Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2022 shares | |
Entity Registrant Name | Perion Network Ltd. |
Entity Central Index Key | 0001338940 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2022 |
Document Fiscal Period Focus | FY |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2022 |
Entity File Number | 000-51694 |
Entity Incorporation, State or Country Code | L3 |
Entity Address, Address Line One | 26 HaRokmim Street |
Entity Address, City or Town | Holon |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 5885849 |
Title of 12(b) Security | Ordinary shares, par value NIS 0.03 per share |
Trading Symbol | PERI |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Common Stock, Shares Outstanding | 46,172,393 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Auditor attestation flag | true |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Document Accounting Standard | U.S. GAAP |
Entity Shell Company | false |
Auditor Name | KOST FORER GABBAY & KASIERER |
Auditor Location | Tel-Aviv, Israel |
Auditor Firm ID | 1281 |
Business Contact [Member] | |
Contact Personnel Name | Maoz Sigron |
Entity Address, Address Line One | 26 HaRokmim Street |
Entity Address, City or Town | Holon |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 5885849 |
City Area Code | 972 |
Local Phone Number | 73-3981582 |
Contact Personnel Fax Number | 972-3-644-5502 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current Assets: | ||
Cash and cash equivalents | $ 176,226 | $ 104,446 |
Restricted cash | 1,295 | 1,089 |
Short-term bank deposits | 253,400 | 217,200 |
Accounts receivable (net of allowance of $2,134 and $891 at December 31, 2022 and 2021, respectively) | 160,488 | 115,361 |
Prepaid expenses and other current assets | 12,049 | 8,075 |
Total Current Assets | 603,458 | 446,171 |
Property and equipment, net | 3,611 | 4,211 |
Operating lease right-of-use assets | 10,130 | 11,578 |
Intangible assets, net | 51,664 | 56,700 |
Goodwill | 195,527 | 189,265 |
Deferred taxes | 5,779 | 5,228 |
Other assets | 49 | 79 |
Total Assets | 870,218 | 713,232 |
Current Liabilities: | ||
Accounts payable | 155,854 | 107,730 |
Accrued expenses and other liabilities | 37,869 | 40,331 |
Short-term operating lease liability | 3,900 | 3,615 |
Deferred revenue | 2,377 | 3,852 |
Short-term payment obligation related to acquisitions | 34,608 | 38,179 |
Total Current Liabilities | 234,608 | 193,707 |
Long-Term Liabilities: | ||
Long-term operating lease liability | 7,580 | 9,774 |
Payment obligation related to acquisition | 33,113 | 33,250 |
Other long-term liabilities | 11,783 | 9,541 |
Total Liabilities | 287,084 | 246,272 |
Commitments and Contingencies | ||
Shareholders' Equity: | ||
Ordinary shares of ILS 0.03 par value - Authorized: 60,000,000 shares at December 31, 2022 and 2021; Issued: 46,287,732 and 43,812,062 shares at December 31, 2022 and 2021, respectively; Outstanding: 46,172,393 and 43,696,723 shares at December 31, 2022 and 2021, respectively | 398 | 375 |
Additional paid-in capital | 513,534 | 496,154 |
Treasury shares at cost (115,339 shares at December 31, 2022 and 2021) | (1,002) | (1,002) |
Accumulated other comprehensive loss | (582) | (128) |
Retained earnings (Accumulated deficit) | 70,786 | (28,439) |
Total Shareholders' Equity | 583,134 | 466,960 |
Total Liabilities and Shareholders' Equity | $ 870,218 | $ 713,232 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2022 ₪ / shares | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 ₪ / shares | Dec. 31, 2021 USD ($) shares |
Statement of Financial Position [Abstract] | ||||
Accounts receivable, allowance | $ | $ 2,134 | $ 891 | ||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.03 | ₪ 0.03 | ||
Ordinary shares, shares authorized | 60,000,000 | 60,000,000 | ||
Ordinary shares, shares issued | 46,287,732 | 43,812,062 | ||
Ordinary shares, shares outstanding | 46,172,393 | 43,696,723 | ||
Treasury shares | 115,339 | 115,339 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues: | |||
Total Revenue | $ 640,256 | $ 478,498 | $ 328,063 |
Costs and Expenses: | |||
Cost of revenue | 30,404 | 25,197 | 22,477 |
Traffic acquisition costs and media buy | 372,601 | 288,018 | 197,626 |
Research and development | 34,424 | 35,348 | 30,880 |
Selling and marketing | 56,014 | 53,209 | 39,085 |
General and administrative | 23,813 | 20,933 | 15,819 |
Depreciation and amortization | 13,838 | 9,897 | 9,923 |
Total Costs and Expenses | 531,094 | 432,602 | 315,810 |
Income from Operations | 109,162 | 45,896 | 12,253 |
Financial expenses (income), net | (4,502) | 581 | 2,638 |
Income before Taxes on Income | 113,664 | 45,315 | 9,615 |
Taxes on income (benefit) | 14,439 | 6,609 | (610) |
Net Income | $ 99,225 | $ 38,706 | $ 10,225 |
Net Earnings per Share - Basic: | $ 2.21 | $ 1.13 | $ 0.38 |
Net Earnings per Share - Diluted: | $ 2.06 | $ 1.02 | $ 0.36 |
Weighted average number of shares - Basic: | 44,871,149 | 34,397,134 | 26,687,145 |
Weighted average number of shares - Diluted: | 48,071,638 | 37,829,725 | 28,797,747 |
Display Advertising [Member] | |||
Revenues: | |||
Total Revenue | $ 360,690 | $ 265,323 | $ 148,698 |
Search Advertising [Member] | |||
Revenues: | |||
Total Revenue | $ 279,566 | $ 213,175 | $ 179,365 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 99,225 | $ 38,706 | $ 10,225 |
Other comprehensive income (loss): | |||
Change in foreign currency translation adjustment | (147) | (315) | 49 |
Cash Flow Hedge: | |||
Unrealized gain (loss) from cash flow hedges | (1,255) | 242 | 697 |
Less: reclassification adjustment for net gain (loss) included in net income | 948 | (167) | (764) |
Net change | (307) | 75 | (67) |
Other comprehensive loss | (454) | (240) | (18) |
Comprehensive income | $ 98,771 | $ 38,466 | $ 10,207 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common shares [Member] | Additional paid-in capital [Member] | Accumulated Other Comprehensive income (loss) [Member] | Retained earnings (Accumulated deficit) [Member] | Treasury shares [Member] | Total |
Balance as of at Dec. 31, 2019 | $ 213 | $ 243,211 | $ 130 | $ (77,370) | $ (1,002) | $ 165,182 |
Balance as of (shares) at Dec. 31, 2019 | 26,242,459 | |||||
Stock-based compensation | $ 0 | 4,447 | 0 | 0 | 0 | 4,447 |
Exercise of stock-based compensation | $ 11 | 4,275 | 0 | 0 | 0 | 4,286 |
Exercise of stock-based compensation (shares) | 1,109,515 | |||||
Other comprehensive loss | $ 0 | 0 | (18) | 0 | 0 | (18) |
Net income | 0 | 0 | 0 | 10,225 | 0 | 10,225 |
Balance as of at Dec. 31, 2020 | $ 224 | 251,933 | 112 | (67,145) | (1,002) | 184,122 |
Balance as of (shares) at Dec. 31, 2020 | 27,351,974 | |||||
Issuance of shares - Offering | $ 133 | 230,356 | 0 | 0 | 0 | 230,489 |
Issuance of shares - Offering (shares) | 14,110,592 | |||||
Stock-based compensation | $ 0 | 6,985 | 0 | 0 | 0 | 6,985 |
Exercise of stock-based compensation | $ 18 | 6,880 | 0 | 0 | 0 | 6,898 |
Exercise of stock-based compensation (shares) | 2,234,157 | |||||
Other comprehensive loss | $ 0 | 0 | (240) | 0 | 0 | (240) |
Net income | 0 | 0 | 0 | 38,706 | 0 | 38,706 |
Balance as of at Dec. 31, 2021 | $ 375 | 496,154 | (128) | (28,439) | (1,002) | $ 466,960 |
Balance as of (shares) at Dec. 31, 2021 | 43,696,723 | 43,696,723 | ||||
Stock-based compensation | $ 0 | 11,570 | 0 | 0 | 0 | $ 11,570 |
Exercise of stock-based compensation | $ 23 | 5,810 | 0 | 0 | 0 | 5,833 |
Exercise of stock-based compensation (shares) | 2,475,670 | |||||
Other comprehensive loss | $ 0 | 0 | (454) | 0 | 0 | (454) |
Net income | 0 | 0 | 0 | 99,225 | 0 | 99,225 |
Balance as of at Dec. 31, 2022 | $ 398 | $ 513,534 | $ (582) | $ 70,786 | $ (1,002) | $ 583,134 |
Balance as of (shares) at Dec. 31, 2022 | 46,172,393 | 46,172,393 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating activities: | |||
Net income | $ 99,225 | $ 38,706 | $ 10,225 |
Adjustments required to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 13,838 | 9,897 | 9,923 |
Stock-based compensation expense | 11,570 | 6,985 | 4,447 |
Foreign currency translation | 20 | (223) | 19 |
Accrued interest, net | (3,646) | (300) | (125) |
Deferred taxes, net | (1,428) | (2,755) | (3,093) |
Accrued severance pay, net | (106) | 663 | (23) |
Change in payment obligation related to acquisitions | (6,904) | 350 | 4,646 |
Loss (gain) from sale of property and equipment | (12) | 121 | 10 |
Net changes in operating assets and liabilities: | |||
Accounts receivable, net | (45,236) | (34,239) | (32,049) |
Prepaid expenses and other current assets | (434) | (2,781) | (1,185) |
Operating lease right-of-use assets | 1,104 | 8,510 | 2,595 |
Operating lease liabilities | (1,909) | (8,643) | (2,255) |
Accounts payable | 48,191 | 35,222 | 24,742 |
Accrued expenses and other liabilities | 9,320 | 21,446 | 2,776 |
Deferred revenue | (1,474) | (1,853) | 1,506 |
Net cash provided by operating activities | 122,119 | 71,106 | 22,159 |
Investing activities: | |||
Purchases of property and equipment | (1,058) | (627) | (459) |
Proceeds from sale of property and equipment | 12 | 95 | 5 |
Short-term deposits, inflows | 217,200 | 12,700 | 23,234 |
Short-term deposits, outflows | (253,400) | (217,200) | (12,700) |
Cash paid in connection with acquisitions, net of cash acquired | (9,570) | (38,438) | (19,000) |
Net cash used in investing activities | (46,816) | (243,470) | (8,920) |
Financing activities: | |||
Issuance of shares in private placement, net | 0 | 230,489 | 0 |
Proceeds from exercise of stock-based compensation | 5,833 | 6,898 | 4,286 |
Payments of contingent consideration | (9,091) | 0 | 0 |
Repayment of long-term loans | 0 | (8,333) | (8,333) |
Net cash provided by (used in) financing activities | (3,258) | 229,054 | (4,047) |
Effect of exchange rate changes on cash and cash equivalents | (59) | (33) | 81 |
Net increase in cash and cash equivalents and restricted cash | 71,986 | 56,657 | 9,273 |
Cash and cash equivalents and restricted cash at beginning of year | 105,535 | 48,878 | 39,605 |
Cash and cash equivalents and restricted cash at end of year | 177,521 | 105,535 | 48,878 |
Reconciliation of cash, cash equivalents, and restricted cash to the consolidated balance sheet | |||
Cash and cash equivalents | 176,226 | 104,446 | 47,656 |
Restricted cash | 1,295 | 1,089 | 1,222 |
Total cash, cash equivalents, and restricted cash | 177,521 | 105,535 | 48,878 |
Cash paid during the year for: | |||
Income taxes | 7,689 | 4,365 | 3,180 |
Interest | 5 | 203 | 1,097 |
Non-cash investing and financing activities: | |||
Creation of new lease right-of-use assets arising from lease liability | 2,085 | 0 | 1,671 |
Purchase of property and equipment on credit | $ (47) | $ 45 | $ 3 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1: GENERAL Perion Network Ltd. ("Perion") and its wholly-owned subsidiaries (collectively referred to as the "Company"), is a global technology innovator in the digital advertising ecosystem, providing brands, agencies and publishers with the holistic ability to identify and measurably reach their most valuable customers - across all numerous digital channels, including retail media – with high impact creative units that are orchestrated by its proprietary Intelligent Hub (iHUB). The iHUB which connects the supply and demand sides of the marketplace, and as a result is capable of bringing Perion and its client’s significant efficiencies. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2: SIGNIFICANT ACCOUNTING POLICIES Basis of consolidation The consolidated financial statements include the accounts of Perion and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. Use of estimates The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company's management evaluates its estimates, including those related to sales allowances and allowance for credit losses, fair value of intangible assets and goodwill, useful lives of intangible assets, fair value of share-based awards, realizability of deferred tax assets, tax uncertainties, and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and liabilities. Financial statements in U.S. dollars The reporting currency of the Company is the U.S. dollar (“USD”). Major parts of the Company’s operations are carried out by the Company and its subsidiaries in the United States and Israel. The functional currency of these entities is the USD . Accordingly, monetary accounts maintained in currencies other than the USD are remeasured into USD, in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses resulting from the re-measurement of the monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate. Management believes that the USD is the currency of the primary economic environment in which the Company operates. The financial statements of other subsidiaries, whose functional currency is determined to be their local currency, have been translated into USD. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for each applicable quarter. The resulting translation adjustments are reported as an accumulated other comprehensive income (loss) component of shareholders' equity. Cash and cash equivalents and short-term deposits T Restricted cash R Accounts receivable and allowance for credit losses Accounts receivables are stated at realizable value, net of an allowance for credit losses. The Company evaluates its outstanding accounts receivable and establishes an allowance for credit losses based on information available on their credit condition, current aging, historical experience and future economic and market conditions. These allowances are reevaluated and adjusted periodically as additional information is available. As of December 31, 2022 and 2021, the Company has recorded an allowance for credit losses in the amounts of $2,134 and $891, respectively. Total expenses for doubtful debts during 2022, 2021 and 2020 amounted to $210, $82 and $323, respectively. Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 - 15 Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and Short-term and long-term operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. The Company elected the practical expedient allowing not to separate the lease and non-lease components for its leases. Intangible assets Intangible assets that are not considered to have finite useful life are amortized over their estimated useful lives. The Customer Relationship, technology and trade name are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such intangible assets as compared to the straight-line method Impairment of long-lived assets, including Right-of-use assets and intangible assets subject to amortization The Company’s long-lived assets (assets group) to be held or used, including property and equipment, right of use assets and intangible assets subject to amortization are reviewed for impairment in accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts of the asset (assets group) to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In determining the fair values of long-lived assets for the purpose of measuring impairment, the Company's assumptions include those that market participants will consider in valuations of similar assets. Following an impairment review of our long-lived assets for 2022, 2021 and 2020, it was concluded that no such impairment charges should be recorded. Goodwill Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment, in accordance with ASC 350, “Intangibles – Goodwill and Other”, at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Any excess of the carrying amount of the reporting unit over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The majority of the inputs used in the discounted cash flow model to determine the fair value of the reporting units are unobservable and thus are considered to be Level 3 inputs. Refer to Note 6 for further information. Business combinations The Company accounted for business combination in accordance with ASC 805, "Business Combinations". 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. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill only for adjustments resulting from facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of income. Acquisition related costs are expensed to the statement of income in the period incurred. Revenue recognition The Company applies the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606" or "Topic 606"). The Company applies the practical expedient for incremental costs of obtaining contracts when the associated revenue is recognized over less than one year. The Company generates revenue primarily from two major sources: Display Advertising Revenue (“Advertising”) - the Company generates advertising revenue from delivering high impact ad formats through different channels – display, social and video/CTV, creatively designed to capture consumer attention and drive engagement, across a hand-picked portfolio of websites and mobile applications. The Company also generates advertising revenue from content optimization solutions and services, which are being recognizes once the advertisement partners serve their advertisement across owned and operated properties as well as those of the Company publishers. In addition, the Company generates revenue from the use of its platform in online media channels which connects video and display advertisements derived from advertising partners to advertising inventory available within its publisher’s network. Search Advertising Revenue (“Search Monetization”) - the Company obtains its search revenue from service agreements with its search partners. Search revenue is generated primarily from monthly transaction volume-based fees earned by the Company for making its applications available to online publishers and app developers on a revenue share basis relative to the revenue generated by the search partners. For more disaggregated information of revenue refer to Note 16. The Company’s payments terms are less than one year. Therefore, no finance component is recognized. The Company evaluates whether Search Monetization and Advertising Revenue should be presented on a gross basis, which is the amount that a customer pays for the service, or on a net basis, which is the amount of the customer payment less amounts the Company pays to publishers. In making that evaluation, the Company considers whether it controls the promised good or service before transferring that good or service to the customer. The Company considers indicators such as whether the Company is the primary obligor in the arrangement Generally, in cases in which the Company controls the specified good or service before it is transferred to a customer, revenue is recorded on a gross basis. Remaining performance obligations (RPOs) represent amounts collected on contracted revenue that have not yet been recognized. As of December 31, 2022, the aggregate amount of the RPOs was $2,377. The Company anticipates that it will satisfy all of its remaining performance obligation associated with the deferred revenue within the prospective fiscal year. Accounts receivable includes amounts billed and currently due from customers. Deferred revenue are recorded when payments are received from customers in advance of the Company's rendering of services. Revenue recognized during 2022 from amounts included within the Deferred revenue balance at the beginning of the period amounted to $3,852. Cost of revenue Cost of revenue consists primarily of expenses associated with the operation of the Company’s server hosting, data verification and targeting, campaign creative, labor, as well as content acquisition costs and customer support. Traffic acquisition costs and media buy Traffic acquisition costs and media buy consist primarily of payments to publishers and developers who distribute the Company’s search properties together with their products, as well as the cost of distributing the Company own products. In addition, media buy costs consist of the costs of advertising inventory incurred to deliver ads. Traffic acquisition costs are primarily based on revenue share agreements with the Company traffic sources and the media buy cost are primarily based on CPC (Cost-per-click) and CPM (Cost-per-thousand), which are charged as incurred. Research and development costs The Company capitalized certain internal and external software development costs, consisting primarily of direct labor associated with creating the internally developed software. During 2021, 2020, depreciation expense for the related capitalized internally developed software in the consolidated statements of income amounted to $1,392, and $3,056, respectively. No expense related to internally developed software incurred in 2022. Research and development costs are charged to the statement of income as incurred. Income taxes The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This Statement prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases 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. To the extent necessary, the Company provides a valuation allowance to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. Severance pay The Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law, 1963 (“Section 14”), where the Company's contributions for severance pay is paid to the employee upon termination instead of the severance liability that would otherwise be payable under the law as aforementioned. Upon contribution to a fund, based on the full amount of the employee's monthly salary, and release of the fund to the employee, no additional severance payments are required to be made by the Company to the employee. Therefore, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from obligation to such employees once the deposit amounts have been paid. Severance expenses for the years ended December 31, 2022, 2021 and 2020 amounted to $2,809, $2,612, and $1,812, respectively. The balances of severance deposits and accrued severance pay are immaterial and included in other assets and other long-term liabilities on the accompanying balance sheets, respectively. Employee benefit plan The Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service’s annual contribution limit. The Company matches up to 100% of each participant’s contributions, up to 4% of employee deferral. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statement of income. Total employer 401(k) contributions for the years ended December 31, 2022, 2021 and 2020 were $865, $683, and $624, respectively. Comprehensive income (loss) The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its other comprehensive income (loss) relates to hedging derivative instruments and foreign currency translation adjustments. Net earnings per share In accordance with ASC 260, "Earnings Per Share", basic net earnings per share ("Basic EPS") is computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net earnings per share ("Diluted EPS") reflects the potential dilution that could occur if share options, restricted shares and other commitments to issue ordinary shares were exercised or equity awards vested, resulting in the issuance of ordinary shares that could share in the net earnings of the Company. The weighted average number of ordinary shares related to the outstanding options, restricted shares, convertible debt and warrants excluded from the calculations of diluted net earnings per ordinary share, as these securities are anti-dilutive, was 456,696 , 1,035,307, and 3,178,024 for the years ended December 31, 2022, 2021 and 2020, respectively. Concentrations of credit risk Financial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents, bank deposits, restricted cash and accounts receivable. The majority of the Company’s cash and cash equivalents, bank deposits and restricted cash are invested in USD instruments with major banks in the U.S. and Israel. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. The Company’s major customers are financially sound, and the Company believes low credit risk is associated with these customers. To date, the Company has not experienced any material credit losses. The allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the Company’s methodology. The Company’s methodology is based on historical collection experience, customer creditworthiness, current and future economic condition, and market condition. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Trade receivables are written off after all reasonable means to collect the full amount have been exhausted. Share-based compensation The . The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. For performance-based share units, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the accelerated attribution method over the requisite service period. The Company reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on its probability assessment. The Company accounted for changes in award terms as a modification in accordance with ASC 718. The Company estimates the fair value of its new share-based awards using the Binomial option-pricing model. The following table presents the various assumptions used to estimate the fair value of the Company's share-based awards granted to employees and directors in the periods presented: Year ended December 31 2022 2021 2020 Risk-free interest rate 1.92% - 4.29% 0.94% - 1.52% 0.29% - 1.60% Expected volatility * 59% - 60% 53% - 59% Early exercise factor 130% - 200% 130% - 200% 110% - 200% Forfeiture rate post vesting 1% - 28% 1% - 27% 0% - 34% Dividend yield 0% 0% 0% *) Only RSUs were granted The expected volatility is calculated based on the actual historical share price movements of the Company’s share. The expected option term represents the period that the Company’s share options are expected to be outstanding. The early exercise factor and the forfeiture rate post-vesting are calculated based on the Company’s estimated early exercise and post-vesting forfeiture multiples, which are based on comparable companies and on actual historical data. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds, with a term which is equivalent to the expected term of the share-based awards. The dividend yield is based on the current decision of the Company’s management not to distribute any dividends. The fair value of restricted share units (“RSU”) is based on the market value of the underlying shares on the date of grant. Derivative instruments The Company accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging", which requires recognizing all derivatives on the balance sheet at fair value. If the derivatives meet the definition of a cash flow hedge and are so designated, depending on the nature of the hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of a derivative’s change in fair value, if any, is recognized in earnings, as well as gains and losses from a derivative’s change in fair value that are not designated as hedges are recognized in earnings immediately. In order to mitigate the potential adverse impact on cash flows resulting from fluctuations in the exchange rate of the new Israeli shekels (“ILS”), the Company hedges portions of its forecasted expenses denominated in ILS with SWAP, forward and options contracts. The Company does not speculate in these hedging instruments in order to profit from foreign currency exchanges, nor does it enter into trades for which there are no underlying exposures. To protect against the increase in value of forecasted foreign currency cash flow resulting mainly from salaries and related benefits paid in ILS during the year, the Company hedges portions of its anticipated payroll denominated in ILS for a period of one to twelve months with forward and options contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the ILS, the decline in present value of future ILS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the USD weakens, the increase in the present value of future ILS expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges. The Company follows the requirements of ASC No. 815, Derivatives and Hedging The notional value of the Company’s derivative instruments designed as hedging instruments as of December 31, 2022 and 2021, amounted to $14,364 and $5,071, respectively. The notional value of the Company’s derivative instruments not designed as hedging instruments as of December 31, 2022 and 2021, amounted to $3,576 and $2,876, respectively. Notional values in USD are translated and calculated based on the spot rates for options and swap. Gross notional amounts do not quantify risk or represent assets or liabilities of the Company; however, they are used in the calculation of settlements under the contracts. Fair value of financial instruments The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash, accounts receivable, and other assets, accounts payable, accrued expenses and other liabilities approximate their fair value due to the short-term maturities of such instruments. The Company follows the provisions of ASC No. 820, “Fair Value Measurement” (“ASC 820”), which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: • Level 1 - Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets. • Level 2 - Other inputs that are directly or indirectly observable in the market place. • Level 3 - Unobservable inputs which are supported by little or no market activity, and unobservable inputs based on the Company's own assumptions used to measure liabilities at fair value. The inputs require significant management judgment or estimation. Treasury shares In the past, the Company repurchased its ordinary shares on the open market. The Company holds the shares as treasury shares and presents their cost as a reduction of shareholders' equity. Recently Accounting Pronouncements - not yet adopted In October 2021 the FASB ASU 2021-08, Topic 805 “Business Combinations” – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The adoption of the new guidance will have an immaterial impact on its consolidated financial statements. |
FAIR VALUE OF FINANCIAL INSTRUM
FAIR VALUE OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUE OF FINANCIAL INSTRUMENTS | NOTE 3: FAIR VALUE OF FINANCIAL INSTRUMENTS The following table present assets and liabilities measured at fair value on a recurring basis as of December 31, 2022: Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets: Derivative assets $ - $ 7 $ - $ 7 Total financial assets $ - $ 7 $ - $ 7 Liabilities: Derivative liabilities $ - $ 239 $ - $ 239 Contingent consideration in connection to the acquisitions *) - - 63,695 63,695 Total financial liabilities $ - $ 239 $ 63,695 $ 63,934 *) See notes 4a and 4c. The following table present assets measured at fair value on a recurring basis as of December 31, 2021: Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets: Derivative assets $ - $ 75 $ - $ 75 Total financial assets $ - $ 75 $ - $ 75 Liabilities: Contingent consideration in connection to the acquisitions $ - $ - $ 63,550 $ 63,550 Total financial liabilities $ - $ - $ 63,550 $ 63,550 |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
