Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 22, 2024 | Jun. 30, 2023 | |
Entity Listings [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 001-40566 | ||
Entity Registrant Name | TABOOLA.COM LTD. | ||
Entity Central Index Key | 0001840502 | ||
Entity Incorporation, State or Country Code | L3 | ||
Entity Tax Identification Number | 00-0000000 | ||
Entity Address, Address Line One | 16 Madison Square West | ||
Entity Address, Address Line Two | 7th Floor | ||
Entity Address, City or Town | New York | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10010 | ||
City Area Code | 212 | ||
Local Phone Number | 206-7633 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 676.3 | ||
Entity Common Stock, Shares Outstanding | 295,463,243 | ||
Auditor Firm ID | 1281 | ||
Auditor Name | Kost Forer Gabbay & Kasierer | ||
Auditor Location | Tel-Aviv, Israel | ||
Non-Voting Ordinary Shares [Member] | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Warrants to purchase ordinary shares | ||
Trading Symbol | TBLAW | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 45,198,702 | ||
Ordinary Shares [Member] | |||
Entity Listings [Line Items] | |||
Title of 12(b) Security | Ordinary shares, no par value | ||
Trading Symbol | TBLA | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 176,108 | $ 165,893 |
Short-term investments | 5,725 | 96,914 |
Restricted deposits | 1,407 | 750 |
Trade receivables (net of allowance for credit losses of $10,207 and $6,748 as of December 31, 2023 and 2022, respectively) (Note 19) | 306,307 | 256,708 |
Prepaid expenses and other current assets | 69,865 | 73,643 |
Total current assets | 559,412 | 593,908 |
NON-CURRENT ASSETS | ||
Long-term prepaid expenses | 39,602 | 42,945 |
Commercial agreement asset | 289,451 | 0 |
Restricted deposits | 4,247 | 4,059 |
Deferred tax assets, net | 0 | 3,821 |
Operating lease right of use assets | 61,746 | 66,846 |
Property and equipment, net | 72,155 | 73,019 |
Intangible assets, net | 125,258 | 189,156 |
Goodwill | 555,931 | 555,869 |
Total non-current assets | 1,148,390 | 935,715 |
Total assets | 1,707,802 | 1,529,623 |
CURRENT LIABILITIES | ||
Trade payables (Note 19) | 282,012 | 247,504 |
Short-term operating lease liabilities | 20,264 | 14,753 |
Accrued expenses and other current liabilities | 118,689 | 102,965 |
Current maturities of long-term loan | 3,000 | 3,000 |
Total current liabilities | 423,965 | 368,222 |
LONG-TERM LIABILITIES | ||
Long-term loan, net of current maturities | 142,164 | 223,049 |
Long-term operating lease liabilities | 49,450 | 57,928 |
Warrants liability | 6,129 | 6,756 |
Deferred tax liabilities, net | 14,815 | 34,133 |
Other long-term liabilities | 14,217 | 5,000 |
Total long-term liabilities | 226,775 | 326,866 |
COMMITMENTS AND CONTINGENCIES (Note 18) | ||
SHAREHOLDERS' EQUITY | ||
Ordinary shares | 0 | 0 |
Treasury Ordinary shares, at cost - 15,240,471 and 0 shares as of December 31, 2023 and 2022, respectively | (55,513) | 0 |
Additional paid-in capital | 1,262,093 | 903,789 |
Accumulated other comprehensive income (loss) | 942 | (834) |
Accumulated deficit | (150,460) | (68,420) |
Total shareholders' equity | 1,057,062 | 834,535 |
Total liabilities and shareholders' equity | 1,707,802 | 1,529,623 |
Non-Voting Ordinary Shares [Member] | ||
SHAREHOLDERS' EQUITY | ||
Ordinary shares | $ 0 | $ 0 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Trade receivables, allowance for credit losses | $ 10,207 | $ 6,748 |
SHAREHOLDERS' EQUITY | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 700,000,000 | 700,000,000 |
Ordinary shares, shares issued (in shares) | 295,670,620 | 254,133,863 |
Ordinary shares, shares outstanding (in shares) | 295,670,620 | 254,133,863 |
Treasury ordinary shares (in shares) | 15,240,471 | 0 |
Non-Voting Ordinary Shares [Member] | ||
SHAREHOLDERS' EQUITY | ||
Ordinary shares, par value (in dollars per share) | $ 0 | $ 0 |
Ordinary shares, shares authorized (in shares) | 46,000,000 | 46,000,000 |
Ordinary shares, shares issued (in shares) | 45,198,702 | 0 |
Ordinary shares, shares outstanding (in shares) | 45,198,702 | 0 |
CONSOLIDATED STATEMENTS OF LOSS
CONSOLIDATED STATEMENTS OF LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF LOSS [Abstract] | |||
Revenues (Note 19) | $ 1,439,685 | $ 1,401,150 | $ 1,378,458 |
Cost of revenues: | |||
Traffic acquisition cost (Note 19) | 903,866 | 831,508 | 859,595 |
Other cost of revenues | 110,261 | 105,389 | 77,792 |
Total cost of revenues | 1,014,127 | 936,897 | 937,387 |
Gross profit | 425,558 | 464,253 | 441,071 |
Operating expenses: | |||
Research and development | 136,255 | 129,276 | 117,933 |
Sales and marketing | 246,342 | 246,803 | 206,089 |
General and administrative | 106,698 | 101,839 | 130,314 |
Total operating expenses | 489,295 | 477,918 | 454,336 |
Operating loss | (63,737) | (13,665) | (13,265) |
Finance income (expenses), net | (12,804) | 9,213 | 11,293 |
Loss before income taxes expenses | (76,541) | (4,452) | (1,972) |
Income tax expenses | (5,499) | (7,523) | (22,976) |
Net loss | (82,040) | (11,975) | (24,948) |
Less: Undistributed earnings allocated to participating securities | 0 | 0 | (11,944) |
Net loss attributable to Ordinary and Non-voting Ordinary shares, basic | $ (82,040) | $ (11,975) | $ (36,892) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders | |||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS [Abstract] | |||
Net loss | $ (82,040) | $ (11,975) | $ (24,948) |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on available-for-sale marketable securities, net | 515 | (521) | 0 |
Unrealized gains (losses) on derivative instruments, net | 1,261 | (313) | 0 |
Other comprehensive income (loss) | 1,776 | (834) | 0 |
Comprehensive loss | $ (80,264) | $ (12,809) | $ (24,948) |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Convertible Preferred Shares [Member] | Non-Voting Ordinary Shares [Member] Ordinary Shares [Member] | Ordinary Shares [Member] | Treasury Ordinary Shares [Member] | Additional Paid-in Capital [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Deficit [Member] | Total |
Beginning balance at Dec. 31, 2020 | $ 170,206 | |||||||
Beginning balance (in shares) at Dec. 31, 2020 | 121,472,152 | |||||||
Beginning balance at Dec. 31, 2020 | $ 0 | $ 0 | $ 0 | $ 78,137 | $ 0 | $ (31,497) | $ 46,640 | |
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 41,357,049 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of Ordinary shares as part of the Merger and PIPE transaction | 285,378 | 285,378 | ||||||
Issuance of Ordinary shares as part of the Merger and PIPE transaction (in shares) | 43,971,516 | |||||||
Conversion of Preferred shares to Ordinary shares | $ (170,206) | 170,206 | 170,206 | |||||
Conversion of Preferred shares to Ordinary shares (in shares) | (121,472,152) | 121,472,152 | ||||||
Issuance of Ordinary shares related to business combination | 157,689 | 157,689 | ||||||
Issuance of Ordinary shares related to business combination (in shares) | 17,328,049 | |||||||
Share-based compensation expenses | 128,740 | 128,740 | ||||||
Exercise of options and vested RSUs | 10,018 | 10,018 | ||||||
Exercise of options and vested RSUs (in shares) | 9,902,983 | |||||||
Payments of tax withholding for share-based compensation | (6,152) | (6,152) | ||||||
Other comprehensive income (loss) | 0 | |||||||
Net loss | (24,948) | (24,948) | ||||||
Ending balance at Dec. 31, 2021 | $ 0 | |||||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | |||||||
Ending balance at Dec. 31, 2021 | $ 0 | $ 0 | 0 | 824,016 | 0 | (56,445) | 767,571 | |
Ending balance (in shares) at Dec. 31, 2021 | 0 | 234,031,749 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation expenses | 76,853 | 76,853 | ||||||
Exercise of options and vested RSUs | 8,671 | 8,671 | ||||||
Exercise of options and vested RSUs (in shares) | 18,875,104 | |||||||
Connexity issuance of Holdback | 0 | |||||||
Connexity issuance of Holdback (in shares) | 1,227,010 | |||||||
Payments of tax withholding for share-based compensation | (5,751) | (5,751) | ||||||
Other comprehensive income (loss) | (834) | (834) | ||||||
Net loss | (11,975) | (11,975) | ||||||
Ending balance at Dec. 31, 2022 | $ 0 | |||||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | |||||||
Ending balance at Dec. 31, 2022 | $ 0 | 903,789 | (834) | (68,420) | 834,535 | |||
Ending balance (in shares) at Dec. 31, 2022 | 254,133,863 | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Share-based compensation expenses | 66,584 | 66,584 | ||||||
Repurchase of Ordinary Shares | $ (55,513) | (55,513) | ||||||
Repurchase of Ordinary Shares (in shares) | (15,240,471) | |||||||
Exercise of options and vested RSUs | 7,461 | 7,461 | ||||||
Exercise of options and vested RSUs (in shares) | 16,088,737 | |||||||
Connexity issuance of Holdback | 0 | |||||||
Connexity issuance of Holdback (in shares) | 1,162,800 | |||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement | 288,063 | 288,063 | ||||||
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement (in shares) | 45,198,702 | 39,525,691 | ||||||
Payments of tax withholding for share-based compensation | (3,804) | (3,804) | ||||||
Other comprehensive income (loss) | 1,776 | 1,776 | ||||||
Net loss | (82,040) | (82,040) | ||||||
Ending balance at Dec. 31, 2023 | $ 0 | |||||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | |||||||
Ending balance at Dec. 31, 2023 | $ 0 | $ 0 | $ (55,513) | $ 1,262,093 | $ 942 | $ (150,460) | $ 1,057,062 | |
Ending balance (in shares) at Dec. 31, 2023 | 45,198,702 | 295,670,620 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | |||
Net loss | $ (82,040) | $ (11,975) | $ (24,948) |
Adjustments to reconcile net loss to net cash flows provided by operating activities: | |||
Depreciation and amortization | 96,512 | 91,221 | 53,111 |
Share-based compensation expenses | 64,331 | 74,921 | 127,957 |
Net loss (gain) from financing expenses | (816) | 4,476 | (2,320) |
Revaluation of the Warrants liability | (627) | (24,471) | (22,656) |
Amortization of loan and credit facility issuance costs | 1,619 | 2,009 | 402 |
Amortization of premium and accretion of discount on short-term investments, net | (914) | (679) | 0 |
Loss from disposal of property and equipment | 1,571 | 0 | 0 |
Change in operating assets and liabilities: | |||
Increase in trade receivables, net | (49,599) | (11,242) | (40,113) |
Decrease (increase) in prepaid expenses and other current assets and long-term prepaid expenses | 5,934 | (10,785) | (64,923) |
Increase (decrease) in trade payables | 36,563 | (16,825) | 23,862 |
Increase (decrease) in accrued expenses and other current liabilities and other long-term liabilities | 25,202 | (21,932) | 16,182 |
Decrease in deferred taxes, net | (15,496) | (17,329) | (1,581) |
Change in operating lease right of use assets | 16,830 | 15,528 | 14,529 |
Change in operating lease liabilities | (14,697) | (19,433) | (15,981) |
Net cash provided by operating activities | 84,373 | 53,484 | 63,521 |
Cash flows from investing activities | |||
Purchase of property and equipment, including capitalized internal-use software | (32,133) | (34,914) | (39,070) |
Cash paid in connection with acquisitions, net of cash acquired | 0 | (7,981) | (583,457) |
Proceeds from (investment in) restricted deposits | (730) | 91 | 2,067 |
Proceeds from maturities of short-term investments | 114,494 | 29,624 | 0 |
Purchase of short-term investments | (21,991) | (126,381) | 0 |
Net cash provided by (used in) investing activities | 59,640 | (139,561) | (620,460) |
Cash flows from financing activities | |||
Exercise of options and vested RSUs | 6,953 | 8,387 | 10,018 |
Issuance of Ordinary shares, net of offering costs | 0 | 0 | 285,378 |
Payment of tax withholding for share-based compensation expenses | (3,804) | (5,751) | (6,152) |
Repurchase of Ordinary shares | (55,513) | 0 | 0 |
Proceeds from long-term loan, net of debt issuance costs | 0 | 0 | 288,750 |
Repayment of long-term loan | (82,250) | (64,264) | (750) |
Costs associated with entering into a revolving credit facility | 0 | (1,245) | 0 |
Issuance of Warrants | 0 | 0 | 53,883 |
Net cash provided by (used in) financing activities | (134,614) | (62,873) | 631,127 |
Exchange rate differences on balances of cash and cash equivalents | 816 | (4,476) | 2,320 |
Increase (decrease) in cash and cash equivalents | 10,215 | (153,426) | 76,508 |
Cash and cash equivalents - at the beginning of the period | 165,893 | 319,319 | 242,811 |
Cash and cash equivalents - at the end of the period | 176,108 | 165,893 | 319,319 |
Cash paid during the year for: | |||
Income taxes | 18,011 | 28,798 | 15,475 |
Interest | 18,488 | 20,712 | 1,125 |
Non-cash investing and financing activities: | |||
Purchase of property and equipment, including capitalized internal-use software | 639 | 1,657 | 1,120 |
Share-based compensation included in capitalized internal-use software | 2,253 | 1,932 | 783 |
Creation of operating lease right-of-use assets | 11,730 | 17,269 | 4,520 |
Fair value of Ordinary shares issued as consideration of the acquisition | 0 | 0 | 157,689 |
Issuance of Ordinary shares and Non-voting Ordinary shares related to Commercial agreement | $ 288,063 | $ 0 | $ 0 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
GENERAL [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Taboola.com Ltd. (together with its subsidiaries, the “Company” or “Taboola”) was incorporated under the laws of the state of Israel on September 3, 2006. Taboola is a technology company that powers recommendations across the Open Web with an artificial intelligence-based, algorithmic engine developed since the Company began operations in 2007. Taboola partners with websites, devices, and mobile apps (collectively referred to as “digital properties”), to recommend editorial content and advertisements on the Open Web. Digital properties use Taboola’s technology platforms to achieve their business goals, such as driving new audiences to their sites and apps or increasing engagement with existing audiences. Taboola also provides monetization opportunities to digital properties by surfacing paid recommendations by advertisers. Taboola is a business-to-business company with no competing consumer interests. Taboola empowers advertisers to leverage its proprietary AI-powered recommendation platform to reach targeted audiences utilizing effective, native ad-formats across digital properties. As part of the Company e-Commerce offerings, it also syndicates its retailer advertisers’ monetized product listings and links (clickable advertisements) into commerce content-oriented consumer experiences on both the Open Web and within the dominant traditional ad platforms. Taboola generates revenues when people (consumers) click on, purchase from or, in some cases, view the ads that appear within its recommendation platform. The Company’s customers are the advertisers, merchants and affiliate networks that advertise on the Company’s platform (“Advertisers”). Advertisers pay Taboola for those clicks, purchases or impressions, and Taboola shares a portion of the resulting revenue with the digital properties who display those ads. b. On June 29, 2021 (the “Transaction Date”) one of Taboola’s subsidiaries merged with and into ION Acquisition Corp. 1 Ltd. (“ION”), with ION continuing as the surviving company and becoming Taboola’s direct, wholly-owned subsidiary, which was accounted for as a recapitalization, with no goodwill or other intangible assets recorded, in accordance with U.S. GAAP (the “Business Combination”). The Business Combination was consummated under a merger agreement with ION dated January 25, 2021 (the “Merger Agreement”). As result of the Business Combination, the Company’s Ordinary shares, no par value per share (the “Ordinary shares”) and Public Warrants (as defined in our Annual Report on Form 20-F for the year ended December 31, 2021 filed with the SEC on March 24, 2022), and together with the Private Warrants (as defined therein, the “Warrants”) began trading on The Nasdaq Global Market LLC on June 30, 2021, among other things. c. In September 2021, the Company entered into a registration rights agreement under which the Company agreed, in accordance with the terms of the registration right agreement, to register the Company’s Ordinary shares issued to the Seller (as defined in Note 7) for resale under the Securities Act of 1933, as amended. d. In November 2022, the Company announced it entered into a 30-year exclusive commercial agreement (the “Commercial agreement”) with Yahoo Inc. and affiliated entities (“Yahoo”), under which Taboola will power native advertising across all of Yahoo’s digital properties, expanding the Company’s native advertising offering. In connection with this transaction, and following approval by the Company’s shareholders on December 30, 2022, the articles of association of the Company were amended and restated (the “Articles”) in their entirety to include a Non-voting Ordinary share class with an authorized share capital of 46,000,000. On January 17, 2023 (the “Transaction closing date”), the Company closed the transaction related agreements, including the issuance of 39,525,691 Ordinary shares and 45,198,702 Non-voting Ordinary shares to Yahoo. Based on the closing share price, on January 17, 2023, of $3.40 per share, the aggregate fair value of the issued shares amounted to $288,063. As part of the Ordinary shares and Non-voting Ordinary shares issuance, the Company incurred $1,388 of issuance expenses. The Company accounts for the consideration paid to Yahoo (the “Commercial agreement asset”) as an up-front payment for Traffic acquisition costs paid to the digital property partner, which is amortized over the shorter of respective contractual terms and the economic benefit period of the digital property arrangement. The Company and Yahoo are still in the Commercial agreement transition period (as defined in the Commercial agreement), consequently the exclusivity period has not begun. For the year ended December 31, 2023, the Company did not record amortization expenses of the Commercial agreement asset. The Non-voting Ordinary shares are not entitled to vote on or receive notices with respect to any matter pursuant to our Articles and are not entitled to vote or to be counted for purposes of determining whether any vote required under the Articles has been approved by the requisite percentage of voting securities or to be counted towards any quorum required pursuant to the Articles. Except with respect to the voting rights and to the rights to receive notice of meetings of the shareholders, the Non-voting Ordinary shares have rights identical to the rights of Ordinary shares. In connection with the transaction, the Company and Yahoo entered into an Investor Rights Agreement, under which, inter alia, Yahoo is entitled, in certain circumstances, to cause the Company to register the Ordinary shares issued to Yahoo for resale under the Securities Act of 1933, as amended. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are denominated in U.S. dollars. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ from those estimates. The Company’s management regularly evaluates its estimates, primarily those related to: (1) revenue recognition criteria, including the determination of revenue reporting as gross versus net in the Company’s revenue arrangements, (2) allowances for credit losses, (3) operating lease assets and liabilities, including the incremental borrowing rate and terms and provisions of each lease, (4) the useful lives of its Commercial agreement asset, property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option pricing models to determine the fair value of share-based compensation (7) the fair value of financial assets and liabilities, including the fair value of marketable securities, Private Warrants and derivative instruments (8) the fair value of acquired intangible assets and goodwill annual impairment test, and (9) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. As of December 31, 2023, the impacts to the Company’s business due to geopolitical developments, such as the wars in Israel and Ukraine and other active or possible hostilities, and macroeconomic factors, such as rising interest rates, inflation and changes in foreign currency exchange rates, continue to evolve. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods. Functional Currency The Company’s functional currency is the U.S. dollars (“dollars”), as majority of the Company’s revenues and costs of revenues are denominated in dollars. Accordingly, foreign currency assets and liabilities are remeasured into dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred or the average exchange rate in the month in accordance with ASC 830, “Foreign Currency Matters”. Gains or losses from foreign currency exchange rate re-measurement and settlements are included in finance income (expenses), net in the consolidated statements of income (loss). Cash and cash equivalents Cash and cash equivalents consist of cash in banks and highly liquid marketable securities investments, money market account and funds, commercial paper and corporate debt securities, with an original maturity of three months or less at the date of purchase and are readily convertible to known amounts of cash. Restricted Deposits The Company’s restricted deposits primarily consist of bank deposits collateralizing the Company’s operating leases. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability, considering the principal or most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability, in an orderly transaction between market participants at the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - 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. Financial instruments consist of cash equivalents, restricted deposits, short-term investments, trade receivables, prepaid expenses and other current assets, trade payables, accrued expenses and other current liabilities, Warrants liability and derivative financial instruments. Short-term investments, Warrants liability and derivative financial instruments are stated at fair value on a recurring basis. Cash equivalents, restricted deposits, trade receivables, prepaid expenses and other current assets, trade payables, accrued expenses and other current liabilities, are stated at their carrying value, which approximates their fair value due to the short time to the expected receipt or payment date. Derivative Financial Instruments The Company enters into foreign currency forward and put and call option contracts with financial institution s to protect itself against the foreign exchange risks, mainly exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows related to salary expenses, for up to twelve months, The Company does not enter into derivative transactions for trading or speculative purposes. In accordance with ASC 815, “Derivatives and Hedging”, the Company recognizes all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on their intended use and their designation. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedge, changes in the fair value of these derivatives are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity in the consolidated balance sheets until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the consolidated statements of income (loss) to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in finance income (expenses), net, on the consolidated statements of income (loss). The Company accounts for its derivative financial instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the consolidated balance sheets at their fair value. Short-term investments The Company’s short-term investments consist of marketable securities. