So Figma recently closed its first full quarter as a public company and man it was a good one:
- Figma crossed $1B ARR
- growing a stunning 41%
- With $100m+ of net income
- And 24% free cash flow margins
Just … wow. Many of the public B2B and SaaS leaders may be struggling, in low growth mode. But the best of it? On fire.
5 Interesting Learnings:
#1. Enterprise Customers Continue to Accelerate at Scale
The Numbers: 1,119 customers paying $100K+ ARR, up from 963 last quarter (+16% QoQ growth). This segment now represents the fastest-growing customer cohort.
Why This Matters: At $1B+ ARR run rate, growth increasingly comes from land-and-expand with large enterprises rather than new logo acquisition. The $100K+ cohort represents less than 10% of total paid customers but likely drives 40-60% of revenue.
Takeaway: Track your $100K+ ACV customers as a separate cohort early. At scale, this becomes your primary growth engine.
2. NDR Consistency at Billion-Dollar Scale. 129% = A Strong Future to Come.
The Numbers: 129% NDR (for customers with $10K+ ARR), holding steady between 125-134% for six consecutive quarters.
Why This Matters: Many B2B companies see NDR compression as they scale due to law of large numbers. Maintaining 129% NDR at $1B+ run rate means existing customers are growing 29% annually from expansion alone, before any new customer acquisition.
Benchmark: 120%+ NDR at $1BM+ ARR puts you in the top tier of B2B companies.
3. 41% Growth Rate at Billion-Dollar Run Rate
The Numbers: $250M quarterly revenue (41% YoY growth), guiding to $1.021-1.025B for full year.
Why This is Rare: Most billion-dollar B2B companies see growth rates of 25-30%. Figma’s 41% growth at this scale puts them with companies like Snowflake and MongoDB during peak growth phases.
Implication: This growth rate combined with improving unit economics indicates durable, efficient growth rather than growth-at-any-cost.
4. Customer Concentration in Mid-Market Sweet Spot
The Numbers: 11,906 customers paying $10K+ ARR vs 1,119 paying $100K+ ARR. This means 10,787 customers are in the $10K-$100K range.
Why This Matters: This $10K-$100K segment represents Figma’s expansion opportunity. These customers have demonstrated significant commitment but haven’t reached full enterprise scale yet.
Strategic Value: This cohort provides predictable expansion runway. Converting even 20% of these to $100K+ would add substantial ARR.
5. Operating Leverage During Investment Phase
The Numbers: 24% free cash flow margins! 5% non-GAAP operating margins in Q2, down from 18% in Q1, but full-year guide suggests 9-10% operating margins by year-end.
Context: The Q2 margin compression appears seasonal combined with strategic investments in AI and new products. Full-year guidance indicates underlying unit economics remain strong.
Rule of 40: 41% growth + 5% operating margins = 46% Rule of 40 performance while investing in future growth drivers.
4 Additional Learnings
- New Product Adoption: Make (beta on Full seats), Draw (Full seats), Sites and Buzz (beta) represent meaningful TAM expansion beyond core design tools
- Quarterly Revenue Acceleration: Sequential growth accelerated from $228.2M (Q1) to $249.6M (Q2), indicating momentum building
- Geographic Expansion Implied: Customer growth rates suggest international expansion is working, though specific geographic breakdowns weren’t provided
As Good As It Gets
Breathtaking. The big question is does AI benefit Figma in the end? A net neutral? Or create new big competitors? We shall see.
