Cover Page
Cover Page - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Document Type | 20-F | |
Document Registration Statement | false | |
Document Annual Report | true | |
Document Period End Date | Dec. 31, 2023 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Document Shell Company Report | false | |
Entity File Number | 001-36158 | |
Entity Registrant Name | WIX.COM LTD. | |
Entity Incorporation, State or Country Code | L3 | |
Entity Address, Address Line One | 5 Yunitsman St. | |
Entity Address, City or Town | Tel Aviv, | |
Entity Address, Postal Zip Code | 6936025 | |
Entity Address, Country | IL | |
Title of 12(b) Security | Ordinary shares, par value NIS 0.01 per share | |
Trading Symbol | WIX | |
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 Emerging Growth Company | false | |
ICFR Auditor Attestation Flag | true | |
Document Accounting Standard | U.S. GAAP | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | FY | |
Entity Central Index Key | 0001576789 | |
Entity Common Stock, Shares Outstanding | 57,172,595 | |
Common stock, shares outstanding (in shares) | 56,305,462 | |
Document Financial Statement Error Correction [Flag] | false | |
Business Contact | ||
Entity Address, Address Line One | 5 Yunitsman St. | |
Entity Address, City or Town | Tel Aviv | |
Entity Address, Postal Zip Code | 6936025 | |
Entity Address, Country | IL | |
Contact Personnel Name | Naama Kaenan, Adv. | |
City Area Code | 972 (3) | |
Local Phone Number | 545-4900 | |
Contact Personnel Email Address | naamak@wix.com |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Auditor Information [Abstract] | |
Auditor Firm ID | 1281 |
Auditor Location | Tel-Aviv, Israel |
Auditor Name | KOST FORER GABBAY & KASIERER |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 609,622 | $ 244,686 |
Short-term deposits | 212,709 | 526,328 |
Restricted deposits | 2,125 | 13,669 |
Marketable securities | 140,563 | 292,449 |
Trade receivables | 57,394 | 42,086 |
Prepaid expenses and other current assets | 47,792 | 28,519 |
Total current assets | 1,070,205 | 1,147,737 |
LONG-TERM ASSETS: | ||
Prepaid expenses and other long-term assets | 34,296 | 23,027 |
Property and equipment, net | 136,928 | 108,738 |
Marketable securities | 64,806 | 194,964 |
Intangible assets, net | 28,010 | 33,964 |
Goodwill | 49,329 | 49,329 |
Operating lease right-of-use assets | 420,562 | 200,608 |
Total long-term assets | 733,931 | 610,630 |
TOTAL ASSETS | 1,804,136 | 1,758,367 |
CURRENT LIABILITIES: | ||
Trade payables | 38,305 | 96,071 |
Employees and payroll accruals | 56,581 | 86,113 |
Deferred revenues | 592,608 | 529,205 |
Current portion of convertible notes, net | 0 | 361,621 |
Accrued expenses and other current liabilities | 76,556 | 88,194 |
Operating lease liabilities | 24,981 | 29,268 |
Total current liabilities | 789,031 | 1,190,472 |
LONG-TERM LIABILITIES: | ||
Net carrying amount | 569,714 | 566,566 |
Long-term deferred revenues | 83,384 | 70,594 |
Long-term deferred tax liabilities | 7,167 | 14,902 |
Other long-term liabilities | 7,699 | 6,093 |
Long-term operating lease liabilities | 401,626 | 172,982 |
Total long-term liabilities | 1,069,590 | 831,137 |
Total liabilities | 1,858,621 | 2,021,609 |
Commitments and contingencies | ||
SHAREHOLDERS' DEFICIENCY: | ||
Ordinary shares of NIS 0.01 par value - Authorized: 500,000,000 shares at December 31, 2023 and 2022; Issued 62,189,407 and 59,973,409 shares at December 31, 2023 and 2022, respectively; Outstanding: 57,172,595 and 56,305,462 shares at December 31, 2023 and 2022, respectively | 110 | 108 |
Additional paid-in capital | 1,539,952 | 1,274,968 |
Treasury shares at cost, 5,016,812 ordinary shares as of December 31, 2023 and 3,667,947 as of December 31, 2022 | (558,875) | (431,862) |
Accumulated other comprehensive income (loss) | 4,192 | (33,455) |
Accumulated deficit | (1,039,864) | (1,073,001) |
Total shareholders' deficiency | (54,485) | (263,242) |
TOTAL LIABILITIES AND SHAREHOLDERS' DEFICIENCY | $ 1,804,136 | $ 1,758,367 |
Common stock, par or stated value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Treasury Stock, Common, Shares | 5,016,812 | 3,667,947 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par or stated value per share (in USD per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 62,189,407 | 59,973,409 |
Common stock, shares outstanding (in shares) | 56,305,462 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 1,561,665 | $ 1,387,666 | $ 1,269,657 |
Cost of Revenues | 512,528 | 526,227 | 488,579 |
Gross profit | 1,049,137 | 861,439 | 781,078 |
Research and development, net | 481,293 | 482,861 | 424,937 |
Selling and marketing | 399,577 | 492,886 | 512,027 |
General and administrative | 160,033 | 171,045 | 169,648 |
Restructuring, Settlement and Impairment Provisions | 32,614 | 0 | 0 |
Total operating expenses | 1,073,517 | 1,146,792 | 1,106,612 |
Operating loss | (24,380) | (285,353) | (325,534) |
Financial income (expenses), net | 62,474 | (183,513) | 271,943 |
Other income (expenses) | (255) | 1,023 | 584 |
Income (loss) before taxes on income | 37,839 | (467,843) | (53,007) |
Income tax expense (benefit) | 4,702 | (42,980) | 64,202 |
Net income (loss) | 33,137 | (424,863) | (117,209) |
Other comprehensive income (loss): | |||
Unrealized gain (loss) from marketable securities, net | 8,593 | (10,756) | (4,701) |
Unrealized gain (loss) on cash flow hedge, net | 29,054 | (21,643) | (5,761) |
Other comprehensive income (loss) for the year, net | 37,647 | (32,399) | (10,462) |
Total comprehensive loss | $ 70,784 | $ (457,262) | $ (127,671) |
Basic net loss per ordinary share (in USD per share) | $ 0.58 | $ (7.33) | $ (2.06) |
Diluted net loss per ordinary share (in USD per share) | $ 0.57 | $ (7.33) | $ (2.06) |
Creative Subscriptions | |||
Revenues | $ 1,152,007 | $ 1,039,479 | $ 950,299 |
Cost of Revenues | 215,515 | 251,587 | 232,619 |
Business Solutions | |||
Revenues | 409,658 | 348,187 | 319,358 |
Cost of Revenues | $ 297,013 | $ 274,640 | $ 255,960 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary Shares | Additional paid-in Capital | Other comprehensive Income (loss) | Accumulated deficit | Treasury Stock, Common |
Shares outstanding, beginning balance (in shares) at Dec. 31, 2020 | 56,027,758 | |||||
Total shareholders' equity, beginning balance at Dec. 31, 2020 | $ 287,191 | $ 107 | $ 862,134 | $ 9,406 | $ (584,456) | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Early adoption of ASU 2020-06 as of January 1, 2021 | (162,185) | $ 0 | (215,712) | 0 | 53,527 | 0 |
Exercise of options, ESPP shares and vesting of RSUs (in shares) | 1,560,797 | |||||
Exercise of options, ESPP shares and vesting of RSUs | 47,451 | $ 5 | 47,446 | 0 | 0 | 0 |
Share-based compensation | 221,980 | $ 0 | 221,980 | 0 | 0 | 0 |
Treasury Shares (in shares) | (895,136) | |||||
Purchase of treasury shares | (200,000) | $ (3) | 0 | 0 | 0 | (199,997) |
Conversion of Convertible senior notes 2023 (in shares) | 560,770 | |||||
Conversion of Convertible senior notes 2023 | 78,949 | $ 2 | 78,947 | 0 | 0 | 0 |
Other comprehensive income | (10,462) | 0 | 0 | (10,462) | 0 | 0 |
Net income (loss) | (117,209) | $ 0 | 0 | 0 | (117,209) | 0 |
Shares outstanding, ending balance (in shares) at Dec. 31, 2021 | 57,254,189 | |||||
Total shareholders' equity, ending balance at Dec. 31, 2021 | 145,715 | $ 111 | 994,795 | (1,056) | (648,138) | (199,997) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of options, ESPP shares and vesting of RSUs (in shares) | 1,824,084 | |||||
Exercise of options, ESPP shares and vesting of RSUs | 42,710 | $ 5 | 42,705 | 0 | 0 | 0 |
Share-based compensation | 237,468 | $ 0 | 237,468 | 0 | 0 | 0 |
Treasury Shares (in shares) | (2,772,811) | |||||
Purchase of treasury shares | (231,873) | $ (8) | 0 | 0 | 0 | (231,865) |
Other comprehensive income | (32,399) | 0 | 0 | (32,399) | 0 | 0 |
Net income (loss) | (424,863) | $ 0 | 0 | 0 | (424,863) | 0 |
Shares outstanding, ending balance (in shares) at Dec. 31, 2022 | 56,305,462 | |||||
Total shareholders' equity, ending balance at Dec. 31, 2022 | (263,242) | $ 108 | 1,274,968 | (33,455) | (1,073,001) | (431,862) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Exercise of options, ESPP shares and vesting of RSUs (in shares) | 2,215,998 | |||||
Exercise of options, ESPP shares and vesting of RSUs | 39,660 | $ 6 | 39,654 | 0 | 0 | 0 |
Share-based compensation | 225,330 | $ 0 | 225,330 | 0 | 0 | 0 |
Treasury Shares (in shares) | (1,348,865) | |||||
Purchase of treasury shares | (127,017) | $ (4) | 0 | 0 | 0 | (127,013) |
Other comprehensive income | 37,647 | 0 | 0 | 37,647 | 0 | 0 |
Net income (loss) | 33,137 | $ 0 | 0 | 0 | 33,137 | 0 |
Shares outstanding, ending balance (in shares) at Dec. 31, 2023 | 57,172,595 | |||||
Total shareholders' equity, ending balance at Dec. 31, 2023 | $ (54,485) | $ 106 | $ 1,539,952 | $ 4,192 | $ (1,039,864) | $ (558,871) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net income (loss) | $ 33,137 | $ (424,863) | $ (117,209) |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation | 20,492 | 16,611 | 13,929 |
Amortization | 5,954 | 6,246 | 4,952 |
Share based compensation expenses | 224,625 | 236,836 | 221,391 |
Amortization of debt issuance costs | 4,194 | 5,213 | 5,298 |
Changes in accrued interest and exchange rate on short-term and long-term deposits | (2,415) | (86) | (20) |
Non-cash impairment, restructuring and other costs | 26,699 | 0 | 0 |
Amortization of premium and discount and accrued interest on marketable debt securities, net | 8,346 | 6,252 | 7,843 |
Remeasurement loss (gain) on marketable equity securities and investments in privately held companies | (30,608) | 200,338 | (166,323) |
Changes in deferred income taxes, net | (8,784) | (57,865) | 54,454 |
Changes in operating lease right-of-use assets | 27,231 | 45,440 | 28,441 |
Changes in operating lease liabilities | (31,333) | (45,051) | (26,688) |
Increase in trade receivables | (15,308) | (11,719) | (6,250) |
Increase in prepaid expenses and other current and long-term assets | (20,105) | (5,912) | (98,468) |
Increase (decrease) in trade payables | (52,455) | (18,514) | 26,595 |
Increase (decrease) in employees and payroll accruals | (29,532) | 2,862 | 19,391 |
Increase in short-term and long-term deferred revenues | 76,193 | 55,387 | 82,361 |
Increase in accrued expenses and other current liabilities | 11,915 | 25,977 | 15,988 |
Net cash provided by operating activities | 248,246 | 37,152 | 65,685 |
Cash flows from investing activities: | |||
Proceeds from short-term and restricted deposits | 625,495 | 644,809 | 732,015 |
Investment in short-term and restricted deposits | (297,917) | (766,021) | (572,631) |
Investment in marketable debt securities | (6,732) | (202,611) | (29,377) |
Proceeds from marketable debt securities | 250,960 | 290,113 | 312,201 |
Purchase of property and equipment and lease prepayment | (63,021) | (68,554) | (35,770) |
Capitalization of internal use of software | (3,028) | (2,110) | (1,930) |
Payments for businesses acquired, net of acquired cash | 0 | 0 | (42,729) |
Proceeds from sale of marketable equity securities | 68,671 | 51,596 | 18,771 |
Purchases of investments in privately held companies | (7,603) | (1,300) | (3,681) |
Investment in other assets | (111) | (580) | 0 |
Net cash provided by (used in) investing activities | 566,714 | (54,658) | 376,869 |
Cash flows from financing activities: | |||
Repayment of convertible notes | (362,667) | 0 | 0 |
Purchase of treasury shares | (127,017) | (231,873) | (200,000) |
Proceeds from exercise of options and ESPP shares | 39,660 | 42,710 | 39,943 |
Net cash used in financing activities | (450,024) | (189,163) | (160,057) |
Increase (decrease) in cash and cash equivalents | 364,936 | (206,669) | 282,497 |
Cash and cash equivalents at the beginning of the year | 244,686 | 451,355 | 168,858 |
Cash and cash equivalents at the end of the year | 609,622 | 244,686 | 451,355 |
Supplemental disclosure of cash flow activities: | |||
Cash paid during the year for taxes | 12,410 | 11,422 | 6,523 |
Interest received during the year | 47,696 | 23,727 | 20,154 |
Supplemental information for non-cash transactions | |||
Right-of-use assets obtained in exchange for operating lease liabilities | 255,690 | 142,496 | 41,130 |
Non-cash purchase of property and equipment | 3,750 | 9,368 | 9,324 |
Conversion of convertible notes | $ 0 | $ 0 | $ 78,949 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL Wix.com Ltd., an Israeli corporation (was incorporated in October, 2006), and its subsidiaries (collectively, the “Company” or “Wix”), was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Wix is a leading, global, web development platform for millions of creators, delivering its solutions through a Software-as-a-Service (SaaS) model. Since its founding, Wix has developed and launched multiple innovative products, services, and business solutions that empower any business, organization or brand worldwide to create, manage and grow a fully integrated and dynamic digital presence. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The accounting estimates that require management’s subjective judgments include, but are not limited to, those related to revenue recognition, income taxes, share-based compensation, lease accounting, and purchase price allocation on acquisitions including the determination of useful lives. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates. b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances, have been eliminated upon consolidation. c. Foreign currency translation and transactions: A substantial portion of the Company's financing activities, including equity transactions, cash investments, costs and revenues are generated in U.S. dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances that are denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with principles set forth in Accounting Standard Codification ("ASC") Topic 830, Foreign Currency Matters (“ASC 830"). NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) In accordance with ASC 830, monetary assets and liabilities denominated in foreign currencies are remeasured into U.S. dollars at the end of each reporting period using the exchange rates in effect at the balance sheet date. Non-monetary assets denominated in foreign currencies are measured using historical exchange rates. Gains and losses resulting from remeasurement are generally recorded in the statement of comprehensive income (loss) as financial income or expenses, as appropriate. d. Cash and cash equivalents: Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. Cash equivalents generally consist of investments in money market funds and are carried at fair value. e. Short-term deposits: Short-term deposits are deposits with maturities over three months from the date of purchase and of up to one year. As of December 31, 2023 and 2022, the Company's bank deposits were mainly denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 6.6% and 5.70%, respectively. Short-term deposits are presented at their cost, including accrued interest. f. Restricted deposits: Restricted deposits are deposits with maturities of up to one year and are used as security for the rental of premises and for the Company's credit cards. As of December 31, 2023 and 2022, the Company's bank deposits were denominated in U.S. dollars and bore interest at weighted average interest rates of 2.0% and 2.2%, respectively. Restricted deposits are presented at their cost, including accrued interest. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) g. Marketable securities: Marketable securities consist of investments in debt securities and in equity securities with readily determinable fair values. The Company accounts for investments in marketable debt securities in accordance with ASC Topic 320, Investments - Debt Securities (“ASC 320”). The Company’s marketable debt securities consist of U.S. treasury bonds, certificate of deposits, sovereign bonds, municipal bonds and corporate bonds. Marketable debt securities are classified as available for sale at the time of purchase. Available-for-sale securities are carried at fair value based on quoted market prices, with the unrealized gains and non-credit related losses, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income (expenses), net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion, together with interest on securities, are included in financial income (expenses), net. The Company periodically evaluates its available-for-sale debt securities for credit losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income (expenses), net when the impairment is incurred. During the years ended December 31, 2023, 2022 and 2021, credit loss impairments were immaterial. The Company classifies its marketable debt securities as either short-term or long-term based on each instruments’ underlying contractual maturity date as well as the intended time of realization. Marketable debt securities with maturities of 12 months or less are classified as short-term, and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value with the related gains and losses, including unrealized, recognized in financial income (expenses), net. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) h. Property and equipment, net: Property and equipment assets are stated at cost, net of accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and electronic equipment 15 - 33 (mainly 33) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset The carrying amounts of property and equipment are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying amount. If such assets are considered to be impaired, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. During the year ended December 31, 2023, the Company recorded an impairment charge for certain leasehold improvements. See Note 18 for further information. No impairment was recognized in the other periods presented. i. Business combinations: The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill. Upon the end of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever occurs earlier, any subsequent adjustments would be recorded in the statement of comprehensive income (loss). Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company accounts for acquisitions that do not meet the definition of a business as an asset acquisition. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) j. Goodwill and intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Under ASC Topic 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill is not amortized, but rather is subject to impairment test at least annually. The Company elected to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level, by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the Company carries out a quantitative test for impairment of goodwill, by comparing the fair value of the reporting unit with the carrying amount of the reporting unit that includes goodwill. The Company may bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test. The Company operates as one reporting segment, and this segment comprises its only reporting unit. Therefore, goodwill is tested for impairment at that level. The Company did not record goodwill impairment charges during any of the periods presented. Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets as follows: Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years Amortization is recorded into cost of revenues or operating expenses, depending on the nature of the asset. The carrying amounts of these assets are reviewed for impairment in accordance with ASC 360 whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying amount. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) If the estimated undiscounted future cash flows associated with the asset or asset group are less than the carrying amount, an impairment loss will be recorded based on the estimated fair value. There were no impairment charges during any of the periods presented. k. Investments in privately held companies: The Company holds equity investments in private companies without readily determinable market values, in which it does not have control or significant influence. The Company accounts for these equity investments under ASC 321, using the measurement alternative, which is cost, less any impairment, adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. The investments are reviewed periodically to determine if their respective values have appreciated or have been impaired, and adjustments are recorded as necessary on a non-recurring basis. The investments are presented in the Company’s consolidated balance sheets as part of prepaid expenses and other long-term assets. The carrying amounts the Company’s equity investments in privately held companies without readily determinable market values as of December 31, 2023 and 2022, were $21,310 and $9,950, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company recorded in financial income (expenses), net unrealized gains of $4,156, $174, and $2,833, respectively, related to revaluation of its equity investments in privately held companies based on observable price changes. During the years ended December 31, 2023 and 2022, the Company recorded impairment charges of $400 and $3,000, respectively, in connection with certain equity investments. No unrealized losses or impairments were recognized during the year ended December 31, 2021. As of December 31, 2023, cumulative unrealized gains related to investments in privately held companies without readily determinable market values were $8,276. As of this date, cumulative unrealized losses and impairments were $3,400. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) l. Derivatives instruments: The Company enters into foreign currency contracts, primarily forward and option contracts, with financial institutions to protect against foreign exchange risks. In accordance with ASC Topic 815, Derivatives and Hedging ("ASC 815"), the Company recognizes all derivative instruments as either assets or liabilities at their respective fair values. Derivative instruments are recorded as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the consolidated balance sheets. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative. Derivative instruments designated as hedging instruments: The Company has instituted a foreign currency cash flow hedging program, to hedge the risk of overall changes in cash flows resulting mainly from foreign currency salary payments. The Company hedges portions of its forecasted salary payments denominated in NIS, using options and forward contracts that are designated as cash flow hedges, as defined by ASC 815. For these derivative instruments, gains and losses are reported as a component of other comprehensive income (loss) and subsequently recognized in earnings with the corresponding hedged item. Cash flows related to these derivatives are classified in the consolidated statements of cash flows in the same manner as the underlying hedged transaction, typically within cash flows from operating activities. The fair value of derivative assets designated as hedging instruments as of December 31, 2023 and 2022, totaled $14,068 and $0, respectively. The fair value of derivative liabilities designated as hedging instruments as of December 31, 2023 and 2022, totaled $5,374 and $21,471, respectively. As of December 31, 2023 and 2022, the net unrealized gains (losses) related to foreign currency contracts designated as hedging instruments, that were accumulated in other comprehensive income (loss), were $8,717 and $(21,383), respectively. These amounts are expected to be reclassified into earnings over the next 20 months. As of December 31, 2023 and 2022, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $496,129 and $382,969, respectively. These contracts will expire over the next 20 months. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedging instruments in cash flow hedges discussed above, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Japanese Yen and Israeli Shekel. Gains and losses related to such derivative instruments are recorded in financial income (expenses), net. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. The fair value of derivative assets not designated as hedging instruments as of December 31, 2023 and 2022, totaled $991 and $0, respectively. The fair value of derivative liabilities not designated as hedging instruments as of December 31, 2023 and 2022, totaled $2,494 and $10,724, respectively. In the years ended December 31, 2023, 2022 and 2021, the Company recorded financial income (expenses), net, from economically hedge transactions, in the amount of $(6,998), $9,747 and $6,408, respectively. As of December 31, 2023 and 2022, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $36,779 and $156,404, respectively. These contracts will expire over the next 12 months. m. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expense for the years ended December 31, 2023, 2022 and 2021, amounted to $22,537, $24,987 and $22,413 , respectively. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) n. U.S. employees defined contribution plan: The U.S. Subsidiary has a 401(k) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100%, but generally not greater than $22.50 per year (for certain employees over 50 years of age the maximum contribution is $30 per year), of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The U.S. Subsidiary matches 4% of employee contributions up to the plan with no limitation. During the years ended December 31, 2023, 2022 and 2021, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $1,965, $2,672 and $2,271, respectively. o. Convertible Senior Notes: The Convertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) are accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options . Prior to January 1, 2021, before the adoption of ASU 2020-06, the Company separately accounted for the liability (debt) and equity (conversion option) components of the instrument, as the Convertible Notes may be settled wholly or partially in cash upon conversion. The carrying amount of the liability component was computed by estimating the fair value of a similar liability without the conversion option. The amount of the equity component was then calculated by deducting the fair value of the liability component from the principal amount of the instrument. This difference was accounted for as a debt discount that was amortized as interest expense over the respective terms of the Convertible Notes using an effective interest rate method. In accounting for the issuance costs related to the Convertible Notes, the allocation of issuance costs incurred between the liability and equity components was based on their relative values. On January 1 ,2021, the Company early adopted ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplified the guidance on issuer’s accounting for convertible debt, using the modified retrospective approach . Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as a derivative. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The adoption eliminated the requirement to separately account for the liability and equity components of the Company’s Convertible Notes. The adoption resulted in a decrease to accumulated deficit of $53,527, a decrease to additional paid-in capital of $215,712, and an increase to Convertible Notes, net of $162,185. As of January 1, 2021, the Company accounts for the Convertible Notes at amortized cost, as a single unit of account on the balance sheet. The carrying value of the liability is represented by the face amount of the Convertible Notes, less debt offering costs, adjusted for any amortization of offering costs. Offering costs are being amortized as interest expense over the term of the Convertible Notes, using the effective interest rate method. p. Revenue recognition: The Company’s total revenues are comprised of revenues from Creative Subscriptions and revenues from Business Solutions. Creative Subscriptions revenues are generated from the sale of monthly, yearly and multi-year premium subscriptions for the Company’s website solutions, including Wix Studio, as well as from the sale of domain name registrations. Business Solutions revenues are generated from the sale of additional products and services that are offered to users to help them manage and grow their business online. These products and services include, among others, Wix Payments, Google Workspace, Ascend by Wix, and other applications sold through the Company’s App Market or elsewhere on its platform. The Company sells its products and services directly to end customers as well as through certain types of partners, including agencies and freelancers who build websites or applications for others, and resellers. This revenue recognition policy is consistent for sales generated directly with end customers and indirect sales generated through partners. Arrangements with the Company’s customers do not provide the customers with the right to take possession of the software supporting the Company’s platform at any time and are therefore accounted for as service contracts. In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these products or services. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Revenue is recognized net of allowances for refunds, consideration payable to customers, and any taxes collected from customers, which are subsequently remitted to governmental authorities. Refunds are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. The Company recognizes revenue by applying the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company typically invoices its customers in advance upon execution of the initial contract or subsequent renewal, and payments are typically received at the time of invoicing. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The Company applies the practical expedient in ASC 606 and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Certain arrangements with customers contain multiple distinct performance obligations. For these arrangements, the Company allocates the transaction price to each performance obligation based on its relative standalone selling price (SSP). The Company generally establishes SSPs based on observable selling prices. Creative Subscriptions Revenues from premium subscriptions are recognized on a straight-line basis over the service period. The Company offers a 14-day money back guaranty ("Guaranty Period") on new premium subscription. The Company considers such amount collected from new premium subscriptions as customer deposits until the end of the 14-day trial period. Revenues are recognized once the Guaranty Period has expired. Revenues related to the registration of domain names are recognized at a point in time upon the registration of the domain name, since that is when the Company transfers control and satisfies the performance obligation. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Business Solutions Revenues related to subscriptions and software applications developed by the Company are recognized mainly over time. Revenues related to Wix Payments earned from processing payments are recognized at the time of the transaction, and fees are determined based in part on a percentage of the Gross Payment Volume (“GPV”) processed plus a per transaction fee, where applicable. Revenues related to Google Workspace subscriptions, which are sold on a monthly or yearly basis, are recognized on a ratable basis over the subscription period. Revenues related to third-party software applications are generally recognized at a point in time upon sale of the application, since that is when the Company completes its obligation to facilitate the transfer between the customer and the third party. Principal versus agent considerations The Company follows the guidance provided in ASC 606 for determining whether it is a principal (i.e., report revenues on a gross basis) or an agent (i.e., report revenues on a net basis) in arrangements with customers that involve another party that contributes to providing specified products or services to a customer. The Company determines whether the nature of its promise is a performance obligation to provide the specified products or services itself (as a principal) or to arrange for those products or services to be provided by the other party (as an agent), based on whether it controls the specified products or services before they are transferred to the end customer. In making this determination, the Company evaluates indicators such as which party is primarily responsible for fulfillment and has discretion in determining pricing. This determination is reviewed for each specified product or service promised to the customer and may involve significant judgment. Revenues generated from the sale of domain name registrations and the sale of certain integrated solutions, including Google Workspace and Wix Payments, are typically recorded on a gross basis, meaning the amounts billed to customers are recorded as revenues and expenses incurred are recorded as cost of revenues, since the Company has determined that it controls the promised products or services before they are transferred to the end customer. Revenues generated from the sale of third-party software applications are typically recognized on a net basis, as the Company has determined that it is the agent in these arrangements. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Deferred revenues Contract liabilities consist of deferred revenues and primarily include payments received in advance of the Company’s performance under the contract. Deferred revenues are recognized as revenue when transfer of control to customers has occurred. The balance of deferred revenues, including current and long-term balances, as of December 31, 2023 and 2022 was $675,992 and $599,799, respectively. The change in the deferred revenues balance during the period primarily consisted of increases due to payments received in advance of performance, which were offset by decreases due to revenues recognized in the period. During the year ended December 31, 2023, the Company recognized approximately all of the revenue that was included in the current deferred revenues balance at the beginning of the period. Remaining performance obligation The Company’s remaining performance obligations represent revenue that has not yet been recognized and include deferred revenues and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2023 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $731,508. As of December 31, 2023 , the Company expects to recognize 81% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. Disaggregation of revenue The Company provides disaggregation of revenue based on Creative Subscriptions and Business Solutions classification on the consolidated statements of comprehensive income (loss) and based on geographic region (see Note 17), as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. q. Costs to obtain contracts: The Company capitalizes certain sales commissions as costs of obtaining a contract when they are incremental and if they are expected to be recovered. These costs are subsequently amortized consistently with the pattern of revenue recognition from contracts for which the commissions relate, over an estimated period of benefit of three to five years. Deferred commission costs capitalized are periodically reviewed for impairment. There were no impairment losses recorded during the periods presented. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these costs as incurred. Amortization expense of these costs are included in selling and marketing expenses. As of December 31, 2023 and 2022, the amounts of deferred commissions were $4,125 and $4,396, respectively, and are included in prepaid expenses and other current assets on the consolidated balance sheets. Amortization expenses related to deferred commissions were immaterial during the periods presented. r. Cost of revenues: Cost of creative subscriptions revenues consists primarily of the allocation of costs associated with the provision of website creation and services, namely, bandwidth and hosting costs, and related Customer Care and call center costs along with domain name registration costs. Cost of creative subscriptions revenues also consists of personnel and the related overhead costs, including share-based compensation. Cost of business solutions revenue consists primarily of the allocation of bandwidth, hosting and support costs, and certain revenue share payments according to the Company’s agreements with third-party providers. It also includes costs related to payment processing, such as credit card interchange, network fees (charged by credit card providers), and third-party processing fees. s. Research and development costs: Research and development costs are generally expensed as incurred. Research and development expenses primarily consist of personnel and related expenses, including share-based compensation and allocated overhead costs. t. Internal use software costs: The Company capitalizes certain software development costs incurred in connection with its online platform and internal-use projects during the application development stage. These costs primarily consist of employee-related expenses such as salaries and stock-based compensation. Costs incurred in the preliminary stages of development are expensed as incurred. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use. The Company also capitalizes costs related to s |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3:- FAIR VALUE MEASUREMENTS Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables represent the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 533,854 $ — $ — $ 533,854 Marketable securities 22,721 182,648 — 205,369 Foreign currency derivative assets — 15,059 — 15,059 Financial liabilities: Foreign currency derivative liabilities — (7,868) — (7,868) $ 556,575 $ 189,839 $ — $ 746,414 December 31, 2022 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 51,855 $ — $ — $ 51,855 Marketable securities 72,194 415,219 — 487,413 Foreign currency derivative assets — — — — Financial liabilities: Foreign currency derivative liabilities — (32,195) — (32,195) $ 124,049 $ 383,024 $ — $ 507,073 In accordance with ASC 820, the Company measures its money market funds, marketable securities and foreign currency derivative contracts at fair value. Money market funds and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices for identical assets in active markets or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. NOTE 3:- FAIR VALUE MEASUREMENTS (Cont.) Assets Measured at Fair Value on a Non-Recurring Basis Upon the occurrence of certain events, the Company remeasures the fair value of certain assets on a non-recurring basis. These assets include equity investments in privately held companies for which the Company utilizes the measurement alternative, property, plant and equipment, ROU assets, intangible assets and goodwill. Investments in Privately Held Companies As disclosed in Note 2(k), the Company accounts for equity investments in private companies without readily determinable market values using the measurement alternative. If measured at fair value, these investments are generally classified within Level 3 of the fair value hierarchy, because significant unobservable inputs or data in an inactive market are used in estimating their fair value. ROU Assets and Related Leasehold Improvements During the year ended December 31, 2023, ROU assets and related leasehold improvements with an aggregate carrying amount of $39,198 were written down to an aggregate fair value of $13,293, resulting in an impairment charge of $25,905. Refer to Note 18 for additional information. The fair value of these assets, which represents a Level 3 measurement, was estimated using an income approach based market participant expectations of future sublease income, taking into consideration the estimated time period it will take to obtain a sublease, the sublease rate, and the applicable discount rate, which are considered unobservable inputs. Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only Convertible Notes As of December 31, 2023, the estimated fair value of the 2025 Convertible Notes was $522,531 (as disclosed in Note 10, the 2023 Convertible Notes were fully repaid on July 1, 2023). As of December 31, 2022, the total estimated fair value of the Convertible Notes was $836,224 (the fair value of 2023 Convertible Notes and 2025 Convertible Notes was $351,787 and $484,438, respectively). The fair value of the Convertible Notes is considered to be Level 2 within the fair value hierarchy and was determined based on quoted prices of the Convertible Notes in an over-the-counter market. Other Assets and Liabilities The carrying values of certain of the Company’s financial instruments, other than those presented above, including cash and cash equivalents, short-term and restricted deposits, trade receivables, trade payables, employees and payroll accruals and accrued expenses and other current liabilities approximate fair values due to the short-term maturities of these instruments. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5:- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2023 2022 Government authorities $ 10,696 $ 5,659 Hedging transaction asset 6,572 — Prepaid expenses 17,889 13,548 Other current assets 12,635 9,312 $ 47,792 $ 28,519 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET The composition of property and equipment, net is as follows: December 31, 2023 2022 Cost: Leasehold improvements $ 125,075 $ 114,397 Computers, peripheral equipment and electronic equipment 44,356 39,653 Internal use software 11,119 7,724 Office furniture and equipment 8,645 7,306 Vehicles 270 250 189,465 169,330 Less - accumulated depreciation 52,537 60,592 Depreciated cost $ 136,928 $ 108,738 Depreciation expense related to property and equipment, net was included in the following line items in the consolidated statements of comprehensive income (loss): Year ended December 31, 2023 2022 2021 Cost of revenues $ 3,060 $ 3,533 $ 3,186 Research and development, net 10,566 8,126 6,427 Selling and marketing 4,366 3,269 2,939 General and administrative 2,500 1,683 1,377 $ 20,492 $ 16,611 $ 13,929 During 2023 and 2022, the Company recorded a reduction of $28,546 and $5,920 to the cost and accumulated depreciation of fully depreciated equipment no longer in use. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 7:- BUSINESS COMBINATION During the year ended December 31, 2021, the Company acquired 100% of the capital shares of three privately held companies for aggregate purchase consideration of $46,629 (subject to working capital adjustments), out of which an amount of $1,047 relates to a previous investment in one of the acquired companies through a convertible loan agreement (CLA). In addition to the purchase consideration, the Company entered into cash and equity compensation arrangements with certain founders and employees, which aggregately amounted to $19,167 and are subject to certain performance and employment conditions following the respective closing dates. The following table summarizes the fair values of the aggregate assets acquired and liabilities assumed: (in thousands) Cash $ 2,853 Trade receivables 378 Prepaid expenses and other current assets 124 Intangible assets 25,918 Goodwill 25,065 Total Assets $ 54,338 Current liabilities 3,698 Deferred tax liability 4,011 Total Liabilities $ 7,709 Cash consideration paid 45,582 Fair value of previous investment 1,047 Total purchase consideration $ 46,629 The identified intangible assets acquired, which were valued using income-based approaches, primarily consist of developed technology, customer relations, and non-competition agreements, and have a total weighted-average useful life of 6.70 years. Goodwill generated from the above business combinations is attributed to synergies between the Company's and the acquired businesses’ products and services, and is not deductible for income tax purposes. Transaction costs incurred by the Company in connection with the acquisitions for the year ended December 31, 2021 were approximately $602 and included in operating expenses. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8:- INTANGIBLE ASSETS, NET December 31, 2023 2022 Cost: Technology $ 28,819 $ 28,819 Customer relations 17,603 17,603 Non-Competition agreement 127 127 Customer data 12,043 12,043 Domain 552 552 Other intangible assets 291 291 59,435 59,435 Less - accumulated amortization 31,425 25,471 Intangible assets, net $ 28,010 $ 33,964 Estimated amortization expense for the years ended: 2024 $ 5,866 2025 4,826 2026 4,243 2027 4,195 2028 3,603 Thereafter 5,277 $ 28,010 Amortization expense related to intangible assets, net was included in the following line items in the consolidated statements of comprehensive income (loss): Year ended December 31, Amortization 2023 2022 2021 Cost of revenues $ 2,669 $ 2,968 $ 2,030 Research and development — — — Selling and marketing 3,281 3,274 2,918 General and administrative 4 4 4 $ 5,954 $ 6,246 $ 4,952 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 9:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2023 2022 Accrued expenses $ 36,706 $ 30,469 Government authorities 31,982 25,530 Hedging transaction liability 7,868 32,195 $ 76,556 $ 88,194 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 10:- CONVERTIBLE NOTES 2025 Convertible notes In August 2020, The Company issued $575,000 aggregate principal amount, 0% coupon rate, of Convertible Senior Notes due 2025 (the “2025 Convertible Notes”). The 2025 Convertible Notes mature on August 15, 2025 unless earlier repurchased or converted. Upon conversion, the Company will pay or deliver, as the case may be, cash, ordinary shares or a combination of cash and ordinary shares, at the Company’s election. The 2025 Convertible Notes are convertible at an initial conversion rate of 2.4813 Ordinary Shares per $1,000 principal amount of 2025 Convertible Notes (equivalent to an initial conversion price of approximately $403.01 per Ordinary Share). The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the 2025 Indenture. In addition, following certain corporate events that occur prior to the maturity date, or following Company’s delivery of a notice of tax redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert his notes in connection with such a corporate event or notice of tax redemption, as the case may be. NOTE 10:- CONVERTIBLE NOTES (Cont.) Conversion terms of the 2025 Convertible notes : Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding February 15, 2025 only under the following circumstances: a. During any calendar quarter commencing after December 31, 2020 (and only during such calendar quarter), if the last reported sale price of Company’s Ordinary Shares, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day. b. During the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per USD 1,000 principal amount of Convertible Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ordinary shares and the conversion rate on each such trading day. c. If the Company calls the Convertible Notes for a tax redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the tax redemption date; or d. Upon the occurrence of specified corporate events. On or after February 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. During the year ended December 31, 2023, the conditions allowing holders of the 2025 Convertible Notes to convert were not met. The Notes are therefore not convertible as of December 31, 2023 and are classified as long-term liability. Holders of the 2025 Convertible Notes who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2025 Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the 2025 Indenture), holders of the 2025 Convertible Notes may require the Company to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of the 2025 Convertible Notes being repurchased, plus any accrued and unpaid interest. NOTE 10:- CONVERTIBLE NOTES (Cont.) The Company may not redeem the Convertible Notes prior to August 21, 2023, except in the event of certain tax law changes. The Company may redeem for cash all or any portion of the 2025 Convertible Notes, at its option, on or after August 21, 2023, if the last reported sale price of its ordinary shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of the redemption at a redemption price equal to 100% of the principal amount of the 2025 Convertible Notes to be redeemed, plus accrued and unpaid special interest if any, to, but excluding, the redemption date. Upon the occurrence of a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. The carrying amount of the liability is represented by the face amount of the notes, less total offering costs, plus any amortization of offering costs. The total offering costs upon issuance of the notes were $15,712 and are amortized to interest expense using the effective interest rate method over the contractual term of the notes. Interest expense is recognized at an annual effective interest rate of 0.56% over the contractual term of the notes. The net carrying amount of the 2025 Convertible Notes were as follows: December 31, 2023 2022 Principal original amount $ 575,000 $ 575,000 Unamortized debt issuance costs $ (5,286) $ (8,434) Converted to shares — — Net carrying amount $ 569,714 $ 566,566 NOTE 10:- CONVERTIBLE NOTES (Cont.) The Company recognized interest expense on the 2025 Convertible Notes as follows: Year ended December 31, 2023 2022 2021 Amortization of debt issuance costs $ 3,148 $ 3,131 $ 3,114 2025 Capped Call Transactions In connection with the pricing of the 2025 Convertible Notes, the Company entered into capped call transactions (the “Capped Call Transactions”) with certain of the purchasers of the Convertible Notes. The 2025 Capped Calls are purchased call options that give the Company the option to purchase the Company's ordinary shares, subject to anti-dilution adjustments substantially identical to those in the 2025 Convertible Notes. The 2025 Capped Calls will expire in 2025, if not exercised earlier. The 2025 Capped Calls are intended to offset potential dilution to the Company’s ordinary shares and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the Convertible Notes under certain circumstances described in the Capped Call Transactions. The 2025 Capped Calls are separate transactions and are not part of the terms of the Convertible 2025 Notes. As the Capped Call Transactions are considered indexed to the Company's shares and are considered equity classified, they are recorded in shareholders’ equity on the consolidated balance sheets. The Company paid an aggregate amount of $46,000 for the 2025 Capped Calls. The amount paid for the 2025 Capped Calls was recorded as a reduction to Additional paid-in capital in the consolidated balance sheets. NOTE 10:- CONVERTIBLE NOTES (Cont.) 2023 Convertible notes In June and July of 2018, the Company issued $442,750 aggregate principal amount, 0% coupon rate, of Convertible Senior Notes due 2023 (the “ 2023 Convertible Notes”). The 2023 Convertible Notes were set to mature on July 1, 2023, unless earlier repurchased or converted. The 2023 Convertible Notes first became eligible for optional conversion as of the third quarter of 2020 through the end of the first quarter of 2022. During the first quarter of 2021, the 2023 Convertible Notes were partially converted into 560,770 ordinary shares. The Company fully repaid the remaining principal amount of $362,667 of the 2023 Convertible Notes at maturity on July 1, 2023. The conversion rate was initially 7.0113 Ordinary Shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $142.63 per Ordinary Share). The conversion rate was subject to adjustment in some events, but was not adjusted for any accrued and unpaid special interest, if any. In addition, if certain corporate events occurred prior to the maturity date, or following the Company’s delivery of a notice of tax redemption, the Company was required, in certain circumstances, to increase the conversion rate for a holder who elected to convert his or her Convertible Notes in connection with such a corporate event or notice of tax redemption, as the case may be. Conversion terms of the 2023 Convertible Notes: Holders were able convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2023 only under the following circumstances: a. During any calendar quarter commencing after September 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company’s Ordinary Shares, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding quarter was greater than or equal to 130% of the conversion price on each applicable trading day. b. During the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ordinary shares and the conversion rate on each such trading day. NOTE 10:- CONVERTIBLE NOTES (Cont.) c. If the Company called the notes for a tax redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the tax redemption date; or d. Upon the occurrence of specified corporate events. On or after January 1, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders were able to convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company paid or delivered, as the case may be, cash, Ordinary Shares or a combination of cash and Ordinary Shares, at the Company’s election. The carrying amount of the liability was represented by the face amount of the notes, less total offering costs, plus any amortization of offering costs. The total offering costs upon issuance of the notes were $12,601 and were amortized to interest expense using the effective interest rate method over the contractual term of the notes. Interest expense was recognized at an annual effective interest rate of 0.58% over the contractual term of the notes. NOTE 10:- CONVERTIBLE NOTES (Cont.) The net carrying amount of the 2023 Convertible Notes were as follows: December 31, 2023 2022 Principal original amount $ 442,750 $ 442,750 Unamortized debt issuance costs — (1,046) Converted to shares (80,083) (80,083) Repayment of convertible notes (362,667) — Net carrying amount $ — $ 361,621 The Company recognized interest expense on the 2023 Convertible Notes as follows: Year ended December 31, 2023 2022 2021 Amortization of debt issuance costs $ 1,046 $ 2,082 $ 2,184 2023 Capped Call Transactions In connection with the pricing of the 2023 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2023 Capped Call Transactions”) with certain of the purchasers of the 2023 Convertible Notes. The 2023 Capped Call Transactions covered, collectively, the number of company ordinary shares underlying the 2023 Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2023 Convertible Notes. The cost of the 2023 Capped Call Transactions was $45,338. The 2023 Capped Call transactions were expected generally to reduce the potential dilution to the ordinary shares upon any conversion of the 2023 Convertible Notes and/or offset any cash payments the Company would have been required to make in excess of the principal amount upon conversion of the 2023 Convertible Notes under certain events described in the Capped Call Transactions. As the 2023 Capped Call Transactions were considered indexed to the Company's shares and are considered equity classified, they were recorded in shareholders’ equity on the consolidated balance sheet and were not accounted for as derivatives. The cost of the 2023 Capped Call Transactions was recorded as a reduction to additional paid-in capital. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 11:- LEASES The Company has entered into operating lease agreements, primarily for office facilities located around the world. These leases expire at various dates through January 2044, including renewal options that are reasonably certain to be exercised. The Company's Headquarters Lease is its most significant lease. The Company entered into a lease agreement for its new corporate headquarters in April 2019 (the "Headquarters Lease"). According to the Headquarters Lease, the landlord will construct approximately 80,000 square meters (approximately 861,112 square feet) in Tel Aviv, Israel (the "Premises"), which will be leased to the Company as its new corporate headquarters. The transfer of possession of the Premises to the Company took place in two phases. The initial lease term is 10 years, commencing upon the transfer of possession of the first phase of the Premises. The Company has options to extend the lease for additional periods of up to 15 years, most of which are at its sole discretion and were included in the lease term for accounting purposes, as their exercise was determined to be reasonably certain. As of December 31, 2023, the Company occupies the entire Premises. The lease of the Premises commenced for accounting purposes in the second quarter of 2022 (for the first phase) and in the second quarter of 2023 (for the second phase). The components of lease expense were as follows for the periods presented: Year ended December 31, 2023 2022 2021 Operating and variable lease cost $ 38,839 $ 36,679 $ 27,124 Short-term lease cost 1,916 2,405 1,619 Total operating lease cost $ 40,755 $ 39,084 $ 28,743 The weighted-average remaining lease term and discount rate related to operating leases were as follows: December 31, 2023 2022 Weighted average remaining lease term 17.88 14.63 Weighted average discount rate 5.7% 3.9% NOTE 11:- LEASES (Cont.) Cash payments related to operating lease liabilities for the years ended December 31, 2023, 2022 and 2021, were $43,324, $45,051, and $27,124, respectively. The maturities of the Company’s operating lease liabilities were as follows: Fiscal years ending December 31, December 31, 2023 2024 25,660 2025 39,673 2026 43,179 2027 46,237 2028 40,827 Thereafter 505,218 Total undiscounted lease payments 700,794 Less imputed interest 274,188 Total lease liabilities $ 426,606 The Company subleases certain unused office space to third parties. Sublease income was immaterial for the years ended December 31, 2023, 2022 and 2021. During the year ended December 31, 2023, the Company recorded an impairment charge of $25,525 for certain ROU assets. This impairment is attributed to leased office facilities that are no longer used for the Company’s business operation, part of which are being subleased. Refer to Note 18 for additional information. During the years ended December 31, 2023 and 2022, the Company modified, or terminated, certain leases of office facilities in Ukraine due to the Russia-Ukraine conflict that began in February 2022. The Company also received certain rent concessions in connection with these leases. The impact on the Company's consolidated financial statements was immaterial. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 12:- COMMITMENTS AND CONTINGENT LIABILITIES a. Pledges: The Company has pledged bank deposits in the amount of $700, in connection with an office lease agreement. b. Legal contingencies: As of December 31, 2023, the Company is not involved in any claims or legal proceedings which require accrual of liability for the estimated loss. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13:- SHAREHOLDERS' EQUITY a. Ordinary shares: The ordinary shares of the Company confer on the holders thereof voting rights, rights to receive dividends and rights to participate in distribution of assets upon liquidation. b. Treasury shares: In July 2023, the Company's Board of Directors authorized a share repurchase program under which the Company may repurchase up to $500,000 of the Company's ordinary shares and/or Convertible Notes. The initial repurchases pursuant to the repurchase program, as authorized by the Company’s Board of Directors, and approved by the Israeli court in December 2023 for an amount of $300,000, provided the Company with the authority to make repurchases of $300,000 of its ordinary shares and/or Convertible Notes through July 30, 2024. During the year ended December 31, 2023, the Company repurchased 1,348,865 outstanding ordinary shares for $127,017, through its share repurchase program authorized by the Board of Directors in November 2022 and July 2023. During the year ended December 31, 2022, the Company repurchased 2,772,811 outstanding ordinary shares for $231,873, through its share repurchase program authorized by the Board of Directors in May 2021. c. Share-based compensation: In October 2013, the Company's Board of Directors adopted a new Employee Shares Incentive Plan – the 2013 Incentive Compensation Plan,as amended from time to time, most recently on December 7, 2023 (the "2013 Plan"). The 2013 Plan provides for the grant of options, restricted shares, RSUs and PSUs. Under the Plan, as of December 31, 2023, an aggregate of 14,179 shares were still available for future grant. Each option granted under the Plan expires no later than ten years from the date of grant. The vesting period of the options is generally four years, unless the Board of Directors or the Board's Compensation Committee determines otherwise. Any option which is forfeited or cancelled before expiration becomes available for future grants. NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) On December 29, 2022, the Company completed a value neutral option exchange for certain eligible non-director and non-executive employees. Pursuant to the option exchange, 706,629 out-of-the-money stock options granted between July 2018 and December 2021 under the 2013 Plan, with an average weighted exercise price of $176.72, were canceled and replaced with 160,576 replacement stock options with a lower exercise price and 157,119 RSUs. The aggregate fair value of the replacement options and RSUs was substantially the same as the fair value of the canceled options, as determined using the Black-Scholes option pricing model as of the exchange date. Additionally, the first vesting event post-exchange will occur one year following the exchange date. The first vesting will apply to replacement options or RSUs, as applicable, that were exchanged with either 1) options that were already vested as of the exchange date or 2) options that were unvested as of the exchange date, but were scheduled to vest during the 12 months following the exchange date. The replacement options or RSUs, as applicable, granted in exchange for unvested options scheduled to vest more than one year following the exchange date, will vest on the same schedule that applied to the unvested options for which they were exchanged. The exchange did not have a material impact on the Company's stock-based compensation expense. The total share-based compensation expense related to all of the Company's equity-based awards, which include options, RSUs, PSUs and employee share purchase rights issued pursuant to the Company's ESPP and recognized for the years ended December 31, 2023, 2022 and 2021 was comprised as follows: Year ended December 31, 2023 2022 2021 Cost of revenues $ 15,013 $ 17,810 $ 15,462 Research and development 119,482 120,581 102,056 Selling and marketing 41,277 38,714 33,853 General and administrative 48,853 59,731 70,020 Total share-based compensation expense $ 224,625 $ 236,836 $ 221,391 Total unrecognized compensation cost amounted to $321,553 as of December 31, 2023, and is expected to be recognized over a weighted average period of approximately 2.31 years. NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) d. Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2023 is as follows: Number Weighted Weighted Aggregate Balance at December 31, 2022 4,332,022 $ 94.11 5.69 $ 77,308 Granted 1,350 0.00 Exercised (278,704) 18.29 Forfeited (98,612) 154.22 Balance at December 31, 2023 3,956,056 97.93 4.93 167,822 Exercisable at December 31, 2023 3,518,327 89.95 4.60 165,092 Vested and expected to vest at December 31, 2023 3,942,119 $ 97.76 4.92 $ 167,609 NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) The Company estimates the fair value of share options granted using the Black-Scholes-Merton option-pricing model. The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Expected volatility 59.91% 52.75%-59.08% 48.91%-52.22% Expected dividends 0% 0% 0% Expected term (in years) 5.05 4.93-5.03 4.85-4.91 Risk free rate 4.11% 1.81%-4.34% 0.44%-1.22% The following table set forth the parameters used in computation of the ESPP for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Expected volatility 50.40%-67.14% 65.00%-77.20% 56.94%-59.23% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 5.17%-5.47% 0.60%-3.34% 0.06%-0.07% A summary of options data for the years ended December 31, 2023, 2022 and 2021, is as follows: Year ended December 31, 2023 2022 2021 Weighted-average grant date fair value of options granted, per option $ 84.97 $ 49.14 $ 127.36 Total intrinsic value of the options exercised $ 19,450 $ 11,843 $ 114,113 The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the deemed fair value of the Company's ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2023: Exercise price Options outstanding Weighted average remaining Options exercisable Weighted average remaining (years) (years) 0-20.94 253,189 1.51 249,112 1.39 20.95-30.66 413,884 2.07 413,884 2.07 30.67-55.86 473,879 3.12 468,879 3.12 55.87-61.95 617,232 4.12 617,232 4.12 61.96-100.6 383,836 6.50 331,731 6.30 100.61-102.67 550,857 5.12 550,857 5.12 102.68-138.62 431,127 7.93 204,822 7.73 138.63-143.13 412,564 6.14 385,293 6.14 143.14-260.88 388,725 7.09 274,082 7.09 260.89-353.09 30,763 6.97 22,435 7.01 3,956,056 4.93 3,518,327 4.60 e. A summary of RSUs and PSUs activity for the year ended December 31, 2023, is as follows: Number Weighted Unvested as of December 31, 2022 3,122,132 $ 129.04 Granted 1,860,596 87.96 Vested (1,396,067) 127.17 Forfeited (375,240) 131.49 Unvested as of December 31, 2023 3,211,421 $ 105.77 The total fair value of shares vested during the year ended December 31, 2023 was $126,599. NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) f. Comprehensive income (loss): The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity, for the years ended December 31, 2023 and 2022: Year ended December 31, 2023 Unrealized gain (losses) on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning balance, net $ (11,689) $ (21,766) $ (33,455) Other comprehensive income (loss) before reclassifications, net 5,645 (12,556) (6,911) Amounts reclassified from accumulated other comprehensive income (loss) to earnings: Cost of revenues — 1,993 1,993 Research and development, net — 25,160 25,160 Selling and marketing — 8,997 8,997 General and administrative — 5,460 5,460 Financial expenses, net 2,948 2,948 Total accumulated other comprehensive income (loss), net $ (3,096) $ 7,288 $ 4,192 NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) Year ended December 31, 2022 Unrealized gain (losses) on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning balance, net $ (933) $ (123) $ (1,056) Other comprehensive income (loss) before reclassifications, net (12,364) (39,889) (52,253) Amounts reclassified from accumulated other comprehensive income (loss) to earnings: Cost of revenues — 938 938 Research and development, net — 10,912 10,912 Selling and marketing — 3,963 3,963 General and administrative — 2,433 2,433 Financial income, net 1,608 — 1,608 Total accumulated other comprehensive income (loss), net $ (11,689) $ (21,766) $ (33,455) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14:- INCOME TAXES The Company's subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. a. Corporate tax in Israel: The Israeli corporate tax rate was 23% for the years ended December 31, 2023, 2022 and 2021. However, the effective tax rate payable by a company that qualifies as an Industrial Company that derives income from an Approved Enterprise, a Beneficiary Enterprise, a Preferred Enterprise, a Preferred Technological Enterprise or a Special Preferred Technological Enterprise (as discussed below) may be considerably less. Real capital gains derived by an Israeli company are subject to the prevailing corporate tax rate in the year of sale. b. Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2023 2022 2021 Domestic $ 25,408 $ (486,294) $ (72,066) Foreign 12,431 18,451 19,059 Income (loss) before taxes on income $ 37,839 $ (467,843) $ (53,007) c. Deferred income taxes: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: NOTE 14:- INCOME TAXES (Cont.) December 31, 2023 2022 Deferred tax assets: Net operating loss carryforward $ 17,417 $ 15,050 Operating lease liabilities 54,861 28,790 Research and development expenses carryforward 13,685 40,330 Share-based compensation 54,310 42,553 Depreciation differences 352 489 Accrued employees costs 4,138 4,198 Other 2,779 1,636 Deferred tax assets 147,542 133,046 Valuation allowance (91,616) (96,969) Deferred tax liabilities: Unrealized gains on marketable and other equity securities 5,277 14,032 Property and equipment 1,972 1,934 Operating lease ROU assets 52,502 28,289 Acquired Intangible assets (1) 2,057 2,525 Other 1,285 4,214 Deferred tax liabilities $ 63,093 $ 50,994 Deferred tax liabilities,net $ 7,167 $ 14,917 Deferred taxes are included in the consolidated balance sheets, as follows: Long-term liabilities $ 7,167 $ 14,917 NOTE 14:- INCOME TAXES (Cont.) (1) In 2021, the Company completed an intra-entity transfer from US to Israel of certain intangible property (“IP”) rights associated with subsidiaries’ technology platform. This transfer resulted in income for US tax purposes of approximately $8,152 in 2021. As a result of the IP transfer, the Company utilized NOLs and consequently released the valuation allowance. The Company has provided valuation allowances in respect of all net deferred tax assets resulting from tax loss carry-forwards and other reserves and allowances due to its history of losses and uncertainty concerning realization of these deferred tax assets. d. Income tax expense (benefit) are comprised as follows: Year ended December 31, 2023 2022 2021 Current $ 10,686 $ 14,917 $ 10,621 Deferred (5,984) (57,897) 53,581 $ 4,702 $ (42,980) $ 64,202 Domestic $ 538 $ (55,456) $ 59,053 Foreign 4,164 12,476 5,149 $ 4,702 $ (42,980) $ 64,202 NOTE 14:- INCOME TAXES (Cont.) e. A reconciliation of the Company's theoretical income tax expense (benefit) to actual income tax expense as follows: Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income $ 37,839 $ (467,843) $ (53,007) Statutory tax rate 23 % 23 % 23 % Theoretical income tax expense (benefit) 8,703 (107,604) (12,192) Change in valuation allowance 9,273 18,179 40,520 Share-based compensation 1,236 3,132 (2,245) Non-deductible expenses and other permanent differences (8,265) 939 (1,202) Effect of subsidiaries with different tax rates 4,597 1,859 4,171 Preferred enterprise benefits (7,709) 39,108 37,001 Intercompany intangible asset sale — — (3,913) Income taxes related to prior years (1,001) (2,375) — Uncertain tax positions (1,587) 3,894 416 Other (545) (112) 1,646 Income tax expense (benefit) $ 4,702 $ (42,980) $ 64,202 f. Net operating loss carryforward: As of December 31, 2023, the Company had carryforward operating losses totaling approximately $134,081, of which $90,227 is attributed to Israel and can be carried forward indefinitely. NOTE 14:- INCOME TAXES (Cont.) g. The Law for the Encouragement of Capital Investments, 1959 (the "Law"): On April 1, 2005, an amendment to the Investment Law came into effect (the "Amendment") and has significantly changed the provisions of the Investment Law. The Amendment limits the scope of enterprises which may be approved by the Investment Center by setting criteria for the approval of a facility as an Approved Enterprise, such as provisions generally requiring that at least 25% of the Approved Enterprise's income will be derived from export. Additionally, the Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. According to the law, the Company is entitled to various tax benefits by virtue of the "Beneficiary Enterprise" status granted to part of its enterprises, defined by this law. During 2010, the Company applied to the Israeli Tax Authorities ("ITA") to receive "Beneficiary Enterprise" status and elect 2009 as year of election. During 2011, the Company received a tax decision from the ITA that approves its request for "Beneficiary Enterprise" status and 2009 as its year of election. In addition, during 2013, the Company had submitted a notification to the Israeli Tax Authorities ("ITA") and elect 2012 as year of election. Under the Investment Law and its Amendment and according to the tax decision, the Company is entitled to various tax benefits, defined by this law, under the "Alternative Benefits" track as a Beneficiary Enterprise. Pursuant to the beneficiary program, the Company is entitled to a tax benefit period of seven to ten years on income derived from this program as follows: the Company is fully tax exempted for a period of the first two years and for the remaining five to eight subsequent years is subject to tax at a rate of 10% - 25% (based on the percentage of foreign ownership of the Company). The duration of tax benefits is subject to a limitation of the earlier of 7 years from the Commencement Year, or 12 years from the first day of the Year of Election. NOTE 14:- INCOME TAXES (Cont.) Through December 31, 2023, the Company had not generated income under the provision of the new law. In January 2022, the Company notified the ITA that it waived the Beneficiary Enterprise status starting from the 2022 tax year and thereafter. In December 2010, the Israeli Parliament passed the Law for Economic Policy for 2011 and 2012 (Amended Legislation), 2011, which prescribes, among other things, amendments to the Investment Law, effective as of January 1, 2011(the 2011 Amendment). The 2011 Amendment canceled the availability of the benefits granted to companies under the Investment Law prior to 2011 and, instead, introduced new benefits for income generated by a “Preferred Company” through its “Preferred Enterprise” (as such terms are defined in the Investment Law) as of January 1, 2011. Similar to a “Beneficiary Company,” a Preferred Company is an industrial company owning a Preferred Enterprise which meets certain conditions (including a minimum threshold of 25% export). However, under this new legislation the requirement for a minimum investment in productive assets was cancelled. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate tax rate of 16% and 9% in 2014 and thereafter. Dividends paid out of income attributed to a Preferred Enterprise during 2014 and thereafter are generally subject to withholding tax at the rate of 20% or such lower rate as may be provided in an applicable tax treaty. However, if such dividends are paid to an Israeli company, no tax is required to be withheld (however, if afterward distributed to individuals or non-Israeli company a withholding of 20% or such lower rate as may be provided in an applicable tax treaty, will apply). The 2011 Amendment also provided transitional provisions to address companies already enjoying existing tax benefits under the Investment Law. These transitional provisions provide, among other things, that unless an irrevocable request is made to apply the provisions of the Investment Law as amended in 2011 with respect to income to be derived as of January 1, 2011: (i) the terms and benefits included in any certificate of approval that was granted to an Approved Enterprise which chose to receive grants and certain tax benefits under the Grant Track before the 2011 Amendment became effective will remain subject to the provisions of the Investment Law as in effect on the date of such approval, and subject to certain conditions; and (ii) terms and benefits included in any certificate of approval that was granted to an Approved Enterprise under the Alternative Track before the 2011 Amendment became effective will remain subject to the provisions of the Investment Law as in effect on the date of such approval, provided that certain conditions are met; and (iii) a Beneficiary Enterprise can elect to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions are met. NOTE 14:- INCOME TAXES (Cont.) In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2018 and 2019 Budget Years), 2016 which includes Amendment 73 to the Law ("Amendment 73") was published. According to Amendment 73, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). The new tax tracks under the Amendment are as follows: Preferred Technological Enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A Preferred Technological Enterprise, as defined in the Law, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - a tax rate of 7.5%). These corporate tax rates shall apply only with respect to the portion of income attributed to the intellectual property located in Israel. The Amendment also prescribes special tax tracks for technological enterprises, which are subject to regulations that were published by the Minister of Finance on May 1, 2017. The Company evaluated the effect of the adoption of the Amendment 73 and it generally meets the conditions for tax benefits as a “Preferred Technological Enterprise.” Accordingly, if the Company generates taxable income in Israel, it should be subject to tax at the rate of 12%. i. Tax benefits for research and development: Israeli tax law (section 20a to the Israeli Tax Ordinance) allows, under certain conditions, a tax deduction for research and development expenses, including capital expenses, for the year in which they are paid. Such expenses must relate to scientific research in industry, agriculture, transportation, or energy, and must be approved by the relevant Israeli government ministry, determined by the field of research. Furthermore, the research and development must be for the promotion of the Company's business and carried out by or on behalf of the company seeking such tax deduction. However, the amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. As for expenses incurred in scientific research that is not approved by the relevant Israeli government NOTE 14:- INCOME TAXES (Cont.) ministry, they will be deductible over a three-year period starting from the tax year in which they are paid. The Company believes that it is eligible for the above mentioned benefit for the majority of its research and development expenses. From time to time, the Company may apply to the Innovation Authority for approval to allow a tax deduction for all research and development expenses during the year incurred. There can be no assurance that such application will be accepted. h. Tax reform in the U.S.: The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21% in 2018, repealed the corporate alternative minimum tax, and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The Company calculates an effective rate by computing the effective state tax rate and adding the expected federal statutory rate with a reduction for the federal benefit of the state tax expense. The Company remeasured all U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 22%. i. Tax assessments: In Israel, the Company has final income tax assessments through tax year 2017. In the US, the Company has final federal assessments through the tax year 2019 . Withholding tax assessments – the Company is under withholding tax audit for years 2016-2019. 2016 is under court orders. The Company examine the assessments alongside with its lawyers and will try to reach a settlement. 2017-2019 are under stage B. The main issues that were raised by the Israeli Tax Authorities (ITA) relates to welfare of employees, company events, transportation (shuttles) etc. NOTE 14:- INCOME TAXES (Cont.) j. Uncertain tax positions: A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2023 2022 2021 Opening balance $ 3,338 $ 5,669 $ 1,811 Additions based on tax positions related to prior year — 63 3,282 Additions based on tax positions related to current year 886 2,645 576 Decreases based on tax positions related to prior year (2,422) (5,039) — Closing balance $ 1,802 $ 3,338 $ 5,669 |
FINANCIAL INCOME (EXPENSES), NE
FINANCIAL INCOME (EXPENSES), NET | 12 Months Ended |
Dec. 31, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
FINANCIAL INCOME (EXPENSES), NET | NOTE 15:- FINANCIAL INCOME (EXPENSES), NET Year ended December 31, 2023 2022 2021 Bank charges $ (628) $ (728) $ (761) Income (expenses) related to hedging activity (6,998) 9,747 6,408 Amortization of issuance costs (4,194) (5,213) (5,298) Exchange rate loss (1,499) (6,403) (6,711) Net gain (loss) from equity securities 30,608 (200,338) 267,831 Total income (expenses ) 17,289 (202,935) 261,469 Interest income 45,185 19,422 10,474 Total financial income (expenses), net $ 62,474 $ (183,513) $ 271,943 |
BASIC AND DILUTED NET LOSS PER
BASIC AND DILUTED NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET LOSS PER SHARE | NOTE 16:- BASIC AND DILUTED NET INCOME (LOSS) PER SHARE The following table sets forth the computation of the basic and diluted net income (loss) per share for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Numerator: Net income (loss) $ 33,137 $ (424,863) $ (117,209) Denominator: Basic weighted-average shares used to compute net income (loss) per share 56,829,962 57,993,364 57,004,154 Weighted-average effect of dilutive ordinary shares: Employee stock options and ESPP shares 1,039,744 — — RSUs and PSUs 533,331 — — Dilutive weighted-average shares used to compute net income (loss) per share 58,403,037 57,993,364 57,004,154 Basic net income (loss) per share $ 0.58 $ (7.33) $ (2.06) Diluted net income (loss) per share $ 0.57 $ (7.33) $ (2.06) NOTE 16:- BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Cont.) The following potentially dilutive shares were excluded from the diluted income (loss) per share calculations for the periods presented because their effect would have been anti-dilutive: Year ended December 31, 2023 2022 2021 Employee stock options and ESPP shares 2,245,872 4,332,022 4,720,600 RSUs and PSUs 818,288 3,123,019 2,225,516 Convertible Notes 1,426,748 3,969,514 3,969,514 4,490,908 11,424,555 10,915,630 |
SEGMENTS, CUSTOMERS AND GEOGRAP
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 17:- SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company applies ASC Topic 280, Segment Reporting (“ASC 280"). The Company operates in one reportable segment. Total revenues are attributed to geographic areas based on the location of the end customer. b. The following tables present total revenues for the years ended December 31, 2023, 2022 and 2021 and long-lived assets as of December 31, 2023 and 2022: Revenues: Year ended December 31, 2023 2022 2021 North America (*) $ 938,534 $ 819,245 $ 731,251 Europe 380,495 350,200 334,677 Latin America 64,492 56,712 55,244 Asia and others 178,144 161,509 148,485 $ 1,561,665 $ 1,387,666 $ 1,269,657 (*) Includes revenue from the United States in amount of $864,475, $709,703 and $588,886 for 2023, 2022, and 2021, respectively. NOTE 17:- SEGMENTS,CUSTOMERS AND GEOGRAPHIC INFORMATION (Cont.) Long-lived assets and ROU assets: December 31, 2023 2022 Europe and Asia (*) 537,572 266,648 North America 19,918 42,698 $ 557,490 $ 309,346 (*) As of December 31, 2023 and 2022, long-lived assets and ROU assets located in Israel amounted to $513,557 and $232,424, respectively. |
Restructuring and Related Activ
Restructuring and Related Activities | 12 Months Ended |
Dec. 31, 2023 | |
Restructuring Costs and Asset Impairment Charges [Abstract] | |
Restructuring, Impairment, and Other Activities Disclosure | NOTE 18:- IMPAIRMENT, RESTRUCTURING AND OTHER COSTS During the year ended December 31, 2023, the Company implemented and substantially completed significant cost reduction measures (referred to below as the “Plan”), as part of its ongoing focus on operational efficiency and efforts to enhance gross margins, operating leverage, and free cash flow. Key initiatives taken during 2023 included a workforce reduction of approximately 7%, primarily within the Customer Care function, alongside facility optimization measures to right-size the Company’s office footprint and better align it with its operating needs. The Company incurred total costs of $32,614 in connection with the Plan during the year ended December 31, 2023, which are included in impairment, restructuring and other costs in the statement of comprehensive income (loss). These costs are comprised of impairment of ROU assets and related leasehold improvements of $25,905, triggered by the Company's decision to cease using and marketing certain leased office facilities for sublease, employee severance costs of $4,504, and other associated costs of $2,205. Cash payments of $6,760 related to the Plan were made during 2023. As of December 31, 2023, the Company did not have any liabilities accrued related to the Plan. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | NOTE 19:- SUBSEQUENT EVENTS During January and February 2024, the Company repurchased 1,917,098 outstanding ordinary shares for $241,302 and completed the entirety of the $300,000 court-approved repurchase amount. See also Note 13(b). |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Use of estimates | Use of estimates: |
Principales of consolidation | Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. Intercompany transactions and balances, have been eliminated upon consolidation. |
Foreign currency translation and transactions | Foreign currency translation and transactions: A substantial portion of the Company's financing activities, including equity transactions, cash investments, costs and revenues are generated in U.S. dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances that are denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with principles set forth in Accounting Standard Codification ("ASC") Topic 830, Foreign Currency Matters (“ASC 830"). NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) In accordance with ASC 830, monetary assets and liabilities denominated in foreign currencies are remeasured into U.S. dollars at the end of each reporting period using the exchange rates in effect at the balance sheet date. Non-monetary assets denominated in foreign currencies are measured using historical exchange rates. Gains and losses resulting from remeasurement are generally recorded in the statement of comprehensive income (loss) as financial income or expenses, as appropriate. |
Cash and cash equivalents | Cash and cash equivalents: Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less at the date of purchase. Cash equivalents generally consist of investments in money market funds and are carried at fair value. |
Short-term deposits | Short-term deposits: Short-term deposits are deposits with maturities over three months from the date of purchase and of up to one year. As of December 31, 2023 and 2022, the Company's bank deposits were mainly denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 6.6% and 5.70%, respectively. Short-term deposits are presented at their cost, including accrued interest. |
Restricted deposits | Restricted deposits: Restricted deposits are deposits with maturities of up to one year and are used as security for the rental of premises and for the Company's credit cards. As of December 31, 2023 and 2022, the Company's bank deposits were denominated in U.S. dollars and bore interest at weighted average interest rates of 2.0% and 2.2%, respectively. Restricted deposits are presented at their cost, including accrued interest. |
Marketable securities | Marketable securities: Marketable securities consist of investments in debt securities and in equity securities with readily determinable fair values. The Company accounts for investments in marketable debt securities in accordance with ASC Topic 320, Investments - Debt Securities (“ASC 320”). The Company’s marketable debt securities consist of U.S. treasury bonds, certificate of deposits, sovereign bonds, municipal bonds and corporate bonds. Marketable debt securities are classified as available for sale at the time of purchase. Available-for-sale securities are carried at fair value based on quoted market prices, with the unrealized gains and non-credit related losses, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income (expenses), net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion, together with interest on securities, are included in financial income (expenses), net. The Company periodically evaluates its available-for-sale debt securities for credit losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income (expenses), net when the impairment is incurred. During the years ended December 31, 2023, 2022 and 2021, credit loss impairments were immaterial. The Company classifies its marketable debt securities as either short-term or long-term based on each instruments’ underlying contractual maturity date as well as the intended time of realization. Marketable debt securities with maturities of 12 months or less are classified as short-term, and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities (“ASC 321”). These investments are measured at fair value with the related gains and losses, including unrealized, recognized in financial income (expenses), net. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
Property and equipment, net | Property and equipment, net: Property and equipment assets are stated at cost, net of accumulated depreciation and impairment. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and electronic equipment 15 - 33 (mainly 33) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset The carrying amounts of property and equipment are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment ("ASC 360"), whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. The determination of whether any impairment exists includes a comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying amount. If such assets are considered to be impaired, the impairment loss to be recognized is measured by the amount by which the carrying amount of the asset or asset group exceeds the fair value of the asset or asset group. During the year ended December 31, 2023, the Company recorded an impairment charge for certain leasehold improvements. See Note 18 for further information. No impairment was recognized in the other periods presented. |
Business combinations | Business combinations: The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill. Upon the end of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever occurs earlier, any subsequent adjustments would be recorded in the statement of comprehensive income (loss). Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company accounts for acquisitions that do not meet the definition of a business as an asset acquisition. |
Goodwill and intangible assets | Goodwill and intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Under ASC Topic 350, Intangibles - Goodwill and Other ("ASC 350"), goodwill is not amortized, but rather is subject to impairment test at least annually. The Company elected to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if events or changes in circumstances indicate the carrying value may not be recoverable. Goodwill is tested for impairment at the reporting unit level, by first performing a qualitative assessment to determine whether it is more likely than not that the fair value of the reporting unit is less than its carrying amount. If the reporting unit does not pass the qualitative assessment, the Company carries out a quantitative test for impairment of goodwill, by comparing the fair value of the reporting unit with the carrying amount of the reporting unit that includes goodwill. The Company may bypass the qualitative assessment and proceed directly to performing the quantitative goodwill impairment test. The Company operates as one reporting segment, and this segment comprises its only reporting unit. Therefore, goodwill is tested for impairment at that level. The Company did not record goodwill impairment charges during any of the periods presented. Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets as follows: Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years Amortization is recorded into cost of revenues or operating expenses, depending on the nature of the asset. The carrying amounts of these assets are reviewed for impairment in accordance with ASC 360 whenever events or changes in circumstances indicate that the carrying value of such assets may not be recoverable. Recoverability of these assets is measured by comparison of estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or asset group to their net carrying amount. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) |
Investments in privately held companies | Investments in privately held companies: The Company holds equity investments in private companies without readily determinable market values, in which it does not have control or significant influence. The Company accounts for these equity investments under ASC 321, using the measurement alternative, which is cost, less any impairment, adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. The investments are reviewed periodically to determine if their respective values have appreciated or have been impaired, and adjustments are recorded as necessary on a non-recurring basis. The investments are presented in the Company’s consolidated balance sheets as part of prepaid expenses and other long-term assets. The carrying amounts the Company’s equity investments in privately held companies without readily determinable market values as of December 31, 2023 and 2022, were $21,310 and $9,950, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company recorded in financial income (expenses), net unrealized gains of $4,156, $174, and $2,833, respectively, related to revaluation of its equity investments in privately held companies based on observable price changes. During the years ended December 31, 2023 and 2022, the Company recorded impairment charges of $400 and $3,000, respectively, in connection with certain equity investments. No unrealized losses or impairments were recognized during the year ended December 31, 2021. As of December 31, 2023, cumulative unrealized gains related to investments in privately held companies without readily determinable market values were $8,276. As of this date, cumulative unrealized losses and impairments were $3,400. |