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (loss) as a component of shareholders’ equity, except for changes in allowance for expected credit losses, which are recorded in finance income (expenses), net. The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in finance income (expenses), net, in the consolidated statements of income (loss). If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. Realized gains and losses on available-for-sale marketable securities are included in the consolidated statements of income (loss). Trade Receivables and Allowance for Credit Losses Trade receivables are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days of the invoice. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience and current and future economic and market conditions. The estimate of the amount that may not be collected is based on the geographic location, aging and customer financial condition. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company writes-off receivables when they are deemed uncollectible, having exhausted all collection efforts. Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted deposits, short-term investments, trade receivables and other current assets, and derivative instruments. The Company’s cash, cash equivalents and restricted deposits are invested in major banks mostly in the United States, the United Kingdom and Israel. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. In the United States and United Kingdom, the Company deposits are maintained with commercial banks, which are insured by the U.S. Federal Deposit Insurance Corporation (“FDIC”) and Financial Services Compensation Scheme (“FSCS”), which is authorized by the Bank of England (acting in its capacity as the Prudential Regulation Authority), respectively. In Israel, commercial banks do not have government-sponsored deposit insurance. As of December 31, 2023, we maintained cash balances with U.S. and United Kingdom banks that significantly exceed FDIC and FSCS insurance limits and expect we will continue to do so. As of December 31, 2023, the Company has not experienced credit losses related to these balances. The Company’s short-term investments are investments in marketable securities with high credit ratings as required by the Company’s investment policy and are not insured or guaranteed. The Company’s trade receivables are geographically diversified and derived mainly from sales in the United States, Israel, Germany and United Kingdom. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its accounts receivables and establishes an allowance for expected losses as necessary. As of December 31, 2023 and 2022, no single customer represented 10% or more of accounts receivable. No single customer accounted for more than 10% of total revenue for the periods presented. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal, and other fees related to the Company’s Merger agreement. Following consummation of the Merger agreement and related transactions, the deferred offering costs were reclassified to shareholders’ equity and recorded against the proceeds from the transaction. The Company capitalized $2,096 of deferred offering costs within the long-term prepaid expenses in the consolidated balance sheets as of December 31, 2020. These costs were paid during the year ended December 31, 2021. Leases The Company accounts for its leases under ASU 2016-02, “Leases”. The Company determines if an arrangement is or contains a lease at inception. The Company has elected not to recognize short-term leases on the balance sheet, nor separate lease and non-lease components and currently does not have any finance leases. The operating lease operating lease right of use assets, or ROU assets, and related lease liability are initially measured at the present value of the future lease payments discounted using the Company’s incremental borrowing rate, because the rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. Some of the Company’s leases contain one or more options to extend. The exercise of lease renewal options is typically at the Company’s sole discretion. The Company considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether it is reasonably certain to exercise the options to extend the lease. Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index (“CPI”). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption, and will not be subsequently adjusted, unless the liability is reassessed for other reasons. Additional payments based on the change in a CPI are recorded as a period expense when incurred. Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: Years Computer equipment and software 3 - 4 Internal-use software 3 Office furniture and equipment 3 - 7 Leasehold improvements Over the shorter of expected lease term or estimated useful life Internal-Use Software Development Costs According to ASC 350-40 the Company capitalizes certain internal-use software development costs associated with creating and enhancing internal-use software related to its platform and technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software projects, and services consumed in developing or obtaining the software. Capitalized internal-use software is included in property and equipment, net in the consolidated balance sheets. Software development costs that do not meet the criteria for capitalization are expensed as incurred and recorded in research and development expenses in the consolidated statements of income (loss). Software development activities generally consist of three stages, (i) the planning stage, (ii) the application and infrastructure development stage, and (iii) the post implementation stage. Costs incurred in the planning and post implementation stages of software development, including costs associated with the post configuration training and repairs and maintenance of the developed technologies, are expensed as incurred. Costs incurred in the application and infrastructure development stages, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete, and the software and technologies are ready for their intended purpose. Internal-use software development costs are amortized using a straight-line method over the estimated useful life of three years, commencing when the software is ready for its intended use. Business Combinations The Company records acquisitions based on the fair value of the consideration transferred and then allocates the purchase price to the identifiable assets acquired and liabilities assumed based on their respective fair values as of the acquisition date. The excess of the value of consideration transferred over the aggregate fair value of those net assets is recorded as goodwill. Any identified definite lived intangible assets will be amortized over their estimated useful lives and any identified intangible assets with indefinite useful lives and goodwill will not be amortized but will be tested for impairment at least annually. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, merchant/network affiliate relationships, publisher relationships, technology, tradenames and discount rates. The Company estimates fair value based upon assumptions that are believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of income (loss). Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. Intangible Assets Intangible assets consist of identifiable intangible assets that the Company has acquired from previous business combinations. Intangible assets are recorded at fair value, net of accumulated amortization. The Company amortizes its intangible assets reflecting the pattern in which the economic benefits of the intangible assets are consumed. When a pattern cannot be reliably determined, the Company uses a straight-line amortization method. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances require a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Years Merchant / Network affiliate relationships 4.5 Publisher relationships 4 Tradenames 2 - 3 Technology 4 - 5 Customer relationships 5 - 9 Impairment of Long-Lived Assets The Company assesses the recoverability of its long-lived assets, whenever events or changes in circumstances indicate that their carrying value may not be recoverable, in accordance with ASC 360, “Property, Plant and Equipment”. Recoverability of a long-lived asset is measured by comparing the carrying value of the asset group to the projected undiscounted cash flows over their remaining lives. If the carrying value exceeds the projected undiscounted cash flows, an impairment loss is recognized. Impairment equals the amount by which the carrying value exceeds estimated fair value. An impairment loss is charged to consolidated statements of income (loss) in the period in which management determines such impairment. There was no impairment of long-lived assets in the years ended December 31, 2023, 2022 and 2021. Goodwill Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to impairment testing at the reporting unit level conducted annually on December 31, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. The Company identified a single reporting unit for the purpose of goodwill impairment testing. There was no impairment of goodwill in the years ended December 31, 2023, 2022 and 2021. Segment Information The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. Revenue Recognition Under ASC 606, “Revenues from Contracts with Customers”, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company performs the following five steps: (i) Identify the contract with a customer; (ii) Identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) Determine the transaction price, including the constraint on variable consideration; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue as the Company satisfies the performance obligations. The Company generates revenues when people click on, purchase from or, in some cases, view the ads that appear within its recommendation platform. The Company’s customers are the advertisers, merchants and affiliate networks that advertise on the Company’s platform (collectively, “Advertisers”). Advertisers pay Taboola for those clicks, purchases or impressions and Taboola generally shares the resulting revenue with the digital properties who display those ads. Advertisers accept the Company’s terms of service upon signature on an IO (insertion order) or any applicable form and registration to the platform. - For campaigns priced on a cost-per-click (“CPC”) basis, the Company bills the customers and recognizes revenues when a user clicks on an advertisement displayed. - For campaigns priced on a cost-per-thousand impression basis (“CPM”), the Company bills the customers and recognizes revenues based on the number of times an advertisement is displayed to a user. - For campaigns priced on a performance-based cost-per-action (“CPA”) basis, the Company bills the customers and recognizes revenues when a user makes an acquisition. The determination of whether revenue should be reported gross of amounts billed to Advertisers (gross basis) or net of payments to digital properties partners (net basis) requires significant judgment and is based on management assessment of whether the Company is acting as the principal or an agent in the transaction. The Company has determined that in certain arrangements it acts as principal because it has the ability to direct the services to its customers, while in others it does not. On revenues presented on a gross basis the Company has contracts with its digital properties that provide exclusivity and cover multiple years at inception. These agreements typically require that the Company’s code be integrated on the digital property web page. Thus, in the vast majority of the Company’s business, it does not bid for an ad placement, but rather it controls the specified pages before they are transferred to the customer, sees all users that visit the respective pages and is able to run a predictive auction and direct the ad placement to the relevant customer. The Company further concluded that (i) the Company is primarily responsible for fulfilling the promise to provide the service in the arrangement and controls what recommendations to place; (ii) the Company has latitude in establishing the contract price with the advertisers, and (iii) the Company has inventory risk on a portion of its multi-year agreement with digital properties. Therefore, based on these and other factors, the Company reports revenue earned on a gross basis. For those revenue arrangements where the Company does not control the advertising inventory before it is transferred to its Advertisers, does not have inventory risks as the Company does not purchase the advertising inventory upfront or has limited discretion in establishing prices, the Company believes it acts as an agent and recognizes revenue and related costs incurred on a net basis. Trade receivables are recorded at the amount of gross billings the Company is responsible to collect, trade payables, representing liabilities towards digital properties, are recorded at the amount payable to publishers. Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. Cost of Revenues The Company’s cost of revenue primarily includes Traffic acquisition costs and other cost of revenue. Traffic acquisition cost Tr The second model includes guarantees. Other cost of revenue . Research and Development Research and development expenses consist primarily of personnel costs, including salaries, bonuses, share-based compensation and employee benefits costs, allocated facilities costs, professional services and depreciation. Warrants Liability The Company evaluated the Public Warrants and Private Warrants (collectively: “Warrants”) in accordance with ASC 815-40, ‘‘Derivatives and Hedging — Contracts in Entity’s Own Equity’’, and concluded that a provision in the Warrants Agreement related to certain tender or exchange offers, as well as provisions that provided for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant, preclude the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815 and are not eligible for an exception from derivative accounting, the Warrants are recorded as derivative liabilities in the consolidated balance sheets and measured at fair value at inception (on June 29, 2021, the date of the Business Combination) and at each reporting period in accordance with ASC 820, ‘‘Fair Value Measurement’’, with changes in fair value presented within finance income (expense), net in the consolidated statements of loss in the period of change. The Company established the initial fair value for the Warrants as of June 29, 2021, the date of the Business Combination, using a quoted price for the Public Warrants and a Black-Scholes simulation model for the Private Warrants. The Private Warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs. The key inputs into the Black-Scholes model for the Private Warrants as of December 31, 2023 and 2022, were as follows: Input December 31, 2023 2022 Risk-free interest rate 4.04% - 4.28 % 4.08% - 4.18 % Expected term (years) 1.75 - 2.50 2.75 - 3.50 Expected volatility 61.1% - 63.9 % 67.5% - 69.3 % Exercise price $ 11.50 $ 11.50 Underlying stock price $ 4.33 $ 3.08 The Company’s use of a Black-Scholes model required the use of subjective assumptions: ● The risk-free interest rate assumption was interpolated based on constant maturity U.S. Treasury rates over a term commensurate with the expected term of the Private Warrants. ● The expected term was based on the maturity of the Private Warrants of five years following June 29, 2021, the Business Combination date, and for certain Private Warrants the maturity was determined to be five years from the date of the October 1, 2020, ION initial public offering effective date. ● The expected share volatility assumption was based on the implied volatility from a set of comparable publicly-traded companies as determined based on size and proximity. Share-Based Compensation Share-based compensation expense related to share-based awards is recognized based on the fair value of the awards granted and recognized as an expense over the requisite service period for share options and RSUs. The Company elects the straight-line recognition method for awards subject to graded vesting based only on a service condition and implements the accelerated method for awards that are subject to a performance condition. The compensation expense associated with performance based RSUs is adjusted based on the probability of achieving performance targets. Forfeitures are accounted for as they occur. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The fair value of each RSU award is based on the fair value of the underlying ordinary shares on the grant date. The assumptions used to determine the fair value of the share awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The fair value of each option award is estimated using the following assumptions: Year ended December 31, 2022 2021 Volatility 66.0% - 66.9 % 51.5% - 65.6 % Risk-free interest rate 1.86% - 3.78 % 0.61% - 1.36 % Dividend yield 0 % 0 % Expected term (in years) 5.49 - 6.1 5 - 6.86 The Company did not grant options awards during the year ended December 31, 2023. These assumptions and estimates were determined as follows: Fair Value of Ordinary Shares. Risk-Free Interest Rate. The risk-free rate for the expected term of the options is based on the yields of the U.S. Treasury securities with maturities appropriate for the expected term of employee share option awards. Expected Term. The expected term represents the period that options are expected to be outstanding. The Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Expected Volatility. Since the Company has a limited trading history of its Ordinary shares, the expected volatility is derived from the average historical share volatilities based on peer group public companies that the Company considers to be comparable to its own business over a period equivalent to the option’s expected term. Expected Dividend Yield. The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used. Income taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted for in accordance with ASC 740, “Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis as well as operating |
CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
CASH AND CASH EQUIVALENTS | NOTE 3:- CASH AND CASH EQUIVALENTS The following table presents for each reported period, the breakdown of cash and cash equivalents: December 31, 2023 2022 Cash $ 99,811 $ 142,127 Money market accounts and funds 72,510 22,583 Time deposits 3,787 1,183 Total Cash and cash equivalents $ 176,108 $ 165,893 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 4 :- FAIR VALUE MEASUREMENTS The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. The Company did not have any transfers between fair value measurements levels in the years ended December 31, 2023, 2022 and 2021. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2023 and 2022, by level within the fair value hierarchy: Fair value measurements as of Description Fair Value Hierarchy December 31, 2023 December 31, 2022 Assets: Cash equivalents: Money market accounts and funds Level 1 $ 72,510 $ 22,583 Short-term investments: Corporate debt securities Level 2 $ 3,651 $ 21,636 Commercial paper Level 2 $ 2,074 $ 8,565 U.S. government treasuries Level 2 $ — $ 46,222 U.S. agency bonds Level 2 $ — $ 20,491 Derivative instruments asset: Derivative instruments designated as cash flow hedging instruments Level 2 $ 948 $ — Liabilities: Warrants liability: Public Warrants Level 1 $ (4,253 ) $ (2,856 ) Private Warrants Level 3 $ (1,876 ) $ (3,900 ) Derivative instruments liability: Derivative instruments designated as cash flow hedging instruments Level 2 $ — $ (313 ) The Company classifies as Level 1 based on quoted market prices in active markets. The Company classifies its short-term investments and derivative instruments within Level 2 as they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. The Company measures the fair value for Warrants by using a quoted price for the Public Warrants, which are classified as Level 1, and a Black-Scholes simulation model for the Private Warrants, which are classified as Level 3, due to the use of unobservable inputs. The following table presents the changes in the fair value of Warrants liability: Input Private Warrants Public Warrants Total Warrants Fair value as of December 31, 2022 $ 3,900 $ 2,856 $ 6,756 Change from private to public holdings (2,025 ) 2,025 — Change in fair value 1 (628 ) (627 ) Fair value as of December 31, 2023 $ 1,876 $ 4,253 $ 6,129 |
SHORT-TERM INVESTMENTS
SHORT-TERM INVESTMENTS | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS [Abstract] | |
SHORT-TERM INVESTMENTS | NOTE 5 :- SHORT-TERM INVESTMENTS The following is a summary of available-for-sale marketable securities: December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate debt securities $ 3,654 $ — $ (3 ) $ 3,651 Commercial paper 2,077 — (3 ) 2,074 Total $ 5,731 $ — $ (6 ) $ 5,725 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government treasuries $ 46,452 $ — $ (230 ) $ 46,222 Corporate debt securities 21,762 — (126 ) 21,636 U.S. agency bonds 20,622 — (131 ) 20,491 Commercial paper 8,599 — (34 ) 8,565 Total $ 97,435 $ — $ (521 ) $ 96,914 As of December 31, 2023 and 2022, the unrealized losses related to marketable securities (which were accumulated in a period of less than 12 months) were not due to credit losses, and therefore, the Company did not record an allowance for credit losses for its available-for-sale marketable securities. As of December 31, 2023, all of the Company’s available-for-sale marketable securities were due within one year. |
DERIVATIVE INSTRUMENTS AND HEDG
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES | NOTE 6 :- DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES The Company records all cash flow hedging instruments on the consolidated balance sheets at fair value. The fair values of outstanding derivative instruments designated as cash flow hedging instruments were as follows: December 31, 2023 2022 Prepaid expenses and other current assets $ 948 $ — Accrued expenses and other current liabilities $ — $ 313 As of December 31, 2023 and 2022, the notional amounts of the Company’s derivative instruments designated as cash flow hedging instruments outstanding in U.S. dollars amounted to $39,347 and $38,669, respectively. The Company had no derivative instruments or hedging activities as of December 31, 2021. Effect of Foreign Currency Contracts on the Consolidated Statements of loss The effect of foreign currency contracts designated as cash flow hedge on the consolidated statements of loss, for the years ended December 31, 2023 and 2022, were as follows: Year ended December 31, 2023 2022 Cost of revenues $ 155 $ 450 Research and development 1,619 3,244 Sales and marketing 305 620 General and administrative 296 538 Total losses recognized in the consolidated statements of loss, net $ 2,375 $ 4,852 Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income (Loss) Net unrealized gains (losses) of foreign currency contracts designated as cash flow hedging instruments are recorded in accumulated other comprehensive income (loss). The changes in unrealized gains (losses) on the Company’s derivative instruments recorded in accumulated other comprehensive income (loss) were as follows: Year ended December 31, 2023 2022 Unrealized losses on derivative instruments, beginning of period $ (313 ) $ — Changes in fair value of derivative instruments (1,114 ) (5,165 ) Reclassification of losses recognized in the consolidated statements of loss from accumulated other comprehensive income (loss) 2,375 4,852 Unrealized gains (losses) on derivative instruments, end of period $ 948 $ (313 ) A ll net deferred gains in accumulated other comprehensive income (loss) as of December 31, 2023, are expected to be recognized over the next twelve months as operating expenses in the same financial statement line item in the consolidated statements of loss to which the derivative relates |
