Is Beaten-Down Figma Stock a Buy as Revenue Surges?

Shares of Figma (NYSE: FIG) jumped past Friday (May 15) aft the collaborative plan level institution reported that its first-quarter gross surged. However, the banal is inactive down much than 35% connected the year, arsenic the institution has been dragged down by the software-as-a-service (SaaS) sell-off.

Let's excavation into the company's results and prospects to spot if present is simply a bully clip to bargain the stock.

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Strong gross maturation continues

It's hard to responsibility Figma for its struggling banal terms pursuing its archetypal nationalist offering (IPO) past year, arsenic operationally the institution has been hitting it retired of the park. This continued successful the archetypal quarter, arsenic the company's gross maturation accelerated, rising 46% to $333.4 million, up from the 40% maturation it saw successful Q4 and 38% maturation successful Q3. Adjusted net per stock (EPS) roseate from $0.03 to $0.10.

The maturation was driven by some spot enlargement and the continued adoption of the company's artificial quality (AI) products. Meanwhile, the institution began enforcing AI recognition limits connected each seats successful mid-March. It said the alteration has been positive, with 95% of users who were implicit the limits inactive progressive connected the level and 75% continuing to usage credits, with galore purchasing further ones.

Figma continues to spot maturation from some caller and existing customers. Its fig of paid customers climbed 54% twelvemonth implicit twelvemonth to 690,000. Meanwhile, its nett gross retention (NRR) complaint for customers with much than $10,000 successful yearly recurring gross came successful astatine an awesome 139%, its highest level successful 2 years. This metric measures however overmuch further money, aft immoderate churn, existing customers of 1 twelvemonth oregon longer spend.

Figma upped its full-year gross forecast, predicting that its 2026 gross would travel successful betwixt $1.422 cardinal and $1.428 billion, representing astir 35% year-over-year maturation astatine the midpoint of its guidance. That's up from a anterior outlook of betwixt $1.366 cardinal and $1.374 billion. For Q2, it is looking for gross betwixt $348 cardinal and $350 million, representing 40% year-over-year maturation astatine the midpoint.

Is the banal a buy?

Figma turned successful an exceptional 4th of beardown gross growth. And portion determination remains a communicative that it volition beryllium an AI loser, it continues to show that AI is driving growth.

With its sell-off this year, the banal present trades astatine a guardant price-to-sales (P/S) ratio of astir 8.5 times 2026 expert estimates and 7.2 times the 2027 consensus. That's charismatic for a maturation banal expanding its gross astatine a 35%-plus clip. As such, I deliberation investors tin adhd shares of the banal astatine these levels.