ACQUISITIONS | NOTE 4: ACQUISITIONS a. Content IQ LLC On January 14, 2020, the Company consummated the acquisition of Content IQ LLC (“Content IQ”), a privately held company founded in 2014, based in New York City. Content IQ has created data algorithm and analytics tools that deconstruct content, revenue and distribution to solve current major digital publishing challenges. The total consideration for the acquisition was $37,838, comprised of $15,000 paid in cash at closing and a contingent consideration (with a maximum amount of up to $47,050), tied to revenue and EBITDA-based metrics over a period of two years, estimated at fair value of $22,838 on the acquisition date. As of December 31, 2022, the contingent consideration is estimated at fair value of $17,820. The change in fair value of the contingent consideration was recorded to general and administrative expenses. In addition, the acquisition includes a retention-based component of up to $11,000. b. Pub Ocean On July 22, 2020, the Company acquired the net assets of Pub Ocean Limited, also known as “Pub Ocean” (the “Pub Ocean Acquisition"), digital publisher-focused technology company with scalable content distribution and real-time revenue analytics technology. The total consideration for the acquisition was $13,399, comprised of $4,000 paid in cash at closing and a contingent consideration (with a maximum amount of up to $17,000), tied to financial targets over a two-year period, estimated at fair value of $9,399 on the acquisition date. In addition, the acquisition includes a retention-based component of up to $1,000. As of December 31, 2022, the remaining balance of the contingent consideration was settled. In 2022, the change in fair value of the contingent consideration that was recorded to general and administrative expenses was $3,816. c. Vidazoo On October 4, 2021, the Company consummated the acquisition of Vidazoo Ltd., also known as “Vidazoo” (the “Vidazoo Acquisition”), a leading video technology company that enables both advertisers and publishers to deliver high impact content and advertising to consumers. The total consideration for the acquisition was $90,038, comprised of $35,000 paid in cash at closing, contingent consideration (with a maximum amount of up to $58,545), tied to financial targets over a period of 2.25 years, estimated at fair value of $48,903 on the acquisition date, and a net working capital in the amount of $6,135 which will be set-off against collection. As of December 31, 2022, the contingent consideration is estimated at fair value of $45,875. The following table summarizes the allocation of the purchase price consideration as of the acquisition date and the adjustment included in the measurement period adjustment for the transaction noted above: Initially Reported as of December 31, 2021 Measurement Period Adjustment December 31, 2022 Net Assets $ 6,291 $ - $ 6,291 Technology 31,005 5,358 36,363 Customer Relationship 8,194 1,490 9,684 Deferred Taxes (4,704 ) (820 ) (5,524 ) Goodwill 36,962 6,262 43,224 Net assets acquired $ 77,748 $ 12,290 $ 90,038 The initially reported amounts presented in the table above pertained to the preliminary purchase price allocation reported in the Company's 2021 financial statements. The measurement period adjustment was primarily associated with the Goodwill and Intangible Assets and Deferred taxes assets related. Technology Customer relationships |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 5: PROPERTY AND EQUIPMENT, NET December 31, 2022 2021 Cost: Computers and peripheral equipment $ 5,941 $ 7,219 Office furniture and equipment 2,777 2,686 Leasehold improvements 8,400 8,392 Capitalized software 12,473 12,473 Total cost 29,591 30,770 Less: accumulated depreciation and amortization (25,980 ) (26,559 ) Property and equipment, net $ 3,611 $ 4,211 Depreciation expenses related to the Company’s property and equipment totaled to $1,954, $3,022, and $4,662, for the years ended December 31, 2022, 2021 and 2020, respectively. |
GOODWILL AND OTHER INTANGIBLE A
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET | NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS, NET a. Goodwill The changes in the net carrying amount of goodwill in 2022 and 2021 were as follows: Balance as of January 1, 2021 $ 152,303 Acquisition of Vidazoo $ 36,962 Balance as of December 31, 2021 $ 189,265 Vidazoo measurement period adjustments $ 6,262 Balance as of December 31, 2022 $ 195,527 Goodwill has been recorded as a result of prior acquisitions and represents excess of the consideration over the net fair value of the assets of the businesses acquired. As of December 31, 2022, the Company has two reporting units – Display advertising and Search advertising. The Company performs tests for impairment of goodwill at the reporting unit level at least annually, or more frequently if events or changes in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value. No impairment was incurred for the years ended December 31, 2022, 2021 and 2020. b. Intangible assets, net The following is a summary of intangible assets as of December 31, 2022: December 31, 2021 Vidazoo measurement period adjustments Amortization December 31, 2022 Acquired technology $ 84,417 $ 5,358 $ - $ 89,775 Accumulated amortization (31,137 ) - (9,886 ) (41,023 ) Impairment (8,749 ) - - (8,749 ) Acquired technology, net 44,531 5,358 (9,886 ) 40,003 Customer relationships 45,054 1,490 - 46,544 Accumulated amortization (23,218 ) - (1,758 ) (24,976 ) Impairment (10,426 ) - - (10,426 ) Customer relationships, net 11,410 1,490 (1,758 ) 11,142 Tradename and other 18,503 - - 18,503 Accumulated amortization (12,634 ) - (240 ) (12,874 ) Impairment (5,110 ) - - (5,110 ) Tradename and other, net 759 - (240 ) 519 Intangible assets, net $ 56,700 $ 6,848 $ (11,884 ) $ 51,664 The following is a summary of intangible assets as of December 31, 2021: December 31, 2020 Additions Amortization December 31, 2021 Acquired technology $ 53,412 $ 31,005 $ - $ 84,417 Accumulated amortization (25,548 ) - (5,589 ) (31,137 ) Impairment (8,749 ) - - (8,749 ) Acquired technology, net 19,115 31,005 (5,589 ) 44,531 Customer relationships 36,860 8,194 - 45,054 Accumulated amortization (22,161 ) - (1,057 ) (23,218 ) Impairment (10,426 ) - - (10,426 ) Customer relationships, net 4,273 8,194 (1,057 ) 11,410 Tradename and other 18,503 - - 18,503 Accumulated amortization (12,405 ) - (229 ) (12,634 ) Impairment (5,110 ) - - (5,110 ) Tradename and other, net 988 - (229 ) 759 Intangible assets, net $ 24,376 $ 39,199 $ (6,875 ) $ 56,700 The estimated useful life of the intangible assets are as follows: Estimated useful life Acquired technology 4-7 years Customer relationships 5-8 years Tradename and other 4-11 years Amortization of intangible assets, net, in each of the succeeding five years and thereafter is estimated as follows: 2023 $ 12,255 2024 11,718 2025 8,283 2026 6,834 2027 6,590 Thereafter 5,984 $ 51,664 |
ACCRUED EXPENSES AND OTHER LIAB
ACCRUED EXPENSES AND OTHER LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER LIABILITIES | NOTE 7: ACCRUED EXPENSES AND OTHER LIABILITIES December 31, 2022 2021 Employees and payroll accruals $ 20,788 $ 19,597 Obligation related to acquisitions 331 8,725 Government authorities 10,758 6,706 Accrued expenses 5,185 4,560 Other short-term liabilities 807 743 $ 37,869 $ 40,331 |
DERIVATIVES AND HEDGING ACTIVIT
DERIVATIVES AND HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES AND HEDGING ACTIVITES | NOTE 8: DERIVATIVES AND HEDGING ACTIVITIES The fair value of the Company’s outstanding derivative instruments is as follows: December 31, Balance sheet 2022 2021 Derivatives designate as hedging instruments: Foreign exchange forward contracts and other derivatives ''Prepaid expenses and other current assets'' $ 7 $ 75 ''Accrued expenses and other liabilities'' 239 - ''Accumulated other comprehensive income'' (232 ) 75 Derivatives not designated as hedging instruments: Foreign exchange forward contracts and other derivatives ''Prepaid expenses and other current assets'' 18 21 ''Accrued expenses and other liabilities'' $ 31 $ 3 The net amounts reclassified from accumulated other comprehensive loss to the operating expenses are as follows: Gain recognized in Statements of Comprehensive Income Gain (loss) recognized in consolidated statements of Income Year ended Statement of Income Year ended December 31, 2022 2022 2021 2020 Derivatives designated as hedging instruments: Foreign exchange options and forward contracts $ 307 "Operating expenses" $ (948 ) $ 167 $ 764 Derivatives not designated as hedging instruments: Foreign exchange options and forward contracts - "Financial expenses" (75 ) 24 (166 ) Total $ 307 $ (1,023 ) $ 191 $ 598 |
SHORT TERM AND LONG-TERM DEBT
SHORT TERM AND LONG-TERM DEBT | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
SHORT TERM AND LONG-TERM DEBT | NOTE 9: SHORT TERM AND LONG-TERM DEBT On December 17, 2018, ClientConnect Ltd., a former Israeli subsidiary of Perion, which merged into Perion on June 30, 2020, executed a new loan facility, in the amount of $25,000. Proceeds of the loan facility were applied to refinancing of the existing debt as well as the debt of Undertone, a US subsidiary of Perion. On March 8, 2021, the Company early repaid the full amount of its loan facility with bank Mizrachi of a principal amount of $8,333 together with the accumulated interest up to this date as per the agreement. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 10: LEASES In January 2014, the Company entered into a lease agreement for new corporate offices in Holon, Israel. The lease expires in January 2025 In June 2018, Undertone entered into a lease agreement for its office at World Trade Center (WTC) New York. The lease expires in May 2026. Additionally, the Company may choose an early termination in 2024. The Company sublease the office to a sub-tenant which led to a decrease of $344 on the value of its ROU asset. The decrease in ROU asset was recognized in the depreciation expenses. In October 2022, Undertone entered into an additional lease agreement for its office at World Trade Center (WTC) New York. The lease expires in December 2025. Certain other facilities of the Company are rented under operating lease agreements, which expire on various dates, the latest of which is in 2023. The Company recognizes rent expense under such arrangements on a straight-line basis. The following table represents the weighted-average remaining lease term and discount rate: Year ended December 31, 2022 Weighted average remaining lease term 2.94 Years Weighted average discount rate 5.23 % The discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term and location of each lease. Maturities of operating lease liabilities were as follows: Year ending December 31, 2023 $ 4,578 2024 4,588 2025 2,798 2026 777 Total lease payments *) $ 12,741 Less – imputed interest (1,261 ) Present value of lease liabilities $ 11,480 *) Total lease payments have not been reduced by sublease rental payments of $8,907 due in Facilities leasing expenses (net) in the years 2022, 2021 and 2020 were $2,846, $4,441, and $3,493 respectively. Out of which, Sublease income amounted to $2,533, $2,838 and $2,682 in the years 2022, 2021 and 2020, respectively. Cash paid for amounts included in measurement of lease liabilities during the years ended 2022, 2021 and 2020 were $5,880, $8,465, and $6,521, respectively. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11: SHAREHOLDERS' EQUITY a. Ordinary shares The ordinary shares of the Company entitle their holders to voting rights, the right to receive cash dividend and the right to a share in excess assets upon liquidation of the Company. b. Share Options, Restricted Share Units and Warrants In 2003, the Company's Board of Directors approved the 2003 Equity Incentive Plan (the "Plan") for an initial term of ten years from adoption and on December 9, 2012, extended the term of the Plan for an additional ten years, and on November 7, 2022 the Compensation Committee approved to extend the term of the Incentive Plan for an additional period of two years, expiring on December 9, 2024. On August 7, 2013, the Company’s Board of Directors approved amendments to the Plan which include the ability to grant RSUs and restricted shares. The contractual term of the share options is generally no more than seven years and the vesting period of the options and RSUs granted under the Plan is between one As of December 31, 2022, there were 270,923 ordinary shares reserved for future share-based awards under the Plan. The following table summarizes the activities for the Company’s service-based share options and RSUs for the year ended December 31, 2022: Weighted average Number of options and RSUs Exercise price Remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2022 3,574,401 $ 2.46 45.90 $ 77,173 Granted 1,532,548 0.01 - - Exercised (1,824,876 ) 2.19 - 35,811 Cancelled (217,399 ) 2.53 - - Outstanding at December 31, 2022 3,064,674 $ 1.39 59.70 $ 73,284 Exercisable at December 31, 2022 618,230 $ 5.10 3.30 $ 12,488 Vested and expected to vest at December 31, 2022 3,264,763 $ 1.46 0.88 $ 138,673 The weighted-average grant-date fair value of options and RSUs granted during the years ended December 31, 2022, 2021 and 2020 was $20.13, $18.55, and $3.14, respectively. The aggregate intrinsic value of the outstanding service-based equity grants at December 31, 2022, represents the intrinsic value of all outstanding options and RSUs since they were all in-the-money as of such date. The following table summarizes the activities for the Company’s performance-based share options and RSUs for the year ended December 31, 2022: Number of Weighted average Performance based options and RSUs Exercise price Remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2022 903,900 $ 2.37 46.16 $ 19,599 Granted 417,628 0.01 - - Exercised (650,794 ) 2.83 - 12,493 Cancelled (78,223 ) 0.01 - - Outstanding at December 31, 2022 592,511 $ 0.51 70.64 $ 14,690 Exercisable at December 31, 2022 56,250 $ 5.35 4.58 $ 1,122 Vested and expected to vest at December 31, 2022 658,487 $ 0.46 0.39 $ 29,926 The weighted-average grant-date fair value of options and RSUs granted during the year ended December 31, 2022, 2021 and 2020 was $20.58, $20.03 and $3.12, respectively. The aggregate intrinsic value of the outstanding performance-based equity grants at December 31, 2022, represents the intrinsic value of all outstanding options and RSUs since they were all in-the-money as of such date. The number of service-based and performance-based options and RSUs expected to vest reflects an estimated forfeiture rate. The following table summarizes additional information regarding outstanding and exercisable service-based options and RSUs under the Company's Equity Incentive Plan as of December 31, 2022: Outstanding Exercisable Range of exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price $ 0.01 2,323,813 77.65 $ 0.01 - - $ - 2.52 – 3.38 237,699 2.39 3.19 237,699 2.39 3.19 4.23 – 5.90 258,475 3.97 5.21 244,412 3.93 5.18 6.23 – 8.34 180,932 3.18 6.73 105,834 3.32 6.80 $ 12.02 – 21.35 63,755 5.19 14.60 30,285 5.15 13.50 3,064,674 59.70 $ 1.39 618,230 3.30 $ 5.10 The following table summarizes additional information regarding outstanding and exercisable performance-based options and RSUs under the Company's share Option Plan as of December 31, 2022: Outstanding Exercisable Range of exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price $ 0.01 536,261 77.57 $ 0.01 - - $ - $ 5.35 56,250 4.58 5.35 56,250 4.58 5.35 592,511 70.64 $ 0.51 56,250 4.58 $ 5.35 The Company recognized share-based compensation expenses related to its share-based awards in the consolidated statements of operations as follows: Year ended December 31, 2022 2021 2020 Cost of revenue $ 446 $ 171 $ 102 Research and development 2,129 946 887 Selling and marketing 4,528 3,248 1,898 General and administrative 4,467 2,620 1,560 Total $ 11,570 $ 6,985 $ 4,447 As of December 31, 2022, there was $20,654 of unrecognized compensation cost related to outstanding options and RSUs. These amounts are expected to be recognized over a weighted-average period of 1.57 years related to outstanding options and RSUs. To the extent the actual forfeiture rate is different from what has been estimated, share-based compensation related to these awards will differ from the initial expectations. c. As part of the acquisition of Undertone, the Company granted warrants to purchase 66,666 ordinary shares, at a weighted average exercise price of $9.09 per share, to a third-party vendor that provides development services to Undertone. The warrants were exercisable until December 27, 2020 and wasn’t exercised by this date. No expense incurred in 2020. |
FINANCIAL INCOME (EXPENSE), NET
FINANCIAL INCOME (EXPENSE), NET | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
