TL;DR: Figma’s $1.2 billion IPO at a $19.3 billion valuation that soared to $47.1 billion on day one represents one of the most successful tech IPOs in years, outperforming most major offerings since 2020 in terms of both fundamentals and market reception.
As Good As it Gets. So Far
Figma stands out even among recent high-growth software IPOs like Circle and CoreWeave, with year-over-year revenue growth approaching 50% and Q1 profitability. While 2020’s mega IPOs raised more capital in absolute terms, Figma’s combination of scale, profitability, and explosive first-day performance makes it the gold standard for how B2B companies should approach public markets in 2025.
Figma by the Numbers: A Masterclass in B2B IPO Execution
The Fundamentals:
– $749 million revenue in 2024 (48% YoY growth), $1B ARR today
– 91% gross margin with rolling 12-month revenue of $821 million
– Q1 2025 net income of $44.9 million – profitability at scale
– Over 13 million monthly users, with only one-third being designers
– Around 450,000 customers as of March 31
The IPO Performance:
– Priced at $33 per share (above initial $25-$28 range)
– Opened at $85, hit intraday high of $124.63, closed first day at $115.50
– 250% first-day pop from offer price
– Market cap jumped from $19.3 billion to $47.1 billion
How Figma Stacks Against the 2020 Tech IPO Giants
The 2020 Mega Class: Snowflake, Airbnb, DoorDash
Snowflake (September 2020):
– Raised $3.9 billion, largest software IPO ever at the time
– Valued at $33 billion pre-trading, more than doubled on first day
– Narrowly outperformed Nasdaq since initial pop
Airbnb (December 2020):
– Raised $3.4 billion at $47.3 billion valuation
– 112% first-day jump
– Up less than 3% since first day as of reporting
DoorDash (December 2020):
– Priced at $102, first trade at $182, 85% first-day gain
– Investors who bought after initial pop lost money
The Key Difference: All four 2020 mega IPOs (including Uber/Lyft from 2019) relied on vast amounts of outside capital to grow networks and only Airbnb recorded net profit in latest quarter after massive cost cuts. Figma achieved profitability while growing 48% YoY – a fundamentally different trajectory.
The 2025 AI Darlings: CoreWeave and Circle
CoreWeave (March 2025):
– Priced below expectations at $40 per share ($20 billion valuation)
– Up 270% since IPO
– $981.6 million revenue (420% growth) but $314.6 million net loss
– 77% of revenue from just two customers, Microsoft accounting for 62%
Circle (June 2025):
– Stock shot up 500% after debut
– Raised $1.05 billion
What Makes Figma’s IPO Different (And Better)
1. True SaaS Economics at Scale
Unlike the capital-intensive, low-margin businesses of 2020’s sharing economy giants, Figma demonstrates classic SaaS metrics that VCs dream about:
– 91% gross margins (compared to traditional cloud infrastructure plays)
– Subscription-based recurring revenue model
– Expanding user base beyond core design market
2. Profitability Without Sacrificing Growth
Figma generated net income in Q1 2025 while maintaining 46% YoY growth – something that eluded most 2020 IPO darlings. This proves the SaaS model’s inherent scalability when executed correctly.
3. Market Timing and Positioning
Figma could serve as a bellwether for the market, providing proof-of-concept for other SaaS names like Canva, Netskope, and Databricks. The company went public at the perfect inflection point of IPO market recovery.
4. Platform Expansion Strategy
Only one-third of Figma’s 13 million monthly users are designers, demonstrating successful expansion beyond initial TAM – a key growth vector that wasn’t present in most 2020 IPOs.
The Broader IPO Market Context
2020-2021: The Everything Bubble
2021 saw a record 1,035 IPOs, with 155 U.S. venture-backed IPOs raising $60.4 billion. Three of the 10 biggest tech IPOs ever happened in 2020, with companies commanding valuations “seemingly untethered from any analytic metrics”.
2022-2024: The Great Freeze
The IPO market essentially froze after 2021, with only 13 such offerings in 2022, 18 in 2023, and 30 in 2024, collectively raising just $13.3 billion.
2025: The Selective Thaw
201 IPOs so far in 2025, with IPO issuance estimated to range from 155 to 195 deals. June 2025 produced five tech IPOs, accelerating from a monthly average of two since January.
Looking Ahead: The Companies to Watch
Based on Figma’s template, the next wave of successful tech IPOs will likely include:
– Canva ($32 billion valuation, $2.6 billion revenue, seven consecutive years of profitability)
– Databricks (60% revenue growth, 140%+ net revenue retention)
– Klarna ($2.8 billion revenue, returning to profitability)
The Figma Formula: Lessons for the Next Generation
Figma’s IPO success isn’t just about market timing – it’s about building an incredibly sound SaaS business that grows efficiently, expands its market, and generates sustainable profits. In a market that’s both infatuated with AI but also becoming increasingly discerning at scale after the 2020-2021 excesses, Figma proves that great SaaS companies can still command premium valuations and deliver explosive public market debuts. SaaS isn’t dead. In fact, it’s bigger than ever. With its best IPO to date, so far.
For founders building the next generation of SaaS companies, Figma’s path from design tool to connected platform to profitable public company offers the clearest roadmap to IPO success in today’s market environment.
The bottom line: Figma didn’t just go public – it set the new standard for how exceptional SaaS companies should approach public markets in 2025 and beyond.
