FORG - Earnings call transcript Q1 2022

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Operator

Good day ladies and gentlemen and welcome to ForgeRock's First Quarter Earnings Conference Call.

As a reminder, this call is being recorded. I would like to turn the call over to Mark Kang, ForgeRock’s Head of Investor Relations. Please go ahead.

Mark Kang

Hello, everyone. XXXX call. QX ForgeRock’s to earnings conference Welcome

On CEO our of with me Chief Fran Rosch, today are Operations. ForgeRock; Global Officer EVP the and call Financial of and John Fernandez,

statements remind begin, we our includes of laws. I’d federal to within Before you meaning the like discussion that today securities the forward-looking

Actual customer our reconciled filed for to X, differ to XX-K could All enhancements on Investor could and to today’s our current non-GAAP With matters. offerings those over Forward-looking factors release those related our differ that on the from We these results hand statements. are QX on you by numbers other with offerings some in our factors to and in available actual call the indicated statements Fran. the include and offerings in our and referenced future for included Relations by annual XXXX for results including demand our offerings, results I to indicated encourage market cause our expected statements full for year XXXX, materially from will statements. Form March slides SEC have press that forward-looking of filings, forward-looking we our call SEC that, to the risk website. report review in our

Fran Rosch

across outperformed guidance We second consecutive XXXX Mark the fantastic Thanks our discuss of to metrics, start once and XX% thanks AAR everyone had growth a results. again, for XXXX, us first quarter highlighted for quarter. our year-over-year joining to by and all

$XX.X net XX% year, ARR same million by growth million quarter a year-over-year five last sequential in accelerated year-over-year. in points, new $X.X percentage we've growth AAR delivered the and Our QX representing versus in

that securing our landscape expectations. is this and their market empower We John CIOs our supports strong you've cybersecurity for with offering as our demand software QX, raise identity for past, cloud market. heard remarks. use our hybrid to ourselves strength further for ForgeRock our about solutions. us not and The about Therefore, includes CIAM both IoT which ARR SaaS self-managed, customers heterogeneous platform of us environments for customers through is approaching our choose CIAM our is representing of new tenant a as governance deploy and they public to and cases customers differentiate want our We by integrated to workforce how the all their environments, identity across that workforce access for such with in identity, an and from types. XX% identity to our deployments. In the us. SaaS multi-tenants SaaS among and Adoption initiatives in year our general, to SaaS isolation, record unique Recent offering new We strengthening, of talk in cloud architecture the or demand private our infrastructure. again beat and customer CSOs. our adoption. a enterprise security. for reminded XXXX priority discussed SaaS customer But modernize enhancing expected continue challenging events in heightening his confidence ARR IT and security particularly customer to our and offering, as full gives guidance which identity it's have which are continues The spending enterprises threat critical just demand to top ever and portfolio, us both identity, in see Digital to employee the experience. driving transformation experience remains remains enhance across

advantages. differentiated distinct has a SaaS few architecture Our

the noisy up traffic among It's neighbor means to we facto to support is isolation from providers. other to against Monday. approach, or multi-tenant typical is First, we largest the we ground our their that believe approach designed guard identity our busiest a times a Cyber throttle Unlike which tenant issues, our don't de SaaS Black during enterprises performance offering like important Friday unmatched. note

an has nines of of availability our ForgeRock four the of SaaS since delivered offering. inception average

the the causes is that but hinders Technically the the to throttling disruptions, level pod architectures shared the scale and experience with meaning four committing Often enterprise creates so everyone are service service put nines, get still it, latency users. if enterprises which in pod, their agreements. enterprise may our in one if resources. it common event, feel nines a delivers SaaS a it all number like four caveats, throttled that's But other massive not in considered shared industry. We comes of are the of four to heavy a throttling of because nines in activity and way of same single end now this doesn't matter large ensure customers doesn't resilience

we our We enable SaaS Second, where our cloud. data regulatory meets data requirements. isolation resides choose that to in their provide customers the customers their with

example, availability it's the standpoint. don't region. or We some in and a critical For for something to server data on very that's a for from important customers, country their security reside located endpoints, share

platform our most major technology and approach. We that provider SaaS believe isolation we years the XX tenant Kubernetes to among have leverage ago identity as build we available Third, today. elasticity such modern wasn't

enabled market. offering, neighbor the purpose evolve or without continue our to built our issues. typical well-positioned extremely for approach it's our the edge been ahead And us to throttling are SaaS We enterprise to which noisy And the we road platform Our with technologies. we effective has offer for customers scale believe cutting us. also for massive cost due

