Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 20-F |
Amendment Flag | false |
Document Period End Date | Dec. 31, 2018 |
Document Fiscal Year Focus | 2018 |
Document Fiscal Period Focus | FY |
Entity Registrant Name | Wix.com Ltd. |
Entity Central Index Key | 0001576789 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Shell Company | false |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 49,269,626 |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 331,057 | $ 85,230 |
Short-term deposits | 349,619 | 115,382 |
Restricted deposit | 1,149 | 949 |
Marketable securities | 22,992 | 32,730 |
Trade receivables | 13,528 | 11,400 |
Prepaid expenses and other current assets | 11,939 | 19,246 |
Total current assets | 730,284 | 264,937 |
LONG-TERM ASSETS: | ||
Prepaid expenses and other long-term assets | 3,065 | 3,823 |
Property and equipment, net | 21,947 | 16,201 |
Marketable securities | 47,225 | |
Intangible assets, net | 24,429 | 27,252 |
Goodwill | 17,800 | 17,800 |
Total long-term assets | 114,466 | 65,076 |
TOTAL ASSETS | 844,750 | 330,013 |
CURRENT LIABILITIES: | ||
Trade payables | 45,567 | 34,240 |
Employees and payroll accruals | 32,036 | 28,067 |
Deferred revenues | 227,226 | 202,482 |
Accrued expenses and other current liabilities | 35,564 | 37,592 |
Total current liabilities | 340,393 | 302,381 |
LONG-TERM LIABILITIES: | ||
Convertible notes | 337,777 | |
Long-term deferred revenues | 12,494 | 14,329 |
Long-term deferred tax liabilities | 602 | 764 |
Long-term loan | 1,219 | 1,219 |
Total long-term liabilities | 352,092 | 16,312 |
TOTAL LIABILITIES | 692,485 | 318,693 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares of NIS 0.01 par value - Authorized: 500,000,000 shares at December 31, 2017 and 2018; Issued and outstanding: 46,453,583 and 49,269,626 shares at December 31, 2017 and 2018, respectively; | 88 | 80 |
Additional paid-in capital | 472,239 | 311,107 |
Accumulated other comprehensive loss | (1,691) | (286) |
Accumulated deficit | (318,371) | (299,581) |
Total shareholders' equity | 152,265 | 11,320 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 844,750 | $ 330,013 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 49,269,626 | 46,453,583 |
Ordinary shares, shares outstanding | 49,269,626 | 46,453,583 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Statement [Abstract] | |||
Revenues | $ 603,704 | $ 425,636 | $ 290,103 |
Cost of revenues | 126,947 | 69,391 | 45,287 |
Gross profit | 476,757 | 356,245 | 244,816 |
Operating expenses: | |||
Research and development | 198,912 | 153,635 | 105,368 |
Selling and marketing | 249,178 | 204,435 | 156,512 |
General and administrative | 59,297 | 48,186 | 26,968 |
Total operating expenses | 507,387 | 406,256 | 288,848 |
Operating loss | (30,630) | (50,011) | (44,032) |
Financial income (expenses), net | (2,794) | (5,015) | 247 |
Other income (expenses) | (489) | 76 | (4) |
Loss before taxes on income | (33,913) | (54,950) | (43,789) |
Taxes on income | 3,207 | 1,323 | 3,107 |
Net loss | $ (37,120) | $ (56,273) | $ (46,896) |
Basic and diluted net loss per ordinary share | $ (0.77) | $ (1.24) | $ (1.12) |
Other comprehensive loss | |||
Unrealized loss from marketable securities | $ (24) | $ (291) | |
Unrealized gains (loss) on cash flow hedge | (1,381) | 394 | (141) |
Other comprehensive income (loss) for the period | (1,405) | 103 | (141) |
Total comprehensive loss | $ (38,525) | $ (56,170) | $ (47,037) |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (DEFICIENCY) - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capitall [Member] | Other comprehensive loss [Member] | Accumulated deficit [Member] | Total |
Balance at Dec. 31, 2015 | $ 64 | $ 192,791 | $ (248) | $ (196,412) | $ (3,805) |
Balance, shares at Dec. 31, 2015 | 40,272,846 | ||||
Exercise of options and warrants | $ 10 | 19,584 | 19,594 | ||
Exercise of options and warrants, shares | 4,024,915 | ||||
Tax benefit related to exercise of share options | 731 | 731 | |||
Share-based compensation | 28,048 | 28,048 | |||
Other comprehensive income (loss) | (141) | (141) | |||
Net loss | (46,896) | (46,896) | |||
Balance at Dec. 31, 2016 | $ 74 | 241,154 | (389) | (243,308) | (2,469) |
Balance, shares at Dec. 31, 2016 | 44,297,761 | ||||
Exercise of options | $ 6 | 22,253 | 22,259 | ||
Exercise of options, shares | 2,155,822 | ||||
Share-based compensation | 47,700 | 47,700 | |||
Other comprehensive income (loss) | 103 | 103 | |||
Net loss | (56,273) | (56,273) | |||
Balance at Dec. 31, 2017 | $ 80 | 311,107 | (286) | (299,581) | 11,320 |
Balance, shares at Dec. 31, 2017 | 46,453,583 | ||||
Exercise of options | $ 8 | 31,764 | 31,772 | ||
Exercise of options, shares | 2,816,043 | ||||
Effect of adopting new accounting standard, Revenue from Contracts with Customers | 18,330 | 18,330 | |||
Share-based compensation | 72,330 | 72,330 | |||
Other comprehensive income (loss) | (1,405) | (1,405) | |||
Net loss | (37,120) | (37,120) | |||
Balance at Dec. 31, 2018 | $ 88 | $ 472,239 | $ (1,691) | $ (318,371) | $ 152,265 |
Balance, shares at Dec. 31, 2018 | 49,269,626 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flows from operating activities: | |||
Net loss | $ (37,120) | $ (56,273) | $ (46,896) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 8,724 | 5,654 | 4,538 |
Amortization of intangible assets | 2,784 | 2,753 | 747 |
Share based compensation expenses | 72,330 | 47,700 | 28,048 |
Amortization of debt discount and debt issuance costs | 10,004 | ||
Tax benefit related to exercise of share options | 731 | ||
Increase in accrued interest and exchange rate on short term and long term deposits | (583) | (555) | (669) |
Amortization of premium and discount and accrued interest on marketable securities, net | (99) | (77) | |
Deferred taxes, net | (959) | (2,719) | (317) |
Increase in trade receivables | (2,128) | (1,936) | (1,818) |
Increase in prepaid expenses and other current and long-term assets | (3,665) | (1,824) | (6,284) |
Increase in trade payables | 10,933 | 11,834 | 8,290 |
Increase in employees and payroll accruals | 2,843 | 5,627 | 2,956 |
Increase in short term and long term deferred revenues | 54,681 | 58,353 | 51,966 |
Increase (decrease) in accrued expenses and other current liabilities | (2,036) | 14,515 | (719) |
Net cash provided by operating activities | 115,709 | 83,052 | 40,573 |
Cash flows from investing activities: | |||
Proceeds from short-term and restricted deposits | 204,125 | 52,311 | 49,392 |
Investment in short-term and restricted deposits | (437,979) | (88,706) | (30,526) |
Investment in marketable securities | (58,963) | (33,189) | (23,724) |
Proceeds from marketable securities | 21,054 | 245 | 980 |
Purchase of property and equipment | (13,684) | (11,649) | (4,415) |
Capitalization of software development costs | (392) | (720) | |
Payments for businesses acquired | (33,091) | ||
Purchases of investments in privately-held companies | (1,250) | ||
Investment in other long-term assets | (500) | ||
Acquisition of intangible assets | (75) | (100) | |
Net cash used in investing activities | (287,589) | (114,874) | (8,393) |
Cash flows from financing activities: | |||
Credit line repayment | (170) | ||
Proceeds from issuance of convertible senior notes | 442,750 | ||
Payments of debt issuance costs | (12,601) | ||
Purchase of capped call | (45,338) | ||
Proceeds from exercise of options and ESPP shares | 32,896 | 24,158 | 21,658 |
Net cash provided by financing activities | 417,707 | 23,988 | 21,658 |
Increase (decrease) in cash and cash equivalents | 245,827 | (7,834) | 53,838 |
Cash and cash equivalents at the beginning of the period | 85,230 | 93,064 | 39,226 |
Cash and cash equivalents at the end of the period | 331,057 | 85,230 | 93,064 |
Supplemental disclosure of cash flow activities: | |||
Non-cash purchase of property and equipment | 1,413 | 1,019 | 482 |
Cash paid during the year for taxes | $ 3,666 | $ 4,422 | $ 2,644 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL a. Wix.com Ltd. was incorporated on October 5, 2006, under the laws of the State of Israel, and commenced operations on the same date. Wix.com Ltd. has established a number of subsidiaries in local jurisdictions to comply with local law requirements regarding payment collection, (Wix.com, Inc. (the "U.S. Subsidiary"), Wix.com Brasil Serviços de Internet Ltda. (the "Brazilian Subsidiary"), Wix.com Luxemburg S.a.r.l (the "Luxembourgian Subsidiary"), Wix.com Services Mexico S de RL de C.V. (the "Mexican Subsidiary"), Wix Com India Private Limited (the “Indian Subsidiary) and Wix.com Colombia S.A.S (the "Colombian Subsidiary").During 2016 the Company established new Entity in Singapore and as of December 31, 2018 the Singapore Subsidiary and the Colombian Subsidiary had not yet commenced their operations. In addition, the Company established wholly-owned subsidiaries in Lithuania under the name Wix.com UAB (the "Lithuanian Subsidiary") and in Germany under name (the "Wix.com Germany GmbH") which is engaged in R&D activity. During 2018 the Company established a new entity in Ireland under the name Wix Online Platforms Limited (the “Dublin” Subsidiary) which is engaged in customer support activity. Wix.com Ltd. and its subsidiaries (the "Company") develops and markets an internet service that allows users to create web content. b. In January 2017, the Company acquired 100% of the share capital of Loyalblocks Ltd., a privately held Israeli company (doing business as Flok), in consideration of assuming certain liabilities. See note 4 for additional information. c. In February 2017, the Company acquired 100% of the capital stock of DeviantArt, Inc., a privately held Delaware based corporation, for cash consideration of approximately $36 million, including the assumption of approximately $3 million of liabilities. See note 4 for additional information. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
SIGNIFICANT ACCOUNTING POLICIES | NOTE 2:- SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes and liabilities, goodwill valuation, share-based compensation cost, as well as in estimates used in applying the revenue recognition policy. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates . b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, have been eliminated upon consolidation. c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments are in U.S. dollars and substantial portion of the Company costs are incurred in U.S dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with Statement of the Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters" ("ASC No. 830"). All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statement of comprehensive loss as financial income or expenses, as appropriate. The functional currency of the U.S. Subsidiary is the U.S. dollar. The functional currency of the Lithuanian Subsidiary, Luxembourgian Subsidiary and Brazilian Subsidiary is the U.S. dollar as these subsidiaries' revenues, intercompany transaction, budget and financing are denominated in U.S. dollars. d. Cash and cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. e. Short-term deposits: Short-term deposits are deposits with maturities over three months and of up to one year. As of December 31, 2017 and 2018, the Company's bank deposits were denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 2.08% and 2.84%, respectively. Short-term deposits are presented at their cost, including accrued interest. f. Restricted deposits: Restricted deposits are deposits with maturities of up to one year and are used as security for the rental of premises, for the Company's credit cards, and as a security for the Company's hedging activities. As of December 31, 2017 and 2018 the Company's bank deposits were in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 0.05% and 0.06%, respectively. Restricted deposits are presented at their cost, including accrued interest. g. Marketable securities: The Company’s marketable securities consist of U.S. federal deposit insured corporation, Treasury bonds, certificate of deposits and corporate bonds. The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities are classified as available for sale at the time of purchase. Available-for-sale securities are carried at fair value based on quoted market prices,with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold. Interest on these securities, as well as amortization or accretion of premiums or discounts, are included in financial income, net. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. Impairments are considered other than temporary if they are related to deterioration in credit risk. The Company regularly reviews its investment portfolio and charges unrealized losses against net income when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the year ended December 31, 2018 were not other than temporary. h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and electronic equipment 15 – 33 (mainly 33) Office furniture and equipment 6 – 14 (mainly 6) Leasehold improvements Over the shorter of the related lease period or the life of the asset i. Impairment of Long-lived assets and intangible assets subject to amortization: The long-lived assets of the Company and its subsidiaries are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2016, 2017 and 2018, no impairment losses have been identified. j. Business combinations: The Company accounted for business combination in accordance with ASC 805, "Business Combinations". ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. Acquisition related costs are expensed to the statement of income in the period incurred. See note 4 for additional information. k. Goodwill and intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the costs over the net tangible and intangible assets acquired of businesses acquired Under ASC topic 350, "Intangible - Goodwill and other", ("ASC No. 350") goodwill is not amortized, but rather is subject to impairment test. In addition, the costs of intangible assets that were purchased from others for use in research and development activities were recorded as assets to the extent that they have alternative future use. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one reporting segment, and this segment comprises its only reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. Intangible assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful lives, which weighted average amortization period of 13 years. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. As of December 31, 2016, 2017 and 2018, no impairment losses have been recognized. l. Equity investments in privately-held companies: The Company has equity investments in privately-held companies. These investments are recorded at cost, less impairments, adjusted by observable price changes. The investments are included in other long-term assets on the accompanying balance sheets. The Company monitors the investments and if facts and circumstances indicate an investment may be impaired, then it conducts an impairment test of its investment. To determine if the investment is recoverable, it reviews the privately-held company's revenue and earnings trends relative to pre-defined milestones and overall business prospects, the general market conditions in its industry and other factors related to its ability to remain in business, such as liquidity and receipt of additional funding. m. Derivatives instruments: ASC No. 815, "Derivative and Hedging" ("ASC No. 815"), requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of balance sheets at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Derivative instruments designated as hedging instruments: For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. The net fair value of derivative instruments balance as of December 31, 2017, totaled $ 807, and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 891 and as accrued expenses and other current liabilities in the amount of $ 84. The net fair value of derivative instruments balance as of December 31, 2018 totaled $ (341), and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 599 and as accrued expenses and other current liabilities in the amount of $ 940. In the years ended December 31, 2016, 2017 and 2018, the Company recorded as operating income (expenses) net from hedging transactions in the amount of $831, $5,417 and $ (1,687) respectively. To hedge against the risk of overall changes in cash flows resulting from foreign currency salary payments, rent and other overhead vendors during the year, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted salary, rent and other overhead cash flow denominated in NIS. These option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, based on third party valuation. As of December 31, 2018, the amount recorded in accumulated other comprehensive loss from the Company's currency option transactions is $ (993). At December 31, 2018, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $ 153,068. The foreign exchange forward and options contracts will expire through 2019. Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Brazilian Real, Mexican Pesos and Japanese Yen and expenses in NIS. Gains and losses related to such derivative instruments are recorded in financial expenses, net. At December 31, 2018, the notional amounts of foreign exchange forward contracts into which the Company entered were $ 113,730. The foreign exchange forward and option transactions will expire through 2019. The net fair value of derivative instruments balance as of December 31, 2017, totaled $ (2,587) and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 302 and as accrued expenses and other current liabilities in the amount of $ 2,889. The net fair value of derivative instruments balance as of December 31, 2018 totaled $ 318, and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 1,974 and as accrued expenses and other current liabilities in the amount of $ 1,656. In the years ended December 31, 2016, 2017 and 2018, the Company recorded net financial income (expenses), net from hedging transactions in the amount of $ 748, $ (7,101) and $ 1,435, respectively. n. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expense for the years ended December 31, 2016, 2017 and 2018, amounted to $ 5,411, $ 7,768 and $ 9,489 respectively. o. U.S. employees defined contribution plan: The U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100%, but generally not greater than $ 18 per year (for certain employees over 50 years of age the maximum contribution is $ 24 per year), of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The U.S. Subsidiary matches 4% of employee contributions up to the plan with no limitation. During the years ended December 31, 2016, 2017 and 2018, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $ 167, $ 334 and $ 587, respectively. p. Convertible senior notes: The Company applies ASC 815 “Derivative and Hedging” (“ASC 815”) and ASC 470 “Debt (“ASC 470”). