onlycfo.io · 2025-07-02 · 337d

Figma S-1 | The IPO Bar is High

Figma's S-1 filing demonstrates exceptional SaaS metrics across growth (46% YoY), retention (132% NRR, 96% GRR), profitability (28% FCF margin, 91% gross margin), and capital efficiency (Rule of 40 score of 74), positioning it as the second-highest revenue multiple IPO candidate among cloud companies. The article highlights Figma's path from Adobe acquisition target at $20B to expected public valuation of $20B+, while noting durability concerns around expansion revenue dependency and pricing-driven growth.

12 metrics· Cited 0× in the knowledge base ·Open source ↗

Metrics in this report

Annual Recurring Revenue

913millions USD

Figma Q1 2025

Cash Position

1500millions USD

Figma with zero debt

Customer Acquisition Cost Payback Period

18months

top-decile

Figma

Free Cash Flow Margin

28percent

LTM

Figma, approaching top-quartile

Gross Margin

91percent

best-in-class

Figma

Gross Revenue Retention

96percent

best-in-class

Figma Q1 2025 (customers >$10K ARR, complete churn only)

IPO Valuation Multiple

25-35x NTM revenue

Figma expected IPO pricing range

Net Revenue Retention

132percent

best-in-class

Figma Q1 2025 among public cloud companies

Paid Customers with >$100K ARR

701count

Figma Q1 2025

Paid Customers with >$10K ARR

8007count

Figma Q1 2025

Revenue Growth Rate

46percent

YoY

Figma Q1 2025, second-highest among public cloud companies

Rule of 40 Score

74points

second-highest

Figma (46% growth + 28% FCF margin) among public cloud companies