Financial Data and Key Metrics Changes - Figma reported Q3 revenue of $274 million, representing a 38% year-over-year growth and crossing a $1 billion annual revenue run rate, marking the best quarter in the company's history [5][21][30] - The non-GAAP operating margin was 12%, with an adjusted free cash flow margin of 18% for the quarter [6][28] - The gross profit for Q3 was $237 million, resulting in a gross margin of 86% [25] Business Line Data and Key Metrics Changes - The net dollar retention rate increased by two percentage points to 131%, driven by faster customer adoption of new products [6][24] - Figma ended Q3 with 540,000 total paid customers, up from nearly 450,000 at the end of Q1, adding over 90,000 paid teams in just two quarters [23] - More than 70% of customers were using three or more products, indicating strong multi-product adoption [23] Market Data and Key Metrics Changes - International revenue grew approximately 42% during Q3, outpacing domestic growth [80] - The company is seeing broader interest in its Governance Plus add-on across various sectors, indicating a growing market presence [24] Company Strategy and Development Direction - Figma is focused on building AI-native workflows and investing in product innovation to maintain long-term market leadership [22][29] - The company aims to enhance interoperability across its products, making it easier for users to transition between different stages of the design process [63] - The acquisition of Weavy is expected to enhance Figma's platform by integrating AI model outputs with professional editing tools [19][37] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, raising revenue and operating income guidance for Q4 and the full fiscal year due to strong business performance [30] - The company is committed to investing in AI and product development, even at the cost of near-term margins, to build a robust long-term platform [10][29] Other Important Information - Figma launched over 50 new features in Q3, enhancing product capabilities and customer workflows [7][8] - The company is actively integrating with other platforms, including ChatGPT, to expand its functionality and user engagement [17][74] Q&A Session Summary Question: Insights on Weavy's integration and its impact on user base - Management highlighted that Weavy allows for a modular approach to using AI model outputs, enhancing the creative process and potentially expanding the user base [36][38] Question: Tangible results from Figma Make and its adoption - Figma Make is driving high engagement among new personas, allowing for faster validation of ideas and increased production capabilities [42][45] Question: Strength in new paid customers and market dynamics - The growth in new paid customers is balanced across international and domestic markets, with international revenue growing slightly faster [80][81] Question: Future expectations for net dollar retention - Management expects continued strength in net dollar retention due to the platform's appeal and the successful rollout of new products [75][76] Question: Impact of OpenAI integration on Figma's business - The integration with OpenAI is still in early stages, but management is optimistic about its potential to enhance user experience and drive engagement [73][74]
Figma(FIG) - 2025 Q3 - Earnings Call Transcript