Learnings from a SaaS IPO (Forgerock)>
Medium – Blossom Street Ventures – Sammy Abdullah
FORG generates losses, but their ARR to loss is a nice 3:1. âIn the same periods, we incurred net losses of $36.9 million and $41.8 million. Our non-GAAP operating loss as a percent of revenue was (32)% and (20)%.â Pricing is not basic âper userâ. âOur pricing is based on the deployment method (SaaS or self-managed), products purchased, identity type (consumer, workforce, or IoT and services), and number of identities managed.â Like a lot of public SaaS we see, sales are global. â46% of our revenue for the six months ended June 30, 2021 was generated from customers located in Europe, the Middle East and Africa, or EMEA, and the Asia-Pacific, or APAC, region.â Half of new customers comes from partnerships. Customers are enterprise with $100k+ ACVâs. âAs of December 31, 2019 and 2020, we had 275, and 325 large customers with $100,000 of ARR or greater, respectively, representing 81% and 86% of our total ARR as of such dates, respectively. â Net dollar retention is 113%. âOur land-and-expand strategy has underpinned a consistently strong dollar-based net retention rate, which was 113% for the quarter ended June 30, 2021, up from 105% for the quarter ended March 31, 2019. Our top 25 customers measured by ARR as of June 30, 2021 have increased their ARR by more than two-and-a-half times (2.5x) following their initial purchase. We expand our relationships with customers as they purchase more identities, add more use cases across consumer, workforce, and IoT and services, subscribe to additional product offerings, and add additional deployment options such as our SaaS offering.â
Link: https://blossomstreetventures.medium.com/learnings-from-a-saas-ipo-forgerock-95a028a7ad78