FINANCIAL INCOME (EXPENSE), NET | NOTE 12: FINANCIAL INCOME (EXPENSE), NET Year ended December 31, 2022 2021 2020 Financial income: Interest income $ 4,993 $ 539 $ 287 Other - - 45 $ 4,993 $ 539 $ 332 Financial expense: Foreign currency translation losses $ (264 ) $ (528 ) $ (1,537 ) Interest expense on debts - (119 ) (1,045 ) Bank charges and other (227 ) (473 ) (388 ) $ (491 ) $ (1,120 ) $ (2,970 ) Financial income (expense), net $ 4,502 $ (581 ) $ (2,638 ) |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 13: INCOME TAXES a. Income before taxes on income Income before taxes on income is comprised as follows: Year ended December 31, 2022 2021 2020 Domestic $ 106,634 $ 38,854 $ 12,175 Foreign 7,030 6,461 (2,560 ) Total $ 113,664 $ 45,315 $ 9,615 b. Taxes on income Taxes on income are comprised as follows: Year ended December 31, 2022 2021 2020 Current taxes $ 16,758 $ 7,891 $ 2,498 Taxes in respect of previous years (794 ) 1,476 6 Deferred tax benefit (1,525 ) (2,758 ) (3,114 ) Total $ 14,439 $ 6,609 $ (610 ) Taxes on income by jurisdiction were as follows: Year ended December 31, 2022 2021 2020 Domestic $ 14,378 $ 8,060 $ 1,031 Foreign 61 (1,451 ) (1,641 ) Total $ 14,439 $ 6,609 $ (610 ) Domestic: Current taxes $ 15,938 $ 7,447 $ 1,466 Deferred tax benefit (860 ) (980 ) (984 ) Taxes in respect of previous years (700 ) 1,593 549 Total - Domestic $ 14,378 $ 8,060 $ 1,031 Foreign: Current taxes $ 820 $ 444 $ 1,032 Deferred tax benefit (665 ) (1,778 ) (2,130 ) Taxes in respect of previous years (94 ) (117 ) (543 ) Total - Foreign $ 61 $ (1,451 ) $ (1,641 ) Total income tax expense (benefit) (benefit) $ 14,439 $ 6,609 $ (610 ) c. Deferred Taxes Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities are as follows: December 31, 2022 2021 Deferred tax assets: Net operating loss and other losses carry forwards $ 5,912 $ 4,955 Research and development 3,278 3,629 Intangible assets (3,895 ) (3,251 ) Other temporary differences mainly relating to reserve and allowances 2,943 2,539 Deferred tax assets, before valuation allowance $ 8,238 $ 7,872 Valuation allowance 2,459 2,644 Total deferred tax assets, net $ 5,779 $ 5,228 Domestic: Long term deferred tax liability, net $ (791 ) $ (732 ) $ (791 ) $ (732 ) Foreign: Long term deferred tax asset, net $ 6,570 $ 5,960 $ 6,570 $ 5,960 Total deferred tax asset, net $ 5,779 $ 5,228 The $185 change in the total valuation allowance for the year ended December 31, 2022, relates to the projected utilization of certain operating loss carry-forwards and temporary differences for which a full valuation allowance was previously recorded. d. Reconciliation of the Company’s effective tax rate to the statutory tax rate in Israel A reconciliation between the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual tax expense as reported in the statement of income is as follows: Year ended December 31, 2022 2021 2020 Income before taxes on income $ 113,664 $ 45,315 $ 9,615 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Theoretical tax expense $ 26,143 $ 10,422 $ 2,211 Increase (decrease) in tax expenses resulting from: "Preferred Enterprise" benefits * (11,255 ) (5,610 ) (1,701 ) Non-deductible expenses (229 ) 710 2,409 Tax adjustment in respect of different tax rate of foreign subsidiaries 313 226 228 Deferred taxes related to prior years (55 ) (922 ) (1,576 ) Previous years taxes (136 ) 1,476 (147 ) Change in valuation allowance (185 ) 390 (2,097 ) Other (157 ) (83 ) 63 Taxes on income $ 14,439 $ 6,609 $ (610 ) * Benefit per ordinary share from "Preferred Enterprise" status: Basic $ 0.25 $ 0.16 $ 0.06 Diluted $ 0.23 $ 0.15 $ 0.06 e. Income tax rates Taxable income of Israeli companies was generally subject to corporate tax at the rate of 23% in 2022, 2021 and 2020. However, the effective tax rate payable by a company that derives income from a Preferred Enterprise or a Preferred Technological Enterprise (as discussed below) may be considerably lower. Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. Deferred taxes were not provided for undistributed earnings of the Company’s foreign subsidiaries. Currently, the Company does not intend to distribute any amounts of its undistributed earnings as dividends. Accordingly, no deferred income taxes have been provided in respect of these subsidiaries. If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. The amount of undistributed earnings of foreign subsidiaries is immaterial. f. Law for the Encouragement of Capital Investments, 1959 The Law for Encouragement of Capital Investments, 1959 (the "Investment Law") provides tax benefits for Israeli companies meeting certain requirements and criteria. The Investment Law has undergone certain amendments and reforms in recent years. The Israeli parliament enacted a reform to the Investment Law, effective January 2011 (which was amended in August 2013). According to the reform, a flat rate tax applies to Preferred Income of companies eligible for the "Preferred Enterprise" status. In order to be eligible for Preferred Enterprise status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive factor for the gross domestic product. The Company’s Israeli operations elected “Preferred Enterprise” status, starting in 2011. Benefits granted to a Preferred Enterprise include reduced tax rates. As part of the Economic Efficiency Law (Legislative Amendments for Accomplishment of Budgetary Targets for Budget Years 2017-2018), 5777-2016, the tax rate is 16% for all areas other than Development Area A (which was 7.5% from 2017 onward). A distribution from a Preferred Enterprise out of the "Preferred Income" would be subject to 20% withholding tax for Israeli-resident individuals and non-Israeli residents (subject to applicable treaty rates), for dividends which are distributed on or after January 1, 2014 and from “Preferred Income” that was produced or accrued after such date. A distribution from a Preferred Enterprise out of the "Preferred Income" would be exempt from withholding tax for an Israeli-resident company. g. Technological Enterprise Incentives Regime (Amendment 73 to the Investment Law) In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments ("Amendment 73") was published and came into effect in May 2017. According to Amendment 73, a Preferred Technological Enterprise, as defined in Amendment 73, with total consolidated revenue of less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred Technological Enterprise certain criteria must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenue derived from exports. Any dividends distributed from income from the preferred technological enterprises will be subject to tax at a rate of 20%. Amendment 73 further provides that, in certain circumstances, a dividend distributed to a foreign corporate shareholder, would be subject to a 4% tax rate (if the percentage of foreign shareholders exceeds 90%). The Company assessed the criteria for qualifying as a “Preferred Technological Enterprise,” status and concluded that the Company and certain of its Israeli subsidiaries are eligible to the above-mentioned benefits. h. Uncertain tax positions A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: December 31, 2022 2021 Balance at the beginning of the year $ 6,928 $ 4,525 Increase (decrease) related to prior year tax positions, net (590 ) 1,285 Increase related to current year tax positions, net 3,062 1,118 Balance at the end of the year $ 9,400 $ 6,928 In 2022, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in tax expenses. The Company had $975 and $834 for the payment of interest and penalties accrued at December 31, 2022, and 2021, respectively which are included in the balance at the end of the year. The Company does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which are difficult to estimate. The Company believes that it has adequately provided for any reasonably foreseeable outcome related to tax audits and settlements, although the final tax outcome of its tax audits could be different from that which is reflected in the Company's income tax provisions and accruals. Such differences could have a material effect on the Company's income tax provision and net income in the period in which such determination is made. The Company’s tax assessments in Israel and the U.S. Federal for tax years prior to 2017 and 2018 respectively are considered final. The Company has net operating losses in the U.S. from prior tax periods beginning in 2015 which may be subject to examination upon utilization in future tax periods i. Tax loss carry-forwards As of December 31, 2022, the Company’s U.S. subsidiaries have Federal net operating loss carry-forwards of $11,842 and States net operating loss carry-forwards of $11,898. Net operating losses generated in fiscal years prior to 2018 in the U.S. may be carried forward through periods which will expire in 2035 As of December 31, 2022, the Company’s European subsidiaries have net operating loss carry-forwards of $5,970 which may be carried forward indefinitely. The Company has accumulated net operating losses for Israeli tax purposes as of December 31, 2022, in the amount of approximately $5,119 which may be carried forward and offset against taxable income in the future for an indefinite period. The net operating losses may be offset against taxable income annually with a limitation of up to 20% of the total accumulated losses but not more than 50% of the Company's taxable income. The limitation applies during the years 2020-2024. In addition, the Company has accumulated capital losses for tax purposes as of December 31, 2022, of approximately $1,396, which may be carried forward and offset against taxable capital gains in the future for an indefinite period, but are limited as stated above. j. US Tax: In March 2020, in response to the COVID-19 pandemic the Coronavirus Aid, Relief and Economic Security (“CARES”) Act was enacted. The CARES Act comprises a spending package and tax reliefs in order to reduce the impact of the pandemic. The tax portion of the CARES Act includes several corporate tax relief provisions such as: eliminating the taxable income limitation and allowing carryback to the prior 5 years for net operating losses (“NOLs”) arising in 2018, 2019 and 2020; increasing the business interest deduction limitation from 30% to 50%; accelerated refunds of AMT credits and other provisions. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 14: EARNINGS PER SHARE The table below presents the computation of basic and diluted net earnings per common share: Year ended December 31, 2022 2021 2020 Numerator: Net income attributable to ordinary shares – basic and diluted $ 99,225 $ 38,706 $ 10,225 Denominator: Number of ordinary shares outstanding during the year 44,871,149 34,397,134 26,687,145 Weighted average effect of dilutive securities: Employee options and restricted share units 3,200,489 3,432,591 2,110,602 Diluted number of ordinary shares outstanding 48,071,638 37,829,725 28,797,747 Basic net earnings per ordinary share $ 2.21 $ 1.13 $ 0.38 Diluted net earnings per ordinary share $ 2.06 $ 1.02 $ 0.36 Potential ordinary shares equivalents excluded because their effect would have been anti-dilutive 456,696 1,035,307 3,178,024 |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
MAJOR CUSTOMERS | NOTE 15: MAJOR CUSTOMERS A substantial portion of the Company's revenue is derived from search fees and online advertising, the market for which is highly competitive and rapidly changing. Significant changes in this industry or in customer buying behavior would adversely affect the Company’s operating results. The following table sets forth the customers that represent 10% or more of the Company’s total revenue in each of the years presented below: Year ended December 31, 2022 2021 2020 Customer A 35 % 37 % 51 % |
GEOGRAPHIC INFORMATION
GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
GEOGRAPHIC INFORMATION | NOTE 16: GEOGRAPHIC INFORMATION The Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial information is evaluated regularly by the Chief Operating Decision Maker, who is the Chief Executive Officer, in deciding how to allocate resources and assessing performance. Over the past few years, the Company has completed several acquisitions. These acquisitions have allowed the Company to expand its offerings, presence and reach in various markets. While the Company has offerings in multiple enterprise markets, the Company’s business operates in one segment which is the High Impact Advertising solutions, and the Company’s Chief Operating Decision Maker evaluates the Company’s financial information and resources and assesses the performance of these resources on a consolidated basis. The following table presents the total revenue for the years ended December 31, 2022, 2021 and 2020, allocated to the geographic areas in which they were generated: Year ended December 31, 2022 2021 2020 North America (mainly U.S.) $ 561,959 $ 423,571 $ 272,220 Europe 69,019 48,109 49,222 Other 9,278 6,818 6,621 $ 640,256 $ 478,498 $ 328,063 The total revenue are attributed to geographic areas based on the location of the end-users. The following table presents the locations of the Company’s long-lived assets as of December 31, 2022 and 2021: December 31, 2022 2021 Israel $ 6,176 $ 8,049 U.S. 7,427 7,524 Europe 138 216 $ 13,741 $ 15,789 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of consolidation | Basis of consolidation The consolidated financial statements include the accounts of Perion and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated. |
Use of estimates | Use of estimates The preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”) requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company's management evaluates its estimates, including those related to sales allowances and allowance for credit losses, fair value of intangible assets and goodwill, useful lives of intangible assets, fair value of share-based awards, realizability of deferred tax assets, tax uncertainties, and contingent liabilities, among others. Such estimates are based on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and liabilities. |
Financial statements in U.S. dollars | Financial statements in U.S. dollars The reporting currency of the Company is the U.S. dollar (“USD”). Major parts of the Company’s operations are carried out by the Company and its subsidiaries in the United States and Israel. The functional currency of these entities is the USD . Accordingly, monetary accounts maintained in currencies other than the USD are remeasured into USD, in accordance with ASC 830, "Foreign Currency Matters". All transaction gains and losses resulting from the re-measurement of the monetary balance sheet items are reflected in the statements of income as financial income or expenses, as appropriate. Management believes that the USD is the currency of the primary economic environment in which the Company operates. The financial statements of other subsidiaries, whose functional currency is determined to be their local currency, have been translated into USD. All balance sheet accounts have been translated using the exchange rates in effect at the balance sheet date. Statement of operations amounts have been translated using the average exchange rate for each applicable quarter. The resulting translation adjustments are reported as an accumulated other comprehensive income (loss) component of shareholders' equity. |
Cash and cash equivalents and short-term deposits | Cash and cash equivalents and short-term deposits T |
Restricted cash | Restricted cash R |
Accounts receivable and allowance for credit losses | Accounts receivable and allowance for credit losses Accounts receivables are stated at realizable value, net of an allowance for credit losses. The Company evaluates its outstanding accounts receivable and establishes an allowance for credit losses based on information available on their credit condition, current aging, historical experience and future economic and market conditions. These allowances are reevaluated and adjusted periodically as additional information is available. As of December 31, 2022 and 2021, the Company has recorded an allowance for credit losses in the amounts of $2,134 and $891, respectively. Total expenses for doubtful debts during 2022, 2021 and 2020 amounted to $210, $82 and $323, respectively. |
