Figma lifts annual revenue forecast as AI efforts drive solid demand

Figma has boosted its annual revenue forecast, citing robust demand for its design software and the successful integration of artificial intelligence into its tools. The company's AI efforts have reportedly attracted and retained a growing user base.

Despite the positive revenue outlook, Figma's stock experienced a 10% decline in after-hours trading. This dip followed the company's decision to maintain its annual profit forecast, sparking investor concerns that significant investments in AI could impact profit margins.

Figma, known for its collaborative browser-based platform, has strategically embedded AI across its product portfolio. This includes launching an AI agent directly within its canvas, capable of executing tasks like editing large files, adjusting layouts, and managing multi-step workflows. The company highlighted that customers are increasingly adopting these AI tools for various stages of product development, from initial sketching to final deployment.

For the full year, Figma now anticipates revenue between $1.463 billion and $1.467 billion, representing a projected 39% growth rate. This upward revision surpasses its previous forecast of 35% growth and exceeds analysts' expectations of 36.1%. In the second quarter ended June 30, Figma reported revenue of $370.1 million, a 48% increase from the previous year, outperforming analyst estimates of $351.6 million.

Figma's CFO, Praveer Melwani, expressed optimism about the monetization of their AI offerings. "We are seeing real traction on AI monetization," Melwani told Reuters. "This starts to show up in our dollar retention rate, in our gross profit dollars, and it's all because Figma is offering something unique."

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We are seeing real traction on AI monetization ... This starts to show up in our dollar retention rate, in our gross profit dollars, and it's all because Figma is offering something unique.