Figma, Inc. Q1 FY2026 Earnings Call

Good day, everyone, and welcome to the Figma Q1 2026 Earnings Call. At this time, I would like to hand the call over to Mr. Brendan Mulligan.

Good afternoon, and thank you for joining us on today's conference call to discuss Figma's results for the first quarter of 2026. On the call, we have Dylan Field, Figma's Co-Founder and Chief Executive Officer; and Praveer Melwani, our Chief Financial Officer. During the course of today's call, we will make forward-looking statements, including, but not limited to, statements regarding our guidance and future financial performance, market demand for our products, including adoption of Figma Make and other AI features, our product development plans, business strategies and plans, and our ability to attract and retain customers and compete effectively. These forward-looking statements are based on management's current views and assumptions and should not be relied upon as of any subsequent date, and we disclaim any obligation to update any forward-looking statements. Actual results may vary materially from today's statements. Information concerning our risks, uncertainties and other factors that could cause results to differ from these forward-looking statements are included in our filings with the SEC, including our quarterly report on Form 10-Q for the 3 months ended March 31, 2026. Our discussion today will include certain non-GAAP financial measures. These non-GAAP financial measures should be considered in addition to, not as a substitute for or in isolation from GAAP measures. Our non-GAAP financial measures exclude the effect of our GAAP results of stock-based compensation and certain other items. Reconciliations of non-GAAP financial measures to comparable GAAP measures can be found in our press release accompanying this call, which is posted to our website. I would now like to turn the conference call over to Dylan.

