Varonis Systems (VRNS) 10-K 8 Feb 22 2021 FY Annual report Financial data

Document And Entity Information

Document And Entity Information - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Feb. 04, 2022	Jun. 30, 2021
Cover [Abstract]
Document Type	10-K
Document Annual Report	true
Document Period End Date	Dec. 31, 2021
Current Fiscal Year End Date	--12-31
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 Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
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
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 6,080
Entity Common Stock, Shares Outstanding		107,514,424
Documents Incorporated by Reference	Portions of the Registrant’s Proxy Statement relating to the 2021 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K.
Entity Central Index Key	0001361113
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	FY
Amendment Flag	false

Audit Information

Audit Information	12 Months Ended
	Dec. 31, 2021
Audit Information [Abstract]
Auditor Name	KOST FORER GABBAY & KASIERER
Auditor Location	Tel-Aviv, Israel
Auditor Firm ID	1281

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 805,761	$ 234,092
Marketable securities	0	34,117
Short-term deposits	1,850	30,053
Trade receivables (net of allowance of $2,754 and $1,250 at December 31, 2021 and December 31, 2020, respectively)	117,179	94,229
Prepaid expenses and other current assets	34,417	27,357
Total current assets	959,207	419,848
Long-term assets:
Operating lease right-of-use asset	63,749	47,924
Property and equipment, net	38,298	37,163
Intangible assets, net	4,313	5,846
Goodwill	23,135	23,135
Other assets	19,835	21,566
Total long-term assets	149,330	135,634
Total assets	1,108,537	555,482
Current liabilities:
Trade payables	5,324	850
Accrued expenses and other short-term liabilities	102,226	83,198
Deferred revenues	104,221	98,588
Total current liabilities	211,771	182,636
Long-term liabilities:
Convertible senior notes, net	225,330	218,460
Operating lease liability	68,694	54,540
Deferred revenues	2,566	2,778
Other liabilities	3,583	2,997
Total long-term liabilities	300,173	278,775
Stockholders’ equity:
Common stock of $0.001 par value - Authorized: 200,000,000 shares at December 31, 2021 and December 31, 2020; Issued and outstanding: 107,509,096 shares at December 31, 2021 and 95,456,862 shares at December 31, 2020	108	95
Accumulated other comprehensive income	6,083	9,371
Additional paid-in capital	1,018,005	395,347
Accumulated deficit	(427,603)	(310,742)
Total stockholders’ equity	596,593	94,071
Total liabilities and stockholders’ equity	$ 1,108,537	$ 555,482

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) $ in Thousands	Dec. 31, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Statement of Financial Position [Abstract]
Allowance for doubtful accounts | $	$ 2,754	$ 1,250
Common stock, par value (in usd per share) | (per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000
Common stock, shares, issued (in shares)	107,509,096	95,456,862
Common stock, shares, outstanding (in shares)	107,509,096	95,456,862

Consolidated Statements of Oper

Consolidated Statements of Operations $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)shares	Dec. 31, 2021؋ / shares	Dec. 31, 2020USD ($)shares	Dec. 31, 2020؋ / shares	Dec. 31, 2019USD ($)shares	Dec. 31, 2019؋ / shares
Revenues:
Revenue	$ 390,134		$ 292,689		$ 254,190
Cost of revenues	59,399		44,261		35,144
Gross profit	330,735		248,428		219,046
Operating expenses:
Research and development	137,882		99,363		80,764
Sales and marketing	230,314		179,902		169,898
General and administrative	61,233		47,578		44,371
Total operating expenses	429,429		326,843		295,033
Operating loss	(98,694)		(78,415)		(75,987)
Financial expenses, net	(12,145)		(7,483)		(389)
Loss before income taxes	(110,839)		(85,898)		(76,376)
Income taxes	(6,022)		(8,112)		(2,388)
Net loss	$ (116,861)		$ (94,010)		$ (78,764)
Net loss per share of common stock, basic (in USD per share) | ؋ / shares		؋ (1.11)		؋ (1)		؋ (0.87)
Net loss per share of common stock, diluted (in USD per share) | ؋ / shares		؋ (1.11)		؋ (1)		؋ (0.87)
Weighted average number of shares used in computing net loss per share of common stock, basic (in shares) | shares	105,305,957		94,336,893		90,772,230
Weighted average number of shares used in computing net loss per share of common stock, diluted (in shares) | shares	105,305,957		94,336,893		90,772,230
Subscriptions
Revenues:
Revenue	$ 268,942		$ 161,188		$ 76,730
Maintenance and services
Revenues:
Revenue	119,302		130,028		135,367
Perpetual licenses
Revenues:
Revenue	$ 1,890		$ 1,473		$ 42,093

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Statement of Comprehensive Income [Abstract]
Net loss	$ (116,861)	$ (94,010)	$ (78,764)
Other comprehensive income (loss):
Unrealized income (loss) on marketable securities, net of tax	(7)	(94)	21
Income on marketable securities reclassified into earnings, net of tax	4	76	5
Total	(3)	(18)	26
Unrealized income on derivative instruments, net of tax	5,616	4,043	3,510
Loss (income) on derivative instruments reclassified into earnings, net of tax	(8,901)	5,795	(352)
Total	(3,285)	9,838	3,158
Total other comprehensive income (loss)	(3,288)	9,820	3,184
Comprehensive loss	$ (120,149)	$ (84,190)	$ (75,580)

Consolidated Statements of Chan

Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive income (loss)	Accumulated deficit
Balance (in shares) at Dec. 31, 2018		88,730,640
Balance at Dec. 31, 2018	$ 125,370	$ 89	$ 266,882	$ (3,633)	$ (137,968)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	46,139		46,139
Common stock issued under employee stock plans, net (shares)		3,019,293
Common stock issued under employee stock plans, net	(2,397)	$ 3	(2,400)
Realized and unrealized gains (losses) on derivative	3,158			3,158
Unrealized gains (losses) in available for sale securities	26			26
Net loss	(78,764)				(78,764)
Balance (in shares) at Dec. 31, 2019		91,749,933
Balance at Dec. 31, 2019	93,532	$ 92	310,621	(449)	(216,732)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation expense	68,585		68,585
Common stock issued under employee stock plans, net (shares)		3,600,003
Common stock issued under employee stock plans, net	9,791	$ 3	9,788
Issuance of common stock from acquisitions (in shares)		106,926
Issuance of common stock from acquisitions	4,198	$ 0	4,198
Fair value of replacement equity awards attributable to pre-acquisition service	709		709
Realized and unrealized gains (losses) on derivative	9,838			9,838
Unrealized gains (losses) in available for sale securities	(18)			(18)
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	(94,010)				(94,010)
Balance (in shares) at Dec. 31, 2020		95,456,862
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	109,779		109,779
Common stock issued under employee stock plans, net (shares)		4,090,696
Common stock issued under employee stock plans, net	12,858	$ 5	12,853
Realized and unrealized gains (losses) on derivative	(3,285)			(3,285)
Unrealized gains (losses) in available for sale securities	(3)			(3)
Net loss	(116,861)				(116,861)
Balance (in shares) at Dec. 31, 2021		107,509,096
Balance at Dec. 31, 2021	$ 596,593	$ 108	$ 1,018,005	$ 6,083	$ (427,603)

Consolidated Statements of Ch_2

Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Statement of Stockholders' Equity [Abstract]
Issuance costs	$ 17,466

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Cash flows from operating activities:
Net loss	$ (116,861)	$ (94,010)	$ (78,764)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization	10,888	10,167	6,321
Stock-based compensation	109,779	68,585	46,139
Amortization of deferred commissions	14,147	13,106	13,630
Noncash operating lease costs	8,232	8,737	9,023
Amortization of debt discount and issuance costs	6,870	4,096	0
Capital loss from sale of fixed assets	0	0	45
Changes in assets and liabilities:
Trade receivables	(22,950)	(19,075)	8,173
Prepaid expenses and other current assets	(506)	(543)	(1,225)
Deferred commissions	(21,151)	(19,131)	(19,132)
Other long-term assets	1,404	1,172	81
Trade payables	4,474	(328)	(1,623)
Accrued expenses and other short-term liabilities	5,850	16,058	(886)
Deferred revenues	5,421	(169)	7,219
Other long-term liabilities	1,581	5,493	316
Net cash provided by (used in) operating activities	7,178	(5,842)	(10,683)
Cash flows from investing activities:
Proceeds from sales and maturities of marketable securities	34,117	51,539	65,359
Investment in marketable securities	0	(44,124)	(67,120)
Proceeds from short-term and long-term deposits	80,752	74,776	147,531
Investment in short-term and long-term deposits	(50,000)	(97,454)	(87,086)
Acquisition, net of cash acquired	0	(29,369)	0
Proceeds from sale of property and equipment	0	0	11
Purchases of property and equipment	(10,490)	(10,116)	(25,392)
Net cash provided by (used in) investing activities	54,379	(54,748)	33,303
Cash flows from financing activities:
Proceeds from follow-on offering, net	500,034	0	0
Proceeds from issuance of convertible senior notes, net of issuance costs	0	245,308	0
Purchases of capped calls	0	(29,348)	0
Proceeds from employee stock plans, net	10,078	9,793
Proceeds from employee stock plans, net			(2,398)
Net cash provided by (used in) financing activities	510,112	225,753	(2,398)
Increase in cash and cash equivalents	571,669	165,163	20,222
Cash and cash equivalents at beginning of period	234,092	68,929	48,707
Cash and cash equivalents at end of period	805,761	234,092	68,929
Supplemental disclosure of cash flow information:
Cash paid for income taxes	8,507	1,342	3,955
Lease liabilities arising from obtaining right-of-use assets	$ 22,156	$ 6,256	$ 10,252

General

General	12 Months Ended
	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
General	GENERAL 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 and has twelve wholly-owned subsidiaries.

