Delaware | 7372 | 46-2843087 |
(State or other jurisdiction of incorporation or organization) | (Primary Standard Industrial Classification Code Number) | (I.R.S. Employer Identification Number) |
Michael T. Esquivel Ran D. Ben-Tzur Jennifer J. Hitchcock Aman D. Singh Chance L. Goldberg Fenwick & West LLP Silicon Valley Center 801 California Street Mountain View, California 94041 (650) 988-8500 | Brendan Mulligan Amanda Westendorf Brendan Brown Figma, Inc. 760 Market Street, Floor 10 San Francisco, California 94102 (415) 890-5404 | Richard A. Kline Richard Kim Latham & Watkins LLP 140 Scott Drive Menlo Park, California 94025 (650) 328-4600 |
Large accelerated filer ☐ | Accelerated filer ☐ |
Non-accelerated filer ☒ | Smaller reporting company ☐ |
Emerging growth company ☒ |
Class A Common Stock | Figma, Inc. |
Per Share | Total | ||
Initial public offering price ............................................................................................................................................................. | $ | $ | |
Underwriting discounts and commissions (1) ............................................................................................................................ | $ | $ | |
Proceeds, before expenses, to us .............................................................................................................................................. | $ | $ | |
Proceeds, before expenses, to selling stockholders ................................................................................................................ | $ | $ |
MORGAN STANLEY | GOLDMAN SACHS & CO. LLC | ALLEN & COMPANY LLC | J.P. MORGAN |
BOFA SECURITIES | WELLS FARGO SECURITIES | RBC CAPITAL MARKETS |
WILLIAM BLAIR | WOLFE | NOMURA ALLIANCE |
FOUNDER LETTER ............................................. | ii |
PROSPECTUS SUMMARY ................................ | |
RISK FACTORS ................................................... | |
LOOKING STATEMENTS ............................... | |
INDUSTRY AND MARKET DATA ..................... | |
USE OF PROCEEDS .......................................... | |
DIVIDEND POLICY .............................................. | |
CAPITALIZATION ................................................ | |
DILUTION .............................................................. | |
BUSINESS ............................................................. | |
MANAGEMENT .................................................... | |
EXECUTIVE COMPENSATION ......................... | |
PARTY TRANSACTIONS ............................... | |
STOCKHOLDERS ............................................ | |
DESCRIPTION OF CAPITAL STOCK .............. | |
SHARES ELIGIBLE FOR FUTURE SALE ....... | |
STOCK ............................................................... | |
INTEREST) ........................................................ | |
LEGAL MATTERS ................................................ | |
EXPERTS .............................................................. | |
INFORMATION ................................................. | |
STATEMENTS .................................................. |
Class A common stock offered by us ....... | shares. | |
Class A common stock offered by the selling stockholders ................................. | shares. | |
Underwriters’ over-allotment option to purchase shares of Class A common stock ........................................................... | The underwriters have the option for a period of 30 days from the date of this prospectus to purchase up to an additional shares of our Class A common stock from us to cover over-allotments, if any, at the initial public offering price less underwriting discounts and commissions. | |
Class A common stock to be outstanding after this offering ................ | shares (or shares if the underwriters exercise their over-allotment option in full). | |
Class B common stock to be outstanding after this offering ................ | shares. | |
Class C common stock to be outstanding after this offering ................ | None. | |
Total Class A, Class B, and Class C common stock to be outstanding after this offering ............................................... | shares (or shares if the underwriters exercise their over-allotment option in full). | |
Use of proceeds .......................................... | We estimate that the net proceeds from the sale of shares of our Class A common stock in this offering will be approximately $ (or approximately $ if the underwriters exercise their over-allotment option in full), based upon the assumed initial public offering price of $ per share, which is the midpoint of the offering price range set forth on the cover page of this prospectus, and after deducting estimated underwriting discounts and commissions and estimated offering expenses. The principal purposes of this offering are to create a public market for our Class A common stock, increase our visibility in the marketplace, increase our capitalization and financial flexibility, and facilitate an orderly distribution of shares for the selling stockholders. We intend to use a portion of the net proceeds from this offering to repay $ million of outstanding indebtedness under the Revolving Credit Facility (as defined below), which we intend to borrow in order to pay our anticipated tax withholding and remittance obligations related to the RSU Net Settlement (as defined below). We intend to use the remaining net proceeds from this offering for working capital and other general corporate purposes, which may include product development, general and administrative matters, and capital expenditures. We may also use a portion of the remaining net proceeds for the acquisition of, or investment in, technologies, solutions, or businesses that complement our business. However, we do not have agreements or commitments for any material acquisitions or investments at this time. See the section titled “Use of Proceeds” for additional information. We will not receive any proceeds from the sale of our Class A common stock in this offering by the selling stockholders. |
Conflicts of Interest ..................................... | Because an affiliate of each of Morgan Stanley & Co. LLC (“Morgan Stanley”), Goldman Sachs & Co. LLC (“Goldman Sachs”), J.P. Morgan Securities LLC (“J.P. Morgan”), BofA Securities, Inc. (“BofA Securities”), Wells Fargo Securities, LLC (“Wells Fargo Securities”), and RBC Capital Markets, LLC (“RBC Capital Markets”) is a lender under the Revolving Credit Facility and will receive 5% or more of the net proceeds of this offering due to the repayment of borrowings under the Revolving Credit Facility, Morgan Stanley, Goldman Sachs, J.P. Morgan, BofA Securities, Wells Fargo Securities, and RBC Capital Markets, each an underwriter in this offering, is deemed to have a “conflict of interest” under Rule 5121 (“Rule 5121”) of the Financial Industry Regulatory Authority, Inc. (“FINRA”). Accordingly, this offering will be conducted in compliance with the requirements of Rule 5121, which requires, among other things, that a “qualified independent underwriter” participate in the preparation of, and exercise the usual standards of “due diligence” with respect to, the registration statement and this prospectus. has agreed to act as a qualified independent underwriter for this offering and to undertake the legal responsibilities and liabilities of an underwriter under the Securities Act of 1933, as amended (the “Securities Act”), specifically including those inherent in Section 11 thereof. will not receive any additional fees for serving as a qualified independent underwriter in connection with this offering. We have agreed to indemnify against liabilities incurred in connection with acting as a qualified independent underwriter, including liabilities under the Securities Act. See the sections titled “Use of Proceeds” and “Underwriters (Conflicts of Interest)” for additional information. | |
Voting rights ................................................ | We have three series of common stock: Class A common stock, Class B common stock, and Class C common stock. Shares of our Class A common stock are entitled to one vote per share. Shares of our Class B common stock are entitled to 15 votes per share. Shares of our Class C common stock have no voting rights, except as otherwise required by law. Holders of our Class A common stock and Class B common stock will generally vote together as a single class, unless otherwise required by law or our restated certificate of incorporation that will become effective immediately prior to the completion of this offering. Each share of Class B common stock will be convertible into one share of our Class A common stock at any time and will convert automatically upon certain transfers and upon the Final Conversion Date (as defined below). Immediately following the completion of this offering, and assuming no exercise of the underwriters’ over-allotment option, Dylan Field, our Chair of our Board of Directors, Chief Executive Officer, and President will hold or have the ability to control approximately % of the voting power of our outstanding capital stock, including % of the voting power pursuant to the Wallace Proxy. As a result, following this offering, Mr. Field will have the ability to control the outcome of matters submitted to our stockholders for approval, including the election of our directors and the approval of any change of control transaction. These risks are more fully described in the section titled “Risk Factors.” See the sections titled “Principal and Selling Stockholders” and “Description of Capital Stock” for additional information. | |
Risk factors ................................................... | See the section titled “Risk Factors” and other information included in this prospectus for a discussion of some of the factors you should consider before deciding to purchase shares of our Class A common stock. | |
Proposed NYSE trading symbol ............... | “FIG” | |
Dividend policy ............................................. | We currently intend to retain all available funds and any future earnings for use in the operation of our business and do not anticipate paying any dividends on our capital stock in the foreseeable future. Any future determination to declare dividends will be made at the discretion of our Board of Directors and will depend, among other things, on our financial condition, operating results, capital requirements, general business conditions, restrictions in our debt instruments, and other factors that our Board of Directors may deem relevant. See the section titled “Dividend Policy” for additional information. |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands, except per share data) | |||||||
Consolidated Statements of Operations Data: | |||||||
Revenue ............................................................. | $504,874 | $749,011 | $156,229 | $228,199 | |||
Cost of revenue(1) ........................................ | 44,500 | 87,514 | 12,790 | 19,452 | |||
Gross profit ........................................................ | 460,374 | 661,497 | 143,439 | 208,747 | |||
Operating expenses(1) | |||||||
Research and development ....................... | 164,774 | 751,120 | 52,711 | 69,925 | |||
Sales and marketing ................................... | 201,377 | 472,076 | 55,334 | 68,840 | |||
General and administrative ........................ | 167,679 | 315,734 | 22,873 | 30,233 | |||
Total operating expenses ................................ | 533,830 | 1,538,930 | 130,918 | 168,998 | |||
Income (loss) from operations ........................ | (73,456) | (877,433) | 12,521 | 39,749 | |||
Other income, net ............................................. | 1,019,375 | 84,362 | 17,185 | 7,274 | |||
Income (loss) before income taxes ............... | 945,919 | (793,071) | 29,706 | 47,023 | |||
Provision for (benefit from) income taxes ..... | 208,078 | (60,951) | 16,181 | 2,141 | |||
Net income (loss) ............................................. | $737,841 | $(732,120) | $13,525 | $44,882 | |||
Less: net income attributable to participating securities ................................. | (451,982) | — | (13,525) | (36,271) | |||
Net income (loss) attributable to common stockholders ................................................... | $285,859 | $(732,120) | $— | $8,611 | |||
Net income (loss) per share, basic and diluted: | |||||||
Net income (loss) per share, basic(2) ............. | $1.70 | $(3.74) | $— | $0.04 | |||
Net income (loss) per share, diluted(2) .......... | $1.62 | $(3.74) | $— | $0.04 | |||
Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, basic ....................................... | 168,399 | 195,612 | 170,625 | 214,883 | |||
Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, diluted ..................................... | 187,207 | 195,612 | 170,625 | 231,076 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands) | |||||||
Cost of revenue ......................................... | $37 | $27,893 | $1 | $— | |||
Research and development .................... | 1,890 | 511,259 | 543 | 197 | |||
Sales and marketing ................................. | 253 | 206,830 | 11 | — | |||
General and administrative ...................... | 523 | 201,571 | 52 | — |
Year Ended December 31, 2024 | Three Months Ended March 31, 2025 | ||
(In thousands, except per share data) | (In thousands, except per share data) | ||
Numerator: | |||
Net income (loss) attributable to common stockholders .............................. | $(732,120) | $8,611 | |
Pro forma adjustment to record stock-based compensation expense related to RSUs for which the service-based and performance- based vesting conditions are expected to be satisfied in connection with this offering ................................................................... | |||