BUSINESS COMBINATIONS
BUSINESS COMBINATIONS | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATION [Abstract] | |
BUSINESS COMBINATION | NOTE 7 :- BUSINESS COMBINATION Connexity On September 1, 2021, the Company completed the acquisition of Shop Holding Corporation (“Connexity”) (the “Connexity Acquisition”), an independent e-Commerce media platform in the open web, from Shop Management, LLC (“Seller”). Connexity is a technology and data-driven integrated marketing services company focused on the e-commerce ecosystem. Through a focus on performance-based retail marketing, Connexity enables retailers and brands to understand their consumers better, acquire new customers at a lower cost, and increase sales from their target consumers. Connexity offers a comprehensive range of marketing services to online retailers and brands in the U.S. and Europe, including syndicated product listings, search marketing, and customer insights. Connexity corporate headquarters is in Santa Monica, California, and the Company also maintains an office in Karlsruhe, Germany. In accordance with the acquisition method of accounting, the total purchase price for the Connexity Acquisition was $753,217, comprised of $593,894 in cash and $157,689 based on the fair value of 17,328,049 shares of the Company’s Ord inary shares on the closing date and additional subsequent payment of During the year ended December 31, 2022, the Company performed final settlement of net working capital transactions that resulted in a net decrease of $374 in Goodwill. The Company incurred acquisition-related transaction costs of $6,432 during the year ended December 31, 2021, which were included in general and administrative expenses in the consolidated statements of loss. The Company also committed to issue 3,681,030 of the Company’s Ordinary shares to certain Connexity employees (the “Holdback agreement”), to be released to those employees over the period of three years after the acquisition date, subject to their continued service and expensed over the applicable service periods . In the years ended December 31, 2023 and 2022, pursuant to the Holdback agreement, the Company issued 1,162,800 Ordinary shares and 1,227,010 Ordinary shares, respectively. In addition, pursuant to the purchase agreem The following table summarizes the final fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 10,437 Other current assets 50,785 Intangible assets 270,025 Goodwill 530,800 Other noncurrent assets 8,432 Total assets acquired 870,479 Current liabilities 66,769 Deferred tax liability, net 50,493 Total liabilities assumed 117,262 Total purchase consideration $ 753,217 Goodwill represents the purchase price paid in excess of the fair value of net tangible and intangible assets acquired, and is attributable primarily to expected synergies, economies of scale and the assembled workforce of Connexity. Goodwill is not deductible for income tax purposes. The following table presents components of the identified intangible assets acquired and their estimated useful lives as of date of acquisition: Useful life Fair value (In years) Merchant/Network affiliate relationships (1) $ 146,547 4.5 Technology (1) 56,548 5.0 Publisher relationships (2) 42,933 4.0 Tradenames (2) 23,997 3.0 Total Intangible assets acquired $ 270,025 ___________________________________________ (1) Fair value was determined by using the income approach. (2) Fair value was determined by using the cost approach. The results of operations of Connexity have been included in the consolidated financial statements since the acquisition date of September 1, 2021. Connexity revenue included in the Company’s consolidated statement of operations from September 1, 2021, through December 31, 2021, was $37,692. There is no practical way to determine net income attributable to Connexity due to integration. The following unaudited pro forma combined financial information table presents the results of operations of the Company and Connexity as if the acquisition of Connexity have been completed on January 1, 2020. The unaudited pro forma financial information includes adjustments primarily related to amortization of the acquired intangible assets, recognition of transaction costs and bonuses, recognition of share-based compensation associated with RSU grants to Connexity employees and the holdback consideration, as noted above. The unaudited pro forma results have been prepared for illustrative purposes only and are not necessarily indicative of what the actual results of operations of the Company and Connexity, combined, would have been due to any synergies, economies of scale and the assembled workforce of Connexity. Year ended December 31, Unaudited 2021 2020 Revenues $ 1,433,555 $ 1,258,214 Net income (loss) $ (50,312 ) $ (144,146 ) Gravity R&D Zrt. In July 2022, the Company completed the acquisition of Gravity R&D Zrt. (“Gravity R&D”) a privately-held company based in Budapest, Hungary, which provides personalization recommendation services, for a total consideration of $7,035, net of cash acquired. As part of a purchase price allocation, $1,780 was attributed to identified intangible assets and $5,925 to goodwill In 2022, total acquisition-related transaction costs of $742 were incurred in relation to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of loss The results of Gravity R&D operations were consolidated in the Company’s consolidated financial statements commencing on the date of the acquisition and were immaterial to the Company’s results of operations for the year ended December 31, 2022. Pro forma information has not been provided, since the impact of Gravity R&D’s financial results were immaterial to the revenue and net loss of the Company. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 8 :- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2023 2022 Prepaid expenses $ 48,878 $ 51,110 Government institutions 10,691 15,277 Derivative instruments 948 — Other current asset 9,348 7,256 Total prepaid expenses and other current assets $ 69,865 $ 73,643 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 9 :- PROPERTY AND EQUIPMENT, NET Property and equipment, net consist of the following: December 31, 2023 2022 Computer and equipment and software $ 192,555 $ 180,064 Internal-use software 62,864 48,433 Leasehold improvements 18,926 19,211 Office furniture and equipment 3,679 5,155 Property and equipment, gross 278,024 252,863 Less accumulated depreciation (205,869 ) (179,844 ) Property and equipment, net $ 72,155 $ 73,019 The Company capitalized internal-use software costs of $14,431 and $14,954 for the years ended December 31, 2023 and 2022, respectively. The Company’s capitalized internal-use software amortization is included in cost of revenues in the Company’s consolidated statements of loss and totaled to $12,446, $5,422 and $1,923 for the years ended December 31, 2023, 2022 and 2021, respectively. Total depreciation expenses (including amortization of internal-use software) for the years ended December 31, 2023, 2022 and 2021, were $32,624, $27,664 and $30,104, respectively. For the years ended December 31, 2023, 2022 and 2021, the Company wrote off fully depreciated property and equipment, which were no longer in use, with a cost basis of $6,599, $2,393 and $0, respectively. |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS, NET | NOTE 10 :- GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table represents the changes in the carrying amounts of the Company’s total goodwill: Carrying Amount Balance as of December 31, 2021 $ 550,380 Purchase accounting adjustment (1) (374 ) Additions from acquisition (2) 5,863 Balance as of December 31, 2022 555,869 Purchase accounting adjustment (2) 62 Balance as of December 31, 2023 $ 555,931 __________________________________________ (1) Related to the Connexity acquisition. (2) Related to the Gravity R&D acquisition. Intangible Assets, Net Definite-lived intangible assets, net consist of the following: December 31, 2023 Gross Fair Value Accumulated Amortization Net Book Value Weighted- Remaining Life (In years) Merchant/Network affiliate relationships $ 146,547 $ (75,987 ) $ 70,560 2.17 Technology 74,193 (43,535 ) 30,658 2.67 Publisher relationships 42,933 (25,044 ) 17,889 1.67 Tradenames 24,097 (18,739 ) 5,358 0.67 Customer relationship 13,146 (12,353 ) 793 2.76 Total $ 300,916 $ (175,658 ) $ 125,258 December 31, 2022 Gross Fair Value Accumulated Amortization Net Book Value Weighted- Remaining Life (In years) Merchant/Network affiliate relationships $ 146,547 $ (43,421 ) $ 103,126 3.17 Technology 74,193 (32,042 ) 42,151 3.66 Publisher relationships 42,933 (14,311 ) 28,622 2.67 Tradenames 24,097 (10,689 ) 13,408 1.67 Customer relationship 13,156 (11,307 ) 1,849 2.66 Total $ 300,926 $ (111,770 ) $ 189,156 Amortization expenses for intangible assets were $63,888, $63,557 and $23,007 for the years ended December 31, 2023, 2022 and 2021, respectively. The estimated future amortization expense of definite-lived intangible assets as of December 31, 2023, is as follows: Year Ending December 31, 2024 $ 60,518 2025 51,407 2026 13,244 2027 89 Total $ 125,258 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 11:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2023 2022 Employees and related benefits $ 42,976 $ 27,559 Accrued expenses 20,782 12,862 Government authorities 19,038 22,177 Advances from customers 15,008 23,797 Accrued vacation pay 12,659 11,761 Derivative instruments — 313 Other 8,226 4,496 Total accrued expenses and other current liabilities $ 118,689 $ 102,965 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
LEASES | NOTE 12:- LEASES The main operating lease expenses include leases of office locations, data centers and vehicles. The lease terms of the Company’s operating leases generally range from 2 years to 11 years, with various expiration dates through 2033. The following table presents supplemental information related to the operating leases: December 31, 2023 2022 Weighted average remaining operating lease term in years 4.3 5.4 Weighted average discount rate of operating leases 5.45 % 4.36 % The Company lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. The components of lease expense related to leases for the years ended December 31, 2023, 2022 and 2021, were as follows: Year ended December 31, 2023 2022 2021 Components of lease expense: Operating lease cost $ 20,286 $ 18,218 $ 17,102 Short-term lease cost and variable lease cost 2,462 1,735 583 Sublease income (167 ) (447 ) — Maturities of lease liabilities as of December 31, 2023, were as follows: Amount Year Ending December 31, 2024 $ 22,828 2025 17,926 2026 14,454 2027 10,164 2028 5,613 Thereafter 8,264 Total undiscounted lease payments $ 79,249 Less: imputed interest (9,535 ) Present value of lease liabilities $ 69,714 |
FINANCING ARRANGEMENTS
FINANCING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
FINANCING ARRANGEMENTS [Abstract] | |
FINANCING ARRANGEMENTS | Long-term loan Concurrently with the closing of the Connexity Acquisition, on September 1, 2021, the Company entered into a $300,000 senior secured term loan credit agreement (the “Credit Agreement”), among the Company, Taboola Inc., a wholly-owned Company’s subsidiary (the “Borrower”), the lenders party thereto and JPMorgan Chase Bank, N.A., as administrative agent. The Credit Agreement provides for borrowings in an aggregate principal amount of up to $300,000 (the “Facility”). The Facility was fully drawn at closing, net of issuance expenses of $11,250, and the proceeds were used by the Company to finance a portion of the Connexity Acquisition. The Facility is subject to customary borrowing conditions. The Credit Agreement was amended on June 12, 2023, to replace LIBOR with SOFR and accordingly the Facility bears interest at a variable annual rate based on Term SOFR or Base Rate plus a fixed margin. The Facility will mature on the seven The Facility is mandatorily prepayable with a portion of the net cash proceeds of certain dispositions of assets, a portion of Taboola’s excess cash flow and the proceeds of incurrences of indebtedness not permitted under the Credit Agreement. The Credit Agreement also contains customary representations, covenants and events of default. Failure to meet the covenants beyond applicable grace periods could result in acceleration of outstanding borrowings and/or termination of the Facility. As of December 31, 2023, the Company was in compliance with the Facility covenants. In the years ended December 31, 2023 and 2022 the Company voluntarily prepaid the principal amount of the outstanding debt under the Credit Agreement of $79,250 and $61,265, respectively. As of December 31, 2023, the total future principal payments related to Facility loan are as follows: Amount Year Ending December 31, 2024 $ 3,000 2025 3,000 2026 3,000 2027 3,000 2028 140,735 Total $ 152,735 The Facility is guaranteed by the Company and all of its wholly-owned material subsidiaries, subject to certain exceptions set forth in the Credit Agreement (collectively, the “Guarantors”). The obligations of the Borrower and the Guarantors are secured by substantially all the assets of the Borrower and the Guarantors including stock of subsidiaries, subject to certain exceptions set forth in the Credit Agreement. The total interest expenses, including issuance costs amortization, recognized in connection with the long-term loan, were $19,885 and $18,675, for the years ended December 31, 2023 and 2022, respectively. The long-term loan interest and issuance costs amortization, included as interest expenses, are recognized through the remaining term of the Credit Agreement using the effective interest rate. Revolving Credit Agreement On August 9, 2022, the Company amended its Credit Agreement to provide for a five-year senior secured revolving credit facility (the “Revolving Credit Agreement”), among the Company, Taboola Inc., a wholly-owned Company’s subsidiary (the “Borrower”), and the lenders party thereto, with Citibank N.A., as lead arranger and JPMorgan Chase Bank, N.A., as administrative agent. The Revolving Credit Agreement provides for revolving loans in an aggregate committed principal amount of up to $90,000 (the “Revolving Loans”). Certain representations, events of default and covenants of the Revolving Credit Agreement are substantially the same as those in the Credit Agreement. However, the Revolving Credit Agreement contains a financial covenant requiring the Company to maintain a Total Net Leverage Ratio (as defined in the Credit Agreement) as at the last day of each fiscal quarter. Borrowings under the Revolving Credit Agreement are subject to customary conditions and will bear interest at a variable annual rate based on Term SOFR or Base Rate plus a fixed margin. The lenders under the Credit Agreement and the lenders under the Revolving Credit Agreement are secured by the same collateral, including substantially all the assets of the Borrower and the Guarantors (as defined in the Credit Agreement) including shares of subsidiaries, subject to certain exceptions in the governing documents. The proceeds of any Revolving Loans may be used for the working capital, capital expenditures and other general corporate purposes of Taboola and its subsidiaries and may also be used for Restricted Payments, Investments (including permitted acquisitions) and Restricted Debt Payments (each, as defined in the Credit Agreement) to the extent permitted under the Credit Agreement. As of December 31, 2023, the Company was in compliance with the financial covenants and had no outstanding borrowings under the Revolving Credit Agreement. As of December 31, 2023 and 2022, deferred financing costs associated with entering into the Revolving Credit Agreement in the total amount of $893 and $1,147, respectively, were included in short-term and long-term prepaid expenses in the Company’s consolidated balance sheet. The deferred financing costs are amortized on a straight-line basis over the term of the Revolving Credit Agreement. For the years ended December 31, 2023 and 2022, deferred financing costs amortization amounted to $254 and $98, respectively. |
RESTRUCTURING
RESTRUCTURING | 12 Months Ended |
Dec. 31, 2023 | |
RESTRUCTURING [Abstract] | |
RESTRUCTURING | NOTE 14 :- RESTRUCTURING In September 2022, the Company announced and implemented a cost restructuring program impacting approximately 6% of the Company’s global headcount. This strategic reduction was intended to manage the Company’s operating expenses in response to market conditions and ongoing business prioritization efforts. The restructuring expenses recognized in the consolidated statements of loss for the year ended December 31, 2022, primarily consisting of one-time incremental employee termination benefits and other costs related to Company’s business prioritization, were as follows: Year ended December 31, 2022 Cost of revenues $ 99 Research and development 1,815 Sales and marketing 1,176 General and administrative 293 Total restructuring expenses recognized in the consolidated statements of loss $ 3,383 As of December 31, 2022, $88 related to restructuring expenses were included in “Accrued expenses and other current liabilities” in the consolidated balance shee t, and were subsequently paid in 2023 |
SHAREHOLDERS' EQUITY AND SHARE
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS [Abstract] | |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS | NOTE 15 :- SHAREHOLDERS’ EQUITY AND SHARE INCENTIVE PLANS Share capital Holders of Ordinary shares have the right to receive notice of, and to participate in, all general meetings of the Company, where each Ordinary share shall have one vote. Each holder has the right to receive dividends, if any, in proportion to their respective Ordinary share holdings. In the event of Taboola’s liquidation, after satisfaction of liabilities to creditors, Company assets will be distributed to the holders of its Ordinary shares in proportion to their shareholdings. Share Incentive Plans a. During the years 2007, 2016, 2017 and 2020, the Company adopted several share incentive plans (together the “Legacy Plans”) to provide incentives to the Company’s employees, directors, consultants and/or contractors. In June 2021, immediately following the effective date of the registration statement on Form F-4, the Company adopted (i) the 2021 Share Incentive Plan (the “2021 Plan”, and together with the Legacy Plans, the “Plans”) and (ii) the Employee Stock Purchase Plan (the “ESPP”). Following the effectiveness of the 2021 Plan, the Company ceased making awards under the Legacy Plans, although previously granted awards under the Legacy Plans remain outstanding. Under the Plans, the Company’s employees, directors, consultants and/or contractors are or were eligible to be granted equity-related awards, including options to acquire the Company’s Ordinary shares, restricted share units (“RSUs”) and restricted shares As of December 31, 2023, the maximum number of the Company’s Ordinary shares available for issuance under the 2021 Plan is equal to the sum of (i) 31,932,902 Ordinary shares, (ii) any shares subject to awards under the Legacy Plans which have expired, or were canceled, terminated, forfeited or settled in cash in lieu of issuance of shares or become unexercisable without having been exercised, and (iii) an annual increase on the first day of each year beginning in 2022 and on January 1 of each calendar year thereafter during the term of the 2021 Plan, equal to the lesser of (A) 5% of the outstanding shares on the last day of the immediately preceding calendar year and (B) such amount as determined by the Company’s board of directors if so determined prior to January 1 of a calendar year. As of December 31, 2023, the maximum number of the Company’s Ordinary shares available for issuance under the ESPP shall not exceed in the aggregate 6,386,580 Ordinary shares. The ESPP share pool will be increased on the first day of each fiscal year during the term of the ESPP in an amount equal to the lesser of (i) 6,386,580 the Company’s ordinary shares, (ii) 2% of the total number of shares of the Ordinary shares outstanding (on a fully diluted basis) on the last day of the immediately preceding fiscal year, and (iii) such amount as determined by the Company’s board of directors if so determined prior to January 1 of a calendar year. As of December 31, 2023, the ESPP has not been activated and no Ordinary shares had been issued under the ESPP, therefore in the last two years the Company’s board of directors decided to disable the automatic enlargement feature included in the ESPP, as described above. b. On November 21, 2023, the Company received the approval of the Israeli court for its motion to extend, to May 16, 2024, its former motion to allow the Company to utilize the net issuance mechanism to satisfy tax withholding obligations related to equity-based compensation on behalf of its directors, officers and other employees and possible future share repurchases (the “Program”) of up to $50,000. The Company’s board of directors have the authority to determine the amount to be utilized for the Program. For the years ended December 31, 2023, 2022 and 2021, the Company utilized the net issuance mechanism in connection with equity-based compensation for certain Office Holders, which resulted in a tax withholding payment by the Company of $3,804, $5,751 and $6,152, respectively, which were recorded as a reduction of additional paid-in capital. c. The following is a summary of share option activity and related information for the year ended December 31, 2023 (including employees, directors, officers and consultants of the Company): Outstanding Share Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance as of December 31, 2022 35,488,179 $ 3.08 6.72 $ 40,516 Exercised (5,610,638 ) 1.30 Forfeited (586,256 ) 5.91 Balance as of December 31, 2023 29,291,285 $ 3.35 5.27 $ 57,118 Exercisable as of December 31, 2023 24,738,145 $ 2.78 4.89 $ 53,284 During the year ended December 31, 2023, the Company did not grant options (see Note 2). The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the period. The weighted-average grant date fair value of options granted during the years ended December 31, 2022 and 2021, was $3.07 and $9.32, respectively. The total intrinsic value of options exercised during the years ended December 31, 2023, 2022 and 2021, was $11,866, $26,473 and $49,224, respectively. As of December 31, 2023, unrecognized share-based compensation cost related to unvested share options was $13,614, which is expected to be recognized over a weighted-average period of 1.45 years. d. The following is a summary of the RSU activity and related information for the year ended December 31, 2023: Outstanding Restricted shares Unit Weighted Average Grant Date Fair Value Balance as of December 31, 2022 23,521,009 $ 6.60 Granted 13,384,846 3.54 Vested (1) (10,478,099 ) 5.78 Forfeited (2,948,448 ) 5.72 Balance as of December 31, 2023 23,479,308 $ 5.13 ____________________________________________ (1) A portion of the shares that vested were netted out to satisfy the tax obligations of the recipients. During the year ended December 31, 2023, a total of 1,164,891 RSUs were canceled to satisfy tax obligations, resulting in net issuance of 1,164,873 Ordinary shares. The total release date fair value of RSUs was $36,221, for the year ended December 31, 2023. The weighted-average grant date fair value of RSUs granted during the years ended December 31 2023, 2022 and 2021, was $3.54, $5.47 and $9.53, respectively. As of December 31, 2023, unrecognized share-based compensation cost related to unvested RSUs was $98,807, which is expected to be recognized over a weighted-average period of 2.5 years. The total share-based compensation expense related to all of the Company’s share-based awards recognized for the years ended December 31, 2023, 2022 and 2021, were comprised as follows: Year ended December 31, 2023 2022 2021 Cost of revenues $ 3,924 $ 3,092 $ 1,891 Research and development 24,471 26,433 29,022 Sales and marketing 16,397 22,615 44,834 General and administrative 19,539 22,781 52,210 Total share-based compensation expense $ 64,331 $ 74,921 $ 127,957 Restricted shares The Triggering Event is defined as, among other things, the Company’s shares becoming publicly traded, or a sale of the Company, or a merger of the Company with another company. If the Triggering Event is not consummated by such date, the RSUs are forfeited. The Triggering Event occurred on June 30, 2021, as a result of the Company’s shares becoming publicly traded on that date. The time-based vesting condition for 6,598,489 RSUs was considered to have been satisfied as of the date of grant, and the remainder satisfies the time-based condition on a monthly basis over 24 months from the date of grant, conditioned on continued service to the Company. Of the options granted, 1,441,162 options were fully vested as of the grant date, 1,858,083 vested in a lump sum on December 31, 2021, and the remainder vest on a monthly basis over 24 months from the date of grant, conditioned on continued service to the Company. Share Buyback Program In May 2023, the Company’s board of directors authorized a share buyback program for the repurchase of up to $40,000 of the Company’s outstanding Ordinary shares, with no expiration date (the “Buyback Program”). In November 2023, the Company’s board of directors authorized up to an additional $40,000 of buybacks under the Buyback Program. As permitted by the Buyback Program, share repurchases may be made from time to time, in privately negotiated transactions or in the open market, including through trading plans, at the discretion of the Company’s management and as permitted by securities laws and other legal requirements. The Buyback Program does not obligate the Company to repurchase any specific number of shares and may be discontinued, modified or suspended at any time. The Buyback Program commenced in June 2023 and during the year ended December 31, 2023, the Company repurchased 15,240,471 Ordinary shares at an average price of $3.62 per share (excluding broker and transaction fees of $367). As of December 31, 2023, the Company had remaining authorization to repurchase up to an aggregate amount of $24,854, which has been mostly utilized subsequent to the balance sheet date. Subsequent to December 31, 2023, in February 2024, the Company’s board of directors authorized up to $100,000 for use under the Buyback Program, including any remaining authority from the November 2023 board of directors authorization, subject to obtaining any required Israeli court approvals. |
