Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Aug. 04, 2023 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40048 | |
Entity Registrant Name | Innovid Corp. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 87-3769599 | |
Entity Address, Address Line One | 30 Irving Place, | |
Entity Address, Address Line Two | 12th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10003 | |
City Area Code | 212 | |
Local Phone Number | 966-7555 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 139,303,254 | |
Entity Central Index Key | 0001835378 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Common stock, par value $0.0001 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common stock, par value $0.0001 per share | |
Trading Symbol | CTV | |
Security Exchange Name | NYSE | |
Warrants to purchase one share of Common stock, each at an exercise price of $11.50 per share | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Warrants to purchase one share of Common stock, each at an exercise price of $11.50 per share | |
Trading Symbol | CTVWS | |
Security Exchange Name | NYSE |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and cash equivalents | $ 43,384 | $ 37,541 |
Short-term bank deposits | 0 | 10,000 |
Trade receivables, net (allowance for credit losses of $330 and $65 at June 30, 2023, and December 31, 2022, respectively) | 43,238 | 43,653 |
Prepaid expenses and other current assets | 4,123 | 2,640 |
Total current assets | 90,745 | 93,834 |
Long-term deposit | 260 | 277 |
Long-term restricted deposits | 396 | 430 |
Property and equipment, net | 18,959 | 14,322 |
Goodwill | 102,473 | 116,976 |
Intangible assets, net | 27,659 | 29,918 |
Operating lease right of use asset | 2,008 | 2,910 |
Other non-current assets | 834 | 938 |
Total non-current assets | 152,589 | 165,771 |
TOTAL ASSETS | 243,334 | 259,605 |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
Trade payables | 4,421 | 3,361 |
Employees and payroll accruals | 10,969 | 10,165 |
Lease liabilities - current portion | 1,611 | 2,186 |
Accrued expenses and other current liabilities | 5,194 | 5,474 |
Total current liabilities | 22,195 | 21,186 |
Long-term debt | 20,000 | 20,000 |
Lease liabilities - non-current portion | 1,081 | 1,636 |
Other non-current liabilities | 9,461 | 6,554 |
Warrants liability | 1,022 | 4,301 |
Total non-current liabilities | 31,564 | 32,491 |
TOTAL LIABILITIES | 53,759 | 53,677 |
COMMITMENTS AND CONTINGENT LIABILITIES (Note 7) | ||
Common stock: $0.0001 par value - Authorized: 500,000,000 at June 30, 2023, and December 31, 2022; Issued and outstanding: 138,737,104 and 133,882,414 at June 30, 2023, and December 31, 2022, respectively | 13 | 13 |
Additional paid-in capital | 367,970 | 356,801 |
Accumulated deficit | (178,408) | (150,886) |
Total stockholders’ equity | 189,575 | 205,928 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 243,334 | $ 259,605 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trade receivables, allowance for doubtful receivables | $ 330 | $ 65 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, shares issued (in shares) | 138,737,104 | 133,882,414 |
Common stock, shares outstanding (in shares) | 138,737,104 | 133,882,414 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | ||
Income Statement [Abstract] | |||||
Revenues | $ 34,546 | $ 33,088 | $ 65,031 | $ 58,950 | |
Cost of revenues | [1] | 8,591 | 7,351 | 16,856 | 13,277 |
Research and development | [1] | 6,876 | 9,710 | 13,993 | 16,964 |
Sales and marketing | [1] | 11,460 | 14,320 | 23,097 | 24,671 |
General and administrative | [1] | 8,924 | 9,955 | 18,574 | 21,410 |
Depreciation and amortization | 2,064 | 926 | 4,094 | 1,599 | |
Goodwill impairment | 14,503 | 0 | 14,503 | 0 | |
Operating loss | (17,872) | (9,174) | (26,086) | (18,971) | |
Finance income, net | (248) | (13,306) | (2,723) | (15,617) | |
Loss before taxes | (17,624) | 4,132 | (23,363) | (3,354) | |
Taxes on income | 1,335 | (168) | 4,159 | (205) | |
Net (loss) income | (18,959) | 4,300 | (27,522) | (3,149) | |
Net (loss) income attributable to common stockholders, basic | (18,959) | 4,300 | (27,522) | (3,149) | |
Net (loss) income attributable to common stockholders, diluted | $ (18,959) | $ 4,300 | $ (27,522) | $ (3,149) | |
Net (loss) income per stock attributable to common stockholders | |||||
Basic (in dollars per share) | $ (0.14) | $ 0.03 | $ (0.20) | $ (0.02) | |
Diluted (in dollars per share) | $ (0.14) | $ 0.03 | $ (0.20) | $ (0.02) | |
Weighted-average number of stock used in computing net (loss) income per stock attributable to common stockholders | |||||
Basic (in shares) | 137,643,910 | 132,152,652 | 134,296,569 | 128,220,893 | |
Diluted (in shares) | 137,643,910 | 139,988,123 | 134,296,569 | 128,220,893 | |
[1]Exclusive of depreciation, amortization and goodwill impairment presented separately. |
CONDENSED STATEMENTS OF CHANGES
CONDENSED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid-in capital | Accumulated deficit |
Beginning balance (in shares) at Dec. 31, 2021 | 119,017,380 | |||
Beginning balance at Dec. 31, 2021 | $ 161,255 | $ 12 | $ 293,719 | $ (132,476) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Common stocks and equity awards issued for acquisition of TVS (in shares) | 11,549,465 | |||
Common stock and equity awards issued for acquisition of TVS | 47,152 | $ 1 | 47,151 | |
Stock-based compensation | 1,496 | 1,496 | ||
Stock options exercised (in shares) | 1,521,927 | |||
Stock options exercised | 462 | 462 | ||
Net (loss) income | (7,449) | (7,449) | ||
Ending balance (in shares) at Mar. 31, 2022 | 132,088,772 | |||
Ending balance at Mar. 31, 2022 | 202,916 | $ 13 | 342,828 | (139,925) |
Beginning balance (in shares) at Dec. 31, 2021 | 119,017,380 | |||
Beginning balance at Dec. 31, 2021 | 161,255 | $ 12 | 293,719 | (132,476) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | (3,149) | |||
Ending balance (in shares) at Jun. 30, 2022 | 132,411,715 | |||
Ending balance at Jun. 30, 2022 | 212,018 | $ 13 | 347,630 | (135,625) |
Beginning balance (in shares) at Mar. 31, 2022 | 132,088,772 | |||
Beginning balance at Mar. 31, 2022 | 202,916 | $ 13 | 342,828 | (139,925) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 4,628 | 4,628 | ||
Stock options exercised (in shares) | 322,943 | |||
Stock options exercised | 174 | 174 | ||
Net (loss) income | 4,300 | 4,300 | ||
Ending balance (in shares) at Jun. 30, 2022 | 132,411,715 | |||
Ending balance at Jun. 30, 2022 | $ 212,018 | $ 13 | 347,630 | (135,625) |
Beginning balance (in shares) at Dec. 31, 2022 | 133,882,414 | 133,882,414 | ||
Beginning balance at Dec. 31, 2022 | $ 205,928 | $ 13 | 356,801 | (150,886) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 4,897 | 4,897 | ||
Stock options exercised and RSUs vested (in shares) | 2,734,320 | |||
Stock options exercised and RSUs vested | 250 | 250 | ||
Net (loss) income | (8,563) | (8,563) | ||
Ending balance (in shares) at Mar. 31, 2023 | 136,616,734 | |||
Ending balance at Mar. 31, 2023 | $ 202,512 | $ 13 | 361,948 | (159,449) |
Beginning balance (in shares) at Dec. 31, 2022 | 133,882,414 | 133,882,414 | ||
Beginning balance at Dec. 31, 2022 | $ 205,928 | $ 13 | 356,801 | (150,886) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Net (loss) income | $ (27,522) | |||
Ending balance (in shares) at Jun. 30, 2023 | 138,737,104 | 138,737,104 | ||
Ending balance at Jun. 30, 2023 | $ 189,575 | $ 13 | 367,970 | (178,408) |
Beginning balance (in shares) at Mar. 31, 2023 | 136,616,734 | |||
Beginning balance at Mar. 31, 2023 | 202,512 | $ 13 | 361,948 | (159,449) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||
Stock-based compensation | 5,658 | 5,658 | ||
Stock options exercised and RSUs vested (in shares) | 2,120,370 | |||
Stock options exercised and RSUs vested | 364 | 364 | ||
Net (loss) income | $ (18,959) | (18,959) | ||
Ending balance (in shares) at Jun. 30, 2023 | 138,737,104 | 138,737,104 | ||
Ending balance at Jun. 30, 2023 | $ 189,575 | $ 13 | $ 367,970 | $ (178,408) |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Cash flows from operating activities: | ||
Net loss | $ (27,522) | $ (3,149) |
Adjustments to reconcile net loss to net cash used in operating activities: | ||
Depreciation and amortization | 4,094 | 1,599 |
Goodwill impairment | 14,503 | 0 |
Stock-based compensation | 9,865 | 5,634 |
Change in fair value of warrants | (3,279) | (15,946) |
Changes in operating assets and liabilities | ||
Decrease / (increase) in trade receivables, net | 415 | (4,624) |
Increase in prepaid expenses and other current assets | (1,390) | (747) |
Decrease in operating lease right of use assets | 902 | 872 |
Increase / (decrease) in trade payables | 1,060 | (321) |
Increase in employees and payroll accruals | 804 | 1,044 |
Decrease in operating lease liabilities | (1,130) | (1,208) |
Increase in accrued expenses and other current liabilities | 2,626 | 945 |
Net cash provided by / (used in) operating activities | 948 | (15,901) |
Cash flows from investing activities: | ||
Acquisition of business, net of cash acquired | 0 | (99,568) |
Internal use software capitalization | (5,591) | (3,516) |
Purchase of property and equipment | (189) | (221) |
Withdrawal of short-term bank deposits | 10,000 | 0 |
Increase in deposits | 27 | 32 |
Net cash provided by / (used in) investing activities | 4,247 | (103,273) |
Cash flows from financing activities: | ||
Proceeds from loans | 10,000 | 9,000 |
Repayment of loans | (10,000) | 0 |
Payment of SPAC merger transaction costs | 0 | (3,185) |
Proceeds from exercise of options | 614 | 636 |
Net cash provided by financing activities | 614 | 6,451 |
Increase (decrease) in cash, cash equivalents, and restricted cash | 5,809 | (112,723) |
Cash, cash equivalents, and restricted cash at the beginning of the period | 37,971 | 157,158 |
Cash, cash equivalents, and restricted cash at the end of the period | 43,780 | 44,435 |
Supplemental disclosure of cash flows activities: | ||
Income taxes paid, net of tax refunds | 879 | 363 |
Interest | 782 | 137 |
Non-cash transactions | ||
Business combination consideration paid in stock | 0 | 47,152 |
Reconciliation of cash, cash equivalents, and restricted cash reported within the condensed consolidated balance sheets | ||
