ForgeRock Announces Strong Fourth Quarter and Full Year 2022 Financial Results
ForgeRock, Inc. (NYSE: FORG) reported strong financial results for Q4 and fiscal year 2022, highlighting a 25% increase in Annualized Recurring Revenue (ARR) to $229.6 million and a 23% rise in total revenue to $217.5 million year-over-year. Q4 revenue surged by 33% to $63.5 million. Subscription SaaS revenue grew by 39% to $119.0 million, representing 55% of total revenue. Despite a GAAP net loss of $66.3 million for the year, non-GAAP metrics showed improvement, with a reduced operating loss of $27.6 million. Additionally, a proposed acquisition by Thoma Bravo is pending regulatory review, with no guidance provided due to the transaction.
- Annualized Recurring Revenue (ARR) increased by 25% to $229.6 million.
- Total revenue grew by 23% to $217.5 million.
- Subscription SaaS revenue rose 39% to $119.0 million, now 55% of total revenue.
- Non-GAAP operating loss improved to $(27.6) million from $(17.8) million in 2021.
- GAAP net loss increased to $66.3 million in 2022 from $47.8 million in 2021.
- GAAP operating loss was $(66.6) million, worsening from $(28.4) million the previous year.
- Net cash used in operations increased to $(45.0) million from $(36.8) million in 2021.
-
ARR was
for Q4 2022, growing$229.6 million 25% year-over-year -
Total revenue was
in 2022, growing$217.5 million 23% year-over-year -
Subscription SaaS, Support & Maintenance revenue was
in 2022, growing$119.0 million 39% year-over-year
“We ended 2022 with
“Our revenue grew
Fourth Quarter 2022 Financial Highlights:
-
ARR: Annualized Recurring Revenue was
, an increase of$229.6 million 25% year-over-year. -
Revenue: Total revenue was
, an increase of$63.5 million 33% year-over-year. -
Operating Loss: GAAP operating loss was
, or (25)% of total revenue, compared to$15.9 million , or (22)% of total revenue, in the fourth quarter of 2021. Non-GAAP operating loss was$10.4 million , or (2)% of total revenue, compared to$1.4 million , or (13)% of total revenue, in the fourth quarter of 2021.$6.1 million -
Net Loss: GAAP net loss was
, compared to$16.5 million in the fourth quarter of 2021. GAAP net loss per share was$12.4 million , compared to$0.19 in the fourth quarter of 2021. Non-GAAP net loss was$0.15 , compared to$2.0 million in the fourth quarter of 2021. Non-GAAP net loss per share was$8.1 million , compared to$0.02 in the fourth quarter of 2021.$0.10 -
Cash Flow: Net cash used in operations was
, compared to$14.0 million in the fourth quarter of 2021. Free cash flow was$5.4 million , or (22)% of total revenue, compared to$(14.1) million , or (13)% of total revenue, in the fourth quarter of 2021.$(6.1) million -
Cash, cash equivalents and short-term investments were
as of$336.1 million December 31, 2022 .
