Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2022 | Apr. 29, 2022 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-36324 | |
Entity Registrant Name | VARONIS SYSTEMS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 57-1222280 | |
Entity Address, Address Line One | 1250 Broadway, 29th Floor | |
Entity Address, City or Town | New York | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10001 | |
City Area Code | 877 | |
Local Phone Number | 292-8767 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | VRNS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding (in shares) | 109,569,674 | |
Entity Central Index Key | 0001361113 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash and cash equivalents | $ 775,719 | $ 805,761 |
Marketable securities | 28,372 | 0 |
Short-term deposits | 0 | 1,850 |
Trade receivables (net of allowances of $3,575 and $2,754 at March 31, 2022 and December 31, 2021, respectively) | 63,604 | 117,179 |
Prepaid expenses and other current assets | 35,812 | 34,417 |
Total current assets | 903,507 | 959,207 |
Long-term assets: | ||
Operating lease right-of-use asset | 61,351 | 63,749 |
Property and equipment, net | 39,495 | 38,298 |
Intangible assets, net | 3,931 | 4,313 |
Goodwill | 23,135 | 23,135 |
Other assets | 20,143 | 19,835 |
Total long-term assets | 148,055 | 149,330 |
Total assets | 1,051,562 | 1,108,537 |
Current liabilities: | ||
Trade payables | 4,771 | 5,324 |
Accrued expenses and other short-term liabilities | 92,560 | 102,226 |
Deferred revenues | 98,763 | 104,221 |
Total current liabilities | 196,094 | 211,771 |
Long-term liabilities: | ||
Convertible senior notes, net | 247,846 | 225,330 |
Operating lease liability | 65,786 | 68,694 |
Deferred revenues | 2,378 | 2,566 |
Other liabilities | 3,680 | 3,583 |
Total long-term liabilities | 319,690 | 300,173 |
Stockholders’ equity: | ||
Common stock of $0.001 par value - Authorized: 200,000,000 shares at March 31, 2022 and December 31, 2021; Issued and outstanding: 109,566,197 shares at March 31, 2022 and 107,509,096 shares at December 31, 2021 | 110 | 108 |
Accumulated other comprehensive income | 2,894 | 6,083 |
Additional paid-in capital | 1,000,493 | 1,018,005 |
Accumulated deficit | (467,719) | (427,603) |
Total stockholders’ equity | 535,778 | 596,593 |
Total liabilities and stockholders’ equity | $ 1,051,562 | $ 1,108,537 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 3,575 | $ 2,754 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 200,000,000 | 200,000,000 |
Common stock, issued (in shares) | 109,566,197 | 107,509,096 |
Common stock, outstanding (in shares) | 109,566,197 | 107,509,096 |
Unaudited Consolidated Statemen
Unaudited Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Revenues: | ||
Revenue | $ 96,261 | $ 74,785 |
Cost of revenues | 17,809 | 13,482 |
Gross profit | 78,452 | 61,303 |
Operating expenses: | ||
Research and development | 43,570 | 30,062 |
Sales and marketing | 64,787 | 51,493 |
General and administrative | 18,180 | 13,823 |
Total operating expenses | 126,537 | 95,378 |
Operating loss | (48,085) | (34,075) |
Financial income (expenses), net | 736 | (1,022) |
Loss before income taxes | (47,349) | (35,097) |
Income taxes | (1,414) | (559) |
Net loss | $ (48,763) | $ (35,656) |
Net loss per share of common stock, basic (in dollars per share) | $ (0.45) | $ (0.36) |
Net loss per share of common stock, diluted (in dollars per share) | $ (0.45) | $ (0.36) |
Weighted average number of shares used in computing net loss per share of common stock, basic (in shares) | 108,204,960 | 100,246,972 |
Weighted average number of shares used in computing net loss per share of common stock, diluted (in shares) | 108,204,960 | 100,246,972 |
Subscriptions | ||
Revenues: | ||
Revenue | $ 68,985 | $ 45,114 |
Maintenance and services | ||
Revenues: | ||
Revenue | $ 27,276 | $ 29,671 |
Unaudited Consolidated Statem_2
Unaudited Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net loss | $ (48,763) | $ (35,656) |
Other comprehensive loss: | ||
Unrealized income (loss) on marketable securities, net of tax | (10) | 4 |
Income on marketable securities reclassified into earnings, net of tax | 0 | 1 |
Total | (10) | 5 |
Unrealized loss on derivative instruments, net of tax | (2,759) | (3,149) |
Income on derivative instruments reclassified into earnings, net of tax | (420) | (2,036) |
Total | (3,179) | (5,185) |
Total other comprehensive loss | (3,189) | (5,180) |
Comprehensive loss | $ (51,952) | $ (40,836) |
Unaudited Consolidated Statem_3
Unaudited Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Cumulative Effect, Period of Adoption, Adjustment | Common stock | Additional paid-in capital | Additional paid-in capitalCumulative Effect, Period of Adoption, Adjustment | Accumulated other comprehensive income (loss) | Accumulated deficit | Accumulated deficitCumulative Effect, Period of Adoption, Adjustment |
Beginning balance (in shares) at Dec. 31, 2020 | 95,456,862 | |||||||
Beginning balance at Dec. 31, 2020 | $ 94,071 | $ 95 | $ 395,347 | $ 9,371 | $ (310,742) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of Common stock in connection with follow-on offering, net of issuance costs of $17,466 (in shares) | 7,961,538 | |||||||
Issuance of Common stock in connection with follow-on offering, net of issuance costs of $17,466 | 500,034 | $ 8 | 500,026 | |||||
Stock-based compensation expense | 21,379 | 21,379 | ||||||
Common stock issued under employee stock plans, net (in shares) | 2,728,995 | |||||||
Common stock issued under employee stock plans | 4,673 | $ 3 | 4,670 | |||||
Taxes paid related to net share settlement of equity awards | (731) | (731) | ||||||
Unrealized loss on derivative instruments | (5,185) | (5,185) | ||||||
Unrealized income on available for sale securities | 5 | 5 | ||||||
Net loss | (35,656) | (35,656) | ||||||
Ending balance (in shares) at Mar. 31, 2021 | 106,147,395 | |||||||
Ending balance at Mar. 31, 2021 | 578,590 | $ 106 | 920,691 | 4,191 | (346,398) | |||
Beginning balance (in shares) at Dec. 31, 2020 | 95,456,862 | |||||||
Beginning balance at Dec. 31, 2020 | 94,071 | $ 95 | 395,347 | 9,371 | (310,742) | |||
Ending balance (in shares) at Dec. 31, 2021 | 107,509,096 | |||||||
Ending balance at Dec. 31, 2021 | $ 596,593 | $ (22,147) | $ 108 | 1,018,005 | $ (30,794) | 6,083 | (427,603) | $ 8,647 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Accounting Standards Update [Extensible Enumeration] | Accounting Standards Update 2020-06 [Member] | |||||||
Stock-based compensation expense | $ 35,998 | 35,998 | ||||||
Common stock issued under employee stock plans, net (in shares) | 2,057,101 | |||||||
Common stock issued under employee stock plans | 6,111 | $ 2 | 6,109 | |||||
Taxes paid related to net share settlement of equity awards | (28,825) | (28,825) | ||||||
Unrealized loss on derivative instruments | (3,179) | (3,179) | ||||||
Unrealized income on available for sale securities | (10) | (10) | ||||||
Net loss | (48,763) | (48,763) | ||||||
Ending balance (in shares) at Mar. 31, 2022 | 109,566,197 | |||||||
Ending balance at Mar. 31, 2022 | $ 535,778 | $ 110 | $ 1,000,493 | $ 2,894 | $ (467,719) |
Unaudited Consolidated Statem_4
Unaudited Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Cash flows from operating activities: | ||
Net loss | $ (48,763) | $ (35,656) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization | 2,679 | 2,349 |
Stock-based compensation | 35,998 | 21,379 |
Amortization of deferred commissions | 6,120 | 4,157 |
Noncash operating lease costs | 2,326 | 2,242 |
Amortization of debt discount and issuance costs | 370 | 1,689 |
Changes in assets and liabilities: | ||
Trade receivables | 53,575 | 42,927 |
Prepaid expenses and other current assets | (2,575) | (1,673) |
Deferred commissions | (6,942) | (3,873) |
Other long-term assets | 359 | 900 |
Trade payables | (553) | (213) |
Accrued expenses and other short-term liabilities | (12,502) | (5,029) |
Deferred revenues | (5,646) | (7,618) |
Other long-term liabilities | 96 | (1,198) |
Net cash provided by operating activities | 24,542 | 20,383 |
Cash flows from investing activities: | ||
Proceeds from sales and maturities of marketable securities | 0 | 6,036 |
Investment in marketable securities | (28,372) | 0 |
Proceeds from short-term and long-term deposits | 1,850 | 50,235 |
Investment in short-term and long-term deposits | (1,853) | (60,000) |
Purchases of property and equipment | (3,495) | (1,116) |
Net cash used in investing activities | (31,870) | (4,845) |
Cash flows from financing activities: | ||
Proceeds from employee stock plans | 6,111 | 4,673 |
Taxes paid related to net share settlement of equity awards | (28,825) | (731) |
Proceeds from follow-on offering, net | 0 | 500,034 |
Net cash provided by (used in) financing activities | (22,714) | 503,976 |
Increase (decrease) in cash and cash equivalents | (30,042) | 519,514 |
Cash and cash equivalents at beginning of period | 805,761 | 234,092 |
Cash and cash equivalents at end of period | 775,719 | 753,606 |
Supplemental disclosure of cash flow information: | ||
Cash paid for income taxes | 507 | 2,822 |
Cash paid for interest | 1,582 | 1,582 |
Lease liabilities arising from obtaining right-of-use assets | $ 248 | $ 7,785 |
Unaudited Consolidated Statem_5
Unaudited Consolidated Statements of Changes in Stockholders' Equity - (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Issuance costs | $ 17,466 |
General
General | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | GENERAL a. Description of Business: Varonis Systems, Inc. ("VSI" and together with its subsidiaries, collectively, the “Company” or "Varonis") was incorporated under the laws of the State of Delaware on November 3, 2004, commenced operations on January 1, 2005 and has twelve wholly-owned subsidiaries. The Company’s software products and services allow enterprises to manage, analyze, alert and secure enterprise data. Varonis focuses on protecting enterprise data including: sensitive files and emails; confidential customer, patient and employee data; financial records; strategic and product plans; and other intellectual property. Through its products: DatAdvantage (including the Automation Engine), DatAlert (including Varonis Edge), DataPrivilege, Data Classification Engine (including Policy Pack and Data Classification Labels), Data Transport Engine and DatAnswers, the Varonis Data Security Platform detects cyberthreats from both internal and external actors by analyzing data, account activity and user behavior; prevents and limits disaster by locking down sensitive and stale data; and efficiently sustains a secure state with automation. Varonis products address additional important use cases including data protection, data governance, Zero Trust, cybercrime, compliance, data privacy, classification and threat detection and response. b. Basis of Presentation: The accompanying unaudited consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain amounts in prior periods' financial statements have been recast and reclassified to conform to the current year's presentation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its consolidated financial position, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the 2021 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2021 filed with the SEC on February 8, 2022 (the “2021 Form 10-K”). There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2021 included in the 2021 Form 10-K, unless otherwise stated. c. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are sold on-premises and are comprised of time-based licenses whereby customers use the Company's software (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. In the second half of 2021, the Company launched its cloud offering that allows customers to use hosted software. Maintenance and services primarily consist of fees for maintenance and services of perpetual license sales (including support and unspecified upgrades and enhancements when and if they are available) and to a lesser extent professional services, which focus on both operationalizing the software and training the Company's customers to fully leverage the use of its products, although the user can benefit from the software without the Company's assistance. The Company sells its products worldwide to a network of distributors and value-added resellers, and payment is typically due within 30 to 60 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers.” As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Subscription software and perpetual license revenues are recognized at the point of time when the software license has been delivered and the benefit of the asset has transferred. As we have successfully transitioned to a subscription model which has resulted in an immaterial amount of perpetual license revenues, these revenues are included within the subscriptions line of the consolidated statements of operations. Maintenance associated with subscription licenses is recognized ratably over the term of the agreement. In 2021, the Company launched its cloud offering that allows customers to use hosted software, and its revenue is recognized ratably over the associated contract period. As the Company only introduced these licenses in the second half of 2021, the total associated revenues have not yet been material. The Company recognizes revenues from maintenance of perpetual license sales ratably over the term of the underlying maintenance contract. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the new term with the revenues recognized ratably over the period. Revenues from professional services consist mostly of time and material services. The performance obligations are satisfied, and revenues are recognized, when the services are provided or once the service term has expired. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The license is distinct upon delivery as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of the total consideration of the contract. For maintenance, the Company determines the standalone selling prices based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. For software licenses, the Company uses the residual approach to determine the standalone selling prices due to the lack of history of selling software license on a standalone basis and the highly variable sales price. Trade receivables are generally recorded at the invoice amount mostly for a one-year period, net of an allowance for credit losses. Deferred revenues represent mostly unrecognized fees billed or collected for maintenance and professional services. Deferred revenues are recognized as (or when) the Company performs under the contract. Pursuant to these contracts, customers are not invoiced for subsequent years until the annual renewal occurs. The amount of revenues recognized in the period that was included in the opening deferred revenues balance was $39,029 for the three months ended March 31, 2022. The Company does not grant a right of return to its customers, except for one of its resellers. In 2021 and for the three months ended March 31, 2022, there were no returns from this reseller. For information regarding disaggregated revenues, refer to Note 7. d. Contract Costs: The Company pays sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions earned by employees are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately four years. Sales commissions for renewal contracts are capitalized and then amortized on a straight-line basis. Amortization expenses related to these costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. e. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes forward foreign exchange contracts designated as cash flow hedges. These forward foreign exchange contracts generally mature within 12 months. In addition, the Company enters into forward contracts to hedge a portion of its monetary items in the balance sheet, such as trade receivables and payables, denominated in Pound Sterling and Euro for short-term periods (the “Fair Value Hedging Program”). The purpose of the Fair Value Hedging Program is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to the Fair Value Hedging Program are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes. Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets (liabilities) as of March 31, 2022 (unaudited) Assets (liabilities) as of December 31, 2021 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets $ 97,165 $ 2,904 $ 115,710 $ 6,083 Foreign exchange forward contract derivatives for monetary items included in accrued expenses and other short-term liabilities $ 29,414 $ (30) $ 42,056 $ (62) The unaudited consolidated statements of operations reflect a gain of $420 and $547 for the three months ended March 31, 2022 and 2021, respectively, related to the effective portion of the cash flow hedges. No material ineffective hedges were recognized for the three months ended March 31, 2022 and 2021 in operating expenses in the consolidated statement of operations. For the three months ended March 31, 2022 and 2021, the unaudited consolidated statements of operations reflect a gain of $741 and $771, respectively, in financial income (expenses), net, related to the Fair Value Hedging Program. f. Income Taxes: The Company operates in the U.S. and in foreign jurisdictions and is subject to taxes in each country or jurisdiction in which it conducts business. Earnings from its non-U.S. activities are subject to local country income tax and may be subject to U.S. income tax. To date, on a consolidated basis, the Company has incurred accumulated net losses and has not recorded any U.S. federal tax provision. Because of its history of U.S. net operating losses, the Company has established a full valuation allowance against potential future benefits for deferred tax assets, including loss carryforwards, in that jurisdiction. In some foreign tax jurisdictions, the Company bases its interim tax accruals on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. In each quarter, the Company updates its calculation and makes a year-to-date adjustment to its tax provision as necessary. The Company's fiscal 2022 annual effective rate differs from the U.S. statutory rate primarily due to the valuation allowance recorded on its U.S. losses. For the three months ended March 31, 2022 and 2021, the Company recorded income tax expense of $1,414 and $559, respectively, comprised primarily of foreign income taxes. The Company's income tax provision could be significantly impacted by estimates surrounding its uncertain tax positions and changes to its valuation allowance in future periods. The Company reevaluates the judgments surrounding its estimates and make adjustments as appropriate each reporting period. The Company remains open to federal and state examination to the extent net carry-over unused operating losses and tax credit attributable to those years remain unutilized. As of March 31, 2022, the Company's federal tax returns for the years 2010 through the current period, excluding the 2016 tax year which was audited by the Internal Revenue Service, and most state tax returns for the years 2009 through the current period, are still open to examination. In addition, the Company is subject to the regular examinations of its income tax returns by different tax authorities. The Company regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. g. Cash, Cash Equivalents, Marketable Securities and Short-Term Investments: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities” and ASC No. 326, “Financial Instruments—Credit Losses.” The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand, highly liquid investments in money market funds and various deposit accounts. The Company considers all high-quality investments purchased with original maturities at the date of purchase greater than three months but less than one year to be short-term. Cash equivalents, marketable securities and deposits are classified as available for sale and are, therefore, recorded at fair value on the consolidated balance sheet, with any unrealized gains and losses reported in accumulated other comprehensive income, which is reflected as a separate component of stockholders’ equity in the Company’s consolidated balance sheets, until realized. The Company uses the specific identification method to compute gains and losses on the investments. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included as a component of financial income (expenses), net in the consolidated statement of operations. Cash, cash equivalents, marketable securities and deposits consist of the following (in thousands): As of March 31, 2022 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 384,062 $ — $ — $ 384,062 Corporate bonds 2,454 — *) 2,454 Total $ 386,516 $ — $ *) $ 386,516 Marketable securities US Treasury securities $ 14,005 $ — $ (8) $ 13,997 Commercial paper 9,573 — — 9,573 Corporate bonds 4,804 *) (2) 4,802 Total $ 28,382 $ *) $ (10) $ 28,372 Long-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 *) Represents an amount lower than $1 As of December 31, 2021 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 414,942 $ — $ — $ 414,942 Total $ 414,942 $ — $ — $ 414,942 Short-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 All the marketable securities have a stated effective maturity of less than 12 months as of March 31, 2022. The gross unrealized gains and losses related to these short-term investments was due primarily to changes in interest rates. Available for sale debt securities with an amortized cost basis in excess of estimated fair value are assessed using the Current Expected Credit losses model to determine what portion of that difference, if any, is caused by expected credit losses. Expected credit losses on available for sale debt securities are recognized in financial income (expenses), net on the consolidated statements of operations. As of March 31, 2022, the Company did not recognize an allowance for credit losses on available for sale marketable securities as any expected credit losses are not material to the consolidated financial statements. h. Revolving Credit Facility: On August 21, 2020, the Company entered into a credit and security agreement with KeyBank National Association (the “Credit and Security Agreement”), for a three-year secured revolving credit facility of $70,000 (the “Credit Facility”). The Credit Facility maturity date is the earlier of August 21, 2023 or 90 days prior to the scheduled maturity of any convertible debt securities. The fees incurred in connection with entering into the Credit and Security Agreement are amortized on a straight-line basis over the contractual term of the arrangement. Ongoing fees and interest paid on the used and unused portions of the Credit Facility are expensed as incurred and included within financial income (expenses), net on the consolidated statement of operations. The Credit Facility is secured and the Credit and Security Agreement contains customary covenants and customary events of default provisions. As of March 31, 2022, the Company had no balance outstanding on the Credit Facility and was in compliance with all financial covenants and non-financial covenants. i. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities, including stock options, restricted stock units, performance stock units and the shares related to the conversion of the 1.25% Convertible Senior Notes issued by the Company on May 11, 2020 and due August 2025 in an aggregate principal amount of $253,000 (the "2025 Notes"), to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were 9,194,862 and 8,913,594 potentially dilutive shares from the conversion of outstanding stock options, restricted stock units and performance stock units that were not included in the calculation of diluted net loss per share for the period ending March 31, 2022 and 2021, respectively. Additionally, 8,239,254 shares underlying the conversion option of the 2025 Notes are not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Company intends to settle the principal amount of the 2025 Notes in cash, shares or a combination thereof. As a result of the adoption of ASU 2020-06, the Company uses the if-converted method for calculating any potential dilutive effect on diluted net income per share, if applicable. j. Recently Adopted Accounting Pronouncements: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity.” The standard simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on earnings per share. The Company adopted this standard on January 1, 2022 using a modified retrospective basis which resulted in a decrease to accumulated deficit of $8,647, a decrease in additional paid-in capital of $30,794 and an increase in liabilities of $22,147 on its consolidated balance sheets. For more information, refer to Note 5. n. Recently Issued Accounting Pronouncements Not Yet Adopted: The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | FAIR VALUE MEASUREMENTS The Company evaluates assets and liabilities subject to fair value measurements on a recurring basis to determine the appropriate level to classify them for each reporting period. There have been no transfers between fair value measurements levels during the three months ended March 31, 2022. The authoritative guidance on fair value measurements establishes a consistent framework for measuring fair value on either a recurring or nonrecurring basis whereby inputs, used in valuation techniques, are assigned a hierarchical level. The following are the hierarchical levels of inputs to measure fair value: • Level 1: Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. • Level 2: Observable inputs that reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. • Level 3: Unobservable inputs reflecting the Company’s own assumptions incorporated in valuation techniques used to determine fair value. These assumptions are required to be consistent with market participant assumptions that are reasonably available. The following table sets forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2022 and December 31, 2021 by level within the fair value hierarchy (in thousands): As of March 31, 2022 (unaudited) As of December 31, 2021 Level I Level Level III Total Level I Level Level III Total Financial assets: Cash equivalents: Money market funds $ 384,062 $ — $ — $ 384,062 $ 414,942 $ — $ — $ 414,942 Corporate bonds — 2,454 — 2,454 — — — — Marketable securities: US Treasury securities 13,997 — — 13,997 — — — — Commercial paper — 9,573 — 9,573 — — — — Corporate bonds — 4,802 — 4,802 — — — — Prepaid expenses and other current assets: Forward foreign exchange contracts — 2,904 — 2,904 — 6,083 — 6,083 Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (30) — (30) — (62) — (62) Total financial assets (liabilities) $ 398,059 $ 19,703 $ — $ 417,762 $ 414,942 $ 6,021 $ — $ 420,963 See Note 5 “Convertible Senior Notes and Capped Call Transactions” for the carrying amount and estimated fair value of the Company's 2025 Notes as of March 31, 2022. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Leases | LEASES The Company has various operating leases for office space, vehicles and office equipment that expire through 2032. The lease agreements generally do not contain any material residual value guarantees or material restrictive covenants. Below is a summary of the Company's operating right-of-use assets and operating lease liabilities (in thousands): March 31, 2022 (unaudited) Operating right-of-use assets $ 61,351 Operating lease liabilities, current $ (9,240) Operating lease liabilities, long-term (65,786) Total operating lease liabilities $ (75,026) Operating lease liabilities, current are included within accrued expenses and other short-term liabilities Some leases include one or more options to renew. The exercise of lease renewal options is typically at the Company's sole discretion; therefore, the majority of renewals to extend the lease terms are not included in our right-of-use assets and lease liabilities as they are not reasonably certain of exercise. The Company regularly evaluates the renewal options, and, when it is reasonably certain of exercise, it will include the renewal period in its lease term. New lease modifications result in remeasurement of the right-of-use asset and lease liability. Some of the real estate leases contain variable lease payments, including payments based on a Consumer Price Index ("CPI"). Variable lease payments based on a CPI are initially measured using the index in effect at lease adoption. Additional payments based on the change in a CPI are recorded as a period expense when incurred. The Company has deposit guarantees issued by a financial institution to secure various operating lease agreements in connection with its office space. Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of March 31, 2022, are as follows (in thousands): March 31, 2022 (unaudited) 2022 $ 8,329 2023 11,527 2024 9,729 2025 9,767 2026 9,879 Thereafter 34,296 Total undiscounted lease payments $ 83,527 Less: Imputed interest (8,501) Present value of lease liabilities $ 75,026 The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March 31, 2022: Remaining lease term and discount rate: Weighted average remaining lease term (years) 7.99 Weighted average discount rate 2.87 % Total operating lease cost for the three months ended March 31, 2022 was $2,309, inclusive of sublease income of $100. Total operating lease cost for the three months ended March 31, 2021 was $1,440. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | GOODWILL AND INTANGIBLE ASSETS On October 29, 2020, the Company completed the acquisition of the share capital of Polyrize Security Ltd. ("Polyrize"), a provider of software that maps and analyzes relationships between users and data across a number of cloud applications and services. Goodwill Goodwill represents the excess of the purchase price over the identifiable tangible and intangible assets acquired less liabilities assumed arising from business combinations. The Company believes the goodwill represents the synergies expected from expanded market opportunities when integrating with its offerings. There were no additions, impairments or any other changes to the carrying amount of goodwill during the three months ended March 31, 2022 or during prior periods. Intangible Assets Total cost and amortization of intangible assets is comprised of the following (in thousands, except useful life): Estimated Useful Life March 31, 2022 Intangible assets, net (in years) (unaudited) Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 2,179 Total intangible assets, net $ 3,931 Intangible assets are expensed on a straight-line basis over the useful life of the asset. The Company recorded amortization expense of $381 and $384 for the three months ended March 31, 2022 and 2021. The following table summarizes estimated future amortization expense of our intangible assets as of March 31, 2022 (in thousands): Years ending December 31, Amount 2022 1,143 2023 1,525 2024 1,263 Total future amortization expense $ 3,931 |
Convertible Senior Notes and Ca
Convertible Senior Notes and Capped Call Transactions | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Convertible Senior Notes and Capped Call Transactions | CONVERTIBLE SENIOR NOTES AND CAPPED CALL TRANSACTIONS On May 11, 2020, the Company issued the 2025 Notes pursuant to an Indenture dated May 11, 2020 (the “Indenture”), between the Company and U.S. Bank National Association, as trustee. The offering consisted of $220,000 aggregate principal amount plus the full exercise of the initial purchasers’ option to purchase up to an additional $33,000 aggregate principal amount. The net proceeds to the Company after the initial purchaser discount and issuance costs were approximately $245,158. The Company used $29,348 of the net proceeds from the offering to pay the cost of the capped call transactions described below. The 2025 Notes will mature on August 15, 2025, unless earlier converted, redeemed or repurchased. Interest will be payable semi-annually in arrears on February 15 and August 15 of each year, beginning on August 15, 2020, at a rate of 1.25% per year. The initial conversion rate for the 2025 Notes is 32.5668 shares of the Company’s common stock for each $1,000 principal amount of the 2025 Notes, which is equivalent to an initial conversion price of approximately $30.71 per share. The conversion rate is subject to adjustment in specified events. The 2025 Notes are convertible into shares of the Company’s common stock, at the option of a holder, prior to the close of business on the business day immediately preceding February 15, 2025, under certain conditions. In addition, on or after February 15, 2025, a holder may convert all or any portion of its 2025 Notes at any time. During the three months ended March 31, 2022, the conversion feature of the 2025 Notes was triggered and therefore the 2025 Notes are currently convertible, in whole or in part, at the option of the holders from April 1, 2022 through June 30, 2022. Whether the 2025 Notes will be convertible following such period will depend on the continued satisfaction of this condition or another conversion condition. The Company has not received any conversion notices through the issuance date of our consolidated financial statements. Since the Company may elect to repay the 2025 Notes in cash, shares of our common stock, or a combination of both, it has continued to classify the 2025 Notes as long-term debt on its consolidated balance sheet as of March 31, 2022. The 2025 Notes are not redeemable at the Company’s option prior to August 20, 2023. The Company may redeem the 2025 Notes for cash, at its option, subject to the terms and conditions provided in the Indenture. Prior to the adoption of ASU 2020-06 on January 1, 2022, the Company separated the 2025 