Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2021shares | |
Entity Registrant Name | WIX.COM LTD. |
Entity Central Index Key | 0001576789 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2021 |
Document Fiscal Period Focus | FY |
Amendment Flag | false |
Document Type | 20-F |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2021 |
Entity File Number | 001-36158 |
Entity Incorporation, State or Country Code | IL |
Document Registration Statement | false |
Entity Address, Address Line One | 40 Namal Tel Aviv St |
Entity Address, City or Town | Tel Aviv |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 6350671 |
Title of 12(b) Security | Ordinary shares, par value NIS 0.01 per share |
Trading Symbol | WIX |
Name of Exchange on which Security is Registered | NASDAQ |
Entity Well-known Seasoned Issuer | Yes |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Entity Emerging Growth Company | false |
Auditor Firm ID | 1281 |
Auditor Location | Tel-Aviv, Israel |
Auditor Name | KOST FORER GABBAY & KASIERER |
Document Accounting Standard | U.S. GAAP |
Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 57,254,189 |
Business Contact [Member] | |
Contact Personnel Name | Eitan Israeli |
Entity Address, Address Line One | 40 Namal Tel Aviv St. |
Entity Address, City or Town | Tel Aviv |
Entity Address, Country | IL |
Entity Address, Postal Zip Code | 6350671 |
City Area Code | 972 (3) |
Local Phone Number | 545-4900 |
Contact Personnel Email Address | israeli.eitan@wix.com |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 451,355 | $ 168,858 |
Short-term deposits | 411,687 | 577,138 |
Restricted deposits | 7,012 | 925 |
Marketable securities | 456,515 | 289,927 |
Trade receivables | 30,367 | 23,670 |
Prepaid expenses and other current assets | 32,877 | 40,666 |
Total current assets | 1,389,813 | 1,101,184 |
LONG-TERM ASSETS: | ||
Prepaid expenses and other long-term assets | 41,554 | 87,680 |
Property and equipment, net | 50,437 | 35,863 |
Marketable securities | 387,341 | 536,877 |
Intangible assets, net | 40,247 | 19,281 |
Goodwill | 49,300 | 24,235 |
Operating lease right-of-use assets | 101,095 | 88,406 |
Total long-term assets | 669,974 | 792,342 |
TOTAL ASSETS | 2,059,787 | 1,893,526 |
CURRENT LIABILITIES: | ||
Trade payables | 114,584 | 79,881 |
Employees and payroll accruals | 83,251 | 70,814 |
Deferred revenues | 484,446 | 409,698 |
Accrued expenses and other current liabilities | 62,816 | 48,769 |
Operating lease liabilities | 29,201 | 22,336 |
Total current liabilities | 774,298 | 631,498 |
LONG-TERM LIABILITIES: | ||
Convertible notes, net | 922,974 | 834,440 |
Long-term deferred revenues | 59,966 | 50,867 |
Long-term deferred tax liabilities | 72,803 | 15,343 |
Other long-term liabilities | 2,267 | 0 |
Long-term operating lease liabilities | 81,764 | 74,187 |
Total long-term liabilities | 1,139,774 | 974,837 |
TOTAL LIABILITIES | 1,914,072 | 1,606,335 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares of NIS 0.01 par value - Authorized: 500,000,000 shares at December 31, 2020 and 2021; Issued 56,027,758 and 58,149,325 shares at December 31, 2020 and 2021, respectively; Outstanding: 56,027,758 and 57,254,189 shares at December 31, 2020 and 2021, respectively | 111 | 107 |
Additional paid-in capital | 994,795 | 862,134 |
Treasury Shares at cost, 895,136 ordinary shares | (199,997) | 0 |
Accumulated other comprehensive income (loss) | (1,056) | 9,406 |
Accumulated deficit | (648,138) | (584,456) |
Total shareholders' equity | 145,715 | 287,191 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 2,059,787 | $ 1,893,526 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
Treasury stock, shares | 895,136 | |
Ordinary shares, par value | ₪ 0.01 | ₪ 0.01 |
Ordinary shares, shares authorized | 500,000,000 | 500,000,000 |
Ordinary shares, shares issued | 58,149,325 | 56,027,758 |
Ordinary shares, shares outstanding | 57,254,189 | 56,027,758 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 1,269,657 | $ 984,367 | $ 757,667 |
Cost of Revenues | 488,579 | 313,019 | 194,820 |
Gross profit | 781,078 | 671,348 | 562,847 |
Research and development, net | 424,937 | 320,278 | 250,791 |
Selling and marketing | 512,027 | 438,210 | 307,718 |
General and administrative | 169,648 | 111,915 | 85,922 |
Total operating expenses | 1,106,612 | 870,403 | 644,431 |
Operating loss | (325,534) | (199,055) | (81,584) |
Financial income (expenses), net | 271,943 | 47,059 | (3,621) |
Other income | 584 | 118 | 55 |
Loss before taxes on income | (53,007) | (151,878) | (85,150) |
Taxes on income | 64,202 | 14,989 | 2,598 |
Net loss | (117,209) | (166,867) | (87,748) |
Other comprehensive loss: | |||
Unrealized gains (loss) from marketable securities, net | (4,701) | 2,916 | 1,167 |
Unrealized gains (loss) on cash flow hedge, net | (5,761) | 5,133 | 1,881 |
Other comprehensive income (loss) for the year, net | (10,462) | 8,049 | 3,048 |
Total comprehensive loss | $ (127,671) | $ (158,818) | $ (84,700) |
Basic and diluted net loss per ordinary share | $ (2.06) | $ (3.07) | $ (1.74) |
Creative Subscription [Member] | |||
Revenues | $ 950,299 | $ 783,456 | $ 644,491 |
Cost of Revenues | 232,619 | 167,539 | 120,905 |
Business Solutions [Member] | |||
Revenues | 319,358 | 200,911 | 113,176 |
Cost of Revenues | $ 255,960 | $ 145,480 | $ 73,915 |
STATEMENTS OF CHANGES IN SHAREH
STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Ordinary shares [Member] | Additional paid-in capitall [Member] | Treasury Shares [Member] | Other comprehensive Income (loss) [Member] | Accumulated deficit [Member] | Total | |
Balance at Dec. 31, 2018 | $ 88 | $ 472,239 | $ 0 | $ (1,691) | $ (329,841) | $ 140,795 | |
Balance, shares at Dec. 31, 2018 | 49,269,626 | ||||||
Exercise of options, ESPP shares and vesting of RSUs | $ 6 | 29,368 | 0 | 0 | 0 | 29,374 | |
Exercise of options, ESPP shares and vesting of RSUs, shares | 2,256,293 | ||||||
Share-based compensation | $ 0 | 109,476 | 0 | 0 | 0 | 109,476 | |
Other comprehensive income (loss) | 0 | 0 | 0 | 3,048 | 0 | 3,048 | |
Net loss | 0 | 0 | 0 | 0 | (87,748) | (87,748) | |
Balance at Dec. 31, 2019 | $ 94 | 611,083 | 0 | 1,357 | (417,589) | 194,945 | |
Balance, shares at Dec. 31, 2019 | 51,525,919 | ||||||
Exercise of options, ESPP shares and vesting of RSUs | $ 13 | 36,096 | 0 | 0 | 0 | 36,109 | |
Exercise of options, ESPP shares and vesting of RSUs, shares | 4,501,124 | ||||||
Share-based compensation | $ 0 | 147,439 | 0 | 0 | 0 | 147,439 | |
Equity Component of Convertible senior notes 2025, net | 0 | 67,337 | 0 | 0 | 0 | 67,337 | |
Conversion of Convertible senior notes 2023 | [1] | 179 | 0 | 0 | 0 | 179 | |
Conversion of Convertible senior notes 2023, shares | 715 | ||||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | 8,049 | 0 | 8,049 | |
Net loss | 0 | 0 | 0 | 0 | (166,867) | (166,867) | |
Balance at Dec. 31, 2020 | $ 107 | 862,134 | 0 | (9,406) | (584,456) | 287,191 | |
Balance, shares at Dec. 31, 2020 | 56,027,758 | ||||||
Early adoption of ASU 2020-06 as of January 1, 2021 | $ 0 | (215,712) | 0 | 0 | 53,527 | (162,185) | |
Exercise of options, ESPP shares and vesting of RSUs | $ 5 | 47,446 | 0 | 0 | 0 | 47,451 | |
Exercise of options, ESPP shares and vesting of RSUs, shares | 1,560,797 | ||||||
Share-based compensation | $ 0 | 221,980 | 0 | 0 | 0 | 221,980 | |
Treasury Shares | $ (3) | 0 | (199,997) | 0 | 0 | (200,000) | |
Treasury Shares, shares | (895,136) | ||||||
Conversion of Convertible senior notes 2023 | $ 2 | 78,947 | 0 | 0 | 0 | 78,949 | |
Conversion of Convertible senior notes 2023, shares | 560,770 | ||||||
Other comprehensive income (loss) | $ 0 | 0 | 0 | (10,462) | 0 | (10,462) | |
Net loss | 0 | 0 | 0 | 0 | (117,209) | (117,209) | |
Balance at Dec. 31, 2021 | $ 111 | $ 994,795 | $ (199,997) | $ (1,056) | $ (648,138) | $ 145,715 | |
Balance, shares at Dec. 31, 2021 | 57,254,189 | ||||||
[1] | represent amount lower than $1. |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Cash flows from operating activities: | |||
Net loss | $ (117,209) | $ (166,867) | $ (87,748) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation | 13,929 | 14,610 | 12,126 |
Amortization of Intangible Assets | 4,952 | 2,577 | 4,588 |
Share based compensation expenses | 221,391 | 147,313 | 109,337 |
Amortization of debt discount and debt issuance costs | 5,298 | 29,954 | 20,938 |
Changes in accrued interest and exchange rate on short-term and long-term deposits | (20) | (43) | 748 |
Amortization of premium,discount and accrued interest on marketable securities, net | 7,843 | 4,471 | (346) |
Remeasurement gain on Marketable equity | (166,323) | 0 | 0 |
Deferred taxes, net | 54,454 | 12,089 | 935 |
Changes in operating lease right-of-use assets | 28,441 | 17,867 | 18,225 |
Changes in operating lease liabilities | (26,688) | (15,807) | (15,376) |
Increase in trade receivables | (6,250) | (6,457) | (3,459) |
Increase in prepaid expenses and other current and long-term assets | (98,468) | (89,386) | (5,168) |
Increase (decrease) in trade payables | 26,595 | 41,967 | (7,560) |
Increase in employees and payroll accruals | 19,391 | 25,326 | 7,781 |
Increase in short-term and long-term deferred revenues | 82,361 | 117,664 | 74,818 |
Increase in accrued expenses and other current and long-term liabilities | 15,988 | 12,771 | 19,725 |
Net cash provided by operating activities | 65,685 | 148,049 | 149,564 |
Cash flows from investing activities: | |||
Proceeds from short-term and restricted deposits | 732,015 | 294,225 | 348,775 |
Investment in short-term and restricted deposits | (572,631) | (577,000) | (296,100) |
Investment in marketable securities | (29,377) | (763,581) | (402,774) |
Proceeds from marketable securities | 312,201 | 277,335 | 132,905 |
Purchase of property and equipment and payment of prepaid expenses | (35,770) | (18,403) | (21,427) |
Capitalization of internal use of software | (1,930) | (450) | (639) |
Payments for businesses acquired, net of acquired cash | (42,729) | (6,626) | 0 |
Proceed from equity securities | 18,771 | 0 | 0 |
Purchases of investments in privately held companies | (3,681) | (1,185) | (3,862) |
Proceeds from realization of investments in privately held company | 0 | 1,098 | 0 |
Investment in other long-term assets | 0 | (5,643) | (891) |
Net cash provided by (used in) investing activities | 376,869 | (800,230) | (244,013) |
Cash flows from financing activities: | |||
Proceeds from issuance of convertible senior notes | 0 | 575,000 | 0 |
Payments of debt issuance costs | 0 | (15,713) | 0 |
Purchase of capped call | 0 | (46,000) | 0 |
Purchase of treasury shares | (200,000) | 0 | 0 |
Proceeds from exercise of options and ESPP shares | 39,943 | 39,649 | 31,495 |
Net cash provided by (used in) financing activities | (160,057) | 552,936 | 31,495 |
Increase (decrease) in cash and cash equivalents | 282,497 | (99,245) | (62,954) |
Cash and cash equivalents at the beginning of the year | 168,858 | 268,103 | 331,057 |
Cash and cash equivalents at the end of the year | 451,355 | 168,858 | 268,103 |
Supplemental disclosure of cash flow activities: | |||
Cash paid during the year for taxes | 6,523 | 5,810 | 3,109 |
Interest received during the year | 20,154 | 18,647 | 18,996 |
Supplemental information for non- cash transactions | |||
Right-of-use asset recognized with corresponding lease liability | 41,130 | 29,137 | 46,121 |
Non-cash purchase of property and equipment | 9,324 | 1,007 | 1,232 |
Conversion of convertible notes | $ 78,949 | $ 179 | $ 0 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
GENERAL | NOTE 1:- GENERAL Wix.com Ltd., an Israeli corporation (was incorporated in October, 2006), and its subsidiaries (collectively, the “Company” or “Wix”), was founded on the belief that the Internet should be accessible to everyone to develop, create and contribute. Wix is a leading, global, web development platform for millions of creators, delivering its solutions through a Software-as-a-Service (SaaS) model. Since its founding, Wix has developed and launched multiple innovative products, services, and business solutions that empower any business, organization or brand worldwide to create, manage and grow a fully integrated and dynamic digital presence. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2021 | |
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 accounting estimates that require management’s subjective judgments include, but are not limited to, revenue recognition, income taxes, share-based compensation and purchase price allocation on acquisitions including determination of useful lives, Incremental Borrowing Rate (“IBR”), convertible notes borrowing rate and contingent consideration. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates. The novel coronavirus (“COVID-19”) pandemic has created, and may continue to create, significant uncertainty in macroeconomic conditions. The Company considered the impact of COVID-19 on the estimates and assumptions and determined that there were no material adverse impacts on the consolidated financial statements for the period ended December 31, 2021. As events continue to evolve and additional information becomes available, the Company’s estimates and assumptions may change materially in future periods. 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. Foreign currency translation and transactions: A substantial portion of the Company's financing activities, including equity transactions, cash investments, costs and revenues are generated 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 and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances that are denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with principles set forth in Accounting Standard Codification ("ASC") Topic 830, Foreign Currency Matters 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 from the date of purchase and of up to one year. As of December 31, 2021 and 2020, the Company's bank deposits were mainly denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 0.77% and 1.21%, 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 and for the Company's credit cards. As of December 31, 2021 and 2020, the Company's bank deposits were in U.S. dollars and bore interest at weighted average interest rates of 0.63% and 0.038%, respectively. Restricted deposits are presented at their cost, including accrued interest. g. Marketable securities: Marketable securities consist of investments in debt securities and in equity securities with readily determinable fair values. The Company accounts for investments in marketable debt securities in accordance with ASC Topic 320, Investments - Debt Securities Prior to January 1, 2020, the Company recognized an impairment charge when a decline in the fair value of its investments below the cost basis was judged to be other-than-temporary (“OTTI”). Factors considered in making such a determination included 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. The Company concluded that unrealized losses on its available-for-sale debt securities for the year ended December 2019 were not OTTI. In 2020, the Company adopted ASU 2016-13, Topic 326 Financial Instruments – Credit Losses The Company classifies its marketable debt securities as either short-term or long-term based on each instruments’ underlying contractual maturity date as well as the intended time of realization. Marketable debt securities with maturities of 12 months or less are classified as short-term, and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities 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) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset The carrying amounts of property and equipment are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment i. Business combinations: The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill. Upon the end of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever occurs earlier, any subsequent adjustments would be recorded in the statement of comprehensive loss. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition. j. 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 the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Under ASC Topic 350, Intangibles - Goodwill and Other Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets: Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years Distribution agreement 1.5 years Amortization is recorded into cost of revenues or operating expenses, depending on the nature of the asset. 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 estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or assets group to their net carrying amount. If the estimated undiscounted future cash flows associated with the asset or assets group are less than the carrying amount, an impairment loss will be recorded based on the estimated fair value. There were no material impairment charges during any of the periods presented. k. Investments in privately held companies: The Company holds equity investments in private companies without readily determinable market values in which it does not have control or significant influence. The Company accounts for these equity investments using the measurement alternative, which is cost, less any impairment, adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. The investments are reviewed periodically to determine if their respective values have appreciated or have been impaired, and adjustments are recorded as necessary. These investments are presented in the Company’s consolidated balance sheets as part of prepaid expenses and other long-term assets. The carrying amount the Company’s equity investments in privately held companies without readily determinable market values as of December 31, 2021 and 2020, was $11,477 and $72,646, respectively. During the year ended December 31, 2021, a privately held company completed its initial public offering and began trading on Nasdaq. As such, effective June 2021, the Company's investment in this company no longer qualifies for the use of the measurement alternative, as the fair value of the investment became readily determinable. As a result, the investment was classified as marketable securities. At the date of transfer the carrying amount of the investment was $96,222. During the years ended December 31, 2021 and 2020, the Company recorded in financial income (expense), net unrealized gains of $2,833 and $67,822, respectively, related to revaluation of its equity investments in privately held companies based on observable price changes. As of December 31, 2021, cumulative unrealized gains related to investments in privately held companies without readily determinable market values, excluding unrealized gains related to the investment transferred to marketable securities, was $3,946. l. Derivatives instruments: The Company enters into foreign currency contracts, primarily forward and option contracts, with financial institutions to protect against foreign exchange risks. In accordance with ASC Topic 815, Derivative and Hedging Derivative instruments designated as hedging instruments: The Company has instituted a foreign currency cash flow hedging program, to hedge the risk of overall changes in cash flows resulting from foreign currency salary payments, rent and other overheads. The Company hedges portions of its forecasted salary, rent and other overhead cash flow denominated in NIS, using options and forward contracts that are designated as cash flow hedges, as defined by ASC 815. For these derivative instruments, gains and losses are reported as a component of other comprehensive income and subsequently recognized in earnings with the corresponding hedged item. The net fair value of derivative instruments designated as hedging instruments as of December 31, 2021 and 2020, totaled $394 and $6,841, respectively, and is presented as prepaid expenses and other current assets. As of December 31, 2021 and 2020, the gross amount recorded in accumulated other comprehensive income from the Company's currency options transactions was $296 and $6,841, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $156,806. The foreign exchange forward and options contracts will expire throughout 2022. Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Brazilian Real, Japanese Yen and Israeli Shekel. Gains and losses related to such derivative instruments are recorded in financial income (expenses), net. The net fair value of derivative instruments not designated as hedging instruments as of December 31, 2021 and 2020, totaled $476 and $(1,719), respectively, and is presented as prepaid expenses and other current assets and accrued expenses and other current liabilities. In the years ended December 31, 2021, 2020 and 2019, the Company recorded financial income (expenses), net, from economically hedge, in the amount of $6,408, $(5,529) and $963, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $259,903. The foreign exchange forward and option transactions will expire through 2022. m. 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, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. 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, 2021, 2020 and 2019, amounted to $22,413, $15,737 and $12,042, respectively. n. 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 $19.5 per year (for certain employees over 50 years of age the maximum contribution is $26 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, 2021, 2020 and 2019, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $2,271, $1,117 and $727, respectively. o. Convertible Senior Notes: Prior to January 1, 2021, the Company accounted for the issuance of Convertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options As of January 1, 2021, when the Company early adopted ASU 2020-06, the Company accounts for the Convertible Notes at amortized cost, as a single unit of account on the balance sheet. The carrying value of the liability is represented by the face amount of the Convertible Notes, less debt offering costs, adjusted for any amortization of offering costs. Offering costs are being amortized to interest expense over the term of the Convertible Notes, using the effective interest rate method. See Note 2.ae for details on the early adoption of ASU 2020-06 as of January 1, 2021. p. Revenue recognition: The Company’s total revenues are comprised of revenues from Creative Subscriptions and revenues from Business Solutions. Creative Subscriptions revenues are generated from the sale of monthly, yearly and multi-year premium subscriptions for its website solutions as well as from the sale of domain registrations. Business Solutions revenues are generated from the sale of additional products and services that are offered to all of the Company’s registered users, in addition to the creative subscriptions. These products and services include, among others, Google Workspace (formerly known as G-Suite), Wix Payments, Ascend by Wix and other applications, both sold through the Company’s App Market or elsewhere on its platform. In accordance with ASC Topic 606, Revenues from Contracts with Customers The Company recognizes revenue by applying the following 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. Arrangements with the Company’s customers do not provide the customers with the right to take possession of the software supporting the Company’s platform at any time and are therefore accounted for as service contracts. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The Company applies the practical expedient in ASC 606 and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Payments received in advance of the Company’s performance are recorded as deferred revenues, which represent a contract liability. The Company's arrangements with its customers may include multiple performance obligations. When contracts involve multiple performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under ASC 606. Each of the Company’s products and services is sold separately, therefore standalone selling prices (SSP) for each of them is observed, and allocation of the transaction price between the performance obligations in the contract is made relatively on that basis. Creative Subscriptions Revenues from premium subscriptions are recognized on a straight-line basis over the contract period. The Company offers a 14-day money back guaranty ("Guaranty Period") on new premium subscription. 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 related to the purchase and registration of domain names are recognized at a point in time upon the purchase and registration of the domain name, since that is when the Company transfers control and satisfies the performance obligation. Business Solutions Revenues related to subscriptions and software applications developed by the Company, including Ascend by Wix, are primarily recognized on a straight-line basis over the contract period. Revenues related to Wix Payments earned from processing payments are recognized at the time of the transaction, and fees are determined based in part on a percentage of the Gross Payment Volume (“GPV”) processed plus a per transaction fee, where applicable. Revenues related to Google Workspace subscriptions, which are sold on a monthly or yearly basis, are recognized on a ratable basis over the subscription period. See Note 2.af with regard to a correction of immaterial prior-period errors related to Google Workspace. Revenues related to third-party software applications and solutions are generally recognized on a net basis at a point in time upon purchase of the application, since that is when the Company completes its obligation to facilitate the transfer between the customer and the third party. Principal versus Agent Considerations The Company follows the guidance provided in ASC 606 for determining whether the Company is a principal or an agent in arrangements with customers that involve another party that contributes to providing a specified service to a customer. The Company determines whether the nature of its promise is a performance obligation to provide the specified goods or services itself (principal) or to arrange for those goods or services to be provided by the other party (agent). This determination is reviewed for each specified product or service promised to the customer and may involve significant judgment. The Company sells its products and services directly to customers and also through a network of resellers. In certain cases, the Company acts as a reseller of products and services provided by others. Certain revenues earned from domain names, third-party offerings, including Google Workspace, and Wix Payments, are recorded on a gross basis, as the Company has determined that it controls the promised product or service before it is transferred to the end customers, is primarily responsible for the fulfillment, and has discretion in establishing prices. Revenues related to third-party software applications and solutions are recognized on a net basis when the Company does not control the product or service before transferring to the customers. Remaining performance obligation The Company’s remaining performance obligations represent revenue that has not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $611,217. As of December 31, 2021, the Company expects to recognize 79% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. q. Costs to obtain contracts: The Company capitalizes certain sales commissions as costs of obtaining a contract when they are incremental and if they are expected to be recovered. These costs are subsequently amortized consistently with the pattern of revenue recognition from contracts for which the commissions relate, over an estimated period of benefit. Deferred commission costs capitalized are periodically reviewed for impairment. There were no impairment losses recorded during the periods presented. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these costs as incurred. Amortization expense of these costs are included in selling and marketing expenses. As of December 31, 2021 and 2020, the amount of deferred commissions was $3,187 and $1,072, respectively and is included in prepaid expenses and other current assets on the consolidated balance sheets. During the years ended December 31, 2021 and 2020, the Company recorded amortization expenses in connection with deferred commissions in the amount of $110 and $2, respectively. r. Cost of revenues: Cost of creative subscriptions revenues consists primarily of the allocation of costs associated with the provision of website creation and services, and related customer care and call center costs along with domain name registration costs. Cost of creative subscriptions revenues also consists of personnel and the related overhead costs, including share-based compensation. Cost of business solutions revenue consists primarily of the allocation of bandwidth, hosting and support costs, and certain revenue share payments according to the Company’s agreements with third-party providers. It also includes costs related to payment processing, such as credit card interchange, network fees (charged by credit card providers), and third-party processing fees. s. Research and development costs: Research and development costs are generally expensed as incurred. Research and development expenses primarily consist of personnel and related expenses, including share-based compensation and allocated overhead costs. t. Internal use software costs: The Company capitalized certain costs related to the online platform for internal use incurred during the application development stage. The Company also capitalizes costs related to upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use. Maintenance costs are expensed as incurred. Capitalized software development are included in property and equipment, net in the consolidated balance sheets, and are amortized over the estimated useful life of the software, on a straight-line basis. During 2021, 2020 and 2019, the Company capitalized $2,519, $575 and $778, respectively. u. Selling and marketing: Selling and marketing expenses consist primarily of cost-per click expenses, social networking expenses, marketing campaigns and display advertisements, and are charged to the statement of comprehensive loss, as incurred. Selling and marketing expenses for the years ended December 31, 2021, 2020 and 2019 amounted to $284,540, $282,804 and $187,318, respectively. v. Share-based compensation: The Company has granted restricted stock units (“RSUs”) and stock options vesting solely upon continued service, as well as performance-based awards, including performance stock units (“PSUs”), with vesting based on achievement of specified performance targets. In addition, the Company grants stock options under its Employee Stock Purchase Plan (“ESPP”), available solely to active employees. The Company accounts for share-based compensation in accordance with ASC 718, Compensation - Stock Compensation ("ASC 718"). Compensation cost for share-based awards is measured at the fair value on the grant date and recognized as expense using the straight-line method for service-based awards, and the accelerated method for performance-based awards, over the requisite service period. The Company estimates forfeitures at the grant date based on past experience, and revises its estimate if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company regularly estimates when and if performance-based awards will be earned and record expense over the estimated service period only for awards considered probable of being earned. Any previously recognized expense is reversed in the period in which an award is determined to no longer be probable of being earned. The Company selected the Black-Scholes-Merton option-pricing model as the most appropriate model for determining the fair value for its share options awards and ESPP, whereas the fair value of RSUs and PSUs is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires the Company to make several assumptions, including the Company’s share price, expected volatility, expected term, risk-free interest rate, and expected dividends. Expected volatility was calculated based upon actual historical share 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 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. w. Income taxes: The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes Deferred tax assets and liabilities are classified as long-term assets and liabilities in the consolidated balance sheets. The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. 