Tufin Software Technologies (TUFN) 6-K 30 Aug 21 2021 Q2 Current report (foreign) Financial data

Document and Entity Information

Document and Entity Information	6 Months Ended
	Jun. 30, 2021
Document And Entity Information
Document Type	6-K
Document Period End Date	Jun. 30, 2021
Entity File Number	001-38866
Amendment Flag	false
Entity Registrant Name	TUFIN SOFTWARE TECHNOLOGIES LTD.
Entity Central Index Key	0001757399
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Address, Address Line One	5 HaShalom Road
Entity Address, Address Line Two	ToHa Tower
Entity Address, City or Town	Tel Aviv
Entity Address, Postal Zip Code	6789205
Entity Address, Country	IL

CONDENSED CONSOLIDATED BALANCE

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 55,851	$ 58,449
Marketable Securities - short term	26,250	19,586
Accounts receivable (net of allowance for credit losses of $85 at December 31, 2020 and June 30, 2021)	10,378	16,674
Prepaid expenses and other current assets	8,460	7,159
Total current assets	100,939	101,868
NON CURRENT ASSETS:
Long-term restricted bank deposits	3,230	3,268
Marketable Securities - long term	16,603	22,705
Property and equipment, net	4,590	4,502
Deferred costs	6,131	6,348
Deferred tax assets	1,853	1,346
Operating lease assets	17,650	18,802
Other non-current assets	1,357	1,512
Total non-current assets	51,414	58,483
Total assets	152,353	160,351
CURRENT LIABILITIES:
Trade payables	5,878	4,147
Employee and payroll accrued expenses	15,865	17,985
Other accounts payables	677	578
Operating lease liabilities - current	3,238	3,185
Deferred revenues	29,695	24,940
Total current liabilities	55,353	50,835
NON-CURRENT LIABILITIES:
Long-term deferred revenues	16,713	12,815
Non-current operating lease liabilities	18,563	20,240
Other non-current liabilities	1,347	1,282
Total non-current liabilities	36,623	34,337
Total liabilities	91,976	85,172
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.015 par value; 150,000,000 shares authorized at December 31, 2020 and June 30, 2021, respectively; 35,972,470 and 37,252,251 shares issued and outstanding at December 31, 2020 and June 30, 2021, respectively;	153	148
Additional paid-in capital	187,535	178,864
Accumulated other comprehensive income (loss)	(18)	5
Accumulated deficit	(127,293)	(103,838)
TOTAL SHAREHOLDERS' EQUITY	60,377	75,179
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 152,353	$ 160,351

CONDENSED CONSOLIDATED BALANC_2

CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) $ in Thousands	Jun. 30, 2021USD ($)shares	Jun. 30, 2021₪ / shares	Dec. 31, 2020USD ($)shares	Dec. 31, 2020₪ / shares
Statement of Financial Position [Abstract]
Accounts Receivable, allowance for doubtful accounts | $	$ 85		$ 85
Ordinary shares, par value | ₪ / shares		₪ 0.015		₪ 0.015
Ordinary shares authorized	150,000,000		150,000,000
Ordinary shares issued	37,252,251		35,972,470
Ordinary shares outstanding	37,252,251		35,972,470

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Revenues:
Total revenues	$ 47,098	$ 44,276
Cost of revenues:
Total cost of revenues	11,197	10,326
Gross profit	35,901	33,950
Operating expenses:
Research and development	20,054	18,211
Sales and marketing	28,232	31,465
General and administrative	11,885	9,724
Total operating expenses	60,171	59,400
Operating loss	(24,270)	(25,450)
Financial income (expense), net	(241)	436
Loss before taxes on income	(24,511)	(25,014)
Taxes on income	1,056	(843)
Net loss	$ (23,455)	$ (25,857)
Basic and diluted net loss per ordinary share	$ (0.64)	$ (0.73)
Weighted average number of shares used in computing net loss per ordinary share - basic and diluted	36,715	35,552
Comprehensive Loss
Net loss	$ (23,455)	$ (25,857)
Other comprehensive loss:
Unrealized loss from available-for-sale securities	(23)	(10)
Total comprehensive loss	(23,478)	(25,867)
Product [Member]
Revenues:
Total revenues	15,778	13,705
Cost of revenues:
Total cost of revenues	1,331	1,213
Maintenance and Professional Services [Member]
Revenues:
Total revenues	31,320	30,571
Cost of revenues:
Total cost of revenues	$ 9,866	$ 9,113

CONSOLIDATED STATEMENTS OF CHAN

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands	Ordinary Shares [Member]	Additional Paid-in Capital [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Deficit [Member]	Total
Begining Balance at Dec. 31, 2019	$ 145	$ 162,609		$ (68,432)	$ 94,322
Begining Balance, (in Shares) at Dec. 31, 2019	35,230,253
Issuance of ordinary shares in connection with stock-based compensation plans	$ 2	733			735
Issuance of ordinary shares in connection with stock-based compensation plans, shares	484,146
Share-based compensation		7,192			7,192
Other comprehensive loss			(10)		(10)
Net loss				(25,857)	(25,857)
Ending Balance at Jun. 30, 2020	$ 147	170,534	(10)	(94,289)	76,382
Ending Balance, (in Shares) at Jun. 30, 2020	35,714,399
Begining Balance at Dec. 31, 2020	$ 148	178,864	5	(103,838)	$ 75,179
Begining Balance, (in Shares) at Dec. 31, 2020	35,972,470				35,972,470
Issuance of ordinary shares in connection with stock-based compensation plans	$ 5	1,501			$ 1,506
Issuance of ordinary shares in connection with stock-based compensation plans, shares	1,279,781
Share-based compensation		7,170			7,170
Other comprehensive loss			(23)		(23)
Net loss				(23,455)	(23,455)
Ending Balance at Jun. 30, 2021	$ 153	$ 187,535	$ (18)	$ (127,293)	$ 60,377
Ending Balance, (in Shares) at Jun. 30, 2021	37,252,251				37,252,251

