Figma Defies AI Fears with Strong Earnings, Outlines New Monetization Path

Figma's stock surged 16% in after-hours trading Wednesday, propelled by quarterly results and a future revenue outlook that surpassed analyst expectations. The design software firm reported adjusted earnings of 8 cents per share on revenue of $303.8 million, topping forecasts. While the company posted a net loss for the quarter, its revenue grew 40% year-over-year.

More significantly, Figma projected first-quarter revenue between $315 million and $317 million, well above the $292 million analysts anticipated. For the full 2026 fiscal year, the company forecast revenue of up to $1.374 billion, suggesting a 30% growth rate.

This guidance comes as investor skepticism mounts over how established software companies will fare amid the rise of generative AI. Figma's stock had declined roughly 35% this year prior to the earnings report. CEO Dylan Field addressed these concerns directly, stating, "If you look at software, not only is it not going away. There's going to be way more of it than ever before." He acknowledged, however, that the market is "potentially increasingly competitive."

Figma's strategy centers on its AI tool, Figma Make, which allows users to generate app prototypes from text prompts. The company reported that over half of its largest customers used the tool weekly last quarter. Crucially, Figma optimized its infrastructure to lower the service's operating costs, maintaining an 86% adjusted gross margin even as weekly users of Figma Make grew 70%.

The firm now moves to monetize this adoption. Starting in March, it will enforce monthly AI credit limits, requiring clients to pay based on usage or subscribe to credit packages. Figma also announced a partnership with ServiceNow to convert designs into applications for enterprise clients.

RBC analyst Rishi Jaluria noted the results indicated "increased adoption of AI workflows across Figma's platform." The company's detailed plans for converting that adoption into sustained revenue growth appear to have reassured the market, at least for now.

Source: CNBC