Latest news with #DylanField
Yahoo
2 days ago
- Business
- Yahoo
Figma has filed for an IPO—here are 7 key takeaways
Design software company Figma has filed for an IPO, which is expected to raise up to $1.5 billion. Its entry to public markets comes more than a year after the collapse of Adobe's attempted $20 billion acquisition. The S-1 filing contains key insights about Figma's growth, customer base, and founder-led strategy. Read below for key insights potential investors should know. 1. Exceptional revenue growth and profitability 2024 revenue reached $749 million, up 48% from 2023. In Q1 2025, revenue grew 46% year-over-year to $228.2 million, and net income for the quarter tripled to $44.9 million, up from $13.5 million in Q1 2024. Figma was profitable in 2023, but reported a large net loss of $732 million in 2024 due to a one-time employee stock compensation event, not ongoing operations. The company returned to profitability by late 2024 and into 2025. 2. Massive market reach and customer base 13 million monthly active users as of early 2025. 95% of Fortune 500 companies use Figma, and two-thirds of its users are not professional designers, indicating broad adoption across business functions. As of March 2025, Figma had 1,031 customers contributing over $100,000 annually (up 47% year-over-year) and 11,107 customers contributing over $10,000 annually. 3. IPO structure and leadership control Figma is pursuing a dual-class share structure: CEO Dylan Field will retain majority voting power through super-voting Class B shares, protecting founder-led strategic direction post-IPO. Field personally controls about 75% of voting rights, with cofounder Evan Wallace's family trust holding about a third of the special voting shares (Field controls their votes). 4. Financial health and use of proceeds Figma reports minimal debt, only a revolving credit line. Proceeds from the IPO are expected to support global expansion, R&D, AI innovation, enterprise integration, and possible acquisitions. 5. Strategic positioning and competitive landscape Figma's S-1 mentions AI hundreds of times, highlighting both the opportunity and challenge of integrating generative AI into design workflows. The company warns that AI investments may impact efficiency in the near term but are seen as critical for future growth. Figma's collaborative, cloud-based platform is positioned as a solution to fragmented design workflows, enabling real-time, multi-user collaboration and seamless designer-developer handoff. The failed $20 billion Adobe acquisition (blocked by regulators) continues to shape market expectations. Recent secondary transactions valued Figma at $12.5 billion, but analysts expect a public valuation in the $15 billion to $20 billion range. 6. Liquidity and employee morale A significant 2024 tender offer allowed employees and executives to sell shares pre-IPO, providing liquidity and potentially aiding retention. CEO Dylan Field sold $20 million in shares during this event. 7. IPO details and market context Figma will list on the New York Stock Exchange under the ticker 'FIG.' The number of shares and price range have not yet been disclosed. The IPO is expected to raise up to $1.5 billion, potentially making it one of the largest tech IPOs of 2025, rivaling CoreWeave's offering. Disclaimer: For this story, Fortune used generative AI to help with an initial draft. An editor verified the accuracy of the information before publishing. This story was originally featured on Sign in to access your portfolio
Arabian Post
2 days ago
- Business
- Arabian Post
Figma Joins IPO Wave with $70 Million Bitcoin Treasury Move
Figma has filed its S‑1 registration to go public on the New York Stock Exchange under the ticker 'FIG', and disclosed holdings of approximately $69.5 million in a spot Bitcoin ETF as of 31 March 2025. The filing also confirms that the board approved allocating $30 million in USDC for later conversion into Bitcoin, signalling a strategic embrace of digital assets. Financial disclosures reveal robust growth for the design‑collaboration platform, with Q1 2025 revenue surging to $228.2 million—marking a 46 per cent increase year‑on‑year—and net income tripling to $44.9 million. For the full year 2024, revenue reached $749 million, although a net loss of $732 million was recorded, compared to a $738 million net income in 2023. The company attributes the swing to one‑off charges and substantial investments in artificial intelligence, areas identified as core to its long‑term strategy. The Bitcoin holdings stem from a board‑approved $55 million investment in a Bitwise Bitcoin ETF on 3 March 2024, which has appreciated roughly 27 per cent to $69.5 million. The additional $30 million USDC allocation was approved on 8 May 2025 to facilitate further Bitcoin purchases, highlighting a phased approach to crypto acquisition. Figma's investment approach positions Bitcoin alongside money‑market instruments, Treasuries and corporate bonds, comprising around 4 per cent of its $1.07 billion cash and