CONDENSED CONSOLIDATED STATEMEN

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net loss	$ (23,455)	$ (25,857)
Adjustment to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation	837	694
Amortization of premium on marketable securities	167
Share-based compensation	7,170	7,192
Exchange rate differences on cash, cash equivalents and restricted cash	173	127
Other		2
Change in operating assets and liability items:
Accounts receivable	6,296	5,469
Prepaid expenses and other current assets	(1,483)	(3,349)
Deferred costs	290	230
Deferred taxes and other non-current assets	(352)	137
Trade payables	1,731	(129)
Employee and payroll accrued expenses	(1,650)	(534)
Other accounts payable and non-current liabilities	178	60
Operating lease	(472)	(242)
Deferred revenues	8,653	4,988
Net cash used in operating activities	(1,917)	(11,212)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of fixed assets	(938)	(1,598)
Investment in marketable securities	(16,127)	(10,638)
Proceeds from maturities of marketable securities	15,409
Net cash used in investing activities	(1,656)	(12,236)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	1,580	954
Changes in withholding tax related to employee stock plans	(470)	(1,227)
Net cash provided by (used in) financing activities	1,110	(273)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(173)	(127)
DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH	(2,636)	(23,848)
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF PERIOD	61,717	121,729
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF PERIOD	59,081	97,881
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Property and equipment purchased but not yet paid	$ 35

Business Description and Basis

Business Description and Basis of Presentation	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Business Description and Basis of Presentation	Note 1: Business Description and Basis of Presentation a. Business Description Tufin Software Technologies Ltd. (together with its subsidiaries, “Tufin” or the “Company”) is an Israeli company that develops, markets and sells software-based solutions that help organizations visualize, define and enforce a unified security policy across complex, heterogeneous network environments. Tufin’s solutions automate security policy management, and allow organizations to gain visibility and control over their IT and cloud environments. Substantially all of the Company’s sales of products and services worldwide are made through a global network of distributors and resellers, which sell the products and services to their end-user customers. The Company was incorporated as an Israeli company on January 2, 2005 and commenced operations on that date. The Company has incorporated wholly owned subsidiaries in the United States, the United Kingdom, Germany, France, Australia and Romania. b. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2020. The unaudited condensed consolidated financial statements include the accounts of Tufin Software Technologies Ltd. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. Such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. These financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, included in Company’s Annual Report on Form 20-F for such year that was filed with the SEC on March 2, 2021. The preparation of financial statements and related disclosures in conformity with GAAP require the Company to make judgments, assumptions, and estimates that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. In particular, a number of estimates have been and will continue to be affected by the ongoing coronavirus (“COVID-19”) pandemic. The effects of the COVID-19 pandemic have rapidly changed market and economic conditions globally and may continue to create significant uncertainty in the macroeconomic environment. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers and its sales cycles, as well as the impact on its employees. As the COVID-19 pandemic may continue to evolve and additional information is obtained, the Company may be required to update its estimates and assumptions. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. The Company will continue to monitor the evolving situation and will assess the relevant implications on its consolidated financial statements. F - 7 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) c. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board issued ASU 2019-12 “Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes” (the “update”). The amendments in this update simplify the accounting for income taxes by removing the following exceptions in ASC 740: (1) exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; (2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; (3) specifying that an entity can elect (rather than be required to) allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2019-12 effective January 1, 2021 with no material impact on its consolidated financial statements.

CASH, CASH EQUIVALENTS AND REST

CASH, CASH EQUIVALENTS AND RESTRICTED CASH	6 Months Ended
	Jun. 30, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
CASH, CASH EQUIVALENTS AND RESTRICTED CASH	NOTE 2: CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. December 31, June 30, 2020 2021 (U.S. $ in thousands) Cash and cash equivalents $ 58,449 $ 55,851 Long-term restricted bank deposits 3,268 3,230 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 61,717 $ 59,081 Amounts included in restricted cash represent those required to be set aside by a contractual agreement with lease, hedging and credit card transactions.

FAIR VALUE MEASUREMENT

FAIR VALUE MEASUREMENT	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
FAIR VALUE MEASUREMENT	NOTE 3: FAIR VALUE MEASUREMENT The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, on the consolidated balance sheet: December 31, 2020 June 30, 2021 (U.S. $ in thousands) Level 2 Level 2 Assets: Marketable securities $ 42,291 $ 42,853 Foreign currency exchange derivative instrument 295 86 Total Financial Assets $ 42,586 $ 42,939 Liabilities: Foreign currency exchange derivative instruments 8 64 Total Financial Liabilities $ 8 $ 64 The Company’s marketable securities are classified as Level 2 as these assets are valued using observable data, either directly or indirectly, that may include quoted market prices for similar instruments, broker-dealer quotes, market spreads, nonbinding market prices that are corroborated by observable market data and other observable market information. The Company’s foreign currency exchange derivative financial instruments are classified as Level 2, as they as they represent foreign currency forward and option contracts that are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward rates and spot prices for currencies (Level 2 inputs). The fair value of foreign currency exchange derivative instruments was estimated by obtaining current quotes from banks and third-party valuations. Other financial instruments consist mainly of cash and cash equivalents, restricted bank deposits, accounts receivable, accounts payable and other accounts payables. The fair value of these financial instruments approximates their carrying values.