Significant Accounting Policies

Significant Accounting Policies	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Significant Accounting Policies	SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared according to United States generally accepted accounting principles (“U.S. GAAP”), applied on a consistent basis, as follows: a. Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to accounts receivable and credit loss allowances, fair values of stock-based awards, deferred taxes and income tax uncertainties, and contingent liabilities. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities. b. Financial Statements in U.S. Dollars: Most of the Company's revenues and costs are denominated in United States dollars (“dollars”). Some of the subsidiaries’ revenues and costs are primarily incurred in Euros, the Pound Sterling, Canadian dollars, Australian dollars and New Israeli Shekels ("NIS"); however, the Company’s management believes that the dollar is the primary currency of the economic environment in which it and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are remeasured to the functional currency in accordance with ASC No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the quarter. At the end of each reporting period, financial assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded as financial income (expense) in the consolidated statements of operations as appropriate. c. Principles of Consolidation: The consolidated financial statements include the accounts of VSI and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. d. 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, 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 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 December 31, 2021 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 414,942 $ — $ — $ 414,942 Total $ 414,942 $ — $ — $ 414,942 Short-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 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 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 ("CECL") model to determine what portion of that difference, if any, is caused by expected credit losses. Expected credit losses on available for sale debt securities are recognized in financial expenses, net on the consolidated statements of operations. During the years ended December 31, 2021 and 2020, the Company did not recognize an allowance for credit losses on available for sale marketable securities as any expected credit losses are not material to the consolidated financial statements. A short-term bank deposit is a deposit with a maturity of more than three months but less than one year. Deposits in U.S. dollars bore interest at a rate of 0.15%, per annum, as of December 31, 2021 and rates ranging from 0.10% - 0.16%, per annum, as of December 31, 2020. Short-term deposits are presented at cost which approximates market value due to their short maturities. e. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 33% Office furniture and equipment 14% — 15% Leasehold improvements Over the shorter of the expected lease f. 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. The Company operates as one reporting segments and considers the enterprise to be the only reporting unit. If the carrying amount of our reporting unit exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 years ended December 31, 2021 and 2020, no impairment losses have been recorded. g. Long-Term Lease Deposits: Long-term lease deposits include long-term deposits for offices. h. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are sold on-premises and are comprised of time-based licenses whereby customers use the Company's software (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. 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. In 2021, the Company launched its cloud offering that allow customers to use hosted software. 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. In 2021, the Company launched its cloud offering that allows customers to use hosted software and its revenue is recognized ratably over the associated contract period. As the Company only introduced these licenses in the second half of 2021, the total revenues have not yet been material. 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 $98,085 for the year ended December 31, 2021. The Company does not grant a right of return to its customers, except for one of its resellers. During the years ended December 31, 2021, 2020 and 2019, there were no returns from this reseller. For information regarding disaggregated revenues, please refer to Note 14. i. 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. j. Cost of Revenues: Cost of revenues consists of the cost of maintenance and services, resulting from costs associated with support, customer success and professional services. These costs consist primarily of salaries (including payroll tax expense related to stock-based compensation), employee benefits (including commissions and bonuses) and stock-based compensation for our maintenance and services employees; amortization of acquired intangible assets; travel expenses; and allocated overhead costs for facilities, IT and depreciation. k. 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. The stock-based compensation expenses related to employees and consultants for the years ended December 31, 2021, 2020 and 2019 amounted to $109,779, $68,585 and $46,139, respectively. l. 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. m. Research and Development Costs: Research and development costs are charged to the statement of operations as incurred. ASC No. 985-20, “Software-Costs of Software to Be Sold, Leased, or Marketed,” requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for general release. Therefore, research and development costs are charged to the statement of operations as incurred. n. Income Taxes: The Company accounts for income taxes in accordance with ASC No. 740, using the asset and liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. ASC 740 contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. The Company accrues interest and penalties related to unrecognized tax provisions in its taxes on income. o. 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 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 (liabilities) as of Assets as of December 31, 2021 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 $ 115,710 $ 6,083 $ 90,452 $ 3,315 Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 42,056 $ (62) $ 33,977 $ 17 For the years ended December 31, 2021, 2020 and 2019, the consolidated statements of operations reflect a gain of $8,901, $257 and $352, respectively, related to the effective portion of the cash flow hedges. No material ineffective hedges were recognized for the years ended December 31, 2021, 2020 and 2019 in operating expenses in the consolidated statement of operations. For the years ended December 31, 2021, 2020 and 2019, the consolidated statements of operations reflect a gain of $959, a loss of $1,144 and a gain of $683, respectively, in financial expenses, net, related to the Fair Value Hedging Program. p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, marketable securities, short-term deposits and trade receivables. The Company’s cash, cash equivalents, marketable securities and short-term deposits are invested in major banks mainly in the United States but also in Israel, France, Canada, the United Kingdom, Germany, the Netherlands, Ireland, Luxembourg and Australia. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with reputable financial institutions and monitors the amount of credit exposure to each financial institution. The Company’s trade receivables are geographically diversified and derived primarily from sales to a network of distributors and VARs mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for credit losses based upon a specific review of all significant outstanding invoices, historical collection experience, customer creditworthiness, current, and future economic and market condition. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts. q. Retirement and Severance Pay: VSI and Varonis U.S. Public Sector LLC ("VPS") make available to its employees a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code"). Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. VSI and VPS match 100% of each participant’s contributions up to a maximum of 3% of the participant’s total pay and 50% of each participant’s contributions on contributions between 3% and 5% of the participant’s total pay. Each participant may contribute up to 80% of total remuneration up to the Internal Revenue Service’s annual contribution limit. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. Varonis Systems Ltd ("VSL") makes available to its employees, pursuant to Israel’s Severance Pay Law, severance pay equal to one month’s salary for each year of employment, or a portion thereof. The employees of the Israeli subsidiary elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. The Company’s liability for severance pay for the employees of its French subsidiary is calculated pursuant to French law, according to which French employees are entitled to an indemnity (a statutory redundancy). The law provides for the payment of severance payment to any employee working for the French subsidiary for at least a year. In addition, the Company also makes available pension plans to employees of other subsidiaries in which it operates. Total expenses related to retirement and severance pay amounted to $9,598, $7,169 and $6,390 for the years ended December 31, 2021, 2020 and 2019, respectively. The amount of severance payable included in other liabilities as of December 31, 2021 and 2020 is $2,877 and $2,727, respectively. r. Fair Value of Financial Instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments. s. 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, performance 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 8,556,245, 9,445,326 and 9,101,154 potentially dilutive shares from the conversion of outstanding stock options, restricted stock units and performance stock units that were not included in the calculation of diluted net loss per share for the years ending of December 31, 2021, 2020 and 2019, 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 for the years ending of December 31, 2021 and 2020. The Company intends to settle the principal amount of the 2025 Notes in cash and will use the if-converted 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. t. Contingent Liabilities: The Company accounts for its contingent liabilities in accordance with ASC No. 450 “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2021 and 2020, the Company was not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows. u. Basis of Presentation: Certain amounts in prior years' financial statements have been recast and reclassified to conform to the current year's presentation. v. 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 (the "Credit Facility"). The Credit Facility maturity date is the earlier of August 21, 2023 or 90 days prior to the scheduled maturity of any convertible debt securities. The fees incurred in connection with entering into the Credit and Security Agreement 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 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 December 31, 2021, the Company had no balance outstanding on the Credit Facility and was in compliance with all financial covenants and non-financial covenants. w. Recently Issued Accounting Pronouncements Not Yet Adopted: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity.” The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. Among other potential impacts, ASU 2020-06 will reduce reported interest expense, and thereby decrease reported net loss, and result in a reclassification of certain conversion feature balance sheet amounts from stockholder’s equity to liabilities as it relates to the Company’s 2025 Notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on earnings per share. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and can be adopted on either a fully retrospective or modified retrospective basis. The Company adopted this standard on January 1, 2022 using a modified retrospective basis which resulted in a decrease to accumulated deficit of $8,647, a decrease in additional paid-in capital of $30,794 an

Prepaid Expenses and Other Curr

Prepaid Expenses and Other Current Assets	12 Months Ended
	Dec. 31, 2021
Prepaid Expense and Other Assets, Current [Abstract]
Prepaid Expenses and Other Current Assets	PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2021 2020 Deferred commission $ 17,930 $ 14,144 Prepaid expenses 6,746 7,938 Foreign currency forward contracts derivatives 6,083 3,332 Government institutions & other receivables 3,333 1,586 Short-term deposits & other 325 357 Prepaid expenses and other current assets $ 34,417 $ 27,357

Property and Equipment, Net

Property and Equipment, Net	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property and Equipment, Net	PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following (in thousands): December 31, 2021 2020 Cost: Computer equipment $ 23,515 $ 18,848 Office furniture and equipment 6,462 5,735 Leasehold improvements 42,419 37,391 72,396 61,974 Accumulated depreciation 34,098 24,811 Property and equipment, net $ 38,298 $ 37,163 Depreciation and amortization expense of property and equipment, net for the years ended December 31, 2021, 2020 and 2019 were $9,355, $9,903 and $6,321, respectively.

Accrued Expenses and Other Shor

Accrued Expenses and Other Short Term Liabilities	12 Months Ended
	Dec. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]
Accrued Expenses And Other Short Term Liabilities	ACCRUED EXPENSES AND OTHER SHORT-TERM LIABILITIES Accrued expenses and other short-term liabilities consist of the following (in thousands): December 31, 2021 2020 Employees $ 44,057 $ 32,593 Government authorities and other 38,487 37,268 Accrued expenses 19,620 13,337 Foreign exchange forward contract derivatives 62 — Accrued expenses and other short-term liabilities $ 102,226 $ 83,198

Leases

Leases	12 Months Ended
	Dec. 31, 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 its operating right-of-use assets and operating lease liabilities (in thousands): December 31, 2021 Operating right-of-use assets $ 63,749 Operating lease liabilities, current $ 8,794 Operating lease liabilities, long-term 68,694 Total operating lease liabilities $ 77,488 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 deposit guarantees issued by a financial institution to secure various operating lease agreements in connection with its office space. Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of December 31, 2021, are as follows (in thousands): December 31, 2021 2022 $ 10,932 2023 11,347 2024 9,845 2025 9,884 2026 9,998 Thereafter 34,583 Total undiscounted lease payments $ 86,589 Less: Imputed interest (9,101) Present value of lease liabilities $ 77,488 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of December 31, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 8.19 Weighted average discount rate 2.88 % Total operating lease cost for the years ended December 31, 2021, 2020 and 2019 were $6,920, $12,151 and $8,912, respectively.

Convertible Senior Notes and Ca

Convertible Senior Notes and Capped Call Transactions	12 Months Ended
	Dec. 31, 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, under certain conditions. In addition, on or after February 15, 2025, a holder may convert all or any portion of its 2025 Notes at any time. During the three months ended December 31, 2021, the conversion feature of the 2025 Notes was triggered and therefore the 2025 Notes are currently convertible, in whole or in part, at the option of the holders from January 1, 2022 through March 31, 2022. 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 December 31, 2021. 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, subject to the terms and conditions provided in the Indenture. 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. The Indenture includes customary terms, including certain events of default after which the 2025 Notes may be due and payable immediately. 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): As of December 31, 2021 Liability component Principal $ 253,000 Unamortized discount (22,759) Unamortized issuance costs (4,911) Net carrying amount $ 225,330 Equity component, net of discount and issuance costs $ 30,794 The interest expense recognized related to the 2025 Notes for the years ended December 31, 2021 and 2020 was as follows (in thousands): December 31, 2021 December 31, 2020 Contractual interest expense $ 3,162 $ 2,012 Amortization of debt discount 5,651 3,369 Amortization of debt issuance costs 1,219 727 Total $ 10,032 $ 6,108 As of December 31, 2021, the total estimated fair value of the 2025 Notes was approximately $436,425. 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 In May 2020, in connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”). 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"). The Capped Call Transactions are separate transactions, 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.

Business Combinations

Business Combinations	12 Months Ended
	Dec. 31, 2021
Business Combinations [Abstract]
Business Combinations	BUSINESS COMBINATIONS On October 29, 2020, the Company completed the acquisition of all the share capital of Polyrize Security Ltd. ("Polyrize"). The deal was for $39,380 and comprised of the total fair value of consideration of $29,620 (the "Purchase Price") and an aggregate conditional retention consideration of $9,760 to be paid to its founders over three years subject to their continued employment with the Company. The Purchase Price consisted of $24,713 in cash, $4,198 for the fair value of 106,926 shares of our common stock issued and $709 in fair value of replacement equity awards attributable to pre-acquisition service. The conditional retention consideration expenses related to the founders will be recorded as compensation expenses in the statement of operations over the period. The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: Purchase Price Allocation Estimated Useful Life Net tangible assets acquired $ 375 Intangible assets: Developed technology & trademarks 6,110 4 Goodwill 23,135 Total purchase price $ 29,620 The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill. The Company believes the goodwill represents the synergies expected from expanded market opportunities when integrating Polyrize with our offerings. Acquisition-related costs of $325 are included in general and administrative expenses on our consolidated statements of operations for the year ended December 31, 2020.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	12 Months Ended
	Dec. 31, 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, 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. All goodwill balances are subject to annual goodwill impairment testing. As of December 31, 2021, the Company concluded that no impairment for goodwill, including intangibles, was required. Intangible Assets Total cost and amortization of intangible assets is comprised of the following (in thousands, except useful life): Intangible assets, net Estimated Useful Life December 31, 2021 Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 1,797 Total intangible assets, net $ 4,313 Intangible assets are expensed on a straight-line basis over the useful life of the asset. The Company recorded amortization expense of $1,533 and $264 for the years ended December 31, 2021 and 2020, respectively. The following table summarizes estimated future amortization expense of our intangible assets as of December 31, 2021 (in thousands): Years ending December 31, Amount 2022 1,525 2023 1,525 2024 1,263 Total future amortization expense $ 4,313

Fair Value Measurements

Fair Value Measurements	12 Months Ended
	Dec. 31, 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 years ended December 31, 2021 and 2020. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2021 and 2020 by level within the fair value hierarchy (in thousands): As of December 31, 2021 As of December 31, 2020 Level I Level Level Fair Level I Level Level Fair Financial assets: Cash equivalents: Money market funds $ 414,942 $ — $ — $ 414,942 $ 10,712 $ — $ — $ 10,712 Marketable securities: US Treasury securities — — — — 34,117 — — 34,117 Prepaid expenses and other current assets: Forward foreign exchange contracts — 6,083 — 6,083 — 3,332 — 3,332 Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (62) — (62) — — — — Total financial assets (liabilities) $ 414,942 $ 6,021 $ — $ 420,963 $ 44,829 $ 3,332 $ — $ 48,161 See Note 7 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's 2025 Notes as of December 31, 2021.

