Figma Is A ‘Compelling AI Story,’ Already Crossing $1 Billion In Revenue

Design software company Figma Inc FIG raised $1.22 billion in an initial public offering in July.

Here are some analyst initiations.

JPMorgan analyst Mark Murphy initiated coverage with a Neutral rating and price target of $65.
RBC Capital Markets analyst Rishi Jaluria initiated coverage with a Sector Perform rating and a price target of $75.

JPMorgan: Figma has mentioned certain growth levers that it plans to use, “including pricing & packaging, potential large-scale M&A (mergers and acquisitions), and new product releases,” Murphy said. A potentially strong revenue contribution from Figma Make, the company’s “key emerging AI product,” is also among the growth levers, he added.

Figma’s revenue is crossing the $1 billion mark and its core product is “already considered an industry standard,” the analyst wrote. The company has sound AI-related positioning and potential for the near to intermediate term, he further stated.

RBC Capital Markets: Figma has 13 million monthly active users (MAUs) and over 450,000 paid customers, Julari said.The company services 95% of the Fortune 500 and 78% of the Global 2000, including Microsoft Corp MSFT, Google-parent Alphabet Inc GOOG, Uber Technologies Inc UBER, Netflix Inc NFLX and New York Times Co NYT, he added.

Figma is a “compelling AI story” that is “investing aggressively in embedding AI throughout the platform, including products like Figma Make, an AI-powered prototyping tool, FigJam AI, and Dev Mode MCP server,” the analyst wrote. These investments could exert pressure on gross margins in the near term, he further stated.

FIG Price Action: Shares of Figma had declined by 8.69% to $70.58 at the time of publication on Monday.

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