Core Viewpoint - Figma's stock has significantly declined since its IPO, dropping about 70% from its highs, but it may still represent a valuable investment opportunity in the AI software sector [2][4]. Company Overview - Figma operates a software and AI tools platform designed for user interface and experience design, emphasizing collaboration through its web-based architecture [6]. - The company has a strong customer base, with 1,262 paid customers generating at least $100,000 in annual recurring revenue and 12,910 generating at least $10,000 [7]. Financial Performance - Figma's revenue was just under $505 million in 2023, with expectations to surpass $1 billion in 2024, reflecting a 39% increase [4][9]. - The company has positive free cash flow and net income on an adjusted basis, with $1.6 billion in cash and minimal debt [8]. Market Position - Figma's current market cap is approximately $15 billion, significantly lower than the $20 billion Adobe was willing to pay for the company in 2022 [4]. - Figma's price-to-sales ratio is around 15 based on estimated 2025 revenue, indicating a relatively attractive valuation compared to broader market sentiment [11]. Competitive Landscape - Adobe's interest in acquiring Figma highlights the competitive threat Figma poses in the creative software space, especially as Adobe faces challenges from generative AI [3][4]. - Many of Adobe's customers are reportedly using Figma alongside Adobe products, suggesting Figma's potential to capture market share [12].