Varonis Systems (VRNS) 10-Q 2 Nov 21 2021 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2021	Oct. 29, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
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	292-8767
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)		107,323,729
Entity Central Index Key	0001361113
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 803,144	$ 234,092
Marketable securities	8,010	34,117
Short-term deposits	2,276	30,053
Trade receivables (net of allowances of $2,226 and $1,250 at September 30, 2021 and December 31, 2020, respectively)	71,382	94,229
Prepaid expenses and other current assets	26,737	27,357
Total current assets	911,549	419,848
Long-term assets:
Operating lease right-of-use asset	65,223	47,924
Property and equipment, net	34,163	37,163
Intangible assets, net	4,695	5,846
Goodwill	23,135	23,135
Other assets	19,717	21,566
Total long-term assets	146,933	135,634
Total assets	1,058,482	555,482
Current liabilities:
Trade payables	3,446	850
Accrued expenses and other short-term liabilities	91,917	83,198
Deferred revenues	86,253	98,588
Total current liabilities	181,616	182,636
Long-term liabilities:
Convertible senior notes, net	223,584	218,460
Operating lease liability	70,318	54,540
Deferred revenues	1,872	2,778
Other liabilities	4,122	2,997
Total long-term liabilities	299,896	278,775
Stockholders’ equity:
Common stock of $0.001 par value - Authorized: 200,000,000 shares at September 30, 2021 and December 31, 2020; Issued and outstanding: 107,321,063 shares at September 30, 2021 and 95,456,862 shares at December 31, 2020	107	95
Accumulated other comprehensive income	2,528	9,371
Additional paid-in capital	976,995	395,347
Accumulated deficit	(402,660)	(310,742)
Total stockholders’ equity	576,970	94,071
Total liabilities and stockholders’ equity	$ 1,058,482	$ 555,482

Consolidated Balance Sheets (_2

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Allowance for doubtful accounts	$ 2,226	$ 1,250
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)	107,321,063	95,456,862
Common stock, outstanding (in shares)	107,321,063	95,456,862

Unaudited Consolidated Statemen

Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Revenue	$ 100,353	$ 76,751	$ 263,556	$ 197,492
Cost of revenues	14,338	11,284	42,021	31,799
Gross profit	86,015	65,467	221,535	165,693
Operating expenses:
Research and development	34,344	24,670	97,739	71,425
Sales and marketing	56,229	45,435	162,641	130,998
General and administrative	13,997	11,814	42,016	34,486
Total operating expenses	104,570	81,919	302,396	236,909
Operating loss	(18,555)	(16,452)	(80,861)	(71,216)
Financial expenses, net	(3,234)	(2,553)	(8,058)	(2,945)
Loss before income taxes	(21,789)	(19,005)	(88,919)	(74,161)
Income taxes	(1,525)	(220)	(2,999)	(817)
Net loss	$ (23,314)	$ (19,225)	$ (91,918)	$ (74,978)
Net loss per share of common stock, basic (in dollars per share)	$ (0.22)	$ (0.20)	$ (0.88)	$ (0.80)
Net loss per share of common stock, diluted (in dollars per share)	$ (0.22)	$ (0.20)	$ (0.88)	$ (0.80)
Weighted average number of shares used in computing net loss per share of common stock, basic (in shares)	107,028,201	94,842,726	104,595,650	94,008,375
Weighted average number of shares used in computing net loss per share of common stock, diluted (in shares)	107,028,201	94,842,726	104,595,650	94,008,375
Subscriptions
Revenues:
Revenue	$ 70,026	$ 44,084	$ 172,917	$ 98,535
Maintenance and services
Revenues:
Revenue	30,003	32,294	89,689	97,956
Perpetual licenses
Revenues:
Revenue	$ 324	$ 373	$ 950	$ 1,001

Unaudited Consolidated Statem_2

Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net loss	$ (23,314)	$ (19,225)	$ (91,918)	$ (74,978)
Other comprehensive income (loss):
Unrealized loss on marketable securities, net of tax	(3)	(103)	(6)	(57)
Income on marketable securities reclassified into earnings, net of tax	1	32	3	59
Total	(2)	(71)	(3)	2
Unrealized income (loss) on derivative instruments, net of tax	2,100	(1,944)	608	(807)
Loss (income) on derivative instruments reclassified into earnings, net of tax	(2,663)	2,144	(7,448)	4,919
Total	(563)	200	(6,840)	4,112
Total other comprehensive income (loss)	(565)	129	(6,843)	4,114
Comprehensive loss	$ (23,879)	$ (19,096)	$ (98,761)	$ (70,864)

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 (loss)	Accumulated deficit
Beginning balance (in shares) at Dec. 31, 2019		91,749,933
Beginning balance at Dec. 31, 2019	$ 93,532	$ 92	$ 310,621	$ (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)		2,648,877
Common stock issued under employee stock plans, net	4,316	$ 2	4,314
Realized and unrealized income (loss) on derivative instruments	545			545
Unrealized income (loss) on available for sale securities	195			195
Net loss	(31,430)				(31,430)
Ending balance (in shares) at Mar. 31, 2020		94,398,810
Ending balance at Mar. 31, 2020	80,041	$ 94	327,818	291	(248,162)
Beginning balance (in shares) at Dec. 31, 2019		91,749,933
Beginning balance at Dec. 31, 2019	93,532	$ 92	310,621	(449)	(216,732)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Realized and unrealized income (loss) on derivative instruments	4,112
Unrealized income (loss) on available for sale securities	2
Net loss	(74,978)
Ending balance (in shares) at Sep. 30, 2020		95,175,942
Ending balance at Sep. 30, 2020	82,920	$ 95	370,870	3,665	(291,710)
Beginning balance (in shares) at Mar. 31, 2020		94,398,810
Beginning balance at Mar. 31, 2020	80,041	$ 94	327,818	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)		231,747
Common stock issued under employee stock plans, net	498	$ 1	497
Realized and unrealized income (loss) on derivative instruments	3,367			3,367
Unrealized income (loss) 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)
Ending balance (in shares) at Jun. 30, 2020		94,630,557
Ending balance at Jun. 30, 2020	78,530	$ 95	347,384	3,536	(272,485)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	18,678		18,678
Common stock issued under employee stock plans, net (in shares)		545,385
Common stock issued under employee stock plans, net	4,808	$ 0	4,808
Realized and unrealized income (loss) on derivative instruments	200			200
Unrealized income (loss) on available for sale securities	(71)			(71)
Net loss	(19,225)				(19,225)
Ending balance (in shares) at Sep. 30, 2020		95,175,942
Ending balance at Sep. 30, 2020	82,920	$ 95	370,870	3,665	(291,710)
Beginning balance (in shares) at Dec. 31, 2020		95,456,862
Beginning balance at Dec. 31, 2020	94,071	$ 95	395,347	9,371	(310,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Issuance of Common stock in connection with follow-on offering, net of issuance costs of $17,466 (in shares)		7,961,538
Issuance of Common stock in connection with follow-on offering, net of issuance costs of $17,466	500,034	$ 8	500,026
Stock-based compensation expense	21,379		21,379
Common stock issued under employee stock plans, net (in shares)		2,728,995
Common stock issued under employee stock plans, net	3,942	$ 3	3,939
Realized and unrealized income (loss) on derivative instruments	(5,185)			(5,185)
Unrealized income (loss) on available for sale securities	5			5
Net loss	(35,656)				(35,656)
Ending balance (in shares) at Mar. 31, 2021		106,147,395
Ending balance at Mar. 31, 2021	578,590	$ 106	920,691	4,191	(346,398)
Beginning balance (in shares) at Dec. 31, 2020		95,456,862
Beginning balance at Dec. 31, 2020	94,071	$ 95	395,347	9,371	(310,742)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Realized and unrealized income (loss) on derivative instruments	(6,840)
Unrealized income (loss) on available for sale securities	(3)
Net loss	(91,918)
Ending balance (in shares) at Sep. 30, 2021		107,321,063
Ending balance at Sep. 30, 2021	576,970	$ 107	976,995	2,528	(402,660)
Beginning balance (in shares) at Mar. 31, 2021		106,147,395
Beginning balance at Mar. 31, 2021	578,590	$ 106	920,691	4,191	(346,398)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	25,868		25,868
Common stock issued under employee stock plans, net (in shares)		766,636
Common stock issued under employee stock plans, net	(26)	$ 1	(27)
Realized and unrealized income (loss) on derivative instruments	(1,092)			(1,092)
Unrealized income (loss) on available for sale securities	(6)			(6)
Net loss	(32,948)				(32,948)
Ending balance (in shares) at Jun. 30, 2021		106,914,031
Ending balance at Jun. 30, 2021	570,386	$ 107	946,532	3,093	(379,346)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	24,422		24,422
Common stock issued under employee stock plans, net (in shares)		407,032
Common stock issued under employee stock plans, net	6,041	$ 0	6,041
Realized and unrealized income (loss) on derivative instruments	(563)			(563)
Unrealized income (loss) on available for sale securities	(2)			(2)
Net loss	(23,314)				(23,314)
Ending balance (in shares) at Sep. 30, 2021		107,321,063
Ending balance at Sep. 30, 2021	$ 576,970	$ 107	$ 976,995	$ 2,528	$ (402,660)

