Figma lifts annual revenue forecast as AI efforts drive solid demand

The company reported revenue of $370.1 million for the second quarter ended June 30, up 48% from a year earlier, beating estimates of $351.6 million.

(Reporting by Deborah Sophia in Bengaluru; Editing by Diti Pujara)

Aug. 5 (Reuters) - Figma FIG.N lifted its annual revenue forecast on Wednesday, encouraged by strong demand for its design software products, as the company's efforts to integrate AI in its tools helped attract and retain more users.

Known for its browser-based platform that allows design teams to collaborate in real time, Figma has leaned in hard on artificial intelligence, embedding the technology across its portfolio to draw in more users by making its tools more accessible and easier to use.

Earlier this year, the company launched an AI agent directly built into the Figma canvas that can execute a variety of tasks such as making edits on large files, altering layouts and executing multi-step workflows.

Figma's AI efforts are paying off, with customers increasingly adopting its AI tools for tasks ranging from sketching and brainstorming to coding and shipping products.

Figma now expects full-year revenue between $1.463 billion and $1.467 billion, the midpoint of which implies a 39% growth rate, up from its prior forecast for 35% growth and ahead of analysts' estimates for a 36.1% increase, according to data compiled by LSEG.

"We are seeing real traction on AI monetization ... This starts to show up in our dollar retention rate, in our gross profit dollars, and it's all because Figma is offering something unique," Figma CFO Praveer Melwani told Reuters.