00:00We do have to address, though, I mean, investors have been nervous about you guys.
00:04The stock's down about 80% from the post-IPO highs.
00:08And we've seen the software space in particular,
00:11investors kind of trying to figure out the AI impact on lots of different sectors, including yours.
00:17So grappling with the defensibility of FIG's mode against AI-native players and competitors
00:23or the potential for general AI efficiencies to kind of weigh on seats.
00:27So walk us through, should investors be worried?
00:30What impact is AI disruption really having on your company?
00:35Yeah, well, first of all, thank you for having me.
00:37And really appreciate the chance to be on the show with you.
00:41Yeah, I think it's, I can offer always a point of view,
00:47but I can't tell investors what to think or not think.
00:49They're going to do that on their own.
00:51But for us, 2025, we look back on as a massive year for Figma.
00:57And our fourth quarter was our best quarter yet.
01:00We saw growth acceleration.
01:02We delivered $304 million in revenue last quarter.
01:06And that represented an accelerated year-over-year growth rate for the quarter of 40%.
01:14And for us, we look at the business and go, okay, as AI gets better, Figma gets better.
01:21And I think everyone should be thinking that way.
01:23As AI gets better, does your company and your products, do they also get better?
01:29We're also shipping faster than ever.
01:30Last year in 2025, we went from four to eight products.
01:35And we also launched over 200 features.
01:38And that growth and that momentum has not slowed down.
01:42The velocity continues.
01:44And actually this week, we just launched an integration with Cloud Code,
01:48where Cloud Code can now go to Figma design.
01:51So you can take the code you're working on and then take that state of the application
01:56and then move it into Figma design.
01:59We can talk more about the benefits and why we did that later.
02:01But we're really excited because right now we are seeing people start in so many different places,
02:09whether it be a terminal, a prompt, or user interface designed to like Figma.
02:13We want to make sure that Figma is the place where it all can come together.
02:18And that's the platform that we're building.
02:20And if we can do that, I think that we are in a place where we can capture a massive
02:27opportunity.
02:28So we're very focused on building that platform to make that feature possible.
02:32Still, I wonder about the message to investors who may be concerned about LLMs or just AI
02:39actually affecting your core business or your core features.
02:43As the stock of the company gets lumped in with sort of like all of the SaaS play
02:49and this idea of a SaaSpocalypse, what would you say to investors out there
02:52who are a little gun shy when it comes to software stocks right now?
02:57I think that the best thing to do is to actually understand companies from first principles.
03:07And again, to me, the first and most obvious test is, okay, if AI and models are getting better,
03:16which I think is everyone's base case right now that we're going to continue to see
03:21really significant increase in capabilities, then does the company get better too?
03:28And for Figma, we passed that test.
03:31We are, a year ago, we didn't have any notion of AI credits in the platform.
03:36Now we see more than 75% of our paid customers who are over 10K in ARR.
03:48They're consuming AI credits every week in Q4, as of Q4.
03:53And that, I think, speaks to some of the traction that we're seeing with our AI offerings.
04:01And also, over half of our large customers, they're building with our product Figma Make,
04:06which is a way to go from prompting and Figma design to working application.
04:12Over half of those large customers are building in Figma Make on a weekly basis.
04:18And so, that's, and that's up, by the way, from 30% in Q3.
04:22So, significant increase, 30% to 50%.
04:26And I think overall, the platform is just very well positioned if you think about the
04:32product development lifecycle.
04:35Not everyone is thinking in code.
04:38A lot of people want to think visually.
04:40And if you can go create that map of what the software can be, and if you're not just
04:47urgently driving towards a solution, but rather you share our point of view, which is in a
04:53world of ever-increasing competition in software, you don't just need to make a product.
04:58You need to make the best product.
05:00You need to lean in, actually have design as a differentiator, craft as a differentiator.
05:06You need a point of view.
05:07Then, you need to select from this infinite option space out there of possibilities and
05:12curate the ones that are actually the best options for you to go build.