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 unrecognized tax benefits in tax expense. x. Legal contingencies: 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. y. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number 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. Basic and diluted net loss per ordinary share 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, 2021, 2020 and 2019, all outstanding options, RSUs, performance-based awards and Convertible Senior Notes have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. z. Treasury shares: The Company repurchased its ordinary shares and holds them as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. aa. 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, marketable debt securities, and trade receivables. The majority of the Company's and its subsidiaries' cash and cash equivalents, short-term and restricted deposits, are invested in major banks 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. The Company’s marketable debt securities consist of investments in government, corporate and government sponsored enterprises debentures. The Company’s investment policy minimizes credit risk by setting limits for minimum credit rating and maximum concentration per issuer, thereby reducing credit risk concentrations. The Company’s trade receivables are geographically dispersed and derived from sales in North America, Europe, Latin America and Asia. Concentration of credit risk with respect to trade receivables is limited by ongoing creditworthiness evaluation and account monitoring procedures. ab. Fair value of financial instruments: The Company applies ASC Topic 820, Fair Value Measurement Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. ac. Government grants: Grants from the Investment and Development Authority for Economic and Industrial Development (the "Investment Authority") for participation in salary expenses for employees in national priority areas, from the Israel Innovation Authority (the "IIA"), for participation in research and development activities, and grants from the European Innovation Council (EIC), are recognized as a deduction from research and development expenses, net, at the time the Company is entitled to such grants on the basis of the related cost incurred. The Company will not be obligated to pay royalties to the Investment Authority and the IIA. The Company recorded grants from the Investment Authority in the amounts of $509, $957 and $852 for the years ended December 31, 2021, 20 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 3:- FAIR VALUE MEASUREMENTS The carrying values of cash and cash equivalents, short-term and restricted deposits, trade receivables, 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. In accordance with ASC 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. The following tables represent the fair value hierarchy of the Company's financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2021 and 2020: December 31, 2021 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 189,437 $ - $ - $ 189,437 Marketable securities 312,934 530,922 - 843,856 Foreign currency derivatives presented as contracts assets - 3,546 - 3,546 Financial liabilities: Foreign currency derivatives presented as contracts liabilities - (2,677 ) - (2,677 ) $ 502,371 $ 531,791 $ - $ 1,034,162 December 31, 2020 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 20,656 $ - $ - $ 20,656 Marketable securities - 826,804 - 826,804 Foreign currency derivatives presented as contracts assets - 7,083 - 7,083 Financial liabilities: Foreign currency derivatives presented as contracts liabilities - (1,961 ) - (1,961 ) $ 20,656 $ 831,926 $ - $ 852,582 As of December 31, 2021, the total estimated fair value of the Convertible Notes was $974,074 (2023 Convertible Notes were $456,068 and 2025 Convertible Notes were $518,006). The fair value of the Convertible Notes is considered to be Level 2 within the fair value hierarchy and was determined based on quoted prices of the Convertible Notes in an over-the-counter market. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
MARKETABLE SECURITIES | NOTE 4:- MARKETABLE SECURITIES As of December 31, 2021 and 2020, the Company held marketable debt securities classified as available-for-sale securities as follows: December 31, 2021 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value LESS THAN A YEAR Government and corporate debentures - fixed interest rate $ 196,408 $ 583 $ (49 ) $ 196,942 $ 244,434 $ 526 $ (48 ) $ 244,912 Government-sponsored enterprises 2,501 1 - 2,502 10,006 32 - 10,038 Government and corporate debentures - floating interest rate 10,008 10 - 10,018 34,967 10 - 34,977 $ 208,917 $ 594 $ (49 ) $ 209,462 $ 289,407 $ 568 $ (48 ) $ 289,927 December 31, 2021 2020 MORE THAN 1 YEAR THROUGH FIVE YEARS Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Government and corporate debentures - fixed interest rate $ 303,429 $ 239 $ (1,636 ) $ 302,032 $ 494,520 $ 3,821 $ (143 ) $ 498,198 Government-sponsored enterprises 16,460 - (79 ) 16,381 21,264 67 - 21,331 Government and corporate debentures - floating interest rate 3,049 1 (3 ) 3,047 17,331 24 (7 ) 17,348 $ 322,938 $ 240 $ (1,718 ) $ 321,460 $ 533,115 $ 3,912 $ (150 ) $ 536,877 The gross unrealized losses on the Company's marketable debt securities were not material as of December 31, 2021 and 2020. As of December 31, 2021, and 2020, interest receivable amounted to $2,635 and $4,376, respectively, and is included within marketable securities in the consolidated balance sheets. Effective June 2021, an equity investment in a privately held company no longer qualifies for the use of the measurement alternative, as the fair value of the investment became readily determinable. The investment was therefore transferred from measurement alternative to equity securities with readily determinable fair value. For more details see Note 2.k. As of December 31, 2021, marketable equity securities with readily determinable fair values, carried at fair value, amounted to $312,934. Unrealized gains recognized during the year ended December 31, 2021 were $249,561. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Government authorities $ 4,634 $ 7,381 Hedging transaction asset 3,546 7,083 Prepaid expenses 16,678 13,984 Other current assets 8,019 12,218 $ 32,877 $ 40,666 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 2020 Cost: Leasehold improvements $ 53,011 $ 41,101 Computers, peripheral equipment and electronic equipment 35,204 27,449 Internal use software 4,983 2,467 Office furniture and equipment 7,010 6,464 Vehicles 254 130 100,462 77,611 Less - accumulated depreciation 50,025 41,748 Depreciated cost $ 50,437 $ 35,863 Depreciation expense related to property and equipment, net was included in the following line items in the consolidated statements of comprehensive loss: Year ended December 31, 2021 2020 2019 Cost of revenues $ 3,186 $ 2,654 $ 1,946 Research and development, net 6,427 7,703 6,401 Selling and marketing 2,939 2,993 2,244 General and administrative 1,377 1,260 1,535 $ 13,929 $ 14,610 $ 12,126 During 2021 and 2020, the Company recorded a reduction of $5,652 and $5,923 to the cost and accumulated depreciation of fully depreciated equipment no longer in use, following an assessment made by the Company. |
BUSINESS COMBINATION
BUSINESS COMBINATION | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 7:- BUSINESS COMBINATION During the year ended December 31, 2021, the Company acquired 100% of the capital shares of three privately held companies for aggregate purchase consideration of $46,629 (subject to working capital adjustments), out of which an amount of $1,047 relates to a previous investment in one of the acquired companies through a convertible loan agreement (CLA). In addition to the purchase consideration, the Company entered into cash and equity compensation arrangements with certain founders and employees, which aggregately amounted to $19,167 and are subject to certain performance and employment conditions following the respective closing dates. The following table summarizes the fair values of the aggregate assets acquired and liabilities assumed: (in thousands) Cash $ 2,853 Trade receivables 378 Prepaid expenses and other current assets 124 Intangible assets 25,918 Goodwill 25,065 Total Assets $ 54,338 Current liabilities 3,698 Deferred tax liability 4,011 Total Liabilities $ 7,709 Cash consideration paid 45,582 Fair value of previous investment 1,047 Total purchase consideration $ 46,629 The identified intangible assets acquired, which were valued using income-based approaches, primarily consist of developed technology, customer relations, and non-competition agreements, and have a total weighted-average useful life of 6.7 years. Goodwill generated from the above business combinations is attributed to synergies between the Company's and the acquired businesses’ products and services, and is not deductible for income tax purposes. Transaction costs incurred by the Company in connection with the acquisitions for the year ended December 31, 2021 were approximately $602 and included in operating expenses. |
INTANGIBLE ASSETS, NET
INTANGIBLE ASSETS, NET | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLE ASSETS, NET | NOTE 8:- INTANGIBLE ASSETS, NET December 31, 2021 2020 Cost: Technology $ 28,795 $ 9,614 Customer relations 17,663 11,054 Non-Competition agreement 128 - Customer data 12,043 12,043 Domain 552 552 Distribution agreement 291 291 59,472 33,554 Less - accumulated amortization 19,225 14,273 Intangible assets, net $ 40,247 $ 19,281 Estimated amortization expense for the years ended: 2022 $ 6,259 2023 5,963 2024 5,877 2025 4,829 Thereafter 17,319 $ 40,247 Amortization expense related to intangible assets, net was included in the following line items in the consolidated statements of comprehensive loss: Year ended December 31, 2021 2020 2019 Cost of revenues $ 2,030 $ 316 $ 1,951 Selling and marketing 2,918 2,257 2,629 General and administrative 4 4 8 $ 4,952 $ 2,577 $ 4,588 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Current [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 9:- ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2021 2020 Accrued expenses $ 32,812 $ 18,989 Government authorities 26,911 26,008 Hedging transaction liability 2,677 1,961 Uncertain tax positions 416 1,811 $ 62,816 $ 48,769 |
CONVERTIBLE NOTES
CONVERTIBLE NOTES | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
CONVERTIBLE NOTES | NOTE 10:- CONVERTIBLE NOTES 2025 Convertible notes In August 2020, The Company issued $575,000 aggregate principal amount, 0% coupon rate, of Convertible Senior Notes due 2025 (the “2025 Convertible Notes”). The 2025 Convertible Notes mature on August 15, 2025 unless earlier repurchased or converted. Upon conversion, the Company will pay or deliver, as the case may be, cash, ordinary shares or a combination of cash and ordinary shares, at the Company’s election. The 2025 Convertible Notes are convertible at an initial conversion rate of 2.4813 Ordinary Shares per $1,000 principal amount of 2025 Convertible Notes (equivalent to an initial conversion price of approximately $403.01 per Ordinary Share). The conversion rate is subject to adjustment under certain circumstances in accordance with the terms of the 2025 Indenture. In addition, following certain corporate events that occur prior to the maturity date, or following Company’s delivery of a notice of tax redemption, the Company 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. Conversion terms: Holders may convert their Convertible Notes at their option at any time prior to the close of business on the business day immediately preceding February 15, 2025 only under the following circumstances: a. During any calendar quarter commencing after December 31, 2020 (and only during such calendar quarter), if the last reported sale price of Company’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. b. 