forgerock It filed its Form S-1 with the Securities and Exchange Commission (SEC) this morning as the identity management provider takes the next step toward its IPO.
The company did not provide initial pricing for its shares, which would trade on the New York Stock Exchange under the FORG symbol. The IPO is led by Morgan Stanley and JPMorgan Chase & Co, according to which the company is valued at $4 billion. bloomberg, which is a significant uptick from the post-money value of $730 million pitch book Was for the company after its final round in 2020.
With the ever-increasing amount of cyber security attacks against organizations of all sizes, the need to secure and manage user identities is increasing. Based in San Francisco, ForgeRock has raised $233 million in funding across multiple rounds. The last round of the company was a $93.5 million Series E Announced in April 2020, it was led by Riverwood Capital with Accenture Ventures. At the time, CEO Frank Roche told that this round would be the last before the IPO, which is what former CEO Mike Ellis told us after the startup. $88 million Series D in September 2017.
Although the timing of its IPO has not been clear over the years, the company is on a positive path for growth. in his S1, ForgeRock reported that as of June 30, it had annual recurring revenue (ARR) of $155 million, representing 30% year-over-year growth.
While revenue is rising, losses are narrowing as the company reported a net loss of $20 million from $36 million a year ago. There is certainly a lot of room to grow, as the company estimates the total global addressable market for identity services to be $71 billion.
Among the many competitors facing ForgeRock is Okta, which went public in 2017 and has been growing over the years since then. In March, Oktas acquired Cloud identity startup Auth0 in $6.5 billion deal raised some eyebrows. Another competitor is Ping Identity, which went public in 2019 and continues to grow, reporting on August 4 that its ARR generated $279.6 million for the quarter ended June 30, up 19% year-over-year. was for profit. There have also been some major exits to space over the years, including the Duo Security, which was acquired by cisco for $2.35 billion in 2018.
“ForgeRock has a great access management tool and remains a strong player in Customer Identity and Access Management (CIAM),” commented Michael Kelly, Senior Research Director at Gartner.
Kelly noted that in 2020, ForgeRock switched most of its core access management services to the SaaS delivery model, helping the company catch up with the rest of the market, which already offered access management in the form of SaaS. Used to do Also last year the company expanded into identity governance, introducing a new Identity, Governance and Governance (IGA) product.
“I think one of the more interesting products ForgeRock has to offer is ForgeRock Trees, a no-code/low-code orchestration tool for building complex authentication and authorization journeys for customers, particularly CIAM is instrumental in the market,” Kelly said. .
ForgeRock was founded in 2010, but its roots go back to the open-source single sign-on project known as OpenSSO, created in 2005 by Sun Microsystems. When Oracle acquired Sun Microsystems in early 2010, many of its open-source efforts were abandoned to end, leading many former Sun employees to start ForgeRock.
Over the past decade, ForgeRock has expanded significantly beyond just providing one sign-on to provide an identity platform that can handle consumer, enterprise and IoT use-cases. The company’s platform today handles identity and access management as well as identity governance.
The ability to scale is a major selling point that ForgeRock makes in the S-1, given that its platform can handle more than 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. Enables us to grow our base of customers and expand within each of them. “