Pro forma net loss attributable to common stockholders ............................. | $ | $ | |
Denominator: | |||
Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, basic and diluted ............................................................................................................. | |||
Pro forma adjustment to reflect the Capital Stock Conversion .............. | |||
Pro forma adjustment to reflect the Option Exercise ............................... | |||
Pro forma adjustment to reflect the RSU Net Settlement ....................... | |||
Weighted-average shares outstanding used in computing pro forma net loss per share attributable to common stockholders, basic and diluted ......................................................................................................... | |||
Pro forma net loss per share, basic and diluted ............................................ | $ | $ |
As of March 31, 2025 | |||||
Actual | Pro Forma(1) | Pro Forma As Adjusted(2)(3) | |||
(In thousands) | |||||
Consolidated Balance Sheet Data: | |||||
Cash, cash equivalents, and marketable securities ............... | $1,541,805 | $ | $ | ||
Working capital(4) ......................................................................... | 1,230,092 | ||||
Total assets .................................................................................. | 1,914,755 | ||||
Deferred revenue ......................................................................... | 406,636 | ||||
Total debt ...................................................................................... | — | ||||
Total liabilities ............................................................................... | 544,391 | ||||
Convertible preferred stock ........................................................ | 329,441 | ||||
Additional paid-in capital ............................................................. | 1,186,815 | ||||
Accumulated deficit ..................................................................... | (148,028) | ||||
Total stockholders’ equity ........................................................... | 1,370,364 |
As of December 31, | As of March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
Paid Customers with more than $10,000 in ARR ................................................................. | 7,233 | 10,517 | 8,007 | 11,107 | |||
Paid Customers with more than $100,000 in ARR ............................................................ | 630 | 963 | 701 | 1,031 | |||
Net Dollar Retention Rate ............................... | 122% | 134% | 125% | 132% |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands, except percentages) | |||||||
Income (loss) from operations ........................ | $(73,456) | $(877,433) | $12,521 | $39,749 | |||
Non-GAAP operating income ......................... | $27,128 | $127,218 | $18,067 | $40,032 | |||
Operating margin .............................................. | (15)% | (117)% | 8% | 17% | |||
Non-GAAP operating margin .......................... | 5% | 17% | 12% | 18% | |||
Net cash provided by (used in) operating activities .......................................................... | $1,047,334 | $(61,717) | $(18,139) | $97,177 | |||
Net cash provided by (used in) investing activities .......................................................... | $(57,336) | $(784,257) | $(336,630) | $41,251 | |||
Net cash provided by financing activities ..... | $— | $62,450 | $40 | $339 | |||
Free Cash Flow ................................................ | $1,040,967 | $(68,218) | $(19,650) | $94,582 | |||
Adjusted Free Cash Flow ................................ | $91,809 | $181,261 | $48,472 | $94,582 | |||
Operating Cash Flow Margin ......................... | 207.4% | (8.2)% | (11.6)% | 42.6% | |||
Adjusted Free Cash Flow Margin .................. | 18.2% | 24.2% | 31.0% | 41.4% |
As of March 31, 2025 | |||||
Actual | Pro Forma | Pro Forma as Adjusted(1) | |||
(In thousands, except per share data) | |||||
Cash, cash equivalents, and marketable securities ............... | $1,541,805 | $ | $ | ||
Total debt ...................................................................................... | — | ||||
Total liabilities ............................................................................... | 544,391 | ||||
Stockholders’ equity: | |||||
Convertible preferred stock; $0.00001 par value per share; 247,861 shares authorized, 245,999 shares issued and outstanding, actual; no shares authorized, issued, and outstanding, pro forma and pro forma as adjusted ................................................................................ | 329,441 | ||||
Preferred stock; $0.00001 par value per share; no shares authorized, issued and outstanding, actual; 200,000 shares authorized, no shares issued and outstanding, pro forma and pro forma as adjusted ....... | — | ||||
Class A common stock; $0.00001 par value per share; 586,500 shares authorized, 124,313 shares issued and outstanding, actual; 10,000,000 shares authorized, shares issued and outstanding, pro forma; 10,000,000 shares authorized, shares issued and outstanding, pro forma as adjusted ............. | 1 | ||||
Class B common stock; $0.00001 par value per share; 118,956 shares authorized, 90,747 shares issued and outstanding, actual; 350,000 shares authorized, shares issued and outstanding, pro forma; 350,000 shares authorized, shares issued and outstanding, pro forma as adjusted ................................. | — | ||||
Class C common stock; $0.00001 par value per share; no shares authorized, issued and outstanding, actual; 1,000,000 shares authorized, no shares issued and outstanding, pro forma and pro forma as adjusted ....... | — | ||||
Additional paid-in capital ........................................................ | 1,186,815 | ||||
Accumulated other comprehensive income ...................... | 2,135 | ||||
Accumulated deficit ................................................................ | (148,028) | ||||
Total stockholders’ equity ................................................. | 1,370,364 | ||||
Total capitalization ........................................................ | $1,370,364 | $ | $ |
Assumed initial public offering price per share................................................... | $ | ||
Pro forma net tangible book value per share as of March 31, 2025 before giving effect to this offering ................................................................................ | |||
Increase in pro forma net tangible book value per share attributable to new investors purchasing Class A common stock in this offering ............... | |||
Pro forma as adjusted net tangible book value per share immediately after this offering ........................................................................................................... | |||
Dilution in pro forma as adjusted net tangible book value per share to new investors in this offering ...................................................................................... | $ |
Shares Purchased | Total Consideration | Average Price Per Share | |||||||
Number | Percent | Amount | Percent | ||||||
Existing stockholders ............ | % | % | $ | ||||||
New public investors ............. | |||||||||
Total ........................................ | 100% | 100% |
As of December 31, | As of March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
Paid Customers with more than $10,000 in ARR ................................................................. | 7,233 | 10,517 | 8,007 | 11,107 | |||
Paid Customers with more than $100,000 in ARR ............................................................ | 630 | 963 | 701 | 1,031 | |||
Net Dollar Retention Rate ............................... | 122% | 134% | 125% | 132% |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands, except percentages) | |||||||
Income (loss) from operations ............................ | $(73,456) | $(877,433) | $12,521 | $39,749 | |||
Plus: Stock-based compensation expense(1) ..... | 2,703 | 947,553 | 607 | 197 | |||
Plus: Amortization of stock-based compensation included in capitalized internal use software development costs ...................... | 28 | 186 | 7 | 86 | |||
Plus: Transaction costs and other related expenses associated with the Abandoned Merger with Adobe(2) .......................................... | 97,853 | 18,064 | 4,781 | — | |||
Plus: Employer payroll taxes related to the May 2024 RSU Release and 2024 Tender Offer ...................................................................... | — | 26,703 | — | — | |||
Plus: 2024 Tender Offer transaction costs(3) ...... | — | 12,145 | 151 | — | |||
Non-GAAP operating income .............................. | $27,128 | $127,218 | $18,067 | $40,032 | |||
Operating margin .................................................... | (15)% | (117)% | 8% | 17% | |||
Non-GAAP operating margin ............................... | 5% | 17% | 12% | 18% |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands, except percentages) | |||||||
Net cash provided by (used in) operating activities ................................................................ | $1,047,334 | $(61,717) | $(18,139) | $97,177 | |||
Less: Capital expenditures ............................ | (3,737) | (1,977) | (503) | (874) | |||
Less: Capitalized internal use software development costs .......................................... | (2,630) | (4,524) | (1,008) | (1,721) | |||
Free Cash Flow .................................................... | $1,040,967 | $(68,218) | $(19,650) | $94,582 | |||
Less: Termination fee received from the Abandoned Merger with Adobe .................... | (1,000,000) | — | — | — | |||
Add: Transaction costs and other related expenses associated with the Abandoned Merger with Adobe(1) ............. | 50,842 | 68,492 | 68,122 | — | |||
Add: Estimated income taxes related to the Abandoned Merger with Adobe(2) ............... | — | 180,987 | — | — | |||
Adjusted Free Cash Flow ................................... | $91,809 | $181,261 | $48,472 | $94,582 | |||
Net cash provided by (used in) investing activities ............................................................. | $(57,336) | $(784,257) | $(336,630) | $41,251 | |||
Net cash provided by financing activities ......... | $— | $62,450 | $40 | $339 | |||
Operating Cash Flow Margin(3) .......................... | 207% | (8)% | (12)% | 43% | |||
Adjusted Free Cash Flow Margin(4) ................... | 18% | 24% | 31% | 41% |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands) | |||||||
Revenue ............................................................. | $504,874 | $749,011 | $156,229 | $228,199 | |||
Cost of revenue(1) ........................................ | 44,500 | 87,514 | 12,790 | 19,452 | |||
Gross profit ........................................................ | 460,374 | 661,497 | 143,439 | 208,747 | |||
Operating expenses(1): | |||||||
Research and development ....................... | 164,774 | 751,120 | 52,711 | 69,925 | |||
Sales and marketing ................................... | 201,377 | 472,076 | 55,334 | 68,840 | |||
General and administrative ........................ | 167,679 | 315,734 | 22,873 | 30,233 | |||
Total operating expenses ................................ | 533,830 | 1,538,930 | 130,918 | 168,998 | |||
Income (loss) from operations ........................ | (73,456) | (877,433) | 12,521 | 39,749 | |||
Other income, net(2) .......................................... | 1,019,375 | 84,362 | 17,185 | 7,274 | |||
Income (loss) before income taxes ............... | 945,919 | (793,071) | 29,706 | 47,023 | |||
Provision for (benefit from) income taxes ..... | 208,078 | (60,951) | 16,181 | 2,141 | |||
Net income (loss) ............................................. | $737,841 | $(732,120) | $13,525 | $44,882 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands) | |||||||
Cost of revenue ......................................... | $37 | $27,893 | $1 | $— | |||
Research and development .................... | 1,890 | 511,259 | 543 | 197 | |||
Sales and marketing ................................. | 253 | 206,830 | 11 | — | |||
General and administrative ...................... | 523 | 201,571 | 52 | — |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(As a % of revenue(1)) | |||||||
Revenue ............................................................. | 100% | 100% | 100% | 100% | |||
Cost of revenue .......................................... | 9 | 12 | 8 | 9 | |||
Gross profit ........................................................ | 91 | 88 | 92 | 91 | |||
Operating expenses: | |||||||
Research and development ....................... | 33 | 100 | 34 | 31 | |||
Sales and marketing ................................... | 40 | 63 | 35 | 30 | |||
General and administrative ........................ | 33 | 42 | 15 | 13 | |||
Total operating expenses ................................ | 106 | 205 | 84 | 74 | |||
Income (loss) from operations ........................ | (15) | (117) | 8 | 17 | |||
Other income, net ............................................. | 202 | 11 | 11 | 3 | |||
Income (loss) before income taxes ............... | 187 | (106) | 19 | 21 | |||
Provision for (benefit from) income taxes ..... | 41 | (8) | 10 | 1 | |||
Net income (loss) ............................................. | 146% | (98)% | 9% | 20% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Revenue ............................................................. | $156,229 | $228,199 | $71,970 | 46% | |||
Cost of revenue ............................................... | 12,790 | 19,452 | 6,662 | 52% | |||
Gross profit ........................................................ | $143,439 | $208,747 | $65,308 | 46% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Research and development ............................ | $52,711 | $69,925 | $17,214 | 33% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Sales and marketing ........................................ | $55,334 | $68,840 | $13,506 | 24% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