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company’s nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. q. Revenue recognition: In May 2014, the FASB issued ASU 2014-09 guidance on revenue from contracts with customers (Topic 606) that supersedes the existing revenue recognition guidance and clarifies the principles for recognizing revenue. The core principle is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On January 1, 2018, The Company adopted the standard using the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. This means that the cumulative impact of the adoption was recognized in retained earnings as of January 1, 2018 and that comparatives were not restated. The most significant impact of the standard relates to the company accounting for revenue from domain names and third party developer applications. Specifically, under the new standard, the company recognize revenues from domain names and third party applications at the time of delivery, rather than over the contract period. The cumulative effect of the changes made to The Comapny January 1, 2018 consolidated balance sheet for the adoption of Topic 606 were as follows (USD, in thousands): Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Prepaid expenses and other current assets 19,246 (10,745 ) 8,501 Prepaid expenses and other long-term assets 3,823 (2,697 ) 1,126 Deferred revenues ST 202,482 (25,379 ) 177,103 Deferred revenues LT 14,329 (6,393 ) 7,936 Accumulated deficit (299,581 ) 18,330 (281,251) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated statement of comprehensive loss and balance sheet for the year ended December 31, 2018 was as follows (USD, in thousands): Consolidated Balance Sheet Balance as reported at December 31, 2018 Adjustment due to Topic 606 Amounts under Topic 605 Prepaid expenses and other current assets 11,939 13,596 25,535 Prepaid expenses and other long-term assets 3,065 3,536 6,601 Deferred revenues ST 227,226 30,129 257,355 Deferred revenues LT 12,494 8,269 20,763 Accumulated deficit (318,371 ) (21,266 ) (339,637 ) Consolidated statement of comprehensive loss Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Revenue 603,704 (6,626 ) 597,078 Cost of Revenue 126,947 (3,690 ) 123,257 Net loss (37,120 ) (2,936 ) (40,056 ) Basic and diluted net loss per share $ (0.77 ) $ (0.06 ) $ (0.83 ) Consolidated statement of cash flows Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Cash flow from operating activities: Net loss (37,120 ) (2,936 ) (40,056 ) Other adjustments 152,829 2,936 155,765 Revenue recognition related to other products and services remain substantially unchanged. The adoption of ASU No. 2014-09 had no impact on cash provided by or used in operating, investing, and financing activities in our consolidated statement of cash flows. Please refer to note 15 - Segments, Customers and Geographic Information for further information, including presentation of disaggregated revenue by geography." The Comapny charges the customer for the entire consideration at inception date, and accordingly the services are provided from that date for the agreed service period. The Comapny records contract liability when cash payments are received in advance of performance, and these revenues are recognized ratably over the service period. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period. The Company expects to recognize the short-term portion of deferred revenue, approximately $227 million, over the next twelve months and the long-term portion of deferred revenue over the remaining service period of up to five years. The increase in the Deferred Revenue balance for the twelve months ended December 31, 2018 is primarily driven by cash payments received in advance of satisfying the performance obligations, offset by $177 millions of revenues recognized that were included in the contract liability balance as of January 1, 2018. Accounting policies and significant judgements The Company recognized revenue in accordance with Topic 606 when, or as, control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue is recognized net of allowances for refunds and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company offers a 14-day money back guaranty ("Guaranty Period"). The Company considers such amount collected from new premium subscriptions as customer deposits until the end of the 14-day trial period. Revenues are recognized once the Guaranty Period has expired. Revenues from premium subscriptions or other subscriptions and software applications developed by the Company are recognized on a straight-line basis over the contract period, since the customer simultaneously receives and consumes the benefits provided by our performance as the Company performs. Revenues related to the purchase and registration of domain names and Google's G-Suite application is recognized at the full amount paid by the customer at a point in time upon the purchase and registration of the domain name, since that is when control is transferred to the customer. Revenues related to third party software applications are recognized on a net basis at a point in time upon purchase of the application, since that is when we complete our obligation to facilitate the transfer between the customer and the third party developer. Revenue related to the sale of online advertising inventory (ad space) and other related advertising services to brands and advertising agencies are recognized at a point in time, when an ad space is sold. Each of our goods and services is sold separately, therefore standalone selling prices for each of them exists, and allocation of the transaction price between the performance obligations in the contract is made relatively on that basis. Refunds are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Many of our contracts specify service periods of one year or less, and for such the practical expedient regarding a significant financing component is applied, hence we do not adjust the promised amount of consideration for the effects of a significant financing component, due to immateriality. r. Research and development costs: Research and development costs are charged to the statements of comprehensive loss as incurred. s. Internal use software costs: The Company capitilazies costs related to the online platform for internal use incurred during the application development stage. Costs incurred in the process of software production are charged to expenses as incurred. Certain software development costs are capitalized under ASC350-40, Internal-Use Software and are included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. During 2018 and 2017 the company capitalized $ 393 and $ 720 respectivly. During 2016 the Company did not capitalize internal use software costs. t. Advertising expenses: Advertising expenses consist primarily of cost-per click expenses, social networking expenses, marketing campaigns and display advertisements. Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2016, 2017 and 2018 amounted to $ 113,151, $ 141,346 and $ 165,319 respectively. u. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of comprehensive loss. The Company recognizes compensation expenses for the value of its awards granted based on the straight line method over the requisite service period of each of the awards, net of estimated forfeitures. The Company estimates forfeitures at the grant date, and revised its estimate if necessary, in subsequent periods if actual forfeitures differ from those estimates. Some of the options granted are subject to certain performance criteria: accordingly compensation expense is recognized for such awards when it become probable that the related performance condition will be satisfied. The Company recognizes compensation expenses for the value of awards granted based on the accelerated method for performance based awards. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock options awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price, volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected term of the options. The Company applies ASC No. 718 and ASC No. 505-50 "Equity Based Payments to Non-Employees" ("ASC No. 505-50") with respect to options and warrants issued to non-employees consultants. ASC No. 718 requires the use of option valuation models to measure the fair value of the options and warrants at the date of grant. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation”, which effects all entities that issue share-based payment awards to their employees. The amendments in this ASU cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of fiscal year 2017 and In addition, historically, excess tax benefits or deficiencies from the Company’s equity awards were recorded as additional paid-in capital in its consolidated balance sheets. As a result of adoption, the Company will prospectively record any excess tax benefits or deficiencies from its equity awards as part of its provision for income taxes in its consolidated statements of operations in the reporting periods in which equity vesting occurs. v. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC No. 740"). This codification prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and for carry-forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The deferred tax assets and liabilities be classified as noncurrent in the statement of financial position The Company accounts for uncertain tax positions in accordance with the provisions of ASC No.740. Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecogn ized tax benefits in tax expense. The Company classifies interest and penalties on income taxes as financial expenses and general and administrative expenses, respectively. w. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number of shares of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per share of ordinary shares was the same for each period presented as the inclusion of all potential ordinary shares outstanding was anti-dilutive. For the years ended December 31, 2016, 2017 and 2018, all outstanding options and RSU’s have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive and the total options and RSU’s that have been excluded from the calculations was 9,773 |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 3:- MARKETABLE SECURITIES: At December 31, 2018, the Company held marketable securities classified as available-for-sale securities as follows: December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Treasury bonds within one year maturity $ 2,967 2 $ - $ 2,969 Corporate bonds: - Maturing within one year 20,061 - (38 ) 20,023 Maturing within between one to five years 47,504 - (279 ) 47,225 67,565 - (317 ) 67,248 $ 70,532 2 $ (317 ) $ 70,217 At December 31, 2017, the Company held marketable securities classified as available-for-sale securities as follows: December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Certificates of deposits $ 11,075 - $ (62 ) $ 11,013 Corporate bonds: - Maturing within one year 2,113 - (10 ) 2,103 Maturing within between one to five years 19,833 - (219 ) 19,614 21,946 - (229 ) 21,717 $ 33,021 - $ (291 ) $ 32,730 At December 31, 2018, gross unrealized losses on investments that were in a gross unrealized loss position were immaterial. These investments were not deemed to be other-than-temporarily impaired and the gross unrealized losses were recorded in OCI. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 4:- BUSINESS COMBINATION: In January 2017, the Company acquired 100% of the share capital of Loyalblocks Ltd., a privately held Israeli company (doing business as “Flok”), with no considration. Loyalblocks is a provider of customer loyalty and engagement tools for small businesses. The Company uses Flok’s products and technology to enhance its existing customer relationship management tools and commerce capabilities we offer our users. The Company accounted for the transaction using the acquisition method, which requires, among other things, that the assets acquired and liabilities assumed in a business combination be recognized at their respective estimated fair values as of the acquisition date .The following table summarizes the fair values of the assets acquired and liabilities assumed: (in thousands) Short term investment $ 15 Other current assets 46 Property and equipment, net 53 Other long term assets 46 Intangible assets 1,354 Goodwill 1,379 Total Assets $ 2,893 Current liabilities 1,720 Long term loan 1,389 Total Liabilities $ 3,109 Total purchase price allocation,net of cash acquired $ (216 ) Acquisition expenses for the Flok acquisition for the year ended December 31, 2017 were $0.4 million and consisted of employee-related expenses. The following table provides details regarding the identifiable assets acquired as of the date of the acquisition: Fair value Weighted Average Useful Life (in thousands) (in years) Technology 1,117 6 Customer relations 237 5 Total purchased intangible assets $ 1,354 Customer relationships represent the fair value of future revenues that will be derived from the sale of products to existing customers of Flok. The Company used the comparative method ("with/without") of the income approach to determine the fair value of this intangible asset and utilized a discount rate of 22.25%. Technology represents the current technology of Flok that has passed technological feasibility and is currently offered for sale to customers. The Company used the income approach to value the technology. The Company used the comparative method ("with/without") of the income approach to determine the fair value of this intangible asset and utilized a discount rate of 22.25%. Goodwill generated from this business combination is primarily attributable to synergies between the Company's and Flok respective products and services. The goodwill is not deductible for income tax purposes. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated statements of income In February 2017, the Company acquired 100% of the capital stock of DeviantArt, Inc., (“DeviantArt “) a privately held Delaware based corporation, for cash consideration of approximately $36 million, including the assumption of approximately $3 million of liabilities, total net of approximately $33 million. DeviantArt, based in Los Angeles, is one of the world's largest online communities dedicated to artists, art enthusiasts and designers. The Company expects DeviantArt to increase traffic and assist its product development and brand recognition growth. DeviantArt’s focus on developing and fostering online collaboration and communities is expected to provide Wix users with a platform to engage with creative designers and artists across multiple mediums. The following table summarizes the fair values of the assets acquired and liabilities assumed: (in thousands) Reserve deposit $ 195 Other current assets 1,237 Property and equipment, net 146 Other long term assets 31 Intangible assets 24,865 Goodwill 14,684 Total Assets $ 41,158 Current liabilities 7,851 Total Liabilities $ 7,851 Total purchase price allocation, net of cash acquired $ 33,307 Acquisition-related expenses for the DeviantArt acquisition for the year ended December 31, 2017 were $0.5 million and acquisition expenses for the DeviantArt acquisition for the year ended December 31, 2017 were $4.3 million and primarily consisted of employee-related expenses. The following table provides details regarding the identifiable assets acquired acquired as of the date of the acquisition Fair value Weighted Average Useful Life (in thousands) (in years) Technology 1,906 5 Customer relations 10,430 15 Customer Data 12,043 15 Brand/Domain 486 7 Total purchased intangible assets $ 24,865 Customer relationships represent the fair value of future revenues that will be derived from the sale of DeviantArt's products/services to existing customers of DeviantArt. The Company used the MPEEM method of the income approach to determine the fair value of this intangible asset and utilized a discount rate of 14.25%. Customer Data represent the fair value of future synergy that we will be derived from sale of Wix’s products/services to the current DeviantArt users. The Company determines the Customer Data fair value by calculating The difference between DeviantArt's value on a standalone basis (Calculated by BDO) and the total consideration paid by WIX, which represent in its perspective the additional amount that WIX was willing to pay for this synergy. The calculated difference was adjusted to reflect current customers only. Technology represents the current technology of DeviantArt that has passed technological feasibility and is currently offered for sale to customers. The Company used the Relief from Royalty Method to value the Technology. The premise of the relief from royalty method is that ownership of the subject asset relives the owner of the need to license the asset from a third party. Thus, by owning the intangible asset, the owner avoids the royalty payments required to license the asset. The relief from royalty is cash flow savings that are discounted to present value. The Company applied royalty rate of 7.5% of revenues, and a discount rate of 20.25%. Brand/Domain mainly represents all internet addresses and domain names, trade names, trademarks, industrial designs, brand names, etc. The Company used the Relief from Royalty Method to value the Brand/Domain. The premise of the relief from royalty method is that ownership of the subject asset relives the owner of the need to license the asset from a third party. Thus, by owning the intangible asset, the owner avoids the royalty payments required to license the asset. The relief from royalty is cash flow savings that are discounted to present value. Goodwill generated from this business combination is primarily attributable to synergies between the Company's and DevianArt's respective products and services. The goodwill is not deductible for income tax purposes. Pro forma results of operations related to this acquisition have not been prepared because they are not material to the Company's consolidated statements of income |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | NOTE 5:- PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2017 2018 Government authorities $ 2,504 $ 1,885 Hedging transaction asset 1,192 2,574 Prepaid expenses 13,962 5,293 Other current assets 1,588 2,187 $ 19,246 $ 11,939 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6:- PROPERTY AND EQUIPMENT, NET The composition of property and equipment, net is as follows: December 31, 2017 2018 Cost: Leasehold improvements $ 17,388 $ 22,551 Computers, peripheral equipment and electronic equipment 13,856 18,004 Office furniture and equipment 3,913 5,252 35,157 45,807 Less accumulated depreciation 18,956 23,860 Depreciated cost $ 16,201 $ 21,947 Depreciation expense amounted to $ 4,538, $ 5,654 and $ 8,724 for the years ended December 31, 2016, 2017 and 2018, respectively . During 2018, the Company recorded a reduction of approximately $ 3,700 to the cost and accumulated depreciation of fully depreciated equipment no longer in use, following an assessment made by the Company. In 2017, the Company did not record any such reduction. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 7:- INTANGIBLE ASSETS, NET December 31, 2017 2018 Cost: Technology $ 8,275 $ 8,275 Customer relations 10,667 10,667 Customer data 12,043 12,043 Domain 556 517 31,541 31,502 Less accumulated amortization 4,289 7,073 Intangible assets, net $ 27,252 $ 24,429 Estimated amortization expense for the years ended: December 31, 2018 2019 $ 2,929 2020 2,880 2021 2,604 2022 2,168 Thereafter 13,848 $ 24,429 Amortization expense amounted to $ 747, $ 2,753 and $ 2,784 for the years ended December 31, 2016, 2017 and 2018, respectively . |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 8:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2017 2018 Accrued expenses $ 33,241 $ 32,634 Hedging transaction liability 2,973 2,596 Uncertain tax positions 1,378 334 $ 37,592 $ 35,564 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 9:- CONVERTIBLE NOTES In June and July of 2018, The Company issued $442.75 million aggregate principal amount, 0% coupon rate, of Convertible Senior Notes due 2023 (the “Convertible Notes”). Subject to satisfaction of certain conditions and during certain periods, as defined in the indenture governing the notes, the holders will have the option to exchange the notes into cash and Wix ordinary shares, if any (subject to Wix right to pay cash in lieu of all or a portion of such shares). The Company may provide additional shares upon conversion if there is a "Make-Whole Fundamental Change" in the business as defined in the indenture governing the notes. The Notes are not redeemable by the Company prior to the maturity date apart from certain cases as defined in the indenture governing the Notes. Conversion Terms Holders may convert their notes at their option at any time prior to the close of business on the business day immediately preceding January 1, 2023 only under the following circumstances: 1. During any calendar quarter commencing after September 30, 2018 (and only during such calendar quarter), if the last reported sale price of Wix’s Ordinary Shares, for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding quarter is greater than or equal to 130% of the conversion price on each applicable trading day. 2. During the five business day period after any ten consecutive trading day period (the “measurement period”) in which the trading price per USD 1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of the ordinary shares and the conversion rate on each such trading day. 3. If Wix calls the notes for a tax redemption, at any time prior to the close of business on the second scheduled trading day immediately preceding the tax redemption date; or 4. Upon the occurrence of specified corporate events. On or after January 1, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their notes at any time, regardless of the foregoing circumstances. Upon conversion, Wix will pay or deliver, as the case may be, cash, Ordinary Shares or a combination of cash and Ordinary Shares, at Wix’s election. 5. The conversion rate was initially 7.0113 Ordinary Shares per USD 1,000 principal amount of notes (equivalent to an initial conversion price of approximately $142.63 per Ordinary Share). The conversion rate will be subject to adjustment in some events, but will not be adjusted for any accrued and unpaid special interest, if any. In addition, following certain corporate events that occur prior to the maturity date, or following Wix’s delivery of a notice of tax redemption, Wix will, in certain circumstances, increase the conversion rate for a holder who elects to convert his notes in connection with such a corporate event or notice of tax redemption, as the case may be. In connection with the pricing of the Convertible Notes, the Company has entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the purchasers of the Convertible Notes. The Capped Call Transactions cover, collectively, the number of company ordinary shares underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes. The cost of the Capped Call Transactions was approximately $45.3 million. The transaction is expected generally to reduce the potential dilution to the ordinary shares upon any conversion of the Convertible Notes and/or offset any cash payments we are required to make in excess of the principal amount upon conversion of the Convertible Notes under certain events described in the Capped Call Transactions. In accounting for the issuance of the Convertible Notes, the Company separated the Convertible Notes into liability and equity components. The carrying amount of the liability component was calculated by using the Jump-Diffusion model. The carrying amount of the equity component representing the conversion option was $105.4 million and was determined by deducting the fair value of the liability component from the par value of the Convertible Notes. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount ("debt discount") is amortized to interest expense over the term of the Convertible Notes at an effective interest rate of 6.20% over the contractual terms of the Convertoble Notes. Debt issuance costs related to the Convertible Notes comprised of commissions and payable to third party consultants of $11.5 million and third party costs of $1.1 million . The Company allocated the total amount incurred to the liability and equity components of the Convertible Notes based on their relative values. Issuance costs attributable to the liability component were $9.6 million and will be amortized to interest expense using the effective interest method over the contractual term. Issuance costs attributable to the equity component were netted with the equity component in stockholders’ equity. The net carrying amount of the Notes were as follows (in thousands): Principal outstanding Unamortized debt discount Unamortized debt issuance costs Net carrying value December 31, 2018 Convertible Notes 442,750 (96,371 ) (8,602 ) 337,777 The net carrying amount of the equity component of the Notes were as follows (in thousands): Amount allocated to conversion option Less: allocated issuance costs and Capped call Equity component, net December 31, 2018 Convertible notes 105,375 (48,337 ) 57,038 The Company recognized interest expense on the Notes as follows (in thousands, except for percentages): Year Ended December 31, 2018 Amortization of debt discount and issuance costs 10,004 The effective interest rate of the liability component is 6.20% for the Convertible Notes. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 10:- COMMITMENTS AND CONTINGENT LIABILITIES a. Lease commitments: The Company and its Subsidiaries rent their facilities under various operating lease agreements, which expire through 2030. In addition, the Company leases certain motor vehicles under certain car operating lease agreement. The minimum rental payments under operating leases as of December 31, 2018, are as follows: Rental of premises 2019 13,385 2020 11,735 2021 7,447 2022 5,456 Thereafter 17,807 55,830 The Company leases motor vehicles under cancelable operating lease agreements. The Company has an option to be released from this agreement, which may result in penalties in a maximum amount of $ 222 as of December 31, 2018. Total rent expenses for the years ended December 31, 2016, 2017 and 2018 were $ 6,719, $ 9,785 and $ 13,028, respectively. Total motor vehicle lease expenses for the years ended December 31, 2016, 2017 and 2018 were $ 798, $ 998 and $ 1,311 , respectively. b. Pledges: The Company has pledged bank deposits in the amount of $ 714, in connection with an office lease agreement, credit cards and hedging transactions c. Legal contingencies: The Company is currently not involved in any claims or legal proceedings. The Company reviews the status of each legal matter it is involved in, from time to time, in the ordinary course of business and assesses its potential financial exposure. If the potential loss from any claim or legal proceeding is considered probable and the amount can be reasonably estimated, the Company accrues a liability for the estimated loss. These accruals are reviewed at least quarterly and adjusted to reflect the impact of negotiations, settlements, rulings, advice of legal counsel and other information and events pertaining to a particular matter. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 11:- SHAREHOLDERS' EQUITY a. Composition of shares capital of the Company: December 31, 2017 December 31, 2018 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares 500,000,000 46,453,583 500,000,000 49,269,626 b. Ordinary shares: The ordinary shares of the Company confer on the holders thereof voting rights, rights to receive dividends and rights to participate in distribution of assets upon liquidation after all the preferred shares received their preference amount in full as detailed below. c. Share based payment: In April 2007, the Company's Board of Directors adopted an Employee Shares Incentive Plan (the "2007 Plan"). Under the 2007 Plan, options may be granted to employees, officers, non-employees consultants and directors of the Company and its Subsidiaries. The 2007 plan was terminated on October 15, 2013, although option awards outstanding as of that date will continue in full force in accordance with the terms under which they were granted. In October 2013, the Company's Board of Directors adopted a new Employee Shares Incentive Plan (the "2013 Plan"). The 2013 Plan provides for the grant of options, restricted shares, RSUs, share appreciation rights, cash-based awards, dividend equivalents and other share-based awards to directors, employees, officers, consultants of the Company and its subsidiaries. Under the Plans, as of December 31, 2018, an aggregate of 1,940,314 shares were still available for future grant. Each option granted under the Plan expires no later than ten years from the date of grant. The vesting period of the options is generally four years, unless the Board of Directors or the Board's Compensation Committee determines otherwise. Any option which is forfeited or cancelled before expiration becomes available for future grants. The total share-based compensation expense related to all of the Company's equity-based awards, which include options, RSUs and employee stock purchase rights issued pursuant to our Employee Share Purchase Plan (“ESPP”) and recognized for the years ended December 31, 2016, 2017 and 2018 was comprised as follows: Year ended December 31, 2016 2017 2018 Cost of revenues $ 1,798 $ 2,930 $ 4,418 Research and development 14,543 26,227 39,417 Sales and marketing 4,553 6,585 9,770 General and administrative 7,154 11,958 18,725 Total share-based compensation expense $ 28,048 $ 47,700 $ 72,330 Total unrecognized compensation cost amounted to 177,942 (thousands) as of December 31, 2018, and is expected to be recognized over a weighted average period of approximately 2.88 years. d. Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2018 is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 201 7 8,198,154 $ 16.65 6.27 $ 337,517 Granted 1,258,302 $ 68.25 Exercised (1,761,534 ) $ 13.29 Forfeited (31,609 ) $ 38.79 Balance as of December 31, 2018 7,663,313 $ 25.81 5.91 $ 496,978 Exercisable as of December 31, 2018 5,110,726 $ 14.2 4.83 $ 389,208 Vested and expected to vest as of December 31, 2018 7,536,284 $ 25.3 5.87 $ 492,396 The computation of expected volatility is based on actual historical share price volatility of comparable companies and the Company’s share price. The expected option term represents the period of time that options granted are expected to be outstanding. For stock-option awards which were at the money when granted (plain vanilla stock-options), it is determined based on the simplified method in accordance with SAB No. 110, as adequate historical experience is not available to provide a reasonable estimate. The simplified method will continue to apply until enough historical experience is available to provide a reasonable estimate of the expected term. For stock-option awards which were in the money when granted, a binomial model was used to determine the expected term as an input to the Black-Scholes-Merton option pricing model. For restricted stock units the fair value is based on the closing market value of the underlying shares at the date of grant. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The risk-free interest rate is based on the yield of U.S. treasury bonds with equivalent terms. The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Expected volatility 49.6%-54.0% 45.46%-48.04 45.19%-46.64% Expected dividends 0% 0% 0% Expected term (in years) 5 -6.32 5.03 -7.07 5.17 -7.53 Risk free rate 1.15%-2.26% 1.82%-2.27% 2.59%-3.03% The following table set forth the parameters used in computation of the employee stock purchase plan for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Expected volatility 44.6%-45.8% 33.6%-43.4% 39.9%-41.2% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 0.26%-0.46% 0.47%-0.79% 1.85%-2.28% A summary of options data for the years ended December 31, 2016, 2017 and 2018, is as follows: Year ended December 31, 2016 2017 2018 Weighted-average grant date fair value of options granted $ 9.02 $ 27.50 $ 34.93 Total intrinsic value of the options exercised $ 64,062 $ 75,763 $ 137,448 Total fair value of shares vested $ 18,602 $ 20,780 $ 27,629 The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the deemed fair value of the Company's ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2018: Exercise price (Range) Options outstanding as of December 31, 2018 Weighted average remaining contractual term Options exercisable as of December 31, 2018 Weighted average remaining contractual term (years) (years) 0.001-0.08 1,217,241 4.64 947,832 4.61 0.09-0.5 1,285,879 1.97 1,285,879 1.97 0.51-8.73 744,092 4.01 744,092 4.01 8.74-19.86 672,158 5.86 589,790 5.82 19.87-21.13 814,247 6.75 563,773 6.63 21.14-51.32 707,035 7.20 414,664 6.82 51.33-52.2 739,000 8.12 323,310 8.12 52.21-60.33 264,532 9.05 51,741 9.01 60.34-61.75 719,000 9.12 75,748 9.12 61.76-108.9 500,129 9.23 113,897 8.80 7,663,313 5.91 5,110,726 4.83 a. Options granted to non-employees consultants: The following table summarizes information about the Company's outstanding and exercisable options to purchase ordinary shares granted to non-employees consultants as of December 31, 2018: Options outstanding Exercisable as of as of Grant December 31, Exercise December 31, Exercisable date 2018 price 2018 Through January 25, 2011 10,000 0.67 10,000 January 25, 2021 January 9, 2013 3,400 2.34 3,400 January 9, 2023 13,400 13,400 No options were granted to non-employees during the years ended December 31, 2018, 2017 and 2016. b. A summary of RSU activity for the year ended December 31, 2018, is as follows: Number of shares Weighted average grant date fair value Per Share Unvested as of December 31, 2017 2,080,126 $ 48.62 Granted 1,052,893 $ 84.04 Vested (870,733 ) $ 46.72 Forfeited (171,774 ) $ 57.79 Unvested as of December 31, 2018 2,090,512 $ 66.53 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 12:- INCOME TAXES The Company's subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. a. Corporate tax in Israel: Ordinary taxable income is subject to a corporate tax rate as follows: 2016 – 25%, 2017 – 24% and 2018 – 23%. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which reduces the corporate income tax rate to 24% (instead of 25%) effective from January 1, 2017 and to 23% effective from January 1, 2018. However, the effective tax rate payable by a company that qualifies as an Industrial Company that derives income from an Approved Enterprise, a Beneficiary Enterprise or a Preferred Enterprise (as discussed below) may be considerably less. Capital gains derived by an Israeli company are subject to the prevailing corporate tax rate. b. Loss before taxes on income is comprised as follows: Year ended December 31, 2016 2017 2018 Domestic $ (60,249 ) $ (53,432 ) $ (50,679 ) Foreign 16,460 (1,518 ) 16,766 Loss before taxes on income $ (43,789 ) $ (54,950 ) $ (33,913 ) c. Deferred income taxes: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: Year ended December 31, 2017 2018 Deferred tax assets: Net operating loss carry-forwards $ 34,234 $ 45,314 Capital losses carry-forwards 35 53 Research and development expenses 13,923 1,901 Tax credit carry-forwards 94 94 Depreciation difference 1,434 1,680 Accrued employees costs 1,801 2,176 Other 567 870 Deferred tax assets before valuation allowance 52,088 52,088 Valuation allowance (45,094 ) (44,607 ) Deferred tax asset, net $ 6,994 $ 7,481 Deferred tax liabilities: Fixed assets $ 481 $ 306 Intangible assets 6,214 5,556 Other 278 638 Deferred tax liabilities $ 6,973 $ 6,500 Year ended December 31, 2017 2018 Deferred taxes are included in the consolidated balance sheets, as follows: Long term receivables $ 772 $ 1,583 Long term liabilities $ 764 $ 602 The Company has provided valuation allowances in respect of certain deferred tax assets resulting from tax loss carry-forwards and other reserves and allowances due to its history of losses and uncertainty concerning realization of these deferred tax assets. In addition, a deferred tax liability has been established to reflect the Company's tax depreciation of property and equipment, net which differs from depreciation recorded in the consolidated financial statements and purchased technology as part of business combination. d. Income taxes are comprised as follows: Year ended December 31, 2016 2017 2018 Current $ 3,424 $ 4,042 $ 4,188 Deferred (317 ) (2,719 ) (981 ) $ 3,107 $ 1,323 $ 3,207 Year ended December 31, 2016 2017 2018 Domestic $ 49 $ 578 $ 1,140 Foreign 3,058 745 2,067 $ 3,107 $ 1,323 $ 3,207 e. A reconciliation of the Company's theoretical income tax expense to actual income tax expense as follows: Year ended December 31, 2016 2017 2018 Loss before taxes on income $ (43,789 ) $ (54,950 ) $ (33,913 ) Statutory tax rate 25 % 24 % 23 % Theoretical income tax expense (10,947 ) (13,188 ) (7,800 ) Deferred taxes for which valuation allowance was provided, net 8,620 2,122 (1,925 ) Non-deductible option expenses 5,224 8,528 12,609 Non-deductible expenses 815 1,263 824 Tax adjustment in respect of different tax rate of foreign subsidiary (1,015 ) (1,679 ) (1,627 ) Rate Change Impact - 3,099 (174 ) Foregin Tax - 881 1,182 Other 410 297 118 Income tax expense $ 3,107 $ 1,323 $ 3,207 f. Net operating loss carry-forwards As of December 31, 2018, the Company had carry-forward operating and capital tax losses totaling approximately $ 213,446 and $ 231, respectively. $168,694 and $231 attributed to Israel and can be carried forward indefinitely. g. The Law for the Encouragement of Capital Investments, 1959 (the "Law"): On April 1, 2005, an amendment to the Investment Law came into effect ("the Amendment") and has significantly changed the provisions of the Investment Law. The Amendment limits the scope of enterprises which may be approved by the Investment Center by setting criteria for the approval of a facility as an Approved Enterprise, such as provisions generally requiring that at least 25% of the Approved