Figma CFO: $391M revenue, 43% growth, and 1M weekly MCP users in Q3

Speaker 2: Your business on MongoDB. Don't just build AI. Own the data platform that powers it. And we are joined by famous CFO, Praveer, Melwani. Welcome to the show. How are you What's

Speaker 3: going on?

Speaker 2: Thank you so much for taking the time.

Speaker 5: Yeah. Thanks for having me guys. Excited to be here.

Speaker 3: Thanks. Coolest looking CFO in the business. I I expected nothing less.

Speaker 2: Yeah. Where's the suit? Aren't you a banker effectively?

Speaker 3: No. He's not like the other CFOs.

Speaker 2: That's true.

Speaker 3: That's true. He's he's got taste. It's a new moat. Yeah. Even for CFOs, you know. At least at Figma.

Speaker 2: That's good. That's good.

Speaker 5: I try. Okay.

Speaker 2: Enough with the glaciers. How'd the quarter go? Take us through the results. What stands out? How's Fig and Dec? Yeah.

Speaker 5: I mean, I... I'm really proud of how the team executed. We Yeah. You know, put up 391,000,000 in revenue. We grew the business 43% year over year. Amazing. Our net dollar retention rate's at, you know, a 131%, so above a 130% for some time now. Yeah. But what... What's been really fun to see is just the, you know, the rapid acceleration of movement of of a number of our different AI products and features. So we GA'd our our Figma agent product on October 6. We're seeing credit consumption, you know, through that through that GA through the end of October up, you know, two and a half x. Yeah. Folks are looking for ways to, you know, really go deep in Figma and really find ways where they can deepen their deepen their workflows. And maybe the last one I'd call out, you know, I'm really proud of how we've been executed on the MCP side. So, you know, our MCP server is up, you know, to about just over a million weekly active users at this point. Wow. We grew it overall usage three x and overall write back usage to the canvas, which is, you know, just shows you how valuable Figma is as a as a core medium there about four x. So lots of momentum on that part of the business.

Speaker 2: What... How is the overall market expansion working its way through Figma? Like, I can imagine that there's some people that are, you know, for their first time, they're getting into making digital products. And some of them might flow into Figma. Some of them might flow into an agentic workflow or an MCP interface, and they might not even know. Other people might be expanding their usage because they're they're creating new products. Like, what is the shape of the growth in demand?

Speaker 3: Yeah. Yeah. I think the

Speaker 5: way you're describing it, it's kinda how we feel it. We both have an opportunity to go broad. Yeah. A whole bunch of the new use cases are now enabled via the AI products that we shipped. So Yeah. You know, you historically maybe would have needed to lean on a designer or developer as your hand in order to communicate or build an idea. Now through prompting a natural language, you can, you know, you can sit in Figma make and, you know, have your ID... Have your idea then be rendered for you.

Speaker 2: Yeah.

Speaker 5: So it's really empowering empowering to to PMs. PMs. It's It's really really empowering empowering to marketers, user researchers. It's giving more reasons for folks to hold a full seat, you know, where that where that would have been a little bit of a tougher sell, you know, even a couple years ago. Sure. And I... And then to your point on the MCP side, you know, I I do think that the ways in which the people are working are shifting very rapidly. I think it's, you know, it's been really interesting. We've added over 20 MCP partners over the course of the quarter, and, you know, we continue to we continue to open up how we can work with others there and kick off different workflows. And it's not just that, you know, we're bringing more context in. It's actually starting kick off first party agent workflows on the Canvas. Yeah. It's about 5% of all credit consumption in the quarter was actually orchestrated via an MCP. So it's actually people kicking off a first party workflow, which is pretty unique.

Speaker 2: How how mature is the the thinking around the billing relationship around MCP? Because I have been hungry for integrations that flow through to an agent of choice with that I already have a billing relationship with. Yep. And I mean, I guess the agent can just like shut set up my credit card over there. But it seems like there's an opportunity that could be good for everyone involved. It's a little dicey. It could be app store ish. It could be bad but... And frustrating. But I'm wondering how you're how you're dealing with the trade off of what happens if someone goes to ChatGPT and then says, I want to use Figma, go design it in Figma and then charge my OpenAI account versus take my credit card over to Figma and put it there? Like, how how are you dealing with the trade offs and opportunities and risks there?

Speaker 5: Yeah. Well, I mean, just just to start, I think what we're what we're seeing is that by virtue of how we've orchestrated our our MCP, we've actually given people more reason to hold a full full seat Sure. Than, you know, in prior cycles. So that has driven a benefit in the number of new new paid team conversions, the amount of, you know, folks that are holding a paid seat. Mhmm. We've we've also found though is that, you know, what folks are really trying to do is, you know, if they're gonna kick off a first party workflow in Figma, what we're doing with the first party agent in Figma has got to be has got to be of higher quality leveraging unique context that that we own. And in doing so, they're they're actually getting value from, you know, leveraging the the the AI features in Figma. You know, what what has... What the reality is today is that MCP usage as we've tracked it, you know, through the business is leading to higher retention. Mhmm.