Notes into liability and equity components. The carrying amounts of the liability components of the 2025 Notes were calculated by measuring the fair value of similar debt instruments that do not have an associated convertible feature. The carrying amounts of the equity components, representing the conversion option, were determined by deducting the fair value of the liability components from the par value of the 2025 Notes. This difference represented the debt discount that was amortized to interest expense using the effective interest rate method. The carrying amount of the equity components representing the conversion option was approximately $31,779 for the 2025 Notes and were recorded in additional paid-in capital. In addition, the Company allocated transaction costs related to the issuance of the 2025 Notes to the liability and equity components using the same proportions as the initial carrying value of the Notes. Transaction costs attributable to the liability component were approximately $6,857 and were being amortized to interest expense at an effective interest method rate of 4.51%. Transaction costs attributable to the equity component were approximately $985 and were netted with the equity component of the 2025 Notes in additional paid-in capital. Following the adoption of ASU 2020-06 on January 1, 2022, which the Company elected to adopt using a modified retrospective approach, the Company no longer separates the 2025 Notes into liability and equity components. The cumulative effect of the accounting change as of January 1, 2022 was a decrease to accumulated deficit of $8,647, a decrease in additional paid-in capital of $30,794 and an increase in liabilities of $22,147 on its consolidated balance sheets. Comparative prior year periods were not adjusted. In connection with the adoption, the Company calculated an effective interest rate of 1.87%. The net carrying amount of the 2025 Notes was as follows (in thousands): March 31, 2022 (unaudited) Principal $ 253,000 Unamortized issuance costs (5,154) Net carrying amount $ 247,846 The interest expense recognized related to the 2025 Notes for the three months ended March 31, 2022 and 2021 was as follows (in thousands) : Three Months Ended 2022 2021 (unaudited) Contractual interest expense $ 791 $ 790 Amortization of debt discount — 1,389 Amortization of debt issuance costs 369 300 Total $ 1,160 $ 2,479 As of March 31, 2022 , the total estimated fair value of the 2025 Notes was approximately $418,080. The fair value was determined based on the closing trading price per $100 of the 2025 Notes as of the last day of trading for the period. The fair value of the 2025 Notes is primarily affected by the trading price of our common stock and market interest rates. The fair value of the 2025 Notes is considered a Level 2 within the fair value hierarchy and was determined based on inputs that are observable in the market or that could be derived from, or corroborated with, observable market data, quoted price of the 2025 Notes in an over-the-counter market. Capped Call Transactions In May 2020, in connection with the pricing of the 2025 Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”). The Capped Call Transactions are generally expected to reduce the potential dilution to the Company’s common stock upon any conversion of the 2025 Notes and/or offset any cash payments the Company is required to make in excess of the principal amount of converted 2025 Notes, as the case may be, with such reduction and/or offset subject to a cap initially equal to $47.24 (the "Cap Price"). The Capped Call Transactions are separate transactions, and are not part of the terms of the 2025 Notes and will not change the holders’ rights under the 2025 Notes. As the Capped Call Transactions are considered indexed to the Company's stock and are considered equity classified, they are recorded in stockholders’ equity on the consolidated balance sheet and are not accounted for as derivatives. The cost of the Capped Call Transactions was approximately $29,348 and was recorded as a reduction to additional paid-in capital. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Stockholders' Equity | STOCKHOLDERS’ EQUITY a. Stock plans: On December 30, 2005, the Company’s board of directors adopted the Varonis Systems, Inc. 2005 Stock Plan (the “2005 Plan”). As of December 31, 2013, the Company had reserved 14,139,957 shares of common stock available for issuance to employees, directors, officers and consultants of the Company and its subsidiaries. The awards generally vest over four years. No awards were granted under the 2005 Plan subsequent to December 31, 2013, and no further awards will be granted under the 2005 Plan. On November 14, 2013, the Company’s board of directors adopted the Varonis Systems, Inc. 2013 Omnibus Equity Incentive Plan (the “2013 Plan”) which was subsequently approved by the Company’s stockholders. The Company initially reserved 5,713,899 shares of common stock for issuance under the 2013 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2013 Plan was increased on January 1, 2016 and has been, and will be, increased on each January 1 thereafter by four percent (4%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase (rounded down to the nearest whole share), but the amount of each increase will be limited to the number of shares of common stock necessary to bring the total number of shares of Common Stock available for grant and issuance under the 2013 Plan to five percent (5%) of the number of shares of common stock issued and outstanding on each December 31. Since January 1, 2016, the share reserve under the 2013 Plan has been automatically increased by an aggregate of 24,217,741 shares. Awards granted under the 2013 Plan generally vest over four years. Any award that is forfeited or canceled before expiration becomes available for future grants under the 2013 Plan. On October 22, 2020, and as part of the acquisition, the Company’s board of directors approved the assumption of a certain portion of Polyrize Options pursuant to the terms and conditions of the Polyrize 2019 Share Incentive (“Polyrize Plan”). A summary of employees’ stock options activities during the three months ended March 31, 2022 is as follows: Three Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2022 803,870 $ 7.077 $ 33,524 2.747 Granted — $ — Exercised (3,208) $ 7.123 Forfeited and expired — $ — Options outstanding as of March 31, 2022 800,662 $ 7.077 $ 32,397 2.501 Options exercisable as of March 31, 2022 786,922 $ 7.101 $ 31,822 2.407 The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the period. Total intrinsic value of options exercised for the three months ended March 31, 2022 was $111. As of March 31, 2022, there was $418 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2005 Plan, 2013 Plan and Polyrize Plan. This cost is expected to be recognized over a weighted-average period of approximately 1.594 years. b. The options outstanding as of March 31, 2022 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of March 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding Options exercisable as of March 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $ 4.157 — 5.682 224,661 2.712 $ 4.883 210,921 2.377 $ 4.821 $ 6.503 — 8.077 430,099 2.311 $ 7.111 430,099 2.311 $ 7.111 $9.960 120,180 2.896 $ 9.960 120,180 2.896 $ 9.960 $13.287 25,722 1.975 $ 13.287 25,722 1.975 $ 13.287 800,662 2.501 $ 7.077 786,922 2.407 $ 7.101 c. Options issued to consultants: The Company’s outstanding options granted to consultants for services as of March 31, 2022 (unaudited) were as follows: Number of options outstanding and exercisable as of March 31, 2022 Exercise price Exercisable August 2013 4,500 $ 7.047 August 2023 March 2014 4,650 $ 13.287 March 2024 May 2014 3,000 $ 7.337 May 2024 November 2014 7,500 $ 7.220 November 2024 February 2016 3,000 $ 5.623 February 2026 22,650 d. Restricted stock units ("RSUs") and performance stock units ("PSU"): A summary of RSUs and PSUs for employees, consultants and non-employee directors of the Company for the three months ended March 31, 2022 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2022 7,726,125 $ 42.53 Granted 3,366,541 $ 43.20 Vested (2,548,923) $ 32.66 Forfeited (172,193) $ 46.28 Unvested balance – March 31, 2022 8,371,550 $ 45.73 As of March 31, 2022, there was $344,959 of total unrecognized compensation cost related to employees and non-employees unvested restricted stock units and performance stock units which is expected to be recognized over a weighted-average period of 2.696 years. e. 2015 Employee Stock Purchase Plan: On May 5, 2015, the Company’s stockholders approved the Varonis Systems, Inc. 2015 Employee Stock Purchase Plan (the “ESPP”), which the Company’s board of directors had adopted on March 19, 2015. The ESPP became effective as of June 30, 2015. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value of the Company’s common stock on the first day or last trading day in the offering period, subject to any plan limitations. The Company initially reserved 1,500,000 shares of common stock for issuance under the ESPP. The number of shares available for issuance under the ESPP was increased on January 1, 2016 and has been, and will be, increased each January 1 thereafter, by an amount equal to the lesser of (i) one percent (1%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase, except that the amount of each such increase will be limited to the number of shares of common stock necessary to bring the total number of shares of common stock available for issuance under the ESPP to two percent (2%) of the number of shares of common stock issued and outstanding on each such December 31, or (ii) 1,200,000 shares of common stock. Since January 1, 2016, the share reserve under the ESPP has been automatically increased by an aggregate of 3,004,765 shares. The ESPP will continue in effect until the earlier of (i) the date when no shares of common stock are available for issuance thereunder or (ii) June 30, 2025; unless terminated prior thereto by the Company’s board of directors or compensation committee, each of which has the right to terminate the ESPP at any time. f. Stock-based compensation expense for employees and consultants: The Company recognized stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Three Months Ended 2022 2021 (unaudited) Cost of revenues $ 3,087 $ 1,589 Research and development 12,600 7,158 Sales and marketing 13,096 7,742 General and administrative 7,215 4,890 Total $ 35,998 $ 21,379 g. Common stock split: On February 8, 2021, the Company announced a three-for-one split of its common stock to stockholders of record as of the close of business on March 12, 2021. Trading of the Company's common stock began on a split-adjusted basis on March 15, 2021. h. Follow-on offering: |
Geographic Information and Majo
