Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2023 | Apr. 28, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37565 | |
Entity Registrant Name | NovoCure Limited | |
Entity Incorporation, State or Country Code | Y9 | |
Entity Tax Identification Number | 98-1057807 | |
Entity Address, Address Line One | No. 4 The Forum | |
Entity Address, Address Line Two | Grenville Street | |
Entity Address, City or Town | St. Helier | |
Entity Address, Country | JE | |
Entity Address, Postal Zip Code | JE2 4UF | |
City Area Code | 44 (0) 15 | |
Local Phone Number | 3475 6700 | |
Title of 12(b) Security | Ordinary Shares, no par value | |
Trading Symbol | NVCR | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 106,209,251 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001645113 | |
Current Fiscal Year End Date | --12-31 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 185,963 | $ 115,326 |
Short-term investments | 772,072 | 854,099 |
Restricted cash | 676 | 508 |
Trade receivables, net | 74,830 | 86,261 |
Receivables and prepaid expenses | 23,730 | 25,959 |
Inventories | 31,723 | 29,376 |
Total current assets | 1,088,994 | 1,111,529 |
LONG-TERM ASSETS: | ||
Property and equipment, net | 36,454 | 32,678 |
Field equipment, net | 12,216 | 12,684 |
Right-of-use assets | 25,529 | 23,596 |
Other long-term assets | 11,147 | 11,161 |
Total long-term assets | 85,346 | 80,119 |
TOTAL ASSETS | 1,174,340 | 1,191,648 |
CURRENT LIABILITIES: | ||
Trade payables | 81,469 | 85,197 |
Other payables, lease liabilities and accrued expenses | 67,306 | 73,580 |
Total current liabilities | 148,775 | 158,777 |
LONG-TERM LIABILITIES: | ||
Long-term debt, net | 566,324 | 565,509 |
Deferred revenues | 1,843 | 2,878 |
Long-term leases | 19,973 | 18,762 |
Employee benefit liabilities | 5,143 | 4,404 |
Other long-term liabilities | 136 | 148 |
Total long-term liabilities | 593,419 | 591,701 |
TOTAL LIABILITIES | 742,194 | 750,478 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 106,187,162 shares and 105,049,411 shares at March 31, 2023 (unaudited) and December 31, 2022, respectively | 0 | 0 |
Additional paid-in capital | 1,266,358 | 1,222,063 |
Accumulated other comprehensive income (loss) | (2,691) | (2,433) |
Retained earnings (accumulated deficit) | (831,521) | (778,460) |
TOTAL SHAREHOLDERS' EQUITY | 432,146 | 441,170 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,174,340 | $ 1,191,648 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, shares issued (in shares) | 106,187,162 | 105,049,411 |
Common stock, shares outstanding (in shares) | 106,187,162 | 105,049,411 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Statement [Abstract] | |||
Net revenues | $ 122,182 | $ 137,547 | $ 537,840 |
Cost of revenues | 29,614 | 27,727 | 114,867 |
Gross profit | 92,568 | 109,820 | 422,973 |
Operating costs and expenses: | |||
Research, development and clinical studies | 59,704 | 42,234 | 206,085 |
Sales and marketing | 51,169 | 37,884 | 173,658 |
General and administrative | 41,944 | 30,508 | 132,753 |
Total operating costs and expenses | 152,817 | 110,626 | 512,496 |
Operating income (loss) | (60,249) | (806) | (89,523) |
Financial income (expenses), net | 9,169 | (1,709) | 7,677 |
Income (loss) before income tax | (51,080) | (2,515) | (81,846) |
Income tax | 1,981 | 2,132 | 10,688 |
Net income (loss) | $ (53,061) | $ (4,647) | $ (92,534) |
Basic net income (loss) per ordinary share (in usd per share) | $ (0.50) | $ (0.04) | $ (0.88) |
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) | 105,667,072 | 104,186,120 | 104,660,476 |
Diluted net income (loss) per ordinary share (in usd per share) | $ (0.50) | $ (0.04) | $ (0.88) |
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) | 105,667,072 | 104,186,120 | 104,660,476 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | |||
Net income (loss) | $ (53,061) | $ (4,647) | $ (92,534) |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation adjustments | 300 | 330 | 1,425 |
Unrealized gain (loss) from debt securities | 357 | 0 | (445) |
Pension benefit plan | (915) | 1,511 | (244) |
Total comprehensive income (loss) | $ (53,319) | $ (2,806) | $ (91,798) |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive loss | Retained earnings (accumulated deficit) |
Beginning balance (in shares) at Dec. 31, 2021 | 103,971,263 | ||||
Beginning balance at Dec. 31, 2021 | $ 410,494 | $ 1,099,589 | $ (3,169) | $ (685,926) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation to employees | 25,045 | 25,045 | |||
Exercise of options and vested RSUs (in shares) | 587,825 | ||||
Exercise of options and vested RSUs | 3,148 | 3,148 | |||
Other comprehensive income (loss), net of tax benefit of $0 | 1,841 | 1,841 | |||
Net income (loss) | (4,647) | (4,647) | |||
Ending balance (in shares) at Mar. 31, 2022 | 104,559,088 | ||||
Ending balance at Mar. 31, 2022 | 435,881 | 1,127,782 | (1,328) | (690,573) | |
Beginning balance (in shares) at Dec. 31, 2021 | 103,971,263 | ||||
Beginning balance at Dec. 31, 2021 | 410,494 | 1,099,589 | (3,169) | (685,926) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income (loss) | (92,534) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 105,049,411 | ||||
Ending balance at Dec. 31, 2022 | 441,170 | 1,222,063 | (2,433) | (778,460) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Share-based compensation to employees | 39,084 | 39,084 | |||
Exercise of options and vested RSUs (in shares) | 1,137,751 | ||||
Exercise of options and vested RSUs | 5,211 | 5,211 | |||
Other comprehensive income (loss), net of tax benefit of $0 | (258) | (258) | |||
Net income (loss) | (53,061) | (53,061) | |||
Ending balance (in shares) at Mar. 31, 2023 | 106,187,162 | ||||
Ending balance at Mar. 31, 2023 | $ 432,146 | $ 1,266,358 | $ (2,691) | $ (831,521) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Other comprehensive income (loss), tax benefit | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Cash flows from operating activities: | |||
Net income (loss) | $ (53,061) | $ (4,647) | $ (92,534) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,722 | 2,610 | 10,624 |
