Figma co-founder and CEO Dylan Field appeared at the Bloomberg Technology Summit in San Francisco on May 9, 2024.
David Paul Morris | Bloomberg | Getty Images
Design software company Figma applied for an IPO on Tuesday and is scheduled to trade on the New York Stock Exchange under the ticker symbol “Figure.”
This offering is one of the hotly anticipated IPOs in recent years given Figma’s growth rate and its high private market ratings. Second half of 2023, $20 billion acquisition agreement Adobe It was discarded due to regulatory concerns in the UK and has now started paying Figma a $1 billion cancellation fee.
First quarter revenue rose to $228.2 million, up 46% from $156.2 million in the same period last year. The company recorded a net profit of $44.9 million compared to $13.5 million the previous year.
As of March 31st, Figma had around 450,000 customers. Of these, 1,031 people donated at least $100,000 per year to their annual revenue, an increase of 47% from the previous year. Clients are included DuolingoMercadribble, Netflixfive-gram star, ServiceNow and stripes. ServiceNow CEO Bill McDermott took his seat on Figma’s board of directors, according to the filing. He’s sitting too zoom He continues to serve as the board of directors and Chairman of ServiceNow.
Figma did not say how many shares it plans to sell through the IPO. The company announced last year that it was valued at $12.5 billion in the tender offer and in April it was filed confidentially with the IPO.
Wall Street banks predicted a rush of IPOs after Donald Trump won the US presidential election in November after rising inflation and interest rates kicked investors out of dangerous assets following the dry spell dating back to late 2021. President Trump’s announcement that he wiped out tariffs in April has led to markets, causing many businesses to delay plans, but the activity has been picked up recently.
Stablecoin Publisher Round Their value doubled when they debuted in early June, and now they have more than six times higher than the IPO price with a market capitalization of around $43 billion. Online banking company Chime also debuted in June Hinge Health IPO in May. Artificial Infrastructure Providers coreweaveIt was released in March, jumped 46% in June, and has quadrupled since its offering.
Buy now, paid the UK-based company Klarna and applied for a US IPO in March.
Figma was founded in 2012 by CEOs Dylan Field, 33 and Evan Wallace and is based in San Francisco. The company had 1,646 employees as of March 31st.
Before founding Fitma, Field spent more than two years at Brown University, where he met Wallace. According to the filing, Field adopted the Thiel Fellowship “to pursue entrepreneurial projects.” According to an online account, the two-year program, which founders funded partners in 2011, gives young entrepreneurs $200,000 grants and support from founders and investors.
Field is Figma’s largest private owner, with 56.6 million shares and 51.1% voting rights ahead of the IPO. In a letter to investors, he said it was time for Figma to defy “the many surprising corporate trends that personally stay indefinitely.”
Databricks, SpaceX and Stripe are still one of the private, high value companies.
“Some of the obvious benefits apply, including good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets,” he decided, explaining the decision. “More importantly, we love the idea that our community shares ownership of Figma. The best way to achieve this is through the open market.”
The IPO also marks a much-needed victory for Silicon Valley ventures that need returns after a multi-year slump. Index Ventures is the largest external shareholder, and according to filings it has a 17% stake before the offer. Greylock controls 16%, Kleiner Perkins controls 14%, and Sequoia’s shares are 8.7%.
Figma said it faces “fierce competition” and that losses in market share “will have a negative impact on our business,” but did not name certain competitors.
According to submissions, over 13 million people use Figma per month, with only one-third of them being designers. As of March 31, approximately 85% of monthly users were outside the US, while 53% of revenue came from overseas.
In March, the company announced its Figma site. This is a tool to turn your design into a working website. This is one of several new products that diversify the company from collaborative services to create apps and website designs.
Figma had $1.54 billion in cash, cash equivalents and marketable securities at the end of March.
In a letter, Field said, as a public company, investors should “hopefully expect us to make a big swing,” including acquisitions.
In April, Figma bought the assets and teams of an undecided technology company for $14 million and acquired the unnamed company with content management system software for $35.5 million. In April, software startup Modyfi said he would be joining Figma, and in June, Figma revealed that he had obtained the payload in a blog post. Google and mongodb.
Figma has also begun investing in digital currencies. In 2024, Figma’s board approved a $55 million investment in Bitwise’s Bitcoin Exchange Trade Fund. As of March 31, the holdings were worth $69.5 million, according to the filing. In May, the board approved a $30 million investment in Bitcoin, and Figma spent money on USD Coin, a Stablecoin.
Morgan Stanley and Goldman Sachs Leading the deal with Allen and the company jpmorgan chain.
Fix: Previous versions of this story had a false stock exchange in the heading.
– CNBC’s Ari Levy and Jonathan Vanian contributed to this report.
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