Dylan Area, co-founder and CEO of Figma, seems on the Bloomberg Expertise Summit in San Francisco on Could 9, 2024.
David Paul Morris | Bloomberg | Getty Pictures
Design software program firm Figma filed for an IPO on Tuesday, and plans to commerce on the New York Inventory Trade below the ticker image “FIG.”
The providing could be one of many hotly anticipated IPOs lately given Figma’s development price and its excessive personal market valuation. In late 2023, a $20 billion acquisition settlement with Adobe was scrapped on account of regulatory issues within the U.Okay. That led Adobe to pay Figma a $1 billion termination charge.
Income within the first quarter elevated 46% to $228.2 million from $156.2 million in the identical interval a yr in the past, based on Figma’s prospectus. The corporate recorded a internet revenue of $44.9 million, in comparison with $13.5 million a yr earlier.
As of March 31, Figma had round 450,000 prospects. Of these, 1,031 have been contributing not less than $100,000 a yr to annual income, up 47% from a yr earlier. Purchasers embrace Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow and Stripe. ServiceNow CEO Invoice McDermott has taken a seat on Figma’s board, based on the submitting. He additionally sits on Zoom’s board and continues to function ServiceNow’s chairman.
Figma did not say what number of shares it plans to promote within the IPO. The corporate was valued at $12.5 billion in a tender supply final yr, and in April it introduced that it had confidentially filed for an IPO with the SEC.
Wall Avenue banks predicted a rush of IPOs after Donald Trump gained the U.S. presidential election in November following a dry spell relationship again to late 2021, when hovering inflation and rising rates of interest pushed buyers out of dangerous belongings. Whereas President Trump’s announcement of sweeping tariffs in April roiled markets and led numerous firms to delay their plans, exercise has been selecting up of late.
Stablecoin issuer Circle doubled in worth in its early June debut and is now up greater than sixfold from its IPO worth for a market cap of virtually $43 billion. On-line banking firm Chime additionally debuted in June, following Hinge Well being’s IPO in Could. Synthetic infrastructure supplier CoreWeave, which went public in March, jumped 46% in June and has quadrupled since its providing.
Purchase now, pay later firm Klarna, based mostly within the U.Okay., filed for a U.S. IPO in March, as did ticket market StubHub.
Figma was based in 2012 by CEO Dylan Area, 33, and Evan Wallace, and relies in San Francisco. The corporate had 1,646 workers as of March 31.
Earlier than establishing Figma, Area spent over two years at Brown College, the place he met Wallace. Area then took a Thiel Fellowship “to pursue entrepreneurial tasks,” based on the submitting. The 2-year program that Founders Fund associate Peter Thiel established in 2011 offers younger entrepreneurs a $200,000 grant together with assist from founders and buyers, based on an on-line description.
Area is the largest particular person proprietor of Figma, with 56.6 million Class B shares and 51.1% of voting energy forward of the IPO. He stated in a letter to buyers that it was time for Figma to buck the “development of many superb firms staying privately indefinitely.”
Databricks, SpaceX and Stripe are amongst high-valued firms which are nonetheless personal.
“A number of the apparent advantages such nearly as good company hygiene, model consciousness, liquidity, stronger foreign money and entry to capital markets apply,” he wrote, explaining the choice. “Extra importantly, I like the thought of our neighborhood sharing within the possession of Figma — and one of the best ways to perform that is by public markets.”
The IPO may also mark one other much-needed win for Silicon Valley enterprise companies, that are in want of returns after the multi-year hunch. Index Ventures is the most important outdoors shareholder, with a 17% stake earlier than the providing, based on the submitting. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a stake of 8.7%.
Figma stated it faces “intense competitors” and that lack of market share would “adversely have an effect on our enterprise,” however did not identify any particular rivals.
Over 13 million folks use Figma per thirty days, and solely one-third of them are designers, based on the submitting. Round 85% of month-to-month customers have been outdoors the U.S. as of March 31, however 53% of income got here from outdoors the nation.
In March the corporate introduced Figma Websites, a software that turns designs into working web sites. It is one of some new merchandise that diversify the corporate away from its collaborative service for crafting app and web site designs.
Figma had $1.54 billion in money, money equivalents and marketable securities on the finish of March.
Area stated within the letter that as a public firm, buyers ought to “anticipate us to take massive swings,” together with by acquisitions.
In April Figma purchased the belongings and group of an unspecified expertise firm for $14 million and purchased purchased an unnamed firm with content material administration system software program for $35.5 million, based on the submitting. In April design software program startup Modyfi stated it might be becoming a member of Figma, and in June Figma revealed in a weblog submit that it acquired Payload, a content-management software program startup with backed by Google and MongoDB.
Figma has additionally begun investing in digital currencies. In 2024, Figma’s board licensed a $55 million funding right into a Bitwise Bitcoin exchange-traded fund. As of March 31, the holding was price $69.5 million, based on the submitting. In Could, the board accredited a $30 million funding in Bitcoin, and Figma spent the cash on USD Coin, which is a stablecoin.
Morgan Stanley and Goldman Sachs are main the deal together with Allen and Co. and JPMorgan Chase.
Correction: A previous model of this story had the wrong inventory alternate within the headline.
— CNBC’s Ari Levy and Jonathan Vanian contributed to this report.
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