EMPLOYEES CONTRIBUTION PLAN
EMPLOYEES CONTRIBUTION PLAN | 12 Months Ended |
Dec. 31, 2023 | |
EMPLOYEES CONTRIBUTION PLAN [Abstract] | |
EMPLOYEES CONTRIBUTION PLAN | NOTE 16:- EMPLOYEES CONTRIBUTION PLAN a. Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The employees of the Israeli subsidiary elected to be included under section 14 of the Severance Pay Law, 1963 (“section 14”). According to this section, these employees are entitled only to monthly deposits, at a rate of 8.33% of their monthly salary, made in their name with insurance companies. Payments in accordance with section 14 release the Company from any future severance payments (under the above Israeli Severance Pay Law) in respect of those employees; therefore, related assets and liabilities are not presented in the balance sheet. For the years ended December 31, 2023, 2022 and 2021, the Company recorded $5,989, $6,638 and $5,709, respectively, in severance expenses related to these employees. b. The Company offers a 401(k) Savings plan in the U.S. that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code (the “401(k) Plan”). Under the 401(k) Plan, participating employees can contribute up to 100% of their eligible compensation, subject to certain limitations. The 401(k) Plan provides for a discretionary employer matching contribution. The Company matches 50% of participating employee contributions to the plan up to 6% of the employee’s eligible compensation. For the years ended December 31, 2023, 2022 and 2021, the Company recorded $1,769, $1,766 and $1,169, respectively, of expenses related to the 401(k) plan. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 17:- INCOME TAXES Tax rates Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. However, the effective tax rate payable by a company that derives income from a Preferred Technological Enterprise (as discussed below) may be considerably lower. Non-Israeli subsidiaries are taxed according to the tax laws in their jurisdictions. Tax benefits applicable to the Company The Law for the Encouragement of Industry (Taxes), 1969: The Law for the Encouragement of Industry (Taxes), 1969 (the “Encouragement of Industry Law”), provides several tax benefits for “Industrial Companies”. Pursuant to the Encouragement of Industry Law, a company qualifies as an Industrial Company if it is a resident of Israel, the enterprise should be located in Israel and at least 90% of its income in any tax year (exclusive of income from government loans, capital gains, interest and dividends) is generated from an “Industrial Enterprise” that it owns. An Industrial Enterprise is defined as an enterprise whose principal activity, in a given tax year, is industrial activity. An Industrial Company is entitled to certain tax benefits, including: (i) a deduction of the cost of purchases of patents, know-how and certain other intangible property rights (other than goodwill) used for the development or promotion of the Industrial Enterprise in equal amounts over a period of eight years, beginning from the year in which such rights were first used, (ii) the right to elect to file consolidated tax returns, under certain conditions, with additional Israeli Industrial Companies controlled by it, and (iii) the right to deduct expenses related to public offerings in equal amounts over a period of three years beginning from the year of the offering. Eligibility for benefits under the Encouragement of Industry Law is not contingent upon the approval of any governmental authority. The Company believes that it currently qualifies as an industrial company within the definition of the Encouragement of Industry Law. Tax benefits under the Law for the Encouragement of Capital Investments, 1959: Pursuant to the Israeli Law for Encouragement of Capital Investments, 1959 (the “Investments Law”) and its various amendments, the Company has been granted a “Privileged Enterprise” status. The Company has utilized a tax exemption status for the years 2018 and 2019. The benefits available to a Privileged Enterprise in Israel relate only to taxable income attributable to the specific investment program and are conditioned upon terms stipulated in the Investments Law. If the Company does not fulfill these conditions, in whole or in part, the benefits can be revoked, and the Company may be required to refund the benefits, in an amount linked to the Israeli consumer price index plus interest. Tax exempt earnings are subject to claw back of the corporate tax return when they are distributed as dividend. On November 15, 2021, the Investments Law was amended in order, inter alia, to encourage companies to voluntarily elect for an immediate payment of corporate tax on previously tax-exempted earnings which were earned pursuant to Approved and Privileged Enterprises (the “Amendment”). The Amendment provides a reduced corporate tax payment on Exempt Earnings accumulated until December 30, 2020, that were not yet distributed as a dividend, all subject to certain qualifying terms and conditions. The Company had $45,244 in tax-exempt earnings attributable to the Privileged Enterprise programs. The Company elected to utilize the Amendment in December 2021 and paid the reduced corporate income tax in the amount of approximately $4,355. As a result of the election, as of December 31, 2021 the Company released all of its previously tax-exempt earnings and they are no longer subject to claw back of corporate taxes upon future dividend distribution. The Technological Enterprise Incentives Regime (Amendment 73 to the Investments Law): The Company applies various benefits allotted to it under the revised Investments Law as per Amendment 73 to the Investments Law regimes through regulations that have come into effect from January 1, 2017. Applicable benefits under the new regime include: ● Introduction of a benefit regime for “Preferred Technology Enterprises” (“PTE”), granting a 12% tax rate in central Israel on income deriving from benefited intangible assets, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual research and development expenditure and research and development employees, as well as having at least 25% of annual income derived from exports to large markets. PTE is defined as an enterprise which meets the aforementioned conditions and for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A “Special Preferred Technological Enterprise” (“SPTE”) from which total consolidated revenues of the Group of which the Company is a member exceeds NIS 10 billion in the tax year will be subject to tax at a rate of 6% on preferred income from the enterprise, regardless of the enterprise’s geographical location. ● A 12% capital gains tax rate on the sale of a preferred intangible asset to a foreign affiliated enterprise, provided that the asset was initially purchased from a foreign resident at an amount of NIS 200 million or more. ● A withholding tax rate of 20% for dividends paid from PTE income (with an exemption from such withholding tax applying to dividends paid to an Israeli company) may be reduced to 4% on dividends paid to a foreign resident company, subject to certain conditions regarding percentage of foreign ownership of the distributing entity. The Company is eligible for PTE status which is implemented commencing 2021 and believes it is eligible for its tax benefits. In 2023, the Company received a Tax Ruling from the Israeli Tax Authority that its activity is an industrial activity and is eligible for the status of a PTE, provided that the Company meets the requirements under the tax ruling. As of December 31, 2023, management believes that the Company meets the aforementioned conditions. U.S. Tax On December 22, 2017, the Tax Cuts and Jobs Act (P.L. 115-97) (“TCJA”) was enacted, making significant changes to the U.S. tax law. Changes include, but are not limited to, a corporate income tax rate decrease from 35% to 21%, effective for tax years beginning January 1, 2018 and the transition of U.S. international taxation from a worldwide tax system to a modified territorial system, with a one-time mandatory transition tax on U.S. shareholder’s share of post-1986 earnings of all foreign corporations in which it owns at least 10% and created new taxes on certain foreign-sourced earnings and certain related-party payments - the Global Intangible Low Taxed Income (“GILTI”). Furthermore, changes introduced by the Tax Act to Section 174 of the Internal Revenue Code, that came into effect on January 1, 2022, require taxpayers to amortize research and development expenditures over five years (if expensed by a U.S. entity) or fifteen years (if expensed by non-U.S. entities), thereby increasing taxable income and payable tax. In addition to lowering the statutory corporate income tax rate from 35% to 21%, and among other U.S. international tax provisions, the TCJA introduced the Base Erosion Anti-abuse Tax (“BEAT”) which applies a minimum tax on multinational corporations by requiring companies subject to the BEAT to pay the greater of their regular tax liability (less certain credits, including foreign tax credits) or 10% for taxable years beginning in 2019 (12.5% after 2026) of a modified tax base which adds back certain related party payments. The BEAT comparison to the standard corporate income tax must be done each year if the taxpayer’s “base erosion” related party payments exceed 3% of total deductions on its U.S. tax return (“base erosion percentage” is generally the aggregate amount of base erosion tax benefits divided by aggregate amount of all allowable deductions). The BEAT applies to “applicable taxpayers” making “base erosion payments” (deductible payments) to foreign related parties. “Applicable taxpayers” are U.S. corporations with average annual gross receipts for the 3-taxable-year period ending with the preceding taxable year are at least $500,000. Taboola Inc. is an “applicable taxpayer” for BEAT purposes in 2023. Pillar two In December 2021, the Organization for Economic Co-operation and Development Inclusive Framework on Base Erosion Profit Shifting released Model Global Anti-Base Erosion rules (“Model Rules”) under Pillar Two. The Model Rules set forth the “common approach” for a global minimum tax rate at 15% for multinational enterprises with a turnover of more than Euros 750 million. Rules under Pillar Two were effective from January 1, 2024. The Company is currently evaluating the impact of adopting Pillar Two rules on its consolidated financial statements. In certain jurisdictions, information required for the assessment is still being gathered and, therefore, the assessment is not complete. Based on the transitional CbCR safe harbor tests carried out so far, Taboola Group has identified potential impact to Pillar Two top-up taxes on profits earned in Australia, Korea and Thailand. The potential impact comes from the constituent entities in these jurisdictions where according to the transitional CbCR safe harbor tests, the simplified effective tax rate is below 15%. Quantitative information to indicate the impact to Pillar Two top-up taxes is currently not known or reasonably estimable. Taboola continues to progress on the assessment and expects to complete the assessment during the year 2024. a. The components of the loss before taxes were as follows: Year ended December 31, 2023 2022 2021 Israel $ (65,764 ) $ (24,819 ) $ (42,414 ) Foreign (10,777 ) 20,367 40,442 Total $ (76,541 ) $ (4,452 ) $ (1,972 ) b. Taxes on income (tax benefit) are comprised as follows: Year ended December 31, 2023 2022 2021 Current: Israel $ 1,363 $ 15 $ 4,685 Foreign 19,632 23,332 18,944 Total current income tax expense 20,995 23,347 23,629 Deferred: Israel — 1,388 973 Foreign (15,496 ) (17,212 ) (1,626 ) Total deferred income tax benefit (15,496 ) (15,824 ) (653 ) Total income taxes $ 5,499 $ 7,523 $ 22,976 A reconciliation of the Company’s theoretical income tax expense to actual income tax expense is as follows: Year ended December 31, 2023 2022 2021 Loss before taxes on income, as reported in the consolidated statements of loss $ (76,541 ) $ (4,452 ) $ (1,972 ) Statutory tax rate in Israel 23 % 23 % 23 % Preferred Technology Enterprise (9 %) (61 %) (244 %) Permanent difference - nondeductible expenses (9 %) 86 % (557 %) Change in valuation allowance (11 %) (109 %) (138 %) Income taxes at a rate other than the Israel statutory tax rate (2 %) (164 %) (12 %) Release of tax-exempt profits under preferred enterprise tax regime — — (221 %) Prior year taxes 2 % 35 % 36 % Uncertain tax positions (6 %) (10 %) (36 %) Other 5 % 31 % (16 %) Effective tax rate (7 %) (169 %) (1,165 %) Deferred tax assets and liabilities: Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2023 and 2022, the deferred tax assets and liabilities presented in the balance sheet are comprised as follow: December 31, 2023 2022 Deferred tax assets $ — $ 3,821 Deferred tax liabilities $ (14,815 ) $ (34,133 ) As of December 31, 2023, and 2022 the Company’s deferred taxes were in respect of the following: December 31, 2023 2022 Operating lease liabilities $ 14,225 $ 14,751 Research and development 3,111 9,151 Share-based compensation expenses 10,408 8,095 Tax credit carry forward 9,657 4,356 Reserves and allowances 6,146 3,888 Carry forward tax losses 8,227 2,770 Issuance and transaction expenses 533 2,111 Intangible assets, net 1,643 1,963 Other 3,082 842 Deferred tax assets before valuation allowance 57,032 47,927 Valuation allowance (24,781 ) (16,376 ) Deferred tax assets 32,251 31,551 Intangible assets, net (31,208 ) (46,095 ) Operating lease right of use assets (12,368 ) (13,530 ) Property and equipment, net (2,031 ) (2,023 ) Capitalized research and development (966 ) — Other (493 ) (215 ) Deferred tax liabilities (47,066 ) (61,863 ) Deferred tax liabilities, net $ (14,815 ) $ (30,312 ) A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset certain deferred tax assets on December 31, 2023 and 2022, due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. As of December 31, 2023, the Company has an accumulated tax loss carry-forward of approximately $64,062 in Israel, which does not have an expiration date, and $1,533 federal tax in the U.S. which can be offset in accordance with the limitation as desribed in Section 382 of the code due to U.S. subsidiary’s prior “change in ownership”. The annual limitation may result in the expiration of net operating losses before utilization. As of December 31, 2023, $149,887 of undistributed earnings held by the Company’s foreign subsidiaries are designated as indefinitely reinvested. If these earnings were re-patriated to Israel, they would be subject to income taxes and to an adjustment for foreign tax credits and foreign withholding taxes in the amount of $13,006. The Company did not recognize deferred taxes liabilities on undistributed earnings of its foreign subsidiaries, as the Company intends to indefinitely reinvest those earnings. A reconciliation of the beginning and ending balance of total unrecognized tax positions is as follows: Year ended December 31, 2023 2022 Unrecognized tax position, beginning of year $ 3,537 $ 3,084 Increase (decrease) related to prior years’ tax positions (1) 3,382 (387 ) Increase related to current year tax positions 1,727 1,070 Decrease due to lapses of statutes of limitations (430 ) (230 ) Unrecognized tax position, end of year $ 8,216 $ 3,537 ___________________________________________ (1) The 2023 prior year’s tax positions includes $2,684 from prior year tax provision. As of December 31, 2023, the total amount of gross uncertain tax benefits was $8,216, out of which an amount of $8,129, if recognized, would affect the Company’s effective tax rate. The Company operates in multiple jurisdictions throughout the world, and its tax returns are periodically audited or subject to review by both domestic and foreign authorities. The Company currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate. As of December 31, 2023 and 2022, unrecognized tax benefit in the amount of $87 and $81, was presented net of deferred tax assets. Tax assessments: The Company has final tax assessments in Israel through 2018, in the UK through 2018, and in the US through 2019. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 18:- COMMITMENTS AND CONTINGENCIES Commercial Commitments In the ordinary course of the business, the Company enters into agreements with certain digital properties, under which, in some cases it agrees to pay them a guaranteed amount, generally per thousand page views on a monthly basis. These agreements could cause a gross loss on digital property accounts in which the guarantee is higher than the actual revenue generated. These contracts generally range in duration from 2 to 5 years, though some can be shorter or longer. Non-cancelable Purchase Obligations In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties to purchase primarily software and IT related-based services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations in the amount of $27,128. Legal Proceedings a. In April 2021, the Company became aware that the Antitrust Division of the U.S. Department of Justice is conducting a criminal investigation of hiring activities in the Company’s industry, including the Company. The Company cooperated with the Antitrust Division. In July 2023, the Company was notified in writing by the Antitrust Division of the U.S. Department of Justice that it was no longer a subject or target of the previously disclosed criminal investigation of hiring activities in the Company’s industry, including the Company. b. In the ordinary course of business, the Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims. The Company investigates these claims as they arise and record a provision, as necessary. Provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, it believes would individually, or in the aggregate, have a material adverse effect on its business, financial position, results of operations, or cash flows. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2023 | |
RELATED PARTY TRANSACTIONS [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 19 :- RELATED PARTY TRANSACTIONS The Company is a party to certain transaction-related agreements with Yahoo, pursuant to which the Company issued 39,525,691 Ordinary shares and 45,198,702 Non-voting Ordinary shares to Yahoo, and granting Yahoo the right to appoint one representative to the Company’s board of directors, resulting in Yahoo to become a principal shareholder effective the Transaction closing on January 17, 2023 (see Note 1b). The Company and its affiliates are parties to several agreements in the ordinary course of business with Yahoo and its affiliates. In connection with these agreements, for the year ended December 31, 2023, the Company recorded revenues from Yahoo in the amount of $40,902. In addition, the Company recorded traffic acquisition costs related to Yahoo for the year ended December 31, 2023, in the amount of $45,183, respectively. Traffic acquisition costs noted herein are unaffiliated with the Yahoo revenues recorded for this period. As of December 31, 2023, in regards to Yahoo, the Company’s balances of trade receivables were $12,297, and its balances of trade payables were $38,657, associated with the revenues presented on a gross and net basis. The Company and Yahoo, pursuant to the Omnibus Agreement entered into on November 28, 2022, each agreed to pay certain expenses in connection with the transaction and each party agreed to reimburse the other for some or all of these expenses. Under these arrangements, the Company recognized $3,650, of expenses, net for the year ended December 31, 2023 |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
GEOGRAPHIC INFORMATION [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 20:- GEOGRAPHIC INFORMATION The following table represents total revenue by geographic area based on the Advertisers’ billing address: Year ended December 31, 2023 2022 2021 Israel $ 144,048 $ 189,956 $ 173,535 United States 564,603 519,463 545,944 United Kingdom 78,080 72,697 69,927 Germany 132,041 123,485 148,036 Rest of the world 520,913 495,549 441,016 Total $ 1,439,685 $ 1,401,150 $ 1,378,458 The following table represents the Company’s long-lived assets (1), net by geographic area: December 31, 2023 2022 Israel $ 73,951 $ 73,931 United States 44,921 46,277 United Kingdom 6,290 11,836 Rest of the world 8,739 7,821 Total $ 133,901 $ 139,865 ___________________________________________ (1) Long-lived assets are comprised of property and equipment, net and operating lease right-of-use assets |
NET LOSS PER SHARE ATTRIBUTABLE
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2023 | |
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS [Abstract] | |
