DOCUMENT AND ENTITY INFORMATION
DOCUMENT AND ENTITY INFORMATION | 12 Months Ended |
Dec. 31, 2023 shares | |
Entity Central Index Key | 0001847584 |
Document Type | 20-F |
Document Period End Date | Dec. 31, 2023 |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | FY |
Current Fiscal Year End Date | --12-31 |
Amendment Flag | false |
Auditor Firm ID | 1281 |
Auditor Location | Tel-Aviv, Israel |
Auditor Name | KOST FORER GABBAY & KASIERER |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Entity File Number | 001-40490 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 1 Walter Moses St. |
Entity Address, City or Town | Tel Aviv |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 6789903 |
Title of 12(b) Security | Ordinary shares, no par value |
Trading Symbol | WKME |
Security Exchange Name | NASDAQ |
Entity Common Stock, Shares Outstanding | 90,864,662 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
ICFR Auditor Attestation Flag | false |
Entity Registrant Name | WalkMe Ltd. |
Document Financial Statement Error Correction [Flag] | false |
Business Contact [Member] | |
Entity Address, Address Line One | General Counsel |
Entity Address, Address Line Two | 71 Stevenson Street, Floor 20 |
Entity Address, City or Town | San Francisco |
Entity Address, Country | CA |
Entity Address, Postal Zip Code | 94105 |
City Area Code | 855 |
Local Phone Number | 492-5563 |
Contact Personnel Name | Paul Bradley Shinn |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 177,223 | $ 94,105 |
Short-term deposits | 28,027 | 125,231 |
Short-term marketable securities | 60,290 | 42,187 |
Trade receivables, net | 40,494 | 45,024 |
Short-term deferred contract acquisition costs | 26,793 | 26,287 |
Prepaid expenses and other assets | 8,739 | 6,243 |
Total current assets | 341,566 | 339,077 |
NON-CURRENT ASSETS: | ||
Long-term deferred contract acquisition costs | 30,267 | 40,110 |
Other assets | 317 | 584 |
Long-term marketable securities | 56,282 | 43,334 |
Property and equipment, net | 12,059 | 13,268 |
Operating lease right-of-use assets | 12,005 | 7,003 |
Goodwill and intangible assets, net | 1,561 | 1,830 |
Total non-current assets | 112,491 | 106,129 |
TOTAL ASSETS | 454,057 | 445,206 |
CURRENT LIABILITIES: | ||
Trade payables | 3,508 | 5,957 |
Employees and payroll accruals | 25,041 | 30,720 |
Accrued expenses and other liabilities | 18,127 | 17,685 |
Short-term operating lease liabilities | 4,604 | 5,009 |
Deferred revenues | 110,701 | 108,097 |
Total current liabilities | 161,981 | 167,468 |
NON-CURRENT LIABILITIES: | ||
Deferred revenues | 894 | 1,613 |
Deferred tax liabilities, net | 5,559 | 7,330 |
Other liabilities | 6,825 | 2,708 |
Long-term operating lease liabilities | 8,222 | 3,833 |
Total non-current liabilities | 21,500 | 15,484 |
TOTAL LIABILITIES | 183,481 | 182,952 |
REDEEMABLE NON-CONTROLLING INTEREST | 10,429 | 8,080 |
SHAREHOLDERS’ EQUITY: | ||
Ordinary shares of no par value -Authorized: 900,000,000 shares at December 31, 2023 and 2022; Issued and outstanding: 90,864,662 and 86,780,082 shares at December 31, 2023 and 2022, respectively | 0 | 0 |
Additional paid-in capital | 748,801 | 688,636 |
Accumulated other comprehensive income (loss) | 478 | (1,817) |
Accumulated deficit | (489,132) | (432,645) |
Total shareholders’ equity | 260,147 | 254,174 |
TOTAL LIABILITIES, REDEEMABLE NON-CONTROLLING INTEREST AND SHAREHOLDERS’ EQUITY | $ 454,057 | $ 445,206 |
CONSOLIDATED BALANCE SHEETS (PA
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - $ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Common stock, no par value | $ 0 | $ 0 |
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 90,864,662 | 86,780,082 |
Common stock, shares outstanding | 90,864,662 | 86,780,082 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | |||
Total revenues | $ 266,954 | $ 245,006 | $ 193,303 |
Cost of revenues | |||
Total cost of revenues | 44,373 | 53,884 | 46,657 |
Gross profit | 222,581 | 191,122 | 146,646 |
Research and development | 55,107 | 59,468 | 48,160 |
Sales and marketing | 161,372 | 176,307 | 127,719 |
General and administrative | 70,983 | 65,188 | 48,557 |
Total operating expenses | 287,462 | 300,963 | 224,436 |
Operating loss | (64,881) | (109,841) | (77,790) |
Financial income (expense), net | 13,195 | 5,322 | (9) |
Loss before income taxes | (51,686) | (104,519) | (77,799) |
Income taxes | (5,067) | (3,831) | (2,494) |
Net loss | (56,753) | (108,350) | (80,293) |
Net loss attributable to non-controlling interest | (266) | (743) | (1,169) |
Adjustment attributable to non-controlling interest | 2,649 | (14,979) | 16,689 |
Net loss attributable to WalkMe Ltd. | $ (59,136) | $ (92,628) | $ (95,813) |
Net loss per share attributable to WalkMe Ltd. basic | $ (0.67) | $ (1.09) | $ (1.85) |
Net loss per share attributable to WalkMe Ltd. diluted | $ (0.67) | $ (1.09) | $ (1.85) |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic | 88,912,397 | 85,116,424 | 51,763,032 |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted | 88,912,397 | 85,116,424 | 51,763,032 |
Subscription | |||
Revenues | |||
Total revenues | $ 247,715 | $ 220,972 | $ 175,328 |
Cost of revenues | |||
Total cost of revenues | 25,360 | 25,990 | 24,025 |
Professional services | |||
Revenues | |||
Total revenues | 19,239 | 24,034 | 17,975 |
Cost of revenues | |||
Total cost of revenues | $ 19,013 | $ 27,894 | $ 22,632 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (56,753) | $ (108,350) | $ (80,293) |
Other comprehensive income (loss):Change in unrealized net gain (loss) on cash flow hedges: | |||
Unrealized gain (loss) arising during the year | (2,667) | (5,651) | 1,271 |
Net gain (loss) reclassified into net loss | 4,997 | 3,471 | (669) |
Change in unrealized net gain (loss) on cash flow hedges | 2,330 | (2,180) | 602 |
Change in net unrealized gains on marketable securities | 0 | 11 | 0 |
Foreign currency translation adjustments | (69) | (202) | (546) |
Other comprehensive income (loss) | 2,261 | (2,371) | 56 |
Comprehensive loss | (54,492) | (110,721) | (80,237) |
Less comprehensive loss attributable to redeemable non-controlling interest: | |||
Net loss attributable to redeemable non-controlling interest | (266) | (743) | (1,169) |
Foreign currency translation adjustments attributable to redeemable non-controlling interest | (34) | (99) | (266) |
Comprehensive loss attributable to redeemable non-controlling interest | (300) | (842) | (1,435) |
Comprehensive loss attributable to WalkMe Ltd. | $ (54,192) | $ (109,879) | $ (78,802) |
CONSOLIDATED STATEMENTS OF CONV
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Convertible Preferred Shares | Ordinary shares | Additional paid-in capital | Accumulated other comprehensive Income (loss) | Accumulated deficit | Total |
Beginning balance , convertible preferred share at Dec. 31, 2020 | $ 300,490 | |||||
Beginning balance , convertible preferred share (shares) at Dec. 31, 2020 | 58,724,580 | |||||
Balance at Dec. 31, 2020 | $ 0 | $ 21,524 | $ 131 | $ (245,914) | $ (224,259) | |
Balance (shares) at Dec. 31, 2020 | 13,773,000 | |||||
Issuance of Series F convertible preferred shares, net | $ 10,000 | |||||
Issuance of Series F convertible preferred shares, net (shares) | 455,942 | |||||
Issuance of ordinary shares in connection with asset acquisition | 776 | 776 | ||||
Issuance of ordinary shares in connection with asset acquisition (shares) | 33,150 | |||||
Conversion of convertible preferred shares to ordinary shares upon initial public offering | $ (310,490) | |||||
Conversion of convertible preferred shares to ordinary shares upon initial public offering (shares) | (59,180,522) | |||||
Conversion of convertible preferred shares to ordinary shares upon initial public offering | $ 0 | 310,490 | 0 | 0 | 310,490 | |
Conversion of convertible preferred shares to ordinary shares upon initial public offering (shares) | 59,180,522 | |||||
Issuance of ordinary shares upon initial public offering, net of underwriting discounts and commissions and other issuance costs | $ 0 | 263,911 | 0 | 0 | 263,911 | |
Issuance of ordinary shares upon initial public offering, net of underwriting discounts and commissions and other issuance costs (shares) | 9,250,000 | |||||
Exercise of share options and vested RSUs | $ 0 | 2,849 | 0 | 0 | 2,849 | |
Exercise of share options and vested RSUs (shares) | 1,517,334 | |||||
Share-based compensation | $ 0 | 27,332 | 0 | 0 | 27,332 | |
Other comprehensive income | 0 | 0 | 324 | 324 | ||
Net loss attributable to WalkMe Ltd. including adjustment to redeemable non-controlling interest | 0 | (16,689) | 0 | (79,124) | (95,813) | |
Ending balance, convertible preferred share at Dec. 31, 2021 | $ 0 | |||||
Ending balance, convertible preferred share (shares) at Dec. 31, 2021 | 0 | |||||
Balance at Dec. 31, 2021 | $ 0 | 610,193 | 455 | (325,038) | 285,610 | |
Balance (shares) at Dec. 31, 2021 | 83,754,006 | |||||
Exercise of share options and vested RSUs | $ 0 | 5,036 | 0 | 0 | 5,036 | |
Exercise of share options and vested RSUs (shares) | 2,358,586 | |||||
Issuance of ordinary shares under Employee Share Purchase Plan | $ 0 | 7,656 | 0 | 0 | 7,656 | |
Issuance of ordinary shares under Employee Share Purchase Plan (Shares) | 667,490 | |||||
Share-based compensation | $ 0 | 50,772 | 0 | 0 | 50,772 | |
Other comprehensive income | 0 | 0 | (2,272) | 0 | (2,272) | |
Net loss attributable to WalkMe Ltd. including adjustment to redeemable non-controlling interest | 0 | 14,979 | 0 | (107,607) | (92,628) | |
Ending balance, convertible preferred share at Dec. 31, 2022 | $ 0 | |||||
Ending balance, convertible preferred share (shares) at Dec. 31, 2022 | 0 | |||||
Balance at Dec. 31, 2022 | $ 0 | 688,636 | (1,817) | (432,645) | 254,174 | |
Balance (shares) at Dec. 31, 2022 | 86,780,082 | |||||
Exercise of share options and vested RSUs | $ 0 | 1,864 | 0 | 0 | 1,864 | |
Exercise of share options and vested RSUs (shares) | 3,492,917 | |||||
Issuance of ordinary shares under Employee Share Purchase Plan | $ 0 | 4,874 | 0 | 0 | 4,874 | |
Issuance of ordinary shares under Employee Share Purchase Plan (Shares) | 591,663 | |||||
Share-based compensation | 56,076 | 56,076 | ||||
Other comprehensive income | 2,295 | 2,295 | ||||
Net loss attributable to WalkMe Ltd. including adjustment to redeemable non-controlling interest | $ 0 | (2,649) | (56,487) | (59,136) | ||
Ending balance, convertible preferred share at Dec. 31, 2023 | $ 0 | |||||
Ending balance, convertible preferred share (shares) at Dec. 31, 2023 | 0 | |||||
Balance at Dec. 31, 2023 | $ 0 | $ 748,801 | $ 478 | $ (489,132) | $ 260,147 | |
Balance (shares) at Dec. 31, 2023 | 90,864,662 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOW - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net loss | $ (56,753) | $ (108,350) | $ (80,293) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||
Share-based compensation | 55,457 | 50,104 | 27,332 |
Depreciation, amortization and impairment | 6,157 | 7,878 | 4,773 |
Operating lease right-of-use assets and liabilities, net | (1,318) | (551) | 0 |
Finance (income) expenses | 2,125 | (1,758) | (59) |
Amortization of premium and accretion of discount on marketable securities, net | (2,245) | (370) | 0 |
Decrease (increase) in trade receivables, net | 4,530 | (7,417) | (6,976) |
Decrease (increase) in prepaid expenses and other assets | 7,878 | (8,882) | (29,763) |
Increase (decrease) in trade payables | (2,449) | (354) | 906 |
Increase (decrease) in employees and payroll accruals | (4,907) | (5,782) | 15,010 |
Increase in accrued expenses and other liabilities | 6,147 | 3,215 | 4,574 |
Increase in deferred revenues | 2,429 | 22,924 | 28,577 |
Increase (decrease) in deferred taxes, net | (1,771) | 2,535 | 1,694 |
Net cash provided by (used in) operating activities | 15,280 | (46,808) | (34,225) |
Cash flows from investing activities: | |||
Purchase of intangible assets | 0 | 0 | (1,338) |
Capitalization of software development costs | (3,255) | (4,260) | (3,912) |
Purchase of property and equipment | (540) | (2,867) | (2,642) |
Investment in short-term deposits | (28,000) | (170,500) | (66,260) |
Proceeds from short-term deposits | 123,500 | 112,257 | 45,003 |
Investment in restricted deposits | 0 | 0 | (1,298) |
Proceeds from restricted deposits | 0 | 295 | 2,924 |
Investment in marketable securities | (75,653) | (84,881) | 0 |
Proceeds from maturity of marketable securities | 46,057 | 0 | 0 |
Net cash provided by (used in) investing activities | 62,109 | (149,956) | (27,523) |
Cash flows from financing activities: | |||
Proceeds from initial public offering, net of underwriting discounts and commissions and other issuance costs | 0 | 0 | 263,922 |
Proceeds from exercise of options | 1,864 | 5,074 | 2,867 |
Proceeds from employees share purchase plan | 4,102 | 9,717 | 0 |
Issuance of preferred shares, net of issuance costs | 0 | 0 | 10,000 |
Net cash provided by financing activities | 5,966 | 14,791 | 276,789 |
Effect of foreign currency exchange rate changes on cash, cash equivalents, and restricted cash | (560) | (850) | (685) |
Increase (decrease) in cash, cash equivalents and restricted cash | 82,795 | (182,823) | 214,356 |
Cash, cash equivalents and restricted cash - beginning of year | 94,428 | 277,251 | 62,895 |
Cash, cash equivalents and restricted cash - end of year | 177,223 | 94,428 | 277,251 |
Supplemental disclosures of cash flow information: | |||
Cash paid for income taxes, net of refunds | 3,310 | (572) | 365 |
Supplemental disclosures of noncash investing and financing activities: | |||
Lease liabilities arising from obtaining right-of-use-assets | 10,155 | 14,240 | 0 |
Purchase of property and equipment, accrued but not paid | (35) | 268 | 180 |
Issuance of ordinary shares in connection with asset acquisition | 0 | 0 | 776 |
Conversion of convertible preferred shares | 0 | 0 | 310,490 |
Reconciliation of cash, cash equivalents and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | 177,223 | 94,105 | 276,889 |
Restricted cash – included in short-term and long-term restricted deposits. | 0 | 323 | 362 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | $ 177,223 | $ 94,428 | $ 277,251 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2023 | |
General [Abstract] | |