equivalents as of 31 March 2025. ADVERTISEMENT The IPO comes more than a year after regulators in the UK and EU blocked Adobe's proposed $20 billion acquisition of Figma in late 2023. That deal's collapse redirected the company toward strengthening its independent market position. Referral to Morgan Stanley, Goldman Sachs, J.P. Morgan and Allen & Co as lead underwriters underscores the prominence of the offering. Figma's embrace of Bitcoin reflects a growing trend among public and pre‑public tech firms deploying crypto assets as part of corporate treasury strategies. Firms such as Coinbase, Circle and MicroStrategy have drawn attention for similar moves, with some recording sharp stock gains driven by their crypto exposure. Analysts caution that such positions expose companies to the volatility of digital assets, though fairness accounting treatment under US GAAP ensures unrealised ETF gains flow through other comprehensive income, not immediate profit and loss. AI remains a central strategic pillar. CEO Dylan Field underscored in the filing that Figma intends to double down on AI investments, even if it affects short‑term efficiency, describing such outlays as essential to evolving design workflows. The platform, used by 95 per cent of Fortune 500 companies and 78 per cent of the Forbes 2000, has expanded its offerings—from website‑building and digital illustration to AI‑assisted coding and enhanced marketing tools. The IPO filing indicates Figma will use proceeds to repay debt, fund working capital needs and pursue acquisitions—while retaining dual‑class share structures aimed at preserving founder control. This structure assigns Class A one‑vote shares to public investors, while Class B and C shares—with greater voting power—remain with the founders through proxy agreements, ensuring strategic continuity. Figma's dual‑track strategy—combining IPO ambitions with a diversified digital‑asset treasury—positions it at the intersection of mainstream tech capital markets and crypto innovation. The move may draw investor interest from those seeking exposure to design‑tech growth and blockchain‑linked assets under a unified corporate strategy.
Time of India
2 days ago
- Business
- Time of India
Figma's much-anticipated IPO: All you need to know
Academy Empower your mind, elevate your skills Cloud-based designer platform Figma has publicly disclosed the prospectus of its much- anticipated initial public offering (IPO) in the US. The company had filed its papers confidentially in issue will be one of the most high-profile listings this year, suggesting that anxieties stemming from US tariffs are calming IPO comes over a year after Figma's $20 billion deal to be acquired by Adobe was shelved by all you need to know about Figma and its public specialises in collaborative interface design, enabling teams to work together in real time on design projects, much like Google at around $12.5 billion, the company has expanded its offerings beyond design to include tools for website creation, AI programming, branded marketing, and digital in San Francisco, Figma was founded by Dylan Field and Evan Wallace in 2012. Duolingo, Mercado Libre, Netflix, Pentagram Design, ServiceNow, and Stripe are among its major global customers. Indian brands Zomato Swiggy , Cred and Groww also use its platform. Field had told ET last November that Figma is keen on tapping India's vast pool of designers and product developers to better support its customers. He had said around 85% of Figma's weekly active users are from outside the US, and a substantial number are from India.'There is a real revenue opportunity in India. It is a myth that you cannot monetise India,' Field had said then, adding that as Figma spends more time in India, it will be able to find areas to improve its services 2022, Photoshop maker Adobe announced plans to acquire Figma for $20 billion. However, last year, the two companies jointly declared the termination of the deal following scrutiny from UK and EU regulators on antitrust issues. Adobe was obligated to pay Figma a reverse termination fee of $1 billion in the aftermath of the Adobe deal fallout, Figma worked on strengthening its books. In the first three months of 2025, it reported $228.2 million in revenue, compared with $156.2 million a year earlier, and its net income jumped threefold to $44.9 2024, it had generated $749 million in revenue, a 48% increase from company was profitable in 2023 but reported a large net loss of $732 million in 2024, because of a one-time expense related to issuing 10.5 million stock options to employees. Profit returned in the fourth quarter of 2024, and continued this has raised around $750 million in funding so far from investors such as Sequoia Capital and Andreessen company plans to list on the New York Stock Exchange (NYSE) under the ticker symbol "FIG".Lead banks for the IPO include Morgan Stanley, Goldman Sachs, Allen & Co, and JP company said it will use the IPO proceeds to fund growth initiatives, double down on AI investments, and repay debt.