Geographic Information and Major Customer Data | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Geographic Information and Major Customer Data | GEOGRAPHIC INFORMATION AND MAJOR CUSTOMER DATA Summary information about geographic areas: ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The Company manages its business on the basis of one reportable segment and unit and derives revenues from licensing of software and sales of professional services, maintenance and technical support (see Note 1 above for a brief description of the Company’s business). The following is a summary of revenues within geographic areas (in thousands): Three Months Ended 2022 2021 (unaudited) Revenues based on customer’s location: North America $ 69,141 $ 52,806 EMEA (*) 24,209 20,234 Rest of World 2,911 1,745 Total revenues $ 96,261 $ 74,785 (*) Sales to customers in France did not exceed 10% of total revenues for the three months ended March 31, 2022 and accounted for 10.3% of total revenues for the three months ended March 31, 2021. For the three months ended March 31, 2022 and 2021, respectively, there were no sales to a single customer exceeding 10% of total revenues. The following is a summary of long-lived assets, including property and equipment, net and operating lease right-of-use assets, within geographic areas (in thousands): As of As of March 31, 2022 December 31, 2021 (unaudited) Long-lived assets by geographic region: United States $ 42,142 $ 43,317 Israel 40,854 40,169 Ireland 15,911 16,341 Other 1,939 2,220 $ 100,846 $ 102,047 |
General (Policies)
General (Policies) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | b. Basis of Presentation: The accompanying unaudited consolidated interim financial statements have been prepared in accordance with Article 10 of Regulation S-X, “Interim Financial Statements” and the rules and regulations for Form 10-Q of the Securities and Exchange Commission (the “SEC”). Pursuant to those rules and regulations, the Company has condensed or omitted certain information and footnote disclosure it normally includes in its annual consolidated financial statements prepared in accordance with U.S. generally accepted accounting principles (“GAAP”). Certain amounts in prior periods' financial statements have been recast and reclassified to conform to the current year's presentation. In management’s opinion, the Company has made all adjustments (consisting only of normal, recurring adjustments, except as otherwise indicated) necessary to fairly present its consolidated financial position, results of operations and cash flows. The Company’s interim period operating results do not necessarily indicate the results that may be expected for any other interim period or for the full fiscal year. These financial statements and accompanying notes should be read in conjunction with the 2021 consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for its fiscal year ended December 31, 2021 filed with the SEC on February 8, 2022 (the “2021 Form 10-K”). There have been no changes in the significant accounting policies from those that were disclosed in the audited consolidated financial statements for the fiscal year ended December 31, 2021 included in the 2021 Form 10-K, unless otherwise stated. |
Revenue Recognition and Contract Costs | c. Revenue Recognition: The Company generates revenues in the form of software license fees and related maintenance and services fees. Subscription revenues are sold on-premises and are comprised of time-based licenses whereby customers use the Company's software (including support and unspecified upgrades and enhancements when and if they are available) for a specified period. In the second half of 2021, the Company launched its cloud offering that allows customers to use hosted software. Maintenance and services primarily consist of fees for maintenance and services of perpetual license sales (including support and unspecified upgrades and enhancements when and if they are available) and to a lesser extent professional services, which focus on both operationalizing the software and training the Company's customers to fully leverage the use of its products, although the user can benefit from the software without the Company's assistance. The Company sells its products worldwide to a network of distributors and value-added resellers, and payment is typically due within 30 to 60 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, “Revenue from Contracts with Customers.” As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. Subscription software and perpetual license revenues are recognized at the point of time when the software license has been delivered and the benefit of the asset has transferred. As we have successfully transitioned to a subscription model which has resulted in an immaterial amount of perpetual license revenues, these revenues are included within the subscriptions line of the consolidated statements of operations. Maintenance associated with subscription licenses is recognized ratably over the term of the agreement. In 2021, the Company launched its cloud offering that allows customers to use hosted software, and its revenue is recognized ratably over the associated contract period. As the Company only introduced these licenses in the second half of 2021, the total associated revenues have not yet been material. The Company recognizes revenues from maintenance of perpetual license sales ratably over the term of the underlying maintenance contract. The term of the maintenance contract is usually one year. Renewals of maintenance contracts create new performance obligations that are satisfied over the new term with the revenues recognized ratably over the period. Revenues from professional services consist mostly of time and material services. The performance obligations are satisfied, and revenues are recognized, when the services are provided or once the service term has expired. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations. The license is distinct upon delivery as the customer can derive the economic benefit of the software without any professional services, updates or technical support. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of the total consideration of the contract. For maintenance, the Company determines the standalone selling prices based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. For software licenses, the Company uses the residual approach to determine the standalone selling prices due to the lack of history of selling software license on a standalone basis and the highly variable sales price. Trade receivables are generally recorded at the invoice amount mostly for a one-year period, net of an allowance for credit losses. d. Contract Costs: The Company pays sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions earned by employees are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately four years. Sales commissions for renewal contracts are capitalized and then amortized on a straight-line basis. Amortization expenses related to these costs are included in sales and marketing expenses in the accompanying consolidated statements of operations. |
Derivative Instruments | e. Derivative Instruments: The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”). |
Income Taxes | f. Income Taxes: The Company operates in the U.S. and in foreign jurisdictions and is subject to taxes in each country or jurisdiction in which it conducts business. Earnings from its non-U.S. activities are subject to local country income tax and may be subject to U.S. income tax. To date, on a consolidated basis, the Company has incurred accumulated net losses and has not recorded any U.S. federal tax provision. Because of its history of U.S. net operating losses, the Company has established a full valuation allowance against potential future benefits for deferred tax assets, including loss carryforwards, in that jurisdiction. In some foreign tax jurisdictions, the Company bases its interim tax accruals on the annual estimated effective tax rate applicable to the Company and its subsidiaries, adjusted for items which are considered discrete to the period. In each quarter, the Company updates its calculation and makes a year-to-date adjustment to its tax provision as necessary. The Company's fiscal 2022 annual effective rate differs from the U.S. statutory rate primarily due to the valuation allowance recorded on its U.S. losses. For the three months ended March 31, 2022 and 2021, the Company recorded income tax expense of $1,414 and $559, respectively, comprised primarily of foreign income taxes. The Company's income tax provision could be significantly impacted by estimates surrounding its uncertain tax positions and changes to its valuation allowance in future periods. The Company reevaluates the judgments surrounding its estimates and make adjustments as appropriate each reporting period. The Company remains open to federal and state examination to the extent net carry-over unused operating losses and tax credit attributable to those years remain unutilized. As of March 31, 2022, the Company's federal tax returns for the years 2010 through the current period, excluding the 2016 tax year which was audited by the Internal Revenue Service, and most state tax returns for the years 2009 through the current period, are still open to examination. In addition, the Company is subject to the regular examinations of its income tax returns by different tax authorities. The Company regularly assess the likelihood of adverse outcomes resulting from these examinations to determine the adequacy of its provision for income taxes. |
Cash, Cash Equivalents, Marketable Securities and Short-term Investments | g. Cash, Cash Equivalents, Marketable Securities and Short-Term Investments: The Company accounts for investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities” and ASC No. 326, “Financial Instruments—Credit Losses.” The Company considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash and cash equivalents consist of cash on hand, highly liquid investments in money market funds and various deposit accounts. |
Basic and Diluted Net Loss Per Share | i. Basic and Diluted Net Loss Per Share: Basic net loss per share is computed by dividing net loss by the weighted-average number of shares of common stock outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive securities, including stock options, restricted stock units, performance stock units and the shares related to the conversion of the 1.25% Convertible Senior Notes issued by the Company on May 11, 2020 and due August 2025 in an aggregate principal amount of $253,000 (the "2025 Notes"), to the extent dilutive. Basic and diluted net loss per share was the same for each period presented as the inclusion of all potential shares of common stock outstanding would have been anti-dilutive. There were 9,194,862 and 8,913,594 potentially dilutive shares from the conversion of outstanding stock options, restricted stock units and performance stock units that were not included in the calculation of diluted net loss per share for the period ending March 31, 2022 and 2021, respectively. Additionally, 8,239,254 shares underlying the conversion option of the 2025 Notes are not considered in the calculation of diluted net loss per share as the effect would be anti-dilutive. The Company intends to settle the principal amount of the 2025 Notes in cash, shares or a combination thereof. As a result of the adoption of ASU 2020-06, the Company uses the if-converted method for calculating any potential dilutive effect on diluted net income per share, if applicable. |
Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements Not Yet Adopted | j. Recently Adopted Accounting Pronouncements: In August 2020, the FASB issued ASU 2020-06, ASC Subtopic 470-20 “Debt—Debt with Conversion and Other Options” and ASC subtopic 815-40 “Hedging—Contracts in Entity’s Own Equity.” The standard simplified the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts on an entity’s own equity. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on earnings per share. The Company adopted this standard on January 1, 2022 using a modified retrospective basis which resulted in a decrease to accumulated deficit of $8,647, a decrease in additional paid-in capital of $30,794 and an increase in liabilities of $22,147 on its consolidated balance sheets. For more information, refer to Note 5. n. Recently Issued Accounting Pronouncements Not Yet Adopted: The Company has reviewed recent accounting pronouncements and concluded that they are either not applicable to its business or that no material effect is expected on the consolidated financial statements as a result of their future adoption. |
General (Tables)
General (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value | Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands): Assets (liabilities) as of March 31, 2022 (unaudited) Assets (liabilities) as of December 31, 2021 Notional Fair Notional Fair Foreign exchange forward contract derivatives in cash flow hedging relationships included in prepaid expenses and other current assets $ 97,165 $ 2,904 $ 115,710 $ 6,083 Foreign exchange forward contract derivatives for monetary items included in accrued expenses and other short-term liabilities $ 29,414 $ (30) $ 42,056 $ (62) |
Cash, Cash Equivalents and Investments | Cash, cash equivalents, marketable securities and deposits consist of the following (in thousands): As of March 31, 2022 (unaudited) Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 384,062 $ — $ — $ 384,062 Corporate bonds 2,454 — *) 2,454 Total $ 386,516 $ — $ *) $ 386,516 Marketable securities US Treasury securities $ 14,005 $ — $ (8) $ 13,997 Commercial paper 9,573 — — 9,573 Corporate bonds 4,804 *) (2) 4,802 Total $ 28,382 $ *) $ (10) $ 28,372 Long-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 *) Represents an amount lower than $1 As of December 31, 2021 Amortized Gross Gross Fair Cash and cash equivalents Money market funds $ 414,942 $ — $ — $ 414,942 Total $ 414,942 $ — $ — $ 414,942 Short-term deposits Term bank deposits $ 1,850 $ — $ — $ 1,850 Total $ 1,850 $ — $ — $ 1,850 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis | The following table sets forth the Company’s assets and liabilities that were measured at fair value as of March 31, 2022 and December 31, 2021 by level within the fair value hierarchy (in thousands): As of March 31, 2022 (unaudited) As of December 31, 2021 Level I Level Level III Total Level I Level Level III Total Financial assets: Cash equivalents: Money market funds $ 384,062 $ — $ — $ 384,062 $ 414,942 $ — $ — $ 414,942 Corporate bonds — 2,454 — 2,454 — — — — Marketable securities: US Treasury securities 13,997 — — 13,997 — — — — Commercial paper — 9,573 — 9,573 — — — — Corporate bonds — 4,802 — 4,802 — — — — Prepaid expenses and other current assets: Forward foreign exchange contracts — 2,904 — 2,904 — 6,083 — 6,083 Financial liabilities: Accrued expenses and other short-term liabilities: Forward foreign exchange contracts — (30) — (30) — (62) — (62) Total financial assets (liabilities) $ 398,059 $ 19,703 $ — $ 417,762 $ 414,942 $ 6,021 $ — $ 420,963 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Leases [Abstract] | |
Summary of Right-of-Use Assets and Lease Liabilities | Below is a summary of the Company's operating right-of-use assets and operating lease liabilities (in thousands): March 31, 2022 (unaudited) Operating right-of-use assets $ 61,351 Operating lease liabilities, current $ (9,240) Operating lease liabilities, long-term (65,786) Total operating lease liabilities $ (75,026) |
Lessee, Operating Lease, Liability, Maturity | Minimum lease payments for the Company's right-of-use assets over the remaining lease periods as of March 31, 2022, are as follows (in thousands): March 31, 2022 (unaudited) 2022 $ 8,329 2023 11,527 2024 9,729 2025 9,767 2026 9,879 Thereafter 34,296 Total undiscounted lease payments $ 83,527 Less: Imputed interest (8,501) Present value of lease liabilities $ 75,026 |
Summary of Weighted Average Remaining Lease Terms and Discount Rates | The weighted average remaining lease terms and discount rates for all operating leases were as follows as of March 31, 2022: Remaining lease term and discount rate: Weighted average remaining lease term (years) 7.99 Weighted average discount rate 2.87 % |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Total cost and amortization of intangible assets is comprised of the following (in thousands, except useful life): Estimated Useful Life March 31, 2022 Intangible assets, net (in years) (unaudited) Developed technology & trademarks 4 $ 6,110 Total intangible assets 6,110 Less: Accumulated amortization 2,179 Total intangible assets, net $ 3,931 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | The following table summarizes estimated future amortization expense of our intangible assets as of March 31, 2022 (in thousands): Years ending December 31, Amount 2022 1,143 2023 1,525 2024 1,263 Total future amortization expense $ 3,931 |
Convertible Senior Notes and _2
Convertible Senior Notes and Capped Call Transactions (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount of Liability and Equity Components of Convertible Notes | The net carrying amount of the 2025 Notes was as follows (in thousands): March 31, 2022 (unaudited) Principal $ 253,000 Unamortized issuance costs (5,154) Net carrying amount $ 247,846 |
Schedule of Interest Expense | The interest expense recognized related to the 2025 Notes for the three months ended March 31, 2022 and 2021 was as follows (in thousands) : Three Months Ended 2022 2021 (unaudited) Contractual interest expense $ 791 $ 790 Amortization of debt discount — 1,389 Amortization of debt issuance costs 369 300 Total $ 1,160 $ 2,479 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Share-based Compensation, Stock Options, Activity | A summary of employees’ stock options activities during the three months ended March 31, 2022 is as follows: Three Months Ended Number Weighted Aggregate Weighted average Options outstanding as of January 1, 2022 803,870 $ 7.077 $ 33,524 2.747 Granted — $ — Exercised (3,208) $ 7.123 Forfeited and expired — $ — Options outstanding as of March 31, 2022 800,662 $ 7.077 $ 32,397 2.501 Options exercisable as of March 31, 2022 786,922 $ 7.101 $ 31,822 2.407 |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | The options outstanding as of March 31, 2022 (unaudited) have been separated into ranges of exercise price as follows: Range of exercise price Options outstanding as of March 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price of options outstanding Options exercisable as of March 31, 2022 Weighted average remaining contractual life (years) Weighted average exercise price of options exercisable $ 4.157 — 5.682 224,661 2.712 $ 4.883 210,921 2.377 $ 4.821 $ 6.503 — 8.077 430,099 2.311 $ 7.111 430,099 2.311 $ 7.111 $9.960 120,180 2.896 $ 9.960 120,180 2.896 $ 9.960 $13.287 25,722 1.975 $ 13.287 25,722 1.975 $ 13.287 800,662 2.501 $ 7.077 786,922 2.407 $ 7.101 |
Schedule of Stockholders' Equity Note, Warrants or Rights | The Company’s outstanding options granted to consultants for services as of March 31, 2022 (unaudited) were as follows: Number of options outstanding and exercisable as of March 31, 2022 Exercise price Exercisable August 2013 4,500 $ 7.047 August 2023 March 2014 4,650 $ 13.287 March 2024 May 2014 3,000 $ 7.337 May 2024 November 2014 7,500 $ 7.220 November 2024 February 2016 3,000 $ 5.623 February 2026 22,650 |
Schedule of Share-based Payment Arrangement, Restricted Stock Unit and Performance Stock Unit Activity | A summary of RSUs and PSUs for employees, consultants and non-employee directors of the Company for the three months ended March 31, 2022 (unaudited) is as follows: Number of Weighted- Unvested balance - January 1, 2022 7,726,125 $ 42.53 Granted 3,366,541 $ 43.20 Vested (2,548,923) $ 32.66 Forfeited (172,193) $ 46.28 Unvested balance – March 31, 2022 8,371,550 $ 45.73 |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs | The Company recognized stock-based compensation expense in the consolidated statements of operations as follows (in thousands): Three Months Ended 2022 2021 (unaudited) Cost of revenues $ 3,087 $ 1,589 Research and development 12,600 7,158 Sales and marketing 13,096 7,742 General and administrative 7,215 4,890 Total $ 35,998 $ 21,379 |
Geographic Information and Ma_2
Geographic Information and Major Customer Data (Tables) | 3 Months Ended |
Mar. 31, 2022 | |
Segment Reporting [Abstract] | |
Revenue from External Customers by Geographic Areas | The following is a summary of revenues within geographic areas (in thousands): Three Months Ended 2022 2021 (unaudited) Revenues based on customer’s location: North America $ 69,141 $ 52,806 EMEA (*) 24,209 20,234 Rest of World 2,911 1,745 Total revenues $ 96,261 $ 74,785 (*) Sales to customers in France did not exceed 10% of total revenues for the three months ended March 31, 2022 and accounted for 10.3% of total revenues for the three months ended March 31, 2021. |
Long-lived Assets by Geographic Areas | The following is a summary of long-lived assets, including property and equipment, net and operating lease right-of-use assets, within geographic areas (in thousands): As of As of March 31, 2022 December 31, 2021 (unaudited) Long-lived assets by geographic region: United States $ 42,142 $ 43,317 Israel 40,854 40,169 Ireland 15,911 16,341 Other 1,939 2,220 $ 100,846 $ 102,047 |
General (Details Textual)
General (Details Textual) | Aug. 21, 2020USD ($) | Mar. 31, 2022USD ($)subsidiaryshares | Mar. 31, 2021USD ($)shares | Dec. 31, 2021USD ($) | Jan. 01, 2022USD ($) | May 11, 2020USD ($) |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Operations commenced date | Jan. 1, 2005 | |||||
Subsidiary or equity method investee, number | subsidiary | 12 | |||||
Deferred revenue, revenue recognized | $ 39,029,000 | |||||
Sales returns | $ 0 | $ 0 | ||||
Capitalized contract cost, amortization period (years) | 4 years | |||||
Gain related to the effective portion of the cash flow hedges | $ 420,000 | $ 2,036,000 | ||||
Derivative instruments not designated as hedging instruments, gain, net | 741,000 | 771,000 | ||||
Income tax expense | 1,414,000 | $ 559,000 | ||||
Accumulated deficit | (467,719,000) | (427,603,000) | ||||
Additional paid-in capital | $ 1,000,493,000 | $ 1,018,005,000 | ||||
Cumulative Effect, Period of Adoption, Adjustment | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accumulated deficit | $ 8,647,000 | |||||
Additional paid-in capital | (30,794,000) | |||||
Liabilities | $ 22,147,000 | |||||
Restricted Stock Units and Stock Options | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | shares | 9,194,862 | 8,913,594 | ||||
Foreign Exchange Contract | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Gain related to the effective portion of the cash flow hedges | $ 420,000 | $ 547,000 | ||||
