Tufin plummets after profit warning

Ruvi Kitov and Reuven Harrison  photo: PR

The Israeli cybersecurity company's share price is now below the price in its IPO in April last year.

The share price of Israeli cybersecurity company Tufin (NYSE: TUFN) has plummeted in New York following a profit warning from the company, and is now below the price at which the company was floated last year. The price is currently down nearly 23% on yesterday's closing price, at $13.82.

<p>After the close of business yesterday, the company released preliminary unaudited results for the fourth quarter of 2019. The company now says that quarterly revenue will be $29.5-30.1 million, instead of $34-38 million per its original guidance. in the company's IPO, which took place last year., It sees a non-GAAP operating loss for the quarter of $1.1-2.6 million, which compares with previous guidance of an operating profit of $0-3 million.

<p>"We are disappointed that our revenue for the fourth quarter will be below the guidance we provided in November and, as a result, our non-GAAP operating loss will be higher than the guidance we provided," said Tufin co-founder and CEO Ruvi Kitov. "The primary reason for our revenue shortfall was our inability to close a number of transactions, primarily in North America, that we anticipated would close but did not close by the end of the quarter. Based on the information available to us, we believe the vast majority of these deals were not lost to competitors and have moved into our pipeline for 2020, and we are working on closing them. Our pipeline heading into 2020 is very healthy relative to this time in 2019."

<p>Tufin made an initial offering in April 2019 at $14 per share, and its share price rose to a peak of $30 before falling back. Two investment funds that held Tufin shares from before the IPO, Catalyst Investments L.P. and Marker LLC, recently sold part of their holdings at $17 per share.

<p>In the wake of the profit warning, Oppenheimer cut its target price for Tufin's stock by 43% from $35 to $20, but expressed confidence in the company's long-term growth potential.

<p><i>Published by Globes, Israel business news - <a href=http://en.globes.co.il>en.globes.co.il</a> - on January 9, 2020</i>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2020</i>

Ruvi Kitov and Reuven Harrison  photo: PR
Ruvi Kitov and Reuven Harrison photo: PR
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