Property and equipment | Property and equipment Property and equipment are stated at cost, net of accumulated depreciation and amortization. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers and peripheral equipment 33 Office furniture and equipment 6 - 15 Leasehold improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the improvements, whichever is shorter. |
Leases | Leases The Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, and Short-term and long-term operating lease liabilities in the Company’s consolidated balance sheets. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. The Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. The operating lease ROU asset also includes any lease payments made and excludes lease incentives. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expenses for lease payments are recognized on a straight-line basis over the lease term. The Company elected the practical expedient allowing not to separate the lease and non-lease components for its leases. |
Intangible assets | Intangible assets Intangible assets that are not considered to have finite useful life are amortized over their estimated useful lives. The Customer Relationship, technology and trade name are amortized over their estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated amortization of such intangible assets as compared to the straight-line method |
Impairment of long-lived assets, including Right-of-use assets and intangible assets subject to amortization | Impairment of long-lived assets, including Right-of-use assets and intangible assets subject to amortization The Company’s long-lived assets (assets group) to be held or used, including property and equipment, right of use assets and intangible assets subject to amortization are reviewed for impairment in accordance with ASC 360, "Accounting for the Impairment or Disposal of Long-Lived Assets", whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts of the asset (assets group) to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be impaired, the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value. In determining the fair values of long-lived assets for the purpose of measuring impairment, the Company's assumptions include those that market participants will consider in valuations of similar assets. Following an impairment review of our long-lived assets for 2022, 2021 and 2020, it was concluded that no such impairment charges should be recorded. |
Goodwill | Goodwill Goodwill reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but instead is tested for impairment, in accordance with ASC 350, “Intangibles – Goodwill and Other”, at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate that the carrying value may be impaired. Any excess of the carrying amount of the reporting unit over its fair value is recognized as an impairment loss, and the carrying value of goodwill is written down to fair value. The majority of the inputs used in the discounted cash flow model to determine the fair value of the reporting units are unobservable and thus are considered to be Level 3 inputs. Refer to Note 6 for further information. |
Business combinations | Business combinations The Company accounted for business combination in accordance with ASC 805, "Business Combinations". 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. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments to the assets acquired and liabilities assumed, with a corresponding offset to goodwill only for adjustments resulting from facts and circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated statements of income. Acquisition related costs are expensed to the statement of income in the period incurred. |
Revenue recognition | Revenue recognition The Company applies the provisions of Accounting Standards Codification 606, Revenue from Contracts with Customers ("ASC 606" or "Topic 606"). The Company applies the practical expedient for incremental costs of obtaining contracts when the associated revenue is recognized over less than one year. The Company generates revenue primarily from two major sources: Display Advertising Revenue (“Advertising”) - the Company generates advertising revenue from delivering high impact ad formats through different channels – display, social and video/CTV, creatively designed to capture consumer attention and drive engagement, across a hand-picked portfolio of websites and mobile applications. The Company also generates advertising revenue from content optimization solutions and services, which are being recognizes once the advertisement partners serve their advertisement across owned and operated properties as well as those of the Company publishers. In addition, the Company generates revenue from the use of its platform in online media channels which connects video and display advertisements derived from advertising partners to advertising inventory available within its publisher’s network. Search Advertising Revenue (“Search Monetization”) - the Company obtains its search revenue from service agreements with its search partners. Search revenue is generated primarily from monthly transaction volume-based fees earned by the Company for making its applications available to online publishers and app developers on a revenue share basis relative to the revenue generated by the search partners. For more disaggregated information of revenue refer to Note 16. The Company’s payments terms are less than one year. Therefore, no finance component is recognized. The Company evaluates whether Search Monetization and Advertising Revenue should be presented on a gross basis, which is the amount that a customer pays for the service, or on a net basis, which is the amount of the customer payment less amounts the Company pays to publishers. In making that evaluation, the Company considers whether it controls the promised good or service before transferring that good or service to the customer. The Company considers indicators such as whether the Company is the primary obligor in the arrangement Generally, in cases in which the Company controls the specified good or service before it is transferred to a customer, revenue is recorded on a gross basis. Remaining performance obligations (RPOs) represent amounts collected on contracted revenue that have not yet been recognized. As of December 31, 2022, the aggregate amount of the RPOs was $2,377. The Company anticipates that it will satisfy all of its remaining performance obligation associated with the deferred revenue within the prospective fiscal year. Accounts receivable includes amounts billed and currently due from customers. Deferred revenue are recorded when payments are received from customers in advance of the Company's rendering of services. Revenue recognized during 2022 from amounts included within the Deferred revenue balance at the beginning of the period amounted to $3,852. |
Cost of revenue | Cost of revenue Cost of revenue consists primarily of expenses associated with the operation of the Company’s server hosting, data verification and targeting, campaign creative, labor, as well as content acquisition costs and customer support. |
Traffic acquisition costs and media buy | Traffic acquisition costs and media buy Traffic acquisition costs and media buy consist primarily of payments to publishers and developers who distribute the Company’s search properties together with their products, as well as the cost of distributing the Company own products. In addition, media buy costs consist of the costs of advertising inventory incurred to deliver ads. Traffic acquisition costs are primarily based on revenue share agreements with the Company traffic sources and the media buy cost are primarily based on CPC (Cost-per-click) and CPM (Cost-per-thousand), which are charged as incurred. |
Research and development costs | Research and development costs The Company capitalized certain internal and external software development costs, consisting primarily of direct labor associated with creating the internally developed software. During 2021, 2020, depreciation expense for the related capitalized internally developed software in the consolidated statements of income amounted to $1,392, and $3,056, respectively. No expense related to internally developed software incurred in 2022. Research and development costs are charged to the statement of income as incurred. |
Income taxes | Income taxes The Company accounts for income taxes in accordance with ASC 740, "Income Taxes". This Statement prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases 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. To the extent necessary, the Company provides a valuation allowance to reduce deferred tax assets to their estimated realizable value. The Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach for recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. |
Severance pay | Severance pay The Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law, 1963 (“Section 14”), where the Company's contributions for severance pay is paid to the employee upon termination instead of the severance liability that would otherwise be payable under the law as aforementioned. Upon contribution to a fund, based on the full amount of the employee's monthly salary, and release of the fund to the employee, no additional severance payments are required to be made by the Company to the employee. Therefore, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company is legally released from obligation to such employees once the deposit amounts have been paid. Severance expenses for the years ended December 31, 2022, 2021 and 2020 amounted to $2,809, $2,612, and $1,812, respectively. The balances of severance deposits and accrued severance pay are immaterial and included in other assets and other long-term liabilities on the accompanying balance sheets, respectively. |
Employee benefit plan | Employee benefit plan The Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings, up to the Internal Revenue Service’s annual contribution limit. The Company matches up to 100% of each participant’s contributions, up to 4% of employee deferral. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated statement of income. Total employer 401(k) contributions for the years ended December 31, 2022, 2021 and 2020 were $865, $683, and $624, respectively. |
Comprehensive income (loss) | Comprehensive income (loss) The Company accounts for comprehensive income (loss) in accordance with ASC 220, "Comprehensive Income". This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to, shareholders. The Company determined that its other comprehensive income (loss) relates to hedging derivative instruments and foreign currency translation adjustments. |
Net earnings per share | Net earnings per share In accordance with ASC 260, "Earnings Per Share", basic net earnings per share ("Basic EPS") is computed by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the period. Diluted net earnings per share ("Diluted EPS") reflects the potential dilution that could occur if share options, restricted shares and other commitments to issue ordinary shares were exercised or equity awards vested, resulting in the issuance of ordinary shares that could share in the net earnings of the Company. The weighted average number of ordinary shares related to the outstanding options, restricted shares, convertible debt and warrants excluded from the calculations of diluted net earnings per ordinary share, as these securities are anti-dilutive, was 456,696 , 1,035,307, and 3,178,024 for the years ended December 31, 2022, 2021 and 2020, respectively. |
Concentrations of credit risk | Concentrations of credit risk Financial instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents, bank deposits, restricted cash and accounts receivable. The majority of the Company’s cash and cash equivalents, bank deposits and restricted cash are invested in USD instruments with major banks in the U.S. and Israel. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk. The Company’s major customers are financially sound, and the Company believes low credit risk is associated with these customers. To date, the Company has not experienced any material credit losses. The allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based on the Company’s methodology. The Company’s methodology is based on historical collection experience, customer creditworthiness, current and future economic condition, and market condition. Additionally, specific allowance amounts are established to record the appropriate provision for customers that have a higher probability of default. Trade receivables are written off after all reasonable means to collect the full amount have been exhausted. |
Share-based compensation | Share-based compensation The . The Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are based on actual historical pre-vesting forfeitures. For performance-based share units, the Company recognizes compensation expenses for the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on the accelerated attribution method over the requisite service period. The Company reassess the probability of vesting at each reporting period for awards with performance conditions and adjust compensation cost based on its probability assessment. The Company accounted for changes in award terms as a modification in accordance with ASC 718. The Company estimates the fair value of its new share-based awards using the Binomial option-pricing model. The following table presents the various assumptions used to estimate the fair value of the Company's share-based awards granted to employees and directors in the periods presented: Year ended December 31 2022 2021 2020 Risk-free interest rate 1.92% - 4.29% 0.94% - 1.52% 0.29% - 1.60% Expected volatility * 59% - 60% 53% - 59% Early exercise factor 130% - 200% 130% - 200% 110% - 200% Forfeiture rate post vesting 1% - 28% 1% - 27% 0% - 34% Dividend yield 0% 0% 0% *) Only RSUs were granted The expected volatility is calculated based on the actual historical share price movements of the Company’s share. The expected option term represents the period that the Company’s share options are expected to be outstanding. The early exercise factor and the forfeiture rate post-vesting are calculated based on the Company’s estimated early exercise and post-vesting forfeiture multiples, which are based on comparable companies and on actual historical data. The risk-free interest rate is based on the yield from U.S. Treasury zero-coupon bonds, with a term which is equivalent to the expected term of the share-based awards. The dividend yield is based on the current decision of the Company’s management not to distribute any dividends. The fair value of restricted share units (“RSU”) is based on the market value of the underlying shares on the date of grant. |