Unaudited Consolidated Statem_4

Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net loss	$ (91,918)	$ (74,978)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	8,271	7,319
Stock-based compensation	71,669	49,184
Amortization of deferred commissions	11,511	9,552
Noncash operating lease costs	6,201	7,226
Amortization of debt discount and issuance costs	5,124	2,427
Changes in assets and liabilities:
Trade receivables	22,847	14,939
Prepaid expenses and other current assets	568	(1,862)
Deferred commissions	(13,652)	(13,172)
Other long-term assets	819	(250)
Trade payables	2,596	(379)
Accrued expenses and other short-term liabilities	(5,057)	(1,267)
Deferred revenues	(13,241)	(16,943)
Other long-term liabilities	1,102	4,708
Net cash provided by (used in) operating activities	6,840	(13,496)
Cash flows from investing activities:
Proceeds from sales and maturities of marketable securities	26,106	41,482
Investment in marketable securities	0	(34,063)
Proceeds from short-term and long-term deposits	80,236	35,025
Investment in short-term and long-term deposits	(50,000)	(85,000)
Purchases of property and equipment	(4,120)	(7,001)
Net cash provided by (used in) investing activities	52,222	(49,557)
Cash flows from financing activities:
Proceeds from employee stock plans, net	9,956	9,622
Proceeds from follow-on offering, net	500,034	0
Proceeds from issuance of convertible senior notes, net of issuance costs	0	245,308
Purchases of capped calls	0	(29,348)
Net cash provided by financing activities	509,990	225,582
Increase in cash and cash equivalents	569,052	162,529
Cash and cash equivalents at beginning of period	234,092	68,929
Cash and cash equivalents at end of period	803,144	231,458
Supplemental disclosure of cash flow information:
Cash paid for income taxes	3,646	1,308
Net lease liabilities arising from obtaining right-of-use assets	$ 22,098	$ 0

Unaudited Consolidated Statem_5

Unaudited Consolidated Statements of Changes in Stockholders' Equity - (Parenthetical) $ in Thousands	3 Months Ended
	Mar. 31, 2021USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 17,466

