Shares of Figma (NYSE: FIG) jumped last Friday (May 15) after the collaborative design platform company reported that its first-quarter revenue surged.
However, the stock is still down more than 35% on the year, as the company has been dragged down by the software-as-a-service (SaaS) sell-off
Let’s dig into the company’s results and prospects to see if now is a good time to buy the stock. Strong revenue growth continues It’s hard to fault Figma for its struggling stock price following its initial public offering (IPO) last year, as operationally the company has been hitting it out of the park. This continued in the first quarter, as the company’s revenue growth accelerated, rising 46% to $333.4 million, up from the 40% growth it saw in Q4 and 38% growth in Q3.
Adjusted earnings per share (EPS) rose from $0.03 to $0.10. The growth was driven by both seat expansion and the continued adoption of the company’s artificial intelligence (AI) products. Meanwhile, the company began enforcing AI credit limits on all seats in mid-March.