Figma CFO says design platform willing to put margins on the line to boost AI demand
FIG•Figma CFO Praveer Melwani said the company may accept lower gross margins to expand AI adoption and its user base. Quarterly gross margins have fallen to the mid-80% range from above 90% historically, and Figma shares are down about 43% this year.
1. AI investment and margins
Figma has been spending heavily on AI features, including a design assistant and tools that create prototypes and web applications from text prompts. The features have helped drive revenue growth but weighed on margins, which have fallen to the mid-80% range over the past year from above 90% historically. CFO Praveer Melwani said he did not know whether margins would return to the low-90% range and that it was not his acute focus.
2. Pricing and investor concerns
Melwani said Figma was willing to take a margin hit if it helped the company serve a much larger market. Figma moved to usage-based pricing for AI credits earlier this year and has said the effort will help deliver stronger earnings in upcoming quarters. Investors have scrutinized shrinking margins and free cash flow at technology companies, while concerns about AI disruption have contributed to a roughly 43% decline in Figma shares this year.