General

General	9 Months Ended
	Sep. 30, 2021
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” or "Varonis") was incorporated under the laws of the State of Delaware on November 3, 2004, commenced operations on January 1, 2005. Varonis Systems Singapore PTE.LTD was incorporated under the laws of Singapore on September 14, 2021 and the Company currently has twelve wholly-owned subsidiaries. The Company’s software products and services allow enterprises to manage, analyze, alert 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 Varonis Data Security Platform detects cyberthreats from both internal and external actors by analyzing data, account activity and user behavior; prevents and limits disaster by locking down sensitive and stale data; and efficiently sustains a secure state with automation. Varonis products address additional important use cases including data protection, data governance, zero trust, cybercrime, compliance, data privacy, classification and threat detection and response. 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. On February 8, 2021, the Company announced a three-for-one split of its common stock to stockholders of record as of the close of business on March 12, 2021. Trading of the Company’s common stock, par value $0.001 per share (the “common stock”), began on a split-adjusted basis on March 15, 2021. All common stock and per share data have been retroactively adjusted for the impact of the split. 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 2020 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2020 filed with the SEC on February 9, 2021 (the “2020 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, 2020 included in the 2020 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. Maintenance and services primarily consist of fees for maintenance and 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 value-added resellers, 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 new 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 receivables are generally recorded at the invoice amount mostly for a one year period, net of an allowance for credit losses. 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 $86,329 for the nine months ended September 30, 2021. The Company does not grant a right of return to its customers, except for one of its resellers. In 2020 and for the nine months ended September 30, 2021, there were no returns from this reseller. For information regarding disaggregated revenues, refer to Note 7. 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 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 included in sales and marketing expenses in the accompanying consolidated statements of operations. e. Accounting for Stock-Based Compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation.” ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model. The Company recognizes compensation expenses for the value of its equity awards granted based on the straight-line method over the requisite service period of each of the awards. f. 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 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 or speculative purposes. Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets as of September 30, 2021 (unaudited) Assets as of December 31, 2020 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets $ 108,310 $ 2,179 $ 90,452 $ 3,315 Foreign exchange forward contract derivatives in cash flow hedging relationships included in long-term other assets $ 32,453 $ 348 $ — $ — Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets $ 19,247 $ 127 $ 33,977 $ 17 The unaudited consolidated statements of operations reflect a gain of $439 and $1,396 for the three and nine months ended September 30, 2021, respectively, related to the effective portion of the cash flow hedges and a gain of $128 and a loss of $176 for the three and nine months ended September 30, 2020, respectively. No material ineffective hedges were recognized for the three and nine months ended September 30, 2021 and 2020 in operating expenses in the consolidated statement of operations. For the three and nine months ended September 30, 2021, the unaudited consolidated statements of operations reflect a gain of $371 and $905, respectively, in financial income (expenses), net, related to the Fair Value Hedging Program. For the three and nine months ended September 30, 2020, the unaudited consolidated statements of operations reflect a loss of $876 and $244, respectively, in financial income (expenses), net, related to the Fair Value Hedging Program. g. Income Taxes: The Company operates in the U.S. and in foreign jurisdictions and is subject to taxes in each country or jurisdiction in which it conducts business. Earnings from its non-U.S. activities are subject to local country income tax and may be subject to U.S. income tax. To date, on a consolidated basis, the Company has incurred accumulated net losses and has not recorded any U.S. federal tax provisions. Because of its history of U.S. net operating losses, the Company has established a full valuation allowance against potential future benefits for deferred tax assets, including loss carryforwards, in that jurisdiction; however, it has a net deferred tax asset for foreign jurisdictions. In some foreign tax jurisdictions, the Company bases its interim tax accruals on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. In each quarter, the Company updates its calculation and makes a year-to-date adjustment to its tax provision as necessary. The Company's fiscal 2021 annual effective rate differs from the U.S. statutory rate primarily due to the valuation allowance recorded on its U.S. losses. For the three months ended September 30, 2021 and 2020, the Company recorded income tax expense of $1,525 and $220, respectively, and $2,999 and $817 for the nine months ended September 30, 2021 and 2020, respectively, comprised primarily of foreign income taxes. Because of its history of U.S. tax losses, all years remain open to tax audit. The Company's income tax provision could be significantly impacted by estimates surrounding its uncertain tax positions and changes to its valuation allowance in future periods. The Company reevaluates the judgments surrounding its estimates and make adjustments as appropriate each reporting period. In addition, the Company is subject to the regular examinations of its income tax returns by different tax authorities. For example, it is currently subject to tax audits in Israel. The Company regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. h. 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” and ASC No. 326, “Financial Instruments—Credit Losses”. 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 months but less than one year 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 September 30, 2021 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 406,887 $ — $ — $ 406,887 Total $ 406,887 $ — $ — $ 406,887 Marketable securities US Treasury securities $ 8,010 *) $ — $ 8,010 Total $ 8,010 *) $ — $ 8,010 Short-term deposits Term bank deposits $ 2,276 $ — $ — $ 2,276 Total $ 2,276 $ — $ — $ 2,276 *) Represents an amount lower than $1 As of December 31, 2020 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 10,712 $ — $ — $ 10,712 Total $ 10,712 $ — $ — $ 10,712 Marketable securities US Treasury securities $ 34,113 $ 4 *) $ 34,117 Total $ 34,113 $ 4 *) $ 34,117 Short-term deposits Term bank deposits $ 30,053 $ — $ — $ 30,053 Total $ 30,053 $ — $ — $ 30,053 *) Represents an amount lower than $1 All the US Treasury securities in marketable securities have a stated effective maturity of less than 12 months as of September 30, 2021 and December 31, 2020. 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 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. As of September 30, 2021, 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. i. Business Combinations: The Company accounts for its business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, the Company makes estimates and assumptions, especially with respect to intangible assets. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred. j. Goodwill and Other Long-Lived Assets, including Acquired Intangible Assets and Right-of-Use-Asset: Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. No indications of impairment of goodwill were noted during the periods presented. Acquired intangible assets consist of identifiable intangible assets, including developed technology and trademarks, resulting from business combinations. Acquired finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology and trademarks are recorded within cost of revenues and sales and marketing, respectively, in the consolidated statements of operations. The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360 “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the nine months ended September 30, 2021, no impairment losses have been recorded. k. Revolving Credit Facility: On August 21, 2020, the Company entered into a credit and security agreement with KeyBank National Association (the “Credit and Security Agreement”), for a three-year secured revolving credit facility of $70,000, with a letter of credit sublimit of $15,000 and an accordion feature under which the Company can increase the credit facility to up to $90,000 (the “Credit Facility”). Borrowings and repayments may occur through the maturity date, which is the earlier of August 21, 2023 or 90 days prior to the scheduled maturity of any convertible debt securities, at which time any amounts outstanding are to be paid in full. The fees incurred in connection with entering into the Credit and Security Agreement were recorded in prepaid expenses and other current assets on the consolidated balance sheet and are amortized on a straight-line basis over the contractual term of the arrangement. Ongoing fees and interest paid on the used and unused portions of the Credit Facility are expensed as incurred and included within financial income (expenses), net on the consolidated statement of operations. The Credit Facility is secured and the Credit and Security Agreement contains customary covenants and customary events of default provisions. As of September 30, 2021, the Company had no balance outstanding on the Credit Facility and was in compliance with all financial covenants and non-financial covenants. l. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities, including stock options, restricted stock units and the impact of the conversion spread of the 1.25% Convertible Senior Notes issued by the Company on May 11, 2020 and due August 2025 in an aggregate principal amount of $253,000 (the "2025 Notes"), to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were 7,843,510 and 9,632,790 potentially dilutive shares from the conversion of outstanding stock options and restricted stock units that were not included in the calculation of diluted net loss per share for the period ending September 30, 2021 and 2020, respectively. Additionally, 8,239,254 shares underlying the conversion option of the 2025 Notes are not considered in the calculation of diluted net loss 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 $30.71 per share. m. COVID-19: In March 2020, the World Health Organization (”WHO”) declared the novel coronavirus COVID-19 ("COVID-19") a global pandemic. The pandemic adversely affected workforces, economies, and financial markets globally in 2020 and, until contained, is still expected to disrupt general business operations. The COVID-19 pandemic and the ongoing measures being taken by many governments around the world in response could in the future meaningfully impact our business, results of operations and financial condition. The Company is currently unable to predict the duration of that impact but continues to monitor its accounting estimates of the carrying value of certain assets and liabilities relating to its leases and will continue to do so as additional information is obtained or new events occur. Actual results could differ from our estimates and judgments, and any such differences may be material to our financial statements. n. Recently Issued Accounting Pronouncements Not Yet Adopted:

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021. 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 September 30, 2021 and December 31, 2020 by level within the fair value hierarchy (in thousands): As of September 30, 2021 (unaudited) As of December 31, 2020 Level I Level Level III Fair Level I Level Level III Fair Financial assets: Cash equivalents: Money market funds 406,887 — — 406,887 10,712 — — 10,712 Marketable securities: US Treasury securities 8,010 — — 8,010 34,117 — — 34,117 Prepaid expenses and other current assets: Forward foreign exchange contracts — 2,306 — 2,306 — 3,332 — 3,332 Long-term other assets: Forward foreign exchange contracts — 348 — 348 — — — — Total financial assets $ 414,897 $ 2,654 $ — $ 417,551 $ 44,829 $ 3,332 $ — $ 48,161 See Note 5 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's 2025 Notes as of September 30, 2021.

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	LEASES The Company has various operating leases for office space, vehicles and office equipment that expire through 2032. The 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 (in thousands): September 30, 2021 (unaudited) Operating right-of-use assets $ 65,223 Operating lease liabilities, current $ 8,323 Operating lease liabilities, long-term 70,318 Total operating lease liabilities $ 78,641 Operating lease liabilities, current are included within accrued expenses and other short-term liabilities 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. 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 liens granted to a financial institution mainly to secure various operating lease agreements in connection with its office space. Minimum lease payments for our right-of-use assets over the remaining lease periods as of September 30, 2021, are as follows (in thousands): September 30, 2021 (unaudited) 2021 $ 3,139 2022 10,641 2023 10,598 2024 9,725 2025 9,763 Thereafter 44,271 Total undiscounted lease payments $ 88,137 Less: Imputed interest (9,496) Present value of lease liabilities $ 78,641 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of September 30, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 8.44 Weighted average discount rate 2.86 % Total operating lease cost for the three and nine months ended September 30, 2021 was $1,738 and $4,905, respectively. Total operating lease cost for the three and nine months ended September 30, 2020 was $4,626 and $9,662, respectively.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	GOODWILL AND INTANGIBLE ASSETS On October 29, 2020, the Company completed the acquisition of the share capital of Polyrize Security Ltd. ("Polyrize"), a provider of software that maps and analyzes relationships between users and data across a number of cloud applications and services. Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired less liabilities assumed arising from business combinations. The Company believes the goodwill represents the synergies expected from expanded market opportunities when integrating with its offerings. There were no additions, impairments or any other changes to the carrying amount of goodwill during the three and nine months ended September 30, 2021 or during prior periods. Intangible Assets Total cost and amortization of intangible assets is comprised of the following (in thousands): Estimated Useful Life September 30, 2021 Intangible assets, net (in years) (unaudited) Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 1,415 Total intangible assets, net $ 4,695 Intangible assets are expensed on a straight-line basis over the useful life of the asset. The Company recorded amortization expense of $384 and $1,151 for the three and nine months ended September 30, 2021. The following table summarizes estimated future amortization expense of our intangible assets as of September 30, 2021 (in thousands): Years ending December 31, Amount 2021 $ 382 2022 1,525 2023 1,525 2024 1,263 Total future amortization expense $ 4,695

