Forescout Technologies (FSCT) #IPO Preview

Company: Forescout Technologies, Inc.
Symbol: FSCT
Description: They 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.
Shares: 4.8 million
Range: $20.00-$22.00
Trade Date: 10/27
Underwriter(s): Morgan Stanley, J.P. Morgan, Citigroup
Co-Manager(s): BofA Merrill Lynch, UBS Investment Bank, KeyBanc Capital Markets
Terms Added: 10-16-17

Link to S-1/A Prospectus

Link to Retail Roadshow

Business: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. Their 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.

Their 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. They recently started offering their 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 their 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.

As of June 30, 2017, they have sold to over 2,500 end-customers in over 70 countries, including 17% of the Global 2000, since inception.

FINANCIALS:

For the years ended December 31, 2014, 2015, and 2016, their 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, their 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, their net loss was $44.0 million, $27.3 million, and $74.8 million, respectively. For the six months ended June 30, 2016 and 2017, their net loss was $39.6 million and $47.7 million, respectively.

Technology Sector Performance Year-to-date: As of Friday, October 20th, afternoon (market not yet closed)

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Forescout Technologies (FSCT) #IPO Preview