Figma sprints to biggest tech IPO of the year with $749 million in revenue last year and a promising future in AI design

Billions of users around the globe use the services provided by Figma Support for building apps, websites, and digital interfaces such as Google Maps for navigation, Uber for taxi, JetBlue for flights, Netflix for watching shows, Duolingo for learning languages, Claude for Q&A, LinkedIn for networking, Mercado Libre for shopping, and Airbnb for booking accommodations.

Behind these digital products is the collaborative work of a cross-functional team of designers, developers, product managers, researchers, marketers, copywriters and non-design users on the Figma platform.

According to Figma's disclosure to the SEC this week, 2024 revenue was $749 million, up 481 TP4T, and Q1 FY2025 revenue was $228 million, up 461 TP4T.

In terms of profitability, Figma realized a net profit of $737.8 million in 2023 and recorded a net loss of $732.1 million in 2024; however, since the first quarter of 2024, there have been two consecutive quarters of profitability, of $13.5 million and $44.9 million, respectively.

Figma's IPO could raise as much as $1.5 billion. If Figma's IPO raises that amount or more, it will tie or even surpass CoreWeave in size, making it the largest tech IPO to date in 2025.

Evolution from tool to ecology

Figma was founded in 2012 by Dylan Field and Evan Wallace while attending Brown University. At the time, the design process relied heavily on desktop tools and team collaboration was inefficient. Designs were often emailed as "Draft_Final_V2_FINAL_v13" and the workflow was extremely decentralized. Inspired by the concept of collaboration between multiplayer online games, Google Docs, and GitHub, the two founders attempted to move the design process to the browser, realized high-performance rendering through WebGL, and spent three years polishing the product, ultimately launching Figma - the first of its kind in the world.The first browser-native design tool that combines web accessibility with desktop performance.

Although some designers were concerned about the "deadline pressure" and "collaboration interference" that may be caused by the openness of the process in the early days, as more teams started to use it, the "real-time collaboration in the same file" promoted by Figma gradually showed the advantages of faster output, unified resources, process standardization, and solved the long-standing problem of "unique and trusted version" in the design process. "As more teams began to use it, Figma gradually showed the advantages of faster output, unified resources, and standardized processes, and also solved the long-standing problem of "a single trusted version" of the design process.

Today, the openness and accessibility that Figma promotes is the industry default.This design-driven workstyle innovation is spreading across teams, tools, geographies, and industries, profoundly changing the way software products are built and delivered.

Along with changes in the way we collaborate, the Figma platform is expanding from a single design tool to a product development system that covers the entire "idea to release" process. Originally born in the browser, the platform now supports the complete process from Ideate, Visualize, Build, and Ship, and is interspersed by the AI component Figma Make.

Figma said seven new products have been introduced over the past four years, significantly enhancing the platform's end-to-end capabilities. As of Q1 2025, 76% customers are using two or more products, and the platform's ability to penetrate multiple roles and processes continues to grow.

Figma is deeply embedding AI into product processes to improve efficiency. The platform currently supports features such as generating editable interfaces through natural language prompts, automatic layer renaming, and summarizing sticky notes.

Figma Make, the most representative AI function, supports users to quickly generate interactive prototypes through prompts, and can be combined with existing design components. The feature is currently based on a large general-purpose model, and Figma plans to invest more in its own models in the future.

Community ecology is another core engine for platform expansion. So far, Figma community has released more than 250,000 resource modules and more than 10,000 plug-ins and widgets, which are used to extend the interface capabilities and accelerate the design process. At the same time, the open API interface encourages developers to build customized tools.

Figma is more than just an interface design tool; its real goal is to help teams turn ideas into software. While the community of users has driven the evolution of Figma in a variety of ways.The core is still centered around the theme of "how an idea becomes a product"..

The platform fully supports the following four key stages:

• Ideate and Align: Team members brainstorm and align directions around a problem or goal and work together to explore possible solutions;
• Visualize: Designers, product managers, and other collaborators visualize ideas in varying degrees of fidelity, gradually forming the overall experience structure of the product;
• Build: Translation of design and visualization results into code.Primarily done by developers and in a deliverable state.;
• Ship: The product is formally released into the hands of users, and combined with market feedback to continue iterative optimization, forming a closed loop of learning and updating.

This flowchart shows how Figma has built the platform to support the complete path from idea to product. The platform emphasizes that the process is not linear, but becomes more collaborative and dynamic as role boundaries are blurred and AI is added.

In terms of key account development, Figma has established a global sales team, combined with solution consultants and developer evangelists, to map its products to specific business scenarios. Figma emphasizes that its direct sales path is "collaboration-first," often driven by existing internal product advocates, with the sales team working with technical experts.Driving the leap from product trials to organization-level deployments. approximately 70% of Figma's total revenue in Q1 2024 and Q1 2025 will come from these types of Organization and Enterprise customers.

