Tufin Software Technologies Ltd. Ordinary Shares

Greetings. Welcome to the Tufin second quarter 2021 earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Jackie Marcus, Investor Relations. Thank you. You may begin.

Thank you, Operator, and good morning, everyone. Tufin released results for the second quarter of fiscal 2021, ended June 30th, 2021, earlier this morning. If you did not receive a copy of our earnings press release, you may obtain it from the investor relations section of our website at investors.tufin.com. With me on today's call are Ruvik Hitov, Tufin's co-founder and chief executive officer, and Jack Wakile, Tufin's chief financial officer. This call is being webcasted and will be archived on the Investor Relations section of our website. Before we begin, I would like to remind everyone that any statements made in today's webcast 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 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. With that, I'd like to turn the call over to Tufin's CEO and co-founder, Ruvie Kitaf. Ruvie?

Thank you, Jackie. Good morning, everyone, and thank you for joining us today. I hope that you and your families are safe and doing well. I'm pleased to report that Tufin delivered a strong second quarter with 12% year-over-year revenue growth through a model transition while also exceeding our guidance for the top and bottom line. Our revenue beat was largely driven by 23% year-over-year growth in product revenues. Our financial results in the quarter are indicative of the strength of our team, our products, and our ability to generate a significant return on both time and human capital for our customers through automation and improved security. We finished the second quarter with $25.7 million in revenue, with subscriptions representing approximately 40% of new business for the first six months, which puts us well ahead of our targeted one third of all new business bookings being sold as subscriptions in 2021. 61% of the bookings from new logos in the first six months were subscription, compared to our target of reaching 50% by the end of 2021. I'm encouraged by our progress thus far in 2021, and I believe that we're well positioned for the second half of the year. While we made significant progress in our business, I'm also pleased with our efforts to improve our sales execution as we build on the great team that we have at Tufin. As I mentioned last quarter, we have been hard at work on aligning sales and marketing teams to ensure that we're well positioned to capture new opportunities. Our Chief Revenue Officer, Ray Brancato, has made significant strides in driving these initiatives, by creating a strong team with key regional hires in the Americas. Furthermore, our customers and users inspire us to drive innovation every day, and I'm pleased to report the success of our fifth annual Tofinovate user conference held virtually again this year, in which we brought together nearly 1,000 Tufan customers and partners to hear about security policy automation and our plans for the next 12 months. The second quarter was a marked improvement for us and provides proof that our shift from a perpetual to subscription license is working both for us and for our customers. Before I discuss some of our recent customer wins, I'd like to now turn the call over to Jack for a deeper discussion of our financials. Jack?