General and administrative ............................. | $22,873 | $30,233 | $7,360 | 32% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Other income, net ............................................. | $17,185 | $7,274 | $(9,911) | (58)% |
Three Months Ended March 31, | |||||||
2024 | 2025 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Provision for income taxes .............................. | $16,181 | $2,141 | $(14,040) | (87)% |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Revenue ............................................................. | $504,874 | $749,011 | $244,137 | 48% | |||
Cost of revenue ............................................... | 44,500 | 87,514 | 43,014 | 97 | |||
Gross profit ........................................................ | $460,374 | $661,497 | $201,123 | 44 |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Research and development ............................ | $164,774 | $751,120 | $586,346 | 356% |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Sales and marketing ........................................ | $201,377 | $472,076 | $270,699 | 134% |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
General and administrative ............................. | $167,679 | $315,734 | $148,055 | 88% |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Other income, net ............................................. | $1,019,375 | $84,362 | $(935,013) | (92)% |
Year Ended December 31, | |||||||
2023 | 2024 | $ Change | % Change | ||||
(In thousands, except percentages) | |||||||
Provision for (benefit from) income taxes ..... | $208,078 | $(60,951) | $(269,029) | (129)% |
Three Months Ended | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
(In thousands) | |||||||||||||||||
Revenue ............................................... | $109,544 | $118,668 | $132,216 | $144,446 | $156,229 | $177,198 | $198,639 | $216,945 | $228,199 | ||||||||
Cost of revenue(1) ....................... | 9,125 | 10,187 | 11,887 | 13,301 | 12,790 | 39,558 | 18,703 | 16,463 | 19,452 | ||||||||
Gross profit .......................................... | 100,419 | 108,481 | 120,329 | 131,145 | 143,439 | 137,640 | 179,936 | 200,482 | 208,747 | ||||||||
Operating expenses(1): | |||||||||||||||||
Research and development ...... | 35,324 | 39,050 | 43,894 | 46,506 | 52,711 | 535,676 | 104,182 | 58,551 | 69,925 | ||||||||
Sales and marketing .................. | 39,547 | 66,602 | 43,240 | 51,988 | 55,334 | 276,246 | 79,290 | 61,206 | 68,840 | ||||||||
General and administrative ....... | 32,301 | 29,497 | 33,715 | 72,166 | 22,873 | 220,005 | 43,800 | 29,056 | 30,233 | ||||||||
Total operating expenses .................. | 107,172 | 135,149 | 120,849 | 170,660 | 130,918 | 1,031,927 | 227,272 | 148,813 | 168,998 | ||||||||
Income (loss) from operations .......... | (6,753) | (26,668) | (520) | (39,515) | 12,521 | (894,287) | (47,336) | 51,669 | 39,749 | ||||||||
Other income, net ............................... | 3,980 | 4,225 | 4,156 | 1,007,014 | 17,185 | 10,139 | 17,910 | 39,128 | 7,274 | ||||||||
Income (loss) before income taxes . | (2,773) | (22,443) | 3,636 | 967,499 | 29,706 | (884,148) | (29,426) | 90,797 | 47,023 | ||||||||
Provision for (benefit from) income taxes ............................................... | 2,079 | 818 | 2,384 | 202,797 | 16,181 | (56,294) | (13,828) | (7,010) | 2,141 | ||||||||
Net income (loss) ............................... | $(4,852) | $(23,261) | $1,252 | $764,702 | $13,525 | $(827,854) | $(15,598) | $97,807 | $44,882 |
Three Months Ended | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
(In thousands) | |||||||||||||||||
Cost of revenue ............... | $12 | $9 | $9 | $7 | $1 | $24,858 | $3,034 | $— | $— | ||||||||
Research and development ............... | 305 | 319 | 665 | 601 | 543 | 463,255 | 47,308 | 153 | 197 | ||||||||
Sales and marketing ....... | 86 | 57 | 71 | 39 | 11 | 186,659 | 20,160 | — | — | ||||||||
General and administrative ............. | 142 | 137 | 127 | 117 | 52 | 183,618 | 17,901 | — | — |
Three Months Ended(1) | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
(As a % of revenue) | |||||||||||||||||
Revenue ..................................... | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | 100% | ||||||||
Cost of revenue .................. | 8 | 9 | 9 | 9 | 8 | 22 | 9 | 8 | 9 | ||||||||
Gross profit ................................. | 92 | 91 | 91 | 91 | 92 | 78 | 91 | 92 | 91 | ||||||||
Operating expenses: | |||||||||||||||||
Research and development ................... | 32 | 33 | 33 | 32 | 34 | 302 | 52 | 27 | 31 | ||||||||
Sales and marketing .......... | 36 | 56 | 33 | 36 | 35 | 156 | 40 | 28 | 30 | ||||||||
General and administrative ................. | 29 | 25 | 25 | 50 | 15 | 124 | 22 | 13 | 13 | ||||||||
Total operating expenses ......... | 98 | 114 | 91 | 118 | 84 | 582 | 114 | 69 | 74 | ||||||||
Income (loss) from operations . | (6) | (22) | — | (27) | 8 | (505) | (24) | 24 | 17 | ||||||||
Other income, net ...................... | 4 | 4 | 3 | 697 | 11 | 6 | 9 | 18 | 3 | ||||||||
Income (loss) before income taxes ....................................... | (3) | (19) | 3 | 670 | 19 | (499) | (15) | 42 | 21 | ||||||||
Provision for (benefit from) income taxes ......................... | 2 | 1 | 2 | 140 | 10 | (32) | (7) | (3) | 1 | ||||||||
Net income (loss) ...................... | (4)% | (20)% | 1% | 529% | 9% | (467)% | (8)% | 45% | 20% |
As of | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
Paid Customers with more than $10,000 in ARR ..... | 5,945 | 6,365 | 6,727 | 7,233 | 8,007 | 9,071 | 9,762 | 10,517 | 11,107 | ||||||||
Paid Customers with more than $100,000 in ARR .. | 456 | 501 | 558 | 630 | 701 | 787 | 876 | 963 | 1,031 | ||||||||
Net Dollar Retention Rate ........................ | 159% | 143% | 131% | 122% | 125% | 130% | 131% | 134% | 132% |
Three Months Ended | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
(In thousands, except percentages) | |||||||||||||||||
Income (loss) from operations ....................... | $(6,753) | $(26,668) | $(520) | $(39,515) | $12,521 | $(894,287) | $(47,336) | $51,669 | $39,749 | ||||||||
Plus: Stock-based compensation expense(1) . | 545 | 522 | 872 | 764 | 607 | 858,390 | 88,403 | 153 | 197 | ||||||||
Plus: Amortization of stock-based compensation included in capitalized internal use software development costs .... | 6 | 7 | 7 | 8 | 7 | 9 | 88 | 82 | 86 | ||||||||
Plus: Transaction costs and other related expenses associated with the Abandoned Merger with Adobe(2) | 15,875 | 11,539 | 15,333 | 55,106 | 4,781 | 4,401 | 4,408 | 4,474 | — | ||||||||
Plus: Employer payroll taxes related to the May 2024 RSU Release and 2024 Tender Offer .............. | — | — | — | — | — | 24,983 | 1,720 | — | — | ||||||||
Plus: 2024 Tender Offer transaction costs(3) ............ | — | — | — | — | 151 | 11,384 | 577 | 33 | — | ||||||||
Non-GAAP operating income (loss) ................... | $9,673 | $(14,600) | $15,692 | $16,363 | $18,067 | $4,880 | $47,860 | $56,411 | $40,032 | ||||||||
Operating margin .................. | (6)% | (22)% | —% | (27)% | 8% | (505)% | (24)% | 24% | 17% | ||||||||
Non-GAAP operating margin ................................ | 9% | (12)% | 12% | 11% | 12% | 3% | 24% | 26% | 18% |
Three Months Ended | |||||||||||||||||
March 31, 2023 | June 30, 2023 | September 30, 2023 | December 31, 2023 | March 31, 2024 | June 30, 2024 | September 30, 2024 | December 31, 2024 | March 31, 2025 | |||||||||
(In thousands, except percentages) | |||||||||||||||||
Net cash provided by (used in) operating activities | $9,273 | $(5,899) | $25,774 | $1,018,186 | $(18,139) | $(178,243) | $61,574 | $73,091 | $97,177 | ||||||||
Less: Capital expenditures ... | (257) | (1,402) | (1,604) | (474) | (503) | (399) | (413) | (662) | (874) | ||||||||
Less: Capitalized internal use software development costs ................ | (648) | (748) | (375) | (859) | (1,008) | (1,170) | (742) | (1,604) | (1,721) | ||||||||
Free Cash Flow ........ | $8,368 | $(8,049) | $23,795 | $1,016,853 | $(19,650) | $(179,812) | $60,419 | $70,825 | $94,582 | ||||||||
Less: Termination fee received from the Abandoned Merger with Adobe .............. | — | — | — | (1,000,000) | — | — | — | — | — | ||||||||
Add: Transaction costs and other related expenses associated with the Abandoned Merger with Adobe(1) ........... | 6,439 | 16,073 | 8,920 | 19,410 | 68,122 | 322 | 34 | 14 | — | ||||||||
Add: Estimated income taxes related to the Abandoned Merger with Adobe(2) ........... | — | — | — | — | — | 185,617 | 518 | (5,148) | — | ||||||||
Adjusted Free Cash Flow ....................... | $14,807 | $8,024 | $32,715 | $36,263 | $48,472 | $6,127 | $60,971 | $65,691 | $94,582 | ||||||||
Net cash (used in) provided by investing activities ............... | $(53,706) | $3,015 | $(1,124) | $(5,521) | $(336,630) | $(173,216) | $(210,946) | $(63,465) | $41,251 | ||||||||
Net cash provided by (used in) financing activities ............... | $— | $(2) | $1 | $1 | $40 | $21,860 | $(20,660) | $61,210 | $339 | ||||||||
Operating Cash Flow Margin .................... | 9% | (5)% | 20% | 705% | (12)% | (101)% | 31% | 34% | 43% | ||||||||
Adjusted Free Cash Flow Margin ........... | 14% | 7% | 25% | 25% | 31% | 4% | 31% | 30% | 41% |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(In thousands) | |||||||
Net cash provided by (used in) operating activities .......................................................... | $1,047,334 | $(61,717) | $(18,139) | $97,177 | |||
Net cash provided by (used in) investing activities .......................................................... | (57,336) | (784,257) | (336,630) | 41,251 | |||
Net cash provided by financing activities .... | — | 62,450 | 40 | 339 | |||
Net increase (decrease) in cash, cash equivalents, and restricted cash ................ | $989,998 | $(783,524) | $(354,729) | $138,767 |
Payments due by Periods | |||||||||
Total | Less than 1 Year | 1- 3 Years | 3-5 Years | More than 5 Years | |||||
(In thousands) | |||||||||
Operating lease commitments ...................... | $92,770 | $12,862 | $41,678 | $16,208 | $22,022 | ||||
Cloud hosting commitments | 27,911 | 13,911 | 14,000 | — | — | ||||
Other commitments(1) ........... | 4,506 | 1,911 | 2,595 | — | — | ||||
Total ........................................ | $125,187 | $28,684 | $58,273 | $16,208 | $22,022 |
Name | Age | Position(s) | ||
Executive Officers: | ||||
Dylan Field ......................................... | 33 | Chair of our Board of Directors, Chief Executive Officer, and President | ||
Praveer Melwani ................................ | 35 | Chief Financial Officer and Treasurer | ||
Brendan Mulligan .............................. | 42 | General Counsel and Secretary | ||
Kris Rasmussen ................................ | 42 | Chief Technology Officer | ||
Shaunt Voskanian ............................. | 42 | Chief Revenue Officer | ||
Non-Employee Directors: | ||||
Mamoon Hamid(1)(2) ........................... | 47 | Director | ||
Kelly A. Kramer(1)(2) ........................... | 57 | Director | ||
John Lilly(1)(3)(4) ................................... | 54 | Director | ||
William R. McDermott ...................... | 63 | Director | ||
Andrew Reed(3) .................................. | 35 | Director | ||
Danny Rimer(2)(3) ................................ | 54 | Director | ||
Lynn Vojvodich Radakovich(1)(2) ...... | 57 | Director |
Name | Stock Awards ($) | Total | |||
Mamoon Hamid ...................................................................................................... | — | — | |||
Kelly A. Kramer ...................................................................................................... | — | (1) | — | ||
John Lilly ................................................................................................................. | — | — | |||
Andrew Reed .......................................................................................................... | — | — | |||
Danny Rimer ........................................................................................................... | — | — | |||
Lynn Vojvodich Radakovich ................................................................................. | — | (1) | — |
Name | Number of Shares Underlying RSUs | Number of Shares Underlying Options | ||||
Mamoon Hamid ...................................................................................................... | — | — | ||||
Kelly A. Kramer ...................................................................................................... | 69,638 | (1) | — | |||
John Lilly ................................................................................................................. | — | — | ||||
Andrew Reed .......................................................................................................... | — | — | ||||
Danny Rimer ........................................................................................................... | — | — | ||||
Lynn Vojvodich Radakovich ................................................................................. | 69,638 | (1) | 572,001 | (2) |
Stock Awards(1) | ||||||||||||||||||||||
Name and Principal Position | Fiscal Year | Salary ($) | Bonus ($)(2) | New Stock Awards ($) | Modification of Previously Granted Stock Awards in Connection with May 2024 RSU Release ($) | Option Awards ($)(3) | Non-Equity Incentive Plan Compensation ($) | All Other Compensation ($)(4) | Total per SEC Rules ($) | Total Excluding Amounts Relating to May 2024 RSU Release ($)(5) | ||||||||||||
Dylan Field Chief Executive Officer and President ........ | 2024 | 495,833 | 5,000,000 | — | 78,276,375 | 6,901,116 | — | 10,350 | 90,683,674 | 5,506,183 | ||||||||||||
