Figma Inc (NYSE:FIG) shares rallied in early trading on Friday, after the company on Thursday reported upbeat first-quarter results.
• Figma stock is surging to new heights today. What’s driving FIG stock higher?
While the company reported results that were "highly encouraging across the board," there is uncertainty around whether its AI-powered tool, Make, can become "a material and durable growth driver," according to BTIG.
The Figma Analyst: Analyst Nick Altmann reiterated a Neutral rating on the stock.
The Figma Thesis: The company delivered the second consecutive quarter of accelerating growth, with 46% growth coming in higher than the previous quarter's 40% and significantly beating the consensus estimate of 39%, Altmann said in the note.
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Management indicated that drivers of the quarter's results were broad-based, including seat expansion, retention, enterprise adoption, new user growth and AI credit monetization, he added.
NRR (net revenue retention) reached 139% in the quarter, the highest level in two years, the analyst stated. He further noted that growth in customers contributing more than $10,000 in ARR (annual recurring revenues) accelerated around 500 basis points (bps) to 37% year-on-year, and customers with more than $100,000 ARR accelerated 200 bps to 48%.
Figma's paid customer count grew 54% year-on-year to around 690,000, which is an "underappreciated" figure, as it highlights the company's success in converting free customers to paid subscribers, the analyst said.
What was more impressive was management's 2026 outlook, which was raised to 35% from their prior projection of 30%, Altmann stated. He added, however, that there is uncertainty around the extent of upside for the rest of the year.
The monetization of Figma Make, the company's AI tool that allows users to turn text prompts into interactive prototypes and apps, is tracking ahead of expectations, the analyst said. However, this is driven by recent pricing and packaging changes, and "we look for better evidence around the magnitude and durability of AI revenue," he further wrote.
FIG Price Action: Shares of Figma had risen by 11.56% to $22.58 at the time of publication on Friday.
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