MARKETABLE SECURITIES

MARKETABLE SECURITIES	6 Months Ended
	Jun. 30, 2021
Debt Securities, Available-for-sale, Amortized Cost [Abstract]
MARKETABLE SECURITIES	NOTE 4: MARKETABLE SECURITIES The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of June 30, 2021: June 30, 2021 Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 10,256 $ (5 ) $ 10 $ 10,261 Corporate debentures 32,615 (25 ) 2 32,592 Total $ 42,871 $ (30 ) $ 12 $ 42,853 December 31, 2020 (U.S. dollars in thousands) Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 32,578 $ (5 ) $ 1 $ 32,574 Corporate debentures 9,708 (1 ) 10 9,717 Total $ 42,286 $ (6 ) $ 11 $ 42,291 June 30, 2021 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 26,263 $ 26,250 Due between one and two years 16,608 16,603 Total $ 42,871 $ 42,853 December 31, 2020 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 19,585 $ 19,586 Due between one and two years 22,701 22,705 Total $ 42,286 $ 42,291 F - 10 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) During the six months ended June 30, 2021 and 2020, the Company did not recognize an allowance for credit losses on its available-for-sale marketable debt securities.

DERIVATIVE INSTRUMENTS

DERIVATIVE INSTRUMENTS	6 Months Ended
	Jun. 30, 2021
Derivative, Fair Value, Net [Abstract]
DERIVATIVE INSTRUMENTS	NOTE 5: DERIVATIVE INSTRUMENTS The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar, but are not designated as an accounting hedge. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in NIS, Euros and GBP. The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Balance sheet location Fair Value Notional Amount December 31, June 30, December 31, June 30, 2020 2021 2020 2021 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as cash flow hedge Other current assets $ 295 $ 86 $ 8,796 $ 13,363 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Other accounts payables (8 ) (64 ) 8,796 2,273 $ 287 $ 22 $ 17,592 $ 15,636

SHARE-BASED COMPENSATION

SHARE-BASED COMPENSATION	6 Months Ended
	Jun. 30, 2021
Share-based Payment Arrangement [Abstract]
SHARE-BASED COMPENSATION	NOTE 6: SHARE-BASED COMPENSATION Under the 2019 Plan, options or restricted share units (RSUs) generally vest over a requisite service period of four years commencing on the grant date and have a contractual term of ten years from the grant date. As of June 30, 2021, 1,252,376 shares were available for future equity awards under the 2019 Plan. Share-based compensation expenses for options were allocated as follows: Six Months Ended June 30, June 30, 2020 2021 Cost of revenues 962 1,061 Research and development 2,183 2,362 Sales and marketing 2,209 1,643 General and administrative 1,838 2,104 Total share-based compensation expense 7,192 7,170 The fair value of options granted was estimated using the Black-Scholes option-pricing model. The fair value of RSUs was determined based on the quoted price of the Company’s ordinary shares on the date of the grant. F - 11 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) The Company recognizes compensation expenses for its stock-based option awards and RSUs on the graded vesting attribution method over the requisite service period (primarily a four-year period). a. A summary of the Company’s option activity for the six months ended June 30, 2021 is as follows: Amount of Options Weighted average exercise price Balance as of January 1, 2021 6,930,143 $ 8.51 Granted - $ - Exercised 948,511 $ 1.59 Forfeited 466,904 $ 11.28 Balance as of June 30, 2021 5,514,728 $ 9.47 Exercisable as of June 30, 2021 3,509,343 $ 6.76 As of June 30, 2021, the Company had 2,005,385 unvested options. As of June 30, 2021, the unrecognized compensation cost related to all unvested, equity-classified options of $4.9 million is expected to be recognized as an expense over a weighted-average recognition period of approximately 0.9 years. b. A summary of the Company’s RSUs activity for the six months ended June 30, 2021 is as follows: Amount of RSUs Weighted Average Grant Date Fair Value Balance as of January 1, 2021 1,311,702 $ 9.21 Granted 1,303,700 $ 12.36 Vested 331,270 $ 9.41 Forfeited 206,301 $ 10.58 Unvested as of June 30, 2021 2,077,831 $ 11.02 As of June 30, 2021, the unrecognized compensation cost of $16.1 million related to all unvested RSUs is expected to be recognized as expense over a weighted-average recognition period of approximately 1.2 years. In the third quarter of 2021, the Company granted certain of its employees 143,650 restricted stock units with a vesting period of four years. c. The Company incurred net losses for the six months ended June 30, 2020 and 2021. Therefore, the inclusion of all potential

