Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Jan. 31, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Entity Registrant Name | JFrog Ltd. | ||
Entity Central Index Key | 0001800667 | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | false | ||
Entity Public Float | $ 2.3 | ||
Entity File Number | 001-39492 | ||
Entity Tax Identification Number | 98-0680649 | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | L3 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Address, Address Line One | 270 E. Caribbean Drive | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94089 | ||
City Area Code | 408 | ||
Local Phone Number | 329-1540 | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Ordinary Shares, NIS 0.01 par value | ||
Trading Symbol | FROG | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 97,384,872 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant's definitive Proxy Statement relating to the 2022 Annual Meeting of Shareholders are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2021. | ||
Auditor Name | KOST FORER GABBAY & KASIERER | ||
Auditor Location | Tel-Aviv, Israel | ||
Auditor Firm ID | 1281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 68,284 | $ 164,461 |
Short-term investments | 352,844 | 433,595 |
Accounts receivable, net | 50,483 | 37,048 |
Deferred contract acquisition costs | 5,271 | 3,247 |
Prepaid expenses and other current assets | 22,140 | 14,210 |
Total current assets | 499,022 | 652,561 |
Property and equipment, net | 6,689 | 4,963 |
Deferred contract acquisition costs, noncurrent | 9,120 | 4,949 |
Operating lease right-of-use assets | 25,999 | 0 |
Intangible assets, net | 47,980 | 4,047 |
Goodwill | 247,776 | 17,320 |
Other assets, noncurrent | 15,942 | 5,391 |
Total assets | 852,528 | 689,231 |
Current liabilities: | ||
Accounts payable | 10,868 | 9,911 |
Accrued expenses and other current liabilities | 27,954 | 21,039 |
Operating lease liabilities | 7,293 | 0 |
Deferred revenue | 129,149 | 91,750 |
Total current liabilities | 175,264 | 122,700 |
Deferred revenue, noncurrent | 17,957 | 11,087 |
Operating lease liabilities, noncurrent | 20,014 | 0 |
Other liabilities, noncurrent | 712 | 1,550 |
Total liabilities | 213,947 | 135,337 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Preferred shares, NIS 0.01 par value per share; 50,000,000 shares authorized; 0 issued and outstanding as of December 31, 2021 and December 31, 2020 | 0 | 0 |
Ordinary shares, NIS 0.01 par value per share, 500,000,000 shares authorized; and 97,312,040 and 92,112,447 shares issued and outstanding as of December 31, 2021 and December 31, 2020, respectively | 272 | 257 |
Additional paid-in capital | 776,690 | 628,054 |
Accumulated other comprehensive income | 611 | 372 |
Accumulated deficit | (138,992) | (74,789) |
Total shareholders' equity (deficit) | 638,581 | 553,894 |
Total liabilities, convertible preferred shares and shareholders' equity (deficit) | $ 852,528 | $ 689,231 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Preferred stock par value | ₪ 0.01 | ₪ 0.01 |
Preferred stock authorized | 50,000,000 | 50,000,000 |
Preferred stock issued | 0 | 0 |
Preferred stock Outstanding | 0 | 0 |
Common stock par value | ₪ 0.01 | ₪ 0.01 |
Common stock Authorized | 500,000,000 | 500,000,000 |
Common stock issued | 97,312,040 | 92,112,447 |
Common stock Outstanding | 97,312,040 | 92,112,447 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue: | |||
Total subscription revenue | $ 206,683 | $ 150,827 | $ 104,716 |
Cost of revenue: | |||
Total cost of revenue—subscription | 41,823 | 28,451 | 20,035 |
Gross profit | 164,860 | 122,376 | 84,681 |
Operating expenses: | |||
Research and development | 79,604 | 41,113 | 29,730 |
Sales and marketing | 96,962 | 60,936 | 44,088 |
General and administrative | 56,663 | 34,519 | 17,800 |
Total operating expenses | 233,229 | 136,568 | 91,618 |
Operating loss | (68,369) | (14,192) | (6,937) |
Interest and other income, net | 744 | 2,045 | 3,171 |
Loss before income taxes | (67,625) | (12,147) | (3,766) |
Income tax expense (benefit) | (3,422) | (2,742) | 1,628 |
Net loss | $ (64,203) | $ (9,405) | $ (5,394) |
Net loss per share attributable to ordinary shareholders, basic and diluted | $ (0.68) | $ (0.20) | $ (0.20) |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted | 94,783,082 | 46,488,225 | 27,130,209 |
Subscription—self-managed and SaaS | |||
Revenue: | |||
Total subscription revenue | $ 190,046 | $ 137,978 | $ 94,606 |
Cost of revenue: | |||
Total cost of revenue—subscription | 41,023 | 27,619 | 19,201 |
License—self-managed | |||
Revenue: | |||
Total subscription revenue | 16,637 | 12,849 | 10,110 |
Cost of revenue: | |||
Total cost of revenue—subscription | $ 800 | $ 832 | $ 834 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (64,203) | $ (9,405) | $ (5,394) |
Other comprehensive income, net of tax: | |||
Unrealized gains (losses) on available-for-sale marketable securities, net | (195) | (104) | 35 |
Unrealized gains on derivative instruments, net | 434 | 441 | 0 |
Other comprehensive income | 239 | 337 | 35 |
Comprehensive loss | $ (63,964) | $ (9,068) | $ (5,359) |
Consolidated Statements of Conv
Consolidated Statements of Convertible Preferred Shares and Shareholders' Equity (Deficit) - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit | Convertible Preferred SharesPreferred Stock [Member] |
Balance (in shares) at Dec. 31, 2018 | 26,393,650 | 52,063,647 | ||||
Balance at Dec. 31, 2018 | $ (38,677) | $ 76 | $ 21,237 | $ (59,990) | $ 175,844 | |
Issuance of ordinary shares upon exercise of share options (in shares) | 1,535,603 | |||||
Issuance of ordinary shares upon exercise of share options | 1,221 | $ 4 | 1,217 | |||
Issuance of ordinary shares related to business combination (in shares) | 1,488 | |||||
Issuance of ordinary shares related to business combination | 11 | 11 | ||||
Share-based compensation expense | 9,370 | 9,370 | ||||
Other comprehensive income (loss), net of tax | 35 | $ 35 | ||||
Net loss | (5,394) | (5,394) | ||||
Balance (in shares) at Dec. 31, 2019 | 27,930,741 | 52,063,647 | ||||
Balance at Dec. 31, 2019 | (33,434) | $ 80 | 31,835 | 35 | (65,384) | $ 175,844 |
Conversion of convertible preferred shares to ordinary shares upon initial public offering (in shares) | 52,063,647 | (52,063,647) | ||||
Conversion of convertible preferred shares to ordinary shares upon initial public offering | 175,844 | $ 142 | 175,702 | $ (175,844) | ||
Issuance of ordinary shares upon initial public offering, net of underwriting discounts and commissions and other issuance costs (in shares) | 9,735,232 | |||||
Issuance of ordinary shares upon initial public offering, net of underwriting discounts and commissions and other issuance costs | 393,233 | $ 29 | 393,204 | |||
Issuance of ordinary shares upon exercise of share options (in shares) | 2,091,912 | |||||
Issuance of ordinary shares upon exercise of share options | 3,467 | $ 6 | 3,461 | |||
Issuance of ordinary shares upon release of restricted share units (in shares) | 138,400 | |||||
Issuance of ordinary shares related to business combination (in shares) | 152,515 | |||||
Share-based compensation expense | 23,852 | 23,852 | ||||
Other comprehensive income (loss), net of tax | 337 | 337 | ||||
Net loss | (9,405) | (9,405) | ||||
Balance (in shares) at Dec. 31, 2020 | 92,112,447 | |||||
Balance at Dec. 31, 2020 | $ 553,894 | $ 257 | 628,054 | 372 | (74,789) | |
Issuance of ordinary shares upon exercise of share options (in shares) | 2,538,063 | 2,538,063 | ||||
Issuance of ordinary shares upon exercise of share options | $ 6,837 | $ 7 | 6,830 | |||
Issuance of ordinary shares upon release of restricted share units (in shares) | 643,980 | |||||
Issuance of ordinary shares upon release of restricted share units | $ 2 | (2) | ||||
Issuance of ordinary shares under the employee share purchase plan (shares) | 94,638 | |||||
Issuance of ordinary shares under the employee share purchase plan | 3,092 | 3,092 | ||||
Issuance of ordinary shares related to business combination (in shares) | 1,922,912 | |||||
Issuance of ordinary shares related to business combination | 81,773 | $ 6 | 81,767 | |||
Share-based compensation expense | 56,949 | 56,949 | ||||
Other comprehensive income (loss), net of tax | 239 | 239 | ||||
Net loss | (64,203) | (64,203) | ||||
Balance (in shares) at Dec. 31, 2021 | 97,312,040 | |||||
Balance at Dec. 31, 2021 | $ 638,581 | $ 272 | $ 776,690 | $ 611 | $ (138,992) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (64,203) | $ (9,405) | $ (5,394) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 8,746 | 3,660 | 2,810 |
Share-based compensation expense | 56,949 | 23,852 | 9,370 |
Non-cash operating lease expense | 6,108 | 0 | 0 |
Net amortization of premium or discount on investments | 5,522 | 1,905 | (374) |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable | (12,810) | (12,312) | (4,927) |
Prepaid expenses and other assets | (17,715) | (6,997) | (4,117) |
Deferred contract acquisition costs | (6,195) | (2,207) | (2,399) |
Accounts payable | 504 | 4,921 | 1,792 |
Accrued expenses and other liabilities | 13,089 | 5,509 | 1,108 |
Operating lease liabilities | (5,051) | 0 | 0 |
Deferred revenue | 42,958 | 20,532 | 12,135 |
Net cash provided by operating activities | 27,902 | 29,458 | 10,004 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (266,319) | (450,734) | (203,479) |
Maturities and sales of short-term investments | 341,354 | 142,460 | 76,557 |
Purchases of property and equipment | (4,228) | (3,522) | (1,803) |
Payments for business combinations, net of cash acquired | (195,752) | 0 | (20,860) |
Prepayment for purchase of intangible asset | (600) | 0 | 0 |
Net cash used in investing activities | (125,545) | (311,796) | (149,585) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions and other issuance costs | 0 | 393,481 | (192) |
Proceeds from exercise of share options | 6,837 | 3,467 | 1,221 |
Proceeds from employee share purchase plan | 3,092 | 0 | 0 |
Payments to be remitted to tax authorities,net of proceeds from employee equity transactions | (8,485) | 9,186 | (293) |
Net cash provided by financing activities | 1,444 | 406,134 | 736 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | (96,199) | 123,796 | (138,845) |
Cash, cash equivalents, and restricted cash—beginning of period | 164,739 | 40,943 | 179,788 |
Cash, cash equivalents, and restricted cash—end of period | 68,540 | 164,739 | 40,943 |
Supplemental Disclosures of Cash Flow Information | |||
Income tax payments (refunds) | 153 | (238) | 2,073 |
Supplemental disclosures of noncash investing and financing activities: | |||
Purchases of property and equipment during the period included in accounts payable | 509 | 276 | 268 |
Fair value of ordinary shares issued as consideration for business combination | 81,773 | 0 | 11 |
Deferred offering costs incurred during the period included in accounts payable and accrued expenses | $ 0 | $ 0 | $ 344 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | $ 68,284 | $ 164,461 | $ 39,150 |
Restricted cash included in prepaid expenses and other current assets | 13 | 14 | 14 |
Restricted cash included in other assets, noncurrent | 243 | 264 | 1,779 |
Total cash, cash equivalents, and restricted cash | $ 68,540 | $ 164,739 | $ 40,943 |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business JFrog Ltd. (together with its subsidiaries, “JFrog”, or the “Company”) was incorporated under the laws of the State of Israel in 2008. JFrog provides an end-to-end, hybrid, universal DevOps Platform that powers the software supply chain, enabling organizations to continuously deliver software updates across any system. JFrog’s platform is the critical bridge between software development and deployment of that software, paving the way for the modern DevOps paradigm. The Company enables organizations to build and release software faster and more securely while empowering developers to be more efficient. The Company’s solutions are designed to run on-premise, in public or private clouds, or in hybrid environments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated customer life on deferred contract acquisition costs, the allowance for credit losses, the fair value of financial assets and liabilities, including the fair value of derivatives, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, loss contingency, the fair value of share purchase right granted under the Company’s employee share purchase plan, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. Foreign Currency The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Foreign currency transaction gains and losses have been immaterial in the periods presented. Concentration of Risks Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, the composition and maturities of which are regularly monitored by the Company. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business. As of December 31, 2021 and 2020, no single customer represented 10 % or more of accounts receivable. No single customer accounted for more than 10 % of total revenue for the periods presented. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s operating leases. Short-Term Investments Short-term investments consist of bank deposits and marketable securities. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. The Company periodically evaluates its available-for-sale debt securities for impairment. 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 interest and other income, net in the Consolidated Statements of Operations. 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. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, short-term investments, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectable are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented. Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes. The Company accounts for its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. Contract Balances Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented. Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date. Cost to Obtain a Contract The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values. Sales commissions paid for the renewal of a contract to sales personnel are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract for sales personnel are amortized over an estimated period of benefit of four years. The Company determines the period of benefit for sales commissions paid for the acquisition of the initial customer contract by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included in sales and marketing expense in the Consolidated Statements of Operations. The Company has applied the practical expedient in Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. Property and Equipment, Net 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 respective assets. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life Capitalized Software Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Once technological feasibility is established, costs are capitalized until the product is made available for general release to the Company’s customers. Maintenance costs are expensed as incurred. To date, costs have not been capitalized as the general release process is essentially completed concurrently with the establishment of technological feasibility. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented. Leases The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments and lease incentives. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Business and Asset Acquisitions When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. Goodwill and Intangible Assets Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years Impairment of Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented. Revenue Recognition The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. The Company’s self-managed subscriptions are offered on an annual and multi-year basis, and SaaS subscriptions are offered on an annual basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the time of entering into the contract for the full contract amount. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears. Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps: 1. Identification of the contract, or contracts, with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract. For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period. For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. Cost of Revenue Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount. Research and Development Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amount ed to $ 5.8 million, $ 2.7 mil lion, and $ 1.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations. Share-Based Compensation Share-based compensation expense related to share-based awards is recognized based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period for share options, restricted share units (“RSU”), performance-based RSUs, and share purchase rights granted under the Company’s employee share purchase plan. The fair value of each option award and share purchase right is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The fair value of each RSU award is based on the fair value of the underlying ordinary shares on the grant date. The assumptions used to determine the fair value of the share awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The compensation expense associated with performance-based RSUs is adjusted based on the probability in achieving performance targets. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited. Loss Contingency The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred. Income Taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the income tax expense in the period in which such determination |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Disaggregation of Revenue The following table presents revenue by category: Year Ended December 31, 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) Self-managed subscription $ 157,035 76 % $ 118,207 78 % $ 85,596 82 % Subscription 140,398 68 105,358 70 75,486 72 License 16,637 8 12,849 8 10,110 10 SaaS 49,648 24 32,620 22 19,120 18 Total subscription revenue $ 206,683 100 % $ 150,827 100 % $ 104,716 100 % The following table summarizes revenue by region based on the shipping address of customers: Year Ended December 31, 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) United States $ 129,503 63 % $ 96,786 64 % $ 64,951 62 % Israel 4,543 2 2,837 2 1,927 2 Rest of world 72,637 35 51,204 34 37,838 36 Total subscription revenue $ 206,683 100 % $ 150,827 100 % $ 104,716 100 % Contract Balances Of the $ 102.8 million, $ 82.3 million and $ 70.2 million of deferred revenue recorded as of December 31, 2020, 2019 and 2018, respectively, the Company recognized $ 83.8 million, $ 73.7 million and $ 51.9 million as revenue during the years ended December 31, 2021, 2020 and 2019, respectively. Remaining Performance Obligation The Company’s remaining performance obligations are comprised of product and service revenue not yet delivered. As of December 31, 2021 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 161.6 million, which consists of billed considerations of $ 147.1 million and unbilled considerations of $ 14.5 million, that the Company expects to recognize as revenue. As of December 31, 2021 , the Company expects to recognize 84 % of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. Cost to Obtain a Contract The following table represents a rollforward of deferred contract acquisition costs: Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 8,196 $ 5,989 $ 3,590 Additions to deferred contract acquisition costs 10,843 5,186 4,212 Amortization of deferred contract acquisition costs ( 4,648 ) ( 2,979 ) ( 1,813 ) Ending balance $ 14,391 $ 8,196 $ 5,989 Deferred contract acquisition costs (to be recognized in next 12 months) $ 5,271 $ 3,247 $ 2,348 Deferred contract acquisition costs, noncurrent 9,120 4,949 3,641 Total deferred contract acquisition costs $ 14,391 $ 8,196 $ 5,989 |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Short-Term Investments | 4. Short-Term Investments Short-term investments consisted of the following: December 31, 2021 Amortized Gross Gross Estimated (in thousands) Bank deposits $ 90,704 $ — $ — $ 90,704 Commercial paper 56,448 0 ( 37 ) 56,411 Corporate debt securities 109,212 1 ( 151 ) 109,062 Municipal securities 71,046 0 ( 50 ) 70,996 Government and agency debt 25,698 0 ( 27 ) 25,671 Marketable securities 262,404 1 ( 265 ) 262,140 Total short-term investments $ 353,108 $ 1 $ ( 265 ) $ 352,844 December 31, 2020 Amortized Gross Gross Estimated (in thousands) Bank deposits $ 133,386 $ — $ — $ 133,386 Certificates of deposit 10,802 20 ( 1 ) 10,821 Commercial paper 34,150 3 ( 2 ) 34,151 Corporate debt securities 128,694 11 ( 82 ) 128,623 Municipal securities 54,238 7 ( 12 ) 54,233 Government and agency debt 72,394 5 ( 18 ) 72,381 Marketable securities 300,278 46 ( 115 ) 300,209 Total short-term investments $ 433,664 $ 46 $ ( 115 ) $ 433,595 For the year ended December 31, 2021, credit losses related to marketable debt securities were not material and there was no impairment loss. For the years ended December 31, 2020 and 2019, the Company did not recognize any material other-than-temporary impairment losses. See Note 13, Accumulated Other Comprehensive Income , for the realized gains or losses from available-for-sale marketable securities that were reclassified out of AOCI during the periods presented. As of December 31, 2021 , the contractual maturities of the Company’s marketable securities were all less than one year. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2021 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 21,670 $ 21,670 $ — Municipal securities 175 — 175 Cash equivalents 21,845 21,670 175 Bank deposits 90,704 — 90,704 Commercial paper 56,411 — 56,411 Corporate debt securities 109,062 — 109,062 Municipal securities 70,996 — 70,996 Government and agency debt 25,671 — 25,671 Short-term investments 352,844 — 352,844 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 891 — 891 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 43 — 43 Restricted bank deposits included in prepaid expenses and other current assets 13 — 13 Restricted bank deposits included in other assets, noncurrent 243 — 243 Total financial assets $ 375,879 $ 21,670 $ 354,209 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 16 $ — $ 16 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 5 — 5 Total financial liabilities $ 21 $ — $ 21 December 31, 2020 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 111,080 $ 111,080 $ — Certificates of deposit 274 — 274 Cash equivalents 111,354 111,080 274 Bank deposits 133,386 — 133,386 Certificates of deposit 10,821 — 10,821 Commercial paper 34,151 — 34,151 Corporate debt securities 128,623 — 128,623 Municipal securities 54,233 — 54,233 Government and agency debt 72,381 — 72,381 Short-term investments 433,595 — 433,595 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 468 — 468 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 2 — 2 Restricted bank deposits included in prepaid expenses and other current assets 14 — 14 Restricted bank deposits included in other assets, noncurrent 264 — 264 Total financial assets $ 545,697 $ 111,080 $ 434,617 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 16 $ — $ 16 Total financial liabilities $ 16 $ — $ 16 As of December 31, 2021 and 2020 , the Company did no t have any assets or liabilities valued based on Level 3 valuations. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging | 6. Derivative Financial Instruments and Hedging Notional Amount of Foreign Currency Contracts The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows: December 31, 2021 2020 (in thousands) Derivatives Designated as Hedging Instruments: Foreign currency contracts $ 45,971 $ 10,264 Derivatives Not Designated as Hedging Instruments: Foreign currency contracts 4,975 1,230 Total derivative instruments $ 50,946 $ 11,494 Effect of Foreign Currency Contracts on the Consolidated Statements of Operations The effect of foreign currency contracts on the Consolidated Statements of Operations during the periods presented were as follows: Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, 2021 2020 2019 2021 2020 2019 Statement of Operations Location: (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 74 $ 68 $ — $ — $ — $ — Research and development 504 426 — — — — Sales and marketing 120 141 — — — — General and administrative 166 163 — — — — Interest and other income, net 8 — — 345 62 137 Total gains recognized in earnings $ 872 $ 798 $ — $ 345 $ 62 $ 137 Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income Net unrealized gains (losses) of foreign currency contracts designated as hedging instruments, net of tax, are recorded in AOCI. See Note 13, Accumulated Other Comprehensive Income , for the effect on other comprehensive income (loss) and the reclassification out of AOCI during the periods presented. All of net deferred gains in AOCI as of December 31, 2021 are expected to be recognized as operating expenses in the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates over the next twelve months. |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheet Components | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Condensed Consolidated Balance Sheet Components | 7. Consolidated Balance Sheet Components Property and Equipment, Net Property and equipment, net consisted of the following: December 31, 2021 2020 (in thousands) Computer and software $ 5,955 $ 4,079 Furniture and office equipment 2,248 1,495 Leasehold improvements 4,893 3,761 Property and equipment, gross 13,096 9,335 Less: accumulated depreciation and amortization ( 6,407 ) ( 4,372 ) Property and equipment, net $ 6,689 $ 4,963 Depreciation and amortization expense were $ 2.8 million, $ 2.1 million, and $ 1.3 million for the years ended December 31, 2021, 2020, and 2019, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, 2021 2020 (in thousands) Accrued compensation and benefits $ 17,601 $ 8,799 Withholding tax from employee equity transactions to be remitted to tax authorities 701 9,186 Accrued expenses 9,652 3,054 Accrued expenses and other current liabilities $ 27,954 $ 21,039 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Business Combinations | 8. Business Combinations 2021 Acquisitions Vdoo Connected Trust Ltd. On July 19, 2021, the Company acquired 100 % of the share capital of Vdoo Connected Trust Ltd. (“Vdoo”), a privately-held company in Israel, which provides a product security platform for automating all software security tasks throughout the entire product lifecycle. The acquisition accelerates the Company’s security technology expansion, aiming to deliver a holistic security solution as part of its Platform. The total purchase consideration transferred for the Vdoo acquisition was $ 299.3 million, subject to working capital adjustments, comprised of $ 217.5 million in cash and $ 81.8 million for the fair value of 1,823,266 shares of the Company’s ordinary shares issued. In addition to the purchase consideration and pursuant to holdback agreements with certain Vdoo employees, the Company transferred $ 13.2 million in cash and committed to issue 110,932 shares of the Company’s ordinary shares, which is expected to be released to these employees in one to two years from the acquisition date, subject to their continued service. The Company also agreed to pay up to a $ 10.0 million retention bonus to Vdoo continuing employees in three annual installments following the acquisition date. The payouts or vesting of the holdback and the retention considerations are subject to continued employment, and therefore recognized as compensation expense over the requisite service period. In addition, pursuant to the purchase agreement, on July 19, 2021, the Company issued approximately $ 30.0 million of RSUs to Vdoo employees in accordance with the terms of the Company’s equity incentive plan, which is expected to vest and be expensed over an approximately 4-year service period. The following table summarizes the preliminary fair value of assets acquired and liabilities assumed: July 19, 2021 (in thousands) Cash and cash equivalent $ 31,240 Other current assets 943 Intangible assets 45,500 Goodwill 224,673 Other noncurrent assets 2,692 Total assets acquired 305,048 Current liabilities 4,272 Noncurrent liabilities 1,501 Total liabilities assumed 5,773 Total purchase consideration $ 299,275 Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers. Goodwill is not deductible for income tax purpose. The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Developed technology $ 41,300 5.0 Customer relationships 4,200 6.0 Total intangible assets acquired $ 45,500 The results of operations of Vdoo have been included in the consolidated financial statements since the date of the acquisition. Additionally, the Company incurred transaction costs $ 0.7 million during the year ended December 31, 2021, which were included in general and administrative expenses in the Consolidated Statements of Operations. The following unaudited pro forma information presents the combined results of operations of the Company and Vdoo as if the acquisition of Vdoo had been completed on January 1, 2020. The unaudited pro forma results include adjustments primarily related to amortization of the acquired intangible assets, recognition of cash and share-based compensation associated with RSU grants, retention and holdback arrangements, as referenced above, as of the earliest period presented. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020. Year Ended December 31, 2021 2020 (in thousands) Revenue $ 207,824 $ 152,197 Net loss $ 89,939 $ 50,858 Upswift Ltd. In August 2021, the Company completed the acquisition of Upswift Ltd., a privately-held company providing device management platform for total consideration of $ 9.5 million, net of cash acquired. Of the purchase consideration, $ 4.3 million was attributed to identified intangible assets, $ 5.8 million to goodwill, and $ 0.6 million to net liabilities assumed. 