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 Convertible 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. c. If the Company calls the Convertible 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 d. Upon the occurrence of specified corporate events. On or after February 15, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their Convertible Notes at any time, regardless of the foregoing circumstances. During the year ended December 31, 2021, the conditions allowing holders of the 2025 Convertible Notes to convert were not met. The Notes are therefore not convertible as of December 31, 2021 and are classified as long-term liability. Holders of the 2025 Convertible Notes who convert their Notes in connection with certain corporate events that constitute a make-whole fundamental change (as defined in the 2025 Indenture) are, under certain circumstances, entitled to an increase in the conversion rate. Additionally, in the event of a corporate event that constitutes a fundamental change (as defined in the 2025 Indenture), holders of the 2025 Convertible Notes may require the Company to repurchase all or a portion of their Notes at a price equal to 100% of the principal amount of the 2025 Convertible Notes being repurchased, plus any accrued and unpaid interest. The Company may not redeem the Convertible Notes prior to August 21, 2023, except in the event of certain tax law changes. The Company may redeem for cash all or any portion of the 2025 Convertible Notes, at its option, on or after August 21, 2023, if the last reported sale price of its ordinary shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which the Company provides notice of the redemption at a redemption price equal to 100% of the principal amount of the 2025 Convertible Notes to be redeemed, plus accrued and unpaid special interest if any, to, but excluding, the redemption date. Upon the occurrence of a fundamental change (as defined in the Indenture), holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased, plus accrued and unpaid special interest, if any, to, but excluding, the fundamental change repurchase date. As of January 1, 2021, the Company accounts for the 2025 Convertible Notes as a single unit of account (liability) on the balance sheet. See Note 2.ae for details on the early adoption of ASU 2020-06 as of January 1, 2021. The carrying amount of the liability is represented by the face amount of the notes, less total offering costs, plus any amortization of offering costs. The total offering costs upon issuance of the notes were $15,712 and are amortized to interest expense using the effective interest rate method over the contractual term of the notes. Interest expense is recognized at an annual effective interest rate of 0.56% over the contractual term of the notes. The net carrying amount of the 2025 Convertible Notes were as follows: December 31, 2021 2020 Principal outstanding $ 575,000 $ 575,000 Unamortized debt discount (1) - (109,655 ) Unamortized debt issuance costs (1) (11,565 ) (11,766 ) Net carrying amount $ 563,435 $ 453,579 The Company recognized interest expense on the 2025 Convertible Notes as follows: Year ended December 31, 2021 2020 Amortization of debt discount and issuance costs (1) $ 3,114 $ 7,629 (1) Prior to the early adoption of ASU 2020-06 on January 1, 2021, the Company accounted for its notes as separate liability and equity components. The comparative figures represent the debt discount and issuance costs related to the liability component prior to the early adoption. The annual effective interest rate was 5.21%. 2025 Capped Call Transactions In connection with the pricing of the 2025 Convertible Notes, the Company entered into capped call transactions (the “Capped Call Transactions”) with certain of the purchasers of the Convertible Notes. The 2025 Capped Calls are purchased call options that give the Company the option to purchase, subject to anti-dilution adjustments substantially identical to those in the 2025 Convertible Notes. The 2025 Capped Calls will expire in 2025, if not exercised earlier. The 2025 Capped Calls are intended to offset potential dilution to the Company’s ordinary shares and/or offset the potential cash payments that the Company could be required to make in excess of the principal amount upon any conversion of the 2025 Notes under certain circumstances described in the Capped Call Transactions. The 2025 Capped Calls are separate transactions and are not part of the terms of the Convertible 2025 Notes. As the Capped Call Transactions are considered indexed to the Company's share and are considered equity classified, they are recorded in shareholders’ equity on the consolidated balance sheets. The Company paid an aggregate amount of $46,000 for the 2025 Capped Calls. The amount paid for the 2025 Capped Calls was recorded as a reduction to Additional paid-in capital in the consolidated balance sheets. 2023 Convertible notes In June and July of 2018, The Company issued $442,750 aggregate principal amount, 0% coupon rate, of Convertible Senior Notes due 2023 (the “ 2023 Convertible Notes”). The 2023 Convertible Notes mature on July 1, 2023, unless earlier repurchased or converted. Subject to satisfaction of certain conditions and during certain periods, as defined in the indenture governing the Convertible Notes, the holders will have the option to exchange the notes into cash or the Company ordinary shares, if any (subject to the Company right to pay cash in lieu of all or a portion of such shares). The conversion rate was initially 7.0113 Ordinary Shares per $1,000 principal amount of notes (equivalent to an initial conversion price of approximately $142.63 per Ordinary Share). The conversion rate is 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 the Company’s delivery of a notice of tax redemption, the Company will, in certain circumstances, increase the conversion rate for a holder who elects to convert his or her Convertible Notes in connection with such a corporate event or notice of tax redemption, as the case may be. 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: a. During any calendar quarter commencing after September 30, 2018 (and only during such calendar quarter), if the last reported sale price of the Company’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. b. 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. c. If the Company 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 d. 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, the Company will pay or deliver, as the case may be, cash, Ordinary Shares or a combination of cash and Ordinary Shares, at the Company’s election. For at least 20 trading days during the period of 30 consecutive trading days ended June 30, 2020, the last reported sale price of the Company’s ordinary share was equal to or exceeded 130% of the conversion price of the 2023 Notes on each applicable trading day. As a result, the 2023 Convertible Notes first became eligible for optional conversion as of the third quarter of 2020 through the end of 2021. During the first quarter of 2021, the 2023 Convertible Notes were partially converted into 560,770 ordinary shares of the Company. During 2020, the 2023 Convertible Notes were partially converted into 715 ordinary shares. As of January 1, 2021, the Company accounts for the 2023 Convertible Notes as a single unit of account (liability) on the balance sheet. See Note 2.ae for details on the early adoption of ASU 2020-06 as of January 1, 2021. The carrying amount of the liability is represented by the face amount of the notes, less total offering costs, plus any amortization of offering costs. The total offering costs upon issuance of the notes were $12,601 and are amortized to interest expense using the effective interest rate method over the contractual term of the notes. Interest expense is recognized at an annual effective interest rate of 0.58% over the contractual term of the notes. The net carrying amount of the 2023 Convertible Notes were as follows: December 31, 2021 2020 Principal outstanding $ 442,750 $ 442,750 Unamortized debt discount (1) - (57,435 ) Unamortized debt issuance costs (1) (3,128 ) (4,275 ) Converted to shares (80,083 ) (179 ) Net carrying amount $ 359,539 $ 380,861 The Company recognized interest expense on the 2023 Convertible Notes as follows: Year ended December 31, 2021 2020 2019 Amortization of debt discount and issuance costs (1) $ 2,184 $ 22,325 $ 20,938 (1) Prior to the early adoption of ASU 2020-06 on January 1, 2021, the Company accounted for its notes as separate liability and equity components. The comparative figures represent the debt discount and issuance costs related to the liability component prior to the early adoption. The annual effective interest rate was 6.20%. 2023 Capped Call Transactions In connection with the pricing of the 2023 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Call Transactions”) with certain of the purchasers of the 2023 Convertible Notes. The 2023 Capped Call Transactions cover, collectively, the number of company ordinary shares underlying the 2023 Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the 2023 Convertible Notes. The cost of the 2023 Capped Call Transactions was $45,338. 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 the Company is required to make in excess of the principal amount upon conversion of the Convertible Notes under certain events described in the Capped Call Transactions. As the Capped Call Transactions are considered indexed to the Company's share and are considered equity classified, they are recorded in shareholders’ equity on the consolidated balance sheet and are not accounted for as derivatives. The cost of the Capped Call Transactions was recorded as a reduction to additional paid-in capital. |
LEASE
LEASE | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
LEASE | NOTE 11:- LEASES The Company`s leases include offices for its facilities worldwide, as well as car leases, which are all classified as operating leases. Certain leases include renewal options that are under the Company`s sole discretion. The renewal options were included in the ROU assets and liabilities calculations if it was reasonably certain that the Company will exercise the option. December 31, 2021 2020 Lease cost: Fixed cost and variable payments $ 27,124 $ 21,104 Short-term lease cost 1,619 1,854 Total operating lease cost $ 28,743 $ 22,958 December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (26,688 ) $ (19,061 ) Weighted average remaining operating lease term 6.12 6.57 Weighted average discount rate operating lease 2.4 % 4.1 % The following table outlines maturities of the Company’s lease liabilities as of December 31, 2021: Fiscal Years Ending December 31, Operating Leases 2022 $ 29,202 2023 22,418 2024 16,321 2025 14,954 2026 12,929 After 2026 41,646 Total undiscounted lease payments $ 137,470 Less: Imputed interest 26,505 Present value of lease liabilities $ 110,965 The Company sublease one of its partial real estate offices. Lease income relating to lease payments of operating leases was $70 and $506 for the years ended December 31, 2021 and 2020, respectively. As of December 31, 2021, the Company has a lease commitment of approximately $506,000 for a new offices in Israel, which has not yet commenced. The lease commitment for the first part of the contract is expected to commence during 2022, and during 2023 for the second part of the contract. The initial term of the lease agreement is 10 years commencing on the transfer of possession, and with an option to extend the lease for additional periods of up to 15 years, subject to the conditions of the lease agreement. |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 12:- COMMITMENTS AND CONTINGENT LIABILITIES a. Pledges: The Company has pledged bank deposits in the amount of $700, in connection with an office lease agreement. b. Legal contingencies: As of December 31, 2021, the Company is not involved in any claims or legal proceedings which require accrual of liability for the estimated loss. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 13:- SHAREHOLDERS' EQUITY a. 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. b. Treasury shares: During the year ended December 31, 2021, the Company repurchased 895,136 outstanding ordinary shares for $200,000, through its share repurchase program authorized by the Board of Directors in May 2021. 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 and PSUs. Under the Plans, as of December 31, 2021, an aggregate of 2,907,140 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, PSUs and employee share purchase rights issued pursuant to the Company's ESPP and recognized for the years ended December 31, 2021, 2020 and 2019 was comprised as follows: Year ended December 31, 2021 2020 2019 Cost of revenues $ 15,462 $ 9,127 $ 5,854 Research and development 70,020 76,883 56,161 Selling and marketing 33,853 22,845 18,458 General and administrative 102,056 38,458 28,864 Total share-based compensation expense $ 221,391 $ 147,313 $ 109,337 Total unrecognized compensation cost amounted to $490,017 as of December 31, 2021, and is expected to be recognized over a weighted average period of approximately 2.92 years. d. Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2021 is as follows: Number of options Weighted average exercise price Weighted Average remaining contractual term (in years) Aggregate intrinsic value Balance at December 31, 2020 4,618,380 $ 74.31 6.74 $ 812,500 Granted 712,485 250.71 Exercised (531,788 ) 62.87 Forfeited (81,877 ) 107.62 Balance at December 31, 2021 4,717,200 101.66 6.32 339,012 Exercisable at December 31, 2021 3,213,149 65.72 5.39 305,280 Vested and expected to vest at December 31, 2021 4,647,663 $ 100.60 6.29 $ 337,290 The Company estimates the fair value of share options granted using the Black-Scholes-Merton option-pricing model. The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 Expected volatility 48.91%-52.22% 42.26%-49.24% 42.60%-45.24% Expected dividends 0% 0% 0% Expected term (in years) 4.85-4.91 4.84-4.99 4.94-4.99 Risk free rate 0.44%-1.22% 0.25%-1.40% 1.51%-2.47% The following table set forth the parameters used in computation of the ESPP for the years ended December 31, 2021, 2020 and 2019: Year ended December 31, 2021 2020 2019 Expected volatility 56.94%-59.23% 34.52%-83.3% 31.88%-54.49% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 0.06%-0.07% 0.13%-0.95% 1.89%-2.52% A summary of options data for the years ended December 31, 2021, 2020 and 2019, is as follows: Year ended December 31, 2021 2020 2019 Weighted-average grant date fair value of options granted, per optionz $ 127.36 $ 68.91 $ 53.67 Total intrinsic value of the options exercised $ 114,113 $ 436,187 $ 128,003 Total fair value of shares vested $ 49,045 $ 40,367 $ 33,316 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, 2021: Exercise price (range) Options outstanding as of December 31, 2021 Weighted average remaining contractual term Options exercisable as of December 31, 2021 Weighted average remaining contractual term (years) (years) 0-19.79 364,941 2.19 357,975 2.07 19.8-21.13 563,467 3.71 563,467 3.71 21.14-51.32 243,431 4.08 238,431 4.06 51.33-56.61 398,038 5.12 398,038 5.12 56.62-61.75 648,082 6.12 579,583 6.12 61.76-101.67 332,623 6.57 242,169 6.43 101.68-102.67 603,279 7.12 380,074 7.12 102.68-142.09 237,781 7.59 137,373 7.48 142.1-143.13 520,670 8.14 214,450 8.14 143.14-353.09 804,888 9.18 101,589 8.83 4,717,200 6.32 3,213,149 5.39 e. 