Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Registrant Name | CYBERARK SOFTWARE LTD. |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity File Number | 001-36625 |
Entity Incorporation, State or Country Code | IL |
Entity Address, Address Line One | 9 Hapsagot St. |
Entity Address, Address Line Two | Park Ofer B |
Entity Address, Address Line Three | P.O. BOX 3143 |
Entity Address, City or Town | Petach-Tikva |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 4951040 |
Title of 12(b) Security | Ordinary shares, par value NIS 0.01 per share |
Trading Symbol | CYBR |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 40,041,870 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Emerging Growth Company | false |
ICFR Auditor Attestation Flag | true |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Entity Central Index Key | 0001598110 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Firm ID | 1281 |
Auditor Location | Tel-Aviv, Israel |
Business Contact [Member] | |
Entity Registrant Name | CyberArk Software Ltd. |
Contact Personnel Name | Donna Rahav |
Entity Address, Address Line One | 9 Hapsagot St. |
Entity Address, Address Line Two | Park Ofer B |
Entity Address, Address Line Three | P.O. BOX 3143 |
Entity Address, City or Town | Petach-Tikva |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 4951040 |
City Area Code | 972 (3) |
Local Phone Number | 918-0000 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 356,850 | $ 499,992 |
Short-term bank deposits | 369,645 | 256,143 |
Marketable securities | 199,933 | 196,856 |
Trade receivables (net of allowance for credit losses of $101 and $23 at December 31, 2020 and 2021, respectively) | 113,211 | 93,128 |
Prepaid expenses and other current assets | 22,225 | 15,312 |
Total current assets | 1,061,864 | 1,061,431 |
LONG-TERM ASSETS: | ||
Marketable securities | 300,662 | 202,190 |
Property and equipment, net | 20,183 | 18,537 |
Intangible assets, net | 17,866 | 23,676 |
Goodwill | 123,717 | 123,717 |
Other long-term assets | 121,743 | 99,992 |
Deferred tax assets | 47,167 | 32,809 |
Total long-term assets | 631,338 | 500,921 |
TOTAL ASSETS | 1,693,202 | 1,562,352 |
CURRENT LIABILITIES: | ||
Trade payables | 10,076 | 8,250 |
Employees and payroll accruals | 75,442 | 52,169 |
Accrued expenses and other current liabilities | 23,576 | 24,915 |
Deferred revenue | 230,908 | 161,679 |
Total current liabilities | 340,002 | 247,013 |
LONG-TERM LIABILITIES: | ||
Convertible senior notes, net | 520,094 | 502,302 |
Deferred revenue | 86,367 | 80,829 |
Other long-term liabilities | 20,227 | 24,920 |
Total long-term liabilities | 626,688 | 608,051 |
TOTAL LIABILITIES | 966,690 | 855,064 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares of NIS 0.01 par value – Authorized: 250,000,000 shares at December 31, 2020 and 2021; Issued and outstanding: 39,034,759 shares and 40,041,870 shares at December 31, 2020 and 2021, respectively | 104 | 101 |
Additional paid-in capital | 588,937 | 481,992 |
Accumulated other comprehensive income | 397 | 4,175 |
Retained earnings | 137,074 | 221,020 |
Total shareholders' equity | 726,512 | 707,288 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,693,202 | $ 1,562,352 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Statement of Financial Position [Abstract] | ||
Ordinary shares, authorized | 250,000,000 | 250,000,000 |
Ordinary shares, issued | 40,041,870 | 39,034,759 |
Ordinary shares, outstanding | 40,041,870 | 39,034,759 |
Net of allowance for credit losses | $ | $ 23 | $ 101 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues: | |||
Subscription | $ 134,628 | $ 56,425 | $ 18,168 |
Perpetual license | 115,738 | 176,061 | 221,955 |
Maintenance and professional services | 252,551 | 231,945 | 193,772 |
Revenues | 502,917 | 464,431 | 433,895 |
Cost of revenues: | |||
Subscription | 25,837 | 17,513 | 5,611 |
Perpetual license | 3,904 | 4,925 | 7,900 |
Maintenance and professional services | 63,566 | 60,133 | 49,104 |
Cost of revenues | 93,307 | 82,571 | 62,615 |
Gross profit | 409,610 | 381,860 | 371,280 |
Operating expenses: | |||
Research and development | 142,121 | 95,426 | 72,520 |
Sales and marketing | 274,401 | 219,999 | 184,168 |
General and administrative | 71,425 | 60,429 | 52,308 |
Total operating expenses | 487,947 | 375,854 | 308,996 |
Operating income (loss) | (78,337) | 6,006 | 62,284 |
Financial income (expense), net | (12,992) | (6,395) | 7,800 |
Income (loss) before taxes on income | (91,329) | (389) | 70,084 |
Tax benefit (taxes on income) | 7,383 | (5,369) | (7,020) |
Net income (loss) | $ (83,946) | $ (5,758) | $ 63,064 |
Basic net income (loss) per ordinary share | $ (2.12) | $ (0.15) | $ 1.68 |
Diluted net income (loss) per ordinary share | $ (2.12) | $ (0.15) | $ 1.62 |
Change in net unrealized gains (losses) on marketable securities: | |||
Net unrealized gains (losses) arising during the year | $ (3,405) | $ 2,152 | $ 777 |
Change in unrealized losses on marketable securities, total | (3,405) | 2,152 | 777 |
Change in unrealized net gain (loss) on cash flow hedges: | |||
Net unrealized gains arising during the year | 1,702 | 2,676 | 1,538 |
Net gains reclassified into net income (loss) | (2,075) | (1,471) | (558) |
Change in unrealized gain (loss) on cash flow hedges, Total | (373) | 1,205 | 980 |
Other comprehensive income (loss), net of taxes of $(240), $(458) and $(516) for 2019, 2020 and 2021, respectively | (3,778) | 3,357 | 1,757 |
Total comprehensive income (loss) | $ (87,724) | $ (2,401) | $ 64,821 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Other comprehensive income (loss), tax | $ (516) | $ (458) | $ (240) |
STATEMENTS OF SHAREHOLDERS' EQU
STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary Shares [Member] | Additional paid-in capital [Member] | Accumulated other comprehensive income (loss) [Member] | Retained Earnings [Member] | Total |
Balance at Dec. 31, 2018 | $ 95 | $ 303,900 | $ (939) | $ 163,714 | $ 466,770 |
Balance, shares at Dec. 31, 2018 | 36,838,523 | ||||
Exercise of options and vested RSUs granted to employees | $ 4 | 24,543 | 0 | 0 | 24,547 |
Exercise of options and vested RSUs granted to employees, shares | 1,204,993 | ||||
Equity component of convertible senior notes, net of tax | $ 0 | 65,932 | 0 | 0 | 65,932 |
Purchase of capped calls | 0 | (53,648) | 0 | 0 | (53,648) |
Other comprehensive income (loss), net of tax | 0 | 0 | 1,757 | 0 | 1,757 |
Share-based compensation | 0 | 55,710 | 0 | 0 | 55,710 |
Net income (loss) | 0 | 0 | 0 | 63,064 | 63,064 |
Balance at Dec. 31, 2019 | $ 99 | 396,437 | 818 | 226,778 | 624,132 |
Balance, shares at Dec. 31, 2019 | 38,043,516 | ||||
Exercise of options and vested RSUs granted to employees | $ 2 | 13,094 | 0 | 0 | 13,096 |
Exercise of options and vested RSUs granted to employees, shares | 991,243 | ||||
Other comprehensive income (loss), net of tax | $ 0 | 0 | 3,357 | 0 | 3,357 |
Share-based compensation | 0 | 72,461 | 0 | 0 | 72,461 |
Net income (loss) | 0 | 0 | 0 | (5,758) | (5,758) |
Balance at Dec. 31, 2020 | $ 101 | 481,992 | 4,175 | 221,020 | 707,288 |
Balance, shares at Dec. 31, 2020 | 39,034,759 | ||||
Exercise of options and vested RSUs granted to employees | $ 3 | 10,940 | 0 | 0 | 10,943 |
Exercise of options and vested RSUs granted to employees, shares | 1,007,111 | ||||
Other comprehensive income (loss), net of tax | $ 0 | 0 | (3,778) | 0 | (3,778) |
Share-based compensation | 0 | 96,005 | 0 | 0 | 96,005 |
Net income (loss) | 0 | 0 | 0 | (83,946) | (83,946) |
Balance at Dec. 31, 2021 | $ 104 | $ 588,937 | $ 397 | $ 137,074 | $ 726,512 |
Balance, shares at Dec. 31, 2021 | 40,041,870 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (83,946) | $ (5,758) | $ 63,064 |
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | |||
Depreciation and amortization | 14,228 | 15,475 | 10,646 |
Share-based compensation | 95,436 | 71,849 | 55,517 |
Amortization of premium and accretion of discount on marketable securities, net | 7,532 | 3,068 | (47) |
Deferred income taxes, net | (11,972) | (1,988) | (6,974) |
Amortization of debt discount and issuance costs | 17,792 | 17,183 | 1,966 |
Increase in trade receivables | (20,083) | (17,315) | (24,522) |
Increase in prepaid expenses, other current and long-term assets | (38,219) | (20,487) | (14,321) |
Increase in trade payables | 1,499 | 558 | 1,571 |
Increase in short-term and long-term deferred revenue | 74,767 | 45,397 | 40,821 |
Increase in employees and payroll accruals | 23,821 | 7,846 | 7,337 |
Increase (decrease) in accrued expenses and other current and long-term liabilities | (6,115) | (9,059) | 6,652 |
Net cash provided by operating activities | 74,740 | 106,769 | 141,710 |
Cash flows from investing activities: | |||
Investment in short-term and long-term deposits | (105,069) | (123,054) | (33,961) |
Investment in marketable securities | (357,210) | (405,193) | (165,714) |
Proceeds from sales and maturities of marketable securities | 243,013 | 191,637 | 63,489 |
Purchase of property and equipment | (8,928) | (7,174) | (7,036) |
Business acquisitions, net of cash acquired (Schedule A) | 0 | (68,603) | 0 |
Net cash used in investing activities | (228,194) | (412,387) | (143,222) |
Cash flows from financing activities: | |||
Proceeds from (payment of) withholding tax related to employee stock plans | (789) | 1,069 | 1,155 |
Proceeds from exercise of stock options | 11,738 | 12,180 | 24,428 |
Proceeds from the issuance of convertible senior notes, net of issuance costs | 0 | 0 | 560,107 |
Purchase of capped calls | 0 | 0 | (53,648) |
Net cash provided by financing activities | 10,949 | 13,249 | 532,042 |
Increase (decrease) in cash, cash equivalents and restricted cash | (142,505) | (292,369) | 530,530 |
Effect of exchange rate differences on cash, cash equivalents and restricted cash | (689) | 0 | 0 |
Cash, cash equivalents and restricted cash at the beginning of the year | 500,044 | 792,413 | 261,883 |
Cash, cash equivalents and restricted cash at the end of the year | 356,850 | 500,044 | 792,413 |
Non-cash activities: | |||
Lease liabilities arising from obtaining right-of-use-assets | 0 | 3,237 | 27,926 |
Non-cash purchase of property and equipment | 2,165 | 1,639 | 960 |
Exercise of stock options | 127 | 916 | 119 |
Supplemental disclosure of cash flow activities: | |||
Cash paid during the year for taxes, net | 8,404 | 11,424 | 10,548 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 356,850 | 499,992 | 792,363 |
Restricted cash included in other long-term assets | 0 | 52 | 50 |
Total cash, cash equivalents and restricted cash | 356,850 | 500,044 | 792,413 |
Fair value of assets acquired and liabilities assumed at the date of acquisition: | |||
Goodwill | 123,717 | 123,717 | $ 82,400 |
Other long- term assets | 121,743 | 99,992 | |
Other long- term liabilities | $ (20,227) | (24,920) | |
Idaptive [Member] | |||
Fair value of assets acquired and liabilities assumed at the date of acquisition: | |||
Working capital, net (excluding $1,934 of cash and cash equivalents acquired) $ (6,965) | (6,965) | ||
Property and equipment | 654 | ||
Goodwill | 41,317 | ||
Technology | 18,908 | ||
Customer relationships | 4,466 | ||
Other long- term assets | 1,076 | ||
Deferred taxes, net | 10,845 | ||
Other long- term liabilities | (1,698) | ||
Total | $ 68,603 |
CONSOLIDATED STATEMENTS OF CA_2
CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) $ in Thousands | Dec. 31, 2021USD ($) |
Idaptive [Member] | |
Cash and cash equivalents acquired | $ 1,934 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. CyberArk Software Ltd. (together with its subsidiaries, the "Company") is an Israeli company that develops, markets b In May 2020, the Company acquired all of the share capital of IDaptive Holdings, Inc. ("Idaptive") for total gross consideration of $68,603. Idaptive specializes in Identity and Access Management as a Service (IDaaS) which provides a comprehensive Artificial Intelligence (AI)-based and security-first approach to managing identities that is both adaptive and context-aware. The Company expensed the related acquisition costs of $2,932 substantially in general and administrative. Goodwill generated from this business combination is primarily attributable to the assembled workforce and expected post-acquisition synergies from integrating Idaptive`s technology into the Company`s portfolio. Pro forma results of operations have not been presented because the acquisition was not material to the Company's results of operations. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
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 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. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of the liability component of the convertible senior notes, as well as the determination of standalone selling prices in revenue transactions with multiple performance obligations and the estimated period of benefit for deferred contract costs. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b. Principles of consolidation: The consolidated financial statements include the financial statements of CyberArk Software Ltd. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments were in U.S. dollars and a substantial portion of the Company's costs are incurred 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 operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statement of comprehensive income (loss) as financial income or expenses, as appropriate. d. Cash and cash equivalents: Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of up to one year. As of December 31, 2020 and 2021, the Company's bank deposits are denominated in U.S. dollars and New Israeli Shekels ("NIS") and bear yearly interest at weighted average rates of 0.86% and 0.72%, respectively. Short-term bank deposits are presented at their cost, including accrued interest. f. Investments in marketable securities: The Company accounts for investments in debt marketable securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities". The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Starting January 1, 2020, the Company periodically evaluates its available-for-sale debt securities for impairment in accordance with ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in the Consolidated Statements of Comprehensive Income (Loss). If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. During the years ended December 31, 2020 and 2021, no credit loss impairments have been identified. For the year ended December 31, 2019, the Company's securities were reviewed for impairment in accordance with ASC No. 320-10-35. According to this standard, if such assets were considered to be impaired, the impairment charge was recognized in earnings when a decline in the fair value of its investments below the cost basis was judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the year ended December 31, 2019 were not OTTI. g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, software and related equipment 20 – 33 Office furniture and equipment 15 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset h. Long-lived assets: The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2019, 2020 and 2021, no impairment losses have been identified. i. Business combination: The Company accounts for its business acquisitions in accordance with ASC No. 805, "Business Combinations." While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are subject to refinement. The total purchase price allocated to the tangible and intangible assets acquired is assigned based on the fair values as of the date of the acquisition. During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies` respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. j. Goodwill and other 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 excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible-Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2019, 2020 and 2021, no impairment losses were identified. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which range from two k. Derivative instruments: ASC No. 815, "Derivative and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. As a result of adopting ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities", beginning January 1, 2019, gains and losses on the derivatives instruments that are designated and qualify as a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. To hedge against the risk of changes in cash flows resulting from foreign currency salary payments during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted expenses denominated in NIS. These forward and option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, as their critical terms match underlying transactions being hedged. As of December 31, 2020 and 2021, the amount recorded in accumulated other comprehensive income (loss) from the Company's currency forward and option transactions was $1,459, net of tax of $200 and $1,086, net of tax of $148, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward contracts into which the Company entered were $70,592. The foreign exchange forward contracts will expire by September 2022. The fair value of derivative instruments assets balances as of December 31, 2020 and 2021, totaled $1,654 and $1,318, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2020 and 2021, totaled $0 and $86, respectively. In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward transactions and holds foreign exchange deposits to economically hedge certain net asset balances in Euros, British Pounds Sterling, Canadian Dollars and NIS. Gains and losses related to such derivative instruments are recorded in financial income (expense), net. As of December 31, 2021, with respect to these transactions, the notional amounts of foreign exchange forward contracts into which the Company entered were $32,546. The foreign exchange forward contracts will expire by June 2022. The fair value of derivative instruments assets balances as of December 31, 2020 and 2021, totaled $0 and $751, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2020 and 2021 totaled $1,561 and $36, respectively. For the years ended December 31, 2019, 2020 and 2021 the Company recorded financial income (expense), net from hedging transactions of $515, $(1,317) and $2,099, respectively. l. 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, made on behalf of the employee with insurance companies. 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. For the Company's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company's liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and accruals. The value of these deposits recorded as an asset on the Company's balance sheet under other long-term assets as of December 31, 2020 and 2021 is $4,952 and $5,227, respectively. The amount of accrued severance payable recorded as a liability on the Company's balance sheet under long-term liabilities as of December 31, 2020 and 2021 is $7,963 and $8,271, respectively. Severance expenses for the years ended December 31, 2019, 2020 and 2021, amounted to $4,035, $4,813 and $6,368, respectively. m. U.S. defined contribution plan: The U.S. subsidiaries has a 401(k) defined contribution plan covering certain full time and part time employees in the U.S. who meet certain eligibility requirements, excluding leased employees and contractors. All eligible employees may elect to contribute up to an annual maximum, of the lesser of 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits, but not greater than $19.5 per year (for certain employees over 50 years of age the maximum contribution is $26 per year). The U.S. subsidiaries matches amounts equal to 100% of the first 3% of the employee's compensation that they contribute to the defined contribution plan and 50% of the next 2% of their compensation that they contribute to the defined contribution plan with a limit of $11.4 per year per employee. For the years ended December 31, 2019, 2020 and 2021, the U.S. subsidiary recorded expenses for matching contributions of $2,697, $3,533 and $4,386, respectively. n. Convertible senior notes: The Company accounts for its convertible senior notes in accordance with ASC 470-20 "Debt with Conversion and Other Options". The Company allocated the principal amount of the convertible senior notes between its liability and equity component. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument of similar credit rating and maturity that does not have a conversion feature. The equity component is based on the excess of the principal amount of the convertible senior notes over the fair value of the liability component and is recorded in additional paid-in capital. The equity component, net of issuance costs and deferred tax effects is presented within additional paid-in-capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. Relating to the convertible senior notes issued in 2019, issuance costs attributable to the liability and equity components were $12.9 million and $2.0 million, respectively. Issuance costs attributable to the liability are netted against the principal balance and are amortized to interest expense using the effective interest method over the contractual term of the notes. The effective interest rate of the liability component of the notes is 3.50%. Issuance costs attributable to the equity component are netted with the equity component in additional paid-in capital. o. Revenue recognition: The Company substantially generates revenues from providing the right to access its SaaS solutions and licensing the rights to use its software products, maintenance and professional services. Subscription revenues include Software as a Service ("SaaS") offerings and on-premise subscription (“Self-hosted subscription”). The Company sells its products through its direct sales force and indirectly through resellers. Payment is typically due within 30 to 90 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations and may include an option to provide products or services. The perpetual license and self-hosted subscription are distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. The Company records unbilled receivables from contracts when the revenue recognized exceeds the amount billed to the customer. As of December 31, 2020 and 2021 $8,328 and $12,517 short-term unbilled receivables are included in trade receivables, and $15,530 and $1,873 long-term unbilled receivables are included in other long-term assets. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price. For maintenance, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the prices at which the Company separately sells those services. For SaaS, self-hosted subscription and perpetual license products, the Company determines the standalone selling prices by taking into account available information such as historical selling prices, contract value, geographic location, and the Company's price list and discount policy. Perpetual license and the license portion of self-hosted subscription are recognized at the point of time when the license is made available for download by the customer. Maintenance revenue related to perpetual license contracts and the maintenance component of the self-hosted subscription offering as well as SaaS revenues are recognized ratably, on a straight-line basis over the term of the related contract, which is generally one to three years.. Professional services revenues substantially are recognized as the services are performed. The following table presents the Company's revenue by category: December 31, 2019 2020 2021 SaaS $ 7,286 $ 24,305 $ 69,303 Self-hosted subscription * 10,882 32,120 65,325 Perpetual license 221,955 176,061 115,738 Maintenance and support 157,486 190,897 214,036 Professional services 36,286 41,048 38,515 $ 433,895 $ 464,431 $ 502,917 * Self-hosted subscription also includes maintenance associated with self-hosted subscriptions. For additional information regarding disaggregated revenues, please refer to Note 16 below. Contract liabilities consist of deferred revenue and include unearned amounts received under maintenance and support contracts and professional services that do not meet the revenue recognition criteria as of the balance sheet date. Contract liabilities also include unearned, invoiced amounts in respect of SaaS and self-hosted subscription contracts whereby there is an unconditional right for the consideration. Deferred revenue are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2021, the Company recognized $154,167 that were included in the deferred revenues balance as of December 31, 2020. Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenues and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was $516 million as of December 31, 2021, out of which, the Company expects to recognize approximately 59% in 2022 and the remainder thereafter. p. Deferred contract costs: The Company pays sales commissions primarily to sales and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately five years. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized over the related contractual renewal period and aligned with the revenue recognized from these contracts. Amortization expense of these costs are substantially included in sales and marketing expenses. For the year ended December 31, 2020 and 2021, the amortization of deferred contract costs was $39,592 and $43,236, respectively. As of December 31, 2020 and 2021, the Company presented deferred contract costs from contracts which are for periods of less than 12 months of $3,079 and $801 in prepaid expenses and other current assets, respectively, and deferred contract costs in respect of contracts which are greater than 12 months of $48,716 and $96,619 in other long-term assets, respectively. q. Trade Receivable and Allowances: Trade receivables include original invoiced amounts less an allowance for any potential uncollectible amounts and less invoiced amounts from maintenance and professional services contracts that have not yet been recognized. Trade receivables also include unbilled receivables amounts that will be paid in the following year. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's consolidated statements of income (loss). r. Leases: In accordance with ASU No. 2016-02, "Leases (Topic 842)", the Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use ("ROU") asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses its Incremental Borrowing Rate ("IBR") based on the information available at commencement date in determining the present value of lease payments. The Company's IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under the Company's lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by common area maintenance and utility charges. The Company subleases certain office spaces to third-parties. Sublease income is recognized over the term of the agreement. s. Research and development costs: Research and development costs are charged to the statements of comprehensive income (loss) as incurred except to the extent that such costs are associated with internal-use software that qualifies for capitalization. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed," requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release, have been insignificant. t. Internal use software and website development cost: The Company capitalizes qualifying costs associated with the development of its website and incurred during the application development stage related to software developed for internal-use in accordance with ASC No. 350-40 "Internal-use Software" ("ASC No. 350-40"). These costs are capitalized based on qualifying criteria. Such costs are amortized over the software's estimated life of three to five years. Costs incurred to develop software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the development or implementation of the software. Capitalized internal-use software and website costs are included in property and equipment, net in the consolidated balance sheets. The Company also capitalizes implementation costs incurred in a cloud computing arrangement that is a service contract, according to the internal-use software guidance in ASC No. 350-40. The capitalized implementation costs and their related amortization and cash flows are presented on the financial statements in consistent with the prepaid amounts and fees related to the associated cloud computing arrangement. Capitalized implementation costs are amortized over the term of the arrangement, beginning when the module or component of the cloud computing arrangement that is a service contract is ready for its intended use. u. Advertising and marketing expenses consist primarily of marketing campaigns and tradeshows. Advertising and marketing expenses are charged to the statement of comprehensive income (loss), as incurred. Advertising and marketing expenses for the years ended December 31, 2019, 2020 and 2021, amounted to $20,055, $22,082 and $27,504, respectively. v. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods, which is generally the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met and is recognized on a graded vesting basis. The Company has selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its option awards and Employee Share Purchase Plan ("ESPP"). The fair value of Restricted Share Units ("RSUs") and Performance Share Units ("PSUs") without market conditions, is based on the closing market value of the underlying shares at the date of grant. For PSUs subject to market conditions, the Company uses a Monte Carlo simulation model, which utilizes multiple inputs to estimate payout level and the probability that market conditions will be achieved. The Black-Scholes-Merton and Monte Carlo models require a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes forfeitures of equity-based awards as they occur. For graded vesting awards subject to service conditions, the Company recognizes compensation cost using the straight-line attribution method. w. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740-10, "Income Taxes" ("ASC No. 740-10"). ASC No. 740-10 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between financia |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2020 and 2021: December 31, 2020 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 354,775 $ (115 ) $ 3,004 $ 357,664 Government debentures 41,185 (17 ) 214 41,382 Total $ 395,960 $ (132 ) $ 3,218 $ 399,046 December 31, 2021 Amortized cost Gross unrealized losses *) Gross unrealized gains Fair value Corporate debentures $ 453,927 $ (1,493 ) $ 881 $ 453,315 Government debentures 47,450 (254 ) 84 47,280 Total $ 501,377 $ (1,747 ) $ 965 $ 500,595 *) Out of the total unrealized losses, an amount of $16 has been in a continuous unrealized loss position for twelve months or longer. The following table summarizes the amortized cost and fair value of available-for-sale marketable securities as of December 31, 2020 and 2021, by contractual years-to maturity: December 31, 2020 2021 Amortized cost Fair value Amortized cost Fair value Due within one year $ 196,587 $ 196,856 $ 199,883 $ 199,933 Due between one and four years 199,373 202,190 301,494 300,662 $ 395,960 $ 399,046 $ 501,377 $ 500,595 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 4:- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2020 2021 Prepaid expenses $ 7,346 $ 15,566 Hedging transaction assets 1,654 2,069 Government authorities 1,720 3,365 Deferred commissions 3,079 801 Other current assets 1,513 424 $ 15,312 $ 22,225 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5:- PROPERTY AND EQUIPMENT, NET The composition of property and equipment, net is as follows: December 31, 2020 2021 Cost: Computers, software and related equipment *) $ 25,828 $ 35,290 Leasehold improvements 7,490 7,739 Office furniture and equipment 3,870 4,090 37,188 47,119 Less - accumulated depreciation 18,651 26,936 Depreciated cost $ 18,537 $ 20,183 *) For the years ended December 31, 2020 and 2021, the Company capitalized $3,369 and $4,160 including $612 and $569 of share-based compensation costs, relating to its internal use software and website development, respectively. Depreciation expense amounted to $5,057, $6,634 and $8,418 for the years ended December 31, 2019, 2020 and 2021, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | NOTE 6:- GOODWILL AND OTHER INTANGIBLE ASSETS, NET Changes in the carrying amount of goodwill: December 31, 2020 2021 Balance as of beginning of the year $ 82,400 $ 123,717 Goodwill acquired 41,317 - Closing balance $ 123,717 $ 123,717 The composition of intangible assets is as follows: December 31, 2020 2021 Original amount: Technology $ 39,625 $ 39,625 Customer relationships 9,586 9,586 Other 664 664 49,875 49,875 Less - accumulated amortization 26,199 32,009 Intangible assets, net $ 23,676 $ 17,866 Amortization expense amounted to $5,589, $8,841 and $5,810 for the years ended December 31, 2019, 2020, and 2021, respectively. As of December 31, 2021, the weighted-average remaining useful lives (in years) of Technology and Customer relationships was 3.3 and 9.8, respectively. The estimated future amortization expense of intangible assets as of December 31, 2021 is as follows: 2022 4,877 2023 4,329 2024 4,282 2025 1,849 2026 441 Thereafter 2,088 $ 17,866 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 7:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2020 2021 Government authorities $ 4,871 $ 3,839 Accrued expenses 6,825 8,771 Unrecognized tax benefits 4,633 3,870 Lease liability, current 7,025 6,974 Hedging transaction liabilities 1,561 122 $ 24,915 $ 23,576 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 8:- COMMITMENTS AND CONTINGENT LIABILITIES a. Legal contingencies: From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when the loss is probable and it can reasonably estimate the amount of any such loss. The Company is currently not a party to any material legal or administrative proceedings and is not aware of any material pending or threatened material legal or administrative proceedings against the Company. b. The Company obtained bank guarantees of $1,716 primarily in connection with an office lease agreement. c. Non-cancelable material purchase obligations: The Company entered into a non-cancelable material agreement for the receipt of cloud infrastructure services, effective as of April 2021 through March 2024. As of December 31, 2021, the Company’s outstanding contractual commitment is $38,125. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASES | NOTE 9:- LEASES The Company entered into operating leases primarily for offices. The leases have remaining lease terms of up to 4.5 years, some of which may include options to extend the leases for up to an additional 8 years. The components of operating lease costs were as follows: Year ended December 31, 2020 2021 Operating lease cost $ 6,495 $ 7,224 Short-term lease cost 1,709 1,188 Variable lease cost 1,193 1,302 Sublease income (273 ) (195 ) Total net lease costs $ 9,124 $ 9,519 Supplemental balance sheet information related to operating leases is as follows: Year ended December 31, 2020 2021 Operating lease ROU assets (under other long-term assets in the balance sheets) $ 20,363 $ 14,159 Operating lease liabilities, current $ 7,025 $ 6,974 Operating lease liabilities, long-term (under other long-term liabilities in the balance sheets) $ 16,202 $ 10,239 Weighted average remaining lease term (in years) 3.8 2.9 Weighted average discount rate 1.7 % 1.7 % Lease liability as of December 31, 2021, is as follows: December 31, 2022 $ 7,017 2023 6,121 2024 3,872 2025 389 2026 197 Total undiscounted lease payments 17,596 Less: imputed interest (383 ) Present value of lease liabilities $ 17,213 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 10:- FAIR VALUE MEASUREMENTS The following tables present the fair value of money market funds and marketable securities for the years ended December 31, 2020 and 2021: December 31, 2020 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 260,940 $ - $ 260,940 $ 204,367 $ - $ 204,367 Corporate debentures - - - - 1,818 1,818 Commercial paper - 13,555 13,555 - 14,076 14,076 Marketable securities: Corporate debentures and commercial paper - 357,664 357,664 - 453,315 453,315 Government debentures - 41,382 41,382 - 47,280 47,280 Total assets measured at fair value $ 260,940 $ 412,601 $ 673,541 $ 204,367 $ 516,489 $ 720,856 As of December 31, 2021, the estimated fair value of the Company's convertible senior notes, as further described in Note 11, was $729.8 million. The fair value was determined based on the closing quoted price of the convertible senior notes as of the last day of trading for the period, and is considered Level 2 measurement. The fair value of the convertible senior notes is primarily affected by the trading price of the Company`s common stock and market interest rates. |
CONVERTIBLE SENIOR NOTES, NET
CONVERTIBLE SENIOR NOTES, NET | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE SENIOR NOTES, NET | NOTE 11:- CONVERTIBLE SENIOR NOTES, NET a. Convertible senior notes, net: In November 2019, the Company issued $500 million aggregate principal amount, 0% coupon rate, of convertible senior notes due 2024 The Convertible Notes are convertible based upon an initial conversion rate of 6.3478 of the Company's ordinary shares, par value NIS 0.01 per share per $1 principal amount of Convertible Notes (equivalent to a conversion price of approximately $157.53 per ordinary share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events. The Convertible Notes are senior unsecured obligations of the Company. The Convertible Notes will mature on November 15, 2024 (the "Maturity Date"), unless earlier repurchased, redeemed or converted. Prior to May 15, 2024, a holder may convert all or a portion of its Convertible Notes only under the following circumstances: (1) During any calendar quarter commencing after the calendar quarter ending on March 31, 2020 (and only during (2) During the five business day period after any 10 consecutive trading day period ("measurement period") in which (3) If the Company calls such Convertible Notes for redemption in certain circumstances, at any time prior to the (4) Upon the occurrence of specified corporate events. On or after May 15, 2024 until the close of business on the third scheduled trading day immediately preceding the Maturity Date, a holder may convert its Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company can pay or deliver cash, ordinary shares or a combination of cash and ordinary shares, at the Company's election. b. The Company may not redeem the notes prior to November 15, 2022, except in the event of certain tax law changes. 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 payable under certain circumstances set forth in the terms of the Convertible Notes (if any) to, but excluding, the fundamental change repurchase date). In addition, in connection with a make-whole fundamental change (as defined in the Indenture), or following the Company's delivery of a notice of redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or redemption, as the case may be. During the year ended December 31, 2021, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not convertible as of December 31, 2021 and are classified as long-term liability. The net carrying amount of the liability and equity components of the Convertible Notes for the periods presented is as follows: December 31, 2020 2021 Liability component: Principal amount $ 575,000 $ 575,000 Unamortized discount (62,356 ) (46,976 ) Unamortized issuance costs (10,342 ) (7,930 ) Net carrying amount $ 502,302 $ 520,094 Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022 $ 65,932 $ 65,932 Interest expense related to the Convertible Notes was as follows: December 31, 2020 2021 Amortization of debt discount $ 14,931 $ 15,380 Amortization of debt issuance costs 2,252 2,412 Total interest expense recognized $ 17,183 $ 17,792 c. Capped Call Transactions: In connection with the pricing of the Convertible Notes and the exercise by the Initial Purchasers of the over-allotment option, the Company entered into privately negotiated capped call transactions ("Capped Call Transactions") with certain financial institutions ("Option Counterparties"). The Capped Call Transactions cover, collectively, the number of the Company's ordinary shares underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes. The Capped Call Transactions have an initial strike price of approximately $157.53 per share, subject to certain adjustments, which corresponds to the approximate initial conversion price of the Convertible Notes. The cap price of the Capped Call Transactions is initially $229.14 per share and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are separate transactions, in each case, entered into by the Company with the Option Counterparties, and are not part of the terms of the Convertible Notes and will not change the holders' rights under the Convertible Notes. As the Capped Call Transactions are considered indexed to the Company's stock and are considered equity classified, they are recorded in shareholders' equity on the consolidated balance sheet and are not accounted for as derivatives. The cost of the Capped Call Transactions was approximately $53.6 million and was recorded as a reduction to additional paid-in capital. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 12:- SHAREHOLDERS' EQUITY a. Composition of share capital of the Company: December 31, 2020 2021 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares Ordinary shares of NIS 0.01 par value each 250,000,000 39,034,759 250,000,000 40,041,870 b. Ordinary shares: The ordinary shares of the Company confer upon the holders the right to receive notices of and to participate and vote in general meetings of the Company, rights to receive dividends and rights to participate in distribution of assets upon liquidation. c. Share-based compensation: On January 1, 2021, the Company's ESPP became effective. The ESPP enables eligible employees and eligible employees of designated subsidiaries to elect to have payroll deductions made during a six-month offering period in an amount not exceeding % of the gross base compensation which the employees receive. The total number of ordinary shares initially reserved under the ESPP as of January 1, 2021 was shares ("the ESPP Share Pool"). In connection with establishing the ESPP, the Company correspondingly reduced the number of shares available under the Company's 2014 share incentive plan (the "2014 Plan") by 125,000. On January 1 of each year between 2022 and 2026 the ESPP Share Pool will be increased by a number of ordinary shares equal to the lowest of (i) shares, (ii) 1% of the Company's outstanding shares on December 31 of the immediately preceding calendar year, and (iii) a lesser number of shares determined by the Company's board of directors. The applicable purchase price will be no less than % of the lesser of the fair market value of the Company's ordinary shares on the first day or the last day of the purchase period. Under the 2014 Plan and ESPP, options, RSUs, PSUs and other share-based awards may be granted to employees, officers, non-employee consultants and directors of the Company. Under the 2014 Plan and ESPP, as of December 31, 2021, an aggregate number of 1,333,148 ordinary shares were reserved for future grant. Any share underlying an award that is cancelled, terminated or forfeited for any reason without having been exercised will automatically be available for grant under the 2014 Plan. The total share-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2019, 2020 and 2021 is comprised as follows: Year ended December 31, 2019 2020 2021 Cost of revenues $ 5,690 $ 8,734 $ 11,158 Research and development 10,960 14,691 20,498 Sales and marketing 20,976 28,220 38,546 General and administrative 17,891 20,204 25,234 Total share-based compensation expense $ 55,517 $ 71,849 $ 95,436 The total unrecognized compensation cost amounted to $209,367 as of December 31, 2021 and is expected to be recognized over a weighted average period of 2.72 years. d. Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2021 is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2020 648,773 $ 62.09 5.94 $ 64,555 Granted 22,600 162.24 Exercised 197,667 55.35 Forfeited 12,854 101.87 Balance as of December 31, 2021 460,852 68.78 5.44 48,261 Exercisable as of December 31, 2021 390,954 $ 60.05 4.95 $ 44,269 The expected volatility of the Company's common stock is based on the Company's historical volatility. The expected option term represents the period of time that options granted are expected to be outstanding. Prior to January 1, 2020, it was determined based on the simplified method in accordance with SAB No. 110, as adequate historical experience was not available to provide a reasonable estimate. Starting January 1, 2020, the expected term is based upon historical experience. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The risk-free interest rate is based on the yield of U.S. treasury bonds with equivalent terms. The following tables set forth the parameters used in computation of the options and ESPP compensation to employees for the years ended December 31, 2019, 2020 and 2021: Year ended December 31, Options 2019 2020 2021 Expected volatility 48 % 40%-41 % 44%-46 % Expected dividends 0 % 0 % 0 % Expected term (in years) 5.90-6.10 4.02-4.20 3.65-3.88 Risk free rate 1.49%-2.49 % 0.22%-1.61 % 0.49%-0.99 % Year ended December 31, ESPP 2019 2020 2021 Expected volatility - - 33.63 % Expected dividends - - 0 % Expected term (in years) - - 0.5 Risk free rate - - 0.1 % A summary of options data for the years ended December 31, 2019, 2020 and 2021, is as follows: Year ended December 31, 2019 2020 2021 Weighted-average grant date fair value of options granted $ 55.43 $ 33.82 $ 55.50 Total intrinsic value of the options exercised $ 45,326 $ 18,790 $ 20,742 The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the fair value of an ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. e. A summary of RSUs and PSUs activity for the year ended December 31, 2021 is as follows: Amount of RSUs and PSUs Weighted average grant date fair value Unvested as of December 31, 2020 2,121,633 $ 98.67 Granted 1,111,672 $ 143.69 Vested 809,444 $ 90.16 Forfeited 244,147 $ 109.88 Unvested as of December 31, 2021 2,179,714 $ 123.54 The total fair value of RSUs and PSUs vested (based on fair value of the Company's ordinary shares at vesting date) during the years ended December 31, 2019, 2020 and 2021 was $67,737, $76,027 and $113,918, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13:- INCOME TAXES CyberArk Software Ltd.'s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. a. Corporate tax in Israel: Ordinary taxable income is subject to a corporate tax rate of 23% for the years 2019-2021. b. Income (loss) before taxes on income is comprised as follows: Year ended December 31, 2019 2020 2021 Domestic income (loss) $ 52,254 $ (12,643 ) $ (113,339 ) Foreign income 17,830 12,254 22,010 $ 70,084 $ (389 ) $ (91,329 ) 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: December 31, 2020 2021 Deferred tax assets: Carry-forwards losses and credits $ 36,314 $ 42,202 Capital losses carry-forwards 94 96 Research and development expenses 2,521 11,848 Deferred revenues 10,345 11,005 Intangible assets 8,037 7,730 Share-based compensation 11,547 15,046 Operating lease liability 1,351 1,088 Accruals and other 3,695 4,638 Gross deferred tax assets before valuation allowance 73,904 93,653 Less: Valuation allowance 19,591 20,614 Total deferred tax assets $ 54,313 $ 73,039 Deferred tax liabilities: Intangible assets $ 1,606 $ 2,189 Convertible senior notes 8,724 6,946 Deferred commission 8,251 14,969 Operating lease ROU asset 1,254 827 Property and equipment and other 1,669 941 Gross deferred tax liabilities $ 21,504 $ 25,872 Net deferred tax assets $ 32,809 $ 47,167 As of December 31, 2021, $55,505 of undistributed earnings held by the Company's foreign subsidiaries are designated as indefinitely reinvested. If these earnings were repatriated to Israel, it would be subject to Israeli income taxes and to foreign withholding taxes and an adjustment for foreign tax credits. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable . d. Income taxes are comprised as follows: Year ended December 31, 2019 2020 2021 Current $ 13,994 $ 7,357 $ 4,589 Deferred (6,974 ) (1,988 ) (11,972 ) $ 7,020 $ 5,369 $ (7,383 ) Year ended December 31, 2019 2020 2021 Domestic $ 8,093 $ (1,431 ) $ (12,171 ) Foreign (1,073 ) 6,800 4,788 $ 7,020 $ 5,369 $ (7,383 ) e. A reconciliation of the Company's theoretical income tax expense (benefit) to actual income tax expense (benefit) is as follows: Year ended December 31, 2019 2020 2021 Income (loss) before income taxes $ 70,084 $ (389 ) $ (91,329 ) Statutory tax rate 23.0 % 23.0 % 23.0 % Theoretical income tax expense (benefit) 16,119 (89 ) (21,006 ) Excess tax benefits related to share-based compensation (6,391 ) (3,645 ) (4,424 ) Non-deductible expenses 3,002 3,054 3,988 Intra-entity intellectual property transfer - 5,036 - Valuation allowance - - 1,896 Unrecognized tax benefits 1,343 (322 ) (1,638 ) Foreign and preferred enterprise tax rates differential (6,717 ) 1,714 12,171 Impact of CARES Act - (683 ) - Prior years and others (336 ) 304 1,630 Income tax expense (tax benefit) $ 7,020 $ 5,369 $ (7,383 ) f. Net operating loss carry-forwards: As of December 31, 202 1 , the Company had net operating losses substantially derived from excess tax benefits from share-based payments and capital tax losses, totaling $148,689 and $258, respectively, out of which $141,209 and none of the losses, respectively, were federal net operating losses attributed to the U.S. subsidiary. The rest were attributed to Israel, can be carried forward indefinitely and resulted mainly from acquisitions made by the Company. Out of these federal net operating losses attributed to the U.S. subsidiary, $45,955 are subject to up to 20-year carryforward period. The remaining $95,254 can be carried forward indefinitely, but are subject to the 80% taxable income limitation upon utilization. Utilization of some of these U.S. net operating losses is subject to annual limitation due to the "change in ownership" provisions of the U.S. Internal Revenue Code and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. g. Tax benefits under the Law for the Encouragement of Capital Investments, 1959: As of December 31, 2021, approximately $16,353 was derived from tax exempt profits earned by the Company's "Approved Enterprises" and "Beneficiary Enterprise". The Company and its Board of Directors have determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by the Company. Accordingly, no provision for deferred income taxes has been provided on income attributable to the Company's "Approved Enterprises" and "Beneficiary Enterprises" as such income is essentially permanently reinvested. If the Company's retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate as if it had not elected the alternative tax benefits under the Law for the Encouragement of Capital Investments ("Investment Law") and an income tax liability of up to $4,015 would be incurred as of December 31, 2021. In December 2016, the Israeli Knesset passed Amendment 73 to the Investment Law which included a number of changes to the Investment Law regimes through regulations approved on May 1, 2017 and that have come into effect from January 1, 2017. Applicable benefits under the new regime include: - Introduction of a benefit regime for "Preferred Technology Enterprises" ("PTE") granting a - A - A withholding tax rate of The Company adopted the PTE since 2017 and believes it is generally eligible for its benefits. In addition the company received a ruling from the Israeli tax authorities which approves the PTE's benefits. h. Tax benefits under the Law for the Encouragement of Industry (Taxation), 1969: Management believes that the Company currently qualifies as an "industrial company" under the above law and as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. i. Tax Benefits for Research and Development: Section 20A to the Israeli Income 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 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 . j. Coronavirus Aid, Relief, and Economic Security Act ("CARES Act"): On March 27, 2020, the U.S. government enacted the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") to provide certain relief as a result of the COVID-19 outbreak. Some of the key income tax-related provisions of the CARES Act include modification in the usage of net operating losses, interest deductions and payroll benefits. During the year 2020, the Company recorded a tax benefit (see Note 13e). k. Tax assessments: As of December 31, 2021, the Company has reached a corporate tax assessment agreement with the Israeli Tax Authorities in relation to tax years 2016 through 2018, as reflected below in the unrecognized tax benefits schedule. As of the date of the approval of the financial statements, the Company is under a corporate tax assessment by the Israeli Tax Authorities for the tax years 2019 and 2020. As of that date, the U.K. subsidiary's tax years until December 31, 2019 are subject to statutes of limitation effective in the U.K. For the U.S. subsidiary's tax years ended December 31, 2018 through 2021, statute of limitation have not yet expired. For companies acquired by the U.S. subsidiary, there are open loss years from 2018 through 202 0 . l. Unrecognized tax benefits: A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2019 2020 2021 Opening balance $ 1,993 $ 3,728 $ 4,633 Decrease related to settlements with taxing authorities - (796 ) (2,382 ) Increase related to prior year tax positions 120 74 976 Decrease related to expiration of statutes of limitations (242 ) (92 ) - Increase related to current year tax positions 1,857 1,719 643 Closing balance $ 3,728 $ 4,633 $ 3,870 During the years ended December 31, 2019, 2020 and 2021, the Company recorded $47, $21 and $(21), respectively, for interest expense (income) related to uncertain tax positions. As of December 31, 2020 and 2021, accrued interest was $133 and $112, respectively. Although the Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement, there is no assurance that the final tax outcome of its tax audits will not be different from that which is reflected in the Company's income tax provisions. Such differences could have a material effect on the Company's income tax provision, cash flow from operating activities and net income in the period in which such determination is made. |
FINANCIAL INCOME (EXPENSE), NET
FINANCIAL INCOME (EXPENSE), NET | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
FINANCIAL INCOME (EXPENSE), NET | NOTE 14:- FINANCIAL INCOME (EXPENSE), NET Year ended December 31, 2019 2020 2021 Bank charges $ (274 ) $ (275 ) $ (250 ) Exchange rate income (loss), net (803 ) 683 (509 ) Interest income 10,843 10,380 5,559 Amortization of debt discount and issuance costs (1,966 ) (17,183 ) (17,792 ) Financial income (expense), net $ 7,800 $ (6,395 ) $ (12,992 ) |
BASIC AND DILUTED NET INCOME (L
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE | NOTE 15:- BASIC AND DILUTED NET INCOME (LOSS) PER SHARE Year ended December 31, 2019 2020 2021 Numerator: Net income (loss) available to shareholders of ordinary shares $ 63,064 $ (5,758 ) $ (83,946 ) Denominator: Shares used in computing basic net income (loss) per ordinary shares 37,586,387 38,628,770 39,645,453 Year ended December 31, 2019 2020 2021 Numerator: Net income (loss) available to shareholders of ordinary shares $ 63,064 $ (5,758 ) $ (83,946 ) Denominator: Shares used in computing diluted net income (loss) per ordinary shares 38,890,108 38,628,770 39,645,453 The total weighted average number of shares related to outstanding options, RSUs and PSUs that have been excluded from the computation of diluted net income (loss) per ordinary share due to their antidilutive effect was 495,975, 2,823,985 and 2,734,308 for the years ended December 31, 2019, 2020 and 2021, respectively. Additionally, 3.6 million shares underlying the conversion option of the Convertible Notes are not considered in the calculation of diluted net income (loss) per share as the effect would be anti-dilutive. The Company intends to settle the principal amount of Convertible Notes in cash and therefore will use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion will have a dilutive impact on diluted net income per share when the average market price of a common stock for a given period exceeds the conversion price of $157.53 per share. |
SEGMENTS, CUSTOMERS AND GEOGRAP
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 16:- SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company identifies operating segments in accordance with ASC Topic 280, "Segment Reporting". Operating segments are defined as components of an entity for which separate financial information is available and is regularly reviewed by the chief operating decision maker in making decisions regarding resource allocation and evaluating financial performance. The Company determined it operates in one reportable segment as the Company's chief operating decision maker is the Chairman and Chief Executive Officer who makes operating decisions, assesses performance and allocates resources on a consolidated basis, accompanied by information about revenue by geographic region . b. The total revenues are attributed to geographic areas based on the location of the Company's channel partners which are considered as end customers, as well as direct customers of the Company . The following tables present total revenues for the years ended December 31, 2019, 2020 and 2021 and long-lived assets as of December 31, 2020 and 2021: Revenues: Year ended December 31, 2019 2020 2021 United States $ 233,945 $ 246,811 $ 253,811 Israel 7,827 7,312 7,416 United Kingdom 36,146 33,101 35,530 Europe, the Middle East and Africa *) 85,757 101,453 120,382 Other 70,220 75,754 85,778 $ 433,895 $ 464,431 $ 502,917 For the years ended December 31, 2019, 2020 and 2021, no single customer contributed more than 10% to the Company's total revenues. Long-lived assets, including property and equipment, net and operating lease right-of-use assets: December 31, 2020 2021 United States $ 9,363 $ 6,813 Israel 26,438 24,391 United Kingdom 1,756 1,294 Europe, the Middle East and Africa *) 274 474 Other 1,069 1,370 $ 38,900 $ 34,342 *) Excluding United Kingdom and Israel |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Use of estimates | a. Use of estimates: The preparation of 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. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, fair value of assets acquired and liabilities assumed in business combinations, fair value of the liability component of the convertible senior notes, as well as the determination of standalone selling prices in revenue transactions with multiple performance obligations and the estimated period of benefit for deferred contract costs. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. |
Principles of consolidation | b. Principles of consolidation: The consolidated financial statements include the financial statements of CyberArk Software Ltd. and its wholly owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. |
Financial statements in U.S. dollars | c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments were in U.S. dollars and a substantial portion of the Company's costs are incurred 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 operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statement of comprehensive income (loss) as financial income or expenses, as appropriate. |
Cash and cash equivalents | d. Cash and cash equivalents: Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of up to one year. As of December 31, 2020 and 2021, the Company's bank deposits are denominated in U.S. dollars and New Israeli Shekels ("NIS") and bear yearly interest at weighted average rates of 0.86% and 0.72%, respectively. Short-term bank deposits are presented at their cost, including accrued interest. |
Investments in marketable securities | f. Investments in marketable securities: The Company accounts for investments in debt marketable securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities". The Company determines the appropriate classification of its investments at the time of purchase and reevaluates such designation at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Starting January 1, 2020, the Company periodically evaluates its available-for-sale debt securities for impairment in accordance with ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in the Consolidated Statements of Comprehensive Income (Loss). If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. During the years ended December 31, 2020 and 2021, no credit loss impairments have been identified. For the year ended December 31, 2019, the Company's securities were reviewed for impairment in accordance with ASC No. 320-10-35. According to this standard, if such assets were considered to be impaired, the impairment charge was recognized in earnings when a decline in the fair value of its investments below the cost basis was judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the year ended December 31, 2019 were not OTTI. |
Property and equipment | g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, software and related equipment 20 – 33 Office furniture and equipment 15 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Long-lived assets | h. Long-lived assets: The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2019, 2020 and 2021, no impairment losses have been identified. |
Business combination | i. Business combination: The Company accounts for its business acquisitions in accordance with ASC No. 805, "Business Combinations." While the Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date, these estimates and assumptions are subject to refinement. The total purchase price allocated to the tangible and intangible assets acquired is assigned based on the fair values as of the date of the acquisition. During the measurement period, which does not exceed one year from the acquisition date, the Company may record adjustments to the assets acquired and liabilities assumed, with the corresponding offset to goodwill. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies` respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. |