Figma also attaches great importance to customer support capabilities, establishing a global response system, providing multilingual services for paying customers, and supporting rapid response to issues through AI tools. At the executive level, Figma encourages the management team, including the CEO, to directly participate in community and customer feedback interactions to strengthen the understanding of the real needs of users and the ability to respond.

In terms of ecological construction, Figma is deeply integrated with many large-scale platforms and tools, including Atlassian, Zoom, Notion, Linear, GitHub, VS Code, Storybook, etc., forming an "embedded collaboration network", Apple, Google Material Design, etc. also access their design resource system through Figma, helping users to use it natively.

In the education market, Figma continues its open strategy: the Professional program is free of charge for educational institutions and students all over the world, and the Organization program is free of charge for K12 schools.Designed to build a growth path for the next generation of product designers.

Figma's business model

As of May 2025, Figma's internal research found that more than half of non-design users are already spending significant time on design-related aspects of their day-to-day work, such as visual exploration and user path mapping. This is further evidence that Figma is becoming the universal collaboration platform for cross-functional teams to engage in digital product creation.

pushing the boundaries of its products and successfully commercializing them as more processes are brought onto the platform.Allow more product development phases to be completed in the browser for integrated delivery.

Figma's business model is based on a subscription-based "seat" system, billed annually or monthly, for a full spectrum of users, from freelancers to Fortune 500 product teams. The product is layered by function, and seats are segmented by role, creating a flexible mix. Its core objectives are:Adapt to the collaboration scenarios of different organization sizes, industries and functions, and promote the two-way expansion of platform penetration breadth and depth.

In order to fulfill the access paths of different users, Figma offers two sales methods:

• Automated self-service process: complete registration and purchase online via Figma.com, marketed with organic and paid channels
• Direct sales path: work with enterprise customers to open accounts, complete upgrades, and drive multi-team deployments

Product Subscription Programs (Plans) There are four grades based on usage scenarios and team size:

• Starter (free version): Suitable for personal projects, as an initial experience path for design and collaboration tools
• ProfessionalUnlimited number of projects and design libraries for individuals and small teams.
• Organization: Supports cross-team collaboration and focuses on unified management and security for large organizations
• Enterprise: For multi-product/multi-brand organizations, support for customized workspaces, automated design system management, compliance controls, etc.

Figma also plans to introduce more flexible billing models based on feature usage, add-on purchases or limited usage. to expand revenue sources other than subscription; the predictability of this part of the revenue is relatively low, but it is more in line with the path of users, which can further enhance the platform's commercial conversion efficiency.

Figma notes that many of the users who started with the Starter or Professional packages ended up as Organization or Enterprise customers as their teams grew and their needs escalated.

For the full year 2024 and the first quarter of 2025, approximately 70% of Organization and Enterprise customers' accounts originated from Professional users at the earliest.

Future opportunities for Figma

Figma notes that global software output has exploded since its creation in 2012. According to Gartner, it is predicted thatGlobal software spending to exceed $1.2 trillion by 2025IDC also predicts that by 2028, the world will add over 1 billion apps.

Figma says it stands at a critical juncture in this wave of growth as a system of record for design and product development.

According to a new IDC study.Figma's current serviceable TAM is $33 billion.This estimate is based on its internal user data and IDC modeling research on the design-related workforce, which is expected to total 144 million by 2029. The estimate is based on its internal user data and IDC's modeling study of the design-related workforce, which is expected to total 144 million by 2029.

Figma emphasized that the widespread explosion of software means that companies increasingly need to build differentiation through design."Today, design and branding are more important than ever." Future technological advances will find their greatest release in "good design" through AI embedding and next-generation interface innovations such as true AI-native experiences.

Figma had more than 13 million monthly active users in the quarter ended March 31, 2025, of which approximately two-thirds were non-designers, according to the disclosure. Users on the platform co-conceive ideas, collaborate on explorations, build visions, visualize concepts, and turn designs into code products, all within a connected, AI-driven browser platform that is directly accessible to global collaborators via links.

Figma products are widely adopted because they support collaborative development from inspiration to release. The well-known Blue Lagoon team has also created a Design Agent, which allows users to generate product prototypes in a few seconds with a single sentence, and the ARR has already exceeded $5 million in 4 months.

As Figma explains, the platform focuses on the creation process across the full software lifecycle -- the Design is more than just a look or feel, it is a core competency that determines the brand's differentiation from Figma.Aesthetics are even more important in the age of AI.