Has anyone been following the Figma IPO news?
I saw that the design software company just announced they’re going public and will be trading on NYSE with the ticker “FIG”. This seems like it could be a pretty big deal given how popular their platform has become.
From what I read, their revenue jumped 46% in Q1 to around $228 million compared to $156 million the year before. They also turned a nice profit of about $45 million versus $13.5 million previously.
What’s interesting is this comes after that whole Adobe acquisition drama from 2023. Remember when Adobe was going to buy them for $20 billion but then regulators in the UK blocked it? Adobe ended up paying Figma $1 billion just to cancel the deal.
With the IPO market heating up lately, I’m wondering if this might encourage other big private companies like Stripe or Databricks to make similar moves. What do you all think about Figma’s timing here?
Honestly surprised they’re going public this soon after the Adobe mess. That $1B breakup fee probably gave them a nice cash cushion though. Figma’s basically essential for most design teams I know - kind of like Slack before Microsoft Teams took over. Wonder if the valuation will actually reflect how dominant they are, or if investors are still worried about Adobe’s creative suite competing.
Been using Figma professionally for three years - their user growth is crazy impressive. What gets me is how they kept shipping at full speed even during the Adobe acquisition mess. Most companies freeze up during M&A, but Figma just kept dropping features designers actually use. The revenue makes total sense when you think about how many teams ditched Adobe XD and Sketch when remote work hit. Their collab tools went from nice-to-have to must-have overnight. IPO timing is smart - they’re crushing it right now before Adobe figures out how to compete. Plus that breakup fee definitely makes their books look good to investors.
timing’s solid, esp after dodging that adobe mess. growth numbers r impressive and design tools market’s still expanding fast. could be undervalued compared to other saas companies that went public recently.
The regulatory approval piece really stands out to me. They’ve already been through the wringer with that Adobe deal scrutiny, so they won’t hit the same antitrust roadblocks other tech companies face during IPO. Their enterprise subscriber growth has been solid - institutional investors love that predictable revenue. Plus the design software space isn’t packed like other SaaS markets, so they won’t be fighting dozens of similar companies for investor attention. Market timing looks good for established tech companies with proven models.