Derivatives instruments | Derivatives instruments: The Company enters into foreign currency contracts, primarily forward and option contracts, with financial institutions to protect against foreign exchange risks. In accordance with ASC Topic 815, Derivatives and Hedging ("ASC 815"), the Company recognizes all derivative instruments as either assets or liabilities at their respective fair values. Derivative instruments are recorded as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the consolidated balance sheets. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative. Derivative instruments designated as hedging instruments: The Company has instituted a foreign currency cash flow hedging program, to hedge the risk of overall changes in cash flows resulting mainly from foreign currency salary payments. The Company hedges portions of its forecasted salary payments denominated in NIS, using options and forward contracts that are designated as cash flow hedges, as defined by ASC 815. For these derivative instruments, gains and losses are reported as a component of other comprehensive income (loss) and subsequently recognized in earnings with the corresponding hedged item. Cash flows related to these derivatives are classified in the consolidated statements of cash flows in the same manner as the underlying hedged transaction, typically within cash flows from operating activities. The fair value of derivative assets designated as hedging instruments as of December 31, 2023 and 2022, totaled $14,068 and $0, respectively. The fair value of derivative liabilities designated as hedging instruments as of December 31, 2023 and 2022, totaled $5,374 and $21,471, respectively. As of December 31, 2023 and 2022, the net unrealized gains (losses) related to foreign currency contracts designated as hedging instruments, that were accumulated in other comprehensive income (loss), were $8,717 and $(21,383), respectively. These amounts are expected to be reclassified into earnings over the next 20 months. As of December 31, 2023 and 2022, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $496,129 and $382,969, respectively. These contracts will expire over the next 20 months. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedging instruments in cash flow hedges discussed above, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Japanese Yen and Israeli Shekel. Gains and losses related to such derivative instruments are recorded in financial income (expenses), net. Cash flows associated with these derivatives are reflected as cash flows from operating activities in the consolidated statements of cash flows. The fair value of derivative assets not designated as hedging instruments as of December 31, 2023 and 2022, totaled $991 and $0, respectively. The fair value of derivative liabilities not designated as hedging instruments as of December 31, 2023 and 2022, totaled $2,494 and $10,724, respectively. In the years ended December 31, 2023, 2022 and 2021, the Company recorded financial income (expenses), net, from economically hedge transactions, in the amount of $(6,998), $9,747 and $6,408, respectively. As of December 31, 2023 and 2022, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $36,779 and $156,404, respectively. These contracts will expire over the next 12 months. |
Severance pay | Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expense for the years ended December 31, 2023, 2022 and 2021, amounted to $22,537, $24,987 and $22,413 , respectively. |
U.S. employees defined contribution plan | U.S. employees defined contribution plan: The U.S. Subsidiary has a 401(k) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100%, but generally not greater than $22.50 per year (for certain employees over 50 years of age the maximum contribution is $30 per year), of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The U.S. Subsidiary matches 4% of employee contributions up to the plan with no limitation. During the years ended December 31, 2023, 2022 and 2021, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $1,965, $2,672 and $2,271, respectively. |
Convertible Senior Notes | Convertible Senior Notes: The Convertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) are accounted for in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options . Prior to January 1, 2021, before the adoption of ASU 2020-06, the Company separately accounted for the liability (debt) and equity (conversion option) components of the instrument, as the Convertible Notes may be settled wholly or partially in cash upon conversion. The carrying amount of the liability component was computed by estimating the fair value of a similar liability without the conversion option. The amount of the equity component was then calculated by deducting the fair value of the liability component from the principal amount of the instrument. This difference was accounted for as a debt discount that was amortized as interest expense over the respective terms of the Convertible Notes using an effective interest rate method. In accounting for the issuance costs related to the Convertible Notes, the allocation of issuance costs incurred between the liability and equity components was based on their relative values. On January 1 ,2021, the Company early adopted ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40), which simplified the guidance on issuer’s accounting for convertible debt, using the modified retrospective approach . Under ASU 2020-06, embedded conversion features are no longer separated from the host contract for convertible instruments with conversion features that are not required to be accounted for as derivatives under ASC 815, or that do not result in substantial premiums accounted for as paid-in capital. Consequently, a convertible debt instrument is accounted for as a single liability measured at its amortized cost, as long as no other features require bifurcation and recognition as a derivative. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The adoption eliminated the requirement to separately account for the liability and equity components of the Company’s Convertible Notes. The adoption resulted in a decrease to accumulated deficit of $53,527, a decrease to additional paid-in capital of $215,712, and an increase to Convertible Notes, net of $162,185. |
Revenue recognition | Revenue recognition: The Company’s total revenues are comprised of revenues from Creative Subscriptions and revenues from Business Solutions. Creative Subscriptions revenues are generated from the sale of monthly, yearly and multi-year premium subscriptions for the Company’s website solutions, including Wix Studio, as well as from the sale of domain name registrations. Business Solutions revenues are generated from the sale of additional products and services that are offered to users to help them manage and grow their business online. These products and services include, among others, Wix Payments, Google Workspace, Ascend by Wix, and other applications sold through the Company’s App Market or elsewhere on its platform. The Company sells its products and services directly to end customers as well as through certain types of partners, including agencies and freelancers who build websites or applications for others, and resellers. This revenue recognition policy is consistent for sales generated directly with end customers and indirect sales generated through partners. Arrangements with the Company’s customers do not provide the customers with the right to take possession of the software supporting the Company’s platform at any time and are therefore accounted for as service contracts. In accordance with ASC Topic 606, Revenue from Contracts with Customers (“ASC 606”), the Company recognizes revenue when a customer obtains control of promised products or services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these products or services. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Revenue is recognized net of allowances for refunds, consideration payable to customers, and any taxes collected from customers, which are subsequently remitted to governmental authorities. Refunds are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. The Company recognizes revenue by applying the following steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company typically invoices its customers in advance upon execution of the initial contract or subsequent renewal, and payments are typically received at the time of invoicing. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The Company applies the practical expedient in ASC 606 and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Certain arrangements with customers contain multiple distinct performance obligations. For these arrangements, the Company allocates the transaction price to each performance obligation based on its relative standalone selling price (SSP). The Company generally establishes SSPs based on observable selling prices. Creative Subscriptions Revenues from premium subscriptions are recognized on a straight-line basis over the service period. The Company offers a 14-day money back guaranty ("Guaranty Period") on new premium subscription. The Company considers such amount collected from new premium subscriptions as customer deposits until the end of the 14-day trial period. Revenues are recognized once the Guaranty Period has expired. Revenues related to the registration of domain names are recognized at a point in time upon the registration of the domain name, since that is when the Company transfers control and satisfies the performance obligation. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Business Solutions Revenues related to subscriptions and software applications developed by the Company are recognized mainly over time. Revenues related to Wix Payments earned from processing payments are recognized at the time of the transaction, and fees are determined based in part on a percentage of the Gross Payment Volume (“GPV”) processed plus a per transaction fee, where applicable. Revenues related to Google Workspace subscriptions, which are sold on a monthly or yearly basis, are recognized on a ratable basis over the subscription period. Revenues related to third-party software applications are generally recognized at a point in time upon sale of the application, since that is when the Company completes its obligation to facilitate the transfer between the customer and the third party. Principal versus agent considerations The Company follows the guidance provided in ASC 606 for determining whether it is a principal (i.e., report revenues on a gross basis) or an agent (i.e., report revenues on a net basis) in arrangements with customers that involve another party that contributes to providing specified products or services to a customer. The Company determines whether the nature of its promise is a performance obligation to provide the specified products or services itself (as a principal) or to arrange for those products or services to be provided by the other party (as an agent), based on whether it controls the specified products or services before they are transferred to the end customer. In making this determination, the Company evaluates indicators such as which party is primarily responsible for fulfillment and has discretion in determining pricing. This determination is reviewed for each specified product or service promised to the customer and may involve significant judgment. Revenues generated from the sale of domain name registrations and the sale of certain integrated solutions, including Google Workspace and Wix Payments, are typically recorded on a gross basis, meaning the amounts billed to customers are recorded as revenues and expenses incurred are recorded as cost of revenues, since the Company has determined that it controls the promised products or services before they are transferred to the end customer. Revenues generated from the sale of third-party software applications are typically recognized on a net basis, as the Company has determined that it is the agent in these arrangements. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Deferred revenues Contract liabilities consist of deferred revenues and primarily include payments received in advance of the Company’s performance under the contract. Deferred revenues are recognized as revenue when transfer of control to customers has occurred. The balance of deferred revenues, including current and long-term balances, as of December 31, 2023 and 2022 was $675,992 and $599,799, respectively. The change in the deferred revenues balance during the period primarily consisted of increases due to payments received in advance of performance, which were offset by decreases due to revenues recognized in the period. During the year ended December 31, 2023, the Company recognized approximately all of the revenue that was included in the current deferred revenues balance at the beginning of the period. Remaining performance obligation The Company’s remaining performance obligations represent revenue that has not yet been recognized and include deferred revenues and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2023 , the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $731,508. As of December 31, 2023 , the Company expects to recognize 81% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. Disaggregation of revenue The Company provides disaggregation of revenue based on Creative Subscriptions and Business Solutions classification on the consolidated statements of comprehensive income (loss) and based on geographic region (see Note 17), as it believes these categories best depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors. |
Costs to obtain contracts | Costs to obtain contracts: The Company capitalizes certain sales commissions as costs of obtaining a contract when they are incremental and if they are expected to be recovered. These costs are subsequently amortized consistently with the pattern of revenue recognition from contracts for which the commissions relate, over an estimated period of benefit of three to five years. Deferred commission costs capitalized are periodically reviewed for impairment. There were no impairment losses recorded during the periods presented. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these costs as incurred. Amortization expense of these costs are included in selling and marketing expenses. As of December 31, 2023 and 2022, the amounts of deferred commissions were $4,125 and $4,396, respectively, and are included in prepaid expenses and other current assets on the consolidated balance sheets. Amortization expenses related to deferred commissions were immaterial during the periods presented. |
Cost of revenues | Cost of revenues: Cost of creative subscriptions revenues consists primarily of the allocation of costs associated with the provision of website creation and services, namely, bandwidth and hosting costs, and related Customer Care and call center costs along with domain name registration costs. Cost of creative subscriptions revenues also consists of personnel and the related overhead costs, including share-based compensation. Cost of business solutions revenue consists primarily of the allocation of bandwidth, hosting and support costs, and certain revenue share payments according to the Company’s agreements with third-party providers. It also includes costs related to payment processing, such as credit card interchange, network fees (charged by credit card providers), and third-party processing fees. |
Research and development costs | Research and development costs: Research and development costs are generally expensed as incurred. Research and development expenses primarily consist of personnel and related expenses, including share-based compensation and allocated overhead costs. |
Internal use software costs | Internal use software costs: The Company capitalizes certain software development costs incurred in connection with its online platform and internal-use projects during the application development stage. These costs primarily consist of employee-related expenses such as salaries and stock-based compensation. Costs incurred in the preliminary stages of development are expensed as incurred. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use. The Company also capitalizes costs related to specific upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred for maintenance and minor upgrades and enhancements are expensed as incurred. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) Capitalized software development are included in property and equipment, net in the consolidated balance sheets, and are amortized over the estimated useful life of the software, on a straight-line basis. During 2023, 2022 and 2021, the Company capitalized $3,395, $2,741 and $2,519, respectively. |
Selling and marketing | Selling and marketing: Selling and marketing expenses primarily consist of cost-per click expenses, social networking expenses, marketing campaigns and display advertisements, personnel and related expenses, including share-based compensation and allocated overhead costs and are charged to the statement of comprehensive income (loss), as incurred. Advertising expenses for the years ended December 31, 2023, 2022 and 2021 amounted to $142,775, $224,266 and $284,540, respectively. |
Share-based compensation | Share-based compensation: The Company has granted restricted share units (“RSUs”) and stock options vesting solely upon continued service, as well as performance-based awards, including performance stock units (“PSUs”), with vesting based on achievement of specified performance targets. In addition, the Company has granted share purchase rights under its Employee Stock Purchase Plan (“ESPP”), which is primarily available to active employees. The Company accounts for share-based compensation in accordance with ASC Topic 718, Compensation - Stock Compensation ("ASC 718"). Compensation cost for share-based awards is measured at the fair value on the grant date and recognized as expense using the straight-line method for service-based awards, and the accelerated method for performance-based awards, over the requisite service period. The Company estimates forfeitures at the grant date based on past experience, and revises its estimate if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company regularly estimates when and if performance-based awards will be earned and record expense over the estimated service period only for awards considered probable of being earned. Any previously recognized expense is reversed in the period in which an award is determined to no longer be probable of being earned. Cancellation of an award accompanied by the concurrent grant of a replacement award is accounted for as a modification of the terms of the cancelled award. Total compensation cost to be recognized is equal to the grant date fair value of the original award plus any incremental value resulting from the modification. The incremental value is measured as the excess of the fair value of the replacement awards over the fair value of the cancelled awards at the cancellation date. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The Company selected the Black-Scholes-Merton option-pricing model as the most appropriate model for determining the fair value for its share option awards and ESPP, whereas the fair value of RSUs and PSUs is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires the Company to make several assumptions, including the Company’s share price, expected volatility, expected term, risk-free interest rate, and expected dividends. Expected volatility was calculated based upon actual historical share price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected term of the options. The Company has historically not paid dividends and has no near-term plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. |
Income taxes | Income taxes: The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes (“ASC 740”), using the liability method, whereby deferred tax assets and liabilities account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and for carry-forward tax losses, and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company recognizes a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value, and if it is more likely than not that some portion of the entire deferred tax asset will not be realized. Deferred tax assets and liabilities are classified as long-term assets and liabilities in the consolidated balance sheets. |
Legal contingencies | Legal contingencies: The Company is periodically involved in various legal claims and proceedings. The Company reviews the status of each legal matter it is involved and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. The Company does not accrue for contingent losses that are considered to be reasonably possible, but not probable. |
Basic and diluted net loss per share | Basic and diluted net income (loss) per share: Basic net income (loss) per share is computed by dividing net income (loss) attributable to shareholders by the weighted-average number of ordinary shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potential weighted average dilutive ordinary shares, including employee stock options, RSUs and PSUs, shares issuable pursuant to the ESPP, and Convertible Notes. The dilutive potential shares are computed using the treasury stock method or the as-if converted method, as applicable. Diluted loss per share for the years ended 2022 and 2021 was the same as the basic loss per share, since there was a net loss for those periods, and inclusion of potential ordinary shares was anti-dilutive. |
Treasury shares | Treasury shares: The Company repurchased its ordinary shares and holds them as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. |
Concentration of credit risks | Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and restricted deposits, and marketable debt securities. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) For cash and cash equivalents and short-term and restricted deposits, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the consolidated balance sheets exceed federally insured limits. The Company maintains its cash and cash equivalents and short-term and restricted deposits with various financial institutions globally that management believes are of high credit quality, and the Company has not experienced any losses on these accounts. |