REVENUES, DEFERRED REVENUES AND

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS	6 Months Ended
	Jun. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]
REVENUES, DEFERRED REVENUES AND DEFERRED COSTS	NOTE 7: REVENUES, DEFERRED REVENUES AND DEFERRED COSTS Disaggregation of Revenue The Company generates revenue from the sale of software products, hardware products, maintenance and support, and professional services. All revenue recognized in the consolidated statement of operations is considered to be revenue from contracts with customers. The following table sets for the disaggregated revenue by revenue type and is consistent with how the Company evaluates its performance obligations: Six Months Ended June 30, 2020 2021 (U.S. dollars in thousands) Product Software products 12,625 14,330 Hardware products 1,080 1,448 $ 13,705 $ 15,778 Maintenance and professional services Support and maintenance 24,703 26,090 Professional services 5,868 5,230 $ 30,571 $ 31,320 Total revenue $ 44,276 $ 47,098 Deferred revenue December 31, June 30, 2020 2021 (U.S. $ in thousands) Deferred revenues: Deferred product revenues $ 1,515 $ 2,161 Deferred maintenance and professional services revenues 59,176 54,933 60,691 57,094 Less - amounts offset from accounts receivable (22,936 ) (10,686 ) Deferred revenues 37,755 46,408 The change in deferred revenues: Balance at beginning of year 57,595 60,691 Deferred revenue relating to new sales 44,105 21,756 Revenue recognition during the period (41,009 ) (25,353 ) Balance at end of year 60,691 57,094 Less - amounts offset from accounts receivable (22,936 ) (10,686 ) Deferred revenues $ 37,755 $ 46,408 F - 13 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Remaining Performance Obligations As of June 30, 2021, the Company’s total remaining performance obligations were approximately $60,893 thousand. The Company expects that it will satisfy the majority of its remaining performance obligations over a period of three years during which, on June 30, 2021, an amount of $35,851 thousand will be recognized in the next twelve months, which constitutes 59% of total remaining performance obligations. Assets Recognized from the Costs to Obtain a Contract with a Customer The Company determined that certain costs related to its sales incentive programs meet the requirements to be capitalized and deferred. These assets are recorded as current and non-current assets. The Company amortizes these deferred costs over the benefit period, currently estimated to be four years. The Company considers the benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. December 31, June 30, 2020 2021 (U.S. $ in thousands) Balance at beginning of year $ 5,962 $ 6,627 Additional costs deferred 3,398 1,295 Amortization of deferred costs (2,733 ) (1,586 ) Balance at end of year $ 6,627 $ 6,336

ENTITY WIDE DISCLOSURES

ENTITY WIDE DISCLOSURES	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
ENTITY WIDE DISCLOSURES	NOTE 8: ENTITY WIDE DISCLOSURES ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. The Company manages its business based on one operating segment and derives revenues from licensing of software, sales of hardware, providing maintenance and technical support and sales of professional services. The following is a summary of revenues within geographic areas: Six Months Ended June 30, 2020 2021 (U.S. dollars in thousands) Americas: United States $ 23,304 $ 21,616 Other 551 477 23,855 22,093 EMEA: Germany 5,045 6,214 Israel 556 793 United Kingdom 3,145 4,655 Other 8,451 9,942 17,197 21,604 APAC 3,224 3,401 Total $ 44,276 $ 47,098 Revenues are attributed to geographic areas based on the location of customer. F - 14 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) For the year ended December 31, 2020 and six months ended June 30, 2021, each of the following distributors comprised more than 10% of the Company’s revenue: Year Ended Six months Ended December 31, June 30, 2020 2021 Customer A 15 % 17 % Customer B 10 % 12 % Property, plant and equipment, net by geographical area were as follows as of December 31, 2020 and June 30, 2021: December 31, June 30, 2020 2021 (U.S. $ in thousands) Americas (primarily the United States) $ 1,125 996 EMEA 108 102 Israel 3,269 3,492 $ 4,502 4,590 As of December 31, 2020 and June 30, 2021, each of the following distributors comprised more than 10% of the Company’s accounts receivable: December 31, June 30, 2020 2021 Customer A 16 % 23 % Customer B 12 % 17 % Customer C 11 % 0 % For purposes of this calculation, the Company assessed distributors by aggregating distributors within the same holding group.

Income Taxes

Income Taxes	6 Months Ended
	Jun. 30, 2021
Income Tax Disclosure [Abstract]
Income Taxes	NOTE 9: Income Taxes The Company had income tax benefit of $1.1 million for the six-month period ended June 30, 2021 compared to income tax expense of $0.8 million for the six-month period ended June 30, 2020. The Company’s income taxes for the six-month period ended June 30, 2021 were primarily impacted by tax benefits associated with stock-based compensation of its US subsidiary and its full valuation allowance against potential future benefits for deferred tax assets of its Israeli entity, including loss carryforwards generated in Israel. In addition, the Company’s effective tax rate is based on recurring factors, including the geographic mix of foreign taxable income and loss, as well as nonrecurring items that may not be predictable.