Accrued Interest | (1,120) | (221) | (2,216) |
Asset write-downs and impairment of field equipment | 126 | 135 | 955 |
Share-based compensation | 39,084 | 25,045 | 106,955 |
Foreign currency remeasurement loss (gain) | (127) | 249 | (3,256) |
Decrease (increase) in accounts receivables | 14,511 | (7,461) | 2,547 |
Amortization of discount (premium) | (4,056) | 684 | (1,536) |
Decrease (increase) in inventories | (2,718) | (4,804) | (4,342) |
Decrease (increase) in other long-term assets | 1,534 | 1,863 | 7,107 |
Increase (decrease) in accounts payables and accrued expenses | (10,464) | (14,809) | 14,257 |
Increase (decrease) in other long-term liabilities | (3,158) | (2,331) | (7,773) |
Net cash provided by (used in) operating activities | (16,727) | (3,687) | 30,788 |
Cash flows from investing activities: | |||
Purchase of property, equipment and field equipment | (6,088) | (5,093) | (21,358) |
Proceeds from maturity of short-term investments | 326,287 | 279,000 | 1,179,289 |
Purchase of short-term investments | (237,912) | (291,317) | (1,297,888) |
Net cash provided by (used in) investing activities | 82,287 | (17,410) | (139,957) |
Cash flows from financing activities: | |||
Proceeds from issuance of shares, net | 0 | 0 | 5,224 |
Repayment of long-term debt | (7) | (7) | (28) |
Exercise of options | 5,211 | 3,148 | 10,295 |
Net cash provided by (used in) financing activities | 5,204 | 3,141 | 15,491 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 41 | (25) | (97) |
Increase (decrease) in cash, cash equivalents and restricted cash | 70,805 | (17,981) | (93,775) |
Cash, cash equivalents and restricted cash at the beginning of the period | 115,834 | 209,609 | 209,609 |
Cash, cash equivalents and restricted cash at the end of the period | 186,639 | 191,628 | 115,834 |
Cash paid during the period for: | |||
Income taxes paid (refunded), net | 1,712 | 1,173 | 5,480 |
Interest paid | 1 | 1 | 41 |
Non-cash activities: | |||
Right-of-use assets obtained in exchange for lease liabilities | $ 3,451 | $ 3,580 | $ 12,117 |
ORGANIZATION AND BASIS OF PRESE
ORGANIZATION AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and basis of presentation | ORGANIZATION AND BASIS OF PRESENTATION Organization . NovoCure Limited (including its consolidated subsidiaries, the "Company") was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields ("TTFields") devices, including Optune and Optune Lua (collectively, our "Products"), for the treatment of solid tumor cancers. The Company currently markets Optune in the United States ("U.S."), Germany, Japan and certain other countries. The Company currently markets Optune Lua in the U.S. and European Union. The Company also has a License and Collaboration Agreement (the "Zai Agreement") with Zai Lab (Shanghai) Co., Ltd. ("Zai") to market Optune in China, Hong Kong, Macau and Taiwan ("Greater China"). Financial statement preparation . The accompanying unaudited consolidated financial statements include the accounts of the Company and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation for the periods presented. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2022 (the "2022 10-K") filed with the Securities and Exchange Commission on February 23, 2023. The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2022 10-K are applied consistently in these unaudited interim consolidated financial statements. |
CASH, CASH EQUIVALENTS AND SHOR
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS | 3 Months Ended |
Mar. 31, 2023 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Cash, cash equivalents and short-term investments | CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS Cash equivalents include items almost as liquid as cash, with maturity periods of three months or less when purchased, and short-term investments include items with maturity dates between three months and one year when purchased. As of March 31, 2023 and December 31, 2022, the Company’s cash and cash equivalents and short-term investments were composed of: March 31, 2023 Unaudited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 11,602 $ — $ — $ 11,602 $ 11,602 $ 11,602 $ — Money market funds Level 1 132,636 — — 132,636 132,636 132,636 — Certificate of deposits and term deposits Level 2 295,804 — — 295,804 295,804 2,000 293,804 HTM securities (1) U.S. Treasury bills Level 1 $ 166,659 $ 8 $ (272) 166,395 166,659 $ — $ 166,659 Government and governmental agencies Level 2 $ 26,512 $ 95 $ (9) 26,598 26,512 $ — $ 26,512 Corporate debt securities Level 2 $ 324,822 $ 1,570 $ (1,186) 325,206 324,822 $ 39,725 $ 285,097 $ 517,993 $ 1,673 $ (1,467) $ 518,199 $ 517,993 $ 39,725 $ 478,268 Total $ 958,035 $ 1,673 $ (1,467) $ 958,241 $ 958,035 $ 185,963 $ 772,072 December 31, 2022 Audited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 9,697 $ — $ — $ 9,697 $ 9,697 $ 9,697 $ — Money market funds Level 1 105,629 — — 105,629 105,629 105,629 — Certificate of deposits and term deposits Level 2 316,946 — — 316,946 316,946 — 316,946 HTM securities (1) U.S. Treasury bills Level 1 $ 188,030 $ 8 $ (540) 187,498 188,030 $ — $ 188,030 Government and governmental agencies Level 2 $ 44,357 $ 12 $ (12) 44,357 44,357 $ — $ 44,357 Corporate debt securities Level 2 $ 304,766 $ 1,066 $ (587) 305,245 304,766 $ — $ 304,766 $ 537,153 $ 1,086 $ (1,139) $ 537,100 $ 537,153 $ — $ 537,153 Total $ 969,425 $ 1,086 $ (1,139) $ 969,372 $ 969,425 $ 115,326 $ 854,099 (1) Changes in fair value of held-to-maturity ("HTM") securities are presented for disclosure purposes as required by ASC 320 and are recorded as finance expenses only if the unrealized loss is identified as a credit loss. In November 2022, the Company transferred all of its available-for-sale portfolio to HTM as part of the Company's investment strategy. Such transfers are made at fair value at the date of transfer. The net unrealized loss on these securities at the date of transfer was $911. These securities continue to be reported in accumulated comprehensive income (loss) and are amortized over the