Goodwill and other intangible assets | j. Goodwill and other 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 excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible-Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2019, 2020 and 2021, no impairment losses were identified. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which range from two |
Derivative instruments | k. Derivative instruments: ASC No. 815, "Derivative and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. As a result of adopting ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities", beginning January 1, 2019, gains and losses on the derivatives instruments that are designated and qualify as a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. To hedge against the risk of changes in cash flows resulting from foreign currency salary payments during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted expenses denominated in NIS. These forward and option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, as their critical terms match underlying transactions being hedged. As of December 31, 2020 and 2021, the amount recorded in accumulated other comprehensive income (loss) from the Company's currency forward and option transactions was $1,459, net of tax of $200 and $1,086, net of tax of $148, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward contracts into which the Company entered were $70,592. The foreign exchange forward contracts will expire by September 2022. The fair value of derivative instruments assets balances as of December 31, 2020 and 2021, totaled $1,654 and $1,318, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2020 and 2021, totaled $0 and $86, respectively. In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward transactions and holds foreign exchange deposits to economically hedge certain net asset balances in Euros, British Pounds Sterling, Canadian Dollars and NIS. Gains and losses related to such derivative instruments are recorded in financial income (expense), net. As of December 31, 2021, with respect to these transactions, the notional amounts of foreign exchange forward contracts into which the Company entered were $32,546. The foreign exchange forward contracts will expire by June 2022. The fair value of derivative instruments assets balances as of December 31, 2020 and 2021, totaled $0 and $751, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2020 and 2021 totaled $1,561 and $36, respectively. For the years ended December 31, 2019, 2020 and 2021 the Company recorded financial income (expense), net from hedging transactions of $515, $(1,317) and $2,099, respectively. |
Severance pay | l. 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, made on behalf of the employee with insurance companies. 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. For the Company's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company's liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and accruals. The value of these deposits recorded as an asset on the Company's balance sheet under other long-term assets as of December 31, 2020 and 2021 is $4,952 and $5,227, respectively. The amount of accrued severance payable recorded as a liability on the Company's balance sheet under long-term liabilities as of December 31, 2020 and 2021 is $7,963 and $8,271, respectively. Severance expenses for the years ended December 31, 2019, 2020 and 2021, amounted to $4,035, $4,813 and $6,368, respectively. |
U.S. defined contribution plan | m. U.S. defined contribution plan: The U.S. subsidiaries has a 401(k) defined contribution plan covering certain full time and part time employees in the U.S. who meet certain eligibility requirements, excluding leased employees and contractors. All eligible employees may elect to contribute up to an annual maximum, of the lesser of 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits, but not greater than $19.5 per year (for certain employees over 50 years of age the maximum contribution is $26 per year). The U.S. subsidiaries matches amounts equal to 100% of the first 3% of the employee's compensation that they contribute to the defined contribution plan and 50% of the next 2% of their compensation that they contribute to the defined contribution plan with a limit of $11.4 per year per employee. For the years ended December 31, 2019, 2020 and 2021, the U.S. subsidiary recorded expenses for matching contributions of $2,697, $3,533 and $4,386, respectively. |
Convertible senior notes | n. Convertible senior notes: The Company accounts for its convertible senior notes in accordance with ASC 470-20 "Debt with Conversion and Other Options". The Company allocated the principal amount of the convertible senior notes between its liability and equity component. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument of similar credit rating and maturity that does not have a conversion feature. The equity component is based on the excess of the principal amount of the convertible senior notes over the fair value of the liability component and is recorded in additional paid-in capital. The equity component, net of issuance costs and deferred tax effects is presented within additional paid-in-capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. Relating to the convertible senior notes issued in 2019, issuance costs attributable to the liability and equity components were $12.9 million and $2.0 million, respectively. Issuance costs attributable to the liability are netted against the principal balance and are amortized to interest expense using the effective interest method over the contractual term of the notes. The effective interest rate of the liability component of the notes is 3.50%. Issuance costs attributable to the equity component are netted with the equity component in additional paid-in capital. |
Revenue recognition | o. Revenue recognition: The Company substantially generates revenues from providing the right to access its SaaS solutions and licensing the rights to use its software products, maintenance and professional services. Subscription revenues include Software as a Service ("SaaS") offerings and on-premise subscription (“Self-hosted subscription”). The Company sells its products through its direct sales force and indirectly through resellers. Payment is typically due within 30 to 90 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations and may include an option to provide products or services. The perpetual license and self-hosted subscription are distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. The Company records unbilled receivables from contracts when the revenue recognized exceeds the amount billed to the customer. As of December 31, 2020 and 2021 $8,328 and $12,517 short-term unbilled receivables are included in trade receivables, and $15,530 and $1,873 long-term unbilled receivables are included in other long-term assets. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price. For maintenance, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the prices at which the Company separately sells those services. For SaaS, self-hosted subscription and perpetual license products, the Company determines the standalone selling prices by taking into account available information such as historical selling prices, contract value, geographic location, and the Company's price list and discount policy. Perpetual license and the license portion of self-hosted subscription are recognized at the point of time when the license is made available for download by the customer. Maintenance revenue related to perpetual license contracts and the maintenance component of the self-hosted subscription offering as well as SaaS revenues are recognized ratably, on a straight-line basis over the term of the related contract, which is generally one to three years.. Professional services revenues substantially are recognized as the services are performed. The following table presents the Company's revenue by category: December 31, 2019 2020 2021 SaaS $ 7,286 $ 24,305 $ 69,303 Self-hosted subscription * 10,882 32,120 65,325 Perpetual license 221,955 176,061 115,738 Maintenance and support 157,486 190,897 214,036 Professional services 36,286 41,048 38,515 $ 433,895 $ 464,431 $ 502,917 * Self-hosted subscription also includes maintenance associated with self-hosted subscriptions. For additional information regarding disaggregated revenues, please refer to Note 16 below. Contract liabilities consist of deferred revenue and include unearned amounts received under maintenance and support contracts and professional services that do not meet the revenue recognition criteria as of the balance sheet date. Contract liabilities also include unearned, invoiced amounts in respect of SaaS and self-hosted subscription contracts whereby there is an unconditional right for the consideration. Deferred revenue are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2021, the Company recognized $154,167 that were included in the deferred revenues balance as of December 31, 2020. Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenues and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was $516 million as of December 31, 2021, out of which, the Company expects to recognize approximately 59% in 2022 and the remainder thereafter. |
Deferred contract costs | p. Deferred contract costs: The Company pays sales commissions primarily to sales and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately five years. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized over the related contractual renewal period and aligned with the revenue recognized from these contracts. Amortization expense of these costs are substantially included in sales and marketing expenses. For the year ended December 31, 2020 and 2021, the amortization of deferred contract costs was $39,592 and $43,236, respectively. As of December 31, 2020 and 2021, the Company presented deferred contract costs from contracts which are for periods of less than 12 months of $3,079 and $801 in prepaid expenses and other current assets, respectively, and deferred contract costs in respect of contracts which are greater than 12 months of $48,716 and $96,619 in other long-term assets, respectively. |
Trade Receivable and Allowances | q. Trade Receivable and Allowances: Trade receivables include original invoiced amounts less an allowance for any potential uncollectible amounts and less invoiced amounts from maintenance and professional services contracts that have not yet been recognized. Trade receivables also include unbilled receivables amounts that will be paid in the following year. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's consolidated statements of income (loss). |
Leases | r. Leases: In accordance with ASU No. 2016-02, "Leases (Topic 842)", the Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use ("ROU") asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses its Incremental Borrowing Rate ("IBR") based on the information available at commencement date in determining the present value of lease payments. The Company's IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under the Company's lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by common area maintenance and utility charges. The Company subleases certain office spaces to third-parties. Sublease income is recognized over the term of the agreement. |
Research and development costs | s. Research and development costs: Research and development costs are charged to the statements of comprehensive income (loss) as incurred except to the extent that such costs are associated with internal-use software that qualifies for capitalization. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed," requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release, have been insignificant. |
Internal use software and Website Development cost | t. Internal use software and website development cost: The Company capitalizes qualifying costs associated with the development of its website and incurred during the application development stage related to software developed for internal-use in accordance with ASC No. 350-40 "Internal-use Software" ("ASC No. 350-40"). These costs are capitalized based on qualifying criteria. Such costs are amortized over the software's estimated life of three to five years. Costs incurred to develop software applications consist of (a) certain external direct costs of materials and services incurred in developing or obtaining internal-use computer software, and (b) payroll and payroll-related costs for employees who are directly associated with, and who devote time to, the development or implementation of the software. Capitalized internal-use software and website costs are included in property and equipment, net in the consolidated balance sheets. The Company also capitalizes implementation costs incurred in a cloud computing arrangement that is a service contract, according to the internal-use software guidance in ASC No. 350-40. The capitalized implementation costs and their related amortization and cash flows are presented on the financial statements in consistent with the prepaid amounts and fees related to the associated cloud computing arrangement. Capitalized implementation costs are amortized over the term of the arrangement, beginning when the module or component of the cloud computing arrangement that is a service contract is ready for its intended use. |
Advertising and marketing expenses | u. Advertising and marketing expenses consist primarily of marketing campaigns and tradeshows. Advertising and marketing expenses are charged to the statement of comprehensive income (loss), as incurred. Advertising and marketing expenses for the years ended December 31, 2019, 2020 and 2021, amounted to $20,055, $22,082 and $27,504, respectively. |
Share-based compensation | v. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods, which is generally the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met and is recognized on a graded vesting basis. The Company has selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its option awards and Employee Share Purchase Plan ("ESPP"). The fair value of Restricted Share Units ("RSUs") and Performance Share Units ("PSUs") without market conditions, is based on the closing market value of the underlying shares at the date of grant. For PSUs subject to market conditions, the Company uses a Monte Carlo simulation model, which utilizes multiple inputs to estimate payout level and the probability that market conditions will be achieved. The Black-Scholes-Merton and Monte Carlo models require a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The Company recognizes forfeitures of equity-based awards as they occur. For graded vesting awards subject to service conditions, the Company recognizes compensation cost using the straight-line attribution method. |
Income taxes | w. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740-10, "Income Taxes" ("ASC No. 740-10"). ASC No. 740-10 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company established reserves for uncertain tax positions based on the evaluation of whether or not the Company's uncertain tax position is "more likely than not" to be sustained upon examination based on its technical merits. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense. |