Fair value of financial instruments | Fair value measurements: The Company measures certain financial assets and liabilities at fair value on a recurring basis and certain financial and non-financial assets and liabilities at fair value on a non-recurring basis, when a change in fair value or impairment is evidenced or for disclosure purposes. The Company applies ASC Topic 820, Fair Value Measurement (“ASC 820”), that defines fair value and provides a framework for measuring and disclosing fair value. Fair value is based on the price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. ASC 820 establishes a fair value hierarchy, which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The categorization within the hierarchy is based upon the lowest level of input that is available and significant to the fair value measurement. Three levels of inputs may be used to measure fair value. Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Government grants | Government grants: The Company benefits from government grants in certain jurisdictions where it operates, including grants from the Investment and Development Authority for Economic and Industrial Development (the "Investment Authority") for participation in salary expenses for employees in national priority areas, grants from the Israel Innovation Authority (the "IIA") for participation in research and development activities, and grants from the European Innovation Council (EIC). Grant proceeds are recognized as a deduction from research and development expenses, net, at the time the Company is entitled to the grants on the basis of the related cost incurred. The Company will not be obligated to pay royalties to the Investment Authority and the IIA. During the years ended December 31, 2023, 2022 and 2021, the Company recognized grant proceeds from the Investment Authority of $137, $535 and $509, respectively. During the periods presented, no material grants from the IIA and EIC were received. |
Leases | Leases: The Company accounts for its leases in accordance with ASC Topic 842, Leases (“ASC 842”). The Company determines if an arrangement is a lease at inception and classifies its leases at commencement. Leases are classified as either finance leases or operating leases. A lease is classified as a finance lease if any one of the following criteria are met: the lease transfers ownership of the asset by the end of the lease term; the lease contains an option to purchase the asset that is reasonably certain to be exercised; the lease term is for a major part of the remaining useful life of the asset; the present value of the lease payments equals or exceeds substantially all of the fair value of the asset; or the underlying asset is of such a specialized nature that it is expected to have no alternative use to the lessor at the end of lease term. A lease is classified as an operating lease if it does not meet any one of these criteria. During the periods presented, all of the Company’s leases are accounted for as operating leases. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The Company elected the practical expedient to not separate lease and non-lease components for its leases. Certain lease agreements contain variable payments, which are excluded from the measurement of the operating lease assets and lease liabilities, and are expensed as incurred. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at commencement date based on the present value of lease payments over the lease term. ROU assets are then adjusted for any prepaid or deferred lease payments and lease incentives. Any payments incurred prior to lease commencement for lessor-owned assets are also included in the carrying amount of the ROU assets. As the Company’s leases do not generally provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The Company’s lease terms may include options to extend or terminate the lease. These options are included in the lease terms when it is reasonably certain they will be exercised. The Company has made an accounting policy election not to recognize ROU assets and lease liabilities for leases with an initial term of 12 months or less. The Company remeasures its lease liabilities and ROU assets upon the occurrence of a lease modification not accounted for as a separate contract, or a triggering event that changes the certainty of the Company exercising an option to renew or terminate the lease. In these cases, the lease liability is remeasured based on the modified lease terms using a revised discount rate, and a corresponding adjustment is made to the carrying amount of the related ROU asset. The Company has elected to use the layered approach when remeasuring ROU assets into its functional currency. Under this approach, the Company remeasures only the additional ROU asset, if any, due to a modification that is not accounted for as a new lease or other remeasurement event, using the exchange rate at the modification or remeasurement date. Operating lease expenses are recognized in the consolidated statements of comprehensive income (loss) on a straight-line basis over the lease term, except for impaired leases for which the lease expenses are recognized on a declining basis over the remaining lease term. The Company subleases certain leased office spaces to third parties, and recognizes sublease income on a straight-line basis over the sublease term. NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES (Cont.) The carrying amounts of ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. During the year ended December 31, 2023, the Company recorded an impairment charge of $25,525 for certain ROU assets. This impairment is attributed to leased office facilities that are no longer used for the Company’s business operation, a portion of which are being subleased. See Note 18 for further information. No impairment was recognized in the other periods presented. |
Recent accounting pronouncements | Recent accounting pronouncements: Accounting pronouncements adopted in the year There were no accounting pronouncements adopted during the year ended December 31, 2023. Accounting pronouncements not yet adopted In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures . The amended guidance requires incremental reportable segment disclosures, primarily about significant segment expenses. The amendments also require entities with a single reportable segment to provide all disclosures required by these amendments, and all existing segment disclosures. This guidance will be effective for the Company for annual periods beginning after January 1, 2024, with early adoption permitted, and will be applied retrospectively to all prior periods presented in the financial statements. The Company is currently assessing the impact of this ASU on its consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures . The amendment guidance requires enhancements and further transparency to certain income tax disclosures, primarily related to the rate reconciliation and income taxes paid information. This guidance will be effective for the Company for annual periods beginning after January 1, 2025, with early adoption permitted. The guidance can be applied either prospectively or retrospectively. The Company is currently assessing the impact of this ASU on its consolidated financial statements and related disclosures. |
ImpairmentRestructuringAndOtherCosts | Impairment, restructuring and other costs: Impairment, restructuring and other costs consist of impairment of right-of-use (“ROU”) assets and related leasehold improvements, employee severance costs, and other costs associated with restructuring and exit activities. Refer to Note 18 for additional information. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounting Policies [Abstract] | ||
Schedule of useful life of property and equipment | % Computers, peripheral equipment and electronic equipment 15 - 33 (mainly 33) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset | |
Schedule of useful life of intangible assets | Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Schedule of Available-for-sale Securities Reconciliation | December 31, 2023 2022 ONE YEAR OR LESS Amortized cost Gross unrealized gains Gross unrealized losses Fair Amortized cost Gross unrealized gains Gross unrealized losses Fair value value Government and corporate debentures - fixed interest rate $ 114,535 $ — $ (1,640) $ 112,895 $ 223,920 $ — $ (3,840) $ 220,080 Government-sponsored enterprises debentures 3,164 — (30) 3,134 3,501 — (27) 3,474 Government and corporate debentures - floating interest rate 5,750 2 — 5,752 7,902 — (7) 7,895 Total $ 123,449 $ 2 $ (1,670) $ 121,781 $ 235,323 $ — $ (3,874) $ 231,449 December 31, 2023 2022 AFTER ONE YEAR THROUGH FIVE YEARS Amortized cost Gross unrealized gains Gross unrealized losses Fair Amortized cost Gross unrealized gains Gross unrealized losses Fair value value Government and corporate debentures - fixed interest rate $ 62,142 $ — $ (1,410) $ 60,732 $ 184,158 $ — $ (7,550) $ 176,608 Government-sponsored enterprises debentures — — — — 3,163 — (70) 3,093 Government and corporate debentures - floating interest rate 4,093 8 (26) 4,075 15,457 — (195) 15,262 Total $ 66,235 $ 8 $ (1,436) $ 64,807 $ 202,778 $ — $ (7,815) $ 194,963 | |
Debt Securities, Available-for-sale, Unrealized Loss Position, Fair Value | December 31, 2023 Less than 12 months 12 months or greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Government and corporate debentures - fixed interest rate $ 2,467 $ (59) $ 171,160 $ (2,991) $ 173,627 $ (3,050) Government-sponsored enterprises debentures — — 3,134 (30) 3,134 (30) Government and corporate debentures - floating interest rate 1,748 (2) 2,331 (24) 4,079 (26) Total $ 4,215 $ (61) $ 176,625 $ (3,045) $ 180,840 $ (3,106) | December 31, 2022 Less than 12 months 12 months or greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Government and corporate debentures - fixed interest rate $ 186,664 $ (4,380) $ 210,024 $ (7,010) $ 396,688 $ (11,390) Government-sponsored enterprises debentures 5,590 (74) 977 (23) 6,567 (97) Government and corporate debentures - floating interest rate 17,643 (165) 4,714 (37) 22,357 (202) Total $ 209,897 $ (4,619) $ 215,715 $ (7,070) $ 425,612 $ (11,689) |
Marketable Securities | NOTE 4:- MARKETABLE SECURITIES The following tables summarize the Company's marketable debt securities, by contractual maturities, as of December 31, 2023 and 2022: December 31, 2023 2022 ONE YEAR OR LESS Amortized cost Gross unrealized gains Gross unrealized losses Fair Amortized cost Gross unrealized gains Gross unrealized losses Fair value value Government and corporate debentures - fixed interest rate $ 114,535 $ — $ (1,640) $ 112,895 $ 223,920 $ — $ (3,840) $ 220,080 Government-sponsored enterprises debentures 3,164 — (30) 3,134 3,501 — (27) 3,474 Government and corporate debentures - floating interest rate 5,750 2 — 5,752 7,902 — (7) 7,895 Total $ 123,449 $ 2 $ (1,670) $ 121,781 $ 235,323 $ — $ (3,874) $ 231,449 December 31, 2023 2022 AFTER ONE YEAR THROUGH FIVE YEARS Amortized cost Gross unrealized gains Gross unrealized losses Fair Amortized cost Gross unrealized gains Gross unrealized losses Fair value value Government and corporate debentures - fixed interest rate $ 62,142 $ — $ (1,410) $ 60,732 $ 184,158 $ — $ (7,550) $ 176,608 Government-sponsored enterprises debentures — — — — 3,163 — (70) 3,093 Government and corporate debentures - floating interest rate 4,093 8 (26) 4,075 15,457 — (195) 15,262 Total $ 66,235 $ 8 $ (1,436) $ 64,807 $ 202,778 $ — $ (7,815) $ 194,963 As of December 31, 2023 and 2022, interest receivable amounted to $1,262 and $2,388, respectively, and is included within marketable securities in the consolidated balance sheets. NOTE 4:- MARKETABLE SECURITIES (Cont.) The following tables summarize the Company’s marketable debt securities with unrealized losses as of December 31, 2023 and 2022, aggregated by category and the length of time that individual securities have been in a continuous loss position: December 31, 2023 Less than 12 months 12 months or greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Government and corporate debentures - fixed interest rate $ 2,467 $ (59) $ 171,160 $ (2,991) $ 173,627 $ (3,050) Government-sponsored enterprises debentures — — 3,134 (30) 3,134 (30) Government and corporate debentures - floating interest rate 1,748 (2) 2,331 (24) 4,079 (26) Total $ 4,215 $ (61) $ 176,625 $ (3,045) $ 180,840 $ (3,106) December 31, 2022 Less than 12 months 12 months or greater Total Fair value Gross unrealized losses Fair value Gross unrealized losses Fair value Gross unrealized losses Government and corporate debentures - fixed interest rate $ 186,664 $ (4,380) $ 210,024 $ (7,010) $ 396,688 $ (11,390) Government-sponsored enterprises debentures 5,590 (74) 977 (23) 6,567 (97) Government and corporate debentures - floating interest rate 17,643 (165) 4,714 (37) 22,357 (202) Total $ 209,897 $ (4,619) $ 215,715 $ (7,070) $ 425,612 $ (11,689) As of December 31, 2023 and 2022, marketable equity securities with readily determinable fair values, carried at fair value, amounted to $18,781 and $61,000, respectively. During the year ended December 31, 2023, unrealized gains recognized on equity securities still held as of December 31, 2023 were $6,581. During the year ended December 31, 2022, unrealized losses recognized on equity securities still held as of December 31, 2022 were $93,360. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Table Text Block] | December 31, 2023 2022 Government authorities $ 10,696 $ 5,659 Hedging transaction asset 6,572 — Prepaid expenses 17,889 13,548 Other current assets 12,635 9,312 $ 47,792 $ 28,519 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment, Net [Abstract] | |
Property, Plant and Equipment [Table Text Block] | December 31, 2023 2022 Cost: Leasehold improvements $ 125,075 $ 114,397 Computers, peripheral equipment and electronic equipment 44,356 39,653 Internal use software 11,119 7,724 Office furniture and equipment 8,645 7,306 Vehicles 270 250 189,465 169,330 Less - accumulated depreciation 52,537 60,592 Depreciated cost $ 136,928 $ 108,738 |
Schedule of depreciation expense related to property and equipment | Year ended December 31, 2023 2022 2021 Cost of revenues $ 3,060 $ 3,533 $ 3,186 Research and development, net 10,566 8,126 6,427 Selling and marketing 4,366 3,269 2,939 General and administrative 2,500 1,683 1,377 $ 20,492 $ 16,611 $ 13,929 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Schedule of fair values of assets acquired and liabilities assumed | The following table summarizes the fair values of the aggregate assets acquired and liabilities assumed: (in thousands) Cash $ 2,853 Trade receivables 378 Prepaid expenses and other current assets 124 Intangible assets 25,918 Goodwill 25,065 Total Assets $ 54,338 Current liabilities 3,698 Deferred tax liability 4,011 Total Liabilities $ 7,709 Cash consideration paid 45,582 Fair value of previous investment 1,047 Total purchase consideration $ 46,629 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of useful life of intangible assets | December 31, 2023 2022 Cost: Technology $ 28,819 $ 28,819 Customer relations 17,603 17,603 Non-Competition agreement 127 127 Customer data 12,043 12,043 Domain 552 552 Other intangible assets 291 291 59,435 59,435 Less - accumulated amortization 31,425 25,471 Intangible assets, net $ 28,010 $ 33,964 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | 2024 $ 5,866 2025 4,826 2026 4,243 2027 4,195 2028 3,603 Thereafter 5,277 $ 28,010 |
Schedule of amortization expense related to intangible assets included in consolidated statements of comprehensive loss | Year ended December 31, Amortization 2023 2022 2021 Cost of revenues $ 2,669 $ 2,968 $ 2,030 Research and development — — — Selling and marketing 3,281 3,274 2,918 General and administrative 4 4 4 $ 5,954 $ 6,246 $ 4,952 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities, Current [Abstract] | |
Schedule of Accrued Liabilities | December 31, 2023 2022 Accrued expenses $ 36,706 $ 30,469 Government authorities 31,982 25,530 Hedging transaction liability 7,868 32,195 $ 76,556 $ 88,194 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of net carrying amount | The net carrying amount of the 2025 Convertible Notes were as follows: December 31, 2023 2022 Principal original amount $ 575,000 $ 575,000 Unamortized debt issuance costs $ (5,286) $ (8,434) Converted to shares — — Net carrying amount $ 569,714 $ 566,566 NOTE 10:- CONVERTIBLE NOTES (Cont.) The Company recognized interest expense on the 2025 Convertible Notes as follows: Year ended December 31, 2023 2022 2021 Amortization of debt issuance costs $ 3,148 $ 3,131 $ 3,114 The net carrying amount of the 2023 Convertible Notes were as follows: December 31, 2023 2022 Principal original amount $ 442,750 $ 442,750 Unamortized debt issuance costs — (1,046) Converted to shares (80,083) (80,083) Repayment of convertible notes (362,667) — Net carrying amount $ — $ 361,621 The Company recognized interest expense on the 2023 Convertible Notes as follows: Year ended December 31, 2023 2022 2021 Amortization of debt issuance costs $ 1,046 $ 2,082 $ 2,184 |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | The components of lease expense were as follows for the periods presented: Year ended December 31, 2023 2022 2021 Operating and variable lease cost $ 38,839 $ 36,679 $ 27,124 Short-term lease cost 1,916 2,405 1,619 Total operating lease cost $ 40,755 $ 39,084 $ 28,743 |
Schedule of Supplemental Cash Flow Information | The weighted-average remaining lease term and discount rate related to operating leases were as follows: December 31, 2023 2022 Weighted average remaining lease term 17.88 14.63 Weighted average discount rate 5.7% 3.9% |
Schedule of Future Minimum Lease Payments of Operating Lease Liabilities | The maturities of the Company’s operating lease liabilities were as follows: Fiscal years ending December 31, December 31, 2023 2024 25,660 2025 39,673 2026 43,179 2027 46,237 2028 40,827 Thereafter 505,218 Total undiscounted lease payments 700,794 Less imputed interest 274,188 Total lease liabilities $ 426,606 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Stock by Class | Year ended December 31, 2023 2022 2021 Cost of revenues $ 15,013 $ 17,810 $ 15,462 Research and development 119,482 120,581 102,056 Selling and marketing 41,277 38,714 33,853 General and administrative 48,853 59,731 70,020 Total share-based compensation expense $ 224,625 $ 236,836 $ 221,391 |
Share-based Payment Arrangement, Option, Activity | Number Weighted Weighted Aggregate Balance at December 31, 2022 4,332,022 $ 94.11 5.69 $ 77,308 Granted 1,350 0.00 Exercised (278,704) 18.29 Forfeited (98,612) 154.22 Balance at December 31, 2023 3,956,056 97.93 4.93 167,822 Exercisable at December 31, 2023 3,518,327 89.95 4.60 165,092 Vested and expected to vest at December 31, 2023 3,942,119 $ 97.76 4.92 $ 167,609 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | Year ended December 31, 2023 2022 2021 Expected volatility 59.91% 52.75%-59.08% 48.91%-52.22% Expected dividends 0% 0% 0% Expected term (in years) 5.05 4.93-5.03 4.85-4.91 Risk free rate 4.11% 1.81%-4.34% 0.44%-1.22% The following table set forth the parameters used in computation of the ESPP for the years ended December 31, 2023, 2022 and 2021: Year ended December 31, 2023 2022 2021 Expected volatility 50.40%-67.14% 65.00%-77.20% 56.94%-59.23% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 5.17%-5.47% 0.60%-3.34% 0.06%-0.07% |
Share-Based Compensation Arrangement By Share-Based Payment Award, Option Summary Of Option Data | Year ended December 31, 2023 2022 2021 Weighted-average grant date fair value of options granted, per option $ 84.97 $ 49.14 $ 127.36 Total intrinsic value of the options exercised $ 19,450 $ 11,843 $ 114,113 |
Share-based Payment Arrangement, Option, Exercise Price Range | Exercise price Options outstanding Weighted average remaining Options exercisable Weighted average remaining (years) (years) 0-20.94 253,189 1.51 249,112 1.39 20.95-30.66 413,884 2.07 413,884 2.07 30.67-55.86 473,879 3.12 468,879 3.12 55.87-61.95 617,232 4.12 617,232 4.12 61.96-100.6 383,836 6.50 331,731 6.30 100.61-102.67 550,857 5.12 550,857 5.12 102.68-138.62 431,127 7.93 204,822 7.73 138.63-143.13 412,564 6.14 385,293 6.14 143.14-260.88 388,725 7.09 274,082 7.09 260.89-353.09 30,763 6.97 22,435 7.01 3,956,056 4.93 3,518,327 4.60 |
Schedule of Nonvested Restricted Stock Units Activity | Number Weighted Unvested as of December 31, 2022 3,122,132 $ 129.04 Granted 1,860,596 87.96 Vested (1,396,067) 127.17 Forfeited (375,240) 131.49 Unvested as of December 31, 2023 3,211,421 $ 105.77 |
Schedule of Total Accumulated Other Comprehensive Loss, Net | Year ended December 31, 2023 Unrealized gain (losses) on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning balance, net $ (11,689) $ (21,766) $ (33,455) Other comprehensive income (loss) before reclassifications, net 5,645 (12,556) (6,911) Amounts reclassified from accumulated other comprehensive income (loss) to earnings: Cost of revenues — 1,993 1,993 Research and development, net — 25,160 25,160 Selling and marketing — 8,997 8,997 General and administrative — 5,460 5,460 Financial expenses, net 2,948 2,948 Total accumulated other comprehensive income (loss), net $ (3,096) $ 7,288 $ 4,192 NOTE 13:- SHAREHOLDERS' EQUITY (Cont.) Year ended December 31, 2022 Unrealized gain (losses) on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning balance, net $ (933) $ (123) $ (1,056) Other comprehensive income (loss) before reclassifications, net (12,364) (39,889) (52,253) Amounts reclassified from accumulated other comprehensive income (loss) to earnings: Cost of revenues — 938 938 Research and development, net — 10,912 10,912 Selling and marketing — 3,963 3,963 General and administrative — 2,433 2,433 Financial income, net 1,608 — 1,608 Total accumulated other comprehensive income (loss), net $ (11,689) $ (21,766) $ (33,455) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign | Year ended December 31, 2023 2022 2021 Domestic $ 25,408 $ (486,294) $ (72,066) Foreign 12,431 18,451 19,059 Income (loss) before taxes on income $ 37,839 $ (467,843) $ (53,007) |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2023 2022 Deferred tax assets: Net operating loss carryforward $ 17,417 $ 15,050 Operating lease liabilities 54,861 28,790 Research and development expenses carryforward 13,685 40,330 Share-based compensation 54,310 42,553 Depreciation differences 352 489 Accrued employees costs 4,138 4,198 Other 2,779 1,636 Deferred tax assets 147,542 133,046 Valuation allowance (91,616) (96,969) Deferred tax liabilities: Unrealized gains on marketable and other equity securities 5,277 14,032 Property and equipment 1,972 1,934 Operating lease ROU assets 52,502 28,289 Acquired Intangible assets (1) 2,057 2,525 Other 1,285 4,214 Deferred tax liabilities $ 63,093 $ 50,994 Deferred tax liabilities,net $ 7,167 $ 14,917 Deferred taxes are included in the consolidated balance sheets, as follows: Long-term liabilities $ 7,167 $ 14,917 |
Schedule of Components of Income Tax Expense (Benefit) | Year ended December 31, 2023 2022 2021 Current $ 10,686 $ 14,917 $ 10,621 Deferred (5,984) (57,897) 53,581 $ 4,702 $ (42,980) $ 64,202 Domestic $ 538 $ (55,456) $ 59,053 Foreign 4,164 12,476 5,149 $ 4,702 $ (42,980) $ 64,202 |
Schedule of Effective Income Tax Rate Reconciliation | Year ended December 31, 2023 2022 2021 Income (loss) before taxes on income $ 37,839 $ (467,843) $ (53,007) Statutory tax rate 23 % 23 % 23 % Theoretical income tax expense (benefit) 8,703 (107,604) (12,192) Change in valuation allowance 9,273 18,179 40,520 Share-based compensation 1,236 3,132 (2,245) Non-deductible expenses and other permanent differences (8,265) 939 (1,202) Effect of subsidiaries with different tax rates 4,597 1,859 4,171 Preferred enterprise benefits (7,709) 39,108 37,001 Intercompany intangible asset sale — — (3,913) Income taxes related to prior years (1,001) (2,375) — Uncertain tax positions (1,587) 3,894 416 Other (545) (112) 1,646 Income tax expense (benefit) $ 4,702 $ (42,980) $ 64,202 |
Schedule of Unrecognized Tax Benefits Roll Forward | Year ended December 31, 2023 2022 2021 Opening balance $ 3,338 $ 5,669 $ 1,811 Additions based on tax positions related to prior year — 63 3,282 Additions based on tax positions related to current year 886 2,645 576 Decreases based on tax positions related to prior year (2,422) (5,039) — Closing balance $ 1,802 $ 3,338 $ 5,669 |
FINANCIAL INCOME (EXPENSES), _2