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, 2021: Grant Date Options outstanding as of December 31, 2021 Exercise price Exercisable as of December 31, 2021 Exercisable through January 9, 2013 3,400 $ 2.34 3,400 January 9, 2023 No options were granted to non-employees during the years ended December 31, 2021, 2020 and 2019. f. A summary of RSU activity for the year ended December 31, 2021, is as follows: Number of shares Weighted average grant date fair value per share Unvested as of December 31, 2020 2,078,427 $ 150.87 Granted 1,303,693 243.47 Vested (935,912 ) 139.15 Forfeited (220,759 ) 196.20 Unvested as of December 31, 2021 2,225,449 $ 205.31 PSU activity for the year ended December 31, 2021 was not material. g. Comprehensive income (loss): The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity, for the years ended December 31, 2021 and 2020: Year ended December 31, 2021 Marketable securities Cash flow Total Beginning balance, net $ 3,768 $ 5,638 $ 9,406 Other comprehensive income before reclassifications, net (4,672 ) 119 (4,553 ) Amounts reclassified from accumulated other comprehensive income to earnings: Cost of revenues - (279 ) (279 ) Research and development, net - (3,644 ) (3,644 ) Selling and marketing - (1,217 ) (1,217 ) General and administrative - (740 ) (740 ) Financial income (expenses), net (29 ) - (29 ) Total accumulated other comprehensive income, net $ (933 ) $ (123 ) $ (1,056 ) Year ended December 31, 2020 Marketable Cash flow Total Beginning balance, net $ 852 $ 505 $ 1,357 Other comprehensive income before reclassifications, net 2,962 11,425 14,387 Amounts reclassified from accumulated other comprehensive income to earnings: Cost of revenues - (269 ) (269 ) Research and development, net - (3,995 ) (3,995 ) Selling and marketing - (1,300 ) (1,300 ) General and administrative - (728 ) (728 ) Financial income (expenses), net (46 ) - (46 ) Total accumulated other comprehensive income, net $ 3,768 $ 5,638 $ 9,406 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 14:- 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: 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. The Israeli corporate tax rate was 23% for the years ended December 31, 2021, 2020 and 2019. A company is taxable on its real capital gains at the corporate income tax rate in the year of sale. 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, a Preferred Enterprise, a Preferred Technological Enterprise or a Special Preferred Technological 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, 2021 2020 2019 Domestic $ (72,066 ) $ (153,173 ) $ (86,703 ) Foreign 19,059 1,295 1,553 Loss before taxes on income $ (53,007 ) $ (151,878 ) $ (85,150 ) 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: December 31, 2021 2020 Deferred tax assets: Net operating loss carryforward $ 11,015 $ 30,481 Capital losses carry-forwards - 1 Operating lease liabilities 18,806 16,495 Research and development expenses carryforward 33,913 1,742 Share-based compensation 28,452 18,242 Depreciation differences 1,296 582 Accrued employees costs 4,546 3,506 Intangible assets - 358 Tax advances 1,241 4,032 Other 1,635 139 Deferred tax assets 100,904 75,578 Valuation allowance (78,790 ) (34,157 ) Deferred tax liabilities: Convertible notes $ - $ 19,415 Unrealized gains on marketable and other equity securities 72,626 15,343 Property and equipment 1,900 1,740 Operating lease ROU assets 17,136 14,999 Acquired Intangible assets (1) 2,936 1,880 Other 319 1,574 Deferred tax liabilities $ 94,917 $ 54,951 Deferred taxes are included in the consolidated balance sheets, as follows: Long-term receivables $ - $ 1,813 Long-term liabilities $ 72,803 $ 15,343 (1) In 2021, the Company completed an intra-entity transfer from US to Israel of certain intangible property (“IP”) rights associated with subsidiaries’ technology platform. This transfer resulted in income for US tax purposes of approximately $8,152 in 2021. As a result of the IP transfer, the Company utilized NOLs and consequently released the valuation allowance. The Company has provided valuation allowances in respect of all 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. d. Income taxes are comprised as follows: Year ended December 31, 2021 2020 2019 Current $ 10,621 $ (535 ) $ 3,309 Deferred 53,581 15,524 (711 ) $ 64,202 $ 14,989 $ 2,598 Domestic $ 59,053 $ 16,193 $ (1,981 ) Foreign 5,149 (1,204 ) 4,579 $ 64,202 $ 14,989 $ 2,598 e. A reconciliation of the Company's theoretical income tax expense to actual income tax expense as follows: Year ended December 31, 2021 2020 2019 Loss before taxes on income $ (53,007 ) $ (151,878 ) $ (85,150 ) Statutory tax rate 23 % 23 % 23 % Theoretical income tax expense (12,192 ) (34,932 ) (19,585 ) Deferred tax assets for which valuation allowance was provided 40,520 29,485 10,390 Non-deductible option expenses (2,245 ) (5,529 ) (443 ) Non-deductible expenses (1,202 ) 627 2,280 Tax adjustment in respect of different tax rate of foreign subsidiary 4,171 345 (256 ) Preferred enterprise benefits 37,001 23,700 8,163 Rate change impact - (57 ) (93 ) Intra-entity intellectual property transfer (3,913 ) - 196 different tax rate - 372 573 Foreign tax - - 102 Uncerain tax positions 416 - - Other 1,646 978 1,270 Income tax expense $ 64,202 $ 14,989 $ 2,598 f. Net operating loss carryforward: As of December 31, 2021, the Company had carryforward operating losses totaling approximately $97,784, of which $63,904 is 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 applied 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 2009 as its year of election. In addition, during 2013, the Company had submitted a notification to the Israeli Tax Authorities ("ITA") 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 "Alternative Benefits" track as a Beneficiary Enterprise. 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. Through December 31, 2021 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(the 2011 Amendment). The 2011 Amendment canceled the availability of the benefits granted to companies under the Investment Law prior to 2011 and, instead, introduced new benefits for income generated by a “Preferred Company” through its “Preferred Enterprise” (as such terms are defined in the Investment Law) as of January 1, 2011. Similar to a “Beneficiary Company,” a Preferred Company is an industrial company owning a Preferred Enterprise which meets certain conditions (including a minimum threshold of 25% export). However, under this new legislation the requirement for a minimum investment in productive assets was cancelled. Pursuant to the 2011 Amendment, a Preferred Company is entitled to a reduced corporate tax rate of 16% and 9% in 2014 and thereafter. Dividends paid out of income attributed to a Preferred Enterprise during 2014 and thereafter are generally subject to withholding tax at the rate of 20% or such lower rate as may be provided in an applicable tax treaty. However, if such dividends are paid to an Israeli company, no tax is required to be withheld (however, if afterward distributed to individuals or non-Israeli company a withholding of 20% or such lower rate as may be provided in an applicable tax treaty, will apply). The 2011 Amendment also provided transitional provisions to address companies already enjoying existing tax benefits under the Investment Law. These transitional provisions provide, among other things, that unless an irrevocable request is made to apply the provisions of the Investment Law as amended in 2011 with respect to income to be derived as of January 1, 2011: (i) the terms and benefits included in any certificate of approval that was granted to an Approved Enterprise which chose to receive grants and certain tax benefits under the Grant Track before the 2011 Amendment became effective will remain subject to the provisions of the Investment Law as in effect on the date of such approval, and subject to certain conditions; and (ii) terms and benefits included in any certificate of approval that was granted to an Approved Enterprise under the Alternative Track before the 2011 Amendment became effective will remain subject to the provisions of the Investment Law as in effect on the date of such approval, provided that certain conditions are met; and (iii) a Beneficiary Enterprise can elect to continue to benefit from the benefits provided to it before the 2011 Amendment came into effect, provided that certain conditions are met. 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: Preferred Technological Enterprise - an enterprise for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion. A Preferred Technological 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. In January 2022, the Company notified the ITA that it waived the Beneficiary Enterprise status starting from the 2022 tax year and thereafter. The Company evaluated the effect of the adoption of the Amendment 73 and it generally meets the conditions for tax benefits as a “Preferred Technological Enterprise.” Accordingly, if the Company generates taxable income in Israel, it should be subject to tax at the rate of 12% (and 7.5% with respect to income attributed to development area A). 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 the company 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 in the U.S.: The Tax Cuts and Jobs Act (the “Act”) was enacted on December 22, 2017. The Act reduces the US federal corporate tax rate from 35% to 21% in 2018, 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 calculate 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 22%. j. Tax assessments: In k. Uncertain tax positions: A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2021 2020 2019 Opening balance $ 1,811 $ 2,030 $ 334 Increases (decrease) related to previous and current year tax positions 3,858 (219 ) 1,696 Closing balance $ 5,669 $ 1,811 $ 2,030 |
FINANCIAL INCOME, NET
FINANCIAL INCOME, NET | 12 Months Ended |
Dec. 31, 2021 | |
Nonoperating Income (Expense) [Abstract] | |
FINANCIAL INCOME, NET | NOTE 15:- FINANCIAL INCOME, NET Year ended December 31, 2021 2020 2019 Bank charges $ (761 ) $ (539 ) $ (533 ) Income (expenses) related to hedging activity 6,408 (5,529 ) 963 Amortization of debt discount and issuance costs (5,298 ) (29,954 ) (20,938 ) Exchange rate loss (6,711 ) (2,352 ) (2,905 ) Net gains related to equity securities 267,831 69,042 - Total income (expenses ) 261,469 30,668 (23,413 ) Interest income 10,474 16,391 19,792 Total financial income (expenses), net $ 271,943 $ 47,059 $ (3,621 ) |
BASIC AND DILUTED NET LOSS PER
BASIC AND DILUTED NET LOSS PER SHARE | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED NET LOSS PER SHARE | NOTE 16:- BASIC AND DILUTED NET LOSS PER SHARE Year ended December 31, 2021 2020 2019 Numerator: Net loss available to shareholders of ordinary shares $ (117,209 ) $ (166,867 ) $ (87,748 ) Denominator: Shares used in computing net loss per ordinary shares, basic and diluted 57,004,154 54,425,056 50,504,698 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, 2021 2020 2019 Shares used in computing net loss per ordinary shares, basic and diluted 57,004,154 54,425,056 50,504,698 The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: Share options 4,720,600 4,621,780 7,447,519 Restricted share units 2,225,516 2,078,427 2,125,440 Convertible Notes 3,969,514 4,530,284 3,104,251 10,915,630 11,230,491 12,677,210 |
SEGMENTS, CUSTOMERS AND GEOGRAP
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION | NOTE 17:- SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company applies ASC Topic 280, Segment Reporting b. The following tables present total revenues for the years ended December 31, 2021, 2020 and 2019 and long-lived assets as of December 31, 2021 and 2020: Revenues: Year ended December 31, 2021 2020 2019 North America (*) $ 731,251 $ 559,431 $ 411,354 Europe 334,677 251,597 195,324 Latin America 55,244 51,053 51,108 Asia and others 148,485 122,286 99,881 $ 1,269,657 $ 984,367 $ 757,667 (*) Includes revenue from the United States in amount of $363,431 $481,098 and $588,886 for 2019, 2020 and 2021, respectively. Long-lived assets and ROU assets: December 31, 2021 2020 Israel $ 54,440 $ 56,684 Europe and Asia 44,047 15,233 America 53,045 52,352 $ 151,532 $ 124,269 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 18:- SUBSEQUENT EVENTS a. In February 2022, Russia launched a military invasion into Ukraine. The Company maintains research and development and customer care activities in Ukraine. While as of the date of issuance of this annual report there have not been material impacts associated with the military invasion, management is continuously monitoring the developments to assess potential future impacts. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
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 accounting estimates that require management’s subjective judgments include, but are not limited to, revenue recognition, income taxes, share-based compensation and purchase price allocation on acquisitions including determination of useful lives, Incremental Borrowing Rate (“IBR”), convertible notes borrowing rate and contingent consideration. The Company evaluates its estimates and judgments on an ongoing basis and revises them when necessary. Actual results may differ from the original or revised estimates. The novel coronavirus (“COVID-19”) pandemic has created, and may continue to create, significant uncertainty in macroeconomic conditions. The Company considered the impact of COVID-19 on the estimates and assumptions and determined that there were no material adverse impacts on the consolidated financial statements for the period ended December 31, 2021. As events continue to evolve and additional information becomes available, the Company’s estimates and assumptions may change materially in future periods. |
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. |
Foreign currency translation and transactions | c. Foreign currency translation and transactions: A substantial portion of the Company's financing activities, including equity transactions, cash investments, costs and revenues are generated 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 and each of its subsidiaries operate. Thus, the functional and reporting currency of the Company is the U.S. dollar. Transactions and balances that are denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars in accordance with principles set forth in Accounting Standard Codification ("ASC") Topic 830, Foreign Currency Matters |
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 from the date of purchase and of up to one year. As of December 31, 2021 and 2020, the Company's bank deposits were mainly denominated in U.S. dollars and New Israel Shekels (NIS) and bore interest at weighted average interest rates of 0.77% and 1.21%, 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 and for the Company's credit cards. As of December 31, 2021 and 2020, the Company's bank deposits were in U.S. dollars and bore interest at weighted average interest rates of 0.63% and 0.038%, respectively. Restricted deposits are presented at their cost, including accrued interest. |
Marketable securities: | g. Marketable securities: Marketable securities consist of investments in debt securities and in equity securities with readily determinable fair values. The Company accounts for investments in marketable debt securities in accordance with ASC Topic 320, Investments - Debt Securities Prior to January 1, 2020, the Company recognized an impairment charge when a decline in the fair value of its investments below the cost basis was judged to be other-than-temporary (“OTTI”). Factors considered in making such a determination included 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. The Company concluded that unrealized losses on its available-for-sale debt securities for the year ended December 2019 were not OTTI. In 2020, the Company adopted ASU 2016-13, Topic 326 Financial Instruments – Credit Losses The Company classifies its marketable debt securities as either short-term or long-term based on each instruments’ underlying contractual maturity date as well as the intended time of realization. Marketable debt securities with maturities of 12 months or less are classified as short-term, and marketable debt securities with maturities greater than 12 months are classified as long-term. The Company accounts for investments in marketable equity securities with readily determinable fair values in accordance with ASC Topic 321, Investments - Equity Securities |
