Figma, Inc. Class A

Good day, everyone, and welcome to the Figma Q1 2026 earnings call. At this time, I would like to hand the call over to Mr. Brendan Mulligan. Please go ahead.

Good afternoon, and thank you for joining us on today's conference call to discuss Figma's results for the first quarter of 2026. On the call, we have Dylan Field, Figma's co-founder and chief executive officer, and Praveer Malwani, our chief financial officer. During the course of today's call, we will make forward-looking statements, including, but not limited to, statements regarding our guidance in future financial performance, market demand for our products, including adoption of Figma Make and other AI features, our product development plans, business strategies and plans, and our ability to attract and retain customers and compete effectively. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date. And we disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements. Information concerning our risks, uncertainties, and other factors that could cause results to differ from these forward-looking statements are included in our filings with the SEC. including our quarterly report on Form 10-Q for the three months ended March 31, 2026. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from GAAP measures. Our non-GAAP financial measures exclude the effect of our GAAP results of stock-based compensation and certain other items. Reconciliations of non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call, which is posted to our website. I would now like to turn the conference call over to Dylan.

Hello, everyone, and thank you for joining. I'm looking forward to sharing the results of another incredible quarter at Figma. First, though, let me tell you how I'm thinking about the opportunity ahead. Anyone building software today knows that we are living through an extraordinary time. Because with AI, what used to take months can now ship in sometimes an afternoon. Code is more plentiful, easier to write, and the distance between an idea and its implementation is collapsing. You've heard me say it many times in the past. When execution is cheap, design and creativity are the edge. And now it's not only me saying it, the entire world sees it too. The bottleneck has shifted away from can we build it and toward can we imagine something that's worth building? More design tools are launching. More people are creating. More software is now being built than ever before. And in this world where bits are abundant, what's scarce is human creativity, actual point of view, care, and craft, and judgment. This is what makes a product, a company, a campaign cut through the noise. Designers, builders, and creatives, they all need tools that let them explore without limits and express their vision exactly as they imagined it. And that is what Figma has always been built for. Our Q1 numbers reflect this momentum. Here are a few highlights. In Q1, 2026, revenue grew 46% year over year to 333 million, accelerating from 40% last quarter and 38% in Q3. Growth came from across our business. Seed expansion, retention, enterprise adoption, new users, and of course, AI. Through Figma Weave, our broader AI capabilities, and early traction from AI credit monetization, which started on March 18th. Net dollar retention rate also increased to 139%, our highest rate in over two years. This is up three percentage points from last quarter. We also continue to generate strong cash flow. Non-gap operating margin was 16% in the quarter. Free cash flow was 27%, and we ended Q1 with $1.6 billion in cash, cash equivalents, and marketable securities. Thank you to the Figma team for your focus and for your execution. I'm also especially proud of how our team is adapting to new ways of working with AI during this time of exponential change. The momentum we've built gives us the confidence to raise our revenue and non-gap operating profit guidance for the year. Praveer will share more details on that in just a moment. But the story of our quarter, of course, goes far beyond the numbers. We're seeing our customers go bigger and deeper with Figma. So let me share a few examples. First, Google. Google is a longtime Figma customer. Many of their most iconic products have been designed and built on our platform. As they build the next generation of AI-native products, they're doubling down on Figma. The team designing agentic Gemini experiences for millions of enterprise customers uses Figma end-to-end as their single source of truth from the earliest concept work all the way through to shipping. In their words, they can only, quote, get to a level of detail that we want in Figma. That's not possible with vibe coding, end quote. Lufthansa is another example of a customer going deeper with Figma to drive real innovation. Their Lido navigation product design team used Figma Make to prototype Lido MPilot, an integrated iOS charting app that streamlines flight navigation for commercial pilots. They did it with a level of fidelity that goes well beyond traditional prototypes, though. By connecting Figma Make to their in-house API, the team could prototype dynamic, interactive map features. That way pilots could test real gestures before any production code was written. As they put it, pilots