Dylan Subject, co-founder and CEO of Figma, seems on the Bloomberg Know-how Summit in San Francisco on Might 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 Change underneath ticker image “FIG.”
The providing could be one of many hotly anticipated IPOs in recent times given Figma’s progress fee and its excessive personal market valuation. In late 2023, a $20 billion acquisition settlement with Adobe was scrapped attributable to regulatory considerations within the U.Ok. That led Adobe to pay Figma a $1 billion termination payment.
Income within the first quarter elevated 46% to $228.2 million from $156.2 million in the identical interval a yr in the past, in response to Figma’s prospectus. The corporate recorded a internet earnings 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 had been contributing a minimum of $100,000 a yr to annual income, up 47% from a yr earlier. Purchasers embody Amazon Net Providers, Google, Microsoft and Netflix. Greater than half of income comes from outdoors the U.S.
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 Road banks predicted a rush of IPOs after Donald Trump received the U.S. presidential election in November following a dry spell courting again to late 2021, when hovering inflation and rising rates of interest pushed buyers out of dangerous property. Whereas President Trump’s announcement of sweeping tariffs in April roiled markets and led various corporations to delay their plans, exercise has been choosing up of late.
Stablecoin issuer Circle doubled in worth in its early June debut and is now up greater than sixfold from its IPO value for a market cap of virtually $43 billion. On-line banking firm Chime additionally debuted in June, following Hinge Well being’s IPO in Might. 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.Ok., filed for a U.S. IPO in March, as did ticket market StubHub.
Figma was based in 2012 by CEO Dylan Subject, 33, and Evan Wallace, and relies in San Francisco. The corporate had 1,646 staff as of March 31.
Earlier than establishing Figma, Subject spent over two years at Brown College, the place he met Wallace. Subject then took a Thiel Fellowship “to pursue entrepreneurial initiatives,” in response to the submitting. The 2-year program that Founders Fund accomplice Peter Thiel established in 2011 offers younger entrepreneurs a $200,000 grant together with help from founders and buyers, in response to an on-line description.
Subject is the most important 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 “pattern of many wonderful corporations staying privately indefinitely.”
Databricks, SpaceX and Stripe are amongst high-valued corporations which can be nonetheless personal.
“A few of the apparent advantages such pretty much 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 concept of our group sharing within the possession of Figma — and the easiest way to perform that is by public markets.”
Subject added that as a public firm, buyers ought to “anticipate us to take large swings,” together with by acquisitions. In April Figma purchased the property and workforce of an unnamed know-how firm for $14 million, in response to the submitting.
The IPO can even 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, in response to 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 monthly, and solely one-third of them are designers, in response to the submitting. In March the corporate introduced Figma Websites, a instrument 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.
As of March 31, Figma had $1.54 billion in money, money equivalents and marketable securities.
Utilizing its money, Figma has begun investing in digital currencies. In 2024, Figma’s board approved a $55 million funding right into a Bitwise Bitcoin exchange-traded fund. As of March 31, the holding was value $69.5 million, in response to the submitting. In Might, the board permitted 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 inaccurate inventory change within the headline.
— CNBC’s Ari Levy and Jonathan Vanian contributed to this report.
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