Tufin Software Technologies Ltd. (TUFN)

CrowdStrike Holdings Inc. ( CRWD , Financial) is a groundbreaking security-as-a-service company that specializes in cloud-native endpoint protection.

Even in a more challenging economic environment, it is difficult to imagine companies deciding to cancel their cybersecurity subscriptions. U.S. ETF investors put more than $900 million toward cybersecurity-specific strategies during the first six months of 2022.

Tufin is currently in the process of being bought by Turn River Capital Management at $13 a share. Shareholders have approved the deal and all major regulators have cleared the deal.

NEW YORK, May 9, 2022 /PRNewswire/ -- Halper Sadeh LLP, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Tivity Health, Inc. (NASDAQ: TVTY)'s sale to funds managed by Stone Point Capital for $32.50 in cash per share. If you are a Tivity Health shareholder, click here to learn more about your rights and options.

NEW YORK , April 26, 2022 /PRNewswire/ -- Halper Sadeh LLP, an investor rights law firm, is investigating the following companies for potential violations of the federal securities laws and/or breaches of fiduciary duties to shareholders relating to: Tivity Health, Inc. (NASDAQ: TVTY)'s sale to funds managed by Stone Point Capital for $32.50 in cash per share. If you are a Tivity Health shareholder, click here to learn more about your rights and options.

Tufin (NYSE: TUFN) is up 40% after announcing a definitive acquisition agreement with Turn/River Capital. As per the agreement terms, Turn/River Capital will acquire Tufin in a $570 million all-cash transaction.

Tufin gets a sweet buyout offer from Turn/River Capital.

Tufin (TUFN) delivered earnings and revenue surprises of 33.33% and 3.82%, respectively, for the quarter ended December 2021. Do the numbers hold clues to what lies ahead for the stock?

