Figma, the design systems and prototyping startup firm listed via Initial Public Offering, IPO this Thursday on the New York Stock Exchange. Figma's stock price increased by an exceptional 300 % in its first day of trading compared to the IPO price.
This is the highest first day increase of a company going public raising more than 1 billion USDs in 30 years, according to Bloomberg. This might just be a precursor of an IPO technology boom driven by artificial intelligence, AI akin or even bigger than the IPO boom and subsequent bust in 1997 - 2001 or the dot com boom and bust otherwise called.
According to Figma's -S-1 IPO filing the web design firm reported revenue of 749.01 million USD with a loss of (732) million in 2024 compared to revenue of 504.9 million USD and profit of 737.8 million driven mainly by other, non operating income items.
On a rolling basis Figma's revenue is 821 million USDs with 18 % non-GAAP operating margin.
Figma's current market capitalization is 56 billion USD.
Figma's intrinsic valuation is 110 billion USDs according to Wolfteam Ltd.'s projections and estimates.
Wolfteam Ltd.'s projections reflect the assumption that Figma's revenue will continue to grow by close to the last 46 % trailing year on year revenue growth and Figma will achieve substantial, around 17 % net profit margin.
All in all, Figma's giant price rise on the first Initial Public Offering, IPO day bodes great for both Figma's prospects and could signal a new era of fast, hectic technology mergers and acquisitions deals and IPO deal activity that could rival or even surpass the dot com boom and bust. All this driven by artificial intelligence, AI.
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