2019 Acquisition Shippable In February 2019, the Company acquired 100 % of the share capital of Shippable Inc. (“Shippable”), a privately held company in the United States. Shippable is a cloud-based continuous integration and delivery platform that developers use to compile code and deliver app and microservices updates. The total purchase price was $ 21.2 million, comprised of $ 20.9 million in cash paid, net of $ 0.3 million of cash acquired, and issuance of 1,488 ordinary shares, paid and issued upon closing of the transaction. The net purchase price was attributable to $ 4.0 million of intangible assets, $ 15.7 million of goodwill, and $ 1.2 million of net assets acquired. Goodwill was primarily attributed to synergies arising from the acquisition and the value of the acquired workforce and was not deductible for tax purposes. In addition, there were contingent considerations not included within the total purchase price, comprising of total aggregate cash payments of $ 4.1 million and the issuance of 308,080 shares of the Company’s ordinary shares, subject to the attainment of certain employee retention and performance targets, and are expensed over three years . |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 9. Goodwill and Intangible Assets, Net Goodwill The following table represents the changes to goodwill: Carrying Amount (in thousands) Balance as of December 31, 2019 and 2020 $ 17,320 Additions from acquisitions 230,456 Balance as of December 31, 2021 $ 247,776 There was no goodwill activity during the year ended December 31, 2020. Intangible Assets, Net Intangible assets consisted of the following as of December 31, 2021: Gross Fair Accumulated Net Book Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 7,011 ) $ 43,336 4.3 Customer relationships 5,541 ( 897 ) 4,644 5.1 Other intangible assets 1,586 ( 1,586 ) — — Total $ 57,474 $ ( 9,494 ) $ 47,980 Intangible assets consisted of the following as of December 31, 2020: Gross Fair Accumulated Net Book Weighted- (in thousands) (in years) Developed technology $ 4,856 $ ( 2,064 ) $ 2,792 3.7 Customer relationships 1,200 ( 367 ) 833 4.2 Other intangible assets 1,586 ( 1,164 ) 422 0.8 Total $ 7,642 $ ( 3,595 ) $ 4,047 Amortization expenses for intangible assets were $ 5.9 million, $ 1.6 million and $ 1.5 million for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization of developed technology is included in cost of revenue and amortization of customer relationships and other intangible assets are included in sales and marketing expense in the Consolidated Statements of Operations. The expected future amortization expenses by year related to the intangible assets as of December 31, 2021 are as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 11,365 2023 11,291 2024 10,590 2025 9,110 2026 5,241 Thereafter 383 Total $ 47,980 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | 10. Leases The Company leases its office facilities under non-cancelable agreements that expire at various dates through August 2026. Components of operating lease expense were as follows: Year Ended December 31, 2021 (in thousands) Operating lease cost $ 6,274 Short-term lease cost 139 Variable lease cost 375 Total operating lease cost $ 6,788 Rent expense under the previous lease accounting standard was $ 4.2 million and $ 3.1 million during the years ended December 31, 2020 and 2019, respectively. Supplementary cash flow information related to operating leases was as follows: Year Ended December 31, 2021 (in thousands) Cash paid for operating leases $ 5,709 ROU assets obtained in exchange for new operating lease liabilities $ 2,653 Adjustment to ROU assets upon modification of existing lease $ 4,969 As of December 31, 2021 , the weighted-average discount rate is 0.9 % and the weighted-average remaining term is 3.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2021 were as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 7,491 2023 7,258 2024 6,199 2025 4,969 2026 1,847 Total operating lease payments 27,764 Less: imputed interest ( 457 ) Total operating lease liabilities $ 27,307 As of December 31, 2020, the minimum lease payments under operating leases, including payments for leases which had not commenced, were as follows: December 31, 2020 (in thousands) Year Ending December 31, 2021 $ 5,475 2022 5,931 2023 5,429 2024 4,607 2025 3,389 Thereafter 803 Total $ 25,634 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties for mainly hosting services, as well as software products and services. As of December 31, 2021, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 14,084 2023 24,297 2024 18,000 2025 25,849 Total $ 82,230 Indemnifications and Contingencies The Company enters into indemnification provisions under certain agreements with other parties in the ordinary course of business. In its customer agreements, the Company has agreed to indemnify, defend and hold harmless the indemnified party for third party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic customers, the Company has agreed to indemnify, defend and hold harmless the indemnified party for non-compliance with certain additional representations and warranties made by the Company. Grants from Israeli Innovation Authority The Company has received in the past grants from the Israeli Innovation Authority (“IIA”) and repaid them in full. Still, as any grant recipient, the Company is subject to the provisions of the Israeli Law for the Encouragement of Research, Development and Technological Innovation in the Industry and the regulations and guidelines thereunder (the “Innovation Law”). Pursuant to the Innovation Law, there are restrictions related to transferring intellectual property outside of Israel. Such transfer requires the approval from the IIA. The approval may be subject to a maximum additional payment amount of approximately $ 6.0 million. In the past, the Company received an approval from the IIA to perform a limited development of IIA funded know-how outside of Israel , subject to the terms specified in the IIA approval, including that all of its core R&D activities will remain in Israel. Legal Proceedings The Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together, have a material adverse effect on its business, financial position, results of operations, or cash flows. Former Company sales employees (the “Former Employees”), on behalf of themselves and other non-exempt sales employees, alleged the violation of various wage and hour laws and have sought to recover unpaid wages, statutory penalties, civil penalties, liquidated damages, and attorney’s fees pursuant to certain California and federal law. The Company denies the allegations. The Company and Former Employees have agreed to resolve the dispute amicably for approximately $ 2.6 million, and are currently negotiating the final settlement agreement. The settlement is subject to an arbitrator’s approval. The company has accrued the estimated settlement amount as part of sales and marketing expenses. |
Shareholders' Equity and Equity
Shareholders' Equity and Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Shareholders' Equity and Equity Incentive Plans | 12. Shareholders’ Equity and Equity Incentive Plans Preferred and Ordinary Shares The Company’s amended and restated articles of association (“AoA”) authorized the issuance of 50,000,000 preferred shares and 500,000,000 ordinary shares, each with a par value of NIS 0.01 . All ordinary shares will have identical voting and other rights in all respects. The Company’s AoA does not require shareholder approval of a dividend distribution and provides that dividend distributions may be determined by the Company’s board of directors. To date, no dividends have been declared. The Company has the following ordinary shares reserved for future issuance: December 31, 2021 Outstanding share options 9,865,601 Outstanding RSUs 3,376,569 Issuable ordinary shares related to business combinations 159,115 Shares available for future issuance under the 2020 Plan 12,742,345 Shares available for future issuance under ESPP 2,927,932 Total ordinary shares reserved 29,071,562 Equity Incentive Plans In 2011, the Company adopted the 2011 Israeli Share Option Plan (“2011 Plan”), under which the Company may grant various forms of equity incentive compensation at the discretion of the board of directors, including share options. The awards have varying terms, but generally vest over five years . Share options expire 10 years after the date of grant. The Company issues new ordinary shares upon exercise of share options. Immediately prior to the IPO, 20,605,700 ordinary shares were reserved for grants of awards under the 2011 Plan and the remaining number of ordinary shares available for future issuance was 1,000,821 . In connection with the IPO, the remaining number of ordinary shares available for future issuance under the 2011 Plan became available for issuance for a corresponding number of ordinary shares under the 2020 Equity Incentive Plan (“2020 Plan”). In September 2020, immediately prior to the IPO, the Company adopted the 2020 Plan. Following the effectiveness of the 2020 Plan, the Company will no longer grant any awards under the 2011 Plan, though previously granted options under the 2011 Plan remain outstanding and governed by the 2011 Plan. The 2020 Plan provides for the grant of share options, ordinary shares, restricted shares, restricted share units and other share-based awards. The maximum number of ordinary shares available for issuance under the 2020 Plan is equal to the sum of (i) 9,100,000 ordinary shares plus, (ii) any shares subject to the pool authorized by the Company’s board of directors under the 2011 Plan which remain free and unallocated as of the effective date, and (iii) any shares subject to awards granted under the 2011 Plan that, on or after the effective date, expire, or are cancelled, terminated, forfeited or settled in cash in lieu of issuance of shares, for any reason, without having been exercised, with the maximum number of shares to be added to the 2020 Plan pursuant to the 2011 Plan equal to 15,309,367 shares. In addition, the number of shares available for issuance under the Company’s 2020 Plan also includes an annual increase on January 1 of each year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to the least of (i) 9,100,000 ordinary shares, (ii) five percent ( 5 %) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year on a fully diluted basis, or (iii) such number of shares determined by the Company’s board of directors. The contractual term for each award granted under the 2020 Plan will be 10 years . On January 1, 2021, the number of ordinary shares authorized for issuance under the 2020 Plan automatically increased by 5,307,818 shares. Share Options A summary of share option activity under the Company’s equity incentive plans and related information is as follows: Options Outstanding Outstanding Weighted-Average Exercise Weighted-Average Remaining Aggregate (in thousands, except share, life and per share data) Balance as of December 31, 2020 13,075,489 $ 6.50 6.8 $ 736,478 Granted 30,000 $ 65.96 Exercised ( 2,538,063 ) $ 2.69 $ 118,675 Forfeited ( 701,825 ) $ 14.47 Balance as of December 31, 2021 9,865,601 $ 7.10 6.0 $ 224,538 Exercisable as of December 31, 2021 5,608,245 $ 3.71 4.9 $ 146,093 The weighted-average grant date fair value of options granted during the years ended December 31, 2021, 2020, and 2019 was $ 42.00 , $ 20.13 and $ 16.05 , respectively. The total intrinsic value of option exercised during the years ended December 31, 2020 and 2019 was $ 96.0 million and $ 14.0 million, respectively. Restricted Share Units In August 2020, the Company granted an award of 667,595 RSUs to the Company’s CEO. The RSUs vest on the satisfaction of both a service-based and a performance-based condition. The RSUs shall vest and be settled in ordinary shares as follows: (i) an aggregate of 138,400 RSUs shall vest immediately prior to an IPO, and (ii) 529,195 RSUs shall vest upon the first annual anniversary of the IPO, provided, in each case, that the CEO remains continuously engaged with the Company or its Affiliates throughout each such vesting date. As of December 31, 2021, the RSUs vested fully and were released. A summary of RSU activity and related information under the Company's equity incentive plan and the RSU award to the CEO in August 2020 is as follows: RSUs Unvested RSUs Weighted-Average Unvested as of December 31, 2020 818,945 $ 48.38 Granted 3,623,303 $ 45.97 Vested ( 643,980 ) $ 43.04 Canceled/forfeited ( 421,699 ) $ 54.66 Unvested as of December 31, 2021 3,376,569 $ 46.03 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2020 was $ 47.01 . The total fair value of RSUs, as of their respective release dates, was $ 23.4 million and $ 6.1 million during the years ended December 31, 2021 and 2020, respectively. No RSUs were granted or vested during the year ended December 31, 2019. Employee Share Purchase Plan In August 2020, the Company adopted the 2020 Employee Share Purchase Plan (“ESPP”), which became effective in connection with the IPO. A total of 2,100,000 ordinary shares are available for sale under the ESPP. The number of ordinary shares available for sale under the ESPP also includes an annual increase on the first day of each fiscal year beginning with 2021, equal to the least of (i) 2,100,000 ordinary shares, (ii) one percent ( 1 %) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year, or (iii) such other amount as may be determined by the Company. Generally, all of the Company’s employees are eligible to participate if they are employed by the Company. However, an employee may not be granted rights to purchase the Company’s ordinary shares under the ESPP if such employee (i) immediately after the grant would own capital shares or hold outstanding share options to purchase such shares possessing 5 % or more of the total combined voting power or value of all classes of capital shares of the Company; or (ii) holds rights to purchase ordinary shares under all employee share purchase plans of the Company that accrue at a rate that exceeds $ 25,000 worth of the Company’s ordinary shares for each calendar year in which such rights are outstanding at any time. The Company’s ESPP permits participants to purchase the Company’s ordinary shares through contributions in the form of payroll deductions or otherwise to the extent permitted by the Company, of up to 15 % of their eligible compensation (as defined in the ESPP). Amounts contributed and accumulated by the participant will be used to purchase the Company’s ordinary shares at the end of each offering period. A participant may purchase a maximum of 1,250 of the Company’s ordinary shares during an offering period. The purchase price of the shares will be 85 % of the lower of the fair market value of the Company’s ordinary shares on the first trading day of the offering period or on the exercise date. Participants may end their participation at any time during an offering period and will be paid their accrued contributions that have not yet been used to purchase shares of the Company’s ordinary shares. Participation ends automatically upon termination of employment with the Company. The Company’s ESPP provides for consecutive six-month offering periods. The offering periods are scheduled to start on the first trading day on or after March 1 and September 1 of each year, with the first offering period commencing on March 1, 2021, and will end on the last trading day of the offering period. On January 1, 2021, the number of ordinary shares authorized for issuance under the ESPP automatically increased by 922,570 shares. 94,638 ordinary shares were purchased during the year ended December 31, 2021. Determination of Fair Value The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model, which requires the input of highly subjective assumptions. These assumptions and estimates were determined as follows: • Fair Value of Ordinary Shares. Prior to the IPO, the fair value was determined by the Company’s board of directors, with input from management and valuation reports prepared by third-party valuation specialists. After the IPO, the fair value of each ordinary share was based on the closing price of the Company’s publicly traded ordinary shares as reported on the date of the grant. • Risk-Free Interest Rate . The risk-free rate for the expected term of the options is based on the Black-Scholes option-pricing model on the yields of U.S. Treasury securities with maturities appropriate for the expected term of employee share option awards. • Expected Term . The expected term represents the period that options are expected to be outstanding. For option grants that are considered to be “plain vanilla,” the Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. • Expected Volatility . Expected volatility is based on historical volatility over the most recent period commensurate with the expected term of the option. As the Company has a short trading history for its ordinary shares, when the Company's trading period is shorter than the expected term, the expected volatility is derived from the average historical share volatilities of several unrelated public companies within the Company’s industry that the Company considers to be comparable to its own business over a period equivalent to the option’s expected term. • Expected Dividend Yield. The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used. The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended December 31, 2021 2020 2019 Expected term (years) 6.5 6.1 - 6.5 6.5 Expected volatility 70.0 % 65.0 % - 80.0 % 60.0 % - 65.0 % Risk-free interest rate 0.7 % 0.3 % - 1.7 % 1.7 % - 2.