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS | NOTE 21:- NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS Year ended December 31, 2023 2022 2021 Ordinary shares Non-voting Ordinary shares Ordinary shares Non-voting Ordinary shares Ordinary shares Non-voting Ordinary shares Numerator: Net loss attributable to Ordinary shareholders, basic and diluted $ (71,833 ) $ (10,207 ) $ (11,975 ) $ — $ (36,892 ) $ — Denominator: Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic and diluted 303,282,558 43,093,556 254,284,781 Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted $ (0.24 ) $ (0.24 ) $ (0.05 ) $ — $ (0.26 ) $ — The potential number of Ordinary shares that were excluded from the computation of diluted net loss per share attributable to Ordinary shareholders for the periods presented because including them would have been anti-dilutive is as follows: Year ended December 31, 2023 2022 2021 RSUs 25,554,224 18,063,802 12,927,049 Outstanding share options 27,397,556 30,284,408 43,149,797 Warrants 12,349,990 12,349,990 12,349,990 Issuable Ordinary shares related to business combination under holdback arrangement 1,647,292 2,380,736 — Total 66,949,062 63,078,936 68,426,836 |
INSIDER TRADING ARRANGEMENTS
INSIDER TRADING ARRANGEMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with United States Generally Accepted Accounting Principles (“U.S. GAAP”) and are denominated in U.S. dollars. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with the U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting period and accompanying notes. Actual results could differ from those estimates. The Company’s management regularly evaluates its estimates, primarily those related to: (1) revenue recognition criteria, including the determination of revenue reporting as gross versus net in the Company’s revenue arrangements, (2) allowances for credit losses, (3) operating lease assets and liabilities, including the incremental borrowing rate and terms and provisions of each lease, (4) the useful lives of its Commercial agreement asset, property and equipment and capitalized software development costs, (5) income taxes, (6) assumptions used in the option pricing models to determine the fair value of share-based compensation (7) the fair value of financial assets and liabilities, including the fair value of marketable securities, Private Warrants and derivative instruments (8) the fair value of acquired intangible assets and goodwill annual impairment test, and (9) the recognition and disclosure of contingent liabilities. These estimates are based on historical data and experience, as well as various other factors that management believes to be reasonable under the circumstances; the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. As of December 31, 2023, the impacts to the Company’s business due to geopolitical developments, such as the wars in Israel and Ukraine and other active or possible hostilities, and macroeconomic factors, such as rising interest rates, inflation and changes in foreign currency exchange rates, continue to evolve. As events continue to evolve and additional information becomes available, the Company’s estimates may change materially in future periods. |
Functional Currency | Functional Currency The Company’s functional currency is the U.S. dollars (“dollars”), as majority of the Company’s revenues and costs of revenues are denominated in dollars. Accordingly, foreign currency assets and liabilities are remeasured into dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred or the average exchange rate in the month in accordance with ASC 830, “Foreign Currency Matters”. Gains or losses from foreign currency exchange rate re-measurement and settlements are included in finance income (expenses), net in the consolidated statements of income (loss). |
Cash and cash equivalents | Cash and cash equivalents Cash and cash equivalents consist of cash in banks and highly liquid marketable securities investments, money market account and funds, commercial paper and corporate debt securities, with an original maturity of three months or less at the date of purchase and are readily convertible to known amounts of cash. |
Restricted Deposits | Restricted Deposits The Company’s restricted deposits primarily consist of bank deposits collateralizing the Company’s operating leases. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability, considering the principal or most advantageous market in which it would transact and assumptions that market participants would use when pricing the asset or liability, in an orderly transaction between market participants at the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 - 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. Financial instruments consist of cash equivalents, restricted deposits, short-term investments, trade receivables, prepaid expenses and other current assets, trade payables, accrued expenses and other current liabilities, Warrants liability and derivative financial instruments. Short-term investments, Warrants liability and derivative financial instruments are stated at fair value on a recurring basis. Cash equivalents, restricted deposits, trade receivables, prepaid expenses and other current assets, trade payables, accrued expenses and other current liabilities, are stated at their carrying value, which approximates their fair value due to the short time to the expected receipt or payment date. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency forward and put and call option contracts with financial institution s to protect itself against the foreign exchange risks, mainly exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows related to salary expenses, for up to twelve months, The Company does not enter into derivative transactions for trading or speculative purposes. In accordance with ASC 815, “Derivatives and Hedging”, the Company recognizes all derivatives on the consolidated balance sheets at fair value. The accounting for changes in the fair value (i.e., gains or losses) of a derivative instrument depends on their intended use and their designation. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedge, changes in the fair value of these derivatives are recorded in accumulated other comprehensive income (loss) as a component of shareholders’ equity in the consolidated balance sheets until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the consolidated statements of income (loss) to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in finance income (expenses), net, on the consolidated statements of income (loss). The Company accounts for its derivative financial instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the consolidated balance sheets at their fair value. |
Short-term investments | Short-term investments The Company’s short-term investments consist of marketable securities. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (loss) as a component of shareholders’ equity, except for changes in allowance for expected credit losses, which are recorded in finance income (expenses), net. The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in finance income (expenses), net, in the consolidated statements of income (loss). If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. Realized gains and losses on available-for-sale marketable securities are included in the consolidated statements of income (loss). |
Trade Receivables and Allowance for Credit Losses | Trade Receivables and Allowance for Credit Losses Trade receivables are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days of the invoice. The Company’s expected loss allowance methodology for accounts receivable is developed using historical collection experience and current and future economic and market conditions. The estimate of the amount that may not be collected is based on the geographic location, aging and customer financial condition. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. The Company writes-off receivables when they are deemed uncollectible, having exhausted all collection efforts. |
Concentrations of Credit Risk | Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash, cash equivalents, restricted deposits, short-term investments, trade receivables and other current assets, and derivative instruments. The Company’s cash, cash equivalents and restricted deposits are invested in major banks mostly in the United States, the United Kingdom and Israel. The Company maintains cash and cash equivalents with diverse financial institutions and monitors the amount of credit exposure to each financial institution. In the United States and United Kingdom, the Company deposits are maintained with commercial banks, which are insured by the U.S. Federal Deposit Insurance Corporation (“FDIC”) and Financial Services Compensation Scheme (“FSCS”), which is authorized by the Bank of England (acting in its capacity as the Prudential Regulation Authority), respectively. In Israel, commercial banks do not have government-sponsored deposit insurance. As of December 31, 2023, we maintained cash balances with U.S. and United Kingdom banks that significantly exceed FDIC and FSCS insurance limits and expect we will continue to do so. As of December 31, 2023, the Company has not experienced credit losses related to these balances. The Company’s short-term investments are investments in marketable securities with high credit ratings as required by the Company’s investment policy and are not insured or guaranteed. The Company’s trade receivables are geographically diversified and derived mainly from sales in the United States, Israel, Germany and United Kingdom. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. The Company performs ongoing credit evaluations of its accounts receivables and establishes an allowance for expected losses as necessary. As of December 31, 2023 and 2022, no single customer represented 10% or more of accounts receivable. No single customer accounted for more than 10% of total revenue for the periods presented. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. |
Deferred Offering Costs | Deferred Offering Costs Deferred offering costs consist primarily of accounting, legal, and other fees related to the Company’s Merger agreement. Following consummation of the Merger agreement and related transactions, the deferred offering costs were reclassified to shareholders’ equity and recorded against the proceeds from the transaction. The Company capitalized $2,096 of deferred offering costs within the long-term prepaid expenses in the consolidated balance sheets as of December 31, 2020. These costs were paid during the year ended December 31, 2021. |
Leases | Leases The Company accounts for its leases under ASU 2016-02, “Leases”. The Company determines if an arrangement is or contains a lease at inception. The Company has elected not to recognize short-term leases on the balance sheet, nor separate lease and non-lease components and currently does not have any finance leases. The operating lease operating lease right of use assets, or ROU assets, and related lease liability are initially measured at the present value of the future lease payments discounted using the Company’s incremental borrowing rate, because the rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on similar terms and payments and in economic environments where the leased asset is located. Some of the Company’s leases contain one or more options to extend. The exercise of lease renewal options is typically at the Company’s sole discretion. The Company considers various factors such as market conditions and the terms of any renewal options that may exist to determine whether it is reasonably certain to exercise the options to extend the lease. Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index (“CPI”). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption, and will not be subsequently adjusted, unless the liability is reassessed for other reasons. Additional payments based on the change in a CPI are recorded as a period expense when incurred. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: Years Computer equipment and software 3 - 4 Internal-use software 3 Office furniture and equipment 3 - 7 Leasehold improvements Over the shorter of expected lease term or estimated useful life |
Internal-Use Software Development Costs | Internal-Use Software Development Costs According to ASC 350-40 the Company capitalizes certain internal-use software development costs associated with creating and enhancing internal-use software related to its platform and technology infrastructure. These costs include personnel and related employee benefits expenses for employees who are directly associated with and who devote time to software projects, and services consumed in developing or obtaining the software. Capitalized internal-use software is included in property and equipment, net in the consolidated balance sheets. Software development costs that do not meet the criteria for capitalization are expensed as incurred and recorded in research and development expenses in the consolidated statements of income (loss). Software development activities generally consist of three stages, (i) the planning stage, (ii) the application and infrastructure development stage, and (iii) the post implementation stage. Costs incurred in the planning and post implementation stages of software development, including costs associated with the post configuration training and repairs and maintenance of the developed technologies, are expensed as incurred. Costs incurred in the application and infrastructure development stages, including significant enhancements and upgrades, are capitalized. Capitalization ends once a project is substantially complete, and the software and technologies are ready for their intended purpose. Internal-use software development costs are amortized using a straight-line method over the estimated useful life of three years, commencing when the software is ready for its intended use. |
Business Combinations | Business Combinations The Company records acquisitions based on the fair value of the consideration transferred and then allocates the purchase price to the identifiable assets acquired and liabilities assumed based on their respective fair values as of the acquisition date. The excess of the value of consideration transferred over the aggregate fair value of those net assets is recorded as goodwill. Any identified definite lived intangible assets will be amortized over their estimated useful lives and any identified intangible assets with indefinite useful lives and goodwill will not be amortized but will be tested for impairment at least annually. When determining the fair value of assets acquired and liabilities assumed, management makes significant estimates and assumptions, including the selection of valuation methodologies, estimates of future revenues and cash flows, discount rates, especially with respect to intangible assets. Critical estimates in valuing certain intangible assets include, but are not limited to, future expected cash flows from customer relationships, merchant/network affiliate relationships, publisher relationships, technology, tradenames and discount rates. The Company estimates fair value based upon assumptions that are believed to be reasonable, but which are inherently uncertain and unpredictable and, as a result, actual results may differ from estimates. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of income (loss). Acquisition-related transaction costs are not included as a component of consideration transferred, but are accounted for as an expense in the period in which the costs are incurred. |
Intangible Assets | Intangible Assets Intangible assets consist of identifiable intangible assets that the Company has acquired from previous business combinations. Intangible assets are recorded at fair value, net of accumulated amortization. The Company amortizes its intangible assets reflecting the pattern in which the economic benefits of the intangible assets are consumed. When a pattern cannot be reliably determined, the Company uses a straight-line amortization method. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances require a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Years Merchant / Network affiliate relationships 4.5 Publisher relationships 4 Tradenames 2 - 3 Technology 4 - 5 Customer relationships 5 - 9 |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company assesses the recoverability of its long-lived assets, whenever events or changes in circumstances indicate that their carrying value may not be recoverable, in accordance with ASC 360, “Property, Plant and Equipment”. Recoverability of a long-lived asset is measured by comparing the carrying value of the asset group to the projected undiscounted cash flows over their remaining lives. If the carrying value exceeds the projected undiscounted cash flows, an impairment loss is recognized. Impairment equals the amount by which the carrying value exceeds estimated fair value. An impairment loss is charged to consolidated statements of income (loss) in the period in which management determines such impairment. There was no impairment of long-lived assets in the years ended December 31, 2023, 2022 and 2021. |
Goodwill | Goodwill Goodwill represents the excess of the aggregate fair value of the consideration transferred in a business combination over the fair value of the assets acquired, net of liabilities assumed. Goodwill is not amortized, but is subject to impairment testing at the reporting unit level conducted annually on December 31, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. The Company identified a single reporting unit for the purpose of goodwill impairment testing. There was no impairment of goodwill in the years ended December 31, 2023, 2022 and 2021. |
Segment Information | Segment Information The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. |
Revenue Recognition | Revenue Recognition Under ASC 606, “Revenues from Contracts with Customers”, the Company recognizes revenue when its customer obtains control of promised goods or services in an amount that reflects the consideration that the Company expects to receive in exchange for those goods or services. To determine revenue recognition for contracts that are within the scope of the standard, the Company performs the following five steps: (i) Identify the contract with a customer; (ii) Identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) Determine the transaction price, including the constraint on variable consideration; (iv) Allocate the transaction price to the performance obligations in the contract; (v) Recognize revenue as the Company satisfies the performance obligations. The Company generates revenues when people click on, purchase from or, in some cases, view the ads that appear within its recommendation platform. The Company’s customers are the advertisers, merchants and affiliate networks that advertise on the Company’s platform (collectively, “Advertisers”). Advertisers pay Taboola for those clicks, purchases or impressions and Taboola generally shares the resulting revenue with the digital properties who display those ads. Advertisers accept the Company’s terms of service upon signature on an IO (insertion order) or any applicable form and registration to the platform. - For campaigns priced on a cost-per-click (“CPC”) basis, the Company bills the customers and recognizes revenues when a user clicks on an advertisement displayed. - For campaigns priced on a cost-per-thousand impression basis (“CPM”), the Company bills the customers and recognizes revenues based on the number of times an advertisement is displayed to a user. - For campaigns priced on a performance-based cost-per-action (“CPA”) basis, the Company bills the customers and recognizes revenues when a user makes an acquisition. The determination of whether revenue should be reported gross of amounts billed to Advertisers (gross basis) or net of payments to digital properties partners (net basis) requires significant judgment and is based on management assessment of whether the Company is acting as the principal or an agent in the transaction. The Company has determined that in certain arrangements it acts as principal because it has the ability to direct the services to its customers, while in others it does not. On revenues presented on a gross basis the Company has contracts with its digital properties that provide exclusivity and cover multiple years at inception. These agreements typically require that the Company’s code be integrated on the digital property web page. Thus, in the vast majority of the Company’s business, it does not bid for an ad placement, but rather it controls the specified pages before they are transferred to the customer, sees all users that visit the respective pages and is able to run a predictive auction and direct the ad placement to the relevant customer. The Company further concluded that (i) the Company is primarily responsible for fulfilling the promise to provide the service in the arrangement and controls what recommendations to place; (ii) the Company has latitude in establishing the contract price with the advertisers, and (iii) the Company has inventory risk on a portion of its multi-year agreement with digital properties. Therefore, based on these and other factors, the Company reports revenue earned on a gross basis. For those revenue arrangements where the Company does not control the advertising inventory before it is transferred to its Advertisers, does not have inventory risks as the Company does not purchase the advertising inventory upfront or has limited discretion in establishing prices, the Company believes it acts as an agent and recognizes revenue and related costs incurred on a net basis. Trade receivables are recorded at the amount of gross billings the Company is responsible to collect, trade payables, representing liabilities towards digital properties, are recorded at the amount payable to publishers. |
Practical Expedients | Practical Expedients The Company does not disclose the value of unsatisfied performance obligations for (i) contracts with an original expected length of one year or less and (ii) contracts for which the Company recognizes revenue at the amount to which it has the right to invoice for services performed. The Company generally expenses sales commissions when incurred because the amortization period would have been one year or less. These costs are recorded within sales and marketing expenses. |
Cost of Revenues | Cost of Revenues The Company’s cost of revenue primarily includes Traffic acquisition costs and other cost of revenue. Traffic acquisition cost Tr The second model includes guarantees. Other cost of revenue . |
Research and Development | Research and Development Research and development expenses consist primarily of personnel costs, including salaries, bonuses, share-based compensation and employee benefits costs, allocated facilities costs, professional services and depreciation. |