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2021
Commitments and Contingencies Disclosure [Abstract]
Contingencies	NOTE 10: Contingencies Legal Proceedings The Company, along with its directors and officers (the “Individual Defendants”) at the time of our initial public offering (“IPO”) were named as defendants in four putative shareholder class action lawsuits filed in the Supreme Court of the State of New York on (1) February 26, 2020, captioned Matt Primozich v. Tufin Software Technologies Ltd., et al., Allen v. Tufin Software Technologies Ltd., et al., Avi Shmuely v. Tufin Software Technologies Ltd., et al., Michael Roche v.Tufin Software Technologies Ltd., et al., In the Tufin State Actions, the plaintiffs, seeking to represent a class of all purchasers and acquirers of the Company's ordinary shares issued in connection with the April 2019 IPO, allege that the (1) the defendants made material misstatements or failed to disclose material information in the IPO Offering Documents, thereby allegedly violating Section 11 of the Securities Act and (2) the Individual Defendants were “control persons” of the Company by virtue of their positions, and thereby are allegedly liable under Section 15 of the Securities Act. The Roche Action also asserted a claim under Section 12(a)(2) of the Securities Act alleging that defendants issued, caused to be issued, and/or signed the IPO Offering Documents in connection with issuance of stock to shareholders in the IPO. On August 5, 2021, the state court entered an order consolidating the Tufin State Actions and appointing lead plaintiffs and class counsel. On August 16, 2021, these lead plaintiffs filed a consolidated amended complaint, which asserts claims under Sections 11 and 15 of the Securities Act and names only us and the Individual Defendants as defendants. Defendants’ response to the consolidated amended complaint is due on September 15, 2021. F - 16 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONDENSED CONSOLIDATED INTERIM FINANCIAL STATEMENTS (UNAUDITED) Two federal class actions were also filed in the Southern District of New York: (1) the matter captioned Matthew Ellison v. Tufin Software Technologies Ltd. et al. Michaelson v. Tufin Software Technologies Ltd. et al. The Company is also subject to certain indemnification obligations with respect to the Individual Defendants, IPO Underwriter Defendants, and the SPO Underwriter Defendants, in connection with the Tufin State Actions and Tufin Federal Actions. Based on information currently available and the current stage of the litigation, the Company is unable to reasonably estimate a possible loss or range of possible losses, if any, with regard to the Tufin State Actions and Tufin Federal Actions; therefore, no estimated liability has been recorded in the Company’s consolidated balance sheets as of June 30, 2021. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times if and when it is probable that a loss will be incurred and the amount of the loss is reasonably estimable.

Business Description and Basi_2

Business Description and Basis of Presentation (Policies)	6 Months Ended
	Jun. 30, 2021
Accounting Policies [Abstract]
Business Description	a. Business Description Tufin Software Technologies Ltd. (together with its subsidiaries, “Tufin” or the “Company”) is an Israeli company that develops, markets and sells software-based solutions that help organizations visualize, define and enforce a unified security policy across complex, heterogeneous network environments. Tufin’s solutions automate security policy management, and allow organizations to gain visibility and control over their IT and cloud environments. Substantially all of the Company’s sales of products and services worldwide are made through a global network of distributors and resellers, which sell the products and services to their end-user customers. The Company was incorporated as an Israeli company on January 2, 2005 and commenced operations on that date. The Company has incorporated wholly owned subsidiaries in the United States, the United Kingdom, Germany, France, Australia and Romania.
Basis of Presentation	b. Basis of Presentation The accompanying unaudited condensed consolidated financial statements and have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”) using accounting policies that are consistent with those used in the preparation of the Company’s audited consolidated financial statements for the year ended December 31, 2020. The unaudited condensed consolidated financial statements include the accounts of Tufin Software Technologies Ltd. and its subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Certain financial information and footnote disclosures normally included in the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) have been condensed or omitted. Such information reflects all adjustments (consisting of normal, recurring adjustments), which are, in the opinion of management, necessary for a fair statement of results for the interim period. The results of operations for the six months ended June 30, 2021 are not necessarily indicative of the results to be expected for the full year. These financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and notes thereto for the year ended December 31, 2020, included in Company’s Annual Report on Form 20-F for such year that was filed with the SEC on March 2, 2021. The preparation of financial statements and related disclosures in conformity with GAAP require the Company to make judgments, assumptions, and estimates that affect the amounts reported in the unaudited consolidated financial statements and accompanying notes. In particular, a number of estimates have been and will continue to be affected by the ongoing coronavirus (“COVID-19”) pandemic. The effects of the COVID-19 pandemic have rapidly changed market and economic conditions globally and may continue to create significant uncertainty in the macroeconomic environment. The extent of the impact of the COVID-19 pandemic on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers and its sales cycles, as well as the impact on its employees. As the COVID-19 pandemic may continue to evolve and additional information is obtained, the Company may be required to update its estimates and assumptions. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. The Company will continue to monitor the evolving situation and will assess the relevant implications on its consolidated financial statements.
Recently Adopted Accounting Standards	c. Recently Adopted Accounting Standards In December 2019, the Financial Accounting Standards Board issued ASU 2019-12 “Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes” (the “update”). The amendments in this update simplify the accounting for income taxes by removing the following exceptions in ASC 740: (1) exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; (2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; (3) specifying that an entity can elect (rather than be required to) allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company adopted ASU 2019-12 effective January 1, 2021 with no material impact on its consolidated financial statements.

CASH, CASH EQUIVALENTS AND RE_2

CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables)	6 Months Ended
	Jun. 30, 2021
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash	The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. December 31, June 30, 2020 2021 (U.S. $ in thousands) Cash and cash equivalents $ 58,449 $ 55,851 Long-term restricted bank deposits 3,268 3,230 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 61,717 $ 59,081

FAIR VALUE MEASUREMENT (Tables)

FAIR VALUE MEASUREMENT (Tables)	6 Months Ended
	Jun. 30, 2021
Fair Value Disclosures [Abstract]
Schedue of Assets and Liabilities Carried At Fair Value on Recurring Basis	The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, on the consolidated balance sheet: December 31, 2020 June 30, 2021 (U.S. $ in thousands) Level 2 Level 2 Assets: Marketable securities $ 42,291 $ 42,853 Foreign currency exchange derivative instrument 295 86 Total Financial Assets $ 42,586 $ 42,939 Liabilities: Foreign currency exchange derivative instruments 8 64 Total Financial Liabilities $ 8 $ 64

MARKETABLE SECURITIES (Tables)

