Canva expands from design into analytics with acquisition of MagicBrief

Canva has grown into a $32 billion startup through its popular design tools used for easily creating images, marketing material and presentations.

Now the company, with its 12th acquisition, is buying its way into the analytics market.

Canva said on Tuesday that it's buying MagicBrief, whose technology is used for analyzing ad performance, for an undisclosed sum. With MagicBrief, companies can track spending and engagement on their ads and see what's working well for competitors.

Around 240 million people use Canva's products, which compete with offerings from Adobe's Creative Cloud. The company has been deepening its capabilities in artificial intelligence, incorporating it into photo editing, coding and by incorporating chatbots.

"We feel like, especially with AI, we can really democratize marketing and allow marketers to do a lot more with less," Cliff Obrecht, Canva's co-founder and chief operating officer, said in an interview.

Canva, which ranked fifth on CNBC's latest Disruptor 50 list, has raised over $560 million, and was valued most recently at $32 billion, though that's a step down from its peak of $40 billion in 2021, when private markets were at their frothiest. Obrecht said the company has $1 billion in the bank.

Canva plans to incorporate MagicBrief into a broader product that it will announce later this year, Obrecht said. In October, Adobe announced the availability of a tool for creating ads with AI and then tracking performance.

Meanwhile, Alphabet, Amazon, Meta and Reddit are all pushing generative AI systems to boost the reach of online ads. Some marketers have used Meta's offerings to tweak the visual appearance of their ads with hopes of gaining traction with certain audiences, CNBC reported in December.

Founded in 2022, MagicBrief has 14 employees and is based in Canva's hometown of Sydney, Australia. In 2023, the company announced a $2 million funding round, with investments from Archangel and Blackbird, which was Canva's first investor. The startup has tens of millions of dollars in annualized revenue, Obrecht said.

Canva, which started up in 2013, has 5,500 employees, with over $3 billion in annualized revenue. It's one of the companies that venture capitalists are most excited about as an IPO candidate, but Obrecht said there won't be an offering this year.

The focus, he said, is winning "over the next 10 years," and not just hitting quarterly numbers.

"We feel that's very short-sighted, and public markets do gravitate you more to quarter-on-quarter performance," he said.

— CNBC's Jonathan Vanian contributed to this report.

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