Derivative instruments | Derivative instruments The Company accounts for derivatives and hedging based on ASC 815, "Derivatives and Hedging", which requires recognizing all derivatives on the balance sheet at fair value. If the derivatives meet the definition of a cash flow hedge and are so designated, depending on the nature of the hedge, the effective portion of the gain or loss on the derivative is reported as a component of other comprehensive income and reclassified into earnings in the same period, or periods, during which the hedged transaction affects earnings. The ineffective portion of a derivative’s change in fair value, if any, is recognized in earnings, as well as gains and losses from a derivative’s change in fair value that are not designated as hedges are recognized in earnings immediately. In order to mitigate the potential adverse impact on cash flows resulting from fluctuations in the exchange rate of the new Israeli shekels (“ILS”), the Company hedges portions of its forecasted expenses denominated in ILS with SWAP, forward and options contracts. The Company does not speculate in these hedging instruments in order to profit from foreign currency exchanges, nor does it enter into trades for which there are no underlying exposures. To protect against the increase in value of forecasted foreign currency cash flow resulting mainly from salaries and related benefits paid in ILS during the year, the Company hedges portions of its anticipated payroll denominated in ILS for a period of one to twelve months with forward and options contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the ILS, the decline in present value of future ILS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely, when the USD weakens, the increase in the present value of future ILS expenses is offset by gains in the fair value of the Hedging Contracts. These Hedging Contracts are designated as cash flow hedges. The Company follows the requirements of ASC No. 815, Derivatives and Hedging The notional value of the Company’s derivative instruments designed as hedging instruments as of December 31, 2022 and 2021, amounted to $14,364 and $5,071, respectively. The notional value of the Company’s derivative instruments not designed as hedging instruments as of December 31, 2022 and 2021, amounted to $3,576 and $2,876, respectively. Notional values in USD are translated and calculated based on the spot rates for options and swap. Gross notional amounts do not quantify risk or represent assets or liabilities of the Company; however, they are used in the calculation of settlements under the contracts. |
Fair value of financial instruments | Fair value of financial instruments The carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash, accounts receivable, and other assets, accounts payable, accrued expenses and other liabilities approximate their fair value due to the short-term maturities of such instruments. The Company follows the provisions of ASC No. 820, “Fair Value Measurement” (“ASC 820”), which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants would use in pricing an asset or liability, based on the best information available under given circumstances. The hierarchy is broken down into three levels, based on the observability of inputs and assumptions, as follows: • Level 1 - Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets. • Level 2 - Other inputs that are directly or indirectly observable in the market place. • Level 3 - Unobservable inputs which are supported by little or no market activity, and unobservable inputs based on the Company's own assumptions used to measure liabilities at fair value. The inputs require significant management judgment or estimation. |
Treasury shares | Treasury shares In the past, the Company repurchased its ordinary shares on the open market. The Company holds the shares as treasury shares and presents their cost as a reduction of shareholders' equity. |
Recently Accounting Pronouncements - not yet adopted | Recently Accounting Pronouncements - not yet adopted In October 2021 the FASB ASU 2021-08, Topic 805 “Business Combinations” – Accounting for Contract Assets and Contract Liabilities from Contracts with Customers. The amendments in this update require that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with Topic 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with Topic 606 as if it had originated the contracts. To achieve this, an acquirer may assess how the acquiree applied Topic 606 to determine what to record for the acquired revenue contracts. The amendments in this update are effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years, and early adoption is permitted. The adoption of the new guidance will have an immaterial impact on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives at an annual rate | % Computers and peripheral equipment 33 Office furniture and equipment 6 - 15 |
Schedule of assumptions used to estimate the fair value of the stock-based awards granted to employees and directors | Year ended December 31 2022 2021 2020 Risk-free interest rate 1.92% - 4.29% 0.94% - 1.52% 0.29% - 1.60% Expected volatility * 59% - 60% 53% - 59% Early exercise factor 130% - 200% 130% - 200% 110% - 200% Forfeiture rate post vesting 1% - 28% 1% - 27% 0% - 34% Dividend yield 0% 0% 0% *) Only RSUs were granted |
FAIR VALUE OF FINANCIAL INSTR_2
FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Schedule of fair value measurements | The following table present assets and liabilities measured at fair value on a recurring basis as of December 31, 2022: Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets: Derivative assets $ - $ 7 $ - $ 7 Total financial assets $ - $ 7 $ - $ 7 Liabilities: Derivative liabilities $ - $ 239 $ - $ 239 Contingent consideration in connection to the acquisitions *) - - 63,695 63,695 Total financial liabilities $ - $ 239 $ 63,695 $ 63,934 *) See notes 4a and 4c. The following table present assets measured at fair value on a recurring basis as of December 31, 2021: Fair value measurements using input type Level 1 Level 2 Level 3 Total Assets: Derivative assets $ - $ 75 $ - $ 75 Total financial assets $ - $ 75 $ - $ 75 Liabilities: Contingent consideration in connection to the acquisitions $ - $ - $ 63,550 $ 63,550 Total financial liabilities $ - $ - $ 63,550 $ 63,550 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combinations [Abstract] | |
Schedule of assets acquired and liabilities assumed | Initially Reported as of December 31, 2021 Measurement Period Adjustment December 31, 2022 Net Assets $ 6,291 $ - $ 6,291 Technology 31,005 5,358 36,363 Customer Relationship 8,194 1,490 9,684 Deferred Taxes (4,704 ) (820 ) (5,524 ) Goodwill 36,962 6,262 43,224 Net assets acquired $ 77,748 $ 12,290 $ 90,038 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property and equipment | December 31, 2022 2021 Cost: Computers and peripheral equipment $ 5,941 $ 7,219 Office furniture and equipment 2,777 2,686 Leasehold improvements 8,400 8,392 Capitalized software 12,473 12,473 Total cost 29,591 30,770 Less: accumulated depreciation and amortization (25,980 ) (26,559 ) Property and equipment, net $ 3,611 $ 4,211 |
GOODWILL AND OTHER INTANGIBLE_2
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | Balance as of January 1, 2021 $ 152,303 Acquisition of Vidazoo $ 36,962 Balance as of December 31, 2021 $ 189,265 Vidazoo measurement period adjustments $ 6,262 Balance as of December 31, 2022 $ 195,527 |
Schedule of intangible assets | The following is a summary of intangible assets as of December 31, 2022: December 31, 2021 Vidazoo measurement period adjustments Amortization December 31, 2022 Acquired technology $ 84,417 $ 5,358 $ - $ 89,775 Accumulated amortization (31,137 ) - (9,886 ) (41,023 ) Impairment (8,749 ) - - (8,749 ) Acquired technology, net 44,531 5,358 (9,886 ) 40,003 Customer relationships 45,054 1,490 - 46,544 Accumulated amortization (23,218 ) - (1,758 ) (24,976 ) Impairment (10,426 ) - - (10,426 ) Customer relationships, net 11,410 1,490 (1,758 ) 11,142 Tradename and other 18,503 - - 18,503 Accumulated amortization (12,634 ) - (240 ) (12,874 ) Impairment (5,110 ) - - (5,110 ) Tradename and other, net 759 - (240 ) 519 Intangible assets, net $ 56,700 $ 6,848 $ (11,884 ) $ 51,664 The following is a summary of intangible assets as of December 31, 2021: December 31, 2020 Additions Amortization December 31, 2021 Acquired technology $ 53,412 $ 31,005 $ - $ 84,417 Accumulated amortization (25,548 ) - (5,589 ) (31,137 ) Impairment (8,749 ) - - (8,749 ) Acquired technology, net 19,115 31,005 (5,589 ) 44,531 Customer relationships 36,860 8,194 - 45,054 Accumulated amortization (22,161 ) - (1,057 ) (23,218 ) Impairment (10,426 ) - - (10,426 ) Customer relationships, net 4,273 8,194 (1,057 ) 11,410 Tradename and other 18,503 - - 18,503 Accumulated amortization (12,405 ) - (229 ) (12,634 ) Impairment (5,110 ) - - (5,110 ) Tradename and other, net 988 - (229 ) 759 Intangible assets, net $ 24,376 $ 39,199 $ (6,875 ) $ 56,700 |
Schedule of estimated useful life of the intangible assets | Estimated useful life Acquired technology 4-7 years Customer relationships 5-8 years Tradename and other 4-11 years |
Schedule of estimated future amortization expense | 2023 $ 12,255 2024 11,718 2025 8,283 2026 6,834 2027 6,590 Thereafter 5,984 $ 51,664 |
ACCRUED EXPENSES AND OTHER LI_2
ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Schedule of accrued expenses and other liabilities | December 31, 2022 2021 Employees and payroll accruals $ 20,788 $ 19,597 Obligation related to acquisitions 331 8,725 Government authorities 10,758 6,706 Accrued expenses 5,185 4,560 Other short-term liabilities 807 743 $ 37,869 $ 40,331 |
DERIVATIVES AND HEDGING ACTIV_2
DERIVATIVES AND HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of net amounts reclassified from accumulated other comprehensive loss to the operating expenses | The fair value of the Company’s outstanding derivative instruments is as follows: December 31, Balance sheet 2022 2021 Derivatives designate as hedging instruments: Foreign exchange forward contracts and other derivatives ''Prepaid expenses and other current assets'' $ 7 $ 75 ''Accrued expenses and other liabilities'' 239 - ''Accumulated other comprehensive income'' (232 ) 75 Derivatives not designated as hedging instruments: Foreign exchange forward contracts and other derivatives ''Prepaid expenses and other current assets'' 18 21 ''Accrued expenses and other liabilities'' $ 31 $ 3 The net amounts reclassified from accumulated other comprehensive loss to the operating expenses are as follows: Gain recognized in Statements of Comprehensive Income Gain (loss) recognized in consolidated statements of Income Year ended Statement of Income Year ended December 31, 2022 2022 2021 2020 Derivatives designated as hedging instruments: Foreign exchange options and forward contracts $ 307 "Operating expenses" $ (948 ) $ 167 $ 764 Derivatives not designated as hedging instruments: Foreign exchange options and forward contracts - "Financial expenses" (75 ) 24 (166 ) Total $ 307 $ (1,023 ) $ 191 $ 598 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Disclosure [Abstract] | |
Schedule of weighted-average remaining lease term and discount rate | Year ended December 31, 2022 Weighted average remaining lease term 2.94 Years Weighted average discount rate 5.23 % |
Schedule of maturities of operating lease liabilities | Year ending December 31, 2023 $ 4,578 2024 4,588 2025 2,798 2026 777 Total lease payments *) $ 12,741 Less – imputed interest (1,261 ) Present value of lease liabilities $ 11,480 *) Total lease payments have not been reduced by sublease rental payments of $8,907 due in |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | Weighted average Number of options and RSUs Exercise price Remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2022 3,574,401 $ 2.46 45.90 $ 77,173 Granted 1,532,548 0.01 - - Exercised (1,824,876 ) 2.19 - 35,811 Cancelled (217,399 ) 2.53 - - Outstanding at December 31, 2022 3,064,674 $ 1.39 59.70 $ 73,284 Exercisable at December 31, 2022 618,230 $ 5.10 3.30 $ 12,488 Vested and expected to vest at December 31, 2022 3,264,763 $ 1.46 0.88 $ 138,673 |
Schedule of option activity by price range | Outstanding Exercisable Range of exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price $ 0.01 2,323,813 77.65 $ 0.01 - - $ - 2.52 – 3.38 237,699 2.39 3.19 237,699 2.39 3.19 4.23 – 5.90 258,475 3.97 5.21 244,412 3.93 5.18 6.23 – 8.34 180,932 3.18 6.73 105,834 3.32 6.80 $ 12.02 – 21.35 63,755 5.19 14.60 30,285 5.15 13.50 3,064,674 59.70 $ 1.39 618,230 3.30 $ 5.10 |
Schedule of stock-based compensation expense | Year ended December 31, 2022 2021 2020 Cost of revenue $ 446 $ 171 $ 102 Research and development 2,129 946 887 Selling and marketing 4,528 3,248 1,898 General and administrative 4,467 2,620 1,560 Total $ 11,570 $ 6,985 $ 4,447 |
Performance Based Stock Options Member | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Schedule of stock option activity | Number of Weighted average Performance based options and RSUs Exercise price Remaining contractual term (in years) Aggregate intrinsic value Outstanding at January 1, 2022 903,900 $ 2.37 46.16 $ 19,599 Granted 417,628 0.01 - - Exercised (650,794 ) 2.83 - 12,493 Cancelled (78,223 ) 0.01 - - Outstanding at December 31, 2022 592,511 $ 0.51 70.64 $ 14,690 Exercisable at December 31, 2022 56,250 $ 5.35 4.58 $ 1,122 Vested and expected to vest at December 31, 2022 658,487 $ 0.46 0.39 $ 29,926 |
Schedule of option activity by price range | Outstanding Exercisable Range of exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price Number of options and RSUs Weighted average remaining contractual life (years) Weighted average exercise price $ 0.01 536,261 77.57 $ 0.01 - - $ - $ 5.35 56,250 4.58 5.35 56,250 4.58 5.35 592,511 70.64 $ 0.51 56,250 4.58 $ 5.35 |
FINANCIAL INCOME (EXPENSE), N_2
FINANCIAL INCOME (EXPENSE), NET (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of financial income (expense), net | Year ended December 31, 2022 2021 2020 Financial income: Interest income $ 4,993 $ 539 $ 287 Other - - 45 $ 4,993 $ 539 $ 332 Financial expense: Foreign currency translation losses $ (264 ) $ (528 ) $ (1,537 ) Interest expense on debts - (119 ) (1,045 ) Bank charges and other (227 ) (473 ) (388 ) $ (491 ) $ (1,120 ) $ (2,970 ) Financial income (expense), net $ 4,502 $ (581 ) $ (2,638 ) |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of income (loss) before taxes | Year ended December 31, 2022 2021 2020 Domestic $ 106,634 $ 38,854 $ 12,175 Foreign 7,030 6,461 (2,560 ) Total $ 113,664 $ 45,315 $ 9,615 |
Schedule of income taxes | Year ended December 31, 2022 2021 2020 Current taxes $ 16,758 $ 7,891 $ 2,498 Taxes in respect of previous years (794 ) 1,476 6 Deferred tax benefit (1,525 ) (2,758 ) (3,114 ) Total $ 14,439 $ 6,609 $ (610 ) |
Schedule of income taxes by jurisdiction | Year ended December 31, 2022 2021 2020 Domestic $ 14,378 $ 8,060 $ 1,031 Foreign 61 (1,451 ) (1,641 ) Total $ 14,439 $ 6,609 $ (610 ) Domestic: Current taxes $ 15,938 $ 7,447 $ 1,466 Deferred tax benefit (860 ) (980 ) (984 ) Taxes in respect of previous years (700 ) 1,593 549 Total - Domestic $ 14,378 $ 8,060 $ 1,031 Foreign: Current taxes $ 820 $ 444 $ 1,032 Deferred tax benefit (665 ) (1,778 ) (2,130 ) Taxes in respect of previous years (94 ) (117 ) (543 ) Total - Foreign $ 61 $ (1,451 ) $ (1,641 ) Total income tax expense (benefit) (benefit) $ 14,439 $ 6,609 $ (610 ) |
Schedule of deferred tax assets (liabilities) | December 31, 2022 2021 Deferred tax assets: Net operating loss and other losses carry forwards $ 5,912 $ 4,955 Research and development 3,278 3,629 Intangible assets (3,895 ) (3,251 ) Other temporary differences mainly relating to reserve and allowances 2,943 2,539 Deferred tax assets, before valuation allowance $ 8,238 $ 7,872 Valuation allowance 2,459 2,644 Total deferred tax assets, net $ 5,779 $ 5,228 Domestic: Long term deferred tax liability, net $ (791 ) $ (732 ) $ (791 ) $ (732 ) Foreign: Long term deferred tax asset, net $ 6,570 $ 5,960 $ 6,570 $ 5,960 Total deferred tax asset, net $ 5,779 $ 5,228 |
Schedule of the reconciliation of the effective tax rate | Year ended December 31, 2022 2021 2020 Income before taxes on income $ 113,664 $ 45,315 $ 9,615 Statutory tax rate in Israel 23.0 % 23.0 % 23.0 % Theoretical tax expense $ 26,143 $ 10,422 $ 2,211 Increase (decrease) in tax expenses resulting from: "Preferred Enterprise" benefits * (11,255 ) (5,610 ) (1,701 ) Non-deductible expenses (229 ) 710 2,409 Tax adjustment in respect of different tax rate of foreign subsidiaries 313 226 228 Deferred taxes related to prior years (55 ) (922 ) (1,576 ) Previous years taxes (136 ) 1,476 (147 ) Change in valuation allowance (185 ) 390 (2,097 ) Other (157 ) (83 ) 63 Taxes on income $ 14,439 $ 6,609 $ (610 ) * Benefit per ordinary share from "Preferred Enterprise" status: Basic $ 0.25 $ 0.16 $ 0.06 Diluted $ 0.23 $ 0.15 $ 0.06 |
