Q2 2025 Figma Inc Earnings Call

Thank you for standing by my name is Kate.

Kate DeLeo: Thank you for standing by. My name is Kate, and I will be your conference operator today. At this time, I would like to welcome everyone to Figma Q2 2025 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, press star one again. Thank you. I would now like to turn the call over to Kate DeLeo, VP of Investor Relations and Business Operations. Please go ahead.

And I'll be your conference operator today.

At this time I would like to welcome everyone to Sigma Q2, 2025 earnings call.

All lines have been placed on mute to prevent any background noise.

After the Speakers' remarks, there will be a question and answer session.

If you would like to ask a question. During this time simply press star followed by the number one on your telephone keypad.

If you would like to withdraw your question Press Star one again, thank you.

I would now like to turn the call over to Kate <unk> VP of Investor Relations and business Operation. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss big months results for the second quarter of 2025.

Kate DeLeo: Good afternoon, and thank you for joining us on today's conference call to discuss Figma's results for the second quarter of 2025. On the call, we have Dylan Field, Figma's Co-Founder and Chief Executive Officer, and Praveer Malwani, our Chief Financial Officer. During the course of today's call, we may make forward-looking statements, including but not limited to statements regarding our guidance and future financial performance, market demand, product development, growth prospects, business strategies and plans, ability to attract and retain customers, and ability to compete effectively. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date. We disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements.

On the call, we have Dylan field Sigma co founder and Chief Executive Officer, and Premier Melanie Our Chief Financial Officer.

During the course of today's call, we may make forward looking statements, including but not limited to statements regarding our guidance and future financial performance market demand product development growth prospects business strategies, and plans ability to attract and retain customers and ability to compete effectively. These forward looking statements are based on management's current views and assumptions and should not.

Be relied upon as of any subsequent date and we disclaim any obligation to update any forward looking statements.

Actual results may vary materially from today's statements information concerning our risks uncertainties and other factors that could cause results to differ from these forward looking statements are included in our filings with the SEC, including the final prospectus filed in connection with our IPO and our quarterly report on Form 10-Q for the quarter ended June 30th 2025.

Kate DeLeo: Information concerning our risks, uncertainties, and other factors that could cause results to differ from these forward-looking statements are included in our filings with the SEC, including the final prospectus filed in connection with our IPO and our quarterly report on Form 10-Q for the quarter ended June 30, 2025. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute, or in isolation from GAAP measures. Our non-GAAP measures exclude the effect of our GAAP results of stock-based compensation and certain other items. Reconciliations with non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call, and which is posted to our website. I'd like to now turn it over to Dylan.

Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to not as a substitute or in isolation from GAAP measures.

Our non-GAAP measures exclude the effect of our GAAP results of stock based compensation and certain other items.

Reconciliations of non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call and which is posted to our website I'd like to now turn it over to Dylan, Thanks, Kate and hi, everybody. Thank you for tuning in today.

Dylan Field: Thanks, Kate, and hi everybody. Thank you for tuning in today. I want to note that for today's earnings call, we're using one of our products, Figma Slides, which teams around the world use to co-create beautifully designed presentations. Figma Slides should look familiar to anyone who has used a presentation tool before. One feature I want to call out is our grid view feature. This gives you a bird's eye view of the canvas and allows you to organize your presentation in a multiplayer environment. Of course, Figma Slides is interoperable with the rest of our platform. If I go back to our main slide view, I can edit or go into design mode. For right now, I'm going to flip into presentation mode to get us going. Q2 was a strong quarter for Figma.

I want to note that for today's earnings call, we're using one of our products stigma slides.

Which teams around the world use to co create beautifully designed presentations SYGMA.

Sigma slides should look familiar to anyone who has used a presentation told before.

One feature I wanted to call out is our grid via in future.

This gives you a bird's eye view of the canvas allows you to organize your presentation in a multiplayer environment.

And of course Sigma slides is interoperable with the rest of our platform.

And I go back to our main side view I can edit forego into design mode.

But for right now I'm going to flip into presentation mode to get us going.

So Q2 was a strong quarter for Sigma.

Dylan Field: We achieved $250 million of revenue, a new quarterly revenue record for Figma, representing 41% year-over-year growth. We also continued to operate profitably with a non-GAAP operating margin of 5% and a free cash flow margin of 24%. With that said, I'm most proud of how our pace of innovation continues to accelerate. Given this is our first earnings report, I want to set clear expectations that we may reevaluate our reporting framework in the future as our business evolves. For example, we might adjust our guidance philosophy or deprecate metrics we no longer believe are reflective of our business. If we do this, we'll share our rationale with investors. As you all know, we're at the very start of what I hope is a long-term relationship together. Our goal is to be clear and transparent. With that, let's get into it.

We achieved $250 million of revenue, a new quarterly revenue record perfect Ma representing 41% year over year growth.

We also continued to operate profitably with a non-GAAP operating margin of 5% adjusted free cash flow margin of 24% with that said I'm. Most proud of how our pace of innovation continues to accelerate.

Given this is our first earnings report I wanted to set clear expectations that we may reevaluate our reporting framework in the future as our business evolves. For example, we might adjust our guidance philosophy or deprecate metrics. We no longer believe are reflective of our business and of course, if we do this we will share our ration.

Now with investors as you all know we're at the very start of what I Hope is a long term relationship together our goal is to be clear and transparent with that let's get into it.

Dylan Field: Today, virtually every business is becoming a software business, and AI has made software easier than ever to create. In this world, we believe your design, your craft, and your brand's point of view is what's going to make your product and your company stand out. Design is now the differentiator. It's how companies win or lose. Our goal at Figma is to build and expand our platform so we can do even more to unleash the taste and craft of our customers, who together are shaping and defining this next era of digital products. This goal is what guides our team, it guides our roadmap, and it guides our investment philosophy. It's also what motivates me as I think about the years and the decades ahead of how we can expand our platform.

Today virtually every business is becoming a software business and AI has made software easier than ever to create it.

In this world we believe your design your craft and your brands point of view is what's going to make your product and your company standout.

Design is now the differentiator is how companies win or lose.

And our God Sigma is to build and expand our platform.

So we can do even more to unleash the tasting craft of our customers.

Together, our shaping and defining this next era.

Of digital products.

This goal is what guides our team hey, guys, a roadmap and it guides our investment philosophy is.

It's also what motivates me as I think about the years and decades ahead of how we can expand our platform.

Dylan Field: We're focused on building a durable, long-term business that serves the evolving needs of designers and product development teams. Our focus drives our capital allocation decisions at Figma. For example, you should expect to see significant investments in our AI efforts because we believe AI will be critical to how software development workflows evolve moving forward. This means that we expect margins to come down in the near term as we invest in the long term. As I wrote in my S1 founder letter, we do plan to take big swings if and when we see opportunities to invest, both organically and inorganically. We know this approach won't resonate with everyone, but we believe we have a massive opportunity in front of us, and we intend to capture it. Figma is where teams come together to turn ideas into the world's best digital products and experiences.

We're focused on building a durable long term business that serves the evolving needs of designers and product development teams.

Our focus drives our capital allocation decisions at Sigma.

For example, you should expect to see significant investments in our AI efforts, because we believe AI will be critical to how software development workflows evolve moving forward.

This means that we expect margins to come down in the near term as we invest in the long term.

And as I wrote in my S. One founder letter, we do plan to take big swings.

If and when we see opportunities to invest both organically and inorganically.

We notice approach wont resonate with everyone.

But we believe we have a massive opportunity in front of us and we intend to capture it.

Sigma is where teams come together to turn ideas into the world's best digital products and experiences with started as design tool. When we launched our closed beta back in 2015 has now grown into something much bigger.

Dylan Field: What started as a design tool when we launched our closed beta back in 2015 has now grown into something much bigger, a single connected AI-powered platform that serves the entire product development process. We serve a deeply engaged global community of designers and product builders. They're passionate about their craft, and they inspire us to think bigger every day, which brings me to Q2. This May, we brought nearly 10,000 members of our global community together in San Francisco for our annual Config Conference. Hundreds of thousands of users also tuned in to watch virtually. The next week, we hosted thousands more in person at Config London. At Config, we launched four new products, doubling our product offering. These products are Figma Make, Figma Draw, Figma Sites, and Figma Buzz.

A single connected AI powered platform that serves the entire product development process.

We serve a deeply engaged global community of designers and product builders. They are passionate about their craft and they inspire us to think bigger everyday.

Which brings me to Q2.

This may we brought nearly 10000 members of our global community together in San Francisco for our annual Config conference hundreds of thousands of users also tuned in to watch virtually and then the next week, we hosted thousands more in person I can fig undone.

I can figure we launched four new products doubling our product offering these products, our Sigma make sigma draw Sigma sites and Sigma Budge.

