Figma, Inc. (NYSE:FIG) shares climbed in Friday’s premarket session after the design software company posted stronger-than-expected first-quarter results and lifted its full-year outlook.
The company delivered accelerating revenue growth, stronger enterprise demand and expanding adoption of its artificial intelligence tools, Benzinga reports.
AI Adoption Drives Growth
Figma posted first-quarter revenue of $333.4 million, topping analyst expectations of $313.2 million. Adjusted earnings reached 10 cents per share, exceeding Wall Street estimates of six cents per share.
Revenue increased 46% from last year’s quarter. The company generated $97.3 million in operating cash flow during the period. Adjusted free cash flow totaled $88.6 million.
In the quarterly conference call, CEO Dylan Field said AI continues to reshape software development workflows. He argued that design and creativity now matter more as coding becomes faster and cheaper.
Field said customers increasingly rely on Figma’s AI tools, including Figma Make, Weave and MCP integrations. He noted larger organizations expanded usage across engineering, product and creative teams.
Enterprise Customers Expand Spending
Figma reported a net dollar retention rate of 139% for large customers. That marked the company’s strongest retention level in more than two years.
The company also highlighted accelerating enterprise adoption. Paid customers spending over $100,000 annually grew 48% year-over-year during the quarter.
Management cited several large customer wins globally. One hyperscaler signed an enterprise agreement covering more than 35,000 paid seats.
Executives also pointed to strong momentum in India and Europe. A major Indian IT services provider signed Figma’s largest regional contract to date.
AI Monetization Gains Momentum
CFO Praveer Melwani said Figma began monetizing AI credit usage in March. He said early trends exceeded internal expectations.
Melwani noted many enterprise customers continued purchasing additional credits after exceeding usage thresholds.
He also said AI-focused customers expanded seat counts faster than non-AI users.
Figma now expects second-quarter revenue between $348 million and $350 million. The company raised its full-year revenue forecast to a range of $1.422 billion and $1.428 billion.
The company increased projected annual non-GAAP operating income to between $125 million and $135 million.
Figma Price Action: FIG shares are trading higher by 9.26% to $22.14 during premarket trading on Friday, according to Benzinga Pro data.
Photo by M.oo via Shutterstock.com
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