Figma IPO Could Be the iPhone Moment for AI Design — Here's What Adobe and Many Investors Missed

After Adobe abandoned its $20 billion acquisition, Figma is now set to go public on July 31 under the ticker symbol FIG, with a valuation of up to $16.4 billion. While the robust recovery of the IPO market and past valuation benchmarks point to a strong debut, our optimism goes far beyond favorable market sentiment. Figma’s enterprise-focused monetization, solid financials, and aggressive AI integration position it as a true disruptor in the design space—potentially delivering what many are calling the “iPhone moment” in design, a vision Adobe failed to realize.

The IPO is backed by a powerhouse team including Morgan Stanley, Goldman Sachs, JPMorgan, Bank of America, Wells Fargo, and others—essentially an all-star Wall Street underwriting lineup. The company plans to sell roughly 37 million shares at $25 to $28 apiece, implying a fully diluted valuation between $14.6 billion and $16.4 billion, still below Adobe’s original $20 billion offer. We wouldn’t be surprised if the valuation surpasses that figure once the stock hits the market, but more importantly, we believe Figma's long-term potential exceeds that number significantly.

What Is Figma

Figma is a collaborative interface design tool that brings together designers, product managers, developers, marketers, and others throughout the entire product lifecycle—from brainstorming to development to go-to-market. This one-stop platform can accelerate a project from conception to monetization, in contrast to Adobe's fragmented, standalone tools that address narrower use cases.

The platform’s key metrics are impressive. Figma boasts 13 million monthly active users, with two-thirds being non-designers—highlighting its broad functionality beyond just visual design. It is already used by 95% of Fortune 500 companies and 78% of the Forbes Global 2000, showing its wide and deep enterprise footprint. Notable customers include AWS, Netflix, Workday, SAP, ServiceNow, and Datadog. Given that all modern companies require design and marketing infrastructure, Figma has positioned itself as the default choice in a massive addressable market, which it estimates to be worth $33 billion.

The solid enterprise user base translates into stable cash flow, as large clients tend to remain loyal and expand usage when offered valuable updates. Figma's Net Dollar Retention Rate (NDR) was 134% and 121% in Q4 2024 and Q1 2025, respectively, indicating that customers are not only staying but also increasing their spending—an encouraging sign of real productivity and value delivery.

Skeptics may worry that the design industry could be undermined by advanced AIGC tools capable of replacing human designers with one-click prompts—concerns that contributed to Adobe’s share weakness and its decision to back out of the acquisition. However, as highlighted above, Figma’s strength lies in its deep enterprise integration. As of March 31, 2025, the company had 1,031 paying customers with over $100K in annual recurring revenue (ARR), up 47% year-over-year. Customers with over $10K in ARR reached 11,107, up 38%. Unlike Adobe, Figma is focused on enterprise workflows and end-to-end product development, while also embracing AI as an enhancer—not a threat.

Figma's “iPhone” Moment

Figma has explicitly branded itself as the “iPhone of design.” In May, the company announced Figma Make, its flagship AI product developed in collaboration with Claude AI. The tool allows users to turn text prompts directly into functional applications. Claude provides the language model that converts prompts into code, which Figma then visualizes in design form. This dramatically shortens the product-building process and allows designers to iterate quickly based on team feedback.

This integration isn't just for show—it’s a monetizable product. Figma Make is bundled into the enterprise package at $90 per user per month, compared to $35 for the developer plan. Given that enterprise clients are more eager to adopt advanced technologies, this AI-driven feature could further boost monetization.

Blockbuster Financials — With a Bitcoin Flavor

Figma's financial performance is arguably more attractive than many SaaS peers. The company reported $749 million in revenue for 2024, up 48% year-over-year, with a gross margin of 88%. Adjusted for stock-based compensation, the normalized margin likely exceeds 91%, putting it ahead of Adobe (~89%) and well above Palantir (~80%).

More notably, Figma’s R&D spending surged 356% to $751 million in 2024, compared to a 134% rise in Sales & Marketing costs to $472 million. This allocation reflects the company’s tech-first mindset, with heavy investment in AI integration and product development rather than just marketing. Investors should view this as a bullish signal that the company is focused on long-term innovation, not short-term hype.

Zooming in on the most recent quarter, Figma reported $228 million in revenue in Q1 2025, up 46% year-over-year, with a gross margin of 91.5%. Meanwhile, R&D and Sales & Marketing expenses rose by only 33% and 24%, respectively. Unlike many SaaS firms where revenue growth is heavily tied to increased marketing spend, Figma’s near-50% revenue growth came with controlled cost expansion—indicating organic demand and strong product-market fit. As a result, the company posted operating income of $39 million, up 217% year-over-year. This suggests R&D investment is already paying off, pushing Figma into a rare category of profitable, high-growth SaaS.

Investors will also note the “other income” line: a $1 billion gain in 2023, mostly from the Adobe merger termination fee, and $7 million in 2025 from other sources. Intriguingly, part of this came from strategic investments, including gradual purchases of Bitcoin ETFs. As of December 2024, Figma held $79 million in Bitcoin ETF assets, and may acquire more. A direct investment in Bitcoin wouldn't be a shock, adding a “tech-forward” crypto dimension to the IPO narrative. For some, this adds another layer of potential upside, especially if blockchain becomes more integrated in design collaboration.

Attractive Valuation with Significant Upside

At a $16 billion valuation, Figma would trade at 17.5x price-to-sales based on annualized Q1 revenue. Given its ~50% growth rate, broad enterprise footprint, and upcoming AI monetization, a 30x multiple would imply a $27 billion valuation—representing a 69% upside from IPO pricing. And that’s a conservative estimate. If investors fully grasp the potential of Figma’s end-to-end enterprise platform and its willingness to adopt and monetize AI, the valuation could soar even higher.

Figma is expected to be the largest IPO of the year, and many may still see it as just another Adobe. But the company is far more than that. Its leadership team is focused, its R&D investments are strategic, and its vision is bold. While retail investors may not see the hype factor that often surrounds names like Circle or other crypto-native firms, the fundamentals here are too compelling to ignore. This is a company redefining the design process—not just with sleek interfaces, but with a transformative business model, deeply integrated AI, and long-term enterprise vision.