Figma files for IPO on NYSE, plans to 'take big swings' with acquisitions

Design bundle institution Figma filed for an IPO connected Tuesday, and plans to commercialized connected the New York Stock Exchange nether the ticker awesome "FIG."

The offering would beryllium 1 of the hotly anticipated IPOs successful caller years fixed Figma's maturation complaint and its precocious backstage marketplace valuation. In precocious 2023, a $20 cardinal acquisition statement with Adobe was scrapped owed to regulatory concerns successful the U.K. That led Adobe to wage Figma a $1 cardinal termination fee.

Revenue successful the archetypal 4th accrued 46% to $228.2 cardinal from $156.2 cardinal successful the aforesaid play a twelvemonth ago, according to Figma's prospectus. The institution recorded a nett income of $44.9 million, compared to $13.5 cardinal a twelvemonth earlier.

As of March 31, Figma had astir 450,000 customers. Of those, 1,031 were contributing astatine slightest $100,000 a twelvemonth to yearly revenue, up 47% from a twelvemonth earlier. Clients see Duolingo, Mercado Libre, Netflix, Pentagram, ServiceNow and Stripe. ServiceNow CEO Bill McDermott has taken a spot connected Figma's board, according to the filing. He besides sits connected Zoom's committee and continues to service arsenic ServiceNow's chairman.

Figma didn't accidental however galore shares it plans to merchantability successful the IPO. The institution was valued astatine $12.5 cardinal successful a tender offer past year, and successful April it announced that it had confidentially filed for an IPO with the SEC.

Wall Street banks predicted a unreserved of IPOs aft Donald Trump won the U.S. statesmanlike predetermination successful November pursuing a adust spell dating backmost to precocious 2021, erstwhile soaring ostentation and rising involvement rates pushed investors retired of risky assets. While President Trump's announcement of sweeping tariffs successful April roiled markets and led a fig of companies to delay their plans, enactment has been picking up of late.

Stablecoin issuer Circle doubled successful worth successful its aboriginal June debut and is present up much than sixfold from its IPO terms for a marketplace headdress of astir $43 billion. Online banking institution Chime besides debuted successful June, pursuing Hinge Health's IPO successful May. Artificial infrastructure supplier CoreWeave, which went nationalist successful March, jumped 46% successful June and has quadrupled since its offering.

Buy now, wage aboriginal institution Klarna, based successful the U.K., filed for a U.S. IPO successful March, arsenic did summons marketplace StubHub.

Figma was founded successful 2012 by CEO Dylan Field, 33, and Evan Wallace, and is based successful San Francisco. The institution had 1,646 employees arsenic of March 31.

Before establishing Figma, Field spent implicit 2 years astatine Brown University, wherever helium met Wallace. Field past took a Thiel Fellowship "to prosecute entrepreneurial projects," according to the filing. The two-year programme that Founders Fund spouse Peter Thiel established successful 2011 gives young entrepreneurs a $200,000 assistance on with enactment from founders and investors, according to an online description.

Field is the biggest idiosyncratic proprietor of Figma, with 56.6 cardinal Class B shares and 51.1% of voting powerfulness up of the IPO. He said successful a missive to investors that it was clip for Figma to subordinate the "trend of galore astonishing companies staying privately indefinitely."

Databricks, SpaceX and Stripe are among high-valued companies that are inactive private.

"Some of the evident benefits specified arsenic bully firm hygiene, marque awareness, liquidity, stronger currency and entree to superior markets apply," helium wrote, explaining the decision. "More importantly, I similar the thought of our assemblage sharing successful the ownership of Figma — and the champion mode to execute this is done nationalist markets."

The IPO volition besides people different much-needed triumph for Silicon Valley task firms, which are successful request of returns aft the multi-year slump. Index Ventures is the largest extracurricular shareholder, with a 17% involvement earlier the offering, according to the filing. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a involvement of 8.7%.

Figma said it faces "intense competition" and that nonaccomplishment of marketplace stock would "adversely impact our business," but didn't sanction immoderate circumstantial competitors.

Over 13 cardinal radical usage Figma per month, and lone one-third of them are designers, according to the filing. Around 85% of monthly users were extracurricular the U.S. arsenic of March 31, but 53% of gross came from extracurricular the country.

In March the institution announced Figma Sites, a instrumentality that turns designs into moving websites. It's 1 of a fewer caller products that diversify the institution distant from its collaborative work for crafting app and website designs.

Figma had $1.54 cardinal successful cash, currency equivalents and marketable securities astatine the extremity of March.

Field said successful the missive that arsenic a nationalist company, investors should "expect america to instrumentality large swings," including done acquisitions.

In April Figma bought the assets and squad of an unspecified exertion institution for $14 cardinal and acquired bought an unnamed institution with contented absorption strategy bundle for $35.5 million, according to the filing. In April plan bundle startup Modyfi said it would beryllium joining Figma, and successful June Figma revealed successful a blog post that it acquired Payload, a content-management bundle startup with backed by Google and MongoDB.

Figma has besides begun investing successful integer currencies. In 2024, Figma's committee authorized a $55 cardinal concern into a Bitwise Bitcoin exchange-traded fund. As of March 31, the holding was worthy $69.5 million, according to the filing. In May, the committee approved a $30 cardinal concern successful Bitcoin, and Figma spent the wealth connected USD Coin, which is simply a stablecoin.

Morgan Stanley and Goldman Sachs are starring the woody on with Allen and Co. and JPMorgan Chase.

Correction: A anterior mentation of this communicative had the incorrect banal speech successful the headline.

— CNBC's Ari Levy and Jonathan Vanian contributed to this report.

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