Takeaways by Saasverse AI
- Revenue: $274.2M (38% YoY Growth) | Non-GAAP Operating Income: $34M | Operating Margin: 12%.
- AI and Product Performance: Figma Make and AI-powered tools drive adoption; enterprise customers with $100K+ ARR hit 1,262, with NDR at 131%.
- Other Highlights: Upward FY2025 guidance; stock rises 6% post-earnings; notable AI-driven acquisitions and OpenAI partnership.
Figma delivered a stellar performance in Q3 FY2025, reporting revenue of $274.2 million, up 38% year-over-year, and achieving a historic milestone by surpassing the $1 billion annualized revenue run rate. The company’s continued investment in AI-powered tools, such as Figma Make, and strategic acquisitions, including the AI-native creative platform Weavy for $200 million, have been instrumental in driving growth. Additionally, the company raised its full-year revenue guidance to a range of $1.044 billion to $1.046 billion, exceeding prior expectations.
Figma’s robust quarter was anchored by its thriving enterprise business, with the number of customers generating over $100,000 in annual recurring revenue (ARR) climbing to 1,262. The net dollar retention rate for customers with over $10,000 ARR stood strong at 131%, underscoring the company’s ability to grow existing accounts. Non-GAAP operating income came in at $34 million, reflecting a 12% operating margin, despite elevated R&D spending on new AI products.
CEO Dylan Field highlighted the transformative role of AI in redefining software development workflows, stating, “AI is shifting the center of value creation into the design phase. Our platform is enabling anyone to move seamlessly from idea to product.” The launch of Figma Make in July, which converts text descriptions into functional prototypes, and its integration with OpenAI’s ChatGPT, have opened the door to vast new user segments. The ChatGPT collaboration positions Figma as a key player in conversational design, potentially capturing millions of additional users.
The market reacted positively to the results, with Figma’s stock rising over 6% in after-hours trading. However, the company’s stock price remains under pressure, currently trading below $50 after peaking at $142 shortly following its IPO in July. Concerns over valuation, slower profitability due to AI investments, and competition from Adobe loom large in investor sentiment.
Looking ahead, CFO Praveer Melwani acknowledged the short-term pressure on margins due to ongoing investments in AI and product development but expressed confidence in the commercial potential of these innovations. For Q4, Figma projects revenue between $292 million and $294 million, ahead of Wall Street estimates of $282.9 million.
Saasverse Insights
We see Figma’s strategic embrace of AI and its expanding product ecosystem as key differentiators in the competitive collaboration tools market. However, maintaining growth while addressing profitability concerns and countering competitive threats will be critical for long-term success. With its upwardly revised guidance and increasing adoption of AI-driven solutions, Figma appears poised to sustain its momentum into 2026.