4 ms·
They spent $20B for a 16B market opportunity that only generated $400M a year? Thats revenue. Even if that was profit, it would take 50 years to recoup if no fu
by throwoutway 4y ago
They spent $20B for a 16B market opportunity that only generated $400M a year? Thats revenue. Even if that was profit, it would take 50 years to recoup if no further revenue was added.
Even if it doubled, it’s still a weird investment of $20B. Can’t read the FT article but is Figma even profitable?
From a Fortune article:
> Figma’s products “address a $16.5 billion market opportunity,” and this year, they’re expected to add $200 million in net new ARR [annual recurring revenue], surpassing $400 million in total ARR by the end of the year,” Durn said.
- jjeaff 4y agoUsually, market size refers to annual gross revenue. So a one time $20B outlay to gain marketshare in a $16B a year market.
- throwoutway 4y agoSure, of which only 400M of the 16000M ARR is part of the purchase.
- dharma1 4y agoFigma is growing fast still. I think they’ll break $1b ARR in a couple of years. This was a desperate move from Adobe to stay relevant, but if they let Figma grow and be run independently, it may have been worth it - we will see. I think it would be a mistake to bundle it with CC though. I suspect part of Figma’s rapid ARR growth is how it’s very, very easy (automatic) to go from a free seat in your org to a low cost paid one, if you add someone as an editor to a Figma or Figma file. As a result many people in the org get converted to paying seats, not just designers