Tufin Software Technologies Ltd. (NYSE:TUFN) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 08:30 am ET


Tufin Software Technologies Ltd. (NYSE:TUFN) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the Tufin Fourth Quarter and Full-Year 2019 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Ryan Burkart, Director of Investor Relations. Thank you. Please go ahead, sir.

Ryan Burkart

Thanks, operator. Good morning, everyone, and thank you for joining Tufin's final fourth quarter 2019 results conference call. With me on the call today are, Ruvi Kitov, our Chief Executive Officer; and Jack Wakileh, our Chief Financial Officer.

Before we begin, I would like to remind everyone that any statements made in today's conference call that express a belief, expectation, projection, forecast, anticipation or intent regarding future events and the Company's future performance may be considered forward-looking statements, as defined by the Private Securities Litigation Reform Act. These forward-looking statements are based on information available to Tufin's management team as of today, and involves risks and uncertainties, including those noted in this morning's press release, and Tufin's filings with the SEC. Such forward-looking statements are not guarantees of future performance. Actual results may differ materially from those projected in the forward-looking statements. Tufin specifically disclaims any intent or obligation to update these forward-looking statements, except as required by law.

Please note that reconciliation of any non-GAAP number to the most directly comparable GAAP number can be found in the tables of our earnings press release, located in the Investor Relations section of our website. A telephone replay of this call will be available shortly after its completion. You'll find the dial-in information in today's press release. The archived webcast will be available for one-year on the Company's website at tufin.com.

With that, I'd like to turn the call over to Tufin's CEO and Co-Founder, Ruvi Kitov.

Ruvi Kitov

Thanks, Ryan, and good morning, everyone. Thank you for joining today. Total revenue for the quarter was $30.1 million, up 3% relative to the fourth quarter of 2018, and the full-year revenue was $103.3 million, up 22% year-over-year. As we discussed on our preliminary results call in January, Q4 2019 revenue was weaker due to unexpected sales execution challenges, particularly in North America. Since the end of the year, we've been very focused on analyzing our sales operations, and taking actions to improve.

Before I talk about that in greater detail, I want to take a moment and recap 2019. 2019 was a transformative year for Tufin, and I'm proud of all that we've accomplished notwithstanding our challenges very late in the year. We generated 22% revenue growth, and surpassed the $100 million in revenue, while at the same time transitioning to life as a public company.

We continue to grow our customer base, adding world-class Global 2000 companies, while also expanding our footprint within our existing customer base, and maintaining our net renewal rate above 90%. We're confident that there is lots of room for continued