# ForgeRock Financial Model Enterprise digital identity platform managing workforce, consumer, and IoT identities across hybrid and multi-cloud environments. - Canonical: https://finamodel.com/startups/forgerock - Excel download: https://finamodel.com/startup-models/forgerock.xlsx - Category: Hardware/Deep-tech - Model type: SaaS ARR / Valuation - Funding round: Series E - Funding: $100M - Founded: 2020 - Geography: Global. Existing geographies cover 1.4B connected consumers and 1.0B workers. [DECK, slide 5] - Customer: B2B ## About the company ForgeRock is an enterprise digital-identity platform for workforce, consumer, and IoT identities. It manages identity across hybrid and multicloud environments, helping large organisations authenticate users, govern access, and operate identity services across complex technology estates. Identity is mission-critical infrastructure, so enterprise customers can begin with a major implementation and expand as they add applications, identities, geographies, or use cases. The model should therefore capture contracted ARR alongside deployment and professional-services activity, rather than treating all revenue as a simple seat-based subscription. Model enterprise contracts, identities managed, platform ARR, implementation, modules, expansion, renewals, and churn. Include solution engineering, customer success, cloud hosting, security research, and sales costs. New-logo wins, deployment scale, identities per customer, module attach, pricing, gross margin, and net retention should determine scenarios. ## What's included - 5-year monthly revenue build with stage-appropriate growth assumptions - Full P&L, headcount plan, and operating-expense schedule - Cash-flow statement, runway, and burn-rate tracking - Valuation via exit multiple with a DCF cross-check - Returns analysis with MOIC and IRR - Unit economics including CAC, LTV, payback, and cohort retention ## Product & value proposition - Most comprehensive digital identity platform for workforce, consumers, and things (IoT). - Deployment options: on-premises, public cloud (AWS, Google Cloud, Azure), hybrid/multi-cloud, and dedicated private cloud via ForgeRock Identity Cloud (PaaS). - Key product lines: ForgeRock Identity Platform (self-managed), ForgeRock Identity Cloud (SaaS/PaaS). - New capabilities announced: NextGen AI-driven Autonomous Identity, Identity Governance module (IGA expansion), ZeroTouch SDKs. - Trust Network: 80+ pre-integrated partner technologies (biometrics, risk management, strong authentication, identity proofing). - Core value drivers: connectivity/access, personalized experiences, security against cyber threats, data privacy (GDPR, PSD2 compliance). ## Market - Total Addressable Market: $15.6B digital identity market. - Overall market CAGR: 18.4% through 2021. - Segment breakdown (all figures from slide 5 image, confirmed visually): - Access Management: $4.8B - 13.3% CAGR through 2021 - Advanced/Strong Authentication: $3.3B - 20.7% CAGR through 2021 - Identity Governance & Administration (IGA): $3.2B - 19.7% CAGR through 2021 - Consumer IAM: $2.8B - 7.4% CAGR through 2021 - IoT-Driven IAM: $1.5B - 98.3% CAGR through 2021 - Addressable universe: 3.8B connected consumers globally; 1.4B in existing geographies. 3.5B workers globally; 1.0B in existing geographies. - Market penetration: <1% of addressable market penetrated today. - Source cited: Jeffries research report; internet user data from M. Meeker. ## Revenue model - ARR-based subscription model (confirmed by deck's use of ARR terminology). - Multi-deployment pricing implies tiered SKUs: on-prem perpetual/subscription, hybrid cloud subscription, SaaS/Identity Cloud subscription. - Customers: 1,100+ enterprise customers. - Identities managed: 2.0 billion. - Channels: direct enterprise sales (inferred from executive team including CRO) plus partner/technology ecosystem. - No explicit pricing tiers, per-identity pricing, or ASP data disclosed in deck. ## Traction & metrics - Ending 2019 ARR: >$100M - New ARR growth: +75% in '19 vs '18 - Enterprise customers: 1,100+ - Identities managed: 2.0 billion - Implied 2018 ARR: ~$57M ## Competition / moat - Moat framing: positioned as the only vendor able to solve both IAM and IGA in a single platform. - Wave framing: legacy IAM (Wave 1, 1995–2010) and SSO point solutions (Wave 2, 2010–2020) being displaced by Wave 3 - ForgeRock targets full replacement of legacy and point solutions. - Trust Network of 80+ integrated partner technologies creates switching costs and platform extensibility. - Named competitors: not listed in deck. Implied incumbents: Oracle, IBM, Microsoft (legacy); Okta, Ping Identity, SailPoint (modern). ## Team & funding ask / use of funds - CEO: Fran Rosch (ex-Symantec, Verisign) - CFO & EVP Global Operations: John Fernandez (ex-Siebel, UBS) - CRO: Pete Angstadt (ex-Oracle, Sun) - CPO: Peter Barker (ex-Oracle, Good) - CMO: Atri Chatterjee (ex-Zscaler, Symantec) - Other leaders: Chief People Officer, EVP Customer Success, Chief Legal Officer, VP Product Management, SVP Corp Dev - Note: majority of executive team joined in last 2 years as of deck date - Existing investors: Accel, KKR, Foundation Capital, Meritech --- ## Recommended financial model - **Archetype + why:** SaaS ARR model with multi-product/multi-deployment layer. ForgeRock is a mature ARR business (~$100M+) heading toward IPO. The core model should be an ARR waterfall (beginning ARR + new bookings + expansion − churn = ending ARR) feeding into a P&L with GAAP revenue recognition. A separate line should track SaaS/Cloud ARR vs. on-prem/hybrid ARR given the deployment mix transition. - **Forecast horizon & granularity:** 5-year annual (2020–2024) with Year 1 quarterly detail. Enough to show the IPO-readiness trajectory (path to profitability, Rule of 40). - **Key drivers & assumptions:** - Beginning ARR 2020: >$100M; model as $100M floor - New ARR growth rate 2019A: +75% YoY; assumed moderation to 50% → 35% → 25% → 20% over 2020–2024 - Customer count: 1,100+; growth rate - **Scenarios (Base / Bull / Bear - which variables flex):** - **Bull:** NRR 125%+, new ARR growth stays ≥50% through 2021 driven by IGA expansion and Identity Cloud acceleration; gross margin expands faster toward 80%. - **Base:** NRR 115%, new ARR decelerates as modeled above; blended gross margin 72%. - **Bear:** Macro or competitive headwinds slow net new logos; NRR compresses to 105%; SaaS transition delayed; path to profitability pushed out 12–18 months. - **Required sheets / outputs:** 1. Assumptions - all drivers, tagged or 2. ARR Waterfall - beginning ARR, new ARR, expansion, churn, ending ARR by year/quarter 3. Revenue Bridge - ARR to GAAP revenue (deferred revenue mechanics if needed) 4. P&L - Revenue, Gross Profit, S&M, R&D, G&A, EBITDA, Net Income 5. Headcount Schedule - by department, feeding into OpEx 6. SaaS vs. On-Prem Mix - separate ARR tracks to model margin and multiple implications 7. Unit Economics Summary - implied CAC, LTV, payback at portfolio level (even if estimated) 8. Rule of 40 tracker - ARR growth rate + FCF margin, by year 9. IPO Readiness / Valuation - ARR multiple comps (Okta, Ping, SailPoint), implied valuation range at IPO ## Frequently asked questions ### Is the ForgeRock financial model free? Yes. The ForgeRock model is a free Excel download with live formulas. ### Can I change the assumptions? Yes. The workbook is editable and its live formulas recalculate when assumptions change.