FINANCIAL INCOME (EXPENSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Year ended December 31, 2023 2022 2021 Bank charges $ (628) $ (728) $ (761) Income (expenses) related to hedging activity (6,998) 9,747 6,408 Amortization of issuance costs (4,194) (5,213) (5,298) Exchange rate loss (1,499) (6,403) (6,711) Net gain (loss) from equity securities 30,608 (200,338) 267,831 Total income (expenses ) 17,289 (202,935) 261,469 Interest income 45,185 19,422 10,474 Total financial income (expenses), net $ 62,474 $ (183,513) $ 271,943 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Year ended December 31, 2023 2022 2021 Numerator: Net income (loss) $ 33,137 $ (424,863) $ (117,209) Denominator: Basic weighted-average shares used to compute net income (loss) per share 56,829,962 57,993,364 57,004,154 Weighted-average effect of dilutive ordinary shares: Employee stock options and ESPP shares 1,039,744 — — RSUs and PSUs 533,331 — — Dilutive weighted-average shares used to compute net income (loss) per share 58,403,037 57,993,364 57,004,154 Basic net income (loss) per share $ 0.58 $ (7.33) $ (2.06) Diluted net income (loss) per share $ 0.57 $ (7.33) $ (2.06) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table] | Year ended December 31, 2023 2022 2021 Employee stock options and ESPP shares 2,245,872 4,332,022 4,720,600 RSUs and PSUs 818,288 3,123,019 2,225,516 Convertible Notes 1,426,748 3,969,514 3,969,514 4,490,908 11,424,555 10,915,630 |
SEGMENTS, CUSTOMERS AND GEOGR_2
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area | Year ended December 31, 2023 2022 2021 North America (*) $ 938,534 $ 819,245 $ 731,251 Europe 380,495 350,200 334,677 Latin America 64,492 56,712 55,244 Asia and others 178,144 161,509 148,485 $ 1,561,665 $ 1,387,666 $ 1,269,657 |
Schedule of Disclosure on Geographic Areas, Long-Lived Assets in Individual Foreign Countries by Country | December 31, 2023 2022 Europe and Asia (*) 537,572 266,648 North America 19,918 42,698 $ 557,490 $ 309,346 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Significant Accounting Policies [Line Items] | ||||
Weighted average interest rates of short-term deposits | 6.60% | 5.70% | ||
Time deposits, weighted average interest rate, maturities year one | 2% | 2.20% | ||
Equity Securities without Readily Determinable Fair Value, Amount | $ 21,310,000 | $ 9,950,000 | ||
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Annual Amount | 4,156,000 | 174,000 | $ 2,833,000 | |
Marketable equity securities with readily determinable fair values | 400,000 | 3,000,000 | ||
Equity Securities without Readily Determinable Fair Value, Upward Price Adjustment, Cumulative Amount | 8,276,000 | |||
Equity Securities without Readily Determinable Fair Value, Impairment Loss, Cumulative Amount | 3,400,000 | |||
Cash Flow Hedge Derivative Instrument Assets at Fair Value | 14,068,000 | 0 | ||
Cash Flow Hedge Derivative Instrument Liabilities at Fair Value | 5,374,000 | |||
Derivative, Fair Value, Net | 21,471,000 | |||
Accumulated income (loss) on derivatives | 29,054,000 | (21,643,000) | (5,761,000) | |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | $ (6,998,000) | 9,747,000 | 6,408,000 | |
Severance pay rate | 8.33% | |||
Severance Costs | $ 22,537,000 | 24,987,000 | 22,413,000 | |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 100% | |||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | $ 22,500 | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 4% | |||
Defined Contribution Plan, Cost | $ 1,965,000 | 2,672,000 | 2,271,000 | |
Decrease to accumulated deficit from early adoption of ASU 2020-06 using the modified retrospective approach | $ 53,527,000 | |||
Decrease to additional paid-in capital from early adoption of ASU 2020-06 using the modified retrospective approach | 215,712,000 | |||
Price allocated to remaining performance obligations | $ 731,508,000 | |||
Percentage of remaining performance obligation | 81% | |||
Deferred commissions | $ 4,125,000 | 4,396,000 | ||
Capitalized Computer Software, Additions | 3,395,000 | 2,741,000 | 2,519,000 | |
Advertising Expense | 142,775,000 | 224,266,000 | 284,540,000 | |
Grant Proceeds | 137,000 | 535,000 | $ 509,000 | |
Deferred Revenue | 675,992,000 | 599,799,000 | ||
IncreaseToConvertibleNotes | $ 162,185,000 | |||
OperatingLeaseRightOfUseAssetMember | ||||
Significant Accounting Policies [Line Items] | ||||
Asset Impairment Charges | 25,525,000 | |||
Certain employees over 50 years of age | ||||
Significant Accounting Policies [Line Items] | ||||
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Amount | 30,000 | |||
Designated as hedging instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Accumulated income (loss) on derivatives | 8,717,000 | (21,383,000) | ||
Derivative, Notional Amount | 496,129,000 | 382,969,000 | ||
Not designated as hedging instrument | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, Notional Amount | 36,779,000 | 156,404,000 | ||
Derivative Asset | 991,000 | 0 | ||
Derivative Liability | $ 2,494,000 | $ 10,724,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES - Schedule of useful life of property and equipment (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Computers, peripheral equipment and electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 33% |
Computers, peripheral equipment and electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 15% |
Computers, peripheral equipment and electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 33% |
Internal use software | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 33% |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 6% |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 6% |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 14% |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Property Plant And Equipment Depreciation Rate | 15% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES - Schedule of useful life of intangible assets (Details) | Dec. 31, 2023 |
Technology | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Technology | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 8 years |
Customer relations | Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
Customer relations | Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Customer data | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Non-Competition agreement | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Domain | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of fair value hierarchy of financial assets and liabilities measured at fair value on recurring basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | Assets and Liabilities Measured at Fair Value on a Recurring Basis The following tables represent the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2023 and 2022: December 31, 2023 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 533,854 $ — $ — $ 533,854 Marketable securities 22,721 182,648 — 205,369 Foreign currency derivative assets — 15,059 — 15,059 Financial liabilities: Foreign currency derivative liabilities — (7,868) — (7,868) $ 556,575 $ 189,839 $ — $ 746,414 December 31, 2022 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 51,855 $ — $ — $ 51,855 Marketable securities 72,194 415,219 — 487,413 Foreign currency derivative assets — — — — Financial liabilities: Foreign currency derivative liabilities — (32,195) — (32,195) $ 124,049 $ 383,024 $ — $ 507,073 | |
Fair Value, recurring | ||
Financial liabilities: | ||
Fair Value, Net Asset (Liability) | $ 746,414 | $ 507,073 |
Fair Value, recurring | Money market funds | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 533,854 | 51,855 |
Fair Value, recurring | Marketable securities | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 205,369 | 487,413 |
Fair Value, recurring | Foreign currency derivative assets | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 15,059 | 0 |
Fair Value, recurring | Foreign currency derivative liabilities | ||
Financial liabilities: | ||
Financial Liabilities Fair Value Disclosure | (7,868) | (32,195) |
Fair Value, recurring | Level 1 | ||
Financial liabilities: | ||
Fair Value, Net Asset (Liability) | 556,575 | 124,049 |
Fair Value, recurring | Level 1 | Money market funds | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 533,854 | 51,855 |
Fair Value, recurring | Level 1 | Marketable securities | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 22,721 | 72,194 |
Fair Value, recurring | Level 1 | Foreign currency derivative assets | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 1 | Foreign currency derivative liabilities | ||
Financial liabilities: | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 2 | ||
Financial liabilities: | ||
Fair Value, Net Asset (Liability) | 189,839 | 383,024 |
Fair Value, recurring | Level 2 | Money market funds | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 2 | Marketable securities | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 182,648 | 415,219 |
Fair Value, recurring | Level 2 | Foreign currency derivative assets | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 15,059 | 0 |
Fair Value, recurring | Level 2 | Foreign currency derivative liabilities | ||
Financial liabilities: | ||
Financial Liabilities Fair Value Disclosure | (7,868) | (32,195) |
Fair Value, recurring | Level 3 | ||
Financial liabilities: | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Fair Value, recurring | Level 3 | Money market funds | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 3 | Marketable securities | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 3 | Foreign currency derivative assets | ||
Financial assets: | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, recurring | Level 3 | Foreign currency derivative liabilities | ||
Financial liabilities: | ||
Financial Liabilities Fair Value Disclosure | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | ||
Fair Value Measurements, Nonrecurring | Assets Measured at Fair Value on a Non-Recurring Basis Upon the occurrence of certain events, the Company remeasures the fair value of certain assets on a non-recurring basis. These assets include equity investments in privately held companies for which the Company utilizes the measurement alternative, property, plant and equipment, ROU assets, intangible assets and goodwill. Investments in Privately Held Companies As disclosed in Note 2(k), the Company accounts for equity investments in private companies without readily determinable market values using the measurement alternative. If measured at fair value, these investments are generally classified within Level 3 of the fair value hierarchy, because significant unobservable inputs or data in an inactive market are used in estimating their fair value. ROU Assets and Related Leasehold Improvements During the year ended December 31, 2023, ROU assets and related leasehold improvements with an aggregate carrying amount of $39,198 were written down to an aggregate fair value of $13,293, resulting in an impairment charge of $25,905. Refer to Note 18 for additional information. The fair value of these assets, which represents a Level 3 measurement, was estimated using an income approach based market participant expectations of future sublease income, taking into consideration the estimated time period it will take to obtain a sublease, the sublease rate, and the applicable discount rate, which are considered unobservable inputs. | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restructuring Costs and Asset Impairment Charges | $ 32,614 | |
Fair Value Disclosure of Asset and Liability Not Measured at Fair Value | Assets and Liabilities Measured at Fair Value for Disclosure Purposes Only Convertible Notes As of December 31, 2023, the estimated fair value of the 2025 Convertible Notes was $522,531 (as disclosed in Note 10, the 2023 Convertible Notes were fully repaid on July 1, 2023). As of December 31, 2022, the total estimated fair value of the Convertible Notes was $836,224 (the fair value of 2023 Convertible Notes and 2025 Convertible Notes was $351,787 and $484,438, respectively). The fair value of the Convertible Notes is considered to be Level 2 within the fair value hierarchy and was determined based on quoted prices of the Convertible Notes in an over-the-counter market. Other Assets and Liabilities The carrying values of certain of the Company’s financial instruments, other than those presented above, including cash and cash equivalents, short-term and restricted deposits, trade receivables, trade payables, employees and payroll accruals and accrued expenses and other current liabilities approximate fair values due to the short-term maturities of these instruments. | |
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Convertible Debt, Fair Value Disclosures | $ 522,531 | $ 836,224 |
Fair Value, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
OperatingLeaseRightOfUseAssetsAndAssociatedPropertyAndEquipmentCarryingValue | 39,198 | |
OperatingLeaseRightOfUseAssetsAndAssociatedPropertyAndEquipmentFairValue | $ 13,293 | |
Convertible Note 2023 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Convertible Debt, Fair Value Disclosures | 351,787 | |
Convertible Note 2025 | ||
Fair Value Disclosure, Asset and Liability, Not Measured at Fair Value [Line Items] | ||
Convertible Debt, Fair Value Disclosures | $ 484,438 |
MARKETABLE SECURITIES - Schedul
MARKETABLE SECURITIES - Schedule of Marketable Securities Classified as Available-for-sale Securities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair value | $ 140,563,000 | $ 292,449,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 4,215,000 | 209,897,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (61,000) | (4,619,000) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 176,625,000 | 215,715,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (3,045,000) | (7,070,000) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 180,840,000 | 425,612,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (3,106,000) | (11,689,000) |
Less Than A Year [Member] | ||
Amortized cost | 123,449,000 | 235,323,000 |
Gross unrealized gains | 2,000 | 0 |
Gross unrealized losses | (1,670,000) | (3,874,000) |
Fair value | 121,781,000 | 231,449,000 |
Government and corporate debentures - fixed interest rate Less Than A Year [Member] | ||
Amortized cost | 114,535,000 | 223,920,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,640,000) | (3,840,000) |
Fair value | 112,895,000 | 220,080,000 |
Government Sponsored Enterprises Less Than A Year [Member] | ||
Amortized cost | 3,164,000 | 3,501,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (30,000) | (27,000) |
Fair value | 3,134,000 | 3,474,000 |
Government and corporate debentures - floating interest rate Less Than A Year[Member] | ||
Amortized cost | 5,750,000 | 7,902,000 |
Gross unrealized gains | 2,000 | 0 |
Gross unrealized losses | 0 | (7,000) |
Fair value | 5,752,000 | 7,895,000 |
More Than A Year Through Five Years [Member] | ||
Amortized cost | 66,235,000 | 202,778,000 |
Gross unrealized gains | 8,000 | 0 |
Gross unrealized losses | (1,436,000) | (7,815,000) |
Fair value | 64,807,000 | 194,963,000 |
Government and corporate debentures - fixed interest rate More Than A Year Through Five Years [Member] | ||
Amortized cost | 62,142,000 | 184,158,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | (1,410,000) | (7,550,000) |
Fair value | 60,732,000 | 176,608,000 |
Government-sponsored enterprises More Than A Year Through Five Years [Member] | ||
Amortized cost | 0 | 3,163,000 |
Gross unrealized gains | 0 | 0 |
Gross unrealized losses | 0 | (70,000) |
Fair value | 0 | 3,093,000 |
Government and corporate debentures - floating interest rate More Than A Year Through Five Years [Member] | ||
Amortized cost | 4,093,000 | 15,457,000 |
Gross unrealized gains | 8,000 | 0 |
Gross unrealized losses | (26,000) | (195,000) |
Fair value | 4,075,000 | 15,262,000 |
Government and corporate debentures - fixed interest rate | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 2,467,000 | 186,664,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (59,000) | (4,380,000) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 171,160,000 | 210,024,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (2,991,000) | (7,010,000) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 173,627,000 | 396,688,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (3,050,000) | (11,390,000) |
Government-sponsored enterprises debentures | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 0 | 5,590,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 0 | (74,000) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 3,134,000 | 977,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (30,000) | (23,000) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 3,134,000 | 6,567,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | (30,000) | (97,000) |
Government and corporate debentures - floating interest rate | ||
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months | 1,748,000 | 17,643,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | (2,000) | (165,000) |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2,331,000 | 4,714,000 |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | (24,000) | (37,000) |
Debt Securities, Available-for-sale, Unrealized Loss Position | 4,079,000 | 22,357,000 |
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss | $ (26,000) | $ (202,000) |
MARKETABLE SECURITIES - Narrati
MARKETABLE SECURITIES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest receivable | $ 1,262 | $ 2,388 |
Marketable securities | 18,781 | 61,000 |
Unrealized gain | $ 6,581 | $ 93,360 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Government authorities | $ 10,696 | $ 5,659 |
Hedging transaction asset | 6,572 | 0 |
Prepaid expenses | 17,889 | 13,548 |
Other current assets | 12,635 | 9,312 |
Prepaid expenses and other current assets | $ 47,792 | $ 28,519 |
PROPERTY AND EQUIPMENT, NET - S
PROPERTY AND EQUIPMENT, NET - Schedule of composition of property and equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Cost: | $ 189,465 | $ 169,330 |
Less - accumulated depreciation | 52,537 | 60,592 |
Depreciated cost | 136,928 | 108,738 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Cost: | 125,075 | 114,397 |
Computers, peripheral equipment and electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost: | 44,356 | 39,653 |
Internal use software | ||
Property, Plant and Equipment [Line Items] | ||
Cost: | 11,119 | 7,724 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost: | 8,645 | 7,306 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Cost: | $ 270 | $ 250 |
PROPERTY AND EQUIPMENT, NET -_2
PROPERTY AND EQUIPMENT, NET - Schedule of depreciation expense related to property and equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 20,492 | $ 16,611 | $ 13,929 |
Cost of revenues | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 3,060 | 3,533 | 3,186 |
Research and development, net | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 10,566 | 8,126 | 6,427 |
Selling and marketing | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 4,366 | 3,269 | 2,939 |
General and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 2,500 | $ 1,683 | $ 1,377 |
PROPERTY AND EQUIPMENT, NET - N
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment, Net [Abstract] | ||
Reduction to the cost and accumulated depreciation of fully depreciated equipment no longer in use | $ 28,546 | $ 5,920 |
BUSINESS COMBINATION - Narrativ
BUSINESS COMBINATION - Narrative (Details) - Three privately held companies - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100% | |
Total purchase consideration | $ 46,629 | |
Amount of convertible loan agreement | 1,047 | $ 1,047 |
Payment of compensation of issuance of equity and cash | $ 19,167 | |
Weighted-average useful life of identified intangible assets acquired | 6 years 8 months 12 days | |
Business Combination, Acquisition Related Costs | $ 602 |
BUSINESS COMBINATION - Schedule
BUSINESS COMBINATION - Schedule of Fair Values of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 49,329 | $ 49,329 | |
Cash consideration paid | $ 0 | 0 | $ 42,729 |
Three privately held companies | |||
Business Acquisition [Line Items] | |||
Cash | 2,853 | ||
Trade receivables | 378 | ||
Prepaid expenses and other current assets | 124 | ||
Intangible assets | 25,918 | ||
Goodwill | 25,065 | ||
Total Assets | 54,338 | ||
Current liabilities | 3,698 | ||
Deferred tax liability | 4,011 | ||
Total Liabilities | 7,709 | ||
Cash consideration paid | 45,582 | ||
Fair value of previous investment | 1,047 | $ 1,047 | |
Total purchase consideration | $ 46,629 |
INTANGIBLE ASSETS, NET - Schedu
INTANGIBLE ASSETS, NET - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 59,435 | $ 59,435 |
Finite-Lived Intangible Assets, Accumulated Amortization | 31,425 | 25,471 |
Intangible assets, net | 28,010 | 33,964 |
Technology | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 28,819 | 28,819 |
Customer relations | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 17,603 | 17,603 |
Non-Competition agreement | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 127 | 127 |
Customer data | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 12,043 | 12,043 |
Domain | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | 552 | 552 |
Other Intangible Assets [Member] | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Finite-Lived Intangible Assets, Gross | $ 291 | $ 291 |
INTANGIBLE ASSETS, NET - Sche_2
INTANGIBLE ASSETS, NET - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2024 | $ 5,866 | |
2025 | 4,826 | |
2026 | 4,243 | |
2027 | 4,195 | |
2028 | 3,603 | |
Thereafter | 5,277 | |
Intangible assets, net | $ 28,010 | $ 33,964 |
INTANGIBLE ASSETS, NET - Sche_3
INTANGIBLE ASSETS, NET - Schedule of amortization of intangible assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 5,954 | $ 6,246 | $ 4,952 |
Cost of revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 2,669 | 2,968 | 2,030 |
Research and development, net | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 0 | 0 | 0 |
Selling and marketing | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | 3,281 | 3,274 | 2,918 |
General and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization | $ 4 | $ 4 | $ 4 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities, Current [Abstract] | ||
Accrued expenses | $ 36,706 | $ 30,469 |
Government authorities | 31,982 | 25,530 |
Hedging transaction liability | 7,868 | 32,195 |
Total accrued expenses and other current liabilities | $ 76,556 | $ 88,194 |
CONVERTIBLE NOTES - Narrative (
CONVERTIBLE NOTES - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) | |
Repayment of convertible notes | $ 362,667 | $ 0 | $ 0 |
2025 Convertible notes | |||
Debt Instrument, Annual Principal Payment | $ 575,000 | ||
Coupon rate | 0% | ||
Maturity date | Aug. 15, 2025 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 2.4813 | ||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 15,712 | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.56% | ||
2025 Convertible notes | Ordinary Shares | |||
Debt Instrument, Annual Principal Payment | $ 1 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 403.01 | ||
2023 Convertible note | |||
Debt Instrument, Annual Principal Payment | $ 442,750 | ||
Coupon rate | 0% | ||
Maturity date | Jan. 01, 2023 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 7.0113 | ||
Debt Issuance Costs, Line of Credit Arrangements, Net | $ 12,601 | ||