2023 | 450,000 | — | — | N/A | — | — | 9,900 | 459,900 | 459,900 | |||||||||||||
Praveer Melwani Chief Financial Officer and Treasurer ........ | 2024 | 470,833 | 1,000,000 | — | (6) | 17,064,690 | 3,361,563 | — | 10,350 | 21,907,436 | 1,481,183 | |||||||||||
2023 | 425,000 | — | — | N/A | — | — | 9,900 | 434,900 | 434,900 | |||||||||||||
Shaunt Voskanian Chief Revenue Officer ............. | 2024 | 393,750 | 150,000 | — | (6) | 28,630,251 | 3,551,258 | 478,382 | (7) | 10,350 | 33,213,991 | 1,032,482 | ||||||||||
2023 | 325,000 | — | — | N/A | — | 295,550 | (7) | 9,900 | 630,450 | 630,450 |
Option Awards(1) | Stock Awards(1) | ||||||||||||||
Name | Vesting Commencement Date | Grant Date | Number of Securities Underlying Unexercised Options (#) Exercisable | Option Exercise Price($) | Option Expiration Date | Equity Incentive Plan Awards: Number of Unearned Shares, Units or Other Rights That Have Not Vested (#) | Equity Incentive Plan Awards: Market or Payout Value of Unearned Shares, Units or Other Rights That Have Not Vested ($)(2) | ||||||||
Dylan Field(3) ............. | 6/23/2021 | (4) | 10/27/2021 | 11,250,000 | |||||||||||
7/1/2021 | (5) | 10/27/2021 | 7,875,000 | ||||||||||||
8/22/2024 | (6) | 8/22/2024 | 811,896 | $23.19 | 08/21/2029 | ||||||||||
Praveer Melwani ...... | 2/1/2021 | (7) | 1/20/2021 | 5,391 | |||||||||||
3/1/2021 | (7) | 4/12/2021 | 41,667 | ||||||||||||
3/1/2022 | (7) | 3/2/2022 | 430,427 | ||||||||||||
12/1/2022 | (8) | 5/27/2022 | 191,736 | ||||||||||||
2/1/2024 | (8) | 2/5/2024 | 91,563 | ||||||||||||
8/22/2024 | (6) | 8/22/2024 | 395,478 | $23.19 | 08/21/2029 | ||||||||||
2/1/2025 | (7) | 12/29/2024 | 134,995 | ||||||||||||
2/1/2025 | (8) | 12/29/2024 | 332,294 | ||||||||||||
Shaunt Voskanian ... | 11/1/2021 | (9) | 10/27/2021 | 739,253 | |||||||||||
2/1/2024 | (8) | 2/5/2024 | 91,563 | ||||||||||||
8/22/2024 | (6) | 8/22/2024 | 417,795 | $23.19 | 08/21/2029 | ||||||||||
2/1/2025 | (8) | 12/29/2024 | 519,209 | ||||||||||||
2/1/2025 | (7) | 12/29/2024 | 311,526 |
Tranche | Public market capitalization targets(1) | Shares of Class B common stock vested | ||
1 | $15 billion | 1,875,000 | ||
2 | $20 billion | 3,750,000 | ||
3 | $25 billion | 5,625,000 | ||
11,250,000 |
Tranche | Stock Price Target (1) | Percentage of 2025 CEO Stock Price Award That Will Vest on Satisfaction of Stock Price Condition | ||
1 | $60 per share | 15% | ||
2 | $70 per share | 15% | ||
3 | $80 per share | 15% | ||
4 | $90 per share | 15% | ||
5 | $100 per share | 14.5% | ||
6 | $110 per share | 13.5% | ||
7 | $130 per share | 12% |
Stockholder | Shares of Class A Common Stock | Total Purchase Price | ||
Entities Affiliated with Kleiner Perkins(1) ............................................................. | 172,465 | $3,999,981 | ||
Entities Affiliated with Sequoia(2) ......................................................................... | 269,477 | $6,249,980 |
Stockholder | Shares of Class A Common Stock | Total Purchase Price | ||
Entities Affiliated with Kleiner Perkins(1) ............................................................................ | 1,121,028 | $26,000,002 | ||
Entities Affiliated with Sequoia(2) ........................................................................................ | 2,779,449 | $64,463,761 |
Stockholder | Shares of Common Stock | Total Sales Price | ||
Dylan Field(1) ......................................................................................................................... | 862,329 | $19,999,997 | ||
Praveer Melwani(2) ................................................................................................................ | 310,570 | $7,203,050 | ||
Brendan Mulligan(3) .............................................................................................................. | 220,675 | $5,118,115 | ||
Kris Rasmussen(4) ................................................................................................................ | 862,329 | $19,999,997 | ||
Shaunt Voskanian(5) ............................................................................................................. | 191,275 | $4,436,241 |
Shares Beneficially Owned Before this Offering Class A | Shares Beneficially Owned Before this Offering Class B | % Total Voting Power before this Offering | Number of Shares Being Offered | Shares Beneficially Owned After this Offering Class A | Shares Beneficially Owned After this Offering Class B | % Total Voting Power after this Offering | ||||||||||||||||
Name of Beneficial Owner | Shares | % | Shares | % | Shares | % | Shares | % | ||||||||||||||
Named Executive Officers and Directors: | ||||||||||||||||||||||
Dylan Field(1) ........................................ | — | — | 56,553,591 | 67.0% | 51.1% | |||||||||||||||||
Shares subject to voting proxy(2) ...................................... | 10,306 | * | 26,730,324 | 33.5% | 25.2% | |||||||||||||||||
Total ............................................... | 10,306 | * | 83,283,915 | 98.7% | 75.3% | |||||||||||||||||
Praveer Melwani(3) .............................. | 1,527,125 | * | — | — | * | |||||||||||||||||
Shaunt Voskanian(4) ........................... | 1,268,960 | * | — | — | * | |||||||||||||||||
Mamoon Hamid(5) ................................ | 55,120,394 | 14.0% | — | — | 3.5% | |||||||||||||||||
Kelly A. Kramer(6) ................................ | 56,346 | * | — | — | * | |||||||||||||||||
John Lilly(7) ........................................... | — | — | — | — | — | |||||||||||||||||
William R. McDermott ........................ | — | — | — | — | — | |||||||||||||||||
Andrew Reed(8) .................................... | 34,186,651 | 8.7% | — | — | 2.1% | |||||||||||||||||
Danny Rimer(9) .................................... | — | — | — | — | — | |||||||||||||||||
Lynn Vojvodich Radakovich(10) ......... | 628,347 | * | — | — | * | |||||||||||||||||
All executive officers and directors as a group (12 persons)(11) ........... | 98,625,022 | 25.0% | 83,283,915 | 98.7% | 81.2% | |||||||||||||||||
Other 5% or Greater Stockholders: | ||||||||||||||||||||||
Entities affiliated with Index Ventures(12) ..................................... | 65,865,525 | 16.8% | — | — | 4.1% | |||||||||||||||||
Entities affiliated with Greylock Partners(13) ...................................... | 61,495,120 | 15.7% | — | — | 3.9% | |||||||||||||||||
KPCB Holdings, Inc., as nominee(14) ...................................... | 55,120,394 | 14.0% | — | — | 3.5% | |||||||||||||||||
Entities affiliated with Sequoia Capital(15) ......................................... | 34,186,651 | 8.7% | — | — | 2.1% | |||||||||||||||||
Wu-Wallace Family Trust(16) .............. | — | — | 26,730,324 | 33.5% | 25.2% | |||||||||||||||||
Other Selling Stockholders | ||||||||||||||||||||||
All selling stockholders who beneficially own, in the aggregate, less than 1% of our common stock ................................ |
Earliest Date Available for Sale in the Public Market | Number of Shares of Common Stock |
The commencement of trading on the second trading day immediately following our public release of earnings for the first quarter following the most recent period for which financial statements are included in this prospectus; provided that the closing price of our Class A common stock on NYSE for at least five trading days in any ten consecutive trading day period, with at least one of such five trading days occurring after the Initial Post-Offering Earnings Release Date, is at least 25% greater than the initial public offering price per share set forth on the cover page of this prospectus. | Approximately shares. Includes shares held by our current employees and other service providers (excluding our directors and any officer within the meaning of Section 16 of the Exchange Act). Includes all available for sale shares described above. |
The earlier of (i) the commencement of trading on the second trading day immediately following our public release of earnings for the second quarter following the most recent period for which financial statements are included in this prospectus and (ii) the 180th day after the date of this prospectus. | All remaining shares held by our stockholders not previously eligible for sale, subject to volume limitations applicable to “affiliates” under Rule 144 as described below. |
Name | Number of Shares | |
Morgan Stanley & Co. LLC .............................................................................................................. | ||
Goldman Sachs & Co. LLC ............................................................................................................. | ||
Allen & Company LLC ...................................................................................................................... | ||
J.P. Morgan Securities LLC ............................................................................................................. | ||
BofA Securities, Inc. ......................................................................................................................... | ||
Wells Fargo Securities, LLC ............................................................................................................ | ||
RBC Capital Markets, LLC .............................................................................................................. | ||
William Blair & Company, L.L.C. .................................................................................................... | ||
Nomura Securities International, Inc. ............................................................................................. | ||
WR Securities, LLC .......................................................................................................................... | ||
Total ............................................................................................................................................. |
Total | |||||
Per Share | No Exercise | Full Exercise | |||
Public offering price ..................................................................... | $ | $ | $ | ||
Underwriting discounts and commissions to be paid by us .. | $ | $ | $ | ||
Underwriting discounts and commissions to be paid by the selling stockholders ................................................................. | $ | $ | $ | ||
Proceeds, before expenses, to us ............................................ | $ | $ | $ | ||
Proceeds, before expenses, to the selling stockholders ....... | $ | $ | $ |
Page | |
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM .................................... | |
CONSOLIDATED BALANCE SHEETS ...................................................................................................... | |
CONSOLIDATED STATEMENT OF OPERATIONS ................................................................................ | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) .................................... | |
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY ..................................................... | |
CONSOLIDATED STATEMENTS OF CASH FLOWS ............................................................................. | |
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .......................................................... |
As of December 31, | |||||
2023 | 2024 | As of March 31, 2025 | |||
(unaudited) | |||||
Assets | |||||
Current assets | |||||
Cash and cash equivalents ............................................................................ | $1,270,178 | $486,954 | $618,581 | ||
Marketable securities ...................................................................................... | 148,973 | 970,883 | 923,224 | ||
Accounts receivable, net ................................................................................ | 90,092 | 131,315 | 113,133 | ||
Prepaid expenses and other current assets ................................................ | 28,364 | 48,873 | 59,596 | ||
Total current assets ............................................................................................... | 1,537,607 | 1,638,025 | 1,714,534 | ||
Property and equipment, net ................................................................................ | 11,632 | 15,017 | 16,994 | ||
Intangible assets, net ............................................................................................ | 3,116 | 2,511 | 2,264 | ||
Goodwill ................................................................................................................... | 11,398 | 11,398 | 11,398 | ||
Operating lease right-of-use assets .................................................................... | 13,674 | 28,806 | 66,687 | ||
Restricted cash ...................................................................................................... | 3,931 | 3,631 | 9,799 | ||
Other assets ........................................................................................................... | 20,555 | 93,760 | 93,079 | ||
Total assets ............................................................................................................ | $1,601,913 | $1,793,148 | $1,914,755 | ||
Liabilities and stockholders’ equity | |||||
Accounts payable ............................................................................................ | $3,687 | $4,163 | $3,936 | ||
Accrued and other current liabilities .............................................................. | 268,329 | 31,119 | 39,780 | ||
Accrued compensation and benefits............................................................. | 6,948 | 19,377 | 22,880 | ||
Operating lease liabilities, current ................................................................. | 12,455 | 10,937 | 11,210 | ||