remaining lives of the securities as an adjustment to the yield. As of March 31, 2023 and December 31, 2022, the unamortized unrealized loss balances were $88 and $445, respectively, and are reported in accumulated other comprehensive income (loss). In accordance with ASC No. 820, the Company measures its money market funds at fair value. The fair value of the money market funds and HTM securities, which is presented for disclosure purposes, are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. As of March 31, 2023 and December 31, 2022, all investments mature in one year or less. Unrealized losses from debt securities are primarily attributable to changes in interest rates. The Company does not believe any remaining unrealized losses represent impairments based on the evaluation of available evidence. Debt securities with continuous unrealized losses for less than 12 months and their related fair values were as follows: March 31, 2023 December 31, 2022 Unaudited Audited Less than 12 months Less than 12 months Fair value Unrealized loss Fair value Unrealized loss U.S. Treasury bills 116,323 (272) 162,813 (540) Government and governmental agencies 1,597 (9) 38,477 (12) Corporate debt securities 224,483 (1,186) 162,085 (587) Total 342,403 (1,467) 363,375 (1,139) As of March 31, 2023, no continuous unrealized losses for 12 months or greater was identified. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of March 31, 2023 and December 31, 2022, the Company’s inventories were composed of: March 31, December 31, Unaudited Audited Raw materials $ 4,590 $ 4,314 Work in progress 9,797 9,321 Finished products 17,336 15,741 Total $ 31,723 $ 29,376 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingent liabilities | COMMITMENTS AND CONTINGENT LIABILITIES Operating Leases. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2044. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2026. Pledged deposits and bank guarantees. As of March 31, 2023 and December 31, 2022, the Company pledged bank deposits of $2,341 and $2,296, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Company’s lease and other contractual commitments of $2,700 and $2,459, respectively . Senior secured revolving credit facility. On November 6, 2020, the Company entered into a three-year $150,000 senior secured revolving credit facility ("2020 Credit Facility") with a syndicate of relationship banks. On February 17, 2023, the Company gave irrevocable notice to the administrative agent under the 2020 Credit Facility that the Company terminated all commitments, effective February 22, 2023. This effectively terminated the 2020 Credit Facility, as the Company's ability to borrow and the Company's obligations to comply with all covenants ended on such date. The liens and guaranties in favor of the lenders are released. There was no early termination fee payable and the Company had no outstanding balance borrowed under the 2020 Credit Facility. The commitments under the 2020 Credit Facility were guaranteed by certain of the Company's subsidiaries and secured by a first lien on the Company's and certain of its subsidiaries’ assets. Outstanding loans bore interest per annum at a sliding scale based on the our secured leverage ratio from 2.75% to 3.25% above the applicable interbank borrowing reference rate for the currency in which the loan is denominated. Additionally, the 2020 Credit Facility contained a fee for the unused revolving credit commitments at a sliding scale based on our secured leverage ratio from 0.35% to 0.45%. The 2020 Credit Facility contained financial covenants requiring maintenance of a minimum fixed charge coverage ratio and specifying a maximum senior secured net leverage ratio, as well as customary events of default which include a change of control, which are no longer applicable. |
CONVERTIBLE NOTE
CONVERTIBLE NOTE | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTE | CONVERTIBLE NOTE On November 5, 2020, the Company issued $575,000 aggregate principal amount of 0% Convertible Senior Notes due 2025 (the “Notes”). The Notes mature on November 1, 2025, unless earlier repurchased, redeemed or converted as set forth in the Notes. As of March 31, 2023, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not convertible as of March 31, 2023 and are classified as long-term liability. The net carrying amount of the liability of the Notes as of March 31, 2023 and December 31, 2022 are as follows: March 31, December 31, Unaudited Audited Liability component, net: Principal amount $ 575,000 $ 575,000 Unamortized issuance costs (8,676) (9,491) Net carrying amount of liability component (1) $ 566,324 $ 565,509 (1) An effective interest rate determines the fair value of the Notes, therefore they are categorized as Level 3 in accordance with ASC 820, "Fair Value Measurements and Disclosures." The estimated fair value of the net carrying amount of liability component of the Notes as of March 31, 2023 and December 31, 2022 were $468,271 and $455,091, respectively. Finance expense related to the Notes was as follows: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Amortization of debt issuance costs 815 810 3,293 Total finance expense recognized $ 815 $ 810 $ 3,293 |
SHARE OPTION PLANS AND ESPP