Convertible Senior Notes and Ca

Convertible Senior Notes and Capped Call Transactions	9 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Convertible Senior Notes and Capped Call Transactions	CONVERTIBLE SENIOR NOTES AND CAPPED CALL TRANSACTIONS On May 11, 2020, the Company issued 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 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 32.5668 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 $30.71 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, 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. During the three months ended September 30, 2021, the conversion feature of the 2025 Notes was triggered as the last reported price of our common stock was more than or equal to 130% of the conversion price for at least 20 trading days in the period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter, and therefore the 2025 Notes are currently convertible, in whole or in part, at the option of the holders from October 1, 2021 through December 31, 2021. Whether the 2025 Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition. The Company has not received any conversion notices through the issuance date of our consolidated financial statements. Since the Company may elect to repay the 2025 Notes in cash, shares of our common stock, or a combination of both, it has continued to classify the 2025 Notes as long-term debt on its consolidated balance sheet as of September 30, 2021. 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. 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 the 2025 Notes in accordance with ASC 470-20 "Debt with Conversion and Other Options" and separated the 2025 Notes into liability and equity components. The carrying amounts of the liability components of the 2025 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 was as follows (in thousands): September 30, 2021 (unaudited) Liability component Principal $ 253,000 Unamortized discount (24,196) Unamortized issuance costs (5,220) Net carrying amount $ 223,584 Equity component, net of discount and issuance costs $ 30,794 The interest expense recognized related to the 2025 Notes for the three and nine months ended September 30, 2021 and 2020 was as follows (in thousands) : Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Contractual interest expense $ 792 $ 791 $ 2,372 $ 1,221 Amortization of debt discount 1,420 1,354 4,214 1,996 Amortization of debt issuance costs 306 292 909 430 Total $ 2,518 $ 2,437 $ 7,495 $ 3,647 As of September 30, 2021 , the total estimated fair value of the 2025 Notes was approximately $523,624. 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 2025 Notes is primarily affected by the trading price of our common stock and market interest rates. The fair value of the 2025 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 2025 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 other financial institutions. The Capped Call Transactions are generally expected to reduce the potential dilution to the Company’s common stock upon any conversion of the 2025 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 $47.24 (the "Cap Price") 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. The Capped Call Transactions are separate transactions, in each case, entered into by the Company with the option counterparties, and are not part of the terms of the 2025 Notes and will not change the holders’ rights under the 2025 Notes. As the Capped Call Transactions are considered indexed to the Company's stock and are considered equity classified, they are recorded in stockholders’ equity on the consolidated balance sheet and are not accounted for as derivatives. The cost of the Capped Call Transactions was approximately $29,348 and was recorded as a reduction to additional paid-in capital. Based on our common stock price as of September 30, 2021 , the Cap Price under the Capped Call Transactions was exceeded, hence as of September 30, 2021 , and as long as our Common Stock price shall be higher than $47.24, the incremental amount by which the stock price exceeds the Cap Price is not protected under the Capped Call Transactions.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 30, 2021
Stockholders' Equity Note [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITYa. On December 30, 2005, the Company’s board of directors adopted the Varonis Systems, Inc. 2005 Stock Plan (the “2005 Plan”). As of December 31, 2013, the Company had reserved 14,139,957 shares of common stock available for issuance to employees, directors, officers and consultants of the Company and its subsidiaries. The awards generally vest over four years. No awards were granted under the 2005 Plan subsequent to December 31, 2013, and no further awards will be granted under the 2005 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 5,713,899 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 20,388,450 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. On October 22, 2020, and as part of the acquisition, the Company’s board of directors approved the assumption of a certain portion of Polyrize Options pursuant to the terms and conditions of the Polyrize 2019 Share Incentive (“Polyrize Plan”) as part of the acquisition. A summary of employees’ stock options activities during the nine months ended September 30, 2021 is as follows: Nine Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2021 1,022,763 $ 6.862 $ 47,417 3.452 Granted — $ — Exercised (187,225) $ 6.417 Forfeited and expired (3,000) $ 2.077 Options outstanding as of September 30, 2021 832,538 $ 6.979 $ 44,849 2.929 Options exercisable as of September 30, 2021 814,082 $ 7.009 $ 43,831 2.806 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 nine months ended September 30, 2021 was $11,519. As of September 30, 2021, there was $575 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2005 Plan, 2013 Plan and Polyrize Plan. This cost is expected to be recognized over a weighted-average period of approximately 2.025 years. b. The options outstanding as of September 30, 2021 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of September 30, 2021 Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding Options exercisable as of September 30, 2021 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $2.933 22,068 0.411 $ 2.933 22,068 0.411 $ 2.933 $ 4.157 — 5.682 224,661 3.211 $ 4.883 206,205 2.750 $ 4.796 $ 6.503 — 8.077 438,407 2.813 $ 7.113 438,407 2.813 $ 7.113 $9.960 120,180 3.395 $ 9.960 120,180 3.395 $ 9.960 $13.287 27,222 2.474 $ 13.287 27,222 2.474 $ 13.287 832,538 2.929 $ 6.979 814,082 2.806 $ 7.009 c. Options issued to consultants: The Company’s outstanding options granted to consultants for services as of September 30, 2021 (unaudited) were as follows: Number of options outstanding and exercisable as of September 30, 2021 Exercise price Exercisable August 2013 6,000 $ 7.047 August 2023 March 2014 4,950 $ 13.287 March 2024 May 2014 3,000 $ 7.337 May 2024 November 2014 9,300 $ 7.220 November 2024 February 2016 3,000 $ 5.623 February 2026 26,250 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 nine months ended September 30, 2021 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2021 8,388,963 $ 23.00 Granted 2,543,727 $ 65.57 Vested (3,498,961) $ 19.90 Forfeited (449,007) $ 34.51 Unvested balance – September 30, 2021 6,984,722 $ 39.30 As of September 30, 2021, there was $223,197 of total unrecognized compensation cost related to employees and non-employees unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.326 years. e. 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 1,500,000 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) 1,200,000 shares of common stock. Since January 1, 2016, the share reserve under the ESPP has been automatically increased by an aggregate of 2,539,854 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. f. 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 (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Cost of revenues $ 1,839 $ 1,476 $ 5,284 $ 3,615 Research and development 8,347 6,000 24,425 15,767 Sales and marketing 9,001 7,184 26,235 18,773 General and administrative 5,235 4,018 15,725 11,029 Total $ 24,422 $ 18,678 $ 71,669 $ 49,184 g. Follow-on offering:

