Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36324 | |
Entity Registrant Name | VARONIS SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 57-1222280 | |
Entity Address, Address Line One | 1250 Broadway, 29th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 877 | |
Local Phone Number | 292-8789 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | VRNS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 31,548,926 | |
Entity Central Index Key | 0001361113 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 239,979 | $ 68,929 |
Marketable securities | 26,116 | 41,531 |
Short-term deposits | 60,000 | 10,000 |
Trade receivables (net of allowance for doubtful accounts of $862 and $637 at June 30, 2020 and December 31, 2019, respectively) | 48,766 | 75,050 |
Prepaid expenses and other current assets | 15,568 | 13,047 |
Total current assets | 390,429 | 208,557 |
Long-term assets: | ||
Other assets | 20,007 | 18,360 |
Operating lease right-of-use asset | 51,294 | 55,057 |
Property and equipment, net | 36,566 | 36,338 |
Total long-term assets | 107,867 | 109,755 |
Total assets | 498,296 | 318,312 |
Current liabilities: | ||
Trade payables | 678 | 997 |
Accrued expenses and other short-term liabilities | 65,094 | 62,607 |
Deferred revenues | 79,129 | 95,975 |
Total current liabilities | 144,901 | 159,579 |
Long-term liabilities: | ||
Convertible senior notes, net | 215,144 | 0 |
Deferred revenues | 3,692 | 5,460 |
Operating lease liability | 53,539 | 57,040 |
Other liabilities | 2,490 | 2,701 |
Total long-term liabilities | 274,865 | 65,201 |
Stockholders’ equity: | ||
Common stock of $0.001 par value - Authorized: 200,000,000 shares at June 30, 2020 and December 31, 2019; Issued and outstanding: 31,543,519 shares at June 30, 2020 and 30,583,311 shares at December 31, 2019 | 32 | 31 |
Accumulated other comprehensive income (loss) | 3,536 | (449) |
Additional paid-in capital | 347,447 | 310,682 |
Accumulated deficit | (272,485) | (216,732) |
Total stockholders’ equity | 78,530 | 93,532 |
Total liabilities and stockholders’ equity | $ 498,296 | $ 318,312 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 862 | $ 637 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 31,543,519 | 30,583,311 |
Common stock, outstanding (in shares) | 31,543,519 | 30,583,311 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenues: | ||||
Revenue | $ 66,565 | $ 59,621 | $ 120,741 | $ 115,981 |
Cost of revenues | 10,335 | 8,398 | 20,515 | 16,724 |
Gross profit | 56,230 | 51,223 | 100,226 | 99,257 |
Operating costs and expenses: | ||||
Research and development | 24,067 | 19,722 | 46,755 | 38,490 |
Sales and marketing | 42,983 | 41,656 | 85,563 | 83,652 |
General and administrative | 11,274 | 13,851 | 22,672 | 23,122 |
Total operating expenses | 78,324 | 75,229 | 154,990 | 145,264 |
Operating loss | (22,094) | (24,006) | (54,764) | (46,007) |
Financial income (expenses), net | (1,845) | 65 | (392) | (63) |
Loss before income taxes | (23,939) | (23,941) | (55,156) | (46,070) |
Income taxes | (384) | (547) | (597) | (1,057) |
Net loss | $ (24,323) | $ (24,488) | $ (55,753) | $ (47,127) |
Net loss per share of common stock, basic and diluted (in dollars per share) | $ (0.77) | $ (0.81) | $ (1.79) | $ (1.57) |
Weighted average number of shares used in computing net loss per share of common stock, basic and diluted (in shares) | 31,494,291 | 30,284,421 | 31,195,152 | 30,058,593 |
Subscriptions | ||||
Revenues: | ||||
Revenue | $ 34,086 | $ 14,837 | $ 54,451 | $ 21,842 |
Perpetual licenses | ||||
Revenues: | ||||
Revenue | 240 | 11,514 | 628 | 27,035 |
Maintenance and services | ||||
Revenues: | ||||
Revenue | $ 32,239 | $ 33,270 | $ 65,662 | $ 67,104 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (24,323) | $ (24,488) | $ (55,753) | $ (47,127) |
Other comprehensive income: | ||||
Unrealized income (loss) on marketable securities, net of tax | (137) | 31 | 47 | 50 |
Income (loss) on marketable securities reclassified into earnings, net of tax | 15 | 3 | 27 | (6) |
Total | (122) | 34 | 74 | 44 |
Unrealized income on derivative instruments, net of tax | 535 | 832 | 1,137 | 3,316 |
Realized income on derivative instruments, net of tax | 2,471 | 0 | 2,471 | 0 |
Loss on derivative instruments reclassified into earnings, net of tax | 361 | 80 | 304 | 531 |
Total | 3,367 | 912 | 3,912 | 3,847 |
Total other comprehensive income | 3,245 | 946 | 3,986 | 3,891 |
Comprehensive loss | $ (21,078) | $ (23,542) | $ (51,767) | $ (43,236) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated other comprehensive income | Accumulated deficit |
Balance (in shares) at Dec. 31, 2018 | 29,576,880 | ||||
Balance at Dec. 31, 2018 | $ 125,370 | $ 30 | $ 266,941 | $ (3,633) | $ (137,968) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 8,961 | 8,961 | |||
Common stock issued under employee stock plans, net (in shares) | 686,357 | ||||
Common stock issued under employee stock plans, net | (4,642) | $ 0 | (4,642) | ||
Realized and unrealized income on derivative instruments | 2,935 | 2,935 | |||
Unrealized gains (losses) on available for sale securities | 10 | 10 | |||
Net loss | (22,639) | (22,639) | |||
Balance at Mar. 31, 2019 | 109,995 | $ 30 | 271,260 | (688) | (160,607) |
Ending (in shares) at Mar. 31, 2019 | 30,263,237 | ||||
Balance (in shares) at Dec. 31, 2018 | 29,576,880 | ||||
Balance at Dec. 31, 2018 | 125,370 | $ 30 | 266,941 | (3,633) | (137,968) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Realized and unrealized income on derivative instruments | 3,847 | ||||
Unrealized gains (losses) on available for sale securities | 44 | ||||
Net loss | (47,127) | ||||
Balance at Jun. 30, 2019 | 100,194 | $ 30 | 285,001 | 258 | (185,095) |
Ending (in shares) at Jun. 30, 2019 | 30,327,027 | ||||
Balance (in shares) at Mar. 31, 2019 | 30,263,237 | ||||
Balance at Mar. 31, 2019 | 109,995 | $ 30 | 271,260 | (688) | (160,607) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 14,796 | 14,796 | |||
Common stock issued under employee stock plans, net (in shares) | 63,790 | ||||
Common stock issued under employee stock plans, net | (1,055) | $ 0 | (1,055) | ||
Realized and unrealized income on derivative instruments | 912 | 912 | |||
Unrealized gains (losses) on available for sale securities | 34 | 34 | |||
Net loss | (24,488) | (24,488) | |||
Balance at Jun. 30, 2019 | 100,194 | $ 30 | 285,001 | 258 | (185,095) |
Ending (in shares) at Jun. 30, 2019 | 30,327,027 | ||||
Balance (in shares) at Dec. 31, 2019 | 30,583,311 | ||||
Balance at Dec. 31, 2019 | 93,532 | $ 31 | 310,682 | (449) | (216,732) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 12,883 | 12,883 | |||
Common stock issued under employee stock plans, net (in shares) | 882,959 | ||||
Common stock issued under employee stock plans, net | 4,316 | $ 0 | 4,316 | ||
Realized and unrealized income on derivative instruments | 545 | 545 | |||
Unrealized gains (losses) on available for sale securities | 195 | 195 | |||
Net loss | (31,430) | (31,430) | |||
Balance at Mar. 31, 2020 | 80,041 | $ 31 | 327,881 | 291 | (248,162) |
Ending (in shares) at Mar. 31, 2020 | 31,466,270 | ||||
Balance (in shares) at Dec. 31, 2019 | 30,583,311 | ||||
Balance at Dec. 31, 2019 | 93,532 | $ 31 | 310,682 | (449) | (216,732) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Realized and unrealized income on derivative instruments | 3,912 | ||||
Unrealized gains (losses) on available for sale securities | 74 | ||||
Net loss | (55,753) | ||||
Balance at Jun. 30, 2020 | 78,530 | $ 32 | 347,447 | 3,536 | (272,485) |
Ending (in shares) at Jun. 30, 2020 | 31,543,519 | ||||
Balance (in shares) at Mar. 31, 2020 | 31,466,270 | ||||
Balance at Mar. 31, 2020 | 80,041 | $ 31 | 327,881 | 291 | (248,162) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation expense | 17,623 | 17,623 | |||
Common stock issued under employee stock plans, net (in shares) | 77,249 | ||||
Common stock issued under employee stock plans, net | 498 | $ 1 | 497 | ||
Realized and unrealized income on derivative instruments | 3,367 | 3,367 | |||
Unrealized gains (losses) on available for sale securities | (122) | (122) | |||
Purchase of capped calls related to Convertible senior notes | (29,348) | (29,348) | |||
Equity component of Convertible senior notes, net | 30,794 | 30,794 | |||
Net loss | (24,323) | (24,323) | |||
Balance at Jun. 30, 2020 | $ 78,530 | $ 32 | $ 347,447 | $ 3,536 | $ (272,485) |
Ending (in shares) at Jun. 30, 2020 | 31,543,519 |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Cash flows from operating activities: | ||
Net loss | $ (55,753) | $ (47,127) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation | 4,208 | 2,816 |
Stock-based compensation | 30,506 | 23,757 |
Amortization of deferred commissions | 5,783 | 7,136 |
Amortization of operating lease right-of-use asset | 4,990 | 2,837 |
Amortization of debt discount and issuance costs | 780 | 0 |
Capital loss from sale of fixed assets | 0 | 24 |
Changes in assets and liabilities: | ||
Trade receivables | 26,284 | 37,660 |
Prepaid expenses and other current assets | (970) | (1,904) |
Deferred commissions | (7,815) | (8,543) |
Other long-term assets | (208) | 7 |
Trade payables | (469) | (321) |
Accrued expenses and other short-term liabilities | (1,770) | (4,571) |
Deferred revenues | (18,614) | (9,019) |
Other long-term liabilities | 2,244 | 201 |
Net cash provided by (used in) operating activities | (10,804) | 2,953 |
Cash flows from investing activities: | ||
Decrease (increase) in short-term deposits | (49,927) | 29,154 |
Decrease in marketable securities | 15,415 | 3,925 |
Decrease (increase) in long-term deposits | 28 | (15) |
Proceeds from sale of property and equipment | 0 | 10 |
Purchases of property and equipment | (4,436) | (9,878) |
Net cash provided by (used in) investing activities | (38,920) | 23,196 |
Cash flows from financing activities: | ||
Proceeds from issuance of convertible senior notes, net of issuance costs | 245,308 | 0 |
Purchases of capped calls | (29,348) | 0 |
Proceeds (withholdings) from employee stock plans, net | 4,814 | |
Proceeds (withholdings) from employee stock plans, net | (5,697) | |
Net cash provided by (used in) financing activities | 220,774 | (5,697) |
Increase in cash and cash equivalents | 171,050 | 20,452 |
