Latest news with #FigmaMake
Yahoo
31-07-2025
- Business
- Yahoo
Figma Indicated 112% Above IPO Price After $1.2 Billion IPO
(Bloomberg) -- Figma Inc. shares are indicated to begin trading at $65 to $70 each, after the design and collaboration software company and some of its backers raised $1.2 billion in one of the year's most-anticipated US initial public offerings. The World's Data Center Capital Has Residents Surrounded An Abandoned Art-Deco Landmark in Buffalo Awaits Revival We Should All Be Biking Along the Beach Budapest's Most Historic Site Gets a Controversial Rebuild San Francisco in Talks With Vanderbilt for Downtown Campus The indications, which are signals from market makers of the level where trading may begin, imply as much as a 112% gain above the IPO price of $33 apiece. The shares were marketed for $30 to $32 per share, after the company increased the range earlier in the week. The company sold 12.47 million shares in the IPO, which priced Tuesday, while investors including Index Ventures, Greylock Partners and Kleiner Perkins sold 24.46 million shares. The IPO pricing gives Figma a market value of $16.1 billion, based on the outstanding shares listed in its filings. Accounting for employee stock options and restricted stock units, the company has a fully diluted value of roughly $18.5 billion. Including restricted stock units for Chief Executive Officer Dylan Field, which are subject to vesting conditions, the fully diluted value would rise above $19 billion. The figure is approaching the $20 billion valuation Figma would have fetched in a planned sale to Adobe Inc. that fell apart in 2023. The shares offered in Figma's IPO were approaching 40 times oversubscribed, Bloomberg News reported Tuesday, in a sign of robust demand for the first sizable software offering in the US since SailPoint Inc.'s debut in February. Figma is used to design web and mobile application interfaces. It has expanded its suite of products in an attempt to be more useful for software development and general workplace collaboration. Like many software firms, Figma charges clients based on the number of users and the kind of seat those users have. It added Dev Mode to the platform in 2023 to enable closer collaboration with developers, and has more recently incorporated AI technology into many of its own tools. This year it introduced Figma Make, an AI-based product that lets the user turn prompts into functional prototypes. Now that the company is public, 'we have to continue to sprint, to push hard, and we can't let the public markets distract us,' Field said in an interview. Going public allows Figma to have a big brand moment which centers the importance of design, Field said. 'This is a time where we can create tremendous value for our community, our customers, and I think the public market is the right place to do it.' The company is growing quickly, with a 46% year on year increase in first-quarter revenue. What Bloomberg Intelligence Says Figma's profitability, highlighted by an adjusted gross margin around 92%, tracks above even its most well-established software peers, giving the company ample flexibility to invest in new products and markets. - Anurag Rana and Andrew Girard, technology analysts Click here to read the research. A key question for Figma's long-term success is whether it can become a tool used pervasively used by office workers beyond designers. The company's suite of tools is seeing strong adoption by software developers, product managers, and marketers, said Andrew Reed, a partner at Sequoia Capital and a member of Figma's board. Sequoia, one of the most storied Silicon Valley venture firms, first invested in Figma in 2019. Around this time, companies were beginning to adopt Figma's product en masse, Reed said. The use of AI-focused software creation apps which are potential competitors to Figma, such as Lovable and Bolt, has rapidly increased this year. Weaving AI features through Figma is a top priority, Field said. 