Economic Times
3 days ago
- Business
- Economic Times
Figma files for IPO, plans listing on NYSE under ticker FIG
Figma files IPO to list on NYSE under ticker FIG as revenue and enterprise adoption grow for cloud-based web design platform Figma files for IPO on NYSE under ticker 'FIG'Figma ( a cloud-based collaborative web design platform, has filed for an initial public offering (IPO) on the New York Stock Exchange (NYSE). The company plans to trade under the ticker symbol 'FIG.' Founded in 2012 by CEO Dylan Field, Figma offers real-time collaborative tools for interface design, prototyping, and feedback, targeting teams working on digital products. The company has not yet disclosed the number of shares it will offer or the expected IPO price range. Also read: China's $50 billion chip fund switches tack to fight US curbs The most recent valuation for Figma came in a 2023 tender offer, which valued the company at $12.5 billion. In the company's S-1 filing and a letter to investors, Field addressed Figma's transition from a private to a public entity. Field wrote, '...as a public company, investors should expect us to take big swings, including through acquisitions.' He also noted that Figma aims to counter the trend of strong tech companies remaining private and customer growth support IPO plansFigma's IPO filing comes amid continued revenue growth and increasing adoption among large enterprise customers. For the first quarter of 2025, Figma reported a 46 per cent year-over-year revenue of March 31, the company reported having more than 1,000 customers generating at least $100,000 in annual recurring revenue, marking a 47 per cent increase from the previous year. These metrics suggest growing demand for cloud-based web design platforms and reinforce Figma's positioning in the enterprise SaaS market. The company competes with products from Adobe, Sketch, and other design software providers, leveraging browser-based collaboration as a key differentiator. Top investment banks to lead IPO offering The IPO will be managed by a consortium of investment banks. Morgan Stanley, Goldman Sachs, Allen & Company, and JP Morgan will serve as joint lead book-running managers for the offering. Also read: Apple eyes using AI to design its chips, technology executive says Figma's move to go public is closely watched by investors and market analysts, as it marks one of the more high-profile software IPOs in recent company's public listing also comes after a previously proposed acquisition by Adobe was terminated due to regulatory concerns in 2023. This IPO provides Figma an alternate path to liquidity and continued cloud-based collaborative design tools are widely used across sectors including tech, finance, and media, particularly by product design and engineering teams. The IPO date and full financial details will be released in an amended S-1 filing closer to the offering.
The Verge
3 days ago
- Business
- The Verge
Figma is going public
Figma, the platform that specializes in collaborative interface design, has filed for an initial public offering (IPO). The company will trade under the ticker symbol 'FIG' as it prepares to 'double down' on its investments in AI. Figma was nearly acquired by Adobe for $20 billion in 2022, but the two companies scrapped the deal in 2023 after facing pressure from regulators in the UK and the European Union. Last year, Figma CEO Dylan Field hinted at going public last year during an interview included in The Verge's Command Line newsletter, saying, 'There are two paths that venture-funded startups go down. You either get acquired or you go public. And we explored thoroughly the acquisition route.' Figma confidentially filed for an IPO in April. Its new filing reveals Figma's revenue spiked to $228.2 million from $156.2 million when compared to the same time last year. This year, Figma expanded its library of tools to include features for website building, AI coding, branded marketing, and digital illustration. It has also started letting AI models gain access to its design servers to make coding more efficient. 'We're already investing heavily in AI and we plan to double down even more in this area,' Field says in the filing. 'AI spend will potentially be a drag on our efficiency for several years, but AI is also core to how design workflows will evolve going forward.'