BOSTON & TEL AVIV, Israel--(BUSINESS WIRE)--Tufin (NYSE: TUFN), a company pioneering a policy-centric approach to security and IT operations, today announced financial results for the fourth quarter and the year ended December 31, 2021. “I am pleased to report another strong quarter, bolstered by healthy growth in new logos, as well as continued momentum in our land-and-expand with existing customers,” said Ruvi Kitov, Tufin’s CEO and Co-Founder. “We signed a record number of larger deals, including our most significant deal in the last three years. Full year revenues were a record $110.9 million, with subscriptions representing approximately 56% of new license bookings for the year, positioning us well in our transition to a subscription-based model. We made significant progress strengthening our sales team, improving our lead generation efforts, signing new logos, and adding subscription-based services.” Kitov continued, “We are experiencing increased awareness of security breaches and corporations are allocating more resources to implement policy-driven automation to address the security threats of tomorrow. We are proud of the progress we’ve made as we reach the one-year mark of announcing the transition to subscription, and are continuing to execute on our strategic objectives in 2022.” Financial Highlights for the Fourth Quarter Ended December 31, 2021 Revenue: Total revenue was $35.8 million, up 16% compared with the fourth quarter of 2020. Product revenue was $19.1 million, up 27% compared with the fourth quarter of 2020. Maintenance and professional services revenue was $16.8 million, up 5% compared with the fourth quarter of 2020. Gross Profit: GAAP gross profit was $29.7 million, or 83% of total revenue, compared to $25.6 million in the fourth quarter of 2020, or 83% of total revenue. Non-GAAP gross profit was $30.1 million, or 84% of total revenue, compared to $26.1 million in the fourth quarter of 2020, or 84% of total revenue. Operating Income (Loss): GAAP operating loss was $3.1 million, compared to operating loss of $3.5 million in the fourth quarter of 2020. Non-GAAP operating income was $0.1 million, compared to non-GAAP operating income of $0.4 million in the fourth quarter of 2020. Net Loss: GAAP net loss was $4.0 million, or a loss of $0.11 per diluted share, compared to a GAAP net loss of $4.4 million, or $0.12 per diluted share, in the fourth quarter of 2020. Non-GAAP net loss was $1.6 million, or a loss of $0.04 per diluted share, compared to non-GAAP net loss of $1.0 million, or $0.03 per diluted share, in the fourth quarter of 2020. Financial Highlights for the Full Year Ended December 31, 2021 Revenue: Total revenue was $110.9 million, up 10% compared with 2020. Product revenue was $46.6 million, up 20% compared with 2020. Maintenance and professional services revenue was $64.4 million, up 4% compared with 2020. Gross Profit: GAAP gross profit was $87.8 million, or 79% of total revenue, compared to $80.6 million in 2020, or 80% of total revenue. Non-GAAP gross profit was $89.6 million, or 81% of total revenue, compared to $82.6 million in 2020, or 82% of total revenue. Operating Loss: GAAP operating loss was $36.3 million, compared to operating loss of $33.9 million in 2020. Non-GAAP operating loss was $22.4 million, compared to non-GAAP operating loss of $18.5 million in 2020. Net Loss: GAAP net loss was $36.9 million, or a loss of $0.99 per diluted share, compared to GAAP net loss of $35.4 million, or $0.99 per diluted share, in 2020. Non-GAAP net loss was $25.8 million, or a loss of $0.69 per diluted share, compared to non-GAAP net loss of $20.6 million, or $0.58 per diluted share, in 2020. Balance Sheet and Cash Flow: Cash flow used in operating activities during the twelve months ended December 31, 2021 was $14.2 million, compared to cash flow used in operating activities of $17.4 million during the twelve months ended December 31, 2020. Total cash, cash equivalents, restricted cash and marketable securities as of December 31, 2021 were $89.4 million, compared to $104.0 million as of December 31, 2020. The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating income and net income for the three and twelve months ended December 31, 2021 and 2020. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.” Recent Business Highlights Introduced Security Policy Builder App to Marketplace which automates the design of corporate security access policies across the hybrid environment, reducing complexity and time for organizations. Tufin Orchestration Suite Named Best Network Security Solution by the 2021 Tech Ascension Awards. Extended Security Policy Management Leadership to SASE which provides unified visibility and simplified policy management for cloud-enabled organizations. Named Policy Management Solution of the Year by CyberSecurity Breakthrough Awards. Signed largest deal in the past three years. Business Outlook Based on information available as of February 10, 2022, Tufin is issuing guidance as indicated below: First Quarter 2022: Total revenue between $23.0 and $27.0 million. Non-GAAP operating loss between $11.5 and $8.1 million. Full Year 2022: Total revenue between $123.0 and $129.0 million. Non-GAAP operating loss between $28.9 and $23.8 million. Conference Call Information In conjuntion with this announcement, the Company will host a conference call today, February 10, 2022, at 8:00 a.m. Eastern Time. To participate in the call, please dial 877-407-2988 in the U.S. or 201-389-0923 for international participants and enter Conference ID# 13726295. The call will also be webcast live on Tufin’s Investor Relations website at investors.tufin.com. Following the conference call, an archive of the webcast will be available on the investor relations section of the Company website three hours after the live call ends. About Tufin Tufin (NYSE: TUFN) simplifies management of some of the largest, most complex networks in the world, consisting of thousands of firewall and network devices and emerging hybrid cloud infrastructures. Enterprises select the company’s Tufin Orchestration Suite™ to increase agility in the face of ever-changing business demands while maintaining a robust security posture. The Suite reduces the attack surface and meets the need for greater visibility into secure and reliable application connectivity. With over 2,000 customers since its inception, Tufin’s network security automation enables enterprises to implement changes in minutes instead of days, while improving their security posture and business agility. Non-GAAP Financial Measures We believe that providing non-GAAP financial measures that exclude, as applicable, share-based compensation expense and certain non-recurring costs, as well as, the tax effect of these non-GAAP adjustments, allows for more