Canva is fattening its enterprise turkey ready for sale

- May 24, 2024 2 MIN READ
Canva cofounder Melanie Perkins announcing new features in the company's product in 2022.
Visual design platform Canva has revamped its business products, launching an enterprise solution, in the hope of luring in more customers ahead of plans to list publicly next year.

The changes were announced at Canva Create, the company’s annual showcase, which moved from Sydney to the US for the first time as the software business looks to ramp up its appeal to US investors ahead of its float on the Nasdaq.

The company claims people at 95% of Fortune 500 companies are users and they spent two years developing an enterprise product.

Global head of growth and revenue David Burson said Canva Enterprise is an all-in-one workplace solution for visual communication, content creation, and collaboration for multiple and large single teams of more than 100 people.

“We recently surveyed more than 1,300 global CIOs on the state of their IT, with 72% saying that app sprawl – the growth in individual applications used in a workplace – is a pressing challenge when selecting visual content tools,” he said.

The existing product, Canva Teams, was more focused on individual teams in small to midsize businesses that don’t require complex team management and controls.

The company also revealed its annualised revenue hit US$2.3 billion (A$3.5bn) and they’re bullish on that front, predicting 40% growth in the year ahead, even though just 20 million of Canva’s 185 million monthly active users are actually paying subscribers.

There’s no shortage of fans though, with the business adding 95 million new users to its design platform since launching its free-to-use online graphic design tool, Visual Suite in September 2022.

CEO Melanie Perkins said it their biggest overhaul since launching more than a decade ago.

“We are excited to introduce a revamped Canva experience and a suite of new products to empower every organisation to design,” she said.

“As demand for visual content soars, navigating organisational complexity is more challenging than ever. We democratised the design ecosystem in our first decade and now look forward to unifying the fragmented ecosystems of design, AI, and workflow tools for every organisation in our second decade.”

The business also has one eye on rival Adobe as it looks to bolster its bottom line with a new enterprise product, signing on former Adobe executive Rob Giglio to lead enterprise sales as chief customer officer.

However, three months after long-term chief financial officer, Damien Singh, suddenly left the company after eight years, Canva has yet to name a replacement but is reportedly on the hunt for someone with public company experience.

Meanwhile, there’s no shortage of customers when it comes to acquiring Canva shares ahead of its Nasdaq list, with a Sydney private equity firm gobbling up $500 million worth of the business last month, including a $100 million tranche from VC investor Blackbird. That’s on top of $2.43 billion worth of Canva shares changing hands in a secondary market sale earlier this year.

Canva has also been growing through acquisitions, spending up big on UK rival Affinity in March its biggest spend yet.

Cofounder and CFO Cliff Obrecht said that Canva will look to list in the US, probably in 2026, saying that Australian investors “don’t understand tech as well, [compared to] higher multiples, more sophisticated investors in the US”, and any listing is more than a year away, but “probably not that early” with 2026 a more likely date.

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