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

Aug 12, 2020 • 08:30 am ET

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

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Q & A
Operator
Operator

Thank you. [Operator Instructions] The first question comes from the line of Sterling Auty, J.P. Morgan.

Analyst
Sterling Auty

Yeah, thanks. Hi guys. So, wonder if you can highlight for us if all of the personnel changes that you wanted to make are complete? So do you have all of the people in the positions that you want and how they started to ramp?

Executive
Ruvi Kitov

Hi Sterling, this is Ruvi. So thanks for the question. Yeah, so we've completed the personnel changes from our cost reduction perspective that was completed in Q2. And as mentioned on the call, we're seeing the effects of that already in Q2 from a cost perspective. At this point, we're not planning to make any more reductions in staff.

Analyst
Sterling Auty

Alright, great. And then you talked about the pipeline and sales cycle dynamics. So, can you give us a sense of what the tone of business through the month of July looked like, and how would you characterize the quality of the pipeline? You mentioned it in figure, but how would you talk to the quality of the pipeline versus a quarter ago?

Executive
Ruvi Kitov

So July was a good month and we're starting the quarter well. The pipeline is healthy. It's been scrubbed a lot in the past six months. So we feel that it's been well vetted and it's up year-over-year compared to second half of 2019, if you compare at this point. Challenges from our perspective, the timing of the monetization of the pipeline, given the general business uncertainty and the pressures on the budget that we're seeing. So we feel good about the pipeline, but we're cautious on the timing of monetization.

Analyst
Sterling Auty

Got it. Thank you.

Operator
Operator

The next question comes from the line of Saket Kalia with Barclays.

Analyst
Saket Kalia

Okay, great. Hey guys. Thanks for taking my questions here. Ruvi, maybe for you, can you just refresh us a little bit on the competitive environment and how that's changed, if at all, kind of post COVID-19, if you will?

Executive
Ruvi Kitov

Sure. Hi, Saket. Thanks for the question. Our market has always been competitive and that hasn't really changed. We continue to see the same companies and competitive deals, but our win rates continue to be very good. So the competitive challenges really haven't changed. It's more of COVID-19 factors that we talked about from our perspective that have impacted the business. From our perspective that's a temporary impact, but it's not due to competitive change.

Analyst
Saket Kalia

Got it. That makes a lot of sense. Jack, maybe for my follow-up for you. Good to see the expense control, maybe you can just talk a little bit about how much of the expense savings this quarter are temporary, in your view, meaning items that might come back after COVID? And how much of it is sort of -- as a result of the cost reduction actions that were done in Q2?

Executive
Jack Wakileh

Sure. Hi, Saket. So let's start with the fact that after the close of Q1, we ran our relations for the full year