Figma jumps as AI push boosts software design spending

Feb 19 (Reuters) - Shares of Figma FIG.N rose around 14% before the bell on Thursday as investors cheered the software design provider's strong revenue forecasts and commentary around its artificial intelligence ambitions.

Figma has become a popular choice for design among diverse groups, including enterprises and freelancers, as it allows users to execute every step of the creative process - from ideation and brainstorming to coding and shipping - on a single platform.

To grow its foothold in a highly competitive market, Figma has embedded AI into its platform to attract more users - a strategy also employed by larger rival Adobe ADBE.O, as they tussle for customer dollars.

Figma on Wednesday forecast 2026 revenue of between $1.36 billion and $1.37 billion, compared with estimates of $1.29 billion, according to data compiled by LSEG.

Starting in March this year, the company will also shift to a hybrid monetization model by selling AI credits.

"We will begin enforcing credit limits ... for power users that go over those embedded credit limits, we'll be selling add-ons," Figma's chief financial officer Praveer Melwani told Reuters in an interview on Wednesday.

However, investments in AI and business operations, and stock-based compensation are pushing up overall costs. Executives have previously said that AI spend will weigh on gross margins.

If current gains hold, Figma is set to add over $1.7 billion to its market value.