Deferred revenue ............................................................................................. | 253,635 | 381,363 | 406,636 | ||
Total current liabilities ........................................................................................... | 545,054 | 446,959 | 484,442 | ||
Operating lease liabilities, non-current ............................................................... | 2,141 | 17,833 | 55,572 | ||
Other non-current liabilities .................................................................................. | 11,572 | 4,303 | 4,377 | ||
Total liabilities ......................................................................................................... | 558,767 | 469,095 | 544,391 | ||
Commitments and contingencies (Note 8) | |||||
Stockholders’ equity: | |||||
Convertible preferred stock, $0.00001 par value per share; 247,861 shares authorized; 247,819, 245,999, and 245,999 shares issued and outstanding as of December 31, 2023 and 2024, and March 31, 2025 (unaudited), respectively .................................................................. | 332,185 | 329,441 | 329,441 | ||
Class A common stock, $0.00001 par value per share; 567,000, 571,000, and 586,500 shares authorized; 80,087, 124,159, and 124,313 shares issued and outstanding as of December 31, 2023 and 2024, and March 31, 2025 (unaudited), respectively .................... | — | 1 | 1 | ||
Class B common stock, $0.00001 par value per share; 118,956 shares authorized; 90,911, 90,747, and 90,747 shares issued and outstanding as of December 31, 2023 and 2024, and March 31, 2025 (unaudited), respectively .................................................................. | — | — | — | ||
Additional paid-in capital ................................................................................. | 170,628 | 1,186,207 | 1,186,815 | ||
Accumulated other comprehensive income ............................................... | 265 | 1,314 | 2,135 | ||
Retained earnings (accumulated deficit) ...................................................... | 540,068 | (192,910) | (148,028) | ||
Total stockholders’ equity .............................................................................. | 1,043,146 | 1,324,053 | 1,370,364 | ||
Total liabilities and stockholders’ equity ................................................... | $1,601,913 | $1,793,148 | $1,914,755 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Revenue ............................................................. | $504,874 | $749,011 | $156,229 | $228,199 | |||
Cost of revenue(1) ........................................ | 44,500 | 87,514 | 12,790 | 19,452 | |||
Gross profit ........................................................ | 460,374 | 661,497 | 143,439 | 208,747 | |||
Operating expenses(1): | |||||||
Research and development ....................... | 164,774 | 751,120 | 52,711 | 69,925 | |||
Sales and marketing ................................... | 201,377 | 472,076 | 55,334 | 68,840 | |||
General and administrative ........................ | 167,679 | 315,734 | 22,873 | 30,233 | |||
Total operating expenses ................................ | 533,830 | 1,538,930 | 130,918 | 168,998 | |||
Income (loss) from operations ........................ | (73,456) | (877,433) | 12,521 | 39,749 | |||
Other income, net ............................................. | 1,019,375 | 84,362 | 17,185 | 7,274 | |||
Income (loss) before income taxes ............... | 945,919 | (793,071) | 29,706 | 47,023 | |||
Provision for (benefit from) income taxes ..... | 208,078 | (60,951) | 16,181 | 2,141 | |||
Net income (loss) ............................................. | $737,841 | $(732,120) | $13,525 | $44,882 | |||
Less: net income attributable to participating securities ................................. | (451,982) | — | (13,525) | (36,271) | |||
Net income (loss) attributable to common stockholders ................................................... | $285,859 | $(732,120) | $— | $8,611 | |||
Net income (loss) per share, basic and diluted: | |||||||
Net income (loss) per share, basic ................ | $1.70 | $(3.74) | $— | $0.04 | |||
Net income (loss) per share, diluted ............. | $1.62 | $(3.74) | $— | $0.04 | |||
Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, basic ....................................... | 168,399 | 195,612 | 170,625 | 214,883 | |||
Weighted-average shares outstanding used in computing net income (loss) per share attributable to common stockholders, diluted ..................................... | 187,207 | 195,612 | 170,625 | 231,076 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Cost of revenue ................................................ | $37 | $27,893 | $1 | $— | |||
Research and development ............................ | 1,890 | 511,259 | 543 | 197 | |||
Sales and marketing ........................................ | 253 | 206,830 | 11 | — | |||
General and administrative .............................. | 523 | 201,571 | 52 | — |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Net income (loss) ............................................. | $737,841 | $(732,120) | $13,525 | $44,882 | |||
Other comprehensive income, net of tax: ... | |||||||
Change in unrealized gain on available- for-sale securities ..................................... | 706 | 1,049 | (624) | 821 | |||
Comprehensive income (loss) ........................ | $738,547 | $(731,071) | $12,901 | $45,703 |
Convertible preferred stock | Class A and Class B Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained earnings (accumulated deficit) | Total stockholders’ equity | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance at December 31, 2022 .............................. | 247,819 | $332,185 | 170,377 | $— | $151,809 | $(441) | $(197,421) | $286,132 | |||||||
Cumulative effect of adoption of ASC 326 .................. | — | — | — | — | — | — | (352) | (352) | |||||||
Exercise of stock options ............................................... | — | — | 7 | — | 2 | — | — | 2 | |||||||
Vesting of early exercised stock options ..................... | — | — | — | — | 1,131 | — | — | 1,131 | |||||||
Repurchases of common stock .................................... | — | — | (9) | — | — | — | — | — | |||||||
Stock issued in connection with acquisitions .............. | — | — | 623 | — | 14,887 | — | — | 14,887 | |||||||
Stock-based compensation ........................................... | — | — | — | — | 2,799 | — | — | 2,799 | |||||||
Other comprehensive income ....................................... | — | — | — | — | — | 706 | — | 706 | |||||||
Net income ....................................................................... | — | — | — | — | — | — | 737,841 | 737,841 | |||||||
Balance at December 31, 2023 .............................. | 247,819 | $332,185 | 170,998 | $— | $170,628 | $265 | $540,068 | $1,043,146 | |||||||
Exercise of stock options ............................................... | — | — | 5,116 | — | 2,394 | — | — | 2,394 | |||||||
Vesting of early exercised stock options ..................... | — | — | — | — | 139 | — | — | 139 | |||||||
Repurchases of common stock .................................... | — | — | (131) | — | (3) | — | (858) | (861) | |||||||
Stock-based compensation ........................................... | — | — | — | — | 950,427 | — | — | 950,427 | |||||||
Issuance of common stock upon the vesting of restricted stock units .................................................. | — | — | 34,614 | — | — | — | — | — | |||||||
Shares withheld for taxes upon the vesting of restricted stock units ................................................. | — | — | (18,067) | — | (419,032) | — | — | (419,032) | |||||||
Issuance of common stock to investors upon closing of RSU release primary financing .............. | — | — | 18,064 | 1 | 418,967 | — | — | 418,968 | |||||||
Conversion of convertible preferred stock to Class A common stock in connection with tender offer ... | (1,820) | (2,744) | 1,820 | — | 2,744 | — | — | — | |||||||
Proceeds from issuance of common stock, net of issuance costs ............................................................ | — | — | 2,492 | — | 59,943 | — | — | 59,943 | |||||||
Other comprehensive income ...................................... | — | — | — | — | — | 1,049 | — | 1,049 | |||||||
Net loss ............................................................................. | — | — | — | — | — | — | (732,120) | (732,120) | |||||||
Balance at December 31, 2024 .............................. | 245,999 | $329,441 | 214,906 | $1 | $1,186,207 | $1,314 | $(192,910) | $1,324,053 |
Convertible preferred stock | Class A and Class B Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained earnings (accumulated deficit) | Total stockholders’ equity | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance at December 31, 2023 ....................................... | 247,819 | $332,185 | 170,998 | $— | $170,628 | $265 | $540,068 | $1,043,146 | |||||||
Exercise of stock options (unaudited) .............................. | — | — | 137 | — | 40 | — | — | 40 | |||||||
Vesting of early exercised stock options (unaudited) ...... | — | — | — | — | 139 | — | — | 139 | |||||||
Stock-based compensation (unaudited) ............................ | — | — | — | — | 694 | — | — | 694 | |||||||
Other comprehensive loss (unaudited) ............................ | — | — | — | — | — | (624) | — | (624) | |||||||
Net income (unaudited) ....................................................... | — | — | — | — | — | — | 13,525 | 13,525 | |||||||
Balance at March 31, 2024 (unaudited) ........................ | 247,819 | $332,185 | 171,135 | $— | $171,501 | $(359) | $553,593 | $1,056,920 |
Convertible preferred stock | Class A and Class B Common stock | Additional paid-in capital | Accumulated other comprehensive (loss) income | Retained earnings (accumulated deficit) | Total stockholders’ equity | ||||||||||
Shares | Amount | Shares | Amount | ||||||||||||
Balance at December 31, 2024 ....................................... | 245,999 | $329,441 | 214,906 | $1 | $1,186,207 | $1,314 | $(192,910) | $1,324,053 | |||||||
Exercise of stock options (unaudited) .............................. | — | — | 154 | — | 339 | — | — | 339 | |||||||
Stock-based compensation (unaudited) ............................ | — | — | — | — | 281 | — | — | 281 | |||||||
Other (unaudited) .................................................................. | — | — | — | — | (12) | — | — | (12) | |||||||
Other comprehensive income (unaudited) ........................ | — | — | — | — | — | 821 | — | 821 | |||||||
Net income (unaudited) ....................................................... | — | — | — | — | — | — | 44,882 | 44,882 | |||||||
Balance at March 31, 2025 (unaudited) ........................ | 245,999 | $329,441 | 215,060 | $1 | $1,186,815 | $2,135 | $(148,028) | $1,370,364 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Cash flows from operating activities: | |||||||
Net income (loss) ...................................................... | $737,841 | $(732,120) | $13,525 | $44,882 | |||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||||||
Depreciation and amortization ........................... | 8,497 | 7,691 | 2,119 | 1,521 | |||
Non-cash operating lease costs ........................ | 12,432 | 14,130 | 3,235 | 4,105 | |||
Stock-based compensation, net of amounts capitalized ......................................................... | 2,703 | 947,553 | 607 | 197 | |||
Amortization of deferred commissions ............. | 8,666 | 14,820 | 2,921 | 4,706 | |||
Net accretion of discounts on available-for- sale securities ................................................... | (3,957) | (17,059) | (1,704) | (4,846) | |||
Unrealized (gains) losses on equity investments, net ............................................... | — | (24,177) | (312) | 8,266 | |||
Other non-cash adjustments .............................. | 148 | (2,590) | (1,000) | (186) | |||
Changes in assets and liabilities: | |||||||
Accounts receivable, net ............................... | (39,578) | (42,668) | 14,458 | 17,991 | |||
Prepaid expenses and other current assets ........................................................... | 450 | (20,567) | (23,592) | (9,164) | |||
Other assets .................................................... | (14,036) | (86,632) | (5,518) | (2,434) | |||
Accounts payable ........................................... | (2,673) | 525 | (2,203) | (883) | |||
Accrued and other current liabilities ............ | 232,489 | (252,530) | (42,802) | 4,386 | |||
Accrued compensation and benefits ........... | 695 | 11,447 | 4,577 | 3,289 | |||
Deferred revenue ........................................... | 92,086 | 127,728 | 15,764 | 25,273 | |||
Other non-current liabilities ........................... | 11,571 | (7,268) | 1,786 | 74 | |||
Net cash provided by (used in) operating activities ................................................................... | 1,047,334 | (61,717) | (18,139) | 97,177 | |||
Cash flows from investing activities: | |||||||
Purchase of intangible assets ............................ | (88) | (920) | (72) | — | |||
Capital expenditures ........................................... | (3,737) | (1,977) | (503) | (874) | |||
Capitalized internal-use software development costs ........................................... | (2,630) | (4,524) | (1,008) | (1,721) | |||
Purchases of marketable securities .................. | (223,869) | (1,323,305) | (377,212) | (238,805) | |||
Proceeds from maturities of marketable securities ........................................................... | 156,374 | 447,562 | 41,624 | 255,111 | |||
Proceeds from sale of marketable securities .. | 16,810 | 99,889 | 700 | 28,201 | |||
Other cash flows from investing activities ........ | (196) | (982) | (159) | (661) | |||
