**Canva Future IPO Valuation Analysis: Implications of Figma’s 250% First-Day Surge for the Design Software Giant**
*A SaaStr In-Depth Look at the Next Major IPO in Design Software*
**The Figma Blueprint and Canva’s Route to Public Debut**
Figma’s remarkable market introduction this week— soaring 250% from its $33 IPO price to close at $115.50 on the first day— has redefined expectations for design software valuations. With a final market capitalization of $56.3 billion, Figma’s performance offers a valuable basis for evaluating Canva’s potential IPO valuation, possibly as early as 2026.
The inquiry isn’t if Canva will go public— it’s what valuation multiple the market will afford to a company that generates $3 billion annually with seven years of steady profitability and has over 230 million global users across 190 nations.
**Summary:** By applying Figma’s current revenue multiple to Canva’s larger scale, Canva could target an IPO valuation between **$195-210 billion**, reflecting a 65-70x revenue multiple akin to Figma’s post-IPO trading multiple.
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**The Figma Benchmark: Recent Public Market Events**
**The Key Figures**
Figma set its IPO price at $33 per share, exceeding its increased range of $30-32, achieving a $19.3 billion valuation. However, the stock opened at $85 and closed at $115.50, resulting in a market cap of $56.3 billion.
**Revenue Multiple:** With Figma’s trailing twelve-month revenue of $821 million, it’s now trading at roughly **68.6x revenue** (market cap of $56.3B ÷ $821M revenue)— one of the highest revenue multiples for a major software IPO in recent history.
This wasn’t merely a successful IPO— it was illustrative of the market’s enthusiasm for high-growth design software firms.
– **Revenue Growth:** 46% YoY growth with a clear path to $1B ARR
– **Market Position:** ~90% market share in design tools
– **Profitability:** Operating income of $9-12 million on $247-250 million Q2 revenue
– **Premium Multiple:** 68.6x revenue multiple shows investors’ confidence
**Impact on Canva**
The public markets have validated the design software category as a sector that commands premium multiples. Figma achieved the largest first-day gain in at least three decades for a US-traded firm raising over $1 billion, proving institutional investors’ willingness to pay extensive premiums for category-leading design platforms.
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**Canva’s Valuation Basis: Core Factors**
**Revenue Scale and Growth**
Canva’s financial standing is notably stronger than Figma’s at IPO:
– **Current Revenue:** $3 billion ARR as of March 2025 (vs. Figma’s $821M TTM)
– **Growth Acceleration:** Canva reached $3B ARR with a 40%+ growth rate
– **User Base:** 230 million monthly active users in March 2025, up from 220M in Sept 2024
– **Market Penetration:** 95% of Fortune 500 companies use Canva
– **Scale Advantage:** Canva’s revenue is 3.7x Figma’s
**Profitability: A Key Edge**
Unlike other SaaS IPOs, Canva has been profitable since 2017. This stable model offers significant downside protection and supports premium multiples.
**Recent Valuation Trends**
Canva’s private market valuations have demonstrated resilience:
– **Peak Valuation (2021):** $40 billion
– **Recent Secondary Sales:** $56 billion valuation in June 2025
– **Current Range:** $37-56 billion based on various transactions
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**Market Context: 2025 B2B Valuation Climate**
**Public Market Multiples Stability**
The SaaS Capital Index is at 7.0 times current run-rate annualized revenue, expecting public SaaS valuations to stay within the 5.5x to 8x current ARR band. Yet, premium firms are securing notably higher multiples:
– **High-Growth SaaS:** Companies with over 40% ARR growth might secure 7x to 10x ARR multiples privately
– **Public Market Leaders:** Leading public SaaS companies with exceptional growth and profitability can attain multiples exceeding 10x ARR
**AI-Driven Premium Valuations**
Firms that integrate AI into workflows are likely to excel, commanding premium multiples. Canva’s AI investments position it favorably for this premium.
**Competitive Positioning: The Adobe Element**
**Market Share Dynamics**
The competitive landscape benefits Canva:
– **Canva:** 12.47% market share in the graphics software industry
– **User Demographics:** 230 million monthly active users as of March 2025
– **Enterprise Adoption:** 85% of Fortune