Dylan Field, co-founder and CEO of Figma, appears at the Bloomberg Technology Summit in San Francisco on May 9, 2024.
David Paul Morris | Bloomberg | Getty Images
Design software company Figma filed for an IPO on Tuesday, and plans to trade on the New York Stock Exchange under the ticker symbol “FIG.”
The offering would be one of the hotly anticipated IPOs in recent years given Figma’s growth rate and its high private market valuation. In late 2023, a $20 billion acquisition agreement with Adobe was scrapped due to regulatory concerns in the U.K. That led Adobe to pay Figma a $1 billion termination fee.
Revenue in the first quarter increased 46% to $228.2 million from $156.2 million in the same period a year ago, according to Figma’s prospectus. The company recorded a net income of $44.9 million, compared to $13.5 million a year earlier.
As of March 31, Figma had around 450,000 customers. Of those, 1,031 were contributing at least $100,000 a year to annual revenue, up 47% from a year earlier. Clients include Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow and Stripe. ServiceNow CEO Bill McDermott has taken a seat on Figma’s board, according to the filing. He also sits on Zoom’s board and continues to serve as ServiceNow’s chairman.
Figma didn’t say how many shares it plans to sell in the IPO. The company was valued at $12.5 billion in a tender offer last year, and in April it announced that it had confidentially filed for an IPO with the SEC.
Wall Street banks predicted a rush of IPOs after Donald Trump won the U.S. presidential election in November following a dry spell dating back to late 2021, when soaring inflation and rising interest rates pushed investors out of risky assets. While President Trump’s announcement of sweeping tariffs in April roiled markets and led a number of companies to delay their plans, activity has been picking up of late.
Stablecoin issuer Circle doubled in value in its early June debut and is now up more than sixfold from its IPO price for a market cap of almost $43 billion. Online banking company Chime also debuted in June, following Hinge Health’s IPO in May. Artificial infrastructure provider CoreWeave, which went public in March, jumped 46% in June and has quadrupled since its offering.
Buy now, pay later company Klarna, based in the U.K., filed for a U.S. IPO in March, as did ticket marketplace StubHub.
Figma was founded in 2012 by CEO Dylan Field, 33, and Evan Wallace, and is based in San Francisco. The company had 1,646 employees as of March 31.
Before establishing Figma, Field spent over two years at Brown University, where he met Wallace. Field then took a Thiel Fellowship “to pursue entrepreneurial projects,” according to the filing. The two-year program that Founders Fund partner Peter Thiel established in 2011 gives young entrepreneurs a $200,000 grant along with support from founders and investors, according to an online description.
Field is the biggest individual owner of Figma, with 56.6 million Class B shares and 51.1% of voting power ahead of the IPO. He said in a letter to investors that it was time for Figma to buck the “trend of many amazing companies staying privately indefinitely.”
Databricks, SpaceX and Stripe are among high-valued companies that are still private.
“Some of the obvious benefits such as good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets apply,” he wrote, explaining the decision. “More importantly, I like the idea of our community sharing in the ownership of Figma — and the best way to accomplish this is through public markets.”
The IPO will also mark another much-needed win for Silicon Valley venture firms, which are in need of returns after the multi-year slump. Index Ventures is the largest outside shareholder, with a 17% stake before the offering, according to the filing. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a stake of 8.7%.
Figma said it faces “intense competition” and that loss of market share would “adversely affect our business,” but didn’t name any specific competitors.
Over 13 million people use Figma per month, and only one-third of them are designers, according to the filing. Around 85% of monthly users were outside the U.S. as of March 31, but 53% of revenue came from outside the country.
In March the company announced Figma Sites, a tool that turns designs into working websites. It’s one of a few new products that diversify the company away from its collaborative service for crafting app and website designs.
Figma had $1.54 billion in cash, cash equivalents and marketable securities at the end of March.
Field said in the letter that as a public company, investors should “expect us to take big swings,” including through acquisitions.
In April Figma bought the assets and team of an unspecified technology company for $14 million and acquired an unnamed company with content management system software for $35.5 million, according to the filing. In April design software startup Modyfi said it would join Figma, and in June Figma revealed in a blog post that it acquired Payload, a content-management software startup with backing from Google and MongoDB.
Figma has also begun investing in digital currencies. In 2024, Figma’s board authorized a $55 million investment into a Bitwise Bitcoin exchange-traded fund. As of March 31, the holding was worth $69.5 million, according to the filing. In May, the board approved a $30 million investment in Bitcoin, and Figma spent the money on USD Coin, which is a stablecoin.
Morgan Stanley and Goldman Sachs are leading the deal along with Allen and Co. and JPMorgan Chase.
Correction: A prior version of this story had the incorrect stock exchange in the headline.
— CNBC’s Ari Levy and Jonathan Vanian contributed to this report.
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