Hello, everyone, and thank you for joining. I'm looking forward to sharing the results of another incredible quarter at Figma. First though, let me tell you how I'm thinking about the opportunity ahead. Anyone building software today knows that we are living through an extraordinary time because with AI, what used to take months can now ship in sometimes an afternoon. Code is more plentiful, easier to write and the distance between an idea and its implementation is collapsing. You've heard me say it many times in the past. When execution is cheap, design and creativity are the edge. And now it's not only me saying it, the entire world sees it too. The bottleneck has shifted away from can we build it and toward can we imagine something that's worth building. More design tools are launching, more people are creating, more software is now being built than ever before. And in this world where bits are abundant, what's scarce is human creativity, actual point of view, care and craft and judgment. This is what makes a product, a company, a campaign cut through the noise. Designers, builders and creatives, they all need tools that let them explore without limits and express their vision exactly as they imagined it. And that is what Figma has always been built for. Our Q1 numbers reflect this momentum. Here are a few highlights. In Q1 2026, revenue grew 46% year-over-year to $333 million, accelerating from 40% last quarter and 38% in Q3. Growth came from across our business, seat expansion, retention, enterprise adoption, new users and of course, AI through Figma Weave, our broader AI capabilities and early traction from AI credit monetization, which started on March 18. Net dollar retention rate also increased to 139%, our highest rate in over 2 years. This is up 3 percentage points from last quarter. We also continued to generate strong cash flow. Non-GAAP operating margin was 16% in the quarter. Free cash flow was 27%, and we ended Q1 with $1.6 billion in cash, cash equivalents and marketable securities. Thank you to the Figma team for your focus and for your execution. I'm also especially proud of how our team is adapting to new ways of working with AI during this time of exponential change. The momentum we've built gives us the confidence to raise our revenue and non-GAAP operating profit guidance for the year. Praveer will share more details on that in just a moment. But the story of our quarter, of course, goes far beyond the numbers. We're seeing our customers go bigger and deeper with Figma. So let me share a few examples. First, Google. Google is a longtime Figma customer. Many of their most iconic products have been designed and built on our platform. As they build the next generation of AI-native products, they're doubling down on Figma. The team designing agentic Gemini experiences for millions of enterprise customers uses Figma end-to-end as their single source of truth from the earliest concept work all the way through to shipping. In their words, they can only "get to a level of detail that we want in Figma, that's not possible with vibe coding." Lufthansa is another example of a customer going deeper with Figma to drive real innovation. Their Lido navigation product design team used Figma Make to prototype Lido mPilot, an integrated iOS charting app that streamlines flight navigation for commercial pilots. They did it with a level of fidelity that goes well beyond traditional prototypes, though. By connecting Figma Make to their in-house API, the team could prototype dynamic, interactive map features. That way pilots could test real gestures before any production code was written. As they put it, pilots could really imagine what we were trying to show them. We validated our concepts before touching implementation. That's the goal of every product team, and we actually did it. Teams aren't just going deeper at Figma. We're seeing broader adoption across the organization as well. Rocket Mortgage, for example, serves 1 in 6 American homeowners, unifying multiple brands and technology stacks into a single homeownership platform. To help scale that vision, the team built their design system directly into Figma Make as a shared template infrastructure for their entire org, accelerating adoption well beyond the design team. As design engineering lead, Will Hobick, describes it: "We're seeing adoption across the organization. Teams across Rocket are now using Figma Make to rapidly build dashboards, craft presentations and explore new customer experiences, all built on top of our shared design system and brand foundations." Design Director, Emily Strobl, had this to say on why it's resonating. "We've all experienced AI tools that just don't quite hit the mark or reflect our brand standards. Embedding our design system into Figma Make has fundamentally changed that." In some cases, expansion goes even further beyond product development altogether. At NBBJ, one of the world's leading architecture firms, Figma Weave, formerly known as Weavy, is changing how they win business. NBBJ's architects are subject matter experts in the industries that they design for. Their work is about understanding how a space needs to function, not just how it looks. So pitching a client used to mean commissioning photorealistic renders from an external studio. That process took days and returned only 1 or 2 versions with little room for refinement. Now architects at NBBJ can do it themselves. Figma Weave lets them translate their 3D models into precise, photorealistic renderings. They're able to generate and refine in real time, pushing until the result meets the exact bar that their work demands, dialing in time-of-day lighting, grounding a design in actual urban context, and getting the materiality just right. Figures placed at human scale make a ceiling height or entry sequence immediately legible to clients. The result is a faster pitch, a stronger presentation in full creative control from start to finish. Adoption of Weave at NBBJ is expected to triple in the next 3 months. Across these customers and countless others, Figma remains the place where teams with the highest bar come to do their best work. Teams that know that creativity and craft are what will set them apart need tools that can match that ambition. Tools that let them explore freely and express their vision without limits. That's who Figma is built for. Our platform is where creativity lives and compounds, where teams can move quickly on their first idea and push further, questioning, refining, iterating with the best of AI, code and direct manipulation until the work is unmistakably theirs. We see this in how our customers actually work. As of Q1, around 60% of our largest customers used Figma Make on a weekly basis. And over 80% of Make users on Full Seats continued using Figma Design for visual editing and broader exploration alongside Make. We love seeing how the ambition of our users and our community is always growing, and we are moving faster than ever to meet it. In the last few months, we shipped major updates to Figma Make that let users bring their own context into every prompt and give them more control over every decision as they build. We introduced new MCP capabilities that let agents read and write directly to Figma files so that teams can stay in control. In Q1, MCP weekly active users in Design grew 5x quarter-over-quarter. And we shipped updates to Figma Weave, including a timeline editor for refining AI-generated video. Figma Make has driven the most AI usage so far, but MCP, Figma Weave and our AI assistant, which is currently in Alpha, are meaningfully expanding the surface for AI consumption in Figma. All of this builds on what has made Figma the choice for the world's best teams building the world's best software. First, a performant enterprise-grade multiplayer canvas and platform, where humans and agents can work side by side with no silos, no handoffs, just the best ideas rising to the top. Second, deep product context that makes AI actually useful. The institutional taste, the historical decisions, the accumulated understanding of how your product should work and feel. And third, full creative control, the ability to prompt, code and manipulate visually all in one place, unlocking the full power of AI without giving up intent or the full range of what you can imagine. Because in a world of abundant software, all of this together is what it takes to build products that stand out. And the companies that figure out how to harness human creativity alongside AI, those companies will define what the next era of software and creativity looks like. Having spent over a decade building for the most creative community on the Internet, this is our moment. I cannot wait for you all to see what we're shipping over the next weeks and months, including at Config, our annual user conference in June. With that, I'll pass it to Praveer.

