Prospectus Summary
Overview
Figma is where teams come together to turn ideas into the world’s best digital products and experiences.
Every day, billions of people around the world use apps, websites, and other digital experiences that are made in Figma. They’re looking up directions on Google Maps; requesting rides with Uber; checking in for flights on JetBlue; streaming shows on Netflix; learning languages with Duolingo; asking questions of Claude; connecting on LinkedIn; buying goods on Mercado Libre; or booking stays and experiences with Airbnb.
Behind each of these products is a cross-functional team responsible for bringing them to life. In Figma, designers work alongside developers, product managers (“PMs”), researchers, marketers, writers, and other non-designers who, in the three months ended March 31, 2025, made up two-thirds of our more than 13 million monthly active users.1 Together, these teams share and explore ideas, align on a vision, visualize concepts, and translate them into coded products — all on a single, connected, AI-powered platform that collaborators around the world can access with a URL.
Our focus on the entire lifecycle of software creation reflects our ability to rapidly bring new products onto Figma’s browser-based platform and our belief that design spans far beyond a single step or role. We take this expansive view because design is more than how something looks, or even feels; design is also how something works — and in today’s increasingly digital-first world, what sets brands and companies apart.
As AI makes software much easier to create, and as organizations across industries and geographies continue to invest heavily in digital transformation, better-designed digital products and experiences have become even more critical to a company’s success. That’s why 95% of the Fortune 500 and 78% of the Forbes Global 2000 used Figma in March 2025. These companies understand deeply that great design is what attracts and wins user loyalty, especially in a world where a business’ interactions with its customers are increasingly digital.
(2) See the section titled “Management’s Discussion and Analysis of Financial Condition and Results of Operations” for information regarding (i) certain one-time events that impacted our operating results for the years ended December 31, 2023 and 2024, including the $1.0 billion termination fee we received in 2023 in connection with the Abandoned Merger with Adobe (as defined below) and $889.3 million of stock-based compensation expense, net of amounts capitalized, we recognized in 2024 in connection with the May 2024 RSU Release and the 2024 Stock Option Grants (each as defined below), (ii) our use of non- GAAP operating margin and a reconciliation of operating margin to non-GAAP operating margin, and (iii) our definition of Net Dollar Retention Rate.
Figma has been fortunate to play a part in, and benefit from, the growing global movement to elevate design and the craft of building software. Millions of people use Figma every week, often for hours a day, and as more users have come to our platform, our business has grown.
•Our revenue was $749.0 million for the year ended December 31, 2024, representing 48% year- over-year growth as compared to the year ended December 31, 2023, and our revenue was $228.2 million for the three months ended March 31, 2025, representing 46% year-over-year growth as compared to the three months ended March 31, 2024. Our four-year compounded annual revenue growth rate as of December 31, 2024 was 53%.
•For the year ended December 31, 2024 and for the three months ended March 31, 2025, we delivered an operating margin of (117)% and 17%, respectively, and a non-GAAP operating margin of 17% and 18%, respectively. Our 2024 operating margin was impacted by our May 2024 RSU Release and 2024 Stock Option Grant (each as defined below), one-time events.
•We had a Net Dollar Retention Rate (as defined below) of 134% and 132% as of December 31, 2024 and as of March 31, 2025, respectively.
•For the years ended December 31, 2023 and 2024, we had net income of $737.8 million and net loss of $732.1 million, respectively, and for the three months ended March 31, 2024 and 2025, we had net income of $13.5 million and $44.9 million, respectively. In addition to our May 2024 RSU Release and 2024 Stock Options Grant, we also received a $1.0 billion termination fee in 2023 in connection with the Abandoned Merger with Adobe (as defined below).2 While Figma began as a browser-based tool for designing user interfaces, our platform has expanded to help teams go from idea to product all in one place. We are quickly becoming the system of record for design and product development at a time when software is growing exponentially. We believe our pace of innovation, the breadth and flexibility of our platform, the strength of our team, the community relationships we have built, and the enduring power of design position us well for future growth.
From design silos to a new software standard Dylan Field and Evan Wallace started Figma in 2012, after they met as students at Brown University.
Back then, design looked very different than it does today. Designers worked by themselves in silos across multiple tools and products. Even if they wanted to design together or with others, technological constraints and the fragmented nature of the product development toolchain made collaboration a pain.
The most elegant solution to share work? Huge, manually annotated files sent around as email attachments with indecipherable names like “Draft_Final_V2_FINAL_v13.”
