Figma provides a cloud-based collaborative interface design and prototyping platform for teams.Yahoo Finance ↗figma.com ↗
2 takes · first discussed Jul 4, 2025
Every call, plotted at the price the day they made it.
Chamath sees Figma as a phenomenal business on current metrics but is cautious about years 3-5 given the unknown of how much foundational AI models will absorb into what they do, suggesting a long Figma / short Adobe spread as the safer trade.
Friedberg is bullish on Figma's proven land-and-expand model, citing 40%+ revenue growth, 43% operating cash flow margin, and 130% net revenue retention, while acknowledging the longer-term risk of AI obsolescence.
The hosts are broadly positive on Figma's near-term fundamentals but share a common concern about longer-term AI disruption. Friedberg is the more outright bull, pointing to 40%+ revenue growth, a 43% operating cash flow margin, $95M of free cash flow in Q1, and 130% net revenue retention as evidence that the land-and-expand model is durable and proven. Chamath agrees the current metrics are impressive but is more guarded about years 3–5, questioning how much foundational AI models will eventually absorb Figma's core use case and whether that uncertainty undermines the investment thesis for institutional buyers. Both hosts acknowledge the AI obsolescence risk; where they diverge is in conviction, with Chamath preferring a long Figma / short Adobe spread as a hedged expression of the trade rather than a direct long.
Chamath sees Figma as a phenomenal business on current metrics but is cautious about years 3-5 given the unknown of how much foundational AI models will absorb into what they do, suggesting a long Figma / short Adobe spread as the safer trade.
if I could get like $50 or $100 million of Figma, I would probably be long it and I would short an equivalent Quantum of Adobe, and I would just book the spread. And I think you make a ton of money that way.”1:16:29
Friedberg is bullish on Figma's proven land-and-expand model, citing 40%+ revenue growth, 43% operating cash flow margin, and 130% net revenue retention, while acknowledging the longer-term risk of AI obsolescence.
They ran a 43% operating cash flow margin in Q1. So in Q1 of this year, Figma generated $95 million of free cash flow. They've got net revenue retention of like 130%. So this land and expand is proven out and there's real durability.”1:15:49