Warrants Liability | Warrants Liability The Company evaluated the Public Warrants and Private Warrants (collectively: “Warrants”) in accordance with ASC 815-40, ‘‘Derivatives and Hedging — Contracts in Entity’s Own Equity’’, and concluded that a provision in the Warrants Agreement related to certain tender or exchange offers, as well as provisions that provided for potential changes to the settlement amounts dependent upon the characteristics of the holder of the warrant, preclude the Warrants from being accounted for as components of equity. As the Warrants meet the definition of a derivative as contemplated in ASC 815 and are not eligible for an exception from derivative accounting, the Warrants are recorded as derivative liabilities in the consolidated balance sheets and measured at fair value at inception (on June 29, 2021, the date of the Business Combination) and at each reporting period in accordance with ASC 820, ‘‘Fair Value Measurement’’, with changes in fair value presented within finance income (expense), net in the consolidated statements of loss in the period of change. The Company established the initial fair value for the Warrants as of June 29, 2021, the date of the Business Combination, using a quoted price for the Public Warrants and a Black-Scholes simulation model for the Private Warrants. The Private Warrants were classified as Level 3 at the initial measurement date due to the use of unobservable inputs. The key inputs into the Black-Scholes model for the Private Warrants as of December 31, 2023 and 2022, were as follows: Input December 31, 2023 2022 Risk-free interest rate 4.04% - 4.28 % 4.08% - 4.18 % Expected term (years) 1.75 - 2.50 2.75 - 3.50 Expected volatility 61.1% - 63.9 % 67.5% - 69.3 % Exercise price $ 11.50 $ 11.50 Underlying stock price $ 4.33 $ 3.08 The Company’s use of a Black-Scholes model required the use of subjective assumptions: ● The risk-free interest rate assumption was interpolated based on constant maturity U.S. Treasury rates over a term commensurate with the expected term of the Private Warrants. ● The expected term was based on the maturity of the Private Warrants of five years following June 29, 2021, the Business Combination date, and for certain Private Warrants the maturity was determined to be five years from the date of the October 1, 2020, ION initial public offering effective date. ● The expected share volatility assumption was based on the implied volatility from a set of comparable publicly-traded companies as determined based on size and proximity. |
Share Based Compensation | Share-Based Compensation Share-based compensation expense related to share-based awards is recognized based on the fair value of the awards granted and recognized as an expense over the requisite service period for share options and RSUs. The Company elects the straight-line recognition method for awards subject to graded vesting based only on a service condition and implements the accelerated method for awards that are subject to a performance condition. The compensation expense associated with performance based RSUs is adjusted based on the probability of achieving performance targets. Forfeitures are accounted for as they occur. The fair value of each option award is estimated on the grant date using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The fair value of each RSU award is based on the fair value of the underlying ordinary shares on the grant date. The assumptions used to determine the fair value of the share awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The fair value of each option award is estimated using the following assumptions: Year ended December 31, 2022 2021 Volatility 66.0% - 66.9 % 51.5% - 65.6 % Risk-free interest rate 1.86% - 3.78 % 0.61% - 1.36 % Dividend yield 0 % 0 % Expected term (in years) 5.49 - 6.1 5 - 6.86 The Company did not grant options awards during the year ended December 31, 2023. These assumptions and estimates were determined as follows: Fair Value of Ordinary Shares. Risk-Free Interest Rate. The risk-free rate for the expected term of the options is based on the yields of the U.S. Treasury securities with maturities appropriate for the expected term of employee share option awards. Expected Term. The expected term represents the period that options are expected to be outstanding. The Company determines the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the options. Expected Volatility. Since the Company has a limited trading history of its Ordinary shares, the expected volatility is derived from the average historical share volatilities based on peer group public companies that the Company considers to be comparable to its own business over a period equivalent to the option’s expected term. Expected Dividend Yield. The Company has never declared or paid any cash dividends and does not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used. |
Income taxes | Income taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted for in accordance with ASC 740, “Income Taxes”. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions, it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the provision for income taxes in the period in which such determination is made. The Company classifies interest and penalties on income taxes (which includes uncertain tax positions) as taxes on income. |
Loss Contingency | Loss Contingency The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred. |
Treasury Ordinary Shares | Treasury Ordinary Shares |
Net income (loss) Per Share Attributable to Ordinary and Non-voting Ordinary Shareholders | Net income (loss) Per Share Attributable to Ordinary and Non-voting Ordinary Shareholders The Company calculates basic net income (loss) per share by dividing the net income (loss) by the weighted-average number of Ordinary shares and Non-voting Ordinary shares outstanding during the period. Diluted net income (loss) per share is computed by giving effect to all potentially dilutive securities outstanding for the period. Diluted net loss per share was the same as basic net loss per share in periods when the effects of potentially dilutive securities were anti-dilutive. For periods before the Company’s shares began trading on June 30, 2021, the Company calculated basic net income (loss) per share using the two-class method required for participating securities. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities did not contractually require the holders of such shares to participate in the Company’s losses. As such, net loss for the periods presented was not allocated to the Company’s participating securities. |
Reclassification | Reclassification Certain |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topics 740): Improvements to Income Tax Disclosures”, which expands the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. This ASU is effective for the fiscal years beginning after December 15, 2024. Early adoption permitted. T In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”, which expands the annual and interim disclosure requirements for public company reportable segments, primarily through enhanced information about the significant expenses. This ASU is effective for fiscal years beginning after December 15, 2023, and for interim periods within fiscal years beginning after December 15, 2024. Early adoption permitted. The Company is currently evaluating the impact of this guidance on its consolidated financial statements and related disclosures. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
Property and Equipment, Estimated Useful Lives | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: Years Computer equipment and software 3 - 4 Internal-use software 3 Office furniture and equipment 3 - 7 Leasehold improvements Over the shorter of expected lease term or estimated useful life |
Estimated Useful Lives of Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: Years Merchant / Network affiliate relationships 4.5 Publisher relationships 4 Tradenames 2 - 3 Technology 4 - 5 Customer relationships 5 - 9 |
Share Options [Member] | |
Fair Value Assumptions [Abstract] | |
Assumptions Used to Determine Fair Value | The fair value of each option award is estimated using the following assumptions: Year ended December 31, 2022 2021 Volatility 66.0% - 66.9 % 51.5% - 65.6 % Risk-free interest rate 1.86% - 3.78 % 0.61% - 1.36 % Dividend yield 0 % 0 % Expected term (in years) 5.49 - 6.1 5 - 6.86 |
Private Warrants [Member] | |
Fair Value Assumptions [Abstract] | |
Assumptions Used to Determine Fair Value | The key inputs into the Black-Scholes model for the Private Warrants as of December 31, 2023 and 2022, were as follows: Input December 31, 2023 2022 Risk-free interest rate 4.04% - 4.28 % 4.08% - 4.18 % Expected term (years) 1.75 - 2.50 2.75 - 3.50 Expected volatility 61.1% - 63.9 % 67.5% - 69.3 % Exercise price $ 11.50 $ 11.50 Underlying stock price $ 4.33 $ 3.08 |
CASH AND CASH EQUIVALENTS (Tabl
CASH AND CASH EQUIVALENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
CASH AND CASH EQUIVALENTS [Abstract] | |
Breakdown of Cash and Cash Equivalents | The following table presents for each reported period, the breakdown of cash and cash equivalents: December 31, 2023 2022 Cash $ 99,811 $ 142,127 Money market accounts and funds 72,510 22,583 Time deposits 3,787 1,183 Total Cash and cash equivalents $ 176,108 $ 165,893 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Assets and Liabilities Measured at Fair Value | The following table sets forth the Company’s assets and liabilities that were measured at fair value as of December 31, 2023 and 2022, by level within the fair value hierarchy: Fair value measurements as of Description Fair Value Hierarchy December 31, 2023 December 31, 2022 Assets: Cash equivalents: Money market accounts and funds Level 1 $ 72,510 $ 22,583 Short-term investments: Corporate debt securities Level 2 $ 3,651 $ 21,636 Commercial paper Level 2 $ 2,074 $ 8,565 U.S. government treasuries Level 2 $ — $ 46,222 U.S. agency bonds Level 2 $ — $ 20,491 Derivative instruments asset: Derivative instruments designated as cash flow hedging instruments Level 2 $ 948 $ — Liabilities: Warrants liability: Public Warrants Level 1 $ (4,253 ) $ (2,856 ) Private Warrants Level 3 $ (1,876 ) $ (3,900 ) Derivative instruments liability: Derivative instruments designated as cash flow hedging instruments Level 2 $ — $ (313 ) |
Changes in Fair Value of Warrants Liability | The following table presents the changes in the fair value of Warrants liability: Input Private Warrants Public Warrants Total Warrants Fair value as of December 31, 2022 $ 3,900 $ 2,856 $ 6,756 Change from private to public holdings (2,025 ) 2,025 — Change in fair value 1 (628 ) (627 ) Fair value as of December 31, 2023 $ 1,876 $ 4,253 $ 6,129 |
SHORT-TERM INVESTMENTS (Tables)
SHORT-TERM INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHORT-TERM INVESTMENTS [Abstract] | |
Summary of Available-for-Sale Marketable Securities | The following is a summary of available-for-sale marketable securities: December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Corporate debt securities $ 3,654 $ — $ (3 ) $ 3,651 Commercial paper 2,077 — (3 ) 2,074 Total $ 5,731 $ — $ (6 ) $ 5,725 December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. government treasuries $ 46,452 $ — $ (230 ) $ 46,222 Corporate debt securities 21,762 — (126 ) 21,636 U.S. agency bonds 20,622 — (131 ) 20,491 Commercial paper 8,599 — (34 ) 8,565 Total $ 97,435 $ — $ (521 ) $ 96,914 |
DERIVATIVE INSTRUMENTS AND HE_2
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract] | |
Fair Values of Outstanding Derivative Instruments Designated as Cash Flow Hedging Instruments | The Company records all cash flow hedging instruments on the consolidated balance sheets at fair value. The fair values of outstanding derivative instruments designated as cash flow hedging instruments were as follows: December 31, 2023 2022 Prepaid expenses and other current assets $ 948 $ — Accrued expenses and other current liabilities $ — $ 313 |
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss | The effect of foreign currency contracts designated as cash flow hedge on the consolidated statements of loss, for the years ended December 31, 2023 and 2022, were as follows: Year ended December 31, 2023 2022 Cost of revenues $ 155 $ 450 Research and development 1,619 3,244 Sales and marketing 305 620 General and administrative 296 538 Total losses recognized in the consolidated statements of loss, net $ 2,375 $ 4,852 |
Changes in Unrealized Gains (Losses) on Derivative Instruments Recorded in Accumulated Other Comprehensive Income (Loss) | The changes in unrealized gains (losses) on the Company’s derivative instruments recorded in accumulated other comprehensive income (loss) were as follows: Year ended December 31, 2023 2022 Unrealized losses on derivative instruments, beginning of period $ (313 ) $ — Changes in fair value of derivative instruments (1,114 ) (5,165 ) Reclassification of losses recognized in the consolidated statements of loss from accumulated other comprehensive income (loss) 2,375 4,852 Unrealized gains (losses) on derivative instruments, end of period $ 948 $ (313 ) |
BUSINESS COMBINATIONS (Tables)
BUSINESS COMBINATIONS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
BUSINESS COMBINATION [Abstract] | |
Fair Value of Assets Acquired and Liabilities Assumed | The following table summarizes the final fair value of assets acquired and liabilities assumed: Cash and cash equivalents $ 10,437 Other current assets 50,785 Intangible assets 270,025 Goodwill 530,800 Other noncurrent assets 8,432 Total assets acquired 870,479 Current liabilities 66,769 Deferred tax liability, net 50,493 Total liabilities assumed 117,262 Total purchase consideration $ 753,217 |
Intangible Assets and Estimated Useful Lives | The following table presents components of the identified intangible assets acquired and their estimated useful lives as of date of acquisition: Useful life Fair value (In years) Merchant/Network affiliate relationships (1) $ 146,547 4.5 Technology (1) 56,548 5.0 Publisher relationships (2) 42,933 4.0 Tradenames (2) 23,997 3.0 Total Intangible assets acquired $ 270,025 ___________________________________________ (1) Fair value was determined by using the income approach. (2) Fair value was determined by using the cost approach. |
Pro Forma Information | The unaudited pro forma results have been prepared for illustrative purposes only and are not necessarily indicative of what the actual results of operations of the Company and Connexity, combined, would have been due to any synergies, economies of scale and the assembled workforce of Connexity. Year ended December 31, Unaudited 2021 2020 Revenues $ 1,433,555 $ 1,258,214 Net income (loss) $ (50,312 ) $ (144,146 ) |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS [Abstract] | |
Components of Prepaid Expenses and Other Current Assets | December 31, 2023 2022 Prepaid expenses $ 48,878 $ 51,110 Government institutions 10,691 15,277 Derivative instruments 948 — Other current asset 9,348 7,256 Total prepaid expenses and other current assets $ 69,865 $ 73,643 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
PROPERTY AND EQUIPMENT, NET [Abstract] | |
Property and equipment, net | Property and equipment, net consist of the following: December 31, 2023 2022 Computer and equipment and software $ 192,555 $ 180,064 Internal-use software 62,864 48,433 Leasehold improvements 18,926 19,211 Office furniture and equipment 3,679 5,155 Property and equipment, gross 278,024 252,863 Less accumulated depreciation (205,869 ) (179,844 ) Property and equipment, net $ 72,155 $ 73,019 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GOODWILL AND INTANGIBLE ASSETS, NET [Abstract] | |
Changes in Goodwill | The following table represents the changes in the carrying amounts of the Company’s total goodwill: Carrying Amount Balance as of December 31, 2021 $ 550,380 Purchase accounting adjustment (1) (374 ) Additions from acquisition (2) 5,863 Balance as of December 31, 2022 555,869 Purchase accounting adjustment (2) 62 Balance as of December 31, 2023 $ 555,931 __________________________________________ (1) Related to the Connexity acquisition. (2) Related to the Gravity R&D acquisition. |
Definite-Lived Intangible Assets, Net | Definite-lived intangible assets, net consist of the following: December 31, 2023 Gross Fair Value Accumulated Amortization Net Book Value Weighted- Remaining Life (In years) Merchant/Network affiliate relationships $ 146,547 $ (75,987 ) $ 70,560 2.17 Technology 74,193 (43,535 ) 30,658 2.67 Publisher relationships 42,933 (25,044 ) 17,889 1.67 Tradenames 24,097 (18,739 ) 5,358 0.67 Customer relationship 13,146 (12,353 ) 793 2.76 Total $ 300,916 $ (175,658 ) $ 125,258 December 31, 2022 Gross Fair Value Accumulated Amortization Net Book Value Weighted- Remaining Life (In years) Merchant/Network affiliate relationships $ 146,547 $ (43,421 ) $ 103,126 3.17 Technology 74,193 (32,042 ) 42,151 3.66 Publisher relationships 42,933 (14,311 ) 28,622 2.67 Tradenames 24,097 (10,689 ) 13,408 1.67 Customer relationship 13,156 (11,307 ) 1,849 2.66 Total $ 300,926 $ (111,770 ) $ 189,156 |
Estimated Future Amortization Expense of Other Intangible Assets | The estimated future amortization expense of definite-lived intangible assets as of December 31, 2023, is as follows: Year Ending December 31, 2024 $ 60,518 2025 51,407 2026 13,244 2027 89 Total $ 125,258 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | |
Accrued Expenses and Other Current Liabilities | December 31, 2023 2022 Employees and related benefits $ 42,976 $ 27,559 Accrued expenses 20,782 12,862 Government authorities 19,038 22,177 Advances from customers 15,008 23,797 Accrued vacation pay 12,659 11,761 Derivative instruments — 313 Other 8,226 4,496 Total accrued expenses and other current liabilities $ 118,689 $ 102,965 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
LEASES [Abstract] | |
Supplemental Information Related to the Operating Leases | The following table presents supplemental information related to the operating leases: December 31, 2023 2022 Weighted average remaining operating lease term in years 4.3 5.4 Weighted average discount rate of operating leases 5.45 % 4.36 % |
Components of Lease Expense | The components of lease expense related to leases for the years ended December 31, 2023, 2022 and 2021, were as follows: Year ended December 31, 2023 2022 2021 Components of lease expense: Operating lease cost $ 20,286 $ 18,218 $ 17,102 Short-term lease cost and variable lease cost 2,462 1,735 583 Sublease income (167 ) (447 ) — |
Maturities of Lease Liabilities | Maturities of lease liabilities as of December 31, 2023, were as follows: Amount Year Ending December 31, 2024 $ 22,828 2025 17,926 2026 14,454 2027 10,164 2028 5,613 Thereafter 8,264 Total undiscounted lease payments $ 79,249 Less: imputed interest (9,535 ) Present value of lease liabilities $ 69,714 |
FINANCING ARRANGEMENTS (Tables)
FINANCING ARRANGEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
FINANCING ARRANGEMENTS [Abstract] | |
Future Principal Payments Related to Facility Loan | As of December 31, 2023, the total future principal payments related to Facility loan are as follows: Amount Year Ending December 31, 2024 $ 3,000 2025 3,000 2026 3,000 2027 3,000 2028 140,735 Total $ 152,735 |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
RESTRUCTURING [Abstract] | |
Restructuring Expenses | The restructuring expenses recognized in the consolidated statements of loss for the year ended December 31, 2022, primarily consisting of one-time incremental employee termination benefits and other costs related to Company’s business prioritization, were as follows: Year ended December 31, 2022 Cost of revenues $ 99 Research and development 1,815 Sales and marketing 1,176 General and administrative 293 Total restructuring expenses recognized in the consolidated statements of loss $ 3,383 |
SHAREHOLDERS' EQUITY AND SHAR_2
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS [Abstract] | |
Share Option Activity | c. The following is a summary of share option activity and related information for the year ended December 31, 2023 (including employees, directors, officers and consultants of the Company): Outstanding Share Options Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance as of December 31, 2022 35,488,179 $ 3.08 6.72 $ 40,516 Exercised (5,610,638 ) 1.30 Forfeited (586,256 ) 5.91 Balance as of December 31, 2023 29,291,285 $ 3.35 5.27 $ 57,118 Exercisable as of December 31, 2023 24,738,145 $ 2.78 4.89 $ 53,284 |
Summary of RSU activity | d. The following is a summary of the RSU activity and related information for the year ended December 31, 2023: Outstanding Restricted shares Unit Weighted Average Grant Date Fair Value Balance as of December 31, 2022 23,521,009 $ 6.60 Granted 13,384,846 3.54 Vested (1) (10,478,099 ) 5.78 Forfeited (2,948,448 ) 5.72 Balance as of December 31, 2023 23,479,308 $ 5.13 ____________________________________________ (1) A portion of the shares that vested were netted out to satisfy the tax obligations of the recipients. During the year ended December 31, 2023, a total of 1,164,891 RSUs were canceled to satisfy tax obligations, resulting in net issuance of 1,164,873 Ordinary shares. |
Equity Based Compensation Expense | The total share-based compensation expense related to all of the Company’s share-based awards recognized for the years ended December 31, 2023, 2022 and 2021, were comprised as follows: Year ended December 31, 2023 2022 2021 Cost of revenues $ 3,924 $ 3,092 $ 1,891 Research and development 24,471 26,433 29,022 Sales and marketing 16,397 22,615 44,834 General and administrative 19,539 22,781 52,210 Total share-based compensation expense $ 64,331 $ 74,921 $ 127,957 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
INCOME TAXES [Abstract] | |
Components of Loss Before Taxes | a. The components of the loss before taxes were as follows: Year ended December 31, 2023 2022 2021 Israel $ (65,764 ) $ (24,819 ) $ (42,414 ) Foreign (10,777 ) 20,367 40,442 Total $ (76,541 ) $ (4,452 ) $ (1,972 ) |
Taxes on Income (Tax Benefit) | b. Taxes on income (tax benefit) are comprised as follows: Year ended December 31, 2023 2022 2021 Current: Israel $ 1,363 $ 15 $ 4,685 Foreign 19,632 23,332 18,944 Total current income tax expense 20,995 23,347 23,629 Deferred: Israel — 1,388 973 Foreign (15,496 ) (17,212 ) (1,626 ) Total deferred income tax benefit (15,496 ) (15,824 ) (653 ) Total income taxes $ 5,499 $ 7,523 $ 22,976 |
Reconciliation of Income Tax Expense to Actual Income Tax Expense | A reconciliation of the Company’s theoretical income tax expense to actual income tax expense is as follows: Year ended December 31, 2023 2022 2021 Loss before taxes on income, as reported in the consolidated statements of loss $ (76,541 ) $ (4,452 ) $ (1,972 ) Statutory tax rate in Israel 23 % 23 % 23 % Preferred Technology Enterprise (9 %) (61 %) (244 %) Permanent difference - nondeductible expenses (9 %) 86 % (557 %) Change in valuation allowance (11 %) (109 %) (138 %) Income taxes at a rate other than the Israel statutory tax rate (2 %) (164 %) (12 %) Release of tax-exempt profits under preferred enterprise tax regime — — (221 %) Prior year taxes 2 % 35 % 36 % Uncertain tax positions (6 %) (10 %) (36 %) Other 5 % 31 % (16 %) Effective tax rate (7 %) (169 %) (1,165 %) |
Net Deferred Tax Assets and Liabilities | Deferred taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. As of December 31, 2023 and 2022, the deferred tax assets and liabilities presented in the balance sheet are comprised as follow: December 31, 2023 2022 Deferred tax assets $ — $ 3,821 Deferred tax liabilities $ (14,815 ) $ (34,133 ) As of December 31, 2023, and 2022 the Company’s deferred taxes were in respect of the following: December 31, 2023 2022 Operating lease liabilities $ 14,225 $ 14,751 Research and development 3,111 9,151 Share-based compensation expenses 10,408 8,095 Tax credit carry forward 9,657 4,356 Reserves and allowances 6,146 3,888 Carry forward tax losses 8,227 2,770 Issuance and transaction expenses 533 2,111 Intangible assets, net 1,643 1,963 Other 3,082 842 Deferred tax assets before valuation allowance 57,032 47,927 Valuation allowance (24,781 ) (16,376 ) Deferred tax assets 32,251 31,551 Intangible assets, net (31,208 ) (46,095 ) Operating lease right of use assets (12,368 ) (13,530 ) Property and equipment, net (2,031 ) (2,023 ) Capitalized research and development (966 ) — Other (493 ) (215 ) Deferred tax liabilities (47,066 ) (61,863 ) Deferred tax liabilities, net $ (14,815 ) $ (30,312 ) |
