“Adobe competitor” Canva releases new AI features to expand AIGC market share

Zhitong Finance App learned that design software provider Canva Inc. has launched a series of products to enhance its ability to generate artificial intelligence products and seek to attract corporate customers from competitor Adobe (ADBE.US). The company aims to conduct an initial public offering (IPO).

Australia-based Canva's new features include a conversation-based artificial intelligence tool that responds to voice and text prompts to edit photos, generate slides, and resize designs. The company unveiled new tools Thursday at a corporate event in Los Angeles that can also generate app or website design code based on simple tips.

Canva is competing for users with AI application software leader Adobe, which has been integrating its artificial intelligence model Firefly into its photo and video editing apps. Adobe said in February that it would charge around 50 cents for each video generated by artificial intelligence, and separately announced price increases for some of its apps. The company's stock price has dropped about 25% over the past 12 months as investor sentiment about competition in the creative artificial intelligence sector worsened.

Meanwhile, Canva is counting on artificial intelligence tools to accelerate revenue growth and prepare for a much-anticipated IPO. Canva's chief operating officer and co-founder Cliff Obrecht said in an interview that Canva's recent valuation is $32 billion and has signed more than 2,000 corporate contracts with companies such as Docusign (DOCU.US), Airbnb (ABNB.US), and the New York Stock Exchange. The company also wants to create a design ecosystem where users can use tools to write apps and websites, Obrecht said, hoping this will help Canva reach its goal of 1 billion users.

“Our goal is to do an IPO in the next few years,” Obrecht said. Artificial intelligence is a huge boost for us, and we really want to build our own foundational model.”

Launched in 2013, Canva gained an early cult following because it's easy to use and can create anything from wedding invitations to social media posts. Since then, Canva has been a strong competitor to Adobe, a long-time leader in creative software for graphics and art professionals. According to Canva, the company has annual sales of over $3 billion and currently has over 230 million monthly active users. It recently hired former Zoom (ZM.US) CFO Kelly Steckelberg as chief financial officer.

Obrecht said, “We will be doing an IPO in the next few years, but the longer we delay, the better. The market rewards companies more based on quarterly results, and we are more willing to consider long-term performance.”