meaningful comparisons between our operating results from period to period. These non-GAAP financial measures are an important tool for financial and operational decision-making and for evaluating our operating results over different periods: We define non-GAAP gross profit as gross profit excluding share-based compensation expense. We define non-GAAP operating income (loss) as operating income (loss) excluding share-based compensation expense, shelf registration costs and one-time expenses associated with the reorganization of one of our subsidiaries. We define non-GAAP net income (loss) as net income (loss) excluding share-based compensation expense, shelf registration costs and one-time expenses associated with the reorganization of one of our subsidiaries and the tax effect of these non-GAAP adjustments. Because of varying available valuation methodologies, subjective assumptions and the variety of equity instruments that can impact a company’s non-cash expense, we believe that providing non-GAAP financial measures that exclude non-cash share-based compensation expense allow for more meaningful comparisons between our operating results from period to period. In addition, we believe that providing non-GAAP financial measures that exclude shelf registration costs and one-time expenses associated with the reorganization of one of our subsidiaries allow for more meaningful comparisons between our operating results from period to period since these non-recurring costs are not representative or indicative of our ongoing operations. We also believe that the tax effects related to the non-GAAP adjustments set forth above do not reflect the performance of our core business and would impact period-to-period comparability. Other companies, including companies in our industry, may calculate non-GAAP gross profit, non-GAAP operating income (loss) and non-GAAP net income (loss) differently or not at all, which reduces the usefulness these non-GAAP financial measures for comparison. You should consider these non-GAAP financial measures along with other financial performance measures, including gross profit, operating income (loss) and net income (loss), and our financial results presented in accordance with U.S. GAAP. Tufin urges investors to review the reconciliation of its non-GAAP financial measures to the comparable U.S. GAAP financial measures included below, and not to rely on any single financial measure to evaluate its business. Guidance for non-GAAP financial measures excludes, as applicable, share-based compensation expense and certain non-recurring costs, as applicable. A reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures is not available on a forward-looking basis due to the uncertainty regarding, and the potential variability and significance of, the amounts of share-based compensation expense and certain non-recurring costs, as applicable, that are excluded from the guidance. Accordingly, a reconciliation of the non-GAAP financial measures guidance to the corresponding GAAP measures for future periods is not available without unreasonable effort. Cautionary Language Concerning Forward-Looking Statements This release contains forward-looking statements, which express the current beliefs and expectations of Tufin’s management. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: the impact of the novel coronavirus (“COVID-19”) on the budgets of our clients and on economic conditions generally; successful management of our business model, as well as current and future growth, particularly with respect to our plans to transition to a subscription-based business model over time; political conditions and economic downturns, particularly in the areas where we operate; compliance, managerial and regulatory risks associated with international sales and operations; our expectation that policy-centric, automated solutions will garner a growing share of enterprise security spending; our expectations for growth in certain key verticals and geographic regions and our intention to expand internationally; our ability to maintain effective internal controls over financial reporting; our expectations concerning seasonality and the predictability of our sales cycle; our expectations regarding customer relationships developed by our hybrid sales model; our expectations regarding customer relationships, including our ability to acquire new customers or sell additional products and services to existing customers; competition from a wide variety of competitive vendors; our ability to compete and increase positive market awareness of our brand; our ability to align future and past performance by generating sufficient revenue; the compatibility of our offerings with the existing technologies of our customers; plans to deploy additional cloud-based subscription products over time; reliance on certain products and customers to generate large portions of our revenue, as well as reliance on a single third-party manufacture to fulfill certain orders; our intention to make further investments in our products, including the Tufin Orchestration Suite; our expectations regarding sales of our newest business product, SecureCloud, as well as sales driven by channel partners and technology alliance partners through joint selling efforts; out dependence on a single manufacturer to fulfill certain software license orders; the effect of cybersecurity threats or attacks on our technologies, products or services; real or perceived shortcomings, defects or vulnerabilities in our solutions or internal network system; compliance with laws, regulations and requirements in the jurisdictions where we operate; expectations regarding the outcome of current litigation; ability to protect and defend our intellectual property rights; effectively managing, investing in, growing and maintaining key personnel; growth in the enterprise security and network management product markets; volatility of our share price and trading market activity; impact of being incorporated and located in Israel; expectations regarding our tax classifications; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. TUFIN SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (Unaudited) December 31, December 31, 2020 2021 Assets CURRENT ASSETS: Cash and cash equivalents 58,449 44,439 Marketable Securities - short term 19,586 18,177 Accounts receivable (net of allowance for credit losses of $85 on December 31, 2020 and December 31, 2021) 16,674 19,156 Prepaid expenses and other current assets 7,159 8,765 Total current assets 101,868 90,537 NON-CURRENT ASSETS: Long-term restricted bank deposits 3,268 3,251 Marketable Securities - long term 22,705 23,514 Property and equipment, net 4,502 5,007 Operating lease assets 18,802 16,457 Deferred costs 6,348 8,728 Deferred tax assets 1,346 