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows: Year Ended December 31, 2021 Expected term (years) 0.5 Expected volatility 56.9 % - 64.8 % Risk-free interest rate 0.1 % Expected dividend yield 0.0 % Share-Based Compensation The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 4,027 $ 1,129 $ 536 Research and development 14,572 3,903 3,642 Sales and marketing 15,256 4,882 3,089 General and administrative 23,094 13,938 2,103 Total share-based compensation expense $ 56,949 $ 23,852 $ 9,370 As of December 31, 2021 , unrecognized share-based compensation cost related to unvested share-based compensation awards was $ 177.0 million, which is expected to be recognized over a weighted-average period of 3.2 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income The following table summarizes the changes in AOCI by component, net of tax, during the periods presented: Net Unrealized Net Unrealized Total (in thousands) Balance as of December 31, 2019 $ 35 $ — $ 35 Other comprehensive income (loss) before reclassifications ( 115 ) 1,239 1,124 Net realized losses (gains) reclassified from AOCI 11 ( 798 ) ( 787 ) Other comprehensive income (loss) ( 104 ) 441 337 Balance as of December 31, 2020 ( 69 ) 441 372 Other comprehensive income (loss) before reclassifications ( 191 ) 1,306 1,115 Net realized gains reclassified from AOCI ( 4 ) ( 872 ) ( 876 ) Other comprehensive income (loss) ( 195 ) 434 239 Balance as of December 31, 2021 $ ( 264 ) $ 875 $ 611 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Ordinary taxable income in Israel is subject to a corporate tax rate of 23 %. The Company applies various benefits allotted to it under the revised Investment Law as per Amendment 73, which includes a number of changes to the Investment Law regimes through regulations 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 12 % tax rate in central Israel on income deriving from Benefited Intangible Assets, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual R&D expenditure and R&D employees, as well as having at least 25 % of annual income derived from exports to large markets. PTE is defined as an enterprise which meets the aforementioned conditions and for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A 12 % capital gains tax rate on the sale of a preferred intangible asset to a foreign affiliated enterprise, provided that the asset was initially purchased from a foreign resident at an amount of NIS 200 million or more. A withholding tax rate of 20 % for dividends paid from PTE income (with an exemption from such withholding tax applying to dividends paid to an Israeli company) may be reduced to 4 % on dividends paid to a foreign resident company, subject to certain conditions regarding percentage of foreign ownership of the distributing entity. The Company adopted the PTE status since 2017 and believes it is eligible for its tax benefits. The Company’s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. The components of the net loss before income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Israel $ ( 38,900 ) $ 2,949 $ ( 6,380 ) Foreign ( 28,725 ) ( 15,096 ) 2,614 Total $ ( 67,625 ) $ ( 12,147 ) $ ( 3,766 ) Income tax expense (benefit) was as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Current: Israel $ ( 369 ) $ 369 $ — Foreign 549 ( 3,695 ) 1,522 Total current income tax expense (benefit) 180 ( 3,326 ) 1,522 Deferred: Israel ( 371 ) — — Foreign ( 3,231 ) 584 106 Total deferred income tax expense (benefit) ( 3,602 ) 584 106 Income tax expense (benefit) $ ( 3,422 ) $ ( 2,742 ) $ 1,628 A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows: Year Ended December 31, 2021 2020 2019 Theoretical income tax benefit 23 % 23 % 23 % PTE ( 5 ) 2 ( 15 ) Foreign tax rate differentials 1 12 2 Share-based compensation ( 4 ) ( 6 ) ( 26 ) Change in valuation allowance ( 6 ) 4 ( 3 ) Unrecognized tax benefits ( 3 ) ( 15 ) ( 7 ) Acquisition costs ( 1 ) ( 4 ) ( 11 ) Other — 7 ( 6 ) Total 5 % 23 % ( 43 )% Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2021 2020 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 12,743 $ 5,221 Research and development expenses 4,327 1,464 Accruals and reserves 1,528 412 Share-based compensation 4,565 1,130 Deferred revenue 2,190 1,403 Operating lease liabilities 2,398 — Issuance costs 1,405 2,810 Property and equipment — 14 Gross deferred tax assets 29,156 12,454 Valuation allowance ( 12,559 ) ( 7,854 ) Total deferred tax assets 16,597 4,600 Deferred tax liabilities: Intangible assets ( 5,594 ) ( 211 ) Deferred contract acquisition costs ( 2,607 ) ( 1,581 ) Operating lease ROU assets ( 2,273 ) — Property and equipment ( 84 ) — Gross deferred tax liabilities ( 10,558 ) ( 1,792 ) Net deferred tax assets $ 6,039 $ 2,808 A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset certain deferred tax assets at December 31, 2021 and 2020 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. The net change in the total valuation allowance for the years ended December 31, 2021, 2020, and 2019 was an increase of $ 4.7 million, $ 3.3 million and $ 0.1 million, respectively. As of December 31, 2021, the Company had $ 67.5 million in net operating loss carryforwards in Israel, which can be carried forward indefinitely. As of December 31, 2021, the U.S. subsidiary had $ 18.4 million of federal and $ 37.7 million of state net operating loss carryforwards available to offset future taxable income. If not utilized, federal and the state net operating loss carryforwards will expire in varying amounts between the years ended 2034 and 2037. The 2017 Tax Cuts and Jobs Act ("TCJA") limited the use of federal net operating loss carryforwards to 80 % of taxable income in any one tax period and provided an unlimited carryforward period for those NOLs, applicable to net operating loss carryforwards generated in years beginning after December 31, 2017. The U.S. subsidiary’s utilization of its federal net operating losses is subject to an annual limitation due to a “change in ownership,” as defined in Section 382 of the Code. The annual limitation may result in the expiration of net operating losses before utilization. As of December 31, 2021, certain foreign subsidiaries of the Company had undistributed earnings, which were designated as indefinitely reinvested. If these earnings were re-patriated to Israel, it would be subject to income taxes and to an adjustment for foreign tax credits and foreign withholding taxes. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. A reconciliation of the beginning and ending balance of total unrecognized tax positions is as follows: Unrecognized Tax Benefits (in thousands) Balance - December 31, 2018 $ 531 Increase related to prior years’ tax positions 69 Increase related to current year’s tax positions 293 Decrease due to lapse of statutes of limitations ( 91 ) Balance - December 31, 2019 802 Increase related to prior years’ tax positions 637 Increase related to current year’s tax positions 1,368 Decrease due to lapse of statutes of limitations ( 69 ) Balance - December 31, 2020 2,738 Increase related to prior years’ tax positions 86 Decrease related to prior years’ tax positions ( 2 ) Increase related to current year’s tax positions 2,039 Decrease related to settlements with tax authorities ( 446 ) Decrease due to lapse of statutes of limitations ( 19 ) Balance - December 31, 2021 $ 4,396 As of December 31, 2021, the total amount of gross unrecognized tax benefits was $ 4.4 million, of which, $ 3.8 million, if recognized, would favorably affect the Company’s effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2021 and 2020, the Company has accumulated $ 0.1 million in both interest and penalties related to uncertain tax positions. The Company has net operating losses from prior tax periods which may be subjected to examination in future periods. During the year ended December 31, 2021, the Company closed its income tax audit with Israeli tax authorities for the tax years 2015 through 2019. There were no material adjustments as a result of the audit settlements. As of December 31, 2021, the Company’s tax year of 2020 remains open to examination in Israel. Its U.S. subsidiary’s tax filings for tax years after 2018 are open to examinations by U.S. federal tax authorities and tax years after 2017 are open to examinations by U.S. state tax authorities. In addition, the U.S. federal tax returns were settled through 2018 except for any adjustments which might be made as a result of the carryback of net operating losses. The Company currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans The Company has a defined-contribution plan in the U.S. intended to qualify under Section 401 of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. Prior to January 1, 2020, the Company matched 100 % of participating employee contributions to the plan up to 3 % of the employee’s eligible compensation. Beginning January 1, 2020, the Company matches 50 % of participating employee contributions to the plan up to 6 % of the employee’s eligible compensation. During the years ended December 31, 2021, 2020, and 2019, the Company recorded $ 1.1 million, $ 0.8 million and $ 0.6 million, respectively, of expenses related to the 401(k) plan. Israeli Severance Pay Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The Company has elected to include its employees in Israel under Section 14 of the Severance Pay Law, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33 % of their monthly salary. These payments release the Company from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees; therefore, any liability for severance pay due to these employees, and the deposits under Section 14 are not recorded as an asset in the Consolidated Balance Sheets. During the years ended December 31, 2021, 2020, and 2019, the Company recorded $ 3.6 million, $ 2.2 million, and $ 1.6 million, respectively, in severance expenses related to these employees. |
Net Loss Per Share Attributable
Net Loss Per Share Attributable to Ordinary Shareholders | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share Attributable to Ordinary Shareholders | 16. Net Loss Per Share Attributable to Ordinary Shareholders The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented: Year Ended December 31, 2021 2020 2019 (in thousands, except share and per share data) Numerator: Net loss $ ( 64,203 ) $ ( 9,405 ) $ ( 5,394 ) Denominator: Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 94,783,082 46,488,225 27,130,209 Net loss per share attributable to ordinary shareholders, basic and diluted $ ( 0.68 ) $ ( 0.20 ) $ ( 0.20 ) The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended December 31, 2021 2020 2019 Convertible preferred shares — 37,127,355 52,063,647 Outstanding share options 11,229,241 13,650,862 13,146,117 Unvested RSUs 2,331,607 209,090 — Share purchase rights under the ESPP 79,450 — — Issuable ordinary shares related to business combination 140,385 199,498 259,125 Total 13,780,683 51,186,805 65,468,889 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated customer life on deferred contract acquisition costs, the allowance for credit losses, the fair value of financial assets and liabilities, including the fair value of derivatives, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, loss contingency, the fair value of share purchase right granted under the Company’s employee share purchase plan, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. |
Foreign Currency | Foreign Currency The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Foreign currency transaction gains and losses have been immaterial in the periods presented. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, the composition and maturities of which are regularly monitored by the Company. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business. As of December 31, 2021 and 2020, no single customer represented 10 % or more of accounts receivable. No single customer accounted for more than 10 % of total revenue for the periods presented. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s operating leases. |
Short-Term Investments | Short-Term Investments Short-term investments consist of bank deposits and marketable securities. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. The Company periodically evaluates its available-for-sale debt securities for impairment. 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 interest and other income, net in the Consolidated Statements of Operations. 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. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, short-term investments, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. |
AccountsReceivable, Net | Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectable are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes. The Company accounts for its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. |
Contract Balances | Contract Balances Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented. Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date. |
Cost to Obtain a Contract | Cost to Obtain a Contract The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values. Sales commissions paid for the renewal of a contract to sales personnel are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract for sales personnel are amortized over an estimated period of benefit of four years. The Company determines the period of benefit for sales commissions paid for the acquisition of the initial customer contract by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included in sales and marketing expense in the Consolidated Statements of Operations. The Company has applied the practical expedient in Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers (“ASC 606”) to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. |
Property and Equipment, Net | Property and Equipment, Net 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 respective assets. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Capitalized Software Costs | Capitalized Software Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Once technological feasibility is established, costs are capitalized until the product is made available for general release to the Company’s customers. Maintenance costs are expensed as incurred. To date, costs have not been capitalized as the general release process is essentially completed concurrently with the establishment of technological feasibility. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented. |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments and lease incentives. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. |
Business and Asset Acquisitions | Business and Asset Acquisitions When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented. |