Dylan Field: We also launched our Dev Mode MCP server, which speeds up developer workflows by bringing context from Figma Design into any surface that consumes MCP. For example, IDEs like VS Code and Cursor. In Q2, we also made two exciting acquisitions, a company called Modyfi to support our work around visual expression and Payload, an open-source company with a strong developer community that offers a leading headless CMS and application framework. Now I'll go into more detail on each of the four products that we launched at Config. First up, Figma Make. Figma Make is our new prompt-to-code product that allows you to use an existing Figma design or natural language to create a fully functional prototype. You can also build working apps and publish them directly to the web. Teams tell us that the speed of going from an idea to a working app is a game changer.

We also launched our Dev mode, MCP server, which speeds up developer workflows by bringing context from figure design into any surface that consumes MCP for example, Ids like V S code and cursor.

In Q2, we also made two exciting acquisition a company called modify support our work around visual expression.

And payload and open source company with a strong developer community that offers a leading headless content management system and the application framework.

Now I'll go into more detail on each of the four products that we launched a config.

Her sub Sigma make.

Sigma make is our new prompt a code product that allows you to use existing sigma designs for natural language to create a fully functional prototype.

Can also build working ops and publish them directly to the web.

Teams tell us the speed of going from idea to a working app is a game changer figure make give anyone the power to visualize and idea and high fidelity and validate a concept with something realistic and in some cases theyre creation can even eat the real final product.

Dylan Field: Figma Make gives anyone the power to visualize an idea in high fidelity and validate a concept with something realistic. In some cases, their creation can even be the real final product. This is important because so much of what has made product building a challenge is slow cycle times and not having a way to explore the full option space of your ideas. Now you can do this more quickly, and sometimes really quickly, in a matter of minutes with Figma Make. Let me show you how it works. This is Figma Make. On the bottom left, you'll notice a chat box where you can type in a prompt to generate a full dynamic web app. You may have seen other AI vibe coding tools like this, and perhaps you're wondering, what makes Figma Make different?

This is important because so much of what has made product building a challenge is slow cycle times and not having a way to explore the full option space of your ideas.

Now you can do this more quickly and sometimes really quickly in a matter of minutes with Sigma make.

So let me show you how it works.

This is stigma make on the bottom left you'll notice a chat box.

Where you can type in a prompt to generate a full dynamic web app.

Now you may have seen other AI vibe cutting tools like this and perhaps you're wondering what makes sigma make difference.

Dylan Field: Figma Make's superpower is the design context it can tap into to create higher quality outputs, even if you're not a designer yourself. Let's say I'm a product manager on a team building a fitness app. I have all these amazing designs that my designers have mocked up, and they look great, but maybe I want to get a better sense of how the app actually works from the end user's point of view. This is where having a prototype that I can play with can help validate my direction. Rather than asking a designer to wire one up, I can just ask Figma Make. All I have to do is copy this from Figma Design into Figma Make, pasting in, and with that, all the design context and the metadata that is in Figma Design is now in Figma Make.

Sigma make superpower is the design context, it can tap into to create higher quality outputs, even if you're not a designer yourself.

Well, it's I'm, a product manager and a team building a fitness app.

All of these amazing designs.

Designers have marked up and they look great, but maybe I wanted to get a better sense of how the App actually works from the end users point of view.

This is where having a prototype that I can play with can help validate my direction.

Rather than asking a designer to wire went up I can just ask Sigma make.

I'll have to do with caveats from Sigma design.

And to think make.

Pacing in.

And with that all the design in context of the metadata that isn't Sigma design.

Because now it's like well make.

Dylan Field: Let me add a prompt in the chat box to bring in a bit more context. I'll ask Make to make this a fully interactive dashboard that matches this design one-to-one. Allow me to hover over the chart to see data and filter by time range. One thing we've heard from customers is that they want the outputs they generate to look and feel consistent with their other products. With Figma Make, you can connect to your design library and bring in style context, like color palettes and other core styling elements. This is an area we're investing a lot of time in. There are even more improvements to come. All right, now we're ready. We'll click here, and Figma Make, as you can see, is starting to interpret the prompt, the designs we provided, and even starting to write the code that'll turn them into functional prototypes.

So let me add a prompt in the chat box.

To bring it a bit more context, I'll ask Meg to make this a fully interactive dashboard.

Matches of design one to one.

Allow me to hover over the chart to see data and filter by time range.

One thing we've heard from customers is that they want the outputs to generate to look and feel consistent with their other products.

We have a stigma make you can connect your design library, and bringing the <unk> context like color pallets.

And other core styling elements as it is an area, we're investing a lot of time in.

There is even more improvements to come.

Alright. So now we are ready we will click here if they can make as you can see is starting to interpret the prompt.

We have provided.

And even starting to write the code that I will turn them into functional prototypes.

Dylan Field: You can see it begin to work. This will take a couple of minutes, so in the interest of time, let's take a look at a finished example. Here, you can see the working prototype that we got from the design, and it's a single, simple, natural language prompt. You can see it's fully interactive as I move my mouse around, my cursor, and actually see the hover effects or toggle between these tabs. If I want to make changes to the generated output, I can simply prompt again. I can also easily refine my result by clicking here in order to select part of the prototype, for example, this new reminder button. As I do that, I have the ability to change its color to something else should I want to, and easily directly manipulate the output. Voila, there we go.

Can see it begin to work this will take a couple of minutes. So in the interest of time, let's take a look at our finished example.

Here you can see the working prototype that we got from the design and there's a single simple natural language prompt.

And you can see it's fully interactive as I move my mouse around my cursor and actually see hover effects, where toggle between these tabs.

And I want to make changes to generate output.

I can simply problems again.

I can also easily refined my results.

By clicking here in order to select part of the prototype for example, this new reminder, button.

And as I do that I have the ability to change its color to something else should I want to.

And easily directly manipulate the outputs.

Oh, there we go.

Dylan Field: With Make, you can also edit, download, or export the actual code behind the prototype. Figma Make also allows for multiplayer editing, so I can collaborate with my team in this code view, and anyone in the file can also prompt their own changes alongside me. Now I have a working prototype for my fitness app that I can preview across screen sizes, share directly with my team for feedback, test with users, or if I feel it's ready, publish directly to the web. This is still early days for Figma Make, and we're working hard to rapidly improve it. The response we've seen from users so far has just been amazing, and we're so energized for what's next. For example, Affirm is using Figma Make to help visualize and validate their ideas faster.

With make you can also edit.

Hello to export the actual code behind the prototype.

So you can make also allows for multiplayer editing.

I can collaborate with my team in this code view and anywhere in the file can also prompt their own changes alongside me.

Okay now I have a working prototype for my fitness apps that I can preview across screen sizes share directly with my team for feedback test with users or if I feel it's ready.

Published directly to the web.

This is still early days for Sigma make and we're working hard to rapidly improve it.

The response, we're seeing from users. So far has just been amazing and we're so energized for what's next.

For example, our firm is using Sigma makes to help visualize and validate their ideas faster rather than writing detailed prd's product managers out of firm use makes to create prototypes that everyone can interact with this.

Dylan Field: Rather than writing detailed PRDs, product managers at Affirm use Make to create prototypes that everyone can interact with. This helps them work through their ideas faster. Designers use Make at Affirm as a thought partner when they want to work through multiple concepts, such as a user interaction pattern. Affirm's PMs, engineers, and designers also use our Dev Mode MCP server, and they've told us it speeds up their development velocity by, quote, "orders of magnitude." One designer was able to rebuild major product flows in less than two days. Affirm also recently upgraded to an enterprise account. From building with Make to brand marketing in Figma Buzz to executive reviews with Figma Slides, Affirm uses the Figma platform company-wide. Switching gears from Make, for some time now, our users have asked us to improve Figma's vector functionality.

This helps them work through their ideas faster designer.

Designers use make an affirm as a thought partner when they want to work through multiple concepts such as the user interaction pattern.

Our firm's Pms engineers and designers also use our Dev mode M. C. P server.

They've told us it speeds up the development philosophy by quote orders of magnitude.

One designer was able to rebuild a major product flows in western two days.

Affirm also recently upgraded to an enterprise accounts from building with make to brand marketing and Sigma Buzz to executive reviews with Sigma slides affirmed.

Affirm uses the Sigma platform company wide.

Switching gears from make for some time now our users have assets to improve Sigma vector functionality.

Dylan Field: In this age of AI, where software is created faster than ever, it's an especially important moment for us to give our customers ways to be even more expressive on the Figma platform. We want to help our customers differentiate their product and their brands. They need to stand out from the crowd. At Config, we launched Figma Draw, a set of tools optimized for visual design and free-form creation in Figma. Draw is part of our full suite, and it became generally available in Q2. Let me hop into a quick demo so you can see how it works. To use Figma Draw, all you need to do is go into a Figma design file and click this toggle. Now I'm in Figma Draw. Draw offers 20+ new tools like textures, effects, and improved vector editing.