Schedule of unrecognized tax benefits | December 31, 2022 2021 Balance at the beginning of the year $ 6,928 $ 4,525 Increase (decrease) related to prior year tax positions, net (590 ) 1,285 Increase related to current year tax positions, net 3,062 1,118 Balance at the end of the year $ 9,400 $ 6,928 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of the computation of basic and diluted net earnings per common share | Year ended December 31, 2022 2021 2020 Numerator: Net income attributable to ordinary shares – basic and diluted $ 99,225 $ 38,706 $ 10,225 Denominator: Number of ordinary shares outstanding during the year 44,871,149 34,397,134 26,687,145 Weighted average effect of dilutive securities: Employee options and restricted share units 3,200,489 3,432,591 2,110,602 Diluted number of ordinary shares outstanding 48,071,638 37,829,725 28,797,747 Basic net earnings per ordinary share $ 2.21 $ 1.13 $ 0.38 Diluted net earnings per ordinary share $ 2.06 $ 1.02 $ 0.36 Potential ordinary shares equivalents excluded because their effect would have been anti-dilutive 456,696 1,035,307 3,178,024 |
MAJOR CUSTOMERS (Tables)
MAJOR CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Schedule of revenues and receivables by major customer | Year ended December 31, 2022 2021 2020 Customer A 35 % 37 % 51 % |
GEOGRAPHIC INFORMATION (Tables)
GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of total revenues attributed to geographic areas | Year ended December 31, 2022 2021 2020 North America (mainly U.S.) $ 561,959 $ 423,571 $ 272,220 Europe 69,019 48,109 49,222 Other 9,278 6,818 6,621 $ 640,256 $ 478,498 $ 328,063 |
Schedule of property and equipment attributed to geographic areas | December 31, 2022 2021 Israel $ 6,176 $ 8,049 U.S. 7,427 7,524 Europe 138 216 $ 13,741 $ 15,789 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Summary Of Significant Accounting Policies Line Items | |||
Short-term deposits average rate (as a percent) | 3.82% | 0.79% | |
Restricted cash, current | $ 1,295 | $ 1,089 | |
Severance expenses | 2,809 | 2,612 | $ 1,812 |
Total employer 401(k) contributions | $ 865 | $ 683 | $ 624 |
Weighted average number of anti-dilutive securities excluded from diluted earnings per share | 456,696 | 1,035,307 | 3,178,024 |
Total expenses for doubtful debts | $ 210 | $ 82 | $ 323 |
Deferred revenues | 3,852 | ||
Aggregate amount of Remaining performance obligations | 2,377 | ||
Accounts receivable, allowance for doubtful accounts | 2,134 | 891 | |
Depreciation expense for related capitalized internally developed software | 1,392 | 3,056 | |
Designated as hedging instrument [Member] | |||
Summary Of Significant Accounting Policies Line Items | |||
Notional value of derivative instruments | 14,364 | 5,071 | |
Not designated as hedging instrument [Member] | |||
Summary Of Significant Accounting Policies Line Items | |||
Notional value of derivative instruments | $ 3,576 | $ 2,876 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives at Annual Rates) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Computers and peripheral equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33% |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 6% |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15% |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Stock-Based Compensation Assumptions) (Details) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected volatility | [1] | |||
Dividend yield | 0% | 0% | 0% | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 1.92% | 0.94% | 0.29% | |
Expected volatility | 59% | 53% | ||
Early exercise factor (as a percent) | 130% | 130% | 110% | |
Forfeiture rate post vesting | 1% | 1% | 0% | |
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk-free interest rate | 4.29% | 1.52% | 1.60% | |
Expected volatility | 60% | 59% | ||
Early exercise factor (as a percent) | 200% | 200% | 200% | |
Forfeiture rate post vesting | 28% | 27% | 34% | |
[1]Only RSUs were granted |
FAIR VALUE OF FINANCIAL INSTR_3
FAIR VALUE OF FINANCIAL INSTRUMENTS (Schedule of Fair Value Measurements) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | |
Assets: | |||
Derivative assets | $ 7 | $ 75 | |
Total financial assets | 7 | 75 | |
Liabilities: | |||
Derivative Liabilities | 239 | ||
Contingent consideration in connection to the acquisitions | 63,695 | [1] | 63,550 |
Total financial liabilities | 63,934 | 63,550 | |
Level 1 [Member] | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Total financial assets | 0 | 0 | |
Liabilities: | |||
Derivative Liabilities | 0 | ||
Contingent consideration in connection to the acquisitions | 0 | [1] | 0 |
Total financial liabilities | 0 | 0 | |
Level 2 [Member] | |||
Assets: | |||
Derivative assets | 7 | 75 | |
Total financial assets | 7 | 75 | |
Liabilities: | |||
Derivative Liabilities | 239 | ||
Contingent consideration in connection to the acquisitions | 0 | [1] | 0 |
Total financial liabilities | 239 | 0 | |
Level 3 [Member] | |||
Assets: | |||
Derivative assets | 0 | 0 | |
Total financial assets | 0 | 0 | |
Liabilities: | |||
Derivative Liabilities | 0 | ||
Contingent consideration in connection to the acquisitions | 63,695 | [1] | 63,550 |
Total financial liabilities | $ 63,695 | $ 63,550 | |
[1]See notes 4a and 4c |
ACQUISITIONS (Schedule of estim
ACQUISITIONS (Schedule of estimated fair values of the assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Business Acquisition [Line Items] | |||
Goodwill | $ 195,527 | $ 189,265 | $ 152,303 |
Vidazoo Member | |||
Business Acquisition [Line Items] | |||
Property and equipment, net | 6,291 | ||
Deferred Taxes | (5,524) | ||
Goodwill | 43,224 | ||
Net assets acquired | 90,038 | ||
Vidazoo Member | Initially Reported as of December 31, 2021 | |||
Business Acquisition [Line Items] | |||
Property and equipment, net | 6,291 | ||
Deferred Taxes | (4,704) | ||
Goodwill | 36,962 | ||
Net assets acquired | 77,748 | ||
Vidazoo Member | Measurement Period Adjustment | |||
Business Acquisition [Line Items] | |||
Property and equipment, net | 0 | ||
Deferred Taxes | (820) | ||
Goodwill | 6,262 | ||
Net assets acquired | 12,290 | ||
Vidazoo Member | Technology-Based Intangible Assets [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | 36,363 | ||
Vidazoo Member | Technology-Based Intangible Assets [Member] | Initially Reported as of December 31, 2021 | |||
Business Acquisition [Line Items] | |||
Intangible assets | 31,005 | ||
Vidazoo Member | Technology-Based Intangible Assets [Member] | Measurement Period Adjustment | |||
Business Acquisition [Line Items] | |||
Intangible assets | 5,358 | ||
Vidazoo Member | Customer Relationships [Member] | |||
Business Acquisition [Line Items] | |||
Intangible assets | 9,684 | ||
Vidazoo Member | Customer Relationships [Member] | Initially Reported as of December 31, 2021 | |||
Business Acquisition [Line Items] | |||
Intangible assets | 8,194 | ||
Vidazoo Member | Customer Relationships [Member] | Measurement Period Adjustment | |||
Business Acquisition [Line Items] | |||
Intangible assets | $ 1,490 |
ACQUISITIONS (Narrative) (Detai
ACQUISITIONS (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | |||
Oct. 04, 2021 | Jan. 14, 2020 | Jul. 22, 2020 | Dec. 31, 2022 | |
Content Iq Llc [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 37,838 | |||
Cash paid | 15,000 | |||
Maximum contingent consideration for acquisition | 47,050 | |||
Estimated fair value of contingent consideration | 22,838 | $ 17,820 | ||
Retention-based component of acquisition | $ 11,000 | |||
Earn out period | 2 years | |||
Pub Ocean Limited [Member] | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 13,399 | |||
Cash paid | 4,000 | |||
Maximum contingent consideration for acquisition | 17,000 | |||
Estimated fair value of contingent consideration | 9,399 | |||
Retention-based component of acquisition | $ 1,000 | |||
Earn out period | 2 years | |||
Vidazoo Member | ||||
Business Acquisition [Line Items] | ||||
Total consideration | $ 90,038 | |||
Cash paid | 35,000 | |||
Maximum contingent consideration for acquisition | 58,545 | |||
Estimated fair value of contingent consideration | 48,903 | $ 45,875 | ||
Retention-based component of acquisition | $ 6,135 | |||
Earn out period | 2 years 3 months |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 29,591 | $ 30,770 | |
Less: accumulated depreciation and amortization | (25,980) | (26,559) | |
Property and equipment, net | 3,611 | 4,211 | |
Depreciation and amortization expenses | 1,954 | 3,022 | $ 4,662 |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 5,941 | 7,219 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 2,777 | 2,686 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 8,400 | 8,392 | |
Capitalized software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 12,473 | $ 12,473 |
GOODWILL AND OTHER INTANGIBLE_3
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill [Line Items] | ||
Balance as of January 1 | $ 189,265 | $ 152,303 |
Balance as of December 31 | 195,527 | 189,265 |
Vidazoo Member | ||
Goodwill [Line Items] | ||
Acquisition | $ 36,962 | |
Vidazoo measurement period adjustments | 6,262 | |
Balance as of December 31 | $ 43,224 |
GOODWILL AND OTHER INTANGIBLE_4
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible assets, Net | ||
Balance at beginning of period | $ 56,700 | $ 24,376 |
Additions | 39,199 | |
Vidazoo measurement period adjustments | 6,848 | |
Amortization | (11,884) | (6,875) |
Balance at end of period | 51,664 | 56,700 |
Acquired technology [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 84,417 | 53,412 |
Additions | 31,005 | |
Vidazoo measurement period adjustments | 5,358 | |
Amortization | 0 | 0 |
Balance at end of period | 89,775 | 84,417 |
Accumulated amortization | ||
Balance at beginning of period | (31,137) | (25,548) |
Additions | 0 | |
Vidazoo measurement period adjustments | 0 | |
Amortization | (9,886) | (5,589) |
Balance at end of period | (41,023) | (31,137) |
Impairment | ||
Balance at beginning of period | (8,749) | (8,749) |
Vidazoo measurement period adjustments | 0 | |
Additions | 0 | |
Amortization | 0 | 0 |
Balance at end of period | (8,749) | (8,749) |
Intangible assets, Net | ||
Balance at beginning of period | 44,531 | 19,115 |
Additions | 31,005 | |
Vidazoo measurement period adjustments | 5,358 | |
Amortization | (9,886) | (5,589) |
Balance at end of period | 40,003 | 44,531 |
Customer relationships [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 45,054 | 36,860 |
Additions | 8,194 | |
Vidazoo measurement period adjustments | 1,490 | |
Amortization | 0 | 0 |
Balance at end of period | 46,544 | 45,054 |
Accumulated amortization | ||
Balance at beginning of period | (23,218) | (22,161) |
Additions | 0 | |
Vidazoo measurement period adjustments | 0 | |
Amortization | (1,758) | (1,057) |
Balance at end of period | (24,976) | (23,218) |
Impairment | ||
Balance at beginning of period | (10,426) | (10,426) |
Vidazoo measurement period adjustments | 0 | |
Additions | 0 | |
Amortization | 0 | 0 |
Balance at end of period | (10,426) | (10,426) |
Intangible assets, Net | ||
Balance at beginning of period | 11,410 | 4,273 |
Additions | 8,194 | |
Vidazoo measurement period adjustments | 1,490 | |
Amortization | (1,758) | (1,057) |
Balance at end of period | 11,142 | 11,410 |
Tradename and other [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 18,503 | 18,503 |
Additions | 0 | |
Vidazoo measurement period adjustments | 0 | |
Amortization | 0 | 0 |
Balance at end of period | 18,503 | 18,503 |
Accumulated amortization | ||
Balance at beginning of period | (12,634) | (12,405) |
Additions | 0 | |
Vidazoo measurement period adjustments | 0 | |
Amortization | (240) | (229) |
Balance at end of period | (12,874) | (12,634) |
Impairment | ||
Balance at beginning of period | (5,110) | (5,110) |
Additions | 0 | 0 |
Amortization | 0 | 0 |
Balance at end of period | (5,110) | (5,110) |
Intangible assets, Net | ||
Balance at beginning of period | 759 | 988 |
Additions | 0 | |
Vidazoo measurement period adjustments | 0 | |
Amortization | (240) | (229) |
Balance at end of period | $ 519 | $ 759 |
GOODWILL AND OTHER INTANGIBLE_5
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Useful Life of Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Acquired technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 4 years |
Acquired technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 7 years |
Customer relationships [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 5 years |
Customer relationships [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 8 years |
Tradename and other [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 4 years |
Tradename and other [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 11 years |
GOODWILL AND OTHER INTANGIBLE_6
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule Of Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
2023 | $ 12,255 | ||
2024 | 11,718 | ||
2025 | 8,283 | ||
2026 | 6,834 | ||
2027 | 6,590 | ||
Thereafter | 5,984 | ||
Net carrying amount | $ 51,664 | $ 56,700 | $ 24,376 |
ACCRUED EXPENSES AND OTHER LI_3
ACCRUED EXPENSES AND OTHER LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 20,788 | $ 19,597 |
Obligation related to acquisitions | 331 | 8,725 |
Government authorities | 10,758 | 6,706 |
Accrued expenses | 5,185 | 4,560 |
Other short-term liabilities | 807 | 743 |
Accrued expenses and other liabilities, total | $ 37,869 | $ 40,331 |
DERIVATIVES AND HEDGING ACTIV_3
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Fair Value of Company's Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives designate as hedging instruments: | ||
Foreign exchange forward contracts and other derivatives - Prepaid expenses and other current assets | $ 7 | $ 75 |
Foreign exchange forward contracts and other derivatives - Prepaid expenses and other current assets - Accrued expenses and other liabilities | 239 | 0 |
Foreign exchange forward contracts and other derivatives - Accumulated other comprehensive income | (232) | 75 |
Derivatives not designated as hedging instruments: | ||
Foreign exchange forward contracts and other derivatives - Prepaid expenses and other current assets | 18 | 21 |
Foreign exchange forward contracts and other derivatives - Accrued expenses and other liabilities | $ 31 | $ 3 |
DERIVATIVES AND HEDGING ACTIV_4
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Net (Gains) Losses Reclassified from Accumulated Other Comprehensive Income (Loss) to Operating Expenses) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Derivatives designated as hedging instruments: | |||
Gain recognized in Statements of Comprehensive Income | $ (307) | $ 75 | $ (67) |
Derivatives not designated as hedging instruments: | |||
Total | (1,023) | 191 | 598 |
Foreign exchange options and forward contracts [Member] | |||
Derivatives designated as hedging instruments: | |||
Gain recognized in Statements of Comprehensive Income | 307 | ||
Derivatives not designated as hedging instruments: | |||
Total | 307 | ||
Foreign exchange options and forward contracts [Member] | Operating expenses [Member] | |||
Derivatives designated as hedging instruments: | |||
Gain (loss) recognized in Consolidated Statements of Income | (948) | 167 | 764 |
Foreign exchange options and forward contracts [Member] | Financial expenses [Member] | |||
Derivatives not designated as hedging instruments: | |||
Gain (loss) recognized in Consolidated Statements of Income | $ (75) | $ 24 | $ (166) |
SHORT TERM AND LONG-TERM DEBT (
SHORT TERM AND LONG-TERM DEBT (Narrative) (Details) - USD ($) $ in Thousands | Mar. 08, 2021 | Dec. 17, 2018 |
Mizrachi Member | ||
Debt Instrument [Line Items] | ||
Repayment of loan facility | $ 8,333 | |
New loan facility [Member] | ||
Debt Instrument [Line Items] | ||
Debt instrument, face amount | $ 25,000 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Lessee, Lease, Description [Line Items] | |||
Lease expiration date Holon, Israel office | Jan. 31, 2025 | ||
Period of additional term | 24 months | ||
Decrease of value of right of use asset | $ 344 | ||
Lease expense | 2,846 | $ 4,441 | $ 3,493 |
Sublease income | 2,533 | 2,838 | 2,682 |
Cash paid for measurement of lease liabilities | $ 5,880 | $ 8,465 | $ 6,521 |