Enterprise's income will be derived from export. Additionally, the Amendment enacted major changes in the manner in which tax benefits are awarded under the Investment Law so that companies no longer require Investment Center approval in order to qualify for tax benefits. According to the law, the Company is entitled to various tax benefits by virtue of the "Beneficiary Enterprise" status granted to part of its enterprises, defined by this law. During 2010, the Company had applied by Tax Pre-ruling to the Israeli Tax Authorities ("ITA") to receive "Beneficiary Enterprise" status and elect 2009 as year of election. During 2011, the Company received a tax decision from the ITA that approves its request for "Beneficiary Enterprise" status and the Company elect 2009 as its year of election. In addition, during 2013, the Company had applied by Tax Pre-ruling to the Israeli Tax Authorities ("ITA") to receive "Beneficiary Enterprise" status and elect 2012 as year of election. Under the Investment Law and its Amendment and according to the tax decision, the Company is entitled to various tax benefits, defined by this law, under the . Pursuant to the beneficiary program, the Company is entitled to a tax benefit period of seven to ten years on income derived from this program as follows: the Company is fully tax exempted for a period of the first two years and for the remaining five to eight subsequent years is subject to tax at a rate of 10% - 25% (based on the percentage of foreign ownership of the Company). The duration of tax benefits is subject to a limitation of the earlier of 7 years from the Commencement Year, or 12 years from the first day of the Year of Election. If dividends are distributed out of tax exempt profits, the Company will then become liable for tax at the rate applicable to its profits from the Beneficiary enterprise in the year in which the income was earned, as if it had not chosen the alternative track of benefits. The dividend recipient is subject to withholding tax at the rate of 15% applicable to dividends from Beneficiary enterprises, if the dividend is distributed during the tax benefits period or within twelve years thereafter. This limitation does not apply to a foreign investors' company. The Company currently has no plans to distribute dividends and intends to retain future earnings to finance the development of its business. The above benefits are conditioned upon the fulfillment of the conditions stipulated by the law and regulations published thereunder. In the event of failure to comply with these conditions, the benefits may be canceled and the Company may be required to refund the amount of the benefits, in whole or in part, including interest and linked to changes in the Israeli CPI. Management believes that the Company will meet the aforementioned conditions by the year of the elected operations. As a result of the amendment, tax-exempt income generated under the provisions of the new law will subject the Company to taxes upon distribution or liquidation and the Company may be required to record a deferred tax liability with respect to such tax-exempt income. Through December 31, 2018 the Company had not generated income under the provision of the new law. In December 2010, the Israeli Parliament passed the Law for Economic Policy for 2011 and 2012 (Amended Legislation), 2011, which prescribes, among other things, amendments to the Investment Law, effective as of January 1, 2011. According to the amendment, the benefit tracks under the Investment Law were modified and a uniform tax rate will apply to all of the income of an approved or beneficiary enterprise. Companies may elect to irrevocably implement the amendment (while waiving benefits provided under the Investment Law as currently in effect) and subsequently would be subject to the amended tax rates that are: 2011 and 2012 - 15%, 2013 and 2014 - 12.5% and in 2015 and thereafter - 12%. In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2018 and 2019 Budget Years), 2016 which includes Amendment 73 to the Law ("Amendment 73") was published. According to Amendment 73, a preferred enterprise located in development area A will be subject to a tax rate of 7.5% instead of 9% effective from January 1, 2017 and thereafter (the tax rate applicable to preferred enterprises located in other areas remains at 16%). The new tax tracks under the Amendment are as follows: Technological preferred enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A technological preferred enterprise, as defined in the Law, which is located in the center of Israel will be subject to tax at a rate of 12% on profits deriving from intellectual property (in development area A - a tax rate of 7.5%). The Amendment also prescribes special tax tracks for technological enterprises, which are subject to regulations that were published by the Minister of Finance on May 1, 2017. Under the transition provisions of the new legislation, the Company may decide to irrevocably implement the new law while waiving benefits provided under the current law or to remain subject to the current law. h. Tax Benefits for Research and Development Israeli tax law (section 20a to the Israeli Tax Ordinance) allows, under certain conditions, a tax deduction for research and development expenses, including capital expenses, for the year in which they are paid. Such expenses must relate to scientific research in industry, agriculture, transportation, or energy, and must be approved by the relevant Israeli government ministry, determined by the field of research. Furthermore, the research and development must be for the promotion of the company's business and carried out by or on behalf of thecompany seeking such tax deduction. However, the amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. As for expenses incurred in scientific research that is not approved by the relevant Israeli government ministry, they will be deductible over a three-year period starting from the tax year in which they are paid. The Company believes that it is eligible for the above mentioned benefit for the majority of its research and development expenses. i. Tax Reform- United States of America The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2018. The Act reduces the US federal corporate tax rate from 35% to 21% in 2019, repealed the corporate alternative minimum tax, and requires companies to pay a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred and creates new taxes on certain foreign-sourced earnings. The Company calclulate an effective rate by computing the effective state tax rate and adding the expected federal statutory rate with a reduction for the federal benefit of the state tax expense. The company remeasured all U.S. deferred tax assets and liabilities based on the rates at which they are expected to reverse in the future, which is generally 21%. j. Tax assessments: The Company and its subsidiaries did not have any final tax assessments as of December 31, 2018. The Company's tax years until December 31, 2012 are subject to statutes of limitation as of December 31, 2018. k. Uncertain tax positions: A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2017 2018 Opening balance $ 1,098 $ 1,378 Increases (decrease) related to previous year tax positions 280 (1,044 ) Closing balance $ 1,378 $ 334 During the years ended December 31, 2018 the Company recorded $ 199 for interest expense related to uncertain tax positions. As of December 31, 2018 the Company had accrued interest liability related to uncertain tax positions in the amounts of $ 334, which is included within income tax accrual on the balance sheets. The Company did not accrue penalties during the years ended December 31, 2018 and 2017. During the year the company had settlement with the Israeli tax authorities which the copany paid $ 1,243 and close the uncertain tax position in regards to one of our Israeli subsidiary. The balance of total unrecognized tax benefits at December 31, 2018, is $ 334 which, if potentially recognized, would affect the effective rate in the Company's statement of comprehensive loss. |
FINANCIAL INCOME (EXPENSES), NE
FINANCIAL INCOME (EXPENSES), NET | 12 Months Ended |
Dec. 31, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
FINANCIAL INCOME (EXPENSES), NET | NOTE 13:- FINANCIAL INCOME (EXPENSES), NET Year ended December 31, 2016 2017 2018 Bank charges $ (226 ) $ (310 ) $ (310 ) Income (expense) related to hedging activity 748 (7,101 ) 1,434 Amortization of debt discount and issuance costs - - (10,004 ) Exchange rate income (loss) (1,122 ) 1,214 (3,521 ) Total income (expenses) (600 ) (6,197 ) (12,401 ) Interest income 847 1,182 9,607 Total financial income (expenses), net $ 247 $ (5,015 ) $ (2,794 ) |
BASIC AND DILUTED NET LOSS PER
BASIC AND DILUTED NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET LOSS PER SHARE | NOTE 14:- BASIC AND DILUTED NET LOSS PER SHARE Year ended December 31, 2016 2017 2018 Net loss available to shareholders of ordinary shares $ (46,896 ) $ (56,273 ) $ (37,120 ) Denominator: Shares used in computing net loss per ordinary shares, basic and diluted 42,032,818 45,552,199 48,017,188 The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding. Year ended December 31, 2016 2017 2018 Shares used in computing net loss per ordinary shares, basic and diluted 42,032,818 45,552,199 48,017,188 The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: Stock options 8,405,787 8,212,554 7,676,713 Restricted share units 1,368,050 2,081,646 2,090,512 9,773,837 10,294,200 9,767,225 |
SEGMENTS, CUSTOMERS AND GEOGRAP
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 15:- SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company applies ASC topic 280, "Segment Reporting", ("ASC No. 280"). The Company operates in one reportable segment. Total revenues are attributed to geographic areas based on the location of the end customer. b. The following tables present total revenues for the years ended December 31, 2016, 2017 and 2018 and long-lived assets as of December 31, 2017 and 2018: Revenues: Year ended December 31, 2016 2017 2018 North America (*) $ 147,209 $ 220,124 $ 316,446 Europe 77,465 110,419 159,768 Latin America 25,904 36,816 46,232 Asia and others 39,524 58,277 81,258 $ 290,103 $ 425,636 $ 603,704 (*) Include revenue from USA in amount of 131,796, 192,153 and 278,784 for 2016, 2017 and 2018 respectively. Long-lived assets: December 31, 2017 2018 Israel $ 12,326 $ 17,581 Europe 613 699 North America 3,262 3,667 $ 16,201 $ 21,947 |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Use of estimates: | a. Use of estimates: The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes and liabilities, goodwill valuation, share-based compensation cost, as well as in estimates used in applying the revenue recognition policy. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates . |
Principles of consolidation: | b. Principles of consolidation: The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. Intercompany transactions and balances, have been eliminated upon consolidation. |
Financial statements in U.S. dollars: | c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments are in U.S. dollars and substantial portion of the Company costs are incurred in U.S dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company operates. Thus, the functional and reporting currency of the Company is the U.S dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with Statement of the Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters" ("ASC No. 830"). All transaction gains and losses of the remeasured monetary balance sheet items are reflected in the statement of comprehensive loss as financial income or expenses, as appropriate. The functional currency of the U.S. Subsidiary is the U.S. dollar. The functional currency of the Lithuanian Subsidiary, Luxembourgian Subsidiary and Brazilian Subsidiary is the U.S. dollar as these subsidiaries' revenues, intercompany transaction, budget and financing are denominated in U.S. dollars. |
Cash and cash equivalents: | d. Cash and cash equivalents: Cash equivalents are short-term highly liquid investments that are readily convertible to cash with original maturities of three months or less, at the date acquired. |
Short-term deposits: | e. Short-term deposits: Short-term deposits are deposits with maturities over three months and of up to one year. As of December 31, 2017 and 2018, the Company's bank deposits were denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 2.08% and 2.84%, respectively. Short-term deposits are presented at their cost, including accrued interest. |
Restricted deposits: | f. Restricted deposits: Restricted deposits are deposits with maturities of up to one year and are used as security for the rental of premises, for the Company's credit cards, and as a security for the Company's hedging activities. As of December 31, 2017 and 2018 the Company's bank deposits were in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 0.05% and 0.06%, respectively. Restricted deposits are presented at their cost, including accrued interest. |
Marketable securities: | g. Marketable securities: The Company’s marketable securities consist of U.S. federal deposit insured corporation, Treasury bonds, certificate of deposits and corporate bonds. The Company accounts for investments in debt securities in accordance with ASC 320, "Investments - Debt and Equity Securities". Management determines the appropriate classification of its investments in debt securities at the time of purchase and re-evaluates such determinations at each balance sheet date. Marketable securities are classified as available for sale at the time of purchase. Available-for-sale securities are carried at fair value based on quoted market prices,with the unrealized gains and losses, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold. Interest on these securities, as well as amortization or accretion of premiums or discounts, are included in financial income, net. The Company's securities are reviewed for impairment in accordance with ASC 320-10-35. Impairments are considered other than temporary if they are related to deterioration in credit risk. The Company regularly reviews its investment portfolio and charges unrealized losses against net income when a decline in fair value is determined to be other-than-temporary. The Company reviews several factors to determine whether a loss is other-than-temporary. Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities, for the year ended December 31, 2018 were not other than temporary. |
Property and equipment, net: | h. Property and equipment, net: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and electronic equipment 15 – 33 (mainly 33) Office furniture and equipment 6 – 14 (mainly 6) Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Impairment of Long-lived assets and intangible assets subject to amortization: | i. Impairment of Long-lived assets and intangible assets subject to amortization: The long-lived assets of the Company and its subsidiaries are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment" ("ASC No. 360"), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2016, 2017 and 2018, no impairment losses have been identified. |
Business combinations: | j. Business combinations: The Company accounted for business combination in accordance with ASC 805, "Business Combinations". ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill and any subsequent changes in estimated contingencies are to be recorded in earnings. In addition, changes in valuation allowance related to acquired deferred tax assets and in acquired income tax position are to be recognized in earnings. Acquisition related costs are expensed to the statement of income in the period incurred. See note 4 for additional information. |
Goodwill and intangible assets: | k. Goodwill and intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the costs over the net tangible and intangible assets acquired of businesses acquired Under ASC topic 350, "Intangible - Goodwill and other", ("ASC No. 350") goodwill is not amortized, but rather is subject to impairment test. In addition, the costs of intangible assets that were purchased from others for use in research and development activities were recorded as assets to the extent that they have alternative future use. ASC 350 allows an entity to first assess qualitative factors to determine whether it is necessary to perform the two-step quantitative goodwill impairment test. If the qualitative assessment does not result in a more likely than not indication of impairment, no further impairment testing is required. If it does result in a more likely than not indication of impairment, the two-step impairment test is performed. Alternatively, ASC 350 permits an entity to bypass the qualitative assessment for any reporting unit and proceed directly to performing the first step of the goodwill impairment test. The Company operates in one reporting segment, and this segment comprises its only reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. Intangible assets that are considered to have definite useful life are amortized using the straight-line basis over their estimated useful lives, which weighted average amortization period of 13 years. The carrying amount of these assets is reviewed whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. Recoverability of these assets is measured by comparison of the carrying amount of the asset to the future undiscounted cash flows the asset is expected to generate. If the asset is considered to be impaired, the amount of any impairment is measured as the difference between the carrying value and the fair value of the impaired asset. As of December 31, 2016, 2017 and 2018, no impairment losses have been recognized. |
Equity investments in privately-held companies: | l. Equity investments in privately-held companies: The Company has equity investments in privately-held companies. These investments are recorded at cost, less impairments, adjusted by observable price changes. The investments are included in other long-term assets on the accompanying balance sheets. The Company monitors the investments and if facts and circumstances indicate an investment may be impaired, then it conducts an impairment test of its investment. To determine if the investment is recoverable, it reviews the privately-held company's revenue and earnings trends relative to pre-defined milestones and overall business prospects, the general market conditions in its industry and other factors related to its ability to remain in business, such as liquidity and receipt of additional funding. |