Full Year 2022 Financial Highlights:
-
Revenue: Total revenue was
, an increase of$217.5 million 23% year-over-year. -
Operating Loss: GAAP operating loss was
, or (31)% of total revenue, compared to$66.6 million , or (16)% of total revenue, in 2021. Non-GAAP operating loss was$28.4 million , or (13)% of total revenue, compared to$27.6 million or (10)% of total revenue in 2021.$17.8 million -
Net Loss: GAAP net loss was
compared to$66.3 million in 2021. GAAP net loss per share was$47.8 million compared to$0.78 in 2021. Non-GAAP net loss was$1.14 , compared to$27.0 million in 2021. Non-GAAP net loss per share was$37.0 million , compared to$0.32 in 2021.$0.89 -
Cash Flow: Net cash used in operations was
, compared to$45.0 million in 2021. Free cash flow was$36.8 million , or (21)% of total revenue, compared to$(46.6) million , or (21)% of total revenue in 2021.$(37.9) million
Transaction with
As previously reported, the
Due to the Company's pending acquisition by
Supplemental Financial and Other Information:
Supplemental financial and other information can be accessed through
Non-GAAP Financial Measures and Key Metrics:
Besides financial results prepared in accordance with
The non-GAAP financial information is presented for supplemental informational purposes only and should not be considered a substitute for financial information presented in accordance with GAAP and may be different from similarly-titled non-GAAP measures used by other companies. The principal limitation of these non-GAAP financial measures is that they exclude expenses that are required by GAAP to be recorded in our consolidated financial statements. In addition, they are subject to inherent limitations as they reflect the exercise of judgment by our management about which expenses are excluded or included in determining these non-GAAP financial measures. A reconciliation is provided below for each non-GAAP financial measure to the most directly comparable financial measure stated in accordance with GAAP. Investors are encouraged to review the related GAAP financial measures and the reconciliation of these non-GAAP financial measures to their most directly comparable GAAP financial measures.
ARR does not have a standardized meaning and therefore may not be comparable to similarly titled measures presented by other companies. ARR should be viewed independently of revenue, deferred revenue and remaining performance obligations computed and/or disclosed in accordance with GAAP and is not intended to be combined with or to replace any of those items. Specifically, ARR, as calculated under the definition herein, has the effect of normalizing the impact of revenue recognition for term-based subscription license agreements. ARR is calculated based upon annualized contract value and not actual GAAP revenue. Under ASC 606, for term-based subscription license agreements, we recognize approximately half of the total contract value upfront as license revenue, with the remainder attributable to maintenance and support that is recognized ratably over the license term. Annualizing actual GAAP revenue for any particular period could result in a meaningful difference from our ARR calculation, particularly when we are experiencing increases or decreases in the mix of multi-year term licenses. ARR is not a forecast and the active contracts at the date used in calculating ARR may or may not be extended by our customers.