Key Takeaways
- Figma and UiPath are two AI-powered companies that streamline workflows and automate repetitive tasks.
- Figma’s cloud-based UI and UX design tools use AI to generate design ideas and prototypes, while UiPath’s software robots automate tasks such as data entry and onboarding new customers.
- Figma’s revenue is expected to grow at a CAGR of 27% from 2024 to 2027, but its high valuation and shrinking margins are concerns.
- UiPath’s revenue is expected to grow at a CAGR of 10% from 2025 to 2028, and it is expected to turn profitable for the first time in fiscal 2026.
- UiPath’s lower valuation and rising profits make it a more compelling AI play in the current market.
Introduction to Figma and UiPath
Figma and UiPath are two companies that utilize artificial intelligence (AI) to streamline workflows and automate repetitive tasks. Figma, a cloud-based user interface (UI) and user experience (UX) design tool, uses AI to generate design ideas and prototypes, auto-edit content, create summaries, and output code. On the other hand, UiPath’s software robots automate tasks such as data entry, mass emails, and onboarding new customers. As the article states, "Figma’s cloud-based UI and UX design tools can run natively within a web browser without requiring local installation, making them more lightweight and scalable than traditional UI/UX development tools from Adobe and other software makers."
Figma’s Growth and Challenges
Figma’s growth has been impressive, with its revenue increasing 48% to $749 million in 2024. However, the company’s costs are rising as it expands its newer products, including Figma Draw, Figma Sites, and its AI tools. As the article notes, "Figma is growing rapidly, but its costs are rising as it expands its newer products… Its margins are shrinking as it ramps up its cloud infrastructure, sales, and marketing spending." Figma’s high valuation, with an enterprise value of nearly $17 billion, is also a concern. The company’s stock is trading at 13 times its sales and 124 times its earnings before interest, taxes, depreciation, and amortization (EBITDA), which is a steep price to pay for a company that has not yet proven its business model is sustainable.
UiPath’s Growth and Opportunities
UiPath, on the other hand, is the world’s top robotic process automation (RPA) company, serving over 60% of the Fortune 500 companies. The company’s revenue has grown at a robust CAGR of 24% from fiscal 2021 to fiscal 2025, but its growth decelerated in fiscal 2023, fiscal 2024, and fiscal 2025. As the article states, "UiPath’s growth decelerated in fiscal 2023, fiscal 2024, and fiscal 2025 — when its revenue grew a mere 9%." However, the company is expected to turn profitable for the first time in fiscal 2026 and remain profitable for at least the next two years. UiPath’s lower valuation, with an enterprise value of $7.34 billion, makes it a more attractive option for investors.
Comparison and Conclusion
Both Figma and UiPath have the potential to continue growing over the next few years. However, UiPath’s rising profits and lower valuation make it a more compelling AI play in the current market. As the article concludes, "UiPath’s rising profits and lower valuation make it the more compelling AI play in this frothy market." Figma, on the other hand, needs to balance its growth and spending before investors can consider purchasing its stock. As the article notes, "Figma’s stock isn’t a bargain at 13 times this year’s sales and 124 times its EBITDA, and it hasn’t proven its business model is sustainable." Ultimately, investors need to carefully consider the pros and cons of each company before making a decision.
https://www.fool.com/investing/2026/01/01/better-artificial-intelligence-stock-figma-vs-uipa/