[Management View]
Figma reported $250 million in revenue for Q2 2025, marking a 41% YoY growth and setting a new quarterly revenue record. The company emphasized its strategic focus on AI investments and product innovation, launching four new products: Figma Make, Figma Draw, Figma Sites, and Figma Buzz.

[Outlook]
Management guided Q3 revenue to be between $263 million and $265 million and full-year revenue to range from $1.021 billion to $1.025 billion, implying 37% growth at the midpoint. Full-year operating income is projected to be between $88 million and $98 million.

[Financial Performance]
- Revenue: $250 million, 41% YoY growth
- Net Dollar Retention Rate: 129%
- Gross Margin: 90%
- Operating Margin: 5%
- Adjusted Free Cash Flow Margin: 24%
- Cash Position: $1.6 billion

[Q&A Highlights]

Question 1: Dylan, as you walked through earlier, Figma showed an accelerated pace of innovation and doubled the size of the product portfolio earlier this year. While understanding it's still early, just given the change in the scale of the portfolio and the areas that you're addressing, is there any context you could provide on how we should think about the ramp of new products or the monetization of new seat types maybe relative to prior product rollouts for DevMode or FigJam?
Answer: For new products, we are still early in the life cycle. Initial engagement has been very exciting, especially for FigmaDraw, which covers more use cases than expected. Figma Sites is popular among freelancers and some enterprise customers. Figma Buzz is generating a lot of energy and interesting feedback. Figma Make is a big priority, and we see an opportunity to differentiate it significantly. We are making deeper investments in sales, marketing, and inference to support these products.

Question 2: Dylan and Praveen, wanted to stay on Figma Make for a moment. Maybe for Praveen, could you quantify or give us a little bit of directional color? Are you already seeing an uptick in the full seat? Did you see a change in trend because of Figma Make? And for Dylan, tell us a little bit about the competitive environment. To what extent is still a greenfield opportunity? Are you having to convince customers that have already played around with other prototyping tools to move over?
Answer: We rolled out from beta to GA quickly and are building the billing infrastructure for future monetization. We are seeing usage across all seat types, with higher credit limits for enterprise users. We plan to offer additional AI credits for purchase. Competitively, Figma Make's unique ability to integrate design context from Figma sets it apart. The interoperability with the rest of Figma is a significant differentiator. Customer feedback has been very positive, and we are excited about the engagement and interest.

Question 3: Bill, maybe sticking on make, I think one of the benefits of it or potential benefits of it is that they'll attract different personas to create. I'm curious what you're seeing in terms of which types of users are actually using FigmaMake and is it expanding kind of your exposure to different personas across marketing, across product management, and obviously, the core design persona as well?
Answer: Designers are at our core, but we see a range of users, including developers, PMs, and marketers, getting value from Make. It lowers the floor and raises the ceiling, allowing more people to participate in the design process while enabling professionals to achieve higher fidelity. This aligns with our belief that design is a differentiator, especially in the age of AI.

Question 4: One common question that we got, you know, during the IPO process and post-launching is maybe fast-forwarding a little bit on the AI front. You know, obviously, Pigma made great to see some of the early traction there. But if, in fact, AI ends up being a major paradigm shift and the nature of, you know, what we call, quote, software shift from prepackaged SaaS application to agents and multi-agent systems, can you maybe walk us through why you expect that Figma is still going to be not just relevant, but, you know, market-leading in that new paradigm and that new post-AI software world?
Answer: The narrative around agents is evolving, and we believe that designers will need to integrate agents into their software, increasing the complexity of their role. Figma's job is to support designers in this evolving landscape, ensuring they can design for various surfaces and modalities. We are focused on making sure Figma remains relevant and market-leading in this new paradigm.

Question 5: Maybe you and Praveera can speak to how you're thinking about use of cash given just the $1.6 billion you have on the balance sheet currently alongside any framework you're using to evaluate what would drive you to take one of those bigger swings going forward?
Answer: We are well-capitalized to invest in AI, sales, and marketing. Our annual guidance framework for operating margin reflects our intention to find and capitalize on investment opportunities throughout the year. For M&A, we look for amazing teams and assets, cultural consistency, and alignment with our top priorities.

Question 6: Maybe just talk a little bit about how the conversations have gone with your enterprise customers with the new pricing and packaging rollout. Are you seeing anything different from what you initially expected, either positive or negative? And any way to think about the growth contribution from pricing and packaging for the rest of the year based on how the quarter played out?
Answer: We introduced multiproduct seats, admin upgrade approval, and increased full user seat prices. Initial transitions have led to predictable expansion patterns. We estimate a mid to high single-digit growth tailwind this year due to these changes.

Question 7: I wondered if there's any pattern recognition that you're seeing here with regards to usage, engagement, adoption, any themes or trends that you've noticed that maybe stand out to you with regard to usage of those features?
Answer: We are still early in understanding AI functionality usage patterns. While we see good activity, we expect the distribution of usage to evolve significantly as we continue to improve and add AI features across our platform.

Question 8: I'm trying to understand the Figma make opportunity. I was hoping you could maybe help size the prototyping market that it addresses. If I go back and look at Figma Design, clearly disrupted the single-player design tools out there. Figma dev mode really expanded the user base outside of design into the developers. And what does Figma make bring? Is this a new user base? Do you think this is gonna increase ARPU by cross-selling in the installed base? Walk us through the AI prototyping opportunity and what Figma Make brings there.
Answer: Figma Make is not just for prototyping; it allows users to go from prompts to working apps. It expands the personas involved in complex editing and creation tasks, enabling more people to contribute to the design process. It helps explore the full option space of design ideas faster, allowing designers and others to accelerate their ideas and add their own craft and point of view.

[Sentiment Analysis]
The tone of the analysts was inquisitive and positive, focusing on the potential of new products and AI investments. Management was confident and enthusiastic about the company's growth prospects and strategic direction.

[Quarterly Comparison]
| Metric | Q2 2025 | Q2 2024 | YoY Change |
|-------------------------------|---------------|---------------|-------------|
| Revenue | $250 million | $177 million | +41% |
| Net Dollar Retention Rate | 129% | 125% | +4% |
| Gross Margin | 90% | 92% | -2% |
| Operating Margin | 5% | 4% | +1% |
| Adjusted Free Cash Flow Margin| 24% | 22% | +2% |
| Cash Position | $1.6 billion | $1.4 billion | +14% |

[Risks and Concerns]
- Near-term gross margin compression due to increased AI product costs.
- Potential share supply events from extended lockup agreements and Rule 10b5-1 plan.
- Uncertainty in the monetization cycle of new products.

[Final Takeaway]
Figma's Q2 2025 performance highlights strong revenue growth and successful product innovation, particularly in AI-driven tools. The company's strategic focus on expanding its product portfolio and deepening AI investments positions it well for future growth. However, investors should be mindful of near-term margin compression and potential share supply events. Overall, Figma's commitment to innovation and customer engagement continues to drive its market leadership in the design and product development space.