Thanks, Dylan. Dylan shared some of the headlines and why we believe Figma is outperforming. I'll share a bit more detail on what we're seeing in our outlook for the rest of the year. AI continues to be an incredible tailwind for our business. Total revenue in the first quarter was $333 million, representing 46% year-over-year growth and exceeding the high end of our guidance. This marks our second consecutive quarter of acceleration in our year-over-year revenue growth. Our outperformance resulted from stronger-than-expected seat expansion across entire organizations driven by design's growing importance and adoption of our AI products, including Figma Make, MCP and Figma Weave. Our international business also contributed to our results with revenue growing 48% year-over-year. We also saw increased demand for our Governance+ add-on and advisory services. Our Q1 results are a testament to the team's relentless work building, shipping, iterating and listening to feedback from our customers. Retention and expansion metrics continued to strengthen in Q1. Our net dollar retention rate for paid customers spending more than $10,000 in ARR reached 139%, up 3 percentage points from the prior quarter and our highest level in over 2 years. Our outperformance in NDR was driven by strength in seat expansion and growth in our non-seat-based offerings, including AI add-ons. We also saw acceleration in our customer cohorts. Paid customers spending more than $10,000 in ARR grew 37% year-over-year in Q1, a 5 percentage point acceleration relative to Q4 last year. Paid customers spending more than $100,000 in ARR grew 48% year-over-year in Q1, a 2 percentage point acceleration relative to Q4 of last year. And our overall customer base grew to approximately 690,000 paid customers from approximately 450,000 in Q1 of last year, growing 54% year-over-year. As AI gets better, Figma is accelerating and customer usage and workflows on our platform are deepening. Our platform and AI products drove faster growth for both new customer acquisition and expansion within existing accounts. Across all tiers, we're seeing customers grow seats and expand into new functions and teams. Within our larger enterprise customers, approximately 60% of customers with more than $100,000 in ARR were using Make weekly in Q1, up from over 50% just last quarter. In the long tail, we're also seeing continued acceleration in adoption of our AI features with new Pro team conversions which we view as a leading indicator for future growth up over 150% compared to Q1 of last year, demonstrating our ability to both expand TAM and convert existing users to paid plans. A few of our notable customer wins from the last quarter include one of the world's largest hyperscalers running thousands of product and engineering teams across dozens of business units, which unified its fragmented Figma usage across the enterprise into a single agreement with over 35,000 paid seats, one of the largest deals in Figma's history. A top global media and entertainment company that started with organic Make usage ended up with a full company-wide rollout. As teams adopted Make, every developer upgraded to a full seat. That growth happened organically, driven by how the product is actually being used, not by a top-down mandate. We also saw some incredible wins in Q1 internationally. In India, one of the country's largest IT services firms signed our largest ever deal in the region, consolidating design and engineering teams onto Figma. And in Europe, one of the world's largest industrial automation companies with over half of its R&D workforce focused on digital development more than doubled their dev seats on platform. Engineers at the company now outnumber designers on Figma, and the team is now leaning into Figma's MCP to connect design directly into their development environment. The themes across our customers are clear. They're deepening their usage of our products, expanding their seats with Figma and finding even more value in their user experiences with AI products. In fact, in Q1, over 60% of paid customers with more than $10,000 in ARR added full seats compared to their prior renewal, consistent with what we observed last year and at equivalent expansion rates. I want to take a minute to highlight the strong early signal we are seeing on AI credit monetization. We are at an exciting inflection point. On March 18, we began implementing AI credit limits for all of our seats and have been very encouraged by the usage trends we've seen since then. As of the end of April, over 75% of users on our Org and Enterprise plans who were previously over their credit limit continued to use credits and over 95% of those same users remain active on the platform. Early enterprise customers who have committed are doing so at scale. For example, one of the world's largest enterprise technology companies in the middle of a company-wide push to become an AI-native organization after standardizing on Make, they are now purchasing additional credits to expand AI capabilities across product, engineering and PM teams spanning 7 business units. One of the world's largest professional services firms expanded their Figma investment after a company-wide Figma AI training drove a step change in adoption and embedded AI capabilities at the center of how they design, prototype and deliver client work across every major industry. Additionally, as of the end of Q1, Pro teams that purchase AI credit add-ons had more seats per team and an average annualized spend of over 3x that of teams that haven't purchased add-ons. Importantly, the surface area for credit consumption continues to expand. While today's credit usage is driven by products like Figma Make and our advanced image editing features, new capabilities currently in our early access program like our AI assistant, which enables new AI-native creative workflows directly in the Figma Design