SaaS Talk™ with the Metrics Brothers Figma S-1
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Jul 9, 2025 Figma's recent S-1 filing reveals impressive metrics like a Net Revenue Retention Rate of 132% and a Rule of 40 score of 79, outshining Palantir. The hosts delve into Figma's strategic shift to appeal to a broader audience beyond just designers. They dissect Adobe's failed $20 billion acquisition attempt, analyzing the benefits of Figma staying independent. Additionally, financial performance insights project Figma's valuation potential between $6 billion and $75 billion, exploring the influence of investors as they approach an IPO.
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Figma's Broad User Base
- Two thirds of Figma's 13 million monthly active users are non-designers, indicating broad organizational use beyond designers.
- They average 2.4 products per user, showing successful expansion across multiple personas in organizations.
Adobe Acquisition and Valuation
- Adobe offered $20 billion to acquire Figma in 2022, a 50x revenue multiple, but the deal fell through due to regulatory uncertainty.
- Adobe stock decline made a split cash-stock deal less attractive in hindsight for Figma.
Breaking up Benefited Figma
- Figma ended the Adobe deal due to unclear European regulatory approval and received a $1 billion breakup fee.
- The termination likely benefited Figma greatly, potentially creating $5-$8 billion of incremental value beyond the original offer.