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Figma CFO says design platform willing to put margins on the line to boost AI demand

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Figma CFO says design platform willing to put margins on the line to boost AI demand

Business News Tech AI Figma CFO says design platform willing to put margins on the line to boost AI demand

Figma CFO says design platform willing to put margins on the line to boost AI demand

Figma's CFO acknowledged that fluctuating gross margins may not recover to former levels due to substantial investments in AI initiatives, aimed at enhancing user experience. The company is focusing on features like design assistants and prototype tools to lure more customers. To boost earnings, Figma has also rolled out a usage-based pricing model for AI credits. However, fears surrounding diminishing margins have negatively impacted its stock performance this year.

Figma 's CFO said on Thursday it was uncertain if the design software firm would return to peak gross margin levels as it ramps up AI spending, but said the investments will help draw users and better compete with sophisticated tools from labs such as OpenAI and Anthropic. The company has been spending heavily on AI features, including its Figma design assistant and tools that can create prototypes and web applications using text prompts, which have helped drive a steady surge in revenue but weighed on margins. "Are we going to get back to the low-90s gross margin percentage? I don't know. But is that the thing I would be acutely focused on? No," CFO Praveer Melwani told the Reuters Global Markets Forum on the sidelines of the company's Config user conference in Bengaluru, India.

Figma's quarterly gross profit margins have shrunk to the mid-80% range over the past year, down from above 90% historically.


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