Basic and diluted net income (loss) per share | x. Basic and diluted net income (loss) per share: Basic net income (loss) per ordinary share is computed by dividing net income (loss) for each reporting period by the weighted-average number of ordinary shares outstanding during each year. Diluted net income (loss) per ordinary share is computed by dividing net income (loss) for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260-10 "Earnings Per Share". The Company experienced a loss in the years ended December 31, 2020 and 2021; hence all potentially dilutive ordinary shares were excluded due to their anti-dilutive effect. |
Comprehensive income (loss) | y. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period, except changes resulting from investments by, or distributions to, shareholders. |
Concentration of credit risks | z. 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 bank deposits, marketable securities, trade receivables, severance pay funds and derivative instruments. The majority of the Company's cash and cash equivalents and short-term bank deposits are invested with major banks in Israel and the United States. Such investments in the United States are in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and the Company believes that the financial institutions that hold the Company's cash deposits are financially sound and, accordingly, bear minimal risk. The Company's marketable securities consist of investments, which are highly rated by credit agencies, in government, corporate and government sponsored enterprises debentures. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, in order to reduce credit risk concentrations. The trade receivables of the Company are mainly derived from sales to a diverse set of customers located primarily in the United States, Europe and Asia. The Company performs ongoing credit evaluations of its customers and, to date, has not experienced any significant losses. The Company has entered into forward contracts with major banks in Israel to protect against the risk of changes in exchange rates. The derivative instruments hedge a portion of the Company's non-dollar currency exposure. |
Fair value of financial instruments | aa. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. The following methods and assumptions were used by the Company in estimating the fair value of their financial instruments: The carrying values of cash and cash equivalents, short-term bank deposits, trade receivables, prepaid expenses and other current assets, trade payables, employees and payroll accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments. The Company applies ASC No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), with respect to fair value measurements of all financial assets and liabilities. The fair value of foreign currency contracts (used for hedging purposes) is estimated by obtaining current quotes from banks and third party valuations. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - Inputs are unobservable inputs based on the Company's own assumptions used to measure assets and The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with ASC No. 820, the Company measures its foreign currency derivative instruments, at fair value using the market approach valuation technique. Foreign currency derivative contracts as detailed in note 2k are classified within Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market observable data of similar instruments. As of December 31, 2021, the estimated fair value of the Company’s convertible senior notes, net as further described in Note 11, was determined based on the closing quoted price of the convertible senior note, net as of the last day of trading for the period, and is considered Level 2 measurement. |
Recently adopted accounting standards | ab. Recently adopted accounting standards: In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): "Simplifying the Accounting for Income Taxes". The new standard simplifies the accounting for income taxes. The guidance is effective for interim and annual periods beginning after December 15, 2020, with early adoption permitted. The Company adopted the standard beginning January 1, 2021. The standard did not have a material impact on the consolidated financial statements. |
Recently issued accounting standards | ac. Recently issued accounting standards: In August 2020, the FASB issued ASU No. 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).” The new standard reduces the number of accounting models in ASC 470-20 that require separate accounting for embedded conversion features. As a result, a convertible debt instrument will be accounted for as a single liability measured at its amortized cost as long as no other features require bifurcation and recognition as derivatives. By removing those separation models, the effective interest rate of convertible debt instruments will be closer to the coupon interest rate. Further, the diluted net income per share calculation for convertible instruments will require the Company to use the if-converted method. The treasury stock method should no longer be used to calculate diluted net income per share for convertible instruments. The Company adopted ASU 2020-06 on January 1, 2022 using the modified retrospective method. Adoption of the new standard is expected to result in an increase of retained earnings in an amount of $26,602, a decrease of additional paid-in capital in an amount of $65,932, an increase of convertible senior notes, net, in an amount of $46,270 and a decrease of deferred tax liabilities, net, in an amount of $6,940. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. In October 2021, the FASB issued ASU No. 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers". The standard requires an acquirer in a business combination to recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606, Revenue from Contracts with Customers, as if it had originated the contracts. The standard is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. Early adoption is permitted. The Company is currently evaluating the impact of the new guidance on its consolidated financial statements. In November 2021, the FASB issued ASU No. 2021-10, “Government Assistance (Topic 832): Disclosure by Business Entities about Government Assistance .” The new standard improves the transparency of government assistance received by most business entities by requiring the disclosure of: (1) the types of government assistance received; (2) the accounting for such assistance; and (3) the effect of the assistance on a business entity's financial statements. This guidance is effective for financial statements issued for annual periods beginning after December 15, 2021. Early adoption is permitted. The Company does not expect the adoption of the standard will have a material impact on its consolidated financial statements. |
Reclassification | ad. Reclassification: Certain comparative figures have been reclassified to conform to the current year presentation. Also, beginning in the first quarter of 2021, the Company revised the presentation of its lines of revenue and cost of revenue. The Company believes that the revised categories for revenue and cost of revenue as presented on the income statement align with how management evaluates the business and the shift toward recurring revenues. The new revenue lines consist of (a) Subscription revenue, which represents SaaS and self-hosted subscription revenue including the license portion of self-hosted subscription revenue and the ratable maintenance component of self-hosted subscription revenue, (b) Perpetual license revenue and (c) Maintenance and professional services revenue, which represents the maintenance component related to perpetual license sales and professional services revenue. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule Of Property And Equipment Estimated Useful Life | % Computers, software and related equipment 20 – 33 Office furniture and equipment 15 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Schedule of Company's Revenue by Category | December 31, 2019 2020 2021 SaaS $ 7,286 $ 24,305 $ 69,303 Self-hosted subscription * 10,882 32,120 65,325 Perpetual license 221,955 176,061 115,738 Maintenance and support 157,486 190,897 214,036 Professional services 36,286 41,048 38,515 $ 433,895 $ 464,431 $ 502,917 |
MARKETABLE SECURITIES (Table)
MARKETABLE SECURITIES (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of summarizes the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities | December 31, 2020 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 354,775 $ (115 ) $ 3,004 $ 357,664 Government debentures 41,185 (17 ) 214 41,382 Total $ 395,960 $ (132 ) $ 3,218 $ 399,046 December 31, 2021 Amortized cost Gross unrealized losses *) Gross unrealized gains Fair value Corporate debentures $ 453,927 $ (1,493 ) $ 881 $ 453,315 Government debentures 47,450 (254 ) 84 47,280 Total $ 501,377 $ (1,747 ) $ 965 $ 500,595 *) Out of the total unrealized losses, an amount of $16 has been in a continuous unrealized loss position for twelve months or longer. |
Schedule of summarizes the amortized cost and fair value of available-for-sale marketable securities | December 31, 2020 2021 Amortized cost Fair value Amortized cost Fair value Due within one year $ 196,587 $ 196,856 $ 199,883 $ 199,933 Due between one and four years 199,373 202,190 301,494 300,662 $ 395,960 $ 399,046 $ 501,377 $ 500,595 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses And Other Current Assets | December 31, 2020 2021 Prepaid expenses $ 7,346 $ 15,566 Hedging transaction assets 1,654 2,069 Government authorities 1,720 3,365 Deferred commissions 3,079 801 Other current assets 1,513 424 $ 15,312 $ 22,225 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property And Equipment | December 31, 2020 2021 Cost: Computers, software and related equipment *) $ 25,828 $ 35,290 Leasehold improvements 7,490 7,739 Office furniture and equipment 3,870 4,090 37,188 47,119 Less - accumulated depreciation 18,651 26,936 Depreciated cost $ 18,537 $ 20,183 *) For the years ended December 31, 2020 and 2021, the Company capitalized $3,369 and $4,160 including $612 and $569 of share-based compensation costs, relating to its internal use software and website development, respectively. |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of carrying amount of goodwill | December 31, 2020 2021 Balance as of beginning of the year $ 82,400 $ 123,717 Goodwill acquired 41,317 - Closing balance $ 123,717 $ 123,717 |
Schedule of Intangible Assets | December 31, 2020 2021 Original amount: Technology $ 39,625 $ 39,625 Customer relationships 9,586 9,586 Other 664 664 49,875 49,875 Less - accumulated amortization 26,199 32,009 Intangible assets, net $ 23,676 $ 17,866 |
Schedule of Future Amortization Expense | 2022 4,877 2023 4,329 2024 4,282 2025 1,849 2026 441 Thereafter 2,088 $ 17,866 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Payables and Accruals [Abstract] | |
Schedule Of Accrued Expenses And Other Current Liabilities | December 31, 2020 2021 Government authorities $ 4,871 $ 3,839 Accrued expenses 6,825 8,771 Unrecognized tax benefits 4,633 3,870 Lease liability, current 7,025 6,974 Hedging transaction liabilities 1,561 122 $ 24,915 $ 23,576 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Costs | Year ended December 31, 2020 2021 Operating lease cost $ 6,495 $ 7,224 Short-term lease cost 1,709 1,188 Variable lease cost 1,193 1,302 Sublease income (273 ) (195 ) Total net lease costs $ 9,124 $ 9,519 |
Schedule of Supplemental Balance Sheet Information Related to Operating Leases | Year ended December 31, 2020 2021 Operating lease ROU assets (under other long-term assets in the balance sheets) $ 20,363 $ 14,159 Operating lease liabilities, current $ 7,025 $ 6,974 Operating lease liabilities, long-term (under other long-term liabilities in the balance sheets) $ 16,202 $ 10,239 Weighted average remaining lease term (in years) 3.8 2.9 Weighted average discount rate 1.7 % 1.7 % |
Schedule of Minimum Lease Payments for Company's ROU Assets Over Remaining Lease Periods | December 31, 2022 $ 7,017 2023 6,121 2024 3,872 2025 389 2026 197 Total undiscounted lease payments 17,596 Less: imputed interest (383 ) Present value of lease liabilities $ 17,213 |
FAIR VALUE MEASUREMENTS (Table)
FAIR VALUE MEASUREMENTS (Table) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of financial assets and liabilities | December 31, 2020 2021 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 260,940 $ - $ 260,940 $ 204,367 $ - $ 204,367 Corporate debentures - - - - 1,818 1,818 Commercial paper - 13,555 13,555 - 14,076 14,076 Marketable securities: Corporate debentures and commercial paper - 357,664 357,664 - 453,315 453,315 Government debentures - 41,382 41,382 - 47,280 47,280 Total assets measured at fair value $ 260,940 $ 412,601 $ 673,541 $ 204,367 $ 516,489 $ 720,856 |
CONVERTIBLE SENIOR NOTES, NET (
CONVERTIBLE SENIOR NOTES, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Notes | December 31, 2020 2021 Liability component: Principal amount $ 575,000 $ 575,000 Unamortized discount (62,356 ) (46,976 ) Unamortized issuance costs (10,342 ) (7,930 ) Net carrying amount $ 502,302 $ 520,094 Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022 $ 65,932 $ 65,932 |
Schedule of Interest Expense Related to Notes | December 31, 2020 2021 Amortization of debt discount $ 14,931 $ 15,380 Amortization of debt issuance costs 2,252 2,412 Total interest expense recognized $ 17,183 $ 17,792 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Shares Capital | December 31, 2020 2021 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares Ordinary shares of NIS 0.01 par value each 250,000,000 39,034,759 250,000,000 40,041,870 |
Schedule of Share Based Compensation Expense | Year ended December 31, 2019 2020 2021 Cost of revenues $ 5,690 $ 8,734 $ 11,158 Research and development 10,960 14,691 20,498 Sales and marketing 20,976 28,220 38,546 General and administrative 17,891 20,204 25,234 Total share-based compensation expense $ 55,517 $ 71,849 $ 95,436 |
Schedule of Stock Option Activity | Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2020 648,773 $ 62.09 5.94 $ 64,555 Granted 22,600 162.24 Exercised 197,667 55.35 Forfeited 12,854 101.87 Balance as of December 31, 2021 460,852 68.78 5.44 48,261 Exercisable as of December 31, 2021 390,954 $ 60.05 4.95 $ 44,269 |
Schedule of Fair Value Assumptions | Year ended December 31, Options 2019 2020 2021 Expected volatility 48 % 40%-41 % 44%-46 % Expected dividends 0 % 0 % 0 % Expected term (in years) 5.90-6.10 4.02-4.20 3.65-3.88 Risk free rate 1.49%-2.49 % 0.22%-1.61 % 0.49%-0.99 % Year ended December 31, ESPP 2019 2020 2021 Expected volatility - - 33.63 % Expected dividends - - 0 % Expected term (in years) - - 0.5 Risk free rate - - 0.1 % |
Schedule of Options Data | Year ended December 31, 2019 2020 2021 Weighted-average grant date fair value of options granted $ 55.43 $ 33.82 $ 55.50 Total intrinsic value of the options exercised $ 45,326 $ 18,790 $ 20,742 |
Schedule of RSUs and PSUs Activity | Amount of RSUs and PSUs Weighted average grant date fair value Unvested as of December 31, 2020 2,121,633 $ 98.67 Granted 1,111,672 $ 143.69 Vested 809,444 $ 90.16 Forfeited 244,147 $ 109.88 Unvested as of December 31, 2021 2,179,714 $ 123.54 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income Before Income Taxes | Year ended December 31, 2019 2020 2021 Domestic income (loss) $ 52,254 $ (12,643 ) $ (113,339 ) Foreign income 17,830 12,254 22,010 $ 70,084 $ (389 ) $ (91,329 ) |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2020 2021 Deferred tax assets: Carry-forwards losses and credits $ 36,314 $ 42,202 Capital losses carry-forwards 94 96 Research and development expenses 2,521 11,848 Deferred revenues 10,345 11,005 Intangible assets 8,037 7,730 Share-based compensation 11,547 15,046 Operating lease liability 1,351 1,088 Accruals and other 3,695 4,638 Gross deferred tax assets before valuation allowance 73,904 93,653 Less: Valuation allowance 19,591 20,614 Total deferred tax assets $ 54,313 $ 73,039 Deferred tax liabilities: Intangible assets $ 1,606 $ 2,189 Convertible senior notes 8,724 6,946 Deferred commission 8,251 14,969 Operating lease ROU asset 1,254 827 Property and equipment and other 1,669 941 Gross deferred tax liabilities $ 21,504 $ 25,872 Net deferred tax assets $ 32,809 $ 47,167 |