2,533 Other non-current assets 1,512 1,366 Total non-current assets 58,483 60,856 Total assets 160,351 151,393 TUFIN SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED BALANCE SHEETS U.S. dollars in thousands (except share data) (Unaudited) December 31, December 31, 2020 2021 LIABILITIES AND SHAREHOLDERS’ EQUITY CURRENT LIABILITIES: Accounts payable 4,147 5,191 Employee and payroll accrued expenses 17,985 21,123 Other accounts payable 578 677 Operating lease liabilities – current 3,185 3,437 Deferred revenues 24,940 28,386 Total current liabilities 50,835 58,814 NON-CURRENT LIABILITIES: Long-term deferred revenues 12,815 18,740 Non-current operating lease liabilities 20,240 17,837 Other non-current liabilities 1,282 1,681 Total non-current liabilities 34,337 38,258 Total liabilities 85,172 97,072 COMMITMENTS AND CONTINGENCIES SHAREHOLDERS’ EQUITY: Ordinary shares of NIS 0.015 par value; 150,000,000 shares authorized at December 31, 2020 and December 31, 2021; 35,972,470 and 37,851,120 shares issued and outstanding at December 31, 2020 and December 31, 2021; 148 157 Additional paid-in capital 178,864 195,041 Accumulated other comprehensive income (loss) 5 (113) Accumulated deficit (103,838) (140,764) TOTAL SHAREHOLDERS’ EQUITY 75,179 54,321 TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY 160,351 151,393 TUFIN SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS U.S. dollars in thousands (except per share amounts) (Unaudited) Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2020 2021 2020 2021 Revenues: Product 14,985 19,081 38,690 46,593 Maintenance and professional services 15,967 16,755 62,144 64,356 Total revenues 30,952 35,836 100,834 110,949 Cost of revenues: Product 1,204 1,116 2,940 3,291 Maintenance and professional services 4,150 4,984 17,307 19,821 Total cost of revenues 5,354 6,100 20,247 23,112 Gross profit 25,598 29,736 80,587 87,837 Operating expenses: Research and development 8,696 9,856 34,978 39,584 Sales and marketing 15,031 16,691 59,484 60,378 General and administrative 5,332 6,291 20,050 24,204 Total operating expenses 29,059 32,838 114,512 124,166 Operating loss (3,461) (3,102) (33,925) (36,329) Financial income (expense), net (562) (478) 114 (1,104) Loss before taxes on income (4,023) (3,580) (33,811) (37,433) Taxes on income (379) (452) (1,595) 507 Net loss (4,402) (4,032) (35,406) (36,926) Basic and diluted net loss per ordinary share (0.12) (0.11) (0.99) (0.99) Weighted average number of shares used in computing net loss per ordinary share- basic and diluted 35,833 37,807 35,674 37,180 Share-based Compensation Expense: Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2020 2021 2020 2021 Cost of revenues 488 358 2,024 1,812 Research and development 1,010 659 4,437 3,867 Sales and marketing 1,308 1,035 4,635 3,772 General and administrative 1,035 1,130 3,929 4,445 Total share-based compensation expense 3,841 3,182 15,025 13,896 TUFIN SOFTWARE TECHNOLOGIES LTD. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS U.S. dollars in thousands (Unaudited) Year Ended December 31, 2020 2021 CASH FLOWS FROM OPERATING ACTIVITIES: Net loss (35,406) (36,926) Adjustment to reconcile net loss to net cash used in operating activities: Depreciation 1,523 1,904 Share-based compensation 15,025 13,896 Amortization of premium and accretion of discount on marketable securities, net 95 308 Exchange rate differences on cash, cash equivalents and restricted cash (1,146) 179 Change in operating assets and liabilities items: Accounts receivable, net (452) (2,482) Prepaid expenses and other current assets (2,640) (2,174) Deferred costs (665) (2,344) Deferred taxes 313 (1,187) Other non-current assets 62 146 Accounts payable (247) 1,044 Employee and payroll accrued expenses 3,275 3,627 Other accounts payable and non-current liabilities (416) 202 Net change in operating lease accounts 1,048 194 Deferred revenues 2,192 9,371 Net cash used in operating activities (17,439) (14,242) CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets (2,070) (1,678) Investment in marketable securities (44,381) (29,227) Proceeds from maturities of marketable securities 2,069 29,414 Net cash used in investing activities (44,382) (1,491) CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from exercise of stock options 1,376 2,374 Changes in proceeds from withholdings related to stock plans (713) (489) Net cash provided by financing activities 663 1,885 Effect of exchange rate changes on cash, cash equivalents and restricted cash 1,146 (179) DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH (60,012) (14,027) CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR 121,729 61,717 CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR 61,717 47,690 Reconciliation of Gross Profit to Non-GAAP Gross Profit: Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2020 2021 2020 2021 Gross profit 25,598 29,736 80,587 87,837 Plus: Share-based compensation 488 358 2,024 1,812 Non-GAAP gross profit 26,086 30,094 82,611 89,649 Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss): Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2020 2021 2020 2021 Operating loss (3,461) (3,102) (33,925) (36,329) Plus: Share-based compensation 3,841 3,182 15,025 13,896 Shelf registration costs - - 126 - One-time reorganization charges - - 322 - - - - - Non-GAAP Operating income (loss) 380 80 (18,452) (22,433) Reconciliation of Net Loss to Non-GAAP Net Loss: Three Months Ended Year Ended December 31, December 31, December 31, December 31, 2020 2021 2020 2021 Net loss (4,402) (4,032) (35,406) (36,926) Plus: Share-based compensation 3,841 3,182 15,025 13,896 Shelf registration costs - - 126 - One-time reorganization charges - - 322 - Taxes on income related to non-GAAP adjustments (416) (713) (701) (2,790) Non-GAAP Net loss (977) (1,563) (20,634) (25,820) Non-GAAP net loss per share - basic and diluted (0.03) (0.04) (0.58) (0.69) Weighted average number of shares – basic and diluted 35,833 37,807 35,674 37,180 About Tufin Tufin (NYSE: TUFN) simplifies management of some of the largest, most complex networks in the world, consisting of thousands of firewall and network devices and emerging hybrid cloud infrastructures. Enterprises select the company’s Tufin Orchestration Suite™ to increase agility in the face of ever-changing business demands while maintaining a robust security posture. The Suite reduces the attack surface and meets the need for greater visibility into secure and reliable application connectivity. With over 2000 customers since its inception, Tufin’s network security automation enables enterprises to implement changes in minutes instead of days, while improving their security posture and business agility. Find out more at: www.tufin.com Follow Tufin on Twitter: @TufinTech Read more on Tufin’s blog: Suite Talk