canvas, are expected to begin drawing on credits in the near future as well. Our MCP enables developers and AI agents to build and interact with Figma directly within their workflows. We are seeing more teams convert to paid plans and upgrade seat types to access higher rate limits for our MCP. Among customers with more than $100,000 in ARR, those that were using our MCP grew full seats approximately 70% faster over the quarter than customers who are not using our MCP server. We expect this to evolve into a usage-based offering, but it is currently available for free during the beta period. Q2 will be our first full quarter of credit monetization. We have been investing in more features to improve the customer experience including expanded admin controls, pay-as-you-go for Pro customers and more flexible contracting structures for enterprises. Our goal remains the same for our monetization model: to support adoption rather than constrain it. Lots more to come here in the quarters ahead. Now turning to some key income statement results. Unless otherwise noted, all metrics are non-GAAP. We've provided a reconciliation of GAAP to non-GAAP financials in our earnings release which is posted to our website. Gross profit in Q1 was $275 million, representing a gross margin of 82%. During the quarter, we saw a broader and deeper adoption of our AI features with our users benefiting from access to higher capability models, which in turn increased engagement and improved retention. With full seat AI credit limits now live, growing AI usage and adoption now translates into revenue, a key monetization milestone. We expect to continue to capture efficiency gains where available and have a clear set of levers to manage inference costs as adoption scales. This includes routing queries across models based on task complexity and leveraging our model-agnostic architecture to optimize across providers. We are also investing in first-party models trained on Figma's design corpus to improve performance on design-specific tasks while reducing cost. As we've reaccelerated our business, we've also delivered $52 million in operating income, representing an operating margin of 16%. Across the business, we've taken a first principles approach to rebuilding how we work across engineering, go-to-market and operations with AI tooling at the center. It's been energizing to see the creativity of our team in tangible wins and productivity across the board. We continue to evaluate our hiring needs to make sure we're operating efficiently. We believe the future calls for flatter organizational structures and more smaller, high-agency teams that can move even faster, which gives us more capacity to invest and retool how we work. Our Q1 free cash flow was $89 million, representing a free cash flow margin of 27%. We ended the quarter with $1.6 billion in cash, cash equivalents and marketable securities. As we previewed, we introduced an annual corporate bonus program in 2025, which was accrued for during 2025 and paid out for the first time in Q1 this year. This was a $56 million cash outflow and had a 17 percentage point impact on our Q1 free cash flow margin. Going forward, we expect to continue to accrue for the annual bonus each quarter and pay out in Q1 of each year. We remain confident in the long-term cash-generating profile of the business. We also remain committed to managing dilution responsibly. As our pre-IPO equity grants amortize, we expect that strong revenue growth, disciplined hiring and expanding operating leverage from AI will continue to drive improvement in stock-based compensation as a percentage of revenue. Now turning to our outlook. A reminder on our guidance philosophy. We're providing a snapshot of our current view of the business based on recent trends. We include what we have a high degree of confidence in and where our visibility is more limited we look to observe sustained trends in the data before we fully incorporate the benefit in our guidance. For the second quarter of 2026, we expect revenue in the range of $348 million to $350 million implying 40% year-over-year growth at the midpoint. For the full year, we expect revenue in the range of $1.422 billion to $1.428 billion, implying 35% growth at the midpoint and a raise of $55 million relative to our prior outlook. Our raise for the full year is driven by three things: first, increased paid conversion across our customer base, fueled by the depth and breadth of AI across our platform; second, sustained broad-based seat expansion across every tier with teams and organizations opting for more dev and full seats to access our AI products and credits; and third, outperformance versus our expectations across credit utilization, retention and add-on purchases since implementing credit limits. On operating income for the full year, we expect non-GAAP operating income in the range of $125 million to $135 million, representing a non-GAAP operating margin of 9% at the midpoint. This represents a raise of $25 million relative to our prior outlook. Our increase in operating income is driven by our revenue increase for the full year, operational efficiencies and continued optimizations we have made in our AI implementations. Additionally, while we are not issuing quarterly operating income guidance, we would note that Q2 operating income and free cash flow are historically impacted by Config, our annual user conference. We anticipate a similar effect in 2026. In closing, Q1 was an exceptional quarter across multiple dimensions. Year-over-year revenue growth has now accelerated for two consecutive quarters. Net dollar retention rate reached its highest level in over two years, and the early signs from AI credit monetization give us tremendous confidence in the road ahead. As Dylan shared, design has never mattered more and Figma is built for this moment. With that, I'll hand it over to the operator for Q&A.