Maintenance | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Revenue, performance obligation, description of timing | one year | |||||
Revolving Credit Facility | Line of Credit | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Debt instrument, term | 3 years | |||||
Line of credit facility, maximum borrowing capacity | $ 70,000,000 | |||||
2025 Senior Notes | Convertible Debt Securities | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Antidilutive securities excluded from computation of Earnings Per Share, amount (in shares) | shares | 8,239,254 | |||||
2025 Senior Notes | Convertible Debt | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Interest rate, stated percentage | 1.25% | |||||
Principal amount | $ 253,000 |
General - Derivative Instrument
General - Derivative Instruments Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash Flow Hedging | Prepaid Expenses and Other Current Assets | ||
Derivative [Line Items] | ||
Notional Amount | $ 97,165 | $ 115,710 |
Derivative assets, fair value | 2,904 | 6,083 |
Fair Value Hedging | Prepaid Expenses and Other Current Assets and Accrued Expenses and Other Short-Term Liabilities | ||
Derivative [Line Items] | ||
Notional Amount | 29,414 | 42,056 |
Derivative liability, fair value | $ (30) | $ (62) |
General - Cash, Cash Equivalent
General - Cash, Cash Equivalents and Short-term Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Cash and cash equivalents | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 386,516 | $ 414,942 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | |
Fair Value | 386,516 | 414,942 |
Cash and cash equivalents | Money market funds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 384,062 | 414,942 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 384,062 | 414,942 |
Cash and cash equivalents | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,454 | |
Gross Unrealized Gains | 0 | |
Fair Value | 2,454 | |
Marketable securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,382 | |
Gross Unrealized Losses | (10) | |
Fair Value | 28,372 | |
Marketable securities | US Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,005 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (8) | |
Fair Value | 13,997 | |
Marketable securities | Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,573 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 9,573 | |
Marketable securities | Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,804 | |
Gross Unrealized Losses | (2) | |
Fair Value | 4,802 | |
Long-term deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,850 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,850 | |
Long-term deposits | Term bank deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,850 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,850 | |
Short-term deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,850 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | 1,850 | |
Short-term deposits | Term bank deposits | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,850 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Fair Value | $ 1,850 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - Fair Value, Recurring - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | $ 417,762 | $ 420,963 |
Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, current | 2,904 | 6,083 |
Derivative liabilities | (30) | (62) |
US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 13,997 | 0 |
Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,573 | 0 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,802 | 0 |
Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 384,062 | 414,942 |
Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,454 | 0 |
Level I | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 398,059 | 414,942 |
Level I | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, current | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level I | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 13,997 | 0 |
Level I | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level I | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level I | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 384,062 | 414,942 |
Level I | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level II | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 19,703 | 6,021 |
Level II | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, current | 2,904 | 6,083 |
Derivative liabilities | (30) | (62) |
Level II | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level II | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 9,573 | 0 |
Level II | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 4,802 | 0 |
Level II | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level II | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 2,454 | 0 |
Level III | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total financial assets (liabilities) | 0 | 0 |
Level III | Forward foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative asset, current | 0 | 0 |
Derivative liabilities | 0 | 0 |
Level III | US Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level III | Commercial paper | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level III | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Marketable securities | 0 | 0 |
Level III | Money market funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | 0 | 0 |
Level III | Corporate bonds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash equivalents | $ 0 | $ 0 |
Leases - Summary of Right-of-Us
Leases - Summary of Right-of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Operating lease right-of-use asset | $ 61,351 | $ 63,749 |
Operating lease liabilities, current | (9,240) | |
Operating lease liabilities, long-term | (65,786) | $ (68,694) |
Total operating lease liabilities | $ (75,026) |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Leases [Abstract] | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other short-term liabilities | |
Operating lease cost | $ 2,309 | $ 1,440 |
Sublease income | $ 100 |
Leases - Minimum Lease Payments
Leases - Minimum Lease Payments for Right-of-Use Assets (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Leases [Abstract] | |
2022 | $ 8,329 |
2023 | 11,527 |
2024 | 9,729 |
2025 | 9,767 |
2026 | 9,879 |
Thereafter | 34,296 |
Total undiscounted lease payments | 83,527 |
Less: Imputed interest | (8,501) |
Present value of lease liabilities | $ 75,026 |
Leases - Summary of Weighted Av
Leases - Summary of Weighted Average Remaining Lease Terms and Discount Rates (Details) | Mar. 31, 2022 |
Leases [Abstract] | |
Weighted average remaining lease term (years) | 7 years 11 months 26 days |
Weighted average discount rate | 2.87% |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Cost and Amortization of Intangible Assets (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Total intangible assets | $ 6,110 |
Less: Accumulated amortization | 2,179 |
Total intangible assets, net | $ 3,931 |
Developed technology & trademarks | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated Useful Life (in years) | 4 years |
Total intangible assets | $ 6,110 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of intangible assets | $ 381 | $ 384 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Mar. 31, 2022USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2022 | $ 1,143 |
2023 | 1,525 |
2024 | 1,263 |
Total intangible assets, net | $ 3,931 |
Convertible Senior Notes and _3
Convertible Senior Notes and Capped Call Transactions - Narrative (Details) | May 11, 2020USD ($) | Mar. 31, 2022USD ($)$ / shares | Jan. 01, 2022USD ($) | Dec. 31, 2021USD ($) |
Debt Instrument [Line Items] | ||||
Accumulated deficit | $ (467,719,000) | $ (427,603,000) | ||
Additional paid-in capital | $ 1,000,493,000 | 1,018,005,000 | ||
Cap price (in dollars per share) | $ / shares | $ 47.24 | |||
Cumulative Effect, Period of Adoption, Adjustment | ||||
Debt Instrument [Line Items] | ||||
Accumulated deficit | $ 8,647,000 | |||
Additional paid-in capital | (30,794,000) | |||
Liabilities | $ 22,147,000 | |||
2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Fair value of the notes | $ 418,080,000 | |||
Convertible Debt | ||||
Debt Instrument [Line Items] | ||||
Purchases of capped calls | $ 29,348,000 | |||
Convertible Debt | 2025 Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount excluding purchasers' option | 220,000,000 | |||
Additional amount included in principal from exercised options | 33,000,000 | |||
Proceeds from issuance of convertible senior notes, net of issuance costs | $ 245,158,000 | |||
Interest rate, stated percentage | 1.25% | |||
Debt instrument, convertible, conversion ratio | 0.0325668 | |||
Initial conversion price (in dollars per share) | $ / shares | $ 30.71 | |||
Carrying amount of equity component | 31,779,000 | |||
Debt issuance costs of liability component | $ 6,857,000 | |||
Interest rate, effective percentage | 1.87% | 4.51% | ||
Convertible Debt | 2025 Senior Notes | Additional paid-in capital | ||||
Debt Instrument [Line Items] | ||||
Debt issuance costs of equity component | $ 985,000 |
Convertible Senior Notes and _4
Convertible Senior Notes and Capped Call Transactions - Schedule of Convertible Notes (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Net carrying amount | $ 247,846 | $ 225,330 |
2025 Senior Notes | ||
Debt Instrument [Line Items] | ||
Principal | 253,000 | |
Unamortized issuance costs | (5,154) | |
Net carrying amount | $ 247,846 |
Convertible Senior Notes and _5
Convertible Senior Notes and Capped Call Transactions - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Debt Disclosure [Abstract] | ||
Contractual interest expense | $ 791 | $ 790 |
Amortization of debt discount | 0 | 1,389 |
Amortization of debt issuance costs | 369 | 300 |
Total | $ 1,160 | $ 2,479 |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) $ / shares in Units, $ in Thousands | Feb. 16, 2021USD ($)$ / sharesshares | Feb. 08, 2021 | Jun. 30, 2015shares | Dec. 31, 2013shares | Nov. 14, 2013shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2022USD ($)shares | Mar. 31, 2022USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Granted (in shares) | 0 | |||||||
Exercises in period, intrinsic value | $ | $ 111 | |||||||
Compensation cost not yet recognized, options | $ | $ 418 | $ 418 | $ 418 | |||||
Stock split, conversion ratio | 3 | |||||||
Public Stock Offering | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction | 7,961,538 | |||||||
Sale of stock, price per share (in dollars per share) | $ / shares | $ 65 | |||||||
Sale of stock, consideration received on transaction | $ | $ 500,034 | |||||||
Payments of stock issuance costs | $ | $ 17,466 | |||||||
Public Stock Offering - Additional Optional Shares | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Sale of stock, number of shares issued in transaction | 1,038,459 | |||||||
Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost not yet recognized, period for recognition | 1 year 7 months 2 days | |||||||
Restricted Stock Units and Performance Stock Units | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Compensation cost not yet recognized, period for recognition | 2 years 8 months 12 days | |||||||