Cash and cash equivalents | 43,384 | 44,024 |
Long-term restricted deposits | 396 | 411 |
Total cash, cash equivalents, and restricted cash shown in the condensed consolidated statements of cash flows | $ 43,780 | $ 44,435 |
DESCRIPTION OF BUSINESS
DESCRIPTION OF BUSINESS | 6 Months Ended |
Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS | DESCRIPTION OF BUSINESS Innovid Corp. together with its consolidated subsidiaries, the “Company” or “Innovid”, is a leading independent software platform that provides an ad serving and creative personalization platform for the creation, delivery, and measurement of TV ads across connected TV (“CTV”), mobile TV and desktop TV environments to advertisers, publishers and media agencies. Innovid Corp. was originally incorporated as ION Acquisition Corp. 2 Ltd. (“ION”), a special purpose acquisition company, on November 23, 2020 and Innovid Corp. was the surviving entity following the completion of its merger with ION on November 30, 2021 (the “ION Transaction”). On February 28, 2022, the Company completed the acquisition of TV Squared Limited (“TVS”, together with ION’s Transaction, the “Transactions”) by way of stock purchase agreement (“Stock Purchase Agreement”). The Company acquired all of the equity of TVSquared for an aggregate amount of $100,000 in cash, 11,549,465 shares of the Company common stock at fair value of $3.80 per share and the issuance of 949,893 fully vested stock options of the Company at a weighted average fair value of $3.49, subject to certain adjustments as defined in the Stock Purchase Agreement. Innovid Corp.’s common stock and warrants are trading on the NYSE under the symbols “CTV” and “CTV.WS,” respectively, since December 1, 2021. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with US GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative US GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2022, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s 2022 Annual Report on Form 10-K. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2022, have been applied consistently in these unaudited interim condensed consolidated financial statements, unless otherwise stated. Use of Estimates The preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Accounting Policies Software development costs Software development costs, which are included in property and equipment, net, consists of capitalized costs related to the purchase and development of internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software. Any costs incurred for upgrades and functionality enhancements of the software are also capitalized. Once this software is ready for use in providing the Company's services, these costs are amortized on a straight-line basis over the estimated useful life of the software, which is three years. The amortization is presented within depreciation and amortization in the condensed consolidated statements of operations. During the three and six months ended June 30, 2023 (unaudited), the Company capitalized $2,825 and $6,281, respectively, and during the three and six months ended June 30, 2022 (unaudited), the Company capitalized $2,335 and $4,006, respectively, related to internal-use software cost. Impairment of long-lived assets Long-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. During the three and six months ended June 30, 2023 (unaudited), the Company tested its long-lived assets for recoverability and concluded that no impairment should be recognized. Goodwill and acquired intangible assets Goodwill and acquired intangible assets have been recorded in the Company's financial statements resulting from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is subject to an annual impairment test. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company currently has one reporting unit. ASC 350, Intangibles—Goodwill and other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. During the three months ended June 30, 2023, the Company recorded Goodwill impairment in the amount of $14,503. Refer to Note 3 for further details. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships, acquired technology and trade name are being amortized over the estimated useful life of approximately 11 years, 6 years, and 4 years, respectively, using the straight-line amortization method. The amortization of customer relationships, acquired technology and trade names, is presented within depreciation and amortization in the condensed consolidated statements of operations. Fair value of financial instruments The Company applies a fair value framework to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, restricted deposits, trade receivables, net, trade payables, employees, payroll accruals, accrued expenses and other current liabilities and current portion of long-term debts. Their historical carrying amounts represent the approximate fair value due to the short-term maturities of these instruments. The Company’s investments in money market funds are classified as cash equivalents and measured at fair value. The Company measures its warrant liability at fair value. The goodwill impairment recorded in the second quarter of 2023 was estimated using the Company's stock price, a Level 1 input, adjusted for an estimated control premium. The following tables present information about the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2023 (Unaudited) Level 1 Level 2 Level 3 Assets: Money market funds $ 36,323 $ — $ — Liabilities: Warrants liability $ 1,022 $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 18,948 $ — $ — Certificates of deposit — 20,000 — Liabilities: Warrants liability $ 1,265 $ — $ 3,036 The change in the fair value of the Level 3 warrant liability is summarized below: June 30, December 31, June 30, 2023 2022 2022 (Unaudited) (Unaudited) Beginning of the period $ 3,036 $ 15,462 $ 15,462 Change in fair value (2,330) (12,426) (13,132) Transfer to level 1 (706) — — End of the period $ — $ 3,036 $ 2,330 As of June 30, 2023, the Company’s warrant liability includes the Warrants (refer to Note 5), that were originally issued in connection with ION’s initial public offering, the “ION IPO,” which were transferred to the Company as part of the ION’s Transaction. The Company’s Warrants are recorded on the balance sheet at fair value with changes in fair value recognized through earnings. This valuation is subject to re-measurement at each balance sheet date. With each re-measurement the valuation will be adjusted to fair value, with the change in fair value recognized in the Company’s statement of operations. The Company has determined that the fair value of the Public Warrants and Transferred Private Warrants (refer to Note 5) Warrants , at the balance sheet date is determined by the closing price of the Company’s warrants, and are within Level 1 of the fair value hierarchy. The closing price of the Public Warrants and Transferred Private Warrants was $0.10 as of June 30, 2023 the price for Public Warrants was $0.40 as of December 31, 2022. The Transferred Private Warrants are no longer classified as Level 3 as of June 30, 2023. Refer to Note 5, Warrants for further discussion . Gains and losses from the remeasurement of the Public and Private Warrants’ liability is recognized in finance income, net in the condensed consolidated statements of operations. Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instruments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect these estimates. Concentrations of credit risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, deposits and trade receivables, net. Most of the Company’s cash and cash equivalents are invested in deposits with major banks in the US and Israel. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. The Company’s trade receivables, net is mainly derived from sales to customers located in the US, APAC, EMEA, and LATAM. The Company mitigates its credit risks by performing an ongoing credit evaluations of its customers’ financial conditions. The Company has no off-balance-sheet concentration of credit risk such as foreign exchange contracts, option contracts or other foreign hedging arrangements. One of the Company’s customers accounted for more than 10% of the Company’s total revenues during the three and six months ended June 30, 2023. Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Customer A 16 % *) 16 % *) *) less than 10% Revenue recognition Most of the Company’s revenues are derived from providing Ad serving solutions to advertisers, media agencies and publishers. The services focus on standard, interactive and data driven digital video advertising. Ad serving services relate to utilizing Innovid’s platform to serve advertising impressions to various digital publishers across CTV, mobile TV, desktop TV, display and other channels. The Company also provides measurement services to advertisers and agencies, streaming platforms and publishers. The measurement service provides analytics and the ability to track performance of advertising campaigns. The measurement service provides insights into the effectiveness of TV and digital advertising. The Company also provides creative services for the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenues related to ad serving services are recognized when impressions are delivered. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenues related to the measurement services platform are recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenues for these measurement services are recognized over the service period. Revenues related to creative projects are recognized at a point in time when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable consist primarily of receivables related to providing ad serving, measurement and creative services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be canceled without cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Deferred revenues represent mostly unrecognized fees billed or collected for measurement platform services. Deferred revenues are recognized as (or when) we perform under the contract. Ad serving services were 77.3% and 78.4% of the Company’s revenues for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), respectively and were 77.2% and 83.4% of the Company’s revenues for the six months ended June 30, 2023 (unaudited) and 2022 (unaudited). Measurement services were 22.7% and 21.6% for the three months ended June 30, 2023 (unaudited) and June 30, 2022 (unaudited), respectively and were 22.8% and 16.6% of the Company’s revenues for the six months ended June 30, 2023 (unaudited) and 2022 (unaudited). Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. Generally, the commissions are commensurate. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. If commissions are not commensurate, the Company capitalizes these commissions. Capitalized commission costs were immaterial for the three and six months ended June 30, 2023 (unaudited) and June 30, 2022 (unaudited). Trade receivable, net The Company records trade receivable for amounts invoiced and yet unbilled invoices. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's condensed consolidated statements of operations. Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the “US Tax Act.” The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations and the preparation and analysis of information not previously relevant or regularly produced. The US Tax Act provides that a person who is a US shareholder of any CFC is required to include its GILTI in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes. Recently Adopted Accounting Pronouncements |