Geographic Information and Majo

Geographic Information and Major Customer Data	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Geographic Information and Major Customer Data	GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER 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 (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Revenues based on customer’s location: North America $ 75,609 $ 57,140 $ 190,013 $ 140,829 EMEA (*) 22,801 17,827 67,506 51,159 Rest of World 1,943 1,784 6,037 5,504 Total revenues $ 100,353 $ 76,751 $ 263,556 $ 197,492 (*) Sales to customers in France accounted for $26,523 and $19,777 of the Company’s revenues for the nine months ended September 30, 2021 and 2020, respectively. For the three and nine months ended September 30, 2021 and 2020, respectively, there were no sales to a single customer exceeding 10% of the Company’s revenues. The following is a summary of long-lived assets, including property and equipment, net and operating lease right-of-use assets, within geographic areas (in thousands): As of As of September 30, 2021 December 31, 2020 (unaudited) Long-lived assets by geographic region: United States $ 42,276 $ 30,938 Israel 39,570 42,471 Ireland 15,098 9,684 Other 2,442 1,994 $ 99,386 $ 85,087

General (Policies)

General (Policies)	9 Months Ended
	Sep. 30, 2021
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. On February 8, 2021, the Company announced a three-for-one split of its common stock to stockholders of record as of the close of business on March 12, 2021. Trading of the Company’s common stock, par value $0.001 per share (the “common stock”), began on a split-adjusted basis on March 15, 2021. All common stock and per share data have been retroactively adjusted for the impact of the split. 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 2020 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2020 filed with the SEC on February 9, 2021 (the “2020 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, 2020 included in the 2020 Form 10-K, unless otherwise stated.
Revenue Recognition and Contract Costs	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. Maintenance and services primarily consist of fees for maintenance and 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 value-added resellers, 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 new 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 receivables are generally recorded at the invoice amount mostly for a one year period, net of an allowance for credit losses. 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 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 included in sales and marketing expenses in the accompanying consolidated statements of operations.
Accounting for Stock-Based Compensation	e. Accounting for Stock-Based Compensation: The Company accounts for stock-based compensation in accordance with ASC No. 718, “Compensation-Stock Compensation.” ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model. The Company recognizes compensation expenses for the value of its equity awards granted based on the straight-line method over the requisite service period of each of the awards.
Derivative Instruments	f. 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 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 or speculative purposes.
Income Taxes	g. Income Taxes: The Company operates in the U.S. and in foreign jurisdictions and is subject to taxes in each country or jurisdiction in which it conducts business. Earnings from its non-U.S. activities are subject to local country income tax and may be subject to U.S. income tax. To date, on a consolidated basis, the Company has incurred accumulated net losses and has not recorded any U.S. federal tax provisions. Because of its history of U.S. net operating losses, the Company has established a full valuation allowance against potential future benefits for deferred tax assets, including loss carryforwards, in that jurisdiction; however, it has a net deferred tax asset for foreign jurisdictions. In some foreign tax jurisdictions, the Company bases its interim tax accruals on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. In each quarter, the Company updates its calculation and makes a year-to-date adjustment to its tax provision as necessary. The Company's fiscal 2021 annual effective rate differs from the U.S. statutory rate primarily due to the valuation allowance recorded on its U.S. losses. For the three months ended September 30, 2021 and 2020, the Company recorded income tax expense of $1,525 and $220, respectively, and $2,999 and $817 for the nine months ended September 30, 2021 and 2020, respectively, comprised primarily of foreign income taxes. Because of its history of U.S. tax losses, all years remain open to tax audit. The Company's income tax provision could be significantly impacted by estimates surrounding its uncertain tax positions and changes to its valuation allowance in future periods. The Company reevaluates the judgments surrounding its estimates and make adjustments as appropriate each reporting period. In addition, the Company is subject to the regular examinations of its income tax returns by different tax authorities. For example, it is currently subject to tax audits in Israel. The Company regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes.
Cash, Cash Equivalents, Marketable Securities and Short-term Investments	h. 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” and ASC No. 326, “Financial Instruments—Credit Losses”. 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.
Business Combinations	i. Business Combinations: The Company accounts for its business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed at their estimated fair values on the acquisition date. The excess of the fair value of purchase consideration over the values of these identifiable assets and liabilities is recorded as goodwill. When determining the fair value of assets acquired and liabilities assumed, the Company makes estimates and assumptions, especially with respect to intangible assets. The Company's estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill if new information is obtained related to facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of operations. Acquisition costs, such as legal and consulting fees, are expensed as incurred.
Goodwill and Other Long-Lived Assets, including Acquired Intangible Assets and Right-of-Use-Asset	j. Goodwill and Other Long-Lived Assets, including Acquired Intangible Assets and Right-of-Use-Asset: Goodwill represents the excess of the fair value of purchase consideration in a business combination over the fair value of net tangible and intangible assets acquired. Goodwill amounts are not amortized, but rather tested for impairment at least annually or more often if circumstances indicate that the carrying value may not be recoverable. No indications of impairment of goodwill were noted during the periods presented. Acquired intangible assets consist of identifiable intangible assets, including developed technology and trademarks, resulting from business combinations. Acquired finite-lived intangible assets are initially recorded at fair value and are amortized on a straight-line basis over their estimated useful lives. Amortization expense of developed technology and trademarks are recorded within cost of revenues and sales and marketing, respectively, in the consolidated statements of operations. The Company’s long-lived assets are reviewed for impairment in accordance with ASC No. 360 “Property, Plant and Equipment” whenever events or changes in circumstances indicate that the carrying amount of an asset (or asset group) may not be recoverable. Recoverability of assets (or asset group) to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the nine months ended September 30, 2021, no impairment losses have been recorded.
Basic and Diluted Net Loss Per Share	l. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing the net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities, including stock options, restricted stock units and the impact of the conversion spread of the 1.25% Convertible Senior Notes issued by the Company on May 11, 2020 and due August 2025 in an aggregate principal amount of $253,000 (the "2025 Notes"), to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were 7,843,510 and 9,632,790 potentially dilutive shares from the conversion of outstanding stock options and restricted stock units that were not included in the calculation of diluted net loss per share for the period ending September 30, 2021 and 2020, respectively. Additionally, 8,239,254 shares underlying the conversion option of the 2025 Notes are not considered in the calculation of diluted net loss 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 $30.71 per share.
Recently Issued Accounting Pronouncements Not Yet Adopted	n. Recently Issued Accounting Pronouncements Not Yet Adopted:

General (Tables)

General (Tables)	9 Months Ended
	Sep. 30, 2021
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 as of September 30, 2021 (unaudited) Assets as of December 31, 2020 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets $ 108,310 $ 2,179 $ 90,452 $ 3,315 Foreign exchange forward contract derivatives in cash flow hedging relationships included in long-term other assets $ 32,453 $ 348 $ — $ — Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets $ 19,247 $ 127 $ 33,977 $ 17
Cash, Cash Equivalents and Investments	Cash, cash equivalents, marketable securities and short-term deposits consist of the following (in thousands): As of September 30, 2021 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 406,887 $ — $ — $ 406,887 Total $ 406,887 $ — $ — $ 406,887 Marketable securities US Treasury securities $ 8,010 *) $ — $ 8,010 Total $ 8,010 *) $ — $ 8,010 Short-term deposits Term bank deposits $ 2,276 $ — $ — $ 2,276 Total $ 2,276 $ — $ — $ 2,276 *) Represents an amount lower than $1 As of December 31, 2020 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 10,712 $ — $ — $ 10,712 Total $ 10,712 $ — $ — $ 10,712 Marketable securities US Treasury securities $ 34,113 $ 4 *) $ 34,117 Total $ 34,113 $ 4 *) $ 34,117 Short-term deposits Term bank deposits $ 30,053 $ — $ — $ 30,053 Total $ 30,053 $ — $ — $ 30,053 *) Represents an amount lower than $1