Revenue Recognition | Revenue Recognition The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. The Company’s self-managed subscriptions are offered on an annual and multi-year basis, and SaaS subscriptions are offered on an annual basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the time of entering into the contract for the full contract amount. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears. Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps: 1. Identification of the contract, or contracts, with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract. For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period. For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount. |
Research and Development | Research and Development Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amount ed to $ 5.8 million, $ 2.7 mil lion, and $ 1.1 million for the years ended December 31, 2021, 2020, and 2019, respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations. |
Share-Based Compensation | Share-Based Compensation Share-based compensation expense related to share-based awards is recognized based on the fair value of the awards granted and recognized as an expense on a straight-line basis over the requisite service period for share options, restricted share units (“RSU”), performance-based RSUs, and share purchase rights granted under the Company’s employee share purchase plan. The fair value of each option award and share purchase right is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The fair value of each RSU award is based on the fair value of the underlying ordinary shares on the grant date. The assumptions used to determine the fair value of the share awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The compensation expense associated with performance-based RSUs is adjusted based on the probability in achieving performance targets. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited. |
Loss Contingency | Loss Contingency The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred. |
Income Taxes | Income Taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made. |
Net Loss Per Share Attributable to Ordinary Shareholders | Net Loss Per Share Attributable to Ordinary Shareholders The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period, including share options and restricted share units. Prior to the Company's closing of its initial public offering in September 2020 (“IPO”), the Company computed net loss per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. Under the two-class method, the Company’s basic net loss per share was calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share was calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury share method or the if-converted method based on the nature of such securities. Diluted net loss per share was the same as basic net loss per share in periods when the effects of potentially dilutive shares of ordinary shares were anti-dilutive. |
Segment Information | Segment Information The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. Revenue by geographical region can be found in the revenue recognition disclosures in Note 3 below. The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets: December 31, 2021 2020 (in thousands) United States $ 10,845 $ 1,437 Israel 18,165 3,018 Rest of world 3,678 508 Total long-lived assets $ 32,688 $ 4,963 |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements Effective December 31, 2021, the Company is no longer an emerging growth company. As a result, the Company started adopting new or revised accounting pronouncements at dates applicable to public companies as further described below. In February 2016, the Financial Accounting Standards (“FASB”) issued ASU No. 2016-02, Leases (Topic 842), which would require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to the existing practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a ROU asset for the right to use the underlying asset for the lease term. The Company adopted the guidance on January 1, 2021 using a modified retrospective transition approach. It applied Topic 842 to all leases as of January 1, 2021 without adjusting the comparative periods presented. The Company elected certain practical expedients permitted under the transition guidance within the new guidance and carried forward the historical accounting relating to lease identification and classification, remaining lease terms, and initial direct costs. Upon adoption, the Company recognized operating lease ROU assets of $ 21.9 million and operating lease liabilities of $ 22.1 million. Operating lease ROU assets included adjustments for prepayments and accrued lease payments. The adoption of Topic 842 did not have a material impact to the Company’s results of operations or cash flows. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to certain available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes result in earlier recognition of credit losses. The Company adopted this guidance using modified retrospective approach, effective on January 1, 2021. The adoption did not have a material effect on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-15, Intangibles-Goodwill and Other-Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The new standard requires capitalized costs to be amortized on a straight-line basis generally over the term of the arrangement, and the financial statement presentation for these capitalized costs would be the same as that of the fees related to the hosting arrangements. The Company adopted this guidance prospectively on January 1, 2021, and the adoption did not have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes by removing a variety of exceptions within the framework of ASC 740. These exceptions include the exception to the incremental approach for intra-period tax allocation in the event of a loss from continuing operations and income or a gain from other items (such as other comprehensive income), and the exception to using general methodology for the interim period tax accounting for year-to-date losses that exceed anticipated losses. The Company adopted this guidance effective on January 1, 2021. The adoption did not have a material effect on its consolidated financial statements. In October 2021, the FASB issued ASU No. 2021-08, Business Combination (Topic 805): Accounting for Contract Assets and Liabilities from Contracts with Customers, which requires an acquirer to recognize and measure contract assets and liabilities acquired in a business combination in accordance with Revenue from ASC 606 rather than adjust them to fair value at the acquisition date. The Company early adopted this guidance in the fourth quarter of 2021, retroactively applying it to all business combinations since January 1, 2021. The adoption did not have a material effect on its consolidated financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Summary Of Significant Accounting Policies abstract [Abstract] | |
Summary of Estimated Useful Lives of the Company's Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Summary of Estimated Useful Lives of the Company's Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years |
Summary of Long Lived Assets by Geographic Region | Revenue by geographical region can be found in the revenue recognition disclosures in Note 3 below. The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets: December 31, 2021 2020 (in thousands) United States $ 10,845 $ 1,437 Israel 18,165 3,018 Rest of world 3,678 508 Total long-lived assets $ 32,688 $ 4,963 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Summary of table presents revenue as follows | The following table presents revenue by category: Year Ended December 31, 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) Self-managed subscription $ 157,035 76 % $ 118,207 78 % $ 85,596 82 % Subscription 140,398 68 105,358 70 75,486 72 License 16,637 8 12,849 8 10,110 10 SaaS 49,648 24 32,620 22 19,120 18 Total subscription revenue $ 206,683 100 % $ 150,827 100 % $ 104,716 100 % |
Summary of table by region based on the shipping address of customers | The following table summarizes revenue by region based on the shipping address of customers: Year Ended December 31, 2021 2020 2019 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) United States $ 129,503 63 % $ 96,786 64 % $ 64,951 62 % Israel 4,543 2 2,837 2 1,927 2 Rest of world 72,637 35 51,204 34 37,838 36 Total subscription revenue $ 206,683 100 % $ 150,827 100 % $ 104,716 100 % |
Summary of table represents a rollforward of deferred contract acquisition costs | The following table represents a rollforward of deferred contract acquisition costs: Year Ended December 31, 2021 2020 2019 (in thousands) Beginning balance $ 8,196 $ 5,989 $ 3,590 Additions to deferred contract acquisition costs 10,843 5,186 4,212 Amortization of deferred contract acquisition costs ( 4,648 ) ( 2,979 ) ( 1,813 ) Ending balance $ 14,391 $ 8,196 $ 5,989 Deferred contract acquisition costs (to be recognized in next 12 months) $ 5,271 $ 3,247 $ 2,348 Deferred contract acquisition costs, noncurrent 9,120 4,949 3,641 Total deferred contract acquisition costs $ 14,391 $ 8,196 $ 5,989 |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, All Other Investments [Abstract] | |
Summary of short term investments | Short-term investments consisted of the following: December 31, 2021 Amortized Gross Gross Estimated (in thousands) Bank deposits $ 90,704 $ — $ — $ 90,704 Commercial paper 56,448 0 ( 37 ) 56,411 Corporate debt securities 109,212 1 ( 151 ) 109,062 Municipal securities 71,046 0 ( 50 ) 70,996 Government and agency debt 25,698 0 ( 27 ) 25,671 Marketable securities 262,404 1 ( 265 ) 262,140 Total short-term investments $ 353,108 $ 1 $ ( 265 ) $ 352,844 December 31, 2020 Amortized Gross Gross Estimated (in thousands) Bank deposits $ 133,386 $ — $ — $ 133,386 Certificates of deposit 10,802 20 ( 1 ) 10,821 Commercial paper 34,150 3 ( 2 ) 34,151 Corporate debt securities 128,694 11 ( 82 ) 128,623 Municipal securities 54,238 7 ( 12 ) 54,233 Government and agency debt 72,394 5 ( 18 ) 72,381 Marketable securities 300,278 46 ( 115 ) 300,209 Total short-term investments $ 433,664 $ 46 $ ( 115 ) $ 433,595 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value by Balance Sheet Grouping | The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2021 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 21,670 $ 21,670 $ — Municipal securities 175 — 175 Cash equivalents 21,845 21,670 175 Bank deposits 90,704 — 90,704 Commercial paper 56,411 — 56,411 Corporate debt securities 109,062 — 109,062 Municipal securities 70,996 — 70,996 Government and agency debt 25,671 — 25,671 Short-term investments 352,844 — 352,844 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 891 — 891 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 43 — 43 Restricted bank deposits included in prepaid expenses and other current assets 13 — 13 Restricted bank deposits included in other assets, noncurrent 243 — 243 Total financial assets $ 375,879 $ 21,670 $ 354,209 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 16 $ — $ 16 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 5 — 5 Total financial liabilities $ 21 $ — $ 21 December 31, 2020 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 111,080 $ 111,080 $ — Certificates of deposit 274 — 274 Cash equivalents 111,354 111,080 274 Bank deposits 133,386 — 133,386 Certificates of deposit 10,821 — 10,821 Commercial paper 34,151 — 34,151 Corporate debt securities 128,623 — 128,623 Municipal securities 54,233 — 54,233 Government and agency debt 72,381 — 72,381 Short-term investments 433,595 — 433,595 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 468 — 468 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 2 — 2 Restricted bank deposits included in prepaid expenses and other current assets 14 — 14 Restricted bank deposits included in other assets, noncurrent 264 — 264 Total financial assets $ 545,697 $ 111,080 $ 434,617 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 16 $ — $ 16 Total financial liabilities $ 16 $ — $ 16 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Disclosure of notional amount of derivatives by hedging designation | The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows: December 31, 2021 2020 (in thousands) Derivatives Designated as Hedging Instruments: Foreign currency contracts $ 45,971 $ 10,264 Derivatives Not Designated as Hedging Instruments: Foreign currency contracts 4,975 1,230 Total derivative instruments $ 50,946 $ 11,494 |
Derivative instruments, gain (loss) | The effect of foreign currency contracts on the Consolidated Statements of Operations during the periods presented were as follows: Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, 2021 2020 2019 2021 2020 2019 Statement of Operations Location: (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 74 $ 68 $ — $ — $ — $ — Research and development 504 426 — — — — Sales and marketing 120 141 — — — — General and administrative 166 163 — — — — Interest and other income, net 8 — — 345 62 137 Total gains recognized in earnings $ 872 $ 798 $ — $ 345 $ 62 $ 137 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of property and equipment | Property and equipment, net consisted of the following: December 31, 2021 2020 (in thousands) Computer and software $ 5,955 $ 4,079 Furniture and office equipment 2,248 1,495 Leasehold improvements 4,893 3,761 Property and equipment, gross 13,096 9,335 Less: accumulated depreciation and amortization ( 6,407 ) ( 4,372 ) Property and equipment, net $ 6,689 $ 4,963 |
Summary of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: December 31, 2021 2020 (in thousands) Accrued compensation and benefits $ 17,601 $ 8,799 Withholding tax from employee equity transactions to be remitted to tax authorities 701 9,186 Accrued expenses 9,652 3,054 Accrued expenses and other current liabilities $ 27,954 $ 21,039 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Summary of fair value of assets acquired and liabilities (Details) | The following table summarizes the preliminary fair value of assets acquired and liabilities assumed: July 19, 2021 (in thousands) Cash and cash equivalent $ 31,240 Other current assets 943 Intangible assets 45,500 Goodwill 224,673 Other noncurrent assets 2,692 Total assets acquired 305,048 Current liabilities 4,272 Noncurrent liabilities 1,501 Total liabilities assumed 5,773 Total purchase consideration $ 299,275 |
Summary of components of identifiable intangible assets acquired and their estimated useful lives | The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Developed technology $ 41,300 5.0 Customer relationships 4,200 6.0 Total intangible assets acquired $ 45,500 |
Summary of Unaudited Pro Forma Information | The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020. Year Ended December 31, 2021 2020 (in thousands) Revenue $ 207,824 $ 152,197 Net loss $ 89,939 $ 50,858 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | The following table represents the changes to goodwill: Carrying Amount (in thousands) Balance as of December 31, 2019 and 2020 $ 17,320 Additions from acquisitions 230,456 Balance as of December 31, 2021 $ 247,776 There was no goodwill activity during the year ended December 31, 2020. |
Summary of intangible assets | Intangible assets consisted of the following as of December 31, 2021: Gross Fair Accumulated Net Book Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 7,011 ) $ 43,336 4.3 Customer relationships 5,541 ( 897 ) 4,644 5.1 Other intangible assets 1,586 ( 1,586 ) — — Total $ 57,474 $ ( 9,494 ) $ 47,980 Intangible assets consisted of the following as of December 31, 2020: Gross Fair Accumulated Net Book Weighted- (in thousands) (in years) Developed technology $ 4,856 $ ( 2,064 ) $ 2,792 3.7 Customer relationships 1,200 ( 367 ) 833 4.2 Other intangible assets 1,586 ( 1,164 ) 422 0.8 Total $ 7,642 $ ( 3,595 ) $ 4,047 |