our last worse. billion us state the AI-driven prevent expand, innovation ForgeRock helps our in by our culture fraud of market and opportunity that and increased or Attacks involving compromise real and we passion had the usernames driven the X and had U.S. more in passwords organizations massive of translating solution cyber another continues are accessing We've accounts. identity alone. of XXX% excited records have stolen ForgeRock our criminals announce cyberattacks staggering to experts. to in Today, Access, Many into actually than product identity Our is time. year, Autonomous

workforce machine a and expand time, of it. a combination transform and advantage today's take is of attempt advanced presence, Access that helps threat also deliver actors on solution experiences Autonomous identity the with both any solution a powerful of account risk selling new takeovers enables no team protection create drop, and and Autonomous from Access user digitally access using cases. eliminate companies that and simple interface. seamless continuously is surface CIAM along cloud, prevent will threats. real recognition. Autonomous their its and fraud empowers new attack Delivered to our sales It learning begin their access enterprises detect with delivering announcement, teams better bad pattern AI online ForgeRock As attacks ForgeRock continues personalized assigns known trusted use artificial to new solution intelligence, And by strategy prevent month. this in protection access and users. with a scores decisions, the code for Access With the to will behavior drag applicable journeys to to evaluates of number and smarter end increases

of self-managed we have of CIAM product in SaaS are innovation, you platform momentum deployments. or and We with cases share both and for future across workforce adoption business driven we our The pipeline updates a use by seeing quarters. will is our broader great hybrid being across

identity of take mix the XXX of to diverse to see the continue cloud. wins a five across ForgeRock And like few Fortune customer them verticals. We these All highlight customer from are of first are industry minute with companies. I'd three five to wins wins quarter.

because data Our This cloud Australia one over the customer Australia. and Asia-based identity first customers. existing unlike ForgeRock provider selected customer could an in example loyalty provide residency their with in insurance full finance is XX identity their multinational and is corporation, not revamping million customer platform ForgeRock,

ForgeRock our of to applications. identity also trees. customizable easily of selected large And a through was existing can with we our MFA deliver because ability integrate number

the customer XXX migrating a login to users identity This customer cloud leader ForgeRock is from next to CA win Fortune and authentication process. Our shipping. the XX million Siteminder in is streamline

of to company. dozen because more deliver to for reducing ability the selected also while was ForgeRock and customer than improve our the fraud experience, cost a ways

consistent sector. platform, globally. customer the one ForgeRock user us. Fortune cloud and global multiple on, we but meet an wants had brands on another brands differentiator scale, a across implementing experience and to customer's support important win, on numerous To a requirements customer's the for in Moving to brands the languages XXX these energy ensure identity This

investment world. selected and cost customer They're the Fortune next like financial and of in well win, these understand consolidating numerous as potentially goals, hundreds cloud throughout achieve improve our savings. For They in its global institutions, to customers order many banks many systems as user better this XXX experience. identity ForgeRock systems millions of customer IAM realized is to the

of as experienced their customer its identity expanded expanding cloud had existing with for final with existing mass our our an conglomerate at rapid application. brands they're we win media This ForgeRock trees numerous costs. who global is They're consumer journeys, For also reduced and SaaS offering expanding and ForgeRock because identity looking customer strengthen our one to security on such logins. identity cloud success social leading deployment. enable And example, the manufacturing another support the authentication

our both We to only XX% end customers continues for both workforce to us and be CIAM demand the CIAM Our the of as CIAM side for only. use land CIAM QX, strong workforce. for across of tend XX% and workforce. and on and XX% at

grow alliances drive grew relationships has identities, sales modules expand more by use This expense marketing Our with deployments. and more us increases and only increase XXXX ability in leverage our in and year-over-year, customers productivity our cases, our and ARR XX% by sales partners. XXXX non-GAAP XX% to product double-digit more more through with and in and resulted sales deepen

conference and on a exchange love XXrd because and about event, our partners. I this before Before with this summer. I upcoming in Austin IDLive. excited user London off to heading I'm to very chance It ideas conclude, it's kicks customers Melbourne our May

products Toyota, from welcome leaders like will customers will of hundreds attendees Credit Deloitte. Federal, Navy, learn partners, industries. Union, of and PWC, sneak Alliance from variety They a new Humana, U.S. our Bank, get and peek and Accenture, from We at a identity

in Finally, deeply about we the remain war concerned Ukraine.

a business a in With turn the through hoping that, over operate ForgeRock financial John unaffected, our and While situation I'll Russia, resolution is detail. to results to Ukraine soon. or in terrible doesn’t call we're and walk John? is our more for peaceful