Net cash provided by (used in) investing activities ............................................................... | (57,336) | (784,257) | (336,630) | 41,251 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
Cash flows from financing activities: | |||||||
Repurchase of common stock ........................... | (2) | (861) | — | — | |||
Proceeds from options exercised ...................... | 2 | 2,394 | 40 | 339 | |||
Proceeds from issuance of common stock ...... | — | 60,000 | — | — | |||
Taxes paid related to net share settlement of restricted stock units ........................................... | — | (418,051) | — | — | |||
Proceeds from sale of common stock in connection with RSU release primary financing ............................................................ | — | 418,968 | — | — | |||
Net cash provided by financing activities ....... | — | 62,450 | 40 | 339 | |||
Change in cash, cash equivalents, and restricted cash ....................................................... | 989,998 | (783,524) | (354,729) | 138,767 | |||
Cash, cash equivalents, and restricted cash— beginning of year ................................................... | 284,111 | 1,274,109 | 1,274,109 | 490,585 | |||
Cash, cash equivalents, and restricted cash —end of year ....................................................... | $1,274,109 | $490,585 | $919,380 | $629,352 | |||
Reconciliation of cash, cash equivalents and restricted cash to the consolidated balance sheets: | |||||||
Cash and cash equivalents ..................................... | $1,270,178 | $486,954 | $915,749 | $618,581 | |||
Restricted cash .......................................................... | 3,931 | 3,631 | 3,631 | 10,771 | |||
Total cash, cash equivalents and restricted cash ........................................................................ | $1,274,109 | $490,585 | $919,380 | $629,352 | |||
Supplemental cash flow data: | |||||||
Cash paid during the period for: | |||||||
Cash paid for income taxes .......................... | $7,041 | $195,757 | $317 | $1,491 | |||
Non-cash investing and financing activities: | |||||||
Stock-based compensation included in capitalized internal-use software development costs .................................... | $96 | $2,874 | $86 | $85 | |||
Fair value of shares issued in connection with business combinations ..................... | $12,847 | $— | $— | $— | |||
Right-of-use assets obtained in exchange for lease liabilities ...................................... | $9,653 | $27,727 | $21,933 | $41,100 | |||
Unpaid deferred offering costs ..................... | $— | $— | $— | $587 |
Property and equipment | Useful life | |
Computer equipment | 3 years | |
Furniture and fixtures | 5 years | |
Leasehold improvements | Lesser of estimated useful life or remaining lease term |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Balance, beginning of period .......................... | $161,549 | $253,635 | $253,635 | $381,363 | |||
Billings and other(1) ........................................... | 596,960 | 876,739 | 171,993 | 253,472 | |||
Revenue ............................................................. | (504,874) | (749,011) | (156,229) | (228,199) | |||
Balance, end of period ..................................... | $253,635 | $381,363 | $269,399 | $406,636 |
As of December 31, 2023 | Amortized cost | Unrealized gains | Unrealized losses | Fair value | |||
Cash and cash equivalents: | |||||||
Cash .............................................................. | $1,175,840 | $— | $— | $1,175,840 | |||
Money market funds .................................... | 21,938 | — | — | 21,938 | |||
Commercial paper ....................................... | 71,854 | — | (31) | 71,823 | |||
Corporate bonds .......................................... | 577 | — | — | 577 | |||
Total cash and cash equivalents ................... | 1,270,209 | — | (31) | 1,270,178 | |||
Debt securities: | |||||||
U.S. agency securities ................................ | 50,761 | 171 | (38) | 50,894 | |||
U.S. treasury securities .............................. | 67,919 | 109 | (67) | 67,961 | |||
Commercial paper ....................................... | 12,096 | 8 | (2) | 12,102 | |||
Corporate bonds .......................................... | 17,932 | 91 | (7) | 18,016 | |||
Total debt securities ......................................... | 148,708 | 379 | (114) | 148,973 | |||
Total cash, cash equivalents, and marketable securities ................................... | $1,418,917 | $379 | $(145) | $1,419,151 |
As of December 31, 2024 | Amortized cost | Unrealized gains | Unrealized losses | Fair value | |||
Cash and cash equivalents: | |||||||
Cash .............................................................. | $398,910 | $— | $— | $398,910 | |||
Money market funds .................................... | 1,865 | — | — | 1,865 | |||
Commercial paper ....................................... | 86,184 | 2 | (7) | 86,179 | |||
Total cash and cash equivalents ................... | 486,959 | 2 | (7) | 486,954 | |||
Debt securities: | |||||||
U.S. agency securities ................................ | 100,793 | 285 | (18) | 101,060 | |||
U.S. treasury securities .............................. | 371,209 | 915 | (200) | 371,924 | |||
Commercial paper ....................................... | 190,072 | 93 | (10) | 190,155 | |||
Corporate bonds .......................................... | 228,706 | 555 | (308) | 228,953 | |||
Total debt securities ......................................... | 890,780 | 1,848 | (536) | 892,092 | |||
Total cash, cash equivalent, and debt securities ........................................................ | $1,377,739 | $1,850 | $(543) | $1,379,046 | |||
Other: | |||||||
Bitcoin exchange traded fund(1) ................. | 78,791 | ||||||
Total cash, cash equivalents, and marketable securities ................................... | $1,457,837 |
As of March 31, 2025 | Amortized cost | Unrealized gains | Unrealized losses | Fair value | |||
(unaudited) | |||||||
Cash and cash equivalents: | |||||||
Cash .............................................................. | $473,983 | $— | $— | $473,983 | |||
Money market funds .................................... | 5,690 | — | — | 5,690 | |||
Commercial paper ....................................... | 131,346 | — | (18) | 131,328 | |||
Corporate bonds .......................................... | 597 | — | — | 597 | |||
U.S. treasury securities .............................. | 6,983 | — | — | 6,983 | |||
Total cash and cash equivalents ................... | 618,599 | — | (18) | 618,581 | |||
Debt securities: | |||||||
U.S. agency securities ................................ | 96,205 | 270 | (11) | 96,464 | |||
U.S. treasury securities .............................. | 342,691 | 1,204 | (57) | 343,838 | |||
Commercial paper ....................................... | 158,215 | 27 | (13) | 158,229 | |||
Corporate bonds .......................................... | 254,482 | 775 | (97) | 255,160 | |||
Total debt securities ......................................... | 851,593 | 2,276 | (178) | 853,691 | |||
Total cash, cash equivalent, and debt securities ........................................................ | $1,470,192 | $2,276 | $(196) | $1,472,272 | |||
Other: | |||||||
Bitcoin exchange traded fund(1) ............... | 69,533 | ||||||
Total cash, cash equivalents, and marketable securities ................................... | $1,541,805 |
As of December 31, 2023 | |||
Amortized Cost | Fair Value | ||
Due in less than one year ...................................................................................... | $168,823 | $168,769 | |
Due in more than one year .................................................................................... | 52,316 | 52,604 | |
Total .......................................................................................................................... | $221,139 | $221,373 |
As of December 31, 2024 | |||
Amortized Cost | Fair Value | ||
Due in less than one year ...................................................................................... | $624,748 | $625,326 | |
Due in more than one year .................................................................................... | 352,216 | 352,945 | |
Total .......................................................................................................................... | $976,964 | $978,271 |
As of March 31, 2025 | |||
Amortized Cost | Fair Value | ||
(unaudited) | |||
Due in less than one year ...................................................................................... | $612,283 | $612,727 | |
Due in more than one year .................................................................................... | 378,236 | 379,872 | |
Total .......................................................................................................................... | $990,519 | $992,599 |
As of December 31, 2023 | |||||||||||
Less than twelve months | More than twelve months | Total | |||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||
U.S. agency securities ..................... | $29,993 | $(37) | $458 | $(1) | $30,451 | $(38) | |||||
U.S. treasury securities .................... | 18,989 | (67) | 349 | — | 19,338 | (67) | |||||
Commercial paper ............................ | 76,354 | (33) | — | — | 76,354 | (33) | |||||
Corporate bonds ............................... | 3,889 | (7) | — | — | 3,889 | (7) | |||||
Total .................................................. | $129,225 | $(144) | $807 | $(1) | $130,032 | $(145) |
As of December 31, 2024 | |||||||||||
Less than twelve months | More than twelve months | Total | |||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||
U.S. agency securities ..................... | $11,892 | $(18) | $— | $— | $11,892 | $(18) | |||||
U.S. treasury securities .................... | 68,843 | (195) | 7,527 | (5) | 76,370 | (200) | |||||
Commercial paper ............................ | 131,268 | (17) | — | — | 131,268 | (17) | |||||
Corporate bonds ............................... | 71,854 | (308) | — | — | 71,854 | (308) | |||||
Total .................................................. | $283,857 | $(538) | $7,527 | $(5) | $291,384 | $(543) |
As of March 31, 2025 | |||||||||||
Less than twelve months | More than twelve months | Total | |||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||
(unaudited) | |||||||||||
U.S. agency securities ..................... | $18,786 | $(11) | $— | $— | $18,786 | $(11) | |||||
U.S. treasury securities .................... | 62,222 | (57) | — | — | 62,222 | (57) | |||||
Commercial paper ............................ | 225,361 | (31) | — | — | 225,361 | (31) | |||||
Corporate bonds ............................... | 62,259 | (97) | — | — | 62,259 | (97) | |||||
Total .................................................. | $368,628 | $(196) | $— | $— | $368,628 | $(196) |
As of December 31, 2023 | Level 1 | Level 2 | Level 3 | Total | |||
Cash equivalents: | |||||||
Money market funds ............................................ | $21,938 | $— | $— | $21,938 | |||
Commercial paper ................................................ | — | 71,823 | — | 71,823 | |||
Corporate bonds .................................................. | — | 577 | — | 577 | |||
Total cash equivalents .................................... | $21,938 | $72,400 | $— | $94,338 | |||
Marketable securities: | |||||||
U.S. agency securities ........................................ | $— | $50,894 | $— | $50,894 | |||
U.S. treasury securities ....................................... | — | 67,961 | — | 67,961 | |||
Commercial paper ................................................ | — | 12,102 | — | 12,102 | |||
Corporate bonds .................................................. | — | 18,016 | — | 18,016 | |||
Total marketable securities ............................ | $— | $148,973 | $— | $148,973 |
As of December 31, 2024 | Level 1 | Level 2 | Level 3 | Total | |||
Cash equivalents: | |||||||
Money market funds ............................................ | $1,865 | $— | $— | $1,865 | |||
Commercial paper ................................................ | — | 86,179 | — | 86,179 | |||
Total cash equivalents ............................................. | $1,865 | $86,179 | $— | $88,044 | |||
Marketable securities: | |||||||
U.S. agency securities ........................................ | $— | $101,060 | $— | $101,060 | |||
U.S. treasury securities ....................................... | — | 371,924 | — | 371,924 | |||
Commercial paper ................................................ | — | 190,155 | — | 190,155 | |||
Corporate bonds .................................................. | — | 228,953 | — | 228,953 | |||
Bitcoin exchange traded fund ............................ | 78,791 | — | — | 78,791 | |||
Total marketable securities ............................ | $78,791 | $892,092 | $— | $970,883 |
As of March 31, 2025 | Level 1 | Level 2 | Level 3 | Total | |||
(unaudited) | |||||||
Cash equivalents: | |||||||
Money market funds ............................................ | $5,690 | $— | $— | $5,690 | |||
Commercial paper ................................................ | — | 131,328 | — | 131,328 | |||
Corporate bonds .................................................. | — | 597 | — | 597 | |||
U.S. treasury securities ....................................... | — | 6,983 | — | 6,983 | |||
Total cash equivalents ............................................. | $5,690 | $138,908 | $— | $144,598 | |||
Marketable securities: | |||||||
U.S. agency securities ........................................ | $— | $96,464 | $— | $96,464 | |||
U.S. treasury securities ....................................... | — | 343,838 | — | 343,838 | |||
Commercial paper ................................................ | — | 158,229 | — | 158,229 | |||
Corporate bonds .................................................. | — | 255,160 | — | 255,160 | |||