GOODWILL
GOODWILL | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | GOODWILL The changes in the carrying amount of goodwill: Goodwill Total value Balance as of January 1, 2023 $ 116,976 Goodwill impairment (14,503) Balance as of June 30, 2023 $ 102,473 The Company periodically analyzes whether any indicators of goodwill impairment have occurred. In the second quarter of 2023, the Company experienced a decline in its stock price resulting in its market capitalization being less than the carrying value of its one reporting unit. Thus, the Company performed quantitative assessments of the Company’s reporting unit. The fair value was determined based on the market approach. The market approach utilizes the Company's market capitalization plus an appropriate control premium. Market capitalization is determined by multiplying the number of common stock outstanding by the market price of its common stock. The control premium is determined by utilizing publicly available data from studies for similar transactions of public companies. As a result of this assessment, the Company recorded a goodwill impairment of $14,503 as of June 30, 2023. |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASES Innovid's lease portfolio primarily consists of real estate properties. Short-term leases with a term of 12 months or less are not recorded on the balance sheet. Innovid does not separate lease components from non-lease components. The Company is a lessee in all its lease agreements. The Company records lease liabilities based on the present value of lease payments over the lease term. Innovid generally uses an incremental borrowing rate to discount its lease liabilities, as the rate implicit in the lease is typically not readily determinable. Certain lease agreements include renewal options that are under the Company's control. Innovid includes optional renewal periods in the lease term only when it is reasonably certain that Innovid will exercise its option. Variable lease payments are primarily related to payments to lessors for taxes, maintenance, insurance and other operating costs. The Company's lease agreements do not contain any significant residual value guarantees or restrictive covenants. The Company has the following operating ROU assets and lease liabilities: June 30, 2023 December 31, 2022 (Unaudited) ROU assets Lease liabilities ROU assets Lease liabilities Real Estate $ 2,008 $ 2,692 $ 2,886 $ 3,801 Cars — — 24 21 Total operating leases $ 2,008 $ 2,692 $ 2,910 $ 3,822 The following table summarizes the lease costs recognized in the interim condensed consolidated statement of operations: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost $ 458 $ 472 $ 921 $ 947 Short term lease cost 320 126 583 208 Variable lease cost 25 6 46 10 Total lease cost $ 803 $ 604 $ 1,550 $ 1,165 As of June 30, 2023 (unaudited), the weighted-average remaining lease term and weighted-average discount rate for operating leases are 1.8 years and 2.5%, respectively. The following table presents supplementary cash flow information regarding the Company's operating leases: Six months ended June 30, 2023 Six months ended June 30, 2022 (Unaudited) (Unaudited) Cash paid for amounts included in the measurement of lease liabilities $ 1,035 $ 1,133 The following table summarizes the future payments of Innovid for its operating lease liabilities: Six months ended June 30, 2023 (Unaudited) 2023 Remaining $ 1,124 2024 972 2025 636 Total undiscounted lease payments $ 2,732 Less: Interest (40) Total lease liabilities $ 2,692 |
WARRANTS
WARRANTS | 6 Months Ended |
Jun. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
WARRANTS | WARRANTSAs of June 30, 2023, the Company had 3,162,500 Public Warrants and 7,060,000 Private Warrants outstanding. As of June 30, 2023, the majority of the Private Warrants (the “Transferred Private Warrants”) had been transferred from their initial holder to other transferees. The Transferred Private Warrants terms are now identical to the Public Warrants resulting in use of the same price for valuation purposes.The Company’s Warrants’ fair value as of June 30, 2023 (unaudited), and December 31, 2022, was $1,022 and $4,301, respectively. Gains and losses related to the Company’s Warrants are recognized in “Finance income, net.” See Note 9 for further details. |
LONG-TERM DEBT
LONG-TERM DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT | LONG-TERM DEBT On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The 2022 A&R Agreement and the New Revolving Credit Facility were amended by a First Loan Modification Agreement dated August 2, 2023 (the “2023 Modification Agreement”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.25% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company will also pay non-refundable commitment fees of $40 and $75 at inception and first anniversary date, respectively, together with a modification fee of $20 payable on the date of the 2023 Modification Agreement. The maturity date of the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, is June 30, 2025. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement, “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. As of June 30, 2023 (unaudited), and December 31, 2022, the Company utilized $20,000 of the $50,000 credit line. In January 2023, the Company repaid $5,000 under the credit line and $5,000 was subsequently drawn in March 2023. In May 2023, the Company repaid $5,000 under the credit line and $5,000 was subsequently drawn in June 2023. As of June 30, 2023 (unaudited), the Company is in compliance with all the covenants. Prior to the 2022 A&R Agreement, the credit installments bore US dollar denominated interest at an annual rate equal to 0.75%-1% plus the prime rate on the outstanding principal of each credit installment and prior to the 2023 Modification Agreement the New Revolving Credit Facility bore interest at an annual rate which was the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%. The Company recognizes the gains and losses from the remeasurement of the warrants liability related to the Public Warrants and Private Placement Warrants, as defined in Note 5, Warrants, in “Finance income, net” in the condensed consolidated statements of operations. The unrealized gain from changes in the fair value of the Company Warrants for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $565 and $13,159, respectively. The unrealized gain from changes in the fair value of the Company Warrants for the six months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $3,279 and $15,946, respectively. The Company also recognized interest expenses in “Finance income, net” in the condensed consolidated statements of operations. Interest expenses for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $420 and $76, respectively. Interest expenses for the six months ended June 30, 2023 and 2022, were $782 and $137, respectively. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | COMMITMENTS AND CONTINGENT LIABILITIES Pledges and bank guarantees 1. In conjunction with the 2022 A&R Agreement (see Note 6, Long-term Debt), Innovid LLC pledged 65,000 common stocks of its Israeli Subsidiary, NIS 0.01 par value each. 2. The Israeli Subsidiary pledged bank deposits in an aggregate amount of $601 in connection with an office rent agreement and credit cards. 