Rasmus Andersson

Figma I tend to believe that of all public software companies, Figma is perhaps one of the most underrated in terms of their ability to monetize and have a second act crossing the chasm into being ai-native (after admittedly taking way too long to transition). I believe in order to do so they must collapse some of the product primitives to allow people to start to think of FIgma as a starting and finishing point for more workflows (Figma Make should be considered the v0 of this, and while they can keep the discrete products, it's possible agentic UI that does multi-product routing on top of each individual one should be pulled to forefront of experience). It also feels pretty clear that after Weave, the company understands that some M&A could be accretive if they want to own more horizontal parts of asset, product, and software creation. All of this gets at the idea that that Figma needs to talk and think about the business less as "we are for designers, designers are more important as code commoditizes" (paraphrasing somewhat bluntly) and into instead the narrative surrounding seat and user profile expansion + ai being able to translate creative non-designers into designers (Figma Agent is a clear, just-now monetizing push towards this). There has been some whiplash around this narrative positioning on earnings calls/from exec team as they discuss the importance of being for professional designers, while also touting engineer seat usage growing over designer seats (again, nuance to this but still creates complexity in the story of whether or not this is a slowly dying business versus a company that can kingdom build with AI). To bring it back to the AI point because that is what matters, as with many companies, you will likely see margin erosion due to AI (as we saw last quarter) and then re-expansion over time, especially as the company has hinted towards training its own models. With that said, my gut tells me that alongside of that, one could expect to see surprise top-line acceleration in 2027 if products can feel more cohesive and ai-first while expanding scope of Why Figma across an org versus a variety of death-by-a-thousand-cuts software/platforms. Anyways, we are long $FIG at Compound as a disclosure despite many people telling us we are morons for being so.