GENERAL | NOTE 1: GENERAL WalkMe Ltd. (together with its subsidiaries, The "Company") was incorporated under the laws of Israel and commenced its operations on October 26, 2011. The Company provides a cloud-based Digital Adoption Platform that enables organizations to better realize the value of their software investments. The Digital Adoption Platform drives the success of digital transformation initiatives by empowering the Company’s customers with critical business insights to increase software adoption and improve user experiences for their employees and customers. WalkMe Ltd. has subsidiaries in the US, Australia, United Kingdom, Singapore, Canada, Germany, and Japan. On June 16, 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 9,250,000 shares of its ordinary shares at an offering price of $31.00 per share. The Company received net proceeds of $263,911 after deducting underwriting discounts and commissions of $18,639, and other issuance costs of $4,200. Immediately prior to the closing of the IPO, all convertible preferred shares then outstanding automatically converted into 59,180,522 ordinary shares. |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements are prepared in accordance with generally accepted accounting principles in the United States ("U.S. GAAP") as set forth in the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC). a. Principles of consolidation: The consolidated financial statements include accounts of the Company’s wholly-owned subsidiaries as well as the Japanese subsidiary in which the Company controls a majority stake. All intercompany accounts and transactions are eliminated. b. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to income taxes, share-based compensation, deferred contract acquisition costs, capitalized software development costs, as well as in estimates used in applying the revenue recognition policy. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. c . Foreign currency: Most of the Company’s revenues and costs are denominated in U.S. dollar. The Company’s management believes that the dollar is the primary currency of the economic environment in which the Company operate, thus, the functional and reporting currency of the Company is the U.S. dollar, with the exception of its Japanese subsidiary, for which the Japanese Yen is the functional currency. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate. The financial statements of the Japanese subsidiary are translated to U.S. dollars using the balance sheet date exchange rates for assets and liabilities, historical rates of exchange for equity, and average exchange rates in the period for revenues and expenses. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. d. Cash and cash equivalents: Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. As of December 31, 2023 and 2022, the Company’s cash and cash equivalents consisted of $164,466 and $46,105 of cash held in the Company’s checking accounts and money market funds and $12,757 and $48,000 bank deposits with original maturities of three months or less, respectively. e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and less than one year. As of December 31, 2023 and 2022, the Company’s bank deposits are denominated in U.S. dollars and bears yearly interest at weighted average rates of 5.71% and 4.84%. Short-term bank deposits are presented at their cost, including accrued interest. f. Restricted deposits: These deposits are used as security for rental of premises and classified according to the lease agreements’ term. g. Investments in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments - Debt Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale (“AFS”) as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) in shareholders' equity. Starting January 1, 2023 the Company adopted ASU 2016-13, Topic 326 "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments" which modified the other than temporary impairment model for available for sale debt securities. Available-for-sale securities are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income (expense), net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets until realized. Realized gains and losses on sale of marketable securities are included in financial income (expense), net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income (expense), net. During the year ended December 31, 2023, no credit loss impairments have been identified. For the year ended December 31, 2022 the Company's securities were reviewed for impairment in accordance with ASC No. 320-10-35. According to this standard, if such assets were considered to be impaired, the impairment charge was recognized in earnings when a decline in the fair value of its investments below the cost basis was judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the year ended December 31, 2022 was not OTTI. h. Fair value of financial instruments: The Company applies ASC No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), with respect to fair value measurements of all financial assets and liabilities. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 Inputs: Level 2 Inputs: . Level 3 Inputs: A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Cash equivalents, short term deposits, short term restricted deposit, trade receivable, trade payable, employee and payroll accruals and accrued expenses are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. i. Concentration of credit Risk: Financial instruments that potentially subject the Company to credit risk primarily consist of cash and cash equivalents, short-term deposits, restricted deposits, marketable securities and trade receivables. 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 and short-term deposits with financial institutions with high-quality credit ratings and has not experienced any losses in such accounts. The Company's marketable securities consist of investments in U.S. Treasuries and U.S. Government Agencies denominated in dollar. For trade receivable, the Company is exposed to credit risk in the event of non-payment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. As of December 31, 2023 and 2022 and for the years ended on these dates, there were no customers represented greater amount than 10% of total revenue. j. Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks for the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company’s derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the contract. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss resulting from this type of credit risk is monitored on an ongoing basis. The Company does not use derivative instruments for trading or speculative purposes. The Company accounts for its derivative instruments based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”). ASC No. 815 requires the Company to recognize all derivatives on the balance sheets at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, are recorded as either prepaid expenses and other assets or accrued expenses and other liabilities in the consolidated balance sheets. The Company records changes in the fair value of these derivatives in accumulated other comprehensive income (loss) in the consolidated balance sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gain or loss on the derivative to the same financial statement line item in the consolidated statements of operations to which the derivative relates. As of December 31, 2023 and 2022, the gross notional amount of the Company’s outstanding foreign currency contracts designated as hedging instruments was $26,794 and $50,298 respectively. During the years ended December 31, 2023, 2022 and 2021, gains (losses) related to designated hedging instruments were reclassified from accumulated other comprehensive loss when the related expenses were incurred. These gains (losses) were recorded in the consolidated statements of comprehensive loss, as follows: Year ended December 31, 2023 2022 2021 Cost of revenues $ (429 ) $ (365 ) $ 72 Research and development (2,563 ) (1,709 ) 331 Sales and marketing (741 ) (614 ) 129 General and administrative (1,264 ) (783 ) 137 Total $ (4,997 ) $ (3,471 ) $ 669 k. Trade receivables: Trade receivables includes billed and unbilled receivables. Trade receivables are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and provides for expected losses. The Company makes estimates of expected credit losses based upon its assessment of various factors including review of credit profiles of customers, contractual terms and conditions, current economic trends, the age of the outstanding invoice and historical payment experience. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance for credit losses was not material as of December 31, 2023. Unbilled trade receivables represent an unconditional right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. As of December 31, 2023 and 2022, unbilled trade receivables of $4,515 and $4,084, respectively, were included in trade receivables on the Company’s consolidated balance sheets. l. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Software, computers and peripheral equipment 33 Office furniture and equipment 10-33 Capitalized software development costs 33 Leasehold improvement By the shorter of remaining lease term or estimated useful life of the asset m. Long-lived assets: The long-lived assets of the Company, including finite-live intangible assets, are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2023 and 2022 the Company recorded an impairment of $300 and $2,246, respectively, related to certain right-of use and intangible assets n. Leases: In accordance with ASU No. 2016-02, "Leases (Topic 842)", the Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the lease period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use ("ROU") asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses its Incremental Borrowing Rate ("IBR") based on the information available at commencement date in determining the present value of lease payments. The Company's IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under the Company's lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by CPI and utility charges. o. Business combinations: The Company accounts for business combinations in accordance with ASC 805, "Business Combinations" (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. Acquisition related costs are expensed to the statement of operations in the period incurred. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related direct costs are capitalized as part of the assets or assets acquired. p. Goodwill and intangible assets: Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. As of December 31, 2023 and 2022, the Company’s Goodwill balance was $1,481. Goodwill is not amortized, but rather the carrying amounts of these assets are assessed for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill impairment, if any, is determined by comparing the reporting unit fair value to its carrying value. An impairment loss is recognized in an amount equal to the excess of the reporting unit’s carrying value over its fair value, up to the amount of goodwill allocated to the reporting unit. The Company operates as one reporting unit. There was no goodwill impairment for the years ended December 31, 2023, 2022 and 2021. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. q. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that 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. All of the Company's liability for severance pay is covered by the provisions of Section 14 of the Israeli Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued 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. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's consolidated balance sheets. Severance expense for the years ended December 31, 2023, 2022 and 2021 amounted to $3,250, $3,967 and $3,490 respectively. r . U.S. defined contribution plan: The U.S. subsidiary has a 401(k) defined contribution plan covering certain employees in the U.S. effective January 1, 2022. The Company matches 100% of employee contributions to the plan up to a limit of 5% of their eligible compensation capped at $5 per employee per year. For the year ended December 31, 2023 and 2022 the U.S. subsidiary recorded expenses for matching contributions of $2,087 and $2,211, respectively. s . Self-Insurance: Effective January 1, 2023 the U.S. subsidiary utilizes a combination of insurance and self-insurance for employee related health care benefits (a portion of which is paid by its employees). Standard actuarial procedures and data analysis are used to estimate the liability associated with these risks on an undiscounted basis. The liability reflects the ultimate cost for claims incurred but not reported and are recorded under employee and payroll accruals. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations. To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage on an aggregate and individual basis. t. Contingencies: The Company accounts for its contingent liabilities in accordance with ASC 450, Contingencies ("ASC 450"). A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. u. Revenue recognition: The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with a customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of revenue when, or as, the performance obligations are satisfied. The Company revenues are comprised from Software-as-a-Service (“SaaS”) subscriptions and professional services which are distinct and accounted for as separate performance obligations. The Company solution, which allows the customer to access its hosted platform over the contract period without taking possession of the platform, provided on a subscription basis, and recognized ratably over the contract period. Professional services revenues are recognized as services are performed or over time. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the company expects to receive in exchange for those services. Subscription services and professional services arrangements are generally non-cancelable and do not allow refunds to customers. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer, excluding taxes assessed by a governmental authority, that are collected by the Company from a customer. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling price (“SSP”). The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP considering available information such as market segment, number of users, geographic factors, and internally approved pricing guidelines related to the performance obligation. The Company typically establish SSP for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. v. Cost to obtain a contract: The Company capitalizes certain sales commissions and associated payroll taxes paid to its sales force that are incremental to the acquisition of customer contracts and recoverable. Costs capitalized related to new revenue contracts, which are not commensurate with sales commissions paid for renewal contracts, are amortized on a straight-line basis over four years and costs for renewals are amortized over the weighted average renewal contract term. The Company has applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. There were no impairments of costs to obtain revenue contracts during the years ended December 31, 2023, 2022 and 2021. The following table represents a rollforward of deferred contract acquisition costs: Year ended December 31, 2023 2022 2021 Beginning balance $ 66,397 $ 56,374 $ 29,729 Additions to deferred contract acquisition costs 19,477 33,711 41,396 Amortization of deferred contract acquisition costs (28,814 ) (23,688 ) (14,751 ) Ending balance $ 57,060 $ 66,397 $ 56,374 Deferred contract acquisition costs (to be recognized in next 12 months) $ 26,793 $ 26,287 $ 20,405 Deferred contract acquisition costs, non-current $ 30,267 $ 40,110 $ 35,969 w. Deferred revenues and remaining performance obligations: Deferred revenue primarily consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. The Company recognized revenue of $106,267 and $82,080 for the years ended December 31, 2023 and 2022, respectively, that were included in the corresponding contract liability balance at the beginning of the period. Deferred revenue that is anticipated to be recognized during the succeeding 12-months period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. For disaggregation of revenue please refer to note 12. As of December 31, 2023, the total remaining non-cancellable performance obligations under the Company’s contracts with customers was $384,444 which includes certain amounts subject to customary termination rights under the Federal Acquisition Regulations (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS). The Company expects to recognize revenue of $214,956, or 56%, over the next 12 months, with the remainder to be recognized thereafter. x. Software development costs: The Company capitalizes qualifying internal use software development costs related to its cloud platform. The costs consist of personnel costs (including related benefits and share-based compensation) that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed, and (2) 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 costs are included in property and equipment, net. These costs are amortized over the estimated useful life of the software, which is three years, on a straight-line basis, which represents the manner in which the expected benefit will be derived. The amortization of costs related to the platform applications is included in cost of revenue in the consolidated statements 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. For the years ended December 31, 2023, 2022 and 2021 the Company capitalized a total amount of $4,071, $4,955 and $3,912 respectively. y. Research and development: Research and development costs include personnel-related costs associated with the Company’s engineering, data science, product and design teams as well as consulting and professional fees, for third-party development resources, third-party licenses for software development tools and allocated overhead costs. Research and development are generally expensed as incurred except for certain internal-use software development costs, which may be capitalized as noted above. z. Advertising expenses: Advertising cost are expensed as incurred. Advertising expenses amounted to $11,987, $15,168 and $18,658 for the years ended December 31, 2023, 2022 and 2021, respectively. aa. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number of shares of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per share of ordinary shares was the same for each period presented as the inclusion of all potential ordinary shares outstanding was anti-dilutive. bb. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation – Stock Compensation" ("ASC 718"), including share options, restricted share units (RSUs), performance share units (PSUs) granted to employees, directors, and non-employees, and share purchase rights granted under the Employee Share Purchase Plan (“ESPP”) to employees, based on the estimated fair value of the awards on the date of grant. The fair value of each share option granted is estimated using the Black-Scholes option-pricing model and for ESPP awards or PSUs subject to market condition, the Company uses a Monte Carlo simulation model which utilizes multiple inputs to estimate payout level and the probability that market conditions will be achieved. The determination of the grant-date fair value using an option-pricing model is affected by the fair value of the Company’s ordinary share as well as a number of inputs, of which the most significant are the exercise price, volatility and the expected option term. The fair value of each RSU, or PSU without market condition, is based on the fair value of the Company’s ordinary shares on the date of grant. Share-based compensation is generally recognized on a straight-line basis over the requisite service period and based on the graded method for performance-based awards. Some of the awards granted are subject to certain performance criteria: accordingly compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. Forfeitures are accounted for in the period in which they occur. cc. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"). This standard prescribes the use of the liability method, whereby deferred tax asset and liability accounts balances are determined based on differences between financial reporting and tax basis of 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 their estimated realizable value, and if it is more likely than not that some portion of the entire deferred tax asset will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740-10, "Income Taxes". Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should |
REDEEMABLE NON-CONTROLLING INTE
REDEEMABLE NON-CONTROLLING INTEREST | 12 Months Ended |
Dec. 31, 2023 | |
Redeemable Noncontrolling Interest, Equity, Redemption Value [Abstract] | |
REDEEMABLE NON-CONTROLLING INTEREST | NOTE 3: REDEEMABLE NON-CONTROLLING INTEREST In January 2019, the Company entered into an agreement with Japan Cloud Computing, L.P. and M30 LLC (collectively, the “Investors”), which was amended on July 26, 2022, to engage in the investment, organization, management, and operation of the Japanese subsidiary that is focused on the distribution of the Company’s products in Japan. As of December 31, 2023, the Company contributed an aggregate amount of approximately $4,750 in cash in exchange for 51% of the outstanding common stock of the Japanese subsidiary. As of December 31, 2023 and 2022, the Company controls a majority stake in the Japanese subsidiary and as a result, the Company consolidated the Japanese subsidiary and all intercompany accounts have been eliminated. The agreement with the minority investors of the Japanese subsidiary contains redemption features whereby the interest held by the minority investors are redeemable either (i) at the option of the minority investors or (ii) at the option of the Company, both beginning on the eighth anniversary of the initial capital contribution. Should the call or put option be exercised, the redemption value would be determined based on a prescribed formula derived from certain financial performance indicators of the Japanese subsidiary and the Company and may be settled, at the Company’s discretion, with Company shares or cash. The balance of the redeemable non-controlling interest is reported at the greater of the initial carrying amount adjusted for the redeemable non-controlling interest’s share of earnings or losses and other comprehensive income or loss, or its estimated redemption value. The resulting changes in the estimated redemption amount (increases or decreases) are recorded with corresponding adjustments against retained earnings or, in the absence of retained earnings, additional paid-in-capital. Since the share redemption feature does not include a share cap these interests are presented on the consolidated balance sheets outside of permanent equity under the caption “Redeemable non-controlling interest”. The following table summarizes the activity in the redeemable non-controlling interests for the period indicated below: Year ended December 31, 2023 2022 2021 Balance, beginning of period $ 8,080 $ 23,901 $ 8,647 Net loss attributable to redeemable non-controlling interest (266 ) (743 ) (1,169 ) Adjustment to redeemable non-controlling interest 2,649 (14,979 ) 16,689 Foreign currency translation (34 ) (99 ) (266 ) Balance, end of period $ 10,429 $ 8,080 $ 23,901 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4: MARKETABLE SECURITIES The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2023 and 2022. December 31, 2023 Amortized cost Gross unrealized losses Gross unrealized gains Fair Value U.S. Treasuries $ 84,811 $ (124 ) $ 81 $ 84,768 U.S. Government Agencies 31,750 (22 ) 76 31,804 Total $ 116,561 $ (146 ) $ 157 $ 116,572 Out of the total unrealized losses, an amount of $64 has been in a continuous unrealized loss position for twelve months or longer. December 31, 2022 Amortized cost Gross unrealized losses Gross unrealized gains Fair Value U.S. Treasuries $ 68,084 $ (64 ) $ 86 $ 68,106 U.S. Government Agencies 17,426 (30 ) 19 17,415 Total $ 85,510 $ (94 ) $ 105 $ 85,521 The following tables summarizes the amortized cost and fair value of available-for-sale marketable securities as of December 31, 2023 and 2022 by contractual years-to maturity: December 31, 2023 Amortized cost Fair Value Due within one year $ 60,310 $ 60,290 Due between one and three years 56,251 56,282 Total $ 116,561 $ 116,572 December 31, 2022 Amortized cost Fair Value Due within one year $ 42,214 $ 42,187 Due between one and three years 43,296 43,334 Total $ 85,510 $ 85,521 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5: PROPERTY AND EQUIPMENT, NET December 31, 2023 2022 Cost: Software, computers and peripheral equipment $ 8,220 $ 8,378 Office furniture and equipment 687 887 Capitalized software development costs 22,821 18,750 Leasehold improvements 4,027 3,999 35,755 32,014 Accumulated depreciation 23,696 18,746 Depreciated cost $ 12,059 $ 13,268 Depreciation expenses amounted to $5,721, $5,165 and $4,478 for the years ended December 31, 2023, 2022 and 2021 respectively. For the years ended December 31, 2023 and 2022, the Company recorded a reduction of $776 and $576 respectively, to the cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use, following an assessment made by the Company. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 6: INTANGIBLE ASSETS, NET Acquisition of developed technologies: On April 15, 2021, the Company acquired the technology of Snow-White Labs Ltd. (“Zest”) for a total consideration of $808 consisted from the issuance of 33,150 Company’s ordinary shares with fair value of $776 and the remaining amount was allocated to direct acquisition costs. On October 4, 2021, the Company acquired the technology of Simpo Ltd. (“Simpo”) for a total consideration of $1,306 in cash. Both acquisitions were accounted as an asset acquisition in accordance with ASC 805 as substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset. The purchase price was allocated to the developed technology acquired with an estimated useful life of three years. December 31, 2023 2022 Acquired technology $ 3,004 $ 3,004 Accumulated amortization and Impairment 2,924 2,655 Depreciated cost $ 80 $ 349 As of December 31, 2023, the weighted-average remaining useful life of the technology was 0.3 years. The Company recorded $269, $487 and $299 of amortization expense during the years ended December 31, 2023, 2022 and 2021, respectively. During the year ended December 31, 2022 the Company recorded an impairment in the amount of $979 related to abandoned technology. As of December 31, 2023, future amortization expense related to acquired technology is $80 to be fully amortized in the year 2024. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 7: COMMITMENTS AND CONTINGENT LIABILITIES a. Legal contingencies: From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when the loss is probable and it can reasonably estimate the amount of any such loss. In 2022, a former employee filed a putative class action in the Superior Court for the City and County of San Francisco, based on claims that she was misclassified as an exempt employee and that the Company failed to properly reimburse for business expenses, failed to pay the proper rate of pay for paid sick leave, and other claims related to the payment of commissions and derivative of the misclassification claim and subsequently added related claims under California’s Private Attorneys General Act (the “California Lawsuit”). The California Lawsuit seeks monetary and non-monetary damages, including punitive damages, penalties, interest, and attorneys’ fees on behalf of plaintiff and others similarly situated. In 2023, the Company received an attorney demand letter, threatening similar claims on behalf of an unidentified New York-based “inside salesperson” and other similarly-situated employees (the “New York Claim”). The Company denies the allegations in the California Lawsuit and the New York Claim and believes them to be without merit. However, solely in order to avoid the costs and inconvenience of litigation as well as the uncertainty inherent in any complex litigation, the Company has reached agreements in principle to resolve the two matters for a total of $2,950 subject to court approval. The Company accrued a sufficient amount for the estimated settlement and related costs in its general and administrative expenses for the year ended December 31, 2023. b. Non-cancellable material commitments: In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for hosting `services, as well as software products and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows: December 31, 2023 Years ending December 31, 2024 $ 13,963 2025 14,506 2026 12,848 2027 9,161 2028 2,318 Total $ 52,796 c. Pledges and bank guarantees: As of December 31, 2023, The Company and its subsidiaries holds pledged bank deposits of $170 and obtained bank guarantees of $1,559, in connection with office lease agreements. d. Revolving Credit Facility: In August 2021, the Company entered into a loan and security agreement with Silicon Valley Bank (SVB) which provides for the Revolving Credit Facility. The Company may borrow, repay and re-borrow funds under the Revolving Credit Facility up to the amount of $50,000 for a period of three years. Interest on borrowings under the revolving credit facility accrues as the greater of the Prime Rate or 3.25%. Pursuant to the terms of the Revolving Credit Facility, the Company are also required to pay an yearly fixed fee of $20 for the availability of this facility. Upon utilization of this credit facility certain covenants may apply according to the Revolving Credit Facility agreement. The Revolving Credit Facility is secured by a fixed and floating first priority blanket lien on all assets of the company as well as a negative pledge on our intellectual property. As of December 31, 2023 this facility remained unutilized and will expire in August 2024. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | NOTE 8: LEASES The Company entered into non-cancelable operating lease agreements with various expiration dates through the year 2026. Certain lease agreements include options to renew or terminate the lease. The Company does not assume renewals in its determination of the lease term unless the renewals are considered as reasonably assured at lease commencement. The components of operating lease costs were as follows: Year ended December 31, 2023 2022 Operating lease cost $ 5,660 $ 6,227 Short-term lease cost 826 787 Variable lease cost 28 35 Total lease cost $ 6,514 $ 7,049 Supplemental balance sheet information related to operating leases is as follows: December 31, 2023 2022 Weighted average remaining lease term (in years) 4.6 1.8 Weighted average discount rate 4.4 % 1 % Supplemental cash flow information related to operating leases was as follows: Year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease operating liabilities $ 6,467 $ 5,399 Maturities of operating lease liabilities as of December 31, 2023 are as follows: As of December 31, 2023 2024 $ 5,065 2025 2,111 2026 1,734 2027 1,715 2028 1,749 Thereafter 2,010 Total undiscounted lease payments 14,384 Less: imputed interest (1,558 ) Present value of lease liabilities $ 12,826 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 9: FAIR VALUE MEASUREMENTS The following tables present the fair value of money market funds and marketable securities for the year ended December 31, 2023 and 2022: December 31, 2023 December 31, 2022 Level 1 Level 2 Level 1 Level 2 Financial Assets: Cash equivalents: Money market funds $ 133,211 $ - $ 290 $ - U.S. Treasuries - 1,997 - - Foreign currency derivative contracts - 825 - - Marketable securities: U.S. Treasuries - 84,768 - 68,106 U.S. Government Agencies - 31,804 - 17,415 Total assets measured at fair value $ 133,211 $ 119,394 $ 290 $ 85,521 Financial Liabilities Foreign currency derivative contracts - (72 ) - (1,577 ) Total liabilities measured at fair value $ - $ (72 ) $ - $ (1,577 ) |
CONVERTIBLE PREFERRED SHARES, S
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN | 12 Months Ended |
Dec. 31, 2023 | |
Convertible Preferred Shares, Shareholders' Deficit And Equity Incentive Plan [Abstract] | |