Debt Instrument, Interest Rate, Effective Percentage | 0.58% | ||
Repayment of convertible notes | $ 362,667 | ||
2023 Convertible note | Ordinary Shares | |||
Debt Instrument, Annual Principal Payment | $ 1 | ||
Debt Instrument, Convertible, Conversion Price | $ / shares | $ 142.63 | ||
Number of ordinary shares issue for partially conversion of convertible notes | shares | 560,770 | ||
2025 Capped Call | |||
Aggregate amount | $ 46,000 | ||
2023 Capped Call | |||
Aggregate amount | $ 45,338 |
CONVERTIBLE NOTES - Schedule of
CONVERTIBLE NOTES - Schedule of Net Carrying Amount (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net carrying amount | $ 569,714,000 | $ 566,566,000 | |
Amortization of debt issuance costs | 4,194,000 | 5,213,000 | $ 5,298,000 |
2025 Convertible notes | |||
Principal original amount | 575,000,000 | 575,000,000 | |
Unamortized debt issuance costs | (5,286,000) | (8,434,000) | |
Converted to shares | 0 | 0 | |
Net carrying amount | 569,714,000 | 566,566,000 | |
Amortization of debt issuance costs | 3,148,000 | 3,131,000 | 3,114,000 |
2023 Convertible note | |||
Principal original amount | 442,750,000 | 442,750,000 | |
Unamortized debt issuance costs | 0 | (1,046,000) | |
Converted to shares | (80,083,000) | (80,083,000) | |
Repayment of convertible notes | (362,667,000) | 0 | |
Net carrying amount | 0 | 361,621,000 | |
Amortization of debt issuance costs | $ 1,046,000 | $ 2,082,000 | $ 2,184,000 |
LEASE - Narrative (Details)
LEASE - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | |||
Operating Lease, Payments | $ 43,324 | $ 45,051 | |
Operating and variable lease cost | $ 38,839 | $ 36,679 | $ 27,124 |
LEASE - Schedule of Components
LEASE - Schedule of Components of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Operating Lease, Description [Abstract] | |||
Operating and variable lease cost | $ 38,839 | $ 36,679 | $ 27,124 |
Short-term lease cost | 1,916 | 2,405 | 1,619 |
Total operating lease cost | $ 40,755 | $ 39,084 | $ 28,743 |
LEASE - Schedule of Supplementa
LEASE - Schedule of Supplemental Cash Flow Information (Details) | Dec. 31, 2023 Rate | Dec. 31, 2022 Rate |
Leases [Abstract] | ||
Weighted average remaining lease term | 17 years 10 months 17 days | 14 years 7 months 17 days |
Weighted average discount rate | 5.70% | 3.90% |
LEASE - Schedule of Future Mini
LEASE - Schedule of Future Minimum Lease Payments of Operating Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessee Disclosure [Abstract] | |
2024 | $ 25,660 |
2025 | 39,673 |
2026 | 43,179 |
2027 | 46,237 |
2028 | 40,827 |
Thereafter | 505,218 |
Total undiscounted lease payments | 700,794 |
Less imputed interest | 274,188 |
Total lease liabilities | $ 426,606 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2021 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor Obligations, Maximum Exposure, Undiscounted | $ 700 |
SHAREHOLDERS' EQUITY - Narrativ
SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 29, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders Equity Note [Line Items] | ||||
Number of repurchased outstanding ordinary shares | 1,348,865 | 2,772,811 | ||
Payments for Repurchase of Common Stock | $ 127,017 | $ 231,873 | $ 200,000 | |
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Amount | $ 321,553 | |||
Share-based Payment Arrangement, Nonvested Award, Cost Not yet Recognized, Period for Recognition | 2 years 3 months 21 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | 706,629 | |||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ 176.72 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 160,576 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 157,119 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Fair Value | $ 126,599 | |||
Stock Repurchase Program, Authorized Amount | $ 500,000 | |||
Share-based Payment Arrangement, Option | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,350 | |||
Employee Shares Incentive Plan (the Plan") [Member]" | Share-based Payment Arrangement, Option | ||||
Stockholders Equity Note [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 14,179 |
SHAREHOLDERS' EQUITY - Schedule
SHAREHOLDERS' EQUITY - Schedule of Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 224,625 | $ 236,836 | $ 221,391 |
Cost of revenues | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 15,013 | 17,810 | 15,462 |
Research and development | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 119,482 | 120,581 | 102,056 |
Selling and marketing | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 41,277 | 38,714 | 33,853 |
General and administrative | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 48,853 | $ 59,731 | $ 70,020 |
SHAREHOLDERS' EQUITY - Summary
SHAREHOLDERS' EQUITY - Summary Of Employee Options Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 29, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Number of options | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 160,576 | ||
Share-based Payment Arrangement, Option | |||
Number of options | |||
Outstanding, balance | 4,332,022 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 1,350 | ||
Exercised | (278,704) | ||
Forfeited | (98,612) | ||
Outstanding, balance | 3,956,056 | 4,332,022 | |
Exercisable options at the end of the year | 3,518,327 | ||
Options vested and expected to vest at the end of the year | 3,942,119 | ||
Weighted average exercise price | |||
Outstanding, weighted average exercise price | $ 94.11 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Grants in Period, Weighted Average Exercise Price | $ 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Exercises in Period, Weighted Average Exercise Price | 18.29 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | 154.22 | ||
Outstanding, weighted average exercise price | 97.93 | $ 94.11 | |
Exercisable, weighted average exercise price | 89.95 | ||
Options vested and expected to vest at the end of the year | $ 97.76 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 4 years 11 months 4 days | 5 years 8 months 8 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Remaining Contractual Term | 4 years 7 months 6 days | ||
Outstanding at the beginning of the year, aggregate intrinsic value | $ 77,308 | ||
Outstanding at the ending of the year, aggregate intrinsic value | 167,822 | $ 77,308 | |
Exercisable, aggregate intrinsic value | 165,092 | ||
Options vested and expected to vest at the end of the year, aggregate intrinsic value | $ 167,609 |
SHAREHOLDERS' EQUITY - Schedu_2
SHAREHOLDERS' EQUITY - Schedule of Stock Option Valuation Assumptions (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Payment Arrangement, Option | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 59.91% | 52.75% | 48.91% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 59.08% | 52.22% | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 18 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 4.11% | 1.81% | 0.44% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 4.34% | 1.22% | |
Share-based Payment Arrangement, Option | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 4 years 11 months 4 days | 4 years 10 months 6 days | |
Share-based Payment Arrangement, Option | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 5 years 10 days | 4 years 10 months 28 days | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Minimum | 50.40% | 65% | 56.94% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate, Maximum | 67.14% | 77.20% | 59.23% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0% | 0% | 0% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months | 6 months |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Minimum | 5.17% | 0.60% | 0.06% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate, Maximum | 5.47% | 3.34% | 0.07% |
SHAREHOLDERS' EQUITY - Summar_2
SHAREHOLDERS' EQUITY - Summary of Options Data (Details) - Share-based Payment Arrangement, Option - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 84.97 | $ 49.14 | $ 127.36 |
Total intrinsic value of the options exercised | $ 19,450 | $ 11,843 | $ 114,113 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Weighted Average Remaining Contractual Term | 4 years 11 months 1 day | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Intrinsic Value | $ 167,822 | $ 77,308 |
SHAREHOLDERS' EQUITY - Schedu_3
SHAREHOLDERS' EQUITY - Schedule Of Options Outstanding and Exercisable by Exercise Price (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 3,956,056 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 4 years 11 months 4 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 3,518,327 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 4 years 7 months 6 days |
Share-based Payment Arrangement, Option | 0-20.94 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 253,189 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 1 year 6 months 3 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 249,112 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 1 year 4 months 20 days |
Share-based Payment Arrangement, Option | 20.95-30.66 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 413,884 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 2 years 25 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 413,884 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 2 years 25 days |
Share-based Payment Arrangement, Option | 30.67-55.86 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 473,879 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 3 years 1 month 13 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 468,879 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 3 years 1 month 13 days |
Share-based Payment Arrangement, Option | 55.87-61.95 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 617,232 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 4 years 1 month 13 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 617,232 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 4 years 1 month 13 days |
Share-based Payment Arrangement, Option | 61.96-100.6 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 383,836 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 6 months |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 331,731 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 6 years 3 months 18 days |
Share-based Payment Arrangement, Option | 100.61-102.67 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 550,857 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 5 years 1 month 13 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 550,857 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 5 years 1 month 13 days |
Share-based Payment Arrangement, Option | 102.68-138.62 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 431,127 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 7 years 11 months 4 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 204,822 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 7 years 8 months 23 days |
Share-based Payment Arrangement, Option | 138.63-143.13 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 412,564 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 1 month 20 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 385,293 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 6 years 1 month 20 days |
Share-based Payment Arrangement, Option | 143.14-260.88 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 388,725 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 7 years 1 month 2 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 274,082 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 7 years 1 month 2 days |
Share-based Payment Arrangement, Option | 260.89-353.09 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Outstanding | 30,763 |
Share-based Payment Arrangement, Option, Exercise Price Range, Outstanding, Weighted Average Remaining Contractual Term | 6 years 11 months 19 days |
Share-based Payment Arrangement, Option, Exercise Price Range, Shares Exercisable | 22,435 |
Share-based Payment Arrangement, Option, Exercise Price Range, Exercisable, Weighted Average Remaining Contractual Term | 7 years 3 days |
SHAREHOLDERS' EQUITY - Schedu_4
SHAREHOLDERS' EQUITY - Schedule of Restricted Stock Unit Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 29, 2022 | Dec. 31, 2023 | |
Number of shares | ||
Granted | 157,119 | |
Restricted Stock Units (RSUs) | ||
Number of shares | ||
Unvested as of December 31, 2020 | 3,122,132 | |
Granted | 1,860,596 | |
Vested | (1,396,067) | |
Forfeited | (375,240) | |
Unvested as of December 31, 2021 | 3,211,421 | |
Weighted average grant date fair value per share | ||
Unvested as of December 31, 2020 | $ 129.04 | |
Granted | 87.96 | |
Vested | 127.17 | |
Forfeited | 131.49 | |
Unvested as of December 31, 2021 | $ 105.77 |
SHAREHOLDERS' EQUITY - Schedu_5
SHAREHOLDERS' EQUITY - Schedule of summary of the changes in accumulated other comprehensive income (loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | $ (33,455) | $ (1,056) |
Other comprehensive income before reclassifications, net | (6,911) | (52,253) |
Total accumulated other comprehensive income, net | 4,192 | (33,455) |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 1,993 | 938 |
Research and development, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 25,160 | 10,912 |
Selling and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 8,997 | 3,963 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 5,460 | 2,433 |
Financial expenses, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 2,948 | 1,608 |
Unrealized gain (losses) on marketable securities | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | (11,689) | (933) |
Other comprehensive income before reclassifications, net | 5,645 | (12,364) |
Total accumulated other comprehensive income, net | (3,096) | (11,689) |
Unrealized gain (losses) on marketable securities | Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Unrealized gain (losses) on marketable securities | Research and development, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Unrealized gain (losses) on marketable securities | Selling and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Unrealized gain (losses) on marketable securities | General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Unrealized gain (losses) on marketable securities | Financial expenses, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 2,948 | 1,608 |
Unrealized gain (losses) on cash flow hedges | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | (21,766) | (123) |
Other comprehensive income before reclassifications, net | (12,556) | (39,889) |
Total accumulated other comprehensive income, net | 7,288 | (21,766) |
Unrealized gain (losses) on cash flow hedges | Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 1,993 | 938 |
Unrealized gain (losses) on cash flow hedges | Research and development, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 25,160 | 10,912 |
Unrealized gain (losses) on cash flow hedges | Selling and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 8,997 | 3,963 |
Unrealized gain (losses) on cash flow hedges | General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 5,460 | 2,433 |
Unrealized gain (losses) on cash flow hedges | Financial expenses, net | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | $ 0 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2019 | |
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23% | 23% | 23% | |
Other Tax Expense (Benefit) | $ 8,152 | |||
Foreign Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 35% | ||
Operating Loss Carryforwards | $ 134,081 | |||
Foreign Tax Authority | Minimum | ||||
Income Tax Disclosure [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 22% | |||
Domestic Tax Authority | ||||
Income Tax Disclosure [Line Items] | ||||
Operating Loss Carryforwards | $ 90,227 |
INCOME TAXES - Schedule of Inco
INCOME TAXES - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 25,408 | $ (486,294) | $ (72,066) |
Foreign | 12,431 | 18,451 | 19,059 |
Income (loss) before taxes on income | $ 37,839 | $ (467,843) | $ (53,007) |
INCOME TAXES - Schedule of Defe
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets, Net [Abstract] | ||
Net operating loss carryforward | $ 17,417 | $ 15,050 |
Operating lease liabilities | 54,861 | 28,790 |
Research and development expenses carryforward | 13,685 | 40,330 |
Share-based compensation | 54,310 | 42,553 |
Depreciation differences | 352 | 489 |
Accrued employees costs | 4,138 | 4,198 |
Other | 2,779 | 1,636 |
Deferred tax assets | 147,542 | 133,046 |
Valuation allowance | (91,616) | (96,969) |
Deferred tax liabilities: | ||
Unrealized gains on marketable and other equity securities | 5,277 | 14,032 |
Property and equipment | 1,972 | 1,934 |
Operating lease ROU assets | 52,502 | 28,289 |
Acquired Intangible assets (1) | 2,057 | 2,525 |
Other | 1,285 | 4,214 |
Deferred Tax Liabilities, Gross | 63,093 | 50,994 |
Deferred tax liabilities | 7,167 | 14,917 |
Long-term liabilities | ||
Deferred tax liabilities: | ||
Deferred tax liabilities | $ 7,167 | $ 14,917 |
INCOME TAXES - Schedule of Comp
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 10,686 | $ 14,917 | $ 10,621 |
Deferred | (5,984) | (57,897) | 53,581 |
Domestic | 538 | (55,456) | 59,053 |
Foreign | 4,164 | 12,476 | 5,149 |
Income tax expense (benefit) | $ 4,702 | $ (42,980) | $ 64,202 |
INCOME TAXES - Schedule of Effe
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before taxes on income | $ 37,839,000 | $ (467,843,000) | $ (53,007,000) |
Statutory tax rate | 23% | 23% | 23% |
Theoretical income tax expense (benefit) | $ 8,703,000 | $ (107,604,000) | $ (12,192,000) |
Change in valuation allowance | 9,273,000 | 18,179,000 | 40,520,000 |
Share-based compensation | 1,236,000 | 3,132,000 | (2,245,000) |
Non-deductible expenses and other permanent differences | (8,265,000) | 939,000 | (1,202,000) |
Effect of subsidiaries with different tax rates | 4,597,000 | 1,859,000 | 4,171,000 |
Preferred enterprise benefits | (7,709,000) | 39,108,000 | 37,001,000 |
Intercompany intangible asset sale | 0 | 0 | (3,913,000) |
Income taxes related to prior years | (1,001,000) | (2,375,000) | 0 |
Uncertain tax positions | (1,587,000) | 3,894,000 | 416,000 |
Other | (545,000) | (112,000) | 1,646,000 |
Income tax expense (benefit) | $ 4,702,000 | $ (42,980,000) | $ 64,202,000 |
INCOME TAXES - Schedule of Unre
INCOME TAXES - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Opening balance | $ 3,338 | $ 5,669 | $ 1,811 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 63 | 3,282 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 886 | 2,645 | 576 |
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (2,422) | (5,039) | 0 |
Closing balance | $ 1,802 | $ 3,338 | $ 5,669 |
FINANCIAL INCOME (EXPENSES), _3
FINANCIAL INCOME (EXPENSES), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Nonoperating Income (Expense) [Abstract] | |||
Bank charges | $ (628) | $ (728) | $ (761) |
Gain (Loss) on Foreign Currency Derivatives Recorded in Earnings, Net | (6,998) | 9,747 | 6,408 |
Amortization of debt discount and issuance costs | (4,194) | (5,213) | (5,298) |
Foreign Currency Transaction Gain (Loss), before Tax | (1,499) | (6,403) | (6,711) |
Equity Securities, FV-NI, Unrealized Gain | 30,608 | (200,338) | 267,831 |
Total expenses | 17,289 | (202,935) | 261,469 |
Investment Income, Interest | 45,185 | 19,422 | 10,474 |
Total financial income (expenses), net | $ 62,474 | $ (183,513) | $ 271,943 |
BASIC AND DILUTED NET LOSS PE_2
BASIC AND DILUTED NET LOSS PER SHARE - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net Income (Loss) Available to Common Stockholders, Basic | $ 33,137,000 | $ (424,863,000) | $ (117,209,000) |
Shares used in computing net loss per ordinary shares, basic (in shares) | 56,829,962 | 57,993,364 | 57,004,154 |
Shares used in computing net loss per ordinary shares, diluted (in shares) | 58,403,037 | 57,993,364 | 57,004,154 |
Basic net loss per ordinary share (in USD per share) | $ 0.58 | $ (7.33) | $ (2.06) |
Diluted net loss per ordinary share (in USD per share) | $ 0.57 | $ (7.33) | $ (2.06) |
Employee Stock Option And Employee Stock Purchase Plan Member | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements | 1,039,744 | 0 | 0 |
Restricted Stock Units (RSUs) | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements | 533,331 | 0 | 0 |
BASIC AND DILUTED NET LOSS PE_3
BASIC AND DILUTED NET LOSS PER SHARE - Antidilutive Securities Excluded from Computation of Earnings Per Share (Details) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount [Line Items] | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount | 4,490,908 | 11,424,555 | 10,915,630 |
Employee Stock Option And Employee Stock Purchase Plan Member | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount [Line Items] | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount | 2,245,872 | 4,332,022 | 4,720,600 |
Restricted Stock Units (RSUs) | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount [Line Items] | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount | 818,288 | 3,123,019 | 2,225,516 |
Convertible Debt Securities | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount [Line Items] | |||
AntidilutiveSecuritiesExcludedFromComputationOfEarningsPerShareAmount | 1,426,748 | 3,969,514 | 3,969,514 |
SEGMENTS, CUSTOMERS AND GEOGR_3
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Revenues by Geographical Areas from External Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 1,561,665 | $ 1,387,666 | $ 1,269,657 |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 938,534 | 819,245 | 731,251 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 864,475 | 709,703 | 588,886 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 380,495 | 350,200 | 334,677 |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 64,492 | 56,712 | 55,244 |
Asia and others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 178,144 | $ 161,509 | $ 148,485 |
SEGMENTS, CUSTOMERS AND GEOGR_4
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Long-lived Assets by Geographical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 557,490 | $ 309,346 |
Europe | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 537,572 | 266,648 |
ISRAEL | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | 513,557 | 232,424 |
North America | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-Lived Assets | $ 19,918 | $ 42,698 |
Restructuring and Related Act_2
Restructuring and Related Activities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) Rate | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs and Asset Impairment Charges | $ 32,614 |
Restructuring and Related Cost, Number of Positions Eliminated, Period Percent | Rate | 7% |
Employee Severance [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs and Asset Impairment Charges | $ 4,504 |
Other Restructuring [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs and Asset Impairment Charges | 2,205 |
Payments for Restructuring | 6,760 |
Fair Value, Nonrecurring | Asset Impairment Charges [Member] | |
Restructuring Cost and Reserve [Line Items] | |
Restructuring Costs and Asset Impairment Charges | $ 25,905 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Feb. 13, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock Repurchased and Retired During Period, Shares | 1,348,865 | 2,772,811 | ||
Payments for Repurchase of Common Stock | $ 127,017 | $ 231,873 | $ 200,000 | |
Subsequent Event Type [Member] | ||||
Stock Repurchased and Retired During Period, Shares | 1,917,098 | |||
Payments for Repurchase of Common Stock | $ 241,302 |