September 30, 2022

Robotic Notes

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ForgeRock shares drop on lower-than-expected outlook

2 min read

Shares in ForgeRock Inc. dropped in after-hours trading after the digital identity management firm reported a lower-than-expected outlook in its latest earnings report.

For the quarter ending Dec. 31, ForgeRock reported a non-generally accepted accounting principles net loss of $ 8 million or 10 cents per share compared to a net income of $ 3.5 million or 10 cents per share in the fourth quarter of 2020. Revenue came in at $ 47.9 million, up 19 % year-over-year.

Analysts had expected an EPS 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% compared to Dec. 31, 2020, while cash, cash equivalents and short-term investors 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 the 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 a non-GAAP loss of $ 37 million or 89 cents per share, compared to a loss of $ 34.8 million or $ 1.46 per share in 2020. Revenue in 2021 came in at $ 176.9 million, up 39% year-over-year.

Looking forward, ForgeRock is predicting a non-GAAP loss of between $ 12.5 million and $ 13.5 million or 16 cents to 18 cents per share. Revenue is expected to come in at $ 46 million to $ 47 million. Analysts had expected an EPS loss of 10 cents per share on revenue of $ 46.9 million.

For the full year, the company said it expects a non-GAAP EPS loss of between 34 cents and 38 cents on revenue of $ 212 million to $ 215 million.

Despite being slightly up on expectations in the fourth quarter, investors paid more attention to ForgeRock’s outlook and that’s represented in the company’s share price. ForgeRock shares dropped 6.74% after the bell to be sitting at $ 15.50 as of 4.47 pm EST.

Image: ForgeRock

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