We will take the first question from Michael Turrin, Wells Fargo.

This is Richard Poland on for Michael Turrin. So first one for me is just with respect to the AI credit monetization. I know it's been only two weeks in the quarter and I think somewhere around six to eight weeks since that officially went through. But how should we think about that starting to ramp and show up in the model into Q2 and the second half?

Yes. I appreciate the question here. So I think as where we stand, we're ahead of our expectations, and it's giving us confidence in our ability to raise our guide for the full year. We felt the momentum across big and small. Our paid customer base grew 54% year-over-year with the long tail of Pro team conversions up over 150% in Q1 compared to the same quarter last year. In Q1, we're now up to approximately 60% of our customers over $100,000 in ARR using Make weekly and actually have seen over 75% of our Org and Enterprise users who were previously over the limit prior to credit enforcement continue to consume credits in April. As we sit here at the end of Q1, teams that are purchasing AI credit add-ons on Pro have an average ARR of over 3x more than teams that had not purchased add-ons. The part I'm most excited about is all the work our team still has coming, which will increase the surface area for teams and organizations to experience the value of our AI features. When you think about the rest of the year for us, we very much believe that we've got a tailwind here from our credit monetization. It's both going to be through the consumption that teams are actually seeing and through driving continued seat upgrades for users and teams in the months ahead.

I'll also add that we're excited about the different surfaces that you'll see AI consumed on. For example, Weave is something that we're very excited about, and we really believe in the paradigm of node-based editing and the ways that you can create workflows where agents and models are working on the same canvas and you can move between the outputs of the various surfaces.

Your next question is Arjun Bhatia from William Blair.

Congrats on a great start to the year. Dylan, maybe I'm curious for you. It's been almost a year now or maybe we're a few months away since Make has been in GA. And I'm wondering what sort of change or evolution you've seen in the way customers and users are using Make. It sounds like in your prepared remarks you mentioned some enhancements you made around context and MCP. I'd be curious how those new capabilities are resonating with customers and maybe enhancing the value of that solution.

Absolutely. Thank you for the question. We'll continue to see paradigms evolve and expectations of our users evolve. Our users are incredibly ambitious, and we always intend to meet their ambition to make it so they can take full advantage of the Figma platform to create what's in their head. When it comes to Make, we've been really impressed by the way that our users have stretched the platform to create everything from tools to prototypes to beautiful website designs to actual shipped software. Some of them have done an incredible job leveraging the platform to its fullest capabilities. At the same time, there's so much more we can bring to Make. As we look back, some of the early technical decisions we made did constrain us in ways that are obvious in hindsight. We've corrected those. If you haven't tried Make recently, please try it again. It is already so much better. In the weeks and months to come, I think you'll be amazed by the progress so please check it out.

Up next is Keith Weiss from Morgan Stanley.

Congratulations on a really awesome start to the year, both in terms of what we're seeing in the customer base growth as well as your ability to monetize against that. Dylan, digging into that exponential change you're talking about and the improvements you're seeing in Make, the question many of us have is how these pricing models and the value proposition are going to evolve as we understand how customers are utilizing the tooling, whether it be Make or an MCP server or whatnot. Any initial learnings you can share about how well the pricing model today is capturing that value proposition and how it might evolve? And then for Praveer, we saw some degradation in gross margins as AI picked up. You talked about monetization starting to kick in against some of that usage. Is there any guardrails you could give us on where gross margins may be going forward? For example, do you have any indication of what type of gross margin business AI activity is, and anything that could help us understand the lower limits of where those gross margins may land as AI becomes a bigger component?

Thank you for the question. I firmly believe, as I've talked with customers, that the value proposition and how it relates to pricing, what matters most is that we provide the most value that we can to our customers and solve their problems. In this era with AI and pricing, that is what customers are looking for first and foremost. How it evolves going forward, we might see changes where people become more discriminating about how much they're spending on tokens, and we are already seeing that with some customers. If the first chapter was the urge to use AI and the second chapter was leaderboards for token usage, the third chapter seems to be putting limits on this because this is real spend. Some of the things we're doing around MCP and Code Connect translate to more efficiency for our customers. We'll continue to ensure that as we think about Make and other aspects of our platform, we strike the right balance on efficiencies so customers can use our product effectively. I'll pass to Praveer to answer the rest of the question.