MARKETABLE SECURITIES (Tables)	6 Months Ended
	Jun. 30, 2021
Debt Securities, Available-for-sale, Amortized Cost [Abstract]
Schedue of Amortized Cost, Unrealized Gains and Losses	The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of June 30, 2021: June 30, 2021 Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 10,256 $ (5 ) $ 10 $ 10,261 Corporate debentures 32,615 (25 ) 2 32,592 Total $ 42,871 $ (30 ) $ 12 $ 42,853 December 31, 2020 (U.S. dollars in thousands) Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 32,578 $ (5 ) $ 1 $ 32,574 Corporate debentures 9,708 (1 ) 10 9,717 Total $ 42,286 $ (6 ) $ 11 $ 42,291
Schedue of Fair Value of Available-For-Sale Marketable Securities	June 30, 2021 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 26,263 $ 26,250 Due between one and two years 16,608 16,603 Total $ 42,871 $ 42,853 December 31, 2020 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 19,585 $ 19,586 Due between one and two years 22,701 22,705 Total $ 42,286 $ 42,291

DERIVATIVE INSTRUMENTS (Tables)

DERIVATIVE INSTRUMENTS (Tables)	6 Months Ended
	Jun. 30, 2021
Derivative, Fair Value, Net [Abstract]
Schedule of Fair Values of Derivative Instruments	The following table summarizes the consolidated balance sheets classification and fair values of the Company’s derivative instruments: Balance sheet location Fair Value Notional Amount December 31, June 30, December 31, June 30, 2020 2021 2020 2021 (U.S. $ in thousands) Assets derivatives -Foreign exchange contracts, not designated as cash flow hedge Other current assets $ 295 $ 86 $ 8,796 $ 13,363 Liability derivatives -Foreign exchange contracts, not designated as hedging instruments Other accounts payables (8 ) (64 ) 8,796 2,273 $ 287 $ 22 $ 17,592 $ 15,636

SHARE-BASED COMPENSATION (Table

SHARE-BASED COMPENSATION (Tables)	6 Months Ended
	Jun. 30, 2021
Schedule of Options Activity	Share-based compensation expenses for options were allocated as follows: Six Months Ended June 30, June 30, 2020 2021 Cost of revenues 962 1,061 Research and development 2,183 2,362 Sales and marketing 2,209 1,643 General and administrative 1,838 2,104 Total share-based compensation expense 7,192 7,170
Stock Options [Member]
Schedule of Stock Option Activity Granted	a. A summary of the Company’s option activity for the six months ended June 30, 2021 is as follows: Amount of Options Weighted average exercise price Balance as of January 1, 2021 6,930,143 $ 8.51 Granted - $ - Exercised 948,511 $ 1.59 Forfeited 466,904 $ 11.28 Balance as of June 30, 2021 5,514,728 $ 9.47 Exercisable as of June 30, 2021 3,509,343 $ 6.76
Restricted Stock Units (RSUs) [Member]
Schedule of Stock Option Activity Granted	b. A summary of the Company’s RSUs activity for the six months ended June 30, 2021 is as follows: Amount of RSUs Weighted Average Grant Date Fair Value Balance as of January 1, 2021 1,311,702 $ 9.21 Granted 1,303,700 $ 12.36 Vested 331,270 $ 9.41 Forfeited 206,301 $ 10.58 Unvested as of June 30, 2021 2,077,831 $ 11.02

REVENUES, DEFERRED REVENUES A_2

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS (Tables)	6 Months Ended
	Jun. 30, 2021
Revenue Recognition and Deferred Revenue [Abstract]
Schedule of Disaggregated Revenue by Revenue Type and Performance Obligations	The Company generates revenue from the sale of software products, hardware products, maintenance and support, and professional services. All revenue recognized in the consolidated statement of operations is considered to be revenue from contracts with customers. The following table sets for the disaggregated revenue by revenue type and is consistent with how the Company evaluates its performance obligations: Six Months Ended June 30, 2020 2021 (U.S. dollars in thousands) Product Software products 12,625 14,330 Hardware products 1,080 1,448 $ 13,705 $ 15,778 Maintenance and professional services Support and maintenance 24,703 26,090 Professional services 5,868 5,230 $ 30,571 $ 31,320 Total revenue $ 44,276 $ 47,098
Schedule of Deferred Revenue	Deferred revenue December 31, June 30, 2020 2021 (U.S. $ in thousands) Deferred revenues: Deferred product revenues $ 1,515 $ 2,161 Deferred maintenance and professional services revenues 59,176 54,933 60,691 57,094 Less - amounts offset from accounts receivable (22,936 ) (10,686 ) Deferred revenues 37,755 46,408 The change in deferred revenues: Balance at beginning of year 57,595 60,691 Deferred revenue relating to new sales 44,105 21,756 Revenue recognition during the period (41,009 ) (25,353 ) Balance at end of year 60,691 57,094 Less - amounts offset from accounts receivable (22,936 ) (10,686 ) Deferred revenues $ 37,755 $ 46,408
Schedule of Assets Recognized from Costs to Obtain Contract with Customer	December 31, June 30, 2020 2021 (U.S. $ in thousands) Balance at beginning of year $ 5,962 $ 6,627 Additional costs deferred 3,398 1,295 Amortization of deferred costs (2,733 ) (1,586 ) Balance at end of year $ 6,627 $ 6,336

