Figma (FIG) continued to accelerate revenue growth as AI credit monetization gained traction, though continued reinvestment in AI products delayed the path to profitability, Morgan Stanley said in a Thursday note.

The investment firm said Q2 revenue rose 48% year over year, marking a third consecutive quarter of accelerating growth and exceeding consensus expectations.

Morgan Stanley said the quarter provided the first full test of AI credit monetization, with higher-value seat expansion and incremental credit purchases contributing to results. The firm also noted Figma raised its full-year revenue growth outlook to 39% from 35%.

The company left its full-year operating income guidance unchanged despite the higher revenue outlook, reflecting continued investment in AI products, inference capacity and go-to-market initiatives, according to the note.

Morgan Stanley lowered its price target on Figma to $33 from $38 and maintained its equal-weight rating.

Shares of Figma were more than 17% lower in Thursday trading.

Price: 23.33, Change: -4.82, Percent Change: -17.12