Dylan Discipline, 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 Trade beneath ticker image “FIG.”
The providing could be one of many hotly anticipated IPOs lately given Figma’s progress charge and its excessive non-public market valuation. In late 2023, a $20 billion acquisition settlement with Adobe was scrapped resulting from regulatory issues within the U.Okay. That led Adobe to pay Figma a $1 billion termination payment.
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 earnings of $44.9 million, in comparison with $13.5 million a 12 months earlier.
As of March 31, Figma had 1,031 prospects contributing no less than $100,000 a 12 months to annual income, up 47% from a 12 months earlier. Greater than half of income comes from exterior the U.S.
Figma 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 supply 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 property. Whereas President Trump’s announcement of sweeping tariffs in April roiled markets and led quite a few firms to delay their plans, exercise has been choosing up of late.
Stablecoin issuer Circle doubled in worth in its early June debut and is now up greater than sixfold from its IPO value for a market cap of virtually $43 billion. On-line banking firm Chime additionally debuted 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.Okay., filed for a U.S. IPO in March, as did ticket market StubHub.
Figma was based in 2012 by CEO Dylan Discipline, 33, and Evan Wallace, and is predicated in San Francisco. The corporate had 1,646 workers as of March 31.
Earlier than establishing Figma, Discipline spent over two years at Brown College, the place he met Wallace. Discipline then took a Thiel Fellowship “to pursue entrepreneurial initiatives,” in accordance with the submitting. The 2-year program that Founders Fund associate Peter Thiel established in 2011 provides younger entrepreneurs a $200,000 grant together with assist from founders and traders, in accordance with an on-line description.
Discipline is the most important particular person proprietor of Figma, with 56.6 million Class B shares and 51.1% of voting energy forward of the IPO. He mentioned in a letter to traders that it was time for Figma to buck the “pattern of many superb firms staying privately indefinitely.”
Databricks, SpaceX and Stripe are amongst high-valued firms which are nonetheless non-public.
“A few of the apparent advantages such pretty much as good company hygiene, model consciousness, liquidity, stronger foreign money and entry to capital markets apply,” he wrote, explaining the choice. “Extra importantly, I like the concept of our group sharing within the possession of Figma — and one of the best ways to perform that is by public markets.”
Discipline added that as a public firm, traders ought to “anticipate us to take large swings,” together with by acquisitions. In April Figma purchased the property and crew of an unnamed know-how firm for $14 million, in accordance with the submitting.
The IPO may even 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 exterior 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 identify any particular rivals.
Over 13 million individuals use Figma per thirty days, and solely one-third of them are designers, in accordance with the submitting. In March the corporate introduced Figma Websites, a software that turns designs into working web sites. It is one of some new merchandise that diversify the corporate away from its collaborative service for crafting app and web site designs.
Morgan Stanley and Goldman Sachs are main the deal together with Allen and Co. and JPMorgan Chase.
Correction: A previous model of this story had the wrong inventory change within the headline.
— CNBC’s Ari Levy contributed to this report.
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