AI Business
17h ago
Canva lowers revenue growth forecast due to high AI costs impacting rollout plans
Aug 12, 2026
AI Summary
Canva has reduced its expected revenue growth rate from 30% to 20% due to increased costs associated with delivering AI features. CEO Melanie Perkins indicated that while demand for AI tools has surged, the company is prioritizing cost management and architectural improvements before expanding its AI offerings.
- Canva has cut its revenue growth forecast by a third, now expecting 20% growth instead of 30%.
- The decision comes after high costs related to the rollout of AI features, which exceeded the company's expectations.
- CEO Melanie Perkins noted that the demand for AI tools was significant, prompting the need to manage costs before a broader rollout.
- Canva has reduced the cost per AI task by nearly 90% since launching Canva AI 2.0 in April, but user activity has tripled.
- The situation reflects a wider trend in the software industry where AI integration is affecting traditional business models and profit margins.
- Figma, a competitor, has also reported a decline in free-cash-flow margins and slower growth due to similar AI cost challenges.
- The AI cost issues are particularly relevant as Canva considers a potential IPO, previously valued at $42 billion in an employee share sale.
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