Figma's stock price surged 5.19% during intraday trading on Monday, reflecting strong investor sentiment towards the design software company.

The rally follows the company's impressive first-quarter earnings report, which exceeded analyst expectations. Figma reported Q1 revenue of $333.4 million, representing 46% year-over-year growth and surpassing the consensus estimate of $313.2 million. Adjusted earnings per share came in at $0.10, significantly above the $0.06 expected by the market.

Strong adoption of the company's AI-powered features was highlighted as a key growth driver, with users converting to Pro Team paid plans surging over 150% year-over-year. Figma also raised its full-year revenue guidance by $55 million, indicating continued confidence in its growth trajectory. Despite JPMorgan recently trimming its price target on the stock, the revised target remains well above the current trading level, with the market continuing to recognize Figma's AI monetization capabilities.