$Figma(FIG)$ Why Figma (FIG) Could Be a Long-Term Winner Post-IPO

Figma’s much-anticipated IPO on July 31, 2025, marks a pivotal moment for the collaborative design platform, pricing its shares at $33 with a valuation soaring to $19.3 billion. This debut, following a remarkable 30x oversubscription, signals strong investor confidence and positions Figma as a potential standout in the tech IPO landscape. For those considering a long-term investment, here’s why Figma could be a stock to watch.

Robust Growth Trajectory

Figma’s financials paint an optimistic picture. The company reported $7.49 billion in revenue for 2024, a 48% year-over-year increase, with Q1 2025 bringing in $2.282 billion, up 46%. Despite a $7.321 billion net loss in 2024—largely due to a one-time equity compensation charge—Q1 2025 delivered a profit of $44.9 million. With a non-GAAP operating margin hovering around 17-18%, Figma demonstrates a solid path toward profitability. Its net dollar retention rate of 134% (2024) and 132% (Q1 2025) further underscores its ability to grow revenue from existing customers, a key indicator of long-term success.

Unmatched Market Position

Figma’s dominance in the design and collaboration space is unrivaled. With 95% of Fortune 500 companies and 78% of Forbes Global 2000 firms as clients, alongside 13 million monthly active users, the platform has become a staple for UI/UX design and team workflows. Its AI-driven tools, mentioned over 200 times in its S-1 filing, highlight a forward-looking strategy that could capitalize on the growing demand for intelligent design solutions. This broad adoption, coupled with a high gross margin of 91%, sets Figma apart from competitors like Adobe and Canva.

Strategic IPO Timing

The 30x oversubscription and price hike from $25-28 to $30-32, culminating at $33, reflect intense market enthusiasm. Raising $12.2 billion through the issuance of 37 million shares, Figma enters the public market with momentum. The canceled $20 billion Adobe acquisition in 2023, which netted a $1 billion breakup fee, allowed Figma to refine its independent growth strategy, potentially making it a more agile player in the tech space.

Long-Term Potential

While short-term volatility is expected post-IPO, Figma’s fundamentals suggest resilience. Its enterprise focus, with over 11,000 clients generating $100,000+ annually and 1,031 exceeding $1 million in Q1 2025, indicates a scalable business model. As AI integration deepens and remote collaboration remains a priority, Figma is well-positioned to capture more market share. Analysts see its leadership in design tools as a foundation for sustained growth, especially in an era where digital innovation drives business success.

Risks to Consider

No investment is without risks. Competition from established players and the need for continuous innovation could challenge Figma’s growth. Additionally, its high valuation may invite scrutiny if earnings don’t keep pace. However, these factors are outweighed by its proven track record and market traction.

Conclusion

Figma’s IPO is more than a market event—it’s a vote of confidence in a company reshaping how teams design and collaborate. With strong revenue growth, a loyal customer base, and a strategic AI focus, FIG stock offers compelling long-term potential. For investors willing to navigate initial volatility, Figma could be a rewarding addition to a diversified portfolio. Keep an eye on its post-IPO performance, but the signs point to a bright future.