ENTITY WIDE DISCLOSURES (Tables

ENTITY WIDE DISCLOSURES (Tables)	6 Months Ended
	Jun. 30, 2021
Segment Reporting [Abstract]
Schedule of Summary of Revenues within Geographic Areas	The following is a summary of revenues within geographic areas: Six Months Ended June 30, 2020 2021 (U.S. dollars in thousands) Americas: United States $ 23,304 $ 21,616 Other 551 477 23,855 22,093 EMEA: Germany 5,045 6,214 Israel 556 793 United Kingdom 3,145 4,655 Other 8,451 9,942 17,197 21,604 APAC 3,224 3,401 Total $ 44,276 $ 47,098
Schedule of Distributors Comprised more than 10% of Company's Revenue	For the year ended December 31, 2020 and six months ended June 30, 2021, each of the following distributors comprised more than 10% of the Company’s revenue: Year Ended Six months Ended December 31, June 30, 2020 2021 Customer A 15 % 17 % Customer B 10 % 12 %
Schedule of Property, Plant and Equipment, Net by Geographical Area	Property, plant and equipment, net by geographical area were as follows as of December 31, 2020 and June 30, 2021: December 31, June 30, 2020 2021 (U.S. $ in thousands) Americas (primarily the United States) $ 1,125 996 EMEA 108 102 Israel 3,269 3,492 $ 4,502 4,590
Schedule of Distributors Comprising more than 10% of Company's Accounts Receivable	As of December 31, 2020 and June 30, 2021, each of the following distributors comprised more than 10% of the Company’s accounts receivable: December 31, June 30, 2020 2021 Customer A 16 % 23 % Customer B 12 % 17 % Customer C 11 % 0 %

CASH, CASH EQUIVALENTS AND RE_3

CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2019
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract]
Cash and cash equivalents	$ 55,851	$ 58,449
Long-term restricted bank deposits	3,230	3,268
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows	$ 59,081	$ 61,717	$ 97,881	$ 121,729

FAIR VALUE MEASUREMENT (Schedue

FAIR VALUE MEASUREMENT (Schedue of Assets and Liabilities Carried At Fair Value on Recurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Marketable securities	$ 26,250	$ 19,586
Fair Value, Measurements, Recurring [Member] | Not Designated as Hedging Instrument [Member] | Level 2 [Member]
Assets:
Marketable securities	42,853	42,291
Foreign currency exchange derivative instrument	86	295
Total Financial Assets	42,939	42,586
Liabilities:
Foreign currency exchange derivative instruments	64	8
Total Financial Liabilities	$ 64	$ 8

MARKETABLE SECURITIES (Schedue

MARKETABLE SECURITIES (Schedue of Amortized Cost, Unrealized Gains and Losses) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair value	$ 42,853	$ 42,291
Gross unrealized losses	(30)	(6)
Gross unrealized gains	12	11
Amortized cost	42,871	42,286
U.S. government and agency debentures [Member]
Fair value	10,261	32,574
Gross unrealized losses	(5)	(5)
Gross unrealized gains	10	1
Amortized cost	10,256	32,578
Corporate debentures [Member]
Fair value	32,592	9,717
Gross unrealized losses	(25)	(1)
Gross unrealized gains	2	10
Amortized cost	$ 32,615	$ 9,708

MARKETABLE SECURITIES (Schedu_2

MARKETABLE SECURITIES (Schedue of Fair Value of Available-For-Sale Marketable Securities) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amortized cost
Due within one year	$ 26,263	$ 19,585
Due between one and two years	16,608	22,701
Amortized cost	42,871	42,286
Fair value
Due within one year	26,250	19,586
Due between one and two years	16,603	22,705
Total Fair value	$ 42,853	$ 42,291

DERIVATIVE INSTRUMENTS (Schedul

DERIVATIVE INSTRUMENTS (Schedule of Fair Values of Derivative Instruments) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value	$ 22	$ 287
Notional Amount	15,636	17,592
Other Current Assets [Member] | Foreign Exchange Contract [Member] | Not designated cash flow hedges [Member]
Assets derivatives, fair value	86	295
Assets derivatives, notional amount	13,363	8,796
Other accounts payables [Member] | Foreign Exchange Contract [Member] | Not designated as hedging instruments [Member]
Liability derivatives, fair value	(64)	(8)
Liability derivatives, notional amount	$ 2,273	$ 8,796

SHARE-BASED COMPENSATION (Narra

SHARE-BASED COMPENSATION (Narrative) (Details) - USD ($) $ in Millions	6 Months Ended		9 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Sep. 30, 2021
Number of unvested options	2,005,385
Unrecognized compensation cost	$ 4.9
Weighted-average period	10 months 24 days
Number of Anti-diluted shares outstandings	7,592,559	8,469,253
Restricted Stock Units (RSUs) [Member]
Number of unvested options	2,077,831
Unrecognized compensation cost	$ 16.1
Weighted-average period	1 year 2 months 12 days
Options restricted shares units [Member] | 2019 Stock Option Plan [Member]
Contractual term	ten years
Shares available for future issuance	1,252,376
Vesting period		4 years
Forecast [Member] | Restricted Stock Units (RSUs) [Member]
Granted			143,650
Vesting period			4 years

SHARE-BASED COMPENSATION (Sched

SHARE-BASED COMPENSATION (Schedule of Options Activity) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 7,170	$ 7,192
Cost of revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	1,061	962
Research and Development [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	2,362	2,183
Sales and Marketing [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	1,643	2,209
General and Administrative [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 2,104	$ 1,838