Reconciliation of Beginning and Ending Balance of Total Unrecognized Tax Positions | A reconciliation of the beginning and ending balance of total unrecognized tax positions is as follows: Year ended December 31, 2023 2022 Unrecognized tax position, beginning of year $ 3,537 $ 3,084 Increase (decrease) related to prior years’ tax positions (1) 3,382 (387 ) Increase related to current year tax positions 1,727 1,070 Decrease due to lapses of statutes of limitations (430 ) (230 ) Unrecognized tax position, end of year $ 8,216 $ 3,537 ___________________________________________ (1) The 2023 prior year’s tax positions includes $2,684 from prior year tax provision. |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
GEOGRAPHIC INFORMATION [Abstract] | |
Revenue by Geographic Area Based on Advertisers' Billing Address | The following table represents total revenue by geographic area based on the Advertisers’ billing address: Year ended December 31, 2023 2022 2021 Israel $ 144,048 $ 189,956 $ 173,535 United States 564,603 519,463 545,944 United Kingdom 78,080 72,697 69,927 Germany 132,041 123,485 148,036 Rest of the world 520,913 495,549 441,016 Total $ 1,439,685 $ 1,401,150 $ 1,378,458 |
Long-Lived Assets, Net by Geographic Area | The following table represents the Company’s long-lived assets (1), net by geographic area: December 31, 2023 2022 Israel $ 73,951 $ 73,931 United States 44,921 46,277 United Kingdom 6,290 11,836 Rest of the world 8,739 7,821 Total $ 133,901 $ 139,865 ___________________________________________ (1) Long-lived assets are comprised of property and equipment, net and operating lease right-of-use assets |
NET LOSS PER SHARE ATTRIBUTAB_2
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS [Abstract] | |
Computation of Basic and Diluted Net Loss Per Share | Year ended December 31, 2023 2022 2021 Ordinary shares Non-voting Ordinary shares Ordinary shares Non-voting Ordinary shares Ordinary shares Non-voting Ordinary shares Numerator: Net loss attributable to Ordinary shareholders, basic and diluted $ (71,833 ) $ (10,207 ) $ (11,975 ) $ — $ (36,892 ) $ — Denominator: Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic and diluted 303,282,558 43,093,556 254,284,781 Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic and diluted $ (0.24 ) $ (0.24 ) $ (0.05 ) $ — $ (0.26 ) $ — |
Antidilutive Securities Excluded from Computation of Diluted Net Loss Per Share | The potential number of Ordinary shares that were excluded from the computation of diluted net loss per share attributable to Ordinary shareholders for the periods presented because including them would have been anti-dilutive is as follows: Year ended December 31, 2023 2022 2021 RSUs 25,554,224 18,063,802 12,927,049 Outstanding share options 27,397,556 30,284,408 43,149,797 Warrants 12,349,990 12,349,990 12,349,990 Issuable Ordinary shares related to business combination under holdback arrangement 1,647,292 2,380,736 — Total 66,949,062 63,078,936 68,426,836 |
GENERAL (Details)
GENERAL (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||
Jan. 17, 2023 | Jan. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 30, 2022 | |
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Period of commercial agreement | 30 years | ||||
Authorized share capital (in shares) | 700,000,000 | 700,000,000 | 46,000,000 | ||
Closing share price (in dollars per share) | $ 3.4 | ||||
Fair value of shares issued | $ 288,063 | $ 288,063,000 | |||
Issuance expenses | $ 1,388 | ||||
Non-Voting Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Authorized share capital (in shares) | 46,000,000 | 46,000,000 | |||
Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Issuance of shares (in shares) | 39,525,691 | 39,525,691 | |||
Ordinary Shares [Member] | Non-Voting Ordinary Shares [Member] | |||||
Shares Granted or Issued, Share-Based Payment Arrangement [Abstract] | |||||
Issuance of shares (in shares) | 45,198,702 | 45,198,702 | 45,198,702 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES, Concentrations of Credit Risks (Details) - Customer | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Accounts Receivable [Member] | ||
Concentrations of Credit Risks [Abstract] | ||
Number of major customers | 0 | 0 |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | ||
Concentrations of Credit Risks [Abstract] | ||
Concentration risk threshold percentage | 10% | |
Revenue [Member] | ||
Concentrations of Credit Risks [Abstract] | ||
Number of major customers | 0 | 0 |
Revenue [Member] | Customer Concentration Risk [Member] | ||
Concentrations of Credit Risks [Abstract] | ||
Concentration risk threshold percentage | 10% |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES, Deferred Offering Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Deferred Offering Costs [Abstract] | ||
Deferred offering costs | $ 2,096 | |
Payment of deferred offering costs | $ 2,096 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES, Property and Equipment (Details) | Dec. 31, 2023 |
Computer Equipment and Software [Member] | Minimum [Member] | |
Property and Equipment [Abstract] | |
Property and equipment of estimated useful life | 3 years |
Computer Equipment and Software [Member] | Maximum [Member] | |
Property and Equipment [Abstract] | |
Property and equipment of estimated useful life | 4 years |
Internal-use Software [Member] | |
Property and Equipment [Abstract] | |
Property and equipment of estimated useful life | 3 years |
Office Furniture and Equipment [Member] | Minimum [Member] | |
Property and Equipment [Abstract] | |
Property and equipment of estimated useful life | 3 years |
Office Furniture and Equipment [Member] | Maximum [Member] | |
Property and Equipment [Abstract] | |
Property and equipment of estimated useful life | 7 years |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES, Internal Use Software Costs (Details) | Dec. 31, 2023 |
Internal Used Software [Member] | |
Internal use software costs [Abstract] | |
Estimated useful life | 3 years |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES, Intangible Assets (Details) | Dec. 31, 2023 |
Merchant/ Network Affiliate Relationships [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 4 years 6 months |
Publisher Relationships [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 4 years |
Tradenames [Member] | Minimum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 2 years |
Tradenames [Member] | Maximum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 3 years |
Technology [Member] | Minimum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 4 years |
Technology [Member] | Maximum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 5 years |
Customer Relationships [Member] | Minimum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 5 years |
Customer Relationships [Member] | Maximum [Member] | |
Intangible Assets [Abstract] | |
Intangible assets, useful life | 9 years |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES, Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Impairment of Long-Lived Assets [Abstract] | |||
Impairment losses | $ 0 | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Abstract] | |||
Goodwill impairment | $ 0 | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLIC_11
SIGNIFICANT ACCOUNTING POLICIES, Segment Information (Details) | 12 Months Ended |
Dec. 31, 2023 Segment | |
Segment Information [Abstract] | |
Number of operating segments | 1 |
Number of reportable segments | 1 |
SIGNIFICANT ACCOUNTING POLIC_12
SIGNIFICANT ACCOUNTING POLICIES, Cost of Revenues (Details) | 12 Months Ended |
Dec. 31, 2023 Property | |
Cost of Revenues [Abstract] | |
Number of compensation models for digital properties | 2 |
SIGNIFICANT ACCOUNTING POLIC_13
SIGNIFICANT ACCOUNTING POLICIES, Warrant Liability (Details) | Dec. 31, 2023 $ / shares | Dec. 31, 2022 $ / shares |
Private Warrants [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Warrants maturity period | 5 years | |
Private Warrants [Member] | Exercise Price [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 11.5 | 11.5 |
Private Warrants [Member] | Underlying Share Price [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 4.33 | 3.08 |
Private Warrants [Member] | Minimum [Member] | Risk Free Interest Rate [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.0404 | 0.0408 |
Private Warrants [Member] | Minimum [Member] | Expected Term [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 1.75 | 2.75 |
Private Warrants [Member] | Minimum [Member] | Expected Volatility [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.611 | 0.675 |
Private Warrants [Member] | Maximum [Member] | Risk Free Interest Rate [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.0428 | 0.0418 |
Private Warrants [Member] | Maximum [Member] | Expected Term [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 2.5 | 3.5 |
Private Warrants [Member] | Maximum [Member] | Expected Volatility [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Private Warrants, Measurement Input | 0.639 | 0.693 |
Certain Private Warrants [Member] | ||
Key Inputs into Black-Scholes Model [Abstract] | ||
Warrants maturity period | 5 years |
SIGNIFICANT ACCOUNTING POLIC_14
SIGNIFICANT ACCOUNTING POLICIES, Share-Based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Assumptions Used to Determine Fair Value of Option Award [Abstract] | ||
Dividend yield | 0% | 0% |
Minimum [Member] | ||
Assumptions Used to Determine Fair Value of Option Award [Abstract] | ||
Volatility | 66% | 51.50% |
Risk-free interest rate | 1.86% | 0.61% |
Expected term | 5 years 5 months 26 days | 5 years |
Maximum [Member] | ||
Assumptions Used to Determine Fair Value of Option Award [Abstract] | ||
Volatility | 66.90% | 65.60% |
Risk-free interest rate | 3.78% | 1.36% |
Expected term | 6 years 1 month 6 days | 6 years 10 months 9 days |
CASH AND CASH EQUIVALENTS (Deta
CASH AND CASH EQUIVALENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Breakdown of Cash and Cash Equivalents [Abstract] | ||
Cash | $ 99,811 | $ 142,127 |
Money market accounts and funds | 72,510 | 22,583 |
Time deposits | 3,787 | 1,183 |
Total Cash and cash equivalents | $ 176,108 | $ 165,893 |
FAIR VALUE MEASUREMENTS, Assets
FAIR VALUE MEASUREMENTS, Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 [Member] | Public Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants liability | $ (4,253) | $ (2,856) |
Level 1 [Member] | Money Market Accounts and Funds [Member] | ||
Assets [Abstract] | ||
Cash equivalents | 72,510 | 22,583 |
Level 2 [Member] | Derivative Instruments Liability [Member] | ||
Liabilities [Abstract] | ||
Derivative instruments designated as cash flow hedging instruments | 0 | (313) |
Level 2 [Member] | Corporate Debt Securities [Member] | ||
Assets [Abstract] | ||
Short-term investments | 3,651 | 21,636 |
Level 2 [Member] | Commercial Paper [Member] | ||
Assets [Abstract] | ||
Short-term investments | 2,074 | 8,565 |
Level 2 [Member] | U.S. Government Treasuries [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 46,222 |
Level 2 [Member] | U.S. Agency Bonds [Member] | ||
Assets [Abstract] | ||
Short-term investments | 0 | 20,491 |
Level 2 [Member] | Derivative Instruments Asset [Member] | ||
Assets [Abstract] | ||
Derivative instruments designated as cash flow hedging instruments | 948 | 0 |
Level 3 [Member] | Private Warrants [Member] | ||
Liabilities [Abstract] | ||
Warrants liability | $ (1,876) | $ (3,900) |
FAIR VALUE MEASUREMENTS, Change
FAIR VALUE MEASUREMENTS, Changes in Fair Value of Warrants Liability (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | $ 6,756 |
Change from private to public holdings | 0 |
Change in fair value | (627) |
Fair value, ending balance | 6,129 |
Public Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | 2,856 |
Change from private to public holdings | 2,025 |
Change in fair value | (628) |
Fair value, ending balance | 4,253 |
Private Warrants [Member] | |
Changes in Fair Value of Warrants Liability [Roll Forward] | |
Fair value, beginning balance | 3,900 |
Change from private to public holdings | (2,025) |
Change in fair value | 1 |
Fair value, ending balance | $ 1,876 |
SHORT-TERM INVESTMENTS (Details
SHORT-TERM INVESTMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | $ 5,731 | $ 97,435 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (6) | (521) |
Estimated Fair Value | 5,725 | 96,914 |
U.S. Government Treasuries [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 46,452 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (230) | |
Estimated Fair Value | 46,222 | |
Corporate Debt Securities [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 3,654 | 21,762 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (126) |
Estimated Fair Value | 3,651 | 21,636 |
U.S. Agency Bonds [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 20,622 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (131) | |
Estimated Fair Value | 20,491 | |
Commercial Paper [Member] | ||
Summary of available-for-sale marketable securities [Abstract] | ||
Amortized Cost | 2,077 | 8,599 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (3) | (34) |
Estimated Fair Value | $ 2,074 | $ 8,565 |
DERIVATIVE INSTRUMENTS AND HE_3
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Fair Values of Outstanding Derivative Instruments Designated as Cash Flow Hedging Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Current Assets [Member] | ||
Derivative Instrument [Abstract] | ||
Fair value of cash flow hedging instruments recorded as assets | $ 948 | $ 0 |
Accrued Expenses and Other Current Liabilities [Member] | ||
Derivative Instrument [Abstract] | ||
Fair value of cash flow hedging instruments recorded as liabilities | $ 0 | $ 313 |
DERIVATIVE INSTRUMENTS AND HE_4
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instrument [Abstract] | |||
Derivative notional amount | $ 39,347 | $ 38,669 | |
Derivative Instruments and Hedges [Abstract] | |||
Derivative instruments or hedging activities | $ 0 |
DERIVATIVE INSTRUMENTS AND HE_5
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss [Abstract] | ||
Total losses recognized in the consolidated statements of loss, net | $ 2,375 | $ 4,852 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Operating Income (Loss) | Operating Income (Loss) |
Cost of Revenues [Member] | ||
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss [Abstract] | ||
Total losses recognized in the consolidated statements of loss, net | $ 155 | $ 450 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue |
Research and Development [Member] | ||
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss [Abstract] | ||
Total losses recognized in the consolidated statements of loss, net | $ 1,619 | $ 3,244 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and development | Research and development |
Sales and Marketing [Member] | ||
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss [Abstract] | ||
Total losses recognized in the consolidated statements of loss, net | $ 305 | $ 620 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Sales and marketing | Sales and marketing |
General and Administrative [Member] | ||
Effect of Foreign Currency Contracts Designated as Cash Flow Hedge on the Consolidated Statements of Loss [Abstract] | ||
Total losses recognized in the consolidated statements of loss, net | $ 296 | $ 538 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | General and administrative | General and administrative |
DERIVATIVE INSTRUMENTS AND HE_6
DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES, Changes in Unrealized Losses on Derivative Instruments Recorded in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Summary of Derivative Instruments by Hedge Designation [Abstract] | ||
Unrealized losses on derivative instruments at the beginning of the period | $ (313) | $ 0 |
Changes in fair value of derivative instruments | (1,114) | (5,165) |
Reclassification of losses recognized in the consolidated statements of loss from accumulated other comprehensive income (loss) | 2,375 | 4,852 |
Unrealized gains (losses) on derivative instruments at the end of the period | $ 948 | $ (313) |
BUSINESS COMBINATIONS, Summary
BUSINESS COMBINATIONS, Summary (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Sep. 01, 2021 | Jul. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Business Combination [Abstract] | |||||||
Cash paid in connection with acquisitions | $ 0 | $ 7,981 | $ 583,457 | ||||
Net decrease of goodwill | $ 62 | [1] | (374) | [2] | |||
Number of ordinary shares committed to be issued (in shares) | 3,681,030 | ||||||
Service period for issuance of ordinary shares | 3 years | ||||||
RSU's issued (in shares) | $ 40,000 | ||||||
Identified intangible assets | $ 270,025 | ||||||
Goodwill | $ 555,931 | 555,869 | 550,380 | ||||
Connexity [Member] | |||||||
Business Combination [Abstract] | |||||||
Purchase price | 753,217 | ||||||
Cash paid in connection with acquisitions | 593,894 | ||||||
Fair value of ordinary shares issued | $ 157,689 | ||||||
Number of ordinary shares issued (in shares) | 17,328,049 | ||||||
Additional amount paid | 1,634 | ||||||
Additional payment accrual | 431 | ||||||
Net decrease of goodwill | $ (374) | ||||||
Transaction costs | $ 6,432 | ||||||
Ordinary shares issued (in shares) | 1,162,800 | 1,227,010 | |||||
Identified intangible assets | $ 270,025 | ||||||
Goodwill | $ 530,800 | ||||||
Connexity [Member] | RSUs [Member] | Minimum [Member] | |||||||
Business Combination [Abstract] | |||||||
Vesting period | 4 years | ||||||
Connexity [Member] | RSUs [Member] | Maximum [Member] | |||||||
Business Combination [Abstract] | |||||||
Vesting period | 5 years | ||||||
Gravity R&D Zrt. [Member] | |||||||
Business Combination [Abstract] | |||||||
Total consideration | $ 7,035 | ||||||
Identified intangible assets | 1,780 | ||||||
Goodwill | 5,925 | ||||||
Transaction costs | $ 742 | ||||||
[1]Related to the Gravity R&D acquisition.[2]Related to the Connexity acquisition. |
BUSINESS COMBINATIONS, Fair Val
BUSINESS COMBINATIONS, Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Sep. 01, 2021 |
Fair Value of Assets Acquired and Liabilities Assumed [Abstract] | ||||
Intangible assets | $ 270,025 | |||
Goodwill | $ 555,931 | $ 555,869 | $ 550,380 | |
Connexity [Member] | ||||
Fair Value of Assets Acquired and Liabilities Assumed [Abstract] | ||||
Cash and cash equivalent | $ 10,437 | |||
Other current assets | 50,785 | |||
Intangible assets | 270,025 | |||
Goodwill | 530,800 | |||
Other noncurrent assets | 8,432 | |||
Total assets acquired | 870,479 | |||
Current liabilities | 66,769 | |||
Deferred tax liability, net | 50,493 | |||
Total liabilities assumed | 117,262 | |||
Total purchase consideration | $ 753,217 |
BUSINESS COMBINATIONS, Intangib
BUSINESS COMBINATIONS, Intangible Assets and Estimated Useful Lives (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2023 | Sep. 01, 2021 | ||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | $ 270,025 | |||
Merchant/ Network Affiliate Relationships [Member] | ||||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | [1] | $ 146,547 | ||
Useful life | [1] | 4 years 6 months | ||
Technology [Member] | ||||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | [1] | $ 56,548 | ||
Useful life | [1] | 5 years | ||
Publisher Relationships [Member] | ||||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | [2] | $ 42,933 | ||
Useful life | [2] | 4 years | ||
Tradenames [Member] | ||||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | [2] | $ 23,997 | ||
Useful life | [2] | 3 years | ||
Connexity [Member] | ||||
Intangible Assets and Estimated Useful Lives [Abstract] | ||||
Fair value | $ 270,025 | |||
Revenue | $ 37,692 | |||
[1]Fair value was determined by using the income approach.[2]Fair value was determined by using the cost approach. |
BUSINESS COMBINATIONS, Pro Form
BUSINESS COMBINATIONS, Pro Forma Information (Details) - Connexity [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Pro Forma Information [Abstract] | ||
Revenues | $ 1,433,555 | $ 1,258,214 |
Net income (loss) | $ (50,312) | $ (144,146) |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Prepaid Expenses and Other Current Assets [Abstract] | ||
Prepaid expenses | $ 48,878 | $ 51,110 |
Government institutions | 10,691 | 15,277 |
Derivative instruments | 948 | 0 |
Other current asset | 9,348 | 7,256 |
Total prepaid expenses and other current assets | $ 69,865 | $ 73,643 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property and Equipment [Abstract] | |||
Property and equipment, gross | $ 278,024 | $ 252,863 | |
Less accumulated depreciation | (205,869) | (179,844) | |
Property and equipment, net | 72,155 | 73,019 | |
Capitalized internal-use software costs | 14,431 | 14,954 | |
Capitalized internal-use software amortization | 12,446 | 5,422 | $ 1,923 |
Depreciation expenses | 32,624 | 27,664 | 30,104 |
Write off of fixed assets | 6,599 | 2,393 | $ 0 |
Computer and Equipment and Software [Member] | |||
Property and Equipment [Abstract] | |||
Property and equipment, gross | 192,555 | 180,064 | |
Internal-use Software [Member] | |||
Property and Equipment [Abstract] | |||
Property and equipment, gross | 62,864 | 48,433 | |
Leasehold Improvements [Member] | |||
Property and Equipment [Abstract] | |||
Property and equipment, gross | 18,926 | 19,211 | |
Office Furniture and Equipment [Member] | |||
Property and Equipment [Abstract] | |||
Property and equipment, gross | $ 3,679 | $ 5,155 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, NET, Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||
Goodwill [Roll Forward] | |||||
Beginning balance | $ 555,869 | $ 550,380 | |||
Purchase accounting adjustment | 62 | [1] | (374) | [2] | |
Additions from acquisition | [1] | 5,863 | |||
Ending balance | $ 555,931 | $ 555,869 | |||
[1]Related to the Gravity R&D acquisition.[2]Related to the Connexity acquisition. |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS, NET, Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets, Net [Abstract] | |||
Gross fair value | $ 300,916 | $ 300,926 | |
Accumulated amortization | (175,658) | (111,770) | |
Net book value | 125,258 | 189,156 | |
Amortization expenses related to intangible assets | 63,888 | 63,557 | $ 23,007 |
Merchant / Network Affiliate Relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Gross fair value | 146,547 | 146,547 | |
Accumulated amortization | (75,987) | (43,421) | |
Net book value | $ 70,560 | $ 103,126 | |
Weighted-average remaining useful life (in years) | 2 years 2 months 1 day | 3 years 2 months 1 day | |
Technology [Member] | |||
Intangible Assets, Net [Abstract] | |||
Gross fair value | $ 74,193 | $ 74,193 | |
Accumulated amortization | (43,535) | (32,042) | |
Net book value | $ 30,658 | $ 42,151 | |
Weighted-average remaining useful life (in years) | 2 years 8 months 1 day | 3 years 7 months 28 days | |
Publisher Relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Gross fair value | $ 42,933 | $ 42,933 | |
Accumulated amortization | (25,044) | (14,311) | |
Net book value | $ 17,889 | $ 28,622 | |
Weighted-average remaining useful life (in years) | 1 year 8 months 1 day | 2 years 8 months 1 day | |
Tradenames [Member] | |||
Intangible Assets, Net [Abstract] | |||
Gross fair value | $ 24,097 | $ 24,097 | |
Accumulated amortization | (18,739) | (10,689) | |
Net book value | $ 5,358 | $ 13,408 | |
Weighted-average remaining useful life (in years) | 8 months 1 day | 1 year 8 months 1 day | |
Customer Relationships [Member] | |||
Intangible Assets, Net [Abstract] | |||
Gross fair value | $ 13,146 | $ 13,156 | |
Accumulated amortization | (12,353) | (11,307) | |
Net book value | $ 793 | $ 1,849 | |
Weighted-average remaining useful life (in years) | 2 years 9 months 3 days | 2 years 7 months 28 days |
GOODWILL AND INTANGIBLE ASSET_5
GOODWILL AND INTANGIBLE ASSETS, NET, Estimated Future Amortization Expense of Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Estimated Future Amortization Expense of Other Intangible Assets [Abstract] | ||
2024 | $ 60,518 | |
2025 | 51,407 | |