3. Innovid Inc. obtained bank guarantees in an aggregate amount of $231 in connection with its office lease agreements. |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock-based compensation expense is related to awards issued pursuant to the Legacy Innovid Stock Option Plan (“Legacy Plan”) and 2021 Innovid Corp. Incentive Plan (“2021 Plan”) and is summarized as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cost of goods sold $ 435 $ 383 $ 876 $ 488 Research and development 1,229 920 2,403 1,399 Sales and marketing 1,690 1,529 3,269 2,109 General and administrative 1,980 1,306 3,410 1,734 Total $ 5,334 $ 4,138 $ 9,958 $ 5,730 In connection with the awards granted to service providers and non-employee consultants, the Company’s expense is immaterial in the periods presented. During the three and six months ended June 30, 2023 (unaudited), the Company capitalized stock-based compensation expense of $325 and $690 of internal-use software costs, respectively. During the three and six months ended June 30, 2022, the Company capitalized stock-based compensation expense of $490, respectively, in internal-use software cost. Stock Options Stock options may be granted to officers, directors, employees and non-employee consultants of the Company. Each option granted under the Plan expires no later than 10 years from the date of grant. The options vest usually over four years from commencement of employment or service start date. Any options forfeited or not exercised before expiration become available for future grants. A summary of the employees’ stock option activity for the six months ended June 30, 2023 (unaudited), is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of period 10,658,085 $ 1.15 6.85 $ 5,923 Granted 832,232 1.55 Forfeited (207,449) 1.89 Expired (163,640) 1.65 Exercised (1,376,572) 0.45 Outstanding at end of period 9,742,656 $ 1.26 7.08 $ 14,232 Exercisable options at end of period 6,563,845 $ 0.99 6.37 $ 11,356 A summary of the consultants’ stock option activity for the six months ended June 30, 2023 (unaudited), is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of period 69,542 $ 0.47 4.21 $ 86 Forfeited — — Exercised — — Outstanding at end of period 69,542 $ 0.47 3.72 $ 156 Exercisable options at end of period 66,196 $ 0.46 3.53 $ 149 As of June 30, 2023 (unaudited), the Company had approximately $3,945 of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted-average period of 1.92 years. Restricted Stock Units Restricted Stock Units (“RSUs”) may be granted to officers, directors, employees and non-employee consultants of the Company, and generally vest over a three A summary of the employees’ RSU activity under the 2021 Plan for the six months ended June 30, 2023 (unaudited), is as follows: Number of share units Weighted average grant date fair value Outstanding at beginning of period 7,989,825 $ 5.60 Granted 12,096,238 1.28 Vested (3,424,868) 5.27 Forfeited (1,113,878) 4.88 Outstanding at end of period 15,547,317 $ 2.36 A summary of the consultants’ RSU activity under the 2021 Plan for the six months ended June 30, 2023 (unaudited), is as follows: Number of share units Weighted average grant date fair value Outstanding at beginning of period 130,268 $ 6.60 Granted 107,343 1.18 Vested (53,250) 6.60 Forfeited (8,226) 6.60 Outstanding at end of period 176,135 $ 3.30 The weighted-average grant-date fair value of RSUs generally is determined based on the number of units granted and the quoted price of Innovid’s common stock on the date of grant. As of June 30, 2023 (unaudited), $33,727 of unrecognized compensation cost related to RSUs is expected to be recognized as expense over the weighted average period of 2.3 years. |
FINANCE INCOME, NET
FINANCE INCOME, NET | 6 Months Ended |
Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | |
FINANCE INCOME, NET | LONG-TERM DEBT On August 4, 2022, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered an amended and restated loan and security agreement with Silicon Valley Bank (the “2022 A&R Agreement”), to increase the revolving line of credit from $15,000 to $50,000 (the “New Revolving Credit Facility”). The 2022 A&R Agreement and the New Revolving Credit Facility were amended by a First Loan Modification Agreement dated August 2, 2023 (the “2023 Modification Agreement”). The interest for the New Revolving Credit Facility is payable monthly in arrears. The New Revolving Credit Facility bears interest at an annual rate which is the greater of (a) WSJ Prime Rate plus 0.25% or (b) 4.25%, on the aggregate outstanding balance. Additional fees include fees in an amount of 0.20% per annum of the average unused portion of the New Revolving Credit Facility to be paid quarterly in arrears. The Company will also pay non-refundable commitment fees of $40 and $75 at inception and first anniversary date, respectively, together with a modification fee of $20 payable on the date of the 2023 Modification Agreement. The maturity date of the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, is June 30, 2025. The New Revolving Credit Facility is subject to certain customary conditions precedent to the credit extension as stated in the 2022 A&R Agreement. The New Revolving Credit Facility requires the Company to comply with all covenants, primarily maintaining an adjusted quick ratio of at least 1.30 to 1.00. As defined in the 2022 A&R Agreement, “adjusted quick ratio” is the ratio of (a) quick assets to (b) current liabilities minus the current portion of deferred revenue. “Quick assets” are determined as the Company’s unrestricted cash plus accounts receivable, net, and is determined according to US GAAP. The Company is also required to maintain the minimum quarterly adjusted EBITDA as defined in the 2022 A&R Agreement, as amended by the 2023 Modification Agreement, if the Company does not maintain the quarterly adjusted quick ratio of at least 1.50 to 1.00. As of June 30, 2023 (unaudited), and December 31, 2022, the Company utilized $20,000 of the $50,000 credit line. In January 2023, the Company repaid $5,000 under the credit line and $5,000 was subsequently drawn in March 2023. In May 2023, the Company repaid $5,000 under the credit line and $5,000 was subsequently drawn in June 2023. As of June 30, 2023 (unaudited), the Company is in compliance with all the covenants. Prior to the 2022 A&R Agreement, the credit installments bore US dollar denominated interest at an annual rate equal to 0.75%-1% plus the prime rate on the outstanding principal of each credit installment and prior to the 2023 Modification Agreement the New Revolving Credit Facility bore interest at an annual rate which was the greater of (a) WSJ Prime Rate plus 0.75% or (b) 4.25%. The Company recognizes the gains and losses from the remeasurement of the warrants liability related to the Public Warrants and Private Placement Warrants, as defined in Note 5, Warrants, in “Finance income, net” in the condensed consolidated statements of operations. The unrealized gain from changes in the fair value of the Company Warrants for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $565 and $13,159, respectively. The unrealized gain from changes in the fair value of the Company Warrants for the six months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $3,279 and $15,946, respectively. The Company also recognized interest expenses in “Finance income, net” in the condensed consolidated statements of operations. Interest expenses for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), were $420 and $76, respectively. Interest expenses for the six months ended June 30, 2023 and 2022, were $782 and $137, respectively. |
INCOME TAX
INCOME TAX | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX | INCOME TAX The Company recorded a provision for incomes taxes of $1,335 and a net tax benefit of $168 for the three months ended June 30, 2023 (unaudited) and 2022 (unaudited), respectively, and a net expense of $4,159 and a net tax benefit of $205 for the six months ended June 30, 2023 and 2022, respectively. The Company’s effective tax rates were (7.6)% and (4.1)% for the three months ended June 30, 2023 and 2022, respectively, and (17.8)% and 6.1% for the six months ended June 30, 2023 and 2022, respectively. For the three months ended June 30, 2023 (unaudited), the net effect of discrete items increased the effective tax rate by 0.2%. Excluding these items, the Company’s effective tax rate would have been (7.4)%. For the six months ended June 30, 2023, the net effect of discrete items increased the effective tax rate by 1.1%. Excluding these items, the Company’s effective tax rate would have been (18.9)%. For the three months ended June 30, 2022 (unaudited), the net effect of discrete items increased the effective tax rate by 3.3%. Excluding these items, the Company’s effective tax rate would have been (7.4)%. For the six months ended June 30, 2022, the net effect of discrete items decreased the effective tax rate by 4.6%. Excluding these items, the Company’s effective tax rate would have been 10.7%. The increase in year-to-date tax expense primarily results from a shift in the Company’s foreign earnings, resulting in higher profitability and current tax expense, with no offsetting deferred tax benefit as a result of an overall valuation allowance. In addition, certain temporary differences associated with the capitalization of research and development under IRC Section 174 and deductibility of stock compensation that would normally not impact the effective tax rate or overall tax expense, could cause the US to generate current state tax expense with no corresponding deferred tax benefit. Unless the US tax rules around research and development (Section 174) are modified, there will continue to be an adverse impact on our effective rates for income taxes paid. Lastly, the current tax expense is increased as compared to prior years, in both the foreign jurisdictions and the US, because of decreased net operating losses available due to prior year utilization. |
SEGMENT REPORTING
SEGMENT REPORTING | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING The Company operates as one operating segment, which primarily focuses on the software platform for advertising, measurement, and creative. Our CEO is the chief operating decision-maker, and manages and allocates resources to the operations of the Company on an entity-wide basis. Revenue by geographical location are as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) US $ 31,567 $ 29,569 $ 59,214 $ 52,952 Canada 465 302 853 490 APAC 734 1,025 1,549 1,956 EMEA 1,595 1,914 3,038 3,043 LATAM 185 278 377 509 Total revenues $ 34,546 $ 33,088 $ 65,031 $ 58,950 The Company’s property and equipment, net and ROU assets by geographical location is as follows: June 30, December 31, 2023 2022 (Unaudited) Israel $ 2,388 $ 2,707 US 18,212 14,065 Rest of the World 367 460 Total $ 20,967 $ 17,232 |
BASIC AND DILUTED NET (LOSS) IN
