Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Addresses [Line Items] | |
Entity Registrant Name | monday.com Ltd. |
Entity Central Index Key | 0001845338 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2021 |
Document Type | 20-F |
Document Registration Statement | false |
Entity File Number | 001-40461 |
Entity Address, Address Line One | 6 Yitzhak Sadeh Street |
Entity Address, Postal Zip Code | 6777506 |
Entity Address, Country | IL |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Non-accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Entity Common Stock, Shares Outstanding | 44,924,038 |
Entity Shell Company | false |
Auditor Name | Brightman Almagor Zohar & Co. |
Auditor Location | Tel Aviv, Israel |
Auditor Firm ID | 1197 |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity Incorporation, State or Country Code | IL |
Entity Address, City or Town | Tel Aviv |
Title of 12(b) Security | Ordinary shares |
Trading Symbol | MNDY |
Security Exchange Name | NASDAQ |
ICFR Auditor Attestation Flag | false |
Document Accounting Standard | U.S. GAAP |
Business Contact [Member] | |
Entity Addresses [Line Items] | |
Entity Address, Address Line One | 6 Yitzhak Sadeh Street |
Entity Address, Postal Zip Code | 6777506 |
Entity Address, Country | IL |
Entity Address, City or Town | Tel Aviv |
Contact Personnel Name | Shiran Nawi, Adv. |
City Area Code | 972 |
Local Phone Number | (55) 939-7720 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 886,812 | $ 129,814 |
Short term deposits | 0 | 10,000 |
Accounts receivable - net of allowance for doubtful accounts of $249, and $264 as of December 31, 2021 and 2020, respectively | 8,509 | 3,911 |
Prepaid expenses and other current assets | 18,172 | 3,898 |
Total current assets | 913,493 | 147,623 |
Property and equipment, net | 19,599 | 7,178 |
Other long-term assets | 100 | 2,619 |
Total assets | 933,192 | 157,420 |
CURRENT LIABILITIES: | ||
Accounts payable | 23,612 | 25,734 |
Accrued expenses and other current liabilities | 70,135 | 22,967 |
Deferred revenue | 134,438 | 70,719 |
Revolving credit facility | 0 | 21,016 |
Total current liabilities | 228,185 | 140,436 |
Other long-term liabilities | 1,612 | 1,045 |
Total liabilities | 229,797 | 141,481 |
COMMITMENTS AND CONTINGENCIES (NOTE 8) | ||
CONVERTIBLE PREFERRED SHARES: | ||
Preferred shares, no par value – Authorized: no shares as of December 31, 2021 and27,056,939 shares as of December 31, 2 2020; Issued and outstanding: no shares as ofDecember 31, 2021 and 26,440,239 as of December 31, 2020; | 0 | 233,496 |
SHAREHOLDERS' EQUITY (DEFICIT): | ||
Ordinary shares, no par value – Authorized: 99,999,999 and 52,943,061shares as of December 31, 2021 and 2020, respectively; Issued and Outstanding: 44,924,038 and 12,354,471 as of December 31, 2021 and 2020 respectively | 0 | 0 |
Founders shares, no par value: Authorized: 1 share as of December 31, 2021, and no sharesas of December 31, 2020. Issued and outstanding: 1 share as of December 31, 2021 and noshares as of December 31, 2020 | 0 | 0 |
Other comprehensive income | 594 | 0 |
Additional paid-in capital | 1,148,461 | 98,809 |
Accumulated deficit | (445,660) | (316,366) |
Total shareholders’ equity (deficit) | 703,395 | (217,557) |
Total liabilities, convertible preferred shares, and shareholders’ equity (deficit) | $ 933,192 | $ 157,420 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICALS) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts receivable - net of allowance for doubtful accounts | $ 249 | $ 264 |
Convertible preferred stock, no par value | $ 0 | $ 0 |
Convertible preferred stock, shares authorized | 0 | 27,056,939 |
Convertible preferred stock, shares issued | 0 | 26,440,239 |
Convertible preferred stock, shares outstanding | 0 | 26,440,239 |
Common Stock, No Par Value | $ 0 | $ 0 |
Ordinary shares, shares authorized | 99,999,999 | 52,943,061 |
Common Stock, Shares, Issued | 44,924,038 | 12,354,471 |
Common Stock, Shares, Outstanding | 44,924,038 | 12,354,471 |
Founder Share, No Par Value | $ 0 | $ 0 |
Founder Shares, Authorized | 1 | 0 |
Founder Shares, Issued | 1 | 0 |
Founder Shares, Outstanding | 1 | 0 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 308,150 | $ 161,123 | $ 78,089 |
Cost of revenue | 39,013 | 22,488 | 11,978 |
Gross profit | 269,137 | 138,635 | 66,111 |
OPERATING EXPENSES | |||
Research and development | 73,686 | 43,480 | 24,637 |
Sales and marketing | 268,083 | 191,353 | 118,534 |
General and administrative | 53,493 | 54,339 | 15,458 |
Total operating expenses | 395,262 | 289,172 | 158,629 |
Operating loss | (126,125) | (150,537) | (92,518) |
Financial income | 875 | 1,537 | 2,359 |
Financial expenses | (1,713) | (1,011) | (769) |
Loss before income taxes | (126,963) | (150,011) | (90,928) |
Taxes on income | (2,331) | (2,192) | (683) |
Net loss | $ (129,294) | $ (152,203) | $ (91,611) |
Net loss per share attributable to ordinary shareholders’, basic and diluted | $ (4.53) | $ (14.19) | $ (9.22) |
Weighted-average ordinary shares used in calculating net loss per ordinary share, basic and diluted | 30,332,006 | 12,048,909 | 11,348,428 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ 129,294 | $ 152,203 | $ 91,611 |
Other comprehensive income: | |||
Unrealized gains on derivative instruments | 953 | 0 | 0 |
Realized gains on derivative instruments | (359) | 0 | 0 |
Net current-period other comprehensive income | 594 | 0 | 0 |
Comprehensive loss | $ 128,700 | $ 152,203 | $ 91,611 |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' DEFICIT - USD ($) $ in Thousands | Convertible Preferred Shares | Number of Ordinary Shares | Number of Founder Share | Additional Paid-in Capital | Accumulated Other Comprehensive Income | Accumulated Deficit | Total | ||
Preferred Stock, Value, Beginning Balance at Dec. 31, 2018 | $ 83,646 | ||||||||
Preferred Stock, Shares, Beginning Balance at Dec. 31, 2018 | 22,805,727 | ||||||||
Balance at Dec. 31, 2018 | $ 11,500 | $ 0 | $ (72,552) | $ (61,052) | |||||
Balance, shares at Dec. 31, 2018 | 11,017,137 | 0 | |||||||
Exercise of options | $ 0 | 103 | 0 | 0 | 103 | ||||
Exercise of options (in shares) | 0 | 754,901 | 0 | ||||||
Share-based compensation | $ 0 | 21,939 | 0 | 0 | 21,939 | ||||
Issuance of Series E preferred shares, net | [1] | $ 149,850 | 0 | 0 | 0 | 0 | |||
Issuance of Series E preferred shares, net (in shares) | [1] | 3,634,512 | 0 | 0 | |||||
Net loss | $ 0 | 0 | 0 | (91,611) | (91,611) | ||||
Balance at Dec. 31, 2019 | 33,542 | 0 | (164,163) | (130,621) | |||||
Balance, shares at Dec. 31, 2019 | 11,772,038 | 0 | |||||||
Preferred Stock, Value, Ending Balance at Dec. 31, 2019 | $ 233,496 | ||||||||
Preferred Stock, Shares, Ending Balance at Dec. 31, 2019 | 26,440,239 | ||||||||
Exercise of options | $ 0 | 542 | 0 | 0 | 542 | ||||
Exercise of options (in shares) | 0 | 582,433 | 0 | ||||||
Share-based compensation | $ 0 | 64,725 | 0 | 0 | 64,725 | ||||
Net loss | 0 | 0 | 0 | (152,203) | (152,203) | ||||
Balance at Dec. 31, 2020 | 98,809 | 0 | (316,366) | (217,557) | |||||
Balance, shares at Dec. 31, 2020 | 12,354,471 | 0 | |||||||
Preferred Stock, Value, Ending Balance at Dec. 31, 2020 | $ 233,496 | $ 233,496 | |||||||
Preferred Stock, Shares, Ending Balance at Dec. 31, 2020 | 26,440,239 | 26,440,239 | |||||||
Exercise of options | $ 0 | 5,249 | 0 | 0 | $ 5,249 | ||||
Exercise of options (in shares) | 0 | 1,090,670 | 0 | 1,090,670 | |||||
Issuance of ordinary shares upon the vesting and settlement of restricted stock units | $ 0 | ||||||||
Issuance of ordinary shares upon the vesting and settlement of restricted stock units | 0 | 0 | 0 | $ 0 | |||||
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares) | 0 | ||||||||
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares) | 917 | 0 | |||||||
Other comprehensive income | $ 0 | 0 | 594 | [2] | 0 | 594 | |||
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering | $ (233,496) | ||||||||
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (in shares) | (26,440,239) | ||||||||
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering | 233,496 | 0 | 0 | 233,496 | |||||
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (in shares) | 26,440,239 | 0 | |||||||
Issuance of ordinary and founders’ shares in connection with concurrent initial public offering and private placement, net of underwriting discounts and issuance costs | [3] | $ 0 | |||||||
Issuance of ordinary and founders’ shares in connection with concurrent initial public offering and private placement, net of underwriting discounts and issuance costs (in shares) | [3] | 0 | |||||||
Issuance of ordinary and founders’ shares in connection with concurrent initial public offering and private placement, net of underwriting discounts and issuance costs | [3] | 735,856 | 0 | 0 | 735,856 | ||||
Issuance of ordinary and founders’ shares in connection with concurrent initial public offering and private placement, net of underwriting discounts and issuance costs (in shares) | [3] | 5,037,741 | 1 | ||||||
Share-based compensation | 75,051 | 0 | 0 | 75,051 | |||||
Net loss | 0 | 0 | (129,294) | (129,294) | |||||
Balance at Dec. 31, 2021 | $ 1 | $ 1,148,461 | $ 594 | [2] | $ (445,660) | 703,395 | |||
Balance, shares at Dec. 31, 2021 | 44,924,038 | ||||||||
Preferred Stock, Value, Ending Balance at Dec. 31, 2021 | $ 0 | $ 0 | |||||||
Preferred Stock, Shares, Ending Balance at Dec. 31, 2021 | 0 | 0 | |||||||
[1] | Net of issuance costs of $150. | ||||||||
[2] | Composed of unrealized gains and losses related to cash flow hedge | ||||||||
[3] | Net of underwriting discounts and issuance costs of $44,995. |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY (DEFICIT) (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Net issuance costs | $ 150 | |
Net underwriting discounts and issuance costs | $ 44,995 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (129,294) | $ (152,203) | $ (91,611) |
Adjustments to reconcile net loss to cash provided by (used in) operating activities: | |||
Depreciation and amortization | 2,746 | 1,888 | 579 |
Capital loss from sale of property and equipment | 76 | 0 | 0 |
Share-based compensation | 73,529 | 64,345 | 21,839 |
Change in accrued interest on revolving credit facility | (16) | (14) | 21 |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (4,598) | (472) | (3,101) |
Prepaid expenses and other assets | (13,335) | (1,828) | (1,313) |
Accounts payable | (2,040) | 6,773 | 8,886 |
Accrued expenses and other liabilities | 25,568 | 14,598 | 5,555 |
Deferred revenue | 63,719 | 29,738 | 22,495 |
Net cash provided by (used in) operating activities | 16,355 | (37,175) | (36,650) |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of property and equipment | (11,578) | (4,362) | (1,402) |
Capitalized software development costs | (2,180) | (1,119) | (365) |
Proceeds from sale of property and equipment | 129 | 0 | 0 |
Changes in short-term deposits | 10,000 | (6,000) | 15,000 |
Net cash provided by (used in) investing activities | (3,629) | (11,481) | 13,233 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from issuance of preferred shares | 0 | 0 | 149,850 |
Proceeds from exercise of share options | 5,249 | 542 | 103 |
Proceeds from initial public offering and concurrent private placement, net of underwriting discounts and other issuance costs | 735,856 | 0 | 0 |
Receipt of tax advance relating to exercises of share options, net | 22,258 | 0 | 0 |
Receipt (repayment) of revolving credit facility, net of payments | (21,000) | 8,000 | 8,500 |
Capital lease payments | (91) | (72) | (7) |
Net cash provided by financing activities | 742,272 | 8,470 | 158,446 |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 754,998 | (40,186) | 135,029 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – Beginning of period | 131,814 | 172,000 | 36,971 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH – End of period | 886,812 | 131,814 | 172,000 |
SUPPLEMENTAL DISCLOSURE: | |||
Cash paid for taxes | 3,298 | 2,487 | 250 |
Cash paid for interest | 421 | 685 | 522 |
NON-CASH INVESTING AND FINANCING ACTIVITIES: | |||
Additions to capital leases | 0 | 0 | 254 |
Non-cash purchases of property and equipment | 92 | 232 | 221 |
Unpaid deferred offering costs | 0 | 174 | 0 |
Share-based compensation included in capitalized software development costs | 1,522 | 380 | 100 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH TO THE CONSOLIDATED BALANCE SHEET: | |||
Cash and cash equivalents | 886,812 | 129,814 | 171,601 |
Restricted cash – Included in prepaid expense and other current assets | 0 | 0 | 20 |
Restricted cash – Included in other long-term assets | 0 | 2,000 | 379 |
Total cash, cash equivalents, and restricted cash | $ 886,812 | $ 131,814 | $ 172,000 |
ORGANIZATION AND DESCRIPTION OF