Stockholders' Equity

Stockholders' Equity	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Stockholders' Equity	STOCKHOLDERS’ EQUITY a. Composition of common stock capital: Authorized Issued and outstanding Number of shares December 31, December 31, 2021 2020 2021 2020 Stock of $0.001 par value: Common stock 200,000,000 200,000,000 107,509,096 95,456,862 b. Common stock rights: The Company’s Amended and Restated Certificate of Incorporation authorizes the Company to issue 200,000,000 shares of common stock, par value $0.001 per share. The common stock confers upon its holders the right to participate in the general meetings of the Company, to vote at such meetings (each share represents one vote), to elect board members and to participate in any distribution of dividends or any other distribution of the Company’s property, including the distribution of surplus assets upon liquidation. 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 began on a split-adjusted basis on March 15, 2021. Common stock and per share data in this Annual Report on Form 10-K have been adjusted for the impact of the split. c. Stock option plans: 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 24,217,741 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 year ended December 31, 2021 is as follows: Year ended December 31, 2021 Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 1,022,763 $ 6.862 $ 47,417 3.452 Granted — $ — Exercised (215,893) $ 6.128 Forfeited (3,000) $ 2.077 Options outstanding at the end of the period 803,870 $ 7.077 $ 33,524 2.747 Options exercisable at the end of the period 787,775 $ 7.106 $ 32,830 2.638 There were no options granted in 2021 pursuant to our 2005 Stock Plan, 2013 Plan or Polyrize Plan (collectively "Stock Plans"). 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 years ended December 31, 2021, 2020 and 2019 was $13,153, $9,922 and $12,453, respectively. As of December 31, 2021 and 2020, there was $496 and $810, respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under our Stock Plans. This cost is expected to be recognized over a weighted-average period of approximately 1.802 and 2.721 years, respectively. The options outstanding as of December 31, 2021 have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of December 31, 2021 Weighted Weighted Options exercisable as of December 31, 2021 Weighted Weighted $ 4.157 — 5.682 224,661 2.959 $ 4.883 208,566 2.561 $ 4.808 $ 6.503 — 8.077 433,307 2.559 $ 7.111 433,307 2.559 $ 7.111 $ 9.960 120,180 3.142 $ 9.960 120,180 3.142 $ 9.960 $ 13.287 25,722 2.222 $ 13.287 25,722 2.222 $ 13.287 803,870 2.747 $ 7.077 787,775 2.638 $ 7.106 d. Options issued to consultants: The Company’s outstanding options granted to consultants for services as of December 31, 2021 were as follows: Issuance date Number of options outstanding and exercisable 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 There were no options granted in 2021 pursuant to our Stock Plans. e. Restricted stock units and performance stock units: A summary of restricted stock units and performance stock units for employees, consultants and non-employee directors of the Company for the year ended December 31, 2021 is as follows: Number of Weighted- Outstanding as of January 1, 2021 8,388,963 $ 23.00 Granted 3,542,175 $ 65.25 Vested (3,615,077) $ 20.10 Forfeited (589,936) $ 38.10 Unvested as of December 31, 2021 7,726,125 $ 42.53 As of December 31, 2021 and 2020, there was $265,345 and $141,408, respectively, of total unrecognized compensation cost related to employees and non-employees unvested restricted stock units and performance stock units which is expected to be recognized over a weighted-average period of 2.078 and 2.120 years, respectively. The Company grants performance stock units to certain employees under the 2013 Plan. The number of performance stock units earned and eligible to vest are generally determined after a one three f. 2015 Employee Stock Purchase Plan On May 5, 2015, the Company’s stockholders approved the Varonis Systems, Inc. 2015 Employee Stock Purchase Plan (the “ESPP”), which the Company’s board of directors had adopted on March 19, 2015. The ESPP became effective as of June 30, 2015. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value of the Company’s common stock on the first day or last trading day in the offering period, subject to any plan limitations. The Company initially reserved 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 3,004,765 shares. The ESPP will continue in effect until the earlier of (i) the date when no shares of common stock are available for issuance thereunder or (ii) June 30, 2025; unless terminated prior thereto by the Company’s board of directors or compensation committee, each of which has the right to terminate the ESPP at any time. g. Stock-based compensation expense for employees and consultants: The Company recognized stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Year ended December 31, 2021 2020 2019 Cost of revenues $ 8,995 $ 5,013 $ 2,561 Research and development 36,033 21,979 13,188 Sales and marketing 39,684 25,578 14,782 General and administrative 25,067 16,015 15,608 Total $ 109,779 $ 68,585 $ 46,139 h. Follow-on offering: On February 16, 2021, the Company completed a registered public offering of 7,961,538 shares of the Company's common stock, which included 1,038,459 additional optional shares, at a price of $65.00 per share, before underwriting discounts and commissions. The common stock offering generated net proceeds to the Company of approximately $500,034, after deducting $17,466 in underwriting discounts and commissions and offering costs, which have been recorded against the proceeds received from the offering.

Income Taxes

Income Taxes	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Income Taxes	INCOME TAXES a. U.S. Tax Reform: On December 22, 2017, the Tax Cuts and Jobs Act (the "TCJA") was signed into law. The TCJA makes broad and complex changes to the Code that impact the Company's provision for income taxes. The changes include, but are not limited to: • Decreasing the corporate income tax rate from 35% to 21% effective for tax years beginning after December 31, 2017 (“Rate Reduction”); and • Taxation of GILTI earned by foreign subsidiaries beginning after December 31, 2017. The GILTI tax imposes a tax on foreign income in excess of a deemed return on tangible assets of foreign corporations. GILTI Tax Certain income (i.e., GILTI) earned by controlled foreign corporations (“CFCs”) must be included currently in the gross income of the CFCs’ U.S. shareholder. GILTI is the excess of the shareholder’s “net CFC tested income” over the net deemed tangible income return, which is the excess of (1) 10 percent of the aggregate of the U.S. shareholder’s pro rata share of the qualified business asset investment of each CFC with respect to which it is a U.S. shareholder, over (2) the amount of certain interest expense taken into account in the determination of net CFC-tested income. For 2021, the Company is not subject to tax on account of GILTI as it has net CFC tested loss on an aggregated basis. Accounting for the TCJA The Company accounted for the tax impact related to the TCJA and believe its analysis to be completed. The Company recognizes that the IRS is continuing to publish and finalize ongoing guidance which may modify accounting interpretation for the TCJA, the Company would look to account for these impacts in the period of such change is enacted. b. The Company: The Company is taxed in accordance with U.S. tax laws. As of December 31, 2021, the Company had gross federal net operating loss ("NOL") carry-forwards of approximately $318,321, of which approximately $22,907 expire starting in 2032 and the remainder do not expire and can only be used to offset 80% of taxable income. As of December 31, 2021, the Company had NOL carry-forwards for state and foreign income tax purposes of approximately $201,029 and $3,870, respectively. State NOL carry-forwards of $172,131 expire starting 2023 and the remainder do not expire. Foreign NOL carry-forwards do not expire. In addition, as of December 31, 2021, the Company had federal research credit, retention credit, foreign tax credit and Ireland Employment credit carryforwards of approximately $1,412, $24, $190 and $19, respectively. If not utilized, the federal tax carryforwards will begin to expire in 2033, 2032 and 2026, respectively. Ireland has no expiration on the employment credit. A U.S. corporation's ability to utilize its federal and state NOL and tax credit carryforwards to offset its taxable income is limited under Section 382 of the Code if the corporation undergoes an ownership change (within the meaning of Code Section 382). In general, an “ownership change” occurs whenever the percentage of the stock of a corporation owned by “5-percent shareholders” (within the meaning of Code Section 382) increases by more than 50 percentage points over the lowest percentage of the stock of such corporation owned by such “5-percent shareholders” at any time over the testing period. An ownership change under Code Section 382 would establish an annual limitation to the amount of NOL and tax credit carryforwards the Company could utilize to offset its taxable income or income tax in any single year. The annual limitation may result in the expiration of net operating losses and credits before utilization and in the event we have a change of ownership, utilization of the carryforwards could be restricted. c. Loss before taxes on income is comprised as follows (in thousands): Year ended December 31, 2021 2020 2019 Domestic $ (101,245) $ (80,086) $ (82,007) Foreign (9,594) (5,812) 5,631 $ (110,839) $ (85,898) $ (76,376) d. Taxes on income (loss) are comprised as follows (in thousands): Year ended December 31, 2021 2020 2019 Current: Domestic: Federal $ (549) $ 90 $ 665 State 145 128 13 Foreign 5,182 8,854 1,619 Total current income tax $ 4,778 $ 9,072 $ 2,297 Deferred: Domestic: Federal $ 43 $ 8 $ — State 6 1 — Foreign 1,195 (969) 91 Total deferred income tax $ 1,244 $ (960) $ 91 Income tax expense $ 6,022 $ 8,112 $ 2,388 e. Deferred income taxes: Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The Company’s deferred tax assets are derived from its U.S. NOL carry-forwards and other temporary differences. ASC 740 requires an assessment of both positive and negative evidence concerning the realizability of our deferred tax assets in each jurisdiction. After considering evidence such as current and cumulative financial reporting incomes, the expected sources of future taxable income and tax planning strategies, the Company’s management concluded that a valuation allowance is required in the Unites States and some foreign jurisdictions. However, other foreign jurisdictions recorded a net deferred tax liability of $97 as of December 31, 2021. Future changes in these factors, including the Company’s anticipated results, could have a significant impact on the realization of the deferred tax assets which would result in an increase or decrease to the valuation allowance and a corresponding charge to income tax expense. The Company reevaluates the judgements surrounding its estimates and makes adjustments as appropriate each reporting period. Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Carry forward losses and credits $ 82,530 $ 53,221 Deferred revenues 11,628 13,054 Accrued payroll, commissions, vacation 6,867 3,808 Equity compensation 18,469 10,348 Allowance for credit losses 1,711 1,287 Accrued severance pay 391 312 Operating lease liability 14,453 11,302 Other 512 963 Deferred tax assets before valuation allowance 136,561 94,295 Valuation allowance (118,882) (77,542) Deferred tax assets $ 17,679 $ 16,753 Deferred tax liability: Accrued compensation and other accrued expense $ — $ (48) Operating lease right-of-use asset (12,478) (8,780) Convertible senior notes, net (5,298) (6,797) Deferred tax liability $ (17,776) $ (15,625) Net deferred tax asset (liability) $ (97) $ 1,128 The change in the valuation allowance was approximately an increase of $41,340 and $14,943 during 2021 and 2020, respectively. f. Reconciliation of the theoretical tax expenses: A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the consolidated statements of operations is as follows (in thousands, except tax rate): Year ended December 31, 2021 2020 2019 Loss before taxes, as reported in the consolidated statements of operations $ (110,839) $ (85,898) $ (76,376) Statutory tax rate 21 % 21 % 21 % Theoretical tax benefits on the above amount at the US statutory tax rate $ (23,276) $ (18,039) $ (16,039) Income tax at rate other than the U.S. statutory tax rate (2,621) 4,845 (2,508) Tax advances and non-deductible expenses including equity based compensation expenses (8,533) 934 (115) Operating losses and other temporary differences for which valuation allowance was provided 41,340 22,189 22,818 State tax (2,945) (2,872) (3,436) Impact of rate change (2,568) — 401 Change in tax reserve for uncertain tax positions 4,850 1,489 1,247 Other individually immaterial income tax items (225) (434) 20 Actual tax expense $ 6,022 $ 8,112 $ 2,388 g. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2021 and 2020 are as follows (in thousands): Gross unrecognized tax benefits as of January 1, 2020 $ 3,201 Increase in tax position for current year 1,787 Increase in tax position for prior years 979 Decrease in tax position for prior years (171) Decrease for lapse of statute of limitations/settlements (1,106) Gross unrecognized tax benefits as of December 31, 2020 $ 4,690 Increase in tax position for current year 4,335 Increase in tax position for prior years 3,624 Decrease in tax position for prior years (870) Decrease for lapse of statute of limitations/settlements (2,239) Gross unrecognized tax benefits as of December 31, 2021 $ 9,540 There was $9,540 of unrecognized income tax benefits that, if recognized, approximately $5,762 would impact the effective tax rate in the period in which each of the benefits is recognized. The Company includes interest and penalties related to unrecognized tax benefits within the provision for income taxes on the consolidated statements of operations. The total amount of penalties and interest is approximately $578 as of December 31, 2021. h. Foreign taxation: 1. Israeli tax benefits under the Law for the Encouragement of Capital Investments, 1959 (the “Investment Law”): VSL has utilized various benefits under the Investment Law. Those benefits relate only to taxable income attributable to the specific investment program and are conditioned upon meeting the terms stipulated in the Investment Law, the related regulations and the applicable certificate of approval. If VSL does not fulfill these conditions, in whole or in part, the benefits will most likely be cancelled, and VSL may be required to refund the benefits, in an amount linked to the Israeli consumer price index plus interest. If cash dividends are distributed out of tax exempt profits in a manner other than upon complete liquidation, VSL will then become liable for tax at the rate of 10%-25% (depending on the level of foreign investments in VSL) in respect of the amount distributed. 2. Undistributed earnings of foreign subsidiaries: In general, it is the Company’s practice and intention to reinvest the earnings of its non-U.S. subsidiaries in those operations. Undistributed earnings, if any, of foreign subsidiaries are immaterial for all periods presented. Because the Company’s non-U.S. subsidiary earnings have previously been included in the computation of the one-time Transition Tax on foreign earnings required by the TCJA and throughout the years have been included in the GILTI computations, any additional taxes due with respect to such earnings or the excess of the amount for financial reporting over the tax basis of its foreign investments would generally be limited to foreign withholding taxes and/or U.S. state income taxes. i. Tax assessments: As of December 31, 2021, the Company's federal tax returns for the years 2010 through the current period, excluding the 2016 tax year which was audited by the Internal Revenue Service, and most state tax returns for the years 2009 through the current period, are still open to examination. The Company remains open to examination to the extent net carry-over unused operating losses and tax credit attributable to those years remain unutilized. The Company is currently under certain state tax audits. During 2020, the Israeli Tax Authority initiated a withholding tax audit on VSL for the years 2016-2019. During 2021, the Company and the Israeli Tax Authority settled an income tax audit on VSL for the tax years 2016-2019. The Company has recorded a provision with respect to its uncertain tax positions in accordance with ASC 740. The Company has final income tax assessments for VSL through 2019, Varonis (UK) Limited through 2017 and Varonis France SAS through 2018. All other foreign subsidiaries do not have final tax assessments since their respective inceptions.