John Fernandez

first guidance across all metrics. Thank to pleased exceeded our our result announce Fran. you, quarter am I

we consistent saw ended QX XX% As ARR and over nine back XXX.X acceleration for to XX% two we the first at were to past We growth, million. quarters. look XX% at seven last quarters, the the

to across globally. regions our see We demand continue strong

ARR. last it year QX And As purchased our SaaS QX was QX year QX expect our of were this record in SaaS new to us. quarters new customers ARR. experience from QX of QX ARR to our and SaaS net seasonality. similar XX% of and XX% offering for for a seasonality, currently quarter customers strongest pertains new we and with

and purchased XX% in reminder, greater XX% ARR and periods. new QX respectively, new and year, of customers Average of a customers our our in As last ARR respective purchased XX% XX% in ARR SaaS QX who SaaS new of was and customers QX SaaS XXX,XXX. from SaaS than represented those from

Moving onto customers.

of base many proud brands. extremely we are built the of We includes world's that leading have the customer

We with XXXK greater. of investments continue from high retention XXX seeing results QX ended customer defined We with great ARR to in or are experience customers large and customers, success. our very as

Our year-over-year as large they customer ARR of grew end base represented of the QX. of our and XX% XX%

Our QX net for XXX%. rate retention was

by the of majority has the acceleration logos. our been few driven quarters, Over ARR last new

believe retention expect rate and to the remainder range this existing adopting SaaS uptake solutions from will over for as such Autonomous Access the we net increase While to product customers stay of time, in year. XXX% XXX% we our it new

Moving explained deals for best SaaS ASC through revenue different for ratable XXX. under is example. recognition self-managed than significantly in Revenue to revenue. recognition an deals This

XXX,XXX three-year a ARR take Let's deal. self-managed

XXXX, start new This temporary revenue ran the same ARR X, a day the with time. $XXX revenue We that approximately self-managed made estimate we impact. growth on SaaS, been mix a value. XXXX year-over-year our approximately $X recognize If deceleration increasing If revenue QX three-year $XXX,XXX reflects GAAP million recognize or the a to for over and fifth of So shows ARR in year-over-year. last comparison, XXXX is QX percentage grew year. in total QX of growth, example the that as QX revenue due quarter of $XX.X the that total did XXX,XXX contract Professional a or XXX,XXX Total to why of the deal in we our million, XXX,XXX the we up ARR, quarter, while approximately we if the QX, $X.X we new increase we XXX in SaaS would would date in did was quarter. an from the dollars difference SaaS reflecting was with like-for-light of same of of XX% would've best of million this ARR. XX% approximately ARR in services take

I'd that and compensation reconciliation Before profit results, all press million forward. point release contains like was profitability be turning our QX going non-GAAP our $XX.X gross to results only XX%. out and expense to non-GAAP items, for and I exclude margin was discussing periods Non-GAAP will results. stock-based GAAP our through gross results discussed,

to As our offering, increasing expect infrastructure higher we SaaS scale we see in hosting to costs. incur cloud continue and investment

Our improved revenue. professional services year-over-year, higher higher margin services utilization significantly by driven professional and

of million to in an in that analysis of last to that year QX made X% estimate would've operating website the operating ARR resulting that XX% revenue $XX.X negative growing ASC we was QX $X.X of to versus in the did X%. last we to XXXX XXX. last described resulting path for the rapidly in negative with new loss been QX approximately more versus our million represents XXXX, profitability. now growth $XX.X We to expenses. did margin million self-managed if would Investor QX a revenue $X of year-over-year of was impact Presentation representing million year. expense G&A was revenue goals last compared and revenue million operating focused million year. XX% QX total QX and This $XX.X $X.X expense $X.X million margin was compared while expense QX year. QX year, note dollars negative the the a SaaS delta, last QX XX% versus difference R&D achieving of versus Operating up biggest important last in same million strategically on year. impact be revenue XX% to QX in for to XX% G&A SaaS I in QX marketing our for million compared for XX% It's approximately our an total margin remain ago. represents revenue QX a the in our was investment Turning year. year. to in is to earlier, XXXX, for $XX.X QX with of ARR, information. same to that Relations business positive our in loss operating we refer $XX.X operating compared Please in and to on margin XX% Sales This Using under Investor last QX the of impact of

$XXX equivalents Turning the balance with the cash, securities. marketable in to sheet. ended cash and quarter We million

We solid non-GAAP until we of have margin. achieve is we a multiples sustained rock need balance positive what that many operating a sheet

year. to guidance, provide I'd remainder that should additional we to Before like turn for this of some provide the context comments

company. of from year. we and Accordingly, First, different our example XX% growth guidance. revenue XX% the self-managed our we expectations, SaaS of continue ARR recognition strong SaaS for total exceeding to less our from revenue to demand are pipeline, our the our I expected future XX% and for ARR the hugely we see significantly ending and trajectory this thus, ratable ARR for revenue per and raising is positive is this in contribute raising upfront significantly annual Because XX% near-term. to is previously SaaS are is deals range materially gave, to

and guidance full revising our slightly. our maintaining year revenue are income We operating

business our performance, our experiences our on us as especially to by due and year It's SaaS growth heard business to also our which ARR. our Our have offering adoption. say has previously, some additional rapid metric rapid expenses we as guidance measure focus full you and best that growth. its contains less P&L Therefore, SaaS run revenue higher the adoption now with upside SaaS

the We expect in trough of revenue in QX to growth terms be XXXX.