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE | BASIC AND DILUTED NET (LOSS) INCOME PER SHARE Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net (loss) income $ (18,959) $ 4,300 $ (27,522) $ (3,149) Net (loss) income attributable to common stockholders basic and diluted $ (18,959) $ 4,300 $ (27,522) $ (3,149) Denominator: Weighted-average number of stock used in computing net (loss) income per stock attributable to common stockholders ` Basic weighted average number of shares outstanding 137,643,910 132,152,652 134,296,569 128,220,893 Effect of dilutive securities options and RSU (share equivalent) — 7,835,471 — — Diluted weighted average number of shares outstanding 137,643,910 139,988,123 134,296,569 128,220,893 Net profit (loss) per stock attributable to common stockholders Basic $ (0.14) $ 0.03 $ (0.20) $ (0.02) Diluted $ (0.14) $ 0.03 $ (0.20) $ (0.02) The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Unvested RSU outstanding 15,723,452 7,991,829 15,723,452 8,002,502 Options outstanding 9,812,198 3,533,772 9,812,198 12,363,179 Warrants outstanding 10,222,500 10,222,500 10,222,500 10,222,500 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSOn August 2, 2023, two wholly owned subsidiaries of the Company, Innovid LLC and TV Squared Inc, entered the 2023 Modification Agreement with Silicon Valley Bank, a division of First-Citizen Bank & Trust Company. Refer to Note 6 for further details. |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited interim condensed consolidated financial statements have been prepared in accordance with US GAAP. Any reference in these notes to applicable guidance is meant to refer to the authoritative US GAAP as found in the Accounting Standards Codification (“ASC”) and Accounting Standards Updates (“ASU”) of the Financial Accounting Standards Board (“FASB”) and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. The unaudited interim condensed consolidated financial statements reflect all adjustments, which are, in the opinion of management, necessary for a fair presentation. The Company’s interim period results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. The condensed consolidated balance sheet as of December 31, 2022, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by US GAAP for complete financial statements. These unaudited interim condensed consolidated financial statements should be read in conjunction with the Company’s audited consolidated financial statements and footnotes included in the Company’s 2022 Annual Report on Form 10-K. The significant accounting policies applied in the annual consolidated financial statements of the Company as of December 31, 2022, have been applied consistently in these unaudited interim condensed consolidated financial statements, unless otherwise stated. |
Use of Estimates | Use of EstimatesThe preparation of the condensed consolidated financial statements in conformity with US GAAP requires management to make estimates, judgments, and assumptions. The Company’s management believes that the estimates, judgments and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Software development costs | Software development costs Software development costs, which are included in property and equipment, net, consists of capitalized costs related to the purchase and development of internal-use software. The Company uses such software to provide services to its customers. The costs to purchase and develop internal-use software are capitalized from the time that the preliminary project stage is completed, and it is considered probable that the software will be used to perform the function intended. These costs include personnel and personnel-related employee benefits for employees directly associated with the software development and external costs of the materials or services consumed in developing or obtaining the software. |
Impairment of long-lived assets | Impairment of long-lived assetsLong-lived assets, including property and equipment and finite-lived intangible assets, are reviewed for impairment whenever facts or circumstances either internally or externally may indicate that the carrying value of an asset may not be recoverable. If there are indications of an impairment, the Company tests for recoverability by comparing the estimated undiscounted future cash flows expected to result from the use of the asset to the carrying amount of the asset or asset group. If the asset or asset group is determined to be impaired, any excess of the carrying value of the asset or asset group over its estimated fair value is recognized as an impairment loss. |
Goodwill and acquired intangible assets | Goodwill and acquired intangible assets Goodwill and acquired intangible assets have been recorded in the Company's financial statements resulting from various business combinations. Goodwill represents the excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired and liabilities assumed. Goodwill is subject to an annual impairment test. Reporting units are evaluated when changes in the Company’s operating structure occur, and if necessary, goodwill is reassigned using a relative fair value allocation approach. The Company currently has one reporting unit. ASC 350, Intangibles—Goodwill and other (“ASC 350”) requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit's fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. During the three months ended June 30, 2023, the Company recorded Goodwill impairment in the amount of $14,503. Refer to Note 3 for further details. Separately acquired intangible assets are measured on initial recognition at cost including directly attributable costs. Intangible assets acquired in a business combination are measured at fair value at the acquisition date. Customer relationships, acquired technology and trade name are being amortized over the estimated useful life of approximately 11 years, 6 years, and 4 years, respectively, using the straight-line amortization method. The amortization of customer relationships, acquired technology and trade names, is presented within depreciation and amortization in the condensed consolidated statements of operations. |
Fair value of financial instruments | Fair value of financial instruments The Company applies a fair value framework to measure and disclose its financial assets and liabilities. Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The fair value hierarchy requires an entity to maximize the use of observable inputs, where available, and minimize the use of unobservable inputs when measuring fair value. There are three levels of inputs that may be used to measure fair value: Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The Company’s financial instruments consist of cash and cash equivalents, restricted deposits, trade receivables, net, trade payables, employees, payroll accruals, accrued expenses and other current liabilities and current portion of long-term debts. Their historical carrying amounts represent the approximate fair value due to the short-term maturities of these instruments. The Company’s investments in money market funds are classified as cash equivalents and measured at fair value. The Company measures its warrant liability at fair value. The goodwill impairment recorded in the second quarter of 2023 was estimated using the Company's stock price, a Level 1 input, adjusted for an estimated control premium. |
Concentrations of credit risks | Concentrations of credit risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, deposits and trade receivables, net. Most of the Company’s cash and cash equivalents are invested in deposits with major banks in the US and Israel. The Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. The Company’s trade receivables, net is mainly derived from sales to customers located in the US, APAC, EMEA, and LATAM. The Company mitigates its credit risks by performing an ongoing credit evaluations of its customers’ financial conditions. |
Revenue recognition | Revenue recognition Most of the Company’s revenues are derived from providing Ad serving solutions to advertisers, media agencies and publishers. The services focus on standard, interactive and data driven digital video advertising. Ad serving services relate to utilizing Innovid’s platform to serve advertising impressions to various digital publishers across CTV, mobile TV, desktop TV, display and other channels. The Company also provides measurement services to advertisers and agencies, streaming platforms and publishers. The measurement service provides analytics and the ability to track performance of advertising campaigns. The measurement service provides insights into the effectiveness of TV and digital advertising. The Company also provides creative services for the design and development of interactive data-driven and dynamic ad formats by adding data, interactivity and dynamic features to standard ad units. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the Company expects to receive in exchange for those services. The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when a performance obligation is satisfied. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct and are separately identifiable, the Company allocates the contract consideration to all distinct performance obligations based on their relative standalone selling price (“SSP”). SSP is typically estimated based on observable transactions when these services are sold on a standalone basis. Revenues related to ad serving services are recognized when impressions are delivered. The Company recognizes revenue from the display of impression-based ads in the contracted period in which the impressions are delivered. Impressions are considered delivered when an ad is displayed to users. Revenues related to the measurement services platform are recognized over time, since the customer simultaneously receives and consumes the benefits provided by the Company’s performance. Revenues for these measurement services are recognized over the service period. Revenues related to creative projects are recognized at a point in time when the Company delivers an ad unit. Creative services projects are usually delivered within a week. The Company’s accounts receivable consist primarily of receivables related to providing ad serving, measurement and creative services, for which the Company’s contracted performance obligations have been satisfied, the amount has been billed and the Company has an unconditional right to payment. The Company typically bills customers monthly based on actual delivery. The payment terms vary, mainly with terms of 60 days or less. The typical contract term is 12 months or less for ASC 606 purposes. Most of the Company’s contracts can be canceled without cause. The Company has the unconditional right to payment for the services provided as of the date of the termination of the contracts. The Company applies the practical expedient in ASC 606 and does not adjust the promised amount of consideration for the effects