Canva cut its annual revenue forecast after second-quarter revenue missed internal guidance.
Second-quarter revenue rose 25% year-over-year to $921.9 million.
The design software giant currently holds a valuation exceeding $40 billion.
Management attributed the miss to unexpectedly high costs for new generative AI features.
These expenses triggered product launch delays of up to six months.
Canva determined that scaling third-party frontier AI models is economically unsustainable.
CEO Melanie Perkins announced a deliberate slowdown in the AI suite rollout.
The company will rebuild its architecture to develop cost-effective in-house models.