our quarter and We meaningful XXXX, not then revenue impact profitability in and and And factored confident Using progress QX we've have though achieve it seasonality. FX of seasonal operating considered we expect quarterly lastly, impact for April's reacceleration in growth being with remain may ability half ARR relatively due the our primarily FX growth. and to the small guidance. between into be to now in QX, annual is begin to second to rates, our We strongest linear our non-GAAP revenue. margin

Now turning to guidance.

to we net the share $XXX $X.XX million. the assuming loss million, of ARR average XXXX, total second at approximately non-GAAP to operating of year-over-year midpoint. outstanding to $X.XX, shares and Total representing quarter of to expect of $XXX For XX.X million; $XX.X million; weighted non-GAAP growth million $XX.X of loss million XX% of revenue $XX.X per million $XX.X

growth negative the revenue loss operating $XXX representing assuming loss expect operating $X.XX to of representing was of $XX weighted to midpoint; of the XXXX, closing the non-GAAP total XX%; year-over-year great margin call million, XX.X growth year, at back of year-over-year negative turn million I'll to $XX ARR range an million, $XXX $XXX average and $XXX Total we the year net start to million, For XX% at QX XX% XX% and non-GAAP million full representing to per midpoint. approximately of for the Fran share to of shares Fran? million. a to outstanding remarks. million $X.XX,

Fran Rosch

John. Thank you,

targets. the is like plan Before close we and that to our our our I'd meet ability business firing to open cylinders, on give execute for to with questions, in confidence to all our fact growth

SaaS exceed continues offering Our expectations. to our

Autonomous continue by to highlighted today's deliver Access. innovation We market, announcement world-class to of the

you us keep quarter, family helped to forward the questions. the call who into initiatives. we success. to us to we the a momentum and the the a now our all the to largest first forward open help continue look continued And deliver new welcoming and had Operator, going. thanks look world's quarter, help with may for We ForgeRockers enterprises strategic identity to We most fantastic fantastic on reporting ForgeRockers

Operator

first Sandler. from Owens Instructions] our question ahead. Thank We'll take with Rob Please you. [Operator go Piper

Rob Owens

Thanks Good taking questions. Great. afternoon. for my

for one Just me today.

strength you us kind workforce, you give of aggregate decompose the CIAM a saw the you net trends to in And ARR, the new were of sense between in can base this seeing? quarter CIAM what you the and If in how ARR? much is the ARR are of Thanks.

Fran Rosch

Rob. Hey, Yes.

XX% both for and by customers really to our and it consumer only That's workforce. consumer continue and saw XX% strong evidenced demand we our we have leverage workforce, platform workforce. both So, that for CIAM for XX% of

So, across we both. strong demand see

CIAM kind most the the one, CIAM to market, Now that's with exciting the the most of is think the the We we one do identity continue of part the land largest fastest. often. growing

this most lands, of again, the So, in those CIAM, quarter, portfolio our our most and customers. we the have came to opportunity workforce our of customers into cross-sell new now

Now, CIAM good all But with have demand space, it. the general we of workforce good the course, we're demand for of market seeing lands. market in still some strongest generally, but

Rob Owens

And competition look relative anything as and between on the markets? two to that pricing, changing discrete you front

Fran Rosch

on the whether we the world of from challenging from times the came really continuing investments we've And companies. think made, new think to in I project record haven't No, to better going That's SaaS. for a continue that's really growth help ARR our competition. big to see by or identity I digital any a us improve in position, the the develop in really I that's hold product, everything in even and and that pricing to seen market. think the pricing traction of the on when that and in Yeah. is about investments we that market more transformation increasing demand, at cyber identity and new in changes cloud, XX% accelerate And cloud pressure this time. more logos that these And looking a don't this identity threats driven us. dramatic of we it's continued lot with companies these relationships, new especially queue mean top in going competitive for digital

improve So in the that's our market. us to position really helping competitive

Access we will the contribute that. to I think whether today innovation Autonomous new launched

market changes big changes big demand. So, strong dynamics, to no in just responding in really no pricing,

Rob Owens

for Thanks color. Great. the

Operator

take go We'll with Morgan Hamza Stanley. Fodderwala from question our ahead. next Please

Hamza Fodderwala

too. question. about mechanics revenue I Thank Hey, the it John, you will keep acceleration for my later to ask I to taking to one try wanted year. the around this question, guys.

