Figma’s stock surged 15% in extended trading after the design software company reported stronger-than-expected quarterly results, highlighting a significant 40% year-over-year revenue growth to $303.8 million. The company also forecasted first-quarter revenue between $315 million and $317 million, surpassing analyst expectations, amidst rising concerns regarding the competitive impact of generative artificial intelligence on software growth prospects. Figma’s innovative AI product, Figma Make, which allows users to create app prototypes through text input, is contributing significantly to its monetization strategy, with plans to introduce monthly AI credit limits and subscriptions starting in March. Additionally, Figma has partnered with ServiceNow to streamline the conversion of designs into applications for enterprise clients, positioning itself for continued growth in the evolving market.
Figma stock jumps 15% after strong earnings and AI growth outlook