Cash and cash equivalents at beginning of period | 68,929 | 48,707 |
Cash and cash equivalents at end of period | 239,979 | 69,159 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | $ 810 | $ 3,146 |
General
General | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL a. Description of Business: Varonis Systems, Inc. (“VSI” and together with its subsidiaries, collectively, the “Company”) was incorporated under the laws of the State of Delaware on November 3, 2004 and commenced operations on January 1, 2005. VSI has ten wholly-owned subsidiaries: Varonis Systems Ltd. (“VSL”) incorporated under the laws of Israel on November 24, 2004; Varonis (UK) Limited (“VSUK”) incorporated under the laws of England on March 14, 2007; Varonis Systems (Deutschland) GmbH (“VSG”) incorporated under the laws of Germany on July 6, 2011; Varonis France SAS (“VSF”) incorporated under the laws of France on February 22, 2012; Varonis Systems Corp. (“VSC”) incorporated under the laws of British Columbia, Canada on February 19, 2013; Varonis Systems (Ireland) Limited ("VIRE") incorporated under the laws of Ireland on November 11, 2016; Varonis Systems (Australia) Pty Ltd (“VAUS”) incorporated under the laws of Victoria, Australia on February 28, 2017; Varonis Systems (Netherlands) B.V. ("VNL") incorporated under the laws of the Netherlands on March 13, 2018; Varonis U.S. Public Sector LLC ("VPS") incorporated under the laws of the State of Delaware on May 14, 2018; and Varonis Systems (Luxemburg) S.à r.l. (“VLUX”) incorporated under the laws of Luxembourg on August 5, 2019. The Company’s software products and services allow enterprises to manage, analyze and secure enterprise data. Varonis focuses on protecting enterprise data: sensitive files and emails; confidential customer, patient and employee data; financial records; strategic and product plans; and other intellectual property. Through its products DatAdvantage (including the Automation Engine), DatAlert (including Varonis Edge), DataPrivilege, Data Classification Engine (including Policy Pack and Data Classification Labels), Data Transport Engine and DatAnswers, the software platform allows enterprises to protect sensitive data from insider threats and cyberattacks, and realize the value of their enterprise data in ways that are not resource-intensive and easy to implement. VSI and VPS market and sell products and services mainly in the United States. VSUK, VSG, VSF, VSC, VIRE, VAUS, VNL and VLUX resell the Company’s products and services mainly in the United Kingdom, Germany, France, Canada, Ireland, Australia, the Netherlands and Belgium and Luxembourg, respectively. The Company primarily sells its products and services to a global network of distributors and Value Added Resellers (VARs), which sell the products to end user customers. b. Basis of Presentation: The accompanying unaudited consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain amounts in prior periods' financial statements have been recast and reclassified to conform to the current year's presentation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its consolidated financial position, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the 2019 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2019 filed with the SEC on February 11, 2020 (the “2019 Form 10-K”). There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2019 included in the 2019 Form 10-K, unless otherwise stated. c. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are comprised of time-based licenses whereby customers use the Company's software with related maintenance (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. Subscriptions are sold on premises and are recognized from sales of subscription licenses to new and existing customers. When products are purchased as a subscription, the associated maintenance is included as part of the subscription revenues. Perpetual licenses have the same functionality as subscriptions and perpetual license revenues consist of the revenues recognized from sales of perpetual licenses to new and existing customers. Maintenance and services primarily consist of fees for maintenance services of perpetual license sales (including support and unspecified upgrades and enhancements when and if they are available) and to a lesser extent professional services which focus on both operationalizing the software and training the Company’s customers to fully leverage the use of its products although the user can benefit from the software without the Company's assistance. The Company sells its products worldwide directly to a network of distributors and VARs, and payment is typically due within 30 to 60 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Subscription software and perpetual license revenues are recognized at the point of time when the software license has been delivered and the benefit of the asset has transferred. Maintenance associated with subscription licenses is recognized ratably over the term of the agreement and is included as part of the subscription revenues line item. The Company recognizes revenues from maintenance of perpetual license sales ratably over the term of the underlying maintenance contract. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period. Revenues from professional services consist mostly of time and material services. The performance obligations are satisfied, and revenues are recognized, when the services are provided or once the service term has expired. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The license is distinct upon delivery as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of the total consideration of the contract. For maintenance, the Company determines the standalone selling prices based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. For software licenses, the Company uses the residual approach to determine the standalone selling prices due to the lack of history of selling software license on a standalone basis and the highly variable sales price. Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. Deferred revenues represent mostly unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. Pursuant to these contracts, customers are not invoiced for subsequent years until the annual renewal occurs. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $63,632 for the six months ended June 30, 2020. The Company does not grant a right of return to its customers, except for one of its resellers. In 2019 and for the six months ended June 30, 2020, there were no returns from this reseller. For information regarding disaggregated revenues, please refer to Note 6. d. Contract Costs: The Company pays sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions earned by its employees are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately four years. Sales commissions for renewal contracts are capitalized and then amortized on a straight line basis. Amortization expenses related to these costs are mostly included in sales and marketing expenses in the accompanying consolidated statements of operations. e. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes forward foreign exchange contracts designated as cash flow hedges. These forward foreign exchange contracts generally mature within 12 months. In March 2020, the World Health Organization (”WHO”) declared the novel coronavirus COVID-19 ("COVID-19") a global pandemic. Due to the market volatility that resulted from the COVID-19 outbreak, in March 2020 the Company entered into additional forward foreign exchange contracts expected to mature within 18 months at more favorable rates. In addition, the Company enters into forward contracts to hedge a portion of its monetary items in the balance sheet, such as trade receivables and payables, denominated in Pound Sterling and Euro for short-term periods (the “Fair Value Hedging Program”). The purpose of the Fair Value Hedging Program is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to the Fair Value Hedging Program are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading purposes. Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets (liabilities) as of June 30, 2020 (unaudited) Assets (liabilities) as of December 31, 2019 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 79,911 $ 424 $ 84,968 $ (470) Foreign exchange forward contract derivatives in cash flow hedging relationships included in other long-term assets $ 15,694 $ 546 $ — $ — Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 14,592 $ (35) $ 26,995 $ 5 For the three and six months ended June 30, 2020, the unaudited consolidated statements of operations reflect a loss of $361 and $304, respectively, related to the effective portion of the cash flow hedges. For the three and six months ended June 30, 2019, the unaudited consolidated statements of operations reflect a loss of $80 and $531, respectively, related to the effective portion of the cash flow hedges. In the second quarter of 2020, the realized gains from these derivatives was $2,471. The cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. Effective with our January 1, 2019 adoption of ASU No. 2017-12, ineffectiveness of cash flow hedges is no longer recognized in financial income (expenses), net in the consolidated statement of operations. No material ineffective hedges were recognized for the three and six months ended June 30, 2020 and 2019 in operating expenses in the consolidated statement of operations. For the three and six months ended June 30, 2020, the unaudited consolidated statements of operations reflect a loss of $196 and a gain of $632, respectively, in financial income (expenses), net, related to the Fair Value Hedging Program. For the three and six months ended June 30, 2019, the unaudited consolidated statements of operations reflect gains of $90 and $484, respectively, in financial income (expenses), net, related to the Fair Value Hedging Program. f. Cash, Cash Equivalents, Marketable Securities and Short-Term Investments: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities”. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand, highly liquid investments in money market funds and various deposit accounts. The Company considers all high quality investments purchased with original maturities at the date of purchase greater than three but less than twelve months to be short-term deposits. Cash equivalents, marketable securities and short-term deposits are classified as available for sale and are, therefore, recorded at fair value on the consolidated balance sheet, with any unrealized gains and losses reported in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in the Company’s consolidated balance sheets, until realized. The Company uses the specific identification method to compute gains and losses on the investments. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included as a component of financial income (expenses), net in the consolidated statement of operations. Cash, cash equivalents, marketable securities and short-term deposits consist of the following (in thousands): As of June 30, 2020 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 18,634 $ — $ — $ 18,634 Total $ 18,634 $ — $ — $ 18,634 Marketable securities US Treasury securities $ 26,021 $ 95 $ — $ 26,116 Total $ 26,021 $ 95 $ — $ 26,116 Short-term deposits Term bank deposits $ 60,000 $ — $ — $ 60,000 Total $ 60,000 $ — $ — $ 60,000 As of December 31, 2019 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 4,789 $ — $ — $ 4,789 Total $ 4,789 $ — $ — $ 4,789 Marketable securities US Treasury securities $ 41,510 $ 23 $ (2) $ 41,531 Total $ 41,510 $ 23 $ (2) $ 41,531 Short-term deposits Term bank deposits $ 10,000 $ — $ — $ 10,000 Total $ 10,000 $ — $ — $ 10,000 All the US Treasury securities in marketable securities have a stated effective maturity of less than 12 months as of June 30, 2020 and December 31, 2019. The gross unrealized gains and losses related to these short-term investments was due primarily to changes in interest rates. Available for sale debt securities with an amortized cost basis in excess of estimated fair value are assessed using the Current Expected Credit losses ("CECL") model to determine what portion of that difference, if any, is caused by expected credit losses. Expected credit losses on available for sale debt securities are recognized in financial income (expenses), net on the consolidated statements of operations. During the three and six months ended June 30, 2020, the Company did not recognize an allowance for credit losses on available for sale marketable securities as any expected credit losses are not material to the consolidated financial statements. g. Credit Facility: On March 31, 2014, the Company entered into a promissory note and related security documents with Bank Leumi USA, which the Company has extended a number of times. The Company may borrow up to $7,000 against certain of its accounts receivable outstanding amount, based on several conditions, at an annual interest rate of the Wall Street Journal Prime Rate plus 0.05%, provided that the annual interest rate applicable to advances will not be lower than 4.10%. As of June 30, 2020, that borrowing rate was 4.10%. This promissory note enables the Company, among other things, to engage in foreign currency hedging transactions with Bank Leumi USA to manage exposure to foreign currency risk without restricted cash requirements. The Company may borrow under the promissory note until November 15, 2020 at which time the principal sum of each such loan, together with accrued and unpaid interest payable, will become due and payable. As of June 30, 2020, the Company had no balance outstanding under the promissory note. As part of the transaction, the Company granted the lender a security interest in its personal property, excluding intellectual property and other intangible assets. The promissory note also contains customary events of default. h. COVID-19: In March 2020, the WHO declared COVID-19 a global pandemic. The pandemic, which has continued to spread, and related adverse public health developments, has adversely affected workforces, economies, and financial markets globally, leading to an economic downturn and is expected to continue to disrupt general business operations until the disease is contained. This had a negative impact on the Company's sales and results of operations, primarily in the first quarter of 2020, and might, in the future, negatively affect the Company's sales and results of operations. The Company is currently unable to predict the scale and duration of that impact. As of the filing date of these financial statements, the Company is not aware of any specific event or circumstance that would require an update of its accounting estimates or judgments or revision of the carrying value of its assets or liabilities. This determination may change as new events occur and additional information is obtained. Actual results could differ from our estimates and judgments, and any such differences may be material to our financial statements. i. Recently Adopted Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. This new standard was adopted for our interim and annual periods beginning January 1, 2020 using the prospective adoption approach. Adoption of this standard had an immaterial impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses on Financial Instruments”, which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available for sale debt securities be recorded through an allowance for credit losses. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For available for sale debt securities with unrealized losses, the standard eliminates the concept of other-than-temporary impairments and requires allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 also limits the amount of credit losses to be recognized for available for sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard was adopted for interim and annual periods beginning after January 1, 2020. Adoption of this standard had an immaterial impact on the Company's consolidated financial statements. j. Recently Issued Accounting Pronouncements Not Yet Adopted: The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. There have been no transfers between fair value measurements levels during the three months ended June 30, 2020. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy (in thousands): As of June 30, 2020 (unaudited) As of December 31, 2019 Level I Level Level III Fair Level I Level Level III Fair Financial assets: Cash equivalents: Money market funds 18,634 — — 18,634 4,789 — — 4,789 Marketable securities: US Treasury securities 26,116 — — 26,116 41,531 — — 41,531 Prepaid expenses and other current assets: Forward foreign exchange contracts — 424 — 424 — 5 — 5 Other long-term assets: Forward foreign exchange contracts — 546 — 546 — — — — Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (35) — (35) — (470) — (470) Total financial assets (liabilities) $ 44,750 $ 935 $ — $ 45,685 $ 46,320 $ (465) $ — $ 45,855 See Note 4 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's convertible senior notes as of June 30, 2020. |
Leases
Leases | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Leases | LEASES In February 2016, the FASB issued ASU 2016-02, “Leases”, on the recognition, measurement, presentation and disclosure of leases for both parties to a contract (i.e., lessees and lessors). The new standard requires lessees to apply a dual approach, classifying leases as either finance or operating leases based on the principle of whether or not the lease is effectively a financed purchase by the lessee. This classification will determine whether lease expense is recognized based on an effective interest method or on a straight-line basis over the term of the lease, respectively. A lessee is also required to record a right-of-use asset and a lease liability for all leases with a term of greater than 12 months regardless of their classification. The Company has elected the short-term lease exception for leases with a term of 12 months or less. As part of this election it will not recognize right-of-use assets and lease liabilities on the balance sheet for leases with terms less than 12 months. The Company also elected the practical expedient to not separate lease and non-lease components for all its leases. This will result in the initial and subsequent measurement of the balances of the right-of-use asset and lease liability being greater than if the policy election was not applied. Some leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in remeasurement of the right-of-use asset and lease liability. The right-of-use asset and lease liability are initially measured at the present value of the lease payments, discounted using the interest rate implicit in the lease or, if that rate cannot be readily determined, the Company's incremental borrowing rate based on the information available at the date of adoption in determining the present value of the lease payments. The Company's incremental borrowing rate is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index ("CPI"). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. Additional payments based on the change in a CPI are recorded as a period expense when incurred. The Company has granted several liens to financial institutions mainly to secure various operating lease agreements in connection with its office space. The Company has various operating leases for office space, vehicles and office equipment that expire through 2030. Its lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Below is a summary of our operating right-of-use assets and operating lease liabilities as of June 30, 2020: June 30, 2020 (unaudited) Operating right-of-use assets $ 51,294 Operating lease liabilities, current $ 8,188 Operating lease liabilities long-term 53,539 Total operating lease liabilities $ 61,727 Operating lease liabilities, current are included within accrued expenses and other short-term liabilities Minimum lease payments for our right-of-use assets over the remaining lease periods as of June 30, 2020, are as follows: June 30, 2020 (unaudited) 2020 $ 5,405 2021 10,365 2022 9,176 2023 8,967 2024 8,576 Thereafter 30,378 Total undiscounted lease payments $ 72,867 Less: Imputed interest (11,140) Present value of lease liabilities $ 61,727 As of June 30, 2020, the Company had an additional operating lease that had not yet commenced of $5,629. This operating lease is expected to commence in the third quarter of 2020 with a lease term through 2030. The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2020: Remaining lease term and discount rate: Weighted average remaining lease term (years) 7.92 Weighted average discount rate 4.04 % |
