On Thursday, Figma Inc. (NYSE:FIG) shares jumped after the design software company posted its strongest quarterly earnings surprise as a public company, fueled by rapid paid customer growth, AI monetization and expanding enterprise adoption.
Figma's Q1 Earnings Showcase Broad-Based Growth Across AI
During its first-quarter earnings call, CFO Praveer Melwani said Figma's outperformance was driven by multiple business segments accelerating simultaneously rather than any single catalyst.
"The beat and the core makeup of the quarter for us came from all different directions," Melwani said, adding that "all the components" of seat expansion, product adoption, pricing, international momentum and AI monetization are now "kicking into high gear."
Figma reported paid customer count growth of 54% year over year, with larger enterprise customers continuing to expand full-seat subscriptions across teams.
The company also cited strong demand for newer offerings such as Make, Governance+ and advisory services.
AI Monetization And Premium Products Drive Growth
Melwani said Figma's evolving product portfolio has become significantly more compelling over the past year, encouraging users to upgrade to premium tiers for expanded access and advanced AI capabilities.
"It's early, but we are obviously seeing strong signal on AI monetization start to kick in," he said.
As prior pricing tailwinds begin to moderate, Figma is increasingly leaning on AI products, enterprise expansion and international growth to sustain momentum.
Dylan Field Prioritizes Long-Term AI Bets Over Margins
CEO Dylan Field said the company remains focused on balancing profitability with strategic long-term investments, particularly in emerging AI markets.
"We always are working to be extremely rigorous about our short-term and long-term thinking," Field said.
Management also signaled that while gross margins may fluctuate as investment increases, Figma's broader priority is maximizing long-term growth, market share and product ubiquity rather than protecting specific margin thresholds.
Figma Q1 Beat As Revenue Surges 46% And Guidance Raised
Figma, which develops collaborative web-based design software, reported first-quarter revenue of $333.44 million, surpassing estimates of $313.16 million.
The company posted adjusted earnings of 10 cents per share, ahead of expectations of 6 cents per share.
Revenue rose 46% year over year during the quarter. Figma also generated $97.3 million in net cash from operating activities and $88.6 million in adjusted free cash flow.
For the second quarter, Figma projects revenue between $348 million and $350 million, above analyst estimates of $326.98 million.
The company also raised its full-year revenue guidance to a range of $1.422 billion to $1.428 billion, up from a prior forecast of $1.366 billion to $1.374 billion and above consensus estimates of $1.362 billion.
Price Action: Figma shares closed Thursday up 6.86% at $20.24 and surged another 11.66% in after-hours trading to $22.60, according to Benzinga Pro.
According to Benzinga Edge Rankings, FIG shows a negative price trend across the short, medium and long-term time horizons.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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