Revenue:
|
• Total revenue was $29.5 million, up 15% compared with the second quarter of 2021.
|
• Product revenue was $13.4 million, up 38% compared with the secondquarter of 2021.
|
• Maintenance and professional services revenue was $16.1 million, flat compared with the secondquarter of 2021.
|
Gross Profit:
|
• GAAP gross profit was $23.3 million, or 79% of total revenue, compared to $19.9 million in the second quarter of 2021, or 77% of total revenue.
|
• Non-GAAP gross profit was $23.9 million, or 81% of total revenue, compared to $20.5 million in the second quarter of 2021, or 80% of total revenue.
|
Operating Loss:
|
• GAAP operating loss was $14.3 million, compared to operating loss of $11.4 million in the secondquarter of 2021.
• Non-GAAP operating loss was $7.1 million, compared to non-GAAP operating loss of $7.6 million in the secondquarter of 2021.
|
Net Loss:
|
• GAAP net loss was $15.6 million, or a loss of $0.40 per diluted share, compared to a GAAP net loss of $11.9 million, or $0.32 per diluted share, in the secondquarter of 2021.
• Non-GAAP net loss was $8.7 million, or a loss of $0.23 per diluted share, compared to non-GAAP net loss of $8.2 million, or $0.22 per diluted share, in the secondquarter of 2021.
|
Balance Sheet and Cash Flow:
|
•
|
Cash flow used for operating activities during the six months ended June 30, 2022 was $0.7 million, compared to cash flow used for operating activities of $1.9 million during the six months ended June 30, 2021.
|
• |
Total cash, cash equivalents, restricted cash and marketable securities as of June 30, 2022 were $87.3 million, compared to $89.4 million as of December 31, 2021.
|
The tables at the end of this press release include a reconciliation of GAAP to non-GAAP gross profit, operating loss and net loss for the three and six months ended June 30, 2022 and 2021. An explanation of these measures is also included under the heading "Non-GAAP Financial Measures."
|
•
|
Tufin released Tufin Orchestration Suite R22-1, which offers new support for Microsoft Azure Firewall, new next generation firewall support for Check Point and Palo Alto Networks Panorama™, as well as new querying and dashboard capabilities.
|
• |
Cyber Defense Awards, in conjunction with Cyber Defense Magazine, announced that Tufin was a "Cutting Edge" winner in Network and Security Management in the 2022 Global Infosec Awards. Cyber Defense Magazine considers startups and early-stage players to find those with the potential to stop breaches in a new and innovative way.
|
• |
CRN recognized Tufin Orchestration Suite R22-1 as one of the 10 Coolest Cloud Security Tools and Products 2022 (So Far). CRN looked at cloud security products so far this year, recognizing offerings produced by and for big and small firms.
|
Transaction with Turn/River Capital
As announced on April 6, 2022, Tufin entered into a definitive agreement whereby funds advised by Turn/River Capital, a U.S.-based private equity firm will acquire all outstanding ordinary shares of Tufin. The shareholders of the Company approved the merger proposal brought before the special general meeting of shareholders held on June 7, 2022, by the requisite majority in accordance with the Israeli Companies Law. The transaction remains on track, subject to the satisfaction of certain additional customary closing conditions. Upon completion of the transaction, the Company's ordinary shares will no longer be listed on any public market.
In light of the pending transaction, Tufin will not be hosting an earnings conference call to discuss these results and Tufin will not be providing guidance for the third quarter or for the full fiscal year 2022.
|
•
|
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 and expenses associated with the pending merger transaction.
|
• |
We define non-GAAP net income (loss) as net income (loss) excluding share-based compensation expense and expenses associated with the pending merger transaction and the tax effect of these non-GAAP adjustments.