Financial Expenses, Net

Financial Expenses, Net	12 Months Ended
	Dec. 31, 2021
Financial Income (Expenses), Net [Abstract]
Financial Expenses, Net	FINANCIAL EXPENSES, NET Year ended December 31, 2021 2020 2019 Financial income: Interest on bank deposits & other $ 164 $ 674 $ 2,041 164 674 2,041 Financial expenses: Amortization of debt discount and issuance costs 6,870 4,096 — Interest expenses, principally from convertible note 3,168 2,017 — Foreign currency transaction losses, net 1,699 1,726 2,225 Bank and other charges 572 318 205 (12,309) (8,157) (2,430) Financial expenses, net $ (12,145) $ (7,483) $ (389)

Geographic Information and Majo

Geographic Information and Major Customer Data	12 Months Ended
	Dec. 31, 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 unit 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): Year ended December 31, 2021 2020 2019 Revenues based on customer’s location: North America $ 279,104 $ 207,488 $ 174,607 EMEA (*) 101,694 77,093 70,208 Rest of the World 9,336 8,108 9,375 Total revenues $ 390,134 $ 292,689 $ 254,190 (*) Sales to customers in France accounted for 10.5% and 10.6% of the Company’s revenues for the years ended December 31, 2021 and 2020, respectively. Sales to customers in France did not exceed 10% of total revenues for the year ended December 31, 2019. During the years ended December 31, 2021, 2020 and 2019, 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): December 31, 2021 2020 Long-lived assets by geographic region: United States $ 43,317 $ 30,938 Israel 40,169 42,471 Ireland 16,341 9,684 Other 2,220 1,994 $ 102,047 $ 85,087

Significant Accounting Polici_2

Significant Accounting Policies (Policies)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Use of Estimates	a. Use of Estimates: The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates, judgments and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. On an ongoing basis, the Company’s management evaluates estimates, including those related to accounts receivable and credit loss allowances, fair values of stock-based awards, deferred taxes and income tax uncertainties, and contingent liabilities. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Financial Statements U.S. Dollars	b. Financial Statements in U.S. Dollars: Most of the Company's revenues and costs are denominated in United States dollars (“dollars”). Some of the subsidiaries’ revenues and costs are primarily incurred in Euros, the Pound Sterling, Canadian dollars, Australian dollars and New Israeli Shekels ("NIS"); however, the Company’s management believes that the dollar is the primary currency of the economic environment in which it and each of its subsidiaries operate. Thus, the dollar is the Company’s functional and reporting currency. Accordingly, transactions denominated in currencies other than the functional currency are remeasured to the functional currency in accordance with ASC No. 830, “Foreign Currency Matters” at the exchange rate at the date of the transaction or the average exchange rate in the quarter. At the end of each reporting period, financial assets and liabilities are remeasured to the functional currency using exchange rates in effect at the balance sheet date. Non-financial assets and liabilities are remeasured at historical exchange rates. Gains and losses related to remeasurement are recorded as financial income (expense) in the consolidated statements of operations as appropriate.
Principles of Consolidation	c. Principles of Consolidation:
Cash, Cash Equivalents, Marketable Securities and Short-Term Investments	d. 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. All the US Treasury securities in marketable securities have a stated effective maturity of less than 12 months as of 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 ("CECL") model to determine what portion of that difference, if any, is caused by expected credit losses. Expected credit losses on available for sale debt securities are recognized in financial expenses, net on the consolidated statements of operations. During the years ended December 31, 2021 and 2020, the Company did not recognize an allowance for credit losses on available for sale marketable securities as any expected credit losses are not material to the consolidated financial statements. A short-term bank deposit is a deposit with a maturity of more than three months but less than one year. Deposits in U.S. dollars bore interest at a rate of 0.15%, per annum, as of December 31, 2021 and rates ranging from 0.10% - 0.16%, per annum, as of December 31, 2020. Short-term deposits are presented at cost which approximates market value due to their short maturities.
Property and Equipment	e. Property and Equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 33% Office furniture and equipment 14% — 15% Leasehold improvements Over the shorter of the expected lease
Goodwill and Other Long-Lived Assets, including Acquired Intangible Assets and Right-of-Use-Asset	f. 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. The Company operates as one reporting segments and considers the enterprise to be the only reporting unit. If the carrying amount of our reporting unit exceeds its fair value, the Company recognizes an impairment loss in an amount equal to that excess, limited to the total amount of goodwill allocated to that reporting unit. 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 years ended December 31, 2021 and 2020, no impairment losses have been recorded.
Long-Term Lease Deposits	g. Long-Term Lease Deposits: Long-term lease deposits include long-term deposits for offices.
Revenue Recognition	h. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are sold on-premises and are comprised of time-based licenses whereby customers use the Company's software (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. 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. In 2021, the Company launched its cloud offering that allow customers to use hosted software. 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. In 2021, the Company launched its cloud offering that allows customers to use hosted software and its revenue is recognized ratably over the associated contract period. As the Company only introduced these licenses in the second half of 2021, the total revenues have not yet been material. 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 $98,085 for the year ended December 31, 2021. The Company does not grant a right of return to its customers, except for one of its resellers. During the years ended December 31, 2021, 2020 and 2019, there were no returns from this reseller. For information regarding disaggregated revenues, please refer to Note 14. i. 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
Cost of Revenues	j. Cost of Revenues:
Accounting for Stock-Based Compensation	k. 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. The stock-based compensation expenses related to employees and consultants for the years ended December 31, 2021, 2020 and 2019 amounted to $109,779, $68,585 and $46,139, respectively.
Business Combinations	l. 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.
Research and Development Costs	m. Research and Development Costs: Research and development costs are charged to the statement of operations as incurred. ASC No. 985-20, “Software-Costs of Software to Be Sold, Leased, or Marketed,” requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon the completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the product is ready for general release. Therefore, research and development costs are charged to the statement of operations as incurred.
Income Taxes	n. Income Taxes: The Company accounts for income taxes in accordance with ASC No. 740, using the asset and liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized.
Derivative Instruments	o. 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 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.
Concentrations of Credit Risks	p. Concentrations of Credit Risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, marketable securities, short-term deposits and trade receivables. The Company’s cash, cash equivalents, marketable securities and short-term deposits are invested in major banks mainly in the United States but also in Israel, France, Canada, the United Kingdom, Germany, the Netherlands, Ireland, Luxembourg and Australia. Such deposits in the United States may be in excess of insured limits and are not insured in other jurisdictions. The Company maintains cash and cash equivalents with reputable financial institutions and monitors the amount of credit exposure to each financial institution. The Company’s trade receivables are geographically diversified and derived primarily from sales to a network of distributors and VARs mainly in the United States and Europe. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its channel partners and establishes an allowance for credit losses based upon a specific review of all significant outstanding invoices, historical collection experience, customer creditworthiness, current, and future economic and market condition. The Company writes off receivables when they are deemed uncollectible and having exhausted all collection efforts.
Retirement and Severance Pay	q. Retirement and Severance Pay: VSI and Varonis U.S. Public Sector LLC ("VPS") make available to its employees a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code of 1986, as amended (the "Code"). Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service annual contribution limit. VSI and VPS match 100% of each participant’s contributions up to a maximum of 3% of the participant’s total pay and 50% of each participant’s contributions on contributions between 3% and 5% of the participant’s total pay. Each participant may contribute up to 80% of total remuneration up to the Internal Revenue Service’s annual contribution limit. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statements of income. Varonis Systems Ltd ("VSL") makes available to its employees, pursuant to Israel’s Severance Pay Law, severance pay equal to one month’s salary for each year of employment, or a portion thereof. The employees of the Israeli subsidiary elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. The Company’s liability for severance pay for the employees of its French subsidiary is calculated pursuant to French law, according to which French employees are entitled to an indemnity (a statutory redundancy). The law provides for the payment of severance payment to any employee working for the French subsidiary for at least a year.
Fair Value of Financial Instruments	r. Fair Value of Financial Instruments: Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring 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 fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The carrying amounts of cash and cash equivalents, marketable securities, trade receivables, short-term deposits and trade payables approximate their fair value due to the short-term maturity of such instruments.
Basic and Diluted Net Loss Per Share	s. 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, performance 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 8,556,245, 9,445,326 and 9,101,154 potentially dilutive shares from the conversion of outstanding stock options, restricted stock units and performance stock units that were not included in the calculation of diluted net loss per share for the years ending of December 31, 2021, 2020 and 2019, 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 for the years ending of December 31, 2021 and 2020. The Company intends to settle the principal amount of the 2025 Notes in cash and will use the if-converted 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.
Contingent Liabilities	t. Contingent Liabilities: The Company accounts for its contingent liabilities in accordance with ASC No. 450 “Contingencies.” A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. As of December 31, 2021 and 2020, the Company was not a party to any litigation that could have a material adverse effect on the Company’s business, financial position, results of operations or cash flows.
Basis of Presentation	u. Basis of Presentation: Certain amounts in prior years' financial statements have been recast and reclassified to conform to the current year's presentation.
Revolving Credit Facility	v. 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 (the "Credit Facility"). The Credit Facility maturity date is the earlier of August 21, 2023 or 90 days prior to the scheduled maturity of any convertible debt securities. The fees incurred in connection with entering into the Credit and Security Agreement 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 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 December 31, 2021, the Company had no balance outstanding on the Credit Facility and was in compliance with all financial covenants and non-financial covenants.
Recently Issued Accounting Pronouncements	w. Recently Issued Accounting Pronouncements Not Yet Adopted: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity.” The standard reduced the number of accounting models for convertible debt instruments and convertible preferred stock. Convertible instruments that continue to be subject to separation models are (1) those with embedded conversion features that are not clearly and closely related to the host contract, that meet the definition of a derivative, and that do not qualify for a scope exception from derivative accounting and (2) convertible debt instruments issued with substantial premiums for which the premiums are recorded as paid-in capital. Among other potential impacts, ASU 2020-06 will reduce reported interest expense, and thereby decrease reported net loss, and result in a reclassification of certain conversion feature balance sheet amounts from stockholder’s equity to liabilities as it relates to the Company’s 2025 Notes. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on earnings per share. The amendments in this update are effective for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years, and can be adopted on either a fully retrospective or modified retrospective basis. The Company adopted this standard on January 1, 2022 using a modified retrospective basis which resulted in a decrease to accumulated deficit of $8,647, a decrease in additional paid-in capital of $30,794 and an increase in liabilities of $22,146 on its consolidated balance sheets.