SHARE-BASED COMPENSATION (Sch_2

SHARE-BASED COMPENSATION (Schedule of Stock Option Activity Granted) (Details)	6 Months Ended
	Jun. 30, 2021$ / sharesshares
Amount of Options
Unvested balance	2,005,385
Stock Options [Member]
Amount of Options
Beginning balance	6,930,143
Granted
Exercised	948,511
Forfeited	466,904
Ending balance	5,514,728
Exercisable	3,509,343
Weighted average exercise price
Beginning balance | $ / shares	$ 8.51
Granted | $ / shares
Exercised | $ / shares	1.59
Forfeited | $ / shares	11.28
Ending balance | $ / shares	9.47
Exercisable | $ / shares	$ 6.76
Restricted Stock Units (RSUs) [Member]
Amount of Options
Beginning balance	1,311,702
Granted	1,303,700
Vested	331,270
Forfeited	206,301
Unvested balance	2,077,831
Weighted average exercise price
Beginning balance | $ / shares	$ 9.21
Granted | $ / shares	12.36
Vested | $ / shares	9.41
Forfeited | $ / shares	10.58
Unvested balance | $ / shares	$ 11.02

REVENUES, DEFERRED REVENUES A_3

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue Recognition and Deferred Revenue [Abstract]
Remaining performance obligations	$ 57,094	$ 60,691	$ 57,595
Remaining performance obligations next twelve months	$ 35,851
Revenue remaining performance obligation percentage	59.00%

REVENUES, DEFERRED REVENUES A_4

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS (Schedule of Disaggregated Revenue by Revenue Type and Performance) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 47,098	$ 44,276
Products [Member]
Disaggregation of Revenue [Line Items]
Revenues	15,778	13,705
Maintenance and professional services [Member]
Disaggregation of Revenue [Line Items]
Revenues	31,320	30,571
Software products [Member] | Products [Member]
Disaggregation of Revenue [Line Items]
Revenues	14,330	12,625
Hardware products [Member] | Products [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,448	1,080
Support and maintenance [Member] | Maintenance and professional services [Member]
Disaggregation of Revenue [Line Items]
Revenues	26,090	24,703
Professional services [Member] | Maintenance and professional services [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 5,230	$ 5,868

REVENUES, DEFERRED REVENUES A_5

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS (Schedule of Deferred Revenues and Deferred Costs) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Deferred revenues:
Deferred product revenues	$ 2,161	$ 1,515
Deferred maintenance and professional services revenues	54,933	59,176
Revenue Remaining Performance Obligation	57,094	60,691
Less - amounts offset from accounts receivable	(10,686)	(22,936)
Deferred revenues	46,408	37,755
The change in deferred revenues:
Balance at beginning of year	60,691	57,595
Deferred revenue relating to new sales	21,756	44,105
Revenue recognition during the period	(25,353)	(41,009)
Balance at end of year	57,094	60,691
Less - amounts offset from accounts receivable	$ (10,686)	$ (22,936)

REVENUES, DEFERRED REVENUES A_6

REVENUES, DEFERRED REVENUES AND DEFERRED COSTS (Schedule of Assets Recognized from Costs to Obtain Contract) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Revenue Recognition and Deferred Revenue [Abstract]
Balance at beginning of year	$ 6,627	$ 5,962
Additional costs deferred	1,295	3,398
Amortization of deferred costs	(1,586)	(2,733)
Balance at end of year	$ 6,336	$ 6,627

ENTITY WIDE DISCLOSURES (Schedu

ENTITY WIDE DISCLOSURES (Schedule of Summary of Revenues within Geographic Areas) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Geography:
Total	$ 47,098	$ 44,276
US
Geography:
Total	21,616	23,304
Americas Other [Member]
Geography:
Total	477	551
Americas [Member]
Geography:
Total	22,093	23,855
Germany
Geography:
Total	6,214	5,045
Israel [Member]
Geography:
Total	793	556
United Kingdom [Member]
Geography:
Total	4,655	3,145
EMEA Other [Member]
Geography:
Total	9,942	8,451
EMEA [Member]
Geography:
Total	21,604	17,197
APAC [Member]
Geography:
Total	$ 3,401	$ 3,224

ENTITY WIDE DISCLOSURES (Sche_2

ENTITY WIDE DISCLOSURES (Schedule of Distributors Comprised more than 10% of Company's Revenue) (Details) - More than 10% Risk [Member] - Customer Risk [Member]	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Customer A [Member]
Revenue, Major Customer [Line Items]
Revenue percentage by distributors	17.00%	15.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Revenue percentage by distributors	12.00%	10.00%

ENTITY WIDE DISCLOSURES (Sche_3

ENTITY WIDE DISCLOSURES (Schedule of Property, Plant and Equipment, Net by Geographical Area) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 4,590	$ 4,502
Americas [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	996	1,125
EMEA [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	102	108
Israel [Member]
Revenues from External Customers and Long-Lived Assets [Line Items]
Property and equipment, net	$ 3,492	$ 3,269

ENTITY WIDE DISCLOSURES (Sche_4

ENTITY WIDE DISCLOSURES (Schedule of Distributors Comprised more than 10% of Company's Accounts Receivable) (Details)	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Customer A [Member]
Revenue, Major Customer [Line Items]
Accounts receivable percentage by distributors	23.00%	16.00%
Customer B [Member]
Revenue, Major Customer [Line Items]
Accounts receivable percentage by distributors	17.00%	12.00%
Customer C [Member]
Revenue, Major Customer [Line Items]
Accounts receivable percentage by distributors	0.00%	11.00%

Income Taxes (Details)

Income Taxes (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Income Tax Disclosure [Abstract]
Income tax expense (Benefit)	$ 1,056	$ (843)