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements generally relate to future events or ForgeRock’s future financial or operating performance. In some cases, you can identify forward-looking statements because they contain words such as "may," "will," "should," "expects," "plans," "anticipates,” “going to,” "could," "intends," "target," "projects," "contemplates," "believes," "estimates," "predicts," "potential," "continue" or the negative of these words or other similar terms or expressions that concern ForgeRock’s expectations, strategy, priorities, plans or intentions. Forward-looking statements in this release include, but are not limited to the quotations of management, statements regarding the proposed acquisition by entities affiliated with
Past performance is not necessarily indicative of future results. The forward-looking statements included in this press release represent our views as of the date of this press release. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release. We anticipate that subsequent events and developments could cause our views to change. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
About
ForgeRock®, a global leader in digital identity, delivers modern identity and access management solutions for consumers, employees and things to simply and safely access the connected world. Using
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
|
|
||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Revenue: |
|
|
|
|
|
|
|
||||||||
Subscription term licenses |
$ |
28,203 |
|
|
$ |
21,662 |
|
|
$ |
87,292 |
|
|
$ |
84,611 |
|
Subscription SaaS, support & maintenance |
|
31,974 |
|
|
|
23,891 |
|
|
|
119,003 |
|
|
|
85,434 |
|
Perpetual licenses |
|
318 |
|
|
|
810 |
|
|
|
515 |
|
|
|
1,695 |
|
Total subscriptions and perpetual licenses |
|
60,495 |
|
|
|
46,363 |
|
|
|
206,810 |
|
|
|
171,740 |
|
Professional services |
|
3,028 |
|
|
|
1,541 |
|
|
|
10,702 |
|
|
|
5,193 |
|
Total revenue |
|
63,523 |
|
|
|
47,904 |
|
|
|
217,512 |
|
|
|
176,933 |
|
Cost of revenue: |
|
|
|
|
|
|
|
||||||||
Subscriptions and perpetual licenses |
|
8,865 |
|
|
|
5,223 |
|
|
|
27,768 |
|
|
|
17,535 |
|
Professional services |
|
3,080 |
|
|
|
4,735 |
|
|
|
11,772 |
|
|
|
15,393 |
|
Total cost of revenue(1) |
|
11,945 |
|
|
|
9,958 |
|
|
|
39,540 |
|
|
|
32,928 |
|
Gross profit |
|
51,578 |
|
|
|
37,946 |
|
|
|
177,972 |
|
|
|
144,005 |
|
Operating expenses: |
|
|
|
|
|
|
|
||||||||
Research and development(1) |
|
16,138 |
|
|
|
12,283 |
|
|
|
61,837 |
|
|
|
43,497 |
|
Sales and marketing(1) |
|
32,793 |
|
|
|
23,825 |
|
|
|
118,794 |
|
|
|
88,620 |
|
General and administrative(1) |
|
14,694 |
|
|
|
12,237 |
|
|
|
57,724 |
|
|
|
40,329 |
|
Acquisition-related costs |
|
3,809 |
|
|
|
— |
|
|
|
6,173 |
|
|
|
— |
|
Total operating expenses |
|
67,434 |
|
|
|
48,345 |
|
|
|
244,528 |
|
|
|
172,446 |
|
Operating loss |
|
(15,856 |
) |
|
|
(10,399 |
) |
|
|
(66,556 |
) |
|
|
(28,441 |
) |
Foreign currency gain (loss) |
|
(1,066 |
) |
|
|
(816 |
) |
|
|
2,568 |
|
|
|
(3,819 |
) |
Fair value adjustment on warrants and preferred stock tranche option |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(10,068 |
) |
Interest expense |
|
(903 |
) |
|
|
(945 |
) |
|
|
(3,577 |
) |
|
|
(4,516 |
) |
Other income (expense), net |
|
1,906 |
|
|
|
24 |
|
|
|
2,971 |
|
|
|
(40 |
) |
Interest and other expense, net |
|
(63 |
) |
|
|
(1,738 |
) |
|
|
1,962 |
|
|
|
(18,443 |
) |
Loss before income taxes |
|
(15,919 |
) |
|
|
(12,138 |
) |
|
|
(64,594 |
) |
|
|
(46,884 |
) |
Provision for income taxes |
|
575 |
|
|
|
