2/24/2026 | USA | general | ✓ Verified - cnbc.com

As Wall Street punishes software stocks over AI concerns, Canva gets more acquisitive

#Canva #Adobe #AI concerns #software stocks #motion graphics #acquisitions #design technology #revenue growth

📌 Key Takeaways

Canva acquired two startups (Cavalry and MangoAI) to expand its motion graphics and video creation capabilities
The acquisitions come as software stocks are being punished by investors over AI concerns
Canva plans to integrate both technologies into its existing products while maintaining them as standalone offerings
Canva reported strong revenue growth of 36% to over $4 billion annualized in 2025

📖 Full Retelling

Canva, the Australian design software company, announced on Monday that it has acquired two startups—Cavalry and MangoAI—as investors punish software stocks over artificial intelligence concerns, with the company's co-founder and product chief Cameron Adams explaining the moves are aimed at challenging larger rival Adobe and responding to customer demands for motion graphics capabilities. The acquisitions come amid a challenging period for software companies, with Adobe experiencing a 30% stock decline so far in the year as investors worry about AI disruption. Canva, which has been one of the highest-flying startups in the design space, is positioning itself to expand its offerings beyond traditional design tools. The company purchased Cavalry, a four-person startup that creates software for two-dimensional animations, which has gained attention among designers as an alternative to Adobe's After Effects. Canva plans to continue operating Cavalry independently while also incorporating its animation technology into Canva's core product and the Affinity application for professional designers (which Canva acquired in 2024 and made free in October). The second acquisition, MangoAI, is a stealth-mode company whose technology helps create short videos for advertising and can track video performance while making recommendations. Canva plans to integrate MangoAI into its Canva Grow advertisement generator, available through its business tier at $250 per person per year. Adams highlighted that creating effective videos involves complex processes like content repurposing, combining elements from different campaigns, and analyzing performance across campaigns—all areas where MangoAI's technology will enhance Canva's capabilities. Despite market concerns about AI, Adams maintains that while AI can handle 80% of content creation, the remaining 20% that truly represents a brand and achieves specific goals remains challenging for AI to master. Canva reported ending 2025 with over $4 billion in annualized revenue, up 36% from the previous year, while Adobe reported $6.2 billion in revenue for its November quarter, up 10%. The company currently has over 5,000 employees and is not seeking new funding at present, according to Adams.

🏷️ Themes

AI disruption in software industry, Corporate acquisitions and expansion, Design technology competition

📚 Related People & Topics

Adobe

Building material of earth and organic materials

Adobe ( ə-DOH-bee; Spanish: [aˈðoβe]; via Spanish, from Arabic الطّوب (at-tūb)) is a building material made from loam and organic materials. Adobe is Spanish for mudbrick. In some English-speaking regions of Spanish heritage, such as the Southwestern United States, the term is used to refer to any...

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Canva

Australian multinational proprietary software company

Canva Pty Ltd. is an Australian multinational proprietary software company launched in 2013 that provides a graphic design platform to create visual content for presentations, websites, and other digital products. Its uses include templates for presentations, posters, and social media content, as we...

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Deep Analysis

Why It Matters

This matters because it shows how a major player in the design software market is strategically adapting to the disruptive threat of AI. Canva's acquisitions signal a push to compete more directly with industry giant Adobe by enhancing its video and animation capabilities, which are areas of high demand and rapid innovation.

Context & Background

Software stocks are under pressure as investors worry about AI disruption
Canva is a popular design platform but faces competition from larger rival Adobe
Canva recently acquired Affinity, a suite of professional design applications

What Happens Next

Canva will integrate the newly acquired Cavalry and MangoAI technologies into its core product and its Canva Grow advertising tool. The company will continue to focus on organic growth through product enhancement rather than seeking new funding rounds.

Frequently Asked Questions

What companies did Canva acquire?

Canva acquired Cavalry, a 2D animation software company, and MangoAI, a stealth-mode startup focused on video creation for advertising.

How does Canva plan to use these acquisitions?

Canva plans to incorporate Cavalry's animation technology into its core product and Affinity suite, and integrate MangoAI's technology into its Canva Grow advertisement generator.

How is Canva performing financially?

Canva reported over $4 billion in annualized revenue for 2025, representing 36% year-over-year growth.

Original Source

              In this article ADBE ADSK Follow your favorite stocks CREATE FREE ACCOUNT From left, MangoAI's Nirmal Govind, Canva Co-Founder and Chief Operating Officer Cliff Obrecht and MangoAI's Vinith Misra. Canva Software stocks have been hammered in recent weeks as investors worry about threats from artificial intelligence. In the startup world, Canva has been among the highest fliers due to its popularity with designers, but that market is showing vulnerability, with larger rival Adobe down 30% so far this year. As Canva reckons with dramatic changes in the market, the design software vendor is getting acquisitive. The company said Monday that it's purchased two startups — Cavalry and MangoAI — that stand to help it challenge Adobe . Cavalry, a four-person startup, sells subscriptions to software for creating two-dimensional animations. MangoAI is a stealth-mode company, whose technology can be used for creating short videos for advertising. Terms of the deals weren't disclosed. Cameron Adams, Canva's co-founder and product chief, told CNBC that customers have been asking what the company can offer in motion graphics. Cavalry, which Canva has used for its own projects, has gained attention among designers on social media as an alternative to Adobe's After Effects for some work. Canva will continue to operate Cavalry for people to use and buy independently, while also incorporating the animation technology into the core Canva product and the Affinity application for professional designers. Canva bought Affinity in 2024 and made it free in October. Amazon , ByteDance, Google , and OpenAI all have employees that are paying customers, according to Cavalry's website. Canva plans to incorporate MangoAI into the Canva Grow advertisement generator, which is available through its business tier at $250 per person per year. The MangoAI technology is able to track video performance and make recommendations. "There's a whole bunch that goes into creating the right video," Adams said. Th...
            

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