I appreciate the question, Keith. The sentiment we hear from customers is that they want more control. They want governance over who gets access to which credits across teams, which we've addressed quickly by expanding admin controls. We're exploring pay-as-you-go models for our Pro customers and more flexible contracting structures for enterprises. On gross margin, it's hard to predict with precision where things will land. We've been focused on optimizing gross profit dollars. With full seat AI credit limits now live, growing AI usage and adoption translate into revenue, which is a natural offset to growing usage and customer value. In Q4, we demonstrated an ability to drive efficiency while continuing to drive adoption and use. We expect to continue to have levers to pull, including routing queries across models based on task complexity, leveraging our model-agnostic architecture to optimize across providers, and investing in first-party models trained on Figma's design corpus to improve performance on design-specific tasks while reducing cost. Our core focus is to drive growth and ubiquity of our solutions, and we intend to ship quickly.

Gabriela Borges from Goldman Sachs has the next question.

Dylan, I really appreciated your case study in the prepared remarks on Google's usage. I'd love for you to talk a little bit about some of these new tools that are coming out from the LLM providers like Google Stitch and Code Design. I'm curious how you think about the impact those tools will have on the industry. It sounds like there may be some underappreciated synergies between how Figma could potentially work with those tools as part of a bigger design cycle. I'd love to hear your thoughts broadly on that.

Absolutely, and thank you for the question. This is an extraordinary time to build. As code becomes more commoditized and easier to write, design is clearly the layer above code and visual thinkers outnumber those comfortable in a terminal or an IDE. We expect this space to continue to heat up and be the battleground for how software gets built. Tools around visual communication and creative design for marketing and advertising will be essential for breaking through the noise. Many of the new tools will be ones we can integrate with and that will be complementary in our ecosystem; others may be more direct competitors. We aim to understand that context through direct communication and close relationships with partners. Overall, we focus on what we know best: 14 years of deep work in the details of designers' workflows, and a team that cares about craft and quality. We're shipping faster than ever, and that's what will take to win in this era, along with partnership and working with our ecosystem.

Your next question is from Alex Zukin from Wolfe Research.

I guess maybe first, this was your largest beat being public. I appreciate you had some stellar new customer additions and a couple of really strong metrics. What surprised you the most in the quarter that drove the outsized beat? And Praveer, given the quality of the beat, could you help set some guardrails around the low end of where gross margins should be thought of, particularly exiting the year? Is this something that stays above 80% because of the technical innovations you're doing, or do we pierce that 80% level at some point?

I'll take the part on gross margin. Our focus right now is to drive gross profit dollars and focus on growth. That is the key metric for us rather than thinking about a specific floor. We want to drive ubiquity of our solutions while investing deeply. We believe we have the best product and team to win. On the makeup of the quarter, the beat came from different directions. Our product portfolio looks extremely different than a year ago, and each new surface and feature we've introduced has made it that much more compelling to hold a paid seat. It's a consistent trend we've seen with users upgrading to full seats for access to higher rate limits on MCP or access to products like Make. When you put that together—net dollar retention, TAM expansion, seat expansion, product expansion, tier expansion and pricing—all of those components kicked into high gear. Paid customer count growth was up 54% year-over-year. The 10,000-plus customer cohort growth continued to signal strength, and we're seeing continued full seat additions at renewals. International is humming. We're deepening investments in Governance+ and advisory services. We're seeing strong early signals on AI monetization. As previous pricing tailwinds from last year wane, the benefit of newer levers gives us confidence for the rest of the year.

I'll add to Praveer's points by saying we are rigorous about short-term and long-term thinking. Some opportunities in AI may create short-term spend, but we only engage in those if we believe in the long-term TAM and profile of the business. We'll continue to apply that framework and be selective about the opportunities we go after.

The next question is Billy Fitzsimmons from Piper Sandler.