ORGANIZATION AND DESCRIPTION OF BUSINESS | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND DESCRIPTION OF BUSINESS | NOTE 1:- ORGANIZATION AND DESCRIPTION OF BUSINESS monday.com Ltd (“monday.com” and together with its subsidiaries collectively, “the Company”) was incorporated under the laws of Israel and commenced operations in 2012. The Company operates a cloud-based visual Work Operating System (‘Work OS’) that consists of modular building blocks that can be easily used and assembled to create software applications and work management tools and serves as a connective layer to integrate with various digital tools across an organization. By using the Company’s Work OS platform, customers can simplify and accelerate their digital transformation, enhance organizational agility, become more productive and increase operational efficiency. monday.com has five wholly owned subsidiaries: monday.com Inc. (the “U.S Subsidiary”) incorporated in the United States in 2016, monday.com UK incorporated under the laws of England in 2020, monday.com PTY, incorporated in Australia in 2020, monday.com LTDA. incorporated in Brazil in 2021 and monday.com K.K. incorporated in Japan in 2021. The subsidiaries primarily engage in providing business development, presale, and customer success services to the Company’s existing and potential customers. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The accompanying consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), reflect the application of the significant accounting policies described below and elsewhere in the notes to the consolidated financial statements. a. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Monday.com and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. b. Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates include share-based compensation to employees including the determination of the fair value of the Company’s ordinary shares prior to its IPO. The Company bases its estimates on historical experience and on assumptions that management considers to be reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates . The worldwide spread of the coronavirus (“COVID-19”) pandemic has created and may continue to create a significant uncertainty in macroeconomic conditions, and global slowdown in the economy and which is likely to decrease demand for a broad variety of goods and services, while also disrupting sales channels and marketing activities for an unknown period of time until the disease is contained. The extent to which COVID-19 may impact the Company’s financial condition, results of operations, or liquidity is uncertain, and as of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial statements. c. Foreign Currency Translation and Transactions The Company's management has determined that the United States dollar is the currency in the primary economic environment in which Monday.com and its subsidiaries operates. Thus, the Company reports its consolidated results in United States dollars. Transactions and balances that are denominated in other currencies have been remeasured into United States dollars in accordance with principles set forth in ASC 830, Foreign currency matters d. Cash and Cash Equivalents The Company classifies all highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents consist of bank deposits. Cash equivalents are carried at cost, which approximates their fair market value. e. Short-term deposits Deposits with maturities of more than three months but less than one year are classified as short term deposits. Such deposits are presented at their cost. f. Accounts Receivable Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. Accounts receivable are stated at their net realizable value, net of allowances. The allowance for doubtful accounts is based on the Company’s periodic assessment of the collectability of the accounts based on a combination of factors including the payment terms of each account, its age, the collection history of each customer, and the customer’s financial condition. Doubtful accounts expense for the years ended December 31, 2021 and 2020 was $594 and $264 respectively. The Company wrote off bad debts in the amount of $609 during 2021. No bad debts were written off in 2020. g. Property and Equipment, Net Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets (see Note 2i). Expenditures for maintenance and repairs are expensed as incurred. Disposals are removed at cost less accumulated depreciation and any gain or loss from disposition is reflected in the consolidated statement of operations in the period of disposition. h. Internal Use Software Development Costs The Company capitalizes certain internal software development costs related to its cloud-based platform or to backoffice operating systems. The costs consist of personnel costs incurred during the application development stage. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post implementation operating activities are expensed as incurred. Capitalized software development costs are included in property and equipment (see Note 4( and are amortized over the estimated useful life of the software, on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expenses are included in cost of revenue in the consolidated statement of operations. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. i. Amortization and Impairment of Long-Lived Assets: Long-lived assets with definite lives consist of property and equipment. Long-lived assets are amortized over their estimated useful lives which are as follows: Years Computers, software and electronic equipment 3-5 Office furniture and equipment 10-14 Capitalized internal software development costs 3 Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset The Company reviews its long-lived assets for impairment whenever events or circumstances have occurred that indicate that the estimated useful lives of the long-lived assets may warrant revision or that the carrying value of these assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows of the assets or asset group are compared to the carrying value. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized based on the amount in which the carrying amount exceeds the fair value of the asset or asset group, based on discounted cash flows. There were no events or circumstances that required the Company's long-lived assets to be tested for impairment during any of the periods presented. j. Leases The Company classifies leases in accordance with ASC 840 at their inception as either capital or operating leases. A lease that transfers substantially all the risks and rewards incidental to ownership of the leased asset to the Company is classified as a capital lease. For capital leases, at the commencement of the lease term, the leased asset is measured at the lower of fair value or the present value of the minimum lease payments. The leased asset is depreciated over the shorter of its useful life and the lease term. For operating leases that contain renewals, or other lease incentives, the Company recognizes the rent expense on a straight-line basis over the term of the lease. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. The Company records the difference between the rent paid and the straight-line rent expense as a deferred rent liability within accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheet. k. Employee Related Obligations According to the Israeli Severance Pay Law, 1963 ("Severance Pay Law"), employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. Therefore, the Company does not recognize a liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expenses for the years ended December 31, 2021, 2020 and 2019, amounted to $4,608, $2,721 and $1,349, respectively. The Company's U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The expenses recorded by the U.S. subsidiary for employer’s contributions were $915, $529, and $165 for the years ended December 31, 2021, 2020 and 2019, respectively. l. Contingent Liabilities The Company accounts for its contingent liabilities in accordance with Accounting Standards Codification (ASC) Topic 450, Contingencies m. Revenue Recognition The Company generates revenue from the sale of subscriptions to customers to access its cloud-based Work OS platform. The terms of the Company’s subscription agreements are primarily monthly or annual, and a large portion of the arrangements are paid in full up-front at the outset of the arrangement. Customers may not take possession over the software and instead are granted continuous access to the platform over the contractual period and therefore the arrangements are accounted for as service contracts. The Company’s contracts generally include fixed number of users and fixed price per user. Revenue for these arrangements is recognized ratably over the contract term. The Company’s subscription contracts are generally non-cancelable except for contracts with first-time customers whereby the contract terms provide rights to cancel the contract in the first 30 days for pro-rated refund for unutilized days. Historically, refunds have not been material and can be reasonably estimated, and therefore no provision for refunds was recorded to date. The Company's revenue recognition accounting policy prior to January 1, 2020 (the adoption date of ASC Topic 606, Revenue from Contracts with Customers The Company recognizes revenue in accordance with ASC Topic 605, Revenue recognition factors, such as collection history and creditworthiness of the customer. The Company's revenue recognition accounting policy from January 1, 2020, following the adoption of the new revenue standard: In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of access to the cloud-based platform and related support services which is considered one performance obligation. The customers do not have the ability to take possession of the software, and through access to the platform the Company provides a series of distinct software-based services that are satisfied over the term of the subscription. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Payment terms are generally upfront at the time of the transaction, except for enterprise customers which are generally net 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. 4. Allocation of the transaction price to the performance obligations in the contract The Company’s contracts contain a single performance obligation. Therefore, the entire transaction price is allocated to the single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized ratably over the term of the subscription agreement generally beginning on the date that the platform is made available to a customer. The Company records contract liabilities when cash payments are received in advance of performance to deferred revenue or to customer advances in case of refund rights. The Company recognized $70,719, and $40,981 of revenue during the year ended December 31, 2021 and 2020, respectively, from deferred revenue balances as of January 1, 2021 and 2020, respectively. The Company elected to use the practical expedient and recognize the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. Similarly, the Company does not disclose the value of unsatisfied performance obligations since the original expected duration of the contracts is one year or less. n. Cost of Revenue Cost of revenue primarily consists of costs related to providing subscription services to paying customers, including hosting costs, personnel-related expenses of customer support including share-based compensation, subcontractors costs, merchant and credit-cards processing fees, amortization of capitalized software development costs and allocated overhead costs. o. Research and Development Costs Research and development costs are expensed as incurred unless these costs qualify for capitalization as internal-use software development costs. Research and development expenses consist primarily of personnel-related expenses, including share-based compensation and allocated overhead costs. p. Sales and Marketing Sales and marketing expenses are primarily comprised of costs of the Company’s marketing personnel including share-based compensation, online marketing expenses and other advertising costs, partners’ commissions and allocated overhead costs. Sales and marketing expenses are expensed as incurred. Advertising costs amounted to $ 143,472 , $ 129,101 and $98,423, in the years ended December 31, 2021, 2020 and 2019, respectively. q. General and Administrative General and administrative expenses primarily consist of costs of the Company’s executive, finance, legal and other administrative personnel including share-based compensation, professional service fees, and allocated overhead costs. r. Accounting for Share-Based Compensation: The Company accounts for share-based compensation under ASC Topic 718, Compensation - Stock Compensation consultants, and directors. The Company calculates the fair value of share options on the date of grant using the Black-Scholes option-pricing model, whereas the fair value of restricted share units is based on the closing market value of the underlying shares at the date of grant, and the expense is recognized over the requisite service period of each individual grant using the graded vesting attribution method. Forfeitures are accounted for as they occur. The Black-Scholes option-pricing model requires the Company to make several assumptions, including the value of the Company's ordinary shares, expected volatility, expected term, risk-free interest rate and expected dividends. The Company evaluates the assumptions used to value option awards upon each grant of share options. Expected volatility was calculated based on the implied volatilities from market comparisons of certain publicly traded companies. The expected option term was calculated based on the simplified method, which uses the midpoint between the vesting date and the contractual term, as the Company does not have sufficient historical data to develop an estimate based on participant behavior. The risk-free interest rate was based on the U.S. treasury bonds yield with an equivalent term. The Company has not paid dividends and has no foreseeable plans to pay dividends. The assumptions used to determine the fair value of the share-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment. Commencing June 10, 2021, the ordinary shares of the Company are publicly traded. Prior to the Initial Public Offerring (“IPO”), the fair value of ordinary shares underlying the options has historically been determined by management with the assistance of a third-party valuation firm and approved by the Company's board of directors. The following table summarizes the Black-Scholes assumptions used at the grant dates: Year ended 2021 20 20 2019 Risk-free interest rate 0.68%-1.15 % 0.3%-0.58 % 2.12%-2.75 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5-8 5-8 5-8 Expected volatility 49%-50 % 47%-48 % 43%-45 % We also award restricted share units, or RSUs, to certain of our employees, officers and directors. These awards are settled in shares and are accounted for based on the fair market value of the shares at the time of grant. s. Income Taxes: The Company accounts for income taxes in accordance with ASC Topic 740 (“ASC 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. As of December 31, 2021 and 2020, the Company recorded a full valuation allowance against its deferred tax assets. The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement . As of December 31, 2021 and 2020, no liability for unrecognized tax benefits was recorded due to immateriality. t. Net Loss Per Share Attributable to Ordinary Shareholders The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury shares method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share since the effects of potentially dilutive shares of ordinary shares are anti-dilutive in all periods presented. The potentially dilutive options to purchase ordinary shares and RSUs that were excluded from the computation amounted to 6,302,344, 5,909,263, and 4,684,239, for the years ended December 31, 2021, 2020 and 2019, respectively, because including them would have been anti-dilutive. The Company’s Convertible preferred shares were also excluded from the computation and amounted to 26,440,239 shares for each of the years ended December 31, 2020 and 2019. Basic and diluted net loss per share was presented in conformity with the two-class method for participating securities prior to the Company’s IPO for the years ended December 31, 2020 and 2019. The Founder’s share is not a participating security and therefore excluded from the net loss per share. See Note 12c. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities do 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. u. Concentration of Credit Risks Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, short term deposits and accounts receivable. For cash and cash equivalents, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. The Company places its cash and cash equivalents with financial institutions with high-quality credit ratings in the United States and Israel and has not experienced any losses in such accounts. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. For each of the years ended December 31, 2021 and 2020, there were no individual customers that accounted for 10% or more of the Company’s revenues. The Company's accounts receivable are geographically diversified and derived primarily from sales in the United States and EMEA. To manage accounts receivable risk, the Company evaluates the credit worthiness of its customers and maintains allowances for potential credit losses. The Company has not historically experienced any material credit losses related to individual customers or groups of customers in any specific area or industry. v. Segment Information The Company has a single operating and reportable segment. The Company’s chief operating decision makers are its two Co-Chief Executive Officers (“Co-CEO”), who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15. w. Fair Value measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amount of cash equivalents, accounts receivable, accounts payable, and accrued expenses, are stated at their carrying value, which approximates fair value due to the short maturities of these instruments. x. Derivative Financial Instruments Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging.” The gain or loss of derivatives which are designated and qualify as hedging instruments in a cash flow hedge, is recorded under accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Derivatives are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts and option contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). See Note 6. The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes foreign exchange contracts designated as cash flow hedges. These foreign exchange contracts generally mature within 12 months. In addition, the Company enters into swaps, options and forward contracts to hedge a portion of its monetary items in the balance sheet, such as cash and cash equivalents balances, denominated in British Pound, Australian dollar and Euro for short-term periods. The purpose of these contracts is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to these contracts are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes. y. Accounting Pronouncements Not Yet Effective: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which would require lessees to include all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their statements of operations in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (ASC 606) and Leases (Topic 842) : Effective Dates for Certain Entities , which defers the effective date of ASU 2016-02 for non-public entities to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The guidance is effective for the Company beginning January 1, 2022, and interim periods in fiscal years beginning January 1, 2023. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The standard provides a number of optional practical expedients in transition. The Company is electing the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company expects the adoption of the standard to have a material impact on its consolidated balance sheets which will result in the recognition of ROU assets and lease liabilities of approximately $58,000 to $68,000 at January 1, 2022. The most significant impact from recognition of ROU assets and lease liabilities relates to its office space. However, the Company does not anticipate that the adoption of this standard will have a material impact on the operating expenses in its consolidated statements of operations since the expense recognition under this new standard will be similar to current practice. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 3:- PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: December 31, 2021 2020 Prepaid expenses $ 12,733 $ 2,508 Government institutions 3,520 767 Derivative instruments 656 - Other current assets 1,263 623 Total prepaid expenses and other current assets $ 18,172 $ 3,898 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 4:- PROPERTY AND EQUIPMENT, NET December 31, 2021 2020 Computer, software, and electronic equipment $ 8,095 $ 3,693 Office furniture and equipment 4,458 1,178 Leasehold improvements 6,700 2,995 Capitalized internal software development costs 5,666 1,964 Capital leases 254 254 Property and equipment, gross 25,173 10,084 Less accumulated depreciation and amortization $ (5,574 ) $ (2,906 ) Property and equipment, net 19,599 7,178 Depreciation and amortization expense was $2,746, $1,888 and $579, for the years ended December 31, 2021, 2020 and 2019, respectively. During the year ended December 31, 2021, the Company recorded a capital loss of $76 with respect to sell of assets attributed to leasehold improvements. The Company capitalized costs related to the development of internal-use software of $3,702, $1,499 and $465, for the years ended December 31, 2021, 2020 and 2019, respectively. Amortization of capitalized software development costs was $547, $232 and $94 for the years ended December 31, 2021, 2020 and 2019, respectively. The net carrying value of capitalized internal-use software was $4,793, $1,638 and $371 as of December 31, 2021, 2020 and 2019, respectively. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 5:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2021 2020 Accrued employee compensation and benefits $ 51,953 $ 14,210 Accrued expenses 13,149 4,825 Capital lease – short-term 84 88 Advances from customers 2,134 1,556 Income and indirect taxes payable 2,815 2,288 Total $ 70,135 $ 22,967 |
DERIVATIVES AND HEDGING
DERIVATIVES AND HEDGING | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING | NOTE 6:- DERIVATIVES AND HEDGING The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The fair values of derivative instruments and the line items to which they were recorded are summarized as follows: Balance sheet line item December 31, 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 705 $ - 705 - Derivatives not designated as hedging instruments: Foreign exchange contracts P repaid expenses and other current assets (49 ) - (49 ) - Total $ 656 $ - The effect of derivative instruments on cash flow hedging, as well as the effect of instruments not designated as hedge and the relationship between income and other comprehensive income for the years ended December 31, 2021 and December 31, 2020, are summarized below: Gain (Loss) Recognized Realized Gain on Derivative Reclassified from Accumulated Other Comprehensive Income (*) Amount Excluded from Effectiveness Testing Recognized in Income(**) Year ended December 31 Year ended December 31 Year ended December 31 2021 2020 2021 2020 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts $ 953 $ - $ (359 ) $ - $ - $ - 953 - (359 ) - - - Derivatives not designated as hedging instruments: Foreign exchange contracts - - - - (49 ) - - - - - (49 ) - Total $ 953 $ - $ (359 ) $ - $ (49 ) $ - (*) Classified in operating expenses in the Consolidated Statement of Operations. (**) Includes derivatives not designated as accounting hedge. Classified in financial expense (income), net in the Consolidated Statement of Operations. The notional amounts of the outstanding derivatives are summarized as follows: As of December 31, 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts: NIS $ 36,013 $ - Derivatives not designated as hedging instruments: Foreign exchange contracts: GBP 4,054 - Euro 2,830 - AUD 581 - 7,465 - Total $ 43,478 $ - |
REVOLVING CREDIT FACILITY
REVOLVING CREDIT FACILITY | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
REVOLVING CREDIT FACILITY | NOTE 7:- REVOLVING CREDIT FACILITY On December 30, 2020, the Company secured a revolving credit facility (“the facility") , with the following terms: The Company can borrow up to an aggregated principal amount of $80,000 against a certain Monthly Recurring Revenues (“MRR”) formula until December 2022. Amounts borrowed under the new facility accrue interest at the rate equal to one month Libor + 2.6% for amounts of up to $8,000, which will increase to one-month LIBOR plus 2.85% per annum on September 1, 2022, and one-month Libor + 2.85 % per annum for amounts above $8,000, with accrued interest payable monthly. The Company shall pay a fee of 0.2% per annum on unutilized amounts eligible for drawdown, calculated daily and payable on a quarterly basis. In conjunction with the facility, the Company paid upfront issuance fees of $180 in January 2021, which will be amortized over the two-year term of the agreement. The credit facility was secured by a floating charge on substantially all the assets of the Company, excluding its intellectual property, a first degree fixed charge over the Company’s goodwill, and contains customary conditions to borrowing, events of defaults and covenants, including covenants that restrict the Company’s ability to incur indebtedness, grant liens, make distributions to holders of the Company or its subsidiaries’ equity interests, make investments, or engage in transactions with its affiliates. Borrowings under the credit facility were available based on a certain ratio of the Company’s MRR (defined in the agreement as the monthly value of services, software licenses, rentals and subscription revenue on a consolidated basis excluding non-recurring sales of services or other transaction revenue not in the ordinary course of business, and churn) and subject to certain other financial covenants, including maintaining a minimum liquidity balance (defined as cash and cash equivalents plus short term deposits) of $30,000 as of December 31, 2021 and 2020, and certain minimal quarterly growth in MRR, all of which were met as of December 31, 2021 and 2020. In July 2021 the Company repaid all the outstanding balance under the credit facility. The Company had total unutilized credit facilities available for borrowing of $80,000 and $59,000 as of December 31, 2021 and 2020, respectively. During the years ended December 31, 2021, 2020 and 2019, the Company recorded interest expenses in the amount of $316, $671 and $543, respectively in connection with the credit facility. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 8:- COMMITMENTS AND CONTINGENCIES a. Lease Commitments – Operating Leases: The Company leases office space for its corporate headquarters in Israel under a non-cancelable operating lease expiring in 2031 with an early termination option. Additionally, the Company entered into certain cancelable monthly lease agreements for short term periods. Total rent expense under all operating leases was $4,326, $3,287, and $1,943, for the years ended December 31, 2021, 2020 and 2019, respectively. The future minimum lease payments, under all non-cancelable lease agreements as of December 31, 2021, are as follows: Years Ending December 31, Amount 2022 $ 8,718 2023 10,531 2024 10,964 2025 11,217 2026 11,242 Thereafter 19,093 Total minimum lease payments $ 71,765 b. Capital Lease On November 13, 2019, the Company entered into a capital lease agreement with a supplier, according to which, the Company leased software equipment in the total amount of $254 for the period from December 7, 2019 through December 7, 2022 in monthly installments. The Company has the option to purchase the software equipment at the end of the lease period for a payment of 1% of the initial price. The lease liability was $84 and $175 as of December 31, 2021 and 2020, respectively. c. Guarantees: As of December 31, 2021 and 2020, the Company has provided a bank guarantee in the amount of $2,186 and $2,115, respectively, to secure its lease agreement. d. Indemnifications The Company enters into standard indemnification provisions in the ordinary course of business, including certain customers, business partners, the Company’s officers, and directors. Pursuant to these provisions, the Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of the Company’s activities or non-compliance with certain representations and warranties made by the Company. It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s consolidated statements of operations in connection with the indemnification provisions have not been material. There are no claims pending as of December 31, 2021 and 2020, related to indemnification agreements. The Company has entered into service-level agreements with some of its enterprise customers defining levels of uptime reliability and performance and permitting those customers to receive credits for prepaid amounts related to unused subscription services if the Company fails to meet the defined levels of uptime in a certain calendar month. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance. In addition, since the calculation is monthly for each calendar month there is no uncertainty at the end of the reporting period. Therefore, the Company has not accrued any liabilities related to these agreements in the consolidated financial statements. e. Legal Contingencies: The Company is currently not involved in any material claims or legal proceedings. The Company reviews the status of each legal matter it is involved in, from time to time, in the ordinary course of business and assesses its potential financial exposure. f. Other Commitments: Other commitments include payments to third-party vendors for services related mainly to hosting-related services, as well as future payments associated with the Company’s new corporate offices in Israel and with certain software licenses and services . Future minimum payments under the Company's other commitments, including finance lease liability (see note 8b) as of December 31, 2021, are as follows: Years Ending December 31, Amount 2022 $ 16,611 2023 12,121 2024 6,224 Total contractual obligations $ 34,956 |
