-body-works-stock-plunges-as-retailer-misses-third-quarter-earnings-announces-turnaround-plan/ Thu, 20 Nov 2025 17:34:41 +0000 https://lsd.hu/bath-body-works-stock-plunges-as-retailer-misses-third-quarter-earnings-announces-turnaround-plan/

Sale signs inside the Bath and Body Works store in Edmonton. On Thursday, January 6, 2022, in Edmonton, Alberta, Canada.

Artur Widak | Nurphoto | Getty Images

Bath & Body Works Inc. stock plunged Thursday after the company reported “disappointing” third-quarter earnings and slashed its full-year outlook, citing “macro consumer pressures.”

Shares sank nearly 25% on Thursday and hit a new 52-week low. The stock has plunged more than 50% this year.

CEO Daniel Heaf announced a turnaround plan for the company, with expectations of $250 million in cost savings by 2027, aimed at attracting younger consumers and recentering the company’s focus to its core products.

“Our third quarter results were below expectations, and we are lowering our outlook for the remainder of the year reflecting current business trends and continuation of recent macro consumer pressures,” Heaf said in a statement. “While this is disappointing, we are acting swiftly and decisively to position the business for sustainable, long-term growth.”

Here’s how the company performed in the third quarter, compared with Wall Street’s estimates, according to a survey of analysts by LSEG:

  • Earnings per share: 35 cents adjusted vs. 39 cents expected
  • Revenue: $1.59 billion vs. $1.63 billion expected

Bath & Body reported net income of $77 million, or 37 cents per share, for the quarter ended Nov. 1 compared with $106 million, or 49 cents a share, last year. Adjusting for one-time items including pretax gains, the company reported earnings of 35 cents a share.

The company also slashed its yearly guidance due to “current business trends.” It also expects fourth-quarter revenue to be down in the high single digits compared with Wall Street estimates of an increase of 1.5%. The guidance, pulling on “recent negative macro consumer sentiment” and tariff impacts, also revised net sales guidance for the full year to low single digits.

Heaf said the company is reorienting its strategy to focus once again on core products like body care, fragrances and soaps. The plan, called the “Consumer First Formula,” includes four strategic priorities: creating disruptive and innovative products, reigniting the brand, winning in the marketplace and operating with speed and efficiency.

The company had previously toyed with introducing other products like laundry detergent and shampoo, but Heaf said on a call with analysts Thursday that its efforts have not delivered promising results or attracted younger consumers.

Heaf said the company will be exiting certain categories like haircare and men’s grooming as it refocuses its priorities.

“Over the years, consumers have evolved. They seek greater efficacy, ingredient-led products, modern packaging, emotive storytelling and elevated multi-channel experiences,” Heaf said. “Our competitors have risen to meet those needs. We have not.”

Heaf said on the call that the company is also recruiting influencers to “ignite social buzz” around the company’s products in an attempt to garner attention from new consumers.

Bath & Body Works also plans to revamp its app and website to increase engagement and aid in product discovery. The company will also lower its free shipping threshold in early 2026.

]]> Awfis Q2 Results: Profit plunges 59% to Rs 16 crore on high base effect https://lsd.hu/awfis-q2-results-profit-plunges-59-to-rs-16-crore-on-high-base-effect/ Tue, 11 Nov 2025 15:04:32 +0000 https://www.lsd.hu/awfis-q2-results-profit-plunges-59-to-rs-16-crore-on-high-base-effect/
msid 125251793,imgsize 25636

Realty firm Awfis Space Solutions Ltd on Tuesday reported a 59 per cent decline in its consolidated profit to Rs 15.97 crore in the latest September quarter on a high base effect.

Its net profit stood at Rs 38.67 crore in the year-ago period, helped by an exceptional gain of Rs 24 crore.

Total income, however, grew to Rs 392.97 crore in the July-September quarter of this fiscal from Rs 301.95 crore in the corresponding period of the preceding year, according to a regulatory filing.