223 |
|
|
|
1,678 |
|
|
|
884 |
|
Net loss |
$ |
(16,494 |
) |
|
$ |
(12,361 |
) |
|
$ |
(66,272 |
) |
|
$ |
(47,768 |
) |
|
|
|
|
|
|
|
|
||||||||
Net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
$ |
(0.19 |
) |
|
$ |
(0.15 |
) |
|
$ |
(0.78 |
) |
|
$ |
(1.14 |
) |
Weighted-average shares used in computing net loss per share attributable to common stockholders: |
|
|
|
|
|
|
|
||||||||
Basic and diluted |
|
86,124 |
|
|
|
81,979 |
|
|
|
84,885 |
|
|
|
41,742 |
|
|
|
|
|
|
|
|
|
||||||||
(1) Includes stock-based compensation as follows (in thousands): |
|||||||||||||||
|
Three months ended
|
|
Year ended
|
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Cost of revenue |
$ |
1,062 |
|
|
$ |
424 |
|
|
$ |
2,852 |
|
|
$ |
617 |
|
Research and development |
|
2,053 |
|
|
|
867 |
|
|
|
6,738 |
|
|
|
1,924 |
|
Sales and marketing |
|
4,186 |
|
|
|
1,449 |
|
|
|
12,044 |
|
|
|
3,495 |
|
General and administrative |
|
3,303 |
|
|
|
1,530 |
|
|
|
11,126 |
|
|
|
4,630 |
|
Total stock-based compensation expense |
$ |
10,604 |
|
|
$ |
4,270 |
|
|
$ |
32,760 |
|
|
$ |
10,666 |
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|
||||||
|
|
||||||
|
|
2022 |
|
|
|
2021 |
|
Assets |
|
|
|
||||
Cash and cash equivalents |
$ |
128,803 |
|
|
$ |
128,381 |
|
Short-term investments |
|
207,248 |
|
|
|
241,411 |
|
Accounts receivable, net of allowance for credit losses of |
|
71,439 |
|
|
|
55,999 |
|
Contract assets |
|
25,117 |
|
|
|
19,670 |
|
Deferred commissions |
|
9,936 |
|
|
|
8,457 |
|
Prepaid expenses and other assets |
|
14,810 |
|
|
|
9,787 |
|
Total current assets |
|
457,353 |
|
|
|
463,705 |
|
Deferred commissions |
|
20,379 |
|
|
|
15,601 |
|
Property and equipment, net |
|
2,850 |
|
|
|
2,463 |
|
Operating lease right-of-use assets |
|
10,190 |
|
|
|
12,626 |
|
Contract and other assets |
|
3,408 |
|
|
|
2,783 |
|
Total assets |
$ |
494,180 |
|
|
$ |
497,178 |
|
|
|
|
|
||||
Liabilities and stockholders’ equity |
|
|
|
||||
Accounts payable |
$ |
4,587 |
|
|
$ |
2,039 |
|
Accrued expenses |
|
34,311 |
|
|
|
27,375 |
|
Current portion of operating lease liability |
|
1,902 |
|
|
|
1,820 |
|
Deferred revenue |
|
82,036 |
|
|
|
67,222 |
|
Other liabilities |
|
2,927 |
|
|
|
2,258 |
|
Total current liabilities |
|
125,763 |
|
|
|
100,714 |
|
Long-term debt |
|
39,611 |
|
|
|
39,483 |
|
Long-term operating lease liability |
|
9,207 |
|
|
|
11,037 |
|
Deferred revenue |
|
1,283 |
|
|
|
8,172 |
|
Other liabilities |
|
2,150 |
|
|
|
1,646 |
|
Total liabilities |
|
178,014 |
|
|
|
161,052 |
|
|
|
|
|
||||
Stockholders’ equity |
|
|
|
||||
Common stock |
|
87 |
|
|
|
83 |
|
Additional paid-in capital |
|
641,983 |
|
|
|
593,196 |
|
Accumulated other comprehensive income |
|
4,193 |
|
|
|
6,672 |
|
Accumulated deficit |
|
(330,097 |
) |
|
|
(263,825 |
) |
Total stockholders’ equity |
|
316,166 |
|
|
|
336,126 |
|
Total liabilities and stockholders’ equity |
$ |
494,180 |
|
|
$ |
497,178 |
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||
(In thousands) |
|||||||
(Unaudited) |
|||||||
|
|
||||||
|
Year ended |
||||||
|
|
2022 |
|
|
|
2021 |
|
Operating activities: |
|
|
|
||||
Net loss |
$ |
(66,272 |
) |
|
$ |
(47,768 |
) |
Adjustments to reconcile net loss to net cash used in operating activities: |
|
|
|
||||
Depreciation |
|
1,064 |
|
|
|
1,061 |
|
Noncash operating lease expense |
|
2,449 |
|
|
|
1,931 |
|
Stock-based compensation expense |
|
32,760 |
|
|
|
10,666 |
|
Amortization of deferred commissions |
|
15,235 |
|
|
|
13,964 |
|