seeing I two obviously you're is So, which want. a self-managed to versus that's And what a believe mix you higher offering. your uplift three X generally SaaS, of

in from don't I at reflected At gets get of want I upside ARR to same time, majority. your to stop that imagine being want eventually, you the think So, XX% just revenue. your the SaaS. actually you to

between So, the yes, for maybe that mix how the the upside you you about of fact do net have by revenue a growing ARR then think that's puts that recognize SaaS takes also there and you'll offset but eventually, new deals? on

John Fernandez

It's Yeah. Yeah. a question. great

this this of we And saw last to of accordingly. last we of look we growing a I it couple There said, that we out XX% visibility. point we've every see And We you SaaS, and better quarters to fast. see quarters, variable look guide a get things. the quite quarter is next quite our XX%. obviously, if website standing lot obviously, That the can out quite strength where in as several Every over three we today, you strong and the quarter, period-to-period. think substantially SaaS IR period, trended dollars as sit to really were and guided at to variability. is

grow we know to continue variable fast. so, the will that And quite all

And the QX guidance. quarters and QX thus of SaaS for for in and so, mix the we percentages have of year the each raised QX, this those

in variable as future we fact, continue that to faster, that closer in get see time. continue range to appropriate As a growing we and variability period that we'll -- quarter-to-quarter, reducing even if raise at

I we All believe I is we think that what those of say importantly, think especially the mix, really relates level so trough and revenue revenue for about them in our in have reacceleration, sit we We to first have want here QX as option. that is the it importantly, call into and where the why visibility the confidence this us, fact today, for and falls And time and again, first driving gives of for of in our year, all, another maintenance see maybe very joined support for the existing rest choice. the QX been of Well, just ForgeRock, when give into SaaS great? doing waterfall. customers we've with it because revenue for a the can all that we business that from high and this SaaS go that to the to us QX and we the reacceleration.

So, they only. That's are or that can go self-manage SaaS. though there out companies who SaaS, cloud also powerful. there mandated Remembering

So, that's opening our TAM. up

We have shorter on strong close rates. SaaS, for sales cycles average

on you in mentioned, customers, new three two per customers. As price to converting X but two user to increase five X identities on for

to sales ASPs. great higher a But We're they're our customers, just want in It's customers cloud reps in business going not coming for and strategy. try So the and many with circumstances our We that for us. steer direction. first give choice. to it

reacceleration at the of our mix linearity SaaS. we're how that's looking the for the year, So, and

Fran Rosch

And to I'll just add that.

the as their our in raise in seeing cloud of by SaaS These the enterprise resides than second in differentiators for you, we and just performance driven remember, rapid it's key the that of why to Thank continue That metric offering ending that be to guidance to ability confidence performance are to that's And scale customers very their in neighbors, As really is noisy throttling thing. market. -- in why that this really is right year no That's really and ARR products architecture. adoption, having to company. due rapid and only we're ability the as able growth. our growth you we ensure on year and And differentiation we're the data other that Hamza. our XX%. the that the over real this market, give ARR to a I a long-term, mean, focus said, country.

Operator

our We'll Powell from ahead. question next Gray BTIG. go Please take with

Gray Powell

much really Okay. -- see to side the Thank very accelerated strong good results. of the you to the Great. and mix SaaS on things. improved congratulations the shift or It's

think how color that was operating of really point, help helpful. you how operating through year helpful the mix QX it just income. that's would Can shift impacting any be So, you the or directional us to loss the impact disclosed really guidance, yeah, on just there full

John Fernandez

Yeah. Yeah.

QX exciting indicative yeah So, Again, business. you. quarter. levels, of a great of I the thank the and think and really -- all was on trends

XXX relates by Obviously, which year, operating the it, this we the periods, the it look at think, guidance, the So, and growth XX%, right? foremost, as on best year, each ratable at and the ARR the As to to the a we we through I in XXX metric and first of we think fact is to the we're raised rec. now it business. loss the rev level on obviously SaaS, in to of have XX% measure transition more QX of raising -- going QX, QX about

And then guide our feel confident putting so incredibly revenue. revenue And that pressure in year. for on we the yeah,

noting in our top So, revenue. just more looking I think then and that's that top narrative line line at ARR, that raising SaaS

we I P&L, more incorporated the higher of think rest importantly, the level SaaS, costs. to have with of a relates it hosting As

SaaS, think per customer per those as cost that, flows gross we that and -- SaaS. well as more margins we're as as as about So, a on QX tenant, we've importantly you got hold look also cost really at in through, doing

the costs. than more I'd on in line manage of of higher that as really top result that the we're that lot business. on opportunity say added we've and negative a little the and we're XX% SaaS XX% realized We focused the negative We've to At predicting going per a year our costs a day, end for we still that. our much result reduce So, also what think SaaS a hosting there's for of to delivering year basis probably operating bit in customer earlier thought. on margin revenue ARR to P&L mix.