Summary of expected future amortization expenses by year related to the intangible assets | The expected future amortization expenses by year related to the intangible assets as of December 31, 2021 are as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 11,365 2023 11,291 2024 10,590 2025 9,110 2026 5,241 Thereafter 383 Total $ 47,980 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense were as follows: Year Ended December 31, 2021 (in thousands) Operating lease cost $ 6,274 Short-term lease cost 139 Variable lease cost 375 Total operating lease cost $ 6,788 |
Supplementary Cash Flow Information Related to Operating Leases | Supplementary cash flow information related to operating leases was as follows: Year Ended December 31, 2021 (in thousands) Cash paid for operating leases $ 5,709 ROU assets obtained in exchange for new operating lease liabilities $ 2,653 Adjustment to ROU assets upon modification of existing lease $ 4,969 |
Summary of minimum lease payments under operating leases | As of December 31, 2021 , the weighted-average discount rate is 0.9 % and the weighted-average remaining term is 3.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2021 were as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 7,491 2023 7,258 2024 6,199 2025 4,969 2026 1,847 Total operating lease payments 27,764 Less: imputed interest ( 457 ) Total operating lease liabilities $ 27,307 |
Summary of minimum lease payments under operating leases | As of December 31, 2020, the minimum lease payments under operating leases, including payments for leases which had not commenced, were as follows: December 31, 2020 (in thousands) Year Ending December 31, 2021 $ 5,475 2022 5,931 2023 5,429 2024 4,607 2025 3,389 Thereafter 803 Total $ 25,634 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of outstanding non-cancelable purchase obligations | In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties for mainly hosting services, as well as software products and services. As of December 31, 2021, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows: December 31, 2021 (in thousands) Year Ending December 31, 2022 $ 14,084 2023 24,297 2024 18,000 2025 25,849 Total $ 82,230 |
Shareholders' Equity and Equi_2
Shareholders' Equity and Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of ordinary shares reserved for future issuance | The Company has the following ordinary shares reserved for future issuance: December 31, 2021 Outstanding share options 9,865,601 Outstanding RSUs 3,376,569 Issuable ordinary shares related to business combinations 159,115 Shares available for future issuance under the 2020 Plan 12,742,345 Shares available for future issuance under ESPP 2,927,932 Total ordinary shares reserved 29,071,562 |
Summary of stock option activity | A summary of share option activity under the Company’s equity incentive plans and related information is as follows: Options Outstanding Outstanding Weighted-Average Exercise Weighted-Average Remaining Aggregate (in thousands, except share, life and per share data) Balance as of December 31, 2020 13,075,489 $ 6.50 6.8 $ 736,478 Granted 30,000 $ 65.96 Exercised ( 2,538,063 ) $ 2.69 $ 118,675 Forfeited ( 701,825 ) $ 14.47 Balance as of December 31, 2021 9,865,601 $ 7.10 6.0 $ 224,538 Exercisable as of December 31, 2021 5,608,245 $ 3.71 4.9 $ 146,093 |
Summary of restricted ordinary shares | A summary of RSU activity and related information under the Company's equity incentive plan and the RSU award to the CEO in August 2020 is as follows: RSUs Unvested RSUs Weighted-Average Unvested as of December 31, 2020 818,945 $ 48.38 Granted 3,623,303 $ 45.97 Vested ( 643,980 ) $ 43.04 Canceled/forfeited ( 421,699 ) $ 54.66 Unvested as of December 31, 2021 3,376,569 $ 46.03 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2020 was $ 47.01 . |
Summary of valuation assumptions of employee options at grant dates | The Black-Scholes assumptions used to value the employee options at the grant dates are as follows: Year Ended December 31, 2021 2020 2019 Expected term (years) 6.5 6.1 - 6.5 6.5 Expected volatility 70.0 % 65.0 % - 80.0 % 60.0 % - 65.0 % Risk-free interest rate 0.7 % 0.3 % - 1.7 % 1.7 % - 2.6 % Expected dividend yield 0.0 % 0.0 % 0.0 % |
Summary of stock-based compensation expense | The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 4,027 $ 1,129 $ 536 Research and development 14,572 3,903 3,642 Sales and marketing 15,256 4,882 3,089 General and administrative 23,094 13,938 2,103 Total share-based compensation expense $ 56,949 $ 23,852 $ 9,370 |
Employee Share Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Summary of valuation assumptions of employee options at grant dates | The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows: Year Ended December 31, 2021 Expected term (years) 0.5 Expected volatility 56.9 % - 64.8 % Risk-free interest rate 0.1 % Expected dividend yield 0.0 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of changes in AOCI | The following table summarizes the changes in AOCI by component, net of tax, during the periods presented: Net Unrealized Net Unrealized Total (in thousands) Balance as of December 31, 2019 $ 35 $ — $ 35 Other comprehensive income (loss) before reclassifications ( 115 ) 1,239 1,124 Net realized losses (gains) reclassified from AOCI 11 ( 798 ) ( 787 ) Other comprehensive income (loss) ( 104 ) 441 337 Balance as of December 31, 2020 ( 69 ) 441 372 Other comprehensive income (loss) before reclassifications ( 191 ) 1,306 1,115 Net realized gains reclassified from AOCI ( 4 ) ( 872 ) ( 876 ) Other comprehensive income (loss) ( 195 ) 434 239 Balance as of December 31, 2021 $ ( 264 ) $ 875 $ 611 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Summary of components of the net loss before the provision for income taxes | The components of the net loss before income taxes were as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Israel $ ( 38,900 ) $ 2,949 $ ( 6,380 ) Foreign ( 28,725 ) ( 15,096 ) 2,614 Total $ ( 67,625 ) $ ( 12,147 ) $ ( 3,766 ) |
Summary of provision for income taxes | Income tax expense (benefit) was as follows: Year Ended December 31, 2021 2020 2019 (in thousands) Current: Israel $ ( 369 ) $ 369 $ — Foreign 549 ( 3,695 ) 1,522 Total current income tax expense (benefit) 180 ( 3,326 ) 1,522 Deferred: Israel ( 371 ) — — Foreign ( 3,231 ) 584 106 Total deferred income tax expense (benefit) ( 3,602 ) 584 106 Income tax expense (benefit) $ ( 3,422 ) $ ( 2,742 ) $ 1,628 |
Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense | A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows: Year Ended December 31, 2021 2020 2019 Theoretical income tax benefit 23 % 23 % 23 % PTE ( 5 ) 2 ( 15 ) Foreign tax rate differentials 1 12 2 Share-based compensation ( 4 ) ( 6 ) ( 26 ) Change in valuation allowance ( 6 ) 4 ( 3 ) Unrecognized tax benefits ( 3 ) ( 15 ) ( 7 ) Acquisition costs ( 1 ) ( 4 ) ( 11 ) Other — 7 ( 6 ) Total 5 % 23 % ( 43 )% |
Summary of components of the Company's deferred tax assets and liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2021 2020 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 12,743 $ 5,221 Research and development expenses 4,327 1,464 Accruals and reserves 1,528 412 Share-based compensation 4,565 1,130 Deferred revenue 2,190 1,403 Operating lease liabilities 2,398 — Issuance costs 1,405 2,810 Property and equipment — 14 Gross deferred tax assets 29,156 12,454 Valuation allowance ( 12,559 ) ( 7,854 ) Total deferred tax assets 16,597 4,600 Deferred tax liabilities: Intangible assets ( 5,594 ) ( 211 ) Deferred contract acquisition costs ( 2,607 ) ( 1,581 ) Operating lease ROU assets ( 2,273 ) — Property and equipment ( 84 ) — Gross deferred tax liabilities ( 10,558 ) ( 1,792 ) Net deferred tax assets $ 6,039 $ 2,808 |
Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions | A reconciliation of the beginning and ending balance of total unrecognized tax positions is as follows: Unrecognized Tax Benefits (in thousands) Balance - December 31, 2018 $ 531 Increase related to prior years’ tax positions 69 Increase related to current year’s tax positions 293 Decrease due to lapse of statutes of limitations ( 91 ) Balance - December 31, 2019 802 Increase related to prior years’ tax positions 637 Increase related to current year’s tax positions 1,368 Decrease due to lapse of statutes of limitations ( 69 ) Balance - December 31, 2020 2,738 Increase related to prior years’ tax positions 86 Decrease related to prior years’ tax positions ( 2 ) Increase related to current year’s tax positions 2,039 Decrease related to settlements with tax authorities ( 446 ) Decrease due to lapse of statutes of limitations ( 19 ) Balance - December 31, 2021 $ 4,396 |
Net Loss Per Share Attributab_2
Net Loss Per Share Attributable to Ordinary Shareholders (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net loss per share attributable to ordinary shareholders | The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented: Year Ended December 31, 2021 2020 2019 (in thousands, except share and per share data) Numerator: Net loss $ ( 64,203 ) $ ( 9,405 ) $ ( 5,394 ) Denominator: Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 94,783,082 46,488,225 27,130,209 Net loss per share attributable to ordinary shareholders, basic and diluted $ ( 0.68 ) $ ( 0.20 ) $ ( 0.20 ) |
Summary of shares excluded from the computation of diluted net loss per share attributable to ordinary shareholders | The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended December 31, 2021 2020 2019 Convertible preferred shares — 37,127,355 52,063,647 Outstanding share options 11,229,241 13,650,862 13,146,117 Unvested RSUs 2,331,607 209,090 — Share purchase rights under the ESPP 79,450 — — Issuable ordinary shares related to business combination 140,385 199,498 259,125 Total 13,780,683 51,186,805 65,468,889 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | |||
Dec. 31, 2021USD ($)Segment | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Jan. 01, 2021USD ($) | |
Asset impairment charges | $ 0 | $ 0 | $ 0 | |
Goodwill impairment charges | 0 | 0 | 0 | |
Long-lived assets impairment charges | 0 | 0 | 0 | |
Advertising costs | $ 5,800,000 | 2,700,000 | $ 1,100,000 | |
Number of operating segments | Segment | 1 | |||
Number of reportable segments | Segment | 1 | |||
Operating lease right-of-use assets | $ 25,999,000 | $ 0 | $ 21,900,000 | |
Operating lease liabilities | $ 27,307,000 | $ 22,100,000 | ||
Accounts Receivable [Member] | ||||
Concentration risk, Number of customer | no single customer | no single customer | ||
Total Revenue [Member] | ||||
Concentration risk, Number of customer | No single customer | No single customer | No single customer | |
Customer Concentration Risk [Member] | Minimum [Member] | Accounts Receivable [Member] | ||||
Percentage of account receivable | 10.00% | 10.00% | ||
Customer Concentration Risk [Member] | Minimum [Member] | Total Revenue [Member] | ||||
Percentage of account receivable | 10.00% | 10.00% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Property and Equipment (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Computer and software | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Furniture and office equipment | Maximum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 7 years |
Furniture and office equipment | Minimum [Member] | |
Property Plant And Equipment [Line Items] | |
Property and equipment useful life | 3 years |
Leasehold improvements | |
Property Plant And Equipment [Line Items] | |
Property and equipment, estimated useful lives | Shorter of remaining lease term or estimated useful life |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Intangible Assets (Detail) | 12 Months Ended |
Dec. 31, 2021 | |
Developed technology [Member] | Maximum [Member] | |
Intangible Assets [Line items] | |
Finite Lived Intangible Asset Useful Life | 6 years |
Developed technology [Member] | Minimum [Member] | |
Intangible Assets [Line items] | |
Finite Lived Intangible Asset Useful Life | 3 years |
Customer relationships [Member] | Maximum [Member] | |
Intangible Assets [Line items] | |
Finite Lived Intangible Asset Useful Life | 6 years |
Customer relationships [Member] | Minimum [Member] | |
Intangible Assets [Line items] | |
Finite Lived Intangible Asset Useful Life | 3 years |
Other intangible assets [Member] | |
Intangible Assets [Line items] | |
Finite Lived Intangible Asset Useful Life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Long Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long lived assets | $ 32,688 | $ 4,963 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long lived assets | 10,845 | 1,437 |
ISRAEL | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long lived assets | 18,165 | 3,018 |
Rest of world Member | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Total long lived assets | $ 3,678 | $ 508 |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred Revenue | $ 102.8 | $ 82.3 | $ 70.2 | |
Contract with Customer, Liability, Revenue Recognized | $ 83.8 | $ 73.7 | $ 51.9 | |
Revenue, Remaining Performance Obligation | $ 161.6 | |||
Revenue, Remaining Performance Obligation, Percentage | 84.00% | |||
Billed Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation | $ 147.1 | |||
Unbilled Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation | $ 14.5 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Table Presents Revenue as Follows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 206,683 | $ 150,827 | $ 104,716 |
Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
Subscription | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 140,398 | $ 105,358 | $ 75,486 |
Subscription | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 68.00% | 70.00% | 72.00% |
Selfmanaged Subscription [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 157,035 | $ 118,207 | $ 85,596 |
Selfmanaged Subscription [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 76.00% | 78.00% | 82.00% |
License [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 16,637 | $ 12,849 | $ 10,110 |
License [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 8.00% | 8.00% | 10.00% |
SaaS [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 49,648 | $ 32,620 | $ 19,120 |
SaaS [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 24.00% | 22.00% | 18.00% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue by Region Based on The Shipping Address of Customers as Follows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 206,683 | $ 150,827 | $ 104,716 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 100.00% | 100.00% | 100.00% |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 129,503 | $ 96,786 | $ 64,951 |
UNITED STATES | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 63.00% | 64.00% | 62.00% |
ISRAEL | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 4,543 | $ 2,837 | $ 1,927 |
ISRAEL | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 2.00% | 2.00% | 2.00% |
Rest of world [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 72,637 | $ 51,204 | $ 37,838 |
Rest of world [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 35.00% | 34.00% | 36.00% |
Revenue Recognition - Summary_3
Revenue Recognition - Summary of Table Represents a Rollforward of Deferred Contract Acquisition Costs (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Beginning balance | $ 8,196 | $ 5,989 | $ 3,590 |
Additions to deferred contract acquisition costs | 10,843 | 5,186 | 4,212 |
Amortization of deferred contract acquisition costs | (4,648) | (2,979) | (1,813) |
Ending balance | 14,391 | 8,196 | 5,989 |
Deferred contract acquisition costs (to be recognized in next 12 months) | 5,271 | 3,247 | 2,348 |
Deferred contract acquisition costs, noncurrent | 9,120 | 4,949 | 3,641 |