Foreign currency remeasurement loss (gain) |
|
(2,711 |
) |
|
|
3,032 |
|
Change in fair value of redeemable convertible preferred stock warrant liability |
|
— |
|
|
|
5,871 |
|
Change in fair value of preferred stock tranche option liability |
|
— |
|
|
|
4,157 |
|
Amortization of premium / discount on short-term investments |
|
1,156 |
|
|
|
1,330 |
|
Other |
|
(169 |
) |
|
|
266 |
|
Changes in operating assets and liabilities: |
|
|
|
||||
Deferred commissions |
|
(21,487 |
) |
|
|
(23,273 |
) |
Accounts receivable |
|
(13,371 |
) |
|
|
(20,669 |
) |
Contract and other non-current assets |
|
(5,104 |
) |
|
|
(10,505 |
) |
Prepaid expenses and other current assets |
|
(2,323 |
) |
|
|
(6,025 |
) |
Operating lease liabilities |
|
(1,733 |
) |
|
|
(2,377 |
) |
Accounts payable |
|
2,514 |
|
|
|
701 |
|
Accrued expenses and other liabilities |
|
7,422 |
|
|
|
10,863 |
|
Deferred revenue |
|
5,564 |
|
|
|
19,992 |
|
Net cash used in operating activities |
|
(45,006 |
) |
|
|
(36,783 |
) |
Investing activities: |
|
|
|
||||
Purchases of property and equipment |
|
(1,619 |
) |
|
|
(1,113 |
) |
Purchases of short-term investments |
|
(166,363 |
) |
|
|
(277,126 |
) |
Maturities of short-term investments |
|
158,615 |
|
|
|
31,860 |
|
Sales of short-term investments |
|
39,379 |
|
|
|
1,933 |
|
Net cash provided by (used in) investing activities |
|
30,012 |
|
|
|
(244,446 |
) |
Financing activities: |
|
|
|
||||
Proceeds from initial public offering, net of underwriting discounts and commissions |
|
— |
|
|
|
295,694 |
|
Payment of stock offering costs |
|
(145 |
) |
|
|
(6,038 |
) |
Proceeds from exercises of employee stock options |
|
12,237 |
|
|
|
4,902 |
|
Proceeds from issuance of common stock under employee stock purchase plan |
|
6,961 |
|
|
|
— |
|
Proceeds from issuance of redeemable convertible preferred stock |
|
— |
|
|
|
19,951 |
|
Employee payroll taxes paid for net shares settlement of restricted stock units |
|
(3,154 |
) |
|
|
(3,877 |
) |
Principal repayments on debt |
|
— |
|
|
|
(120 |
) |
Net cash provided by financing activities |
|
15,899 |
|
|
|
310,512 |
|
Effect of exchange rates on cash and cash equivalents and restricted cash |
|
1,982 |
|
|
|
(888 |
) |
Net increase in cash, cash equivalents and restricted cash |
|
2,887 |
|
|
|
28,395 |
|
Cash, cash equivalents and restricted cash, beginning of year |
|
128,437 |
|
|
|
100,042 |
|
Cash, cash equivalents and restricted cash, end of period |
$ |
131,324 |
|
|
$ |
128,437 |
|
|
|
|
|
||||
Supplementary cash flow disclosure: |
|
|
|
||||
Short-term investments, end of period |
$ |
207,248 |
|
|
$ |
241,411 |
|
Cash paid for interest |
|
3,244 |
|
|
|
3,629 |
|
Cash paid for income taxes |
|
1,245 |
|
|
|
769 |
|
Deferred offering costs accrued but not yet paid |
|
— |
|
|
|
(145 |
) |
Conversion of redeemable convertible preferred stock to common stock |
|
— |
|
|
|
263,178 |
|
|
|
|
|
||||
Reconciliation of cash and cash equivalents and restricted cash: |
|
|
|
||||
Cash and cash equivalents |
$ |
128,803 |
|
|
$ |
128,381 |
|
Restricted cash included in prepaids and other current assets |
|
2,521 |
|
|
|
56 |
|
Total cash and cash equivalents and restricted cash |
$ |
131,324 |
|
|
$ |
128,437 |
|
|
|||||||||||||||
NON-GAAP FINANCIAL MEASURES AND RECONCILIATIONS TO GAAP RESULTS |
|||||||||||||||
|
|||||||||||||||
Non-GAAP Gross Profit and Non-GAAP Gross Margin |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