FINANCIAL INCOME (EXPENSES) , N
FINANCIAL INCOME (EXPENSES) , NET | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
FINANCIAL INCOME (EXPENSES) , NET | NOTE 9:- FINANCIAL INCOME (EXPENSES) , NET Year ended 2021 2020 2019 Financial expenses : Bank charges and other $ 566 $ 340 $ 226 Interest on credit facility and amortization of debt issuance fees 405 671 543 Exchange rate expense, net 742 - - Total financial expenses 1,713 1,011 769 Financial income : Exchange rate income, net - 492 115 Interest income on deposits 875 1,045 2,244 Total financial income 875 1,537 2,359 Financial income (expenses), net $ (838 ) $ 526 $ 1,590 |
RELATED PARTIES
RELATED PARTIES | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
RELATED PARTIES | NOTE 10:- RELATED PARTIES There were no material related party transactions in each of the years ended December 31, 2021, 2020 and 2019 other than the secondary transactions (refer to Note 12f). |
CONVERTIBLE PREFERRED SHARES
CONVERTIBLE PREFERRED SHARES | 12 Months Ended |
Dec. 31, 2021 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
CONVERTIBLE PREFERRED SHARES | NOTE 11:- CONVERTIBLE PREFERRED SHARES Composition of Convertible Preferred Shares: Convertible Preferred Shares are carried at the issuance price, net of issuance costs. Immediately prior to the completion of the IPO in June 2021, all the Convertible Preferred Shares (“the Preferred Shares”) then outstanding were converted into 26,440,239 ordinary shares. As of December 31, 2020, the Preferred Shares consisted of the following: Authorized Issued and Outstanding Issuance Price Per Share Carrying Value, Net Series A 5,000,000 4,383,300 $ 0.30 $ 1,280 Series B 4,619,000 4,619,000 1.08 4,970 Series B-1 1,563,400 1,563,400 0.70 1,100 Series B-2 1,938,100 1,938,100 0.77 1,496 Series C 6,641,900 6,641,900 3.76 24,925 Series D 3,660,027 3,660,027 13.66 49,875 Series E 3,634,512 3,634,512 41.27 149,850 Total 27,056,939 26,440,239 $ 233,496 Balance Sheet Classification of Convertible Preferred Shares— The convertible preferred shares are not mandatorily redeemable, nor redeemable at the option of the holder after a specified date, but a deemed liquidation event would constitute a redemption event outside of the ordinary shareholders’ control. Therefore, all convertible preferred shares have been presented outside of permanent equity in accordance with ASC 48-10-S99-3A, Distinguishing Liabilities from Equity |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 12:- SHAREHOLDERS’ EQUITY a. Cancelation of par value: On December 28, 2020, the Company’s shareholders approved the amendment and restatement of the Company’s Articles of Association to cancel the par value of the Company’s authorized and issued share capital, such that following such cancelation all shares have no par value. All share capital and additional paid in capital amounts have been adjusted retroactively within these consolidated financial statements to reflect the cancelation of the par value. b. Initial Public Oferring and concurrent Private Placement: On June 10, 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 3,700,000 shares of its ordinary shares at an offering price of $155.00 per share, and additional 370,000 ordinary shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Company received net proceeds of $591,856 after deducting underwriting discounts and commissions of $34,697, and other issuance costs of $4,298. Immediately prior to the closing of the IPO, all convertible preferred shares then outstanding automatically converted into 26,440,239 ordinary shares. Additionally immediately subsequent to the closing of the IPO, the Company entered into concurrent private placement with two investors to purchase 967,742 of its ordinary shares in consideration for gross proceeds of $150,000 at a price per ordinary share equal to the initial public offering price. Related underwriting discounts and commissions amounted to $6,000. Prior to the IPO, deferred offering costs, which consist primarily of accounting, legal and other fees related to the Company’s IPO, were capitalized within other assets, noncurrent in the Consolidated Balance Sheets. Upon the consummation of the IPO and concurrent Private Placement $44,995 of deferred offering costs were reclassified into shareholders’ equity as an offset against IPO proceeds. The Company capitalized $174 of deferred offering costs within other assets, noncurrent in the Consolidated Balance Sheet as of December 31, 2020. c. Founder’s share: Upon the consummation of the IPO, the Company issued one of its Co-Founders and Co-CEO (“the Co-CEO”) one founder share. The founder share will provide the Co-CEO with certain veto rights over the approval of certain transactions such as merger, consolidation, acquisition, issuance of equity securities or debt securities convertible into equity securities or other similar transactions, that would result in any person becoming the owner of 25% or more of the ordinary shares immediately following the consummation of such transaction,, (ii) sale, assignment, conveyance, transfer, lease or other disposition, in one transaction or a series of related transactions, of all or substantially all of the Company’s assets to any person and (iii) change to the Company’s strategy, policies and/or business plan in connection with its Equal Impact Initiative. The founder share is not tradable and have no rights other than those described above, including no dividends rights or voting rights. The founder share will automatically convert to a deferred share with no rights, upon the earlier of (i) a transfer, pledge or other disposition of the founder share, (ii) the termination of the Co-CEO’s employment with the Company, (iii) the death of the Co-CEO, (iv) Upon the dilution of the shares and options held by him below a certain percentage. d. The number of authorized ordinary shares was 99,999,999 and 52,943,061 as of December 31, 2021 and 2020, respectively. e. Ordinary shares: The holders of ordinary shares are entitled to one vote per share, to dividends as decided by the Board, and in the event of the Company's liquidation, to the surplus assets of the Company, subject to the rights of the Preferred shares. The Company has the following ordinary shares reserved for future issuance: As of December 31, 2021 2020 Conversion of Preferred shares: Series A - 4,383,300 Series B - 4,619,000 Series B-1 - 1,563,400 Series B-2 - 1,938,100 Series C - 6,641,900 Series D - 3,660,027 Series E - 3,634,512 Ordinary shares 44,924,038 12,354,471 Outstanding share options and RSUs 6,302,344 5,909,263 Shares available for future grants under the 2017 and 2021 plans 5,281,960 1,332,909 Total 56,508,342 46,036,882 f. Secondary transactions: During 2020 and 2019, certain ordinary shareholders, including employees, and consultants (herein: “the Shareholders”) sold the Company's Ordinary shares in secondary market transactions to new and existing investors of the Company. The Shareholders sold an aggregate amount of 639,739 and 1,047,778 ordinary shares during 2020 and 2019 for an aggregate consideration of $37,718 and $40,000 at a price of $58.96 and $38.18 per share. The incremental value between the sale price and the fair value of the Ordinary shares at each date of sale resulted in aggregate share-based compensation cost of $10,487 and $13,145 and for the years ended December 31, 2020 and 2019, respectively, recorded in operating expenses. There were no secondary transactions in 2021. g. Share based compensation: In 2021, the board of directors adopted the 2021 equity incentive plan for employees, officers, directors, and consultants (the "2021 Plan"). Following the IPO, the Company ceased granting awards under its old plans and all shares that remained available for issuance under these plans were transferred to the 2021 Plan.The 2021 Plan provides for the grant of options to purchase Ordinary Shares and RSUs. Each option granted under the 2021 Plan expires no later than ten years from the date of grant. The vesting period of the options and RSUs is generally four years. As of December 31, 2021, the number of Ordinary shares reserved and available for grant and issuance pursuant to the 2021 Plan were 5,281,960. Share option activity for the year ended December 31, 2021 is as follows: Number of Weighted- Weighted Aggregate Outstanding — January 1, 2021 5,909,263 $ 4.79 7.5 $ 341,152 Granted 1,706,770 $ 39.02 Exercised (1,090,670 ) $ 4.83 Expired and forfeited (320,758 ) $ 22.8 Outstanding — December 31, 2021 6,204,605 $ 13.53 7.21 $ 1,831,568 Exercisable — December 31, 2021 3,832,645 $ 3.14 6.21 $ 1,171,168 The aggregate intrinsic value was calculated as the difference between the exercise price of the share options and the fair value of the underlying common shares as December 31, 2021, 2020 and 2019. The intrinsic value of options exercised in the years ended 2021, 2020, and 2019 was approximately $321,891, $18,868 and $17,478, respectively. The weighted-average grant-date fair value of options granted during the years ended December 31, 2021, 2020 and 2019 was $77.0, $38.3, and $17.9, respectively. The following table summarizes the activity for the Company's RSUs for the year ended December 31, 2021: Number of Units Weighted-Average Fair Value Balance at January 1, 2021 - $ - Granted 100,678 $ 277.7 Vested (917 ) $ 245.07 Canceled (2,022 ) $ 255.06 Balance at December 31, 2021 97,739 $ 278.46 As of December 31, 2021 there was $22,821 of total unrecognized compensation cost related to unvested restricted share units which is expected to be recognized over a weighted-average period of 1.98 years.As of December 31, 2020 there was no unrecognized compensation costs related to unvested restricted share units. Share-based compensation expense, including secondary transactions related expenses, for the years ended December 31, 2021, 2020 and 2019, is as follows: Year ended December 31, 2021 2020 2019 Cost of revenues $ 7,681 $ 2,720 $ 970 Research and development 21,779 12,142 9,396 Sales and marketing 23,135 10,068 3,283 General and administrative *) 20,934 39,415 8,190 Share-based compensation, net of amounts capitalized $ 73,529 $ 64,345 $ 21,839 Capitalized share-based compensation expense 1,522 380 100 Total share-based compensation $ 75,051 $ 64,725 $ 21,939 *) Share-based compensation expenses in 2020 includes costs related to the fair value of fully vested options granted to the Company’s Co-CEO in December 2020 in the amount of $30,424. As of December 31, 2021, 2020, and 2019, unamortized share-based compensation expense was $101,027, $31,018, and $10,058, respectively, which is expected to be recognized over weighted average periods of 1.97, 1.78, and 1.76, years, respectively. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13:- INCOME TAXES a. Loss before income taxes: The following are the domestic and foreign components of the Company's loss before income taxes: Year ended December 31, 2021 2020 2019 Domestic (Israel) $ (132,203 ) $ (152,335 ) $ (91,788 ) Foreign 5,240 2,324 860 Total $ (126,963 ) $ (150,011 ) $ (90,928 ) b. Income taxes: The following are the domestic and foreign components of the Company's income taxes: Year ended December 31, 2021 2020 2019 Domestic (Israel) $ 180 $ 243 $ 249 Foreign 2,151 1,949 434 Total $ 2,331 $ 2,192 $ 683 c. Tax rate reconciliation: The reconciliation of the tax benefit at the Israeli statutory tax rate to the Company's income taxes is as follows: Year ended December 31, 2021 2020 2019 Tax Rate Tax Rate Tax Rate Theoretical tax benefit $ (29,201 ) 23 % $ (34,503 ) 23 % (20,914 ) 23 % Increase (decrease) in tax rate due to: Change in valuation allowance 15,039 (12 )% 14,622 (10 )% 10,562 (12 )% Share-based compensation 10,184 (8 )% 8,324 (5 )% 2,742 (3 )% Tax benefit relating to exercise of disqualified ISO (3,069 ) 2 % - 0 % - - Initial public offering costs (5,399 ) 4 % - 0 % - - Preferred technological enterprise 14,460 (11 )% 16,757 (11 )% 10,097 (11 )% Currency differences 18 0 % (2,998 ) 2 % (1,796 ) 2 % Other 299 0 % (10 ) 0 % (8 ) 0 % Effective tax $ 2,331 (2 )% $ 2,192 (1 )% 683 d. Deferred taxes: The principal components of the Company's deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows: As of December 31, 2021 2020 Net operating loss carry forwards $ 35,122 $ 27,148 Research and development 5,580 3,296 Initial public offering costs 3,600 - Other temporary differences 2,577 1,414 Carryforward tax credits 867 601 Gross deferred tax assets 47,746 32,459 Valuation allowance (47,143 ) (32,104 ) Total deferred tax assets 603 355 Deferred tax liabilities: Depreciation and amortization (603 ) (355 ) Deferred tax liabilities $ (603 ) $ (355 ) Net deferred taxes $ - $ - In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the available evidence, management believes that it is more likely than not that its deferred tax assets will not be realized and accordingly, a full valuation allowance has been provided. As of December 31, 2021, the Company has net operating loss carryforwards in Israel of $292,687 which may be carried forward indefinitely. As of December 31, 2021, and 2020, the Company has not provided a deferred tax liability in respect of cumulative undistributed earnings relating to the Company's foreign subsidiaries, as the Company intends to keep these earnings permanently invested. e. Tax assessments: As of December 31, 2021, the Company had open tax years for the periods between 2017 and 2021 in Israel and for the periods between 2018 and 2021 for the U.S. subsidiary. f. Basis of taxation: Ordinary taxable income in Israel is subject to a corporate tax rate of 23% in 2021 and 2020. However, the effective tax rate payable by a company that derives may be considerably lower (as discussed below). Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. Primarily, in 2020 and 2021, the Company's U.S. subsidiary is subject to tax rate of approximately 21%. g. The New Technological Enterprise Incentives Regime (Amendment 73 to the Investment Law) In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("the 2017 Amendment") was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the "Nexus Principles" based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues of less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. Any dividends distributed from income from the preferred technological enterprises will be subject to tax at a rate of 20%. The 2017 Amendment further provides that, in certain circumstances, a dividend distributed to a foreign corporate shareholder, would be subject to a 4% tax rate (if the percentage of foreign investors exceeds 90%). The Company assessed the criteria for qualifying as a “Preferred Technological Enterprise,” status and concluded that the Company is eligible to the above-mentioned benefits. The Company is entitled to Preferred Technological Enterprise benefits starting 2019. The Company did not utilize any benefits associated with the Preferred Technological Enterprise in 2020 and 2021. |
