AIbase reports that design software company Figma publicly released its S-1 financial filing this Tuesday, marking a key step towards its initial public offering (IPO). Although the specific number of shares and price have not yet been disclosed in this document, it provides the clearest view of Figma's financial status and future potential to date.
Figma's Financial Performance Is Strong, IPO Size May Exceed $1.5 Billion
IPO expert Renaissance Capital estimates that Figma's IPO could raise up to $1.5 billion. If successful, Figma would be on par with the largest tech IPO so far in 2025—CoreWeave, which raised $1.5 billion.
Figma's impressive financial data serves as strong evidence of its successful listing. The company generated revenue of $749 million in 2024, a 48% increase from 2023. In the first quarter of 2025, Figma continued to show strong growth, with a 46% year-over-year increase in revenue, and its rolling 12-month revenue reached $821 million, with a gross margin of 91%.
In terms of profitability, Figma turned a profit in 2023 but recorded a loss of $732 million due to a one-time large expense for employee stock compensation. It is reported that Figma issued 10.5 million stock options with an exercise price of $8.50 per share to eligible employees. However, by the fourth quarter of 2024 and the first quarter of 2025, Figma had returned to profitability.
Additionally, Figma reported that its total debt is negligible, effectively meaning it does not carry traditional debt, although it has a revolving credit facility for emergencies.
Disclosure of Executive Shareholdings: CEO Field Holds Absolute Voting Power
The S-1 filing also disclosed equity information for key executives. While it is still unclear whether any executives or venture capital firms will sell shares in the IPO, major supporters include Index, Greylock, Kleiner Perkins, and Sequoia.
Notably, in 2024, Figma co-founder, CEO, and chairman Dylan Field cashed out $20 million worth of shares through a large stock buyout offer.
The document also revealed information about another co-founder, Evan Wallace. Although Wallace left Figma in 2021, he is still listed as a co-founder in the filing. Figma disclosed that Wallace has granted all his voting rights and control over his shares to Field. Wallace's family trust holds about one-third of the super-voting B-class shares (Figma refers to each as 15 votes), giving Field approximately 75% of the voting power before the IPO.
AI Competition Intensifies, Figma Actively Addresses Market Challenges
Figma's strong financial performance is typically the kind that attracts both Wall Street and retail investors. However, emerging AI coding/design applications such as Lovable are rapidly rising and targeting Figma's market, which could be its only potential challenge. Figma is also actively developing its AI product line to cope with competition.
In its S-1 filing, Figma acknowledged the risk of standing out in the competitive AI industry. The company stated in the regulatory filing: "Although we have made significant investments in integrating artificial intelligence (including generative AI) into our platform and expect to continue making such investments, AI technology is developing rapidly. With the development, adoption, and integration of new AI technologies into software solutions, we cannot guarantee that our products will remain competitive."