Figma's earnings jumped 15% on strong retention metrics: $10,000 average customer revenue, 97% gross retention, and 136% net dollar retention. The company is embedding AI across its product to generate code and fend off disruption in the design space faster than other SaaS markets.
amazing retention, uh, of $10,000+ customers, 97% GRR, 136% NDR. This was great. This was a great quarter for Figma all around and the stock up 15% after earnings. How did we see these numbers?
Talk, talk to me through this. This is a company whose leader was clearly saying, I, I know what I gotta do. I'm not in any doubt. I've gotta add AI capabilities. I gotta go from design all the way to, to coding, and I gotta add that and make it happen. And they seem to be getting decent adoption of it, right? This is what winning looks like in SaaS in a sector where it's very credible, very credible, perhaps more credible than most, that an AI-native product could disrupt you, right? I would argue something like accounting, you're 5 years away from AI-native being disruptive. In something like, you know, design and cogent, creative and cogent, it's here right now. So this is what fighting back looks like with a generational talent entrepreneur, a company still at its peak, i.e., not stale, and clearly trying to punch back. So this is, as it were, if this was a boxing lineup in Vegas, this would be one of the, you know, this would be one of the marquee headline events, right? In the right corner, Dylan Field, heavyweight champion of the world. In the left corner, lovable, wepless ringman, Jason M. Lemkin, You know, so what do you think, Jason? How's the fight going?
Look, I think it's tough because— Ding ding! Ding ding! It was a great— there's nothing to not love in the quarter. It was epic, right? Epic company, epic quarter. We've just given up on the present. We're all panicked about the future, and you get no credit for a great quarter, right? You get no credit.