2026 | 13,244 | |
2027 | 89 | |
Net book value | $ 125,258 | $ 189,156 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES [Abstract] | ||
Employees and related benefits | $ 42,976 | $ 27,559 |
Accrued expenses | 20,782 | 12,862 |
Government authorities | 19,038 | 22,177 |
Advances from customers | 15,008 | 23,797 |
Accrued vacation pay | 12,659 | 11,761 |
Derivative instruments | 0 | 313 |
Other | 8,226 | 4,496 |
Total accrued expenses and other current liabilities | $ 118,689 | $ 102,965 |
LEASES, Operating Leases (Detai
LEASES, Operating Leases (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee Disclosure [Abstract] | ||
Weighted average remaining operating lease term in years | 4 years 3 months 18 days | 5 years 4 months 24 days |
Weighted average discount rate of operating leases | 5.45% | 4.36% |
Minimum [Member] | ||
Lessee Disclosure [Abstract] | ||
Operating lease term | 2 years | |
Maximum [Member] | ||
Lessee Disclosure [Abstract] | ||
Operating lease term | 11 years |
LEASES, Components of Lease Exp
LEASES, Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Lease Expense [Abstract] | |||
Operating lease cost | $ 20,286 | $ 18,218 | $ 17,102 |
Short-term lease cost and variable lease cost | 2,462 | 1,735 | 583 |
Sublease income | $ (167) | $ (447) | $ 0 |
LEASES, Maturities of Lease Lia
LEASES, Maturities of Lease Liabilities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Maturities of Lease Liabilities [Abstract] | |
2024 | $ 22,828 |
2025 | 17,926 |
2026 | 14,454 |
2027 | 10,164 |
2028 | 5,613 |
Thereafter | 8,264 |
Total undiscounted lease payments | 79,249 |
Less: imputed interest | (9,535) |
Present value of lease liabilities | $ 69,714 |
FINANCING ARRANGEMENTS (Details
FINANCING ARRANGEMENTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 09, 2022 | Sep. 01, 2021 | |
Debt Instruments [Abstract] | ||||
Repayment of long-term loan | $ 79,250 | $ 61,265 | ||
Long-term loan principal payments [Abstract] | ||||
Interest expenses recognized with the long-term loan | 19,885 | 18,675 | ||
Revolving Credit Agreement [Member] | ||||
Long-term loan principal payments [Abstract] | ||||
Total | $ 0 | |||
Long-term loan term | 5 years | |||
Deferred financing costs | $ 893 | 1,147 | ||
Deferred financing costs amortization | 254 | $ 98 | ||
Revolving Credit Agreement [Member] | Maximum [Member] | ||||
Long-term loan principal payments [Abstract] | ||||
Aggregate committed principal amount | $ 90,000 | |||
Credit Agreement [Member] | ||||
Debt Instruments [Abstract] | ||||
Senior secured term loan credit agreement | $ 300,000 | |||
Issuance expenses | $ 11,250 | |||
Long-term loan maturity | 7 years | |||
Facility amortization rate | 1% | |||
Frequency of periodic payment | quarterly | |||
Long-term loan principal payments [Abstract] | ||||
2024 | $ 3,000 | |||
2025 | 3,000 | |||
2026 | 3,000 | |||
2027 | 3,000 | |||
2028 | 140,735 | |||
Total | $ 152,735 |
RESTRUCTURING (Details)
RESTRUCTURING (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2022 | |
Restructuring [Abstract] | ||
Percentage of global headcount impacted by cost restructuring program | 6% | |
Total restructuring expenses recognized in the consolidated statements of loss | $ 3,383 | |
Accrued Expenses and Other Current Liabilities [Member] | ||
Restructuring [Abstract] | ||
Restructuring expenses | 88 | |
Cost of Revenues [Member] | ||
Restructuring [Abstract] | ||
Total restructuring expenses recognized in the consolidated statements of loss | 99 | |
Research and Development [Member] | ||
Restructuring [Abstract] | ||
Total restructuring expenses recognized in the consolidated statements of loss | 1,815 | |
Sales and Marketing [Member] | ||
Restructuring [Abstract] | ||
Total restructuring expenses recognized in the consolidated statements of loss | 1,176 | |
General and Administrative [Member] | ||
Restructuring [Abstract] | ||
Total restructuring expenses recognized in the consolidated statements of loss | $ 293 |
SHAREHOLDERS' EQUITY AND SHAR_3
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Option Activity (Details) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||||||
Nov. 21, 2023 USD ($) | Jan. 17, 2023 shares | Jan. 31, 2023 $ / shares shares | Oct. 31, 2020 $ / shares | Dec. 31, 2023 USD ($) Vote $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) | Dec. 30, 2022 shares | |
Stock Option Plan [Abstract] | ||||||||
Vote per share | Vote | 1 | |||||||
Authorized share capital (in shares) | 700,000,000 | 700,000,000 | 46,000,000 | |||||
Ordinary shares reserved for issuance (in shares) | 31,932,902 | |||||||
Percentage of outstanding shares | 5% | |||||||
Common stock, shares issued under ESPP (in shares) | 0 | |||||||
Additional equity-based compensation plan | $ | $ 66,584 | $ 76,853 | $ 128,740 | |||||
Payments of tax withholding for share based compensation | $ | $ 3,804 | $ 5,751 | 6,152 | |||||
Maximum [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Common stock, shares available for issuance under ESPP (in shares) | 6,386,580 | |||||||
Percentage of total outstanding shares on diluted basis in ESPP | 2% | |||||||
Additional equity-based compensation plan | $ | $ 50,000 | |||||||
RSUs [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Net issuance of shares (in shares) | 1,164,873 | |||||||
RSUs [Member] | Time-Based Vesting Condition [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Vesting period | 4 years | |||||||
RSUs [Member] | Vesting Condition [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Vesting period | 5 years | |||||||
Share Options [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Vesting period | 4 years | |||||||
Expiration period | 10 years | |||||||
Outstanding Share Options [Roll Forward] | ||||||||
Outstanding, beginning of period (in shares) | 35,488,179 | 35,488,179 | ||||||
Exercised (in shares) | (5,610,638) | |||||||
Forfeited (in shares) | (586,256) | |||||||
Outstanding, end of period (in shares) | 29,291,285 | 35,488,179 | ||||||
Exercisable (in shares) | 24,738,145 | |||||||
Weighted-Average Exercise Price [Roll Forward] | ||||||||
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 3.08 | $ 3.08 | ||||||
Exercised (in dollars per share) | $ / shares | $ 0 | 1.3 | ||||||
Forfeited (in dollars per share) | $ / shares | 5.91 | |||||||
Outstanding, end of period (in dollars per share) | $ / shares | 3.35 | $ 3.08 | ||||||
Exercisable (in dollars per share) | $ / shares | $ 2.78 | |||||||
Weighted Average Remaining Contractual Term [Abstract] | ||||||||
Weighted-average remaining contractual life | 5 years 3 months 7 days | 6 years 8 months 19 days | ||||||
Weighted-average remaining contractual life, exercisable | 4 years 10 months 20 days | |||||||
Aggregate Intrinsic Value [Abstract] | ||||||||
Aggregate intrinsic value, outstanding | $ | $ 57,118 | $ 40,516 | ||||||
Aggregate intrinsic value, exercisable | $ | $ 53,284 | |||||||
Grant options (in shares) | 0 | |||||||
Ordinary Shares [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Net issuance of shares (in shares) | 39,525,691 | 39,525,691 | ||||||
Additional Paid-in Capital [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Additional equity-based compensation plan | $ | $ 66,584 | 76,853 | 128,740 | |||||
Payments of tax withholding for share based compensation | $ | $ 3,804 | $ 5,751 | $ 6,152 | |||||
Non-Voting Ordinary Shares [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Authorized share capital (in shares) | 46,000,000 | 46,000,000 | ||||||
Non-Voting Ordinary Shares [Member] | Ordinary Shares [Member] | ||||||||
Stock Option Plan [Abstract] | ||||||||
Net issuance of shares (in shares) | 45,198,702 | 45,198,702 | 45,198,702 |
SHAREHOLDERS' EQUITY AND SHAR_4
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Option Plan and Related Information (Details) - Share Options [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-based compensation [Abstract] | |||
Weighted-average grant date fair value (in dollars per share) | $ 3.07 | $ 9.32 | |
Aggregate intrinsic value, exercised | $ 11,866 | $ 26,473 | $ 49,224 |
Unrecognized share based compensation cost | $ 13,614 | ||
Weighted-average period expected to be recognized | 1 year 5 months 12 days |
SHAREHOLDERS' EQUITY AND SHAR_5
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, RSU Activity (Details) - Restricted Share Units [Member] - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 31, 2020 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Outstanding Restricted Share Unit [Roll Forward] | |||||
Outstanding, beginning of period (in shares) | 23,521,009 | ||||
Granted (in shares) | 10,314,654 | 13,384,846 | |||
Vested (in shares) | [1] | (10,478,099) | |||
Forfeited (in shares) | (2,948,448) | ||||
Outstanding, end of period (in shares) | 23,479,308 | 23,521,009 | |||
Weighted-Average Grant Date Fair Value Per Share [Roll Forward] | |||||
Outstanding, beginning of period (in dollars per share) | $ 6.6 | ||||
Granted (in dollars per share) | 3.54 | $ 5.47 | $ 9.53 | ||
Vested (in dollars per share) | [1] | 5.78 | |||
Forfeited (in dollars per share) | 5.72 | ||||
Outstanding, end of period (in dollars per share) | $ 5.13 | $ 6.6 | |||
Vested shares netted out to satisfy tax obligations (in shares) | 1,164,891 | ||||
Net issuance of shares (in shares) | 1,164,873 | ||||
Fair value of RSUs | $ 36,221 | ||||
Unrecognized share based compensation cost related to unvested RSUs | $ 98,807 | ||||
Weighted-average period to be recognized | 2 years 6 months | ||||
[1] A portion of the shares that vested were netted out to satisfy the tax obligations of the recipients. During the year ended December 31, 2023, a total of 1,164,891 RSUs were canceled to satisfy tax obligations, resulting in net issuance of 1,164,873 Ordinary shares. |
SHAREHOLDERS' EQUITY AND SHAR_6
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Equity-based Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity Based Compensation Expense [Abstract] | |||
Total share-based compensation expense | $ 64,331 | $ 74,921 | $ 127,957 |
Cost of Revenues [Member] | |||
Equity Based Compensation Expense [Abstract] | |||
Total share-based compensation expense | 3,924 | 3,092 | 1,891 |
Research and Development [Member] | |||
Equity Based Compensation Expense [Abstract] | |||
Total share-based compensation expense | 24,471 | 26,433 | 29,022 |
Sales and Marketing [Member] | |||
Equity Based Compensation Expense [Abstract] | |||
Total share-based compensation expense | 16,397 | 22,615 | 44,834 |
General and Administrative [Member] | |||
Equity Based Compensation Expense [Abstract] | |||
Total share-based compensation expense | $ 19,539 | $ 22,781 | $ 52,210 |
SHAREHOLDERS' EQUITY AND SHAR_7
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Restricted Shares (Details) - $ / shares | 1 Months Ended | 12 Months Ended | |
Dec. 31, 2021 | Oct. 31, 2020 | Dec. 31, 2023 | |
Restricted Share Units [Member] | |||
Restricted Shares [Abstract] | |||
Unvested restricted shares granted (in shares) | 10,314,654 | 13,384,846 | |
Restricted Share Units [Member] | Time-Based Vesting Condition [Member] | |||
Restricted Shares [Abstract] | |||
Unvested restricted shares granted (in shares) | 6,598,489 | ||
Vesting period | 24 months | ||
Share Options [Member] | |||
Restricted Shares [Abstract] | |||
Number of options to acquire ordinary shares (in shares) | 5,157,327 | ||
Exercise price (in dollars per share) | $ 0 | $ 1.3 | |
Number of options vested (in shares) | 1,858,083 | 1,441,162 | |
Share Options [Member] | Time-Based Vesting Condition [Member] | |||
Restricted Shares [Abstract] | |||
Vesting period | 24 months |
SHAREHOLDERS' EQUITY AND SHAR_8
SHAREHOLDERS' EQUITY AND SHARE INCENTIVE PLANS, Share Buyback Program (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Feb. 29, 2024 | Nov. 08, 2023 | May 31, 2023 | |
Share Buyback Program [Abstract] | ||||
Broker and transaction fees | $ 367 | |||
Share Buyback Program [Member] | ||||
Share Buyback Program [Abstract] | ||||
Share buyback program, authorized amount | $ 40,000 | $ 40,000 | ||
Number of shares repurchased (in shares) | 15,240,471 | |||
Average price paid per share (in dollars per share) | $ 3.62 | |||
Share Buyback Program [Member] | Subsequent Event [Member] | ||||
Share Buyback Program [Abstract] | ||||
Share buyback program, authorized amount | $ 100,000 | |||
Share Buyback Program [Member] | Maximum [Member] | ||||
Share Buyback Program [Abstract] | ||||
Remaining authorized repurchase of common stock | $ 24,854 |
EMPLOYEES CONTRIBUTION PLAN (De
EMPLOYEES CONTRIBUTION PLAN (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Severance Pay [Abstract] | |||
Term for description of severance pay | 1 month | ||
Rate of entitled monthly deposit from the monthly salary | 8.33% | ||
Severance expenses | $ 5,989 | $ 6,638 | $ 5,709 |
401(k) Plan [Member] | |||
Severance Pay [Abstract] | |||
Severance expenses | $ 1,769 | $ 1,766 | $ 1,169 |
Defined Contribution Plan [Abstract] | |||
Percentage of employee contribution, maximum | 100% | ||
Employer matching contribution | 50% | ||
Employee's eligible compensation | 6% |
INCOME TAXES, Summary (Details)
INCOME TAXES, Summary (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Rate [Abstract] | |||||
Corporate tax rate percentage | 23% | 23% | 23% | 35% | 21% |
Income tax exemption amount | $ 45,244 | ||||
Corporate income tax paid amount | $ 4,355 | ||||
Related party payment percentage on U.S tax return | 3% | ||||
Tax Year 2018 [Member] | |||||
Income Tax Rate [Abstract] | |||||
Mandatory transition tax | 0.10 | ||||
Tax Year 2019 [Member] | |||||
Income Tax Rate [Abstract] | |||||
Mandatory transition tax | 0.10 | ||||
Tax Year 2026 [Member] | |||||
Income Tax Rate [Abstract] | |||||
Mandatory transition tax | 0.125 | ||||
Israel Tax Authority [Member] | |||||
Income Tax Rate [Abstract] | |||||
Corporate tax rate percentage | 23% |
INCOME TAXES, Components of Inc
INCOME TAXES, Components of Income (Loss) Before Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Income (Loss) Before Taxes [Abstract] | |||
Israel | $ (65,764) | $ (24,819) | $ (42,414) |
Foreign | (10,777) | 20,367 | 40,442 |
Loss before income taxes expenses | $ (76,541) | $ (4,452) | $ (1,972) |
INCOME TAXES, Taxes on Income (
INCOME TAXES, Taxes on Income (Tax Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current [Abstract] | |||
Israel | $ 1,363 | $ 15 | $ 4,685 |
Foreign | 19,632 | 23,332 | 18,944 |
Total current income tax expense | 20,995 | 23,347 | 23,629 |
Deferred [Abstract] | |||
Israel | 0 | 1,388 | 973 |
Foreign | (15,496) | (17,212) | (1,626) |
Total deferred income tax benefit | (15,496) | (15,824) | (653) |
Total income taxes | $ 5,499 | $ 7,523 | $ 22,976 |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Income Tax Expense to Actual Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | Dec. 31, 2017 | |
INCOME TAXES [Abstract] | |||||
Loss before taxes on income, as reported in the consolidated statements of loss | $ (76,541) | $ (4,452) | $ (1,972) | ||
Statutory tax rate Israel | 23% | 23% | 23% | 35% | 21% |
Preferred Technology Enterprise | (9.00%) | (61.00%) | (244.00%) | ||
Permanent difference - nondeductible expenses | (9.00%) | 86% | (557.00%) | ||
Change in valuation allowance | (11.00%) | (109.00%) | (138.00%) | ||
Income taxes at a rate other than the Israel statutory tax rate | (2.00%) | (164.00%) | (12.00%) | ||
Release of tax-exempt profits under preferred enterprise tax regime | 0% | 0% | (221.00%) | ||
Prior year taxes | 2% | 35% | 36% | ||
Uncertain tax positions | (6.00%) | (10.00%) | (36.00%) | ||
Other | 5% | 31% | (16.00%) | ||
Effective tax rate | (7.00%) | (169.00%) | (1165.00%) |
INCOME TAXES, Deferred Tax Asse
INCOME TAXES, Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets and Liabilities [Abstract] | ||
Deferred tax assets | $ 0 | $ 3,821 |
Deferred tax liabilities | $ (14,815) | $ (34,133) |
INCOME TAXES, Deferred Taxes (D
INCOME TAXES, Deferred Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred Tax Assets and Liabilities [Abstract] | ||
Operating lease liabilities | $ 14,225 | $ 14,751 |
Research and development | 3,111 | 9,151 |
Share-based compensation expenses | 10,408 | 8,095 |
Tax credit carry forward | 9,657 | 4,356 |
Reserves and allowances | 6,146 | 3,888 |
Carry forward tax losses | 8,227 | 2,770 |
Issuance and transaction expenses | 533 | 2,111 |
Intangible assets, net | 1,643 | 1,963 |
Other | 3,082 | 842 |
Deferred tax assets before valuation allowance | 57,032 | 47,927 |
Valuation allowance | (24,781) | (16,376) |
Deferred tax assets | 32,251 | 31,551 |
Intangible assets, net | (31,208) | (46,095) |
Operating lease right of use assets | (12,368) | (13,530) |
Property and equipment, net | (2,031) | (2,023) |
Capitalized research and development | (966) | 0 |
Other | (493) | (215) |
Deferred tax liabilities | (47,066) | (61,863) |
Deferred tax liabilities, net | (14,815) | $ (30,312) |
Accumulated tax loss carry-forward | 64,062 | |
Accumulated tax loss carry-forward | 1,533 | |
Undistributed earnings | 149,887 | |
Withholding tax amount | $ 13,006 |
INCOME TAXES, Reconciliation _2
INCOME TAXES, Reconciliation of Unrecognized Tax Positions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Reconciliation of Unrecognized Tax Positions [Roll Forward] | |||
Unrecognized tax position, beginning of year | $ 3,537 | $ 3,084 | |
Increase (decrease) related to prior years' tax positions | [1] | 3,382 | (387) |
Increase related to current years tax positions | 1,727 | 1,070 | |
Decrease due to lapses of statutes of limitations | (430) | (230) | |
Unrecognized tax position, end of year | 8,216 | 3,537 | |
Amount of prior year's tax positions | 2,684 | ||
Uncertain tax benefits that would impact effective tax rate | 8,129 | ||
Unrecognized tax benefits, net of deferred tax assets | $ 87 | $ 81 | |
[1]The 2023 prior year’s tax positions includes $2,684 from prior year tax provision. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Non-cancelable Purchase Obligations [Abstract] | |
Purchase obligation | $ 27,128 |
Minimum [Member] | |
Commercial Commitments [Abstract] | |
Period of contract | 2 years |
Maximum [Member] | |
Commercial Commitments [Abstract] | |
Period of contract | 5 years |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jan. 17, 2023 shares | Jan. 31, 2023 shares | Dec. 31, 2023 USD ($) Respresentative shares | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Related Party Transaction [Abstract] | |||||
Revenues | $ 1,439,685 | $ 1,401,150 | $ 1,378,458 | ||
Traffic acquisition cost | 903,866 | 831,508 | 859,595 | ||
Trade receivable balance | 306,307 | 256,708 | |||
Trade payable balance | 282,012 | 247,504 | |||
Expenses from transaction | $ 489,295 | $ 477,918 | $ 454,336 | ||
Ordinary Shares [Member] | |||||
Related Party Transaction [Abstract] | |||||
Issuance of shares (in shares) | shares | 39,525,691 | 39,525,691 | |||
Ordinary Shares [Member] | Non-Voting Ordinary Shares [Member] | |||||
Related Party Transaction [Abstract] | |||||
Issuance of shares (in shares) | shares | 45,198,702 | 45,198,702 | 45,198,702 | ||
Related Party [Member] | Yahoo [Member] | |||||
Related Party Transaction [Abstract] | |||||
Number of representatives that can be appointed to Board of Directors | Respresentative | 1 | ||||
Revenues | $ 40,902 | ||||
Traffic acquisition cost | 45,183 | ||||
Trade receivable balance | 12,297 | ||||
Trade payable balance | 38,657 | ||||
Expenses from transaction | $ 3,650 | ||||
Related Party [Member] | Yahoo [Member] | Non-Voting Ordinary Shares [Member] | |||||
Related Party Transaction [Abstract] | |||||
Issuance of shares (in shares) | shares | 45,198,702 | ||||
Related Party [Member] | Yahoo [Member] | Ordinary Shares [Member] | |||||
Related Party Transaction [Abstract] | |||||
Issuance of shares (in shares) | shares | 39,525,691 |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Segments, Geographical Areas [Abstract] | ||||
Revenue | $ 1,439,685 | $ 1,401,150 | $ 1,378,458 | |
Long-Lived Assets | [1] | 133,901 | 139,865 | |
Israel [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Long-Lived Assets | [1] | 73,951 | 73,931 | |
United States [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Long-Lived Assets | [1] | 44,921 | 46,277 | |
United Kingdom [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Long-Lived Assets | [1] | 6,290 | 11,836 | |
Rest of the World [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Long-Lived Assets | [1] | 8,739 | 7,821 | |
Reportable Geographical Components [Member] | Israel [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenue | 144,048 | 189,956 | 173,535 | |
Reportable Geographical Components [Member] | United States [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenue | 564,603 | 519,463 | 545,944 | |
Reportable Geographical Components [Member] | United Kingdom [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenue | 78,080 | 72,697 | 69,927 | |
Reportable Geographical Components [Member] | Germany [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenue | 132,041 | 123,485 | 148,036 | |
Reportable Geographical Components [Member] | Rest of the World [Member] | ||||
Segments, Geographical Areas [Abstract] | ||||
Revenue | $ 520,913 | $ 495,549 | $ 441,016 | |
[1] Long-lived assets are comprised of property and equipment, net and operating lease right-of-use assets |
NET LOSS PER SHARE ATTRIBUTAB_3
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY AND NON-VOTING ORDINARY SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: [Abstract] | |||
Net loss attributable to Ordinary shareholders, basic | $ (82,040) | $ (11,975) | $ (36,892) |
Denominator: [Abstract] | |||
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
Antidilutive Securities [Abstract] | |||
Antidilutive securities (in shares) | 66,949,062 | 63,078,936 | 68,426,836 |
Non-Voting Ordinary Shares [Member] | |||
Numerator: [Abstract] | |||
Net loss attributable to Ordinary shareholders, basic | $ (10,207) | $ 0 | $ 0 |
Net loss attributable to Ordinary shareholders, diluted | $ (10,207) | $ 0 | $ 0 |
Denominator: [Abstract] | |||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic (in shares) | 43,093,556 | 0 | 0 |
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted (in shares) | 43,093,556 | 0 | 0 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.24) | $ 0 | $ 0 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.24) | $ 0 | $ 0 |
Ordinary Shares [Member] | |||
Numerator: [Abstract] | |||
Net loss attributable to Ordinary shareholders, basic | $ (71,833) | $ (11,975) | $ (36,892) |
Net loss attributable to Ordinary shareholders, diluted | $ (71,833) | $ (11,975) | $ (36,892) |
Denominator: [Abstract] | |||
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, basic (in shares) | 303,282,558 | 254,284,781 | 142,883,475 |
Weighted-average shares used in computing net loss per share attributable to Ordinary shareholders, diluted (in shares) | 303,282,558 | 254,284,781 | 142,883,475 |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, basic (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
Net loss per share attributable to Ordinary and Non-voting Ordinary shareholders, diluted (in dollars per share) | $ (0.24) | $ (0.05) | $ (0.26) |
RSUs [Member] | |||
Antidilutive Securities [Abstract] | |||
Antidilutive securities (in shares) | 25,554,224 | 18,063,802 | 12,927,049 |
Outstanding Share Options [Member] | |||
Antidilutive Securities [Abstract] | |||
Antidilutive securities (in shares) | 27,397,556 | 30,284,408 | 43,149,797 |
Warrants [Member] | |||
Antidilutive Securities [Abstract] | |||
Antidilutive securities (in shares) | 12,349,990 | 12,349,990 | 12,349,990 |
Issuable Ordinary Shares Related to Business Combination Under Holdback Arrangement [Member] | |||
Antidilutive Securities [Abstract] | |||
Antidilutive securities (in shares) | 1,647,292 | 2,380,736 | 0 |