Awfis, which has recently been listed on stock exchanges, provides flexible managed office spaces to corporates of all sizes. It takes office space from property owners to establish centres and then sub-lease the workspaces to enterprises.

As of September 30, 2025, the company has a portfolio of 247 centres and 1,70,000 seats across 8.4 million sq ft area (including spaces under fit-out and with signed letters of intent).

]]> Taser maker Axon plunges 11% after earnings fall short due to tariff hit https://lsd.hu/taser-maker-axon-plunges-11-after-earnings-fall-short-due-to-tariff-hit/ Wed, 05 Nov 2025 17:33:00 +0000 https://www.lsd.hu/taser-maker-axon-plunges-11-after-earnings-fall-short-due-to-tariff-hit/

Rick Smith, CEO of Axon Enterprises.

Adam Jeffery | CNBC

Axon Enterprise‘s stock plummeted 11% after the Taser maker missed Wall Street’s third-quarter profit expectations as it grapples with tariff constraints.

Adjusted earnings totaled $1.17 per share adj., falling short of a $1.52 per share forecast from LSEG. Adjusted gross margins fell 50 basis points from a year ago to 62.7%, which Axon attributed to tariff impacts.

Axon’s connected devices business, which includes its Taser and counter drone equipment, felt the biggest pinch during the first full quarter with tariffs. The business segment accounted for over $405 million in revenues, increasing 24% year over year.

“As long as tariffs stay in place, I view that as sort of a one-time adjustment,” finance chief Brittany Bagley said during the earnings call. “Now that’s baked into the gross margins.”

Bagley expects growth in the company’s software business to eventually offset margin losses long-term. Software and services revenues jumped 41% from a year ago to $305 million.

Total revenues grew 31% from a year ago to $711 million, topping the $704 million expected by analysts polled by LSEG. The U.S. accounted for 84% of sales.

The Arizona-based company reported a net loss of $2.2 million, a loss of 3 cents per share, versus net income of $67 million, or 86 cents per share in the year-ago period.

Axon lifted its full-year revenue outlook to $2.74 billion, from between $2.65 billion and $2.73 billion. FactSet analysts expected $2.72 billion at the midpoint.

The company expects revenues between $750 million and $755 million during the fourth quarter, which was above LSEG analyst expectations of $746 million.

Along with the results, Axon said it is acquiring Carbyne in a deal that values the emergency communications platform at $625 million. The deal is expected to close next year in the first quarter.

Axon shares have jumped more than 40% over the last year as demand for its security tools accelerates. Shares more than doubled in 2024.

“We are building an elite business that is still nowhere near its ultimate potential, and we are doing it with a team that is rapidly bought into the mission,” said Axon’s president Josh Isner on the earnings call.

We're in amazing position to take advantage of the AI era, says Axon CEO Rick Smith

]]> Motilal Oswal Q2 Results: Profit plunges 68% YoY to Rs 362 crore, revenue down 35% https://lsd.hu/motilal-oswal-q2-results-profit-plunges-68-yoy-to-rs-362-crore-revenue-down-35/ Thu, 30 Oct 2025 15:00:46 +0000 https://www.lsd.hu/motilal-oswal-q2-results-profit-plunges-68-yoy-to-rs-362-crore-revenue-down-35/

Motilal Oswal Financial Services Ltd (MOFSL) reported 68% year-on-year (YoY) decline in its consolidated net profit at Rs 362 crore. However, the company’s operating profit rose to Rs 554 crore, while its half-year profit for FY26 stood at Rs 1,088 crore, up 11% year-on-year.

Revenue from operations fell 35% YoY to Rs 1,849 crore.

Asset management healthy

The asset management business continued to be MOFSL’s biggest growth driver, with PAT up 46% year-on-year to Rs 180 crore.
Total assets under management (AUM) rose 46% to Rs 1.77 lakh crore, led by a robust 57% rise in mutual fund AUM. The company’s net sales market share stood at 8.2%, while SIP inflows surged 2.2 times YoY to Rs 4,172 crore, underscoring retail investor participation.

