Figma Inc. has filed for an initial public offering, aiming to list its Class A common stock on the New York Stock Exchange under the symbol “FIG,” marking a significant step for the San Francisco-based design platform.
What Happened: The company, known for its collaborative browser-based tools used by major clients such as Microsoft Corp. (NASDAQ:MSFT), Alphabet Inc. (NASDAQ:GOOGL) (NASDAQ:GOOG) and Salesforce Inc. (NYSE:CRM), reported robust financial growth ahead of its public debut.
For the year ended December 31, 2024, Figma posted revenue of $749 million, a 48% increase year-over-year, and for the first quarter of 2025, revenue reached $228.2 million, up 46% from the prior year period. The company's compounded annual revenue growth rate over four years stands at 53%.
Figma's net income swung from $737.8 million in 2023—boosted by a $1 billion termination fee from the abandoned Adobe Inc. (NASDAQ:ADBE) merger—to a net loss of $732.1 million in 2024, largely due to one-time stock-based compensation expenses. However, the company returned to profitability in the first quarter of 2025 with net income of $44.9 million.
Figma's platform is now used by 95% of the Fortune 500 and 78% of the Forbes Global 2000, reflecting its widespread adoption across industries. The company has rapidly expanded its product suite, launching features such as Dev Mode for developers, FigJam for ideation, and new AI-powered tools like Figma Make, which can generate functional prototypes from prompts.
Why It Matters: Its Net Dollar Retention Rate was 134% at the end of 2024 and 132% as of March, indicating strong customer expansion and retention.
The IPO follows Figma's earlier attempt to be acquired by Adobe for $20 billion, a deal blocked by regulatory authorities over antitrust concerns. Figma's most recent private valuation was $12.5 billion, set during a secondary share sale in 2024. Founder and CEO Dylan Field will retain significant voting power post-IPO, due to Figma's multi-class share structure.
Figma's business model is subscription-based, offering tiered plans for individuals, organizations, and enterprises, with pricing tailored to different user roles and workflows.
The company plans to use IPO proceeds for working capital, product development, and potential acquisitions, while repaying certain outstanding indebtedness. Figma does not anticipate paying dividends in the near future.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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