Schedule of Income Taxes | Year ended December 31, 2019 2020 2021 Current $ 13,994 $ 7,357 $ 4,589 Deferred (6,974 ) (1,988 ) (11,972 ) $ 7,020 $ 5,369 $ (7,383 ) Year ended December 31, 2019 2020 2021 Domestic $ 8,093 $ (1,431 ) $ (12,171 ) Foreign (1,073 ) 6,800 4,788 $ 7,020 $ 5,369 $ (7,383 ) |
Schedule of Reconciliation of Income Taxes | Year ended December 31, 2019 2020 2021 Income (loss) before income taxes $ 70,084 $ (389 ) $ (91,329 ) Statutory tax rate 23.0 % 23.0 % 23.0 % Theoretical income tax expense (benefit) 16,119 (89 ) (21,006 ) Excess tax benefits related to share-based compensation (6,391 ) (3,645 ) (4,424 ) Non-deductible expenses 3,002 3,054 3,988 Intra-entity intellectual property transfer - 5,036 - Valuation allowance - - 1,896 Unrecognized tax benefits 1,343 (322 ) (1,638 ) Foreign and preferred enterprise tax rates differential (6,717 ) 1,714 12,171 Impact of CARES Act - (683 ) - Prior years and others (336 ) 304 1,630 Income tax expense (tax benefit) $ 7,020 $ 5,369 $ (7,383 ) |
Schedule of Unrecognized Tax Benefits | Year ended December 31, 2019 2020 2021 Opening balance $ 1,993 $ 3,728 $ 4,633 Decrease related to settlements with taxing authorities - (796 ) (2,382 ) Increase related to prior year tax positions 120 74 976 Decrease related to expiration of statutes of limitations (242 ) (92 ) - Increase related to current year tax positions 1,857 1,719 643 Closing balance $ 3,728 $ 4,633 $ 3,870 |
FINANCIAL INCOME (EXPENSE), N_2
FINANCIAL INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of Financial Income | Year ended December 31, 2019 2020 2021 Bank charges $ (274 ) $ (275 ) $ (250 ) Exchange rate income (loss), net (803 ) 683 (509 ) Interest income 10,843 10,380 5,559 Amortization of debt discount and issuance costs (1,966 ) (17,183 ) (17,792 ) Financial income (expense), net $ 7,800 $ (6,395 ) $ (12,992 ) |
BASIC AND DILUTED NET INCOME _2
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Income (Loss) per Share | Year ended December 31, 2019 2020 2021 Numerator: Net income (loss) available to shareholders of ordinary shares $ 63,064 $ (5,758 ) $ (83,946 ) Denominator: Shares used in computing basic net income (loss) per ordinary shares 37,586,387 38,628,770 39,645,453 Year ended December 31, 2019 2020 2021 Numerator: Net income (loss) available to shareholders of ordinary shares $ 63,064 $ (5,758 ) $ (83,946 ) Denominator: Shares used in computing diluted net income (loss) per ordinary shares 38,890,108 38,628,770 39,645,453 |
SEGMENTS, CUSTOMERS AND GEOGR_2
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenue by Geographic Location | Year ended December 31, 2019 2020 2021 United States $ 233,945 $ 246,811 $ 253,811 Israel 7,827 7,312 7,416 United Kingdom 36,146 33,101 35,530 Europe, the Middle East and Africa *) 85,757 101,453 120,382 Other 70,220 75,754 85,778 $ 433,895 $ 464,431 $ 502,917 |
Schedule of Long-Lived Assets by Geographic Location | December 31, 2020 2021 United States $ 9,363 $ 6,813 Israel 26,438 24,391 United Kingdom 1,756 1,294 Europe, the Middle East and Africa *) 274 474 Other 1,069 1,370 $ 38,900 $ 34,342 *) Excluding United Kingdom and Israel |
GENERAL (Narrative) (Details)
GENERAL (Narrative) (Details) - Idaptive [Member] $ in Thousands | 1 Months Ended |
May 31, 2020USD ($) | |
General [Line Items] | |
Total gross consideration | $ 68,603 |
Acquisition costs | $ 2,932 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 30, 2019 | |
Significant Accounting Policies [Line Items] | ||||
Weighted Average Rate Domestic Deposit Short Term | 0.72% | 0.86% | ||
Accumulated Other Comprehensive Income (Loss), Currency Forward and Option, Net Of Tax | $ 1,086,000 | $ 1,459,000 | ||
Accumulated Other Comprehensive Income (Loss), Currency Forward and Option, Tax | $ 148,000 | 200,000 | ||
Percentage Of Severance Benefits Covered By Contributory Funded Contract Type Corporate Pension Plans | 8.33% | |||
Severance expenses | $ 6,368,000 | 4,813,000 | $ 4,035,000 | |
Maximum annual contribution per employee | $ 19,500 | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 100.00% | |||
Matching contribution expense | $ 4,386,000 | 3,533,000 | 2,697,000 | |
Marketing expenses | 27,504,000 | 22,082,000 | 20,055,000 | |
Retained earnings | 137,074,000 | 221,020,000 | ||
Aggregate amount of the transaction price allocated to remaining performance obligation | $ 516,000,000 | |||
Revenue remaining performance obligations percentage | 59.00% | |||
Prepaid expenses and other current assets | $ 22,225,000 | 15,312,000 | ||
Other long-term assets | 121,743,000 | 99,992,000 | ||
Deposits in other long-term assets | 5,227,000 | 4,952,000 | ||
Accrued severance payable liability | 8,271,000 | 7,963,000 | ||
Amortization of deferred contract costs | 43,236,000 | 39,592,000 | ||
Issuance costs attributable to liability | 12,900,000 | |||
Issuance costs attributable to equity components | 2,000,000 | |||
Unbilled Contracts Receivable Non Current | 1,873,000 | 15,530,000 | ||
Unbilled receivables | 12,517,000 | 8,328,000 | ||
Recognized deferred revenues | 154,167,000 | |||
Additional paid-in capital | 588,937,000 | 481,992,000 | ||
Decrease of deferred tax liabilities | 11,022,000 | |||
ASU 2021-08 (Member) | ||||
Significant Accounting Policies [Line Items] | ||||
Retained earnings | 26,602,000 | |||
Additional paid-in capital | 65,932,000 | |||
Increase of convertible senior notes | 46,270,000 | |||
Decrease of deferred tax liabilities | $ 6,940,000 | |||
Convertible Senior Note [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Effective interest rate | 3.50% | 0.00% | ||
Deferred contract costs [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Prepaid expenses and other current assets | $ 801,000 | 3,079,000 | ||
Other long-term assets | $ 96,619,000 | 48,716,000 | ||
First Three Percent Pay Contribution [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 3.00% | |||
Next Two Percent Contribution [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 50.00% | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 2.00% | |||
Employees Over Fifty Years [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Maximum annual contribution per employee | $ 26,000 | |||
Minimum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Useful Life Of Finite Lived Intangible Asset | 2 years | |||
Maximum [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Useful Life Of Finite Lived Intangible Asset | 12 years | |||
Foreign Exchange Forward and Option [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Notional amounts | $ 32,546,000 | |||
Fair value of derivative asset | 751,000 | 0 | ||
Foreign Exchange Forward and Option [Member] | Derivative Liabilities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Fair value of derivative liability | 36,000 | 1,561,000 | ||
Foreign Exchange Forward [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Financial Income Expenses Hedging Transaction | 2,099,000 | (1,317,000) | $ 515,000 | |
Foreign Exchange Forward [Member] | Derivative Assets [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Fair value of derivative asset | 1,318,000 | 1,654,000 | ||
fair value of derivative instruments liabilities | 86,000 | $ 0 | ||
Foreign Exchange Forward [Member] | Derivative Liabilities [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Notional amounts | $ 70,592,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Depreciation Rates) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computers, software and Related Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual Rate Of Depreciation On Property And Equipment | 20.00% |
Computers, software and Related Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual Rate Of Depreciation On Property And Equipment | 33.00% |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual Rate Of Depreciation On Property And Equipment | 15.00% |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual Rate Of Depreciation On Property And Equipment | 20.00% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Company's Revenue by Category) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 502,917 | $ 464,431 | $ 433,895 |
Saas [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 69,303 | 24,305 | 7,286 |
Self-hosted subscription (Member) | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 65,325 | 32,120 | 10,882 |
Perpetual License [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 115,738 | 176,061 | 221,955 |
Maintenance and support [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 214,036 | 190,897 | 157,486 |
Professional services [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 38,515 | $ 41,048 | $ 36,286 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of amortized cost, unrealized gains and losses, and fair value of available-for-sale) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Marketable Securities [Line Items] | |||
Amortized cost | $ 501,377 | $ 395,960 | |
Gross unrealized losses | (1,747) | [1] | (132) |
Gross unrealized gains | 965 | 3,218 | |
Fair value | 500,595 | 399,046 | |
Available-for-sale securities, continuous unrealized loss position for twelve months or longer | 16 | ||
Corporate debentures [Member] | |||
Marketable Securities [Line Items] | |||
Amortized cost | 453,927 | 354,775 | |
Gross unrealized losses | (1,493) | [1] | (115) |
Gross unrealized gains | 881 | 3,004 | |
Fair value | 453,315 | 357,664 | |
Government debentures [Member] | |||
Marketable Securities [Line Items] | |||
Amortized cost | 47,450 | 41,185 | |
Gross unrealized losses | (254) | [1] | (17) |
Gross unrealized gains | 84 | 214 | |
Fair value | $ 47,280 | $ 41,382 | |
[1] | Out of the total unrealized losses, an amount of $16 has been in a continuous unrealized loss position for twelve months or longer. |
MARKETABLE SECURITIES (Schedu_2
MARKETABLE SECURITIES (Schedule of amortized cost and fair value of available-for-sale marketable securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Amortized cost | ||
Due within one year | $ 199,883 | $ 196,587 |
Due between one and four years | 301,494 | 199,373 |
Amortized cost | 501,377 | 395,960 |
Fair value | ||
Due within one year | 199,933 | 196,856 |
Due between one and four years | 300,662 | 202,190 |
Debt Securities, Available-for-sale, Total | $ 500,595 | $ 399,046 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses | $ 15,566 | $ 7,346 |
Hedging transaction assets | 2,069 | 1,654 |
Government authorities | 3,365 | 1,720 |
Deferred commissions | 801 | 3,079 |
Other current assets | 424 | 1,513 |
Prepaid expenses and other current assets | $ 22,225 | $ 15,312 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation expense | $ 8,418 | $ 6,634 | $ 5,057 |
Computers, software and Related Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment capitalized costs | 4,160 | 3,369 | |
Share-based compensation costs capitalized during the period | $ 569 | $ 612 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 47,119 | $ 37,188 |
Less - accumulated depreciation | 26,936 | 18,651 |
Depreciated cost | 20,183 | 18,537 |
Computers, software and Related Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 35,290 | 25,828 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 7,739 | 7,490 |
Office Furniture and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 4,090 | $ 3,870 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization expense | $ 5,810 | $ 8,841 | $ 5,589 |
Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives | 3 years 3 months 18 days | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Weighted-average remaining useful lives | 9 years 9 months 18 days |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of carrying amount of goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Balance as of beginning of the year | $ 123,717 | $ 82,400 |
Goodwill acquired | 0 | 41,317 |
Closing balance | $ 123,717 | $ 123,717 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 49,875 | $ 49,875 |
Less - accumulated amortization | 32,009 | 26,199 |
Intangible assets, net | 17,866 | 23,676 |
Technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 39,625 | 39,625 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | 9,586 | 9,586 |
Other [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Original amount | $ 664 | $ 664 |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2022 | $ 4,877 | |
2023 | 4,329 | |
2024 | 4,282 | |
2025 | 1,849 | |
2026 | 441 | |
Thereafter | 2,088 | |
Intangible assets, net | $ 17,866 | $ 23,676 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued expenses and other current liabilities | $ 23,576 | $ 24,915 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Government authorities | 3,839 | 4,871 |
Accrued expenses | 8,771 | 6,825 |
Unrecognized tax benefits | 3,870 | 4,633 |
Lease liability, current | 6,974 | 7,025 |
Hedging transaction liabilities | $ 122 | $ 1,561 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Bank guarantee, office lease agreement | $ 1,716 |
Non-cancelable contractual commitment | $ 38,125 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (in years) | 2 years 10 months 24 days | 3 years 9 months 18 days |
Number of years in which lease term can be extended | 8 years | |
Maximum [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term (in years) | 4 years 6 months |
LEASES (Schedule of Components
LEASES (Schedule of Components of Operating Lease Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Operating lease cost | $ 7,224 | $ 6,495 |
Short-term lease cost | 1,188 | 1,709 |
Variable lease cost | 1,302 | 1,193 |
Sublease income | (195) | (273) |
Total net lease costs | $ 9,519 | $ 9,124 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Balance Sheet Information Related to Operating Leases) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Operating lease ROU assets (under other long-term assets in the balance sheet) | $ 14,159 | $ 20,363 |
Weighted average remaining lease term (in years) | 2 years 10 months 24 days | 3 years 9 months 18 days |
Weighted average discount rate | 1.70% | 1.70% |
Accrued Expenses and Other Current Liabilities [Member] | ||
Operating lease liabilities, current | $ 6,974 | $ 7,025 |
Non-current Liabilities [Member] | ||
Operating lease liabilities, long-term (under other long-term liabilities in the balance sheet) | $ 10,239 | $ 16,202 |
LEASES (Schedule of Minimum Lea
LEASES (Schedule of Minimum Lease Payments for Company's ROU Assets Over Remaining Lease Periods) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
2022 | $ 7,017 |
2023 | 6,121 |
2024 | 3,872 |
2025 | 389 |
2026 | 197 |
Total undiscounted lease payments | 17,596 |
Less: imputed interest | (383) |
Liabilities [Member] | |
Present value of lease liabilities | $ 17,213 |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Millions | Dec. 31, 2021USD ($) |
SeniorNotesMember | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Estimated fair value | $ 729.8 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of fair value of financial assets and liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Money Market And Marketable Securities | $ 720,856 | $ 673,541 |