SHARE OPTION PLANS AND ESPP | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Share option plans and ESPP | SHARE OPTION PLANS AND ESPPIn September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted share units (“RSUs”), performance-based share units (“PSUs”), long-term cash awards and other share-based awards. Options granted under the 2015 Plan generally have a two-year or four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are canceled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan generally vest over a three year period. PSUs granted under the 2015 Plan generally vest between a three A summary of the status of the Company’s option plans as of March 31, 2023 and changes during the period then ended is presented below: Three months ended March 31, 2023 Unaudited Number Weighted Outstanding at beginning of year 8,786,364 $ 37.27 Granted 627,764 76.97 Exercised (429,752) 12.07 Forfeited and canceled (63,147) 96.06 Outstanding as of March 31, 2023 8,921,229 $ 40.86 Exercisable options 7,204,441 $ 30.28 For the three months ended March 31, 2023, options to purchase 429,752 ordinary shares were exercised, resulting in the issuance of 429,752 ordinary shares. A summary of the status of the Company’s RSUs and PSUs as of March 31, 2023 and changes during the period then ended is presented below. Three months ended March 31, 2023 Unaudited Number Weighted Unvested at beginning of year 5,377,459 $ 66.87 Granted 1,133,373 76.97 Vested (707,999) 85.08 Forfeited and cancelled (78,002) 99.08 Unvested as of March 31, 2023 (1) 5,724,831 66.21 (1) Includes PSUs that have a mix of service, market and other milestone performance vesting conditions which are vested upon achievements of performance milestones which are not probable, as of March 31, 2023, in accordance with ASC 718 as follows: March 31, 2023 Number of Fair value at grant date per PSU Total fair value at grant date 2,703,852 $ 48.16 $ 130,218 189,029 76.97 14,550 124,701 80.59 10,050 7,605 87.66 667 10,532 94.94 1,000 161,912 $ 114.26 18,500 3,197,631 $ 174,985 These PSUs will be expensed over the performance period when the vesting conditions become probable in accordance with ASC 718. In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP are construed in a manner consistent with the requirements of such section. As of March 31, 2023, 4,868,733 ordinary shares were available to be purchased by eligible employees under the ESPP. The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model. We assessed fair value using the following underlying assumptions: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Stock Option Plans Expected term (years) 5.75-6.00 5.33-5.83 5.33-5.83 Expected volatility 63%-64% 60%-62% 60%-62% Risk-free interest rate 4.08%-4.10% 1.58%-1.61% 1.58%-4.23% Dividend yield 0.00 % 0.00 % 0.00 % ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 56 % 51 % 51%-77% Risk-free interest rate 4.76 % 0.19 % 0.19%-2.52% Dividend yield 0.00 % 0.00 % 0.00 % The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2023 and 2022 and the year ended December 31, 2022 was: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Cost of revenues $ 2,006 $ 952 $ 4,690 Research, development and clinical studies 11,779 6,801 30,790 Sales and marketing 11,644 6,655 28,826 General and administrative 13,655 10,637 42,649 Total share-based compensation expense $ 39,084 $ 25,045 $ 106,955 |
Basic and diluted net income (l
Basic and diluted net income (loss) per ordinary share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and diluted net income (loss) per ordinary share | Basic and diluted net income (loss) per ordinary share Basic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus potential dilutive shares (deriving from options, RSUs, PSUs, convertible notes and the ESPP) considered outstanding during the period, in accordance with ASC 260-10, as determined under the if-converted method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share $ (53,061) $ (4,647) $ (92,534) Weighted average number of ordinary shares used in computing basic net income (loss) per share 105,667,072 104,186,120 104,660,476 Weighted average number of ordinary shares used in computing diluted net income (loss) per share 105,667,072 104,186,120 104,660,476 Weighted anti-dilutive shares outstanding which were not included in the diluted calculation 7,543,657 7,874,118 7,272,606 Basic net income (loss) per ordinary share $ (0.50) $ (0.04) $ (0.88) Diluted net income (loss) per ordinary share $ (0.50) $ (0.04) $ (0.88) |
SUPPLEMENTAL INFORMATION
SUPPLEMENTAL INFORMATION | 3 Months Ended |
Mar. 31, 2023 | |
Geographic Areas, Long-Lived Assets [Abstract] | |
SUPPLEMENTAL INFORMATION | SUPPLEMENTAL INFORMATION The Company operates in a single reportable segment. The following table presents long-lived assets by location: March 31, December 31, Unaudited Audited United States $ 32,859 $ 30,012 Israel 7,335 7,180 Switzerland 5,049 5,084 Japan 1,077 1,063 Germany 1,086 762 Others 1,264 1,261 Total long lived assets $ 48,670 $ 45,362 The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited United States $ 85,228 $ 97,416 $ 406,894 Germany 15,120 19,238 46,120 Japan 8,669 8,750 32,781 Greater China (1) 5,315 4,368 21,332 Others 7,850 7,775 30,713 Total net revenues $ 122,182 $ 137,547 $ 537,840 (1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2022 10-K. |
CASH, CASH EQUIVALENTS AND SH_2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Cash, Cash Equivalents, and Short-Term Investments [Abstract] | |
Schedule of Cash and Cash Equivalents | the Company’s cash and cash equivalents and short-term investments were composed of: March 31, 2023 Unaudited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 11,602 $ — $ — $ 11,602 $ 11,602 $ 11,602 $ — Money market funds Level 1 132,636 — — 132,636 132,636 132,636 — Certificate of deposits and term deposits Level 2 295,804 — — 295,804 295,804 2,000 293,804 HTM securities (1) U.S. Treasury bills Level 1 $ 166,659 $ 8 $ (272) 166,395 166,659 $ — $ 166,659 Government and governmental agencies Level 2 $ 26,512 $ 95 $ (9) 26,598 26,512 $ — $ 26,512 Corporate debt securities Level 2 $ 324,822 $ 1,570 $ (1,186) 325,206 324,822 $ 39,725 $ 285,097 $ 517,993 $ 1,673 $ (1,467) $ 518,199 $ 517,993 $ 39,725 $ 478,268 Total $ 958,035 $ 1,673 $ (1,467) $ 958,241 $ 958,035 $ 185,963 $ 772,072 December 31, 2022 Audited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 9,697 $ — $ — $ 9,697 $ 9,697 $ 9,697 $ — Money market funds Level 1 105,629 — — 105,629 105,629 105,629 — Certificate of deposits and term deposits Level 2 316,946 — — 316,946 316,946 — 316,946 HTM securities (1) U.S. Treasury bills Level 1 $ 188,030 $ 8 $ (540) 187,498 188,030 $ — $ 188,030 Government and governmental agencies Level 2 $ 44,357 $ 12 $ (12) 44,357 44,357 $ — $ 44,357 Corporate debt securities Level 2 $ 304,766 $ 1,066 $ (587) 305,245 304,766 $ — $ 304,766 $ 537,153 $ 1,086 $ (1,139) $ 537,100 $ 537,153 $ — $ 537,153 Total $ 969,425 $ 1,086 $ (1,139) $ 969,372 $ 969,425 $ 115,326 $ 854,099 |
