ForgeRock IPO Filing Reveals Surging Sales, Growing Channel

Digital identity vendor ForgeRock revealed robust sales and an accelerated channel selling motion, with partners generating leads that resulted in 44 percent of the company’s new annual recurring revenue.


ForgeRock became the third cybersecurity company to pursue an initial public offering this year, revealing skyrocketing sales, significant losses, and a rapidly growing channel program.

The San Francisco-based digital identity vendor said 44 percent of the company’s new annual recurring revenue (ARR) in 2020 was sourced through leads originating from channel partners, up from 31 percent of new ARR in 2019 and just 15 percent of ARR in 2018. ForgeRock’s channel blitz has led to surging sales as the company looks to raise up to $100 million in a New York Stock Exchange public offering.

“Our strong network of strategic global channel partners source and influence opportunities for us, providing leverage and execution capabilities,” the firm said in a filing with the U.S. 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.”

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[Related: ForgeRock IPO Expected In 2021 With Valuation Of Over $3B: Report]

ForgeRock intends to use the net proceeds of its IPO for general corporate purposes, including working capital, operating expenses, and capital expenditures. The company plans to be listed under the ticker symbol FORG.

The company said its partner ecosystem includes global systems integrators such as Accenture, Deloitte, and PwC as well as regional consulting firms and implementation partners who provide subject matter expertise and referrals. ForgeRock also works with strategic alliance partners like Google Cloud as well as more than 120 technology partners such as LexisNexis Risk Solutions, OneTrust, Onfido, and BioCatch.

ForgeRock has experienced robust growth in recent years, according to its 197-page filing with the SEC late Monday, with sales jumping to $127.6 million in 2020, up 22.1 percent from $104.5 million in 2019. However, the company’s net loss jumped 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 expect our operating expenses to continue to increase over the next several years as we hire additional personnel, particularly in sales and marketing, expand and improve the effectiveness of our distribution channels, expand our operations and infrastructure, both domestically and internationally, pursue business combinations, and continue to develop our platform,” ForgeRock wrote in its filing.

International sales accounted for 52 percent of ForgeRock’s revenue in 2020, down from 56 percent in 2019. The company currently has international operations in Canada, France, Germany, Norway, Sweden, the United Kingdom, Australia, New Zealand, and Singapore, and said it may continue to expand its international operations in these jurisdictions or other countries in the future.

Global systems integrators promote ForgeRock’s platform as part of large-scale digital transformation projects they drive by identifying opportunities in which the company’s platform can help accelerate business initiatives and improve user experience. ForgeRock said it provides some partners with specific training and programs to assist them in selling access to the company’s platform, protracting deal cycles.

“We employ a go-to-market business model whereby a meaningful portion of our revenue is generated by sales through our strategic global channel partners, including global strategic consulting firms and global systems integrators, that further expand the reach of our direct sales force into additional geographies, sectors and industries,” ForgeRock wrote in its S-1 filing.

ForgeRock’s IPO filing comes less than two months after Mountain View, Calif.-based endpoint security vendor SentinelOne raised $1.2 billion on a $10 billion valuation in a New York Stock Exchange public offering. Two months before that, Clearwater, Fla.-based security awareness training vendor KnowBe4 raised $152 million on a $2.6 billion valuation in a Nasdaq initial public offering.

ForgeRock was founded in 2010 and has raised $233.7 million in five rounds of outside funding, Crunchbase said. The company employed 758 people as of June 30, 2021, up 17.5 percent from 645 employees a year earlier. ForgeRock’s sole acquisition took place in February 2011, when it acquired web access management systems vendor ApexIdentity for an undisclosed amount.

The company had more than 1,300 customers as of June 30, with 353 of those customers recording more than $100,000 of annual recurring revenue (ARR) with ForgeRock. Those large customers accounted for 88 percent of ForgeRock’s ARR as of June 30, while the company’s 650 direct customers accounted for 98 percent of the company’s revenue in the first half of 2021.