ForgeRock filed its Form S-1 with the Securities and Exchange Commission (SEC) this morning as the identity management provider takes the next step towards its IPO.
The company has not provided an initial price for its shares, which will trade on the New York Stock Exchange under the symbol FORG. The IPO is led by Morgan Stanley and JP Morgan Chase & Co., with the company valued at $ 4 billion, according to Bloomberg, which represents a significant increase over the post-currency value of $ 730 million which PitchBook had for the company after its last round in 2020.
With the ever increasing volume of cybersecurity attacks against organizations of all sizes, the need to secure and manage user identities is growing. San Francisco-based ForgeRock has raised $ 233 million in funding over multiple rounds. The last tour of the company was a $ 93.5 million Series E announced in April 2020, which was led by Riverwood Capital alongside Accenture Ventures. Around this time, CEO Fran Rosch told TechCrunch that the cycle would be the last before an IPO, which was also what former CEO Mike Ellis told us after the startup was launched. $ 88 million Series D in September 2017.
While the timing of its IPO may not have been clear in recent years, the company is on a positive growth trajectory. In his S-1, ForgeRock reported that as of June 30, its annual recurring revenue (ARR) was $ 155 million, a 30% year-over-year growth.
As revenues increase, losses decrease as the company reported a net loss of $ 20 million from $ 36 million a year ago. There is certainly plenty of room to grow, as the company estimates the total addressable global market for identity services to be $ 71 billion.
Among the many competitors ForgeRock faces is Okta, which went public in 2017 and has grown steadily since. In March, Okta acquired cloud identity startup Auth0 for $ 6.5 billion in a deal that raised a few eyebrows. Another competitor is Ping Identity, which went public in 2019 and is also growing, reporting on August 4 that its ARR reached $ 279.6 million in its quarter ended June 30, for a gain of 19%. from one year to the next. There have also been a few major spacewalks over the years, including Duo Security, which was acquired by Cisco for $ 2.35 billion in 2018.
“ForgeRock has a good access management tool and continues to be an important player in Customer Identity and Access Management (CIAM),” commented Michael Kelley, senior research director at Gartner.
Kelley noted that in 2020, ForgeRock converted most of its major access management services to a SaaS delivery model, which helped the company catch up with the rest of the market that already offered access management as a than SaaS. Also last year, the company expanded into Identity Governance, introducing a brand new Identity, Governance and Administration (IGA) product.
“I think one of the most interesting products that ForgeRock has to offer is ForgeRock Trees, which is a no-code / low-code orchestration tool for creating complex authentication and authorization journeys for customers, which is particularly useful in the CIAM market, ”Kelly added. .
ForgeRock was founded in 2010, but its roots go even further back to an open source single sign-on project known as OpenSSO that was created by Sun Microsystems in 2005. When Oracle acquired Sun Microsystems early in 2010, a number of its source efforts were scrapped, leading a number of former Sun employees to launch ForgeRock.
Over the past decade, ForgeRock has grown significantly beyond simply providing single sign-on to providing an identity platform capable of handling consumer, business and online use cases. ‘IoT. The company’s platform today manages identity and access management as well as identity governance.
Scalability is a key selling point ForgeRock is making in S-1, noting that its platform can handle over 60,000 user-based access transactions per second per customer.
“As of June 30, 2021, we had four customers with 100 million or more licensed identities,” the company said in S-1. “Our ability to meet critical needs in complex environments for large clients allows us to grow our base of large clients and grow within each of them. “