ForeScout Technologies Files $100M IPO; Plans to List on NASDAQ Under Symbol 'FSCT'

October 2, 2017 5:20 PM

ForeScout Technologies filed a $100 million IPO. The company plans to list on the NASDAQ under the symbol 'FSCT'.

The offering is being made by Morgan Stanley, JP Morgan, Citigroup, BofA Merrill Lynch, UBS, and KeyBanc

Overview

We transform security through visibility.

We have pioneered an agentless approach to network security to protect organizations against the emerging threats that exploit the billions of devices connected to organizations’ networks. The traditional approach of relying on a corporate-installed software agent to secure a device has significant limitations in today’s world as devices are developed using a wide variety of platforms and operating systems that cannot support agents. As the volume and variety of devices increases, an organization’s ability to manage devices decreases, creating a major gap in visibility.

The threat landscape is rapidly evolving and attackers are now leveraging the gap in device visibility to gain access to organizations. Attackers are shifting their focus away from traditional enterprise devices and toward the less secure Bring Your Own Device, or BYOD, and Internet of Things, or IoT, devices, which have exponentially increased the attack surface within organizations. Responses to attacks are often both uncoordinated and manual because existing security systems operate in silos and security teams often lack the ability to share information and coordinate an attack response.

Over the past ten years, ForeScout has developed proprietary agentless technology that discovers and classifies IP-based devices in real time as they connect to the network and continuously monitors and assesses their security posture. Our solution supports heterogeneous wired and wireless networks, as well as both virtual and cloud infrastructures, while scaling to meet the needs of globally distributed organizations.

Our solution is sold as either a physical or virtual appliance through a perpetual software license, with each appliance designed to manage a certain number of connected devices within an organization. We recently started offering our solution, in limited quantities to a small number of large enterprises, as a software-only license with the enterprise license designed to manage a certain number of connected devices within an organization. End-customers typically initially deploy our solution across a region or across their wired or wireless network, then expand their usage to cover additional regions and networks. After end-customers achieve enhanced visibility and control over their devices, they can deploy new use cases that leverage third-party integrations licensed as add-on modules.

We sell into all industries and into organizations of all sizes, with a focus on those that are highly regulated or with a large footprint of transient devices. As of June 30, 2017, we have sold to over 2,500 end-customers in over 70 countries, including 17% of the Global 2000, since our inception.

For the years ended December 31, 2014, 2015, and 2016, our revenue was $71.1 million, $126.0 million, and $166.8 million, respectively, representing year-over-year growth of 77% and 32%, respectively. For the six months ended June 30, 2016 and 2017, our revenue was $68.7 million and $90.6 million, respectively, representing period-over-period growth of 32%. For the years ended December 31, 2014, 2015, and 2016, our net loss was $44.0 million, $27.3 million, and $74.8 million, respectively. For the six months ended June 30, 2016 and 2017, our net loss was $39.6 million and $47.7 million, respectively.

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IPOs