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS’ EQUITY AND EQUITY INCENTIVE PLAN | NOTE 10: CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS’ EQUITY AND EQUITY INCENTIVE PLAN a. Composition of share capital December 31, 2023 December 31, 2022 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares no par value Ordinary shares 900,000,000 90,864,662 900,000,000 86,780,082 b. Ordinary shares: Ordinary shares shall confer on their shareholders all rights in the Company, including the right to vote on any matter at any general meeting, with each ordinary share having voting power of one vote for one ordinary share, the right to receive notice of any General Meeting, the right to receive dividends and to participate in any distribution of surplus assets and funds in the Company. On March 4, 2021, the Company's shareholders approved the change of share capital from NIS 0.01 par value to no par-value. All references to ordinary and convertible preferred shares amounts and per share amounts have been retroactively restated to reflect the change in par value as if it had taken place as of the beginning of the earliest period presented. In connection with the IPO, the Company’s amended and restated articles of association became effective, which authorized the issuance of 900,000,000 ordinary shares, no par value each. c. Convertible preferred shares: In November 2019, the Company entered into a share purchase agreement with certain investors for a total consideration of $45,000. In addition to the initial consideration, the share purchase agreement granted the Company the right to execute additional funding requests up to a total amount of $45,000 for a period of 24 months. As of December 31, 2020 the Company executed additional funding in the aggregate amount of $35,000 out of the available $45,000. On March 25, 2021 the Company executed an additional funding request in the total amount of $10,000, for which 455,942 preferred F shares of no par value each were issued. Upon completion of the IPO, all convertible preferred shares outstanding, totaling 59,180,522 shares, were automatically converted into an equivalent number of ordinary shares on a one-to-one basis and their carrying value of $310,490 was reclassified into shareholders’ equity. d. Share option plan: The Company’s equity incentive plans provide for granting share options, RSUs, PSUs and restricted share awards to employees, consultants, officers and directors. Each option granted under the Plan expires no later than 10 years from the date of grant. Options and RSUs vest usually over four years of commencement of employment or services. Any option or RSU which are forfeited or not exercised before expiration, become available for future grants. As of December 31, 2023 an aggregate of 8,992,791 ordinary shares of the Company are still available for future grants. Share options A summary of the Company's share option activity under the Plan is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2022 12,412,197 $ 8.96 6.93 $ 49,209 Granted 596,782 $ 9.11 Forfeited (802,728 ) $ 18.28 Exercised (982,717 ) $ 1.9 $ 7,662 Balance as of December 31, 2023 11,223,534 $ 8.92 6.17 $ 37,473 Exercisable options at end of year 8,140,268 $ 7.47 5.54 $ 35,597 As of December 31, 2023, there was approximately $19,688 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the Company's share option plan. That cost is expected to be recognized over a weighted-average period of 2.17 years. The weighted-average grant date fair value of options granted during the years ended December 31, 2023, 2022 and 2021 was $4.23, $7.32 and $13.31, respectively. The intrinsic value of the options exercised during the years ended December 31, 2023, 2022 and 2021 was $7,662, $12,217 and $25,937, respectively. As of December 31, 2023 and 2022, there were no outstanding options granted to non-employees. Under the provisions of ASC 718, the fair value of each option was estimated on the date of grant using the Black & Scholes option valuation model, using the assumptions noted in the following table: Year ended December 31, 2023 2022 2021 Expected volatility 60%-76% 60% 60% Expected dividend yield - - - Expected term (in years) 1.44-6.08 5.5-6.98 5-6.55 Risk free interest 3.46%-4.93% 1.98%-3.88% 0.49%-1.06% Risk-free interest rates are based on the yield from U.S. Treasury zero-coupon bonds with a term equivalent to the expected term of the options. The expected volatility of the price of such shares is based on an analysis of reported data for a peer group of comparable publicly traded companies which were selected based upon industry similarities. The expected term of options granted represents the period of time that options granted are expected to be outstanding, and is determined based on the simplified method in accordance with ASC No. 718-10-S99-1 (SAB No. 110), as adequate historical experience is not available to provide a reasonable estimate. The dividend yield is based on the Company's historical and future expectation of dividends payouts. Historically, the Company has not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. Restricted and performance Share Units Number of RSUs Weighted- Average Grant Date Fair Value Per Share Balance as of December 31, 2022 6,559,826 $ 16.23 Granted 4,814,253 $ 9.44 Forfeited (2,021,312 ) $ 15.91 Released (2,510,169 ) $ 15.22 Balance as of December 31, 2023 6,842,598 $ 11.89 The total grant-date fair value of released RSUs and PSUs during the years ended December 31, 2023, 2022 and 2021 was $38,309, $19,004 and $49, respectively. As of December 31, 2023, there was approximately $70,706 of unrecognized share-based compensation expense related to unvested RSUs, which is being recognized over a weighted-average period of 2.47 years based on vesting under the award service conditions. e. Employee Share Purchase Plan In June 2021, the Company adopted the ESPP. Generally, all of the Company’s employees are eligible to participate if they are employed by the Company. The Company’s ESPP permits participants to purchase the Company’s ordinary shares through contributions in the form of payroll deductions or otherwise to the extent permitted by the Company, of up to 15% of their eligible compensation (as defined in the ESPP). Amounts contributed and accumulated by the participant will be used to purchase the Company’s ordinary shares at the end of each offering period. The purchase price of the shares will be 85% of the lower of the fair market value of the Company’s ordinary shares on the first trading day of the offering period or on the exercise date. As of December 31, 2023 and 2022, a total of 2,627,628 and 2,161,770 ordinary shares of the Company, respectively, are reserved for issuance under the ESPP. The Company estimated the fair value of ESPP purchase rights using a Monte-Carlo option pricing model with the following assumptions: Year ended December 31, 2023 2022 2021 Expected volatility 49%-63.8% 77%-91.9% 41% Expected dividend yield - - - Expected term (in years) 0.5 0.5 0.57 Risk free interest 4.92%-5.47% 0.46%-2.85% 0.06% As of December 31, 2023, there was $232 of unrecognized share-based compensation expense related to the ESPP that is expected to be recognized over an average vesting period of 0.2 years. f. Share-based compensation expense by award type was as follows: Year ended December 31 2023 2022 2021 Options $ 18,392 $ 20,167 $ 21,359 RSUs 35,262 27,001 4,842 ESPP 1,803 2,936 1,131 $ 55,457 $ 50,104 $ 27,332 The share-based compensation expense by line item in the accompanying consolidated statements of operations is summarized as follows: Year ended December 31 2023 2022 2021 Cost of revenues $ 2,590 $ 3,896 $ 1,804 Research and development 11,041 7,285 3,863 Sales and marketing 17,671 19,126 8,205 General and administrative 24,155 19,797 13,460 $ 55,457 $ 50,104 $ 27,332 |
TAXES ON INCOME
TAXES ON INCOME | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
TAXES ON INCOME | NOTE 11: TAXES ON INCOME a. Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. The Company applies various benefits allotted to it under the revised Investment Law as per Amendment 73, which includes a number of changes to the Investment Law regimes through regulations that have come into effect from January 1, 2017. Applicable benefits under the new regime include: • Introduction of a benefit regime for “Preferred Technology Enterprises” (“PTE”), granting a 12% tax rate in central Israel on income deriving from Benefited Intangible Assets, subject to a number of conditions being fulfilled, including , as well as having at least 25% of annual income derived from exports to large markets. PTE is defined as an enterprise which meets the aforementioned conditions and for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. • A 12% capital gains tax rate on the sale of a preferred intangible asset to a foreign affiliated enterprise, provided that the asset was initially purchased from a foreign resident at an amount of NIS 200 million or more. • A withholding tax rate of 20% for dividends paid from PTE income (with an exemption from such withholding tax applying to dividends paid to an Israeli company) may be reduced to 4% on dividends paid to a foreign resident company, subject to certain conditions regarding percentage of foreign ownership of the distributing entity. The company has not exhausted the benefits it may qualify for as a PTE and continue to examine the degree to which it might qualify as a PTE The Company’s subsidiaries are separately taxed under the local tax laws of the jurisdiction of incorporation of each entity. b. Income (Loss) before income taxes is comprised as follows: Year ended December 31 2023 2022 2021 Israel $ (59,200 ) $ (102,013 ) $ (68,924 ) Foreign 7,514 (2,506 ) (8,875 ) $ (51,686 ) $ (104,519 ) $ (77,799 ) c. Income taxes are comprised as follows: Year ended December 31 2023 2022 2021 Current: Israel $ 69 $ (93 ) $ 103 Foreign 6,769 1,389 697 Total current taxes 6,838 1,296 800 Deferred: Israel - - - Foreign (1,771 ) 2,535 1,694 Total deferred taxes (1,771 ) 2,535 1,694 Total income taxes $ 5,067 $ 3,831 $ 2,494 d. A reconciliation of the Company's theoretical income tax benefit to actual income tax expense is as follows: Year ended December 31 2023 2022 2021 Loss before income taxes $ 51,686 $ 104,519 $ 77,799 Statutory tax rate 23 % 23 % 23 % Theoretical income tax benefit $ (11,888 ) $ (24,039 ) $ (17,894 ) Preferred technology enterprise 6,512 11,221 7,582 Foreign rate differential 16 (300 ) (597 ) Unrecognized tax benefits 373 1,348 3,159 Changes in valuation allowance 4,329 11,421 7,498 Share-based compensation 5,589 3,745 2,519 Non-deductible expenses 69 513 234 Other 67 (78 ) (7 ) Actual tax expense $ 5,067 $ 3,831 $ 2,494 e. The following table presents the significant components of the Company's deferred taxes: December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 48,348 $ 43,437 Research and development expenses 4,878 5,398 Accruals and reserves 2,574 2,088 Issuance costs - 914 Share-based compensation 4,396 4,318 Operating lease liability 1,968 2,115 Other deferred assets 1,083 805 Gross deferred tax assets 63,247 59,075 Valuation allowance (55,758 ) (51,164 ) Total deferred tax assets 7,489 7,911 Deferred tax liabilities: Deferred contract costs (10,989 ) (13,313 ) Operating lease ROU asset (1,760 ) (1,667 ) Other deferred tax liabilities (299 ) (261 ) Gross deferred tax liabilities (13,048 ) (15,241 ) Net deferred taxes $ (5,559 ) $ (7,330 ) A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset certain deferred tax assets at December 31, 2023 and 2022 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. f. Net operating losses carry forward: As of December 31, 2023, the Company had approximately $364,062 in net operating loss carryforwards in Israel that can be carried forward indefinitely. As of December 31, 2023, the U.S. subsidiary had $55,906 of state net operating loss carryforwards available to offset future taxable income. If not utilized, the state net operating loss carryforwards will expire in varying amounts mostly between the years ended 2032 and 2042. g. Tax assessments The Company has net operating losses from prior tax periods which may be subjected to examination in future periods. As of December 31, 2023, the Company’s tax years until December 31, 2018 are subject to statute of limitation in Israel. As of that date, the U.S. subsidiary’s tax years until December 31, 2019 are subject to statute of limitation in the U.S. h. Unrecognized tax benefits Consistent with the provisions of ASC 740, Income Taxes, the Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being realized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The following table shows the changes in the gross amount of unrecognized tax benefits as of December 31, 2023, 2022 and 2021: Unrecognized Tax Benefits Balance - December 31, 2020 1,709 Increases related to prior years’ tax positions 175 Increases related to current years’ tax positions 2,984 Balance - December 31, 2021 4,868 Decrease related to prior years’ tax positions (287 ) Increases related to current years’ tax positions 1,635 Balance - December 31, 2022 6,216 Increase related to prior years’ tax positions 10 Increases related to current years’ tax positions 317 Balance - December 31, 2023 $ 6,543 As of December 31, 2023, the total amount of gross unrecognized tax benefits that would favorably impact the Company’s effective tax rate, if recognized, was $6,185. The remaining amount of $358 would be offset by the reversal of related deferred tax assets which are subject to a full valuation allowance. The Company recognizes interest and penalties related to unrecognized tax benefits as income tax expense. As of December 31, 2023, the Company has accumulated $445 in both interest and penalties related to uncertain tax positions. Although the Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement, there is no assurance that the final tax outcome of its tax audits will not be different from that which is reflected in the Company’s income tax provisions. |
REPORTING SEGMENTS AND GEOGRAPH
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION | NOTE 12: REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION a. Operating segments The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is available and evaluated regularly by the chief operating decision maker, which is the Company’s chief executive officer, in deciding how to make operating decisions, allocate resources and assess performance. The Company’s chief operating decision maker allocates resources and assesses performance at the consolidated level. b. Geographical information The following table summarizes revenue by region based on the shipping address of customers: Year ended December 31, 2023 2022 2021 United States $ 186,937 $ 172,733 $ 135,291 Rest of world 79,518 71,510 56,914 Israel 499 763 1,098 $ 266,954 $ 245,006 $ 193,303 Other than the United States, no other individual country accounted for 10% or more of total revenue for the years ended December 31, 2023, 2022 and 2021. The following table summarizes long-lived assets, net by region: Year ended December 31, 2023 2022 Israel $ 20,221 $ 11,537 United States 2,642 6,800 Rest of world 1,201 1,934 Total long-lived assets, net $ 24,064 $ 20,271 |
NET LOSS PER SHARE ATTRIBUTABLE
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS | NOTE 13: NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS The following table sets forth the computation of basic and diluted net loss per share attributable to ordinary shareholders for the periods presented: Year ended December 31, 2023 2022 2021 Numerator: Net loss $ (56,753 ) $ (108,350 ) $ (80,293 ) Net loss attributable to non-controlling interest (266 ) (743 ) (1,169 ) Adjustment attributable to non-controlling interest 2,649 (14,979 ) 16,689 Net loss attributable to WalkMe Ltd. $ (59,136 ) $ (92,628 ) $ (95,813 ) Denominator: Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 88,912,397 85,116,424 51,763,032 Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.67 ) $ (1.09 ) $ (1.85 ) The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows: Year ended December 31, 2023 2022 2021 Convertible preferred shares - - 26,972,186 RSU’s 7,141,801 5,759,365 732,157 Outstanding share options and share purchase rights under ESPP 11,991,061 13,676,853 14,143,816 Total 19,132,862 19,436,218 41,848,159 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of consolidation | a. Principles of consolidation: The consolidated financial statements include accounts of the Company’s wholly-owned subsidiaries as well as the Japanese subsidiary in which the Company controls a majority stake. All intercompany accounts and transactions are eliminated. |