Gray Powell

Okay.

I tough safe guidance to the then, would guess, or makes say loss if SaaS were slightly that better? guidance been mix maybe your And also prior unchanged operating unchanged think sense. one. I But it might a relative to is that even your this that have be

John Fernandez

Yeah.

I have we think that's very fair, because mix considerably. raised that

And is very, that very so stable. yes, a

SaaS way is the statement much much, is one things business, effectively pipeline change, of we originally. successful, much have had very but thought remained outside that across our our than stronger than Another the and put earlier more same large much I

Gray Powell

Understood.

Okay. Thank much. very Great. you

Operator

question next Bank. our take Deutsche We'll go from Colville Please with Patrick ahead.

Patrick Colville

ARR. $X my you the the so not you -- question I also it the million. yeah, about midpoint by million, which XXXX you your lifted about much is quarter question. mean, is impressive. Thank which is guys $X you I midpoint is I'm fiscal And My for taking And very if beat of correctly, If print impressive. by lifted the very guidance. this mistaken, guidance calculate

given why kind very amount, by chosen? come help beat, but it’s you XXXX Just, $X that it understand lifted encouraging I of was was level that million the how guide, guess, that me -- fiscal that

Fran Rosch

I a we we full look guidance very printed, at at our look as said, when it we plan, strong based year raised the think on we QX. think And we what is, that what annual will you deliver.

We'll continue guidance. prudent technology do as the in business go this at time. the going plan. building Now time, that felt that, we pipeline evaluate conservative we look as it's this we at still look capacity, new raise our But still to the to sales to obviously, pipeline. year. to We're early We're releasing at the was on modestly felt And execute and we we're our that's a continue overachieve this the to forward. is

Patrick Colville

deals Thank so dynamics that picture this And the we about Thank much. any so you whole a kind just the quarter? XQ got my is you. just so aware number? large healthy, of, follow-up of is Great. The should print fiscal we were closed quarter. be Were ARR there first that I guess, about

Fran Rosch

areas across SaaS stands But all the APJ. obviously And the in Yeah. really thought. in consistent great strong The really versus Americas, really, had all public great some out one a any one thing growth continues. Europe, our stronger that came great sector all is through and than even the lot performance We it's thing. services, looked It's wins, healthcare some saw a adoption a results we we growth good QBRs into financial we into question. strong data,

it's So, spread. very vertical

see healthy that continue large in stay strong, grow We continue customer strong to ASPs growth and count. to our

raise business the across is ARR total to SaaS. quarter executed And has your a thing modest that it as guide question, increase. said in any part confidence I really that all we a given shifting without think one of first And to the us So, both this it. balanced was year, that's that really in and of what elements very

conservative going to modestly We year. throughout guidance, have the look overachieve to we're and

balanced So, really quarter it a was well all around.

Patrick Colville

you so much. Thank Nice.

Operator

our take ahead. from Ho We'll next go question with Blair. William Please Jonathan

Jonathan Ho

afternoon. Good Hi.

to, as understand your could what much wanted maybe Access help capability. a Autonomous more sense you guess, a upsell looks maybe how AI-driven us new I And can as like? potentially this well about the that opportunity little bit differentiation, of give Just

Fran Rosch

bringing the to And talk I continue think identity of we And did to of differentiation. really Absolutely. drive importance have the about you AI to heard me this and journey. customer value many entire

dealing cycle. The identity build Autonomous to happens authentication of are foundation user identity Access theft, really Autonomous help actors. across can easy life potential impersonation that ago that intelligent journey. companies we takeover, malicious identity can continues at of while access, that user authentication with to sort recognize have identity We bringing that using more intelligence Autonomous and system Identity of with targeted and the that So, process. Access the account them now a the launched the with legitimate is on give years block signals Many fraud part full through couple

on takeover, reduce really to delivering customers value for that reduce account we're here focused that is that So, fraud. our related authentication the

differentiates is product ways from it out the market. in Now three other what the things that really

stuffing help the of or threats. we helps that you known predict. engine part threats. reputation, from can't unknown really component heuristics all in those really known like really capabilities with rules-based IP First, of powerful The can Things block AI credential our helps it protect has where real-time or a customers fraud

of user So, transaction by wait, signals looking device say, strange can a or bring and at this like is user behavior, we behavior. strange to intelligence

authentication Let's ahead higher and block up put a that go of or level access.

thing is unique about But a or this all of really engineering I this homegrown both of really it's course, rules-based and think So, combination important heuristics of was the department. in ForgeRock's AI-driven here this model. other technology,

fully identity the already as module to integrated ForgeRock add-on it's So, an cloud.

of this line interface, identity our turn developer part part start easily trees. as our it's advantage very of on trees. right taking of So, that identity can Customers in and

it's integrating it's across more powerful already identity different it's because it's So, journeys. to both heuristics different and and as AI, those

account to really So, we've of big been takeover problem that customers, struggling weakness this and intelligence talking customers, our line solve to really brings This due the with in a lot the usernames a passwords, right of they're to obviously. for platform. our with

excitement, building. lot of lot pipeline a great a of So,

of we the that this the for think in can growth so, And acceleration drive continue year. rest help ARR to really

Jonathan Ho

to up then, customers that over should range about and SaaS And this think time, start when it. to especially to your a tick net bit? we just XX% retention. trending do or sort range the of renewal, current Thank you. up as net for around come maybe the see we retention revised Got relative start How

John Fernandez

Yeah. Yeah.