MOFSL also completed the first close of its IBEF V private equity fund at Rs 6,900 crore and is planning to close the fund at twice the size of its previous raise, signalling continued investor appetite for its alternative investment products.

Private wealth scales up

The private wealth management business delivered another strong quarter, with PAT up 23% YoY to Rs 110 crore. Net sales tripled to Rs 7,358 crore, driven by robust client acquisition and rising productivity. The business’s AUM stood at Rs 1.87 lakh crore, marking a 19% year-on-year increase.

Retail broking sees softer quarter

In contrast, the retail broking and distribution segment saw a moderation in profitability, with PAT down 24% YoY to Rs 170 crore.

However, operational metrics remained resilient — the company’s cash volume market share stood at 7.1%, and its F&O premium market share at 8.7%, taking its overall blended ADTO market share to 8%.

The distribution business continued its steady growth, with net inflows rising 29% to Rs 3,079 crore, while the distribution book grew at a 34% CAGR since FY21, reaching Rs 40,544 crore as of September 2025.

Capital markets and housing finance shine

The capital markets business posted a 24% YoY growth in PAT to Rs 90 crore, driven by healthy deal activity. Meanwhile, the housing finance arm recorded a 27% YoY rise in PAT to Rs 34 crore, with disbursements up 48% to Rs 544 crore and AUM up 24% to Rs 5,236 crore, reflecting strong traction in affordable housing loans.

]]> StubHub’s stock plunges 10% in third day on NYSE as post-IPO slump deepens https://lsd.hu/stubhubs-stock-plunges-10-in-third-day-on-nyse-as-post-ipo-slump-deepens/ Sat, 20 Sep 2025 08:19:46 +0000 https://www.lsd.hu/stubhubs-stock-plunges-10-in-third-day-on-nyse-as-post-ipo-slump-deepens/

Ticket reseller StubHub signage on display at the New York Stock Exchange for the company’s IPO on Sept. 17, 2025.

NYSE

After a long wait to get public, StubHub has had a rough start to life on the New York Stock Exchange.

Shares of the online ticket vendor dropped 10% on Friday, falling for a third straight day since debuting on Wednesday. At $18.46, the stock is now down 21% from its IPO price of $23.50.

StubHub, trading under ticker symbol “STUB,” has lagged behind fellow market newcomers like online lender Klarna, design software company Figma and stablecoin issuer Circle, which delivered early returns for investors following their recent IPOs. Shares of cybersecurity firm Netskope also rose 10% on Friday in their second trading day, after an initial pop on Thursday.

StubHub had been trying to go public for the past several years, but delayed its debut twice. The most recent stall came in April after President Donald Trump’s announcement of sweeping tariffs roiled markets. The company filed an updated prospectus in August, effectively restarting the process to go public, and has since seen its market cap slip to about $6.8 billion from $8.6 billion at its IPO.

Founded in 2000, StubHub primarily generates revenue from connecting buyers with ticket resellers. In the first quarter, revenue rose 10% from a year earlier to $397.6 million. The company’s net loss widened to $35.9 million from $29.7 million a year ago.

StubHub CEO Eric Baker told CNBC on Wednesday that the company expects recently introduced federal regulations around transparent ticket pricing to cause a “one-time” hit to its financial results.

Regulators are zeroing in on online ticket sellers over their pricing mechanisms and whether the companies are doing enough to keep automated purchasing bots in check. The Federal Trade Commission on Thursday sued StubHub rival Live Nation Entertainment, the parent company of Ticketmaster, accusing it of illegal resale tactics.

While StubHub has failed to excite Wall Street, its struggles haven’t seeped into other deals as the tech IPO market continues to show signs of a resurgence after an extended dry spell. Amazon reseller Pattern Group saw its stock rise 12% on Friday, though shares initially slipped 6%.