of a significant financing component if the Company expects, at contract inception, that the period between when the Company transfers a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Deferred revenues represent mostly unrecognized fees billed or collected for measurement platform services. Deferred revenues are recognized as (or when) we perform under the contract. Costs to obtain a contract Contract costs include commission programs to compensate sales employees for generating sales orders with new customers or for new services with existing customers. Generally, the commissions are commensurate. The Company elected to apply the practical expedient and recognize incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the Company otherwise would have recognized is one year or less. If commissions are not commensurate, the Company capitalizes these commissions. Capitalized commission costs were immaterial for the three and six months ended June 30, 2023 (unaudited) and June 30, 2022 (unaudited). Trade receivable, net The Company records trade receivable for amounts invoiced and yet unbilled invoices. The Company makes estimates of expected credit losses for the allowance for doubtful accounts based upon its assessment of various factors, including historical experience, the age of the trade receivable balances, credit quality of its customers, current economic conditions, reasonable and supportable forecasts of future economic conditions, and other factors that may affect its ability to collect from customers. The estimated credit loss allowance is recorded as general and administrative expenses on the Company's condensed consolidated statements of operations. |
Income taxes and tax contingencies | Income taxes and tax contingencies Income taxes are computed using a balance sheet approach reflecting both current and deferred taxes. Current and deferred taxes reflect the tax impact of all of the events included in the financial statements. The basic principles employed in the balance sheet approach are to reflect a current tax liability or asset that is recognized for the estimated taxes payable or refundable on tax returns for the current and prior years, a deferred tax liability or asset that is recognized for the estimated future tax effects attributable to temporary differences and carryforwards, the measurement of current and deferred tax liabilities and assets is based on provisions of the enacted tax law of which the effects of future changes in tax laws or rates are not anticipated, and the measurement of deferred tax assets is reduced, if necessary, by the amount of any tax benefits that, based on available evidence, are not expected to be realized. There are certain situations in which deferred taxes are not provided. Some basis differences are not temporary differences because their reversals are not expected to result in taxable or deductible amounts. The Company regularly evaluates deferred tax assets for future realization and establishes a valuation allowance to the extent that a portion is not more likely than not to be realized. The Company considers whether it is more likely than not that the deferred tax assets will be realized, including existing cumulative losses in recent years, expectations of future taxable income, carryforward periods and other relevant quantitative and qualitative factors. The recoverability of the deferred tax assets is evaluated by assessing the adequacy of future expected taxable income from all sources, including reversal of taxable temporary differences, forecasted operating earnings and available tax planning strategies. These sources of income rely on estimates. ASC 740, Income Taxes (“ASC 740”) contains a two-step approach to recognizing and measuring a liability for uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that, on an evaluation of the technical merits, the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% (cumulative basis) likely to be realized upon ultimate settlement. The Company classifies interest related to unrecognized tax benefits in taxes on income. On December 20, 2017, Congress passed the “US Tax Act.” The US Tax Act requires complex computations to be performed that were not previously required by US tax law, significant judgments to be made in interpretation of the provisions of the US Tax Act, significant estimates in calculations and the preparation and analysis of information not previously relevant or regularly produced. The US Tax Act provides that a person who is a US shareholder of any CFC is required to include its GILTI in gross income for the tax year in a manner generally similar to that for Subpart F inclusions. The term “global intangible low taxed income” is defined as the excess (if any) of the US shareholder’s net CFC tested income for that tax year, over the US shareholder’s net deemed tangible income return for that tax year. The Company’s policy is to treat GILTI as a period expense in the provision for income taxes. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting PronouncementsIn June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”). ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions and reasonable and supportable forecasts. ASU 2016-13 requires enhanced qualitative and quantitative disclosures to help investors and other financial statement users better understand significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. ASU 2016-13 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The adoption has impacted how the Company assesses its estimates for credit losses but did not have a material impact on these unaudited interim condensed consolidated financial statements. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present information about the Company’s financial instruments that are measured at fair value on a recurring basis: June 30, 2023 (Unaudited) Level 1 Level 2 Level 3 Assets: Money market funds $ 36,323 $ — $ — Liabilities: Warrants liability $ 1,022 $ — $ — December 31, 2022 Level 1 Level 2 Level 3 Assets: Money market funds $ 18,948 $ — $ — Certificates of deposit — 20,000 — Liabilities: Warrants liability $ 1,265 $ — $ 3,036 |
Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | The change in the fair value of the Level 3 warrant liability is summarized below: June 30, December 31, June 30, 2023 2022 2022 (Unaudited) (Unaudited) Beginning of the period $ 3,036 $ 15,462 $ 15,462 Change in fair value (2,330) (12,426) (13,132) Transfer to level 1 (706) — — End of the period $ — $ 3,036 $ 2,330 |
Schedules of Concentration of Risk, by Risk Factor | One of the Company’s customers accounted for more than 10% of the Company’s total revenues during the three and six months ended June 30, 2023. Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Customer A 16 % *) 16 % *) *) less than 10% |
GOODWILL (Tables)
GOODWILL (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill: Goodwill Total value Balance as of January 1, 2023 $ 116,976 Goodwill impairment (14,503) Balance as of June 30, 2023 $ 102,473 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Schedule of Operating ROU Assets and Lease Liabilities | The Company has the following operating ROU assets and lease liabilities: June 30, 2023 December 31, 2022 (Unaudited) ROU assets Lease liabilities ROU assets Lease liabilities Real Estate $ 2,008 $ 2,692 $ 2,886 $ 3,801 Cars — — 24 21 Total operating leases $ 2,008 $ 2,692 $ 2,910 $ 3,822 |
Summary of Lease Cost | The following table summarizes the lease costs recognized in the interim condensed consolidated statement of operations: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Operating lease cost $ 458 $ 472 $ 921 $ 947 Short term lease cost 320 126 583 208 Variable lease cost 25 6 46 10 Total lease cost $ 803 $ 604 $ 1,550 $ 1,165 The following table presents supplementary cash flow information regarding the Company's operating leases: Six months ended June 30, 2023 Six months ended June 30, 2022 (Unaudited) (Unaudited) Cash paid for amounts included in the measurement of lease liabilities $ 1,035 $ 1,133 |
Schedule of Operating Lease, Liability, Maturity | The following table summarizes the future payments of Innovid for its operating lease liabilities: Six months ended June 30, 2023 (Unaudited) 2023 Remaining $ 1,124 2024 972 2025 636 Total undiscounted lease payments $ 2,732 Less: Interest (40) Total lease liabilities $ 2,692 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock-based Compensation Expenses | Stock-based compensation expense is related to awards issued pursuant to the Legacy Innovid Stock Option Plan (“Legacy Plan”) and 2021 Innovid Corp. Incentive Plan (“2021 Plan”) and is summarized as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Cost of goods sold $ 435 $ 383 $ 876 $ 488 Research and development 1,229 920 2,403 1,399 Sales and marketing 1,690 1,529 3,269 2,109 General and administrative 1,980 1,306 3,410 1,734 Total $ 5,334 $ 4,138 $ 9,958 $ 5,730 |
Schedule of Share Based Payment Arrangement, Option, Activity | A summary of the employees’ stock option activity for the six months ended June 30, 2023 (unaudited), is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of period 10,658,085 $ 1.15 6.85 $ 5,923 Granted 832,232 1.55 Forfeited (207,449) 1.89 Expired (163,640) 1.65 Exercised (1,376,572) 0.45 Outstanding at end of period 9,742,656 $ 1.26 7.08 $ 14,232 Exercisable options at end of period 6,563,845 $ 0.99 6.37 $ 11,356 A summary of the consultants’ stock option activity for the six months ended June 30, 2023 (unaudited), is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of period 69,542 $ 0.47 4.21 $ 86 Forfeited — — Exercised — — Outstanding at end of period 69,542 $ 0.47 3.72 $ 156 Exercisable options at end of period 66,196 $ 0.46 3.53 $ 149 |
