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 second quarter ended June 30, 2020.

“I am pleased with the progress we made in the second quarter, despite the challenging environment,” said Ruvi Kitov, CEO and co-founder of Tufin. “Our business improved compared to the acute disruptions due to COVID-19 that we experienced at the end of the first quarter and we are confident that our company is on the path to recovery. Customers are recognizing the critical value of increased security and efficiency that Tufin delivers in an environment where security professionals must do more with less. However, general business conditions remain challenging and uncertainty high. Our leadership position in the market, competitive advantages, strong cash position and experienced management team, positions us well to return to growth as the environment improves.”

Financial Highlights for the Second Quarter Ended June 30, 2020

Revenue:

• Total revenue was $23.0 million, down 8% compared with the second quarter of 2019.
• Product revenue was $7.9 million, down 27% compared with the second quarter of 2019.
• Maintenance and professional services revenue was $15.1 million, up 7% compared with the second quarter of 2019.

Gross Profit:

• GAAP gross profit was $18.3 million, or 79% of total revenue, compared to $20.2 million in the second quarter of 2019, or 80% of total revenue.
• Non-GAAP gross profit was $18.7 million, or 81% of total revenue, compared to $20.5 million in the second quarter of 2019, or 82% of total revenue.

Operating Loss:

• GAAP operating loss was $8.2 million, compared to $7.7 million in the second quarter of 2019.
• Non-GAAP operating loss was $4.5 million, compared to $5.1 million in the second quarter of 2019.

Net Loss:

• GAAP net loss was $8.8 million, or a loss of $0.25 per share, compared to a GAAP net loss of $8.2 million, or a loss of $0.26 per share, in the second quarter of 2019.
• Non-GAAP net loss was $5.2 million, or a loss of $0.15 per share, compared to a loss of $5.6 million, or a loss of $0.18 per share, in the second quarter of 2019.

Balance Sheet and Cash Flow:

• Cash flow used for operating activities during the six months ended June 30, 2020 was $11.2 million, compared to cash flow generated from operating activities of $1.5 million during the six months ended June 30, 2019.
• Total cash, cash equivalents, restricted cash and marketable securities as of June 30, 2020 were $108.5 million, compared to $121.7 million as of December 31, 2019.

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 six months ended June 30, 2020 and 2019. An explanation of these measures is also included under the heading “Non-GAAP Financial Measures.”

Recent Business Highlights

• Launched the Tufin Marketplace, a digital platform where customers can find and deploy apps and extensions that enhance the overall value of their security policy management implementations by integrating security policy data with other security technologies and practices.
• Launched the Tufin Vulnerability Mitigation App. The app allows organizations to ensure effective remediation and automated mitigation using a risk-based approach and is integrated with leading vulnerability management solutions to enrich vulnerability intelligence with real-time network insights
• Named Mitch DeBerdt as Country manager for Japan. In this role, Mitch will establish and execute sales strategies to grow Tufin’s business across the region. Mitch brings more than 17 years of sales experience across several leadership roles in both software and hardware, including recent leadership roles at Varonis Systems and Digital Guardian.

Business Outlook

“I’m encouraged by the overall sequential business improvement we saw in the second quarter,” said Jack Wakileh, CFO. “Our pipeline remains healthy and is higher year over year. However, due to continued uncertainty associated with COVID-19 we will not be providing specific financial guidance for Q3 or the full year at this time. We intend to resume providing guidance as soon as we have enough visibility to do so and we will evaluate this on a quarter to quarter basis.”

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.