In this age of AI, where software is created faster than ever it's especially important moment for us to give our customers what used to be even more expressive on the Sigma platform.

We want to help our customers differentiate their products and their brands.

They need to stand out from the crowd.

So it can fig, we launched Sigma draw.

Set of tools optimized for visual design and free form creation and Sigma draws.

As part of our full seat and it became generally available in Q2.

Let me hop into a quick demo. So you can see how it works.

To use Sigma draw all you need to do is go into a Sigma design file and click this toggle.

Okay now I'm in Sigma draw draw.

Draw offers 20, plus new tools like textures effects improved vector editing.

Dylan Field: The real power of Figma Draw is the ability to bring more creativity and visual expression to your designs. I'm just going to show you a few of the features. You'll have to look at the rest yourself. I'll start with a sun illustration. It's a good start, but we can do more to bring this to life. One way to do it is with our repeaters feature. If I click here, you can see that as I move my mouse around, I can easily add more rays, and also, if I click the brush feature, then I can give a bit more texture with different brush strokes. I'll choose the noir one right here. What's also great about Figma Draw is you can use your existing design system. In that way, you're able to keep your illustrations on brand and avoid repetitive work.

But the real power of Sigma draw is the ability to bring more creativity individuals' expressions your designs I.

Mr Show you a few of the features you'll have to look at the rest yourself.

I'll start with our son an illustration.

It's a good start but we can do more to bring this to life.

One way to do it is with our Peter's feature.

If I click here.

You can see that as I move my mouth surround.

I can easily add more rays and also if I could the brush feature.

Then I can give a bit more texture with different brush strokes.

I'll choose the noire, one right here.

But it's also great about Sigma draw because you can use your existing design system.

And that way, we're able to keep your illustrations on brand and avoid repetitive work.

Dylan Field: For example, I've already defined a color palette here that works across a light mode and a dark mode of my app. What I can do is I can take my component here, and I can copy and paste it into this new frame. When I do that, you'll notice that the colors update on this hand and basically the ground below the grass from black to white. That way, I don't have to go select those colors again from the start. Our community has made some incredible things with Draw. It's been amazing just to watch their creativity flourish and some of the main things that we honestly didn't even think were possible. One example is from a community member, Erica Leung, a visual designer based in Canada. Erica uses Figma Draw in her role at a product and design agency, as well as her freelance work.

For example, I've already defined the color palette here that works across a light mode and a dark mode of my App.

So what I can do is I can take my component here.

Copy and paste it into this new frame.

And when I do that you'll notice that the colors update on.

On his hand, and basically the ground floor of the grass and back to white.

That way I don't have to go like those colors again from the start.

Our community has made some incredible things withdraw.

And it's been amazing to watch their creativity flourish and some of them made things that we honestly didnt, even think where possible.

One example is from our committee member Erika, we hung a visual designer based in Canada.

Eric I use a stigma draw in her role in our product and design agency.

As well as her freelance work.

Dylan Field: She can work in Draw to riff on an illustration and then flip the Figma design to do product design work, all without leaving the Figma platform. Inge Hampton, a brand designer and illustrator, is pushing the boundaries of illustration in Figma, as you can see here. If I hover over her design in the different layers, you can see how complex her illustration is. She has layers representing freckles and her scene masking groups. It's quite impressive to see how these files are created. Of course, this is just a peek into what you can create with Figma Draw. Our community is always just so amazing in how they push our tools to the limit. We're always excited to see where they take Figma next. All right, let's move on to Figma Sites. For years, our community and customers have had a simple request for us.

She can work and drive to riff on an illustration and then flip the Sigma design surprises on work all without leaving the pigment platform.

And Ingo Hampton brand designer and illustrator is pushing the boundaries of illustration of pigment as you can see here.

If I hover over her design and the different layers you can see how complex or illustration is.

She's has players representing crackles interesting maskin groups, it's quite impressive to see how these files are created.

And of course, they suggest a peek into what you can create with Sigma draw.

Our community is always just so amazing and how they push our tools for the limits and we're always excited to see where they take Sigma next.

Alright, let's move onto Sigma sites for years, our community and customers have had a simple request for us.

Dylan Field: They say, "If we design in Figma, why can't I just press the publish button and go directly to the web?" Now with Figma Sites, users can do that. They can create beautifully designed dynamic websites with custom code interactions powered by AI. We also offer animations, responsive layouts, and more. When it's time to ship, you can just hit that publish button, and just like that, you've got a live working website. You can even connect it to your own custom domain if you want to. We're very excited about what our users will be able to do with not just Figma Sites, but also our CMS offering that we have under development. Finally, we announced Figma Buzz at Config. Buzz helps brand and marketing teams build assets at scale using their design team's libraries and brand graphics in Figma.

They say, if we decided to Sigma why Canada is present published button and go directly to the web.

I will now with Sigma sites users can do that they.

They can create beautifully designed dynamic websites with custom code interactions powered by AI.

We also offer animations responsive layouts and more.

When it is time to ship.

You can just hit that published button and just like that you've got a live working website.

You could even connect it to your own custom domain, if you want to.

We're very excited about what our users will be able to do with not just sigma sites, but also our CMS offering that we have under development.

And finally, we announced Sigma Buzz I can pick.

Does helps brands and marketing teams build assets at scale.

Using their design teams libraries and brand graphics and Sigma.

Dylan Field: When using Buzz, creatives and marketers can quickly customize everything from social media assets to event materials, you name it, at high volume with consistency. While Sites and Buzz are still in beta, we're thrilled by the responses that we've seen so far from the community. Our users can now go from design to build, all the way to shipping of product or brand assets, all in Figma. Lastly, we continue to serve the evolving needs of developers, who accounted for approximately 30% of our monthly active users during Q2. In Q2, we launched our Dev Mode MCP server. With Dev Mode MCP, developers can connect the design context in Figma to their AI coding tools. With that, they can generate the base implementation of their front end at lightning speed.

When using buzz Creatives and marketers can quickly customize everything from social media assets to event materials you name it at high volume with consistency.

Well sites in buzz or still in beta we're thrilled by the responses that we've seen so far from the community.

Our users can now go from design to build all the way to shipping a product or brand assets all in Sigma.

And lastly, we continue to serve the evolving needs of developers.

Who accounted for approximately 30% of our monthly active users during Q2.

In Q2, we launched our Desmodus MCP server.

Kevin what MCP developers can connect the design context, and sigma to their AI, putting tools and with that they can generate the base implementation of their friends at lightning speed.

Dylan Field: The combination of design context plus code-based context helps produce better code output from LLMs tailored to the user's designs. It's been so exciting to hear how our customers are using this. One customer example here is Coinbase, who serves users in more than 100 countries. Coinbase has been a Figma customer since 2018, and they've grown from just a few users. I remember when I went there and demoed in the first place to hundreds of designers, developers, product managers, marketers, and more, building multiple products from start to finish, all in Figma. Coinbase ships fast. AI coding tools have helped, and by implementing Figma's Dev Mode MCP server, Coinbase can make sure that LLM-generated code is design-informed. This means they can move quickly, but without sacrificing their brand or system integrity.

The combination of design context, plus codebase context helps produce better cut out but from L. M <unk>.

Tailored to the user's designs.

And it's been so exciting to hear how our customers are using us.

One customer example, here is coinbase, who serves users and more than 100 countries.

Coinbase, who has been a sigma customers since 2018, and they've grown with just a few users I remember when I went there and downloaded in the first place to hundreds of designers developers project managers marketers and more building multiple products from start to finish all in Sigma.

Coinbase ships fast.

I Couldnt tools have helped and by implementing Sigma download MTB server coinbase can make sure that alarm generated code is design informed this means they can move quickly, but without sacrificing their brand or system integrity claim.

Dylan Field: Coinbase has seen encouraging early results with improved developer velocity, greater parity between design and development, and a consistent user experience across their platform of products. From the start, we've taken so much inspiration from Figma users and customers around the world. We are super focused on how we can keep meeting their needs. In Q2, we continue to make our product more accessible to customers outside the U.S. In April, we localized our product and support for Korean language users. Shortly afterwards, in May, we made our product and support available in Brazilian Portuguese. We've seen this resonate with customers, including Itaú Unibanco and NuBank in the Latin America region. Itaú Unibanco is Latin America's largest private bank. With Figma's AI-powered platform, they've accelerated their product development process and the way teams work together across the company.

<unk> has seen encouraging early results with improved developer velocity greater parity between design and development and a consistent user experience across our platform of products.

