news 
Figma Moves Closer to Blockbuster IPO That Could Raise $1.5 Billion
Design software company Figma has taken another significant step towards a major initial public offering (IPO), potentially raising up to $1.5 billion, according to estimates from IPO experts Renaissance Capital.
The company’s recent S-1 filing with the Securities and Exchange Commission (SEC) provides insight into its financial health, showcasing impressive growth and profitability. In 2024 alone, Figma brought in a staggering $749 million in revenue, marking a 48% increase over the previous year. The company has continued to demonstrate robust expansion, posting a 46% year-over-year rise in revenue during the first quarter of 2025.
In addition to its impressive financials, Figma’s S-1 document highlights its strong gross margin, reporting an astonishing 91% for rolling 12-month revenues. This notable figure will likely resonate with investors and contribute to the company’s potential IPO success.
Interestingly, Figma also reported a swing back into profitability in both the fourth quarter of 2024 and the first quarter of 2025, following a significant loss in 2023 attributed primarily to one-time expenses related to an employee stock compensation event. The company has since rebounded, posting profits in recent quarters.
In light of these figures, Figma’s financials are reminiscent of those typically seen from companies that garner significant investment and interest on the public markets. Despite this, the emergence of AI-powered coding/designing apps may pose a risk to Figma’s future competitiveness.
Acknowledging this threat, the company has stated in its S-1 filing that it will continue to invest heavily in integrating artificial intelligence into its platform. However, it also notes that these rapidly evolving technologies can never be certain of remaining competitive as new AI innovations are developed and integrated into software solutions.
Figma’s impressive financials have garnered attention from investors and analysts alike, with many anticipating a blockbuster IPO.
Source: techcrunch.com