Schedule of Available-for-Sale Securities Reconciliation | the Company’s cash and cash equivalents and short-term investments were composed of: March 31, 2023 Unaudited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 11,602 $ — $ — $ 11,602 $ 11,602 $ 11,602 $ — Money market funds Level 1 132,636 — — 132,636 132,636 132,636 — Certificate of deposits and term deposits Level 2 295,804 — — 295,804 295,804 2,000 293,804 HTM securities (1) U.S. Treasury bills Level 1 $ 166,659 $ 8 $ (272) 166,395 166,659 $ — $ 166,659 Government and governmental agencies Level 2 $ 26,512 $ 95 $ (9) 26,598 26,512 $ — $ 26,512 Corporate debt securities Level 2 $ 324,822 $ 1,570 $ (1,186) 325,206 324,822 $ 39,725 $ 285,097 $ 517,993 $ 1,673 $ (1,467) $ 518,199 $ 517,993 $ 39,725 $ 478,268 Total $ 958,035 $ 1,673 $ (1,467) $ 958,241 $ 958,035 $ 185,963 $ 772,072 December 31, 2022 Audited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 9,697 $ — $ — $ 9,697 $ 9,697 $ 9,697 $ — Money market funds Level 1 105,629 — — 105,629 105,629 105,629 — Certificate of deposits and term deposits Level 2 316,946 — — 316,946 316,946 — 316,946 HTM securities (1) U.S. Treasury bills Level 1 $ 188,030 $ 8 $ (540) 187,498 188,030 $ — $ 188,030 Government and governmental agencies Level 2 $ 44,357 $ 12 $ (12) 44,357 44,357 $ — $ 44,357 Corporate debt securities Level 2 $ 304,766 $ 1,066 $ (587) 305,245 304,766 $ — $ 304,766 $ 537,153 $ 1,086 $ (1,139) $ 537,100 $ 537,153 $ — $ 537,153 Total $ 969,425 $ 1,086 $ (1,139) $ 969,372 $ 969,425 $ 115,326 $ 854,099 |
Schedule of Amortized Cost and Recorded Basis of T-bills in Short-Term Investments | the Company’s cash and cash equivalents and short-term investments were composed of: March 31, 2023 Unaudited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 11,602 $ — $ — $ 11,602 $ 11,602 $ 11,602 $ — Money market funds Level 1 132,636 — — 132,636 132,636 132,636 — Certificate of deposits and term deposits Level 2 295,804 — — 295,804 295,804 2,000 293,804 HTM securities (1) U.S. Treasury bills Level 1 $ 166,659 $ 8 $ (272) 166,395 166,659 $ — $ 166,659 Government and governmental agencies Level 2 $ 26,512 $ 95 $ (9) 26,598 26,512 $ — $ 26,512 Corporate debt securities Level 2 $ 324,822 $ 1,570 $ (1,186) 325,206 324,822 $ 39,725 $ 285,097 $ 517,993 $ 1,673 $ (1,467) $ 518,199 $ 517,993 $ 39,725 $ 478,268 Total $ 958,035 $ 1,673 $ (1,467) $ 958,241 $ 958,035 $ 185,963 $ 772,072 December 31, 2022 Audited Fair value level Adjusted cost basis Unrealized gains Unrealized losses Fair market value Recorded basis Cash and cash equivalents Short-term investments Cash $ 9,697 $ — $ — $ 9,697 $ 9,697 $ 9,697 $ — Money market funds Level 1 105,629 — — 105,629 105,629 105,629 — Certificate of deposits and term deposits Level 2 316,946 — — 316,946 316,946 — 316,946 HTM securities (1) U.S. Treasury bills Level 1 $ 188,030 $ 8 $ (540) 187,498 188,030 $ — $ 188,030 Government and governmental agencies Level 2 $ 44,357 $ 12 $ (12) 44,357 44,357 $ — $ 44,357 Corporate debt securities Level 2 $ 304,766 $ 1,066 $ (587) 305,245 304,766 $ — $ 304,766 $ 537,153 $ 1,086 $ (1,139) $ 537,100 $ 537,153 $ — $ 537,153 Total $ 969,425 $ 1,086 $ (1,139) $ 969,372 $ 969,425 $ 115,326 $ 854,099 |
Schedule of Debt Securities, Available-for-Sale | Debt securities with continuous unrealized losses for less than 12 months and their related fair values were as follows: March 31, 2023 December 31, 2022 Unaudited Audited Less than 12 months Less than 12 months Fair value Unrealized loss Fair value Unrealized loss U.S. Treasury bills 116,323 (272) 162,813 (540) Government and governmental agencies 1,597 (9) 38,477 (12) Corporate debt securities 224,483 (1,186) 162,085 (587) Total 342,403 (1,467) 363,375 (1,139) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | As of March 31, 2023 and December 31, 2022, the Company’s inventories were composed of: March 31, December 31, Unaudited Audited Raw materials $ 4,590 $ 4,314 Work in progress 9,797 9,321 Finished products 17,336 15,741 Total $ 31,723 $ 29,376 |
CONVERTIBLE NOTE (Tables)
CONVERTIBLE NOTE (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of the Convertible Notes | The net carrying amount of the liability of the Notes as of March 31, 2023 and December 31, 2022 are as follows: March 31, December 31, Unaudited Audited Liability component, net: Principal amount $ 575,000 $ 575,000 Unamortized issuance costs (8,676) (9,491) Net carrying amount of liability component (1) $ 566,324 $ 565,509 (1) An effective interest rate determines the fair value of the Notes, therefore they are categorized as Level 3 in accordance with ASC 820, "Fair Value Measurements and Disclosures." The estimated fair value of the net carrying amount of liability component of the Notes as of March 31, 2023 and December 31, 2022 were $468,271 and $455,091, respectively. Finance expense related to the Notes was as follows: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Amortization of debt issuance costs 815 810 3,293 Total finance expense recognized $ 815 $ 810 $ 3,293 |
SHARE OPTION PLANS AND ESPP (Ta
SHARE OPTION PLANS AND ESPP (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement, Recognized Amount [Abstract] | |
Schedule of Stock Option Plans | A summary of the status of the Company’s option plans as of March 31, 2023 and changes during the period then ended is presented below: Three months ended March 31, 2023 Unaudited Number Weighted Outstanding at beginning of year 8,786,364 $ 37.27 Granted 627,764 76.97 Exercised (429,752) 12.07 Forfeited and canceled (63,147) 96.06 Outstanding as of March 31, 2023 8,921,229 $ 40.86 Exercisable options 7,204,441 $ 30.28 |