From the start we've taken so much inspiration from pigmy users and customers around the world.

And of course, we're super focused on how we can keep meeting their needs.

In Q2, we continue to make our products more accessible to customers outside the United States.

In April we localize our product and support for Korean language users and then shortly afterwards in May we made our product and support available in Brazilian Portuguese please.

This resonate with customers, including Ito, who would've Banco and new bank in the Latam region.

Ito is Latin America's largest private bank with.

With Sigma is AI powered platform they've accelerated their product development process.

The teams work together across the company.

Dylan Field: Itaú Unibanco uses Figma to go from ideation to prototyping, all the way to code and delivery, elevating the quality of their experiences that they deliver to customers. NuBank is a fintech company that uses Figma Enterprise and serves more than 118 million customers. Figma's platform is where everyone works together in one space, including hundreds of designers, researchers, engineers, and PMs. Figma has helped NuBank scale their products with consistency and speed as they've grown across North and South America. As I look ahead, I'm just so excited about the opportunity in front of us. The role of design and craft and the importance of building great user experiences has never been more critical. This is especially true in a world where AI makes it easier than ever to build software. In this world, design is more essential and it's more powerful. Design is how companies win or lose.

You use a stigma to go from ideation to prototyping, all the way to code and delivery.

And the quality of their experiences they deliver to customers.

New bank as a Fintech company that uses a stigma enterprise and serves more than 118 million customers Sigma spot for us where everyone works together in one space, including hundreds of designers researchers engineers and BMS.

Sigma has helped new bank scaled their buys with consistency and speed as they've grown across north and South America.

As I look ahead I'm, just so excited about the opportunity in front of us.

We'll design and crafts and the importance of building great user experiences has never been more critical.

This is especially true in a world of worry I it makes it easier than ever to build software.

In this world designers more essential and it's more powerful design.

Design is how companies win or lose it is the critical differentiator.

Dylan Field: It is the critical differentiator. I want to thank our customers for their trust, our community for their energy and ideas, and the entire Figma team for their hard work and incredible execution. We have so much more to build together, and I'm so looking forward to the future. With that, I'll hand it over to our CFO, Praveer. Thank you, Dylan. As Dylan mentioned, we are excited to share the results of another strong quarter. First, I want to reiterate our growth philosophy. We are focused on growing responsibly, which you can see in our multi-year track record of durable growth and non-GAAP operating margin profitability. We have been disciplined stewards of capital and will continue to invest in the growth opportunities while managing our margins. As Dylan said, we believe the opportunity ahead of us is large.

I want to thank our customers for their trust our community for their energy and ideas.

And the entire pigment team for their hard work and incredible execution.

We have so much more to build together.

And I'm still looking forward to the future.

With that I'll hand, it over to our CFO Premier.

Thank you Dawn as Don mentioned, we are excited to share the results of another strong quarter.

First I want to reiterate our growth philosophy, we are focused on growing responsibly, which you can see in our multiyear track record of durable growth and non-GAAP operating margin profitability we.

We have been disciplined stewards of capital and we'll continue to invest in the growth opportunities, while managing our margins.

<unk> said, we believe the opportunity ahead of US is large we plan to deepen our investment in the near term to take advantage of this opportunity.

Dylan Field: We plan to deepen our investment in the near term to take advantage of this opportunity. We held our annual user conference, Config, during Q2, and it remains a key investment in our community, customer relationships, and product momentum. When we introduce new products and features at Config, we often roll them out gradually to gather feedback and learn from early usage before we expand to broader availability. This brings me to our Q2 results. As we laid out in our S1, our rapid pace of innovation has been a consistent component of our growth algorithm, helping us win new customers and expand adoption within our existing customers as we meet their evolving needs. We rolled out updates to our pricing and packaging in March of this year, so Q2 is the first full quarter with the new pricing and packaging in place.

We held our annual user conference Config during Q2, and it remains a key investment and our community customer relationships and product momentum.

When we introduce new products and features that can say, we often rolling out gradually to gather feedback and learn from early usage before we expand to broader availability.

This brings me to our Q2 results as we laid out in our S. One our rapid pace of innovation has been a consistent component of our growth algorithm, helping us win new customers and expand adoption within our existing customers as we meet their evolving needs.

We rolled out updates to our pricing and packaging in March of this year. So Q2 is the first full quarter with the new pricing and packaging in place customers on annual plans will remain on our legacy plan until their first renewal the customers who are on our monthly plans have all migrated to our new model.

Dylan Field: Customers on annual plans will remain on our legacy plan until their first renewal. The customers who are on our monthly plans have all migrated to our new model. We ended Q2 with $250 million in revenue, which is our best quarter yet. This represents 41% year-over-year revenue growth, fueled by an increase in new paid customers, renewals on our new pricing and packaging model, and growth within our existing customers. As we've expanded Figma's capabilities to serve more parts of the product development journey, we've seen the benefits of working on a unified platform resonate with more and more customers. During Q2, more than 80% of our customers use two or more products, and two-thirds of our customers use three or more products. One example is Alaska Airlines.

Ended Q2 with $250 million in revenue, which is our best quarter. Yet this represents 41% year over year revenue growth fueled by an increase in new paid customers renewals, our new pricing and packaging model and growth within our existing customers.

As we've expanded sigma capabilities to serve more parts of the product development journey, we've seen the benefits of working on a unified platform resonate with more and more customers during Q2 more than 80% of our customers use two or more products and two thirds of our customers use three or more products one exam.

Paul as Alaska Airlines.

Dylan Field: When Alaska Airlines and Hawaiian Airlines merged late last year, their design teams needed a way to work together while keeping each brand distinct. Both airlines were already using Figma, so when Alaska renewed their enterprise plan in Q2, they were able to bring their teams together seamlessly. Both brands now share design systems in a single secure account with built-in support for brand-specific libraries. With variables, Dev Mode, and Figma Make, the teams innovate faster and keep experiences consistent across every touchpoint, making it easier for millions of passengers to travel. Our net dollar retention rate, which accounts for expansion, contraction, and churn across paid customers who spend over $10,000 in ARR, was 129% in Q2. Our net dollar retention rate was primarily driven by seat expansion within existing customers, along with renewals on our new pricing and packaging model.

When Alaska Airlines and Hawaiian Airlines merged late last year their design teams needed a way to work together, while keeping each brand distinct.

Both airlines, we're already using Sigma so when Alaska renewed their enterprise plan in Q2, they were able to bring their teams together seamlessly.

Both brands now share design systems in a single secure account with built in support for brand specific libraries.

With variables Dev mode, and Sigma make the teams innovate faster and keep experience is consistent across every touch point, making it easier for millions of passengers to travel.

Our net dollar retention rate, which accounts for expansion contraction and churn across paid customers, who spend over $10000 and <unk> was 129% in Q2 our.

Our net dollar retention rate was primarily driven by seat expansion within existing customers along with the renewals on our new pricing and packaging model.

Dylan Field: As of Q2, we now have over 11,900 paid customers spending over $10,000 in ARR and more than 1,100 paid customers spending over $100,000 in ARR, which grew 42% year over year. Now, to discuss some key income statement results. Unless otherwise noted, all metrics are non-GAAP. We have provided a reconciliation of GAAP to non-GAAP financials in our earnings release, which is posted to our website. Our gross margin this quarter was 90%. We anticipate that we will see further gross margin compression in the near term as we roll out our AI products, including Figma Make, and recognize increases in inference spend. This is the largest driver of the quarter-over-quarter change in our gross margin. We view this as an investment in our products, our product differentiation, and meeting the evolving needs of our customers. Our operating margin for Q2 was 5%.

As of Q2, we now have over 11900 paid customers spending over $10000 in air and more than 1100 paid customers spending over $100000 in error, which grew 42% year over year.

Now to discuss some key income statement results unless otherwise noted all metrics are non-GAAP. We've provided a reconciliation of GAAP to non-GAAP financials in our earnings release, which is posted to our website.

Our gross margin this quarter was 90% we anticipate that we will see further gross margin compression in the near term as we rollout our AI products, including Sigma make and recognized increases in <unk> spend.

This is the largest driver of the quarter over quarter change in our gross margin. We view this as an investment in our products, our product differentiation and meeting the evolving needs of our customers.

Our operating margin for Q2 was 5%, we see elevated sales and marketing spend in the quarter when config takes place.

Dylan Field: We see elevated sales and marketing spend in the quarter when Config takes place. If you look at our historical financials, you will see similar seasonality in Q2 2023 and Q2 2024. We decreased our sales and marketing costs as a percent of revenue year over year from 46% in Q2 2024 to 39% in Q2 2025. We also experienced a year-over-year increase in G&A costs as we invested in our public company readiness efforts. Our adjusted free cash flow margin in Q2 was 24%. We saw year-over-year improvements in our adjusted free cash flow margin, primarily due to strong collections growth. We ended the quarter with $1.6 billion of cash, cash equivalents, and marketable securities on our balance sheet. Within the $1.6 billion, we also held approximately $91 million in our Bitcoin exchange-traded fund. I also want to provide additional detail on our lockup releases.

