SECURITY
SECURITY
SECURITY
ForgeRock shares drop on lower-than-expected outlook
Shares in ForgeRock Inc. dropped in after-hours trading after the digital identity management firm reported a lower-than-expected earnings outlook.
For the quarter ended Dec. 31, ForgeRock reported a loss before costs such as stock compensation of $8 million, or 10 cents per share, compared with net income of $3.5 million, or 10 cents per share, a year ago. Revenue rose 19% year-over-year, to $47.9 million.
Analysts had expected an adjusted loss of 12 cents per share on revenue of $47.11 million.
The company’s annualized recurred revenue ended the quarter at $183.1 million, up 35% from a year ago, while cash, cash equivalents and short-term investments totaled $369.8 million.
“Customer demand for ForgeRock’s innovative platform is stronger than ever as customers leverage our platform to drive their digital transformation initiatives,” Fran Rosch, chief executive officer of ForgeRock, said in a statement. “The adoption of the ForgeRock Identity Cloud, our SaaS offering, has exceeded our expectations and now represents 12% of total ARR after its first full year of availability.”
Providing further insight on the results, John Fernandez, chief financial officer of ForgeRock, noted that “we added a record number of customers with $100,000 of ARR or greater in fourth quarter, bringing our total to 394, representing an acceleration in large customer growth to 21% year-over-year.”
For the full year 2021, a year notable for ForgeRock as it went public in September, the company reported an adjusted loss of $37 million, or 89 cents per share, compared with a loss of $34.8 million, or $1.46 per share, in 2020. Revenue in 2021 rose 39%, to $176.9 million.
Looking forward, ForgeRock is predicting an adjusted loss of $12.5 million to $13.5 million, or 16 to 18 cents per share. Revenue is expected to come in at $46 million to $47 million. Analysts had expected an adjusted loss of 10 cents per share on revenue of $46.9 million.
For the full year, the company expects an adjusted loss of 34 to 38 cents on revenue of $212 million to $215 million.
Despite being slightly up on expectations for the fourth quarter, investors paid more attention to ForgeRock’s outlook, so its shares dropped almost 7% after the bell.
Image: ForgeRock
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