Figma Stock Explodes After IPO, but Is It Overhyped?
Figma is a browser based, collaborative design and software development platform, renowned for reimagining how modern teams build digital products. From UI/UX to developer handoff, Figma covers the full product creation lifecycle and it’s quickly expanding into general workplace collaboration.
Founded in 2012 and headquartered in San Francisco, Figma gained early traction among designers, later adding features like Dev Mode and AI powered tools such as Figma Make, which transforms natural language prompts into functional prototypes. This expansion reflects Figma’s ambition to become a core productivity tool for designers, engineers, product managers, and marketers alike.
With the company's IPO now complete, Figma is taking a major step toward maturity but its valuation demands scrutiny.
Financial Performance & IPO Highlights
Figma’s IPO priced at $33 per share, giving it an initial market cap of $16.1 billion (or ~$18.5 billion fully diluted) but demand was extraordinary as I expected : the offering was 40x oversubscribed, and shares are now trading at $104 , a 333% increase from the IPO price
Key Financials
Q1 2025 Revenue: $228 million
Q1 Net Income: $44.9 million
2024 Net Loss: $732 million (due to rising operational costs)
Annualized Revenue (estimated): ~$912 million
Valuation
Metric Value
Basic Market Cap ~$50.75B
Fully Diluted Valuation ~$58.2B
Valuation w/ CEO RSUs >$59B
P/S Ratio (Fully Diluted) ~63.9×
This P/S multiple is significantly above the typical range for high-growth SaaS companies (usually 10–20×), making Figma one of the most richly valued software IPOs in recent memory
Risks & Concerns
While investor enthusiasm is clear, several risks stand out
Massive Valuation Stretch: The current valuation implies near-perfect execution for years to come. Any slowdown in growth or margin expansion could result in sharp repricing.
Profitability Questions: Despite Q1 net income, Figma posted a $732M loss in 2024 — highlighting its aggressive reinvestment strategy and rising costs.
Rising Competition: AI-native tools like Lovable and Bolt are gaining traction. Figma must stay ahead in AI integration to maintain its leadership.
Adobe Deal Collapse: Regulators blocked Adobe’s planned $20B acquisition of Figma in 2023, which ended with Adobe paying a $1B breakup fee. Figma must now prove it can scale independently.
Voting Structure: CEO Dylan Field retains 74.1% voting control through super-voting Class B shares, giving him near-total control post-IPO.
Growth Drivers & Outlook
Despite valuation concerns, Figma’s growth trajectory is compelling:
46% YoY Revenue Growth in Q1 shows strong product-market fit.
Expanding into adjacent use cases beyond design (engineering, product, marketing).
Investing heavily in AI-powered workflows, which could unlock entirely new customer segments.
Going public gives Figma the capital and branding boost to scale globally and compete with enterprise incumbents.As Andrew Reed of Sequoia Capital noted, Figma’s potential lies in becoming a core tool not just for designers, but for all knowledge workers.
Figma is the flagbearer of design-first SaaS, and its IPO marks a major milestone for creative and collaborative software. The company has demonstrated breakout growth and user loyalty but at a current valuation of over $58 billion, investors are paying a premium that leaves little room for missteps.
Figma evolves into a horizontal collaboration suite used across roles and industries, becoming the next Adobe or Atlassian.
So far Figma’s explosive $104 debut shows the market believes in design-first software but at 60×+ sales, belief needs to meet relentless execution.
Figma is a browser based, collaborative design and software development platform, renowned for reimagining how modern teams build digital products. From UI/UX to developer handoff, Figma covers the full product creation lifecycle and it’s quickly expanding into general workplace collaboration.
Founded in 2012 and headquartered in San Francisco, Figma gained early traction among designers, later adding features like Dev Mode and AI powered tools such as Figma Make, which transforms natural language prompts into functional prototypes. This expansion reflects Figma’s ambition to become a core productivity tool for designers, engineers, product managers, and marketers alike.
With the company's IPO now complete, Figma is taking a major step toward maturity but its valuation demands scrutiny.
Financial Performance & IPO Highlights
Figma’s IPO priced at $33 per share, giving it an initial market cap of $16.1 billion (or ~$18.5 billion fully diluted) but demand was extraordinary as I expected : the offering was 40x oversubscribed, and shares are now trading at $104 , a 333% increase from the IPO price
Key Financials
Q1 2025 Revenue: $228 million
Q1 Net Income: $44.9 million
2024 Net Loss: $732 million (due to rising operational costs)
Annualized Revenue (estimated): ~$912 million
Valuation
Metric Value
Basic Market Cap ~$50.75B
Fully Diluted Valuation ~$58.2B
Valuation w/ CEO RSUs >$59B
P/S Ratio (Fully Diluted) ~63.9×
This P/S multiple is significantly above the typical range for high-growth SaaS companies (usually 10–20×), making Figma one of the most richly valued software IPOs in recent memory
Risks & Concerns
While investor enthusiasm is clear, several risks stand out
Massive Valuation Stretch: The current valuation implies near-perfect execution for years to come. Any slowdown in growth or margin expansion could result in sharp repricing.
Profitability Questions: Despite Q1 net income, Figma posted a $732M loss in 2024 — highlighting its aggressive reinvestment strategy and rising costs.
Rising Competition: AI-native tools like Lovable and Bolt are gaining traction. Figma must stay ahead in AI integration to maintain its leadership.
Adobe Deal Collapse: Regulators blocked Adobe’s planned $20B acquisition of Figma in 2023, which ended with Adobe paying a $1B breakup fee. Figma must now prove it can scale independently.
Voting Structure: CEO Dylan Field retains 74.1% voting control through super-voting Class B shares, giving him near-total control post-IPO.
Growth Drivers & Outlook
Despite valuation concerns, Figma’s growth trajectory is compelling:
46% YoY Revenue Growth in Q1 shows strong product-market fit.
Expanding into adjacent use cases beyond design (engineering, product, marketing).
Investing heavily in AI-powered workflows, which could unlock entirely new customer segments.
Going public gives Figma the capital and branding boost to scale globally and compete with enterprise incumbents.As Andrew Reed of Sequoia Capital noted, Figma’s potential lies in becoming a core tool not just for designers, but for all knowledge workers.
Figma is the flagbearer of design-first SaaS, and its IPO marks a major milestone for creative and collaborative software. The company has demonstrated breakout growth and user loyalty but at a current valuation of over $58 billion, investors are paying a premium that leaves little room for missteps.
Figma evolves into a horizontal collaboration suite used across roles and industries, becoming the next Adobe or Atlassian.
So far Figma’s explosive $104 debut shows the market believes in design-first software but at 60×+ sales, belief needs to meet relentless execution.
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🟣MasterClass moonypto.com/masterclass
🟢Signal moonypto.com/signal
🔵News t.me/moonypto
⚪ t.me/moonyptofarsi
🟢Signal moonypto.com/signal
🔵News t.me/moonypto
⚪ t.me/moonyptofarsi
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.