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Tufin Software IPO: What You Need To Know

Elizabeth Balboa

Cyberattacks are more frequent and sophisticated. Security regulations are more stringent. And software is advancing at rapid pace.

Tufin Software Technologies Ltd. aims to address cybersecurity needs in this dynamic environment, and to support its endeavors, it’s seeking capital in the public markets. Here’s what you should know before buying into Tufin’s IPO.

The Offering

Tufin Software Technologies on Thursday will issue 7.7 million shares on the New York Stock Exchange under ticker "TUFN," according to the firm’s F-1 filing. Priced at $14, the offering represents 23.7 percent of outstanding shares.

Underwriters include JPMorgan, Barclays, Jefferies, Oppenheimer, Piper Jaffray, Stifel and William Blair.

The company qualifies as an emerging growth company under the U.S. JOBS Act, which exempts management from certain SEC disclosure requirements.

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The Company

With dual headquarters in Boston and Tel Aviv, Tufin has supported more than 2,000 customers in 70 countries with cloud, security and IT solutions.

“Our products govern how individuals, systems and applications are permitted to communicate and provide policy-based security automation, enabling customers to reduce the time to implement complex network changes from days to minutes,” according to the prospectus.

Tufin’s solutions include end-to-end automation of security changes, a unified security policy, and a centralized control layer. With these offerings, management hopes to seize market control not only of the $133 billion security market, but also of the IT operations management, automation and configuration management, policy and compliance, and vulnerability assessment markets.

“We believe that our solutions will attract a meaningful portion of these markets, resulting in a multi-billion dollar addressable market,” the F-1 read. “As we continue to innovate and introduce new products, the use cases for our solutions will expand, which we expect will lead to incremental growth in our addressable market opportunity.”

The Finances

In 2018, Tufin reported a net loss of $4.26 million on revenues of $85 million. Both metrics accelerated from the previous year. In 2017, management lost $2.79 million on revenues of $64.5 million.

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