Aenon
08-01

$Figma(FIG)$ 

🚀 IPO Overview

• Figma priced its debut at US $33/share on July 30, 2025, offering a total of ~36.94 million shares, raising around US $1.2 billion. 

• It began trading under the ticker FIG on the NYSE on July 31, 

• In its first trading session, shares surged over 200–250%, reaching above US $115–$117, driven by high demand and repricing of valuation, giving a market cap > US $57–68 billion at close.

Fundamental & Prospectus Highlights

• Revenue: US $749 million in FY 2024, up ~48% YoY; Q1 2025 revenue of US $228 million, +46% YoY.

• Profitability: Net loss in 2024 of US $732 million (mostly from stock-based comp) turning to a net income of US $44.9 million in Q1 2025.

• Margins: Very strong, with gross margin ~91% and operating margins ~18% in early 2025.

• Capital: Backers include Sequoia, Greylock, Index Ventures, Kleiner Perkins—Sequoia turned ~$150M into billions post‑IPO.

⸻

Technical / Momentum Analysis

• Huge first‑day pop: IPO at $33, trading opened ~ $85, closed above $115—tripling in value, reflecting strong market momentum and investor enthusiasm.

• Momentum narrative: Positioned as one of the hottest emerging SaaS IPOs; analysts suggest it may fuel further VC‑backed tech offerings (e.g. Canva, Netskope).

⸻

Macro Environment & User‑Base Strength

• Macro tailwinds: Sluggish tech IPO activity in prior years; Figma seen as a bellwether for revival of venture exits and tech IPO openings.

• User metrics: ~13 million monthly active users, nearly all Fortune 500 companies are clients (~95%).

• Network effects: Collaboration tools drive team-wide adoption; high switching costs reinforce stickiness and growth.

⸻

Value Investing / Intrinsic Valuation Lens

• Reddit / DCF-based estimate suggests a conservative intrinsic value of $3.3–3.5 billion ($18.5/share on ~585 million FD shares), arguing IPO pricing is rich with limited margin of safety.

• Key risks include intense AI competition (from Adobe, Microsoft, etc.), regulatory scrutiny, high expectations baked into current pricing, and potential deceleration of growth post-IPO.


Investment Perspective

• Fundamentals: Impressive growth, strong monetization, engaged user base—classic SaaS qualities.

• Momentum: Post-IPO trading strength is unmistakable—but may already reflect full potential.

• Long-term: If you’re a value‑focused investor, entry at $33–$35/share leaves little floor. Consider waiting for potential pullbacks. If you believe in Figma’s long-term AI‑driven expansion and wide moat, a small starter position may make sense, ideally near $50–60/share.

• Watch‑outs: AI competition, valuation cooling, lock‑up expiries, and general tech market sentiment shifts.

⸻

In conclusion

Figma’s IPO was a blockbuster debut event: pricing above range, strong growth fundamentals and user traction, and exceptional first-day momentum. But from a value‑oriented angle, the pricing may be aggressive relative to intrinsic estimates. Ultimately, investor strategy—growth‑oriented vs. value‑focused, long‑term conviction vs. timing entry—is key in framing whether FIG stock fits.


PS: Not financial Advise but will wait and see since it's already near 5x ipo price. DYOR🙏😎🫡🍀



 

ARK Loads Figma After 20% Plunge! Follow or Wait for IPO Pricing?
Figma surpassed revenue estimates but it faces huge lock-up expiry. Some investors have agreed to an extended lock-up expiration for 35% of their shares. EPS: Breakeven Revenue: $249.6 million vs. $248.8 million expected Net income totaled $846,000, compared with a loss of $827.9 million in the second quarter of 2024. The stock lost 20% after earnings. Ark Invest acquired 108,238 shares of Figma through ARKW. Total value of the trade amounted to $5.9 million. ------------ Is it a buy if it dips under $50? How do you view the extention? If Figma dips to $33 - IPO price, would you add?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • Porter Harry
    08-01
    Porter Harry
    Thanks for sharing! I think its price is a little high here.
    • Aenon: 
      Same here as well. Tons of room for retracement. And company like this… sooner or later will get ‘acquired’ by one of the mag 7
  • Reg Ford
    08-01
    Reg Ford
    5x IPO price? Hype over value. AI competition will crush this.
    • Aenon: 
      Agree. It actually shows Adobe is good value. Figma will become takeover target that’s all likely Microsoft coz it’s enterprise related. Just at what price…
  • Norton Rebecca
    08-01
    Norton Rebecca
    FIG’s momentum is fire.user growth + margins make this a long-term winner!
    • Aenon: 
      A tat Overvalue bruv like most things now for me. I think it has maxed its initial growth, but more other enterprises penetration for a company with enterprise access. Like Microsoft. If I am MS I will be tempted. Coz can link to teams and GitHub.
Leave a comment
6
1