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) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset The carrying amounts of property and equipment are reviewed for impairment in accordance with ASC Topic 360, Property, Plant and Equipment |
Business combinations: | i. Business combinations: The Company accounts for business combinations in accordance with ASC Topic 805, Business Combinations (“ASC 805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated to goodwill. Upon the end of the measurement period or final determination of the values of assets acquired or liabilities assumed, whichever occurs earlier, any subsequent adjustments would be recorded in the statement of comprehensive loss. Acquisition-related costs are recognized separately from the business combination and are expensed as incurred. The Company accounts for a transaction that does not meet the definition of a business as an asset acquisition. |
Goodwill and intangible assets: | j. 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 the excess of the purchase price over the estimated fair value of net assets of a business acquired in a business combination. Under ASC Topic 350, Intangibles - Goodwill and Other Intangible assets are stated at cost, less accumulated amortization and impairment. Amortization is calculated using the straight-line method over the estimated useful lives of the related assets: Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years Distribution agreement 1.5 years Amortization is recorded into cost of revenues or operating expenses, depending on the nature of the asset. 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 estimated undiscounted future cash flows anticipated to be generated over the remaining life of an asset or assets group to their net carrying amount. If the estimated undiscounted future cash flows associated with the asset or assets group are less than the carrying amount, an impairment loss will be recorded based on the estimated fair value. There were no material impairment charges during any of the periods presented. |
Investments in privately held companies: | k. Investments in privately held companies: The Company holds equity investments in private companies without readily determinable market values in which it does not have control or significant influence. The Company accounts for these equity investments using the measurement alternative, which is cost, less any impairment, adjusted for changes in fair value resulting from observable transactions for identical or similar investments of the same issuer. The investments are reviewed periodically to determine if their respective values have appreciated or have been impaired, and adjustments are recorded as necessary. These investments are presented in the Company’s consolidated balance sheets as part of prepaid expenses and other long-term assets. The carrying amount the Company’s equity investments in privately held companies without readily determinable market values as of December 31, 2021 and 2020, was $11,477 and $72,646, respectively. During the year ended December 31, 2021, a privately held company completed its initial public offering and began trading on Nasdaq. As such, effective June 2021, the Company's investment in this company no longer qualifies for the use of the measurement alternative, as the fair value of the investment became readily determinable. As a result, the investment was classified as marketable securities. At the date of transfer the carrying amount of the investment was $96,222. During the years ended December 31, 2021 and 2020, the Company recorded in financial income (expense), net unrealized gains of $2,833 and $67,822, respectively, related to revaluation of its equity investments in privately held companies based on observable price changes. As of December 31, 2021, cumulative unrealized gains related to investments in privately held companies without readily determinable market values, excluding unrealized gains related to the investment transferred to marketable securities, was $3,946. |
Derivatives instruments: | l. Derivatives instruments: The Company enters into foreign currency contracts, primarily forward and option contracts, with financial institutions to protect against foreign exchange risks. In accordance with ASC Topic 815, Derivative and Hedging Derivative instruments designated as hedging instruments: The Company has instituted a foreign currency cash flow hedging program, to hedge the risk of overall changes in cash flows resulting from foreign currency salary payments, rent and other overheads. The Company hedges portions of its forecasted salary, rent and other overhead cash flow denominated in NIS, using options and forward contracts that are designated as cash flow hedges, as defined by ASC 815. For these derivative instruments, gains and losses are reported as a component of other comprehensive income and subsequently recognized in earnings with the corresponding hedged item. The net fair value of derivative instruments designated as hedging instruments as of December 31, 2021 and 2020, totaled $394 and $6,841, respectively, and is presented as prepaid expenses and other current assets. As of December 31, 2021 and 2020, the gross amount recorded in accumulated other comprehensive income from the Company's currency options transactions was $296 and $6,841, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $156,806. The foreign exchange forward and options contracts will expire throughout 2022. Derivative instruments not designated as hedging instruments: In addition to the derivatives that are designated as hedges, the Company enters into certain foreign exchange forward and option transactions to economically hedge certain revenue transactions in Euros, British pounds, Brazilian Real, Japanese Yen and Israeli Shekel. Gains and losses related to such derivative instruments are recorded in financial income (expenses), net. The net fair value of derivative instruments not designated as hedging instruments as of December 31, 2021 and 2020, totaled $476 and $(1,719), respectively, and is presented as prepaid expenses and other current assets and accrued expenses and other current liabilities. In the years ended December 31, 2021, 2020 and 2019, the Company recorded financial income (expenses), net, from economically hedge, in the amount of $6,408, $(5,529) and $963, respectively. As of December 31, 2021, the notional amounts of foreign exchange forward and options contracts into which the Company entered were $259,903. The foreign exchange forward and option transactions will expire through 2022. |
Severance pay: | m. 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, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. 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, 2021, 2020 and 2019, amounted to $22,413, $15,737 and $12,042, respectively. |
U.S. employees defined contribution plan: | n. 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 $19.5 per year (for certain employees over 50 years of age the maximum contribution is $26 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, 2021, 2020 and 2019, the U.S. Subsidiary recorded expenses for matching contributions in amounts of $2,271, $1,117 and $727, respectively. |
Convertible senior notes: | o. Convertible Senior Notes: Prior to January 1, 2021, the Company accounted for the issuance of Convertible Senior Notes (also referred to as “Notes” or “Convertible Notes”) in accordance with ASC Subtopic 470-20, Debt with Conversion and Other Options As of January 1, 2021, when the Company early adopted ASU 2020-06, the Company accounts for the Convertible Notes at amortized cost, as a single unit of account on the balance sheet. The carrying value of the liability is represented by the face amount of the Convertible Notes, less debt offering costs, adjusted for any amortization of offering costs. Offering costs are being amortized to interest expense over the term of the Convertible Notes, using the effective interest rate method. See Note 2.ae for details on the early adoption of ASU 2020-06 as of January 1, 2021. |
Revenue recognition: | p. Revenue recognition: The Company’s total revenues are comprised of revenues from Creative Subscriptions and revenues from Business Solutions. Creative Subscriptions revenues are generated from the sale of monthly, yearly and multi-year premium subscriptions for its website solutions as well as from the sale of domain registrations. Business Solutions revenues are generated from the sale of additional products and services that are offered to all of the Company’s registered users, in addition to the creative subscriptions. These products and services include, among others, Google Workspace (formerly known as G-Suite), Wix Payments, Ascend by Wix and other applications, both sold through the Company’s App Market or elsewhere on its platform. In accordance with ASC Topic 606, Revenues from Contracts with Customers The Company recognizes revenue by applying the following 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. Arrangements with the Company’s customers do not provide the customers with the right to take possession of the software supporting the Company’s platform at any time and are therefore accounted for as service contracts. In instances where the timing of revenue recognition differs from the timing of payment, the Company has determined that its contracts do not include a significant financing component. The Company applies the practical expedient in ASC 606 and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. Payments received in advance of the Company’s performance are recorded as deferred revenues, which represent a contract liability. The Company's arrangements with its customers may include multiple performance obligations. When contracts involve multiple performance obligations, the Company evaluates whether each performance obligation is distinct and should be accounted for as a separate unit of accounting under ASC 606. Each of the Company’s products and services is sold separately, therefore standalone selling prices (SSP) for each of them is observed, and allocation of the transaction price between the performance obligations in the contract is made relatively on that basis. Creative Subscriptions Revenues from premium subscriptions are recognized on a straight-line basis over the contract period. The Company offers a 14-day money back guaranty ("Guaranty Period") on new premium subscription. 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 related to the purchase and registration of domain names are recognized at a point in time upon the purchase and registration of the domain name, since that is when the Company transfers control and satisfies the performance obligation. Business Solutions Revenues related to subscriptions and software applications developed by the Company, including Ascend by Wix, are primarily recognized on a straight-line basis over the contract period. Revenues related to Wix Payments earned from processing payments are recognized at the time of the transaction, and fees are determined based in part on a percentage of the Gross Payment Volume (“GPV”) processed plus a per transaction fee, where applicable. Revenues related to Google Workspace subscriptions, which are sold on a monthly or yearly basis, are recognized on a ratable basis over the subscription period. See Note 2.af with regard to a correction of immaterial prior-period errors related to Google Workspace. Revenues related to third-party software applications and solutions are generally recognized on a net basis at a point in time upon purchase of the application, since that is when the Company completes its obligation to facilitate the transfer between the customer and the third party. Principal versus Agent Considerations The Company follows the guidance provided in ASC 606 for determining whether the Company is a principal or an agent in arrangements with customers that involve another party that contributes to providing a specified service to a customer. The Company determines whether the nature of its promise is a performance obligation to provide the specified goods or services itself (principal) or to arrange for those goods or services to be provided by the other party (agent). This determination is reviewed for each specified product or service promised to the customer and may involve significant judgment. The Company sells its products and services directly to customers and also through a network of resellers. In certain cases, the Company acts as a reseller of products and services provided by others. Certain revenues earned from domain names, third-party offerings, including Google Workspace, and Wix Payments, are recorded on a gross basis, as the Company has determined that it controls the promised product or service before it is transferred to the end customers, is primarily responsible for the fulfillment, and has discretion in establishing prices. Revenues related to third-party software applications and solutions are recognized on a net basis when the Company does not control the product or service before transferring to the customers. Remaining performance obligation The Company’s remaining performance obligations represent revenue that has not yet been recognized and include deferred revenue and unbilled amounts that will be recognized as revenue in future periods. As of December 31, 2021, the aggregate amount of the transaction price allocated to remaining performance obligations was approximately $611,217. As of December 31, 2021, the Company expects to recognize 79% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. |
Costs to obtain contracts: | q. Costs to obtain contracts: The Company capitalizes certain sales commissions as costs of obtaining a contract when they are incremental and if they are expected to be recovered. These costs are subsequently amortized consistently with the pattern of revenue recognition from contracts for which the commissions relate, over an estimated period of benefit. Deferred commission costs capitalized are periodically reviewed for impairment. There were no impairment losses recorded during the periods presented. For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these costs as incurred. Amortization expense of these costs are included in selling and marketing expenses. As of December 31, 2021 and 2020, the amount of deferred commissions was $3,187 and $1,072, respectively and is included in prepaid expenses and other current assets on the consolidated balance sheets. During the years ended December 31, 2021 and 2020, the Company recorded amortization expenses in connection with deferred commissions in the amount of $110 and $2, respectively. |
