Tufin Software Technologies Ltd. (NYSE:TUFN) Q2 2020 Earnings Conference Call - Final Transcript

Good morning, and thank you for standing by. We would like to welcome everyone to the Tufin's Second Quarter 2020 Earnings Conference Call.

[Operator Instructions] Thank you. I would now like to turn the call over to your host, Ryan Burkart, Director of Investor Relations. Please go ahead, sir.

Thanks, operator. Good morning, everyone, and thank you for joining Tufin's Second Quarter 2020 financial results conference call. With me on the call today is Jack Wakileh, our Chief Financial Officer and Ruvi Kitov, our Chief Executive Officer.

Before we begin, I would like to remind everyone that any statements made on 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 Security Litigation Reform Act.

These forward-looking statements are based on information available to Tufin's management team as of today, and involve 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 a 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.

I would also like to inform you that we will be participating in the Oppenheimer, D.A. Davidson, Colliers, and Jefferies virtual conferences in the coming days and weeks. Please reach out to me if you're interested in joining our schedule at any of these.

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

Thanks, Ryan, and good morning, everyone. Thank you for joining us today. I hope that all of you and your families are safe and healthy. I'm happy to report that our business improved in Q2 compared to the acute disruptions due to COVID-19 that we experienced at the end of the first quarter. We feel that our business is now on the path to recovery, along with the overall economy.

However, general business conditions remain challenging and uncertainty is high due to the ongoing impact of the pandemic on our customers and the economy generally. Revenues were $23 million in the quarter, down 8% year-over-year, but up 8% sequentially. Our product revenues improved 36% from Q1 levels and we continue to see good renewal terms.

On the cost side, we have already seen a meaningful impact from the cost reduction actions we took earlier in Q2 and we ended the quarter with a strong cash position of $109 million. On