I we the is, talk context look we when about this the of XXX%. just we the are future where think at -- importantly, for we in and period, why are

record retention customer really highs. is Our and at strong remains

continuous that we've So We're retention. incredibly customer of level this We changing. pleased don't result investment with of that's a made. just see customer success that

this logo new are function really of towards of ARR seeing skewing And that's been new We this acquisition. SaaS. our

So, future, over think But right look in we've out are I think toward wings that And there's more the Jonathan. share. taking that balances we seen I that the that market some as We're opportunity. now. things time,

moment. in to That to So, a Access, state we about product I'll get Autonomous talk future about out talk us, is help right? coming the going

governance, I to think that. as it relates upsell to continuing

which over multi-hundred software SaaS to We a is a about talked opportunity. the ARR. which we've is on three opportunity, about two dollar conversion big was of to to One SaaS, million in our past think the we've experienced is X things that's of that base self-management installed the of

the that interest still tooling. they we've developed and early days. our the And there, developed out all We've paths from we are journeys seen do. things the gotten and a we've and We We've to great need customers. the all in through, go

level We how out decision play level then Enterprises This the take we pipeline time figure a get and there. out decision to a process launch multi-quarter at quite multi-quarter to are of though. quickly. that building enterprises, it be can

launched, our of in SaaS in end of more goals range. of that that to this XXX be this outside we end, that in get initiative, Obviously, XXX year, customer north So, the out this Autonomous year. likely just we still more have success and expansion that there, really the mechanism through really governance, XXX the Access I future, of fiscal we'll software and that to for drive think through get targets those think year, items, to the

Jonathan Ho

Thank you.

Operator

from question Cowen. Eyal go with take Please We'll next Instructions] [Operator our Shaul ahead.

Shaul Eyal

a Good Mark. with the would How And you. have Fran, afternoon, the John, with Thank offering, associated characterize Great progress product? sales I indeed. follow-up. cycle SaaS you this

Fran Rosch

Sure.

the whether I starts So, self-managed consumer would And the give then, way cloud what understanding say with they with as our them understanding sales through or I it's they to what that, about around doesn't cycle It we choice workforce they're talk we do want go What conversation on our it. customers. start to solve needs challenges how want or accomplish, to identity. we or And to we then they related or try first, IoT. to SaaS. go want the is with start whether self-managed. think trying that's customer And to

cycle. of the cycles goes sales that SaaS, typically on The the work, takes security. when later with ends that we down a in run, see SaaS right? do the to shorter. that ForgeRock So, the the overall, we operate, But And up deliver sales are lot

with just service. about all infrastructure, like because of as rich a take So, that functionality of customers don't can have planning advantage building to ForgeRock's they deal

are we cycle SaaS. sales our seeing shorter with So,

more We are we as really ASPs, higher seeing deliver higher significantly ASPs value.

from demand team customers, that internally, sales really of the but So, SaaS we're sees only benefits seeing benefits not positioning the and customer. strong our our of to the

that's had differentiation, the that accelerated ASPs, higher a I cycle, adoption sales think And you SaaS. follow-up? of shorter driving what's more So,

Shaul Eyal

Sure.

are we're Have one preparing quarter fine. go sitting, midway XQ last really on detected to close like we left, public Are you you're And then any to hand changing XXXX? through we year, quarter. was know patterns? and here tracking which demand So, getting levels the to the similar I

just some maybe color these So, along lines.

Fran Rosch

back were ForgeRock, seeing ago, at We year for increasing we're sure. if -- see a I demand

become identities threats in think cyber business, things and Even are as times, some business. of I that company, market CISOs that's of their and important. externally the CIOs improves their costs it and reduces top are the more the it protects these driven challenging because line prioritizing the

good a obviously, increasing recognition. lot market from externally, changed time company. we this additional demand So, gone seen as last a we've second, year. us We've gives And public, which

awareness [indiscernible], more our doing grades of maintain we're from and to Forrester go-to-market and will engine like creating hone demand kind for analysts around our offering. We and top the Gartner,

pipeline support and this much to business. growing to help, it increasing at our obviously, bigger So, than continue year, seeing we're time, scaling last was

position the overall, a So, in feeling the growth to targets good achieve here company. for

Shaul Eyal

Thank guys. you,

Fran Rosch

Thank you.