Total deferred contract acquisition costs | $ 14,391 | $ 8,196 | $ 5,989 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Short Term Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of short term investments [Line Items] | ||
Amortized cost | $ 353,108 | $ 433,664 |
Gross unrealized gains | 1 | 46 |
Gross unrealized losses | 265 | 115 |
Available for Sale Securities 1 | 352,844 | 433,595 |
Bank deposits [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 90,704 | 133,386 |
Available for Sale Securities 1 | 90,704 | 133,386 |
Certificates of deposit [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 10,802 | |
Gross unrealized gains | 20 | |
Gross unrealized losses | 1 | |
Available for Sale Securities 1 | 10,821 | |
Commercial paper [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 56,448 | 34,150 |
Gross unrealized gains | 0 | 3 |
Gross unrealized losses | 37 | 2 |
Available for Sale Securities 1 | 56,411 | 34,151 |
Corporate debt securities [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 109,212 | 128,694 |
Gross unrealized gains | 1 | 11 |
Gross unrealized losses | 151 | 82 |
Available for Sale Securities 1 | 109,062 | 128,623 |
Municipal securities [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 71,046 | 54,238 |
Gross unrealized gains | 0 | 7 |
Gross unrealized losses | 50 | 12 |
Available for Sale Securities 1 | 70,996 | 54,233 |
Government and agency debt [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 25,698 | 72,394 |
Gross unrealized gains | 0 | 5 |
Gross unrealized losses | 27 | 18 |
Available for Sale Securities 1 | 25,671 | 72,381 |
Marketable securities [Member] | ||
Schedule of short term investments [Line Items] | ||
Amortized cost | 262,404 | 300,278 |
Gross unrealized gains | 1 | 46 |
Gross unrealized losses | 265 | 115 |
Available for Sale Securities 1 | $ 262,140 | $ 300,209 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Investments, All Other Investments [Abstract] | |
Impairment loss | $ 0 |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | $ 21,670 | $ 111,080 |
Total financial assets | 21,670 | 111,080 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 175 | 274 |
Total financial assets | 354,209 | 434,617 |
Total financial liabilities | 21 | 16 |
Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 352,844 | 433,595 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 21,845 | 111,354 |
Total financial assets | 375,879 | 545,697 |
Total financial liabilities | 21 | 16 |
Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 352,844 | 433,595 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | 13 | 14 |
Prepaid Expenses and Other Current Assets [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | 13 | 14 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 891 | 468 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 891 | 468 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 43 | 2 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 43 | 2 |
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 16 | 16 |
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 16 | 16 |
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 5 | |
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 5 | |
Bank deposits | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 90,704 | 133,386 |
Bank deposits | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 90,704 | 133,386 |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 21,670 | 111,080 |
Money market funds | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 21,670 | 111,080 |
Certificates of deposit | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 274 | |
Certificates of deposit | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 10,821 | |
Certificates of deposit | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 274 | |
Certificates of deposit | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 10,821 | |
Commercial paper | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 56,411 | 34,151 |
Commercial paper | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 56,411 | 34,151 |
Corporate debt securities | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 109,062 | 128,623 |
Corporate debt securities | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 109,062 | 128,623 |
Municipal securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 175 | |
Municipal securities | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 70,996 | 54,233 |
Municipal securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 175 | |
Municipal securities | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 70,996 | 54,233 |
Government and agency debt | Level 2 | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 25,671 | 72,381 |
Government and agency debt | Fair Value | Short-term Investments | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Short-term investments | 25,671 | 72,381 |
Other Noncurrent Assets [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | 243 | 264 |
Other Noncurrent Assets [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | $ 243 | $ 264 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Level 3 - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | $ 0 | $ 0 |
Total financial liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging - Disclosure of Notional Amount of Derivatives By Hedging Designation (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 50,946 | $ 11,494 |
Foreign currency contracts [Member] | Derivatives designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | 45,971 | 10,264 |
Foreign currency contracts [Member] | Derivatives not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 4,975 | $ 1,230 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ 872 | $ 798 | $ 0 |
Derivatives not designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 345 | 62 | 137 |
Foreign Currency Contracts [Member] | Subscription–self-managed and SaaS [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 74 | 68 | 0 |
Foreign Currency Contracts [Member] | Research and development [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 504 | 426 | 0 |
Foreign Currency Contracts [Member] | Sales and marketing [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 120 | 141 | 0 |
Foreign Currency Contracts [Member] | General and administrative [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 166 | 163 | 0 |
Foreign Currency Contracts [Member] | Interest and other income, net [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | 8 | 0 | 0 |
Foreign Currency Contracts [Member] | Interest and other income, net [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ 345 | $ 62 | $ 137 |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 13,096 | $ 9,335 |
Less: accumulated depreciation and amortization | (6,407) | (4,372) |
Property and equipment, net | 6,689 | 4,963 |
Computer and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,955 | 4,079 |
Furniture and office equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 2,248 | 1,495 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 4,893 | $ 3,761 |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization expense | $ 2.8 | $ 2.1 | $ 1.3 |
Consolidated Balance Sheet Co_3
Consolidated Balance Sheet Components - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and benefits | $ 17,601 | $ 8,799 |
Withholding tax from employee equity transactions to be remitted to tax authorities | 701 | 9,186 |
Accrued expenses | 9,652 | 3,054 |
Accrued expenses and other current liabilities | $ 27,954 | $ 21,039 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | Jul. 19, 2021USD ($)Installmentshares | Feb. 28, 2019USD ($)shares | Aug. 31, 2021USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Business Acquisition [Line Items] | ||||||
Fair value of ordinary shares issued as consideration for business combination | $ 81,773 | $ 0 | $ 11 | |||
Payments to Acquire Businesses, Net of Cash Acquired | 195,752 | $ 0 | $ 20,860 | |||
Goodwill, Acquired During Period | 230,456 | |||||
Vdoo Connected Trust Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquistion percentage of voting capital obtained | 100.00% | |||||
Business acquisition total purchase consideration | $ 299,300 | |||||
Fair value of ordinary shares issued as consideration for business combination | $ 81,800 | |||||
Retention bonus payment period | Installment | 3 | |||||
RSU service period | 4 years | |||||
Payments to acquire business | $ 217,500 | |||||
Business combination purchase consideration settled through share issue | shares | 1,823,266 | |||||
Business combination holdback agreements additional shares issuable | shares | 110,932 | |||||
Business Combination Retention Bonus | $ 10,000 | |||||
Business combination total cash payments under holdback agreements | 13,200 | |||||
Net assets acquired | 305,048 | |||||
Vdoo Connected Trust Ltd. [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 30,000 | |||||
Upswift Ltd [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 9,500 | |||||
Identified intangible asset | 4,300 | |||||
Goodwill, Acquired During Period | 5,800 | |||||
Net liabilities assumed | $ 600 | |||||
Shippable Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business acquistion percentage of voting capital obtained | 100.00% | |||||
Business acquisition total purchase consideration | $ 21,200 | |||||
Holdback Release Period | 3 years | |||||
Business combination purchase consideration settled through share issue | shares | 1,488 | |||||
Business combination holdback agreements additional shares issuable | shares | 308,080 | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 20,900 | |||||
Business combination total cash payments under holdback agreements | 4,100 | |||||
Identified intangible asset | 4,000 | |||||
Business combination cash acquired | 300 | |||||
Business combination, goodwill not deductible for tax purpose | 15,700 | |||||
Net assets acquired | $ 1,200 | |||||
Maximum [Member] | Vdoo Connected Trust Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Holdback Release Period | 2 years | |||||
Minimum [Member] | Vdoo Connected Trust Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Holdback Release Period | 1 year | |||||
General and Administrative Expense [Member] | Vdoo Connected Trust Ltd. [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Business Combination, Acquisition Related Costs | $ 700 |
Business Combinations - Summary
Business Combinations - Summary of fair value of assets acquired and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Jul. 19, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 247,776 | $ 17,320 | $ 17,320 | |
Vdoo Connected Trust Ltd. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalent | $ 31,240 | |||
Other current assets | 943 | |||
Intangible assets | 45,500 | |||
Goodwill | 224,673 | |||
Other noncurrent assets | 2,692 | |||
Total assets acquired | 305,048 | |||
Current liabilites | 4,272 | |||
Noncurrent liabilities | 1,501 | |||
Total liabilities assumed | 5,773 | |||
Total Purchase Consideration | $ 299,275 |
Business Combination - Summary
Business Combination - Summary of Components of Identifiable Intangible Assets Acquired and their Estimated Useful Lives (Details) - Vdoo Connected Trust Ltd. [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Useful Life | 5 years |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful Life | 6 years |
Portion At Fair Value Disclosure [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 45,500 |
Portion At Fair Value Disclosure [Member] | Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Fair Value | 41,300 |
Portion At Fair Value Disclosure [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 4,200 |
Business Combination - Summar_2
Business Combination - Summary of Unaudited Pro Forma Information (Details) - Vdoo Connected Trust Ltd. [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 207,824 | $ 152,197 |
Net loss | $ 89,939 | $ 50,858 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Summary of changes in goodwill (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill, Beginning Balance | $ 17,320 |
Addition from acquisition | 230,456 |
Goodwill, Ending Balance | $ 247,776 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Intangible Assets [Line items] | ||
Gross Fair Value | $ 57,474 | $ 7,642 |
Accumulated Amortization | (9,494) | (3,595) |
Net Book Value | 47,980 | 4,047 |
Developed technology [Member] | ||
Intangible Assets [Line items] | ||
Gross Fair Value | 50,347 | 4,856 |
Accumulated Amortization | (7,011) | (2,064) |
Net Book Value | $ 43,336 | $ 2,792 |
Weighted- Average Remaining Useful Life | 4 years 3 months 18 days | 3 years 8 months 12 days |
Customer relationships [Member] | ||
Intangible Assets [Line items] | ||
Gross Fair Value | $ 5,541 | $ 1,200 |
Accumulated Amortization | (897) | (367) |
Net Book Value | $ 4,644 | $ 833 |
Weighted- Average Remaining Useful Life | 5 years 1 month 6 days | 4 years 2 months 12 days |
Other intangible assets [Member] | ||
Intangible Assets [Line items] | ||
Gross Fair Value | $ 1,586 | $ 1,586 |
Accumulated Amortization | (1,586) | (1,164) |
Net Book Value | $ 0 | $ 422 |
Weighted- Average Remaining Useful Life | 9 months 18 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Intangible Assets [Line items] | |||
Amortization expenses for intangible assets | $ 5.9 | $ 1.6 | $ 1.5 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Summary of Expected Future Amortization Expenses by Year Related to the Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2022 | $ 11,365 | |
2023 | 11,291 | |
2024 | 10,590 | |
2025 | 9,110 | |
2026 | 5,241 | |
Thereafter | 383 | |
Net Book Value | $ 47,980 | $ 4,047 |
Leases - Components of Operatin
Leases - Components of Operating Lease Expense (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Lease, Cost [Abstract] | |
Operating lease cost | $ 6,274 |
Short-term lease cost | 139 |
Variable lease cost | 375 |
Total operating lease cost | $ 6,788 |
Leases - Additional Information
Leases - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | |||
Operating Leases, Rent Expense, Net | $ 4.2 | $ 3.1 | |
Operating Lease, Weighted Average Remaining Lease Term | 3 years 10 months 24 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 0.90% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information related to Operating Lease (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Leases [Abstract] | |
Cash paid for operating leases | $ 5,709 |
ROU assets obtained in exchange for new operating lease liabilities | 2,653 |
Adjustment to ROU assets upon modification of existing lease | $ 4,969 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities - Schedule of Maturities of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Jan. 01, 2021 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2022 | $ 7,491 | |
2023 | 7,258 | |
2024 | 6,199 | |
2025 | 4,969 | |
2026 | 1,847 | |
Total operating lease payments | 27,764 | |
Less: imputed interest | (457) | |
Total operating lease liabilities | $ 27,307 | $ 22,100 |
Leases - Schedule of Minimum Le
Leases - Schedule of Minimum Lease Payments Under Operating Leases (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | |
2021 | $ 5,475 |
2022 | 5,931 |
2023 | 5,429 |
2024 | 4,607 |
2025 | 3,389 |
Thereafter | 803 |
Total | $ 25,634 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Outstanding Non-cancelable Purchase Obligations (Detail) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 14,084 |
2023 | 24,297 |
2024 | 18,000 |
2025 | 25,849 |
Total | $ 82,230 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Loss contingency estimate of possible loss | $ 2.6 |
Grants [Member] | Israeli Innovation Authority [Member] | |
Maximum additional payments as a grant recipient | $ 6 |