Convertible Senior Notes and Ca
Convertible Senior Notes and Capped Call Transactions | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes and Capped Call Transactions | CONVERTIBLE SENIOR NOTES AND CAPPED CALL TRANSACTIONSOn May 11, 2020, the Company issued $253,000 aggregate principal amount of 1.25% Convertible Senior Notes due August 2025 (the “2025 Notes”) pursuant to an Indenture dated May 11, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The offering consisted of $220,000 aggregate principal amount plus the full exercise of the initial purchasers’ option to purchase up to an additional $33,000 aggregate principal amount. The net proceeds to the Company after the initial purchaser discount and issuance costs were approximately $245,158. The Company used $29,348 of the net proceeds from the offering to pay the cost of the capped call transactions described below. The Company expects to use the remaining net proceeds for working capital and general corporate purposes, which may include research and development, capital expenditures and other general corporate purposes. The 2025 Notes will mature on August 15, 2025, unless earlier converted, redeemed or repurchased. Interest will be payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2020, at a rate of 1.25% per year. The initial conversion rate for the 2025 Notes is 10.8556 shares of the Company’s common stock for each $1,000 principal amount of the 2025 Notes which is equivalent to an initial conversion price of approximately $92.12 per share. The conversion rate is subject to adjustment in specified events. The 2025 Notes are convertible into shares of the Company’s common stock, par value $0.001 per share (the “common stock”), at the option of a holder, prior to the close of business on the business day immediately preceding February 15, 2025, only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on September 30, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five consecutive business day period immediately after any five consecutive trading day period (the “measurement period”) in which the “trading price” (as defined in the Indenture) per $1,000 principal amount of the 2025 Notes, as determined following a request by a holder of the 2025 Notes in the manner described in the Indenture, for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the Company’s common stock and the conversion rate on each such trading day; (3) if the Company calls any or all of the 2025 Notes for redemption, at any time prior to the close of business on the scheduled trading day immediately preceding the redemption date; or (4) upon the occurrence of certain corporate events specified in the Indenture. In addition, regardless of the foregoing circumstances, on or after February 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, a holder may convert all or any portion of its 2025 Notes at any time. Upon conversion, the 2025 Notes may be settled, at the Company’s election, in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock in the manner and subject to the terms and conditions provided in the Indenture. The 2025 Notes are not redeemable at the Company’s option prior to August 20, 2023. The Company may redeem the 2025 Notes for cash, at its option, on a redemption date occurring on or after August 20, 2023, and on or prior to the 41st scheduled trading day immediately preceding the maturity date, if the last reported sale price of the Company’s common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides notice of redemption, during any 30 consecutive trading day period ending on and including the trading day immediately preceding the date on which the Company provides notice of redemption at a redemption price equal to 100% of the principal amount of the 2025 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes a “fundamental change” (as defined in the Indenture), subject to certain conditions, holders may require the Company to repurchase for cash all or part of their 2025 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2025 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. If the Company is required to repurchase the 2025 Notes due to a fundamental change, it remains at the Company’s discretion to determine whether the settlement is in cash, shares of the Company’s common stock, or a combination of cash and shares of the Company’s common stock. The Indenture includes customary terms, including certain events of default after which the 2025 Notes may be due and payable immediately. The 2025 Notes are the Company’s unsecured obligations and rank senior in right of payment to all of the Company’s indebtedness that is expressly subordinated in right of payment to the 2025 Notes. The Company accounted for its convertible senior notes in accordance with ASC 470-20 "Debt with Conversion and Other Options" and separated the Notes into liability and equity components. The carrying amounts of the liability components of the Notes were calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amounts of the equity components, representing the conversion option, were determined by deducting the fair value of the liability components from the par value of the 2025 Notes. This difference represents the debt discount that is amortized to interest expense over the terms of the 2025 Notes using the effective interest rate method. The carrying amount of the equity components representing the conversion option was approximately $31,779 for the 2025 Notes and is recorded in additional paid-in capital and are not remeasured as long as they continue to meet the conditions for equity classification. The Company allocates transaction costs related to the issuance of the 2025 Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were approximately $6,857 and are being amortized to interest expense at an effective interest method rate of 4.51% over the term of the 2025 Notes. Transaction costs attributable to the equity component were approximately $985 and are netted with the equity component of the 2025 Notes in additional paid-in capital. The net carrying amount of the liability and equity components of the 2025 Notes as of June 30, 2020 was as follows: As of June 30, 2020 (in thousands) Liability component Principal $ 253,000 Unamortized discount (31,138) Unamortized issuance costs (6,718) Net carrying amount $ 215,144 Equity component, net of discount and issuance costs $ 30,794 The interest expense recognized related to the 2025 Notes for the three and six months ended June 30, 2020 was as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (in thousands) Contractual interest expense $ 430 $ 430 Amortization of debt discount 641 641 Amortization of debt issuance costs 138 138 Total $ 1,209 $ 1,209 As of June 30, 2020 , the total estimated fair value of the Notes was approximately $294,001. The fair value was determined based on the closing trading price per $100 of the 2025 Notes as of the last day of trading for the period. The fair value of the Notes is primarily affected by the trading price of our common stock and market interest rates. The fair value of the Notes is considered a Level 2 within the fair value hierarchy and was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the Notes in an over-the-counter market. Capped Call Transactions On May 6, 2020, in connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “Initial Capped Call Transactions”). In addition, in connection with initial purchasers’ exercise in full of their option to purchase additional 2025 Notes, on May 8, 2020, the Company entered into additional privately negotiated capped call transactions (the “Additional Capped Call Transactions,” and, together with the Initial Capped Call Transactions, the “Capped Call Transactions”) with the initial purchasers or their respective affiliates and another financial institution. The capped call transactions are expected generally to reduce the potential dilution to the Company’s common stock upon any conversion of the Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2025 Notes, as the case may be, with such reduction and/or offset subject to a cap initially equal to $141.72 (which represents a premium of 100% over the last reported sale price of the Company’s common stock on May 6, 2020), subject to certain adjustments. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY a. On December 30, 2005, the Company’s board of directors adopted the Varonis Systems, Inc. 2005 Stock Plan (the “2005 Stock Plan”). As of December 31, 2013, the Company had reserved 4,713,319 shares of common stock available for issuance to employees, directors, officers and consultants of the Company and its subsidiaries. The options generally vest over four years. No awards were granted under the 2005 Stock Plan subsequent to December 31, 2013, and no further awards will be granted under the 2005 Stock Plan. On November 14, 2013, the Company’s board of directors adopted the Varonis Systems, Inc. 2013 Omnibus Equity Incentive Plan (the “2013 Plan”) which was subsequently approved by the Company’s stockholders. The Company initially reserved 1,904,633 shares of common stock for issuance under the 2013 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2013 Plan was increased on January 1, 2016 and has been, and will be, increased on each January 1 thereafter by four percent (4%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase (rounded down to the nearest whole share), but the amount of each increase will be limited to the number of shares of common stock necessary to bring the total number of shares of Common Stock available for grant and issuance under the 2013 Plan to five percent (5%) of the number of shares of common stock issued and outstanding on each December 31. Since January 1, 2016, the share reserve under the 2013 Plan has been automatically increased by an aggregate of 5,530,555 shares. Awards granted under the 2013 Plan generally vest over four years. Any award that is forfeited or