Derivatives instruments: | m. Derivatives instruments: ASC No. 815, "Derivative and Hedging" ("ASC No. 815"), requires companies to recognize all of their derivative instruments as either assets or liabilities in the statement of balance sheets at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. Derivative instruments designated as hedging instruments: For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive loss and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments not designated as hedging instruments, the gain or loss is recognized in current earnings during the period of change. The net fair value of derivative instruments balance as of December 31, 2017, totaled $ 807, and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 891 and as accrued expenses and other current liabilities in the amount of $ 84. The net fair value of derivative instruments balance as of December 31, 2018 totaled $ (341), and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 599 and as accrued expenses and other current liabilities in the amount of $ 940. In the years ended December 31, 2016, 2017 and 2018, the Company recorded as operating income (expenses) net from hedging transactions in the amount of $831, $5,417 and $ (1,687) respectively. To hedge against the risk of overall changes in cash flows resulting from foreign currency salary payments, rent and other overhead vendors during the year, the Company has instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted salary, rent and other overhead cash flow denominated in NIS. These option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, based on third party valuation. As of December 31, 2018, the amount recorded in accumulated other comprehensive loss from the Company's currency option transactions is $ (993). At December 31, 2018, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $ 153,068. The foreign exchange forward and options contracts will expire through 2019. Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Brazilian Real, Mexican Pesos and Japanese Yen and expenses in NIS. Gains and losses related to such derivative instruments are recorded in financial expenses, net. At December 31, 2018, the notional amounts of foreign exchange forward contracts into which the Company entered were $ 113,730. The foreign exchange forward and option transactions will expire through 2019. The net fair value of derivative instruments balance as of December 31, 2017, totaled $ (2,587) and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 302 and as accrued expenses and other current liabilities in the amount of $ 2,889. The net fair value of derivative instruments balance as of December 31, 2018 totaled $ 318, and is presented on a gross basis as prepaid expenses and other current assets in the amount of $ 1,974 and as accrued expenses and other current liabilities in the amount of $ 1,656. In the years ended December 31, 2016, 2017 and 2018, the Company recorded net financial income (expenses), net from hedging transactions in the amount of $ 748, $ (7,101) and $ 1,435, respectively. |
Severance pay: | n. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, continued on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. Severance expense for the years ended December 31, 2016, 2017 and 2018, amounted to $ 5,411, $ 7,768 and $ 9,489 respectively. |
U.S. employees defined contribution plan: | o. U.S. employees defined contribution plan: The U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100%, but generally not greater than $ 18 per year (for certain employees over 50 years of age the maximum contribution is $ 24 per year), of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The U.S. Subsidiary matches 4% of employee contributions up to the plan with no limitation. During the years ended December 31, 2016, 2017 and 2018, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $ 167, $ 334 and $ 587, respectively. |
Convertible senior notes: | p. Convertible senior notes: The Company applies ASC 815 “Derivative and Hedging” (“ASC 815”) and ASC 470 “Debt (“ASC 470”). Under these standards, the Company separately accounts for the liability and equity components of convertible debt instruments that may be settled in cash in a manner that reflects the Company’s nonconvertible debt borrowing rate. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument that does not have a conversion feature. The equity component is based on the excess of the principal amount of the debentures over the fair value of the liability component, after adjusting for an allocation of debt issuance costs, and is recorded as capital in excess of par. Debt discounts are amortized as additional non-cash interest expense over the expected life of the debt. |
Revenue recognition: | q. Revenue recognition: In May 2014, the FASB issued ASU 2014-09 guidance on revenue from contracts with customers (Topic 606) that supersedes the existing revenue recognition guidance and clarifies the principles for recognizing revenue. The core principle is that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. On January 1, 2018, The Company adopted the standard using the modified retrospective method of adoption to those contracts which were not completed as of January 1, 2018. This means that the cumulative impact of the adoption was recognized in retained earnings as of January 1, 2018 and that comparatives were not restated. The most significant impact of the standard relates to the company accounting for revenue from domain names and third party developer applications. Specifically, under the new standard, the company recognize revenues from domain names and third party applications at the time of delivery, rather than over the contract period. The cumulative effect of the changes made to The Comapny January 1, 2018 consolidated balance sheet for the adoption of Topic 606 were as follows (USD, in thousands): Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Prepaid expenses and other current assets 19,246 (10,745 ) 8,501 Prepaid expenses and other long-term assets 3,823 (2,697 ) 1,126 Deferred revenues ST 202,482 (25,379 ) 177,103 Deferred revenues LT 14,329 (6,393 ) 7,936 Accumulated deficit (299,581 ) 18,330 (281,251) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated statement of comprehensive loss and balance sheet for the year ended December 31, 2018 was as follows (USD, in thousands): Consolidated Balance Sheet Balance as reported at December 31, 2018 Adjustment due to Topic 606 Amounts under Topic 605 Prepaid expenses and other current assets 11,939 13,596 25,535 Prepaid expenses and other long-term assets 3,065 3,536 6,601 Deferred revenues ST 227,226 30,129 257,355 Deferred revenues LT 12,494 8,269 20,763 Accumulated deficit (318,371 ) (21,266 ) (339,637 ) Consolidated statement of comprehensive loss Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Revenue 603,704 (6,626 ) 597,078 Cost of Revenue 126,947 (3,690 ) 123,257 Net loss (37,120 ) (2,936 ) (40,056 ) Basic and diluted net loss per share $ (0.77 ) $ (0.06 ) $ (0.83 ) Consolidated statement of cash flows Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Cash flow from operating activities: Net loss (37,120 ) (2,936 ) (40,056 ) Other adjustments 152,829 2,936 155,765 Revenue recognition related to other products and services remain substantially unchanged. The adoption of ASU No. 2014-09 had no impact on cash provided by or used in operating, investing, and financing activities in our consolidated statement of cash flows. Please refer to note 15 - Segments, Customers and Geographic Information for further information, including presentation of disaggregated revenue by geography." The Comapny charges the customer for the entire consideration at inception date, and accordingly the services are provided from that date for the agreed service period. The Comapny records contract liability when cash payments are received in advance of performance, and these revenues are recognized ratably over the service period. The balance of deferred revenues approximates the aggregate amount of the transaction price allocated to the unsatisfied performance obligations at the end of reporting period. The Company expects to recognize the short-term portion of deferred revenue, approximately $227 million, over the next twelve months and the long-term portion of deferred revenue over the remaining service period of up to five years. The increase in the Deferred Revenue balance for the twelve months ended December 31, 2018 is primarily driven by cash payments received in advance of satisfying the performance obligations, offset by $177 millions of revenues recognized that were included in the contract liability balance as of January 1, 2018. Accounting policies and significant judgements The Company recognized revenue in accordance with Topic 606 when, or as, control of the promised goods or services is transferred to the customer, in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenue is recognized net of allowances for refunds and any taxes collected from customers, which are subsequently remitted to governmental authorities. The Company applies the following five steps: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company offers a 14-day money back guaranty ("Guaranty Period"). The Company considers such amount collected from new premium subscriptions as customer deposits until the end of the 14-day trial period. Revenues are recognized once the Guaranty Period has expired. Revenues from premium subscriptions or other subscriptions and software applications developed by the Company are recognized on a straight-line basis over the contract period, since the customer simultaneously receives and consumes the benefits provided by our performance as the Company performs. Revenues related to the purchase and registration of domain names and Google's G-Suite application is recognized at the full amount paid by the customer at a point in time upon the purchase and registration of the domain name, since that is when control is transferred to the customer. Revenues related to third party software applications are recognized on a net basis at a point in time upon purchase of the application, since that is when we complete our obligation to facilitate the transfer between the customer and the third party developer. Revenue related to the sale of online advertising inventory (ad space) and other related advertising services to brands and advertising agencies are recognized at a point in time, when an ad space is sold. Each of our goods and services is sold separately, therefore standalone selling prices for each of them exists, and allocation of the transaction price between the performance obligations in the contract is made relatively on that basis. Refunds are estimated at contract inception and updated at the end of each reporting period if additional information becomes available. Many of our contracts specify service periods of one year or less, and for such the practical expedient regarding a significant financing component is applied, hence we do not adjust the promised amount of consideration for the effects of a significant financing component, due to immateriality. |
Research and development costs: | r. Research and development costs: Research and development costs are charged to the statements of comprehensive loss as incurred. |
Internal use software costs: | s. Internal use software costs: The Company capitilazies costs related to the online platform for internal use incurred during the application development stage. Costs incurred in the process of software production are charged to expenses as incurred. Certain software development costs are capitalized under ASC350-40, Internal-Use Software and are included in property and equipment, net in the consolidated balance sheets. Capitalization of such costs begins when the preliminary project stage is complete and ceases at the point in which the project is substantially complete and is ready for its intended purpose. During 2018 and 2017 the company capitalized $ 393 and $ 720 respectivly. During 2016 the Company did not capitalize internal use software costs. |
Advertising expenses: | t. Advertising expenses: Advertising expenses consist primarily of cost-per click expenses, social networking expenses, marketing campaigns and display advertisements. Advertising expenses are charged to the statement of comprehensive loss, as incurred. Advertising expenses for the years ended December 31, 2016, 2017 and 2018 amounted to $ 113,151, $ 141,346 and $ 165,319 respectively. |
Share-based compensation: | u. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the portion of the award that is ultimately expected to vest is recognized as an expense over the requisite service periods in the Company's consolidated statements of comprehensive loss. The Company recognizes compensation expenses for the value of its awards granted based on the straight line method over the requisite service period of each of the awards, net of estimated forfeitures. The Company estimates forfeitures at the grant date, and revised its estimate if necessary, in subsequent periods if actual forfeitures differ from those estimates. Some of the options granted are subject to certain performance criteria: accordingly compensation expense is recognized for such awards when it become probable that the related performance condition will be satisfied. The Company recognizes compensation expenses for the value of awards granted based on the accelerated method for performance based awards. The Company selected the Black-Scholes-Merton option pricing model as the most appropriate model for determining the fair value for its stock options awards and Employee Stock Purchase Plan, whereas the fair value of restricted stock units is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price, volatility and the expected option term. Expected volatility was calculated based upon actual historical stock price movements over the most recent periods ending on the grant date, equal to the expected term of the options. The expected term of options granted is based upon historical experience and represents the period of time between when the options are granted and when they are expected to be exercised. The risk-free interest rate is based on the yield from U.S. treasury bonds with an equivalent term to the expected term of the options. The Company applies ASC No. 718 and ASC No. 505-50 "Equity Based Payments to Non-Employees" ("ASC No. 505-50") with respect to options and warrants issued to non-employees consultants. ASC No. 718 requires the use of option valuation models to measure the fair value of the options and warrants at the date of grant. In March 2016, the FASB issued ASU 2016-09, “Compensation – Stock Compensation”, which effects all entities that issue share-based payment awards to their employees. The amendments in this ASU cover such areas as the recognition of excess tax benefits and deficiencies, the classification of those excess tax benefits on the statement of cash flows, an accounting policy election for forfeitures, the amount an employer can withhold to cover income taxes and still qualify for equity classification and the classification of those taxes paid on the statement of cash flows. The Company adopted ASU 2016-09 in the first quarter of fiscal year 2017 and In addition, historically, excess tax benefits or deficiencies from the Company’s equity awards were recorded as additional paid-in capital in its consolidated balance sheets. As a result of adoption, the Company will prospectively record any excess tax benefits or deficiencies from its equity awards as part of its provision for income taxes in its consolidated statements of operations in the reporting periods in which equity vesting occurs. |
Income taxes: | v. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740, "Income Taxes" ("ASC No. 740"). This codification prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on differences between financial reporting and tax bases of assets and liabilities and for carry-forward tax losses. Deferred taxes are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax asset will not be realized. The deferred tax assets and liabilities be classified as noncurrent in the statement of financial position The Company accounts for uncertain tax positions in accordance with the provisions of ASC No.740. Accounting guidance addresses the determination of whether tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements, under which a company may recognize the tax benefit from an uncertain tax position only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. Accordingly, the Company reports a liability for unrecognized tax benefits resulting from uncertain tax positions taken or expected to be taken in a tax return. The Company recognizes interest and penalties, if any, related to unrecogn ized tax benefits in tax expense. The Company classifies interest and penalties on income taxes as financial expenses and general and administrative expenses, respectively. |
Basic and diluted net loss per share: | w. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number of shares of ordinary shares outstanding during each year. Diluted loss per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus dilutive potential shares considered outstanding during the period, in accordance with ASC 260-10. Basic and diluted net loss per share of ordinary shares was the same for each period presented as the inclusion of all potential ordinary shares outstanding was anti-dilutive. For the years ended December 31, 2016, 2017 and 2018, all outstanding options and RSU’s have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive and the total options and RSU’s that have been excluded from the calculations was 9,773,837, 10,294,200 and 9,767,225 respectively. |
Comprehensive loss: | x. Comprehensive loss: The Company accounts for comprehensive loss in accordance with Accounting Standards Codification No. 220, "Comprehensive Income"("ASC No. 220"). This statement establishes standards for the reporting and display of comprehensive loss and its components in a full set of general purpose financial statements. Comprehensive loss generally represents all changes in shareholders' equity during the period except those resulting from investments by, or distributions to shareholders. The total accumulated other comprehensive loss was comprised as follows: Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning Balance (291 ) 5 $ (286 ) Other comprehensive income before reclassifications, net (24 ) (3,068 ) (3,092 ) Amounts reclassified from accumulated other comprehensive income - 1,687 1,687 Net current period other comprehensive loss (24 ) (1,381 ) (1,405 ) Total accumulated other comprehensive loss (315 ) (1,376 ) $ (1,691 ) Year ended December 31, 2017 Unrealized losses on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning Balance - (389 ) $ (389 ) Other comprehensive income before reclassifications, net (291 ) 5,812 5,521 Amounts reclassified from accumulated other comprehensive income - (5,418 ) (5,418 ) Net current period other comprehensive loss (291 ) 394 103 Total accumulated other comprehensive loss (291 ) 5 $ (286 ) |
Concentration of credit risks: | y. Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term and restricted deposits. The majority of the Company's and its subsidiaries' cash and cash equivalents, short-term and restricted deposits are invested with major bank in Israel, Brazil and the United States. Such investments in the United States may be in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and, therefore, bear minimal risk. |