Shareholders' Equity and Equi_3
Shareholders' Equity and Equity Incentive Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands | Jan. 01, 2021shares | Aug. 31, 2020USD ($)shares | Dec. 31, 2011 | Sep. 30, 2020shares | Dec. 31, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / shares | Dec. 31, 2019USD ($)$ / sharesshares | Dec. 31, 2021₪ / shares | Dec. 31, 2021USD ($)shares | Dec. 31, 2020₪ / sharesshares |
Preferred stock authorized | 50,000,000 | 50,000,000 | ||||||||
Ordinary shares authorized | 500,000,000 | 500,000,000 | ||||||||
Preferred stock par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||||||||
Common stock par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | ||||||||
Dividends declared | $ / shares | $ 0 | |||||||||
Total intrinsic value of options exercised | $ | $ 118,675 | $ 96,000 | $ 14,000 | |||||||
Unrecognized share-based compensation cost | $ | $ 177,000 | |||||||||
Unrecognized share based compensation cost expected to be recognised period | 3 years 2 months 12 days | |||||||||
2020 Plan [Member] | ||||||||||
Share-based payment arrangement, increase of authorized shares | 5,307,818 | |||||||||
Share options expiration period | 10 years | |||||||||
Ordinary shares to be reserved for grants of awards | 9,100,000 | |||||||||
Maximum number of shares to be added to the share based compensation arrangement plans | 15,309,367 | |||||||||
Share-based payment arrangement, increase of authorized shares | 9,100,000 | |||||||||
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares | 5.00% | |||||||||
Employee Share Purchase Plan [Member] | ||||||||||
Share-based payment arrangement, increase of authorized shares | 922,570 | |||||||||
Ordinary shares to be reserved for grants of awards | 2,100,000 | |||||||||
Share-based payment arrangement, increase of authorized shares | 2,100,000 | |||||||||
Voting power | 5.00% | |||||||||
Accrued rate of rights to purchase ordinary shares under ESPPlans | $ | $ 25,000 | |||||||||
Percentage of eligible compensation | 15.00% | |||||||||
Maximum number of shares per employee | 1,250 | |||||||||
Purchase price of the shares on the offering period percentage | 85.00% | |||||||||
Employee share purchase plan offering date | March 1 and September 1 | |||||||||
Number of shares purchased | 94,638 | |||||||||
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares | 1.00% | |||||||||
Employee Stock Option [Member] | ||||||||||
Weighted average grant date fair value of options granted | $ / shares | $ 42 | $ 20.13 | $ 16.05 | |||||||
Employee Stock Option [Member] | 2011 Plan [Member] | ||||||||||
Share options vesting period | 5 years | |||||||||
Share options expiration period | 10 years | |||||||||
Ordinary shares to be reserved for grants of awards | 20,605,700 | |||||||||
Ordinary shares available for future issuance | 1,000,821 | |||||||||
Restricted Stock [Member] | ||||||||||
Unvested RSUs, Granted | 3,623,303 | |||||||||
Unvested RSUs, Vested | 643,980 | |||||||||
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | $ 45.97 | |||||||||
RSUs unvested | 3,376,569 | 818,945 | ||||||||
Restricted Stock Units (RSUs) [Member] | ||||||||||
Fair value of RSU | $ | $ 23,400 | $ 6,100 | ||||||||
Unvested RSUs, Granted | 0 | |||||||||
Unvested RSUs, Vested | 0 | |||||||||
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | $ 47.01 | |||||||||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||||||||
Unvested RSUs, Granted | 667,595 | |||||||||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche One [Member] | Chief Executive Officer [Member] | ||||||||||
RSUs unvested | 138,400 | |||||||||
Restricted Stock Units (RSUs) [Member] | Share-based Payment Arrangement, Tranche Two [Member] | Chief Executive Officer [Member] | ||||||||||
RSUs unvested | 529,195 |
Shareholders' Equity and Equi_4
Shareholders' Equity and Equity Incentive Plans - Summary of Ordinary Shares Reserved for Future Issuance (Detail) | Dec. 31, 2021shares |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 29,071,562 |
2020 Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 12,742,345 |
Employee Stock Purchase Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 2,927,932 |
Employee Stock Option [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 9,865,601 |
Restricted Stock [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 3,376,569 |
Ordinary Shares [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 159,115 |
Shareholders' Equity and Equi_5
Shareholders' Equity and Equity Incentive Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Outstanding Share Options, Beginning balance | 13,075,489 | ||
Outstanding Share Options, Granted | 30,000 | ||
Outstanding Share Options, Exercised | (2,538,063) | ||
Outstanding Share Options, Forfeited | (701,825) | ||
Outstanding Share Options, Ending balance | 9,865,601 | 13,075,489 | |
Outstanding Share Options, Exercisable | 5,608,245 | ||
Weighted Average Exercise Price Per Share, Beginning balance | $ 6.50 | ||
Weighted Average Exercise Price Per Share, Granted | 65.96 | ||
Weighted Average Exercise Price Per Share, Exercised | 2.69 | ||
Weighted Average Exercise Price Per Share, Forfeited | 14.47 | ||
Weighted Average Exercise Price Per Share, Ending balance | 7.10 | $ 6.50 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 3.71 | ||
Weighted Average Remaining Contractual Life | 6 years | 6 years 9 months 18 days | |
Weighted Average Remaining Contractual Life, Exercisable | 4 years 10 months 24 days | ||
Aggregate Intrinsic Value, Beginning balance | $ 736,478 | ||
Aggregate Intrinsic Value, Exercised | 118,675 | $ 96,000 | $ 14,000 |
Aggregate Intrinsic Value, Ending balance | 224,538 | $ 736,478 | |
Aggregate Intrinsic Value, Exercisable | $ 146,093 |
Shareholders' Equity and Equi_6
Shareholders' Equity and Equity Incentive Plans - Summary of Restricted Ordinary Shares (Detail) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unvested RSUs, Beginning balance | shares | 818,945 |
Unvested RSUs, Granted | shares | 3,623,303 |
Unvested RSUs, Vested | shares | (643,980) |
Unvested RSUs, Canceled/Forfeited | shares | (421,699) |
Unvested RSUs, Ending balance | shares | 3,376,569 |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ / shares | $ 48.38 |
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | 45.97 |
Weighted Average Grant Date Fair Value Per Share, Vested | $ / shares | 43.04 |
Weighted Average Grant Date Fair Value Per Share, Canceled/Forfeited | $ / shares | 54.66 |
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ / shares | $ 46.03 |
Shareholders' Equity and Equi_7
Shareholders' Equity and Equity Incentive Plans - Summary of Valuation Assumptions of Employee Options at the Grant Dates (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 term (years) | 6 years 6 months | 6 years 6 months | |
Expected volatility | 70.00% | ||
Expected volatility, Maximum | 80.00% | 65.00% | |
Expected volatility, Minimum | 65.00% | 60.00% | |
Risk-free interest rate | 0.70% | ||
Risk-free interest rate, Maximum | 1.70% | 2.60% | |
Risk-free interest rate, Minimum | 0.30% | 1.70% | |
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Employee Share Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 months | ||
Expected volatility, Maximum | 64.80% | ||
Expected volatility, Minimum | 56.90% | ||
Risk-free interest rate | 0.10% | ||
Expected dividend yield | 0.00% | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years 6 months | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term (years) | 6 years 1 month 6 days |
Shareholders' Equity and Equi_8
Shareholders' Equity and Equity Incentive Plans - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 56,949 | $ 23,852 | $ 9,370 |
Cost of revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 4,027 | 1,129 | 536 |
Research and development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 14,572 | 3,903 | 3,642 |
Sales and marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 15,256 | 4,882 | 3,089 |
General and administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 23,094 | $ 13,938 | $ 2,103 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Summary of Changes In AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | $ 372 | $ 35 | |
Other comprehensive income (loss) before reclassifications | 1,115 | 1,124 | |
Net realized losses (gains) reclassified from AOCI | (876) | (787) | |
Other comprehensive income | 239 | 337 | $ 35 |
Ending Balance | 611 | 372 | 35 |
Net Unrealized Gains (losses) on Available-for-Sale Marketable Securities [Member] | |||
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | (69) | 35 | |
Other comprehensive income (loss) before reclassifications | (191) | (115) | |
Net realized losses (gains) reclassified from AOCI | (4) | 11 | |
Other comprehensive income | (195) | (104) | |
Ending Balance | (264) | (69) | 35 |
Net Unrealized Gains on Derivatives Designated as Hedging Instruments [Member] | |||
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | 441 | 0 | |
Other comprehensive income (loss) before reclassifications | 1,306 | 1,239 | |
Net realized losses (gains) reclassified from AOCI | (872) | (798) | |
Other comprehensive income | 434 | 441 | |
Ending Balance | $ 875 | $ 441 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands, ₪ in Millions | 12 Months Ended | |||||
Dec. 31, 2021ILS (₪) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2018USD ($) | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.00% | 23.00% | 23.00% | 23.00% | ||
Unrecognized tax benefits | $ 2,738 | $ 802 | $ 4,396 | $ 531 | ||
Unrecognized tax benefits that would impact effective tax rate | 3,800 | |||||
Increase (decrease) in the valuation allowance | $ 4,700 | $ 3,300 | $ 100 | |||
Effective Capital Gains Tax Rate on the Sale of Preferred Intangible Asset | 12.00% | 12.00% | ||||
Effective Income Tax Rate Reconciliation, Percent | 5.00% | 5.00% | 23.00% | (43.00%) | ||
Percentage of federal net operating loss carryforwards | 80.00% | 80.00% | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense | $ 100 | $ 100 | ||||
Maximum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Withholding tax rate for dividends paid | 20.00% | 20.00% | ||||
Minimum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Assets initially purchased from foreign resident | ₪ | ₪ 200 | |||||
Withholding tax rate for dividends paid | 4.00% | 4.00% | ||||
Israel Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23.00% | 23.00% | ||||
Operating Loss Carryforwards | 67,500 | |||||
Preferred Technology Enterprises [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 12.00% | 12.00% | ||||
Annual Income Percentage Derived From Exports | 25.00% | 25.00% | ||||
Preferred Technology Enterprises [Member] | Maximum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Consolidated revenue of parent and subsidiary | ₪ | ₪ 10,000 | |||||
Federal Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards | 18,400 | |||||
State and Local Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards | $ 37,700 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of the net loss before the provision for income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Israel | $ (38,900) | $ 2,949 | $ (6,380) |
Foreign | (28,725) | (15,096) | 2,614 |
Loss before income taxes | $ (67,625) | $ (12,147) | $ (3,766) |
Income Taxes - Summary of provi
Income Taxes - Summary of provision for income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Current: | |||
Israel | $ (369) | $ 369 | $ 0 |
Foreign | 549 | (3,695) | 1,522 |
Total current income tax expense (benefit) | 180 | (3,326) | 1,522 |
Deferred: | |||
Israel | (371) | 0 | 0 |
Foreign | (3,231) | 584 | 106 |
Total deferred income tax expense (benefit) | (3,602) | 584 | 106 |
Total provision for income taxes | $ (3,422) | $ (2,742) | $ 1,628 |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense (Detail) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Theoretical income tax benefit, Rate | 23.00% | 23.00% | 23.00% |
PTE | (5.00%) | 2.00% | (15.00%) |
Foreign tax rate differentials, Rate | 1.00% | 12.00% | 2.00% |
Share-based compensation, Rate | (4.00%) | (6.00%) | (26.00%) |
Change in valuation allowance, Rate | (6.00%) | 4.00% | (3.00%) |
Unrecognized tax benefits, Rate | (3.00%) | (15.00%) | (7.00%) |
Acquisition costs, Rate | (1.00%) | (4.00%) | (11.00%) |
Other, Rate | 0.00% | 7.00% | (6.00%) |
Total, Rate | 5.00% | 23.00% | (43.00%) |
Income Taxes - Summary of com_2
Income Taxes - Summary of components of the Company's deferred tax assets and liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 12,743 | $ 5,221 |
Research and development expenses | 4,327 | 1,464 |
Accruals and reserves | 1,528 | 412 |
Share-based compensation | 4,565 | 1,130 |
Deferred revenue | 2,190 | 1,403 |
Operating lease liabilities | 2,398 | 0 |
Issuance costs | 1,405 | 2,810 |
Property and equipment | 0 | 14 |
Gross deferred tax assets | 29,156 | 12,454 |
Valuation allowance | (12,559) | (7,854) |
Total deferred tax assets | 16,597 | 4,600 |
Deferred tax liabilities: | ||
Intangible assets | (5,594) | (211) |
Deferred contract acquisition costs | (2,607) | (1,581) |
Operating lease ROU assets | (2,273) | 0 |
Property and equipment | (84) | 0 |
Gross deferred tax liabilities | (10,558) | (1,792) |
Net deferred taxes | $ 6,039 | $ 2,808 |
Income Tax - Summary of reconci
Income Tax - Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 2,738 | $ 802 | $ 531 |
Increase Related to Prior Years Tax Positions | 86 | 637 | 69 |
Decrease Related to Prior Year's Tax Positions | (2) | ||
Increase Related To Current Years Tax Positions | 2,039 | 1,368 | 293 |
Decrease related to settlements with tax authorities | (446) | ||
Decrease Due To Lapse of Statutes of Limitations | (19) | (69) | (91) |
Unrecognized Tax Benefits, Ending Balance | $ 4,396 | $ 2,738 | $ 802 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Benefit Plans [Line items] | |||
Employee benefit plans, matched percentage | 50.00% | 100.00% | |
Employee benefit plans, percentage of contribution eligible | 6.00% | 3.00% | |
Employee benefit plans, expenses recorded | $ 1.1 | $ 0.8 | $ 0.6 |
Israeli Severance Pay [Member] | |||
Employee Benefit Plans [Line items] | |||
Employee benefit plans, percentage of eligible monthly deposits | 8.33% | ||
Employee benefit plans, severance expenses | $ 3.6 | $ 2.2 | $ 1.6 |
Net Loss Per Share Attributab_3
Net Loss Per Share Attributable to Ordinary Shareholders - Summary of Computation of Basic and Diluted Net Loss Per Share Attributable to Ordinary Shareholders (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss | $ (64,203) | $ (9,405) | $ (5,394) |
Denominator: | |||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted | 94,783,082 | 46,488,225 | 27,130,209 |
Net loss per share attributable to ordinary shareholders, basic and diluted | $ (0.68) | $ (0.20) | $ (0.20) |
Net Loss Per Share Attributab_4
Net Loss Per Share Attributable to Ordinary Shareholders - Summary of Shares Excluded From the Computation of Diluted Net Loss Per Share Attributable to Ordinary Shareholders (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 13,780,683 | 51,186,805 | 65,468,889 |
Convertible preferred shares [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 0 | 37,127,355 | 52,063,647 |
Outstanding share options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 11,229,241 | 13,650,862 | 13,146,117 |
Unvested RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 2,331,607 | 209,090 | 0 |
Share purchase rights under the ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 79,450 | 0 | 0 |
Issuable ordinary shares related to business combination [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 140,385 | 199,498 | 259,125 |