Bitcoin exchange traded fund ............................ | 69,533 | — | — | 69,533 | |||
Total marketable securities ............................ | $69,533 | $853,691 | $— | $923,224 |
As of December 31, | |||||
2023 | 2024 | As of March 31, 2025 | |||
(unaudited) | |||||
Computer equipment ................................................................... | $4,326 | $5,327 | $5,388 | ||
Furniture and fixtures .................................................................. | 6,097 | 5,752 | 6,056 | ||
Leasehold improvements ........................................................... | 5,196 | 5,272 | 5,431 | ||
Capitalized internal-use software development costs ........... | 6,565 | 11,755 | 13,774 | ||
Construction in progress ............................................................. | — | — | 65 | ||
Total property and equipment ............................................... | 22,184 | 28,106 | 30,714 | ||
Accumulated depreciation and amortization ........................... | (10,552) | (13,089) | (13,720) | ||
Property and equipment, net ..................................................... | $11,632 | $15,017 | $16,994 |
December 31, 2023 | |||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted- average remaining useful life | ||||
Assembled workforce in asset acquisitions . | $3,372 | $(2,525) | $847 | 0.6 | |||
Licenses, domain names and other .............. | 458 | (124) | 334 | 3.7 | |||
Developed technology ..................................... | 300 | (175) | 125 | 0.4 | |||
In-process technology ..................................... | 1,810 | — | 1,810 | ||||
Total intangible assets ................................ | $5,940 | $(2,824) | $3,116 |
December 31, 2024 | |||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted- average remaining useful life | ||||
Assembled workforce in asset acquisitions . | $725 | $(24) | $701 | 2.9 | |||
Licenses, domain names and other .............. | 474 | (170) | 304 | 2.2 | |||
Developed technology ..................................... | 1,810 | (304) | 1,506 | 2.5 | |||
Total intangible assets ................................ | $3,009 | $(498) | $2,511 |
Amount | |
(unaudited) | |
2025 ...................................................................................................................................................... | $999 |
2026 ...................................................................................................................................................... | 954 |
2027 ...................................................................................................................................................... | 558 |
Total .................................................................................................................................................... | $2,511 |
As of December 31, | |||
2023 | 2024 | ||
Balance, beginning ............................................................................................. | $807 | $11,398 | |
Additions during the period .................................................................................... | 10,591 | — | |
Balance, ending ................................................................................................... | $11,398 | $11,398 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Operating lease costs ...................................... | $12,612 | $14,405 | $3,454 | $3,859 | |||
Short-term lease costs ..................................... | 1,828 | 1,050 | 267 | 162 | |||
Variable lease costs ......................................... | 1,777 | 2,386 | 451 | 1,116 | |||
Total lease costs ............................................... | $16,217 | $17,841 | $4,172 | $5,137 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Supplemental Cash Flow Information: | |||||||
Cash paid for amounts included in the measurement of lease liabilities: | |||||||
Payments for operating leases included in cash from operating activities ............ | $13,677 | $15,088 | $3,971 | $3,974 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Weighted-Average Remaining Lease Term (in years) ........................................................ | 1.10 | 3.13 | 3.85 | 6.42 | |||
Weighted-Average Discount Rate ................. | 6.22% | 6.29% | 6.22% | 5.84% |
Year ending December 31, | Amount |
(unaudited) | |
2025 ...................................................................................................................................................... | $12,862 |
2026 ...................................................................................................................................................... | 14,072 |
2027 ...................................................................................................................................................... | 13,974 |
2028 ...................................................................................................................................................... | 13,632 |
2029 ...................................................................................................................................................... | 8,014 |
Thereafter ............................................................................................................................................ | 30,216 |
Total undiscounted future minimum lease payments ................................................................... | 92,770 |
Less: present value discount ....................................................................................................... | (17,929) |
Total discounted future minimum lease payments ....................................................................... | 74,841 |
Less: prepaid rent .......................................................................................................................... | (919) |
Less: tenant improvement allowances ....................................................................................... | (7,140) |
Total operating lease liabilities ......................................................................................................... | $66,782 |
As of December 31, | |||||
2023 | 2024 | As of March 31, 2025 | |||
(unaudited) | |||||
Non-income based taxes payable ............................................. | $11,486 | $9,562 | $9,994 | ||
Income taxes payable(1) .............................................................. | 190,713 | 511 | 939 | ||
Customer deposits ....................................................................... | 7,857 | 4,507 | 6,776 | ||
Accrued consulting fees related to Abandoned Adobe Merger(2) .................................................................................... | 40,000 | — | — | ||
Other current liabilities ................................................................ | 18,273 | 16,539 | 22,071 | ||
Total accrued and other current liabilities ................................ | $268,329 | $31,119 | $39,780 |
Shares authorized | Shares issued and outstanding | Original issue price per shares | Liquidation preference | Net carrying value | |||||
Series Seed ......................... | 45,569 | 44,309 | $0.0878 | $3,889 | $3,845 | ||||
Series A ................................ | 70,262 | 69,812 | $0.1993 | 13,910 | 13,852 | ||||
Series B ................................ | 75,378 | 75,365 | $0.3317 | 24,995 | 24,897 | ||||
Series C ................................ | 36,435 | 36,435 | $1.0978 | 40,000 | 39,884 | ||||
Series D ................................ | 10,826 | 10,801 | $4.6185 | 49,883 | 49,692 | ||||
Series E ................................ | 9,391 | 9,277 | $21.2967 | 197,574 | 197,271 | ||||
Total ...................................... | 247,861 | 245,999 | $330,251 | $329,441 |
December 31, 2024 | March 31, 2025 | ||
(unaudited) | |||
Convertible preferred stock ................................................................................... | 245,999 | 245,999 | |
RSUs (including CEO Equity Awards) outstanding ........................................... | 73,951 | 77,864 | |
Stock options outstanding ..................................................................................... | 24,023 | 23,869 | |
Common stock warrants ....................................................................................... | 261 | 261 | |
Remaining shares authorized for future issuance ............................................. | 2,864 | 15,454 | |
Total .................................................................................................................... | 347,098 | 363,447 |
Year Ended | |
December 31, 2024 | |
Cost of revenue .................................................................................................................................. | $24,858 |
Research and development .............................................................................................................. | 462,683 |
Sales and marketing .......................................................................................................................... | 186,659 |
General and administrative ............................................................................................................... | 183,618 |
Total ...................................................................................................................................................... | $857,818 |
Year Ended | |
December 31, 2024 | |
Cost of revenue .................................................................................................................................. | $3,034 |
Research and development .............................................................................................................. | 47,024 |
Sales and marketing .......................................................................................................................... | 20,160 |
General and administrative ............................................................................................................... | 17,901 |
Total ...................................................................................................................................................... | $88,119 |
Year Ended | |
December 31, 2024 | |
Expected term ..................................................................................................................................... | 2.5 years |
Expected volatility .............................................................................................................................. | 54.61% |
Risk free interest rate ........................................................................................................................ | 3.87% |
Dividend yield ...................................................................................................................................... | —% |
Fair value of common stock on grant date ..................................................................................... | $23.19 |
Number of stock options outstanding under the 2012 Plan | Weighted- average exercise price per share | Weighted- average remaining contractual term (in years) | Aggregate intrinsic value | ||||
Outstanding as of December 31, 2022 .......... | 18,760 | $0.19 | 6.2 | $711,477 | |||
Options granted ................................................. | — | — | |||||
Options exercised .............................................. | (7) | 0.31 | |||||
Options forfeited ................................................ | (101) | 0.30 | |||||
Outstanding as of December 31, 2023 .......... | 18,652 | $0.19 | 5.2 | $428,955 | |||
Options granted ................................................. | 10,490 | 23.19 | |||||
Options exercised .............................................. | (5,116) | 0.47 | |||||
Options forfeited ................................................ | (3) | 0.34 | |||||
Outstanding as of December 31, 2024 .......... | 24,023 | $10.18 | 4.4 | $333,861 | |||
Options granted (unaudited) ............................ | — | — | |||||
Options exercised (unaudited) ........................ | (154) | 2.21 | |||||
Options forfeited (unaudited) ........................... | — | — | |||||
Outstanding as of March 31, 2025 (unaudited) ...................................................... | 23,869 | $10.23 | 4.1 | $349,725 | |||
Vested and exercisable as of March 31, 2025 (unaudited) ............................................ | 23,869 | $10.23 | 4.1 | $349,725 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Intrinsic value of options exercised ............... | $290 | $111,789 | $1,729 | $3,478 | |||
Total fair value of options vested ................... | $1,676 | $89,759 | $170 | $— |
Number of RSUs outstanding under the 2012 plan | Weighted- average grant date fair value per share | ||
Unvested at December 31, 2022 .......................................................................... | 44,506 | $13.42 | |
RSUs granted .......................................................................................................... | 11,308 | $23.19 | |
RSUs released ........................................................................................................ | — | $— | |
RSUs forfeited ......................................................................................................... | (3,059) | $13.81 | |
Unvested at December 31, 2023 .......................................................................... | 52,755 | $12.96 | |
RSUs granted .......................................................................................................... | 38,012 | $25.33 | |
RSUs released(1) ..................................................................................................... | (31,239) | $23.19 | |