WATCH: StubHub CEO on company’s IPO

StubHub CEO: FTC change to all-in, transparent ticket pricing has leveled the playing field

]]> Figma’s stock plunges after company’s first earnings report since IPO https://lsd.hu/figmas-stock-plunges-after-companys-first-earnings-report-since-ipo/ Wed, 03 Sep 2025 23:31:20 +0000 https://www.lsd.hu/figmas-stock-plunges-after-companys-first-earnings-report-since-ipo/

Figma shares plunged 14% in extended trading on Wednesday after the design software company reported results for the first time since its initial public offering in July.

Here’s how the company did in comparison with LSEG consensus:

  • Earnings per share: Breakeven
  • Revenue: $249.6 million vs. $248.8 million expected

Revenue increased 41% year over year in the second quarter from $177.2 million a year earlier, Figma said in a statement. The company provided a preliminary estimate of $247 million to $250 million in a July regulatory filing. CNBC isn’t including a profit estimate because it’s Figma’s first earnings report.

Net income totaled $846,000, compared with a loss of $827.9 million in the second quarter of 2024. The company’s adjusted operating income came to $11.5 million, after Figma provided a prior estimate of $9 million to $12 million.

For the third quarter, Figma forecast revenue of between $263 million and $265 million, which would represent about 33% growth at the middle of the range. The LSEG consensus was $256.8 million.

The company sees between $88 million and $98 million in adjusted operating income for the full year and a little more than $1.02 billion in revenue. The revenue range implies about 37% growth and is above the $1.01 billion LSEG consensus.

Last year, Figma picked up more revenue from customers as it sold them access to Dev Mode, which helps software developers to implement designs that designers create in the company’s software. That momentum is putting a damper on revenue growth for the third quarter, Figma co-founder and CEO Dylan Field said in an interview.

In the second quarter, Figma announced Figma Make, which uses artificial intelligence to compose app and website designs based on a user’s descriptions, and Figma Sites, which turns designs into working websites. The company also acquired vector graphics startup Modyfi and content management system startup Payload.

Figma has yet to start fully charging for artificial intelligence products, but says it has built the underlying costs into its model. The company is not providing a forecast for third-quarter adjusted operating income.

“We plan on letting customers know that they have the opportunity to purchase additional AI credits in the future,” Praveer Melwani, Figma’s finance chief, said on a conference call with analysts.

Several software vendors have faced pressure this year due to concerns surrounding AI and whether it will displace business. Field told CNBC that he’s not seeing that play out internally and that, if anything, the role of designers will only become more critical.

“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,” Field said in the interview. He acknowledged Figma has been adopting so-called vibe-coding tools for AI-driven software development.

Figma reported a 129% net retention rate, a reflection of expansion with existing customers. The figure was down from 132% in the first quarter.

Following its IPO, Figma expects a share sale lockup to expire for 25% of some employees’ stock after market close on Sept. 4.

Investors holding just over half of Figma’s outstanding Class A stock have agreed to an extended lockup, with the final 35% of their shares expiring in August 2026.

Field said he wanted to provide clarity for investors.

“That’s something that I think is valuable information,” Field said in the interview.

On Wednesday, the company’s stock closed at $68.13. The company priced shares in its IPO at $33, and saw the stock pop to $115.50 in its debut.

Figma had 1,119 customers paying more than $100,000 in annualized revenue, up from 1,031 in the March quarter, according to a filing.

The company had about $1.6 billion in cash, cash equivalents and marketable securities on June 30, with $90.8 million in a Bitcoin exchange traded fund, the filing indicated.

“We’re not trying to be Michael Saylor here,” Field said in the interview, referring to the co-founder and executive chairman of Strategy. “This is not, like, a Bitcoin holding company. It’s a design company, but I think there’s a place for it in the balance sheet and as part of a diversified treasury strategy.”

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