Fair value of financial instruments: | z. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. The following methods and assumptions were used by the Company in estimating the fair value of their financial instruments: The carrying values of cash and cash equivalents, short-term and restricted deposits, trade receivables, prepaid expenses and other current assets, trade payables, employees and payroll accruals and accrued expenses and other current liabilities approximate fair values due to the short-term maturities of these instruments. The Company applies ASC No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), with respect to fair value measurements of all financial assets and liabilities. In accordance with ASC No. 820, the Company measures its money market funds, marketable securities and foreign currency derivative contracts at fair value. Money market funds and marketable securities are classified within Level 1 or Level 2. This is because these assets are valued using quoted market prices or alternative pricing sources and models utilizing market observable inputs. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Include other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 . Level 1 Level 2 Total Money market funds $ 456 $ - $ 456 Corporate bonds - 67,248 67,248 Treasury bonds - 2,969 2,969 456 70,217 70,673 Derivatives contracts - 2,573 2,573 Total financial assets 456 72,790 73,246 Derivatives contracts - 2,596 2,596 Total financial liabilities $ - $ 2,596 $ 2,596 The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017. Level 1 Level 2 Total Money market funds $ 331 $ - $ 331 Certificates of deposits - 11,013 11,013 Corporate bonds - 21,717 21,717 331 32,730 33,061 Derivatives contracts - 1,192 1,192 Total financial assets 331 33,922 34,253 Derivatives contracts - 2,973 2,973 Total financial liabilities $ - $ 2,973 $ 2,973 |
Government grants: | aa. Government grants: Government grants received by the Company relating to categories of operating expenditures are credited to the consolidated statements of operations during the period in which the expenditure to which they relate is charged. Salary bearing grants from the Ministry of Economy and Industry of Israel for funding certain approved positions are recognized at the time when the Company is entitled to such grants, on the basis of the related costs incurred, and included as a deduction from salary expenses. The Company recorded grants in the amounts of $ 1,030 and $ 1,172 for the years ended December 31, 2017 and 2018 respectively. The conditions to receive these grants are based on actual certain approved HC position. The company may be subject to penalties if certain criteria under the grants are not met. |
Recently issued accounting standards, not yet adopted by the Company: | bb. Recently issued accounting standards, not yet adopted by the Company: In August 2018, the FASB issued ASU No. 2018-15, Intangibles - Goodwill and Other - Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract. This ASU clarifies the accounting treatment for implementation costs for cloud computing arrangements (hosting arrangements) that are service contracts. This standard becomes effective for the Company beginning January 1, 2020. The Company is currently assessing the effect that this ASU will have on its consolidated financial statements and related disclosures. In June 2016, FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 amends the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in the more timely recognition of losses. ASU 2016-13 also applies to employee benefit plan accounting, with an effective date of the first quarter of fiscal 2020. The amendments in this update are effective for fiscal years beginning after December 31, 2019, including interim periods within those fiscal years. The Company is currently assessing the impact of the adoption of this standard on its consolidated financial statements, footnote disclosures and employee benefit plans’ accounting. In July 2018, the FASB issued ASU No. 2018-11, Leases (Topic 842): Targeted Improvements. The standard provides an additional transition method that allows entities to apply the new leases standard at adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. The Company elected this new transition method when it adopted ASU 2016-02 on January 1, 2019. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). The standard requires lessees to recognize almost all leases on the balance sheet as a right-of-use asset and a lease liability and requires leases to be classified as either an operating or a finance type lease. The standard excludes leases of intangible assets or inventory. The standard became effective for the Company beginning January 1, 2019. The Company has estimated the opening balances of the right-of-use assets and lease liabilities upon adopting the standard as of January 1, 2019 to be approximately $51 million. The Company is still in the process of finalizing the calculation. In addition, a material portion of the Company's leases are denominated in currencies other than the U.S. Dollar, mainly in NIS. As a result, the associated lease liabilities will be remeasured using the current exchange rate in the future reporting periods, which may result in material foreign exchange gains or losses. Other than the matters discussed above, the standard is not expected to have a material impact on the Company's results of operations or cash flows. In August 2017, the FASB issued ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities , which expands the activities that qualify for hedge accounting and simplifies the rules for reporting hedging transactions. The standard is effective for the Company beginning January 1, 2019. Early adoption is permitted. The Company does not expect that the adoption of this standard will have a material impact on its consolidated financial statements and related disclosures. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, peripheral equipment and electronic equipment 15 – 33 (mainly 33) Office furniture and equipment 6 – 14 (mainly 6) Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Schedule of Theoretical Effect Balance Sheet | The cumulative effect of the changes made to The Comapny January 1, 2018 consolidated balance sheet for the adoption of Topic 606 were as follows (USD, in thousands): Balance at December 31, 2017 Adjustments due to Topic 606 Balance at January 1, 2018 Prepaid expenses and other current assets 19,246 (10,745 ) 8,501 Prepaid expenses and other long-term assets 3,823 (2,697 ) 1,126 Deferred revenues ST 202,482 (25,379 ) 177,103 Deferred revenues LT 14,329 (6,393 ) 7,936 Accumulated deficit (299,581 ) 18,330 (281,251) In accordance with the new revenue standard requirements, the disclosure of the impact of adoption on our consolidated statement of comprehensive loss and balance sheet for the year ended December 31, 2018 was as follows (USD, in thousands): Consolidated Balance Sheet Balance as reported at December 31, 2018 Adjustment due to Topic 606 Amounts under Topic 605 Prepaid expenses and other current assets 11,939 13,596 25,535 Prepaid expenses and other long-term assets 3,065 3,536 6,601 Deferred revenues ST 227,226 30,129 257,355 Deferred revenues LT 12,494 8,269 20,763 Accumulated deficit (318,371 ) (21,266 ) (339,637 ) |
Schedule of Theoretical Effect Income Statement | Consolidated statement of comprehensive loss Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Revenue 603,704 (6,626 ) 597,078 Cost of Revenue 126,947 (3,690 ) 123,257 Net loss (37,120 ) (2,936 ) (40,056 ) Basic and diluted net loss per share $ (0.77 ) $ (0.06 ) $ (0.83 ) |
Schedule of Theoretical Effect Cash Flow | Consolidated statement of cash flows Balance as reported at December 31, 2018 Adjustments due to Topic 606 Amounts under Topic 605 Cash flow from operating activities: Net loss (37,120 ) (2,936 ) (40,056 ) Other adjustments 152,829 2,936 155,765 |
Schedule of Total Accumulated Other Comprehensive Loss, Net | The total accumulated other comprehensive loss was comprised as follows: Year ended December 31, 2018 Unrealized losses on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning Balance (291 ) 5 $ (286 ) Other comprehensive income before reclassifications, net (24 ) (3,068 ) (3,092 ) Amounts reclassified from accumulated other comprehensive income - 1,687 1,687 Net current period other comprehensive loss (24 ) (1,381 ) (1,405 ) Total accumulated other comprehensive loss (315 ) (1,376 ) $ (1,691 ) Year ended December 31, 2017 Unrealized losses on marketable securities Unrealized gain (losses) on cash flow hedges Total Beginning Balance - (389 ) $ (389 ) Other comprehensive income before reclassifications, net (291 ) 5,812 5,521 Amounts reclassified from accumulated other comprehensive income - (5,418 ) (5,418 ) Net current period other comprehensive loss (291 ) 394 103 Total accumulated other comprehensive loss (291 ) 5 $ (286 ) |
Schedule of Financial Assets and Liabilities Measured at Fair Value | The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2018 . Level 1 Level 2 Total Money market funds $ 456 $ - $ 456 Corporate bonds - 67,248 67,248 Treasury bonds - 2,969 2,969 456 70,217 70,673 Derivatives contracts - 2,573 2,573 Total financial assets 456 72,790 73,246 Derivatives contracts - 2,596 2,596 Total financial liabilities $ - $ 2,596 $ 2,596 The following table represents the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2017. Level 1 Level 2 Total Money market funds $ 331 $ - $ 331 Certificates of deposits - 11,013 11,013 Corporate bonds - 21,717 21,717 331 32,730 33,061 Derivatives contracts - 1,192 1,192 Total financial assets 331 33,922 34,253 Derivatives contracts - 2,973 2,973 Total financial liabilities $ - $ 2,973 $ 2,973 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities Calssified as Available-for-sale Securities | At December 31, 2018, the Company held marketable securities classified as available-for-sale securities as follows: December 31, 2018 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Treasury bonds within one year maturity $ 2,967 2 $ - $ 2,969 Corporate bonds: - Maturing within one year 20,061 - (38 ) 20,023 Maturing within between one to five years 47,504 - (279 ) 47,225 67,565 - (317 ) 67,248 $ 70,532 2 $ (317 ) $ 70,217 At December 31, 2017, the Company held marketable securities classified as available-for-sale securities as follows: December 31, 2017 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Certificates of deposits $ 11,075 - $ (62 ) $ 11,013 Corporate bonds: - Maturing within one year 2,113 - (10 ) 2,103 Maturing within between one to five years 19,833 - (219 ) 19,614 21,946 - (229 ) 21,717 $ 33,021 - $ (291 ) $ 32,730 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Summary of Fair Values of Assets Acquired and Liabilities | The following table summarizes the fair values of the assets acquired and liabilities assumed: (in thousands) Short term investment $ 15 Other current assets 46 Property and equipment, net 53 Other long term assets 46 Intangible assets 1,354 Goodwill 1,379 Total Assets $ 2,893 Current liabilities 1,720 Long term loan 1,389 Total Liabilities $ 3,109 Total purchase price allocation,net of cash acquired $ (216 ) |
Schedule of Identifiable Assets as of date of acquisition | The following table provides details regarding the identifiable assets acquired as of the date of the acquisition: Fair value Weighted Average Useful Life (in thousands) (in years) Technology 1,117 6 Customer relations 237 5 Total purchased intangible assets $ 1,354 |
Deviant Art, Inc. [Member] | |
Summary of Fair Values of Assets Acquired and Liabilities | The following table summarizes the fair values of the assets acquired and liabilities assumed: (in thousands) Reserve deposit $ 195 Other current assets 1,237 Property and equipment, net 146 Other long term assets 31 Intangible assets 24,865 Goodwill 14,684 Total Assets $ 41,158 Current liabilities 7,851 Total Liabilities $ 7,851 Total purchase price allocation, net of cash acquired $ 33,307 |
Schedule of Identifiable Assets as of date of acquisition | The following table provides details regarding the identifiable assets acquired acquired as of the date of the acquisition Fair value Weighted Average Useful Life (in thousands) (in years) Technology 1,906 5 Customer relations 10,430 15 Customer Data 12,043 15 Brand/Domain 486 7 Total purchased intangible assets $ 24,865 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2017 2018 Government authorities $ 2,504 $ 1,885 Hedging transaction asset 1,192 2,574 Prepaid expenses 13,962 5,293 Other current assets 1,588 2,187 $ 19,246 $ 11,939 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | The composition of property and equipment, net is as follows: December 31, 2017 2018 Cost: Leasehold improvements $ 17,388 $ 22,551 Computers, peripheral equipment and electronic equipment 13,856 18,004 Office furniture and equipment 3,913 5,252 35,157 45,807 Less accumulated depreciation 18,956 23,860 Depreciated cost $ 16,201 $ 21,947 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | December 31, 2017 2018 Cost: Technology $ 8,275 $ 8,275 Customer relations 10,667 10,667 Customer data 12,043 12,043 Domain 556 517 31,541 31,502 Less accumulated amortization 4,289 7,073 Intangible assets, net $ 27,252 $ 24,429 |
Schedule of estimated amortization expense | Estimated amortization expense for the years ended: December 31, 2018 2019 $ 2,929 2020 2,880 2021 2,604 2022 2,168 Thereafter 13,848 $ 24,429 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Other Liabilities, Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | December 31, 2017 2018 Accrued expenses $ 33,241 $ 32,634 Hedging transaction liability 2,973 2,596 Uncertain tax positions 1,378 334 $ 37,592 $ 35,564 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Net Carrying Amount | The net carrying amount of the Notes were as follows (in thousands): Principal outstanding Unamortized debt discount Unamortized debt issuance costs Net carrying value December 31, 2018 Convertible Notes 442,750 (96,371 ) (8,602 ) 337,777 The net carrying amount of the equity component of the Notes were as follows (in thousands): Amount allocated to conversion option Less: allocated issuance costs and Capped call Equity component, net December 31, 2018 Convertible notes 105,375 (48,337 ) 57,038 The Company recognized interest expense on the Notes as follows (in thousands, except for percentages): Year Ended December 31, 2018 Amortization of debt discount and issuance costs 10,004 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments under Operating Leases | The minimum rental payments under operating leases as of December 31, 2018, are as follows: Rental of premises 2019 13,385 2020 11,735 2021 7,447 2022 5,456 Thereafter 17,807 55,830 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Composition of Shares Capital | Composition of shares capital of the Company: December 31, 2017 December 31, 2018 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares 500,000,000 46,453,583 500,000,000 49,269,626 |
Total Share-Based Compensation Expense | The total share-based compensation expense related to all of the Company's equity-based awards, which include options, RSUs and employee stock purchase rights issued pursuant to our Employee Share Purchase Plan (“ESPP”) and recognized for the years ended December 31, 2016, 2017 and 2018 was comprised as follows: Year ended December 31, 2016 2017 2018 Cost of revenues $ 1,798 $ 2,930 $ 4,418 Research and development 14,543 26,227 39,417 Sales and marketing 4,553 6,585 9,770 General and administrative 7,154 11,958 18,725 Total share-based compensation expense $ 28,048 $ 47,700 $ 72,330 |
Schedule of Stock Options Granted to Employees Activity | A summary of the activity in options granted to employees for the year ended December 31, 2018 is as follows: Number of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 201 7 8,198,154 $ 16.65 6.27 $ 337,517 Granted 1,258,302 $ 68.25 Exercised (1,761,534 ) $ 13.29 Forfeited (31,609 ) $ 38.79 Balance as of December 31, 2018 7,663,313 $ 25.81 5.91 $ 496,978 Exercisable as of December 31, 2018 5,110,726 $ 14.2 4.83 $ 389,208 Vested and expected to vest as of December 31, 2018 7,536,284 $ 25.3 5.87 $ 492,396 |
Schedule of Stock Option Valuation Assumptions - Compensation to Employees | The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Expected volatility 49.6%-54.0% 45.46%-48.04 45.19%-46.64% Expected dividends 0% 0% 0% Expected term (in years) 5 -6.32 5.03 -7.07 5.17 -7.53 Risk free rate 1.15%-2.26% 1.82%-2.27% 2.59%-3.03% |
Summary of Options Data | A summary of options data for the years ended December 31, 2016, 2017 and 2018, is as follows: Year ended December 31, 2016 2017 2018 Weighted-average grant date fair value of options granted $ 9.02 $ 27.50 $ 34.93 Total intrinsic value of the options exercised $ 64,062 $ 75,763 $ 137,448 Total fair value of shares vested $ 18,602 $ 20,780 $ 27,629 |
Schedule of Options Outstanding and Exercisable | The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2018: Exercise price (Range) Options outstanding as of December 31, 2018 Weighted average remaining contractual term Options exercisable as of December 31, 2018 Weighted average remaining contractual term (years) (years) 0.001-0.08 1,217,241 4.64 947,832 4.61 0.09-0.5 1,285,879 1.97 1,285,879 1.97 0.51-8.73 744,092 4.01 744,092 4.01 8.74-19.86 672,158 5.86 589,790 5.82 19.87-21.13 814,247 6.75 563,773 6.63 21.14-51.32 707,035 7.20 414,664 6.82 51.33-52.2 739,000 8.12 323,310 8.12 52.21-60.33 264,532 9.05 51,741 9.01 60.34-61.75 719,000 9.12 75,748 9.12 61.76-108.9 500,129 9.23 113,897 8.80 7,663,313 5.91 5,110,726 4.83 |
Schedule Stock Options Outstanding and Exercisable to Non-Employees | The following table summarizes information about the Company's outstanding and exercisable options to purchase ordinary shares granted to non-employees consultants as of December 31, 2018: Options outstanding Exercisable as of as of Grant December 31, Exercise December 31, Exercisable date 2018 price 2018 Through January 25, 2011 10,000 0.67 10,000 January 25, 2021 January 9, 2013 3,400 2.34 3,400 January 9, 2023 13,400 13,400 |
Schedule of Stock Option Valuation Assumptions - Non-Employees | The following table set forth the parameters used in computation of the employee stock purchase plan for the years ended December 31, 2016, 2017 and 2018: Year ended December 31, 2016 2017 2018 Expected volatility 44.6%-45.8% 33.6%-43.4% 39.9%-41.2% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 0.26%-0.46% 0.47%-0.79% 1.85%-2.28% |
