Shares in ForgeRock Inc. dropped in late trading after the digital identity management company predicted a lower-than-expected earnings outlook.

The company also announced a new artificial intelligence-driven anti-fraud solution.

For the quarter ended March 31, ForgeRock reported a loss before costs such as stock compensation of $10.1 million, or 12 cents per share, compared with a loss of $8.6 million, or 35 cents per share, in the first quarter of 2021. Revenue rose 18% from a year ago, to $48.1 million.

Analysts had predicted an adjusted loss of 16 cents per share on revenue of $46.64 million.

Annual recurring revenue in the quarter rose 35% from a year ago, to $193.2 million, up 35% year-over-year. Cash, cash equivalents and short-term investments were $364.4 million as of the end of March.

For the second quarter, ForgeRock predicts an adjusted loss per share of between 21 and 23 cents on revenue of $46.5 million to $47.5 million. For the full year, the company predicted an adjusted loss of 41 to 45 cents on revenue of $212 million to $215 million. Analysts had expected a full-year EPS loss of 36 cents on revenue of $214 million.

“Adoption of our SaaS offering among our customers is strengthening, representing 65% of ARR from new customers in Q1,” John Fernandez, chief financial officer of ForgeRock, said in a statement. “The strength of the demand we’re experiencing gives us confidence to raise our full-year 2022 guidance for ARR and our expected range for SaaS as a percentage of ending ARR.”

Still, ForgeRock shares fell nearly 6% after the bell.

ForgeRock also debuted a new service called ForgeRock Autonomous Access designed to prevent identity-based cyber attacks and fraud. Using AI, the solution monitors login requests in real-time to block malicious attempts, adds authentication steps for anomalous behaviors, and streamlines access for known users.

ForgeRock Autonomous Access is claimed to eliminate costly deployment and integration of disparate point solutions. It empowers information technology administrators to create any number of personalized user access journeys with a simple drag-and-drop, no-code interface.

The flexibility offered by the new service is said to make it possible for IT admins to design tailored experiences for every login attempt based on the level of risk. For example, a known user with a low-risk score can sail through with options such as passwordless authentication, while a known user exhibiting anomalous behavior, such as an unusual location or device, can be given added authentication steps. Login attempts exhibiting high-risk scores can be blocked or sent for further analysis and remediation on different journeys.

“What makes our approach distinct is the unique combination of AI, machine learning, and advanced pattern recognition,” said Peter Barker, chief product officer at ForgeRock. “This triple threat gives enterprises the ability to strengthen their identity perimeter, thwart bad actors and even catch threats we didn’t know to look for, all with the click of a button.”

The new service is available through the ForgeRock Identity Cloud and will be available later this month.

Image: ForgeRock