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
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 September 30, 2021 and December 31, 2020 by level within the fair value hierarchy (in thousands): As of September 30, 2021 (unaudited) As of December 31, 2020 Level I Level Level III Fair Level I Level Level III Fair Financial assets: Cash equivalents: Money market funds 406,887 — — 406,887 10,712 — — 10,712 Marketable securities: US Treasury securities 8,010 — — 8,010 34,117 — — 34,117 Prepaid expenses and other current assets: Forward foreign exchange contracts — 2,306 — 2,306 — 3,332 — 3,332 Long-term other assets: Forward foreign exchange contracts — 348 — 348 — — — — Total financial assets $ 414,897 $ 2,654 $ — $ 417,551 $ 44,829 $ 3,332 $ — $ 48,161

Leases (Tables)

Leases (Tables)	9 Months Ended
	Sep. 30, 2021
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 (in thousands): September 30, 2021 (unaudited) Operating right-of-use assets $ 65,223 Operating lease liabilities, current $ 8,323 Operating lease liabilities, long-term 70,318 Total operating lease liabilities $ 78,641
Lessee, Operating Lease, Liability, Maturity	Minimum lease payments for our right-of-use assets over the remaining lease periods as of September 30, 2021, are as follows (in thousands): September 30, 2021 (unaudited) 2021 $ 3,139 2022 10,641 2023 10,598 2024 9,725 2025 9,763 Thereafter 44,271 Total undiscounted lease payments $ 88,137 Less: Imputed interest (9,496) Present value of lease liabilities $ 78,641
Summary of Weighted Average Remaining Lease Terms and Discount Rates	The weighted average remaining lease terms and discount rates for all operating leases were as follows as of September 30, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 8.44 Weighted average discount rate 2.86 %

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Total cost and amortization of intangible assets is comprised of the following (in thousands): Estimated Useful Life September 30, 2021 Intangible assets, net (in years) (unaudited) Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 1,415 Total intangible assets, net $ 4,695
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table summarizes estimated future amortization expense of our intangible assets as of September 30, 2021 (in thousands): Years ending December 31, Amount 2021 $ 382 2022 1,525 2023 1,525 2024 1,263 Total future amortization expense $ 4,695

Convertible Senior Notes and _2

Convertible Senior Notes and Capped Call Transactions (Tables)	9 Months Ended
	Sep. 30, 2021
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 was as follows (in thousands): September 30, 2021 (unaudited) Liability component Principal $ 253,000 Unamortized discount (24,196) Unamortized issuance costs (5,220) Net carrying amount $ 223,584 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 nine months ended September 30, 2021 and 2020 was as follows (in thousands) : Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Contractual interest expense $ 792 $ 791 $ 2,372 $ 1,221 Amortization of debt discount 1,420 1,354 4,214 1,996 Amortization of debt issuance costs 306 292 909 430 Total $ 2,518 $ 2,437 $ 7,495 $ 3,647

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2021
Stockholders' Equity Note [Abstract]
Share-based Compensation, Stock Options, Activity	A summary of employees’ stock options activities during the nine months ended September 30, 2021 is as follows: Nine Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2021 1,022,763 $ 6.862 $ 47,417 3.452 Granted — $ — Exercised (187,225) $ 6.417 Forfeited and expired (3,000) $ 2.077 Options outstanding as of September 30, 2021 832,538 $ 6.979 $ 44,849 2.929 Options exercisable as of September 30, 2021 814,082 $ 7.009 $ 43,831 2.806
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The options outstanding as of September 30, 2021 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of September 30, 2021 Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding Options exercisable as of September 30, 2021 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $2.933 22,068 0.411 $ 2.933 22,068 0.411 $ 2.933 $ 4.157 — 5.682 224,661 3.211 $ 4.883 206,205 2.750 $ 4.796 $ 6.503 — 8.077 438,407 2.813 $ 7.113 438,407 2.813 $ 7.113 $9.960 120,180 3.395 $ 9.960 120,180 3.395 $ 9.960 $13.287 27,222 2.474 $ 13.287 27,222 2.474 $ 13.287 832,538 2.929 $ 6.979 814,082 2.806 $ 7.009
Schedule of Stockholders' Equity Note, Warrants or Rights	The Company’s outstanding options granted to consultants for services as of September 30, 2021 (unaudited) were as follows: Number of options outstanding and exercisable as of September 30, 2021 Exercise price Exercisable August 2013 6,000 $ 7.047 August 2023 March 2014 4,950 $ 13.287 March 2024 May 2014 3,000 $ 7.337 May 2024 November 2014 9,300 $ 7.220 November 2024 February 2016 3,000 $ 5.623 February 2026 26,250
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 nine months ended September 30, 2021 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2021 8,388,963 $ 23.00 Granted 2,543,727 $ 65.57 Vested (3,498,961) $ 19.90 Forfeited (449,007) $ 34.51 Unvested balance – September 30, 2021 6,984,722 $ 39.30
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 (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Cost of revenues $ 1,839 $ 1,476 $ 5,284 $ 3,615 Research and development 8,347 6,000 24,425 15,767 Sales and marketing 9,001 7,184 26,235 18,773 General and administrative 5,235 4,018 15,725 11,029 Total $ 24,422 $ 18,678 $ 71,669 $ 49,184

Geographic Information and Ma_2

Geographic Information and Major Customer Data (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	The following is a summary of revenues within geographic areas (in thousands): Three Months Ended Nine Months Ended 2021 2020 2021 2020 (unaudited) (unaudited) Revenues based on customer’s location: North America $ 75,609 $ 57,140 $ 190,013 $ 140,829 EMEA (*) 22,801 17,827 67,506 51,159 Rest of World 1,943 1,784 6,037 5,504 Total revenues $ 100,353 $ 76,751 $ 263,556 $ 197,492 (*) Sales to customers in France accounted for $26,523 and $19,777 of the Company’s revenues for the nine months ended September 30, 2021 and 2020, respectively.
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 (in thousands): As of As of September 30, 2021 December 31, 2020 (unaudited) Long-lived assets by geographic region: United States $ 42,276 $ 30,938 Israel 39,570 42,471 Ireland 15,098 9,684 Other 2,442 1,994 $ 99,386 $ 85,087

General (Details Textual)

General (Details Textual)	Feb. 08, 2021	Aug. 21, 2020USD ($)	Sep. 30, 2021USD ($)subsidiary$ / shares	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)subsidiary$ / sharesshares	Sep. 30, 2020USD ($)shares	Dec. 31, 2020USD ($)$ / shares	Mar. 15, 2021$ / shares	May 11, 2020USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operations commenced date					Jan. 1, 2005
Subsidiary or equity method investee, number | subsidiary			12		12
Stock split, conversion ratio	3
Common stock, par value (in dollars per share) | $ / shares			$ 0.001		$ 0.001		$ 0.001	$ 0.001
Deferred revenue, revenue recognized					$ 86,329,000
Sales returns					$ 0		$ 0
Capitalized contract cost, amortization period (years)			4 years		4 years
Gain (loss) related to the effective portion of the cash flow hedges			$ 2,663,000	$ (2,144,000)	$ 7,448,000	$ (4,919,000)
Derivative instruments not designated as hedging instruments, gain (loss), net			371,000	(876,000)	905,000	(244,000)
Income tax expense (benefit)			1,525,000	220,000	2,999,000	$ 817,000
Additional paid-in capital			(976,995,000)		(976,995,000)		$ (395,347,000)
Pro Forma
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Additional paid-in capital			31,779,000		31,779,000
Liabilities			31,779,000		$ 31,779,000
Restricted Stock Units and Stock Options
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | shares					7,843,510	9,632,790
Foreign Exchange Contract
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Gain (loss) related to the effective portion of the cash flow hedges			$ 439,000	$ 128,000	$ 1,396,000	$ (176,000)
Maintenance
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Revenue, performance obligation, description of timing					one year
Revolving Credit Facility | Line of Credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Debt instrument, term		3 years
Line of credit facility, maximum borrowing capacity		$ 70,000,000
Line of credit facility, accordion feature, increase limit		90,000,000
Letter of Credit | Line of Credit
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Line of credit facility, maximum borrowing capacity		$ 15,000,000
2025 Senior Notes | Convertible Debt Securities
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | shares					8,239,254
2025 Senior Notes | Convertible Debt
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Interest rate, stated percentage									1.25%
Principal amount									$ 253,000
Initial conversion price (in dollars per share) | $ / shares			$ 30.71		$ 30.71

