ForgeRock was the third cybersecurity company to go public this year, showing skyrocketing sales, significant losses, and a rapidly growing channel program.
The San Francisco-based digital identity provider said that 44 percent of the company’s new annual recurring revenue (ARR) in 2020 came from leads from channel partners, up from 31 percent of the new ARR in 2019 and just 15 percent of the ARR in 2018. ForgeRock’s channel blitz spurred sales soaring as the company attempts to raise up to $ 100 million in a public offering on the New York Stock Exchange.
“Our strong network of strategic global sales partners is sourcing and influencing opportunities for us by providing leverage and execution capabilities,” the company said in a filing with the Securities and Exchange Commission. “These strategic global channel partnerships not only provide us with a significant source of lead generation, but also a global network of certified and trained implementation professionals.”
[Related: ForgeRock IPO Expected In 2021 With Valuation Of Over $3B: Report]
ForgeRock intends to use the net proceeds of its initial public offering for general corporate purposes, including working capital, operating costs and capital expenditures. The company plans to be listed under the FORG ticker symbol.
The company’s partner ecosystem includes global system integrators such as Accenture, Deloitte and PwC, as well as regional consultancies and implementation partners who provide expertise and recommendations. ForgeRock also works with strategic alliance partners like Google Cloud as well as with more than 120 technology partners like LexisNexis Risk Solutions, OneTrust, Onfido and BioCatch.
ForgeRock has seen robust growth over the past few years, according to its 197-page filing with the SEC late Monday, with revenue increasing to $ 127.6 million in 2020, up 22.1 percent from 104, $ 5 million in 2019. However, the company’s net loss rose to $ 41.8 million, or $ 1.74 per diluted share in 2020, 13.2 percent worse than a loss of 36.9 $ Million or $ 1.57 per diluted share in 2019.
“We assume that our operating expenses will continue to rise in the next few years as we hire additional staff, especially in sales and marketing, expand our sales channels and improve the effectiveness of our sales channels, our operations and our infrastructure at home and abroad expand our business, continue combinations, and evolve our platform, ”ForgeRock wrote in its submission.
International sales accounted for 52 percent of ForgeRock’s sales in 2020, up from 56 percent in 2019. The company currently has international offices in Canada, France, Germany, Norway, Sweden, United Kingdom, Australia, New Zealand and Singapore – it may be international Further expand activities in these legal systems or other countries in the future.
Global systems integrators are promoting ForgeRock’s platform through large-scale digital transformation projects that drive it forward by identifying ways in which the company’s platform can help accelerate business initiatives and improve user experiences. ForgeRock said it is providing specific training and programs to some partners to help them sell access to the enterprise platform, which is dragging out contract cycles.
“We have a go-to-market business model in which a significant portion of our revenue is generated through sales through our strategic global distribution partners, including global strategic consultancies and global systems integrators, who further expand the reach of our direct sales and additional regions, sectors and Industries, ”ForgeRock wrote in its S-1 filing.
ForgeRock’s IPO comes less than two months after Mountain View, California-based endpoint security provider SentinelOne raised $ 1.2 billion two months earlier, Clearwater, Fla., Security training provider KnowBe4 valued at $ 2.6 billion on an initial public offering on Nasdaq.
ForgeRock was founded in 2010 and has raised $ 233.7 million in five external funding rounds, Crunchbase said. As of June 30, 2021, the company had 758 employees, 17.5 percent more than 645 in the previous year. The sole takeover by ForgeRock took place in February 2011, when the company acquired ApexIdentity, the provider of web access management systems, for an undisclosed amount.
The company had more than 1,300 customers as of June 30, of whom 353 had more than $ 100,000 in annual recurring income (ARR) with ForgeRock. For the 30th time, these major customers