SAN FRANCISCO: Figma, a design software company, has filed for an initial public offering on Tuesday, marking one of the most anticipated market debuts in recent years as it prepares to list on the New York Stock Exchange under the ticker symbol “FIG.”
The San Francisco-based company, known for its collaborative design tools, reported a 46% surge in first-quarter revenue to $228.2 million, up from $156.2 million a year earlier, according to its prospectus. Net income also rose sharply to $44.9 million, compared with $13.5 million in the same period last year.
Figma’s IPO comes after its $20 billion acquisition by Adobe collapsed in late 2023 due to regulatory objections in the U.K., prompting Adobe to pay a $1 billion termination fee. The company was later valued at $12.5 billion in a 2024 tender offer.
Growing Customer Base, Global Reach
As of March 31, Figma had 1,031 customers contributing at least $100,000 annually to its revenue, a 47% increase year-over-year. More than half of its revenue comes from outside the U.S., underscoring its global footprint.
The filing did not disclose the number of shares to be sold or the expected pricing range. Figma confidentially submitted its IPO paperwork to the Securities and Exchange Commission in April.
IPO Market Gains Momentum
The offering arrives amid a resurgence in IPO activity following a prolonged slowdown that began in late 2021, when rising interest rates and inflation dampened investor appetite for risk. While market volatility triggered by former President Donald Trump’s tariff announcements in April caused some companies to pause listings, recent debuts have shown strong performance.
Stablecoin issuer Circle more than doubled on its first trading day in early June and has since surged sixfold from its IPO price. Online banking firm Chime and artificial infrastructure provider CoreWeave have also seen robust post-listing gains. Other companies, including U.K.-based Klarna and ticket marketplace StubHub, have filed for U.S. IPOs this year.
Founder’s Vision: Taking ‘Big Swings’
Figma was founded in 2012 by CEO Dylan Field, 33, and Evan Wallace after the two met at Brown University. Field, who later received a Thiel Fellowship, holds 56.6 million Class B shares and controls 51.1% of voting power ahead of the IPO.
In a letter to investors, Field said going public would allow Figma to “buck the trend of many amazing companies staying private indefinitely,” citing benefits such as liquidity, brand awareness and access to capital. He also hinted at potential acquisitions, noting that Figma purchased an unnamed tech company’s assets for $14 million in April.
Venture Firms Eye Returns
The IPO could deliver much-needed returns for Silicon Valley investors after years of lackluster exits. Index Ventures is Figma’s largest outside shareholder with a 17% pre-IPO stake, followed by Greylock (16%), Kleiner Perkins (14%) and Sequoia Capital (8.7%).
Figma warned of “intense competition” in its filing but did not name rivals. Morgan Stanley, Goldman Sachs, Allen & Co. and JPMorgan Chase are leading the offering.
The company employs 1,646 workers as of March 31.