Use of estimates | b. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to income taxes, share-based compensation, deferred contract acquisition costs, capitalized software development costs, as well as in estimates used in applying the revenue recognition policy. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. |
Foreign currency | c . Foreign currency: Most of the Company’s revenues and costs are denominated in U.S. dollar. The Company’s management believes that the dollar is the primary currency of the economic environment in which the Company operate, thus, the functional and reporting currency of the Company is the U.S. dollar, with the exception of its Japanese subsidiary, for which the Japanese Yen is the functional currency. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statements of operations as financial income or expenses, as appropriate. The financial statements of the Japanese subsidiary are translated to U.S. dollars using the balance sheet date exchange rates for assets and liabilities, historical rates of exchange for equity, and average exchange rates in the period for revenues and expenses. The effects of foreign currency translation adjustments are included in shareholders’ equity as a component of accumulated other comprehensive income (loss) in the accompanying consolidated balance sheets. |
Cash and cash equivalents | d. Cash and cash equivalents: Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. As of December 31, 2023 and 2022, the Company’s cash and cash equivalents consisted of $164,466 and $46,105 of cash held in the Company’s checking accounts and money market funds and $12,757 and $48,000 bank deposits with original maturities of three months or less, respectively. |
Short-term bank deposits | e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of more than three months and less than one year. As of December 31, 2023 and 2022, the Company’s bank deposits are denominated in U.S. dollars and bears yearly interest at weighted average rates of 5.71% and 4.84%. Short-term bank deposits are presented at their cost, including accrued interest. |
Restricted deposits | f. Restricted deposits: These deposits are used as security for rental of premises and classified according to the lease agreements’ term. |
Investments in marketable securities | g. Investments in marketable securities: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments - Debt Securities”. Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale (“AFS”) as the Company may sell these securities at any time for use in its current operations or for other purposes, even prior to maturity. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) in shareholders' equity. Starting January 1, 2023 the Company adopted ASU 2016-13, Topic 326 "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments" which modified the other than temporary impairment model for available for sale debt securities. Available-for-sale securities are periodically evaluated for unrealized losses. For unrealized losses in securities that the Company intends to hold and will not more likely than not be required to sell before recovery, the Company further evaluates whether declines in fair value below amortized cost are due to credit or non-credit related factors. The Company considers credit related impairments to be changes in value that are driven by a change in the creditor's ability to meet its payment obligations and records an allowance and recognizes a corresponding loss in financial income (expense), net when the impairment is incurred. Unrealized non-credit related losses and unrealized gains are reported as a separate component of accumulated other comprehensive income (loss) in the consolidated balance sheets until realized. Realized gains and losses on sale of marketable securities are included in financial income (expense), net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income (expense), net. During the year ended December 31, 2023, no credit loss impairments have been identified. For the year ended December 31, 2022 the Company's securities were reviewed for impairment in accordance with ASC No. 320-10-35. According to this standard, if such assets were considered to be impaired, the impairment charge was recognized in earnings when a decline in the fair value of its investments below the cost basis was judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the year ended December 31, 2022 was not OTTI. |
Fair value of financial instruments | h. Fair value of financial instruments: The Company applies ASC No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), with respect to fair value measurements of all financial assets and liabilities. The accounting guidance for fair value provides a framework for measuring fair value, clarifies the definition of fair value, and expands disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (an exit price) in an orderly transaction between market participants at the reporting date. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 Inputs: Level 2 Inputs: . Level 3 Inputs: A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Cash equivalents, short term deposits, short term restricted deposit, trade receivable, trade payable, employee and payroll accruals and accrued expenses are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. |
Concentration of credit Risk | i. Concentration of credit Risk: Financial instruments that potentially subject the Company to credit risk primarily consist of cash and cash equivalents, short-term deposits, restricted deposits, marketable securities and trade receivables. 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 and short-term deposits with financial institutions with high-quality credit ratings and has not experienced any losses in such accounts. The Company's marketable securities consist of investments in U.S. Treasuries and U.S. Government Agencies denominated in dollar. For trade receivable, the Company is exposed to credit risk in the event of non-payment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. As of December 31, 2023 and 2022 and for the years ended on these dates, there were no customers represented greater amount than 10% of total revenue. |
Investments in marketable securities: | j. Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks for the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company’s derivative instruments expose the Company to credit risk to the extent that the counterparties may be unable to meet the terms of the contract. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions. In addition, the potential risk of loss resulting from this type of credit risk is monitored on an ongoing basis. The Company does not use derivative instruments for trading or speculative purposes. The Company accounts for its derivative instruments based on ASC No. 815, “Derivatives and Hedging” (“ASC No. 815”). ASC No. 815 requires the Company to recognize all derivatives on the balance sheets at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows that are designated as cash flow hedges, are recorded as either prepaid expenses and other assets or accrued expenses and other liabilities in the consolidated balance sheets. The Company records changes in the fair value of these derivatives in accumulated other comprehensive income (loss) in the consolidated balance sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gain or loss on the derivative to the same financial statement line item in the consolidated statements of operations to which the derivative relates. As of December 31, 2023 and 2022, the gross notional amount of the Company’s outstanding foreign currency contracts designated as hedging instruments was $26,794 and $50,298 respectively. During the years ended December 31, 2023, 2022 and 2021, gains (losses) related to designated hedging instruments were reclassified from accumulated other comprehensive loss when the related expenses were incurred. These gains (losses) were recorded in the consolidated statements of comprehensive loss, as follows: Year ended December 31, 2023 2022 2021 Cost of revenues $ (429 ) $ (365 ) $ 72 Research and development (2,563 ) (1,709 ) 331 Sales and marketing (741 ) (614 ) 129 General and administrative (1,264 ) (783 ) 137 Total $ (4,997 ) $ (3,471 ) $ 669 |
Trade receivables | k. Trade receivables: Trade receivables includes billed and unbilled receivables. Trade receivables are recorded at invoiced amounts and do not bear interest. The Company generally does not require collateral and provides for expected losses. The Company makes estimates of expected credit losses based upon its assessment of various factors including review of credit profiles of customers, contractual terms and conditions, current economic trends, the age of the outstanding invoice and historical payment experience. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance for credit losses was not material as of December 31, 2023. Unbilled trade receivables represent an unconditional right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. As of December 31, 2023 and 2022, unbilled trade receivables of $4,515 and $4,084, respectively, were included in trade receivables on the Company’s consolidated balance sheets. |
Property and equipment | l. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets, at the following annual rates: % Software, computers and peripheral equipment 33 Office furniture and equipment 10-33 Capitalized software development costs 33 Leasehold improvement By the shorter of remaining lease term or estimated useful life of the asset |
Long-lived assets | m. Long-lived assets: The long-lived assets of the Company, including finite-live intangible assets, are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2023 and 2022 the Company recorded an impairment of $300 and $2,246, respectively, related to certain right-of use and intangible assets |
Leases | n. Leases: In accordance with ASU No. 2016-02, "Leases (Topic 842)", the Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of an identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the lease period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use ("ROU") asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses its Incremental Borrowing Rate ("IBR") based on the information available at commencement date in determining the present value of lease payments. The Company's IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under the Company's lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by CPI and utility charges. |
Business combinations | o. Business combinations: The Company accounts for business combinations in accordance with ASC 805, "Business Combinations" (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. Acquisition related costs are expensed to the statement of operations in the period incurred. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related direct costs are capitalized as part of the assets or assets acquired. |
Goodwill and intangible assets | p. Goodwill and intangible assets: Goodwill represents the excess of the purchase price in a business combination over the fair value of net assets acquired. As of December 31, 2023 and 2022, the Company’s Goodwill balance was $1,481. Goodwill is not amortized, but rather the carrying amounts of these assets are assessed for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that the carrying value of these assets may not be recoverable. Goodwill impairment, if any, is determined by comparing the reporting unit fair value to its carrying value. An impairment loss is recognized in an amount equal to the excess of the reporting unit’s carrying value over its fair value, up to the amount of goodwill allocated to the reporting unit. The Company operates as one reporting unit. There was no goodwill impairment for the years ended December 31, 2023, 2022 and 2021. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. |
Severance pay | q. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that 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. All of the Company's liability for severance pay is covered by the provisions of Section 14 of the Israeli Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued 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. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's consolidated balance sheets. Severance expense for the years ended December 31, 2023, 2022 and 2021 amounted to $3,250, $3,967 and $3,490 respectively. |
U.S. defined contribution plan | r . U.S. defined contribution plan: The U.S. subsidiary has a 401(k) defined contribution plan covering certain employees in the U.S. effective January 1, 2022. The Company matches 100% of employee contributions to the plan up to a limit of 5% of their eligible compensation capped at $5 per employee per year. For the year ended December 31, 2023 and 2022 the U.S. subsidiary recorded expenses for matching contributions of $2,087 and $2,211, respectively. |
Self-Insurance | s . Self-Insurance: Effective January 1, 2023 the U.S. subsidiary utilizes a combination of insurance and self-insurance for employee related health care benefits (a portion of which is paid by its employees). Standard actuarial procedures and data analysis are used to estimate the liability associated with these risks on an undiscounted basis. The liability reflects the ultimate cost for claims incurred but not reported and are recorded under employee and payroll accruals. On a regular basis, the liabilities are evaluated for appropriateness with claims reserve valuations. To limit exposure to some risks, the Company maintains insurance coverage with varying limits and retentions, including stop-loss insurance coverage on an aggregate and individual basis. |
Contingencies | t. Contingencies: The Company accounts for its contingent liabilities in accordance with ASC 450, Contingencies ("ASC 450"). A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter. |
