Canva trims growth outlook to 20% as AI costs force slower rollout

Canva reduced its expected revenue growth to 20% after the expense of delivering generative AI features prompted a pause in their broader rollout, CEO Melanie Perkins said.

Canva, the design-software startup known for pairing rapid expansion with profitability, lowered its projected revenue growth rate to 20% after the high expense of delivering generative AI features forced a slowdown in their rollout. CEO Melanie Perkins said user demand for AI tools exceeded expectations, prompting the firm to pause a wide release while it rebuilds its infrastructure to cut per-task costs, which she claims have fallen nearly 90% since the April launch of Canva AI 2.0.

The company is also adding products such as Canva Code to move beyond design into broader workplace workflows, a shift that coincides with its evaluation of a potential public offering. Industry analyst Derek Hernandez noted that similar AI cost pressures have reduced Figma’s free-cash-flow margin and slowed its growth, highlighting a broader challenge for SaaS firms where AI inference expenses erode traditional low-marginal-cost models.

By tempering its AI expansion, Canva appears to be protecting profitability ahead of an anticipated IPO. The situation underscores the tension between capitalising on AI demand and maintaining sustainable economics in the software sector.