Investing.com — Canva, the popular online graphic design and communications platform, has cemented itself as a major player in the Software-as-a-Service (SaaS) sector.
According to Baird analysts, recent reports indicate that the company has achieved a valuation of $32 billion following a $1.6 billion secondary offering that closed in October 2024.
Canva’s growth trajectory has been impressive. The platform was founded in 2013 in Sydney, Australia, by Melanie Perkins (CEO), Cameron Adams (CPO) and Cliff Obrecht (COO), and now serves more than 220 million users in more than 190 countries.
The audience is said to span from individual creators to enterprise customers, with notable clients like Salesforce (NYSE:), Sony (NYSE:) Music, Bloomingdale’s and Zoom (NASDAQ:).
Baird, who attended the Canva Create user conference in Los Angeles in May 2024, said in his note that Canva has also made significant progress financially. They explain that the company has reportedly surpassed $2.3 billion in Annual Recurring Revenue (ARR), reflecting its strong position in the competitive design tools market.
The company explains that a key factor for Canva’s success is its broad offering, including tools for visual documents, photo and video editing, print materials and marketing materials.
Additionally, they note that the company caters to different user needs through its tiered pricing plans, ranging from the free version to enterprise-level solutions. Recent innovations such as the Magic Write AI-powered copywriting assistant and a revamped user interface are said to further broaden Canva’s appeal.
While Canva’s valuation is impressive, analysts note that it competes in a challenging market dominated by Adobe (NASDAQ:), which expects a total addressable digital media market worth $138 billion by 2027.
Still, they believe Canva’s commitment to innovation and recent acquisitions – such as professional design software Affinity and generative AI company Leonardo – position it as a disruptive force in the space.