'We have so much room to explore how we can make great AI products and experiences.' IPO Volume Climbs The IPO has lifted the volume of first-time share sales on US exchanges above last year's pace. There has been more than $21 billion worth of US first-time share sales in the year to date, excluding financial vehicles such as blank-check companies, just behind the $20.2 billion raised in the same period in 2024, data compiled by Bloomberg show. Demand for Figma's IPO was likely helped by an order-taking process similar to an auction. Prospective investors in Figma's offering were asked to precisely state the number of shares they wish to buy and at what price, a person familiar with the matter has said. Field will continue to control the company with 74.1% of the votes after the IPO through his holdings of Class B shares that have 15 votes each, the filings show. The CEO and fellow Brown University student Evan Wallace started Figma in 2012. Field attended Brown for two and a half years before accepting a Thiel Fellowship, the Peter Thiel-backed program that provides funding to young entrepreneurs, provided they drop out of school. Figma was widely embraced by designers who warmed to its browser-based interface, replacing previous methods of collaboration involving sharing files individually. Figma had net income of $44.9 million and revenue of $228 million in the three-month period ended March 31, according to its filings. It reported revenue growth in 2024, though rising operating expenses contributed to a net loss of $732 million for the year. Adobe, a maker of software for creative professionals, walked away from the deal to buy Figma following clashes with regulators. It paid a $1 billion termination fee. The offering was led by Morgan Stanley, Goldman Sachs Group Inc., Allen & Co. and JPMorgan Chase & Co. The company's stock is listed on the New York Stock Exchange under the symbol FIG. --With assistance from Katie Roof, Natalia Kniazhevich and Eric J. Weiner. (Updates with indications in first three paragraphs, CEO interview throughout.) Russia Builds a New Web Around Kremlin's Handpicked Super App Burning Man Is Burning Through Cash Everyone Loves to Hate Wind Power. Scotland Found a Way to Make It Pay Off It's Not Just Tokyo and Kyoto: Tourists Descend on Rural Japan Cage-Free Eggs Are Booming in the US, Despite Cost and Trump's Efforts ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Mint
31-07-2025
- Business
- Mint
Figma goes public! IPO raises $1.22 billion from US market; shares listed at $33 apiece. Details here
Figma Inc., a design software company, had its shares listed on the New York Stock Exchange (NYSE) after completing its initial public offering (IPO) round on Thursday, 31 July 2025. According to the news agency Reuters' report, the company raised $1.22 billion from the US stock market as the shares were listed at a price of $33 apiece. The company successfully secured a valuation of nearly $20 billion ($19.34 billion) through its public issue round. According to the report, the IPO comes at a time when primary market listings are bouncing back in the US after tariff-driven volatility. Index Ventures, Greylock Partners and Kleiner Perkins were the investors selling a stake in the Figma IPO, where each investor sold 36.9 million equity shares at $33 apiece. The IPO had a price band of $30 to $32 per share, according to a separate Bloomberg report on Thursday. The Figma IPO was reportedly oversubscribed 40 times over the shares on offer for public bidding, indicating a strong demand for the company shares among primary market investors. According to the agency report, Figma's IPO is the first sizeable public issue since the listing of the software firm SailPoint Inc. in February 2025. 'Figma's profitability, highlighted by an adjusted gross margin around 92%, tracks above even its most well-established software peers, giving the company ample flexibility to invest in new products and markets,' said the analysts at Bloomberg Intelligence cited in the agency report. Figma is a design software company that offers users access to its services via web browser and mobile applications. The users can use the software for themselves or collaborate with others in a general workplace. The company uses a charge model with its clients, where it bases the charges on the number of users accessing the platform from a single account and on the kind of seat those users have, according to the agency report. Figma has adopted certain changes with its 'Dev Mode' which is aimed to bridge the gap with the company developers. The brand has been using artificial intelligence technology in many of its tools. In 2025, Figma introduced Figma Make, an AI-based product that lets the user turn prompts into functional prototypes, as per the news report. Disclaimer: This story is for educational purposes only. The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.
