Figma stock jumps 15% as company sees AI monetization accelerating growth

Figma experienced a remarkable 15% surge in its stock price during after-hours trading on Wednesday, following the release of impressive quarterly results that exceeded Wall Street expectations. The design software company reported a staggering 40% year-over-year revenue growth for the fourth quarter. Despite this growth, Figma recorded a net loss of $226.6 million, equating to 44 cents per share. This contrasts sharply with the previous year's fourth quarter, where the company posted a net income of $33.1 million, or 15 cents per share. Looking ahead, management has forecasted first-quarter revenues between $315 million and $317 million, indicating a robust 38% growth, significantly surpassing analysts’ expectations of $292 million. For the year 2026, Figma anticipates an adjusted operating income ranging from $100 million to $110 million, with projected revenues between $1.366 billion and $1.374 billion, which would represent a 30% increase. The consensus among analysts stands at $1.29 billion in revenue. Investor sentiment has been cautious lately, particularly regarding how generative artificial intelligence might impact the growth trajectories of software firms. As of the end of Wednesday’s trading, Figma shares had declined approximately 35% year-to-date. In contrast, the iShares Expanded Tech-Software Sector ETF fell by 22%, while the S&P 500 index saw a modest gain of nearly 1%. Dylan Field, Figma’s co-founder and CEO, emphasized in a recent interview that the demand for software is not diminishing; rather, it is likely to increase. However, he noted that the competitive landscape is evolving. Since its public debut in July, Figma is positioning itself to capitalize on the growing interest in AI-driven design tools. The company’s innovative Figma Make tool allows users to input simple text prompts, which AI models from Anthropic and Google then translate into app prototypes. Notably, over half of Figma's customers spending more than $100,000 annually utilized Figma Make weekly during the quarter. Figma has also managed to reduce operational costs for the Make service by enhancing its computing infrastructure. Praveer Melwani, the company’s finance chief, is expected to share insights with analysts regarding these efficiency improvements. Figma's adjusted gross margin held steady at an impressive 86%, despite a 70% increase in weekly active users of Figma Make from the previous quarter. Looking forward, Figma plans to increase revenue from AI usage by implementing monthly AI credit limits for different account types starting in March. Clients will have the option to pay based on their monthly usage or subscribe to AI credit plans, as outlined in a blog post from December. Additionally, the company has partnered with ServiceNow to facilitate the conversion of designs into applications for larger enterprises. Executives will elaborate on these results in a conference call with analysts at 5 p.m. ET. This story is developing, and updates will follow.