You look at our historical financials, you will see similar seasonality in Q2 2023 in Q2 2024, we.

We decreased our sales and marketing costs as a percent of revenue year over year from 46% in Q2, 2024% to 39% in Q2 2025.

We also experienced a year over year increase in G&A costs as we invested in our public company readiness efforts.

Our adjusted free cash flow margin in Q2 was 24% we saw year over year improvements in our adjusted free cash flow margin, primarily due to strong collections growth and we ended the quarter with $1 $6 billion of cash cash equivalents and marketable securities on our balance sheet within the $1 $6 billion.

We also held approximately $91 million and a bitcoin exchange traded fund.

I also want to provide additional detail on our lock up releases first as described in our S. One current nonexecutive Sigma employees may have the ability to sell up to 25% of their vested holdings. After this earnings announcement, depending on the stock price.

Dylan Field: First, as described in our S-1, current non-executive Figma employees may have the ability to sell up to 25% of their vested holdings after this earnings announcement, depending on the stock price. Second, our early VC stockholders represent a large collective ownership position in the business, and we want to provide some new information around when their shares will be released from lockup restrictions. Five of our largest VC stockholders have signed a new extended lockup agreement with us. Their extended lockup will expire approximately one year after the IPO, with 17.5% of their shares being released after the Q3 2025 earnings, 20% after Q4 2025 earnings, 27.5% after Q1 2026 earnings, and 35% after Q2 2026 earnings. When these shares are released, they may be held, transferred, distributed, or sold at the discretion of the extended lockup holders.

And our early VC stockholders represent a large collective ownership position in the business and we want to provide some new information around when their shares will be released from lockup restrictions.

Five of our largest D. C stockholders have signed a new extended lockup agreement with US. They are extended lockup will expire approximately one year. After the IPO with 17, 5% of their shares being released after the Q3 2025 earnings 20%. After Q4 2025 earnings.

27, 5% after Q1 2026 earnings and 35%. After Q2 2026 earnings. When these shares are released they may be held transferred distributed or sold at the discretion of the extended lockup holders.

Dylan Field: Additionally, Dylan has entered into a Rule 10b5-1 trading plan with a start date in November that will sell up to a maximum of 3.3% of Dylan's holdings, including all outstanding RSUs. For clarity, that does not include any shares that may be sold to cover tax withholding obligations in connection with the potential future settlement of RSUs. More details can be found in our 8-K and 10-Q that would be filed today. Now, let's close it out. As you may have seen in our earnings release, we intend to provide revenue guidance for both our current quarter and our annual outlook going forward. Today, our revenue base consists of seat-based subscriptions with the majority of our pro tier on monthly subscriptions and our organization and enterprise tiers on annual subscriptions.

Additionally, Donlin has entered into a rule <unk> one trading plan with a start date in November that will sell up to a maximum of three 3% of Dylan's holdings, including all outstanding Rs use for clarity that does not include any shares that may be sold to cover tax withholding obligations in connection.

With the potential future settlement of our issues more details can be found in our 8-K and 10-Q that would be filed today.

Now, let's close it out as you may have seen in our earnings release, we intend to provide revenue guidance for both our current quarter and our annual outlook going forward.

Today, our revenue base consists of seat based subscriptions with the majority of our approach here on monthly subscriptions and our Oregon enterprise tiers on annual subscriptions.

Dylan Field: We intend to complement the existing seat-based model with a consumption model meeting the needs of our evolving product platform. We also plan to provide annual guidance for operating income in the foreseeable future as we expect to have timely opportunities to reinvest throughout the year, meeting the needs of a rapidly evolving market. Okay, let's turn to guidance for the third quarter and full fiscal year. For the third quarter ending September 30, we expect revenue to be between $263 million and $265 million. As we previously discussed, our model is changing rapidly given the rollout of several new products in the quarter. While we have a proven track record of monetizing products and use cases on our platform, we are still early in understanding long-term adoption of our newer products.

We intend to complement the existing seat based model with a consumption model meeting the needs of our evolving product platform.

We also plan to provide annual guidance for operating income in the foreseeable future as we expect to have timely opportunities to reinvest throughout the year meeting the needs of a rapidly evolving market.

Let's turn to guidance for the third quarter and full fiscal year for the third quarter ending September 30, we expect revenue to be between $263 million and $265 million.

As we've previously discussed our model is changing rapidly given the rollout of several new products in the quarter.

While we have a proven track record of monetizing products and use cases on our platform. We are still early in understanding long term adoption of our newer products.

Dylan Field: We will continue to learn more as we expand usage in Q3 and refine our pricing and packaging strategy. For the year, we anticipate that our revenue will be between $1.021 billion and $1.025 billion, implying 37% year-over-year growth at the midpoint. Turning to operating income, we expect our full-year operating income to be between $88 million and $98 million. We continue to explore ways that we can invest in our products and go-to-market support. We are willing to deepen this investment where we see strong returns. We are proud of the results that we have achieved, and we are even more excited about what is ahead for our customers, our community, our Figmates, and our shareholders. With that, we'll pass it back to the operator to open it up for questions.

We will continue to learn more as we expand usage in Q3, and refine our pricing and packaging strategy.

For the year, we anticipate that our revenue will be between 1.0 to 1 billion and $1.0 billion to $5 billion implying.

Implying 37% year over year growth at the midpoint.

Turning to operating income, we expect our full year operating income to be between $88 million and $98 million. We continue to explore ways that we can invest in our products and go to market support we are willing to deepen this investment where we see strong returns.

We are proud of the results that we have achieved and we are even more excited about what is ahead for our customers our community our fig mates and our shareholders with that I will pass it back to the operator to open it up for questions.

At this time I would like to remind everyone in order to ask a question. Please proscar wankel number one on your telephone coupons, we reclassify to limit yourself to one question, we will pause for just a moment to compile the Q&A roster.

Kate DeLeo: At this time, I would like to remind everyone, in order to ask a question, please press star, then the number one on your telephone keypad. We request that you limit yourself to one question. We will pause for just a moment to compile the Q&A roster. Our first question comes from the line of Elizabeth Porter with Morgan Stanley. Your line is open.

Our first question comes from the line of Elizabeth corner with Morgan Stanley. Your line is open.

Elizabeth Porter: Great, thank you very much for the question. Dylan, as you walked through earlier, Figma showed an accelerated pace of innovation and doubled the size of the product portfolio earlier this year. While understanding it's still early, just given the change in the scale of the portfolio and the areas that you're addressing, is there any context you could provide on how we should think about the ramp of new products or the monetization of new seat types, maybe relative to prior product rollouts for Dev Mode or FigJam? Thank you.

Great. Thank you very much for the question given if you walked through earlier think mesh at an accelerated pace of innovation and doubled the size of the product portfolio earlier this year.

Understanding it's still early just given the change in the scale of the portfolio in the areas that you're addressing is there any context you could provide on how we should think about the ramp of new products to the monetization of new seat type maybe relative to prior product Rollouts forget another fact, Kim thank you.

Hi, Thank you for the question and for being here.

Dylan Field: Hi, thank you for the question and for being here. For new products, I would say that obviously we're still early in the life cycle. These products are still quite young, and there's a lot of maturing to do. That said, we've been very excited by the initial engagement that we're seeing. For Figma Draw, we are covering a lot more of the use case than even I believed might be possible when we launched it. We launched with 20+ new features, which is very exciting, but the amount of expression that our users are able to do has been definitely extraordinary in my eyes. We've been glad to see the usage as well.

Yes, so for new products I would say that obviously, we're still early in the lifecycle.

These products are still quite young and there's a lot of maturing to do that said we've been very excited by the initial engagement that we're seeing.

Perfect Mudra.

We are covering a lot more of a use case than even I believe it might be possible.

When we launched it I mean, we launched with 20, plus new features which is very exciting but the amount of expression that our users are able to do has been definitely extraordinary in my eyes and.

<unk> been glad to see the usage as well.

Dylan Field: For Figma Sites, we're seeing lots of use among freelancers and individuals who are creating websites directly in Figma, and they've always been wanting that publish button so they can go directly to a live published site. We're seeing usage amongst some enterprise customers as well. For Figma Buzz, I would say that we're seeing demand across teams and also a lot of energy around this product. This is one where we're getting extremely interesting feedback that is pulling us into thinking through new directions on the Buzz roadmap. It's going to be very exciting to see how that plays out. Finally, on Make, this is one where it's a big priority for us, and we're really excited about everything we can do here.

