IPO details
Company intro
ForgeRock is a cloud identity company which supports digital identities that help people perform various online activities such as shopping and banking as well as accessing company networks for work. The company’s platform provides enterprises with a seamless and secure environment to carry out their consumer, workforce, and IoT and services functions. Over 1,300 organizations around the world use the company’s platform to manage over 3 billion identities.
Financials
ForgeRock generated revenue of $127.6 million in 2020, which reflected a growth of 22% compared to the previous year. During the first six months of 2021, revenues grew 53% to $84.8 million compared to the same period in 2020. The company incurred net losses of $41.8 million in 2020 and $20.1 million in 1H21.
Annualized recurring revenue (ARR) grew 29% year-over-year to $136 million in FY2020. During the first six months of 2021, ARR increased 30% YoY to $155 million. Gross margin was 83% in both FY2020 and 1H21.
Market opportunity
According to Gartner, the Worldwide Identity Access Management market is estimated to reach $11.6 billion in 2021. This excludes privileged access management, the market for which is estimated at $1.9 billion. ForgeRock sees vast opportunity in the global digital identity market and believes it is well-positioned to gain share in this space.
In the near term, the company believes it is capable of displacing homegrown, legacy, and point solutions. ForgeRock also sees massive opportunity within the enterprise fraud management market, which according to Forrester, was estimated to stand at $3.2 billion in 2020. The company estimates its global addressable market opportunity to be approx. $71 billion.