Overview

• Design platform's Q4 revenue grew 40% yr/yr, beating analyst expectations

• Company's net dollar retention rate rose to 136%

• Company forecasts 38% yr/yr revenue growth for Q1 2026

Outlook

• Figma expects Q1 2026 revenue between $315 mln and $317 mln

• Company forecasts full-year 2026 revenue between $1.366 bln and $1.374 bln

• Figma projects non-GAAP operating income of $100 mln to $110 mln for 2026

Result Drivers

• PLATFORM AND AI ADOPTION - Figma attributed its 40% year-over-year revenue growth to increased platform and AI adoption

• CUSTOMER EXPANSION - Net Dollar Retention Rate rose to 136%, indicating strong customer retention and expansion

• INTERNATIONAL AND ENTERPRISE GROWTH - Platform-led adoption across enterprise and international customers powered durable growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 3 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the software peer group is "buy"

• Wall Street's median 12-month price target for Figma Inc is $48.00, about 107.8% above its February 17 closing price of $23.10

• The stock recently traded at 96 times the next 12-month earnings vs. a P/E of 222 three months ago

Press Release: ID:nBw7hybM4a

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)