Schedule of RSUs and PSUs | A summary of the status of the Company’s RSUs and PSUs as of March 31, 2023 and changes during the period then ended is presented below. Three months ended March 31, 2023 Unaudited Number Weighted Unvested at beginning of year 5,377,459 $ 66.87 Granted 1,133,373 76.97 Vested (707,999) 85.08 Forfeited and cancelled (78,002) 99.08 Unvested as of March 31, 2023 (1) 5,724,831 66.21 (1) Includes PSUs that have a mix of service, market and other milestone performance vesting conditions which are vested upon achievements of performance milestones which are not probable, as of March 31, 2023, in accordance with ASC 718 as follows: March 31, 2023 Number of Fair value at grant date per PSU Total fair value at grant date 2,703,852 $ 48.16 $ 130,218 189,029 76.97 14,550 124,701 80.59 10,050 7,605 87.66 667 10,532 94.94 1,000 161,912 $ 114.26 18,500 3,197,631 $ 174,985 |
Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model | The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model. We assessed fair value using the following underlying assumptions: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Stock Option Plans Expected term (years) 5.75-6.00 5.33-5.83 5.33-5.83 Expected volatility 63%-64% 60%-62% 60%-62% Risk-free interest rate 4.08%-4.10% 1.58%-1.61% 1.58%-4.23% Dividend yield 0.00 % 0.00 % 0.00 % ESPP Expected term (years) 0.50 0.50 0.50 Expected volatility 56 % 51 % 51%-77% Risk-free interest rate 4.76 % 0.19 % 0.19%-2.52% Dividend yield 0.00 % 0.00 % 0.00 % |
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards | The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three months ended March 31, 2023 and 2022 and the year ended December 31, 2022 was: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Cost of revenues $ 2,006 $ 952 $ 4,690 Research, development and clinical studies 11,779 6,801 30,790 Sales and marketing 11,644 6,655 28,826 General and administrative 13,655 10,637 42,649 Total share-based compensation expense $ 39,084 $ 25,045 $ 106,955 |
Basic and diluted net income _2
Basic and diluted net income (loss) per ordinary share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share | The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share $ (53,061) $ (4,647) $ (92,534) Weighted average number of ordinary shares used in computing basic net income (loss) per share 105,667,072 104,186,120 104,660,476 Weighted average number of ordinary shares used in computing diluted net income (loss) per share 105,667,072 104,186,120 104,660,476 Weighted anti-dilutive shares outstanding which were not included in the diluted calculation 7,543,657 7,874,118 7,272,606 Basic net income (loss) per ordinary share $ (0.50) $ (0.04) $ (0.88) Diluted net income (loss) per ordinary share $ (0.50) $ (0.04) $ (0.88) |
SUPPLEMENTAL INFORMATION (Table
SUPPLEMENTAL INFORMATION (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Geographic Areas, Long-Lived Assets [Abstract] | |
Schedule of Long-Lived Assets by Location | The following table presents long-lived assets by location: March 31, December 31, Unaudited Audited United States $ 32,859 $ 30,012 Israel 7,335 7,180 Switzerland 5,049 5,084 Japan 1,077 1,063 Germany 1,086 762 Others 1,264 1,261 Total long lived assets $ 48,670 $ 45,362 |
Schedule of Revenues by Geographic Region | The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows: Three months ended March 31, Year ended December 31, 2023 2022 Unaudited Audited United States $ 85,228 $ 97,416 $ 406,894 Germany 15,120 19,238 46,120 Japan 8,669 8,750 32,781 Greater China (1) 5,315 4,368 21,332 Others 7,850 7,775 30,713 Total net revenues $ 122,182 $ 137,547 $ 537,840 (1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2022 10-K. |
CASH, CASH EQUIVALENTS AND SH_3
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Schedule of Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | $ 185,963 | $ 115,326 |
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 517,993 | 537,153 |
Unrealized gains | 1,673 | 1,086 |
Unrealized losses | (1,467) | (1,139) |
Fair market value | 518,199 | 537,100 |
Debt securities, available-for-sale and held-to-maturity, adjusted cost basis | 958,035 | 969,425 |
Debt securities, available-for-sale and held-to-maturity, unrealized gains | 1,673 | 1,086 |
Debt securities, available-for-sale and held-to-maturity, unrealized losses | (1,467) | (1,139) |
Debt securities, available-for-sale and held-to-maturity, fair value | 958,241 | 969,372 |
Debt securities, available-for-sale and held-to-maturity | 958,035 | 969,425 |
Level 1 | U.S. Treasury bills | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 166,659 | 188,030 |
Unrealized gains | 8 | 8 |
Unrealized losses | (272) | (540) |
Fair market value | 166,395 | 187,498 |
Level 2 | Government and governmental agencies | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 26,512 | 44,357 |
Unrealized gains | 95 | 12 |
Unrealized losses | (9) | (12) |
Fair market value | 26,598 | 44,357 |
Level 2 | Corporate debt securities | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 324,822 | 304,766 |
Unrealized gains | 1,570 | 1,066 |
Unrealized losses | (1,186) | (587) |
Fair market value | 325,206 | 305,245 |
Cash and cash equivalents | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 39,725 | 0 |
Debt securities, available-for-sale and held-to-maturity | 185,963 | 115,326 |
Cash and cash equivalents | Level 2 | Corporate debt securities | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 39,725 | 0 |
Short-term investments | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 478,268 | 537,153 |
Debt securities, available-for-sale and held-to-maturity | 772,072 | 854,099 |
Short-term investments | Level 1 | U.S. Treasury bills | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 166,659 | 188,030 |
Short-term investments | Level 2 | Government and governmental agencies | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 26,512 | 44,357 |
Short-term investments | Level 2 | Corporate debt securities | ||
HTM Securities | ||
Debt securities, held-to-maturity, adjusted cost basis and recorded basis | 285,097 | 304,766 |
Cash | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents, fair value | 11,602 | 9,697 |
Cash | Cash and cash equivalents | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | 11,602 | 9,697 |