As part of a generation that found community in multiplayer, virtual worlds and grew up on Google Docs, Dylan and Evan saw an opportunity to bring design to the browser, and in doing so, make it more open and collaborative. After experimenting with a powerful technology called WebGL, which harnesses the power of a computer’s Graphics Processing Unit (“GPU”) to render high-performance graphics in the browser, and spending three years building, testing, and iterating with users, they launched Figma. It was the first design tool that combined the accessibility of the web with the functionality and performance of a native desktop app.
Not everyone was as excited as Dylan and Evan were about this new way of working. Despite the product benefits of a more open design process — seamless version control, real-time collaboration in the file, and the ability to access designs from any browser or computer anywhere in the world — designers raised concerns that more transparency and collaborators in the mix would lead to tighter deadlines, more micro management, and an implicit loss of control over their craft. One person even said that if Figma was the future of design, they were changing careers.
But as more designers and their teams started using Figma, they began to understand the benefits of designing together in the browser. It was more fun working collaboratively in the same file; it was also faster and more efficient to work in a single product that brought storage, asset creation, prototyping, and other parts of the design toolchain into one place. The ability to easily share work with a URL led people to bring collaborators into their files earlier, placing more emphasis on co-creation and less on the “big reveal.” It also led Figma to spread quickly within companies and design communities globally, while giving teams something they’d never had before: a single source of truth to access the most up-to-date designs.
Today, the openness and accessibility that Figma helped pioneer is no longer a novelty; it’s the expectation, a way of working that has spread across teams, tools, countries, and industries — and transformed the way products are designed and built.
From design tool to product development platform As Figma’s open and collaborative way of working pulled more people into the design process, we expanded to serve the many roles and steps involved in going from an idea to a product in users’ hands.
The early investments we made in our browser-based platform have enabled us to rapidly introduce and monetize new products.
•In 2021, we expanded our platform to serve earlier phases of the product development lifecycle with the launch of FigJam, an online whiteboard for teams to brainstorm and ideate together.
FigJam grew organically out of the unexpected ways our community was using our first product Figma Design to meet, connect, and brainstorm product ideas. We tailored FigJam to fit this use case, creating a more welcoming and lightweight space for designers and their collaborators to meet and brainstorm what to build together — using the core principles and primitives of Figma.
•In 2023, we released Dev Mode, a dedicated space in Figma that helps teams more efficiently translate design concepts into coded products. While Figma Design is built for more free-form design exploration, Dev Mode is tailored to the very specific and structured needs of developers, who, during the three months ended March 31, 2025, made up approximately 30% of our monthly active users. Dev Mode organizes information and surfaces data like design specifications and measurements in ways that are both useful and intuitive for developers. Building on years of updates in Figma Design to bridge the gap between design and code, Dev Mode is designed to improve cross-team communication and maximize efficiency at this crucial step in the product development process.
•In 2024, we launched Figma Slides, a product for designers and their collaborators to drive alignment through better-designed and more collaborative presentations. Figma Slides was born from an organic use case in which our users were creating millions of slide presentations in Figma Design. Seeing that pattern, a team of our employees drew up Figma Slides during our annual “Maker Week” hackathon. Figma Slides marries the visual fidelity of Figma Design with the playful interactivity of FigJam, making it easier for designers and non-designers to create powerful presentations in the same space.
•In 2025, we doubled our product portfolio with the launch of four new products: Figma Sites, Figma Make, Figma Buzz, and Figma Draw. Figma Sites is a product that lets you design a website and directly publish it to the web, with a custom URL. Figma Make is an AI-powered product that turns a prompt into a fully functional prototype. Figma Buzz is a product for easily creating social media assets, display ads, and other marketing materials at scale that are consistent with your brand or visual identity. And Figma Draw provides a dedicated space for finer vector editing required when drawing detailed iconography and product illustrations.
With the additions of these seven products over the last four years, Figma offers an increasingly end-to- end platform for teams to go from idea to shipped product. Over time, we’ve seen teams adopt our platform for more parts of their product development journey, as evidenced by the fact that 76% of Figma customers were using at least two of our products during the three months ended March 31, 2025.
AI has the power to accelerate the process of going from idea to product even further by helping users of all skill levels explore and iterate on ideas more quickly, while automating rote, repetitive tasks. Over the last few years, we’ve launched AI features that help users generate editable user interfaces with a simple prompt and rename layers in a design file or instantly summarize sticky notes from team meetings with a single click.
