$FIG IPO
Figma, founded in August 2012 by Dyan and Evan who met at Brown University, started with the vision of bridging the gap between imagination and reality in design. Recognizing the exponential growth of software creation and the increasing importance of design, they developed a browser-based design tool using WebGL technology. This allowed for real-time, collaborative design, moving away from the traditional private, single-player, and offline model. When Figma started co-designing in the browser was considered a radical idea, but today its become the norm. LTM revs are $821M w/46% growth.
IPO is highlighting that Figma has evolved from just a design tool into a comprehensive platform for product development. This expansion includes products like Figma for brainstorming, Figma Slides for presentations, Figma Design for visualizing concepts, Figma Draw for vector editing, Figma Make for AI-powered prototyping, Dev Mode for code translation, Figma Sites for website building, and Figma Buzz for marketing asset creation.
Figma, founded in August 2012 by Dyan and Evan who met at Brown University, started with the vision of bridging the gap between imagination and reality in design. Recognizing the exponential growth of software creation and the increasing importance of design, they developed a browser-based design tool using WebGL technology. This allowed for real-time, collaborative design, moving away from the traditional private, single-player, and offline model. When Figma started co-designing in the browser was considered a radical idea, but today its become the norm. LTM revs are $821M w/46% growth.
IPO is highlighting that Figma has evolved from just a design tool into a comprehensive platform for product development. This expansion includes products like Figma for brainstorming, Figma Slides for presentations, Figma Design for visualizing concepts, Figma Draw for vector editing, Figma Make for AI-powered prototyping, Dev Mode for code translation, Figma Sites for website building, and Figma Buzz for marketing asset creation.
Figma's offerings have expanded from a single design tool to eight products in a few years, aiming to serve the entire product development process (so NO need for Asana, Monday, Jira/Team?/TWLO). This expansion is supported by platform, which ensures each new product is easier to incubate, test, and launch, and shares the same underlying DNA. This platform consists of five key ingredients:
Multiplayer: All products are built with real-time collaboration in mind, enabling multiple users to edit designs simultaneously and interact on an infinite canvas. This is achieved through a custom runtime built on WebGPU and Wom, bypassing the traditional browser stack to utilize GPUs and CPUs more directly, similar to game engines.
Extensibility: Figma's APIs and plugin architecture allow users to customize the tools to their specific needs, adding bespoke functionality, connecting to other tools and data, or integrating with their codebase.
Interoperability: This allows for seamless transitions between Figma's products. For example, a design mock can be copied from Figma Design into Figma Slides for presentations or into Figma Make for realistic prototypes. This ensures work created in one product can be iterated upon in another and allows different users to access the same content with relevant user experiences.
Design Systems: Figma supports design systems, which are reusable building blocks that create a shared visual language for a team. This helps bridge the gap between design and code, promoting consistency and quality in product development.
AI: AI is being woven throughout the entire suite of products to accelerate the product development journey. Figma AI helps automate tedious tasks, makes design accessible to more people, operates directly on existing Figma files (understanding layers, components, styles, and interactions), and allows for real-time collaboration with AI assistance. It can generate and reconcile code with existing codebases.
Multiplayer: All products are built with real-time collaboration in mind, enabling multiple users to edit designs simultaneously and interact on an infinite canvas. This is achieved through a custom runtime built on WebGPU and Wom, bypassing the traditional browser stack to utilize GPUs and CPUs more directly, similar to game engines.
Extensibility: Figma's APIs and plugin architecture allow users to customize the tools to their specific needs, adding bespoke functionality, connecting to other tools and data, or integrating with their codebase.
Interoperability: This allows for seamless transitions between Figma's products. For example, a design mock can be copied from Figma Design into Figma Slides for presentations or into Figma Make for realistic prototypes. This ensures work created in one product can be iterated upon in another and allows different users to access the same content with relevant user experiences.
Design Systems: Figma supports design systems, which are reusable building blocks that create a shared visual language for a team. This helps bridge the gap between design and code, promoting consistency and quality in product development.
AI: AI is being woven throughout the entire suite of products to accelerate the product development journey. Figma AI helps automate tedious tasks, makes design accessible to more people, operates directly on existing Figma files (understanding layers, components, styles, and interactions), and allows for real-time collaboration with AI assistance. It can generate and reconcile code with existing codebases.
Figma's business model includes free starter plans, professional plans for individuals and small teams, and organization/enterprise plans for larger businesses, with various seat types catering to different roles. The company has demonstrated significant growth, with a large and diverse customer base globally, including many non-designers. The financial performance shows sustained growth in revenue and margins, with a significant investment in research and development.
In 2024, Figma's revenue grew to $749 million, up from $505 million in 2023, representing a 48% year-over-year growth. LTM $821M
In Q1 2025, the business posted $228 million in revenue, representing 46% year-over-year growth.
As of Q1 2025:
- 13M MAUs; 2/3rd of users were not non -designers; 85% of MAUs from OUS; 78% of fortune 500 firms use FIGMA
- 70% of Figma's revenue came from customers on their organization or enterprise plans.
-They had >1,000 customers with more than $100,000 in annual recurring revenue (ARR) and over 40 customers spending $1 million or more annually.
-More than 76% of customers used two or more products.
The international community made up 53% of their revenue.
-They had approximately 450,000 paid customers, with over 11,000 contributing more than $10,000 in ARR, representing nearly two-thirds of their total ARR.
-The dollar-based net retention rate for paid customers over $10,000 in ARR was 132%, and the gross retention rate for the same cohort was 96%.
-DBNR >130% for past 4 quarters in a row
Figma estimates its TAM to be $33 billion. They have sustained non-GAAP gross margins above 90% within each of the last 2 years. Their non-GAAP op margins expanded from 5% in 2023 to 17% in 2024. Adjusted free cash flow margin grew from 18% to 24% across the same period.
In Q1 2025, their non-GAAP operating margin was 18% and adjusted free cash flow margin was 41%.
~45% of their employees were on the research and development team, demonstrating their focus on ongoing product innovation.
In 2024, Figma's revenue grew to $749 million, up from $505 million in 2023, representing a 48% year-over-year growth. LTM $821M
In Q1 2025, the business posted $228 million in revenue, representing 46% year-over-year growth.
As of Q1 2025:
- 13M MAUs; 2/3rd of users were not non -designers; 85% of MAUs from OUS; 78% of fortune 500 firms use FIGMA
- 70% of Figma's revenue came from customers on their organization or enterprise plans.
-They had >1,000 customers with more than $100,000 in annual recurring revenue (ARR) and over 40 customers spending $1 million or more annually.
-More than 76% of customers used two or more products.
The international community made up 53% of their revenue.
-They had approximately 450,000 paid customers, with over 11,000 contributing more than $10,000 in ARR, representing nearly two-thirds of their total ARR.
-The dollar-based net retention rate for paid customers over $10,000 in ARR was 132%, and the gross retention rate for the same cohort was 96%.
-DBNR >130% for past 4 quarters in a row
Figma estimates its TAM to be $33 billion. They have sustained non-GAAP gross margins above 90% within each of the last 2 years. Their non-GAAP op margins expanded from 5% in 2023 to 17% in 2024. Adjusted free cash flow margin grew from 18% to 24% across the same period.
In Q1 2025, their non-GAAP operating margin was 18% and adjusted free cash flow margin was 41%.
~45% of their employees were on the research and development team, demonstrating their focus on ongoing product innovation.
These are the different seat types how they charge.. obviously no color provided on pricing per seat..
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