Schedule of Share Based Payment Arrangement, Restricted Stock Unit, Activity | A summary of the employees’ RSU activity under the 2021 Plan for the six months ended June 30, 2023 (unaudited), is as follows: Number of share units Weighted average grant date fair value Outstanding at beginning of period 7,989,825 $ 5.60 Granted 12,096,238 1.28 Vested (3,424,868) 5.27 Forfeited (1,113,878) 4.88 Outstanding at end of period 15,547,317 $ 2.36 A summary of the consultants’ RSU activity under the 2021 Plan for the six months ended June 30, 2023 (unaudited), is as follows: Number of share units Weighted average grant date fair value Outstanding at beginning of period 130,268 $ 6.60 Granted 107,343 1.18 Vested (53,250) 6.60 Forfeited (8,226) 6.60 Outstanding at end of period 176,135 $ 3.30 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Revenue and Property and Equipment, by Geographical Areas | Revenue by geographical location are as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) US $ 31,567 $ 29,569 $ 59,214 $ 52,952 Canada 465 302 853 490 APAC 734 1,025 1,549 1,956 EMEA 1,595 1,914 3,038 3,043 LATAM 185 278 377 509 Total revenues $ 34,546 $ 33,088 $ 65,031 $ 58,950 The Company’s property and equipment, net and ROU assets by geographical location is as follows: June 30, December 31, 2023 2022 (Unaudited) Israel $ 2,388 $ 2,707 US 18,212 14,065 Rest of the World 367 460 Total $ 20,967 $ 17,232 |
BASIC AND DILUTED NET (LOSS) _2
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Basic and diluted net (loss) income per share attributable to common stockholders was calculated as follows: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Numerator: Net (loss) income $ (18,959) $ 4,300 $ (27,522) $ (3,149) Net (loss) income attributable to common stockholders basic and diluted $ (18,959) $ 4,300 $ (27,522) $ (3,149) Denominator: Weighted-average number of stock used in computing net (loss) income per stock attributable to common stockholders ` Basic weighted average number of shares outstanding 137,643,910 132,152,652 134,296,569 128,220,893 Effect of dilutive securities options and RSU (share equivalent) — 7,835,471 — — Diluted weighted average number of shares outstanding 137,643,910 139,988,123 134,296,569 128,220,893 Net profit (loss) per stock attributable to common stockholders Basic $ (0.14) $ 0.03 $ (0.20) $ (0.02) Diluted $ (0.14) $ 0.03 $ (0.20) $ (0.02) |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share | The Company excluded the following potential common shares, presented based on amounts outstanding at each period end, from the computation of diluted net loss per share attributable to common stockholders for the periods indicated because including them would have had an anti-dilutive effect: Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Unvested RSU outstanding 15,723,452 7,991,829 15,723,452 8,002,502 Options outstanding 9,812,198 3,533,772 9,812,198 12,363,179 Warrants outstanding 10,222,500 10,222,500 10,222,500 10,222,500 |
DESCRIPTION OF BUSINESS (Detail
DESCRIPTION OF BUSINESS (Details) - TV Squared $ / shares in Units, $ in Thousands | Feb. 28, 2022 USD ($) $ / shares shares |
Business Acquisition [Line Items] | |
Payments to acquire | $ | $ 100,000 |
Shares issued as consideration (in shares) | shares | 11,549,465 |
Share price (in dollars per share) | $ / shares | $ 3.80 |
Issued, fully vested stock option (in shares) | shares | 949,893 |
Weighted average fair value (in dollars per share) | $ / shares | $ 3.49 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 USD ($) $ / shares | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) reportingUnit $ / shares | Jun. 30, 2022 USD ($) | Dec. 31, 2022 $ / shares | |
Summary of Significant Accounting Policies [Line Items] | |||||
Impairments of long-lived assets | $ 0 | $ 0 | |||
Number of reporting units | reportingUnit | 1 | ||||
Goodwill impairment | $ 14,503,000 | $ 0 | $ 14,503,000 | $ 0 | |
Payment term | 60 days | ||||
Ad serving services | 77.30% | 78.40% | 77.20% | 83.40% | |
Measurement serving services | 22.70% | 21.60% | 22.80% | 16.60% | |
Level 1 | Public Warrants | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Exercise price per share (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | $ 0.40 | ||
Level 1 | Private Warrants | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Exercise price per share (in dollars per share) | $ / shares | $ 0.10 | $ 0.10 | |||
Customer relationships | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 11 years | ||||
Technology | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 6 years | ||||
Trade name | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Acquired finite-lived intangible assets, weighted average useful life | 4 years | ||||
Software development costs | |||||
Summary of Significant Accounting Policies [Line Items] | |||||
Useful lives (in years) | 3 years | 3 years | |||
Capitalization cost | $ 2,825,000 | $ 2,335,000 | $ 6,281,000 | $ 4,006,000 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Level 1 | ||
Assets: | ||
Money market funds | $ 36,323 | $ 18,948 |
Certificates of deposit | 0 | |
Liabilities: | ||
Warrants liability | 1,022 | 1,265 |
Level 2 | ||
Assets: | ||
Money market funds | 0 | 0 |
Certificates of deposit | 20,000 | |
Liabilities: | ||
Warrants liability | 0 | 0 |
Level 3 | ||
Assets: | ||
Money market funds | 0 | 0 |
Certificates of deposit | 0 | |
Liabilities: | ||
Warrants liability | $ 0 | $ 3,036 |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Recurring - Warrants Liability - Level 3 - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Beginning of the period | $ 3,036 | $ 15,462 | $ 15,462 |
Change in fair value | (2,330) | (13,132) | (12,426) |
Transfer to level 1 | (706) | 0 | 0 |
End of the period | $ 0 | $ 2,330 | $ 3,036 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Concentration Risk (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Revenue Benchmark | Customer Concentration Risk | Customer A | ||
Concentration Risk [Line Items] | ||
Concentration risk, percentage | 16% | 16% |
GOODWILL - Schedule of Goodwill
GOODWILL - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | $ 116,976 | |||
Goodwill impairment | $ (14,503) | $ 0 | (14,503) | $ 0 |
Goodwill, ending balance | $ 102,473 | $ 102,473 |
GOODWILL - Narrative (Details)
GOODWILL - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill impairment | $ 14,503 | $ 0 | $ 14,503 | $ 0 |
LEASES - Schedule of Operating
LEASES - Schedule of Operating ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Operating Leases Assets And Liabilities [Line Items] | ||
ROU assets | $ 2,008 | $ 2,910 |
Lease liabilities | 2,692 | 3,822 |
Real Estate | ||
Operating Leases Assets And Liabilities [Line Items] | ||
ROU assets | 2,008 | 2,886 |
Lease liabilities | 2,692 | 3,801 |
Cars | ||
Operating Leases Assets And Liabilities [Line Items] | ||
ROU assets | 0 | 24 |
Lease liabilities | $ 0 | $ 21 |
LEASES - Lease Costs Recognized
LEASES - Lease Costs Recognized in the Condensed Consolidated Statement of Earnings (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 458 | $ 472 | $ 921 | $ 947 |
Short term lease cost | 320 | 126 | 583 | 208 |
Variable lease cost | 25 | 6 | 46 | 10 |
Total lease cost | $ 803 | $ 604 | $ 1,550 | $ 1,165 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | Jun. 30, 2023 |
Leases [Abstract] | |
Operating lease, weighted average remaining lease term | 1 year 9 months 18 days |
Operating lease, weighted average discount rate, percent | 2.50% |
LEASES - Supplementary Cash Flo
LEASES - Supplementary Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease liabilities | $ 1,035 | $ 1,133 |
LEASES - Schedule of Operatin_2
LEASES - Schedule of Operating Lease Liabilities Maturity (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Leases [Abstract] | |
2023 Remaining | $ 1,124 |
2024 | 972 |
2025 | 636 |
Total undiscounted lease payments | 2,732 |
Less: Interest | (40) |
Total lease liabilities | $ 2,692 |
WARRANTS (Details)
WARRANTS (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Public Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 3,162,500 | |
Private Warrants | ||
Class of Warrant or Right [Line Items] | ||
Warrants outstanding (in shares) | 7,060,000 | |
Warrant | ||
Class of Warrant or Right [Line Items] | ||
Derivative liability fair value | $ 1,022 | $ 4,301 |
LONG-TERM DEBT (Details)
LONG-TERM DEBT (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Aug. 04, 2023 USD ($) | Aug. 04, 2022 USD ($) subsidiary | Jun. 30, 2023 USD ($) | May 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Jan. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 | Aug. 03, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||
Number of wholly owned subsidiaries | subsidiary | 2 | ||||||||
Repayment of line of credit | $ 5 | $ 5,000 | |||||||
Revolving Credit Facility | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit | $ 50,000 | $ 50,000 | $ 50,000 | $ 15,000 | |||||
Average annual fee unused portion (in percent) | 0.20% | ||||||||
Non-refundable commitment fees | $ 40 | ||||||||
Line of credit quick ratio | 1.30 | ||||||||
Quarterly adjusted quick ratio | 1.50 | ||||||||
Revolving Credit Facility | Forecast | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Annual interest rate (in percent) | 4.25% | ||||||||
Non-refundable commitment fees | $ 75 | ||||||||
Revolving Credit Facility | Forecast | 2023 Modification Agreement | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Modification fee amount | $ 20 | ||||||||
Revolving Credit Facility | Maximum | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Prime rate (in percent) | 0.25% | ||||||||
Line of Credit | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Proceeds from line of credit | 5 | $ 5,000 | |||||||
Line of Credit | Amended Credit Agreement Maturing December 2020 | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Line of credit | $ 20,000 | $ 20,000 | |||||||
Line of Credit | Minimum | Amended Credit Agreement Maturing October 2018 | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, variable rate | 0.75% | ||||||||
Line of Credit | Maximum | Amended Credit Agreement Maturing October 2018 | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, variable rate | 1% | ||||||||
New Revolving Credit Facility | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, variable rate | 0.75% | ||||||||
New Revolving Credit Facility | Maximum | Prime Rate | |||||||||
Line of Credit Facility [Line Items] | |||||||||
Debt instrument, variable rate | 4.25% |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($) $ / shares in Units, $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Commitments and Contingencies [Line Items] | ||