Schedule of Restricted Stock Unit Activity | A summary of RSU activity for the year ended December 31, 2018, is as follows: Number of shares Weighted average grant date fair value Per Share Unvested as of December 31, 2017 2,080,126 $ 48.62 Granted 1,052,893 $ 84.04 Vested (870,733 ) $ 46.72 Forfeited (171,774 ) $ 57.79 Unvested as of December 31, 2018 2,090,512 $ 66.53 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Taxes on Income | Loss before taxes on income is comprised as follows: Year ended December 31, 2016 2017 2018 Domestic $ (60,249 ) $ (53,432 ) $ (50,679 ) Foreign 16,460 (1,518 ) 16,766 Loss before taxes on income $ (43,789 ) $ (54,950 ) $ (33,913 ) |
Schedule of Deferred Income Taxes | Significant components of the Company's deferred tax assets and liabilities are as follows: Year ended December 31, 2017 2018 Deferred tax assets: Net operating loss carry-forwards $ 34,234 $ 45,314 Capital losses carry-forwards 35 53 Research and development expenses 13,923 1,901 Tax credit carry-forwards 94 94 Depreciation difference 1,434 1,680 Accrued employees costs 1,801 2,176 Other 567 870 Deferred tax assets before valuation allowance 52,088 52,088 Valuation allowance (45,094 ) (44,607 ) Deferred tax asset, net $ 6,994 $ 7,481 Deferred tax liabilities: Fixed assets $ 481 $ 306 Intangible assets 6,214 5,556 Other 278 638 Deferred tax liabilities $ 6,973 $ 6,500 Year ended December 31, 2017 2018 Deferred taxes are included in the consolidated balance sheets, as follows: Long term receivables $ 772 $ 1,583 Long term liabilities $ 764 $ 602 |
Schedule of Income Taxes | Income taxes are comprised as follows: Year ended December 31, 2016 2017 2018 Current $ 3,424 $ 4,042 $ 4,188 Deferred (317 ) (2,719 ) (981 ) $ 3,107 $ 1,323 $ 3,207 Year ended December 31, 2016 2017 2018 Domestic $ 49 $ 578 $ 1,140 Foreign 3,058 745 2,067 $ 3,107 $ 1,323 $ 3,207 |
Reconciliation of Effective Tax Rate to Statutory Rate | A reconciliation of the Company's theoretical income tax expense to actual income tax expense as follows: Year ended December 31, 2016 2017 2018 Loss before taxes on income $ (43,789 ) $ (54,950 ) $ (33,913 ) Statutory tax rate 25 % 24 % 23 % Theoretical income tax expense (10,947 ) (13,188 ) (7,800 ) Deferred taxes for which valuation allowance was provided, net 8,620 2,122 (1,925 ) Non-deductible option expenses 5,224 8,528 12,609 Non-deductible expenses 815 1,263 824 Tax adjustment in respect of different tax rate of foreign subsidiary (1,015 ) (1,679 ) (1,627 ) Rate Change Impact - 3,099 (174 ) Foregin Tax - 881 1,182 Other 410 297 118 Income tax expense $ 3,107 $ 1,323 $ 3,207 |
Schedule of reconciliation of the opening and closing amounts of total unrecognized tax benefits | A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2017 2018 Opening balance $ 1,098 $ 1,378 Increases (decrease) related to previous year tax positions 280 (1,044 ) Closing balance $ 1,378 $ 334 |
FINANCIAL INCOME (EXPENSES), _2
FINANCIAL INCOME (EXPENSES), NET (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Financial Income (Expenses), Net | Year ended December 31, 2016 2017 2018 Bank charges $ (226 ) $ (310 ) $ (310 ) Income (expense) related to hedging activity 748 (7,101 ) 1,434 Amortization of debt discount and issuance costs - - (10,004 ) Exchange rate income (loss) (1,122 ) 1,214 (3,521 ) Total income (expenses) (600 ) (6,197 ) (12,401 ) Interest income 847 1,182 9,607 Total financial income (expenses), net $ 247 $ (5,015 ) $ (2,794 ) |
BASIC AND DILUTED NET LOSS PE_2
BASIC AND DILUTED NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | Year ended December 31, 2016 2017 2018 Net loss available to shareholders of ordinary shares $ (46,896 ) $ (56,273 ) $ (37,120 ) Denominator: Shares used in computing net loss per ordinary shares, basic and diluted 42,032,818 45,552,199 48,017,188 |
Summary of Reconciliation of Basic Weighted Average Number of Shares | The following table summarizes the reconciliation of the basic weighted average number of shares outstanding and the diluted weighted average number of shares outstanding. Year ended December 31, 2016 2017 2018 Shares used in computing net loss per ordinary shares, basic and diluted 42,032,818 45,552,199 48,017,188 The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: Stock options 8,405,787 8,212,554 7,676,713 Restricted share units 1,368,050 2,081,646 2,090,512 9,773,837 10,294,200 9,767,225 |
SEGMENTS, CUSTOMERS AND GEOGR_2
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographical Areas | Revenues: Year ended December 31, 2016 2017 2018 North America (*) $ 147,209 $ 220,124 $ 316,446 Europe 77,465 110,419 159,768 Latin America 25,904 36,816 46,232 Asia and others 39,524 58,277 81,258 $ 290,103 $ 425,636 $ 603,704 (*) Include revenue from USA in amount of 131,796, 192,153 and 278,784 for 2016, 2017 and 2018 respectively. |
Schedule of Long-lived Assets by Geographical Areas | Long-lived assets: December 31, 2017 2018 Israel $ 12,326 $ 17,581 Europe 613 699 North America 3,262 3,667 $ 16,201 $ 21,947 |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 31, 2017 | |
Subsidiary, Sale of Stock [Line Items] | |||||
Cash consideration | $ 33,091 | ||||
Deviant Art, Inc. [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Cash consideration | $ 36,000 | ||||
Percentage acquired | 100.00% | ||||
Liabilities assumed | $ 7,851 | ||||
Loyalblocks Ltd [Member] | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Percentage acquired | 100.00% | ||||
Liabilities assumed | $ 3,109 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2016USD ($)shares | Jan. 02, 2018USD ($) | |
Significant Accounting Policies [Line Items] | ||||
Outstanding options and RSU's excluded from the calculation of the diluted net loss per share | shares | 9,767,225 | 10,294,200 | 9,773,837 | |
Advertising expense | $ 165,319 | $ 141,346 | $ 113,151 | |
Severance pay expenses | $ 9,489 | $ 7,768 | 5,411 | |
Severance pay rate | 8.33% | |||
Weighted average interest rates of short-term deposits | 2.84% | 2.08% | ||
Restricted deposits, weighted average interest rate | 0.06% | 0.05% | ||
Number of reporting units | 1 | |||
Useful life of intangible assets | 13 years | |||
Foreign currency derivative assets, fair value | $ 599 | $ 891 | ||
Foreign currency derivative liabilities, fair value | 940 | 84 | ||
Foreign currency derivative fair value, net | $ (341) | 807 | ||
Maximium plan contribution, percent of annual salary | 100.00% | |||
Maximum annual contribution to plan, per employee | $ 18 | |||
Employer matching contribution, percent of employee's contribution | 4.00% | |||
Defined contribution plan expenses | $ 587 | 334 | 167 | |
Income (expenses) related to hedging activity | 1,434 | (7,101) | 748 | |
Accumulated income (loss) on derivatives | (1,381) | 394 | (141) | |
Grants | 1,172 | 1,030 | ||
Capitalization of software development costs | 392 | 720 | ||
Revenues recognized that were included in contract liability | 177,000 | |||
Right of use assets and lease liabilities | 51,000 | |||
Deferred revenues | 227,226 | 202,482 | $ 177,103 | |
Certain Employees Over 50 Years Of Age [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Maximum annual contribution to plan, per employee | 24 | |||
Not Designated as Hedging Instrument [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Foreign currency derivative assets, fair value | 1,974 | 302 | ||
Foreign currency derivative liabilities, fair value | 1,656 | 2,889 | ||
Foreign currency derivative fair value, net | 318 | (2,587) | ||
Not Designated as Hedging Instrument [Member] | Foreign Exchange Forward [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative notional amount | 113,730 | |||
Designated as Hedging Instrument [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative notional amount | 153,068 | |||
Income (expenses) related to hedging activity | (1,687) | $ 5,417 | $ 831 | |
Accumulated income (loss) on derivatives | $ (993) |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Property Plant And Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Computers, peripheral equipment and electronic equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 15.00% |
Computers, peripheral equipment and electronic equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 33.00% |
Office furniture and equipment | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 6.00% |
Office furniture and equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 14.00% |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Depreciation rate, description | Over the shorter of the related lease period or the life of the asset |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Cumulative Effect to Consolidated Balance Sheet) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Prepaid expenses and other current assets | $ 11,939 | $ 8,501 | $ 19,246 |
Prepaid expenses and other long-term assets | 3,065 | 1,126 | 3,823 |
Deferred revenues ST | 227,226 | 177,103 | 202,482 |
Deferred revenues LT | 12,494 | 7,936 | 14,329 |
Accumulated deficit | (318,371) | $ (281,251) | (299,581) |
Adjustments due to Topic 606 [Member] | |||
Prepaid expenses and other current assets | 13,596 | (10,745) | |
Prepaid expenses and other long-term assets | 3,536 | (2,697) | |
Deferred revenues ST | 30,129 | (25,379) | |
Deferred revenues LT | 8,269 | (6,393) | |
Accumulated deficit | (21,266) | $ 18,330 | |
Amounts under Topic 605 [Member] | |||
Prepaid expenses and other current assets | 25,535 | ||
Prepaid expenses and other long-term assets | 6,601 | ||
Deferred revenues ST | 257,355 | ||
Deferred revenues LT | 20,763 | ||
Accumulated deficit | $ (339,637) |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Theoretical Effect to Our Income Statement) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Revenues | $ 603,704 | $ 425,636 | $ 290,103 |
Cost of revenues | 126,947 | 69,391 | 45,287 |
Net loss | $ (37,120) | $ (56,273) | $ (46,896) |
Basic and diluted net loss per ordinary share | $ (0.77) | $ (1.24) | $ (1.12) |
Adjustments due to Topic 606 [Member] | |||
Revenues | $ (6,626) | ||
Cost of revenues | (3,690) | ||
Net loss | $ (2,936) | ||
Basic and diluted net loss per ordinary share | $ (0.06) | ||
Amounts under Topic 605 [Member] | |||
Revenues | $ 597,078 | ||
Cost of revenues | 123,257 | ||
Net loss | $ (40,056) | ||
Basic and diluted net loss per ordinary share | $ (0.83) |
SIGNIFICANT ACCOUNTING POLICI_8
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Theoretical Effect to Cash Flows) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cash flow from operating activities: | |||
Net loss | $ (37,120) | $ (56,273) | $ (46,896) |
Other adjustments | 152,829 | ||
Adjustments due to Topic 606 [Member] | |||
Cash flow from operating activities: | |||
Net loss | (2,936) | ||
Other adjustments | 2,936 | ||
Amounts under Topic 605 [Member] | |||
Cash flow from operating activities: | |||
Net loss | (40,056) | ||
Other adjustments | $ 155,765 |
SIGNIFICANT ACCOUNTING POLICI_9
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Reclassification of Accumulated Other Comprehensive Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Beginning Balance | $ (286) | $ (389) | |
Other comprehensive income before reclassifications, net | (3,092) | 5,521 | |
Amounts reclassified from accumulated other comprehensive income | 1,687 | (5,418) | |
Net current period other comprehensive loss | (1,405) | 103 | $ (141) |
Total accumulated other comprehensive loss | (1,691) | (286) | (389) |
Unrealized losses on marketable securities [Member] | |||
Beginning Balance | (291) | ||
Other comprehensive income before reclassifications, net | (24) | (291) | |
Amounts reclassified from accumulated other comprehensive income | |||
Net current period other comprehensive loss | (24) | (291) | |
Total accumulated other comprehensive loss | (315) | (291) | |
Unrealized gain (losses) on cash flow hedges [Member] | |||
Beginning Balance | 5 | (389) | |
Other comprehensive income before reclassifications, net | (3,068) | 5,812 | |
Amounts reclassified from accumulated other comprehensive income | 1,687 | (5,418) | |
Net current period other comprehensive loss | (1,381) | 394 | |
Total accumulated other comprehensive loss | $ (1,376) | $ 5 | $ (389) |
SIGNIFICANT ACCOUNTING POLIC_10
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Financial Assets and Liabilities Measured at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | $ 70,673 | $ 33,061 |
Total financial assets | 73,246 | 34,253 |
Total financial liabilities | 2,596 | 2,973 |
Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 456 | 331 |
Total financial assets | 456 | 331 |
Total financial liabilities | ||
Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 70,217 | 32,730 |
Total financial assets | 72,790 | 33,922 |
Total financial liabilities | 2,596 | 2,973 |
Money Market Funds [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 456 | 331 |
Money Market Funds [Member] | Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 456 | 331 |
Money Market Funds [Member] | Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | ||
Certificates of Deposit [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 67,248 | 11,013 |
Certificates of Deposit [Member] | Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | ||
Certificates of Deposit [Member] | Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 67,248 | 11,013 |
Corporate Bonds [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 2,969 | 21,717 |
Corporate Bonds [Member] | Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | ||
Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets Gross | 2,969 | 21,717 |
Derivatives contracts [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets | 2,573 | 1,192 |
Total financial liabilities | 2,596 | 2,973 |
Derivatives contracts [Member] | Level 1 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets | ||
Total financial liabilities | ||
Derivatives contracts [Member] | Level 2 [Member] | ||
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items] | ||
Total financial assets | 2,573 | 1,192 |
Total financial liabilities | $ 2,596 | $ 2,973 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities Calssified as Available-for-sale Securities) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized cost | $ 70,532 | $ 33,021 |
Gross unrealized gains | 2 | |
Gross unrealized losses | (317) | (291) |
Fair value | 22,992 | 32,730 |
Certificates of Deposit [Member] | ||
Amortized cost | 2,967 | 11,075 |
Gross unrealized gains | 2 | |
Gross unrealized losses | (62) | |
Fair value | 2,969 | 11,013 |
Corporate Bonds [Member] | ||
Amortized cost | 67,565 | 21,946 |
Gross unrealized gains | ||
Gross unrealized losses | (317) | (229) |
Fair value | 67,248 | 21,717 |
Corporate Bonds Maturing Within One Year [Member] | ||
Amortized cost | 20,061 | 2,113 |
Gross unrealized gains | ||
Gross unrealized losses | (38) | (10) |
Fair value | 20,023 | 2,103 |
Corporate Bonds Maturing Within Between One To Five Years [Member] | ||
Amortized cost | 47,504 | 19,833 |
Gross unrealized gains | ||
Gross unrealized losses | (279) | (219) |
Fair value | $ 47,225 | $ 19,614 |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Feb. 28, 2017 | Jan. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Business Acquisition [Line Items] | |||||
Cash consideration | $ 33,091 | ||||
Loyalblocks Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage acquired | 100.00% | ||||
Acquisition related expense | |||||
Liabilities assumed | $ 3,109 | ||||
Loyalblocks Ltd [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible asset and utilized discount rate | 22.25% | ||||
Loyalblocks Ltd [Member] | Technology [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible asset and utilized discount rate | 22.25% | ||||
Deviant Art, Inc. [Member] | |||||
Business Acquisition [Line Items] | |||||
Percentage acquired | 100.00% | ||||
Acquisition related expense | $ 500 | $ 4,300 | |||
Cash consideration | $ 36,000 | ||||
Net consideration | 33,000 | ||||
Liabilities assumed | $ 7,851 | ||||
Deviant Art, Inc. [Member] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible asset and utilized discount rate | 14.25% | ||||
Deviant Art, Inc. [Member] | Brand/Domain [Member] | |||||
Business Acquisition [Line Items] | |||||
Fair value of intangible asset and utilized discount rate | 20.25% | ||||
Royalty rate of revenues | 7.50% |
BUSINESS COMBINATION (Fair Valu
BUSINESS COMBINATION (Fair Values of Assets Acquired and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 28, 2017 | Jan. 31, 2017 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 17,800 | $ 17,800 | ||
Loyalblocks Ltd [Member] | ||||
Business Acquisition [Line Items] | ||||
Short term investment | $ 15 | |||
Other current assets | 46 | |||
Property and equipment, net | 53 | |||
Other long term assets | 46 | |||
Intangible assets | 1,354 | |||
Goodwill | 1,379 | |||
Total Assets | 2,893 | |||
Current liabilities | 1,720 | |||
Long term loan | 1,389 | |||
Total Liabilities | 3,109 | |||
Total purchase price allocation,net of cash acquired | $ (216) | |||
Deviant Art, Inc. [Member] | ||||
Business Acquisition [Line Items] | ||||
Reserve deposit | $ 195 | |||
Other current assets | 1,237 | |||
Property and equipment, net | 146 | |||
Other long term assets | 31 | |||
Intangible assets | 24,865 | |||
Goodwill | 14,684 | |||
Total Assets | 41,158 | |||
Current liabilities | 7,851 | |||
Total Liabilities | 7,851 | |||
Total purchase price allocation,net of cash acquired | $ 33,307 |
BUSINESS COMBINATION (Schedule
BUSINESS COMBINATION (Schedule of Identifiable Assets as of date of acquisition) (Details) - USD ($) $ in Thousands | 1 Months Ended | |
Feb. 28, 2017 | Jan. 31, 2017 | |
Loyalblocks Ltd [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 1,354 | |
Loyalblocks Ltd [Member] | Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 1,117 | |
Weighted average useful life | 6 years | |
Loyalblocks Ltd [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 237 | |
Weighted average useful life | 5 years | |
Deviant Art, Inc. [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 24,865 | |
Deviant Art, Inc. [Member] | Technology [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 1,906 | |
Weighted average useful life | 5 years | |
Deviant Art, Inc. [Member] | Customer Relationships [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 10,430 | |
Weighted average useful life | 15 years | |
Deviant Art, Inc. [Member] | Customer Data [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 12,043 | |
Weighted average useful life | 15 years | |
Deviant Art, Inc. [Member] | Brand/Domain [Member] | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Total purchased intangible assets | $ 486 | |
Weighted average useful life | 7 years |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jan. 02, 2018 | Dec. 31, 2017 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Government authorities | $ 1,885 | $ 2,504 | |
Hedging transaction asset | 2,574 | 1,192 | |
Prepaid expenses | 5,293 | 13,962 | |
Other current assets | 2,187 | 1,588 | |
Total prepaid expenses and other current assets | $ 11,939 | $ 8,501 | $ 19,246 |
PROPERTY AND EQUIPMENT, NET (De
PROPERTY AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Cost | $ 45,807 | $ 35,157 | |
Less accumulated depreciation | 23,860 | 18,956 | |
