Photo Credit: TheDigitalWay from Pixabay

The global identity and access management market is projected to grow at 15% CAGR from $12.15 billion in 2019 to $31.9 billion by the year 2026. San Francisco-based ForgeRock (NYSE: FORG), a key player in the industry, recently went public and its stock seems to be having a strong run.

ForgeRock’s Offerings

Founded in 2010 by Allan Foster, Hermann Svoren, Jonathan Scudder, Lasse Andresen, Steve Ferris, and Victor Ake, ForgeRock is a digital identity management company that helps organizations monetize customer relationships and address some of the strongest regulations for privacy and consent.

ForgeRock has built a modern digital identity platform called ForgeRock Identity Platform with a differentiated SaaS architecture and identity object modeling approach, allowing enterprises to secure, manage, and govern the identities of consumers, employees, and partners, APIs, microservices, devices, and IoT. Its multi-tenant SaaS environment has been created to enhance data security and sovereignty as well as improve performance.

Its proprietary approach to customer tenant isolation is deployable in a variety of configurations including self-managed environments, such as public and private cloud environments, and through ForgeRock Identity Cloud, its SaaS offering. The identity platform contains a full suite of identity management, access management, identity governance, AI, and powered autonomous identity solutions.

Its platform can handle large usage spikes and is able to support over 60,000 user-based access transactions per second per customer or 216 million per hour. More than 1,300 organizations around the world leverage its platform to collectively manage over three billion identities.

ForgeRock recently announced new features to ForgeRock Identity Cloud to assist enterprises to overcome barriers created by passwords when moving to the cloud with Pass-Through Authentication and Just-in-Time Migration. Pass-Through-Authentication allows customers that need to move to the cloud and keep passwords on-premises to use existing user IDs and passwords by authenticating against all identity stores. The feature also simplifies implementation and reduces associated IT costs. The Just-in-Time Migration feature allows enterprises to migrate to the ForgeRock Identity Cloud without forcing customers to change passwords. Organizations have the ability to choose to migrate users gradually to enable a phased approach to the cloud, reducing unnecessary risks during migration. The approach provides the flexibility to keep passwords on-premises for organizations that have stricter regulatory or other compliance needs.

The identity access management market is a crowded one. ForgeRock faces competition from big players like Microsoft and Dell, along with niche players like Okta and Centrify. But its offerings have been received well in the market. It has been recognized as a leader by Forrester and KuppingerCole in the customer identity and access management (CIAM), and by Gartner in the Access Management market.

ForgeRock’s Financials

Its revenue in 2020 grew 22.1% to $127.6 million from $104.5 million in 2019. Net loss fell from $36.9 million in 2019 to $41.8 million in 2020.

For the six months ended June 30 2021, its revenues grew 53.1% to $84.8 million. Net losses dropped from $36 million a year ago to $20.1 million.

ForgeRock recently announced its third-quarter results. Revenues grew 38% to $44.2 million and net loss was $0.35 per share.

ForgeRock went public in September this year. Before going public, it had raised $233.7 million in five rounds of funding from investors including Kohlberg Kravis Roberts, Accel, Foundation Capital, Riverwood Capital, and Meritech Capital Partners. The most recent round was held in April 2020 for $93.5 million. It raised $275 million through its IPO at a list price of $25 and valuation of $2 billion. Its stock is currently trading at $21.46 with a market capitalization of $1.77 billion.