LEASES (Schedule of Weighted-Av
LEASES (Schedule of Weighted-Average Remaining Lease Term and Discount Rate) (Details) | Dec. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term | 2 years 11 months 8 days |
Weighted average discount rate | 5.23% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) | ||
Operating leases | ||
2023 | $ 4,578 | |
2024 | 4,588 | |
2025 | 2,798 | |
2026 | 777 | |
Total lease payments | 12,741 | [1] |
Less - imputed interest | (1,261) | |
Present value of lease liabilities | 11,480 | |
Sublease rental payments | $ 8,907 | |
[1]Total lease payments have not been reduced by sublease rental payments of $8,907 due in |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Proceeds from Issuance of Private Placement | $ 0 | $ 230,489 | $ 0 |
Option expiration term | 7 years | ||
Weighted average fair value of stock options granted | $ 20.13 | $ 18.55 | $ 3.14 |
Undertone [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Warrants to purchase ordinary shares granted | 66,666 | ||
Weighted average exercise price of warrants | $ 9.09 | ||
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to outstanding stock options and RSUs | $ 20,654 | ||
Warrant [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost related to outstanding stock options and RSUs, expected period of recognition | 1 year 6 months 25 days | ||
Performance Based Stock Options Member | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average fair value of stock options granted | $ 20.58 | $ 20.03 | $ 3.12 |
Stock Option Plan 2003 [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant | 270,923 | ||
Stock Option Plan 2003 [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 1 year | ||
Stock Option Plan 2003 [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period for plan | 3 years |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of options and RSUs | ||
Outstanding at January 1 | 3,574,401 | |
Granted | 1,532,548 | |
Exercised | (1,824,876) | |
Cancelled | (217,399) | |
Outstanding at December 31 | 3,064,674 | 3,574,401 |
Exercisable at December 31 | 618,230 | |
Vested and expected to vest at December 31 | 3,264,763 | |
Weighted average Exercise price | ||
Outstanding at January 1 | $ 2.46 | |
Granted | 0.01 | |
Exercised | 2.19 | |
Cancelled | 2.53 | |
Outstanding at December 31 | 1.39 | $ 2.46 |
Exercisable at December 31 | 5.1 | |
Vested and expected to vest at December 31 | $ 1.46 | |
Weighted average Remaining contractual term | ||
Outstanding | 59 years 8 months 12 days | 45 years 10 months 24 days |
Exercisable at December 31 | 3 years 3 months 18 days | |
Vested and expected to vest at December 31 | 10 months 17 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 77,173 | |
Exercised | 35,811 | |
Outstanding at December 31 | 73,284 | $ 77,173 |
Exercisable at December 31 | 12,488 | |
Vested and expected to vest at December 31 | $ 138,673 | |
Performance Based Stock Options Member | ||
Number of options and RSUs | ||
Outstanding at January 1 | 903,900 | |
Granted | 417,628 | |
Exercised | (650,794) | |
Cancelled | (78,223) | |
Outstanding at December 31 | 592,511 | 903,900 |
Exercisable at December 31 | 56,250 | |
Vested and expected to vest at December 31 | 658,487 | |
Weighted average Exercise price | ||
Outstanding at January 1 | $ 2.37 | |
Granted | 0.01 | |
Exercised | 2.83 | |
Cancelled | 0.01 | |
Outstanding at December 31 | 0.51 | $ 2.37 |
Exercisable at December 31 | 5.35 | |
Vested and expected to vest at December 31 | $ 0.46 | |
Weighted average Remaining contractual term | ||
Outstanding | 70 years 7 months 20 days | 46 years 1 month 28 days |
Exercisable at December 31 | 4 years 6 months 29 days | |
Vested and expected to vest at December 31 | 4 months 20 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 19,599 | |
Exercised | 12,493 | |
Outstanding at December 31 | 14,690 | $ 19,599 |
Exercisable at December 31 | 1,122 | |
Vested and expected to vest at December 31 | $ 29,926 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Option Activity by Price Range) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Outstanding | |
Number of options | shares | 3,064,674 |
Weighted average remaining contractual life (years) | 59 years 8 months 12 days |
Weighted average exercise price | $ 1.39 |
Exercisable | |
Number of options | shares | 618,230 |
Weighted average remaining contractual life (years) | 3 years 3 months 18 days |
Weighted average exercise price | $ 5.1 |
$0.01 [Member] | |
Outstanding | |
Range of exercise price | $ 0.01 |
Number of options | shares | 2,323,813 |
Weighted average remaining contractual life (years) | 77 years 7 months 24 days |
Weighted average exercise price | $ 0.01 |
Exercisable | |
Number of options | shares | 0 |
Weighted average exercise price | $ 0 |
$2.52 – $3.38 [Member] | |
Outstanding | |
Range of exercise price, minimum | 2.52 |
Range of exercise price, maximum | $ 3.38 |
Number of options | shares | 237,699 |
Weighted average remaining contractual life (years) | 2 years 4 months 20 days |
Weighted average exercise price | $ 3.19 |
Exercisable | |
Number of options | shares | 237,699 |
Weighted average remaining contractual life (years) | 2 years 4 months 20 days |
Weighted average exercise price | $ 3.19 |
$4.23 - $5.90 [Member] | |
Outstanding | |
Range of exercise price, minimum | 4.23 |
Range of exercise price, maximum | $ 5.9 |
Number of options | shares | 258,475 |
Weighted average remaining contractual life (years) | 3 years 11 months 19 days |
Weighted average exercise price | $ 5.21 |
Exercisable | |
Number of options | shares | 244,412 |
Weighted average remaining contractual life (years) | 3 years 11 months 4 days |
Weighted average exercise price | $ 5.18 |
$6.23 -$8.34 [Member] | |
Outstanding | |
Range of exercise price, minimum | 6.23 |
Range of exercise price, maximum | $ 8.34 |
Number of options | shares | 180,932 |
Weighted average remaining contractual life (years) | 3 years 2 months 4 days |
Weighted average exercise price | $ 6.73 |
Exercisable | |
Number of options | shares | 105,834 |
Weighted average remaining contractual life (years) | 3 years 3 months 25 days |
Weighted average exercise price | $ 6.8 |
$12.02 - $21.35 [Member] | |
Outstanding | |
Range of exercise price, minimum | 12.02 |
Range of exercise price, maximum | $ 21.35 |
Number of options | shares | 63,755 |
Weighted average remaining contractual life (years) | 5 years 2 months 8 days |
Weighted average exercise price | $ 14.6 |
Exercisable | |
Number of options | shares | 30,285 |
Weighted average remaining contractual life (years) | 5 years 1 month 24 days |
Weighted average exercise price | $ 13.5 |
Performance-based Stock Options [Member] | |
Outstanding | |
Number of options | shares | 592,511 |
Weighted average remaining contractual life (years) | 70 years 7 months 20 days |
Weighted average exercise price | $ 0.51 |
Exercisable | |
Number of options | shares | 56,250 |
Weighted average remaining contractual life (years) | 4 years 6 months 29 days |
Weighted average exercise price | $ 5.35 |
Performance-based Stock Options [Member] | $ 0.01 [Member] | |
Outstanding | |
Range of exercise price | $ 0.01 |
Number of options | shares | 536,261 |
Weighted average remaining contractual life (years) | 77 years 6 months 25 days |
Weighted average exercise price | $ 0.01 |
Exercisable | |
Number of options | shares | 0 |
Weighted average exercise price | $ 0 |
Performance-based Stock Options [Member] | $ 5.35 [Member] | |
Outstanding | |
Range of exercise price | $ 5.35 |
Number of options | shares | 56,250 |
Weighted average remaining contractual life (years) | 4 years 6 months 29 days |
Weighted average exercise price | $ 5.35 |
Exercisable | |
Number of options | shares | 56,250 |
Weighted average remaining contractual life (years) | 4 years 6 months 29 days |
Weighted average exercise price | $ 5.35 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule of Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 11,570 | $ 6,985 | $ 4,447 |
Cost of revenue [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 446 | 171 | 102 |
Research and Development [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 2,129 | 946 | 887 |
Selling and Marketing [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 4,528 | 3,248 | 1,898 |
General and Administrative [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 4,467 | $ 2,620 | $ 1,560 |
FINANCIAL INCOME (EXPENSE), N_3
FINANCIAL INCOME (EXPENSE), NET (Schedule of Financial Income (Expense), Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financial income: | |||
Interest income | $ 4,993 | $ 539 | $ 287 |
Other | 0 | 0 | 45 |
Financial income | 4,993 | 539 | 332 |
Financial expense: | |||
Foreign currency translation losses | (264) | (528) | (1,537) |
Interest expense on debts | 0 | (119) | (1,045) |
Bank charges and other | (227) | (473) | (388) |
Financial expenses | (491) | (1,120) | (2,970) |
Financial income (expense), net | $ 4,502 | $ (581) | $ (2,638) |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes On Income [Line Items] | |||
Income tax rate | 23% | 23% | 23% |
Preferred Enterprise tax rate | 16% | ||
Net operating loss carry forward | $ 5,119 | ||
Change in valuation allowance | 185 | ||
Company recognized interest and penalties accrued | 975 | $ 834 | |
Capital loss | $ 1,396 | ||
Description of New Technological Enterprise Incentives Regime | According to Amendment 73, a Preferred Technological Enterprise, as defined in Amendment 73, with total consolidated revenue of less than NIS 10 billion, shall be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to qualify as a Preferred Technological Enterprise certain criteria must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenue derived from exports Any dividends distributed from income from the preferred technological enterprises will be subject to tax at a rate of 20%. Amendment 73 further provides that, in certain circumstances, a dividend distributed to a foreign corporate shareholder, would be subject to a 4% tax rate (if the percentage of foreign shareholders exceeds 90%). | ||
Minimum [Member] | |||
Taxes On Income [Line Items] | |||
Business interest percentage | 30% | ||
Open tax year | 2020 | ||
Maximum [Member] | |||
Taxes On Income [Line Items] | |||
Business interest percentage | 50% | ||
Open tax year | 2024 | ||
Israel [Member] | |||
Taxes On Income [Line Items] | |||
Percentage of withheld rate | 20% | ||
Percentage of dividend distributions | 20% | ||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||
Taxes On Income [Line Items] | |||
Expiration of operating loss carry forwards | Dec. 31, 2035 | ||
European Subsidiaries [Member] | Israel [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | $ 5,970 | ||
Federal [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | 11,842 | ||
State [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | $ 11,898 | ||
Peripheral Regions Development Area A [Member] | |||
Taxes On Income [Line Items] | |||
Preferred Enterprise tax rate | 7.50% |
INCOME TAXES (Schedule of Incom
INCOME TAXES (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ 106,634 | $ 38,854 | $ 12,175 |
Foreign | 7,030 | 6,461 | (2,560) |
Income before Taxes on Income | $ 113,664 | $ 45,315 | $ 9,615 |
INCOME TAXES (Schedule of Taxes
INCOME TAXES (Schedule of Taxes on Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 16,758 | $ 7,891 | $ 2,498 |
Taxes in respect of previous years | (794) | 1,476 | 6 |
Deferred tax benefit | (1,525) | (2,758) | (3,114) |
Taxes on income (benefit) | $ 14,439 | $ 6,609 | $ (610) |
INCOME TAXES (Schedule of Tax_2
INCOME TAXES (Schedule of Taxes on Income by Jurisdiction (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Taxes on income by jurisdiction | |||
Domestic | $ 14,378 | $ 8,060 | $ 1,031 |
Foreign | 61 | (1,451) | (1,641) |
Taxes on income (benefit) | 14,439 | 6,609 | (610) |
Domestic: | |||
Current taxes | 15,938 | 7,447 | 1,466 |
Deferred tax benefit | (860) | (980) | (984) |
Taxes in respect of previous years | (700) | 1,593 | 549 |
Total - Domestic | 14,378 | 8,060 | 1,031 |
Foreign: | |||
Current taxes | 820 | 444 | 1,032 |
Deferred tax benefit | (665) | (1,778) | (2,130) |
Taxes in respect of previous years | (94) | (117) | (543) |
Total - Foreign | 61 | (1,451) | (1,641) |
Taxes on income (benefit) | $ 14,439 | $ 6,609 | $ (610) |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Net operating loss and other losses carry forwards | $ 5,912 | $ 4,955 |
Research and development | 3,278 | 3,629 |
Intangible assets | (3,895) | (3,251) |
Other temporary differences mainly relating to reserve and allowances | 2,943 | 2,539 |
Deferred tax assets, before valuation allowance | 8,238 | 7,872 |
Valuation allowance | 2,459 | 2,644 |
Total deferred tax assets, net | 5,779 | 5,228 |
Long term deferred tax liability, net | (791) | (732) |
Long term deferred tax asset, net | 6,570 | 5,960 |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Long term deferred tax liability, net | (791) | (732) |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Long term deferred tax asset, net | $ 6,570 | $ 5,960 |
INCOME TAXES (Schedule of the R
INCOME TAXES (Schedule of the Reconciliation of the Effective Tax Rate) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Income before taxes on income | $ 113,664 | $ 45,315 | $ 9,615 |
Statutory tax rate in Israel | 23% | 23% | 23% |
Theoretical tax expense | $ 26,143 | $ 10,422 | $ 2,211 |
Increase (decrease) in tax expenses resulting from: | |||
"Preferred Enterprise" benefits | (11,255) | (5,610) | (1,701) |
Non-deductible expenses | (229) | 710 | 2,409 |
Tax adjustment in respect of different tax rate of foreign subsidiaries | 313 | 226 | 228 |
Deferred taxes related to prior years | (55) | (922) | (1,576) |
Previous years taxes | (136) | 1,476 | (147) |
Change in valuation allowance | (185) | 390 | (2,097) |
Other | (157) | (83) | 63 |
Taxes on income | $ 14,439 | $ 6,609 | $ (610) |
Benefit per ordinary share from "Preferred Enterprise" status: | |||
Basic | $ 0.25 | $ 0.16 | $ 0.06 |
Diluted | $ 0.23 | $ 0.15 | $ 0.06 |
INCOME TAXES (Schedule of Unrec
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 6,928 | $ 4,525 |
Increase (decrease) related to prior year tax positions, net | (590) | 1,285 |
Increase related to current year tax positions, net | 3,062 | 1,118 |
Balance at the end of the year | $ 9,400 | $ 6,928 |
EARNINGS PER SHARE (Schedule of
EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net income attributable to ordinary shares – basic and diluted | $ 99,225 | $ 38,706 | $ 10,225 |
Denominator: | |||
Number of ordinary shares outstanding during the year | 44,871,149 | 34,397,134 | 26,687,145 |
Weighted average effect of dilutive securities: | |||
Employee options and restricted share units | 3,200,489 | 3,432,591 | 2,110,602 |
Diluted number of ordinary shares outstanding | 48,071,638 | 37,829,725 | 28,797,747 |
Basic net earnings per ordinary share | $ 2.21 | $ 1.13 | $ 0.38 |
Diluted net earnings per ordinary share | $ 2.06 | $ 1.02 | $ 0.36 |
Potential ordinary shares equivalents excluded because their effect would have been anti-dilutive | 456,696 | 1,035,307 | 3,178,024 |
MAJOR CUSTOMERS (Details)
MAJOR CUSTOMERS (Details) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Customer Concentration Risk [Member] | Revenues [Member] | Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 35% | 37% | 51% |
GEOGRAPHIC INFORMATION (Details
GEOGRAPHIC INFORMATION (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 640,256 | $ 478,498 | $ 328,063 |
Long-lived assets | 13,741 | 15,789 | |
North America (mainly U.S.) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 561,959 | 423,571 | 272,220 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 9,278 | 6,818 | 6,621 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 6,176 | 8,049 | |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 7,427 | 7,524 | |
Europe [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 69,019 | 48,109 | $ 49,222 |
Long-lived assets | $ 138 | $ 216 |