Fast Company
29-07-2025
- Business
- Fast Company
Beyond functionality: Building products people love to use
One of the most important realizations I've had in my time leading product and design at Rilla is that 'delight' is the heartbeat of a great product. No longer just a nice-to-have, delight is what separates a product that works from a product that people genuinely enjoy using. This is especially true in the era of AI, where functionality is rarely a differentiator. EVERY APP 'JUST WORKS' In 2025, AI tools have made functionality table stakes; every product more or less works. The bar for performance has been normalized. From AI code assistants like Cursor to design and prototyping tools like Figma Make, teams can build, design, and iterate at a pace that would've been unthinkable a few years ago. Transcription models like Whisper now produce near-perfect transcripts in real time. Chatbots built on GPT-4o or Claude can answer support queries, onboard users, or summarize meetings with almost no setup. Tasks that once took weeks now happen in days or even hours. Speed and capability are no longer bottlenecks. As a result, the differentiator isn't what a product does, but how it makes people feel while doing it. In this new landscape, delight isn't a bonus feature. It's the foundation of product love. This isn't a new idea. The most beloved products have always felt like someone cared deeply about every detail. Jony Ive, reflecting on Apple's design philosophy at the 2025 Stripe Sessions conference, said, 'I believe that when somebody unwrapped that box and took out that cable, and they thought, 'Somebody gave a shit about me,' I think that's a spiritual thing… It did genuinely come from a place of love, and from care.' In the past, that level of care sat on top of core functionality. Today, in a world where building things is becoming easier, it's what makes products stick. 1. Walk In Users' Shoes (Literally) In my experience, delight rarely comes from wireframes or metrics alone. Rather, it comes from feeling what users feel. That means looking past mocks and dashboards and into the messy, emotional, very human experience of actually using the product. This is why I encourage our engineers and designers to join support calls, build a personal customer advisory group to test ideas with, and even shadow users in person to truly understand their experience. You can't capture the sigh after the fourth loading spinner in a survey. You can't measure the hesitation before a confusing click. But by being close to your users, you can hear the catch in someone's voice as they hit a wall, or the quiet 'ohhh' when they finally get something to work. These are the moments that teach you why your product matters (or doesn't). 2. Delight As The Antidote To Bloat At Rilla, we ship fast, experiment often, and use AI where it helps. But in a world buzzing with AI features, it's tempting to pile on every new capability. Chasing delight helps us stay disciplined. It forces us to ask: Is this actually helping someone? If a feature adds complexity without clarity, it's noise. True delight is often rooted in simplicity—the kind that makes it instantly obvious what the goal is, and what happens when you get there. It shows up when every element has a purpose, when the interface feels obvious. When people don't just use the product, they get it. That kind of clarity builds trust. And trust is what makes people come back. 3. Turn Chores Into Moments Of Joy Some parts of a product are expected: forms, checklists, filters. They're not flashy. But they don't have to be painful. Delight lives in the details: a playful micro-interaction, a smart autofill, a helpful nudge that shows someone's thinking ahead for you. These touches turn a routine task into a moment of progress. The shift is subtle but powerful. It turns 'I have to do this' into 'That was smoother than I expected,' which turns into 'I kind of enjoy doing this.' When people feel capable, they feel good. And when a product makes someone feel good about themselves, not just the tool, that emotion is sticky. It's why they tell their teammates. It's why they come back. A NEW FRONTIER FOR CRAFT AND CONNECTION We're at a rare moment. Thanks to AI, the scaffolding is handled: the boilerplate, the routing logic, the endless setup. That means our time can shift from building what's functional to crafting what's meaningful for the people we're serving. The real opportunity in this new era isn't just speed. It's space. Space to care more. To notice more. To build with empathy and intentionality. When we obsess over the tiny moments—when someone smiles, breathes easier, or just feels understood—that's where product magic happens. Let's use this space well. Not just to build faster, but to connect deeper. To move beyond tools that 'work,' and toward experiences that feel personal, joyful, and unforgettable.
