Canva cut its 2026 growth forecast by a third as AI serving costs blow up.

1:08They're not A+. >> Any investment I've made that is not run by a founder. It's going to be a zero in this. Ready to go. [music] Okay, boys. We're going to start with something other than open AI or anthropic today. We're going to start with Canva, baby. We had Cliff on the show before. Now, Canva cuts 2026 growth by a third as AI serving costs blow up.

1:40So right for those that maybe missed this story on Canva, what should they know that they need to know here? >> Sure. Yeah, let's start with the facts and then kind of come to the question. The facts are that Canva, you know, large privately held company in the kind of creative suite space discloses its revenue even though they're private and you know they they were at three billion

2:00in gap revenue last year. Going into this year they're growing at 30%. and the CEO Melly Perkins disclosed kind of midyear that they're probably going to be growing 20% by the end of this year. So, as you say, a one-third slowdown in growth rate, but still a healthy 20%. And then the other half of what she said was interesting, which was that they're obviously adding a ton of AI features.

2:21Those features cost real money. And part of the reason that she claimed for the slowdown in growth, it was just too expensive to effectively be subsidizing um users with kind of cheap AI when in fact they're incurring significant costs. So there was an implication there which I'm actually going to tease out later. I'm not sure I fully buy which was my growth rate slowed but if I was

2:42willing to lose more money it mightn't have slowed by as much. So there's an implied statement on elasticity there. But the big picture and this is kind of I want to zoom out and ask Jason a question. the big picture on this and all three there's three create massive creative software companies. There's Adobe which does 23 billion growing at 12% trading at like three or four times

3:03revenue. There's Figma which is also public doing at 1.4 billion uh growing at 40% the fastest and in the middle there's Canva still private around 3.6 billion growing at 20%. Right? And the big question for all three of them is, and that's why I want to put it back to Jason, who's much more I've used them, but not as much as Jason. Is is AI going to be a feature they can incorporate or