Money market funds | Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents, fair value | 132,636 | 105,629 |
Money market funds | Cash and cash equivalents | Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | 132,636 | 105,629 |
Certificate of deposits and term deposits | Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents, fair value | 295,804 | 316,946 |
Certificate of deposits and term deposits | Cash and cash equivalents | Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | 2,000 | 0 |
Certificate of deposits and term deposits | Short-term investments | Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Cash and cash equivalents | $ 293,804 | $ 316,946 |
CASH, CASH EQUIVALENTS AND SH_4
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Additional Information (Details) - USD ($) $ in Thousands | 1 Months Ended | ||||
Nov. 30, 2022 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Cash and Cash Equivalents [Line Items] | |||||
Net unrealized loss on securities | $ 911 | ||||
Cumulative impact to its accumulated deficit | $ 432,146 | $ 441,170 | $ 435,881 | $ 410,494 | |
AOCI, accumulated gain (loss), debt securities, available-for-sale, parent | |||||
Cash and Cash Equivalents [Line Items] | |||||
Cumulative impact to its accumulated deficit | $ 88 | $ 445 |
CASH, CASH EQUIVALENTS AND SH_5
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Schedule of Debt Securities with Continuous Unrealized Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | ||
Fair value | $ 342,403 | $ 363,375 |
Unrealized loss | (1,467) | (1,139) |
U.S. Treasury bills | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | ||
Fair value | 116,323 | 162,813 |
Unrealized loss | (272) | (540) |
Government and governmental agencies | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | ||
Fair value | 1,597 | 38,477 |
Unrealized loss | (9) | (12) |
Corporate debt securities | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | ||
Fair value | 224,483 | 162,085 |
Unrealized loss | $ (1,186) | $ (587) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 4,590 | $ 4,314 |
Work in progress | 9,797 | 9,321 |
Finished products | 17,336 | 15,741 |
Total | $ 31,723 | $ 29,376 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) | Mar. 31, 2023 | Nov. 06, 2020 | Dec. 31, 2022 |
Line of Credit Facility [Line Items] | |||
Pledged bank deposits | $ 2,341,000 | $ 2,296,000 | |
Operating lease and other contractual commitments | 2,700,000 | $ 2,459,000 | |
Revolving Credit Facility | |||
Line of Credit Facility [Line Items] | |||
Contractual term | 3 years | ||
Maximum borrowing capacity | $ 150,000,000 | ||
Early termination fee paid | 0 | ||
Long-term debt | $ 0 | ||
Revolving Credit Facility | Minimum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Fee for unused revolving credit commitments, percentage | 0.35% | ||
Revolving Credit Facility | Minimum | Line of Credit | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 2.75% | ||
Revolving Credit Facility | Maximum | Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Fee for unused revolving credit commitments, percentage | 0.45% | ||
Revolving Credit Facility | Maximum | Line of Credit | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Basis spread on variable rate | 3.25% |
CONVERTIBLE NOTE - Additional I
CONVERTIBLE NOTE - Additional Information (Details) - Convertible Debt - the “Notes” $ in Thousands | Nov. 05, 2020 USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 575,000 |
Stated interest rate | 0% |
CONVERTIBLE NOTE - Liability an
CONVERTIBLE NOTE - Liability and Equity Components of the Convertible Notes (Details) - Convertible Debt - the “Notes” - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Principal amount | $ 575,000 | $ 575,000 |
Unamortized issuance costs | (8,676) | (9,491) |
Net carrying amount of liability component | 566,324 | 565,509 |
Estimated fair value | $ 468,271 | $ 455,091 |
CONVERTIBLE NOTE - Finance Expe
CONVERTIBLE NOTE - Finance Expense Related to the Convertible Notes (Details) - the “Notes” - Convertible Debt - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Amortization of debt issuance costs | $ 815 | $ 810 | $ 3,293 |
Total finance expense recognized | $ 815 | $ 810 | $ 3,293 |
SHARE OPTION PLANS AND ESPP - A
SHARE OPTION PLANS AND ESPP - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 shares | |
Share Capital [Line Items] | |
Options exercised (in shares) | 429,752 |
ESPP | |
Share Capital [Line Items] | |
Ordinary shares available for grants (in shares) | 4,868,733 |
Shares issued under plan (in shares) | 429,752 |
2015 Plan | |
Share Capital [Line Items] | |
Ordinary shares available for grants (in shares) | 19,010,778 |
2015 Plan | Options | |
Share Capital [Line Items] | |
Stock awards granted, expiration period (years) | 10 years |
2015 Plan | Options | Minimum | |
Share Capital [Line Items] | |
Stock awards granted, vesting period (years) | 2 years |
2015 Plan | Options | Maximum | |
Share Capital [Line Items] | |
Stock awards granted, vesting period (years) | 4 years |
2015 Plan | Restricted share units | |
Share Capital [Line Items] | |
Stock awards granted, vesting period (years) | 3 years |
2015 Plan | PSUs | Minimum | |
Share Capital [Line Items] | |
Stock awards granted, vesting period (years) | 3 years |
2015 Plan | PSUs | Maximum | |
Share Capital [Line Items] | |
Stock awards granted, vesting period (years) | 6 years |
SHARE OPTION PLANS AND ESPP - S
SHARE OPTION PLANS AND ESPP - Schedule of Stock Option Plan (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Number of options | |
Number of options, beginning outstanding (in shares) | shares | 8,786,364 |
Number of options, granted (in shares) | shares | 627,764 |
Number of options, exercised (in shares) | shares | (429,752) |
Number of options, forfeited and canceled (in shares) | shares | (63,147) |
Number of options, ending outstanding (in shares) | shares | 8,921,229 |
Number of options, exercisable options (in shares) | shares | 7,204,441 |
Weighted average exercise price | |
Weighted average exercise price, beginning outstanding (in usd per share) | $ / shares | $ 37.27 |