|
December 31,
|
June 30,
| |||||||
2021
|
2022
| |||||||
Assets
| ||||||||
CURRENT ASSETS:
| ||||||||
Cash and cash equivalents
|
$
|
44,439
|
53,251
| |||||
Marketable Securities - short term
|
18,177
|
25,203
| ||||||
Accounts receivable (net of allowance for credit losses of $85 and $116 at December 31, 2021
and June 30, 2022 respectively)
|
19,156
|
12,913
| ||||||
Prepaid expenses and other current assets
|
8,765
|
7,952
| ||||||
Total current assets
|
90,537
|
99,319
| ||||||
NON CURRENT ASSETS:
| ||||||||
Long-term restricted bank deposits
|
3,251
|
3,997
| ||||||
Marketable Securities - long term
|
23,514
|
4,830
| ||||||
Property and equipment, net
|
5,007
|
5,178
| ||||||
Operating lease assets
|
16,457
|
15,259
| ||||||
Deferred costs
|
8,728
|
8,436
| ||||||
Deferred tax assets
|
2,533
|
3,265
| ||||||
Other non-current assets
|
1,366
|
1,503
| ||||||
Total non-current assets
|
60,856
|
42,468
| ||||||
Total assets
|
$
|
151,393
|
141,787
|
December 31,
|
June 30,
| |||||||
2021
|
2022
| |||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
| ||||||||
CURRENT LIABILITIES:
| ||||||||
Accounts payable
|
$
|
5,191
|
11,858
| |||||
Employee and payroll accrued expenses
|
21,123
|
17,558
| ||||||
Other accounts payables
|
677
|
2,088
| ||||||
Operating lease liabilities - current
|
3,437
|
3,213
| ||||||
Deferred revenues
|
28,386
|
34,006
| ||||||
Total current liabilities
|
58,814
|
68,723
| ||||||
NON-CURRENT LIABILITIES:
| ||||||||
Long-term deferred revenues
|
18,740
|
25,512
| ||||||
Non-current operating lease liabilities
|
17,837
|
14,663
| ||||||
Other non-current liabilities
|
1,681
|
1,899
| ||||||
Total non-current liabilities
|
38,258
|
42,074
| ||||||
Total liabilities-
|
97,072
|
110,797
| ||||||
SHAREHOLDERS' EQUITY:
| ||||||||
Ordinary shares of NIS 0.015 par value; 150,000,000 shares authorized at December 31, 2021 and June 30, 2022, respectively; 37,851,120 and 38,839,749 shares issued and outstanding at December 31, 2021 and June 30, 2022, respectively;
|
157
|
161
| ||||||
Additional paid-in capital
|
195,041
|
203,284
| ||||||
Accumulated other comprehensive income
|
(113
|
)
|
(618
|
)
| ||||
Accumulated deficit
|
(140,764
|
)
|
(171,837
|
)
| ||||
TOTAL SHAREHOLDERS' EQUITY
|
54,321
|
30,990
| ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
151,393
|
141,787
|
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
| |||||||||||||
2021
|
2022
|
2021
|
2022
| |||||||||||||
Revenues:
| ||||||||||||||||
Product
|
9,747
|
13,438
|
15,778
|
23,132
| ||||||||||||
Maintenance and professional services
|
15,991
|
16,067
|
31,320
|
32,435
| ||||||||||||
Total revenues
|
25,738
|
29,505
|
47,098
|
55,567
| ||||||||||||
Cost of revenues:
| ||||||||||||||||
Product
|
578
|
926
|
1,331
|
1,662
| ||||||||||||
Maintenance and professional services
|
5,215
|
5,305
|
9,866
|
10,457
| ||||||||||||
Total cost of revenues
|
5,793
|
6,231
|
11,197
|
12,119
| ||||||||||||
Gross profit
|
19,945
|
23,274
|
35,901
|
43,448
| ||||||||||||
Operating expenses:
| ||||||||||||||||
Research and development
|
10,414
|
10,515
|
20,054
|
20,838
| ||||||||||||
Sales and marketing
|
14,668
|
16,989
|
28,232
|
33,262
| ||||||||||||
General and administrative
|
6,289
|
10,115
|
11,885
|
19,106
| ||||||||||||
Total operating expenses
|
31,371
|
37,619
|
60,171
|
73,206
| ||||||||||||
Operating loss
|
(11,426
|
)
|
(14,345
|
)
|
(24,270
|
)
|
(29,758
|
)
| ||||||||
Financial income, net
|
(306
|
)
|
(855
|
)
|
(241
|
)
|
(606
|
)
| ||||||||
Loss before taxes on income
|
(11,732
|
)
|
(15,200
|
)
|
(24,511
|
)
|
(30,364
|
)
| ||||||||
Taxes on income
|
(133
|
)
|
(362
|
)
|
1,056
|
(709
|
)
| |||||||||
Net loss
|
(11,865
|
)
|
(15,562
|
)
|
(23,455
|
)
|
(31,073
|
)
| ||||||||
Basic and diluted net loss per ordinary share
|
(0.32
|
)
|
(0.40
|
)
|
(0.64
|
)
|
(0.81
|
)
| ||||||||
Weighted average number of shares used in computing net loss per ordinary share, basic and diluted
|
37,023
|
38,578
|
36,715
|
38,300
|
Share-based Compensation Expense:
| ||||||||||||||||
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
| |||||||||||||
2021
|
2022
|
2021
|
2022
| |||||||||||||
Cost of revenues
|
538
|
619
|
1,061
|
990
| ||||||||||||
Research and development
|
1,235
|
1,016
|
2,362
|
1,774
| ||||||||||||
Sales and marketing
|
