Dylan Subject, co-founder and CEO of Figma, seems on the Bloomberg Expertise Summit in San Francisco on Could 9, 2024.
David Paul Morris | Bloomberg | Getty Pictures
Design software program firm Figma filed for an IPO on Tuesday, and plans to commerce on the New York Inventory Alternate below ticker image FIG.
The providing can be one of many hotly-anticipated IPOs lately given Figma’s progress price and its excessive non-public market valuation. In late 2023, a $20 billion acquisition settlement with Adobe was scrapped on account of regulatory considerations within the U.Ok. That led Adobe to pay Figma a $1 billion termination price.
Income within the first quarter elevated 46% to $228.2 million from $156.2 million in the identical interval a 12 months in the past, in accordance with Figma’s prospectus. The corporate recorded a internet revenue of $44.9 million, in comparison with $13.5 million a 12 months earlier. As of March 31, it had 1,031 clients contributing no less than $100,000 a 12 months to annual income, up 47% from a 12 months earlier.
The corporate did not say what number of shares it plans to promote within the IPO. The corporate was valued at $12.5 billion in a tender offer final 12 months, and in April it introduced that it had confidentially filed for an IPO with the SEC.
Wall Avenue banks predicted a rush of IPOs after Donald Trump received the U.S. presidential election in November following a dry spell relationship again to late 2021, when hovering inflation and rising rates of interest pushed traders out of dangerous belongings. Whereas President Trump’s announcement of sweeping tariffs in April roiled markets and led a lot of firms to delay their plans, exercise has been selecting up of late.
Stablecoin issuer Circle doubled in worth in its early June debut and is now up greater than sixfold from its IPO worth. On-line banking firm Chime additionally debuted on in June, following Hinge Well being’s IPO in Could. Synthetic infrastructure supplier CoreWeave, which went public in March, jumped 46% in June and has quadrupled since its providing.
Purchase now, pay later firm Klarna, primarily based within the U.Ok., filed for a U.S. IPO in March, as did ticket market StubHub.
Figma was based in 2012 by CEO Dylan Subject, 33, and is predicated in San Francisco. The corporate had 1,646 workers as of March 31. Subject is the largest particular person proprietor, with 56.6 million Class B shares and 51.1% of voting energy forward of the IPO.
Subject mentioned in a letter to traders that it was time for Figma to buck the “development of many wonderful firms staying privately indefinitely.”
A number of firms match that invoice, together with Databricks, SpaceX and Stripe.
“A few of the apparent advantages such nearly as good company hygiene, model consciousness, liquidity, stronger forex and entry to capital markets apply,” he wrote. “Extra importantly, I like the concept of our neighborhood sharing within the possession of Figma — and one of the simplest ways to perform that is via public markets.”
Subject added that as a public firm, traders ought to “count on us to take huge swings,” together with via acquisitions.
The IPO may also mark one other much-needed win for Silicon Valley enterprise companies, that are in want of returns after the multi-year droop. Index Ventures is the biggest outdoors shareholder, with a 17% stake earlier than the providing, in accordance with the submitting. Greylock owns 16%, Kleiner Perkins controls 14% and Sequoia has a stake of 8.7%.
Figma mentioned it faces “intense competitors” and that lack of market share would “adversely have an effect on our enterprise,” however did not title any particular opponents.
Morgan Stanley and Goldman Sachs main the deal together with Allen and Co. and JPMorgan Chase.
That is breaking information. Please verify again for updates.
— CNBC’s Ari Levy contributed to this report.
WATCH: Figma CEO on failed Adobe deal, startup landscape, big redesign with AI