05:17And that's not work that is done in code.
05:20Code is linear.
05:21It's a linear process.
05:23You need to go and actually consider the full option space to go build the best thing.
05:28And that's what we're trying to enable for our customers.
05:31So, how do you think the world, I mean, Dylan, this is great because I think we're trying
05:35to understand, especially when we see these sectors impacted by this AI scare of just trying
05:40to understand how this is unfolding.
05:43And yet, kind of, would you agree that the AI disruption that we're seeing unfold and maybe
05:49impact certain sectors is kind of happening a little bit faster than we expected?
05:53At the same time, everybody seems to come on and say, we're really early in, you know,
05:59when it comes to this process.
06:01So, even if you are kind of somewhat upbeat, would you can see that we're not quite sure
06:06exactly how this might shape your company or, you know, how this all impacts how we work
06:13going forward?
06:13I mean, there's still a lot to be figured out, right?
06:17Well, I think, again, there's frameworks you can use that are good tools here.
06:20So, for example, I think that you can broadly bucket verifiable versus non-verifiable, and
06:29perhaps it's a spectrum, not a binary.
06:31But math, for example, as verifiable as it gets, you can understand if something that is
06:40a math theorem that AI generates, you know, is provably correct based on, you know, formal
06:48verification systems.
06:49And because of that, we're going to see incredible progress in mathematics.
06:54I mean, it is just amazing what we're going to see in math.
06:58Code is closer to math in terms of its verifiability.
07:03Design, totally not verifiable.
07:06You could have five designers in a room debating what is the best design, and you could get like
07:1210 or 20 or 30 opinions from those five designers.
07:15It is something that is, you know, very subjective.
07:21And yet, if you get it right, and you can lean into craft, and you can lean into design as
07:25a
07:25differentiator, that is how you're going to win in software.
07:29And also, it's not just that SaaS companies are software businesses, and that's it.
07:35Every company is a software business today.
07:37Yeah.
07:37And so, I think that every company really needs to figure this out.
07:42And if they can lean into design and really treat it with the reverence it deserves, then I think they
07:47will have a path to winning.
07:49But I think the ones that don't are going to have a hard time.
07:53Well, part of that path includes spending big when it comes to AI and working to improve those features and
07:58bring those features to your customers.
08:00How much are you spending on AI tokens?
08:03How much are you spending on the models?
08:07Yeah.
08:09You know, we are not trying to be a frontier lab, first of all, just to be super clear about
08:14that.
08:15You know, that's a game that we're not playing, you know, and kudos to those that do.
08:21They are our partners, and we're very lucky to partner with them, and also they're our customers.
08:25And it is, I think, very exciting to see how they're using Figma to help shape these surfaces.
08:33But, yeah, you can see the spend around inference show up in our gross margin.
08:41And I think that we did well to hold that flat, and definitely we're always looking at ways to be
08:50more optimization focused.
08:52But also, you can see it as a proxy through how make weekly active users, which we disclosed as well,
09:03grew 70% quarter over quarter.
09:07And I think that the way that the overall activity is growing in the platform as it relates to not
09:18just that, but also the way that people are using some of our AI image generation capabilities and other AI
09:25features in Figma is really just a start.
09:29Like, we believe that make and Figma design, and Figma design is our flagship design tool, whereas make is about
09:39going from prompt to working app with Figma.
09:42We can try to bring those surfaces closer together, because so many of our users that are using make on
09:50active basis are also using Figma design.
09:54It is the majority case by far.
09:56And so if we can bring those closer together and have them live as one experience and help people really
10:02think divergently, explore options basis, but also use their hands, get into it.
10:08You don't want to prompt and say, you know, change it to 12 pixels spacing, like, and then takes two
10:14minutes to go see if you're right or not.
10:16Like, you want to go have that direct manipulation flow state and actually see what it is that you want.
10:23And I think there's things that are going to do in prompt and things that are going to do with
10:28direct manipulation with design tools like we've done for a while.
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