To The Moon

Design software unicorn Figma $Figma(FIG)$ has officially announced its plan to list on the New York Stock Exchange, trading under the ticker symbol FIG. The IPO closes for subscription today and is set to begin trading tomorrow. Investor enthusiasm has been overwhelming — the IPO was reportedly over 30 times oversubscribed, and pricing has been raised significantly in the past week. So what exactly is Figma? And how should we view its prospects as it goes public?

Company Overview: Redefining Design for the Cloud Era

Founded in 2012 and headquartered in San Francisco, Figma $Figma(FIG)$ set out to build the future of digital design and collaboration. It was the first browser-based UI/UX design tool — breaking free from the limitations of traditional desktop software. Designers, product managers, engineers, and cross-functional teams can use Figma on any device, with no downloads or installations, to work together in real time on UI layouts, UX flows, prototypes, and design systems.

Source: Figma.com

Figma’s UI tools support powerful vector editing, reusable components, auto-layouts, and responsive design, helping teams build clean, consistent interfaces. On the UX side, features like interactive prototypes, triggers, and flow previews help simulate user journeys and optimize product experience. Its “Inspect” mode and code handoff tools have significantly reduced the friction between design and development, making product delivery much more efficient.

More importantly, Figma shifted product design from being a solo designer’s craft to a team-based, collaborative process. What used to be an isolated design task is now a shared asset across product, design, and engineering teams. Figma is now widely used by global giants like Google, Microsoft, Uber, and Spotify — and also gaining traction in industries like education, fintech, e-commerce, and SaaS. Its rise has posed a serious challenge to traditional design software players like Adobe and signaled the rise of a new generation of cloud-native design platforms.

IPO Snapshot: Higher Pricing, $18.8B Valuation

On July 28, 2025, Figma $Figma(FIG)$ updated its IPO filing, increasing the pricing range to $30–32 per share, up from the previous range of $25–28. The move reflects strong market demand and investor confidence in Figma’s long-term potential. At the upper end, the IPO is expected to raise $1.18 billion, with a fully diluted valuation of around $18.8 billion.

Beyond strengthening the company’s capital base, this IPO will help fund Figma’s growth in enterprise collaboration, AI-driven design tools, and international expansion. Timing-wise, Figma is making this move at a strategic moment — with Adobe XD fading out and no real rivals leading the design tool space, Figma is well-positioned to become the foundational infrastructure for modern design.

Business Momentum: High-Quality Growth, Global Reach

According to preliminary Q2 numbers in its S-1 filing, Figma expects revenue between $247–250 million, up 39–41% YoY. On a non-GAAP basis, Figma turned profitable for the first time, with operating income of $9–12 million and margins in the 4–5% range — a clear sign it's transitioning from rapid growth to sustainable, quality growth.

Source: Figma Prospectus

This momentum is backed by a strong and global user base. As of March 31, 2025, Figma had over 13 million monthly active users, and only a third of them are professional designers — the rest come from product, engineering, and marketing teams. Around 85% of users are outside the U.S., while overseas revenue accounts for 53%, showing major growth potential in international markets. The company also boasts around 450,000 enterprise customers, with 1,031 large accounts contributing over $100K in annual revenue — up 47% year-on-year. Customers include names like Duolingo, Netflix, Stripe, and Mercado Libre, across multiple verticals.

Source: Figma Prospectus

Adobe’s $Adobe(ADBE)$ Failed Acquisition: A Strategic Battle

Figma’s $18.8B IPO valuation is slightly below the $20 billion that Adobe $Adobe(ADBE)$ offered to acquire it back in 2022. But that offer alone showed just how seriously Adobe viewed Figma as a strategic threat. Adobe's own product, Adobe XD, had failed to gain traction — lagging far behind Figma in real-time collaboration, design systems, developer handoff, and ecosystem engagement.

Figma, on the other hand, has won over teams with its cloud-native architecture, multiplayer design model, developer-friendly Dev Mode, and frictionless workflows. Adobe’s acquisition was clearly a defensive move — an attempt to neutralize a rising challenger and preserve Creative Cloud’s dominance. Regulators in the U.S. and Europe blocked the deal on antitrust grounds, but that decision ended up reinforcing just how valuable and irreplaceable Figma has become in the global design ecosystem.

Valuation Outlook

From a fundamentals standpoint, Figma’s growth potential remains highly attractive. The company brought in $750 million in revenue in 2024, and if it maintains a 30% compound growth rate over the next five years, it could reach over $2 billion in revenue by 2029.

As its business model matures and operating leverage kicks in, Figma could also see profit margins rise to 30%, similar to SaaS leaders like Adobe. With a fully diluted share count of 478 million, applying a 30x PE ratio could support a stock price of around $43/share — a healthy upside from the IPO range, and a signal of investor optimism around its long-term earnings potential.

Figma also benefits from a rapidly expanding market. According to Business Research Insights, the global UI design software market is expected to grow from $2.43 billion in 2024 to $8.55 billion by 2033, a 15% CAGR. Figma already controls roughly 40% of that market — far ahead of competitors — giving it both pricing power and strong customer stickiness. If it can maintain or even grow that market share, Figma stands to gain from both industry tailwinds and its own execution strength.

Source: Business Research Insights

Invesight Viewpoint

Figma’s IPO marks a key turning point — its graduation from a high-growth private unicorn to a publicly-traded, profit-making SaaS leader. The IPO also represents a real-time test of investor belief in its business model, global reach, and AI-fueled roadmap. From its deep product moat and loyal user base to its unmatched positioning in the design software landscape, Figma has few true competitors. Adobe’s failed attempt to buy it out only adds to the sense that this company is playing a long game — one that it plans to win on its own terms.