TUFN - Tufin Software Remains A Show-Me Story After Weak Q1 Results And Guidance

• Company reports Q1 revenues below consensus expectations and provides weaker-than-expected Q2 guidance while maintaining full-year expectations.
• On a more positive note, Tufin reported strong cash flow and lowered full-year operating loss expectations significantly.
• According to management, the recently commenced transition to a subscription-based sales model is exceeding initial expectations thus resulting in lower reported revenues.
• Analysts reduced price targets across the board mostly due to the company's ongoing lack of operating leverage and revenue growth in an improving network policy automation market.
• While it's too early to average down or initiate new positions, the company's shares are dirt cheap at below 2x EV/Revenue. Given the strong upside potential, investors should keep Tufin Software on their watchlist and closely monitor the company's progress.

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