Figma is prepared to accept lower profit margins in the short term as it invests in artificial intelligence (AI) tools to attract more users and strengthen its position in the competitive design software market, the company’s chief financial officer, Praveer Melwani, has said.
Speaking at the Reuters Global Markets Forum on Thursday, Melwani said the company was uncertain when, or whether, its gross profit margins would return to historically high levels. Figma’s quarterly gross margins have fallen to the mid-80% range over the past year, compared with more than 90% previously.
The company has been expanding its AI capabilities, including design assistants and tools that generate prototypes and web applications from text prompts. These features have supported revenue growth but increased operating costs as Figma competes with advanced AI products from companies such as OpenAI and Anthropic.
Figma has also introduced usage-based pricing for AI credits, an approach expected to improve monetisation in the coming quarters. At its Config India conference, the company announced expanded access to its code layers tool, new collaboration features and partnerships with AI platforms, including OpenCode, Meta Muse and Sarvam AI.
However, investors remain concerned about the returns on growing AI investments. Figma’s shares have fallen about 43% this year, according to Reuters, amid broader concerns about spending on AI and the potential disruption of existing software businesses.
Melwani said Figma was willing to accept further pressure on margins if the investment helped the company reach a larger market. The strategy reflects a broader challenge for technology firms: balancing the high cost of developing AI products against the opportunity to attract customers, expand revenue and introduce new pricing models.
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