What happened
Shares of ForgeRock (FORG), an identity and access management company, were plummeting today after the company released its second-quarter financial results. While ForgeRock beat Wall Street's consensus estimates for the quarter, investors focused their attention on the company's disappointing guidance.
As a result, the tech stock was down by 15.6% as of 1:19 p.m. ET.
So what
ForgeRock reported a non-GAAP loss per share of $0.17 in the quarter, an improvement from a loss of $0.33 in the year-ago quarter and was better than analysts' consensus estimate of a loss of $0.21.
Image source: Getty Images.
The company's sales increased 8% year over year to $47.7 million, which narrowly beat Wall Street's average estimate of $47.2 million.
Although the company's financial results were better than expected, investors appeared to focus their attention on the company's disappointing third-quarter guidance.
ForgeRock's management said its third-quarter non-GAAP loss per share will be in the range between $0.17 to $0.13, which is significantly worse than Wall Street's expectation of a loss of $0.07.
Additionally, the company says its third-quarter sales will be in the range between $49 million to $52 million, below analysts' average estimate of $55.9 million.
Now what
Many technology investors are taking a closer look at a company's financial results and forecasts right now, as they try to assess if a company will be able to weather a potential economic slowdown.
Comments from CEO Fran Rosch may not have helped either, with Rosch saying in a press release that "this uncertain macro environment has presented us with challenges such as longer deal cycles" and foreign exchange headwinds.
With ForgeRock issuing guidance that was below expectations and the company facing some larger macroeconomic problems, it's no surprise why shareholders sent the company's share price falling today.