Weighted average exercise price, granted (in usd per share) | $ / shares | 76.97 |
Weighted average exercise price, exercised (in usd per share) | $ / shares | 12.07 |
Weighted average exercise price, forfeited and canceled (in usd per share) | $ / shares | 96.06 |
Weighted average exercise price, ending outstanding (in usd per share) | $ / shares | 40.86 |
Weighted average exercise price, exercisable options (in usd per share) | $ / shares | $ 30.28 |
SHARE OPTION PLANS AND ESPP -_2
SHARE OPTION PLANS AND ESPP - Schedule of RSUs and PSUs (Details) $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
RSUs/PSUs | |
Number of RSU/PSUs | |
Unvested at beginning of year (in shares) | 5,377,459 |
Granted (in shares) | 1,133,373 |
Vested (in shares) | (707,999) |
Forfeited and cancelled (in shares) | (78,002) |
Unvested at ending of year (in shares) | 5,724,831 |
Weighted average grant date fair value | |
Unvested at beginning of year (in usd per share) | $ / shares | $ 66.87 |
Granted (in usd per share) | $ / shares | 76.97 |
Vested (in usd per share) | $ / shares | 85.08 |
Forfeited and cancelled (in usd per share) | $ / shares | 99.08 |
Unvested at ending of year (in usd per share) | $ / shares | $ 66.21 |
PSUs | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 3,197,631 |
Total fair value at grant date | $ | $ 174,985 |
PSUs | Award One | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 2,703,852 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 48.16 |
Total fair value at grant date | $ | $ 130,218 |
PSUs | Award Two | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 189,029 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 76.97 |
Total fair value at grant date | $ | $ 14,550 |
PSUs | Award Three | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 124,701 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 80.59 |
Total fair value at grant date | $ | $ 10,050 |
PSUs | Award Four | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 7,605 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 87.66 |
Total fair value at grant date | $ | $ 667 |
PSUs | Award Five | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 10,532 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 94.94 |
Total fair value at grant date | $ | $ 1,000 |
PSUs | Award Six | |
Weighted average grant date fair value | |
Number of PSUs (in shares) | 161,912 |
Fair value at grant date per PSU (in usd per share) | $ / shares | $ 114.26 |
Total fair value at grant date | $ | $ 18,500 |
SHARE OPTION PLANS AND ESPP -_3
SHARE OPTION PLANS AND ESPP - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 6 months |
Expected volatility, minimum | 56% | 51% | 51% |
Expected volatility, maximum | 77% | ||
Risk-free interest rate, minimum | 4.76% | 0.19% | 0.19% |
Risk-free interest rate, maximum | 2.52% | ||
Dividend yield | 0% | 0% | 0% |
Stock Option Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 63% | 60% | 60% |
Expected volatility, maximum | 64% | 62% | 62% |
Risk-free interest rate, minimum | 4.08% | 1.58% | 1.58% |
Risk-free interest rate, maximum | 4.10% | 1.61% | 4.23% |
Dividend yield | 0% | 0% | 0% |
Stock Option Plans | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 5 years 9 months | 5 years 3 months 29 days | 5 years 3 months 29 days |
Stock Option Plans | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years | 5 years 9 months 29 days | 5 years 9 months 29 days |
SHARE OPTION PLANS AND ESPP -_4
SHARE OPTION PLANS AND ESPP - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 39,084 | $ 25,045 | $ 106,955 |
Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 2,006 | 952 | 4,690 |
Research, development and clinical studies | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 11,779 | 6,801 | 30,790 |
Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 11,644 | 6,655 | 28,826 |
General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 13,655 | $ 10,637 | $ 42,649 |
Basic and diluted net income _3
Basic and diluted net income (loss) per ordinary share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |||
Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share | $ (53,061) | $ (4,647) | $ (92,534) |
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) | 105,667,072 | 104,186,120 | 104,660,476 |
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share: | |||
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) | 105,667,072 | 104,186,120 | 104,660,476 |
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation (in shares) | 7,543,657 | 7,874,118 | 7,272,606 |
Basic net income (loss) per ordinary share (in usd per share) | $ (0.50) | $ (0.04) | $ (0.88) |
Diluted net income (loss) per ordinary share (in usd per share) | $ (0.50) | $ (0.04) | $ (0.88) |
SUPPLEMENTAL INFORMATION - Sche
SUPPLEMENTAL INFORMATION - Schedule of Long-Lived Assets by Location (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | $ 48,670 | $ 45,362 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | 32,859 | 30,012 |
Israel | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | 7,335 | 7,180 |
Switzerland | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | 5,049 | 5,084 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | 1,077 | 1,063 |
Germany | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | 1,086 | 762 |
Others | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-term assets | $ 1,264 | $ 1,261 |
SUPPLEMENTAL INFORMATION - Sc_2
SUPPLEMENTAL INFORMATION - Schedule of Revenues by Geographic Region (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 122,182 | $ 137,547 | $ 537,840 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 85,228 | 97,416 | 406,894 |
Germany | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 15,120 | 19,238 | 46,120 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 8,669 | 8,750 | 32,781 |
Greater China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | 5,315 | 4,368 | 21,332 |
Others | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenues | $ 7,850 | $ 7,775 | $ 30,713 |