canceled before expiration becomes available for future grants under the 2013 Plan. A summary of employees’ stock options activities during the six months ended June 30, 2020 is as follows: Six Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2020 454,348 $ 20.628 $ 25,935 4.343 Granted — $ — Exercised (64,005) $ 19.991 Forfeited and expired (500) $ 1.576 Options outstanding and exercisable as of June 30, 2020 389,843 $ 20.757 $ 26,401 3.925 The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the period. Total intrinsic value of options exercised for the six months ended June 30, 2020 was $4,177. As of June 30, 2020, there was no unrecognized compensation cost related to employees and non-employees unvested stock options as all options have vested. b. The options outstanding as of June 30, 2020 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding and exercisable $ 6.230 — 8.800 10,856 1.566 $ 8.216 $ 12.470 — 16.870 109,838 3.621 $ 14.232 $ 19.510 — 21.660 147,900 4.127 $ 21.158 $ 22.010 — 24.230 54,367 3.807 $ 22.277 $29.880 53,088 4.647 $ 29.880 $39.860 13,794 3.726 $ 39.860 389,843 3.925 $ 20.757 c. Options issued to consultants: The Company’s outstanding options granted to consultants for services as of June 30, 2020 (unaudited) were as follows: Options outstanding and exercisable as of June 30, 2020 Exercise price Exercisable (number) February 2013 1,500 $ 12.470 February 2023 August 2013 4,000 $ 21.140 August 2023 March 2014 2,700 $ 39.860 March 2024 May 2014 3,700 $ 22.010 May 2024 November 2014 4,038 $ 21.660 November 2024 May 2015 1,057 $ 19.510 May 2025 February 2016 1,950 $ 16.870 February 2026 18,945 d. Restricted stock units: A summary of restricted stock units and performance stock units for employees, consultants and non-employee directors of the Company for the six months ended June 30, 2020 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2020 2,559,083 $ 49.58 Granted 1,296,911 $ 84.52 Vested (833,037) $ 43.77 Forfeited (131,362) $ 59.87 Unvested balance – June 30, 2020 2,891,595 $ 66.46 e. As of June 30, 2020, there was $169,414 of total unrecognized compensation cost related to employees and non-employees unvested restricted stock units which is expected to be recognized over a period of 2.533 years. f. 2015 Employee Stock Purchase Plan On May 5, 2015, the Company’s stockholders approved the Varonis Systems, Inc. 2015 Employee Stock Purchase Plan (the “ESPP”), which the Company’s board of directors had adopted on March 19, 2015. The ESPP became effective as of June 30, 2015. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value of the Company’s common stock on the first day or last trading day in the offering period, subject to any plan limitations. The Company initially reserved 500,000 shares of common stock for issuance under the ESPP. The number of shares available for issuance under the ESPP was increased on January 1, 2016 and has been, and will be, increased each January 1 thereafter, by an amount equal to the lesser of (i) one percent (1%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase, except that the amount of each such increase will be limited to the number of shares of common stock necessary to bring the total number of shares of common stock available for issuance under the ESPP to two percent (2%) of the number of shares of common stock issued and outstanding on each such December 31, or (ii) 400,000 shares of common stock. Since January 1, 2016, the share reserve under the ESPP has been automatically increased by an aggregate of 702,163 shares. The ESPP will continue in effect until the earlier of (i) the date when no shares of common stock are available for issuance thereunder or (ii) June 30, 2025; unless terminated prior thereto by the Company’s board of directors or compensation committee, each of which has the right to terminate the ESPP at any time. g. Stock-based compensation expense for employees and consultants: The Company recognized non-cash stock-based compensation expense in the consolidated statements of operations as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenues $ 1,354 $ 772 $ 2,139 $ 1,330 Research and development 5,686 3,520 9,767 6,198 Sales and marketing 6,860 3,640 11,589 7,083 General and administrative 3,723 6,864 7,011 9,146 Total $ 17,623 $ 14,796 $ 30,506 $ 23,757 h. Since the Company is in a net loss position for all periods presented, basic net loss per share is the same as diluted net loss per share for all the periods as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were 3,300,383 and 3,312,492 potentially dilutive shares from the conversion of outstanding restricted stock units and stock options that were not included in the calculation of diluted net loss per share as of June 30, 2020 and 2019, respectively. Additionally, approximately 2.7 million shares underlying the conversion option of the 2025 Notes are not considered in the calculation of diluted net income per share as the effect would be anti-dilutive. The Company intends to settle the principal amount of the 2025 Notes in cash and therefore will use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion will have a dilutive impact on diluted net income per share when the average market price of a common stock for a given period exceeds the conversion price of $92.12 per share. |
Geographic Information and Majo
Geographic Information and Major Customer and Product Data | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Geographic Information and Major Customer and Product Data | GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER AND PRODUCT DATA Summary information about geographic areas: ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment and derives revenues from licensing of software and sales of professional services, maintenance and technical support (see Note 1 above for a brief description of the Company’s business). The following is a summary of revenues within geographic areas: Three Months Ended Six Months Ended 2020 2019 2020 2019 (unaudited) (unaudited) (in thousands) (in thousands) Revenues based on customer’s location: North America $ 45,815 $ 39,984 $ 83,689 $ 77,833 EMEA (*) 18,721 17,553 33,332 33,952 Rest of World 2,029 2,084 3,720 4,196 Total revenues $ 66,565 $ 59,621 $ 120,741 $ 115,981 (*) Sales to customers in France accounted for $8,158 and $6,522 of the Company’s revenues for the three months ended June 30, 2020 and 2019, respectively. Sales to customers in France accounted for $13,678 and $12,763 of the Company’s revenues for the six months ended June 30, 2020 and 2019, respectively. The following is a summary of long-lived assets, including property and equipment, net and operating lease right-of-use assets, within geographic areas: As of As of June 30, 2020 December 31, 2019 (unaudited) (in thousands) Long-lived assets by geographic region: Israel $ 45,124 $ 45,382 United States 39,966 42,590 Other 2,770 3,423 $ 87,860 $ 91,395 |
General (Policies)
General (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | b. Basis of Presentation: The accompanying unaudited consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain amounts in prior periods' financial statements have been recast and reclassified to conform to the current year's presentation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its consolidated financial position, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the 2019 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2019 filed with the SEC on February 11, 2020 (the “2019 Form 10-K”). There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2019 included in the 2019 Form 10-K, unless otherwise stated. |
Revenue Recognition | c. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are comprised of time-based licenses whereby customers use the Company's software with related maintenance (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. Subscriptions are sold on premises and are recognized from sales of subscription licenses to new and existing customers. When products are purchased as a subscription, the associated maintenance is included as part of the subscription revenues. Perpetual licenses have the same functionality as subscriptions and perpetual license revenues consist of the revenues recognized from sales of perpetual licenses to new and existing customers. Maintenance and services primarily consist of fees for maintenance services of perpetual license sales (including support and unspecified upgrades and enhancements when and if they are available) and to a lesser extent professional services which focus on both operationalizing the software and training the Company’s customers to fully leverage the use of its products although the user can benefit from the software without the Company's assistance. The Company sells its products worldwide directly to a network of distributors and VARs, and payment is typically due within 30 to 60 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers”. As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Subscription software and perpetual license revenues are recognized at the point of time when the software license has been delivered and the benefit of the asset has transferred. Maintenance associated with subscription licenses is recognized ratably over the term of the agreement and is included as part of the subscription revenues line item. The Company recognizes revenues from maintenance of perpetual license sales ratably over the term of the underlying maintenance contract. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the term with the revenues recognized ratably over the period. Revenues from professional services consist mostly of time and material services. The performance obligations are satisfied, and revenues are recognized, when the services are provided or once the service term has expired. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The license is distinct upon delivery as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of the total consideration of the contract. For maintenance, the Company determines the standalone selling prices based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. For software licenses, the Company uses the residual approach to determine the standalone selling prices due to the lack of history of selling software license on a standalone basis and the highly variable sales price. Trade and other receivables are primarily comprised of trade receivables that are recorded at the invoice amount, net of an allowance for doubtful accounts. d. Contract Costs: |
