Investing.com -- Canva, the popular online graphic design and communication platform, has cemented itself as a significant player in the Software-as-a-Service (SaaS) sector.
According to analysts at Baird, recent reports stated the company achieved a valuation of $32 billion, following a $1.6 billion secondary offering finalized in October 2024.
Canva's growth trajectory has been impressive. Founded in 2013 in Sydney, Australia, by Melanie Perkins (CEO), Cameron Adams (CPO), and Cliff Obrecht (COO), the platform now serves over 220 million users across 190+ countries.
Its audience is said to span from individual creators to enterprise customers, with notable clients like Salesforce (NYSE:CRM), Sony (NYSE:SONY) Music, Bloomingdale’s, and Zoom (NASDAQ:ZM).
Baird, which attended Canva’s Create user conference in Los Angeles in May 2024, said in its note that financially, Canva has also made significant strides. They explain that the company reportedly surpassed $2.3 billion in Annual Recurring Revenue (ARR), reflecting its strong foothold in the competitive design tools market.
The firm explains that a key factor in Canva's success is its broad suite of offerings, which includes tools for visual documents, photo and video editing, print materials, and marketing assets.
Furthermore, they note the company caters to various user needs through its tiered pricing plans, ranging from the free version to enterprise-level solutions. Recent innovations, like the Magic Write AI-powered copywriting assistant and a refreshed user interface, are said to further enhance Canva’s appeal.
While Canva’s valuation is impressive, analysts note that it competes in a challenging market dominated by Adobe (NASDAQ:ADBE), which projects a $138 billion total addressable market for digital media 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.