“This year they are expected to add $200 million in net new ARR, surpassing $400 million total ARR by the end of the year, with greater than 150% net dollar retention.”

In context

“are thrilled about the opportunity to acquire Figma, which will accelerate Adobe’s strategy. Under the definitive agreement, we have agreed to acquire Figma for approximately $20 billion, comprised of approximately half cash and half stock, subject to customary adjustments. Approximately 6 million additional restricted stock units will be granted to Figma’s CEO and employees that will vest over four years subsequent to closing. The transaction is expected to close in 2023, subject to regulatory approvals. We plan to finance the cash portion of the consideration with cash on hand, and if necessary, a term loan, to be paid down from our operating cash flows following the closing. Figma’s products address a $16.5 billion market opportunity and the company has an impressive financial profile. This year they are expected to add $200 million in net new ARR, surpassing $400 million total ARR by the end of the year, with greater than 150% net dollar retention. They have a disciplined, efficient operating model, with gross margins of approximately 90% and positive operating cash flows. Figma have strong business momentum, a large and expanding customer base and we are incredibly excited about what we can bring to this combination from a financial perspective. While this transaction is primarily about creating new markets, expanding adjacent opportunities and accelerating growth, we are committed to maintaining Adobe’s strong profitability and maximizing EPS for our investors. In year one and two after closing, the transaction will be dilutive to Adobe’s non-GAAP EPS and we expect it to be breakeven in year three and accretive at the end of year three. While the transaction has not yet closed, I want to provide color on the path to non-GAAP EPS a”