Figma CFO Says Margins May Never Return to Peak as AI Spending Ramps
FIG sits 27% above its 52-week low of $16.6.
Summary
Figma's CFO Praveer Melwani said the company is willing to sacrifice gross margins to boost AI adoption, and he is uncertain if margins will ever return to the low-90% range. Gross margins have already fallen to the mid-80% range from above 90% historically. The stock is down about 43% this year as investors worry about AI-driven disruption and shrinking margins. The company moved to usage-based pricing for AI credits earlier this year and expects stronger earnings in upcoming quarters, but the CFO's comments signal that margin pressure will persist. This follows a Q2 GAAP loss of $112.2M reported in August, driven by surging AI-related costs.
At the time of this announcement, FIG was trading at $21.14 on NYSE in the Technology sector, with a market capitalization of approximately $11.4B. The 52-week trading range was $16.60 to $67.68. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.