Compensation cost not yet recognized, non-option | $ | $ 344,959 | $ 344,959 | $ 344,959 | |||||
The 2005 Stock Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, capital shares reserved for future issuance (in shares) | 14,139,957 | |||||||
Granted (in shares) | 0 | |||||||
Shares available for grant (in shares) | 0 | 0 | 0 | |||||
The 2005 Stock Plan | Options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period (in years) | 4 years | |||||||
The 2013 Omnibus Equity Award Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock, capital shares reserved for future issuance (in shares) | 5,713,899 | |||||||
Vesting period (in years) | 4 years | |||||||
Percentage of outstanding stock reserved for grant | 4.00% | |||||||
Percentage of outstanding stock maximum | 5.00% | |||||||
Capital shares reserved for future issuance, annual increase, maximum (in shares) | 24,217,741 | 24,217,741 | 24,217,741 | |||||
2015 ESPP | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Maximum employee subscription rate | 15.00% | |||||||
Purchase price of common stock, percent | 85.00% | |||||||
Number of shares authorized (in shares) | 1,500,000 | |||||||
Percent of shares increase, employee stock purchase plan | 1.00% | |||||||
Common stock availability threshold, Employee Stock Purchase Plan | 2.00% | |||||||
Shares increase threshold, employee stock purchase plan (in shares) | 1,200,000 | |||||||
Number of additional shares authorized (in shares) | 3,004,765 |
Stockholders' Equity - Stock Op
Stockholders' Equity - Stock Options Activities (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022USD ($)$ / sharesshares | Dec. 31, 2021USD ($)$ / sharesshares | |
Number | ||
Options outstanding, Balance (in shares) | shares | 803,870 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (3,208) | |
Forfeited and expired (in shares) | shares | 0 | |
Options outstanding, Balance (in shares) | shares | 800,662 | 803,870 |
Weighted average exercise price | ||
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 7.077 | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | 0 | |
Exercised, weighted average exercise price (in dollars per share) | $ / shares | 7.123 | |
Forfeited and expired, weighted average exercise price (in dollars per share) | $ / shares | 0 | |
Options outstanding, weighted average exercise price (in dollars per share) | $ / shares | $ 7.077 | $ 7.077 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options exercisable at the end of the year (in shares) | shares | 786,922 | |
Options exercisable at the end of the year, weighted average exercise price (in dollars per share) | $ / shares | $ 7.101 | |
Options outstanding, aggregate intrinsic value | $ | $ 32,397 | $ 33,524 |
Options exercisable at the end of the year, aggregate intrinsic value | $ | $ 31,822 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 6 months | 2 years 9 months |
Options exercisable at the end of the year, weighted average remaining contractual life (Year) | 2 years 4 months 28 days |
Stockholders' Equity - Options
Stockholders' Equity - Options Outstanding Separated Into Range of Exercise Price (Details) - $ / shares | 3 Months Ended | 12 Months Ended |
Mar. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average exercise price (in dollars per share) | $ 7.077 | |
Options outstanding, exercise price range (in shares) | 800,662 | |
Options outstanding, weighted average remaining contractual life (Year) | 2 years 6 months | 2 years 9 months |
Options exercisable, exercise price range (in shares) | 786,922 | |
Options exercisable, weighted average remaining contractual life (years) | 2 years 4 months 28 days | |
Weighted average exercise price of options exercisable, exercise price range (in dollars per share) | $ 7.101 | |
Range One | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in dollars per share) | 4.157 | |
Weighted average exercise price (in dollars per share) | 4.883 | |
Upper range of exercise price (in dollars per share) | $ 5.682 | |
Options outstanding, exercise price range (in shares) | 224,661 | |
Options outstanding, weighted average remaining contractual life, exercise price range (Year) | 2 years 8 months 15 days | |
Options exercisable, exercise price range (in shares) | 210,921 | |
Options exercisable, weighted average remaining contractual life, exercise price range (years) | 2 years 4 months 17 days | |
Weighted average exercise price of options exercisable, exercise price range (in dollars per share) | $ 4.821 | |
Range Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Lower range of exercise price (in dollars per share) | 6.503 | |
Weighted average exercise price (in dollars per share) | 7.111 | |
Upper range of exercise price (in dollars per share) | $ 8.077 | |
Options outstanding, exercise price range (in shares) | 430,099 | |
Options outstanding, weighted average remaining contractual life, exercise price range (Year) | 2 years 3 months 21 days | |
Options exercisable, exercise price range (in shares) | 430,099 | |
Options exercisable, weighted average remaining contractual life, exercise price range (years) | 2 years 3 months 21 days | |
Weighted average exercise price of options exercisable, exercise price range (in dollars per share) | $ 7.111 | |
Range Three | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average exercise price (in dollars per share) | $ 9.960 | |
Options outstanding, exercise price range (in shares) | 120,180 | |
Options outstanding, weighted average remaining contractual life, exercise price range (Year) | 2 years 10 months 24 days | |
Options exercisable, exercise price range (in shares) | 120,180 | |
Options exercisable, weighted average remaining contractual life, exercise price range (years) | 2 years 10 months 24 days | |
Weighted average exercise price of options exercisable, exercise price range (in dollars per share) | $ 9.960 | |
Range Four | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average exercise price (in dollars per share) | $ 13.287 | |
Options outstanding, exercise price range (in shares) | 25,722 | |
Options outstanding, weighted average remaining contractual life, exercise price range (Year) | 1 year 11 months 23 days | |
Options exercisable, exercise price range (in shares) | 25,722 | |
Options exercisable, weighted average remaining contractual life, exercise price range (years) | 1 year 11 months 23 days | |
Weighted average exercise price of options exercisable, exercise price range (in dollars per share) | $ 13.287 |
Stockholders' Equity - Outstand
Stockholders' Equity - Outstanding Options Granted to Consultants for Sales and Pre-marketing Services (Details) | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 0 |
Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 22,650 |
August 2013 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 4,500 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 7.047 |
Exercisable through | August 2023 |
March 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 4,650 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 13.287 |
Exercisable through | March 2024 |
May 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 3,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 7.337 |
Exercisable through | May 2024 |
November 2014 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 7,500 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 7.220 |
Exercisable through | November 2024 |
February 2016 | Consultants | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options for shares of common stock (in shares) | shares | 3,000 |
Granted, weighted average exercise price (in dollars per share) | $ / shares | $ 5.623 |
Exercisable through | February 2026 |
Stockholders' Equity - Restrict
Stockholders' Equity - Restricted Stock Unit and Performance Stock Unit Activity (Details) - Restricted Stock Units and Performance Stock Units | 3 Months Ended |
Mar. 31, 2022$ / sharesshares | |
Number of shares underlying outstanding RSUs and PSUs | |
Beginning Balance, restricted stock units and performance stock units (in shares) | shares | 7,726,125 |
Granted, restricted stock units and performance stock units (in shares) | shares | 3,366,541 |
Vested, restricted stock units and performance stock units (in shares) | shares | (2,548,923) |
Forfeited, restricted stock units and performance stock units (in shares) | shares | (172,193) |
Ending Balance, restricted stock units and performance stock units (in shares) | shares | 8,371,550 |
Weighted- average grant date fair value | |
Beginning Balance, weighted average grant date fair value on restricted stock units and performance stock units (in dollars per share) | $ / shares | $ 42.53 |
Granted, weighted average grant date fair value on restricted stock units and performance stock units (in dollars per share) | $ / shares | 43.20 |
Vested, weighted average grant date fair value on restricted stock units and performance stock units (in dollars per share) | $ / shares | 32.66 |
Forfeited, weighted average grant date fair value on restricted stock units and performance stock units (in dollars per share) | $ / shares | 46.28 |
Ending Balance, weighted average grant date fair value on restricted stock units and performance stock units (in dollars per share) | $ / shares | $ 45.73 |
Stockholders' Equity - Non-cash
Stockholders' Equity - Non-cash Stock-based Compensation Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 35,998 | $ 21,379 |
Cost of revenues | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 3,087 | 1,589 |
Research and development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 12,600 | 7,158 |
Sales and marketing | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | 13,096 | 7,742 |
General and administrative | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 7,215 | $ 4,890 |
Geographic Information and Ma_3
Geographic Information and Major Customer Data (Details Textual) - segment | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting [Abstract] | ||
Number of reportable segments | 1 | |
Revenue Benchmark | Geographic Concentration Risk | France | ||
Segment Reporting Information [Line Items] | ||
Concentration risk, percentage | 10.30% |
Geographic Information and Ma_4
Geographic Information and Major Customer Data - Revenues Within Geographical Areas (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2022 | Mar. 31, 2021 | |
Segment Reporting Information [Line Items] | ||
Revenue | $ 96,261 | $ 74,785 |
North America | ||
Segment Reporting Information [Line Items] | ||
Revenue | 69,141 | 52,806 |
EMEA | ||
Segment Reporting Information [Line Items] | ||
Revenue | 24,209 | 20,234 |
Rest of World | ||
Segment Reporting Information [Line Items] | ||
Revenue | $ 2,911 | $ 1,745 |
Geographic Information and Ma_5
Geographic Information and Major Customer Data - Long-lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | Mar. 31, 2022 | Dec. 31, 2021 |
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 100,846 | $ 102,047 |
United States | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 42,142 | 43,317 |
Israel | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 40,854 | 40,169 |
Ireland | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | 15,911 | 16,341 |
Other | ||
Segment Reporting Information [Line Items] | ||
Long-lived assets | $ 1,939 | $ 2,220 |