Figma Files for IPO on NYSE, Set to Trade as FIG

San Francisco, CA – Design software company Figma filed for an initial public offering (IPO) on Tuesday, planning to trade on the New York Stock Exchange under the ticker symbol FIG. The offering is anticipated to be one of the most significant IPOs in recent years, fueled by Figma’s impressive growth rate and high valuation in the private market.

Figma’s prospectus reveals a remarkable 46% jump in revenue for the first quarter, reaching $228.2 million, up from $156.2 million during the same timeframe last year. The company reported a net income of $44.9 million, a considerable increase compared to $13.5 million a year prior. As of March 31, Figma has 1,031 customers contributing over $100,000 annually to its revenue, representing a 47% increase from a year earlier. Notably, more than half of its revenue is generated from international customers.

While the company has not disclosed the number of shares to be sold in the IPO, it was valued at $12.5 billion last year, and it officially announced its IPO filing with the SEC in April 2023. This move follows a wave of IPOs sparked by favorable market conditions since Donald Trump’s presidential win in November 2021, following a quiet period driven by rising inflation and interest rates.

Several recent IPOs have seen significant success, with companies like a stablecoin issuer doubling in value shortly after their debut, and CoreWeave, which went public in March, quadrupling its value since the offering.

Figma was founded in 2012 by CEO Dylan Field and Evan Wallace, currently employing 1,646 individuals. Field, the largest individual shareholder with 56.6 million Class B shares, holds 51.1% of the company’s voting power. In a letter to investors, Field emphasized the necessity for Figma to move away from the trend of remaining privately funded. He noted the advantages of going public, including corporate transparency and community ownership.

Field stated, “Some of the obvious benefits such as good corporate hygiene, brand awareness, liquidity, stronger currency and access to capital markets apply,” highlighting his vision for Figma’s future as a public entity. He hinted at significant initiatives, including potential acquisitions, that stakeholders can anticipate from the public company.

Despite its robust outlook, Figma acknowledged facing “intense competition” indicating that any loss in market share could negatively impact its business, though specific competitors have not been named. The IPO is expected to provide a much-needed boost for Silicon Valley investors seeking returns after a prolonged downturn.

Index Ventures holds the largest outside share prior to the offering with a 17% stake, followed by Greylock at 16%, Kleiner Perkins at 14%, and Sequoia with 8.7%. This IPO represents an important milestone for Figma and its stakeholders in the ever-expanding landscape of tech.