Derivative Instruments | e. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes forward foreign exchange contracts designated as cash flow hedges. These forward foreign exchange contracts generally mature within 12 months. In March 2020, the World Health Organization (”WHO”) declared the novel coronavirus COVID-19 ("COVID-19") a global pandemic. Due to the market volatility that resulted from the COVID-19 outbreak, in March 2020 the Company entered into additional forward foreign exchange contracts expected to mature within 18 months at more favorable rates. In addition, the Company enters into forward contracts to hedge a portion of its monetary items in the balance sheet, such as trade receivables and payables, denominated in Pound Sterling and Euro for short-term periods (the “Fair Value Hedging Program”). The purpose of the Fair Value Hedging Program is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to the Fair Value Hedging Program are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading purposes. |
Cash, Cash Equivalents and Short-term Investments | f. Cash, Cash Equivalents, Marketable Securities and Short-Term Investments: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities”. The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand, highly liquid investments in money market funds and various deposit accounts. |
Recently Issued Accounting Pronouncements | i. Recently Adopted Accounting Pronouncements: In August 2018, the FASB issued ASU 2018-15, “Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract,” which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. This new standard was adopted for our interim and annual periods beginning January 1, 2020 using the prospective adoption approach. Adoption of this standard had an immaterial impact on the Company's consolidated financial statements. In January 2016, the FASB issued ASU 2016-13, “Financial Instruments – Credit Losses on Financial Instruments”, which requires that expected credit losses relating to financial assets measured on an amortized cost basis and available for sale debt securities be recorded through an allowance for credit losses. This standard requires entities to estimate an expected lifetime credit loss on financial assets ranging from short-term trade accounts receivable to long-term financings and report credit losses using an expected losses model rather than the incurred losses model that was previously used, and establishes additional disclosures related to credit risks. For available for sale debt securities with unrealized losses, the standard eliminates the concept of other-than-temporary impairments and requires allowances to be recorded instead of reducing the amortized cost of the investment. ASU 2016-13 also limits the amount of credit losses to be recognized for available for sale debt securities to the amount by which carrying value exceeds fair value and also requires the reversal of previously recognized credit losses if fair value increases. The new standard was adopted for interim and annual periods beginning after January 1, 2020. Adoption of this standard had an immaterial impact on the Company's consolidated financial statements. j. Recently Issued Accounting Pronouncements Not Yet Adopted: The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption. |
General (Tables)
General (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets (liabilities) as of June 30, 2020 (unaudited) Assets (liabilities) as of December 31, 2019 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 79,911 $ 424 $ 84,968 $ (470) Foreign exchange forward contract derivatives in cash flow hedging relationships included in other long-term assets $ 15,694 $ 546 $ — $ — Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 14,592 $ (35) $ 26,995 $ 5 |
Cash, Cash Equivalents and Investments | Cash, cash equivalents, marketable securities and short-term deposits consist of the following (in thousands): As of June 30, 2020 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 18,634 $ — $ — $ 18,634 Total $ 18,634 $ — $ — $ 18,634 Marketable securities US Treasury securities $ 26,021 $ 95 $ — $ 26,116 Total $ 26,021 $ 95 $ — $ 26,116 Short-term deposits Term bank deposits $ 60,000 $ — $ — $ 60,000 Total $ 60,000 $ — $ — $ 60,000 As of December 31, 2019 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 4,789 $ — $ — $ 4,789 Total $ 4,789 $ — $ — $ 4,789 Marketable securities US Treasury securities $ 41,510 $ 23 $ (2) $ 41,531 Total $ 41,510 $ 23 $ (2) $ 41,531 Short-term deposits Term bank deposits $ 10,000 $ — $ — $ 10,000 Total $ 10,000 $ — $ — $ 10,000 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s assets and liabilities that were measured at fair value as of June 30, 2020 and December 31, 2019 by level within the fair value hierarchy (in thousands): As of June 30, 2020 (unaudited) As of December 31, 2019 Level I Level Level III Fair Level I Level Level III Fair Financial assets: Cash equivalents: Money market funds 18,634 — — 18,634 4,789 — — 4,789 Marketable securities: US Treasury securities 26,116 — — 26,116 41,531 — — 41,531 Prepaid expenses and other current assets: Forward foreign exchange contracts — 424 — 424 — 5 — 5 Other long-term assets: Forward foreign exchange contracts — 546 — 546 — — — — Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (35) — (35) — (470) — (470) Total financial assets (liabilities) $ 44,750 $ 935 $ — $ 45,685 $ 46,320 $ (465) $ — $ 45,855 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Leases [Abstract] | |
Summary of Right-of-Use Assets and Lease Liabilities | Below is a summary of our operating right-of-use assets and operating lease liabilities as of June 30, 2020: June 30, 2020 (unaudited) Operating right-of-use assets $ 51,294 Operating lease liabilities, current $ 8,188 Operating lease liabilities long-term 53,539 Total operating lease liabilities $ 61,727 |
Lessee, Operating Lease, Liability, Maturity | Minimum lease payments for our right-of-use assets over the remaining lease periods as of June 30, 2020, are as follows: June 30, 2020 (unaudited) 2020 $ 5,405 2021 10,365 2022 9,176 2023 8,967 2024 8,576 Thereafter 30,378 Total undiscounted lease payments $ 72,867 Less: Imputed interest (11,140) Present value of lease liabilities $ 61,727 |
Summary of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for all of operating leases were as follows as of June 30, 2020: Remaining lease term and discount rate: Weighted average remaining lease term (years) 7.92 Weighted average discount rate 4.04 % |
Convertible Senior Notes and _2
Convertible Senior Notes and Capped Call Transactions (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Convertible Notes | The net carrying amount of the liability and equity components of the 2025 Notes as of June 30, 2020 was as follows: As of June 30, 2020 (in thousands) Liability component Principal $ 253,000 Unamortized discount (31,138) Unamortized issuance costs (6,718) Net carrying amount $ 215,144 Equity component, net of discount and issuance costs $ 30,794 |
Schedule of Interest Expense | The interest expense recognized related to the 2025 Notes for the three and six months ended June 30, 2020 was as follows: Three Months Ended Six Months Ended June 30, 2020 June 30, 2020 (in thousands) Contractual interest expense $ 430 $ 430 Amortization of debt discount 641 641 Amortization of debt issuance costs 138 138 Total $ 1,209 $ 1,209 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation, Stock Options, Activity | A summary of employees’ stock options activities during the six months ended June 30, 2020 is as follows: Six Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2020 454,348 $ 20.628 $ 25,935 4.343 Granted — $ — Exercised (64,005) $ 19.991 Forfeited and expired (500) $ 1.576 Options outstanding and exercisable as of June 30, 2020 389,843 $ 20.757 $ 26,401 3.925 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The options outstanding as of June 30, 2020 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding and exercisable $ 6.230 — 8.800 10,856 1.566 $ 8.216 $ 12.470 — 16.870 109,838 3.621 $ 14.232 $ 19.510 — 21.660 147,900 4.127 $ 21.158 $ 22.010 — 24.230 54,367 3.807 $ 22.277 $29.880 53,088 4.647 $ 29.880 $39.860 13,794 3.726 $ 39.860 389,843 3.925 $ 20.757 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The Company’s outstanding options granted to consultants for services as of June 30, 2020 (unaudited) were as follows: Options outstanding and exercisable as of June 30, 2020 Exercise price Exercisable (number) February 2013 1,500 $ 12.470 February 2023 August 2013 4,000 $ 21.140 August 2023 March 2014 2,700 $ 39.860 March 2024 May 2014 3,700 $ 22.010 May 2024 November 2014 4,038 $ 21.660 November 2024 May 2015 1,057 $ 19.510 May 2025 February 2016 1,950 $ 16.870 February 2026 18,945 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity | A summary of restricted stock units and performance stock units for employees, consultants and non-employee directors of the Company for the six months ended June 30, 2020 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2020 2,559,083 $ 49.58 Granted 1,296,911 $ 84.52 Vested (833,037) $ 43.77 Forfeited (131,362) $ 59.87 Unvested balance – June 30, 2020 2,891,595 $ 66.46 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recognized non-cash stock-based compensation expense in the consolidated statements of operations as follows: Three Months Ended Six Months Ended 2020 2019 2020 2019 (unaudited) (unaudited) Cost of revenues $ 1,354 $ 772 $ 2,139 $ 1,330 Research and development 5,686 3,520 9,767 6,198 Sales and marketing 6,860 3,640 11,589 7,083 General and administrative 3,723 6,864 7,011 9,146 Total $ 17,623 $ 14,796 $ 30,506 $ 23,757 |
Geographic Information and Ma_2
