Figma Q1 Flips The Script On AI

Figma’s first-quarter report pushed back on the biggest AI fear around design software — at least for now, the technology is making the platform look stronger, not obsolete. The company reported revenue of $333.4 million, up 46% from a year earlier, while non-GAAP net income came in at $56.5 million, or $0.10 per diluted share. Shares jumped about 13% Friday after the release, as Wall Street found a newly public software company turning AI anxiety into faster growth, deeper customer adoption, and a bigger full-year outlook.

Figma’s growing roster of committed accounts helped explain the rally. Net dollar retention reached 139%, its highest level in more than two years, while paid customers grew 54% to about 690,000. Larger accounts also kept expanding, with customers generating more than $10,000 in annual recurring revenue rising 37% to 15,218 and customers above $100,000 climbing 48% to 1,525. The takeaway was not just that more teams are using Figma, but that more of their work is getting pulled into its orbit.

The quarter’s real stress test was whether AI was weakening demand for design software. Figma made the technology look like a tailwind instead of a wrecking ball, saying roughly 60% of paid customers with more than $100,000 in annual recurring revenue used Figma Make weekly during the quarter, up from over 50% in the prior quarter. The company also pointed to early traction from AI credit monetization, which began in March, with more than 75% of enterprise and organizational users who had exceeded AI credit limits continuing to use AI credits in April. Figma’s pitch is that AI will make the platform more valuable to daily workflows, not replace the creative work those workflows produce.

The quarter got an extra spark from guidance, where Figma lifted the bar for the rest of the year. The company guided for second-quarter revenue of $348 million to $350 million and raised its full-year revenue forecast to $1.422 billion to $1.428 billion, a $55 million increase from its previous range. It also lifted its full-year non-GAAP operating income outlook to $125 million to $135 million, even as it keeps investing behind AI products and expansion. The quarter landed so well because Figma showed investors a version of the business where the robot does not steal the designer’s chair — it pulls up a seat at the table.

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