Key points:

• Figma shares rise 12%
• AI story is out of touch?
• Revenue jumps 46%

Design software company got the investor’s nod of approval after it showed solid gains in revenue amid the restless AI push.

🎨 Figma Finally Gets Some Love

• Figma stock FIG jumped 12% after the company crushed first-quarter expectations and raised its outlook, giving battered software investors a rare reason to smile instead of stress-scroll.
• Shares had already climbed nearly 7% during Thursday’s regular session before extending gains after hours. That rebound comes after the stock lost roughly half of its size this year amid fears that AI could bulldoze parts of the software industry.
• Investors appear to be warming up to the idea that Figma may survive the AI wave by embracing it instead of pretending it’s just another productivity plugin. Bold strategy. Potentially effective one, too.

📈 Revenue Growth Still Looks Strong

• Figma reported adjusted earnings of 10 cents per share, comfortably ahead of Wall Street estimates for 6 cents. Revenue rose 46% year over year to $333.4 million, beating analyst expectations of roughly $316 million.
• Paid customers climbed 54% to 690,000, while “pro team conversion” surged 150%. In plain English: more free users are upgrading to paid plans, particularly for Figma’s AI-powered tools.
• The company has been seeing strong demand from larger enterprise customers using its AI features, especially the Figma Make platform, which helps turn prompts and code into design workflows faster.

🤖 AI Threat or AI Opportunity?

• Figma also issued upbeat guidance for the second quarter, forecasting revenue between $348 million and $350 million, ahead of Wall Street expectations near $330 million. Full-year revenue guidance got bumped higher too.
• The company has aggressively partnered with AI leaders including Anthropic, OpenAI, and Alphabet to integrate generative AI into design workflows.
• Quick jargon check: generative AI refers to systems that create text, images, code, or designs from prompts. Investors have worried these tools could replace traditional software products. Figma’s latest numbers suggest the company may be turning AI into a growth engine instead of an extinction event.

Source: Tradingview