Revenue recognition | u. Revenue recognition: The Company recognizes revenue in accordance with ASC Topic 606, Revenue from contracts with customers (“ASC 606”) and determines revenue recognition through the following steps: 1. Identification of the contract, or contracts, with a customer; 2. Identification of the performance obligations in the contract; 3. Determination of the transaction price; 4. Allocation of the transaction price to the performance obligations in the contract; and 5. Recognition of revenue when, or as, the performance obligations are satisfied. The Company revenues are comprised from Software-as-a-Service (“SaaS”) subscriptions and professional services which are distinct and accounted for as separate performance obligations. The Company solution, which allows the customer to access its hosted platform over the contract period without taking possession of the platform, provided on a subscription basis, and recognized ratably over the contract period. Professional services revenues are recognized as services are performed or over time. The Company recognizes revenue when its customer obtains control of promised services in an amount that reflects the consideration that the company expects to receive in exchange for those services. Subscription services and professional services arrangements are generally non-cancelable and do not allow refunds to customers. The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer, excluding taxes assessed by a governmental authority, that are collected by the Company from a customer. For arrangements with multiple performance obligations, which represent promises within an arrangement that are capable of being distinct, the Company allocates revenue to all distinct performance obligations based on their relative stand-alone selling price (“SSP”). The Company uses judgment in determining the SSP. If the SSP is not observable through standalone transactions, the Company estimates the SSP considering available information such as market segment, number of users, geographic factors, and internally approved pricing guidelines related to the performance obligation. The Company typically establish SSP for its products and services, which is reassessed on a periodic basis or when facts and circumstances change. The Company applied the practical expedient in Topic 606 and did not evaluate contracts of one year or less for the existence of a significant financing component. |
Cost to obtain a contract | v. Cost to obtain a contract: The Company capitalizes certain sales commissions and associated payroll taxes paid to its sales force that are incremental to the acquisition of customer contracts and recoverable. Costs capitalized related to new revenue contracts, which are not commensurate with sales commissions paid for renewal contracts, are amortized on a straight-line basis over four years and costs for renewals are amortized over the weighted average renewal contract term. The Company has applied the practical expedient to expense costs as incurred for costs to obtain a contract with a customer when the amortization period would have been one year or less. There were no impairments of costs to obtain revenue contracts during the years ended December 31, 2023, 2022 and 2021. The following table represents a rollforward of deferred contract acquisition costs: Year ended December 31, 2023 2022 2021 Beginning balance $ 66,397 $ 56,374 $ 29,729 Additions to deferred contract acquisition costs 19,477 33,711 41,396 Amortization of deferred contract acquisition costs (28,814 ) (23,688 ) (14,751 ) Ending balance $ 57,060 $ 66,397 $ 56,374 Deferred contract acquisition costs (to be recognized in next 12 months) $ 26,793 $ 26,287 $ 20,405 Deferred contract acquisition costs, non-current $ 30,267 $ 40,110 $ 35,969 |
Deferred revenues and remaining performance obligations | w. Deferred revenues and remaining performance obligations: Deferred revenue primarily consists of billings or payments received in advance of revenue recognition and is recognized as the revenue recognition criteria are met. The Company recognized revenue of $106,267 and $82,080 for the years ended December 31, 2023 and 2022, respectively, that were included in the corresponding contract liability balance at the beginning of the period. Deferred revenue that is anticipated to be recognized during the succeeding 12-months period is recorded as current deferred revenue and the remaining portion is recorded as non-current deferred revenue. For disaggregation of revenue please refer to note 12. As of December 31, 2023, the total remaining non-cancellable performance obligations under the Company’s contracts with customers was $384,444 which includes certain amounts subject to customary termination rights under the Federal Acquisition Regulations (FAR) or Defense Federal Acquisition Regulation Supplement (DFARS). The Company expects to recognize revenue of $214,956, or 56%, over the next 12 months, with the remainder to be recognized thereafter. |
Software development costs | x. Software development costs: The Company capitalizes qualifying internal use software development costs related to its cloud platform. The costs consist of personnel costs (including related benefits and share-based compensation) that are incurred during the application development stage. Capitalization of costs begins when two criteria are met: (1) the preliminary project stage is completed, and (2) 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 costs are included in property and equipment, net. These costs are amortized over the estimated useful life of the software, which is three years, on a straight-line basis, which represents the manner in which the expected benefit will be derived. The amortization of costs related to the platform applications is included in cost of revenue in the consolidated statements 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. For the years ended December 31, 2023, 2022 and 2021 the Company capitalized a total amount of $4,071, $4,955 and $3,912 respectively. |
Research and development | y. Research and development: Research and development costs include personnel-related costs associated with the Company’s engineering, data science, product and design teams as well as consulting and professional fees, for third-party development resources, third-party licenses for software development tools and allocated overhead costs. Research and development are generally expensed as incurred except for certain internal-use software development costs, which may be capitalized as noted above. |
Advertising expenses | z. Advertising expenses: Advertising cost are expensed as incurred. Advertising expenses amounted to $11,987, $15,168 and $18,658 for the years ended December 31, 2023, 2022 and 2021, respectively. |
Basic and diluted net loss per share | aa. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number of shares of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per share of ordinary shares was the same for each period presented as the inclusion of all potential ordinary shares outstanding was anti-dilutive. |
Share-based compensation | bb. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation – Stock Compensation" ("ASC 718"), including share options, restricted share units (RSUs), performance share units (PSUs) granted to employees, directors, and non-employees, and share purchase rights granted under the Employee Share Purchase Plan (“ESPP”) to employees, based on the estimated fair value of the awards on the date of grant. The fair value of each share option granted is estimated using the Black-Scholes option-pricing model and for ESPP awards or PSUs subject to market condition, the Company uses a Monte Carlo simulation model which utilizes multiple inputs to estimate payout level and the probability that market conditions will be achieved. The determination of the grant-date fair value using an option-pricing model is affected by the fair value of the Company’s ordinary share as well as a number of inputs, of which the most significant are the exercise price, volatility and the expected option term. The fair value of each RSU, or PSU without market condition, is based on the fair value of the Company’s ordinary shares on the date of grant. Share-based compensation is generally recognized on a straight-line basis over the requisite service period and based on the graded method for performance-based awards. Some of the awards granted are subject to certain performance criteria: accordingly compensation expense is recognized for such awards when it becomes probable that the related performance condition will be satisfied. Forfeitures are accounted for in the period in which they occur. |
Income taxes | cc. Income taxes: The Company accounts for income taxes in accordance with ASC 740, "Income Taxes" ("ASC 740"). This standard prescribes the use of the liability method, whereby deferred tax asset and liability accounts balances are determined based on differences between financial reporting and tax basis of 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 their estimated realizable value, and if it is more likely than not that some portion of the entire deferred tax asset will not be realized. The Company accounts for uncertain tax positions in accordance with the provisions of ASC 740-10, "Income Taxes". Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a Company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. |
Recently adopted accounting pronouncements | dd. Recently adopted accounting pronouncements: As an “emerging growth company”, the Jumpstart Our Business Startups Act (“JOBS Act”) allows the Company to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The Company has elected to use this extended transition period under the JOBS Act. The adoption dates discussed below reflect this election. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 requires that expected credit losses relating to financial assets be measured on an amortized cost basis be recorded through an allowance for credit losses. ASU 2016-13 also requires an investor to determine whether a decline in the fair value below the amortized cost basis (i.e., impairment) of an available for sale debt security is due to credit-related factors or noncredit-related factors. Any impairment that is not credit related is recognized in OCI, net of applicable taxes. However, if an entity intends to sell an impaired available for sell debt security or more likely than not will be required to sell such a security before recovering its amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security's amortized cost basis. Credit-related impairment is recognized as an allowance on the balance sheet with a corresponding adjustment to earnings. The Company adopted ASU 2016-13 using the modified retrospective approach as of January 1, 2023. The standard did not have a material impact on the Company's consolidated statements of operations, financial positions or cash flows. |
Accounting pronouncements not yet adopted | ee. Accounting pronouncements not yet adopted: In August 2020, the FASB issued ASU No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity's Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity's own equity. Among other changes, ASU 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature and a beneficial conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS). The guidance will be effective for the Company beginning January 1, 2024, and interim periods therein and can be adopted on either a fully retrospective or modified retrospective basis. The Company has evaluated the effect of ASU 2020-06 and expects no material impact on the Company’s consolidated financial statements and disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. In addition, it provides new segment disclosure requirements for entities with a single reportable segment. The guidance will be effective for the Company for annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disaggregated information about the effective tax rate reconciliation as well as information on income taxes paid. The guidance will be effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact on its financial statement disclosures. |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Schedule of Gains (Losses) Were Recorded In Consolidated Statements Of Comprehensive Loss. | Year ended December 31, 2023 2022 2021 Cost of revenues $ (429 ) $ (365 ) $ 72 Research and development (2,563 ) (1,709 ) 331 Sales and marketing (741 ) (614 ) 129 General and administrative (1,264 ) (783 ) 137 Total $ (4,997 ) $ (3,471 ) $ 669 |
Schedule of property and equipment depreciation rates | % Software, computers and peripheral equipment 33 Office furniture and equipment 10-33 Capitalized software development costs 33 Leasehold improvement By the shorter of remaining lease term or estimated useful life of the asset |
Schedule of deferred contract acquisition costs | Year ended December 31, 2023 2022 2021 Beginning balance $ 66,397 $ 56,374 $ 29,729 Additions to deferred contract acquisition costs 19,477 33,711 41,396 Amortization of deferred contract acquisition costs (28,814 ) (23,688 ) (14,751 ) Ending balance $ 57,060 $ 66,397 $ 56,374 Deferred contract acquisition costs (to be recognized in next 12 months) $ 26,793 $ 26,287 $ 20,405 Deferred contract acquisition costs, non-current $ 30,267 $ 40,110 $ 35,969 |
REDEEMABLE NON-CONTROLLING IN_2
REDEEMABLE NON-CONTROLLING INTEREST (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Redeemable Noncontrolling Interest, Equity, Redemption Value [Abstract] | |
Schedule of redeemable non-controlling interests | Year ended December 31, 2023 2022 2021 Balance, beginning of period $ 8,080 $ 23,901 $ 8,647 Net loss attributable to redeemable non-controlling interest (266 ) (743 ) (1,169 ) Adjustment to redeemable non-controlling interest 2,649 (14,979 ) 16,689 Foreign currency translation (34 ) (99 ) (266 ) Balance, end of period $ 10,429 $ 8,080 $ 23,901 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities | December 31, 2023 Amortized cost Gross unrealized losses Gross unrealized gains Fair Value U.S. Treasuries $ 84,811 $ (124 ) $ 81 $ 84,768 U.S. Government Agencies 31,750 (22 ) 76 31,804 Total $ 116,561 $ (146 ) $ 157 $ 116,572 Out of the total unrealized losses, an amount of $64 has been in a continuous unrealized loss position for twelve months or longer. December 31, 2022 Amortized cost Gross unrealized losses Gross unrealized gains Fair Value U.S. Treasuries $ 68,084 $ (64 ) $ 86 $ 68,106 U.S. Government Agencies 17,426 (30 ) 19 17,415 Total $ 85,510 $ (94 ) $ 105 $ 85,521 |
Schedule of contractual years-to maturity of available-for-sale marketable securities | December 31, 2023 Amortized cost Fair Value Due within one year $ 60,310 $ 60,290 Due between one and three years 56,251 56,282 Total $ 116,561 $ 116,572 December 31, 2022 Amortized cost Fair Value Due within one year $ 42,214 $ 42,187 Due between one and three years 43,296 43,334 Total $ 85,510 $ 85,521 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment, net | December 31, 2023 2022 Cost: Software, computers and peripheral equipment $ 8,220 $ 8,378 Office furniture and equipment 687 887 Capitalized software development costs 22,821 18,750 Leasehold improvements 4,027 3,999 35,755 32,014 Accumulated depreciation 23,696 18,746 Depreciated cost $ 12,059 $ 13,268 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Schedule of developed technology acquired with an estimated useful life | December 31, 2023 2022 Acquired technology $ 3,004 $ 3,004 Accumulated amortization and Impairment 2,924 2,655 Depreciated cost $ 80 $ 349 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of outstanding non-cancelable purchase obligations | December 31, 2023 Years ending December 31, 2024 $ 13,963 2025 14,506 2026 12,848 2027 9,161 2028 2,318 Total $ 52,796 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of components of operating lease costs | Year ended December 31, 2023 2022 Operating lease cost $ 5,660 $ 6,227 Short-term lease cost 826 787 Variable lease cost 28 35 Total lease cost $ 6,514 $ 7,049 |
Schedule of supplemental balance sheet information related to operating leases | December 31, 2023 2022 Weighted average remaining lease term (in years) 4.6 1.8 Weighted average discount rate 4.4 % 1 % |
Schedule of supplemental cash flow information related to operating leases | Year ended December 31, 2023 2022 Cash paid for amounts included in the measurement of lease operating liabilities $ 6,467 $ 5,399 |