RSUs forfeited ......................................................................................................... | (4,702) | $20.93 | |
Unvested at December 31, 2024 .......................................................................... | 54,826 | $22.80 | |
RSUs granted (unaudited) .................................................................................... | 5,236 | $32.58 | |
RSUs released (unaudited) ................................................................................... | — | $— | |
RSUs forfeited (unaudited) .................................................................................... | (1,323) | $23.93 | |
Unvested at March 31, 2025 (unaudited) .......................................................... | 58,739 | $23.64 |
Tranche | Public market capitalization targets | Shares of Class B common stock vested (thousands) | ||
1 | $15 billion | 1,875 | ||
2 | $20 billion | 3,750 | ||
3 | $25 billion | 5,625 | ||
11,250 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Basic net income per share: | |||||||
Numerator: | |||||||
Net income (loss) attributable to common stockholders ............................. | $285,859 | $(732,120) | $— | $8,611 | |||
Denominator: | |||||||
Weighted-average shares outstanding used in computing net income (loss) per share, basic ........................................ | 168,399 | 195,612 | 170,625 | 214,883 | |||
Net income (loss) per share, basic ................ | $1.70 | $(3.74) | $— | $0.04 | |||
Diluted net income per share: | |||||||
Numerator: | |||||||
Net income (loss) attributable to common stockholders ............................. | $285,859 | $(732,120) | $— | $8,611 | |||
Reallocation of net income to common stockholders considering potentially dilutive securities .............. | 18,274 | — | — | 334 | |||
Net income (loss) attributable to common stockholders considering potentially dilutive securities ................... | $304,133 | $(732,120) | $— | $8,945 | |||
Denominator: | |||||||
Weighted-average shares outstanding used in computing net income (loss) per share, basic ........................................ | 168,399 | 195,612 | 170,625 | 214,883 | |||
Effect of dilutive securities: | |||||||
Stock options ........................................... | 18,548 | — | — | 15,933 | |||
Warrants ................................................... | 260 | — | — | 260 | |||
Weighted-average shares outstanding used in computing net income (loss) per share, diluted ..................................... | 187,207 | 195,612 | 170,625 | 231,076 | |||
Net income (loss) per share, diluted ............. | $1.62 | $(3.74) | $— | $0.04 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
RSUs .................................................................. | 47,589 | 49,748 | 62,604 | 55,313 | |||
Unvested RSAs ................................................ | — | 262 | 460 | 84 | |||
CEO Equity Award(1) ....................................... | 22,500 | 20,679 | 22,500 | 19,937 | |||
Convertible preferred stock(2) ......................... | — | 246,993 | 247,819 | — | |||
Stock options ..................................................... | — | 19,823 | 18,627 | — | |||
Warrants ............................................................ | — | 261 | 261 | — | |||
Total .................................................................... | 70,089 | 337,766 | 352,271 | 75,334 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
Interest income ................................................. | $19,853 | $63,701 | $17,831 | $15,528 | |||
Unrealized gains (losses) on equity securities ........................................................ | — | 23,766 | 312 | (8,266) | |||
Other income(1) ................................................. | 1,000,036 | — | — | — | |||
Other expense, net ........................................... | (514) | (3,105) | (958) | 12 | |||
Total other income, net .................................... | $1,019,375 | $84,362 | $17,185 | $7,274 |
Year Ended December 31, | |||
2023 | 2024 | ||
United States ........................................................................................................... | $942,722 | $(801,821) | |
Foreign ...................................................................................................................... | 3,197 | 8,750 | |
Income (loss) before income taxes ...................................................................... | $945,919 | $(793,071) |
Year Ended December 31, | |||
2023 | 2024 | ||
Current: | |||
Federal ................................................................................................................. | $186,475 | $(57,990) | |
State ..................................................................................................................... | 20,759 | (4,322) | |
Foreign ................................................................................................................. | 844 | 2,531 | |
Total .......................................................................................................................... | $208,078 | $(59,781) | |
Deferred: | |||
Federal ................................................................................................................. | $— | $— | |
State ..................................................................................................................... | — | — | |
Foreign ................................................................................................................. | — | (1,170) | |
Total .......................................................................................................................... | — | (1,170) | |
Provision for (benefit from) income taxes ........................................................... | $208,078 | $(60,951) |
Year Ended December 31, | |||
2023 | 2024 | ||
Expected tax provision at statutory income tax rate .......................................... | 21.0% | 21.0% | |
Research & development credits ......................................................................... | (1.3)% | 7.4% | |
Stock-based compensation ................................................................................... | —% | (0.1)% | |
State taxes ............................................................................................................... | 2.1% | 6.0% | |
Foreign rate differential .......................................................................................... | —% | 0.1% | |
Transaction costs .................................................................................................... | (0.2)% | —% | |
US taxation on foreign operations ........................................................................ | (0.6)% | —% | |
Other ......................................................................................................................... | 0.1% | (0.3)% | |
Change in valuation allowance ............................................................................. | 0.9% | (26.4)% | |
Provision for income taxes .................................................................................... | 22.0% | 7.7% |
Year Ended December 31, | |||
2023 | 2024 | ||
Deferred tax assets: | |||
Operating lease liabilities .................................................................................. | $2,185 | $6,129 | |
Stock based compensation .............................................................................. | 1,184 | 16,264 | |
Net operating loss carryforwards ..................................................................... | 549 | 49,484 | |
Research and development tax credits .......................................................... | — | 17,354 | |
Capitalized research expenditures .................................................................. | 43,666 | 179,787 | |
Other timing differences .................................................................................... | 867 | 2,286 | |
Gross deferred tax assets ..................................................................................... | 48,451 | 271,304 | |
Valuation allowance ........................................................................................... | (41,950) | (251,172) | |
Total deferred tax assets, net of valuation allowance .................................. | 6,501 | 20,132 | |
Deferred tax liabilities: | |||
Operating lease right-of-use assets ................................................................ | (1,984) | (6,095) | |
Capitalized expenses ........................................................................................ | (3,850) | (6,962) | |
Other .................................................................................................................... | (667) | (5,904) | |
Total deferred tax liability .................................................................................. | (6,501) | (18,961) | |
Net deferred tax assets .......................................................................................... | $— | $1,171 |
Year Ended December 31, | |||
2023 | 2024 | ||
Balance at beginning of year................................................................................. | $11,909 | $12,401 | |
Additions based on tax positions related to the current year ........................... | 5,052 | 32,804 | |
Reductions for tax positions of prior years .......................................................... | (4,560) | (10) | |
Balance at end of year ........................................................................................... | $12,401 | $45,195 |
Three Months Ended March 31, | |||
2024 | 2025 | ||
(unaudited) | |||
Effective tax rate ..................................................................................................... | 54.1% | 4.6% |
As of December 31, | |||||
2023 | 2024 | As of March 31, 2025 | |||
(unaudited) | |||||
United States ................................................................................ | $19,015 | $39,606 | $77,366 | ||
International .................................................................................. | 6,291 | 4,217 | 6,315 | ||
Total ............................................................................................... | $25,306 | $43,823 | $83,681 |
Year Ended December 31, | Three Months Ended March 31, | ||||||
2023 | 2024 | 2024 | 2025 | ||||
(unaudited) | |||||||
United States ..................................................... | $252,289 | $359,406 | $76,589 | $107,463 | |||
International ....................................................... | 252,585 | 389,605 | 79,640 | 120,736 | |||
Total .................................................................... | $504,874 | $749,011 | $156,229 | $228,199 |
Amount Paid or to be Paid | |
SEC registration fee ........................................................................................................................... | $15,310 |
FINRA filing fee .................................................................................................................................. | 15,500 |
NYSE Listing fee ................................................................................................................................ | * |
Printing and engraving expenses .................................................................................................... | * |
Legal fees and expenses .................................................................................................................. | * |
Accounting fees and expenses ........................................................................................................ | * |
Transfer agent and registrar fees and expenses .......................................................................... | * |
Miscellaneous expenses ................................................................................................................... | * |
Total ...................................................................................................................................................... | $ * |
Exhibit Number | Description of Document | |
1.1* | Form of Underwriting Agreement. | |
3.1 | ||
3.2 | ||
3.3 | ||
3.4 | ||
4.1* | Form of Class A Common Stock certificate of Figma, Inc. | |
4.2 | ||
4.3 | ||
5.1* | Opinion of Fenwick & West LLP. | |
10.1# | ||
10.2# | ||
10.3# | ||
10.4# | ||
10.5# | ||
10.6# | ||
10.7*# | Offer Letter between Dylan Field and Figma, Inc., dated . | |
10.8*# | Offer Letter between Praveer Melwani and Figma, Inc., dated . | |
10.9*# | Offer Letter between Shaunt Voskanian and Figma, Inc., dated . | |
10.10 | ||
10.11# | ||
10.12 | ||
10.13 | ||
10.14+ | ||
10.15 | ||
21.1 | ||
23.1 |
Exhibit Number | Description of Document | |
23.2* | Consent of Fenwick & West LLP (included in Exhibit 5.1). | |
24.1 | ||
99.1 | ||
99.2 | ||
99.3 | ||
107 |
FIGMA, INC. | ||
By: | /s/ Dylan Field | |
Dylan Field | ||
Chief Executive Officer and President |
Signature | Title | Date | ||
/s/ Dylan Field | Chair of the Board of Directors, Chief Executive Officer, and President (Principal Executive Officer) | July 1, 2025 | ||
Dylan Field | ||||
/s/ Praveer Melwani | Chief Financial Officer and Treasurer (Principal Financial Officer) | July 1, 2025 | ||
Praveer Melwani | ||||
/s/Tyler Herb | Chief Accounting Officer (Principal Accounting Officer) | July 1, 2025 | ||
Tyler Herb | ||||
/s/ Mamoon Hamid | Director | July 1, 2025 | ||
Mamoon Hamid | ||||
/s/ Kelly A. Kramer | Director | July 1, 2025 | ||
Kelly A. Kramer | ||||
/s/ John Lilly | Director | July 1, 2025 | ||
John Lilly | ||||
/s/ William R. McDermott | Director | July 1, 2025 | ||
William R. McDermott | ||||
/s/ Andrew Reed | Director | July 1, 2025 | ||
Andrew Reed | ||||
/s/ Danny Rimer | Director | July 1, 2025 | ||
Danny Rimer | ||||
/s/ Lynn Vojvodich Radakovich | Director | July 1, 2025 | ||
Lynn Vojvodich Radakovich |