Collaborative design software company Figma Inc. today revealed the details of its planned initial public offering with the publication of its S-1 paperwork with the U.S. Securities and Exchange Commission.

The company first revealed it planned to go public and had confidentially filed its paperwork with the SEC on April 15.

Founded in 2012, Figma offers cloud-based tools that assist in the design and development process. Among the company’s tools is Figma Design, a tool that offers a platform for crafting user interfaces and experiences, with features for designers such as Auto Layout, which enables them to create responsive layouts that adapt to different screen sizes.

Another core tool, FigJam, offers an online whiteboard designed for collaborative brainstorming and planning that allows teams to sketch ideas, map user journeys and organize thoughts using sticky notes, diagrams and other visual aids.

Other tools offered by the company include Dev Mode, which provides access to design specifications, code snippets and assets to ensure accurate and efficient implementation of designs, and Figma Slides, which allows users to create and share slide decks directly within the Figma environment.

The decision by Figma to go public followed an attempt by Adobe Inc. to acquire the company for $20 billion, an acquisition that failed because of regulatory issues. The deal drew regulatory scrutiny from multiple regulatory organizations, including in the U.K. and Europe, with the Europeans coming to the conclusion that the merged companies would lessen competition. Adobe called off the acquisition in December 2023 and as part of the conditions attached to the original deal, paid Figma a $1 billion termination fee.

Having failed to be acquired, Figma then raised an undisclosed amount of funding in July 2024 on a reported valuation of $12.5 billion, significantly lower than the price Adobe was willing to pay. With the revelation of the S1 paperwork today, investors have gained a full picture of where Figma sits financially, and the numbers are impressive.

Figma saw revenue in its first quarter of $228.2 million, up 46% year-over-year and, recorded net income of $44.9 million, up from $13.5 million a year earlier. The company has around 450,000 customers, including 1,031 that were spending $100,000 or more in annual revenue. Notable Figma customers include Duolingo Inc., Mercado Libre Inc., Netflix Inc., Pentagram Design Inc., ServiceNow Inc. and Stripe Inc.

Timing is often everything with an IPO and things have rapidly changed since Figma first announced its plans to go public back in April. At the time, markets were volatile and how an IPO would be received was difficult to predict. But shy of three months later, equities markets are at record highs and the IPOs held in that time have gone well.

In May, eToro Group Ltd. floated on the Nasdaq and saw its price close up 29% on its first day of trading. On June 4, Circle Internet Group Inc. saw its shares close up 168% on its first day of trading. And on June 12, shares in Chime Financial Inc. were up 37% on debut.

Though none of those companies are in the same industry vertical as Figma, the results are indicative of a market that is interested in tech companies more broadly and Figma enters the market with a proven product and decent financials. The company will no doubt be hoping for similar results.

Photo: Figma