Design software company Figma officially filed for an initial public offering (IPO) on Tuesday, planning to trade on the New York Stock Exchange under the symbol “FIG.” The move follows a cancelled $20 billion acquisition deal with Adobe in late 2023, which was abandoned due to regulatory concerns in the U.K., with Adobe paying a $1 billion termination fee.
Figma reported strong financial performance in its IPO filing. Revenue rose 46% year-over-year in the first quarter, reaching $228.2 million, with net income growing to $44.9 million from $13.5 million a year earlier. The company serves approximately 450,000 customers, including notable clients such as Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow, and Stripe. Of these, 1,031 customers contributed at least $100,000 annually, marking a 47% increase from the previous year.
ServiceNow CEO Bill McDermott has joined Figma’s board, adding leadership experience from his roles at ServiceNow and Zoom.
Market Context and IPO Timing
The company did not specify the number of shares it intends to sell. Valued at $12.5 billion in a tender offer last year, Figma confidentially filed for its IPO with the SEC earlier this year. Wall Street anticipated a surge in IPO activity following the 2024 U.S. presidential election, after a period of investor caution due to inflation and interest rate concerns. Despite some setbacks from recent tariffs, several tech IPOs have recently shown strong performances, such as Circle, Chime, and CoreWeave.
Founded in 2012 by Dylan Field and Evan Wallace, Figma is headquartered in San Francisco and had 1,646 employees as of March 31. Field, the largest individual shareholder, owns 56.6 million Class B shares, controlling 51.1% of voting power. He has expressed the desire to move away from the trend of private companies staying private indefinitely, citing benefits such as brand awareness, liquidity, and capital access through public markets.
Competitive Landscape and User Base
Figma acknowledges facing “intense competition” but did not name specific rivals in its filing. The platform has over 13 million monthly users, only about a third of whom are designers. While 85% of users are outside the U.S., 53% of revenue is generated internationally. Recent product expansions, such as Figma Sites—which converts designs into websites—show efforts to diversify beyond collaborative app and web design.
As of March, Figma held $1.54 billion in cash and equivalents. The company plans to continue “taking big swings,” including through acquisitions, as part of its growth strategy. Recent purchases include technology and content management startups, with investments also made into digital currencies like Bitcoin and USD Coin.
What The Author Thinks
Figma’s decision to go public signals both confidence in its strong growth trajectory and a readiness to expand aggressively through acquisitions. The shift from private to public markets brings greater accountability but also more resources to challenge competitors and innovate. Balancing rapid growth with market expectations will be crucial for Figma’s continued success.
Featured image credit: Sequoia Capital
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