The Verge
24-07-2025
- Business
- The Verge
Figma's AI app building tool is now available for everyone
Figma Make, the prompt-to-app coding tool that Figma introduced earlier this year, is now available for all users. Similar to AI coding tools like Google's Gemini Code Assist and Microsoft's GitHub Copilot, Figma Make allows users to build working prototypes and apps using natural language descriptions, instead of needing to have innate coding skills. While Figma initially launched it in beta for 'Full Seat' users — the subscription tier required to unlock all of Figma's design products — Figma Make can now be accessed by all Figma users, with limitations in place depending on the user's subscription plan. The ability to publish designs created by Figma Make, which is currently still in beta, will be restricted to users with Full Seat access. Users on View, Collab, Dev, and free Starter Seat plans will be limited to experimenting with Figma Make in their personal drafts. That means that all users can at least try a demo of Figma Make, but actually doing anything with those creations will require moving to the most expensive subscription tier. One advantage that Figma Make notably has over similar app builder coding tools is the ability to include design references. Users can upload an image or Figma design into the tool alongside the description of what they want it to create — an animated music player, for example — to guide how the final results should look. Individual elements like text formatting and font style can then also be adjusted using additional AI prompts or edited manually. Figma Make is leaving beta alongside other Figma features like the Make and Edit image tool that uses generative AI to create or manipulate images based on text descriptions, and the resolution boosting feature that can be used to improve low-quality images. Figma is also introducing a new AI credit system that gives users a set number of credits that can be exchanged for using the platform's AI tools, with allocations based on paid membership tiers. Figma says that View, Collab, and Dev Seat users can use AI features with lower credit limits, 'that are subject to change,' while Full Seat users will have unlimited access…for now. 'AI credits are intended to easily cover day-to-day needs for Full seats, but for power users who may need more, team admins will be able to buy additional credits later this year,' Figma said in its announcement. 'Until then, we won't be strictly enforcing credit limits for Full seats.' Posts from this author will be added to your daily email digest and your homepage feed. See All by Jess Weatherbed Posts from this topic will be added to your daily email digest and your homepage feed. See All AI Posts from this topic will be added to your daily email digest and your homepage feed. See All Creators Posts from this topic will be added to your daily email digest and your homepage feed. See All Design Posts from this topic will be added to your daily email digest and your homepage feed. See All News Posts from this topic will be added to your daily email digest and your homepage feed. See All Tech
Business Insider
10-07-2025
- Business
- Business Insider
Former Takeover Target Threatens Adobe's (ADBE) Clould Creativity Empire
Adobe (ADBE) is poised to encounter increased competitive pressure, partly of its own making. Figma, the cloud-based design platform that Adobe sought to acquire in 2023, is preparing for a $1.5 billion initial public offering (IPO). This move will enhance Figma's access to capital, providing critical support for its continued growth and market expansion. Don't Miss TipRanks' Half-Year Sale Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week. Notably, Adobe was required to pay a $1 billion breakup fee following the failed acquisition attempt. The timing of Figma's IPO is particularly significant, as Adobe's revenue growth has slowed from 15–25% in previous years to just 11%, contributing to recent pressure on its stock performance. Additionally, there is growing sentiment that generative artificial intelligence (AI) tools may be narrowing Adobe's competitive moat. However, Adobe remains proactive in defending its leadership in the creative software space, leveraging its innovation capabilities and extensive ecosystem. Given the balance of emerging risks and potential opportunities, I maintain a Neutral outlook on ADBE. Figma's Ascent: A Formidable Competitor Emerges Figma officially filed for its IPO with the SEC via an S-1 registration statement earlier this month, marking a significant milestone for the fast-growing design platform. Its business is thriving—revenue surged 48% to $749 million in fiscal year 2024, with first-quarter revenue rising 46% year-over-year to $228.2 million. A net dollar retention rate of 132% reflects strong customer loyalty and product engagement. Adobe's interest in acquiring Figma in 2022 now seems even more justified. However, the deal was terminated a year later amid regulatory antitrust concerns, resulting in a $1 billion breakup fee paid to Figma. This infusion of capital further