Leadership1 publisher2 min readPublished Updated
Figma's gross margin fell about four points year over year as it logged its first full quarter of AI credit monetization
Revenue rose 48% to $370.1 million and Figma raised its full-year outlook. Gross profit grew 40%. That eight-point gap is where selling AI by the credit shows up in the accounts of a company that still sells seats.
The Board Room · Leadership desk
What happened
- Figma reported second-quarter revenue of $370.1 million, up 48% year over year and above its own guidance range, the third consecutive quarter in which year-over-year growth accelerated.
- CFO Praveer Melwani called it a record quarter and the company's first full quarter of AI credit monetization.
- More than 80% of paid customers with over $10,000 in annual recurring revenue were consuming AI credits weekly as of June 30.
- The company raised its full-year revenue guidance, attributing the increase to sustained seat expansion and AI adoption.
- GAAP loss from operations was $117.3 million against non-GAAP operating income of $36.1 million, a spread the company ties to higher sales and marketing spend.
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Why it matters
- constraint Each incremental credit dollar carries a delivery cost inside cost of revenue, so a finance team planning a credit line cannot model it at the margin a seat earns.
- capability Weekly credit usage gives Figma a revenue line that grows between renewal dates without waiting for the customer to add headcount.
- exposure Investors are underwriting a year of credit consumption they cannot see broken out, and a slowdown in weekly usage would land on the guide before it shows up in reported revenue.
- precedent Peers introducing consumption pricing can now point to a listed comparable that folded credits and seats into a single retention figure.
Divide the revenue line by 1.48 and last June's quarter comes out near $250 million. Do the same to GAAP gross profit, which the release says grew 40%, and the year-ago figure lands near $221 million. That implies a gross margin then of roughly 88%, against 84% this quarter. Both growth rates are rounded in the release, so read the four points as approximate. Credit delivery costs sit in cost of revenue, above the operating line, and Figma did not break out what moved inside it.
Praveer Melwani, Figma's CFO, said "Net Dollar Retention Rate remained strong at 136% as customers expanded both seats and AI credit add-ons." One number covering two motions tells a buyer that the cohort spent 36% more than it did a year earlier. It does not say how much came from adding seats and how much from consuming credits. Pricing committees are arguing about that distinction internally, and this quarter does not settle it. The release shows the two grew in the same three months without the aggregate rolling over.
Part of the acceleration could be conference timing. Config landed inside the quarter, the products announced there were days old, and enthusiasm for a new agent is cheap in the weeks after a keynote. The customer counts push back, at least on breadth: 15,964 paid accounts above $10,000 in ARR, up 34% year over year, and 1,635 above $100,000, up 46%. The larger cohort is about a tenth the size of the smaller one and growing faster. More than half of the $10,000-plus accounts were using the Figma agent as of July 31, a month after the books closed.
Dylan Field, Figma's CEO, said "as code gets commoditized and value moves up the stack, the opportunity ahead of us has only grown." Sold by the credit, that value appears twice in the accounts: once in revenue, once in the cost of serving it. Figma ended June with $1.7 billion in cash, cash equivalents and marketable securities, and generated $53.2 million of free cash flow at a 14% margin.
What to watch
- Whether Q3 gross margin holds near 84% or keeps compressing as credit consumption grows.
- Whether Figma begins reporting AI credit revenue, or credit-only retention, separately from seats.
- Whether non-GAAP operating margin recovers above 10% once Config spending drops out of the comparison.