Schedule of maturities of operating lease liabilities | As of December 31, 2023 2024 $ 5,065 2025 2,111 2026 1,734 2027 1,715 2028 1,749 Thereafter 2,010 Total undiscounted lease payments 14,384 Less: imputed interest (1,558 ) Present value of lease liabilities $ 12,826 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of money market funds and marketable securities | December 31, 2023 December 31, 2022 Level 1 Level 2 Level 1 Level 2 Financial Assets: Cash equivalents: Money market funds $ 133,211 $ - $ 290 $ - U.S. Treasuries - 1,997 - - Foreign currency derivative contracts - 825 - - Marketable securities: U.S. Treasuries - 84,768 - 68,106 U.S. Government Agencies - 31,804 - 17,415 Total assets measured at fair value $ 133,211 $ 119,394 $ 290 $ 85,521 Financial Liabilities Foreign currency derivative contracts - (72 ) - (1,577 ) Total liabilities measured at fair value $ - $ (72 ) $ - $ (1,577 ) |
CONVERTIBLE PREFERRED SHARES,_2
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of composition of share capital | December 31, 2023 December 31, 2022 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares no par value Ordinary shares 900,000,000 90,864,662 900,000,000 86,780,082 |
Schedule of share option activity | Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2022 12,412,197 $ 8.96 6.93 $ 49,209 Granted 596,782 $ 9.11 Forfeited (802,728 ) $ 18.28 Exercised (982,717 ) $ 1.9 $ 7,662 Balance as of December 31, 2023 11,223,534 $ 8.92 6.17 $ 37,473 Exercisable options at end of year 8,140,268 $ 7.47 5.54 $ 35,597 |
Schedule of share-based payment arrangement, restricted stock | Number of RSUs Weighted- Average Grant Date Fair Value Per Share Balance as of December 31, 2022 6,559,826 $ 16.23 Granted 4,814,253 $ 9.44 Forfeited (2,021,312 ) $ 15.91 Released (2,510,169 ) $ 15.22 Balance as of December 31, 2023 6,842,598 $ 11.89 |
Schedule of share-based compensation expense by award type | Year ended December 31 2023 2022 2021 Options $ 18,392 $ 20,167 $ 21,359 RSUs 35,262 27,001 4,842 ESPP 1,803 2,936 1,131 $ 55,457 $ 50,104 $ 27,332 |
Schedule of share-based compensation expense | Year ended December 31 2023 2022 2021 Cost of revenues $ 2,590 $ 3,896 $ 1,804 Research and development 11,041 7,285 3,863 Sales and marketing 17,671 19,126 8,205 General and administrative 24,155 19,797 13,460 $ 55,457 $ 50,104 $ 27,332 |
Share options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of share-based payment arrangement, restricted stock | Year ended December 31, 2023 2022 2021 Expected volatility 60%-76% 60% 60% Expected dividend yield - - - Expected term (in years) 1.44-6.08 5.5-6.98 5-6.55 Risk free interest 3.46%-4.93% 1.98%-3.88% 0.49%-1.06% |
Employee Share Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of black-Scholes assumptions used to value employee options | Year ended December 31, 2023 2022 2021 Expected volatility 49%-63.8% 77%-91.9% 41% Expected dividend yield - - - Expected term (in years) 0.5 0.5 0.57 Risk free interest 4.92%-5.47% 0.46%-2.85% 0.06% |
TAXES ON INCOME (Tables)
TAXES ON INCOME (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of income before taxes on income | Year ended December 31 2023 2022 2021 Israel $ (59,200 ) $ (102,013 ) $ (68,924 ) Foreign 7,514 (2,506 ) (8,875 ) $ (51,686 ) $ (104,519 ) $ (77,799 ) |
Schedule of provision for income taxes | Year ended December 31 2023 2022 2021 Current: Israel $ 69 $ (93 ) $ 103 Foreign 6,769 1,389 697 Total current taxes 6,838 1,296 800 Deferred: Israel - - - Foreign (1,771 ) 2,535 1,694 Total deferred taxes (1,771 ) 2,535 1,694 Total income taxes $ 5,067 $ 3,831 $ 2,494 |
Schedule of effective income tax rate reconciliation | Year ended December 31 2023 2022 2021 Loss before income taxes $ 51,686 $ 104,519 $ 77,799 Statutory tax rate 23 % 23 % 23 % Theoretical income tax benefit $ (11,888 ) $ (24,039 ) $ (17,894 ) Preferred technology enterprise 6,512 11,221 7,582 Foreign rate differential 16 (300 ) (597 ) Unrecognized tax benefits 373 1,348 3,159 Changes in valuation allowance 4,329 11,421 7,498 Share-based compensation 5,589 3,745 2,519 Non-deductible expenses 69 513 234 Other 67 (78 ) (7 ) Actual tax expense $ 5,067 $ 3,831 $ 2,494 |
Schedule of deferred tax assets and liabilities | December 31, 2023 2022 Deferred tax assets: Net operating loss carryforwards $ 48,348 $ 43,437 Research and development expenses 4,878 5,398 Accruals and reserves 2,574 2,088 Issuance costs - 914 Share-based compensation 4,396 4,318 Operating lease liability 1,968 2,115 Other deferred assets 1,083 805 Gross deferred tax assets 63,247 59,075 Valuation allowance (55,758 ) (51,164 ) Total deferred tax assets 7,489 7,911 Deferred tax liabilities: Deferred contract costs (10,989 ) (13,313 ) Operating lease ROU asset (1,760 ) (1,667 ) Other deferred tax liabilities (299 ) (261 ) Gross deferred tax liabilities (13,048 ) (15,241 ) Net deferred taxes $ (5,559 ) $ (7,330 ) |
Schedule of changes in gross amount of unrecognized tax benefits | Unrecognized Tax Benefits Balance - December 31, 2020 1,709 Increases related to prior years’ tax positions 175 Increases related to current years’ tax positions 2,984 Balance - December 31, 2021 4,868 Decrease related to prior years’ tax positions (287 ) Increases related to current years’ tax positions 1,635 Balance - December 31, 2022 6,216 Increase related to prior years’ tax positions 10 Increases related to current years’ tax positions 317 Balance - December 31, 2023 $ 6,543 |
REPORTING SEGMENTS AND GEOGRA_2
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of revenue by region | Year ended December 31, 2023 2022 2021 United States $ 186,937 $ 172,733 $ 135,291 Rest of world 79,518 71,510 56,914 Israel 499 763 1,098 $ 266,954 $ 245,006 $ 193,303 |
Schedule of property and equipment, net by region | Year ended December 31, 2023 2022 Israel $ 20,221 $ 11,537 United States 2,642 6,800 Rest of world 1,201 1,934 Total long-lived assets, net $ 24,064 $ 20,271 |
NET LOSS PER SHARE ATTRIBUTAB_2
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per share | Year ended December 31, 2023 2022 2021 Numerator: Net loss $ (56,753 ) $ (108,350 ) $ (80,293 ) Net loss attributable to non-controlling interest (266 ) (743 ) (1,169 ) Adjustment attributable to non-controlling interest 2,649 (14,979 ) 16,689 Net loss attributable to WalkMe Ltd. $ (59,136 ) $ (92,628 ) $ (95,813 ) Denominator: Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic and diluted 88,912,397 85,116,424 51,763,032 Net loss per share attributable to ordinary shareholders, basic and diluted $ (0.67 ) $ (1.09 ) $ (1.85 ) |
Schedule of antidilutive ordinary shares excluded from computation of earnings per share | Year ended December 31, 2023 2022 2021 Convertible preferred shares - - 26,972,186 RSU’s 7,141,801 5,759,365 732,157 Outstanding share options and share purchase rights under ESPP 11,991,061 13,676,853 14,143,816 Total 19,132,862 19,436,218 41,848,159 |
GENERAL (Detail Textuals)
GENERAL (Detail Textuals) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Jun. 16, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsidiary, Sale of Stock [Line Items] | ||||
Amount of initial public offering | $ 0 | $ 0 | $ 263,922 | |
Initial public offering (“IPO”) [Member] | ||||
Subsidiary, Sale of Stock [Line Items] | ||||
Number of shares issued under initial public offering | 9,250,000 | |||
Offering price | $ 31 | |||
Amount of initial public offering | $ 263,911 | |||
Deducting underwriting discounts and commissions | 18,639 | |||
Other issuance costs | $ 4,200 | |||
Number of convertible preferred shares converted to ordinary shares | 59,180,522 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) reclassified into net loss | $ (4,997) | $ (3,471) | $ 669 |
Cost of revenues | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) reclassified into net loss | (429) | (365) | 72 |
Research and development | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) reclassified into net loss | (2,563) | (1,709) | 331 |
Sales and marketing | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) reclassified into net loss | (741) | (614) | 129 |
General and administrative | |||
Summary Of Significant Accounting Policies [Line Items] | |||
Net gain (loss) reclassified into net loss | $ (1,264) | $ (783) | $ 137 |
SUMMARY OF SIGNIFICANT ACCOUN_5
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 1) | 12 Months Ended |
Dec. 31, 2023 | |
Software, computers and peripheral equipment | |
Property, Plant and Equipment [Line Items] | |
Depreciation annual rates | 33% |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Depreciation annual rates | 10% |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Depreciation annual rates | 33% |
Capitalized development costs | |
Property, Plant and Equipment [Line Items] | |
Depreciation annual rates | 33% |
Leasehold improvement | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives | By the shorter of remaining lease term or estimated useful life of the asset |
SUMMARY OF SIGNIFICANT ACCOUN_6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 66,397 | $ 56,374 | $ 29,729 |
Additions to deferred contract acquisition costs | 19,477 | 33,711 | 41,396 |
Amortization of deferred contract acquisition costs | (28,814) | (23,688) | (14,751) |
Ending balance | 57,060 | 66,397 | 56,374 |
Deferred contract acquisition costs (to be recognized in next 12 months) | 26,793 | 26,287 | 20,405 |
Deferred contract acquisition costs, non-current | $ 30,267 | $ 40,110 | $ 35,969 |
SUMMARY OF SIGNIFICANT ACCOUN_7
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||
Cash held in checking accounts | $ 164,466 | $ 46,105 | |
Bank deposits with maturities of three months or less | $ 12,757 | $ 48,000 | |
Short-term bank deposits weighted average rates | 5.71% | 4.84% | |
Concentration risk, revenue | 10% | ||
Foreign currency contracts designated as hedging instruments | $ 26,794 | $ 50,298 | |
Unbilled trade receivables | 4,515 | 4,084 | |
Impairment of intangibles | $ 300 | 2,246 | |
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | us-gaap:OperatingCostsAndExpenses | ||
Percentage of monthly salary deposit to insurance funds | 8.33% | ||
Severance expense | $ 3,250 | 3,967 | $ 3,490 |
Employee contributions, matching percentage | 100% | ||
Employee contributions maximum limit percentage | 5% | ||
Contribution expenses | $ 2,087 | 2,211 | |
Recognize revenue, amount | 106,267 | 82,080 | |
Non-cancellable performance obligations | 384,444 | ||
Expected recognize revenue | $ 214,956 | ||
Percentage of performance obligation recognized in next 12 months | 56% | ||
Costs of development of software programs | $ 4,071 | 4,955 | 3,912 |
Advertising expenses | 11,987 | 15,168 | $ 18,658 |
Operating lease right-of-use assets | $ 12,005 | $ 7,003 |
REDEEMABLE NON-CONTROLLING IN_3
REDEEMABLE NON-CONTROLLING INTEREST (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Redeemable Noncontrolling Interest, Equity, Redemption Value [Abstract] | |||
Balance | $ 8,080 | $ 23,901 | $ 8,647 |
Net loss attributable to redeemable non-controlling interest | (266) | (743) | (1,169) |
Adjustment to redeemable non-controlling interest | 2,649 | (14,979) | 16,689 |
Foreign currency translation | (34) | (99) | (266) |
Balance | $ 10,429 | $ 8,080 | $ 23,901 |
REDEEMABLE NON-CONTROLLING IN_4
REDEEMABLE NON-CONTROLLING INTEREST (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Redeemable Noncontrolling Interest [Line Items] | ||
Cash | $ 164,466 | $ 46,105 |
Japan Cloud Computing, L.P. and M30 LLC [Member] | ||
Redeemable Noncontrolling Interest [Line Items] | ||
Payments to acquire redeemable noncontrolling interest | $ 4,750 | |
Ownership percentage held by parent company | 51% |
MARKETABLE SECURITIES (Details)
MARKETABLE SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Marketable Securities [Line Items] | ||
Amortized cost | $ 116,561 | $ 85,510 |
Gross unrealized losses | (146) | (94) |
Gross unrealized gains | 157 | 105 |
Fair Value | 116,572 | 85,521 |
U.S. Treasuries | ||
Marketable Securities [Line Items] | ||
Amortized cost | 84,811 | 68,084 |
Gross unrealized losses | (124) | (64) |
Gross unrealized gains | 81 | 86 |
Fair Value | 84,768 | 68,106 |
U.S. Government Agencies | ||
Marketable Securities [Line Items] | ||
Amortized cost | 31,750 | 17,426 |
Gross unrealized losses | (22) | (30) |
Gross unrealized gains | 76 | 19 |
Fair Value | $ 31,804 | $ 17,415 |
MARKETABLE SECURITIES (Details
MARKETABLE SECURITIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Amortized cost | ||
Due within one year | $ 60,310 | $ 42,214 |
Due between one and three years | 56,251 | 43,296 |
Total | 116,561 | 85,510 |
Fair Value | ||
Due within one year | 60,290 | 42,187 |
Due between one and three years | 56,282 | 43,334 |
Total | $ 116,572 | $ 85,521 |
MARKETABLE SECURITIES (Detail T
MARKETABLE SECURITIES (Detail Textuals) $ in Thousands | Dec. 31, 2023 USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Unrealized Losses - Continuous 12 Months or Longer | $ 64 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 35,755 | $ 32,014 |
Accumulated depreciation | 23,696 | 18,746 |
Depreciated cost | 12,059 | 13,268 |
Software, computers and peripheral equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 8,220 | 8,378 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 687 | 887 |
Capitalized development costs | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | 22,821 | 18,750 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, Gross | $ 4,027 | $ 3,999 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Detail Textuals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation | $ 5,721 | $ 5,165 | $ 4,478 |
Reduction in cost and accumulated depreciation of fully depreciated equipment and leasehold improvements no longer in use | $ 776 | $ 576 |
INTANGIBLE ASSETS, NET (Details
INTANGIBLE ASSETS, NET (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Acquired technology | $ 3,004 | |
Accumulated amortization and Impairment | 2,924 | $ 2,655 |
Depreciated cost | $ 80 | $ 349 |
INTANGIBLE ASSETS, NET (Detail
INTANGIBLE ASSETS, NET (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Oct. 04, 2021 | Apr. 15, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life | 3 months 18 days | ||||
Amortization expense | $ 269 | $ 487 | $ 299 | ||
Impairment of intangibles | 300 | $ 2,246 | |||
Future Amortization Expense | 80 | ||||
Snow White Labs Ltd [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Consideration Transferred | $ 808 | ||||
Ordinary shares and direct acquisition costs | 33,150 | ||||
Fair value of ordinary shares | $ 776 | ||||
Simpo Ltd [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Business Combination, Consideration Transferred | $ 1,306 | ||||
Impairment of intangibles | $ 979 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 13,963 |
2025 | 14,506 |
2026 | 12,848 |
2027 | 9,161 |
2028 | 2,318 |
Total | $ 52,796 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Detail Textuals) - USD ($) $ in Thousands | 1 Months Ended | |
Aug. 31, 2021 | Dec. 31, 2023 | |
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Legal Settlement Amount | $ 2,950 | |
Office lease agreement | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Pledged bank deposits | 170 | |
Bank guarantees related to lease agreements | $ 1,559 | |
Loan and security agreement | Revolving Credit Facility | ||
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items] | ||
Maximum amount of borrow, repay and re-borrow | $ 50,000 | |
Expiration period | 3 years | |
Interest on borrowings | Prime Rate or 3.25% | |
Yearly fixed fee payment | $ 20 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Operating lease cost | $ 5,660 | $ 6,227 |
Short-term lease cost | 826 | 787 |
Variable lease cost | 28 | 35 |
Total lease cost | $ 6,514 | $ 7,049 |
LEASES (Details 1)