could really imagine what we were trying to show them. We validated our concepts before touching implementation. That's the goal of every product team, and we actually did it. Teams aren't just going deeper with Figma. We're seeing broader adoption across the organization as well. Rocket Mortgage, for example, serves one in six American homeowners, unifying multiple brands and technology stacks into a single home ownership platform. To help scale that vision, the team built their design system directly into Figma Make as a shared template infrastructure for their entire org, accelerating adoption well beyond their design team. As design engineering lead Will Hovik describes it, we're seeing adoption across the organization. Teams across Rocket are now using Figma Make to rapidly build dashboards, craft presentations, and explore new customer experiences, all built on top of our shared design system and brand foundations. design director Emily Strobel had this to say on why it's resonating. We've all experienced AI tools that just don't quite hit the mark or reflect our brand standards. Embedding our design system into Figma Make has fundamentally changed that. In some cases, expansion goes even further beyond product development altogether. At NBBJ, one of the world's leading architecture firms, Figma Weave, formerly known as Weavey, is changing how they win business. NBBJ's architects are subject matter experts in the industries that they design for. Their work is about understanding how a space needs to function, not just how it looks. So pitching a client used to mean commissioning photorealistic renders from an external studio. And that process took days and returned only one or two versions with little room for refinement. And now, architects at NBBJ can just do it themselves. Figma Weave lets them translate their 3D models into precise, photorealistic renderings. They're able to generate and refine in real time, pushing until the result meets the exact bar that their work demands, dialing in time of day lighting, grounding design, and actual urban context, and getting the materiality just right. Figures placed at human scale make a ceiling height or entry sequence immediately legible to a client. The result is a faster pitch, a stronger presentation, and full creative control from start to finish. Adoption of Weave at NBBJ is expected to triple in the next three months. Across these customers and countless others, Figma remains the place where teams with the highest bar come to do their best work. Teams that know that creativity and craft are what will set them apart, they need tools that can match that ambition. Tools that let them explore freely and express their vision without limits. That's who Figma is built for. Our platform is where creativity lives and compounds, where teams can move quickly on their first idea and push further, questioning, refining, iterating with the best of AI, code, and direct manipulation until the work is unmistakably theirs. We see this in how our customers actually work. As of Q1, around 60% of our largest customers used Figma Make on a weekly basis. And over 80% of Make users on full seats continued using Figma Design for visual editing and broader exploration alongside Make. We love seeing how the ambition of our users and our community is always growing. and we are moving faster than ever to meet it. In the last few months, we shipped major updates to Figma Make that let users bring their own context into every prompt and give them more control over every decision as they build. We introduced new MCP capabilities that let agents read and write directly to Figma files so that teams can stay in control. In Q1, MCP weekly active users and design grew 5x quarter over quarter. And we shipped updates to Figma Weave, including a timeline editor for refining AI-generated video. Figma Make has driven the most AI usage so far, but MCP, Figma Weave, and our AI assistant, which is currently in alpha, are meaningfully expanding the surface for AI consumption in Figma. All of this builds on what has made Figma the choice for the world's best teams building the world's best software. First, a performant enterprise-grade multiplayer canvas and platform where humans and agents can work side by side with no silos, no handoffs, just the best ideas rising to the top. Second, deep product context that makes AI actually useful. The institutional taste, the historical decisions, the accumulated understanding of how your product should work and feel. And third, full creative control, the ability to prompt, code, and manipulate visually all in one place, unlocking the full power of AI. without giving up intent or the full range of what you can imagine. Because in a world of abundant software, all this together is what it takes to build products that stand out. and the companies that figure out how to harness human creativity alongside AI, those companies will define what the next era of software and creativity looks like. Having spent over a decade building for the most creative community on the internet, this is our moment. I cannot wait for you all to see what we're shipping over the next weeks and months, including at Config, our annual user conference in June. With that, I'll pass it to Praveer.