Dylan, I want to expand on the evolving competitive landscape. Since last quarter, one of the cloud hyperscalers announced a seemingly similar product to Make, and a frontier lab announced a design tool. There seems to be both coopetition and competition. Given how rapidly things are moving, help investors think about Figma's differentiation in this landscape. Also, anything from a numbers perspective in Q2—top of funnel or new logo usage—that investors should be aware of that suggests a change in competition? It doesn't seem like it given the strong guide for 40% growth, but anything worth calling out?

Thanks for the question. This call is about the first quarter, so we'll focus on that. Regarding competition, you have to look at each player individually. I'm thankful for our partnership with Google; we are big fans of the Gemini models and think they're doing interesting work. Their labs product has not materially affected us as far as I can tell. Anthropic is another player we watch; they can train first-party models and couple them with products if they choose to. We pay attention to that. Our differentiators include a performant multiplayer canvas—people underestimate how hard it is to get those mechanics right—deep product context from workflows and historical decisions, and the ability to bring together AI, design, code and direct manipulation in one platform. That ability to move between modalities rapidly will create flow for people doing design work and is our ultimate differentiator.

To be explicit, we're confident in our guide for Q2. The strength we reported this quarter and the strength in NDR and Make usage for our largest customers—growing from 50% at the end of Q4 to 60% at the end of Q1—Pro team conversions up 150% year-over-year in the quarter, customers are going bigger and broader with Figma. You heard about Google, Lufthansa, Rocket Mortgage and countless others. We're moving fast and have a history of meeting the moment and out-executing.

Next up from Stifel is Parker Lane.

If you look at the last few months since enforcement of the credit limits, could you talk about the split of customers who have exceeded their limits buying more credits versus upgrading into full seats? As you look out into '26 and these tools continue to improve, do you expect that split to be roughly similar, or will people more likely choose one path over the other?

I think customers will do both. It's too early to comment on the long-term mix, but we expect consumption to be an upside driver for the year. Our monetization model is designed to support adoption rather than constrain it. As we reinvest in the business, we can encourage use of our new products and features as we roll them out. We have an opportunity to go deep with organizations and broad across teams. As we go deep, we'll drive more consumption, cross-platform use and purchases of add-ons like Governance+ and advisory services. Going broad, we'll license more of the team, which can unlock more features and potentially drive more consumption. We have early signal and are excited by the usage trends since implementing credit limits on March 18. As of the end of April, 75% of Org and Enterprise users who were previously over their credit limits continued to consume credits. The right model meets customer needs, and today we expect to see a consistent mix of both seats and AI consumption.

On the product side, when should a user choose inference versus direct editing? We need to bring those together so customers can choose the right tool at the right time. That flexibility lets customers save on inference when appropriate and get the benefits of AI when applicable. Some workflows in Figma Design are 10x or 100x faster than AI, and there are AI workflows that are far faster than doing bulk manual tasks. As Assistant expands out of alpha, more customers will be able to get those benefits directly in Figma.

Nick Altmann from BTIG has the next question.

I have a higher-level question about the code-to-canvas or canvas-to-code workflow creating a bidirectional round-trip. Dylan, what are you hearing from customers about this workflow change? Over the next couple of years, how much do you think customers will adopt more of a code-to-canvas workflow? Does that foster more users to adopt full seats rather than dev seats or collaboration seats?

Thank you. We're still in the early innings of interfaces around models and inference. Long term, I don't think people will gravitate to an IDE or terminal if given a richer interface more suited to the task. As that abstraction barrier goes up and teams access AI workflows through richer interfaces, workflows will shift. Today, whether you're building in an IDE, a terminal or Figma, it's important to connect those dots and make sure customers are efficient with token spend and time translating between surfaces. That's why we build MCP and other integrations. MCP usage is growing tremendously and delivering real value in implementing designs faster, and there's much more we can do. We're excited about the round trip applications on our platform.

At this time, there are no further questions. I'll hand back to our speakers for any additional or closing remarks.

Thank you all for joining. We are exceptionally proud of the quarter, and we look forward to speaking to you soon.

I'll finish by thanking the team. Our team has been doing an incredible job executing with such strength and working extremely hard to meet the moment. We have so much gratitude for everything they're doing, and I'm excited for you to see some of the things we're working on in the weeks and months ahead. Tune into Config, our annual user conference in June—we're excited for you to see what we're shipping there and to hear your feedback. Thank you.

Once again, everyone, that does conclude today's conference. We would like to thank you all for your participation. You may now disconnect.