Latest news with #designsoftware
Yahoo
5 days ago
- Business
- Yahoo
Figma CEO Shares Strategy as Company Goes Public
Figma CEO Dylan Field said the maker of design software is focused on growth and taking "big swings" in M&A as the company goes public. Field speaks with Bloomberg's Caroline Hyde at the New York Stock Exchange.
Yahoo
6 days ago
- Business
- Yahoo
Investors Are Flocking to Figma. Why Is the Design Software Maker's Stock So Hot?
Touted by some as the David to Adobe's Goliath, design software upstart Figma's (FIG) market value could be catching up to that of the company that nearly acquired it more quickly than even it expected. Figma's stock more than tripled in value in its first day of trading yesterday after an upsized initial public offering. And with Friday's further jump —6% in recent trading—its market capitalization is approaching $60 billion, close to half of Adobe's (ADBE). That's also roughly three times the $20 billion Adobe offered to pay for it in 2022, in what was widely seen as an acknowledgement that Figma could—at least in some ways—be beating the design giant at its own game. (Pressure from regulators, who viewed the bid as a bald attempt from Adobe to knock out competition, killed that deal.) Figma Eyes AI With Its 'Most Innovative Days' Ahead In the less than 10 years since Figma launched its software publicly in 2016, it's become a mainstay of the design world, particularly for its strengths in real-time collaboration, interactive features, and AI integrations. An estimated 95% of Fortune 500 companies use it, with its clients including many tech heavyweights like Amazon (AMZN), Google parent Alphabet (GOOGL), Oracle (ORCL), and Netflix (NFLX). Figma reported first-quarter net income of $44.9 million on revenue that jumped 46% year-over-year to $228.2 million, according to a regulatory filing. CEO Dylan Field, a budding billionaire thanks to this week's gains, said he expects further growth, with big plans in AI. Figma's revenue surged 48% last year to $749 million. Adobe's climbed 11% to $21.51 billion. "Figma's most innovative days are ahead," he said in a blog post yesterday. "We're already investing heavily in AI and we plan to double down even more in this area. AI spend will potentially be a drag on our efficiency for several years, but AI is also core to how design workflows will evolve going forward." Some high-profile investors are among those buying into Field's vision. Cathie Wood's Ark Invest, which focuses on companies it perceives as innovators and disruptors, was among those that piled into the stock yesterday, snapping up about 60,000 shares. Read the original article on Investopedia 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
Yahoo
6 days ago
- Business
- Yahoo
Figma Stock More Than Triples on Its First Day of Trading
Key Takeaways Figma shares more than tripled from their IPO price on their first day of trading. The company priced its IPO at $33, and shares have since rocketed to above $117. In 2022, Adobe had agreed to buy Figma for $20 billion, but the deal fell through due to regulatory (FIG), a design software maker that debuted on the New York Stock Exchange Thursday, is off to a strong start as a publicly traded company. Shares of Figma more than tripled in their first day of trading from their initial public offering price of $33 per share to more than $117. That would give Figma a market capitalization over $57 billion, based on the number of shares outstanding listed in a regulatory filing. That valuation is nearly three times the $20 billion acquisition offer from Adobe (ADBE) that Figma accepted in 2022. That deal was terminated in 2023 due to regulatory hurdles. Figma and its shareholders sold nearly 37 million shares of stock, raising roughly $4.3 billion. The IPO price of $33 per share was above Figma's estimated range of $30 to $32, which was revised up from an initial projection of $25 to $28. Figma offers creative tools for app and web interfaces and counts some of the world's most valuable tech companies, including Amazon (AMZN), Google parent Alphabet (GOOGL), Oracle (ORCL), and Netflix (NFLX), among its customers. The company reported first-quarter net income of $44.9 million on revenue that jumped 46% year-over-year to $228.2 million. Figma's launch comes after a series of strong IPOs this year, including stablecoin issuer Circle's (CRCL) last month, and online trading platform eToro's (ETOR) in May. CORRECTION—July 31, 2025: This article has been updated since it was first published to reflect more recent stock prices and that eToro made its public debut in May. Read the original article on Investopedia
Yahoo
6 days ago
- Business
- Yahoo
Figma IPO closes up over 250% in market debut