Figma Make is the most recent launch that shows the potential of AI to accelerate product development, as it helps users rapidly explore concepts by turning a conversational prompt — optionally augmented with an existing Figma design — into a working prototype within minutes. This and other Figma AI features currently rely on off-the-shelf foundational models, though we expect developments of our own models to accelerate over time as we continue to make significant investments in AI.
Our community has also contributed to the expansion of Figma’s platform in ways that increasingly position us at the center of design and product development workflows. They have created over 250,000 Community resources, including more than 10,000 plugins and widgets that allow users to customize their workspaces and speed up their workflows using Figma’s publicly-accessible application programming interfaces (“APIs”). With the help of our users and trusted partners, we have built a powerful, extensible ecosystem that keeps evolving to meet the diverse needs of a growing global community and contributes to our growth.
Through close community ties and a relentless focus on innovation and meeting user needs, Figma has grown to serve more people and parts of the process of helping teams turn ideas into shipped products and experiences.
The opportunity ahead In the 13 years since Figma’s founding, the amount of software in the world has exploded, and according to a Gartner® forecast, worldwide software spending is expected to exceed $1.2 trillion in 2025.
Meanwhile, generative AI has made digital products more ubiquitous and much easier to build, with International Data Corporation (“IDC”) estimating there will be more than 1 billion new apps in the world (3) Per IDC, “apps are defined here as logical applications which include solutions that are entirely made up of brand-new software but also solutions that leverage existing installed applications as providers of data, decision-making logic, and other services.”
(4) To estimate our market opportunity, we took IDC primary research-informed models of the global workforce population engaged in software design and then applied our internal pricing data to determine our total addressable market.
by 2028.3 As a platform that’s quickly becoming a system of record for design and product development, Figma is well positioned to benefit from this growth.
We believe that, in today’s world, design and a company’s brand matter more than ever. The explosion of software means that companies must increasingly vie for customer attention, and it is the well-crafted, thoughtfully-designed brands, products, and user experiences that will stand out from the rest. In addition, companies are still in the early phases of incorporating AI into their products. We expect to see so much innovation in the years to come around the design of new interfaces and interaction paradigms that are truly AI-native. Like the shifts to mobile and the cloud, we believe broader usage and adoption of new technologies will be fueled by great design.
We estimate that our total addressable market is $33 billion today across the “global workforce engaged in software design,” as identified by IDC. We calculate our total addressable market based on internal Figma data and the IDC Executive Spotlight sponsored by Figma, “Global Workforce Engaged in Software Design Expands to 144 Million by 2029.” We commissioned this IDC Executive Spotlight, which sizes the global number of participants involved in the product development process.4 Figma’s founding vision was to eliminate the gap between imagination and reality. Thirteen years later, the shift from a physical economy to a digital economy, huge advances in AI, and our own evolution from design tool to design and product development platform have combined to make this aspiration feel even more within reach today than it was when we started. This vision inspires us to think bigger about the role Figma can play in extending the power of design to more people, so that whoever you are, whatever you want to design, you’ll be able to make it in Figma.
Deep Dive: The product development process in Figma While our community has pushed Figma in all kinds of unexpected ways, our primary focus is to help teams turn ideas into software. We started out as a relatively small part of this larger job to be done, but Figma was always meant to be more than a tool for designing user interfaces.
We are a platform for design and product development. And while the workflow of creating software and other digital products and experiences can take many paths and forms, the process has traditionally involved the following key phases:
1.Ideate and Align. The team comes together to brainstorm different solutions to user problems and align on a path forward.
2.Visualize. Designers, PMs, and others bring life to these ideas by visualizing them at different levels of fidelity, which starts to give a sense of how the overall experience comes together.
3.Build. These ideas and visualizations are turned into code (most often by a developer) and made production-ready.
4.Ship. The product is launched, so it can end up in users’ hands, and marketed, so more users adopt it; this kicks off a continuous loop of learning, refinement, and improvement.
These phases have continued to shift as roles have blurred and advances in AI allow more people to participate in the process of creating digital products and experiences. We see this in our own research, which found that, as of May 2025, more than half of non-designers reported spending substantial time on (5) Data from a Figma survey of approximately 1,200 professionals working in digital product and marketing in the United States conducted from March through May 2025.
design-related work like visual exploration or mapping user flows.5 Over time, we’ve launched and successfully monetized new products that bring more parts of the overall design and product development process onto our platform.
