ForgeRock Earnings: What To Look For From FORG

Radek Strnad /
2022/05/10 7:05 am EDT

Cybersecurity software provider ForgeRock (NYSE: FORG) will be reporting results tomorrow after the bell. Here's what to look for.

Last quarter ForgeRock reported revenues of $47.9 million, up 19.3% year on year, beating analyst revenue expectations by 1.69%. It was a mixed quarter for the company, with a decent beat of the top-line results but an underwhelming guidance for the next year.

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 9.74% year on year to $46.5 million, slowing down from the 53.1% year-over-year increase in revenue the company had recorded in the same quarter last year. Adjusted loss is expected to come in at -$0.17 per share.

ForgeRock Total Revenue

The analysts covering the company have been growing increasingly bullish about the business heading into the earnings, with revenue estimates seeing two upwards revisions over the last thirty days. The company has a history of exceeding Wall St's expectations, beating revenue estimates every single time since going public on average by 8.38%.

Looking at ForgeRock's peers in the cybersecurity segment, some of them have already reported Q1 earnings results, giving us a hint of what we can expect. SailPoint delivered top-line growth of 27.1% year on year, beating analyst estimates by 3.2% and Rapid7 reported revenues up 33.9% year on year, exceeding estimates by 2.09%. Both companies (SailPoint and Rapid7) traded flat on the results. Read our full analysis of SailPoint's results here and Rapid7's results here.

Tech stocks have been under pressure since the end of last year and software stocks have not been spared, with share price down on average 25.6% over the last month. ForgeRock is down 28.1% during the same time and is heading into the earnings with analyst price target of $28.5, compared to share price of $15.79.

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.