General - Derivative Instrument

General - Derivative Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash Flow Hedging | Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Notional Amount	$ 108,310	$ 90,452
Derivative assets, fair value	2,179	3,315
Cash Flow Hedging | Long-term other assets
Derivative [Line Items]
Notional Amount	32,453	0
Derivative assets, fair value	348	0
Fair Value Hedging | Prepaid Expenses and Other Current Assets
Derivative [Line Items]
Notional Amount	19,247	33,977
Derivative assets, fair value	$ 127	$ 17

General - Cash, Cash Equivalent

General - Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Cash and cash equivalents
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 406,887
Amortized Cost		$ 10,712
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	406,887	10,712
Cash and cash equivalents | Money market funds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	406,887
Amortized Cost		10,712
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	406,887	10,712
Marketable securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,010	34,113
Gross Unrealized Gains		4
Gross Unrealized Losses	0
Fair Value	8,010	34,117
Marketable securities | US Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	8,010	34,113
Gross Unrealized Gains		4
Gross Unrealized Losses	0
Fair Value	8,010	34,117
Short-term deposits
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,276
Amortized Cost		30,053
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,276	30,053
Short-term deposits | Term bank deposits
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	2,276
Amortized Cost		30,053
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 2,276	$ 30,053

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	$ 417,551	$ 48,161
Forward foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, current	2,306	3,332
Derivative asset, noncurrent	348	0
US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	8,010	34,117
Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	406,887	10,712
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	414,897	44,829
Level I | Forward foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, current	0	0
Derivative asset, noncurrent	0	0
Level I | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	8,010	34,117
Level I | Money market funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	406,887	10,712
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets	2,654	3,332
Level II | Forward foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, current	2,306	3,332
Derivative asset, noncurrent	348	0
Level II | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level II | Money market funds
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	0	0
Level III | Forward foreign exchange contracts
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset, current	0	0
Derivative asset, noncurrent	0	0
Level III | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level III | Money market funds
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	Sep. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use asset	$ 65,223	$ 47,924
Operating lease liabilities, current	8,323
Operating lease liabilities, long-term	70,318	$ 54,540
Total operating lease liabilities	$ 78,641

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Leases [Abstract]
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other short-term liabilities		Accrued expenses and other short-term liabilities
Operating lease cost	$ 1,738	$ 4,626	$ 4,905	$ 9,662

Leases - Minimum Lease Payments

Leases - Minimum Lease Payments for Right-of-Use Assets (Details) $ in Thousands	Sep. 30, 2021USD ($)
Leases [Abstract]
2021	$ 3,139
2022	10,641
2023	10,598
2024	9,725
2025	9,763
Thereafter	44,271
Total undiscounted lease payments	88,137
Less: Imputed interest	(9,496)
Present value of lease liabilities	$ 78,641

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details)	Sep. 30, 2021
Leases [Abstract]
Weighted average remaining lease term (years)	8 years 5 months 8 days
Weighted average discount rate	2.86%

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Cost and Amortization of Intangible Assets (Details) $ in Thousands	9 Months Ended
	Sep. 30, 2021USD ($)
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 6,110
Less: Accumulated amortization	1,415
Total intangible assets, net	$ 4,695
Developed technology & trademarks
Finite-Lived Intangible Assets [Line Items]
Estimated Useful Life (in years)	4 years
Total intangible assets	$ 6,110

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 384	$ 1,151

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Sep. 30, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2021	$ 382
2022	1,525
2023	1,525
2024	1,263
Total intangible assets, net	$ 4,695

Convertible Senior Notes and _3

Convertible Senior Notes and Capped Call Transactions - Narrative (Details)	May 11, 2020USD ($)	Sep. 30, 2021USD ($)tradingDay$ / shares	Sep. 30, 2021USD ($)tradingDay$ / shares	Sep. 30, 2020USD ($)
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes, net of issuance costs			$ 0	$ 245,308,000
Purchases of capped calls			$ 0	$ 29,348,000
Cap price (in dollars per share) | $ / shares		$ 47.24	$ 47.24
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]
Equity component, net of discount and issuance costs		$ 30,794,000	$ 30,794,000
Fair value of the notes		$ 523,624,000	$ 523,624,000
Convertible Debt
Debt Instrument [Line Items]
Purchases of capped calls	$ 29,348,000
Convertible Debt | 2025 Senior Notes
Debt Instrument [Line Items]
Principal amount excluding purchasers' option	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
Interest rate, stated percentage	1.25%
Debt instrument, convertible, conversion ratio			32.5668
Initial conversion price (in dollars per share) | $ / shares		$ 30.71	$ 30.71
Repurchase of notes percentage			100.00%
Equity component, net of discount and issuance costs		$ 31,779,000	$ 31,779,000
Interest rate, effective percentage		4.51%	4.51%
Debt issuance costs of liability component		$ 6,857,000	$ 6,857,000
Convertible Debt | 2025 Senior Notes | Additional paid-in capital
Debt Instrument [Line Items]
Debt issuance costs of equity component		$ 985,000	$ 985,000
Convertible Debt | 2025 Senior Notes | Debt Conversion, Option One
Debt Instrument [Line Items]
Threshold trading days (in trading days) | tradingDay		20	20
Threshold consecutive trading days | tradingDay		30	30
Threshold percentage of conversion price		130.00%	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	Sep. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Net carrying amount	$ 223,584	$ 218,460
2025 Senior Notes
Debt Instrument [Line Items]
Principal	253,000
Unamortized discount	(24,196)
Unamortized issuance costs	(5,220)
Net carrying amount	223,584
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		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Debt Disclosure [Abstract]
Contractual interest expense	$ 792	$ 791	$ 2,372	$ 1,221
Amortization of debt discount	1,420	1,354	4,214	1,996
Amortization of debt issuance costs	306	292	909	430
Total	$ 2,518	$ 2,437	$ 7,495	$ 3,647

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Thousands	Feb. 16, 2021	Jun. 30, 2015	Dec. 31, 2013	Nov. 14, 2013	Sep. 30, 2021	Sep. 30, 2021	Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)					0
Exercises in period, intrinsic value					$ 11,519
Compensation cost not yet recognized, options					$ 575	$ 575	$ 575
Public Stock Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, number of shares issued in transaction	7,961,538
Sale of stock, price per share (in dollars per share)	$ 65
Sale of stock, consideration received on transaction	$ 500,034
Payments of stock issuance costs	$ 17,466
Public Stock Offering - Additional Optional Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, number of shares issued in transaction	1,038,459
Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized, period for recognition					2 years 10 days
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Compensation cost not yet recognized, period for recognition					2 years 3 months 29 days
Compensation cost not yet recognized, non-option					$ 223,197	$ 223,197	$ 223,197
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)			14,139,957
Granted (in shares)							0
Shares available for grant (in shares)					0	0	0
The 2005 Stock Plan | Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)			4 years
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)				5,713,899
Vesting period (in years)				4 years
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)					20,388,450	20,388,450	20,388,450
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)		1,500,000
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)		1,200,000
Number of additional shares authorized (in shares)						2,539,854