strengthened Figma's ability to scale independently. Best known for its browser-based, real-time collaboration tools, Figma has since expanded into adjacent offerings, including Figma Sites (no-code website creation), Figma Make (AI-driven code generation), and Figma Draw (vector editing)—many of which directly compete with Adobe products, such as Illustrator. While Figma's scale is still modest compared to Adobe's 2024 revenue of $21.5 billion, it remains a formidable challenger in the creative software space. Its IPO is expected to accelerate its growth trajectory and broaden its market presence. AI Threatens to Democratize Creativity In addition to competitive pressure from platforms like Figma and Canva, the creative software industry is being rapidly reshaped by the rise of generative AI tools such as Midjourney, OpenAI's Sora, and RunwayML. These solutions are particularly valuable in the early 'ideation phase' of content creation and are widely accessible, with pricing ranging from $20 per month to $1,500 per year. Their growing influence on Adobe's traditional offerings is significant. Many argue that these tools are democratizing creative capabilities, lowering barriers to entry for individuals and small teams. With tens of billions of dollars being invested in AI innovation, even an industry leader like Adobe may find it increasingly challenging to maintain its competitive edge in this rapidly evolving landscape. Adobe's Counter-Offensive: Firefly and AI Integration That said, Adobe is actively incorporating AI to enhance its product offerings. At the center of its AI strategy is Firefly, a suite of generative tools that includes features such as generative fill and expand, AI-assisted workflows, and text-based editing. A key differentiator is Adobe's emphasis on the commercial safety of Firefly, positioning it as a more secure alternative to other generative AI tools—such as those from OpenAI—which have faced concerns around copyright and content sourcing. This focus on reliability and legal clarity appeals particularly to enterprise clients and established organizations that prioritize compliance and risk mitigation, even at a premium. Additionally, Firefly is integrated with major partners, including Google Cloud and OpenAI, expanding its reach and functionality within Adobe's ecosystem. Financial Fortitude: Adobe's Stable Foundation surpassing 37 million paid subscribers by the end of 2024, according to the most recent data sourced by TipRanks. Flagship products, such as Photoshop, continue to be widely adopted by creative professionals worldwide. From a financial standpoint, Adobe is performing exceptionally well. In the second quarter of fiscal year 2025, the company posted record revenue of $5.87 billion. Operating cash flow reached $2.19 billion, representing a robust margin of 37.3%. High margins remain a key strength for Adobe, with a free cash flow margin of 36.83%—significantly outperforming the Information Technology sector median of 11.66% by over 215%. Despite these strong fundamentals, Adobe trades at a relatively modest valuation. Its current Price-to-Earnings ratio of 24.3 is below the sector median of 29.19, suggesting that the market may be factoring in expectations of slower growth ahead. What is the Price Target for ADBE? On Wall Street, the consensus rating on ADBE is Moderate Buy based on 19 Buy, seven Hold, and two Sell ratings in the past three months. T he stock's average price target of $484.88 implies a 26% upside potential over the next twelve months. Following Adobe's fiscal second-quarter results, Citi lowered its price target on ADBE from $465 to $450 while maintaining a Hold rating. The firm acknowledged Adobe's initial progress in monetizing AI as encouraging but expressed caution, citing uncertainty around the sustainability of its AI-driven growth. Citi pointed to fluctuating pricing strategies in fiscal 2025 and what it described as a 'seemingly diminishing' market and mindshare for Adobe's AI models as key concerns. Adobe at a Crossroads: Maturing Growth Meets Rising AI Competition Adobe faces a range of challenges. Growth in the creative software market appears to be entering a mature phase, which has weighed on investor sentiment and stock performance. The market no longer prices ADBE as a high-growth stock; its P/E ratio—once consistently around 50 since 2015—has been roughly halved. The failed acquisition of Figma may also have long-term competitive implications. Additionally, the rise of generative AI tools poses a threat to Adobe's moat, particularly among individual creators and small to mid-sized businesses. That said, Adobe remains a highly profitable enterprise and a trusted leader in the creative software market, which is projected to grow at a 7.1% annual rate. The company's efforts to adapt—highlighted by its AI-driven Firefly platform—demonstrate its commitment to innovation and relevance in a rapidly evolving landscape. Combined with a more reasonable valuation, these strengths make it challenging to adopt an overly bearish stance. All things considered, my outlook on ADBE is Neutral.
