Figma beats expectations, raises full-year guidance on AI-driven growth
Figma posted first-quarter revenue of $333.4 million, beating analyst estimates of $316 million and prompting the digital design software company to raise its full-year sales outlook Thursday.
The company now expects full-year revenue between $1.422 billion and $1.428 billion, up from previous guidance of $1.37 billion. For the second quarter, Figma guided to $348 million to $350 million in sales, compared to analyst estimates of $329.7 million.
Revenue grew 46% year over year in Q1, accelerating from 40% growth in the prior quarter.
AI driving customer acquisition and expansion
Figma attributed the acceleration to its AI products, which the company said drove faster growth in new customer acquisition and spending within existing accounts.
Praveer Melwani, Figma's CFO, said in the earnings release: "As AI gets better, Figma is accelerating and customer usage and workflows on our platform are deepening. Our platform and AI products drove faster growth for both new customer acquisition and expansion within existing accounts."
The results align with a pattern emerging among software companies. AI for Sales initiatives have helped companies like Atlassian and Datadog address investor concerns about AI-driven disruption by showing how the technology can increase customer acquisition and retention instead.
For sales teams, Figma's results demonstrate a concrete example of how AI integration can drive both top-line growth and customer expansion-metrics that directly affect quota attainment and commission structures.
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