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Headline financials: FY Ended December 31, in millions except percentage | 2023 | 2024 | YoY ---------------|--------|--------|---

Headline financials: FY Ended December 31, in millions except percentage | 2023 | 2024 | YoY ---------------|--------|--------|------- revenue | $505 | $749 | 48% gross profit | $460 | $661 | 44% op ex | $534 | $1,539 | 118% net income | $738 | $(732) | (199)% free cash flow | $1,041 | $68 | (93)%

VoidWhisperer 1y ago
What happened in 2024 that caused their operating expenses to increase so much?
- v5v3 1y ago
  If they were planning to IPO, they will have put in place a strategy to maximise the numbers for the year prior. So the numbers for the year before IPO may have no relation to future.
- granzymes 1y ago
  Mostly a 356% increase in R&D: FY Ended December 31, in millions except percentage | 2023 | 2024 | YoY ---------------------------|------|------|------ research and development | $165 | $751 | 356% sales and marketing | $201 | $472 | 134% general and administrative | $168 | $316 | 88% And most of that increase came from a one-time charge from allowing employees to sell their RSUs. While not a cash cost for Figma, it was booked as an expense and allocated as follows: | 2024 ---------------------------|------ cost of revenue | $25 research and development | $463 sales and marketing | $187 general and administrative | $184 total | $858 If you subtract the one-time charge, you get: | 2023 | 2024 (adj.) | YoY ---------------------------|------|-------------|------ research and development | $165 | $288 | 75% sales and marketing | $201 | $285 | 42% general and administrative | $168 | $132 | (21)% total | $534 | $705 | 32%
  - dustypotato 1y ago
    How'd you manage to summarize these figures so nicely ? Are you good at accounting stuff or are you using some AI tool ?
    - granzymes 1y ago
      Manual labor, going back to before LLMs were a thing. I just like reading S-1s. https://news.ycombinator.com/item?id=27701617#27702669 https://news.ycombinator.com/item?id=27701617#27702669 https://news.ycombinator.com/item?id=26362443#26363190 https://news.ycombinator.com/item?id=26362443#26363190 https://news.ycombinator.com/item?id=25143334#25143800 https://news.ycombinator.com/item?id=25143334#25143800
  - deleted 1y ago
    [deleted]
- drexlspivey 1y ago
  They received a $1B termination fee in 2023 when their acquisition by Adobe collapsed. They would be losing money in 2023 otherwise
- F7F7F7 1y ago
  Initially Tepid about AI. Didn’t want to upset their base like Adobe was (seemingly) doing. Look at that year’s Figcon for evidence. The keynote led with the new Figma, front loaded anything. He quickly moved past it and spent 90% of the rest of the time on non-consequential features. Then that AI feature they highlighted was pulled off production because it was cloning iOS. The AI heavy product dump we just got are lessons from that time.
- jonas21 1y ago
  In May 2024, they removed some of the vesting conditions on RSUs so employees could sell shares in a secondary offering. From an accounting perspective, it was an $800 million stock-based compensation expense, though it didn't really cost Figma anything.

VoidWhisperer 1y ago

What happened in 2024 that caused their operating expenses to increase so much?

v5v3 1y ago
If they were planning to IPO, they will have put in place a strategy to maximise the numbers for the year prior. So the numbers for the year before IPO may have no relation to future.
granzymes 1y ago
Mostly a 356% increase in R&D: FY Ended December 31, in millions except percentage | 2023 | 2024 | YoY ---------------------------|------|------|------ research and development | $165 | $751 | 356% sales and marketing | $201 | $472 | 134% general and administrative | $168 | $316 | 88% And most of that increase came from a one-time charge from allowing employees to sell their RSUs. While not a cash cost for Figma, it was booked as an expense and allocated as follows: | 2024 ---------------------------|------ cost of revenue | $25 research and development | $463 sales and marketing | $187 general and administrative | $184 total | $858 If you subtract the one-time charge, you get: | 2023 | 2024 (adj.) | YoY ---------------------------|------|-------------|------ research and development | $165 | $288 | 75% sales and marketing | $201 | $285 | 42% general and administrative | $168 | $132 | (21)% total | $534 | $705 | 32%
- dustypotato 1y ago
  How'd you manage to summarize these figures so nicely ? Are you good at accounting stuff or are you using some AI tool ?
  - granzymes 1y ago
    Manual labor, going back to before LLMs were a thing. I just like reading S-1s. https://news.ycombinator.com/item?id=27701617#27702669 https://news.ycombinator.com/item?id=27701617#27702669 https://news.ycombinator.com/item?id=26362443#26363190 https://news.ycombinator.com/item?id=26362443#26363190 https://news.ycombinator.com/item?id=25143334#25143800 https://news.ycombinator.com/item?id=25143334#25143800
- deleted 1y ago
  [deleted]
drexlspivey 1y ago
They received a $1B termination fee in 2023 when their acquisition by Adobe collapsed. They would be losing money in 2023 otherwise
F7F7F7 1y ago
Initially Tepid about AI. Didn’t want to upset their base like Adobe was (seemingly) doing. Look at that year’s Figcon for evidence. The keynote led with the new Figma, front loaded anything. He quickly moved past it and spent 90% of the rest of the time on non-consequential features. Then that AI feature they highlighted was pulled off production because it was cloning iOS. The AI heavy product dump we just got are lessons from that time.
jonas21 1y ago
In May 2024, they removed some of the vesting conditions on RSUs so employees could sell shares in a secondary offering. From an accounting perspective, it was an $800 million stock-based compensation expense, though it didn't really cost Figma anything.