Significant Accounting Polici_3

Significant Accounting Policies (Tables)	12 Months Ended
	Dec. 31, 2021
Accounting Policies [Abstract]
Cash, Cash Equivalents and Investments	Cash, cash equivalents, marketable securities and short-term deposits consist of the following (in thousands): As of December 31, 2021 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 414,942 $ — $ — $ 414,942 Total $ 414,942 $ — $ — $ 414,942 Short-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 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.
Property, Plant and Equipment Estimated Useful Life	Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computer equipment 33% Office furniture and equipment 14% — 15% Leasehold improvements Over the shorter of the expected lease
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value	Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets (liabilities) as of Assets as of December 31, 2021 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 $ 115,710 $ 6,083 $ 90,452 $ 3,315 Foreign exchange forward contract derivatives for monetary items included in prepaid expenses and other current assets and accrued expenses and other short-term liabilities $ 42,056 $ (62) $ 33,977 $ 17

Prepaid Expenses and Other Cu_2

Prepaid Expenses and Other Current Assets (Tables)	12 Months Ended
	Dec. 31, 2021
Prepaid Expense and Other Assets, Current [Abstract]
Schedule of prepaid expenses and other current assets	Prepaid expenses and other current assets consist of the following (in thousands): December 31, 2021 2020 Deferred commission $ 17,930 $ 14,144 Prepaid expenses 6,746 7,938 Foreign currency forward contracts derivatives 6,083 3,332 Government institutions & other receivables 3,333 1,586 Short-term deposits & other 325 357 Prepaid expenses and other current assets $ 34,417 $ 27,357

Property and Equipment, Net (Ta

Property and Equipment, Net (Tables)	12 Months Ended
	Dec. 31, 2021
Property, Plant and Equipment [Abstract]
Property, Plant and Equipment	Property and equipment, net consist of the following (in thousands): December 31, 2021 2020 Cost: Computer equipment $ 23,515 $ 18,848 Office furniture and equipment 6,462 5,735 Leasehold improvements 42,419 37,391 72,396 61,974 Accumulated depreciation 34,098 24,811 Property and equipment, net $ 38,298 $ 37,163

Accrued Expenses and Other Sh_2

Accrued Expenses and Other Short Term Liabilities (Tables)	12 Months Ended
	Dec. 31, 2021
Accrued Liabilities and Other Liabilities [Abstract]
Schedule of Accounts Expense and Other Liabilities	Accrued expenses and other short-term liabilities consist of the following (in thousands): December 31, 2021 2020 Employees $ 44,057 $ 32,593 Government authorities and other 38,487 37,268 Accrued expenses 19,620 13,337 Foreign exchange forward contract derivatives 62 — Accrued expenses and other short-term liabilities $ 102,226 $ 83,198

Leases (Tables)

Leases (Tables)	12 Months Ended
	Dec. 31, 2021
Leases [Abstract]
Summary of Right-of-Use Assets and Lease Liabilities	Below is a summary of its operating right-of-use assets and operating lease liabilities (in thousands): December 31, 2021 Operating right-of-use assets $ 63,749 Operating lease liabilities, current $ 8,794 Operating lease liabilities, long-term 68,694 Total operating lease liabilities $ 77,488
Lessee, Operating Lease, Liability, Maturity	Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of December 31, 2021, are as follows (in thousands): December 31, 2021 2022 $ 10,932 2023 11,347 2024 9,845 2025 9,884 2026 9,998 Thereafter 34,583 Total undiscounted lease payments $ 86,589 Less: Imputed interest (9,101) Present value of lease liabilities $ 77,488
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 December 31, 2021: Remaining lease term and discount rate: Weighted average remaining lease term (years) 8.19 Weighted average discount rate 2.88 %

Convertible Senior Notes and _2

Convertible Senior Notes and Capped Call Transactions (Tables)	12 Months Ended
	Dec. 31, 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): As of December 31, 2021 Liability component Principal $ 253,000 Unamortized discount (22,759) Unamortized issuance costs (4,911) Net carrying amount $ 225,330 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 years ended December 31, 2021 and 2020 was as follows (in thousands): December 31, 2021 December 31, 2020 Contractual interest expense $ 3,162 $ 2,012 Amortization of debt discount 5,651 3,369 Amortization of debt issuance costs 1,219 727 Total $ 10,032 $ 6,108

Business Combinations (Tables)

Business Combinations (Tables)	12 Months Ended
	Dec. 31, 2021
Business Combinations [Abstract]
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	The following table summarizes the allocation of the purchase price to the fair value of the tangible and intangible assets acquired and liabilities assumed as of the acquisition date: Purchase Price Allocation Estimated Useful Life Net tangible assets acquired $ 375 Intangible assets: Developed technology & trademarks 6,110 4 Goodwill 23,135 Total purchase price $ 29,620

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	12 Months Ended
	Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Finite-Lived Intangible Assets	Intangible assets, net Estimated Useful Life December 31, 2021 Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 1,797 Total intangible assets, net $ 4,313
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	The following table summarizes estimated future amortization expense of our intangible assets as of December 31, 2021 (in thousands): Years ending December 31, Amount 2022 1,525 2023 1,525 2024 1,263 Total future amortization expense $ 4,313

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	12 Months Ended
	Dec. 31, 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 December 31, 2021 and 2020 by level within the fair value hierarchy (in thousands): As of December 31, 2021 As of December 31, 2020 Level I Level Level Fair Level I Level Level Fair Financial assets: Cash equivalents: Money market funds $ 414,942 $ — $ — $ 414,942 $ 10,712 $ — $ — $ 10,712 Marketable securities: US Treasury securities — — — — 34,117 — — 34,117 Prepaid expenses and other current assets: Forward foreign exchange contracts — 6,083 — 6,083 — 3,332 — 3,332 Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (62) — (62) — — — — Total financial assets (liabilities) $ 414,942 $ 6,021 $ — $ 420,963 $ 44,829 $ 3,332 $ — $ 48,161

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	12 Months Ended
	Dec. 31, 2021
Equity [Abstract]
Schedule of Stock by Class	a. Composition of common stock capital: Authorized Issued and outstanding Number of shares December 31, December 31, 2021 2020 2021 2020 Stock of $0.001 par value: Common stock 200,000,000 200,000,000 107,509,096 95,456,862
Share-based Compensation, Stock Options, Activity	A summary of employees’ stock options activities during the year ended December 31, 2021 is as follows: Year ended December 31, 2021 Number Weighted Aggregate Weighted Options outstanding at the beginning of the year 1,022,763 $ 6.862 $ 47,417 3.452 Granted — $ — Exercised (215,893) $ 6.128 Forfeited (3,000) $ 2.077 Options outstanding at the end of the period 803,870 $ 7.077 $ 33,524 2.747 Options exercisable at the end of the period 787,775 $ 7.106 $ 32,830 2.638
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range	The options outstanding as of December 31, 2021 have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of December 31, 2021 Weighted Weighted Options exercisable as of December 31, 2021 Weighted Weighted $ 4.157 — 5.682 224,661 2.959 $ 4.883 208,566 2.561 $ 4.808 $ 6.503 — 8.077 433,307 2.559 $ 7.111 433,307 2.559 $ 7.111 $ 9.960 120,180 3.142 $ 9.960 120,180 3.142 $ 9.960 $ 13.287 25,722 2.222 $ 13.287 25,722 2.222 $ 13.287 803,870 2.747 $ 7.077 787,775 2.638 $ 7.106
Schedule of Stockholders' Equity Note, Warrants or Rights	The Company’s outstanding options granted to consultants for services as of December 31, 2021 were as follows: Issuance date Number of options outstanding and exercisable 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 year ended December 31, 2021 is as follows: Number of Weighted- Outstanding as of January 1, 2021 8,388,963 $ 23.00 Granted 3,542,175 $ 65.25 Vested (3,615,077) $ 20.10 Forfeited (589,936) $ 38.10 Unvested as of December 31, 2021 7,726,125 $ 42.53
Share-based Payment Arrangement, Performance Shares, Activity	A summary of restricted stock units and performance stock units for employees, consultants and non-employee directors of the Company for the year ended December 31, 2021 is as follows: Number of Weighted- Outstanding as of January 1, 2021 8,388,963 $ 23.00 Granted 3,542,175 $ 65.25 Vested (3,615,077) $ 20.10 Forfeited (589,936) $ 38.10 Unvested as of December 31, 2021 7,726,125 $ 42.53
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs	The Company recognized stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Year ended December 31, 2021 2020 2019 Cost of revenues $ 8,995 $ 5,013 $ 2,561 Research and development 36,033 21,979 13,188 Sales and marketing 39,684 25,578 14,782 General and administrative 25,067 16,015 15,608 Total $ 109,779 $ 68,585 $ 46,139 h. Follow-on offering: On February 16, 2021, the Company completed a registered public offering of 7,961,538 shares of the Company's common stock, which included 1,038,459 additional optional shares, at a price of $65.00 per share, before underwriting discounts and commissions. The common stock offering generated net proceeds to the Company of approximately $500,034, after deducting $17,466 in underwriting discounts and commissions and offering costs, which have been recorded against the proceeds received from the offering.