LOSS PER SHARE
LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
LOSS PER SHARE | NOTE 14:- LOSS PER SHARE The following table presents the calculation of basic and diluted net loss per share: Year ended 2021 2020 2019 Numerator: Net loss $ 129,294 $ 152,203 $ 91,611 Undistributed earnings attributable to preferred shareholders 8,203 18,713 13,058 Net loss attributable to ordinary shareholders, basic and diluted $ 137,497 $ 170,916 $ 104,669 Denominator: Weighted-average ordinary shares outstanding 30,332,006 12,048,909 11,348,428 Basic and diluted net loss per share $ (4.53 ) $ (14.19 ) $ (9.22 ) |
GEOGRAPHICAL INFORMATION
GEOGRAPHICAL INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
GEOGRAPHICAL INFORMATION | NOTE 15:- GEOGRAPHICAL INFORMATION Revenues are attributed to geographic areas based on location of the end customers as follows : Year ended 2021 2020 2019 United States $ 148,291 $ 77,933 $ 36,439 EMEA 97,292 49,747 24,809 Rest of the world 62,567 33,443 16,841 $ 308,150 $ 161,123 $ 78,089 Property and equipment, net by geographical areas were as follows: As of 2021 2020 Israel $ 18,583 $ 6,361 United States 748 756 Rest of the world 268 61 $ 19,599 $ 7,178 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | a. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Monday.com and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Use of estimates | b. Use of estimates The preparation of consolidated financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. The most significant estimates include share-based compensation to employees including the determination of the fair value of the Company’s ordinary shares prior to its IPO. The Company bases its estimates on historical experience and on assumptions that management considers to be reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates . The worldwide spread of the coronavirus (“COVID-19”) pandemic has created and may continue to create a significant uncertainty in macroeconomic conditions, and global slowdown in the economy and which is likely to decrease demand for a broad variety of goods and services, while also disrupting sales channels and marketing activities for an unknown period of time until the disease is contained. The extent to which COVID-19 may impact the Company’s financial condition, results of operations, or liquidity is uncertain, and as of the date of issuance of these consolidated financial statements, the Company is not aware of any specific event or circumstance that would require an update to its estimates or judgments or an adjustment to the carrying value of the Company’s assets or liabilities. These estimates may change, as new events occur and additional information is obtained, which will be recognized in the consolidated financial statements as soon as they become known. Actual results could differ from those estimates, and any such differences may be material to the Company’s consolidated financial statements. |
Foreign Currency Translation and Transactions | c. Foreign Currency Translation and Transactions The Company's management has determined that the United States dollar is the currency in the primary economic environment in which Monday.com and its subsidiaries operates. Thus, the Company reports its consolidated results in United States dollars. Transactions and balances that are denominated in other currencies have been remeasured into United States dollars in accordance with principles set forth in ASC 830, Foreign currency matters |
Cash and Cash Equivalents | d. Cash and Cash Equivalents The Company classifies all highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents consist of bank deposits. Cash equivalents are carried at cost, which approximates their fair market value. |
Short-term deposits | e. Short-term deposits Deposits with maturities of more than three months but less than one year are classified as short term deposits. Such deposits are presented at their cost. |
Accounts Receivable | f. Accounts Receivable Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. Accounts receivable are stated at their net realizable value, net of allowances. The allowance for doubtful accounts is based on the Company’s periodic assessment of the collectability of the accounts based on a combination of factors including the payment terms of each account, its age, the collection history of each customer, and the customer’s financial condition. Doubtful accounts expense for the years ended December 31, 2021 and 2020 was $594 and $264 respectively. The Company wrote off bad debts in the amount of $609 during 2021. No bad debts were written off in 2020. |
Property and Equipment, Net | g. Property and Equipment, Net Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets (see Note 2i). Expenditures for maintenance and repairs are expensed as incurred. Disposals are removed at cost less accumulated depreciation and any gain or loss from disposition is reflected in the consolidated statement of operations in the period of disposition. |
Internal Use Software Development Costs | h. Internal Use Software Development Costs The Company capitalizes certain internal software development costs related to its cloud-based platform or to backoffice operating systems. The costs consist of personnel costs incurred during the application development stage. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post implementation operating activities are expensed as incurred. Capitalized software development costs are included in property and equipment (see Note 4( and are amortized over the estimated useful life of the software, on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expenses are included in cost of revenue in the consolidated statement of operations. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets. |
Amortization and Impairment of Long-Lived Assets | i. Amortization and Impairment of Long-Lived Assets: Long-lived assets with definite lives consist of property and equipment. Long-lived assets are amortized over their estimated useful lives which are as follows: Years Computers, software and electronic equipment 3-5 Office furniture and equipment 10-14 Capitalized internal software development costs 3 Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset The Company reviews its long-lived assets for impairment whenever events or circumstances have occurred that indicate that the estimated useful lives of the long-lived assets may warrant revision or that the carrying value of these assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows of the assets or asset group are compared to the carrying value. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized based on the amount in which the carrying amount exceeds the fair value of the asset or asset group, based on discounted cash flows. There were no events or circumstances that required the Company's long-lived assets to be tested for impairment during any of the periods presented. |
Leases | j. Leases The Company classifies leases in accordance with ASC 840 at their inception as either capital or operating leases. A lease that transfers substantially all the risks and rewards incidental to ownership of the leased asset to the Company is classified as a capital lease. For capital leases, at the commencement of the lease term, the leased asset is measured at the lower of fair value or the present value of the minimum lease payments. The leased asset is depreciated over the shorter of its useful life and the lease term. For operating leases that contain renewals, or other lease incentives, the Company recognizes the rent expense on a straight-line basis over the term of the lease. Additionally, incentives received are treated as a reduction of costs over the term of the agreement. The Company records the difference between the rent paid and the straight-line rent expense as a deferred rent liability within accrued expenses and other current liabilities and other long-term liabilities in the consolidated balance sheet. |
Employee Related Obligations | k. Employee Related Obligations According to the Israeli Severance Pay Law, 1963 ("Severance Pay Law"), employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. Therefore, the Company does not recognize a liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expenses for the years ended December 31, 2021, 2020 and 2019, amounted to $4,608, $2,721 and $1,349, respectively. The Company's U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The expenses recorded by the U.S. subsidiary for employer’s contributions were $915, $529, and $165 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Contingent Liabilities | l. Contingent Liabilities The Company accounts for its contingent liabilities in accordance with Accounting Standards Codification (ASC) Topic 450, Contingencies |
Revenue Recognition | m. Revenue Recognition The Company generates revenue from the sale of subscriptions to customers to access its cloud-based Work OS platform. The terms of the Company’s subscription agreements are primarily monthly or annual, and a large portion of the arrangements are paid in full up-front at the outset of the arrangement. Customers may not take possession over the software and instead are granted continuous access to the platform over the contractual period and therefore the arrangements are accounted for as service contracts. The Company’s contracts generally include fixed number of users and fixed price per user. Revenue for these arrangements is recognized ratably over the contract term. The Company’s subscription contracts are generally non-cancelable except for contracts with first-time customers whereby the contract terms provide rights to cancel the contract in the first 30 days for pro-rated refund for unutilized days. Historically, refunds have not been material and can be reasonably estimated, and therefore no provision for refunds was recorded to date. The Company's revenue recognition accounting policy prior to January 1, 2020 (the adoption date of ASC Topic 606, Revenue from Contracts with Customers The Company recognizes revenue in accordance with ASC Topic 605, Revenue recognition factors, such as collection history and creditworthiness of the customer. The Company's revenue recognition accounting policy from January 1, 2020, following the adoption of the new revenue standard: In accordance with ASC 606, revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services. The Company determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with the customer The Company considers the terms and conditions of the contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to pay, and the contract has commercial substance. The Company applies judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, credit and financial information pertaining to the customer. 2. Identification of the performance obligations in the contract Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of access to the cloud-based platform and related support services which is considered one performance obligation. The customers do not have the ability to take possession of the software, and through access to the platform the Company provides a series of distinct software-based services that are satisfied over the term of the subscription. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring services to the customer. Payment terms are generally upfront at the time of the transaction, except for enterprise customers which are generally net 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component. The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price. 4. Allocation of the transaction price to the performance obligations in the contract The Company’s contracts contain a single performance obligation. Therefore, the entire transaction price is allocated to the single performance obligation. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized ratably over the term of the subscription agreement generally beginning on the date that the platform is made available to a customer. The Company records contract liabilities when cash payments are received in advance of performance to deferred revenue or to customer advances in case of refund rights. The Company recognized $70,719, and $40,981 of revenue during the year ended December 31, 2021 and 2020, respectively, from deferred revenue balances as of January 1, 2021 and 2020, respectively. The Company elected to use the practical expedient and recognize the incremental costs of obtaining contracts as an expense since the amortization period of the assets that the Company otherwise would have recognized is one year or less. Similarly, the Company does not disclose the value of unsatisfied performance obligations since the original expected duration of the contracts is one year or less. |