Perfect My side were seeing lots of use among freelancers and individuals who are creating web sites directly and Sigma and they've always been wanting that publish button. So they can go directly to why Polish site.

And also we're seeing usage amongst enterprise customers as well.

And then for <unk>.

Sigma Buzz I would say that we're seeing demand across teams and also a lot of energy around this product.

And this is one where we're getting extremely interesting feedback that.

Is pulling us.

Into.

Thinking through new directions on the Buzz roadmap.

And it's going to be a very exciting to see how that plays out.

And then finally unmake.

This is one where it's a big priority for us.

And we're really excited about everything we can do here, we think there's a opportunity to differentiate that product in a way that's very frequent Pacific.

Dylan Field: We think there's an opportunity to differentiate that product in a way that's very Figma specific, make it more interoperable with the rest of our platform, and really give it a Figma spin that others have not seen with similar tools on the market. I'll pass it to Praveer to speak more.

Make it more interoperable with the rest of our platform and really give it up they must spend that others have not seen with similar tools on the market and all our path to premier.

More yeah, Yeah I appreciate the question and excited to be here I think you know our approach to guidance here is we want to reflect what we know about the business with a high degree of confidence today.

Praveer Malwani: Yeah, I appreciate the question and excited to be here. I think that, you know, our approach to guidance here is we want to reflect what we know about the business with a high degree of confidence today. As we've explained previously, our goal is to be as transparent as possible on what is being included there. As Dylan was sharing, we doubled the product portfolio, rolled a number of these newer products out into beta post-Config and GA Make just recently in July. From an understanding perspective, we're still early in that monetization journey and our understanding of how these products will perform. From an investment perspective, we're not going to shy away from making deeper investments here in the near term in the form of broader sales and marketing pushes, investments in inference.

And as we've explained previously our goal is to be as transparent as possible on what is being included there and so as dawn with sharing we I mean, we doubled the product portfolio rolled a number of these newer products out.

Into beta posts Config N G. Ed make just recently in July and so from a from an understanding perspective, we're still early in that monetization journey and our understanding of how these products will perform but from an investment perspective, we're not going to shy away from making deeper investments here in the near term in the form of a broader sale.

<unk> marketing pushes our investments and in France, we feel that there is a path here to strong returns over the medium to long term and get excited about the potential there.

Praveer Malwani: We feel that there's a path here to strong returns over the medium to long term and get excited about the potential there.

Our next question comes from the line of could be on laborious with Goldman Sachs. Your line is open.

Kate DeLeo: Our next question comes from the line of Gabriella Boris with Goldman Sachs. Your line is open.

Hey, good afternoon, and congratulations to the team on the I T O.

Gabriella Boris: Hey, good afternoon, and congratulations to the team on the IPO. Dylan and Praveer, I wanted to stay on Figma Make for a moment. Maybe for Praveer, could you quantify or give us a little bit of directional color? Are you already seeing an uptake in the full seat? Did you see a change in trend because of Figma Make? For Dylan, tell us a little bit about the competitive environment. You started alluding to it there at the end with being able to integrate into the broader suite of Figma to be able to differentiate yourself. To what extent is this still a greenfield opportunity? Are you having to convince customers that have already played around with other prototyping tools to move over? Maybe just a little bit of feedback from the field. Thank you.

And prefer I wanted to stay on segment make for a moment, maybe maybe if a private could you quantify or give us a little bit of directional color are you already seeing an uptake in the fourth C. Did you see a change in trend because the segment make and sit down and tell us a little bit about the competitive environment you started alluding to it there at the end with.

Being able to integrate into the broadest suite F segment to be able to differentiate yourself to what extent is that still a greenfield opportunity I, having to convince customers that have already played around with other prototyping towards maybe.

Maybe just a little bit of feedback from the field. Thank you.

Yes, I'm happy to start on the make monetization side and then if there's a if there's additional pieces that don't want to speak to on the competition side. We can go there.

Praveer Malwani: Yeah, I'm happy to start on the Make monetization side, and if there's additional pieces that Dylan wants to speak to on the competition side, we can go there. You're right in that we very quickly rolled out from beta to GA, and we're behind the scenes working to build out the billing infrastructure to support future monetization of the product. Today what we've seen is we've broadened from providing usage on our full seat type now to being able to provide usage across all different personas and all different seat types, including our starter plan as we've gotten closer and closer to the GA moment there. While we've allotted different credits based on tier, as a full user on our enterprise tier, you have a higher credit limit than the full user on our organization's tier.

So youre right in that you know, we very quickly rolled out from from beta to Jay and were behind the scenes working to build out the billing billing infrastructure to support among that future monetization of the product and you know today, what we've seen is we've broadened from providing usage on our <unk> type now to now.

Being able to provide usage across all different personas and all different types, including our starter plan as even as we've gotten closer and closer to the G. A moment there and so while we have a lot of different credits based on tier so as a full user on our enterprise tier you have a higher credit limit them a full user on our organization's care, we're not strictly enforcing those limits today for fall.

Praveer Malwani: We're not strictly enforcing those limits today for full seats, but are enforcing those limits on other seat types. We plan on letting customers know that they have the opportunity to purchase additional AI credits in the future, and we plan to be intentional about how we transition folks to feel like they understand the model and can map the value that they're seeing with the value that's being received in the future.

For <unk>, but are enforcing those limits on others. The types. We plan on letting customers know that they have the opportunity to purchase additional AG credits in the future and we and we plan to be intentional about how we transition folks to feel like they understand the model and can map the value that they're seeing with their value.

That's being received in the future.

Yeah, I can take condition.

Dylan Field: Yeah, I can take competition. There are a ton of other tools that are sort of in this vibe coding, vibe designing, vibe whatever you want to call it area. What makes Figma Make unique is the ability to take the design context from Figma into Make, and we believe that there's a lot more that we'll be able to do there in the future to make it so that you're able to create amazing results. We also believe that the interoperability with the rest of Figma will set Make apart in a pretty significant way. There is a lot we're exploring there, and I think that in terms of customer feedback, we are excited to see just all the interest in Make overall, but also the engagement we're getting with customers and the time they're spending with us on this product.

There are a ton of other tools that are sort of in this vibe carrying five designing by whatever you want to call. It a area.

And what makes Sigma make unique is the ability to take the design context from Sigma into make and we believe that there's a lot more that we'll be able to do there in the future.

To make it so that you're able to create amazing results.

And also we believe that the interoperability with the rest of Sigma.

Will that make apart.

Pretty significant way.

So the lots were exploring there and I think that in terms of the customer feedback we are.

Excited to see just.

All the interest and make overall, but also.

The engagement, we're getting with customers and the time, they're spending with us on this product and I.

Dylan Field: I would say that the position we're in from a platform standpoint, I feel, is to our advantage here.

I would say that the.

The position we're in from a platform standpoint.

I feel is to our advantage here.

Our next question comes from the line of Arjun Bhatia with William Blair. Your line is open.

Kate DeLeo: Our next question comes from the line of Arjun Bathil with William Blair. Your line is open.

Yes.

Michael Turing: Yes, perfect. Thank you so much for bearing with me here. I'm losing my voice, so hopefully you can understand me. Dylan, maybe sticking on Make, I think one of the benefits of it, or potential benefits of it, is that it'll attract different personas to create. I'm curious what you're seeing in terms of which types of users are actually using Figma Make, and is it expanding your exposure to different personas across marketing, across product management, and obviously the core design persona as well?

Thank you so much sorry bear with me here I'm, losing my voice. So hopefully you can understand me.

Okay.

Alright, great.

One of the.

Corporate types.

Yes.

Different persona was to create.

And I'm curious, what you're seeing in terms of which types of users are actually using it.

Is it expanding.

Your exposure to different persona of cross marketing.

Okay.

Obviously mature cordova persona as well.

Yeah. Thank you for your question and I Hope you feel better soon thanks for making the time to call in.

Praveer Malwani: Yeah, thank you for your question, and I hope you feel better soon. Thanks for making the time to call in. For Figma Make and personas, I'd say that designers are obviously at our core for Figma. That said, we've seen a range of users get value out of Make. We see it serving not just designers, but also developers, PMs, marketers, really the entire organization can get benefit here. If we just zoom out and think about the core thesis that we talked about at the start of the call, our perspective has been for a long time now, you know, a decade or so, that design is a differentiator. I think that in the age of AI, when software is easier to build than ever, that's even more so the case.

So for people, making persona is I'd say the designers are obviously at our core for pigment.

We've seen a range of users get value out of make.

And we see it serving not just designers, but also developers P. M marketers really the entire organization can get benefit here.

Zoom out and kind of think about the core thesis that we talked about at the start of the call.