Geographic Information and Major Customer and Product Data (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following is a summary of revenues within geographic areas: Three Months Ended Six Months Ended 2020 2019 2020 2019 (unaudited) (unaudited) (in thousands) (in thousands) Revenues based on customer’s location: North America $ 45,815 $ 39,984 $ 83,689 $ 77,833 EMEA (*) 18,721 17,553 33,332 33,952 Rest of World 2,029 2,084 3,720 4,196 Total revenues $ 66,565 $ 59,621 $ 120,741 $ 115,981 |
Long-lived Assets by Geographic Areas | The following is a summary of long-lived assets, including property and equipment, net and operating lease right-of-use assets, within geographic areas: As of As of June 30, 2020 December 31, 2019 (unaudited) (in thousands) Long-lived assets by geographic region: Israel $ 45,124 $ 45,382 United States 39,966 42,590 Other 2,770 3,423 $ 87,860 $ 91,395 |
General (Details Textual)
General (Details Textual) | Mar. 31, 2014USD ($) | Jun. 30, 2020USD ($)subsidiary | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)subsidiary | Jun. 30, 2019USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operations commenced date | Jan. 1, 2005 | ||||
Subsidiary or equity method investee, number | subsidiary | 10 | 10 | |||
Entity incorporation, date of incorporation | Nov. 24, 2004 | ||||
Deferred revenue, revenue recognized | $ 63,632,000 | ||||
Sales returns | $ 0 | $ 0 | |||
Capitalized contract cost, amortization period (years) | 4 years | 4 years | |||
Loss on derivative instruments reclassified into earnings, net of tax | $ 361,000 | $ 80,000 | $ 304,000 | 531,000 | |
Realized income on derivative instruments, net of tax | 2,471,000 | 0 | 2,471,000 | 0 | |
Derivative instruments not designated as hedging instruments, gain (loss), net | (196,000) | 90,000 | 632,000 | 484,000 | |
Foreign Exchange Contract | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Loss on derivative instruments reclassified into earnings, net of tax | 361,000 | 80,000 | 304,000 | 531,000 | |
Realized income on derivative instruments, net of tax | 2,471,000 | ||||
Ineffective hedges recognized | $ 0 | $ 0 | $ 0 | $ 0 | |
Promissory Note | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Line of credit facility, maximum borrowing capacity | $ 7,000,000 | ||||
Basis spread on variable rate (percentage) | 0.05% | ||||
Interest rate at period end (percentage) | 4.10% | 4.10% | |||
Promissory Note | Minimum | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Interest rate, effective percentage | 4.10% | ||||
Maintenance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Revenue, performance obligation, description of timing | one year |
Derivative Instruments Measured
Derivative Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Other Current Assets, Accrued Expenses and Other Short Term Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | $ 14,592 | $ 26,995 |
Derivative assets, fair value | 5 | |
Derivative liabilities, fair value | (35) | |
Cash Flow Hedging | Other Current Assets, Accrued Expenses and Other Short Term Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 79,911 | 84,968 |
Derivative liabilities, fair value | 424 | (470) |
Cash Flow Hedging | Other Long-Term Assets | ||
Derivative [Line Items] | ||
Notional Amount | 15,694 | 0 |
Derivative assets, fair value | $ 546 | $ 0 |
Cash, Cash Equivalents and Shor
Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Cash and cash equivalents | ||
Amortized Cost | $ 18,634 | $ 4,789 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,634 | 4,789 |
Cash and cash equivalents | Money market funds | ||
Amortized Cost | 18,634 | 4,789 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 18,634 | 4,789 |
Marketable securities | ||
Amortized Cost | 26,021 | 41,510 |
Gross Unrealized Gains | 95 | 23 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 26,116 | 41,531 |
Marketable securities | US Treasury securities | ||
Amortized Cost | 26,021 | 41,510 |
Gross Unrealized Gains | 95 | 23 |
Gross Unrealized Losses | 0 | (2) |
Fair Value | 26,116 | 41,531 |
Short-term deposits | ||
Amortized Cost | 60,000 | 10,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 60,000 | 10,000 |
Short-term deposits | Term bank deposits | ||
Amortized Cost | 60,000 | 10,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | $ 60,000 | $ 10,000 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | $ 45,685 | $ 45,855 |
Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (35) | (470) |
Forward foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 424 | 5 |
Forward foreign exchange contracts | Other Long-Term Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 546 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,634 | 4,789 |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,116 | 41,531 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 44,750 | 46,320 |
Level I | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level I | Forward foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Level I | Forward foreign exchange contracts | Other Long-Term Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Level I | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 18,634 | 4,789 |
Level I | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 26,116 | 41,531 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 935 | (465) |
Level II | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | (35) | (470) |
Level II | Forward foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 424 | 5 |
Level II | Forward foreign exchange contracts | Other Long-Term Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 546 | 0 |
Level II | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level II | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 0 | 0 |
Level III | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative liabilities | 0 | 0 |
Level III | Forward foreign exchange contracts | Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Level III | Forward foreign exchange contracts | Other Long-Term Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative assets | 0 | 0 |
Level III | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level III | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 51,294 | $ 55,057 |
Operating lease liabilities, current | 8,188 | |
Operating lease liabilities long-term | 53,539 | $ 57,040 |
Total operating lease liabilities | $ 61,727 |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments for Right-of-Use Assets (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 5,405 |
2021 | 10,365 |
2022 | 9,176 |
2023 | 8,967 |
2024 | 8,576 |
Thereafter | 30,378 |
Total undiscounted lease payments | 72,867 |
Less: Imputed interest | (11,140) |
Present value of lease liabilities | $ 61,727 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Leases [Abstract] | ||||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | us-gaap:OtherLiabilitiesCurrent | ||
Lessee, operating lease, lease not yet commenced, amount | $ 5,629 | $ 5,629 | ||
Operating lease cost | $ 3,024 | $ 1,602 | $ 5,036 | $ 3,303 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Jun. 30, 2020 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 7 years 11 months 1 day |
Weighted average discount rate | 4.04% |
Convertible Senior Notes and _3
Convertible Senior Notes and Capped Call Transactions - Narrative (Details) | May 11, 2020USD ($)$ / shares | Jun. 30, 2020USD ($)tradingDay$ / shares | Jun. 30, 2019USD ($) | Dec. 31, 2019$ / shares |
Debt Instrument [Line Items] | ||||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 245,308,000 | $ 0 | ||
Purchases of capped calls | $ 29,348,000 | $ 0 | ||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | $ 0.001 | ||
Cap price | $ / shares | $ 141.72 | |||
Percentage premium over the last reported sale price of company common stock used to calculate cap price | 100.00% | |||
2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount including additional purchases from exercised options | $ 253,000,000 | |||
Equity component, net of discount and issuance costs | 30,794,000 | |||
Fair value of the notes | $ 294,001,000 | |||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Purchases of capped calls | $ 29,348,000 | |||
Common stock, par value (in dollars per share) | $ / shares | $ 0.001 | |||
Convertible Debt | 2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount including additional purchases from exercised options | $ 253,000,000 | |||
Interest rate, stated percentage | 1.25% | |||
Principal amount | $ 220,000,000 | |||
Additional amount included in principal from exercised options | 33,000,000 | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 245,158,000 | |||
Debt instrument, convertible, conversion ratio | 10.8556 | |||
Initial conversion price (in dollars per share) | $ / shares | $ 92.12 | |||
Repurchase of notes percentage | 100.00% | |||
Interest rate, effective percentage | 4.51% | |||
Equity component, net of discount and issuance costs | $ 31,779,000 | |||
Debt issuance costs of liability component | 6,857,000 | |||
Convertible Debt | 2025 Senior Notes | Additional paid-in capital | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs of equity component | $ 985,000 | |||
Convertible Debt | 2025 Senior Notes | Debt Conversion, Option One | ||||
Debt Instrument [Line Items] | ||||
Threshold trading days (in trading days) | tradingDay | 20 | |||
Threshold consecutive trading days | tradingDay | 30 | |||
Threshold percentage of conversion price | 130.00% | |||
Convertible Debt | 2025 Senior Notes | Debt Conversion, Option Two | ||||
Debt Instrument [Line Items] | ||||
Threshold consecutive trading days | tradingDay | 5 | |||
Threshold percentage of conversion price | 98.00% | |||
Threshold consecutive business days | tradingDay | 5 |
Convertible Senior Notes and _4
Convertible Senior Notes and Capped Call Transactions - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 215,144 | $ 0 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 253,000 | |
Unamortized discount | (31,138) | |
Unamortized issuance costs | (6,718) | |
Net carrying amount | 215,144 | |
Equity component, net of discount and issuance costs | $ 30,794 |
Convertible Senior Notes and _5
Convertible Senior Notes and Capped Call Transactions - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020 | Jun. 30, 2020 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 430 | $ 430 |
Amortization of debt discount | 641 | 641 |