Corporate Debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,818 | 0 |
Available For Sale Marketable Securities | 453,315 | 357,664 |
Government debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available For Sale Marketable Securities | 47,280 | 41,382 |
Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 14,076 | 13,555 |
Cash equivalent and Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 204,367 | 260,940 |
Level 1 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Money Market And Marketable Securities | 204,367 | 260,940 |
Level 1 [Member] | Corporate Debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Available For Sale Marketable Securities | 0 | 0 |
Level 1 [Member] | Government debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available For Sale Marketable Securities | 0 | 0 |
Level 1 [Member] | Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 1 [Member] | Cash equivalent and Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 204,367 | 260,940 |
Level 2 [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fair Value Money Market And Marketable Securities | 516,489 | 412,601 |
Level 2 [Member] | Corporate Debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 1,818 | 0 |
Available For Sale Marketable Securities | 453,315 | 357,664 |
Level 2 [Member] | Government debentures [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Available For Sale Marketable Securities | 47,280 | 41,382 |
Level 2 [Member] | Commercial paper [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 14,076 | 13,555 |
Level 2 [Member] | Cash equivalent and Money market funds [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
CONVERTIBLE SENIOR NOTES, NET_2
CONVERTIBLE SENIOR NOTES, NET (Narrative) (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | ||||
Nov. 30, 2019USD ($) | Dec. 31, 2021₪ / shares | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020₪ / shares | Dec. 31, 2020USD ($) | |
Debt Instrument [Line Items] | |||||
Ordinary shares, par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | |||
Cost of capped call transactions | $ 53,600 | ||||
Capped call initial strike price | $ / shares | $ 157.53 | ||||
Issuance costs | $ 2,046 | ||||
Deferred Tax Liabilities, Net | 11,022 | ||||
Convertible Senior Note [Member] | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 500,000 | $ 575,000 | $ 575,000 | ||
Coupon rate | 0.00% | 3.50% | |||
Due date | 2024-11-15 | ||||
Debt Instrument Additional Face Amount | $ 75,000 | ||||
Conversion rate | $ / shares | $ 157.53 | ||||
Conversion rate description | The Convertible Notes are convertible based upon an initial conversion rate of 6.3478 of the Company's ordinary shares, par value NIS 0.01 per share per $1 principal amount of Convertible Notes (equivalent to a conversion price of approximately $157.53 per ordinary share). | ||||
Conversion rate percentage | 130.00% | ||||
Principal amount of convertible notes for each trading day | $ 1 | ||||
Percentage of measurement period of product of last reported sale price | 98.00% | ||||
Percentage of repurchase price equal to principal amount of convertible notes | 100.00% | ||||
Cap price of the capped call transactions | $ / shares | $ 229.14 |
CONVERTIBLE SENIOR NOTES, NET_3
CONVERTIBLE SENIOR NOTES, NET (Schedule of Net Carrying Amount of Liability and Equity Components of Notes) (Details) - Convertible Senior Note [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 30, 2019 |
Net carrying amount of the liability and equity components: | |||
Principal amount | $ 575,000 | $ 575,000 | $ 500,000 |
Unamortized discount | (46,976) | (62,356) | |
Unamortized issuance costs | (7,930) | (10,342) | |
Net carrying amount | 520,094 | 502,302 | |
Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022 | $ 65,932 | $ 65,932 |
CONVERTIBLE SENIOR NOTES, NET_4
CONVERTIBLE SENIOR NOTES, NET (Schedule of Interest Expense Related to Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |||
Amortization of debt discount | $ 15,380 | $ 14,931 | |
Amortization of debt issuance costs | 2,412 | 2,252 | |
Total interest expense recognized | $ 17,792 | $ 17,183 | $ 1,966 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Class of Stock [Line Items] | |||
Number of shares reserved for future grants | 1,333,148 | ||
Unrecognized share based compensation expense | $ 209,367 | ||
Unrecognized share based compensation expense recognition period | 2 years 8 months 19 days | ||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Total fair value of RSUs and PSUs vested | $ 113,918 | $ 76,027 | $ 67,737 |
Employee Stock Purchase Plan ("ESPP") | |||
Class of Stock [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Percentage of amount not exceeding share based compensation employees receive. | 15.00% | ||
Number of ordinary shares reserved | 125,000 | ||
Increase in number of ordinary shares | 1,000,000 | ||
Percentage of fair value of ordinary shares | 85.00% |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Shares Capital) (Details) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' Equity Note [Abstract] | ||
Ordinary shares, Authorized | 250,000,000 | 250,000,000 |
Ordinary shares, issued | 40,041,870 | 39,034,759 |
Ordinary shares, outstanding | 40,041,870 | 39,034,759 |
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 95,436 | $ 71,849 | $ 55,517 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 11,158 | 8,734 | 5,690 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 20,498 | 14,691 | 10,960 |
Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 38,546 | 28,220 | 20,976 |
General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 25,234 | $ 20,204 | $ 17,891 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Amount of options | ||
Beginning balance | 648,773 | |
Granted | 22,600 | |
Exercised | 197,667 | |
Forfeited | 12,854 | |
Ending balance | 460,852 | 648,773 |
Exercisable | 390,954 | |
Weighted average exercise price | ||
Beginning balance | $ 62.09 | |
Granted | 162.24 | |
Exercised | 55.35 | |
Forfeited | 101.87 | |
Ending balance | 68.78 | $ 62.09 |
Exercisable | $ 60.05 | |
Weighted average remaining contractual term (in years) | ||
Options outstanding | 5 years 5 months 8 days | 5 years 11 months 8 days |
Exercisable | 4 years 11 months 12 days | |
Aggregate intrinsic value | ||
Options outstanding | $ 48,261 | $ 64,555 |
Exercisable | $ 44,269 |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of Fair Value Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 48.00% | ||
Expected dividends | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan ("ESPP") | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 33.63% | 0.00% | 0.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term (in years) | 6 months | ||
Risk free rate | 0.10% | 0.00% | 0.00% |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 44.00% | 40.00% | |
Expected term (in years) | 3 years 7 months 24 days | 4 years 7 days | 5 years 10 months 24 days |
Risk free rate | 0.49% | 0.22% | 1.49% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 46.00% | 41.00% | |
Expected term (in years) | 3 years 10 months 17 days | 4 years 2 months 12 days | 6 years 1 month 6 days |
Risk free rate | 0.99% | 1.61% | 2.49% |
SHAREHOLDERS' EQUITY (Schedul_5
SHAREHOLDERS' EQUITY (Schedule of Options Data) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |||
Weighted-average grant date fair value of options granted | $ 55.50 | $ 33.82 | $ 55.43 |
Total intrinsic value of the options exercised | $ 20,742 | $ 18,790 | $ 45,326 |
SHAREHOLDERS' EQUITY (Schedul_6
SHAREHOLDERS' EQUITY (Schedule of RSUs and PSUs Activity) (Details) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Amount of RSUs and PSUs | |
Unvested beginning balance | shares | 2,121,633 |
Granted | shares | 1,111,672 |
Vested | shares | 809,444 |
Forfeited | shares | 244,147 |
Unvested ending balance | shares | 2,179,714 |
Weighted average grant date fair value | |
Unvested beginning balance | $ / shares | $ 98.67 |
Granted | $ / shares | 143.69 |
Vested | $ / shares | 90.16 |
Forfeited | $ / shares | 109.88 |
Unvested ending balance | $ / shares | $ 123.54 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) $ in Thousands, ₪ in Millions | 12 Months Ended | |||
Dec. 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Operating Loss Carryforwards [Line Items] | ||||
Corporate tax rate in effect | 23.00% | 23.00% | 23.00% | 23.00% |
Undistributed earnings | $ 55,505 | |||
Operating loss carry-forwards | 148,689 | |||
Capital tax losses | $ 258 | |||
Operating loss carry-forward expiration term | 20 years | 20 years | ||
Operating loss carry-forward post tax act losses | $ 95,254 | |||
Percentage of taxable income limitation | 80.00% | 80.00% | ||
Tax exempt profits | $ 16,353 | |||
Income tax liability that would have been incurred if retained tax exempt income is distributed | $ 4,015 | |||
Capital gains tax rate | 12.00% | 12.00% | ||
Percentage of annual income derived from exports | 25.00% | 25.00% | ||
Purchase of intangible assets from foreign resident | ₪ | ₪ 200 | |||
Foreign tax rate | 4.00% | 4.00% | ||
Withholding tax rate | 20.00% | 20.00% | ||
Interest expense (income) related to uncertain tax positions | $ (21) | $ 21 | $ 47 | |
Total accrual for interest | 112 | $ 133 | ||
U.S. [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carry-forwards | 141,209 | |||
Foreign Country Subsidiary [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Operating loss carry-forwards | $ 45,955 | |||
Israel [Member] | ||||
Operating Loss Carryforwards [Line Items] | ||||
Corporate tax rate in effect | 12.00% | 12.00% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic income (loss) | $ (113,339) | $ (12,643) | $ 52,254 |
Foreign income | 22,010 | 12,254 | 17,830 |
Income (loss) before taxes on income | $ (91,329) | $ (389) | $ 70,084 |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Carry-forwards losses and credits | $ 42,202 | $ 36,314 |
Capital losses carry-forwards | 96 | 94 |
Research and development expenses | 11,848 | 2,521 |
Deferred revenues | 11,005 | 10,345 |
Intangible assets | 7,730 | 8,037 |
Share-based compensation | 15,046 | 11,547 |
Operating lease liability | 1,088 | 1,351 |
Accruals and other | 4,638 | 3,695 |
Gross deferred tax assets before valuation allowance | 93,653 | 73,904 |
Less: Valuation allowance | 20,614 | 19,591 |
Total deferred tax assets | 73,039 | 54,313 |
Deferred tax liabilities: | ||
Intangible assets | 2,189 | 1,606 |
Convertible senior notes | 6,946 | 8,724 |
Deferred commission | 14,969 | 8,251 |
Operating lease ROU asset | 827 | 1,254 |
Property and equipment and other | 941 | 1,669 |
Gross deferred tax liabilities | 25,872 | 21,504 |
Net deferred tax assets | $ 47,167 | $ 32,809 |
INCOME TAXES (Schedule of Inc_2
INCOME TAXES (Schedule of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 4,589 | $ 7,357 | $ 13,994 |
Deferred | (11,972) | (1,988) | (6,974) |
Domestic | (12,171) | (1,431) | 8,093 |
Foreign | 4,788 | 6,800 | (1,073) |
Income tax expense | $ (7,383) | $ 5,369 | $ 7,020 |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation of Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income (loss) before income taxes | $ (91,329) | $ (389) | $ 70,084 |
Statutory tax rate | 23.00% | 23.00% | 23.00% |
Theoretical income tax expense (benefit) | $ (21,006) | $ (89) | $ 16,119 |
Excess tax benefits related to share-based compensation | (4,424) | (3,645) | (6,391) |
Non-deductible expenses | 3,988 | 3,054 | 3,002 |
Intra-entity intellectual property transfer | 0 | 5,036 | 0 |
Valuation allowance | 1,896 | 0 | 0 |
Unrecognized tax benefits | (1,638) | (322) | 1,343 |
Foreign and preferred enterprise tax rates differential | 12,171 | 1,714 | (6,717) |
Impact of CARES Act | 0 | (683) | 0 |
Prior years and others | 1,630 | 304 | (336) |
Income tax expense (tax benefit) | $ (7,383) | $ 5,369 | $ 7,020 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Opening balance | $ 4,633 | $ 3,728 | $ 1,993 |
Decrease related to settlements with taxing authorities | (2,382) | (796) | 0 |
Increase related to prior year tax positions | 976 | 74 | 120 |
Decrease related to expiration of statutes of limitations | 0 | (92) | (242) |
Increase related to current year tax positions | 643 | 1,719 | 1,857 |
Closing balance | $ 3,870 | $ 4,633 | $ 3,728 |
FINANCIAL INCOME (EXPENSE), N_3
FINANCIAL INCOME (EXPENSE), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |||
Bank charges | $ (250) | $ (275) | $ (274) |
Exchange rate income (loss), net | (509) | 683 | (803) |
Interest income | 5,559 | 10,380 | 10,843 |
Amortization of debt discount and issuance costs | (17,792) | (17,183) | (1,966) |
Financial income (expense), net | $ (12,992) | $ (6,395) | $ 7,800 |
BASIC AND DILUTED NET INCOME _3
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive securities excluded from computation of earnings per share, amount | 2,734,308 | 2,823,985 | 495,975 |
Number of additional antidilutive securities excluded from computation of earnings per share amount | 3,600,000 | ||
Convertible Senior Note [Member] | |||
Conversion price | $ 157.53 |
BASIC AND DILUTED NET INCOME _4
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Schedule of Basic Income per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) available to shareholders of ordinary shares | $ (83,946) | $ (5,758) | $ 63,064 |
Denominator: | |||
Shares used in computing basic net income (loss) per ordinary shares | 39,645,453 | 38,628,770 | 37,586,387 |
BASIC AND DILUTED NET INCOME _5
BASIC AND DILUTED NET INCOME (LOSS) PER SHARE (Schedule of Diluted Income per Share) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net income (loss) available to shareholders of ordinary shares | $ (83,946) | $ (5,758) | $ 63,064 |
Denominator: | |||
Shares used in computing diluted net income (loss) per ordinary shares | 39,645,453 | 38,628,770 | 38,890,108 |
SEGMENTS, CUSTOMERS AND GEOGR_3
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Narrative) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | Single Customer [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenue Percentage | 10.00% | 10.00% | 10.00% |
SEGMENTS, CUSTOMERS AND GEOGR_4
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Revenue by Geographic Location) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 502,917 | $ 464,431 | $ 433,895 | |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 253,811 | 246,811 | 233,945 | |
Israel [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 7,416 | 7,312 | 7,827 | |
United Kingdom [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | 35,530 | 33,101 | 36,146 | |
Europe, the Middle East and Africa [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | [1] | 120,382 | 101,453 | 85,757 |
Other Country [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue | $ 85,778 | $ 75,754 | $ 70,220 | |
[1] | Excluding United Kingdom and Israel |
SEGMENTS, CUSTOMERS AND GEOGR_5
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||
Long Lived Assets | $ 34,342 | $ 38,900 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Long Lived Assets | 6,813 | 9,363 | |
Israel [Member] | |||
Segment Reporting Information [Line Items] | |||
Long Lived Assets | 24,391 | 26,438 | |
United Kingdom [Member] | |||
Segment Reporting Information [Line Items] | |||
Long Lived Assets | 1,294 | 1,756 | |
Europe, the Middle East and Africa [Member] | |||
Segment Reporting Information [Line Items] | |||
Long Lived Assets | [1] | 474 | 274 |
Other Country [Member] | |||
Segment Reporting Information [Line Items] | |||
Long Lived Assets | $ 1,370 | $ 1,069 | |
[1] | Excluding United Kingdom and Israel |