Tufin Software Technologies Ltd. (NYSE:TUFN) Q2 2020 Earnings Conference Call - Final Transcript
Aug 12, 2020 • 08:30 am ET
Thank you. [Operator Instructions] The first question comes from the line of Sterling Auty, J.P. Morgan.
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?
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.
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?
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.
Got it. Thank you.
The next question comes from the line of Saket Kalia with Barclays.
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?
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.
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?
Sure. Hi, Saket. So let's start with the fact that after the close of Q1, we ran our relations for the full year