Figma Goes Public, CEO Field Sets Eyes on Growth | Bloomberg Tech 7/31/2025

Key Concepts

• AI-fueled growth: The impact of artificial intelligence on the growth and revenue of tech companies.
• Compute Subsystems: Licensed components that use ARM technology and are delivered in physical form.
• Licensing Activity: The process of granting licenses for the use of ARM's technology, which is described as robust and sticky.
• Project Stargate: A joint venture between OpenAI and SoftBank focused on data centers and utilizing ARM CPUs.
• Tariffs: Taxes imposed on imported goods, specifically those between the U.S. and Mexico.
• Design as a Differentiator: The idea that design is a key factor that sets companies apart in a world where software creation is increasingly easy.
• Generative AI: Artificial intelligence that can generate new content, such as images, text, or code.
• Scaled M&A: Large-scale mergers and acquisitions that Figma may pursue to expand its capabilities.
• USMCA Compliance: Adherence to the trade agreement between the United States, Mexico, and Canada, which shields goods from tariffs.
• Content per Vehicle: The amount of Qualcomm technology included in each vehicle, which is a key metric for driving growth in the automotive business.
• On-Device AI: Running artificial intelligence models directly on devices like smartphones and smart glasses, rather than relying on cloud processing.

ARM's Strategy and AI Investment

• Record Revenue: ARM reported a record first fiscal quarter with $1 billion in revenue, driven by royalties and computer systems.
• Market Share: ARM expects to achieve over 50% market share in data center CPUs by the end of the year.
• Investment in AI: ARM is doubling down on investments in the AI space, seeing a huge opportunity for growth in ARM-based compute.
• Platform Versatility: ARM emphasizes its unique position as a platform that can run from small devices to large data centers.
• Project Stargate Opportunity: ARM is the CPU of choice for Project Stargate, a joint venture between OpenAI and SoftBank, which involves significant investment in data centers. The Grace Blackwell device is being used, based on ARM.
• Exploring Opportunities: ARM is exploring opportunities to enhance its CPU IP and move further into the stack, potentially through chiplets and customized compute subsystems.
• Licensing Activity: ARM's licensing activity is described as robust and sticky, with customers licensing second-generation compute subsystems.
• Royalty Growth: ARM's royalty rates were up 25% year-on-year, fueled by investments in compute subsystems.
• Automotive Gains: ARM is making gains in the automotive market, particularly in electric vehicles, where power efficiency is crucial for autonomous driving.
• Qualcomm Partnership: While under litigation, Qualcomm remains a long-term partner of ARM, with many products based on ARM technology.

Tariffs and Geopolitics

• Tariff Extension: President Trump extended the tariff deadline with Mexico for 90 days following a phone call with President Sheinbaum.
• Tariff Details: Mexico will continue to pay a 25% tariff on autos and a 50% tariff on steel and aluminum.
• Limited Tariff Impact: ARM is not feeling a significant impact from tariffs, as royalty growth is driven by investments in compute subsystems.
• Geopolitical Uncertainty: ARM acknowledges the uncertainty surrounding geopolitics and tariffs, which is why they did not provide full-year guidance.
• USMCA Compliance: 83% of goods from Mexico are USMCA compliant and shielded from tariffs, but $80 billion worth of imports remain exposed.

Figma's IPO and Future Plans

• Public Offering: Figma CEO Dylan Field celebrates the company's IPO, emphasizing the importance of design and the contributions of the Figma community.
• Design as a Differentiator: Field argues that design is now a key differentiator for companies, especially in a world where software creation is increasingly easy.
• AI Integration: Figma aims to help people go from AI prompts to fully functional apps, integrating AI capabilities into its design tools.
• Cash Allocation: Figma has a strong cash balance and plans to invest in AI and pursue scaled M&A to expand its capabilities.
• Growth Over Profitability: Figma is focused on growth and enabling great things for its users, rather than prioritizing immediate profitability.
• M&A Strategy: Figma will be prudent in its M&A activities, seeking companies with amazing teams, assets, and cultural consistency.
• Demand and Investment Advice: Field advises potential investors to understand Figma's business, read its S1 filing, and play with the product.
• Oversubscription: Figma's IPO was 40 times oversubscribed, indicating strong demand from investors.

Roblox's User Growth and Safety Measures

• User Growth: Roblox reported a 51% increase in bookings last quarter, with daily active users topping 111 million.
• Grow Garden Success: The hit game Grow Garden attracted 22 million concurrent players in July.
• Game Diversity: More than 75% of Grow Garden players also play other games on the platform, indicating successful cross-promotion.
• Popular Titles: Several titles on Roblox have 10 million daily active users.
• Safety Measures: Roblox CEO emphasizes the company's commitment to safety and has implemented dozens of changes to protect children.

Qualcomm's Diversification and AI Strategy

• Diversification Plan: Qualcomm aims to have $22 billion of non-handset business by fiscal year 2029, achieving 50% non-handset revenue.
• Non-Apple Growth: Qualcomm expects a second consecutive year of double-digit growth in non-Apple revenue.
• AI at the Edge: Qualcomm is focusing on AI at the edge, with strong growth in IoT due to personal AI devices like Meta-glasses.
• Automotive Growth: Qualcomm's automotive business is growing as its pipeline converts into revenue, with increasing content per vehicle.
• On-Device AI: Qualcomm is seeing increased use of AI on smartphones, with the Samsung Galaxy X25 showing triple the usage of Google Gemini compared to previous models.
• ARM Compatibility: Qualcomm is confident in its ability to provide competitive ARM-compatible CPUs, following a favorable trial outcome.

Investor Perspective on Figma

• Early Investment: Kleiner Perkins invested in Figma early on, recognizing the special founders and the team they built.
• Product Love: The unmistakable love for the product was evident even in 2017, with designers using Figma daily.
• Bottom-Up Adoption: Figma followed a path of amazing bottom-up enterprise adoption, similar to Vox.
• Depth of Engagement: The depth of engagement with Figma was incredible, with designers using it daily to get their job done.
• AI and Creativity: AI is seen as a tremendous opportunity to combine machine intelligence with human creativity, which is where Figma plays.
• Global Impact: 80% of Figma's users are international, and 80% are non-designers, indicating a broad global impact.
• Fortune 500 Adoption: 95% of the Fortune 500 are Figma customers.

Market Analysis and Future Outlook

• AI Spending: Spending on AI continues, with Meta planning substantial increases in capex in 2026, similar to 2025.
• Microsoft's Cloud Growth: Microsoft continues to see strong numbers, with cloud growth helped by AI.
• Apple Concerns: There are concerns about Apple's lack of AI deployment and the lack of acceleration in the iPhone upgrade cycle.
• China Market: NVIDIA stated it won't allow backdoor access to its systems and there are no backdoors in its chips, in response to concerns from U.S. lawmakers.
• NVIDIA in China: There is a possibility for China to go back to being a significant proportion of revenue for NVIDIA, but details need to be worked out.