Our perspective has been for a long time now a decade or so.

The design is the differentiator.

And I think that in the age of AI when software is easier to build an ever that's even more so the case.

Praveer Malwani: With that, you need to be able to lower the floor, but also raise the ceiling, make it so that you're able to bring more people into the design process. Also, the raising the ceiling part is making it so that you can actually allow professionals to do even more with AI. The interesting thing about Make is that it sort of does both. It invites more people in to express their ideas and to share different perspectives on where you can take a product. It also allows designers and professionals to go more high fidelity. As we think about the AI functionality across our entire platform, I'm very excited about how we can continue to lower the floor and raise the ceiling. I think this is just a start.

And.

With that you need to be able to lower the floor, but also raise the ceiling.

So that you're able to bring more people into the design process.

But also the reason is sealing part is making sure that you can actually allow professionals to do even more with AI.

And the interesting thing about me because that it's sort of that does both.

It invites more people in to express their ideas into share.

Different perspectives on where you can take a product.

But it also allows designers and professionals to go more high fidelity.

And as we think about the AI functionality across our entire platform.

I'm very excited about how we can continue to lower the foreigners are feeling I think this is just the start.

Our next question comes from the line appreciate there's a l'oreal with RBC. Your line is open.

Kate DeLeo: Our next question comes from the line of Rishi Jaluria with RBC. Your line is open.

Oh wonderful.

Brent Bracelin: Oh, wonderful. Dylan and Praveer, thanks so much for taking my question. One common question that we got during the IPO process and post-launching is maybe fast-forwarding a little bit on the AI front. Obviously, Figma Make, great, great to see some of the early traction there. If, in fact, AI ends up being a major paradigm shift and the nature of what we call, quote, software shifts from prepackaged SaaS application to agents and multi-agentic system, can you maybe walk us through why you expect that Figma is still going to be, not just relevant, but market-leading in that new paradigm and that new post-AI software world? Thank you.

Perfect. Thanks, so much for taking my question one common question that we got.

During the IPO process and post launching is maybe fast forwarding a little bit on the AI front, taking obviously pigment made great great to see some of the early traction there, but if in fact AI ends up being a major paradigm shift in the nature of what we call quote software shifts from pre package has application to agents and multi.

<unk> systems can you maybe walk us through why you expect that to take my is still going to be not as relevant but market leading in that new paradigm in that new posting high soccer world. Thank you.

Dylan Field: Thank you for the question, and always down to talk about agents. It's a fun topic. I think that, first of all, I'd say that the narrative around agents is not necessarily where I expect that we'll go with the world, but we'll see over time. Right now, agents are being seen as this kind of black box that will take care of everything for you. Where I think it'll end up is instead, you'll need to have way more surfaces that actually you expose through an agent in order to audit the work it's doing, but also you'll need to integrate agents into your software. With agents and the surfaces that you'll have to design for them, they'll have different constraints than the software that you're designing otherwise. This is just one example of how much multiplication of screens and different targets that you need to design for.

Thank you for the question and always down to talk about agents the fun topic.

I think that.

First of all I'd say that the narrative around agency is not necessarily where I expect that will go with the world, but we will see over time.

I think that right now agents are being seen as kind of black box that will take care of everything for you and where I think it will end up.

Is instead, you'll need to have way more surfaces.

Are you exposed.

Through an agent in order to audit the work, it's doing but also <unk>.

Integrate agents into your software.

And I think that with agents.

And the surfaces that you option designed for them.

Have different constraints than the software that you're designing otherwise.

And this is just one example of sort of how much multiplication of screens.

And Ah different targets that you designed for <unk>.

Dylan Field: I think that the role and the job of a designer will increase in complexity because of that multiplication of surface area. We're also going to see a lot more on different screen sizes, different modalities like VR and AR, as well as, I suspect, different ways of interacting with screens in general. I'm quite excited for that. I think our job for Figma is to make sure that whatever you're designing, we're able to support you. That's what we're focused on.

And I think that is the role and the job of a designer.

We'll increase in complexity.

Because of that multiplication of surface area.

We're also going to see a lot more on different screen sizes.

Different modalities like VR and AR.

As well as I suspect.

Different ways of interacting with screens in general and I'm quite excited for that I think our job for Sigma is to make sure that whatever you're designing we're able to support you and that's what we're focused on.

Our next question comes from the line of my commentary with Wells Fargo. Your line is open.

Kate DeLeo: Our next question comes from the line of Michael Turing with Wells Fargo. Your line is open.

Hey, great. Thanks, very much appreciate you taking the question and congrats to the team on making this milestone.

Michael Turing: Hey, great. Thanks very much. I appreciate you taking the question, and congrats to the team on making it this milestone. Dylan, you mentioned willing to take big swings just as part of the presentation. It's clearly been an amazing journey for Figma thus far. Maybe you and Praveer can speak to how you're thinking about use of cash, given just the $1.6 billion you have on the balance sheet currently, alongside any framework you're using to evaluate what would drive you to take one of those bigger swings going forward. Thanks very much.

Don you mentioned willing to take big swings just as part of the presentation. That's clearly been an amazing journey for FEMA, Thus far maybe you and premier can speak to how you're thinking about use of cash given just the one 6 billion you have on the balance sheet currently alongside any framework, you're using to evaluate what would drive it.

To take one of those bigger swings going forward, thanks very much.

Thanks, Michael appreciate the question I think Youre right, we sit on $1 $6 billion in cash it gives us some flexibility here to invest in some of these newer areas that we've been exploring both.

Praveer Malwani: Thanks, Michael. I appreciate the question. I think we've bought, you're right, we sit on $1.6 billion in cash. It gives us some flexibility here to invest in some of these new areas that we've been exploring, both as we deepen our investments in AI with products like Figma Make in particular, and spend on the inference side as we evolve our sales and marketing presences and strategies there as we seek to take now a full suite and platform that out to market. We've got no shortage of ideas on how we can continue to refine our investment thesis internally, and we expect to pull those levers as we see fit.

As we deepen our investments in AI with product site Hikma make in particular.

Spend on the infant side as we as we evolve our sales and marketing presences and strategy strategies. There as we seek to take off now a full suite and platform that out to market and so we've got no shortage of ideas on how we can continue to refine our investment thesis internally and we expect that.

Pull those levers as we see fit I think you know the reason why we've settled on an on an annual guidance framework for operating margin is because we do believe we're going to find these opportunities throughout the year and want to have.

Praveer Malwani: The reason why we've settled on an annual guidance framework for operating margin is because we do believe we're going to find these opportunities throughout the year and want to be really clear that we intend to find those opportunities and really pounce on them at the right moments. Expect to hear more from us on that in the future. Right now, we feel like we're well capitalized to be able to tackle the ideas that we've got on the table.

And wanted to be really clear that we intend to find those opportunities and really pounce on them.

At the right moment and.

And so I expect to hear more from us on that in the future and right now we feel like we're well capitalized to be able to tackle the ideas that we've got on the table.

Dylan Field: Yeah, and I can add on the framework part. First of all, just reemphasize the Praveer side, which is that we're always scanning and looking at the landscape around us, both in ways that map to the current priorities of Figma, as well as future directions we could go. Sometimes M&A for us is small scale, but we also, as I indicated in my founder letter, are very willing to take big bets if we truly believe in them. What would be that framework for us to do that if we wanted to do M&A at scale? I think it would have to hit three criteria. The first is, of course, it has to be an amazing team and an amazing asset in a way that we think it's a good setup for us to bring in.

Yes, I can add on the framework part.

First of all just reemphasize the career side, which is that we're always scanning and looking at the landscape around us.

Both in ways that map to the current priorities that sigma as well as future directions, we could go.

And sometimes our M&A for US is small scale, but we also as I indicated in my Thunder letter.

We're very willing to take big bets, if we truly believe in them and so it will be that framework.

For us to do that if we wanted to do M&A at scale.

It would have to hit three criteria.

The first is of course, it has to be an amazing team and an amazing asset.

In a way that we think it's a.

That's a good setup for us to bring in.

Dylan Field: A second characteristic I'd be looking at is they would need to be culturally consistent and hopefully actually additive to the culture, bringing new cultural traits that we want to get even stronger on. The third is, I think that going forward, we would have to believe for M&A at scale that whatever we are bringing on maps to a company priority as one of our first or maybe second priorities, but not like a third. If it's in the top two going forward, great. If not, it's probably not for us. I wouldn't limit our scanning and what we're looking at to things that are our current priorities. In order to actually go forward, I would make sure that it maps to something that is a top priority. Of course, it's just the minimum, but that's the three points that I would want to meet at least.

A second characteristic I'd be looking at is they would need to be culturally consistent and hopefully actually additive to the culture, bringing new cultural trades that.