LEASES (Details 1) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Weighted average remaining lease term (in years) | 4 years 7 months 6 days | 1 year 9 months 18 days |
Weighted average discount rate | 4.40% | 1% |
LEASES (Details 2)
LEASES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for amounts included in the measurement of lease operating liabilities | $ 6,467 | $ 5,399 |
LEASES (Details 3)
LEASES (Details 3) $ in Thousands | Dec. 31, 2023 USD ($) |
Leases [Abstract] | |
2024 | $ 5,065 |
2025 | 2,111 |
2026 | 1,734 |
2027 | 1,715 |
2028 | 1,749 |
Thereafter | 2,010 |
Total undiscounted lease payments | 14,384 |
Less: imputed interest | (1,558) |
Present value of lease liabilities | $ 12,826 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | $ 133,211 | $ 290 |
Total liabilities measured at fair value | 0 | 0 |
Level 1 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 133,211 | 290 |
Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Available-for-sale marketable securities | 0 | 0 |
Level 1 | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts assets | 0 | 0 |
Foreign currency derivative contracts liability | 0 | 0 |
Level 1 | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | 0 | 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets measured at fair value | 119,394 | 85,521 |
Total liabilities measured at fair value | (72) | (1,577) |
Level 2 | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level 2 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 1,997 | 0 |
Available-for-sale marketable securities | 84,768 | 68,106 |
Level 2 | Foreign currency derivative contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency derivative contracts assets | 825 | 0 |
Foreign currency derivative contracts liability | (72) | (1,577) |
Level 2 | U.S. Government Agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available-for-sale marketable securities | $ 31,804 | $ 17,415 |
CONVERTIBLE PREFERRED SHARES,_3
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details) - shares | Dec. 31, 2023 | Dec. 31, 2022 |
Class of Stock [Line Items] | ||
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 90,864,662 | 86,780,082 |
Common stock, shares outstanding | 90,864,662 | 86,780,082 |
Ordinary shares | ||
Class of Stock [Line Items] | ||
Common stock, shares authorized | 900,000,000 | 900,000,000 |
Common stock, shares issued | 90,864,662 | 86,780,082 |
Common stock, shares outstanding | 90,864,662 | 86,780,082 |
CONVERTIBLE PREFERRED SHARES,_4
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 1) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Aggregate Intrinsic value | |||
Exercised | $ 7,662 | $ 12,217 | $ 25,937 |
Share option plan | |||
Number of options | |||
Beginning Balance | 12,412,197 | ||
Granted | 596,782 | ||
Forfeited | (802,728) | ||
Exercised | (982,717) | ||
Ending Balance | 11,223,534 | 12,412,197 | |
Exercisable options at end of year | 8,140,268 | ||
Weighted average exercise price | |||
Beginning Balance | $ 8.96 | ||
Granted | 9.11 | ||
Forfeited | 18.28 | ||
Exercised | 1.9 | ||
Ending Balance | 8.92 | $ 8.96 | |
Exercisable options at end of year | $ 7.47 | ||
Weighted average remaining contractual term (in years) | 6 years 2 months 1 day | 6 years 11 months 4 days | |
Weighted average remaining contractual term (in years) - Exercisable options | 5 years 6 months 14 days | ||
Aggregate Intrinsic value | |||
Beginning Balance | $ 49,209 | ||
Exercised | 7,662 | ||
Ending Balance | 37,473 | $ 49,209 | |
Exercisable options at end of year | $ 35,597 |
CONVERTIBLE PREFERRED SHARES,_5
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 2) - Share option plan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 60% | 60% | |
Expected dividend yield | 0% | 0% | 0% |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 60% | ||
Expected term (in years) | 1 year 5 months 8 days | 5 years 6 months | 5 years |
Risk free interest | 3.46% | 1.98% | 0.49% |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 76% | ||
Expected term (in years) | 6 years 29 days | 6 years 11 months 23 days | 6 years 6 months 18 days |
Risk free interest | 4.93% | 3.88% | 1.06% |
CONVERTIBLE PREFERRED SHARES,_6
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 3) - RSUs | 12 Months Ended |
Dec. 31, 2023 $ / shares shares | |
Number of RSUs | |
Opening balance | shares | 6,559,826 |
Granted | shares | 4,814,253 |
Forfeited | shares | (2,021,312) |
Released | shares | (2,510,169) |
Closing balance | shares | 6,842,598 |
Weighted-Average Grant Date Fair Value Per Share | |
Opening balance | $ / shares | $ 16.23 |
Granted | $ / shares | 9.44 |
Forfeited | $ / shares | 15.91 |
Released | $ / shares | 15.22 |
Closing balance | $ / shares | $ 11.89 |
CONVERTIBLE PREFERRED SHARES,_7
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 4) - Employee Share Purchase Plan | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 41% | ||
Expected dividend yield | 0% | 0% | 0% |
Expected term (in years) | 6 months | 6 months | 6 months 25 days |
Risk free interest | 0.06% | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 49% | 77% | |
Risk free interest | 4.92% | 0.46% | |
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 63.80% | 91.90% | |
Risk free interest | 5.47% | 2.85% |
CONVERTIBLE PREFERRED SHARES,_8
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 5) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 55,457 | $ 50,104 | $ 27,332 |
Share options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 18,392 | 20,167 | 21,359 |
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | 35,262 | 27,001 | 4,842 |
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 1,803 | $ 2,936 | $ 1,131 |
CONVERTIBLE PREFERRED SHARES,_9
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Details 6) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 55,457 | $ 50,104 | $ 27,332 |
Share option plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 55,457 | 50,104 | 27,332 |
Share option plan | Cost of revenues | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 2,590 | 3,896 | 1,804 |
Share option plan | Research and development | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 11,041 | 7,285 | 3,863 |
Share option plan | Sales and marketing | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 17,671 | 19,126 | 8,205 |
Share option plan | General and administrative | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 24,155 | $ 19,797 | $ 13,460 |
CONVERTIBLE PREFERRED SHARES_10
CONVERTIBLE PREFERRED SHARES, SHAREHOLDERS' EQUITY AND EQUITY INCENTIVE PLAN (Detail Textuals) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||
Mar. 25, 2021 USD ($) shares | Nov. 30, 2019 USD ($) | Dec. 31, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2020 USD ($) | Mar. 04, 2021 ₪ / shares | |
Convertible Preferred Shares Shareholders Deficit And Equity Incentive Plan [Line Items] | |||||||
Common stock, par value | ₪ / shares | ₪ 0.01 | ||||||
Common stock, shares authorized | shares | 900,000,000 | 900,000,000 | |||||
Amount of initial public offering | $ 0 | $ 0 | $ 263,922 | ||||
Amount of preferred stock liquidation preference | $ 310,490 | ||||||
Convertible preferred shares outstanding | shares | 59,180,522 | ||||||
Preferred Stock, Convertible, Terms | an equivalent number of ordinary shares on a one-to-one | ||||||
Number of ordinary shares available for grant | shares | 8,992,791 | ||||||
Expiration period of options granted | 10 years | ||||||
Vesting period of options | 4 years | ||||||
Unrecognized compensation cost | $ 19,688 | ||||||
Period of weighted-average non-vested share-based compensation arrangements | 2 years 2 months 1 day | ||||||
Weighted-average grant date fair value of options granted | $ / shares | $ 4.23 | $ 7.32 | $ 13.31 | ||||
Intrinsic value of the options exercised | $ 7,662 | $ 12,217 | $ 25,937 | ||||
Total grant-date fair value of released RSUs and PSUs | 38,309 | $ 19,004 | $ 49 | ||||
Restricted Share Units | |||||||
Convertible Preferred Shares Shareholders Deficit And Equity Incentive Plan [Line Items] | |||||||
Unrecognized stock compensation expenses related to RSUs | $ 70,706 | ||||||
Period of weighted-average non-vested share-based compensation arrangements | 2 years 5 months 19 days | ||||||
Employee Share Purchase Plan | |||||||
Convertible Preferred Shares Shareholders Deficit And Equity Incentive Plan [Line Items] | |||||||
Unrecognized compensation cost | $ 232 | ||||||
Period of weighted-average non-vested share-based compensation arrangements | 2 months 12 days | ||||||
Reserved for issuance of employee stock purchase plan | shares | 2,627,628 | 2,161,770 | |||||
Share purchase agreement | |||||||
Convertible Preferred Shares Shareholders Deficit And Equity Incentive Plan [Line Items] | |||||||
Total amount of consideration of convertible preferred stock | $ 45,000 | $ 45,000 | |||||
Total amount of funding requests | $ 35,000 | ||||||
Preferred shares F | Share purchase agreement | |||||||
Convertible Preferred Shares Shareholders Deficit And Equity Incentive Plan [Line Items] | |||||||
Convertible preferred shares issued | shares | 455,942 | ||||||
Consideration of convertible preferred stock | $ 10,000 |
TAXES ON INCOME (Details)
TAXES ON INCOME (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Israel | $ (59,200) | $ (102,013) | $ (68,924) |
Foreign | 7,514 | 2,506 | 8,875 |
Loss before income taxes | $ (51,686) | $ (104,519) | $ (77,799) |
TAXES ON INCOME (Details 1)
TAXES ON INCOME (Details 1) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Line Items] | |||
Total current taxes | $ 6,838 | $ 1,296 | $ 800 |
Total deferred taxes | (1,771) | 2,535 | 1,694 |
Total income taxes | 5,067 | 3,831 | 2,494 |
Israel | |||
Income Tax Disclosure [Line Items] | |||
Total current taxes | 69 | (93) | 103 |
Total deferred taxes | 0 | 0 | 0 |
Foreign | |||
Income Tax Disclosure [Line Items] | |||
Total current taxes | 6,769 | 1,389 | 697 |
Total deferred taxes | $ (1,771) | $ 2,535 | $ 1,694 |
TAXES ON INCOME (Details 2)
TAXES ON INCOME (Details 2) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Loss before income taxes | $ 51,686 | $ 104,519 | $ 77,799 |
Statutory tax rate | 23% | 23% | 23% |
Theoretical income tax benefit | $ (11,888) | $ (24,039) | $ (17,894) |
Preferred technology enterprise | 6,512 | 11,221 | 7,582 |
Foreign rate differential | 16 | (300) | (597) |
Unrecognized tax benefits | 373 | 1,348 | 3,159 |
Changes in valuation allowance | 4,329 | 11,421 | 7,498 |
Share-based compensation | 5,589 | 3,745 | 2,519 |
Non-deductible expenses | 69 | 513 | 234 |
Other | 67 | (78) | (7) |
Actual tax expense | $ 5,067 | $ 3,831 | $ 2,494 |
TAXES ON INCOME (Details 3)
TAXES ON INCOME (Details 3) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 48,348 | $ 43,437 |
Research and development expenses | 4,878 | 5,398 |
Accruals and reserves | 2,574 | 2,088 |
Issuance costs | 0 | 914 |
Share-based compensation | 4,396 | 4,318 |
Operating lease liability | 1,968 | 2,115 |
Other deferred assets | 1,083 | 805 |
Gross deferred tax assets | 63,247 | 59,075 |
Valuation allowance | (55,758) | (51,164) |
Total deferred tax assets | 7,489 | 7,911 |
Deferred tax liabilities: | ||
Deferred contract costs | (10,989) | (13,313) |
Operating lease ROU asset | (1,760) | (1,667) |
Other deferred tax liabilities | (299) | (261) |
Gross deferred tax liabilities | (13,048) | (15,241) |
Net deferred taxes | $ (5,559) | $ (7,330) |
TAXES ON INCOME (Details 4)
TAXES ON INCOME (Details 4) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 6,216 | $ 4,868 | $ 1,709 |
Increases related to prior years’ tax positions | 10 | 175 | |
Increase related to current years’ tax positions | 317 | 1,635 | 2,984 |
Decrease related to prior years’ tax positions | (287) | ||
Ending balance | $ 6,543 | $ 6,216 | $ 4,868 |
TAXES ON INCOME (Detail Textual
TAXES ON INCOME (Detail Textuals) $ in Thousands, ₪ in Millions | 12 Months Ended | ||||
Dec. 31, 2023 ILS (₪) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2023 USD ($) | |
Income Tax Disclosure [Line Items] | |||||
Israel corporate tax rate | 23% | 23% | 23% | 23% | |
Percentage of tax benefit recorded positions more likely to be realized | 50% | 50% | |||
Net operating loss carryforward in Israel | $ 364,062 | ||||
Amount of recognized tax benefits | $ 6,185 | ||||
Amount offset by the reversal of related deferred tax assets | 358 | ||||
Unrecognized tax benefits of interest and penalties | 445 | ||||
Foreign | |||||
Income Tax Disclosure [Line Items] | |||||
Operating Loss Carryforwards | $ 55,906 | ||||
Preferred Technology Enterprises” (“PTE”) | Domestic | |||||
Income Tax Disclosure [Line Items] | |||||
Percentage of annual income derived from exports to large markets | 25% | 25% | |||
Threshold of consolidated revenue of PTE | ₪ | ₪ 10,000 | ||||
Capital gains tax rate on the sale of a preferred intangible asset | 12% | 12% | |||
Asset purchased from foreign resident | ₪ | ₪ 200 | ||||
Percentage of withholding tax rate of dividends paid | 20% | 20% | |||
Percentage of withholding tax rate of dividends paid to foreign resident | 4% | 4% | |||
Effective income tax rate | 12% | 12% |
REPORTING SEGMENTS AND GEOGRA_3
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue, Major Customer [Line Items] | |||
Revenues | $ 266,954 | $ 245,006 | $ 193,303 |
United States | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 186,937 | 172,733 | 135,291 |
Rest of world | |||
Revenue, Major Customer [Line Items] | |||
Revenues | 79,518 | 71,510 | 56,914 |
Israel | |||
Revenue, Major Customer [Line Items] | |||
Revenues | $ 499 | $ 763 | $ 1,098 |
REPORTING SEGMENTS AND GEOGRA_4
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION (Details 1) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets, net | $ 24,064 | $ 20,271 |
Israel | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets, net | 20,221 | 11,537 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets, net | 2,642 | 6,800 |
Rest of world | ||
Property, Plant and Equipment [Line Items] | ||
Total long-lived assets, net | $ 1,201 | $ 1,934 |
REPORTING SEGMENTS AND GEOGRA_5
REPORTING SEGMENTS AND GEOGRAPHIC INFORMATION (Detail Textuals) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Term of concentration risk | Other than the United States, no other individual country accounted for 10% or more of total revenue |
NET LOSS PER SHARE ATTRIBUTAB_3
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss | $ (56,753) | $ (108,350) | $ (80,293) |
Net loss attributable to non-controlling interest | (266) | (743) | (1,169) |
Adjustment attributable to non-controlling interest | 2,649 | (14,979) | 16,689 |
Net loss attributable to WalkMe Ltd. | $ (59,136) | $ (92,628) | $ (95,813) |
Denominator: | |||
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, basic | 88,912,397 | 85,116,424 | 51,763,032 |
Weighted-average shares used in computing net loss per share attributable to ordinary shareholders, diluted | 88,912,397 | 85,116,424 | 51,763,032 |
Net loss per share attributable to ordinary shareholders, basic | $ (0.67) | $ (1.09) | $ (1.85) |
Net loss per share attributable to ordinary shareholders, diluted | $ (0.67) | $ (1.09) | $ (1.85) |
NET LOSS PER SHARE ATTRIBUTAB_4
NET LOSS PER SHARE ATTRIBUTABLE TO ORDINARY SHAREHOLDERS (Details 1) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 19,132,862 | 19,436,218 | 41,848,159 |
Convertible preferred shares | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 0 | 0 | 26,972,186 |
RSUs | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 7,141,801 | 5,759,365 | 732,157 |
Outstanding share options and share purchase rights under ESPP | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share amount | 11,991,061 | 13,676,853 | 14,143,816 |