William Blair initiated research coverage of ForgeRock, Inc. (FORG $33.80), a leading provider of identity access management solutions that help enterprises manage, secure, govern, and streamline their identity infrastructure. The company offers a platform solution across workforce, consumer, IGA (identity governance), and IoT use-cases that can be deployed on-premises, in the public/private cloud, or via SaaS.
Analyst Jonathan Ho estimates ForgeRock to generate revenue of $168 million in 2021 and $201 million in 2022. He expects the company to grow annual recurring revenue (ARR) at 25% to 30% over the next few years while also delivering operating leverage.
“ForgeRock offers a unique identity access management platform,” Ho said. “ForgeRock’s solution was purpose-built for the enterprise market, which means it has many features and capabilities that were designed for more complex use-cases across hybrid environments. We believe the company will benefit from secular tailwinds in major trends where identity access management is moving to the forefront as the primary perimeter for securing users, applications, and data. Management estimates its worldwide market opportunity for global identities to be $71 billion across consumer, workforce, IGA, and IoT use-cases. We believe the market is still lightly penetrated in the consumer use-case arena, with many enterprises also transitioning off legacy products that have been discontinued or are no longer actively supported. Emerging use-cases in areas such as IoT are in their infancy. We believe ForgeRock is well positioned to capitalize on these trends, based on its purpose-built, highly scalable, and enterprise-grade identity access management platform that can serve all identity use-cases.”
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Outperform (Buy): 76%
Market Perform (Hold): 23%
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