Cost of revenues: | r. Cost of revenues: Cost of creative subscriptions revenues consists primarily of the allocation of costs associated with the provision of website creation and services, and related customer care and call center costs along with domain name registration costs. Cost of creative subscriptions revenues also consists of personnel and the related overhead costs, including share-based compensation. Cost of business solutions revenue consists primarily of the allocation of bandwidth, hosting and support costs, and certain revenue share payments according to the Company’s agreements with third-party providers. It also includes costs related to payment processing, such as credit card interchange, network fees (charged by credit card providers), and third-party processing fees. |
Research and development costs: | s. Research and development costs: Research and development costs are generally expensed as incurred. Research and development expenses primarily consist of personnel and related expenses, including share-based compensation and allocated overhead costs. |
Internal use software costs: | t. Internal use software costs: The Company capitalized certain costs related to the online platform for internal use incurred during the application development stage. The Company also capitalizes costs related to upgrades and enhancements when it is probable the expenditures will result in additional functionality. Costs incurred in the preliminary stages of development are expensed as incurred. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function. Capitalization ceases when the software is substantially complete and ready for its intended use. Maintenance costs are expensed as incurred. Capitalized software development are included in property and equipment, net in the consolidated balance sheets, and are amortized over the estimated useful life of the software, on a straight-line basis. During 2021, 2020 and 2019, the Company capitalized $2,519, $575 and $778, respectively. |
Selling and Marketing: | u. Selling and marketing: Selling and marketing expenses consist primarily of cost-per click expenses, social networking expenses, marketing campaigns and display advertisements, and are charged to the statement of comprehensive loss, as incurred. Selling and marketing expenses for the years ended December 31, 2021, 2020 and 2019 amounted to $284,540, $282,804 and $187,318, respectively. |
Share-based compensation: | v. Share-based compensation: The Company has granted restricted stock units (“RSUs”) and stock options vesting solely upon continued service, as well as performance-based awards, including performance stock units (“PSUs”), with vesting based on achievement of specified performance targets. In addition, the Company grants stock options under its Employee Stock Purchase Plan (“ESPP”), available solely to active employees. The Company accounts for share-based compensation in accordance with ASC 718, Compensation - Stock Compensation ("ASC 718"). Compensation cost for share-based awards is measured at the fair value on the grant date and recognized as expense using the straight-line method for service-based awards, and the accelerated method for performance-based awards, over the requisite service period. The Company estimates forfeitures at the grant date based on past experience, and revises its estimate if necessary, in subsequent periods if actual forfeitures differ from those estimates. The Company regularly estimates when and if performance-based awards will be earned and record expense over the estimated service period only for awards considered probable of being earned. Any previously recognized expense is reversed in the period in which an award is determined to no longer be probable of being earned. The Company selected the Black-Scholes-Merton option-pricing model as the most appropriate model for determining the fair value for its share options awards and ESPP, whereas the fair value of RSUs and PSUs is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires the Company to make several assumptions, including the Company’s share price, expected volatility, expected term, risk-free interest rate, and expected dividends. Expected volatility was calculated based upon actual historical share 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 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. |
Income taxes: | w. Income taxes: The Company accounts for income taxes in accordance with ASC Topic 740, Income Taxes Deferred tax assets and liabilities are classified as long-term assets and liabilities in the consolidated balance sheets. The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more-likely-than-not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. 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 unrecognized tax benefits in tax expense. |
Legal contingencies | x. Legal contingencies: 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. |
Basic and diluted net loss per share: | y. Basic and diluted net loss per share: Basic and diluted net loss per share is computed based on the weighted-average number 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. Basic and diluted net loss per ordinary share 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, 2021, 2020 and 2019, all outstanding options, RSUs, performance-based awards and Convertible Senior Notes have been excluded from the calculation of the diluted net loss per share since their effect was anti-dilutive. |
Treasury shares: | z. Treasury shares: The Company repurchased its ordinary shares and holds them as treasury shares. The Company presents the cost to repurchase treasury shares as a reduction of shareholders' equity. |
Concentration of credit risks: | aa. 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, marketable debt securities, and trade receivables. The majority of the Company's and its subsidiaries' cash and cash equivalents, short-term and restricted deposits, are invested in major banks 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. The Company’s marketable debt securities consist of investments in government, corporate and government sponsored enterprises debentures. The Company’s investment policy minimizes credit risk by setting limits for minimum credit rating and maximum concentration per issuer, thereby reducing credit risk concentrations. The Company’s trade receivables are geographically dispersed and derived from sales in North America, Europe, Latin America and Asia. Concentration of credit risk with respect to trade receivables is limited by ongoing creditworthiness evaluation and account monitoring procedures. |
Fair value of financial instruments: | ab. Fair value of financial instruments: The Company applies ASC Topic 820, Fair Value Measurement Level 1 - Quoted prices in active markets for identical assets or liabilities. Level 2 - Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 - Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. |
Government grants: | ac. Government grants: Grants from the Investment and Development Authority for Economic and Industrial Development (the "Investment Authority") for participation in salary expenses for employees in national priority areas, from the Israel Innovation Authority (the "IIA"), for participation in research and development activities, and grants from the European Innovation Council (EIC), are recognized as a deduction from research and development expenses, net, at the time the Company is entitled to such grants on the basis of the related cost incurred. The Company will not be obligated to pay royalties to the Investment Authority and the IIA. The Company recorded grants from the Investment Authority in the amounts of $509, $957 and $852 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recorded grants from IIA in the amounts of $-, $16 and $758 for the years ended December 31, 2021, 2020 and 2019, respectively. The Company recorded grants from EIC in the amounts of $9, $120 and $21 for the years ended December 31, 2021, 2020 and 2019, respectively. |
Leases: | ad. Leases: The Company accounts for leases in accordance with ASC Topic 842, Leases The Company's lease agreements generally include lease and non-lease components. Payments under lease arrangements are primarily fixed. Non-lease components primarily include payments for maintenance and utilities. The Company combines fixed payments for non-lease components with lease payments and account for them together as a single lease component. Certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use (“ROU”) assets and liabilities. ROU assets represent the Company's right to use an underlying asset for the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term. As most of its leases do not provide an implicit rate, the Company generally uses its incremental borrowing rate based on the estimated rate of interest for collateralized borrowing over a similar term of the lease payments at commencement date. ROU assets also include any prepaid lease payments and lease incentives. Operating lease ROU assets and liabilities are included in the Company’s consolidated balance sheet. Operating lease expense (excluding variable lease payments) is recognized on a straight-line basis over the lease term. During the periods presented all of the Company’s lease contracts are accounted for as operating leases. The carrying amounts of ROU assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amounts of such assets may not be recoverable. There were no impairment charges during any of the periods presented. The Company subleases certain leased office spaces to third parties, and recognizes sublease income on a straight-line basis over the sublease term. The Company recognizes sublease income as an offset to lease expense in the consolidated statements of comprehensive loss. |
Accounting pronouncements adopted in the year: | ae. Accounting pronouncements adopted in the year: 1. In August 2020, the FASB issued ASU 2020-06, Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity’s Own Equity (Subtopic 815-40) The Company early adopted ASU 2020-06 effective January 1, 2021 using the modified retrospective approach. The adoption eliminated the requirement to separately account for the liability and equity components of the Company’s convertible notes, which existed under previous accounting guidance. This resulted in a decrease to accumulated deficit of $53,527, a decrease to additional paid-in capital of $215,712, and an increase to convertible notes, net of $162,185. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible notes as a single liability measured at its amortized cost. 2. In October 2021, the FASB issued ASU 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers |
Prior-period financial statements correction of immaterial errors: | af. Prior-period financial statements correction of immaterial errors: During the year ended December 31, 2021, the Company recorded a correction of prior-period errors related to the timing of revenue recognition and the related cost of revenues from the sale of Google Workspace solutions. The Company assessed the materiality of these errors on the financial statements for prior periods in accordance with the SEC Staff Accounting Bulletin (SAB) No. 99, Materiality Presentation of Financial Statements The following tables summarize the effects of the corrections on the Company’s consolidated statements of comprehensive loss for the years ended December 31, 2020 and 2019: Year Ended December 31, 2020 As Previously Reported Adjustment As Revised Total Revenues $ 988,760 $ (4,393 ) $ 984,367 Total cost of revenue 315,699 (2,680 ) 313,019 Gross Profit 673,061 (1,713 ) 671,348 Operating loss (197,342 ) (1,713 ) (199,055 ) Loss before taxes (150,165 ) (1,713 ) (151,878 ) Net loss (165,154 ) (1,713 ) (166,867 ) Basic and diluted net loss per shares $ (3.03 ) $ (0.04 ) $ (3.07 ) Year Ended December 31, 2019 As Previously Reported Adjustment As Revised Total Revenues $ 761,088 $ (3,421 ) $ 757,667 Total cost of revenue 196,907 (2,087 ) 194,820 Gross Profit 564,181 (1,334 ) 562,847 Operating loss (80,250 ) (1,334 ) (81,584 ) Loss before taxes (83,816 ) (1,334 ) (85,150 ) Net loss (86,414 ) (1,334 ) (87,748 ) Basic and diluted net loss per shares $ (1.71 ) $ (0.03 ) $ (1.74 ) |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Property and Equipment, Estimated Useful Lives | % Computers, peripheral equipment and electronic equipment 15 - 33 (mainly 33) Internal use software 33 Office furniture and equipment 6 - 14 (mainly 6) Vehicles 15 Leasehold improvements Over the shorter of the related lease period or the life of the asset |
Schedule of useful life of intangible assets | Technology 7-8 years Customer relations 4 -15 years Customer data 15 years Non-Competition agreement 3 years Domain 7 years Distribution agreement 1.5 years |
Schedule of summarize effects of corrections on consolidated statements of comprehensive loss | Year Ended December 31, 2020 As Previously Reported Adjustment As Revised Total Revenues $ 988,760 $ (4,393 ) $ 984,367 Total cost of revenue 315,699 (2,680 ) 313,019 Gross Profit 673,061 (1,713 ) 671,348 Operating loss (197,342 ) (1,713 ) (199,055 ) Loss before taxes (150,165 ) (1,713 ) (151,878 ) Net loss (165,154 ) (1,713 ) (166,867 ) Basic and diluted net loss per shares $ (3.03 ) $ (0.04 ) $ (3.07 ) Year Ended December 31, 2019 As Previously Reported Adjustment As Revised Total Revenues $ 761,088 $ (3,421 ) $ 757,667 Total cost of revenue 196,907 (2,087 ) 194,820 Gross Profit 564,181 (1,334 ) 562,847 Operating loss (80,250 ) (1,334 ) (81,584 ) Loss before taxes (83,816 ) (1,334 ) (85,150 ) Net loss (86,414 ) (1,334 ) (87,748 ) Basic and diluted net loss per shares $ (1.71 ) $ (0.03 ) $ (1.74 ) |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] | December 31, 2021 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 189,437 $ - $ - $ 189,437 Marketable securities 312,934 530,922 - 843,856 Foreign currency derivatives presented as contracts assets - 3,546 - 3,546 Financial liabilities: Foreign currency derivatives presented as contracts liabilities - (2,677 ) - (2,677 ) $ 502,371 $ 531,791 $ - $ 1,034,162 December 31, 2020 Fair value measurements using input type Level 1 Level 2 Level 3 Total Financial assets: Money market funds $ 20,656 $ - $ - $ 20,656 Marketable securities - 826,804 - 826,804 Foreign currency derivatives presented as contracts assets - 7,083 - 7,083 Financial liabilities: Foreign currency derivatives presented as contracts liabilities - (1,961 ) - (1,961 ) $ 20,656 $ 831,926 $ - $ 852,582 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Marketable Securities Calssified as Available-for-sale Securities | December 31, 2021 2020 Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value LESS THAN A YEAR Government and corporate debentures - fixed interest rate $ 196,408 $ 583 $ (49 ) $ 196,942 $ 244,434 $ 526 $ (48 ) $ 244,912 Government-sponsored enterprises 2,501 1 - 2,502 10,006 32 - 10,038 Government and corporate debentures - floating interest rate 10,008 10 - 10,018 34,967 10 - 34,977 $ 208,917 $ 594 $ (49 ) $ 209,462 $ 289,407 $ 568 $ (48 ) $ 289,927 December 31, 2021 2020 MORE THAN 1 YEAR THROUGH FIVE YEARS Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value Government and corporate debentures - fixed interest rate $ 303,429 $ 239 $ (1,636 ) $ 302,032 $ 494,520 $ 3,821 $ (143 ) $ 498,198 Government-sponsored enterprises 16,460 - (79 ) 16,381 21,264 67 - 21,331 Government and corporate debentures - floating interest rate 3,049 1 (3 ) 3,047 17,331 24 (7 ) 17,348 $ 322,938 $ 240 $ (1,718 ) $ 321,460 $ 533,115 $ 3,912 $ (150 ) $ 536,877 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | December 31, 2021 2020 Government authorities $ 4,634 $ 7,381 Hedging transaction asset 3,546 7,083 Prepaid expenses 16,678 13,984 Other current assets 8,019 12,218 $ 32,877 $ 40,666 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment, Net [Abstract] | |