-- Today's IPO for design software company Figma (NYSE:FIG) was a screaming success. Shares opened for trading on the New York Stock Exchange this afternoon at $85 per share, sharply above the $33 per share pricing, then continued higher. The stock ended the session at $116.30, up 252.4%. The IPO was 40x oversubscribed, following the massive success of IPOs from Coreweave and Circle. The company priced 36,937,080 shares of Class A common stock, raising $1.22 billion. Leading the offering were Morgan Stanley, Goldman Sachs & Co (NYSE:GS). LLC, Allen & Company LLC, and J.P. Morgan. Figma reported 2024 total revenue of $749 million, up 48% from the prior year. Despite the success of its IPO, the company doesn't plan on resting on its laurels. 'Some companies run out of ideas as they scale. At Figma, we have more ideas than ever. Expect us to take big swings when we see a chance to invest in our platform or pursue M&A at scale," Figma co-founder Dylan Field said in a letter in the company's prospectus. "That means at times we will make decisions that may not seem immediately rational. And, while we always strive to exercise good judgement, sometimes we will make the wrong calls. If you decide to invest in Figma, we hope you will take a long-term view and stay patient—there is so much to build, and we will bias towards long-term compounding (measured in decades) over quarterly share price appreciation.' DA Davidson analyst Gil Luria called Figma 'the software IPO we've been waiting for.' 'We believe Figma is an ideal IPO candidate to lead the way for additional software IPOs over the next 12–18 months,' Luria said. 'The company checks the boxes in terms of growth, profitability, and technology. Investors have been starved of new entrants into public markets in recent years as indicated by the success of oddball stocks like Coreweave and Circle.' Related articles Figma IPO closes up over 250% in market debut Risks Rising? Smart Money Dodged 46%+ Drawdowns on These High-Flying Names Apollo economist warns: AI bubble now bigger than 1990s tech mania 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
Yahoo
6 days ago
- Business
- Yahoo
Figma shares more than triple in soaring public debut
Figma, the design software company led by CEO and cofounder Dylan Field, saw its stock price more than triple in a stunning debut on the New York Stock Exchange on Thursday. Shares of Figma were trading as high as $107 within minutes after it began trading under the ticker FIG. The company and its early shareholders raised $1.2 billion in its IPO on Wednesday, with shares priced at $33. The stock began trading Thursday at $85 a share, and took off like a rocket from there. The surge gave Figma a market cap of roughly $46 billion, eclipsing the $20 billion price that Adobe had planned to acquire the company for before the merger was abandoned in 2023 due to regulatory pushback. Adobe, with a market cap of around $152 billion, will now be Figma's key public markets competitor as the upstart chases market share. Praveer Melwani, Figma's CFO, told Fortune on Thursday morning that it will be business as usual for Figma moving forward, with possible acquisitions in the pipeline. 'Candidly, the way we're running this—or the way the offering shaped up—it's a majority secondary transaction with a small portion of primary that facilitates to pay the tax that's owed on the RSU [restricted stock unit] settlement,' said Melwani, who became Figma's first business operations head in 2017. 'So, we're net neutral from a cash impact on technology. The story stays the same. We have been acquisitive in the past—primarily small teams and talent.' Figma's securities filing for its public debut showed a growing, profitable business, with revenue up in Q1 2025, 46% year-over-year to $228.2 million and a net income for the quarter at $44.8 million. Figma's opening pop reflects not only optimism about Figma, but optimism about the venture-backed IPO landscape overall. Muted in recent years, tech IPOs have been in the midst of a slow but decisive recovery. Recently, VC-backed darlings like Circle, Chime, Hinge Health, and CoreWeave have all gone public, with varying degrees of success. Figma itself is backed by a number of Silicon Valley stalwarts, including Index Ventures, Kleiner Perkins, Greylock, and Sequoia Capital, all of whom hold stakes worth north of $1 billion in the company. For Figma moving forward, the biggest question is how the company will adapt to and capitalize on AI. Greylock venture partner John Lilly told Fortune that Figma and Field are well-positioned. 'The way we're going to be interacting with more systems and technology over time means interfaces have to be designed right,' said Lilly. 'Figma is the way organizations design together, it's sort of the operating system… As long as we keep investing and keep making sure that we're on top of AI—integrating the best tools and creating some of them—then AI looks like a huge opportunity to me.' This story was originally featured on 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