902
|
1,287
|
1,643
|
2,320
| ||||||||||||
General and administrative
|
1,147
|
965
|
2,104
|
2,082
| ||||||||||||
Total share-based compensation expense
|
3,822
|
3,887
|
7,170
|
7,166
|
Six Months Ended
| ||||||||
June 30,
| ||||||||
2021
|
2022
| |||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
| ||||||||
Net loss
|
(23,455
|
)
|
(31,073
|
)
| ||||
Adjustment to reconcile net loss to net cash used in operating activities:
| ||||||||
Depreciation
|
837
|
976
| ||||||
Share-based compensation
|
7,170
|
7,166
| ||||||
Amortization of premium on marketable securities
|
167
|
90
| ||||||
Exchange rate differences on cash, cash equivalents and restricted cash
|
173
|
975
| ||||||
Change in operating assets and liabilities items:
| ||||||||
Accounts receivable, net
|
6,296
|
6,243
| ||||||
Prepaid expenses and other current assets
|
(1,483
|
)
|
379
| |||||
Deferred costs
|
290
|
355
| ||||||
Deferred taxes
|
(507
|
)
|
(732
|
)
| ||||
Other non-current assets
|
155
|
(137
|
)
| |||||
Accounts payable
|
1,731
|
6,667
| ||||||
Employee and payroll accrued expenses
|
(1,650
|
)
|
(3,692
|
)
| ||||
Other accounts payable and non-current liabilities
|
178
|
1,884
| ||||||
Operating lease
|
(472
|
)
|
(2,200
|
)
| ||||
Deferred revenues
|
8,653
|
12,392
| ||||||
Net cash used in operating activities
|
(1,917
|
)
|
(707
|
)
| ||||
CASH FLOWS FROM INVESTING ACTIVITIES:
| ||||||||
Purchase of fixed assets
|
(938
|
)
|
(941
|
)
| ||||
Investment in marketable securities
|
(16,127
|
)
|
(1,988
|
)
| ||||
Proceeds from maturities of marketable securities
|
15,409
|
13,018
| ||||||
Net cash provided by (used in) investing activities
|
(1,656
|
)
|
10,089
| |||||
CASH FLOWS FROM FINANCING ACTIVITIES:
| ||||||||
Proceeds from exercise of share options
|
1,580
|
1,022
| ||||||
Changes in withholding tax related to employee share plans
|
(470
|
)
|
129
| |||||
Net cash provided by financing activities
|
1,110
|
1,151
| ||||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash
|
(173
|
)
|
(975
|
)
| ||||
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
|
(2,636
|
)
|
9,558
| |||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD
|
61,717
|
47,690
| ||||||
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD
|
59,081
|
57,248
|
Reconciliation of Gross Profit to Non-GAAP Gross Profit:
| ||||||||||||||||
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
| |||||||||||||
2021
|
2022
|
2021
|
2022
| |||||||||||||
Gross profit
|
19,945
|
23,274
|
35,901
|
43,448
| ||||||||||||
Plus:
| ||||||||||||||||
Share-based compensation
|
538
|
619
|
1,061
|
990
| ||||||||||||
Non-GAAP gross profit
|
20,483
|
23,893
|
36,962
|
44,438
|
Reconciliation of Operating Loss to Non-GAAP Operating Loss:
| ||||||||||||||||
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
| |||||||||||||
2021
|
2022
|
2021
|
2022
| |||||||||||||
Operating loss
|
(11,426
|
)
|
(14,345
|
)
|
(24,270
|
)
|
(29,758
|
)
| ||||||||
Plus:
| ||||||||||||||||
Share-based compensation
|
3,822
|
3,887
|
7,170
|
7,166
| ||||||||||||
Expenses associated with the pending merger transaction
|
-
|
3,309
|
-
|
5,310
| ||||||||||||
Non-GAAP operating loss
|
(7,604
|
)
|
(7,149
|
)
|
(17,100
|
)
|
(17,282
|
)
|
Reconciliation of Net Loss to Non-GAAP Net Loss:
| ||||||||||||||||
Three Months Ended
|
Six Months Ended
| |||||||||||||||
June 30,
|
June 30,
|
June 30,
|
June 30,
| |||||||||||||
2021
|
2022
|
2021
|
2022
| |||||||||||||
Net loss
|
(11,865
|
)
|
(15,562
|
)
|
(23,455
|
)
|
(31,073
|
)
| ||||||||
Plus:
| ||||||||||||||||
Share-based compensation
|
3,822
|
3,887
|
7,170
|
7,166
| ||||||||||||
Expenses associated with the pending merger transaction
|
3,309
|
5,310
| ||||||||||||||
Taxes on income related to non-GAAP adjustments
|
(114
|
)
|
(345
|
)
|
(1,719
|
)
|
(668
|
)
| ||||||||
Non-GAAP net loss
|
(8,157
|
)
|
(8,711
|
)
|
(18,004
|
)
|
(19,265
|
)
| ||||||||
Non-GAAP net income per share - basic and diluted
|
(0.22
|
)
|
(0.23
|
)
|
(0.49
|
)
|
(0.50
|
)
| ||||||||
Weighted average number of shares - basic and diluted
|
37,023
|
38,578
|
36,715
|
38,300
|
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Disclaimer
Tufin Software Technologies Ltd. published this content on 18 August 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 August 2022 13:23:05 UTC.