SUMM

Figma has filed its S1, preparing for an IPO to become a publicly traded company.
Filing reveals new data, including a $300,000 per day AWS bill and detailed financials.
The video aims to analyze Figma’s real numbers and historical context, especially after the failed Adobe acquisition.

Figma has $821 million in lifetime revenue, 46% year-over-year growth, 18% operating margin, and 91% gross margin.
78% of Forbes 2000 and 95% of Fortune 500 companies use Figma.
Annual revenue for 2024 is about $750 million; gross profit stands at $660 million.
Recent quarterly revenue: $156 million (previous year) vs. $228 million (current year) for the same 3-month window.
Figma committed to $545 million in cloud hosting (AWS) over five years, starting May of the current year.
Current AWS spending is about $50 million a year ($136k/day), expected to ramp up.
They recently acquired Payload CMS for $35.5 million, with a portion of that amount subject to vesting over four years.
Figma purchased $30 million in Bitcoin and some stablecoins, planning to convert more into Bitcoin later.

Overview of startup funding: begins with a pre-seed/seed round (often a SAFE note), then customers and product validation.
Series A round involves actual equity and often ceding a board seat.
Companies repeatedly raise more money, increasing valuations at each round to give up less equity for more capital.
Exits typically occur via IPO or acquisition. Early investors/holders can't sell equity until such an exit.
The failed Adobe acquisition for $20 billion is highlighted, with regulatory concerns blocking the deal and impacting Figma’s exit path.

Blocking the Adobe acquisition was unfortunate for Figma; the founders and employees lost out on a straightforward exit.
A $1 billion breakup fee from Adobe gave Figma runway to become profitable and prepare for an IPO.
Figma rapidly improved financial strength, posting $750 million revenue in 2024 (48% YoY growth) and $228 million in the first quarter of 2025.
Year-over-year growth has been about 53% on average over the past four years.
Breakdown of customers by revenue contribution: 11,000 companies spend over $10k/year, and 1,000+ spend over $100k/year.
The focus is increasingly on larger enterprise clients, while small teams are less of a priority.

Figma has no viable acquisition exit path due to competition concerns; the IPO is the only way for stockholders to monetize equity.
Competitive landscape is shifting: AI tools and generative UI platforms are reducing the dependency on Figma, especially for new startups and smaller teams.
The rise of SaaS infrastructure and AI means smaller, highly profitable companies can compete with less reliance on complex design tools.
There is uncertainty about whether the next generation of companies will continue to use Figma, with many YC startups now favoring alternatives like Cursor.
Only a third of Figma’s users are actually designers, suggesting dependency on broader team adoption.

Currently, Figma dominates its market segment, securing 95% of Fortune 500 and top-paying clients.
Despite strong revenue nearing $1B and consistent growth, future growth is uncertain due to the evolving role of AI in design and software creation.
Figma’s future depends on its ability to attract and retain the upcoming wave of new companies, not just the existing giants.
Early employees and founders benefit from IPO liquidity now, given the risk of future disruption or declining growth.
Many investors may not fully grasp the risks posed by AI and market shifts, but Figma’s leadership is acutely aware.
The timing of the IPO is critical to capitalize on strong historical growth while managing increasing market uncertainty.

Figma filed for their IPO (and revealed EVERYTHING)