Aug. 20 at 5:57 PM
Piper Sandler initiated coverage of Figma with an Overweight rating and
$85 PT, calling it a long-term growth story with a differentiated platform, strong margins, and global expansion potential. Analysts noted Figma’s browser-based collaboration model has displaced older tools from Adobe and others, with ARR nearing $ 1B just a decade after launch.
Piper sees ARR tripling to $ 3B+ by 2030, driven by AI features, international adoption, and converting free users to paid. Gross margin averaged 92% last year, with ~34% FCF margin. Upcoming packaging and pricing changes in March 2025 include a 20–33% price hike on paid seats.
The broker cautioned shares may remain volatile post-IPO; stock surged 250% on debut but has since pulled back well below highs.
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