Figma's AI monetization strategy is showing promise as customers grow their AI credit consumption on the platform

Figma raised its full-year guidance by $40 million.

Figma's new artificial-intelligence monetization efforts are paying off, powering the company's Wednesday earnings beat.

For the second quarter, Figma's $(FIG)$ revenue grew 48% from a year before to $370.1 million, above consensus estimates for $352 million. The company posted adjusted earnings per share of 8 cents, surpassing the 4 cents projected by Wall Street analysts.

Figma aims to bring new capabilities to the platform "and become the canvas for full-stack creation," CFO Praveer Melwani told MarketWatch. "There's going to be an opportunity here for us to both...bring more and more folks into the process, and then also raise the ceiling, allowing folks to unlock real workflows that they've got in their head and productionize them across the platform."

Figma launched its own first-party design agent in May, which customers are using to using to automate repetitive layout tasks, write component documentation and enforce compliance, Melwani said. As of the end of July, over 50% of paid customers with more than $10,000 in annual recurring revenue were using the Figma agent on a weekly basis, the company shared.

As the company looks to unite designers, marketing and engineering teams, it's also monetizing its growing user base. Figma just finished its first full quarter of credit monetization after introducing the pricing policy in March. On top of standard seat-based pricing, customers purchase AI credit packages to run generative features.

The Figma agent in particular serves as an "opportunity for us to increase our overall number of credit-consuming users on the platform," Melwani said.

Net dollar retention rate, a measure of recurring revenue retained from existing customers over 12 months, was 136% at the end of the second quarter thanks to customers purchasing additional licenses and AI credit add-ons.

While the overall iShares Expanded Tech-Software Sector ETF IGV has clawed back most of its losses from earlier this year, shares of Figma are down 26% since January.

For the third quarter, Figma guided for revenue between $373 million and $375 million, beating the $365 million expected by Wall Street. Figma raised full-year revenue guidance by $40 million. The company now expects between $1.463 billion and $1.467 billion, exceeding the $1.437 billion consensus view.

"We're being a little bit more conservative on some of the newer products," Melwani said, pointing to certain beta features that aren't currently consuming paid credits. "As we learn about that transition from beta to [general availability] we'll be more confident in the outlook that we have for the back half this year and early next."

-Christine Ji