Cost of Revenue | n. Cost of Revenue Cost of revenue primarily consists of costs related to providing subscription services to paying customers, including hosting costs, personnel-related expenses of customer support including share-based compensation, subcontractors costs, merchant and credit-cards processing fees, amortization of capitalized software development costs and allocated overhead costs. |
Research and Development Costs | o. Research and Development Costs Research and development costs are expensed as incurred unless these costs qualify for capitalization as internal-use software development costs. Research and development expenses consist primarily of personnel-related expenses, including share-based compensation and allocated overhead costs. |
Sales and Marketing | p. Sales and Marketing Sales and marketing expenses are primarily comprised of costs of the Company’s marketing personnel including share-based compensation, online marketing expenses and other advertising costs, partners’ commissions and allocated overhead costs. Sales and marketing expenses are expensed as incurred. Advertising costs amounted to $ 143,472 , $ 129,101 and $98,423, in the years ended December 31, 2021, 2020 and 2019, respectively. |
General and Administrative | q. General and Administrative General and administrative expenses primarily consist of costs of the Company’s executive, finance, legal and other administrative personnel including share-based compensation, professional service fees, and allocated overhead costs. |
Accounting for Share-Based Compensation | r. Accounting for Share-Based Compensation: The Company accounts for share-based compensation under ASC Topic 718, Compensation - Stock Compensation consultants, and directors. The Company calculates the fair value of share options on the date of grant using the Black-Scholes option-pricing model, whereas the fair value of restricted share units is based on the closing market value of the underlying shares at the date of grant, and the expense is recognized over the requisite service period of each individual grant using the graded vesting attribution method. Forfeitures are accounted for as they occur. The Black-Scholes option-pricing model requires the Company to make several assumptions, including the value of the Company's ordinary shares, expected volatility, expected term, risk-free interest rate and expected dividends. The Company evaluates the assumptions used to value option awards upon each grant of share options. Expected volatility was calculated based on the implied volatilities from market comparisons of certain publicly traded companies. The expected option term was calculated based on the simplified method, which uses the midpoint between the vesting date and the contractual term, as the Company does not have sufficient historical data to develop an estimate based on participant behavior. The risk-free interest rate was based on the U.S. treasury bonds yield with an equivalent term. The Company has not paid dividends and has no foreseeable plans to pay dividends. The assumptions used to determine the fair value of the share-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment. Commencing June 10, 2021, the ordinary shares of the Company are publicly traded. Prior to the Initial Public Offerring (“IPO”), the fair value of ordinary shares underlying the options has historically been determined by management with the assistance of a third-party valuation firm and approved by the Company's board of directors. The following table summarizes the Black-Scholes assumptions used at the grant dates: Year ended 2021 20 20 2019 Risk-free interest rate 0.68%-1.15 % 0.3%-0.58 % 2.12%-2.75 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5-8 5-8 5-8 Expected volatility 49%-50 % 47%-48 % 43%-45 % We also award restricted share units, or RSUs, to certain of our employees, officers and directors. These awards are settled in shares and are accounted for based on the fair market value of the shares at the time of grant. |
Income Taxes | s. Income Taxes: The Company accounts for income taxes in accordance with ASC Topic 740 (“ASC 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. As of December 31, 2021 and 2020, the Company recorded a full valuation allowance against its deferred tax assets. The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement . As of December 31, 2021 and 2020, no liability for unrecognized tax benefits was recorded due to immateriality. |
Net Loss Per Share Attributable to Ordinary Shareholders | t. Net Loss Per Share Attributable to Ordinary Shareholders The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury shares method or the if-converted method based on the nature of such securities. Diluted net loss per share is the same as basic net loss per share since the effects of potentially dilutive shares of ordinary shares are anti-dilutive in all periods presented. The potentially dilutive options to purchase ordinary shares and RSUs that were excluded from the computation amounted to 6,302,344, 5,909,263, and 4,684,239, for the years ended December 31, 2021, 2020 and 2019, respectively, because including them would have been anti-dilutive. The Company’s Convertible preferred shares were also excluded from the computation and amounted to 26,440,239 shares for each of the years ended December 31, 2020 and 2019. Basic and diluted net loss per share was presented in conformity with the two-class method for participating securities prior to the Company’s IPO for the years ended December 31, 2020 and 2019. The Founder’s share is not a participating security and therefore excluded from the net loss per share. See Note 12c. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company considered its convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends that would be distributed to the holders of ordinary shares, on a pro-rata basis assuming conversion of all convertible preferred shares into ordinary shares. These participating securities do 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. |
Concentration of Credit Risks | u. Concentration of Credit Risks Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents, short term deposits and accounts receivable. For cash and cash equivalents, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. The Company places its cash and cash equivalents with financial institutions with high-quality credit ratings in the United States and Israel and has not experienced any losses in such accounts. For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. For each of the years ended December 31, 2021 and 2020, there were no individual customers that accounted for 10% or more of the Company’s revenues. The Company's accounts receivable are geographically diversified and derived primarily from sales in the United States and EMEA. To manage accounts receivable risk, the Company evaluates the credit worthiness of its customers and maintains allowances for potential credit losses. The Company has not historically experienced any material credit losses related to individual customers or groups of customers in any specific area or industry. |
Segment Information | v. Segment Information The Company has a single operating and reportable segment. The Company’s chief operating decision makers are its two Co-Chief Executive Officers (“Co-CEO”), who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15. |
Fair Value measurements | w. Fair Value measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The carrying amount of cash equivalents, accounts receivable, accounts payable, and accrued expenses, are stated at their carrying value, which approximates fair value due to the short maturities of these instruments. |
Derivative Financial Instruments | x. Derivative Financial Instruments Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC Topic 815, “Derivatives and Hedging.” The gain or loss of derivatives which are designated and qualify as hedging instruments in a cash flow hedge, is recorded under accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. Derivatives are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts and option contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). See Note 6. The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes foreign exchange contracts designated as cash flow hedges. These foreign exchange contracts generally mature within 12 months. In addition, the Company enters into swaps, options and forward contracts to hedge a portion of its monetary items in the balance sheet, such as cash and cash equivalents balances, denominated in British Pound, Australian dollar and Euro for short-term periods. The purpose of these contracts is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to these contracts are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes. |
Accounting Pronouncements Not Yet Effective | y. Accounting Pronouncements Not Yet Effective: In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842) , which would require lessees to include all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their statements of operations in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (ASC 606) and Leases (Topic 842) : Effective Dates for Certain Entities , which defers the effective date of ASU 2016-02 for non-public entities to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The guidance is effective for the Company beginning January 1, 2022, and interim periods in fiscal years beginning January 1, 2023. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. The standard provides a number of optional practical expedients in transition. The Company is electing the ‘package of practical expedients’, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. The Company expects the adoption of the standard to have a material impact on its consolidated balance sheets which will result in the recognition of ROU assets and lease liabilities of approximately $58,000 to $68,000 at January 1, 2022. The most significant impact from recognition of ROU assets and lease liabilities relates to its office space. However, the Company does not anticipate that the adoption of this standard will have a material impact on the operating expenses in its consolidated statements of operations since the expense recognition under this new standard will be similar to current practice. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments In December 2019, the FASB issued ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of useful lives of long-lived assets | Years Computers, software and electronic equipment 3-5 Office furniture and equipment 10-14 Capitalized internal software development costs 3 Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset |
Schedule of black-scholes assumptions used at the grant dates | Year ended 2021 20 20 2019 Risk-free interest rate 0.68%-1.15 % 0.3%-0.58 % 2.12%-2.75 % Expected dividend yield 0 % 0 % 0 % Expected term (in years) 5-8 5-8 5-8 Expected volatility 49%-50 % 47%-48 % 43%-45 % |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Prepaid Expense and Other Assets, Current [Abstract] | |
Schedule of prepaid expenses and other current assets | December 31, 2021 2020 Prepaid expenses $ 12,733 $ 2,508 Government institutions 3,520 767 Derivative instruments 656 - Other current assets 1,263 623 Total prepaid expenses and other current assets $ 18,172 $ 3,898 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and equipment, net | December 31, 2021 2020 Computer, software, and electronic equipment $ 8,095 $ 3,693 Office furniture and equipment 4,458 1,178 Leasehold improvements 6,700 2,995 Capitalized internal software development costs 5,666 1,964 Capital leases 254 254 Property and equipment, gross 25,173 10,084 Less accumulated depreciation and amortization $ (5,574 ) $ (2,906 ) Property and equipment, net 19,599 7,178 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accrued Liabilities, Current [Abstract] | |
Schedule of accrued expenses and other current liabilities | December 31, 2021 2020 Accrued employee compensation and benefits $ 51,953 $ 14,210 Accrued expenses 13,149 4,825 Capital lease – short-term 84 88 Advances from customers 2,134 1,556 Income and indirect taxes payable 2,815 2,288 Total $ 70,135 $ 22,967 |
DERIVATIVES AND HEDGING (Tables
DERIVATIVES AND HEDGING (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of fair values of derivative instruments | Balance sheet line item December 31, 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expenses and other current assets $ 705 $ - 705 - Derivatives not designated as hedging instruments: Foreign exchange contracts P repaid expenses and other current assets (49 ) - (49 ) - Total $ 656 $ - |
Schedule of income and other comprehensive income | Gain (Loss) Recognized Realized Gain on Derivative Reclassified from Accumulated Other Comprehensive Income (*) Amount Excluded from Effectiveness Testing Recognized in Income(**) Year ended December 31 Year ended December 31 Year ended December 31 2021 2020 2021 2020 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts $ 953 $ - $ (359 ) $ - $ - $ - 953 - (359 ) - - - Derivatives not designated as hedging instruments: Foreign exchange contracts - - - - (49 ) - - - - - (49 ) - Total $ 953 $ - $ (359 ) $ - $ (49 ) $ - |
Schedule of notional amounts of outstanding derivative | As of December 31, 2021 2020 Derivatives designated as hedging instruments: Foreign exchange contracts: NIS $ 36,013 $ - Derivatives not designated as hedging instruments: Foreign exchange contracts: GBP 4,054 - Euro 2,830 - AUD 581 - 7,465 - Total $ 43,478 $ - |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of operating leases future minimum lease payments | Years Ending December 31, Amount 2022 $ 8,718 2023 10,531 2024 10,964 2025 11,217 2026 11,242 Thereafter 19,093 Total minimum lease payments $ 71,765 |