Ideate and align with FigJam and Figma Slides In the early phases of product development, teams come together to brainstorm ideas and eventually align on potential paths forward. FigJam and Figma Slides are products we have built to facilitate these activities.
FigJam is our product tailored for ideation, brainstorming, and rapid communication of ideas. Designed for users of all skill levels, FigJam makes everything from personal projects to solo ideation to team meetings more engaging and fun. This is made possible by facilitation features like timers and voting, but also fun features that give participants more ways to express themselves, like ephemeral emoji reactions, a photo booth that lets you take a quick selfie, or the ability to give high-fives. We also offer rich diagramming capabilities to make it easy to convey more abstract ideas through user journeys or technical diagrams for engineering. In FigJam, users can also use AI to generate templates for group brainstorms and summarize meeting notes in seconds.
Figma Slides helps teams collaboratively make compelling, engaging presentations that drive and maintain alignment. What makes this product especially effective for product teams is the way it marries Figma’s powerful design features — such as the ability to embed prototypes, create high-fidelity animations, or make detailed edits to mock-ups directly in a slide — with strong real-time collaboration capabilities like seamless multiplayer editing and audience voting.
Often, these products are used side-by-side — what starts in a brainstorm in FigJam can lead to a pitch deck in Figma Slides. We aim to make the transition between these products easy with features like AI that can turn FigJam stickies into a Figma Slides presentation.
Visualize with Figma Design and Figma Draw As ideas become more concrete and teams align on a path forward, they move toward visualizing these ideas at a higher fidelity. Often, they draw mock-ups to explore directions more deeply, or build realistic prototypes to validate designs. Figma Design is where all of this happens.
Designers at this stage want the freedom to rapidly explore concepts and express their ideas fully without being constrained by the tools they’re using. This is why Figma Design offers a wide range of features that make it possible to visualize ideas with high fidelity, including typography features or vector editing capabilities that add texture and dimension to designs. In some cases, designers want to make more detailed, finer edits to key assets in their design, like icons and product illustrations. For these users, we’ve created Figma Draw, which is a dedicated space for vector editing within Figma Design.
To facilitate rapid exploration and iteration at this stage, these tools have a strong focus on ergonomics and efficiency. Our AI features are examples of this. By automating tedious, repetitive tasks like removing backgrounds from images or renaming layers in the design, or filling the mock-ups with realistic content to more closely resemble the final product that ends up in users’ hands (rather than lorem ipsum, for example). First Draft is an AI feature that allows users to go from blank canvas to editable user interfaces with a simple prompt.
As designs begin to solidify, designers also seek to add more structure to the design that better maps to the constraints and requirements of a production environment. Figma Design offers a rich set of “design systems” features in service of this: capabilities that allow teams to define flexible, reusable building blocks that make it easy for anyone to assemble a design without ever starting from scratch. We’ve found that teams are motivated to invest deeply in design systems, as their primary benefit is creating efficiency and consistency at scale. Teams save time by no longer needing to constantly worry about pixel-level details, and design systems help remove translation errors between designers and developers by sharing the same building blocks and language across design and code.
More often than not, though, a static visualization of an idea isn’t enough to validate a direction. That’s why users take advantage of Figma’s rich prototyping capabilities, which let users string together different screens into a dynamic, interactive flow. These prototypes are often circulated within an organization to socialize an idea or put in front of customers in user testing to validate a particular concept in a more realistic way.
Build with Dev Mode
Once the designs are ready, it’s time to translate them into code. Dev Mode is our dedicated space for developers where this translation occurs, built to streamline the back and forth between design and engineering and reduce the miscommunication that often happens during this step.
In Dev Mode, developers can inspect the designs to see key details most relevant to them, like special annotations left by designers, documentation about the components used, or what’s changed since they last saw the design.
Importantly, developers can choose to view these designs in the format they understand most: code. Dev Mode generates platform-specific, ready-to-use code from the designs that developers can directly copy;
teams can also connect their design systems to their codebase via Code Connect which helps ensure the code snippets developers see are correct, familiar, and production-ready.
Recently, we’ve also added our own Model Context Protocol (“MCP”) server to Dev Mode, which allows developers to connect an agent in their code editor directly to designs in Figma. Developers can ask the agent to inspect the design and use this context to convert it into working code in their codebase.