The heavy selling pressure might have exhausted for Tufin (TUFN) as it is technically in oversold territory now. In addition to this technical measure, strong agreement among Wall Street analysts in revising earnings estimates higher indicates that the stock is ripe for a trend reversal.

Tufin (TUFN) appears to have found support after losing some value lately, as indicated by the formation of a hammer chart. In addition to this technical chart pattern, strong agreement among Wall Street analysts in revising earnings estimates higher enhances the stock's potential for a turnaround in the near term.

Tufin Software Technologies Ltd. (TUFN) CEO Reuven Kitov On Q3 2021 Results - Earnings Call Transcript

Tufin (TUFN) delivered earnings and revenue surprises of 32.00% and 8.61%, respectively, for the quarter ended September 2021. Do the numbers hold clues to what lies ahead for the stock?

BOSTON--(BUSINESS WIRE)--Tufin® (NYSE: TUFN), a company pioneering a policy-centric approach to security and IT operations, today announced that it will release its financial results for the third quarter ended September 30, 2021, on Tuesday, November 9, 2021, before the market opens. In conjunction with this report, the Company will host a conference call at 8:00am EDT on November 9, 2021, to discuss the Company’s third quarter financial results and its business outlook. To participate in the call, please dial 877-407-2988 in the U.S. or 201-389-0923 for international participants and enter Conference ID# 13724309. The call will also be webcast live on Tufin’s Investor Relations website at investors.tufin.com. Following the conference call, an archive of the webcast will be available on the Investor Relations section of the Company website’s two hours after the live call ends. About Tufin Tufin (NYSE: TUFN) simplifies management of some of the largest, most complex networks in the world, consisting of thousands of firewall and network devices and emerging hybrid cloud infrastructures. Enterprises select the Tufin Orchestration Suite™ to increase agility in the face of ever-changing business demands while maintaining a robust security posture. The Suite reduces the attack surface and meets the need for greater visibility into secure and reliable application connectivity. With over 2,000 customers since its inception, Tufin’s network security automation enables enterprises to implement changes in minutes instead of days, while improving their security posture and business agility. Find out more at: www.tufin.com Follow Tufin on Twitter: @TufinTech Read more on Tufin’s blog: Suite Talk Source: Tufin

BOSTON--(BUSINESS WIRE)--Tufin® (NYSE: TUFN), a company pioneering a policy-centric approach to security and IT operations, today announced Ruvi Kitov, CEO and Co-founder, will present at the Piper Sandler Global Technology Conference, taking place virtually on September 13 – 14, 2021. A webcast of Mr. Kitov's fireside chat will be available in the Events & Presentations section of Tufin's Investor Relations website on Monday, September 13. For more information, please visit: https://invest

Tufin Software Technologies Ltd. (TUFN) CEO Ruvi Kitov on Q2 2021 Results - Earnings Call Transcript