Schedule of future minimum payments including finance lease liability | Years Ending December 31, Amount 2022 $ 16,611 2023 12,121 2024 6,224 Total contractual obligations $ 34,956 |
FINANCIAL INCOME (EXPENSES) ,_2
FINANCIAL INCOME (EXPENSES) , NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Schedule of financial income (expenses) | Year ended 2021 2020 2019 Financial expenses : Bank charges and other $ 566 $ 340 $ 226 Interest on credit facility and amortization of debt issuance fees 405 671 543 Exchange rate expense, net 742 - - Total financial expenses 1,713 1,011 769 Financial income : Exchange rate income, net - 492 115 Interest income on deposits 875 1,045 2,244 Total financial income 875 1,537 2,359 Financial income (expenses), net $ (838 ) $ 526 $ 1,590 |
CONVERTIBLE PREFERRED SHARES (T
CONVERTIBLE PREFERRED SHARES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Preferred Stock, Number of Shares, Par Value and Other Disclosures [Abstract] | |
Schedule of composition of Convertible Preferred Shares | Authorized Issued and Outstanding Issuance Price Per Share Carrying Value, Net Series A 5,000,000 4,383,300 $ 0.30 $ 1,280 Series B 4,619,000 4,619,000 1.08 4,970 Series B-1 1,563,400 1,563,400 0.70 1,100 Series B-2 1,938,100 1,938,100 0.77 1,496 Series C 6,641,900 6,641,900 3.76 24,925 Series D 3,660,027 3,660,027 13.66 49,875 Series E 3,634,512 3,634,512 41.27 149,850 Total 27,056,939 26,440,239 $ 233,496 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Schedule of ordinary shares reserved for future issuance | As of December 31, 2021 2020 Conversion of Preferred shares: Series A - 4,383,300 Series B - 4,619,000 Series B-1 - 1,563,400 Series B-2 - 1,938,100 Series C - 6,641,900 Series D - 3,660,027 Series E - 3,634,512 Ordinary shares 44,924,038 12,354,471 Outstanding share options and RSUs 6,302,344 5,909,263 Shares available for future grants under the 2017 and 2021 plans 5,281,960 1,332,909 Total 56,508,342 46,036,882 |
Schedule of share option activity | Number of Weighted- Weighted Aggregate Outstanding — January 1, 2021 5,909,263 $ 4.79 7.5 $ 341,152 Granted 1,706,770 $ 39.02 Exercised (1,090,670 ) $ 4.83 Expired and forfeited (320,758 ) $ 22.8 Outstanding — December 31, 2021 6,204,605 $ 13.53 7.21 $ 1,831,568 Exercisable — December 31, 2021 3,832,645 $ 3.14 6.21 $ 1,171,168 |
Schedule of unvested restricted stock units | Number of Units Weighted-Average Fair Value Balance at January 1, 2021 - $ - Granted 100,678 $ 277.7 Vested (917 ) $ 245.07 Canceled (2,022 ) $ 255.06 Balance at December 31, 2021 97,739 $ 278.46 |
Schedule of share-based compensation expense | Year ended December 31, 2021 2020 2019 Cost of revenues $ 7,681 $ 2,720 $ 970 Research and development 21,779 12,142 9,396 Sales and marketing 23,135 10,068 3,283 General and administrative *) 20,934 39,415 8,190 Share-based compensation, net of amounts capitalized $ 73,529 $ 64,345 $ 21,839 Capitalized share-based compensation expense 1,522 380 100 Total share-based compensation $ 75,051 $ 64,725 $ 21,939 *) Share-based compensation expenses in 2020 includes costs related to the fair value of fully vested options granted to the Company’s Co-CEO in December 2020 in the amount of $30,424. |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of domestic and foreign components of loss before income taxes | Year ended December 31, 2021 2020 2019 Domestic (Israel) $ (132,203 ) $ (152,335 ) $ (91,788 ) Foreign 5,240 2,324 860 Total $ (126,963 ) $ (150,011 ) $ (90,928 ) |
Schedule of domestic and foreign components of income taxes | Year ended December 31, 2021 2020 2019 Domestic (Israel) $ 180 $ 243 $ 249 Foreign 2,151 1,949 434 Total $ 2,331 $ 2,192 $ 683 |
Schedule of effective tax rate reconciliation | Year ended December 31, 2021 2020 2019 Tax Rate Tax Rate Tax Rate Theoretical tax benefit $ (29,201 ) 23 % $ (34,503 ) 23 % (20,914 ) 23 % Increase (decrease) in tax rate due to: Change in valuation allowance 15,039 (12 )% 14,622 (10 )% 10,562 (12 )% Share-based compensation 10,184 (8 )% 8,324 (5 )% 2,742 (3 )% Tax benefit relating to exercise of disqualified ISO (3,069 ) 2 % - 0 % - - Initial public offering costs (5,399 ) 4 % - 0 % - - Preferred technological enterprise 14,460 (11 )% 16,757 (11 )% 10,097 (11 )% Currency differences 18 0 % (2,998 ) 2 % (1,796 ) 2 % Other 299 0 % (10 ) 0 % (8 ) 0 % Effective tax $ 2,331 (2 )% $ 2,192 (1 )% 683 |
Schedule of deferred tax assets and liabilities | As of December 31, 2021 2020 Net operating loss carry forwards $ 35,122 $ 27,148 Research and development 5,580 3,296 Initial public offering costs 3,600 - Other temporary differences 2,577 1,414 Carryforward tax credits 867 601 Gross deferred tax assets 47,746 32,459 Valuation allowance (47,143 ) (32,104 ) Total deferred tax assets 603 355 Deferred tax liabilities: Depreciation and amortization (603 ) (355 ) Deferred tax liabilities $ (603 ) $ (355 ) Net deferred taxes $ - $ - |
LOSS PER SHARE (Tables)
LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of calculation of basic and diluted net loss per share | Year ended 2021 2020 2019 Numerator: Net loss $ 129,294 $ 152,203 $ 91,611 Undistributed earnings attributable to preferred shareholders 8,203 18,713 13,058 Net loss attributable to ordinary shareholders, basic and diluted $ 137,497 $ 170,916 $ 104,669 Denominator: Weighted-average ordinary shares outstanding 30,332,006 12,048,909 11,348,428 Basic and diluted net loss per share $ (4.53 ) $ (14.19 ) $ (9.22 ) |
GEOGRAPHICAL INFORMATION (Table
GEOGRAPHICAL INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of revenues attributed to geographic areas based on location of end customers | Year ended 2021 2020 2019 United States $ 148,291 $ 77,933 $ 36,439 EMEA 97,292 49,747 24,809 Rest of the world 62,567 33,443 16,841 $ 308,150 $ 161,123 $ 78,089 |
Schedule of property and equipment, net by geographical areas | As of 2021 2020 Israel $ 18,583 $ 6,361 United States 748 756 Rest of the world 268 61 $ 19,599 $ 7,178 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Doubtful accounts expense | $ 594 | $ 264 | ||
Bad debts written off | 609 | |||
Severance Costs | 4,608 | 2,721 | $ 1,349 | |
Maximum annual contributions | 915 | 529 | 165 | |
Deferred revenue, revenue recognized | 70,719 | 40,981 | ||
Advertising Expense | $ 143,472 | $ 129,101 | $ 98,423 | |
Right of use of assets | $ 58,000 | |||
Right of use of operating lease liability | $ 68,000 | |||
Outstanding convertible preferred shares converted | 26,440,239 | |||
Outstanding share options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 6,302,344 | 5,909,263 | 4,684,239 | |
Convertible preferred share | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share | 26,440,239 | 26,440,239 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computers, software and electronic equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Computers, software and electronic equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 5 years |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 10 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life | 14 years |
Capitalized internal software development costs | |
Property, Plant and Equipment [Line Items] | |
Useful life | 3 years |
Leasehold improvements | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | Shorter of the remaining term of the underlying lease, or estimated useful life of the asset |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected dividend yield | 0.00% | 0.00% | 0.00% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.68% | 0.30% | 2.12% |
Expected term (in years) | 5 years | 5 years | 5 years |
Expected volatility | 49.00% | 47.00% | 43.00% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.15% | 0.58% | 2.75% |
Expected term (in years) | 8 years | 8 years | 8 years |
Expected volatility | 50.00% | 48.00% | 45.00% |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Prepaid Expense and Other Assets, Current [Abstract] | ||
Prepaid expenses | $ 12,733 | $ 2,508 |
Government institutions | 3,520 | 767 |
Derivative instruments | 656 | 0 |
Other current assets | 1,263 | 623 |
Total prepaid expenses and other current assets | $ 18,172 | $ 3,898 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation and amortization expense | $ 2,746 | $ 1,888 | $ 579 |
Capital loss with respect to sell of assets attributed to leasehold improvements | 76 | ||
Capitalized costs related to the development of internal-use software | 465 | 1,499 | 3,702 |
Amortization of capitalized software development costs | 94 | 232 | 547 |
Net carrying value of capitalized internal-use software | $ 371 | $ 1,638 | $ 4,793 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 25,173 | $ 10,084 |
Less accumulated depreciation and amortization | (5,574) | (2,906) |
Property and equipment, net | 19,599 | 7,178 |
Computer, software, and electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8,095 | 3,693 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 4,458 | 1,178 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 6,700 | 2,995 |
Capitalized internal software development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,666 | 1,964 |
Capital leases | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 254 | $ 254 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accrued Liabilities, Current [Abstract] | ||
Accrued employee compensation and benefits | $ 51,953 | $ 14,210 |
Accrued expenses | 13,149 | 4,825 |
Capital lease – short-term | 84 | 88 |
Advances from customers | 2,134 | 1,556 |
Income and indirect taxes payable | 2,815 | 2,288 |
Total | $ 70,135 | $ 22,967 |
DERIVATIVES AND HEDGING (Detail
DERIVATIVES AND HEDGING (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivatives designated as hedging instruments | $ 705 | $ 0 |
Derivatives not designated as hedging instruments | (49) | 0 |
Derivative instruments | 656 | 0 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives not designated as hedging instruments | (7,465) | 0 |
Foreign exchange contracts | Prepaid expenses and other current assets | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments | 705 | 0 |
Derivatives not designated as hedging instruments | $ (49) | $ 0 |
DERIVATIVES AND HEDGING (Deta_2
DERIVATIVES AND HEDGING (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net | $ 953 | $ 0 | $ 0 |
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income | (359) | 0 | $ 0 |
Amount Excluded from Effectiveness Testing Recognized in Income | (49) | 0 | |
Designated as hedging Instrument | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net | 953 | 0 | |
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income | 359 | 0 | |
Amount Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | |
Not designated as hedging instrument | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net | 0 | 0 | |
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | |
Amount Excluded from Effectiveness Testing Recognized in Income | (49) | 0 | |
Foreign exchange contracts | Designated as hedging Instrument | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net | 953 | 0 | |
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income | 359 | 0 | |
Amount Excluded from Effectiveness Testing Recognized in Income | 0 | 0 | |
Foreign exchange contracts | Not designated as hedging instrument | |||
Derivative [Line Items] | |||
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net | 0 | 0 | |
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income | 0 | 0 | |
Amount Excluded from Effectiveness Testing Recognized in Income | $ (49) | $ 0 |
DERIVATIVES AND HEDGING (Deta_3
DERIVATIVES AND HEDGING (Details 2) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Derivative [Line Items] | ||
Derivatives designated as hedging instruments | $ 705 | $ 0 |
Derivatives not designated as hedging instruments: | 49 | 0 |
Notional amounts of outstanding derivatives | 43,478 | 0 |
Foreign exchange contracts | ||
Derivative [Line Items] | ||
Derivatives not designated as hedging instruments: | 7,465 | 0 |
Foreign exchange contracts | NIS | ||
Derivative [Line Items] | ||
Derivatives designated as hedging instruments | 36,013 | 0 |
Foreign exchange contracts | GBP | ||
Derivative [Line Items] | ||
Derivatives not designated as hedging instruments: | 4,054 | 0 |
Foreign exchange contracts | Euro | ||
Derivative [Line Items] | ||
Derivatives not designated as hedging instruments: | 2,830 | |
Foreign exchange contracts | AUD | ||
Derivative [Line Items] | ||
Derivatives not designated as hedging instruments: | $ 581 | $ 0 |
REVOLVING CREDIT FACILITY (Narr
REVOLVING CREDIT FACILITY (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||||
Minimum Liquidity Balance | $ 30,000 | $ 30,000 | ||
Revolving Credit Facility | ||||
Line of Credit Facility [Line Items] | ||||
Aggregated principal amount | $ 80,000 | |||
Line of credit facility, interest rate description | Amounts borrowed under the new facility accrue interest at the rate equal to one month Libor + 2.6% for amounts of up to $8,000, which will increase to one-month LIBOR plus 2.85% per annum on September 1, 2022, and one-month Libor + 2.85 % per annum for amounts above $8,000, with accrued interest payable monthly. | |||
Fee paid per annum on unutilized amounts eligible for drawdown | 0.20% | |||
Paid upfront issuance fees | $ 180 | |||
Unutilized credit facilities available for borrowing | 80,000 | 59,000 | ||
Interest expenses | $ 316 | $ 671 | $ 543 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Nov. 13, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Operating leases rent expense | $ 4,326 | $ 3,287 | $ 1,943 | |
Capital lease agreement | $ 254 | |||
Capital Lease liability | 84 | 175 | ||
Bank guarantee to secure lease agreements | $ 2,186 | $ 2,115 |
COMMITMENTS AND CONTINGENCIES_3
COMMITMENTS AND CONTINGENCIES (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 8,718 |
2023 | 10,531 |
2024 | 10,964 |
2025 | 11,217 |
2026 | 11,242 |
Thereafter | 19,093 |
Total minimum lease payments | $ 71,765 |
COMMITMENTS AND CONTINGENCIES_4
COMMITMENTS AND CONTINGENCIES (Details 1) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2022 | $ 16,611 |