Income Taxes (Tables)

Income Taxes (Tables)	12 Months Ended
	Dec. 31, 2021
Income Tax Disclosure [Abstract]
Schedule of Income before Income Tax, Domestic and Foreign	c. Loss before taxes on income is comprised as follows (in thousands): Year ended December 31, 2021 2020 2019 Domestic $ (101,245) $ (80,086) $ (82,007) Foreign (9,594) (5,812) 5,631 $ (110,839) $ (85,898) $ (76,376)
Schedule of Components of Income Tax Expense (Benefit)	d. Taxes on income (loss) are comprised as follows (in thousands): Year ended December 31, 2021 2020 2019 Current: Domestic: Federal $ (549) $ 90 $ 665 State 145 128 13 Foreign 5,182 8,854 1,619 Total current income tax $ 4,778 $ 9,072 $ 2,297 Deferred: Domestic: Federal $ 43 $ 8 $ — State 6 1 — Foreign 1,195 (969) 91 Total deferred income tax $ 1,244 $ (960) $ 91 Income tax expense $ 6,022 $ 8,112 $ 2,388
Schedule of Deferred Tax Assets and Liabilities	Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands): December 31, 2021 2020 Deferred tax assets: Carry forward losses and credits $ 82,530 $ 53,221 Deferred revenues 11,628 13,054 Accrued payroll, commissions, vacation 6,867 3,808 Equity compensation 18,469 10,348 Allowance for credit losses 1,711 1,287 Accrued severance pay 391 312 Operating lease liability 14,453 11,302 Other 512 963 Deferred tax assets before valuation allowance 136,561 94,295 Valuation allowance (118,882) (77,542) Deferred tax assets $ 17,679 $ 16,753 Deferred tax liability: Accrued compensation and other accrued expense $ — $ (48) Operating lease right-of-use asset (12,478) (8,780) Convertible senior notes, net (5,298) (6,797) Deferred tax liability $ (17,776) $ (15,625) Net deferred tax asset (liability) $ (97) $ 1,128
Schedule of Effective Income Tax Rate Reconciliation	A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the consolidated statements of operations is as follows (in thousands, except tax rate): Year ended December 31, 2021 2020 2019 Loss before taxes, as reported in the consolidated statements of operations $ (110,839) $ (85,898) $ (76,376) Statutory tax rate 21 % 21 % 21 % Theoretical tax benefits on the above amount at the US statutory tax rate $ (23,276) $ (18,039) $ (16,039) Income tax at rate other than the U.S. statutory tax rate (2,621) 4,845 (2,508) Tax advances and non-deductible expenses including equity based compensation expenses (8,533) 934 (115) Operating losses and other temporary differences for which valuation allowance was provided 41,340 22,189 22,818 State tax (2,945) (2,872) (3,436) Impact of rate change (2,568) — 401 Change in tax reserve for uncertain tax positions 4,850 1,489 1,247 Other individually immaterial income tax items (225) (434) 20 Actual tax expense $ 6,022 $ 8,112 $ 2,388
Schedule of Unrecognized Tax Benefits Roll Forward	g. A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2021 and 2020 are as follows (in thousands): Gross unrecognized tax benefits as of January 1, 2020 $ 3,201 Increase in tax position for current year 1,787 Increase in tax position for prior years 979 Decrease in tax position for prior years (171) Decrease for lapse of statute of limitations/settlements (1,106) Gross unrecognized tax benefits as of December 31, 2020 $ 4,690 Increase in tax position for current year 4,335 Increase in tax position for prior years 3,624 Decrease in tax position for prior years (870) Decrease for lapse of statute of limitations/settlements (2,239) Gross unrecognized tax benefits as of December 31, 2021 $ 9,540

Financial Expenses, Net (Tables

Financial Expenses, Net (Tables)	12 Months Ended
	Dec. 31, 2021
Financial Income (Expenses), Net [Abstract]
Schedule Of Nonoperating Income, by Component	Year ended December 31, 2021 2020 2019 Financial income: Interest on bank deposits & other $ 164 $ 674 $ 2,041 164 674 2,041 Financial expenses: Amortization of debt discount and issuance costs 6,870 4,096 — Interest expenses, principally from convertible note 3,168 2,017 — Foreign currency transaction losses, net 1,699 1,726 2,225 Bank and other charges 572 318 205 (12,309) (8,157) (2,430) Financial expenses, net $ (12,145) $ (7,483) $ (389)

Geographic Information and Ma_2

Geographic Information and Major Customer Data (Tables)	12 Months Ended
	Dec. 31, 2021
Segment Reporting [Abstract]
Revenue from External Customers by Geographic Areas	The following is a summary of revenues within geographic areas (in thousands): Year ended December 31, 2021 2020 2019 Revenues based on customer’s location: North America $ 279,104 $ 207,488 $ 174,607 EMEA (*) 101,694 77,093 70,208 Rest of the World 9,336 8,108 9,375 Total revenues $ 390,134 $ 292,689 $ 254,190 (*) Sales to customers in France accounted for 10.5% and 10.6% of the Company’s revenues for the years ended December 31, 2021 and 2020, respectively. Sales to customers in France did not exceed 10% of total revenues for the year ended December 31, 2019.
Long-lived Assets by Geographic Areas	December 31, 2021 2020 Long-lived assets by geographic region: United States $ 43,317 $ 30,938 Israel 40,169 42,471 Ireland 16,341 9,684 Other 2,220 1,994 $ 102,047 $ 85,087

General (Details Textual)

General (Details Textual)	Dec. 31, 2021subsidiary
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Subsidiary or equity method investee, number	12

Significant Accounting Polici_4

Significant Accounting Policies - Cash, Cash Equivalents and Short-term Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Cash and Cash Equivalents
Significant Accounting Policies [Line Items]
Amortized Cost	$ 414,942	$ 10,712
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	414,942	10,712
Cash and Cash Equivalents | Money Market Funds
Significant Accounting Policies [Line Items]
Amortized Cost	414,942	10,712
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	414,942	10,712
Marketable Securities
Significant Accounting Policies [Line Items]
Amortized Cost		34,113
Gross Unrealized Gains		4
Fair Value		34,117
Marketable Securities | US Treasury securities
Significant Accounting Policies [Line Items]
Amortized Cost		34,113
Gross Unrealized Gains		4
Fair Value		34,117
Short-term Deposits
Significant Accounting Policies [Line Items]
Amortized Cost	1,850	30,053
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,850	30,053
Short-term Deposits | Term Bank Deposits
Significant Accounting Policies [Line Items]
Amortized Cost	1,850	30,053
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 1,850	$ 30,053

Significant Accounting Polici_5

Significant Accounting Policies (Details Textual)	Aug. 21, 2020USD ($)	Dec. 31, 2021USD ($)Rateshares	Dec. 31, 2020USD ($)Rateshares	Dec. 31, 2019USD ($)shares	Dec. 31, 2021؋ / shares	May 11, 2020USD ($)
Significant Accounting Policies [Line Items]
Operating lease, impairment loss		$ 0	$ 0
Contract with customer, liability, revenue recognized		98,085,000
Sales returns		$ 0	0	$ 0
Capitalized contract cost, amortization period (years)		4 years
Stock-based compensation		$ 109,779,000	68,585,000	46,139,000
Gain (loss) on derivative instruments reclassified into earnings, net of tax		8,901,000	(5,795,000)	352,000
Derivative instruments not designated as hedging instruments, gain (loss), net		959,000	(1,144,000)	683,000
Severance and retirement costs		9,598,000	7,169,000	$ 6,390,000
Accumulated deficit		(427,603,000)	(310,742,000)
Additional paid-in capital		1,018,005,000	$ 395,347,000
Cumulative Effect, Period of Adoption, Adjustment
Significant Accounting Policies [Line Items]
Accumulated deficit		8,647,000
Additional paid-in capital		(30,794,000)
Liabilities		$ 22,146,000
Restricted Stock Units and Stock Options
Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares | shares		8,556,245	9,445,326	9,101,154
2025 Senior Notes
Significant Accounting Policies [Line Items]
Debt instrument, face amount		$ 253,000,000
2025 Senior Notes | Convertible Debt Securities
Significant Accounting Policies [Line Items]
Antidilutive securities excluded from computation of earnings per share, shares | shares		8,239,254	8,239,254
Convertible Debt | 2025 Senior Notes
Significant Accounting Policies [Line Items]
Interest rate, stated percentage						1.25%
Debt instrument, face amount						$ 253,000,000
Initial conversion price (in dollars per share) | ؋ / shares					؋ 30.71
Line of Credit | Revolving Credit Facility
Significant Accounting Policies [Line Items]
Debt instrument, term	3 years
Maximum borrowing capacity	$ 70,000,000
Other Noncurrent Liabilities
Significant Accounting Policies [Line Items]
Restructuring reserve		$ 2,877,000	$ 2,727,000
Israel | VSIL Plan
Significant Accounting Policies [Line Items]
Defined contribution plan, maximum annual contributions per employee, percent		8.33%
Deferred Salary Arrangement | United States
Significant Accounting Policies [Line Items]
Defined contribution plan, employer matching contribution, percent of match		100.00%
Defined contribution plan, employer matching contribution, percent of participants contribution		50.00%
Foreign Exchange Contract
Significant Accounting Policies [Line Items]
Gain (loss) on derivative instruments reclassified into earnings, net of tax		$ 8,901,000	$ 257,000	$ 352,000
United States of America, Dollars
Significant Accounting Policies [Line Items]
Investment interest rate | Rate		0.15%
Minimum | Deferred Salary Arrangement | United States
Significant Accounting Policies [Line Items]
Defined contribution plan, contributions, percentage of participants base pay		3.00%
Minimum | United States of America, Dollars
Significant Accounting Policies [Line Items]
Investment interest rate | Rate			0.10%
Maximum | Deferred Salary Arrangement | United States
Significant Accounting Policies [Line Items]
Defined contribution plan, employer matching contribution, percent of base pay		3.00%
Defined contribution plan, contributions, percentage of participants base pay		5.00%
Participant matching contribution percentage of base remuneration		80.00%
Maximum | United States of America, Dollars
Significant Accounting Policies [Line Items]
Investment interest rate | Rate			0.16%
Maintenance and services
Significant Accounting Policies [Line Items]
Revenue, performance obligation, description of timing		one year

Significant Accounting Polici_6

Significant Accounting Policies - Property and Equipment, Schedule of Depreciation Annual Rates and Estimated Useful Lives of Assets (Details)	12 Months Ended
	Dec. 31, 2021
Computer equipment
Significant Accounting Policies [Line Items]
Depreciation rate	33.00%
Office furniture and equipment | Minimum
Significant Accounting Policies [Line Items]
Depreciation rate	14.00%
Office furniture and equipment | Maximum
Significant Accounting Policies [Line Items]
Depreciation rate	15.00%
Leasehold improvements
Significant Accounting Policies [Line Items]
Leasehold improvements	Over the shorter of the expected leaseterm or estimated useful life

