Figma Stock Soars on IPO Debut Amid Strong Revenue Growth and Profitability

Figma's stock tripled on its IPO day after pricing at $33, opening at $85, and continuing to climb. The company has strong revenue growth, profitability, a large addressable market, and scalability of its product. Adobe's attempted $20 billion acquisition and the regulator's blocking of the deal serve as a stamp of approval. Figma's quarterly numbers show a 46% revenue growth over four quarters, a 17% operating margin, and a 91% gross margin.

Figma, the collaborative design software vendor, made a significant splash on Thursday as its stock soared in its New York Stock Exchange debut. The company's initial public offering (IPO) price was set at $33 per share, but the stock more than tripled on the first day, opening at $85 and climbing to a high of $124.63 intraday before closing at $115.50, a 250% gain [1].

The IPO comes after a multiyear lull in the tech IPO market, which began in early 2022 when inflation and rising interest rates made it challenging for companies to secure funding. However, Figma's strong financial performance and the growing demand for its product have reignited investor interest in tech IPOs [1].

Figma's revenue growth and profitability are notable. In its latest quarterly results, the company reported a 46% revenue growth over four quarters, a 17% operating margin, and a 91% gross margin [2]. The company has a large addressable market and strong scalability due to its web-based software, which allows for real-time collaboration on designs for apps and websites [1].

Adobe's attempted acquisition of Figma for $20 billion in 2022, which was blocked by U.K. regulators due to concerns about competition, serves as a stamp of approval for Figma's market position and growth potential [1]. The company has more than 13 million monthly users, with two-thirds of them not being designers, and boasts a client list that includes Google, Microsoft, Netflix, and Uber [1].

The IPO raised $1.2 billion, with most of the proceeds going to existing shareholders, including venture capital firms Greylock Partners, Index Ventures, Kleiner Perkins, and Sequoia Capital [1]. The strong demand for Figma's IPO, which was 40 times oversubscribed, indicates a high level of investor confidence in the company's future prospects [3].

Figma's stock performance and strong financials have the potential to re-energize the tech IPO market and encourage other private software companies to go public. The company's IPO stands out as a "bellwether event for the tech sector" and could set a new standard for tech IPOs in the coming years [2].

References:
[1] https://www.cnbc.com/2025/07/31/figma-fig-starts-trading-on-nyse-after-ipo.html
[2] https://www.morningstar.com/news/marketwatch/20250731473/how-figmas-soaring-stock-made-for-a-historic-ipo-and-what-may-come-next
[3] https://vestedfinance.com/blog/us-stocks/why-figma-might-be-the-biggest-ipo-of-2025/