Amortization of debt issuance costs | 138 | 138 |
Total | $ 1,209 | $ 1,209 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) - USD ($) | Jun. 30, 2015 | Nov. 14, 2013 | Mar. 31, 2014 | Jun. 30, 2020 | Jun. 30, 2019 | Mar. 31, 2020 | Mar. 31, 2018 | Sep. 30, 2015 | Dec. 31, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Granted (in shares) | 0 | ||||||||
Exercises in period, intrinsic value | $ 4,177,000 | ||||||||
Compensation cost not yet recognized | $ 0 | ||||||||
Restricted Stock Units and Stock Options | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | 3,300,383 | 3,312,492 | |||||||
Convertible Debt | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | 2,700,000 | ||||||||
Restricted Stock Units (RSUs) | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 2 years 10 months 24 days | ||||||||
Compensation cost not yet recognized | $ 169,414,000 | ||||||||
The 2005 Stock Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, capital shares reserved for future issuance (in shares) | 4,713,319 | ||||||||
Vesting period (in years) | 4 years | ||||||||
Granted (in shares) | 0 | ||||||||
Shares available for grant (in shares) | 0 | ||||||||
The 2013 Omnibus Equity Award Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock, capital shares reserved for future issuance (in shares) | 1,904,633 | ||||||||
Percentage of outstanding stock reserved for grant | 4.00% | ||||||||
Percentage of outstanding stock maximum | 5.00% | ||||||||
Capital shares reserved for future issuance, annual increase, maximum (in shares) | 5,530,555 | ||||||||
The 2013 Omnibus Equity Award Plan | Employee Stock Option | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Vesting period (in years) | 4 years | ||||||||
2015 ESPP | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Maximum employee subscription rate | 15.00% | ||||||||
Purchase price of common stock, percent | 85.00% | ||||||||
Number of shares authorized (in shares) | 500,000 | ||||||||
Percent of shares increase, employee stock purchase plan | 1.00% | ||||||||
Common stock availability threshold, Employee Stock Purchase Plan | 2.00% | ||||||||
Shares increase threshold, employee stock purchase plan (in shares) | 400,000 | ||||||||
Number of additional shares authorized (in shares) | 702,163 | ||||||||
Convertible Debt | 2025 Senior Notes | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Initial conversion price (in dollars per share) | $ 92.12 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Activities (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Mar. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |
Number | |||
Options outstanding, Balance (in shares) | 454,348 | 454,348 | |
Granted (in shares) | 0 | ||
Exercised (in shares) | (64,005) | ||
Forfeited and expired (in shares) | (500) | ||
Options outstanding, Balance (in shares) | 389,843 | ||
Weighted average exercise price | |||
Options outstanding, weighted average exercise price (in dollars per share) | $ 20.628 | $ 20.628 | |
Granted, weighted average exercise price (in dollars per share) | 0 | ||
Exercised, weighted average exercise price (in dollars per share) | 19.991 | ||
Forfeited and expired, weighted average exercise price (in dollars per share) | 1.576 | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ 20.757 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Options outstanding, aggregate intrinsic value | $ 26,401 | $ 25,935 | |
Options outstanding, weighted average remaining contractual life (Year) | 4 years 4 months 2 days | 3 years 11 months 4 days |
Stockholders' Equity - Options
Stockholders' Equity - Options Outstanding Separated Into Range of Exercise Price (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 20.757 |
Options outstanding (in shares) | shares | 389,843 |
Weighted average remaining contractual life (Year) | 3 years 11 months 4 days |
Range One | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 8.216 |
Lower range of exercise price (in dollars per share) | 6.230 |
Upper range of exercise price (in dollars per share) | $ 8.800 |
Options outstanding (in shares) | shares | 10,856 |
Weighted average remaining contractual life (Year) | 1 year 6 months 25 days |
Range Two | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 14.232 |
Lower range of exercise price (in dollars per share) | 12.470 |
Upper range of exercise price (in dollars per share) | $ 16.870 |
Options outstanding (in shares) | shares | 109,838 |
Weighted average remaining contractual life (Year) | 3 years 7 months 13 days |
Range Three | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 21.158 |
Lower range of exercise price (in dollars per share) | 19.510 |
Upper range of exercise price (in dollars per share) | $ 21.660 |
Options outstanding (in shares) | shares | 147,900 |
Weighted average remaining contractual life (Year) | 4 years 1 month 17 days |
Range Four | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 22.277 |
Lower range of exercise price (in dollars per share) | 22.010 |
Upper range of exercise price (in dollars per share) | $ 24.230 |
Options outstanding (in shares) | shares | 54,367 |
Weighted average remaining contractual life (Year) | 3 years 9 months 21 days |
Range Five | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 29.880 |
Options outstanding (in shares) | shares | 53,088 |
Weighted average remaining contractual life (Year) | 4 years 7 months 24 days |
Range Six | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average exercise price (in dollars per share) | $ 39.860 |
Options outstanding (in shares) | shares | 13,794 |
Weighted average remaining contractual life (Year) | 3 years 8 months 23 days |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding Options Granted to Consultants for Sales and Pre-marketing Services (Details) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 0 |
Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 18,945 |
February 2013 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 1,500 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 12.470 |
Exercisable through | February 2023 |
August 2013 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 4,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 21.140 |
Exercisable through | August 2023 |
March 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 2,700 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 39.860 |
Exercisable through | March 2024 |
May 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 3,700 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 22.010 |
Exercisable through | May 2024 |
November 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 4,038 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 21.660 |
Exercisable through | November 2024 |
May 2015 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 1,057 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 19.510 |
Exercisable through | May 2025 |
February 2016 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 1,950 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 16.870 |
Exercisable through | February 2026 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2020$ / sharesshares | |
Number of shares underlying outstanding restricted stock units | |
Beginning Balance, restricted stock units (in shares) | shares | 2,559,083 |
Granted, restricted stock units (in shares) | shares | 1,296,911 |
Vested, restricted stock units (in shares) | shares | (833,037) |
Forfeited, restricted stock units (in shares) | shares | (131,362) |
Ending Balance, restricted stock units (in shares) | shares | 2,891,595 |
Weighted- average grant date fair value | |
Beginning Balance, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares | $ 49.58 |
Granted, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares | 84.52 |
Vested, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares | 43.77 |
Forfeited, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares | 59.87 |
Ending Balance, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares | $ 66.46 |
Stockholders' Equity - Non-cash
Stockholders' Equity - Non-cash Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 17,623 | $ 14,796 | $ 30,506 | $ 23,757 |
Cost of revenues | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 1,354 | 772 | 2,139 | 1,330 |
Research and development | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 5,686 | 3,520 | 9,767 | 6,198 |
Sales and marketing | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | 6,860 | 3,640 | 11,589 | 7,083 |
General and administrative | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock-based compensation | $ 3,723 | $ 6,864 | $ 7,011 | $ 9,146 |
Geographic Information and Ma_3
Geographic Information and Major Customer and Product Data (Details Textual) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segment | 1 | |||
Revenue | $ 66,565 | $ 59,621 | $ 120,741 | $ 115,981 |
France | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 8,158 | $ 6,522 | $ 13,678 | $ 12,763 |
Geographic Information and Ma_4
Geographic Information and Major Customer and Product Data - Revenues Within Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | ||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 66,565 | $ 59,621 | $ 120,741 | $ 115,981 | |
North America | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 45,815 | 39,984 | 83,689 | 77,833 | |
EMEA | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | 18,721 | [1] | 17,553 | 33,332 | 33,952 |
Rest of World | |||||
Segment Reporting Information [Line Items] | |||||
Revenue | $ 2,029 | $ 2,084 | $ 3,720 | $ 4,196 | |
[1] | Sales to customers in France accounted for $8,158 and $6,522 of the Company’s revenues for the three months ended June 30, 2020 and 2019, respectively. Sales to customers in France accounted for $13,678 and $12,763 of the Company’s revenues for the six months ended June 30, 2020 and 2019, respectively. |
Geographic Information and Ma_5
Geographic Information and Major Customer and Product Data - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 87,860 | $ 91,395 |
Israel | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 45,124 | 45,382 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 39,966 | 42,590 |
Other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 2,770 | $ 3,423 |