Significant Accounting Polici_7

Significant Accounting Policies - Derivative Instruments Measured at Fair Value (Details) - Foreign Exchange Contract - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Prepaid Expenses and Other Current Assets | Cash Flow Hedging
Derivative [Line Items]
Derivative Asset, Notional Amount	$ 115,710	$ 90,452
Derivative Asset, Fair Value	6,083	3,315
Prepaid Expenses and Other Current Assets | Fair Value Hedging
Derivative [Line Items]
Derivative Asset, Notional Amount	42,056	33,977
Derivative Asset, Fair Value		$ 17
Accrued Expenses and Other Short-term Liabilities | Fair Value Hedging
Derivative [Line Items]
Derivative Liability, Fair Value	$ (62)

Prepaid Expenses and Other Cu_3

Prepaid Expenses and Other Current Assets - Schedule Of Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Prepaid Expense and Other Assets, Current [Abstract]
Deferred commission	$ 17,930	$ 14,144
Prepaid expenses	6,746	7,938
Foreign currency forward contracts derivatives	6,083	3,332
Government institutions & other receivables	3,333	1,586
Short-term deposits & other	325	357
Prepaid expenses and other current assets	$ 34,417	$ 27,357

Property and Equipment, Net - S

Property and Equipment, Net - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 72,396	$ 61,974
Accumulated depreciation	34,098	24,811
Property and equipment, net	38,298	37,163
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	23,515	18,848
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,462	5,735
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 42,419	$ 37,391

Property and Equipment, Net (De

Property and Equipment, Net (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Depreciation and amortization	$ 9,355	$ 9,903	$ 6,321

Accrued Expenses and Other Sh_3

Accrued Expenses and Other Short Term Liabilities - Schedule of Accrued Expenses and Other Short Term Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accrued Liabilities and Other Liabilities [Abstract]
Employees	$ 44,057	$ 32,593
Government authorities and other	38,487	37,268
Accrued expenses	19,620	13,337
Foreign exchange forward contract derivatives	62	0
Accrued expenses and other short-term liabilities	$ 102,226	$ 83,198

Leases - Summary of Right-of-Us

Leases - Summary of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Operating right-of-use assets	$ 63,749	$ 47,924
Operating lease liabilities, current	8,794
Operating lease liabilities, long-term	68,694	$ 54,540
Total operating lease liabilities	$ 77,488

Leases - Minimum Lease Payments

Leases - Minimum Lease Payments for Right-of-Use Assets (Details) $ in Thousands	Dec. 31, 2021USD ($)
Leases [Abstract]
2022	$ 10,932
2023	11,347
2024	9,845
2025	9,884
2026	9,998
Thereafter	34,583
Total undiscounted lease payments	86,589
Less: Imputed interest	(9,101)
Present value of lease liabilities	$ 77,488

Leases - Narrative (Details)

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Leases [Abstract]
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List]	Accrued expenses and other short-term liabilities
Operating leases, expense	$ 6,920	$ 12,151	$ 8,912

Leases - Summary of Weighted Av

Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details)	Dec. 31, 2021
Leases [Abstract]
Weighted average remaining lease term (years)	8 years 2 months 8 days
Weighted average discount rate	2.88%

Convertible Senior Notes and _3

Convertible Senior Notes and Capped Call Transactions - Narrative (Details)	May 11, 2020USD ($)	Dec. 31, 2021USD ($)	Dec. 31, 2020USD ($)	Dec. 31, 2019USD ($)	Dec. 31, 2021؋ / shares
Debt Instrument [Line Items]
Proceeds from issuance of convertible senior notes, net of issuance costs		$ 0	$ 245,308,000	$ 0
Payments for capped calls		0	$ 29,348,000	$ 0
Cap price | ؋ / shares					؋ 47.24
2025 Senior Notes
Debt Instrument [Line Items]
Equity component, net of discount and issuance costs		30,794,000
Fair value of the notes		$ 436,425,000
Convertible Debt
Debt Instrument [Line Items]
Payments for 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
Equity component, net of discount and issuance costs		$ 31,779,000
Debt issuance costs of liability component		$ 6,857,000
Debt instrument, interest rate, effective percentage		4.51%
Convertible Debt | 2025 Senior Notes | Additional paid-in capital
Debt Instrument [Line Items]
Debt issuance costs of equity component		$ 985,000

Convertible Senior Notes and _4

Convertible Senior Notes and Capped Call Transactions - Schedule of Convertible Notes (Details) - 2025 Senior Notes $ in Thousands	Dec. 31, 2021USD ($)
Debt Instrument [Line Items]
Principal	$ 253,000
Unamortized discount	(22,759)
Unamortized issuance costs	(4,911)
Net carrying amount	225,330
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	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Debt Instrument [Line Items]
Total	$ 3,168	$ 2,017	$ 0
2025 Senior Notes
Debt Instrument [Line Items]
Contractual interest expense	3,162	2,012
Amortization of debt discount	5,651	3,369
Amortization of debt discount and issuance costs	1,219	727
Total	$ 10,032	$ 6,108

Business Combinations - Narrati

Business Combinations - Narrative (Details) - Polyrize - USD ($) $ in Thousands	Oct. 29, 2020	Dec. 31, 2020
Business Acquisition [Line Items]
Total purchase price	$ 39,380
Fair value of consideration	29,620
Contingent consideration	$ 9,760
Contingent consideration period	3 years
Payments to acquire businesses, gross	$ 24,713
Fair value of common stock issued	$ 4,198
Equity interest issued or issuable, number of shares	106,926
Fair value of replacement equity awards attributable to pre-acquisitions service	$ 709
Acquisition related costs		$ 325

Business Combinations - Purchas

Business Combinations - Purchase Price Allocation and Estimated Useful Life (Details) - USD ($) $ in Thousands	Oct. 29, 2020	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition [Line Items]
Goodwill		$ 23,135	$ 23,135
Polyrize
Business Acquisition [Line Items]
Net tangible assets acquired	$ 375
Goodwill	23,135
Total purchase price	29,620
Polyrize | Developed technology & trademarks
Business Acquisition [Line Items]
Intangible assets	$ 6,110
Estimated Useful Life (in years)	4 years

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets - Cost and Amortization of Intangible Assets (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)
Finite-Lived Intangible Assets [Line Items]
Total intangible assets	$ 6,110
Less: Accumulated amortization	1,797
Total intangible assets, net	$ 4,313
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	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization of intangible assets	$ 1,533	$ 264

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Dec. 31, 2021USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2022	$ 1,525
2023	1,525
2024	1,263
Total intangible assets, net	$ 4,313

Fair Value Measurements - Asset

Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets (liabilities)	$ 420,963	$ 48,161
Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	6,083	3,332
Derivative liabilities	(62)	0
Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	414,942	10,712
US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	34,117
Level I
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets (liabilities)	414,942	44,829
Level I | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Level I | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	414,942	10,712
Level I | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	34,117
Level II
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets (liabilities)	6,021	3,332
Level II | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	6,083	3,332
Derivative liabilities	(62)	0
Level II | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level II | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	0	0
Level III
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total financial assets (liabilities)	0	0
Level III | Foreign Exchange Forward
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Derivative asset	0	0
Derivative liabilities	0	0
Level III | Money Market Funds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash equivalents	0	0
Level III | US Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Marketable securities	$ 0	$ 0

Stockholders' Equity - Composit

Stockholders' Equity - Composition of Common Stock (Details)	Dec. 31, 2021؋ / sharesshares	Dec. 31, 2021$ / sharesshares	Dec. 31, 2020؋ / sharesshares	Dec. 31, 2020$ / sharesshares
Equity [Abstract]
Common stock, par value (in usd per share) | (per share)	؋ 0.001	$ 0.001	؋ 0.001	$ 0.001
Common stock, shares authorized (in shares)	200,000,000	200,000,000	200,000,000	200,000,000
Common stock, shares, issued (in shares)	107,509,096	107,509,096	95,456,862	95,456,862
Common stock, shares, outstanding (in shares)	107,509,096	107,509,096	95,456,862	95,456,862

Stockholders' Equity (Details T

Stockholders' Equity (Details Textual) $ / shares in Units, $ in Thousands

Mar. 12, 2021

Feb. 16, 2021USD ($)$ / sharesshares

Jun. 30, 2015shares

Nov. 14, 2013shares

Dec. 31, 2021USD ($)voteshares

Dec. 31, 2020USD ($)

Dec. 31, 2019USD ($)

Dec. 31, 2021؋ / sharesshares

Dec. 31, 2021؋ / sharesshares

Dec. 31, 2021USD ($)$ / sharesshares

Dec. 31, 2020؋ / shares

Dec. 31, 2020USD ($)$ / sharesshares

Dec. 31, 2013shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock, shares authorized (in shares)

200,000,000

200,000,000

Common stock, par value (in usd per share) | (per share)

؋ 0.001

؋ 0.001

$ 0.001

؋ 0.001

$ 0.001

Number of voting rights | vote

1

Stock split, conversion ratio

3

Granted (in shares)

0

Exercises in period, intrinsic value | $

$ 13,153

$ 9,922

$ 12,453

Compensation cost not yet recognized | $

$ 496

$ 810

Public Stock Offering

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Sale of stock, number of shares issued in transaction (shares)

7,961,538

Sale of stock, price per share (usd per share) | $ / shares

$ 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 (shares)

1,038,459

Share-based Payment Arrangement, Option

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Compensation cost not yet recognized, period for recognition

1 year 9 months 18 days

2 years 8 months 19 days

Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period (years)

3 years

Restricted Stock Units and Performance Stock Units

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Compensation cost not yet recognized | $

$ 265,345

$ 141,408

Compensation cost not yet recognized, period for recognition

2 years 29 days

2 years 1 month 13 days

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

Vesting period (in years)

4 years

Granted (in shares)

0

0

Available for grant (in shares)

0

The 2005 Stock Plan | Consultants

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted (in shares)

0

The 2013 Omnibus Equity Award Plan

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Common stock, capital shares reserved for future issuance (in shares)

5,713,899

Vesting period (in years)

4 years

Granted (in shares)

0

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)

24,217,741

The 2013 Omnibus Equity Award Plan | Consultants

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Granted (in shares)

0

The 2013 Omnibus Equity Award Plan | Performance Shares

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Vesting period (in years)

1 year

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)

3,004,765

Stockholders' Equity - Stock Op

Stockholders' Equity - Stock Options Activities (Details) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021USD ($)$ / sharesshares	Dec. 31, 2020USD ($)$ / sharesshares
Number
Options outstanding at the beginning of the year (in shares) | shares	1,022,763
Granted (in shares) | shares	0
Exercised (in shares) | shares	(215,893)
Forfeited (in shares) | shares	(3,000)
Options outstanding at the end of the period (in shares) | shares	803,870	1,022,763
Options exercisable at the end of the year (in shares) | shares	787,775
Weighted average exercise price
Options outstanding at the beginning of the year, 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	6.128
Forfeited, weighted average exercise price (in dollars per share) | $ / shares	2.077
Options outstanding at the end of the period, weighted average exercise price (in dollars per share) | $ / shares	7.077	$ 6.862
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.106
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding at the beginning of the year, aggregate intrinsic value | $	$ 33,524	$ 47,417
Options exercisable at the end of the year, aggregate intrinsic value | $	$ 32,830
Options outstanding at the beginning of the year, weighted average remaining contractual life (Year)	2 years 9 months	3 years 5 months 12 days
Options exercisable at the end of the year, weighted average remaining contractual life (Year)	2 years 7 months 20 days