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options Activities (Details) $ / shares in Units, $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Number
Options outstanding, Balance (in shares) | shares	1,022,763
Granted (in shares) | shares	0
Exercised (in shares) | shares	(187,225)
Forfeited and expired (in shares) | shares	(3,000)
Options outstanding, Balance (in shares) | shares	832,538	1,022,763
Weighted average exercise price
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 6.862
Granted, weighted average exercise price (in dollars per share) | $ / shares	0
Exercised, weighted average exercise price (in dollars per share) | $ / shares	6.417
Forfeited and expired, weighted average exercise price (in dollars per share) | $ / shares	2.077
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares	$ 6.979	$ 6.862
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable at the end of the year (in shares) | shares	814,082
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.009
Options outstanding, aggregate intrinsic value | $	$ 44,849	$ 47,417
Options exercisable at the end of the year, aggregate intrinsic value | $	$ 43,831
Options outstanding, weighted average remaining contractual life (Year)	2 years 11 months 4 days	3 years 5 months 12 days
Options exercisable at the end of the year, weighted average remaining contractual life (Year)	2 years 9 months 21 days

Stockholders' Equity - Options

Stockholders' Equity - Options Outstanding Separated Into Range of Exercise Price (Details) - $ / shares	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding (in shares)	832,538	1,022,763
Options outstanding, weighted average remaining contractual life (Year)	2 years 11 months 4 days	3 years 5 months 12 days
Weighted average exercise price of options outstanding (in dollars per share)	$ 6.979	$ 6.862
Options exercisable (in shares)	814,082
Options exercisable, weighted average remaining contractual life (years)	2 years 9 months 21 days
Weighted average exercise price of options exercisable (in dollars per share)	$ 7.009
Range One
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	$ 2.933
Options outstanding, exercise price range (in shares)	22,068
Options outstanding, weighted average remaining contractual life, exercise price range (Year)	4 months 28 days
Options exercisable, exercise price range (in shares)	22,068
Options exercisable, weighted average remaining contractual life, exercise price range (years)	4 months 28 days
Weighted average exercise price of options exercisable, exercise price range (in dollars per share)	$ 2.933
Range Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lower range of exercise price (in dollars per share)	4.157
Weighted average exercise price (in dollars per share)	4.883
Upper range of exercise price (in dollars per share)	$ 5.682
Options outstanding, exercise price range (in shares)	224,661
Options outstanding, weighted average remaining contractual life, exercise price range (Year)	3 years 2 months 15 days
Options exercisable, exercise price range (in shares)	206,205
Options exercisable, weighted average remaining contractual life, exercise price range (years)	2 years 9 months
Weighted average exercise price of options exercisable, exercise price range (in dollars per share)	$ 4.796
Range Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Lower range of exercise price (in dollars per share)	6.503
Weighted average exercise price (in dollars per share)	7.113
Upper range of exercise price (in dollars per share)	$ 8.077
Options outstanding, exercise price range (in shares)	438,407
Options outstanding, weighted average remaining contractual life, exercise price range (Year)	2 years 9 months 21 days
Options exercisable, exercise price range (in shares)	438,407
Options exercisable, weighted average remaining contractual life, exercise price range (years)	2 years 9 months 21 days
Weighted average exercise price of options exercisable, exercise price range (in dollars per share)	$ 7.113
Range Four
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	$ 9.960
Options outstanding, exercise price range (in shares)	120,180
Options outstanding, weighted average remaining contractual life, exercise price range (Year)	3 years 4 months 24 days
Options exercisable, exercise price range (in shares)	120,180
Options exercisable, weighted average remaining contractual life, exercise price range (years)	3 years 4 months 24 days
Weighted average exercise price of options exercisable, exercise price range (in dollars per share)	$ 9.960
Range Five
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Weighted average exercise price (in dollars per share)	$ 13.287
Options outstanding, exercise price range (in shares)	27,222
Options outstanding, weighted average remaining contractual life, exercise price range (Year)	2 years 5 months 19 days
Options exercisable, exercise price range (in shares)	27,222
Options exercisable, weighted average remaining contractual life, exercise price range (years)	2 years 5 months 19 days
Weighted average exercise price of options exercisable, exercise price range (in dollars per share)	$ 13.287

Stockholders' Equity - Outstand

Stockholders' Equity - Outstanding Options Granted to Consultants for Sales and Pre-marketing Services (Details)	9 Months Ended
	Sep. 30, 2021$ / 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	26,250
August 2013 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options for shares of common stock (in shares) | shares	6,000
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 7.047
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	4,950
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 13.287
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	3,000
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 7.337
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	9,300
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 7.220
Exercisable through	November 2024
February 2016 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options for shares of common stock (in shares) | shares	3,000
Granted, weighted average exercise price (in dollars per share) | $ / shares	$ 5.623
Exercisable through	February 2026

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units (RSUs)	9 Months Ended
	Sep. 30, 2021$ / sharesshares
Number of shares underlying outstanding restricted stock units
Beginning Balance, restricted stock units (in shares) | shares	8,388,963
Granted, restricted stock units (in shares) | shares	2,543,727
Vested, restricted stock units (in shares) | shares	(3,498,961)
Forfeited, restricted stock units (in shares) | shares	(449,007)
Ending Balance, restricted stock units (in shares) | shares	6,984,722
Weighted- average grant date fair value
Beginning Balance, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	$ 23
Granted, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	65.57
Vested, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	19.90
Forfeited, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	34.51
Ending Balance, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	$ 39.30

Stockholders' Equity - Non-cash

Stockholders' Equity - Non-cash Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 24,422	$ 18,678	$ 71,669	$ 49,184
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	1,839	1,476	5,284	3,615
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	8,347	6,000	24,425	15,767
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	9,001	7,184	26,235	18,773
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 5,235	$ 4,018	$ 15,725	$ 11,029

Geographic Information and Ma_3

Geographic Information and Major Customer Data (Details Textual) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021USD ($)	Sep. 30, 2020USD ($)	Sep. 30, 2021USD ($)segment	Sep. 30, 2020USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			1
Revenue	$ 100,353	$ 76,751	$ 263,556	$ 197,492
France
Segment Reporting Information [Line Items]
Revenue			$ 26,523	$ 19,777

Geographic Information and Ma_4

Geographic Information and Major Customer Data - Revenues Within Geographical Areas (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Revenue	$ 100,353	$ 76,751	$ 263,556	$ 197,492
North America
Segment Reporting Information [Line Items]
Revenue	75,609	57,140	190,013	140,829
EMEA
Segment Reporting Information [Line Items]
Revenue	22,801	17,827	67,506	51,159
Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 1,943	$ 1,784	$ 6,037	$ 5,504

Geographic Information and Ma_5

Geographic Information and Major Customer Data - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Long-lived assets	$ 99,386	$ 85,087
United States
Segment Reporting Information [Line Items]
Long-lived assets	42,276	30,938
Israel
Segment Reporting Information [Line Items]
Long-lived assets	39,570	42,471
Ireland
Segment Reporting Information [Line Items]
Long-lived assets	15,098	9,684
Other
Segment Reporting Information [Line Items]
Long-lived assets	$ 2,442	$ 1,994