2023 | 12,121 |
2024 | 6,224 |
Total contractual obligations | $ 34,956 |
FINANCIAL INCOME (EXPENSES) ,_3
FINANCIAL INCOME (EXPENSES) , NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Financial expenses: | |||
Bank charges and other | $ 566 | $ 340 | $ 226 |
Interest on credit facility and amortization of debt issuance fees | 405 | 671 | 543 |
Exchange rate expense, net | 742 | 0 | 0 |
Total financial expenses | 1,713 | 1,011 | 769 |
Financial income: | |||
Exchange rate income, net | 0 | 492 | 115 |
Interest income on deposits | 875 | 1,045 | 2,244 |
Total financial income | 875 | 1,537 | 2,359 |
Financial income (expenses), net | $ (838) | $ 526 | $ 1,590 |
CONVERTIBLE PREFERRED SHARES (N
CONVERTIBLE PREFERRED SHARES (Narrative) (Details) | Dec. 31, 2021shares |
Temporary Equity [Line Items] | |
Outstanding convertible preferred shares converted | 26,440,239 |
CONVERTIBLE PREFERRED SHARES (D
CONVERTIBLE PREFERRED SHARES (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Temporary Equity [Line Items] | ||||
Authorized | 0 | 27,056,939 | ||
Issued | 0 | 26,440,239 | ||
Outstanding | 0 | 26,440,239 | ||
Carrying Value, Net | $ 0 | $ 233,496 | ||
Series A | ||||
Temporary Equity [Line Items] | ||||
Authorized | 5,000,000 | |||
Issued | 4,383,300 | |||
Outstanding | 4,383,300 | |||
Issuance Price Per Share | $ 0.30 | |||
Carrying Value, Net | $ 1,280 | |||
Series B | ||||
Temporary Equity [Line Items] | ||||
Authorized | 4,619,000 | |||
Issued | 4,619,000 | |||
Outstanding | 4,619,000 | |||
Issuance Price Per Share | $ 1.08 | |||
Carrying Value, Net | $ 4,970 | |||
Series B-1 | ||||
Temporary Equity [Line Items] | ||||
Authorized | 1,563,400 | |||
Issued | 1,563,400 | |||
Outstanding | 1,563,400 | |||
Issuance Price Per Share | $ 0.70 | |||
Carrying Value, Net | $ 1,100 | |||
Series B-2 | ||||
Temporary Equity [Line Items] | ||||
Authorized | 1,938,100 | |||
Issued | 1,938,100 | |||
Outstanding | 1,938,100 | |||
Issuance Price Per Share | $ 0.77 | |||
Carrying Value, Net | $ 1,496 | |||
Series C | ||||
Temporary Equity [Line Items] | ||||
Authorized | 6,641,900 | |||
Issued | 6,641,900 | |||
Outstanding | 6,641,900 | |||
Issuance Price Per Share | $ 3.76 | |||
Carrying Value, Net | $ 24,925 | |||
Series D | ||||
Temporary Equity [Line Items] | ||||
Authorized | 3,660,027 | |||
Issued | 3,660,027 | |||
Outstanding | 3,660,027 | |||
Issuance Price Per Share | $ 13.66 | |||
Carrying Value, Net | $ 49,875 | |||
Series E | ||||
Temporary Equity [Line Items] | ||||
Authorized | 3,634,512 | |||
Issued | 3,634,512 | |||
Outstanding | 3,634,512 | |||
Issuance Price Per Share | $ 41.27 | |||
Carrying Value, Net | $ 149,850 | |||
Convertible Preferred Shares | ||||
Temporary Equity [Line Items] | ||||
Authorized | 27,056,939 | |||
Issued | 26,440,239 | |||
Outstanding | 0 | 26,440,239 | 26,440,239 | 22,805,727 |
Carrying Value, Net | $ 0 | $ 233,496 | $ 233,496 | $ 83,646 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) $ / shares in Units, $ in Thousands | Jun. 10, 2021USD ($)$ / sharesshares | Dec. 31, 2021USD ($)Investors$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares | Dec. 31, 2019USD ($)$ / sharesshares | |
Stockholders Equity Note [Line Items] | |||||
Ordinary shares, shares authorized | shares | 99,999,999 | 52,943,061 | |||
Share-based compensation cost | $ 73,529 | $ 64,345 | $ 21,839 | ||
Options granted | shares | 1,706,770 | ||||
Exercise price of Options granted | $ / shares | $ 39.02 | ||||
Number of ordinary shares reserved and available for grant and issuance | shares | 5,281,960 | 1,332,909 | |||
Share-based compensation | $ 75,051 | $ 64,725 | $ 21,939 | ||
Outstanding convertible preferred shares converted | shares | 26,440,239 | ||||
Equity method investment, ownership percentage | 25.00% | ||||
Secondary market transaction | |||||
Stockholders Equity Note [Line Items] | |||||
Sale of ordinary shares | shares | 1,047,778 | 639,739 | |||
Consideration received on sale of ordinary shares | $ 40,000 | $ 37,718 | |||
Sale of stock, price per share | $ / shares | $ 38.18 | $ 58.96 | |||
Share-based compensation cost | $ 10,487 | $ 13,145 | |||
Initial public offering and concurrent private placement | |||||
Stockholders Equity Note [Line Items] | |||||
Net proceeds of deducting underwriting discounts and commissions | $ 591,856 | $ 6,000 | |||
Additional ordinary shares pursuant to underwriters option to purchase | shares | 370,000 | ||||
Sale of stock, price per share | $ / shares | $ 155 | ||||
Number of share issued | shares | 3,700,000 | ||||
Net proceeds after deducting underwriting discounts and commissions. | $ 34,697 | ||||
Other issuance costs | $ 4,298 | ||||
Outstanding convertible preferred shares converted | shares | 26,440,239 | ||||
Number of investors | Investors | 2 | ||||
Number of ordinary shares purchased | shares | 967,742 | ||||
Gross proceeds of consideration per transaction | $ 150,000 | ||||
Deferred offering costs | 44,995 | ||||
Deferred costs and other assets | 174 | ||||
General and administrative | |||||
Stockholders Equity Note [Line Items] | |||||
Share-based compensation cost | [1] | 20,934 | $ 39,415 | $ 8,190 | |
Co-CEO | |||||
Stockholders Equity Note [Line Items] | |||||
Share-based compensation | $ 30,424 | ||||
2017 share option plan | |||||
Stockholders Equity Note [Line Items] | |||||
Weighted-average grant-date fair value of options granted | $ / shares | $ 77 | $ 38.3 | $ 17.9 | ||
Intrinsic value of options exercised | $ 321,891 | $ 18,868 | $ 17,478 | ||
Unamortized share-based compensation expense | $ 101,027 | $ 31,018 | $ 10,058 | ||
Weighted average period for cost expected to be recognized | 1 year 11 months 19 days | 1 year 9 months 10 days | 1 year 9 months 3 days | ||
2021 equity incentive plan | |||||
Stockholders Equity Note [Line Items] | |||||
Unrecognized compensation cost related to unvested restricted share units | $ 22,821 | ||||
Weighted average period for cost expected to be recognized | 1 year 11 months 23 days | ||||
[1] | Share-based compensation expenses in 2020 includes costs related to the fair value of fully vested options granted to the Company’s Co-CEO in December 2020 in the amount of $30,424. |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - shares | Dec. 31, 2021 | Dec. 31, 2020 |
Class of Stock [Line Items] | ||
Shares available for future grants under the 2017 and 2021 plans | 5,281,960 | 1,332,909 |
Total | 56,508,342 | 46,036,882 |
Ordinary shares | ||
Class of Stock [Line Items] | ||
Ordinary shares reserved for future issuance | 44,924,038 | 12,354,471 |
Outstanding share options and RSUs | ||
Class of Stock [Line Items] | ||
Ordinary shares reserved for future issuance | 6,302,344 | 5,909,263 |
Series A | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 4,383,300 |
Series B | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 4,619,000 |
Series B-1 | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 1,563,400 |
Series B-2 | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 1,938,100 |
Series C | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 6,641,900 |
Series D | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 3,660,027 |
Series E | ||
Class of Stock [Line Items] | ||
Preferred shares available for future issuance | 0 | 3,634,512 |
SHAREHOLDERS' EQUITY (Details 1
SHAREHOLDERS' EQUITY (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Number of Options outstanding | ||
Beginning balance | 5,909,263 | |
Granted | 1,706,770 | |
Exercised | (1,090,670) | |
Expired and forfeited | (320,758) | |
Ending balance | 6,204,605 | 5,909,263 |
Exercisable | 3,832,645 | |
Weighted-Average Exercise Price | ||
Beginning balance | $ 4.79 | |
Granted | 39.02 | |
Exercised | 4.83 | |
Expired and forfeited | 22.8 | |
Ending balance | 13.53 | $ 4.79 |
Exercisable | $ 3.14 | |
Weighted Average Remaining Contractual life, Outstanding | 7 years 2 months 15 days | 7 years 6 months |
Weighted Average Remaining Contractual life, Exercisable | 6 years 2 months 15 days | |
Aggregate Intrinsic Value, outstanding | $ 1,831,568 | $ 341,152 |
Aggregate Intrinsic Value, exercisable | $ 1,171,168 |
SHAREHOLDERS' EQUITY (Details 2
SHAREHOLDERS' EQUITY (Details 2) | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Granted | 1,706,770 |
Restricted Stock Units (RSUs) [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward] | |
Balance | 0 |
Granted | 100,678 |
Vested | (917) |
Canceled | (2,022) |
Balance | 97,739 |
Weighted-Average Fair Value | |
Balance | $ / shares | $ 0 |
Weighted-average fair value granted | $ / shares | 277.7 |
Weighted-average fair value vested | $ / shares | 245.07 |
Weighted-average fair value canceled | $ / shares | 255.06 |
Balance | $ / shares | $ 278.46 |
SHAREHOLDERS' EQUITY (Details 3
SHAREHOLDERS' EQUITY (Details 3) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation, net of amounts capitalized | $ 73,529 | $ 64,345 | $ 21,839 | |
Capitalized share-based compensation expense | 1,522 | 380 | 100 | |
Total share-based compensation | 75,051 | 64,725 | 21,939 | |
Cost of revenues | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation, net of amounts capitalized | 7,681 | 2,720 | 970 | |
Research and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation, net of amounts capitalized | 21,779 | 12,142 | 9,396 | |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation, net of amounts capitalized | 23,135 | 10,068 | 3,283 | |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Share-based compensation, net of amounts capitalized | [1] | $ 20,934 | $ 39,415 | $ 8,190 |
[1] | Share-based compensation expenses in 2020 includes costs related to the fair value of fully vested options granted to the Company’s Co-CEO in December 2020 in the amount of $30,424. |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Operating Loss Carryforwards | $ 292,687 | ||
Corporate tax rate | 23.00% | 23.00% | 23.00% |
Tax rate | 21.00% | ||
Tax rate on income derived from intellectual property | 12.00% | ||
Tax rate of development area | 7.50% | ||
Tax rate on dividends distributed from income from preferred technological enterprises | 20.00% | ||
Tax rate on dividend distributed to foreign corporate shareholder | 4.00% |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Israel) | $ (132,203) | $ (152,335) | $ (91,788) |
Foreign | 5,240 | 2,324 | 860 |
Loss before income taxes | $ (126,963) | $ (150,011) | $ (90,928) |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic (Israel) | $ 180 | $ 243 | $ 249 |
Foreign | 2,151 | 1,949 | 434 |
Total | $ 2,331 | $ 2,192 | $ 683 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Tax | |||
Theoretical tax benefit | $ (29,201) | $ (34,503) | $ (20,914) |
Increase (decrease) in tax rate due to: | |||
Change in valuation allowance | 15,039 | 14,622 | 10,562 |
Share-based compensation | 10,184 | 8,324 | 2,742 |
Tax benefit relating to exercise of disqualified ISO | (3,069) | 0 | 0 |
Initial public offering costs | (5,399) | 0 | 0 |
Preferred technological enterprise | 14,460 | 16,757 | 10,097 |
Currency differences | 18 | (2,998) | (1,796) |
Other | 299 | (10) | (8) |
Effective tax | $ 2,331 | $ 2,192 | $ 683 |
Rate | |||
Theoretical tax benefit | 23.00% | 23.00% | 23.00% |
Change in valuation allowance | (12.00%) | (10.00%) | (12.00%) |
Share-based compensation | (8.00%) | (5.00%) | (3.00%) |
Tax benefit relating to exercise of disqualified ISO | 2.00% | 0.00% | 0.00% |
Initial public offering costs | 4.00% | 0.00% | 0.00% |
Preferred technological enterprise | (11.00%) | (11.00%) | (11.00%) |
Currency differences | 0.00% | 2.00% | 2.00% |
Other | 0.00% | 0.00% | 0.00% |
Effective tax | (2.00%) | (1.00%) |
INCOME TAXES (Details 3)
INCOME TAXES (Details 3) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Net operating loss carry forwards | $ 35,122 | $ 27,148 |
Research and development | 5,580 | 3,296 |
Initial public offering costs | 3,600 | 0 |
Other temporary differences | 2,577 | 1,414 |
Carryforward tax credits | 867 | 601 |
Gross deferred tax assets | 47,746 | 32,459 |
Valuation allowance | (47,143) | (32,104) |
Total deferred tax assets | 603 | 355 |
Deferred tax liabilities: | ||
Depreciation and amortization | (603) | (355) |
Deferred tax liabilities | (603) | (355) |
Net deferred taxes | $ 0 | $ 0 |
LOSS PER SHARE (Details)
LOSS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Numerator: | |||
Net loss | $ 129,294 | $ 152,203 | $ 91,611 |
Undistributed earnings attributable to preferred shareholders | 8,203 | 18,713 | 13,058 |
Net loss attributable to ordinary shareholders, basic and diluted | $ 137,497 | $ 170,916 | $ 104,669 |
Denominator: | |||
Weighted-average ordinary shares outstanding | 30,332,006 | 12,048,909 | 11,348,428 |
Basic and diluted net loss per share | $ (4.53) | $ (14.19) | $ (9.22) |
GEOGRAPHICAL INFORMATION (Detai
GEOGRAPHICAL INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 308,150 | $ 161,123 | $ 78,089 |
Segment revenue benchmark | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 308,150 | 161,123 | 78,089 |
United States | Segment revenue benchmark | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 148,291 | 77,933 | 36,439 |
EMEA | Segment revenue benchmark | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 97,292 | 49,747 | 24,809 |
Rest of the world | Segment revenue benchmark | Geographic concentration risk | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 62,567 | $ 33,443 | $ 16,841 |
GEOGRAPHICAL INFORMATION (Det_2
GEOGRAPHICAL INFORMATION (Details 1) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenue, Major Customer [Line Items] | ||
Property and equipment, net | $ 19,599 | $ 7,178 |
Property and equipment | Geographic concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Property and equipment, net | 19,599 | 7,178 |
Israel | Property and equipment | Geographic concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Property and equipment, net | 18,583 | 6,361 |
United States | Property and equipment | Geographic concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Property and equipment, net | 748 | 756 |
Rest of the world | Property and equipment | Geographic concentration risk | ||
Revenue, Major Customer [Line Items] | ||
Property and equipment, net | $ 268 | $ 61 |