Depreciated cost | 21,947 | 16,201 | |
Depreciation | 8,724 | 5,654 | $ 4,538 |
Reduction to the cost and accumulated depreciation of fully depreciated equipment no longer in use | 3,700 | ||
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 22,551 | 17,388 | |
Computers, peripheral equipment and electronic equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost | 18,004 | 13,856 | |
Office furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Cost | $ 5,252 | $ 3,913 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Cost: | |||
Intangible assets, gross | $ 31,502 | $ 31,541 | |
Less accumulated amortization | 7,073 | 4,289 | |
Intangible assets, net | 24,429 | 27,252 | |
Amortization expense | 2,784 | 2,753 | $ 747 |
Technology-Based Intangible Assets [Member] | |||
Cost: | |||
Intangible assets, gross | 8,275 | 8,275 | |
Customer Relationships [Member] | |||
Cost: | |||
Intangible assets, gross | 10,667 | 12,043 | |
Customer data [Member] | |||
Cost: | |||
Intangible assets, gross | 12,043 | 10,667 | |
Domain [Member] | |||
Cost: | |||
Intangible assets, gross | $ 517 | $ 556 |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Estimated amortization expense | ||
2019 | $ 2,929 | |
2020 | 2,880 | |
2021 | 2,604 | |
2022 | 2,168 | |
Thereafter | 13,848 | |
Intangible assets, net | $ 24,429 | $ 27,252 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Other Liabilities, Current [Abstract] | ||
Accrued expenses | $ 32,634 | $ 33,241 |
Hedging transaction liability | 2,596 | 2,973 |
Uncertain tax positions | 334 | 1,378 |
Total accrued expenses and other current liabilities | $ 35,564 | $ 37,592 |
CONVERTIBLE NOTES (Narrative) (
CONVERTIBLE NOTES (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Capped Call Transactions | $ 45,338 | ||
Convertible Notes [Member] | |||
Principal amount | $ 442,750 | ||
Coupon rate | 0.00% | ||
Maturity date | Jan. 1, 2023 | ||
Conversion rate | $ 7.0113 | ||
Carrying amount of equity component representing conversion option | $ 105,400 | ||
Effective interest rate | 6.20% | ||
Debt issuance costs | $ 11,500 | ||
Issuance costs attributable to liability component | 9,600 | ||
Convertible Notes [Member] | Third Party Consultants [Member] | |||
Debt issuance costs | 1,100 | ||
Convertible Notes [Member] | Ordinary Shares [Member] | |||
Principal amount | $ 1,000 | ||
Conversion rate | $ 142.63 |
CONVERTIBLE NOTES (Schedule of
CONVERTIBLE NOTES (Schedule of Net Carrying Amount) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Net carrying value | $ 337,777 | ||
Amortization of debt discount and issuance costs | 10,004 | ||
Convertible Notes [Member] | |||
Principal outstanding | 442,750 | ||
Unamortized debt discount | (96,371) | ||
Unamortized debt issuance costs | (8,602) | ||
Net carrying value | 337,777 | ||
Amount allocated to conversion option | 105,375 | ||
Less: allocated issuance costs and Capped call | (48,337) | ||
Equity component, net | 57,038 | ||
Amortization of debt discount and issuance costs | $ 10,004 |
COMMITMENTS AND CONTINGENT LI_3
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Commitments And Contingencies [Line Items] | |||
Maximum amount of penalties, upon exercise of an option to be released from operating lease agreements | $ 222 | ||
Rent expense | 13,028 | $ 9,785 | $ 6,719 |
Guarantee obligation amount | 714 | ||
Vehicles [Member] | |||
Commitments And Contingencies [Line Items] | |||
Rent expense | $ 1,311 | $ 998 | $ 798 |
COMMITMENTS AND CONTINGENT LI_4
COMMITMENTS AND CONTINGENT LIABILITIES (Schedule of Minimum Future Rentals of Premises under Operating Leases) (Details) - Building [Member] $ in Thousands | Dec. 31, 2018USD ($) |
Other Commitments [Line Items] | |
2019 | $ 13,385 |
2020 | 11,735 |
2021 | 7,447 |
2022 | 5,456 |
Thereafter | 17,807 |
Future minimum rentals | $ 55,830 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Stockholders Equity Note [Line Items] | |
Unrecognized compensation cost | $ | $ 177,942 |
Weighted-average period for unrecognized compensation cost to be recognized | 2 years 10 months 17 days |
Employee Shares Incentive Plan ("the Plan") [Member] | Employee Stock Option [Member] | |
Stockholders Equity Note [Line Items] | |
Shares available for future grant | shares | 1,940,314 |
SHAREHOLDERS' EQUITY (Compositi
SHAREHOLDERS' EQUITY (Composition of Shares Capital) (Details) - shares | Dec. 31, 2018 | Dec. 31, 2017 |
Stockholders' Equity Note [Abstract] | ||
Share capital, Authorized | 500,000,000 | 500,000,000 |
Share capital, Issued and outstanding | 49,269,626 | 46,453,583 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation related to options and shares issued to employees and others | $ 72,330 | $ 47,700 | $ 28,048 |
Cost of Revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation related to options and shares issued to employees and others | 4,418 | 2,930 | 1,798 |
Research and Development Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation related to options and shares issued to employees and others | 39,417 | 26,227 | 14,543 |
Selling and Marketing Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation related to options and shares issued to employees and others | 9,770 | 6,585 | 4,553 |
General and Administrative Expense [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Stock-based compensation related to options and shares issued to employees and others | $ 18,725 | $ 11,958 | $ 7,154 |
SHAREHOLDERS' EQUITY (Summary O
SHAREHOLDERS' EQUITY (Summary Of Employee Options Activity) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Number of options | ||
Outstanding, balance | 8,198,154 | |
Granted | 1,258,302 | |
Exercised | (1,761,534) | |
Forfeited | (31,609) | |
Outstanding, balance | 7,663,313 | 8,198,154 |
Exercisable options at the end of the year | 5,110,726 | |
Options vested and expected to vest at the end of the year | 7,536,284 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price | $ 16.65 | |
Granted, weighted average exercise price | 68.25 | |
Exercised, weighted average exercise price | 13.29 | |
Forfeited, weighted average exercise price | 38.79 | |
Outstanding, weighted average exercise price | 25.81 | $ 16.65 |
Exercisable, weighted average exercise price | 14.20 | |
Options vested and expected to vest at the end of the year | $ 25.30 | |
Additional Disclosures | ||
Outstanding, weighted average remaining contractual term | 5 years 10 months 28 days | 6 years 3 months 8 days |
Exercisable, weighted average remaining contractual term | 4 years 9 months 29 days | |
Options vested and expected to vest, weighted average remaining contractual term | 5 years 10 months 14 days | |
Outstanding at the beginning of the year, aggregate intrinsic value | $ 496,978 | $ 337,517 |
Exercisable, aggregate intrinsic value | 389,208 | |
Options vested and expected to vest at the end of the year, aggregate intrinsic value | $ 492,396 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Stock Option Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 45.19% | 45.46% | 49.60% |
Expected volatility, maximum | 46.64% | 48.04% | 54.00% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk free rate, minimum | 2.59% | 1.82% | 1.15% |
Risk free rate, maximum | 3.03% | 2.27% | 2.26% |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 5 years 2 months 1 day | 5 years 11 days | 5 years |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 7 years 6 months 10 days | 7 years 26 days | 6 years 3 months 26 days |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 39.90% | 33.60% | 44.60% |
Expected volatility, maximum | 41.20% | 43.40% | 45.80% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term | 6 months | 6 months | 6 months |
Risk free rate, minimum | 1.85% | 0.47% | 0.26% |
Risk free rate, maximum | 2.28% | 0.79% | 0.46% |
SHAREHOLDERS' EQUITY (Summary_2
SHAREHOLDERS' EQUITY (Summary of Options Data) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of options granted | $ 34.93 | $ 27.50 | $ 9.02 |
Total intrinsic value of the options exercised | $ 137,448 | $ 75,763 | $ 64,062 |
Total fair value of share vested | $ 27,629 | $ 20,780 | $ 18,602 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule Of Options Outstanding and Exercisable by Exercise Price) (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 7,663,313 |
Weighted average remaining contractual life | 5 years 10 months 28 days |
Number of exercisable options outstanding | 5,110,726 |
Weighted average remainging contractual life of options | 4 years 9 months 29 days |
Employee Stock Option [Member] | 0.001-0.08 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 1,217,241 |
Weighted average remaining contractual life | 4 years 7 months 21 days |
Number of exercisable options outstanding | 947,832 |
Weighted average remainging contractual life of options | 4 years 7 months 10 days |
Employee Stock Option [Member] | 0.09-0.5 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 1,285,879 |
Weighted average remaining contractual life | 1 year 11 months 19 days |
Number of exercisable options outstanding | 1,285,879 |
Weighted average remainging contractual life of options | 1 year 11 months 19 days |
Employee Stock Option [Member] | 0.51-8.73 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 744,092 |
Weighted average remaining contractual life | 4 years 4 days |
Number of exercisable options outstanding | 744,092 |
Weighted average remainging contractual life of options | 4 years 4 days |
Employee Stock Option [Member] | 8.74-19.86 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 672,158 |
Weighted average remaining contractual life | 5 years 10 months 10 days |
Number of exercisable options outstanding | 589,790 |
Weighted average remainging contractual life of options | 5 years 9 months 25 days |
Employee Stock Option [Member] | 19.87-21.13 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 814,247 |
Weighted average remaining contractual life | 6 years 9 months |
Number of exercisable options outstanding | 563,773 |
Weighted average remainging contractual life of options | 6 years 7 months 17 days |
Employee Stock Option [Member] | 21.14-51.32 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 707,035 |
Weighted average remaining contractual life | 7 years 2 months 12 days |
Number of exercisable options outstanding | 414,664 |
Weighted average remainging contractual life of options | 6 years 9 months 25 days |
Employee Stock Option [Member] | 51.33-52.2 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 739,000 |
Weighted average remaining contractual life | 8 years 1 month 13 days |
Number of exercisable options outstanding | 323,310 |
Weighted average remainging contractual life of options | 8 years 1 month 13 days |
Employee Stock Option [Member] | 52.21-60.33 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 264,532 |
Weighted average remaining contractual life | 9 years 18 days |
Number of exercisable options outstanding | 51,741 |
Weighted average remainging contractual life of options | 9 years 4 days |
Employee Stock Option [Member] | 60.34-61.75 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 719,000 |
Weighted average remaining contractual life | 9 years 1 month 13 days |
Number of exercisable options outstanding | 75,748 |
Weighted average remainging contractual life of options | 9 years 1 month 13 days |
Employee Stock Option [Member] | 61.76-108.9 [Member] | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Options Outstanding | 500,129 |
Weighted average remaining contractual life | 9 years 2 months 23 days |
Number of exercisable options outstanding | 113,897 |
Weighted average remainging contractual life of options | 8 years 9 months 18 days |
SHAREHOLDERS' EQUITY (Options G
SHAREHOLDERS' EQUITY (Options Granted to Non-Employee Consultants) (Details) - Equity Option [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 13,400 |
Exercisable | 13,400 |
Equity Issuance Date One [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 10,000 |
Exercise price | $ / shares | $ 0.67 |
Exercisable | 10,000 |
Exercisable Through | Jan. 25, 2021 |
Equity Issuance Date Two [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options outstanding | 3,400 |
Exercise price | $ / shares | $ 2.34 |
Exercisable | 3,400 |
Exercisable Through | Jan. 9, 2023 |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of Restricted Stock Unit Activity) (Details) - Restricted Stock Units (RSUs) [Member] | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
Number of shares | |
Unvested as of December 31, 2017 | shares | 2,080,126 |
Granted | shares | 1,052,893 |
Vested | shares | (870,733) |
Forfeited | shares | (171,774) |
Unvested as of December 31, 2018 | shares | 2,090,512 |
Weighted average grant date fair value | |
Unvested as of December 31, 2017 | $ / shares | $ 48.62 |
Granted | $ / shares | 84.04 |
Vested | $ / shares | 46.72 |
Forfeited | $ / shares | 57.79 |
Unvested as of December 31, 2018 | $ / shares | $ 66.53 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Dec. 22, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 23.00% | 24.00% | 25.00% | |
Unrecognized tax benefits that would impact effective tax rate | $ 334 | |||
Interest expense related to uncertain tax positions | 199 | |||
Accrued interest liabiliy related to uncertain tax positions | 334 | |||
Israeli tax authorities [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Accrued interest liabiliy related to uncertain tax positions | 1,243 | |||
Minimum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 21.00% | |||
Maximum [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Corporate income tax rate | 35.00% | |||
Domestic Country [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carry-forwards | 213,446 | |||
Capital loss carry-forwards | 231 | |||
Foreign Country [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Operating loss carry-forwards | 168,694 | |||
Capital loss carry-forwards | $ 231 |
INCOME TAXES (Income (Loss) Bef
INCOME TAXES (Income (Loss) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (50,679) | $ (53,432) | $ (60,249) |
Foreign | 16,766 | (1,518) | 16,460 |
Loss before taxes on income | $ (33,913) | $ (54,950) | $ (43,789) |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Net operating loss carry-forwards | $ 45,314 | $ 34,234 |
Capital losses carry-forwards | 53 | 35 |
Research and development expenses | 1,901 | 13,923 |
Tax credit carry-forwards | 94 | 94 |
Depreciation difference | 1,680 | 1,434 |
Accrued employees costs | 2,176 | 1,801 |
Other | 870 | 567 |
Deferred tax assets before valuation allowance | 52,088 | 52,088 |
Valuation allowance | (44,607) | (45,094) |
Deferred tax asset, net | 7,481 | 6,994 |
Deferred tax liabilities: | ||
Fixed assets | 306 | 481 |
Intangible assets | 5,556 | 6,214 |
Other | 638 | 278 |
Deferred tax liabilities | 6,500 | 6,973 |
Long term receivables [Member] | ||
Deferred tax assets: | ||
Deferred tax asset, net | 1,583 | 772 |
Long term liabilities [Member] | ||
Deferred tax liabilities: | ||
Deferred tax liabilities | $ 602 | $ 764 |
INCOME TAXES (Schedule of Curre
INCOME TAXES (Schedule of Current and Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 4,188 | $ 4,042 | $ 3,424 |
Deferred | (981) | (2,719) | (317) |
Domestic | 1,140 | 578 | 49 |
Foreign | 2,067 | 745 | 3,058 |
Income tax expenses | $ 3,207 | $ 1,323 | $ 3,107 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |||
Loss before taxes on income | $ (33,913) | $ (54,950) | $ (43,789) |
Statutory tax rate | 23.00% | 24.00% | 25.00% |
Theoretical income tax expense | $ (7,800) | $ (13,188) | $ (10,947) |
Deferred taxes for which valuation allowance was provided, net | (1,925) | 2,122 | 8,620 |
Non-deductible option expenses | 12,609 | 8,528 | 5,224 |
Non-deductible expenses | 824 | 1,263 | 815 |
Tax adjustment in respect of different tax rate of foreign subsidiary | (1,627) | (1,679) | (1,015) |
Rate Change Impact | (174) | 3,099 | |
Foreign Tax | 1,182 | 881 | |
Other | 118 | 297 | 410 |
Income tax expenses | $ 3,207 | $ 1,323 | $ 3,107 |
INCOME TAXES (Schedule of recon
INCOME TAXES (Schedule of reconciliation of the opening and closing amounts of total unrecognized tax benefits) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Opening balance | $ 1,378 | $ 1,098 |
Increases (decrease) related to previous year tax positions | (1,044) | 280 |
Closing balance | $ 334 | $ 1,378 |
FINANCIAL INCOME (EXPENSES), _3
FINANCIAL INCOME (EXPENSES), NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Nonoperating Income (Expense) [Abstract] | |||
Bank charges | $ (310) | $ (310) | $ (226) |
Income (expense) related to hedging activity | 1,434 | (7,101) | 748 |
Amortization of debt discount and issuance costs | (10,004) | ||
Exchange rate income (loss) | (3,521) | 1,214 | (1,122) |
Total income (expenses) | (12,401) | (6,197) | (600) |
Interest income | 9,607 | 1,182 | 847 |
Total financial income (expenses), net | $ (2,794) | $ (5,015) | $ 247 |
BASIC AND DILUTED NET LOSS PE_3
BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Net loss available to shareholders of ordinary shares | $ (37,120) | $ (56,273) | $ (46,896) |
Denominator: | |||
Shares used in computing net loss per ordinary shares, basic and diluted | 48,017,188 | 45,552,199 | 42,032,818 |
BASIC AND DILUTED NET LOSS PE_4
BASIC AND DILUTED NET LOSS PER SHARE (Summary of Reconciliation of Basic Weighted Average Number of Shares) (Details) - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Shares used in computing net loss per ordinary shares, basic and diluted | 48,017,188 | 45,552,199 | 42,032,818 |
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: | |||
Stock options | 7,676,713 | 8,212,554 | 8,405,787 |
Restricted share units | 2,090,512 | 2,081,646 | 1,368,050 |
Outstanding options and RSU's excluded from the calculation of the diluted net loss per share | 9,767,225 | 10,294,200 | 9,773,837 |
SEGMENTS, CUSTOMERS AND GEOGR_3
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Revenues by Geographical Areas from External Customers) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 603,704 | $ 425,636 | $ 290,103 | |
North America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [1] | 316,446 | 220,124 | 147,209 |
Europe [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 159,768 | 110,419 | 77,465 | |
Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 46,232 | 36,816 | 25,904 | |
Asia and others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 81,258 | 58,277 | 39,524 | |
USA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 278,784 | $ 192,153 | $ 131,796 | |
[1] | Include revenue from USA in amount of 131,796, 192,153 and 278,784 for 2016, 2017 and 2018 respectively. |
SEGMENTS, CUSTOMERS AND GEOGR_4
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Long-lived Assets by Geographical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 21,947 | $ 16,201 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 17,581 | 12,326 |
Europe [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | 699 | 613 |
North America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long lived assets | $ 3,667 | $ 3,262 |