Gross profit is defined as GAAP revenue less cost of revenue and gross margin is GAAP gross profit as a percentage of total revenue. We define non-GAAP gross profit and non-GAAP gross margin as GAAP gross profit and GAAP gross margin adjusted to exclude stock-based compensation expense, as presented below (in thousands, except percentages): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Gross Profit |
$ |
51,578 |
|
|
$ |
37,946 |
|
|
$ |
177,972 |
|
|
$ |
144,005 |
|
Add: stock-based compensation included in cost of revenue |
|
1,062 |
|
|
|
424 |
|
|
|
2,852 |
|
|
|
617 |
|
Non-GAAP gross profit |
$ |
52,640 |
|
|
$ |
38,370 |
|
|
$ |
180,824 |
|
|
$ |
144,622 |
|
|
|
|
|
|
|
|
|
||||||||
Gross margin |
|
81 |
% |
|
|
79 |
% |
|
|
82 |
% |
|
|
81 |
% |
Non-GAAP gross margin |
|
83 |
% |
|
|
80 |
% |
|
|
83 |
% |
|
|
82 |
% |
|
|
|
|
|
|
|
|
||||||||
|
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP research and development as GAAP research and development adjusted to exclude stock-based compensation expense, as presented below (in thousands): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Research and development |
$ |
16,138 |
|
|
$ |
12,283 |
|
|
$ |
61,837 |
|
|
$ |
43,497 |
|
Less: Stock-based compensation |
|
2,053 |
|
|
|
867 |
|
|
|
6,738 |
|
|
|
1,924 |
|
Non-GAAP research and development |
$ |
14,085 |
|
|
$ |
11,416 |
|
|
$ |
55,099 |
|
|
$ |
41,573 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Sales and Marketing |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP sales and marketing as GAAP sales and marketing adjusted to exclude stock-based compensation expense, as presented below (in thousands): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Sales and marketing |
$ |
32,793 |
|
|
$ |
23,825 |
|
|
$ |
118,794 |
|
|
$ |
88,620 |
|
Less: Stock-based compensation |
|
4,186 |
|
|
|
1,449 |
|
|
|
12,044 |
|
|
|
3,495 |
|
Non-GAAP sales and marketing |
$ |
28,607 |
|
|
$ |
22,376 |
|
|
$ |
106,750 |
|
|
$ |
85,125 |
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP General and Administrative |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP general and administrative as GAAP general and administrative adjusted to exclude stock-based compensation expense, as presented below (in thousands): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
General and administrative |
$ |
14,694 |
|
|
$ |
12,237 |
|
|
$ |
57,724 |
|
|
$ |
40,329 |
|
Less: Stock-based compensation |
|
3,303 |
|
|
|
1,530 |
|
|
|
11,126 |
|
|
|
4,630 |
|
Non-GAAP general and administrative |
$ |
11,391 |
|
|
$ |
10,707 |
|
|
$ |
46,598 |
|
|
$ |
35,699 |
|
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Operating Loss and Non-GAAP Operating Margin |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP operating loss and non-GAAP operating margin as GAAP operating loss and GAAP operating margin adjusted to exclude stock-based compensation expense and acquisition-related costs, as presented below (in thousands, except percentages): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating loss |
$ |
(15,856 |
) |
|
$ |
(10,399 |
) |
|
$ |
(66,556 |
) |
|
$ |
(28,441 |
) |
Add: Stock-based compensation |
|
10,604 |
|
|
|
4,270 |
|
|
|
32,760 |
|
|
|
10,666 |
|
Add: Acquisition-related costs |
|
3,809 |
|
|
|
— |
|
|
|
6,173 |
|
|
|
— |
|
Non-GAAP operating loss |
$ |
(1,443 |
) |
|
$ |
(6,129 |
) |
|
$ |
(27,623 |
) |
|
$ |
(17,775 |
) |
Operating margin |
|
(25 |
) % |
|
|
(22 |
) % |
|
|
(31 |
) % |
|
|
(16 |
) % |
Non-GAAP operating margin |
|
(2 |
) % |
|
|
(13 |
) % |
|
|
(13 |
