Figma (NYSE:FIG) shares were up 9% ahead of the opening bell in New York on Thursday after the design software company beat analyst expectations on earnings and revenue and issued guidance well above forecasts.
After Wall Street's close on Wednesday, the company reported fourth-quarter revenue of $303.8 million, up 40% year on year, against analyst expectations of $293.15 million, while adjusted earnings per share of $0.08 edged past the $0.07 forecast.
For the first quarter, Figma guided for revenue of $315 million to $317 million, implying growth of 38% and comfortably ahead of the $292 million consensus estimate, while full-year revenue guidance of $1.366 billion to $1.374 billion also surpassed the $1.29 billion analysts had expected.
Investors were encouraged by signs that AI is becoming a meaningful revenue driver, with Figma set to begin enforcing monthly usage limits on its AI tools in March, after which customers will pay based on consumption or subscribe to AI credit packages.
Net dollar retention, a measure of how much existing customers are spending over time, rose to 136% from 131% in the previous quarter.