We want to get even stronger on the third is I think that going forward. We would have to believe for M&A at scale that whenever we are bringing on maps to a company priority as one of our first or maybe second priorities, but not like a third so if it's in the top two <unk>.

Forward, great if not its probably not for us.

I wouldn't limit our scanning and what we're looking at two things that are our current priorities.

But in order to actually go forward I would make sure that it maps is something that is a top priority of course is just the minimum but that's the three points that I would want to meet at least and again, we have a very high bar for anything in scale.

Dylan Field: We have a very high bar for anything at scale.

Our next question comes from the line of Lukas Zucchini Noodles Research your line is open.

Kate DeLeo: Our next question comes from the line of Alex Zukin-Godwolski-Serch. Your line is open.

Hey, Thanks, guys.

Michael Turing: Hey, thanks, guys. Maybe I'll ask one on kind of pricing and packaging. Maybe just talk a little bit about how the conversations have gone with your enterprise customers with the new pricing and packaging rollout. Are you seeing anything different from what you initially expected, either positive or negative? Any way to think about the growth contribution from pricing and packaging for the rest of the year based on how the quarter played out?

Maybe I'll ask one on kind of pricing and packaging, maybe just talk a little bit about how the conversations have gone with your enterprise customers with the new pricing and packaging rollout are you seeing anything different from what you initially expected either positive or negative and any way to think about the growth contribution from pricing and packaging for the rest of the year based on how it.

Played out.

Praveer Malwani: Yeah, I really appreciate the question. I think, let me first recap some of the changes that we made in the early part of March of this year. One, we introduced the concept of a multi-product seat, giving more functionality to each user. Second, we changed the admin upgrade experience, effectively empowering our admins to have explicit approval authority prior to a new user being provisioned. Lastly, we increased the price of our full user seat type. In some cases, our customers may see that their spend is increasing with us. In other cases, customers won't actually see any price change. There are cases here where monthly prices will actually go down for a particular customer cohort.

I really appreciate the question and I think you know let me first recap some of the changes that we made are in.

In the early part of March of this year. So one we introduced the concept of a multi product see giving more functionality to each user.

And we changed the admin upgrade experience.

Effectively empowering our admin to have explicit approval authority prior to a new user being provisioned and lastly, we increased the price of our full user seat type.

Some cases, our customers may see that their spend is increasing with us in other cases customers won't actually see any price change.

There are cases here, where where you know a monthly prices will actually go down for a particular customer cohort.

Praveer Malwani: We recognize that as we roll through some of these changes, and we've now had an opportunity to see many of these changes through a few renewal cadences on our pro business, which is majority monthly. We see an initial sort of seat remapping as users, or rather as teams are transitioning, and post that, they end up in a much more predictable expansion pattern. On the enterprise side, which are annual in nature and contracts, while also we sell an annual subscription for parts of our pro tier, we're still phasing in through some of those renewals there. We just completed our first quarter where we've seen that full transition for companies that were going through those initial renewal moments.

And we recognize that.

We roll through some of these changes and we get we've now had an opportunity to see many of these changes through our fruit a few renewal cadences on our pro business, which is majority of monthly.

We see an initial sort of seat re mapping as users are rather is teams are transitioning and post that they end up in a much more predictable expansion pattern and then on the you know the Oregon enterprise side, which are annual in nature and contracts that while also we have we saw an annual.

Subscription for parts of our pro tier we're still facing in through some of those renewals there and so we just completed our first quarter.

Quarter.

We're seeing that full transition for our company is that we're going through those initial renewal moments and while we aren't commenting on the quarterly impact.

Praveer Malwani: While we aren't commenting on the quarterly impact, we do estimate that we'll have a mid to high single-digit tailwind of growth this year due to the changes that we've rolled out.

We do estimate that we'll have a mid to high single digit tailwind of growth. This year due to the changes that we've rolled out.

Our next question comes from the line of Rob Fields with Bank of America. Your line is open.

Kate DeLeo: Our next question comes from the line of Brad Seals with Bank of America. Your line is open.

Michael Turing: Great, thank you so much. I wanted to ask a question about agents and some of the agentic features, really an impressive array of new features that you've launched throughout the different offerings. I wondered if there's any pattern recognition that you're seeing here with regards to usage, engagement, adoption, any themes or trends that you've noticed that maybe stand out to you with regard to usage of those features?

Oh, great. Thank you so much I wanted to ask a question about agents and some of the agenda features really an impressive array of new features that you've launched you know throughout the different offerings I wonder if there's any pattern recognition that you see here with regards to usage engagement adoption.

Any themes or trends that you you've noticed that maybe stand out to you with regard to usage of those features.

Dylan Field: Thank you for the question. I would say that we are still early, especially in the sense that we have so many ideas of how we can improve our AI functionality, as well as add additional AI functionality across our entire platform. I think that the sort of distribution of usage that we see now, while it's showing good amounts of activity, will be fundamentally different as we go forward, and probably not in ways that we can fully predict. We are watching that carefully and making sure we can learn as much as possible from it.

Thank you for the question.

I would say that we are still early especially in a sense that.

We have so many ideas of how we can improve our AI functionality as well as add Additionally, I functionality across our entire platform.

And I think that the.

The sort of distribution of usage that we see now.

While it's showing.

Good amounts of activity.

Will be fundamentally different as we go forward.

And probably not in ways that we can fully predict.

So we're watching that carefully and making sure we can learn as much as possible from it.

Our next question comes from the line of Grand Prix and clubs with Piper Sandler Your line is open.

Kate DeLeo: Our next question comes from the line of Brent Bracelin with Piper Sandler. Your line is open.

Good afternoon, and thanks for taking the question here.

Brent Bracelin: Good afternoon. Thanks for taking the question here. You know, Dylan, I'm trying to understand the Figma Make opportunity. I was hoping you could maybe help size the prototyping market that it addresses. If I go back and look at Figma Design, clearly disrupted the single-player design tools out there. Figma Dev Mode really expanded the user base outside of design into the developers. What does Figma Make bring? Is this a new user base? Do you think this is going to increase ARPU by cross-selling into the installed base? Walk us through the AI prototyping opportunity and what Figma Make brings there. Thank you.

I'm trying to understand it.

The Sigma make opportunity I was hoping you could maybe help size the prototyping market that it addresses if I go back and look at Sigma design clearly disrupted the single player design tools out there figment Dev mode really expanded the user base outside of design and to develop.

Dylan Field: For sure. I'd say that, first of all, I don't see Figma Make as just prototyping. I see it as a way to prototype as well, but also you can go from prompts to working app and actually ship what you have. I think that in terms of personas, what I believe we will see in the long term is expansion of the personas that are doing more complex editing tasks on the Figma platform and creation tasks. If you think about it, if design is a differentiator, it's how you win or lose. If you accept that as the premise in this age of AI and easier to build software, I think you really want to make sure that great ideas are coming from everywhere.

I'd say that first of all I don't see stigma make is just prototyping.

I see it as a way to.

Prototype as well, but also you can go from prompts to working up and actually ship, but you have.

I think that in terms of personas.

I believe we will see in the long term.

Is expansion of the percentages that are doing more complex editing tasks.

On the Sigma platform and creation tests.

And if.

If you think about it.

Again, if designers differentiator is how you win or lose if you accept that as the premise in this age of AI and easier to build software.

And then.

I think you really want to make sure that Cree ideas are coming from everywhere.

Dylan Field: I think it's very important to be in a world where you have all the context that you need, not only the context from your visuals or your user flows or your brand, but also culture, business constraints, and insights across your organization. Figma Make opens up that opportunity for more people to contribute to the design process. I also think that if you conceptualize design as this branching path where you're looking at a full option space and trying to figure out which of the branches to go down, Figma Make helps you really explore that option space faster and get to an insight around where you want to go deeper on so that you can add your own craft as a human. You can add your own point of view.

And also I think it is very important.

To be in a world, where you have all the context that you need.

Not only the context from your visuals are your user flows or your brand, but also culture business constraints.

And insights across your organization, taking will make opens up that opportunity for more people to contribute to the design process.

I also think that if you conceptualize design as this branching path.

You're looking at a full option space.

And trying to figure out which of the branches to go down.

Figure make helps you really explore that option space faster and get to and insight.

Around where you want to go deeper on that you can add your own crafted the human you can add your own point of view we.

Dylan Field: We can help with that through Figma Make in order to help designers, but also everyone else in the organization accelerate ideas further, and designers can help lead that transformation.

We can help with that through if they're going to make in order to help designers, but also everyone else in the organization accelerate I guess further and designers can help lead that transformation.

Ladies and gentlemen that concludes today's call. Thank you all for joining you may now disconnect.

Kate DeLeo: Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect. You are muted.

You are muted.