Ordinary shares, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Bank guarantees | $ 231 | |
Israeli Subsidiary | ||
Commitments and Contingencies [Line Items] | ||
Bank deposits pledged | $ 601 | |
Subsidiaries | ||
Commitments and Contingencies [Line Items] | ||
Shares of subsidiary pledged (in shares) | 65,000 | |
Ordinary shares, par value (in dollars per share) | $ 0.01 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity Under Plan (Details) - Legacy Plan and 2021 Plan - Employees - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 5,334 | $ 4,138 | $ 9,958 | $ 5,730 |
Cost of goods sold | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 435 | 383 | 876 | 488 |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 1,229 | 920 | 2,403 | 1,399 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | 1,690 | 1,529 | 3,269 | 2,109 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock-based compensation expenses | $ 1,980 | $ 1,306 | $ 3,410 | $ 1,734 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Capitalized stock-based compensation expense | $ 325 | $ 490 | $ 690 | $ 490 |
Cost not yet recognized | 3,945 | $ 3,945 | ||
Period for cost yet to be recognized | 1 year 11 months 1 day | |||
Options outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Cost not yet recognized | $ 33,727 | $ 33,727 | ||
Period for cost yet to be recognized | 2 years 3 months 18 days | |||
Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expiration period | 10 years | |||
Minimum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 3 years | |||
Maximum | Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period | 4 years |
STOCK-BASED COMPENSATION - St_2
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
Employees | ||
Amount of options | ||
Outstanding at the beginning of the period (in shares) | 10,658,085 | |
Granted (in shares) | 832,232 | |
Forfeited (in shares) | (207,449) | |
Expired (in shares) | (163,640) | |
Exercised (in shares) | (1,376,572) | |
Outstanding at the end of the period (in shares) | 9,742,656 | 10,658,085 |
Exercisable options at the end of the period (in shares) | 6,563,845 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 1.15 | |
Granted (in dollars per share) | 1.55 | |
Forfeited (in dollars per share) | 1.89 | |
Expired (in dollars per share) | 1.65 | |
Exercised (in dollars per share) | 0.45 | |
Outstanding at the end of the period (in dollars per share) | 1.26 | $ 1.15 |
Exercisable exercise price at the end of the period (in dollars per share) | $ 0.99 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Outstanding option, weighted average remaining contractual term (in years) | 7 years 29 days | 6 years 10 months 6 days |
Outstanding exercisable, weighted average remaining contractual term (in years) | 6 years 4 months 13 days | |
Outstanding intrinsic value at the beginning of the period | $ 5,923 | |
Outstanding intrinsic value at the end of the period | 14,232 | $ 5,923 |
Outstanding exercisable intrinsic value at the end of the period | $ 11,356 | |
Consultants | ||
Amount of options | ||
Outstanding at the beginning of the period (in shares) | 69,542 | |
Forfeited (in shares) | 0 | |
Exercised (in shares) | 0 | |
Outstanding at the end of the period (in shares) | 69,542 | 69,542 |
Exercisable options at the end of the period (in shares) | 66,196 | |
Weighted average exercise price | ||
Outstanding at the beginning of the period (in dollars per share) | $ 0.47 | |
Forfeited (in dollars per share) | 0 | |
Exercised (in dollars per share) | 0 | |
Outstanding at the end of the period (in dollars per share) | 0.47 | $ 0.47 |
Exercisable exercise price at the end of the period (in dollars per share) | $ 0.46 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures | ||
Outstanding option, weighted average remaining contractual term (in years) | 3 years 8 months 19 days | 4 years 2 months 15 days |
Outstanding exercisable, weighted average remaining contractual term (in years) | 3 years 6 months 10 days | |
Outstanding intrinsic value at the beginning of the period | $ 86 | |
Outstanding intrinsic value at the end of the period | 156 | $ 86 |
Outstanding exercisable intrinsic value at the end of the period | $ 149 |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details) | 6 Months Ended |
Jun. 30, 2023 $ / shares shares | |
Employees | |
Number of share units | |
Outstanding at the beginning of the period (in shares) | shares | 7,989,825 |
Granted (in shares) | shares | 12,096,238 |
Vested (in shares) | shares | (3,424,868) |
Forfeited (in shares) | shares | (1,113,878) |
Outstanding at the ending of the period (in shares) | shares | 15,547,317 |
Weighted average grant date fair value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 5.60 |
Granted (in dollars per share) | $ / shares | 1.28 |
Vested (in dollars per share) | $ / shares | 5.27 |
Forfeited (in dollars per share) | $ / shares | 4.88 |
Outstanding at the ending of the period (in dollars per share) | $ / shares | $ 2.36 |
Consultants | |
Number of share units | |
Outstanding at the beginning of the period (in shares) | shares | 130,268 |
Granted (in shares) | shares | 107,343 |
Vested (in shares) | shares | (53,250) |
Forfeited (in shares) | shares | (8,226) |
Outstanding at the ending of the period (in shares) | shares | 176,135 |
Weighted average grant date fair value | |
Outstanding at the beginning of the period (in dollars per share) | $ / shares | $ 6.60 |
Granted (in dollars per share) | $ / shares | 1.18 |
Vested (in dollars per share) | $ / shares | 6.60 |
Forfeited (in dollars per share) | $ / shares | 6.60 |
Outstanding at the ending of the period (in dollars per share) | $ / shares | $ 3.30 |
FINANCE INCOME, NET (Details)
FINANCE INCOME, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Paycheck Protection Program | ||||
Short-term Debt [Line Items] | ||||
Debt related interest expense | $ 420 | $ 76 | $ 782 | $ 137 |
Warrant | ||||
Short-term Debt [Line Items] | ||||
Gain from changes in the fair value | $ 565 | $ 13,159 | $ 3,279 | $ 15,946 |
INCOME TAX (Details)
INCOME TAX (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Taxes on income | $ 1,335 | $ (168) | $ 4,159 | $ (205) |
Provision for income taxes | $ 168 | |||
Effective tax expense (benefit) | (7.60%) | (4.10%) | (17.80%) | 6.10% |
Effect of discrete items, increase (decrease) in effective tax rate | 0.20% | 3.30% | 1.10% | (4.60%) |
Effective tax rate increase (decrease) | (7.40%) | 7.40% | (18.90%) | 10.70% |
SEGMENT REPORTING - Narrative (
SEGMENT REPORTING - Narrative (Details) | 6 Months Ended |
Jun. 30, 2023 segment | |
Segment Reporting [Abstract] | |
Number of operating segments | 1 |
SEGMENT REPORTING - Revenue and
SEGMENT REPORTING - Revenue and Property and Equipment, by Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | $ 34,546 | $ 33,088 | $ 65,031 | $ 58,950 | |
Long-lived tangible assets | 20,967 | 20,967 | $ 17,232 | ||
US | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 31,567 | 29,569 | 59,214 | 52,952 | |
Long-lived tangible assets | 18,212 | 18,212 | 14,065 | ||
Canada | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 465 | 302 | 853 | 490 | |
APAC | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 734 | 1,025 | 1,549 | 1,956 | |
EMEA | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 1,595 | 1,914 | 3,038 | 3,043 | |
LATAM | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenues | 185 | $ 278 | 377 | $ 509 | |
Israel | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived tangible assets | 2,388 | 2,388 | 2,707 | ||
Rest of the World | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Long-lived tangible assets | $ 367 | $ 367 | $ 460 |
BASIC AND DILUTED NET (LOSS) _3
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE - Basic and Diluted Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 | Mar. 31, 2023 | Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Numerator: | ||||||
Net (loss) income | $ (18,959) | $ (8,563) | $ 4,300 | $ (7,449) | $ (27,522) | $ (3,149) |
Net (loss) income attributable to common stockholders, basic | (18,959) | 4,300 | (27,522) | (3,149) | ||
Net (loss) income attributable to common stockholders, diluted | $ (18,959) | $ 4,300 | $ (27,522) | $ (3,149) | ||
Denominator: | ||||||
Weighted-average number of stocks used in computing net (loss) income per stock attributable to common stockholders - Basic weighted average number of shares outstanding (in shares) | 137,643,910 | 132,152,652 | 134,296,569 | 128,220,893 | ||
Weighted-average number of stocks used in computing net (loss) income per stock attributable to common stockholders - Diluted weighted average number of shares outstanding (in shares) | 137,643,910 | 139,988,123 | 134,296,569 | 128,220,893 | ||
Net profit (loss) per stock attributable to common stockholders – basic (in dollars per share) | $ (0.14) | $ 0.03 | $ (0.20) | $ (0.02) | ||
Net profit (loss) per stock attributable to common stockholders – diluted (in dollars per share) | $ (0.14) | $ 0.03 | $ (0.20) | $ (0.02) | ||
Options And RSU's | ||||||
Denominator: | ||||||
Weighted-average number of stock used in computing net (loss) income per stock attributable to common stockholders – Effect of dilutive securities - options And RSU (share equivalent) (in shares) | 0 | 7,835,471 | 0 | 0 |
BASIC AND DILUTED NET (LOSS) _4
BASIC AND DILUTED NET (LOSS) INCOME PER SHARE - Securities Excluded from Computation of Earnings Per Share (Details) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Unvested RSU outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 15,723,452 | 7,991,829 | 15,723,452 | 8,002,502 |
Options outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 9,812,198 | 3,533,772 | 9,812,198 | 12,363,179 |
Warrants outstanding | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computation of earnings per share (in shares) | 10,222,500 | 10,222,500 | 10,222,500 | 10,222,500 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - subsidiary | Aug. 02, 2023 | Aug. 04, 2022 |
Subsequent Event [Line Items] | ||
Number of wholly owned subsidiaries | 2 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Number of wholly owned subsidiaries | 2 |