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Earnings To Watch: ForgeRock (FORG) Reports Q2 Results Tomorrow


Radek Strnad /
2022/08/10 5:27 am EDT
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Cybersecurity software provider ForgeRock (NYSE: FORG) will be reporting results tomorrow after market hours. Here's what to look for.

Last quarter ForgeRock reported revenues of $48 million, up 13.4% year on year, beating analyst revenue expectations by 3.35%. It was a weaker quarter for the company, with an underwhelming revenue guidance for the next quarter and a slow revenue growth.

Is ForgeRock buy or sell heading into the earnings? Read our full analysis here, it's free.

This quarter analysts are expecting ForgeRock's revenue to grow 7.34% year on year to $47.1 million, slowing down from the 49.4% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.22 per share.

ForgeRock Total Revenue

Majority of analysts covering the company have reconfirmed their estimates over the last thirty days, suggesting they are expecting the business to stay the course heading into the earnings. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 6.7%.

Looking at ForgeRock's peers in the cybersecurity segment, some of them have already reported Q2 earnings results, giving us a hint of what we can expect. Tenable delivered top-line growth of 26.1% year on year, beating analyst estimates by 0.66% and Qualys reported revenues up 20.2% year on year, exceeding estimates by 2%. Tenable traded down 10.5% on the results, and Qualys was up 3.14%. Read our full analysis of Tenable's results here and Qualys's results here.

There has been positive sentiment among investors in the software segment, with the stocks up on average 5.69% over the last month. ForgeRock is up 0.82% during the same time, and is heading into the earnings with analyst price target of $23.6, compared to share price of $22.79.

One way to find opportunities in the market is to watch for generational shifts in the economy. Almost every company is slowly finding itself becoming a technology company and facing cybersecurity risks and as a result, the demand for cloud-native cybersecurity is skyrocketing. This company is leading a massive technological shift in the industry and with revenue growth of 70% year on year and best-in-class SaaS metrics it should definitely be on your radar.

The author has no position in any of the stocks mentioned.