Stockholders' Equity - Options

Stockholders' Equity - Options Outstanding Separated Into Range of Exercise Price (Details)	12 Months Ended
	Dec. 31, 2021$ / sharesshares
Class of Stock [Line Items]
Exercise price range, number of outstanding options (in shares) | shares	803,870,000
Exercise price range, outstanding options, weighted average remaining contractual term (in years)	2 years 9 months
Exercise price range, outstanding options, weighted average exercise price (in usd per share)	$ 7.077
Exercise price range, number of exercisable options (in shares) | shares	787,775,000
Exercise price range, exercisable options, weighted average remaining contractual term (in years)	2 years 7 months 20 days
Exercise price range, exercisable options, weighted average exercise price (in usd per share)	$ 7.106
Range One
Class of Stock [Line Items]
Exercise price range, lower range limit (in usd per share)	4.157
Exercise price range, upper range limit (in usd per share)	$ 5.682
Exercise price range, number of outstanding options (in shares) | shares	224,661,000
Exercise price range, outstanding options, weighted average remaining contractual term (in years)	2 years 11 months 15 days
Exercise price range, outstanding options, weighted average exercise price (in usd per share)	$ 4.883
Exercise price range, number of exercisable options (in shares) | shares	208,566,000
Exercise price range, exercisable options, weighted average remaining contractual term (in years)	2 years 6 months 21 days
Exercise price range, exercisable options, weighted average exercise price (in usd per share)	$ 4.808
Range Two
Class of Stock [Line Items]
Exercise price range, lower range limit (in usd per share)	6.503
Exercise price range, upper range limit (in usd per share)	$ 8.077
Exercise price range, number of outstanding options (in shares) | shares	433,307,000
Exercise price range, outstanding options, weighted average remaining contractual term (in years)	2 years 6 months 21 days
Exercise price range, outstanding options, weighted average exercise price (in usd per share)	$ 7.111
Exercise price range, number of exercisable options (in shares) | shares	433,307,000
Exercise price range, exercisable options, weighted average remaining contractual term (in years)	2 years 6 months 21 days
Exercise price range, exercisable options, weighted average exercise price (in usd per share)	$ 7.111
Range Three
Class of Stock [Line Items]
Exercise price range, number of outstanding options (in shares) | shares	120,180,000
Exercise price range, outstanding options, weighted average remaining contractual term (in years)	3 years 1 month 20 days
Exercise price range, outstanding options, weighted average exercise price (in usd per share)	$ 9.960
Exercise price range, number of exercisable options (in shares) | shares	120,180,000
Exercise price range, exercisable options, weighted average remaining contractual term (in years)	3 years 1 month 20 days
Exercise price range, exercisable options, weighted average exercise price (in usd per share)	$ 9.960
Range Four
Class of Stock [Line Items]
Exercise price range, number of outstanding options (in shares) | shares	25,722,000
Exercise price range, outstanding options, weighted average remaining contractual term (in years)	2 years 2 months 19 days
Exercise price range, outstanding options, weighted average exercise price (in usd per share)	$ 13.287
Exercise price range, number of exercisable options (in shares) | shares	25,722,000
Exercise price range, exercisable options, weighted average remaining contractual term (in years)	2 years 2 months 19 days
Exercise price range, exercisable options, weighted average exercise price (in usd per share)	$ 13.287

Stockholders' Equity - Outstand

Stockholders' Equity - Outstanding Options Granted to Consultants for Sales and Pre-marketing Services (Details)	12 Months Ended	96 Months Ended
	Dec. 31, 2021$ / sharesshares	Dec. 31, 2021$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	787,775	787,775
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.106	$ 7.106
Granted (in shares)	0
The 2005 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0	0
The 2013 Omnibus Equity Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0
Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	26,250	26,250
Consultants | The 2005 Stock Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0
Consultants | The 2013 Omnibus Equity Award Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Granted (in shares)	0
August 2013 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	6,000	6,000
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.047	$ 7.047
Exercisable through	August 2023
March 2014 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	4,950	4,950
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 13.287	$ 13.287
Exercisable through	March 2024
May 2014 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	3,000	3,000
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.337	$ 7.337
Exercisable through	May 2024
November 2014 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	9,300	9,300
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 7.220	$ 7.220
Exercisable through	November 2024
February 2016 | Consultants
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options exercisable at the end of the year (in shares)	3,000	3,000
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares	$ 5.623	$ 5.623
Exercisable through	February 2026

Stockholders' Equity - Restrict

Stockholders' Equity - Restricted Stock Unit Activity (Details) - Restricted Stock Units and Performance Stock Units	12 Months Ended
	Dec. 31, 2021$ / sharesshares
Number of Shares Underlying Outstanding Restricted Stock Units and Performance Stock Units
Balance, restricted stock units (in shares) | shares	8,388,963
Granted, restricted stock units (in shares) | shares	3,542,175
Vested, restricted stock units (in shares) | shares	(3,615,077)
Forfeited, restricted stock units (in shares) | shares	(589,936)
Balance, restricted stock units (in shares) | shares	7,726,125
Weighted- Average Grant Date Fair Value
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	65.25
Vested, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	20.10
Forfeited, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	38.10
Balance, weighted average grant date fair value on restricted stock units (in dollars per share) | $ / shares	$ 42.53

Stockholders' Equity - Non-cash

Stockholders' Equity - Non-cash Stock-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 109,779	$ 68,585	$ 46,139
Cost of revenues
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	8,995	5,013	2,561
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	36,033	21,979	13,188
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	39,684	25,578	14,782
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation	$ 25,067	$ 16,015	$ 15,608

Income Taxes (Details Textual)

Income Taxes (Details Textual) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Tax Credit Carryforward [Line Items]
Valuation allowance, deferred tax asset, increase (decrease), amount	$ 41,340	$ 14,943
Unrecognized tax benefits	9,540	$ 4,690	$ 3,201
Unrecognized tax benefits that would impact effective tax rate	5,762
Unrecognized tax benefits, income tax penalties and interest expense	578
Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	318,321
Operating loss carryforwards, subject to expiration	22,907
State and Local Jurisdiction
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	201,029
Operating loss carryforwards, subject to expiration	172,131
Foreign Tax Authority
Tax Credit Carryforward [Line Items]
Operating loss carryforwards	3,870
Deferred income tax liabilities	$ 97
Israel Tax Authority | Foreign Tax Authority | VSL | Minimum
Tax Credit Carryforward [Line Items]
Tax rate for amount of dividends distributed, other than complete liquidation	10.00%
Israel Tax Authority | Foreign Tax Authority | VSL | Maximum
Tax Credit Carryforward [Line Items]
Tax rate for amount of dividends distributed, other than complete liquidation	25.00%
Research Tax Credit Carryforward | Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	$ 1,412
Retention | Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	24
Foreign Tax Credit | Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	190
Ireland Employment | Domestic Tax Authority
Tax Credit Carryforward [Line Items]
Tax credit carryforward, amount	$ 19

Income Taxes - Schedule of Prof

Income Taxes - Schedule of Profit (Loss) Before Taxes on Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Domestic	$ (101,245)	$ (80,086)	$ (82,007)
Foreign	(9,594)	(5,812)	5,631
Loss before income taxes	$ (110,839)	$ (85,898)	$ (76,376)

Income Taxes - Schedule of Inco

Income Taxes - Schedule of Income Taxes on Loss (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ (549)	$ 90	$ 665
State	145	128	13
Foreign	5,182	8,854	1,619
Total current income tax	4,778	9,072	2,297
Deferred:
Federal	43	8	0
State	6	1	0
Foreign	1,195	(969)	91
Total deferred income tax	1,244	(960)	91
Income tax expense	$ 6,022	$ 8,112	$ 2,388

Income Taxes - Schedule of Defe

Income Taxes - Schedule of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Carry forward losses and credits	$ 82,530	$ 53,221
Deferred revenues	11,628	13,054
Accrued payroll, commissions, vacation	6,867	3,808
Equity compensation	18,469	10,348
Allowance for credit losses	1,711	1,287
Accrued severance pay	391	312
Operating lease liability	14,453	11,302
Other	512	963
Deferred tax assets before valuation allowance	136,561	94,295
Valuation allowance	(118,882)	(77,542)
Deferred tax assets	17,679	16,753
Deferred tax liability:
Accrued compensation and other accrued expense	0	(48)
Operating lease right-of-use asset	(12,478)	(8,780)
Convertible senior notes, net	(5,298)	(6,797)
Deferred tax liability	(17,776)	(15,625)
Net deferred tax asset (liability)	$ (97)
Net deferred tax asset (liability)		$ 1,128

Income Taxes - Schedule of Reco

Income Taxes - Schedule of Reconciliation of Theoretical Tax Expense and Actual Tax Expense (Benefit) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Loss before taxes, as reported in the consolidated statements of operations	$ (110,839)	$ (85,898)	$ (76,376)
Statutory tax rate	21.00%	21.00%	21.00%
Theoretical tax benefits on the above amount at the US statutory tax rate	$ (23,276)	$ (18,039)	$ (16,039)
Income tax at rate other than the U.S. statutory tax rate	(2,621)	4,845	(2,508)
Tax advances and non-deductible expenses including equity based compensation expenses	(8,533)	934	(115)
Operating losses and other temporary differences for which valuation allowance was provided	41,340	22,189	22,818
State tax	(2,945)	(2,872)	(3,436)
Impact of rate change	(2,568)	0	401
Change in tax reserve for uncertain tax positions	4,850	1,489	1,247
Other individually immaterial income tax items	(225)	(434)	20
Income tax expense	$ 6,022	$ 8,112	$ 2,388

Income Taxes - Reconciliation o

Income Taxes - Reconciliation of Beginning and Ending Amount of Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Gross unrecognized tax benefits	$ 4,690	$ 3,201
Increase in tax position for current year	4,335	1,787
Increase in tax position for prior years	3,624	979
Decrease in tax position for prior years	(870)	(171)
Decrease for lapse of statute of limitations/settlements	(2,239)	(1,106)
Gross unrecognized tax benefits	$ 9,540	$ 4,690

Financial Expenses, Net - Summa

Financial Expenses, Net - Summary of Financial Income and Expenses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Financial Income (Expenses), Net [Abstract]
Interest on bank deposits & other	$ 164	$ 674	$ 2,041
Financial income	164	674	2,041
Amortization of debt discount and issuance costs	6,870	4,096	0
Interest expenses, principally from convertible note	3,168	2,017	0
Foreign currency transaction losses, net	1,699	1,726	2,225
Bank and other charges	572	318	205
Financial expenses	(12,309)	(8,157)	(2,430)
Total	$ (12,145)	$ (7,483)	$ (389)

Geographic Information and Ma_3

Geographic Information and Major Customer Data (Details Textual) - segment	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Number of reportable segments	1
France | Revenue Benchmark | Geographic Concentration Risk
Segment Reporting Information [Line Items]
Concentration risk, percentage	10.50%	10.60%

Geographic Information and Ma_4

Geographic Information and Major Customer Data - Revenues Within Geographical Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Segment Reporting Information [Line Items]
Revenue	$ 390,134	$ 292,689	$ 254,190
North America
Segment Reporting Information [Line Items]
Revenue	279,104	207,488	174,607
EMEA
Segment Reporting Information [Line Items]
Revenue	101,694	77,093	70,208
Rest of World
Segment Reporting Information [Line Items]
Revenue	$ 9,336	$ 8,108	$ 9,375

Geographic Information and Ma_5

Geographic Information and Major Customer Data - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Long-lived assets	$ 102,047	$ 85,087
United States
Segment Reporting Information [Line Items]
Long-lived assets	43,317	30,938
Israel
Segment Reporting Information [Line Items]
Long-lived assets	40,169	42,471
Ireland
Segment Reporting Information [Line Items]
Long-lived assets	16,341	9,684
Other
Segment Reporting Information [Line Items]
Long-lived assets	$ 2,220	$ 1,994