The quarterly results of three software companies showed better figures than expected, but investors were not impressed. Figma, PagerDuty, and GitLab presented solid growth and positive developments, but their shares plunged after trading hours due to disappointing prospects and concerns about growth expectations.
Figma presented its figures for the first time since its IPO in July. Revenue in the second quarter came in at $249.6 million, just above analysts’ expectations of $248.8 million and 41 percent higher than a year earlier. The company posted a small net profit of $846,000, compared to a loss of $828 million in the same period last year. Adjusted operating profit was $11.5 million.
For the third quarter, Figma expects revenue between $263 million and $265 million, representing approximately 33 percent growth. For the full year 2025, the company is targeting just over $1.02 billion in revenue and $88 million to $98 million in adjusted operating profit.
Despite the positive figures and outlook, the share price fell by 14 percent after trading hours. This was partly due to concerns about growth and the expiring lock-up periods for employee shares. After the IPO, it was agreed that 25 percent of those shares would become freely tradable at the beginning of September, while 35 percent would not be released until August 2026.
CEO Dylan Field emphasized that AI primarily complements the role of designers. He added that new tools such as Figma Make and Figma Sites should accelerate the creative workflow. CFO Praveer Melwani indicated that customers will be able to purchase additional AI credits in the future, but that the costs are already included in the business model.
Figma ended the quarter with 1,119 customers paying more than $100,000 per year, up from 1,031 in the previous quarter. The company also has $1.6 billion in cash and investments.
PagerDuty disappoints with revenue and outlook, share price falls
PagerDuty exceeded earnings expectations in the second quarter of fiscal 2026. However, the company fell short on revenue. And it disappointed with its outlook for the current year. The stock fell more than 3 percent in after-hours trading.
The company reported adjusted earnings of 30 cents per share, higher than the 20 cents analysts had expected and more than the 21 cents in the same period last year. Revenue rose 6 percent to $123.4 million, just below the consensus of $123.7 million. Annual recurring revenue came in at $499 million (+5 percent), with a net retention rate of 102 percent. The number of customers grew to 15,322, of which 868 contribute more than $100,000 per year.
CEO Jennifer Tejada emphasized that PagerDuty achieved important milestones, including GAAP profitability, international growth, and more new customers than in all of last year. She stated that AI creates both opportunities and complexity, and that PagerDuty is well positioned as a real-time operations platform for enterprises and AI-native companies.
However, the disappointing outlook weighed more heavily. For the third quarter, PagerDuty expects revenue between $124 million and $126 million, with earnings of 24 to 25 cents per share. For the entire 2026 fiscal year, revenue is now expected to be between $493 million and $497 million, lower than the previous forecast of $500 million to $507 million and also below analysts’ expectations of $503 million.
GitLab exceeds expectations, but share price falls
GitLab posted strong results in the second quarter of fiscal 2026, with revenue growth of 29 percent to $236 million and adjusted earnings per share of 24 cents, both above expectations. Analysts had expected $227 million and 16 cents, respectively.
The number of customers with more than $5,000 in recurring annual revenue increased by 11 percent to 10,338, while the number of large customers with more than $100,000 in revenue increased by 25 percent to 1,344. The net retention rate remained high at 121 percent.
The company introduced the GitLab Duo Agent Platform in public beta, an AI orchestration platform that supports collaboration between developers and AI. A strategic partnership with AWS was also announced to make GitLab Dedicated more widely available to large enterprises.
Despite the strong figures, investors reacted cautiously. The share price fell by more than 6 percent after trading hours, mainly due to a cautious revenue forecast for the third quarter.
For the full fiscal year, GitLab is targeting revenue of $936 million to $942 million and adjusted earnings per share of 82 to 83 cents.