Operator

be Heath go will with Please KeyBanc. Our last question from Eric ahead.

Eric Heath

congrats and continued Thanks in Great. question for the taking the strong and acceleration results on ARR.

So, with Fran, from customers. of acceleration ARR start the coming net you. CIAM rate new land I most guess, and with to Usually just

adopt CIAM. So, in And happening I'm tipping the might just companies that be replacements homegrown what's to these large are solutions? curious market those of mostly

Fran Rosch

Yeah.

is CIAM there's the by now. these it do well. demands. Workforces energy But in lot CIAM is the right I think, think And a space. space hot really I as of driven

frictionless are more to the better, that line think create experience, from security at or fraud risk. under business these or putting I compliance technology these professionals without

companies the we able to to own So, there's are self-service demand not strong to customer easy have CIAM a win really to have a area. identity not their experience that manage platform. have or who dashboards able in Many settings. homegrown that create deals them for That's privacy functionality or scale,

solutions replacement. are really homegrown right for these So,

of legacy Talked in identities. I lot about companies But growth. banks replace solution one the So, global we're about we the largest for one of of a million the talked transportation identity the XX Siteminder definitely we to solution. replaced in that some Siteminder a like see QX, legacy see where the platforms. script our that's CA in CA looking of

level, past see lot enterprise, as we have we opportunity. years. our many should So, large this prioritized a several at definitely, that see But we identity -- focus of of like haven't enterprise customers they just over when the

on cloud the parts they identity consolidate identity with or platform. talk different divisions all this cycle. for to of went going of point in maybe financial solutions, about point of different our literally And to ForgeRock They're So, like comprehensive services solutions, QX. of different life that one customers themselves we identity find dozens dozens

it's single single services prefer the who and players partners, supply platform cycle. the really a of these point workforce, a physical the life across chain, the homegrown, lot all So, identities, platform. A about their things consumer, and enterprise really identity really grade that solution platforms, legacy solution but all for of

is consumer we space really definitely pointed what of as not consumer there's that's -- you hot, the So kind see is out. -- driving, but

Eric Heath

the side just given seen in update SaaS, And if That's standpoint, curious the or you've I'm Great. just on there's win competitive things on then the change if of momentum rates, any strong any there? helpful. assuming

Fran Rosch

million to XXX service four the We're We'll XX liability. nines performance the to quarter, standpoint. past a authentication in I this to think, to not announced million change going this We some going maturity. there's from point. to exciting make invest on ForgeRock across cloud generally, consider investments we continue continue competitive at identities. scaling our a be the throughput been We're the dramatic focus -- to to go We're in this to year. continuing environment

we So, enterprise grade as our cloud, the to win help of that's going continue to on to the nature rates. continue focus

on unique information this full growing continue today ForgeRock to the customers good I private. telemedicine identity part So, making as side, requirements privacy around working really our launched of investments offering We to as out last on a the we we keeps want and workforce convergence. people unique have patient lot We're to win have more Healthcare vertical-specific bring gone bringing more. most a cloud, because our some now help capabilities of and think we're they that focusing solutions. certification been on some to some data. has We're But HIPAA also portfolio, year. healthcare

access in for platform single a in SSO, was MSA, really ForgeRock model having to identity governance identity. pioneer a of all converge this

that a this we why growth, to So, will this which to and on position lot raise that is accelerate want continue think to we've guidance that got coming ARR year. year cool things of help us competitively out I continue

Eric Heath

Great. on the and quarter. congrats Appreciate that

Fran Rosch

you. Thank

Operator

session. today's concludes this this Rosch. At gentlemen, to and I'd the like question-and-answer turn remarks, closing to Ladies conference back Fran time, for

Fran Rosch

our joining the for us fantastic for Thanks call. Thanks talk Great. everybody helping about QX. again

is business on firing all Our cylinders. really

We have accelerated guidance. meet to strong ability execute our ARR our our on these growth to plan even in targets with confidence

what our exceed by on not in that's are architecture We've deep to ForgeRock. on expectations SaaS. are to accident. choosing continue toughest world, got the And customers other taking a look the and the compared enterprise things We our at market they're

Access, Autonomous innovation We half business deliver the in by our of market, highlighted we accelerator world-class which the to again be continue to think latter of the going a today is year. to great

we So, forward a weeks and to again, congratulations to And quarter. dialogue the this all the ForgeRockers continued great look who in help months ahead. make

much. so thanks So,

Operator

gentlemen, this appreciate and concludes Ladies today's conference. We your participation.

may You now disconnect.

ForgeRock (FORG) 12 May 222022 Q1 Earnings call transcript