Figma shares fall as AI investment impacts gross margins

Figma reported third-quarter revenue of $391.4 million, a 43% increase that exceeded analyst expectations. Despite the growth, the company's shares fell in extended trading following reports that high costs associated with artificial intelligence investments impacted gross margins. The adjusted gross margin for the third quarter was 80% to 82%, falling slightly below previous estimates.

To improve efficiency and margins, Figma is increasingly utilizing its own proprietary design models. Chief Financial Officer Praveer Melwani stated that using first-party models allows the company to serve customers with lower latency and higher quality at a more efficient price point. The company has also adjusted its pricing strategy to provide more AI credits to customers, a move that has reportedly increased the utilization rate of these add-ons by nearly 40%.

Figma raised its full-year revenue guidance to between $1.497 billion and $1.499 billion. The company also increased its adjusted operating margin forecast to 11%, up from a previous estimate of 9%. Demand for AI tools remains high, with over 80% of large paid customers consuming AI credits on a weekly basis through October.