Aug 5 : Figma lifted its annual revenue forecast on Wednesday, encouraged by strong demand for its design software products, as the company's efforts to integrate AI in its tools helped attract and retain more users. Shares of the company, however, fell 10 per cent in extended trading after it kept its annual profit forecast intact, fueling fears over its AI investments denting profit margins.Known for its browser-based platform that allows design teams to collaborate in real time, Figma has leaned in hard on artificial intelligence, embedding the technology across its portfolio to draw in more users by making its tools more accessible and easier to use. Earlier this year, the company launched an AI agent directly built into the Figma canvas that can execute a variety of tasks such as making edits on large files, altering layouts and executing multi-step workflows.
Figma's AI efforts are paying off, with customers increasingly adopting its AI tools for tasks ranging from sketching and brainstorming to coding and shipping products.Figma now expects full-year revenue between $1.463 billion and $1.467 billion, the midpoint of which implies a 39 per cent growth rate, up from its prior forecast for 35 per cent growth and ahead of analysts' estimates for a 36.1 per cent increase, according to data compiled by LSEG. "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," Figma CFO Praveer Melwani told Reuters.The company reported revenue of $370.1 million for the second quarter ended June 30, up 48 per cent from a year earlier, beating estimates of $351.6 million.
