Core Insights - Figma is experiencing significant growth due to an expanding clientele and a focus on AI-native workflows and product innovation [1][3] - The introduction of Figma Make, an AI-powered tool, has contributed to increased customer engagement, with 30% of high-spending customers using it weekly [2][4] Customer Growth and Retention - In Q3 2025, Figma added over 90,000 paid teams, reaching a total of 540,000 paid customers, driven by new product adoption [3][9] - As of September 30, 2025, Figma had 12,910 customers with over $10,000 in annual recurring revenue (ARR) and 1,262 customers with over $100,000 in ARR [4][9] - The net dollar retention rate for customers with over $10,000 in ARR increased to 131%, reflecting strong customer adoption of new products [4][9] Competitive Landscape - Figma faces intense competition from Adobe and Atlassian, both of which are enhancing their AI capabilities and expanding their customer bases [5][6] - Adobe's partnership with Google Cloud aims to integrate advanced AI models into its creative ecosystem, enhancing its offerings [5] - Atlassian's collaboration with Google Cloud focuses on integrating generative AI features into its software, which is expected to drive revenue growth [6] Stock Performance and Valuation - Figma's stock has declined by 50.4% over the past three months, contrasting with a 10.9% increase in the broader Zacks Computer & Technology sector [7] - The forward 12-month Price/Sales ratio for Figma is 12.17X, significantly higher than the sector average of 6.63X, indicating a premium valuation [10] - The Zacks Consensus Estimate for Figma's 2025 earnings is 41 cents per share, reflecting a 110.96% increase from the previous year [12]
Figma Benefits From Expanding Clientele: A Sign for More Upside?