Speaker 2: We'll have

Speaker 5: more expansion within accounts. And then as you start to put the math together on the credit consumption side, you know, I think that our ability then to farm to different sub agent workflows is gonna be increasingly more important.

Speaker 3: Yeah. Jordy? Yeah. There's this interesting dynamic right now where if, like, people are sending agents to your product

Speaker 2: Yeah.

Speaker 3: It's... It can be an indicator that that there's functionality

Speaker 2: Yeah.

Speaker 3: That that that you're not building. I was talking to some people at a at a like a financial institution this week and obviously every finance company in the world is dealing with people like sending their agents to like poke around and do things in their product and they're like scared about that for for a good reason. But to... I was telling them this is just a signal that like you need to do a lot more Mhmm. In your product to to have that same functionality and I think that's what you guys have been doing for like, you know, the last two years. It's like make sure that that the the same, like, sort of, like, intelligence is available wherever you're sort of, like, starting a project from.

Speaker 5: I also think you have to think about, you know, what are the things that you can do with lower latency, higher quality, and lower cost on your platform that makes it better for for a user to feel like they should be leveraging your first party first party, you know, AI use cases. So we've been developing a first party model now for for some time. You know, we doubled the amount of actions that are powered by that first party model over the course of the quarter. And we hold a whole bunch of unique context of our file system of, you know, the the Figma architecture so that we can actually build a smaller model that's lower latency can can work through those tasks much faster. So I think you have to think workflow when you think about, like, what are the things that you really want to own and where are there areas where it's it's helpful to, you know, almost use the MCP as an acquisition vehicle or rather part of part of the process versus feeling it like like it's combative in any way.

Speaker 2: What is it like doing an earnings call when there's all this chaos going on but it feels like you have a pretty clean story? Like there's like the semi trade is like going is getting nuked and then there's the midterms and it feels like you're just presenting like the business is still working, we're still growing, everything's moving along. Do you have to answer questions for... To investors about what's happening in the market broadly, or are you able to kind of just stay focused on the core metrics?

Speaker 5: I mean, I think you definitely take the context of where the world is because you recognize what are the things that people... That are on people's minds and how you can orient the story in a way that, you know, is is both appealing to the way that they're thinking, but then, you know, also is additive in the framework of how they how they view Figma. So, yeah, we go through a bunch of fun back and forth just to to brainstorm what are the things and themes out there.

Speaker 3: Oh, sure.

Speaker 5: But but I think outside of it, you're right in that, like, our story is clean. I think we've been really, really clear that we're focused on the long term here. Mhmm. And we'll make investments.

Speaker 4: You

Speaker 5: know, one of the things we did over the course of the quarter was reprice our credits. Sure. We actually doubled the allotment that folks get on our pro plans and grew the allotments on our organized price plan 60% because we knew that in doing so, we experimented our way in there, it would drive credit consumption and, you know, Trevon's paradox was starting to play out for us. Yeah. Yeah. And so I think we need to be long term oriented. We need to kinda, like, stick to our guns there, and I think it's the consistency and the consistency of our our execution that'll, you know, that I I wanna be able to use as a track record to to to point back... To point investors back to, and we gotta keep blinders on it and keep going.

Speaker 2: I love

Speaker 3: it. How are you thinking about token budgeting? There was a headline this week that I guess Apple is sort of like doing reductions or or like adding a lot stricter limits on how much engineers specifically can spend Yeah. Via via API on a on a day to day basis. But what's what's been your philosophy and approach today? Like knowing Dylan, he doesn't seem like somebody who would wanna be like, you know, like he wouldn't wanna have blanket rules around some of this stuff. But I'm curious. It's it's a

Speaker 5: tough challenge. Yeah. I think that I think you you need to take a little bit of an an iterative approach there. So, you know, setting soft limits, giving yourself an ability to really understand what's going on with your... You know, across your... Across the entire company and using that to feedback into the overall strategy and implementation of what you're doing. I think one of the reasons why we, you know, we raised our op profit guide for the full year by 30,000,000 is because we found opportunities to be more efficient both in how we're serving our, you know, our our our AI products for our users while also then running our business more efficiently. You know, we found, you know, some of our engineers were previously spending, you know, tens of thousands of dollars be able to run, you know, run similar similar tasks that they had for for fractions of that as they start to, you know, come up with different... Leverage different model types. Sure. Level... Leverage different architectures, and then they start to share that information with others. We just hired a CIO who joined us from Coinbase, a guy named Casper Sorenson, who I'm really pumped to to be working with. And Awesome. Do a lot of that same thought they had there at Coinbase where, you know, we we also are of similar similar minds. Yeah, we'll we'll be able to to see what we get up to over the next little bit.

Speaker 2: Awesome. Fantastic.

Speaker 3: Well, great to meet you. Congratulations on the the fantastic supporter.

Speaker 2: We'll talk to soon.

Speaker 1: Yeah. Cheers.

Speaker 2: Have a good one. Goodbye. Let me tell you about the New York Stock Exchange. I wanna change the world, raise capital at the New York Stock Exchange. And our next guest might be there any day now because Keller Cliffton over at Zip Line's been on an absolute tear.