Figma Files for IPO After 46% Revenue Growth, 100 Million Dollar Termination Fee

Figma, a leading design software company, has officially filed for an Initial Public Offering (IPO) in the United States. The company, which was previously in talks for an acquisition by Adobe, has decided to pursue an independent listing on the New York Stock Exchange under the ticker symbol "FIG." This move comes after the termination of its acquisition agreement with Adobe due to opposition from British regulatory authorities, which resulted in a termination fee of 100 million dollars for Figma.

Figma's decision to go public is driven by its impressive growth and high valuation in the private market. The company reported a 46% year-over-year increase in revenue for the first quarter of this year, rising from 156.2 million dollars to 228.2 million dollars. Net profits also surged from 13.5 million dollars to 44.9 million dollars during the same period. This robust financial performance has positioned Figma as one of the most anticipated IPOs in recent years, with analysts viewing its market debut as a key indicator of the recovery in the U.S. IPO market. The success of Figma's IPO could also set a precedent for other high-valued private companies awaiting their public listings.

The rapid growth of Figma can be attributed to its extensive and high-quality customer base. The company boasts over 13 million monthly active users, with only a third of them being designers. As of March 31, approximately 85% of its monthly active users are from regions outside the United States, although 53% of its revenue comes from international markets. Figma's client list includes notable enterprises such as Duolingo, Mercado Libre, Netflix, and Stripe, among others. The company has approximately 450,000 enterprise clients, with 1,031 of them contributing more than 100,000 dollars in annual revenue, reflecting a 47% year-over-year increase.

The IPO will also provide much-needed returns for venture capital firms in Silicon Valley. Index Ventures is the largest external shareholder, holding a 17% stake before the IPO. Other significant investors include Greylock with 16%, Kleiner Perkins with 14%, and Sequoia Capital with 8.7%. The company was founded in 2012 by its current 33-year-old CEO and Evan Wallace. The CEO is the largest individual shareholder, owning 56.6 million Class B shares and holding 51.1% of the voting power before the IPO.

Looking ahead, Figma plans to adopt an aggressive expansion strategy. The CEO has stated that investors should expect bold moves, including acquisitions and investments. As of March 31, the company holds 1.54 billion dollars in cash, cash equivalents, and marketable securities, providing ample resources for future investments and acquisitions. Figma has already begun executing this strategy. In April, the company acquired the assets and team of an unnamed tech company for 14 million dollars and a content management system software company for 35.5 million dollars. Additionally, the design software startup Modyfi announced its integration with Figma in the same month. In June, Figma revealed the acquisition of Payload, a content management software startup backed by Google and MongoDB.

Figma has also ventured into digital currency investments. In 2024, the company's board approved a 55 million dollar investment in the Bitwise Bitcoin Exchange-Traded Fund, which was valued at 69.5 million dollars as of March 31. In May, the board approved a 30 million dollar investment in Bitcoin, with funds allocated to the USD Coin stablecoin. These strategic moves underscore Figma's commitment to growth and innovation, positioning the company for continued success in the competitive design software market.