) % |
|
|
(10 |
) % |
|
|
|
|
|
|
|
|
||||||||
Adjusted EBITDA |
|
|
|
|
|||||||||||
|
|
|
|
|
|
|
|
||||||||
We define adjusted EBITDA as operating loss adjusted to exclude depreciation, stock-based compensation expense and acquisition-related costs, as presented below (in thousands): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Operating loss |
$ |
(15,856 |
) |
|
$ |
(10,399 |
) |
|
$ |
(66,556 |
) |
|
$ |
(28,441 |
) |
Add: Depreciation |
|
252 |
|
|
|
266 |
|
|
|
1,064 |
|
|
|
1,061 |
|
Add: Stock-based compensation |
|
10,604 |
|
|
|
4,270 |
|
|
|
32,760 |
|
|
|
10,666 |
|
Add: Acquisition-related costs |
|
3,809 |
|
|
|
— |
|
|
|
6,173 |
|
|
|
— |
|
Adjusted EBITDA |
$ |
(1,191 |
) |
|
$ |
(5,863 |
) |
|
$ |
(26,559 |
) |
|
$ |
(16,714 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Non-GAAP Net Income (Loss) and Non-GAAP Net Income (Loss) per Share, Basic and Diluted |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP net loss as GAAP net loss adjusted to exclude stock-based compensation expense and acquisition-related costs, including the tax effect of stock-based compensation expense on the provision for (benefit from) income taxes as presented below (in thousands, except per share amounts): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP net loss per share, basic, as non-GAAP net loss divided by GAAP weighted-average shares used to compute net loss per share, basic. |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define non-GAAP net loss per share, diluted, as non-GAAP net loss divided by GAAP weighted average shares used to compute net loss per share, basic, adjusted for (i) the dilutive effect of employee equity awards, excluding the impact of unrecognized stock-based compensation expense and (ii) warrants; unless these adjustments are anti-dilutive. |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
||||||||
Net loss |
$ |
(16,494 |
) |
|
$ |
(12,361 |
) |
|
$ |
(66,272 |
) |
|
$ |
(47,768 |
) |
Add: Stock-based compensation |
|
10,604 |
|
|
|
4,270 |
|
|
|
32,760 |
|
|
|
10,666 |
|
Add: Acquisition-related costs |
|
3,809 |
|
|
|
— |
|
|
|
6,173 |
|
|
|
— |
|
Tax effect on the provision for income taxes |
|
97 |
|
|
|
40 |
|
|
|
295 |
|
|
|
76 |
|
Non-GAAP net loss |
$ |
(1,984 |
) |
|
$ |
(8,051 |
) |
|
$ |
(27,044 |
) |
|
$ |
(37,026 |
) |
|
|
|
|
|
|
|
|
||||||||
Non-GAAP net loss per share, basic and diluted |
$ |
(0.02 |
) |
|
$ |
(0.10 |
) |
|
$ |
(0.32 |
) |
|
$ |
(0.89 |
) |
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
||||||||
Free Cash Flow |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
We define free cash flow as net cash provided by (used in) operating activities less cash used for purchases of property and equipment as presented below (in thousands): |
|||||||||||||||
|
|
|
|
|
|
|
|
||||||||
|
Three Months Ended |
|
Year Ended |
||||||||||||
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
Net cash used in operating activities |
$ |
(14,002 |
) |
|
$ |
(5,427 |
) |
|
$ |
(45,006 |
) |
|
$ |
(36,783 |
) |
Purchases of property and equipment |
|
(145 |
) |
|
|
(654 |
) |
|
|
(1,619 |
) |
|
|
(1,113 |
) |
Free cash flow |
$ |
(14,147 |
) |
|
$ |
(6,081 |
) |
|
$ |
(46,625 |
) |
|
$ |
(37,896 |
) |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230227005713/en/
Investor Relations:
investors@forgerock.com
Media Contacts:
kristen.batch@forgerock.com
Source:
FAQ
What were ForgeRock's Q4 2022 financial results?
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