Schedule of Property and Equipment, Net | December 31, 2021 2020 Cost: Leasehold improvements $ 53,011 $ 41,101 Computers, peripheral equipment and electronic equipment 35,204 27,449 Internal use software 4,983 2,467 Office furniture and equipment 7,010 6,464 Vehicles 254 130 100,462 77,611 Less - accumulated depreciation 50,025 41,748 Depreciated cost $ 50,437 $ 35,863 |
Schedule of depreciation expense related to property and equipment | Year ended December 31, 2021 2020 2019 Cost of revenues $ 3,186 $ 2,654 $ 1,946 Research and development, net 6,427 7,703 6,401 Selling and marketing 2,939 2,993 2,244 General and administrative 1,377 1,260 1,535 $ 13,929 $ 14,610 $ 12,126 |
BUSINESS COMBINATION (Tables)
BUSINESS COMBINATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Business Combinations [Abstract] | |
Schedule of fair values of assets acquired and liabilities assumed | (in thousands) Cash $ 2,853 Trade receivables 378 Prepaid expenses and other current assets 124 Intangible assets 25,918 Goodwill 25,065 Total Assets $ 54,338 Current liabilities 3,698 Deferred tax liability 4,011 Total Liabilities $ 7,709 Cash consideration paid 45,582 Fair value of previous investment 1,047 Total purchase consideration $ 46,629 |
INTANGIBLE ASSETS, NET (Tables)
INTANGIBLE ASSETS, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | December 31, 2021 2020 Cost: Technology $ 28,795 $ 9,614 Customer relations 17,663 11,054 Non-Competition agreement 128 - Customer data 12,043 12,043 Domain 552 552 Distribution agreement 291 291 59,472 33,554 Less - accumulated amortization 19,225 14,273 Intangible assets, net $ 40,247 $ 19,281 |
Schedule of estimated amortization expense | 2022 $ 6,259 2023 5,963 2024 5,877 2025 4,829 Thereafter 17,319 $ 40,247 |
Schedule of amortization expense related to intangible assets included in consolidated statements of comprehensive loss | Year ended December 31, 2021 2020 2019 Cost of revenues $ 2,030 $ 316 $ 1,951 Selling and marketing 2,918 2,257 2,629 General and administrative 4 4 8 $ 4,952 $ 2,577 $ 4,588 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Liabilities, Current [Abstract] | |
Summary of Accrued Expenses and Other Current Liabilities | December 31, 2021 2020 Accrued expenses $ 32,812 $ 18,989 Government authorities 26,911 26,008 Hedging transaction liability 2,677 1,961 Uncertain tax positions 416 1,811 $ 62,816 $ 48,769 |
CONVERTIBLE NOTES (Tables)
CONVERTIBLE NOTES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
2025 Convertible notes [Member] | |
Schedule of net carrying amount | The net carrying amount of the 2025 Convertible Notes were as follows: December 31, 2021 2020 Principal outstanding $ 575,000 $ 575,000 Unamortized debt discount (1) - (109,655 ) Unamortized debt issuance costs (1) (11,565 ) (11,766 ) Net carrying amount $ 563,435 $ 453,579 The Company recognized interest expense on the 2025 Convertible Notes as follows: Year ended December 31, 2021 2020 Amortization of debt discount and issuance costs (1) $ 3,114 $ 7,629 (1) Prior to the early adoption of ASU 2020-06 on January 1, 2021, the Company accounted for its notes as separate liability and equity components. The comparative figures represent the debt discount and issuance costs related to the liability component prior to the early adoption. The annual effective interest rate was 5.21%. |
2023 Convertible note [Member] | |
Schedule of net carrying amount | The net carrying amount of the 2023 Convertible Notes were as follows: December 31, 2021 2020 Principal outstanding $ 442,750 $ 442,750 Unamortized debt discount (1) - (57,435 ) Unamortized debt issuance costs (1) (3,128 ) (4,275 ) Converted to shares (80,083 ) (179 ) Net carrying amount $ 359,539 $ 380,861 The Company recognized interest expense on the 2023 Convertible Notes as follows: Year ended December 31, 2021 2020 2019 Amortization of debt discount and issuance costs (1) $ 2,184 $ 22,325 $ 20,938 (1) Prior to the early adoption of ASU 2020-06 on January 1, 2021, the Company accounted for its notes as separate liability and equity components. The comparative figures represent the debt discount and issuance costs related to the liability component prior to the early adoption. The annual effective interest rate was 6.20%. |
LEASE (Tables)
LEASE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Components of Lease Cost | December 31, 2021 2020 Lease cost: Fixed cost and variable payments $ 27,124 $ 21,104 Short-term lease cost 1,619 1,854 Total operating lease cost $ 28,743 $ 22,958 |
Schedule of Supplemental Cash Flow Information | December 31, 2021 2020 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ (26,688 ) $ (19,061 ) Weighted average remaining operating lease term 6.12 6.57 Weighted average discount rate operating lease 2.4 % 4.1 % |
Schedule of Future Minimum Lease Payments of Operating Lease Liabilities | Fiscal Years Ending December 31, Operating Leases 2022 $ 29,202 2023 22,418 2024 16,321 2025 14,954 2026 12,929 After 2026 41,646 Total undiscounted lease payments $ 137,470 Less: Imputed interest 26,505 Present value of lease liabilities $ 110,965 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |
Composition of Shares Capital | Year ended December 31, 2021 2020 2019 Cost of revenues $ 15,462 $ 9,127 $ 5,854 Research and development 70,020 76,883 56,161 Selling and marketing 33,853 22,845 18,458 General and administrative 102,056 38,458 28,864 Total share-based compensation expense $ 221,391 $ 147,313 $ 109,337 |
Schedule of Stock Options Granted to Employees Activity | Number of options Weighted average exercise price Weighted Average remaining contractual term (in years) Aggregate intrinsic value Balance at December 31, 2020 4,618,380 $ 74.31 6.74 $ 812,500 Granted 712,485 250.71 Exercised (531,788 ) 62.87 Forfeited (81,877 ) 107.62 Balance at December 31, 2021 4,717,200 101.66 6.32 339,012 Exercisable at December 31, 2021 3,213,149 65.72 5.39 305,280 Vested and expected to vest at December 31, 2021 4,647,663 $ 100.60 6.29 $ 337,290 |
Schedule of Stock Option Valuation Assumptions - Compensation to Employees | Year ended December 31, 2021 2020 2019 Expected volatility 48.91%-52.22% 42.26%-49.24% 42.60%-45.24% Expected dividends 0% 0% 0% Expected term (in years) 4.85-4.91 4.84-4.99 4.94-4.99 Risk free rate 0.44%-1.22% 0.25%-1.40% 1.51%-2.47% Year ended December 31, 2021 2020 2019 Expected volatility 56.94%-59.23% 34.52%-83.3% 31.88%-54.49% Expected dividends 0% 0% 0% Expected term (in years) 0.5 0.5 0.5 Risk free rate 0.06%-0.07% 0.13%-0.95% 1.89%-2.52% |
Summary of Options Data | Year ended December 31, 2021 2020 2019 Weighted-average grant date fair value of options granted, per optionz $ 127.36 $ 68.91 $ 53.67 Total intrinsic value of the options exercised $ 114,113 $ 436,187 $ 128,003 Total fair value of shares vested $ 49,045 $ 40,367 $ 33,316 |
Schedule of Options Outstanding and Exercisable | Exercise price (range) Options outstanding as of December 31, 2021 Weighted average remaining contractual term Options exercisable as of December 31, 2021 Weighted average remaining contractual term (years) (years) 0-19.79 364,941 2.19 357,975 2.07 19.8-21.13 563,467 3.71 563,467 3.71 21.14-51.32 243,431 4.08 238,431 4.06 51.33-56.61 398,038 5.12 398,038 5.12 56.62-61.75 648,082 6.12 579,583 6.12 61.76-101.67 332,623 6.57 242,169 6.43 101.68-102.67 603,279 7.12 380,074 7.12 102.68-142.09 237,781 7.59 137,373 7.48 142.1-143.13 520,670 8.14 214,450 8.14 143.14-353.09 804,888 9.18 101,589 8.83 4,717,200 6.32 3,213,149 5.39 |
Schedule Stock Options Outstanding and Exercisable to Non-Employees | Grant Date Options outstanding as of December 31, 2021 Exercise price Exercisable as of December 31, 2021 Exercisable through January 9, 2013 3,400 $ 2.34 3,400 January 9, 2023 |
Schedule of Restricted Stock Unit Activity | Number of shares Weighted average grant date fair value per share Unvested as of December 31, 2020 2,078,427 $ 150.87 Granted 1,303,693 243.47 Vested (935,912 ) 139.15 Forfeited (220,759 ) 196.20 Unvested as of December 31, 2021 2,225,449 $ 205.31 |
Schedule of Total Accumulated Other Comprehensive Loss, Net | Year ended December 31, 2021 Marketable securities Cash flow Total Beginning balance, net $ 3,768 $ 5,638 $ 9,406 Other comprehensive income before reclassifications, net (4,672 ) 119 (4,553 ) Amounts reclassified from accumulated other comprehensive income to earnings: Cost of revenues - (279 ) (279 ) Research and development, net - (3,644 ) (3,644 ) Selling and marketing - (1,217 ) (1,217 ) General and administrative - (740 ) (740 ) Financial income (expenses), net (29 ) - (29 ) Total accumulated other comprehensive income, net $ (933 ) $ (123 ) $ (1,056 ) Year ended December 31, 2020 Marketable Cash flow Total Beginning balance, net $ 852 $ 505 $ 1,357 Other comprehensive income before reclassifications, net 2,962 11,425 14,387 Amounts reclassified from accumulated other comprehensive income to earnings: Cost of revenues - (269 ) (269 ) Research and development, net - (3,995 ) (3,995 ) Selling and marketing - (1,300 ) (1,300 ) General and administrative - (728 ) (728 ) Financial income (expenses), net (46 ) - (46 ) Total accumulated other comprehensive income, net $ 3,768 $ 5,638 $ 9,406 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income (Loss) before Taxes on Income | Year ended December 31, 2021 2020 2019 Domestic $ (72,066 ) $ (153,173 ) $ (86,703 ) Foreign 19,059 1,295 1,553 Loss before taxes on income $ (53,007 ) $ (151,878 ) $ (85,150 ) |
Schedule of Deferred Income Taxes | December 31, 2021 2020 Deferred tax assets: Net operating loss carryforward $ 11,015 $ 30,481 Capital losses carry-forwards - 1 Operating lease liabilities 18,806 16,495 Research and development expenses carryforward 33,913 1,742 Share-based compensation 28,452 18,242 Depreciation differences 1,296 582 Accrued employees costs 4,546 3,506 Intangible assets - 358 Tax advances 1,241 4,032 Other 1,635 139 Deferred tax assets 100,904 75,578 Valuation allowance (78,790 ) (34,157 ) Deferred tax liabilities: Convertible notes $ - $ 19,415 Unrealized gains on marketable and other equity securities 72,626 15,343 Property and equipment 1,900 1,740 Operating lease ROU assets 17,136 14,999 Acquired Intangible assets (1) 2,936 1,880 Other 319 1,574 Deferred tax liabilities $ 94,917 $ 54,951 Deferred taxes are included in the consolidated balance sheets, as follows: Long-term receivables $ - $ 1,813 Long-term liabilities $ 72,803 $ 15,343 |
Schedule of Income Taxes | Year ended December 31, 2021 2020 2019 Current $ 10,621 $ (535 ) $ 3,309 Deferred 53,581 15,524 (711 ) $ 64,202 $ 14,989 $ 2,598 Domestic $ 59,053 $ 16,193 $ (1,981 ) Foreign 5,149 (1,204 ) 4,579 $ 64,202 $ 14,989 $ 2,598 |
Reconciliation of Effective Tax Rate to Statutory Rate | Year ended December 31, 2021 2020 2019 Loss before taxes on income $ (53,007 ) $ (151,878 ) $ (85,150 ) Statutory tax rate 23 % 23 % 23 % Theoretical income tax expense (12,192 ) (34,932 ) (19,585 ) Deferred tax assets for which valuation allowance was provided 40,520 29,485 10,390 Non-deductible option expenses (2,245 ) (5,529 ) (443 ) Non-deductible expenses (1,202 ) 627 2,280 Tax adjustment in respect of different tax rate of foreign subsidiary 4,171 345 (256 ) Preferred enterprise benefits 37,001 23,700 8,163 Rate change impact - (57 ) (93 ) Intra-entity intellectual property transfer (3,913 ) - 196 different tax rate - 372 573 Foreign tax - - 102 Uncerain tax positions 416 - - Other 1,646 978 1,270 Income tax expense $ 64,202 $ 14,989 $ 2,598 |
Schedule of reconciliation of the opening and closing amounts of total unrecognized tax benefits | Year ended December 31, 2021 2020 2019 Opening balance $ 1,811 $ 2,030 $ 334 Increases (decrease) related to previous and current year tax positions 3,858 (219 ) 1,696 Closing balance $ 5,669 $ 1,811 $ 2,030 |
FINANCIAL INCOME, NET (Tables)
FINANCIAL INCOME, NET (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Nonoperating Income (Expense) [Abstract] | |
Schedule of Financial Income, Net | Year ended December 31, 2021 2020 2019 Bank charges $ (761 ) $ (539 ) $ (533 ) Income (expenses) related to hedging activity 6,408 (5,529 ) 963 Amortization of debt discount and issuance costs (5,298 ) (29,954 ) (20,938 ) Exchange rate loss (6,711 ) (2,352 ) (2,905 ) Net gains related to equity securities 267,831 69,042 - Total income (expenses ) 261,469 30,668 (23,413 ) Interest income 10,474 16,391 19,792 Total financial income (expenses), net $ 271,943 $ 47,059 $ (3,621 ) |
BASIC AND DILUTED NET LOSS PE_2
BASIC AND DILUTED NET LOSS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted Net Loss Per Share | Year ended December 31, 2021 2020 2019 Numerator: Net loss available to shareholders of ordinary shares $ (117,209 ) $ (166,867 ) $ (87,748 ) Denominator: Shares used in computing net loss per ordinary shares, basic and diluted 57,004,154 54,425,056 50,504,698 |
Summary of Reconciliation of Basic Weighted Average Number of Shares | Year ended December 31, 2021 2020 2019 Shares used in computing net loss per ordinary shares, basic and diluted 57,004,154 54,425,056 50,504,698 The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: Share options 4,720,600 4,621,780 7,447,519 Restricted share units 2,225,516 2,078,427 2,125,440 Convertible Notes 3,969,514 4,530,284 3,104,251 10,915,630 11,230,491 12,677,210 |
SEGMENTS, CUSTOMERS AND GEOGR_2
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Schedule of Revenues by Geographical Areas | Year ended December 31, 2021 2020 2019 North America (*) $ 731,251 $ 559,431 $ 411,354 Europe 334,677 251,597 195,324 Latin America 55,244 51,053 51,108 Asia and others 148,485 122,286 99,881 $ 1,269,657 $ 984,367 $ 757,667 (*) Includes revenue from the United States in amount of $363,431 $481,098 and $588,886 for 2019, 2020 and 2021, respectively. |
Schedule of Long-lived Assets by Geographical Areas | December 31, 2021 2020 Israel $ 54,440 $ 56,684 Europe and Asia 44,047 15,233 America 53,045 52,352 $ 151,532 $ 124,269 |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Significant Accounting Policies [Line Items] | ||||
Advertising expense | $ 284,540,000 | $ 282,804,000 | $ 187,318,000 | |
Severance pay expenses | $ 22,413,000 | $ 15,737,000 | 12,042,000 | |
Severance pay rate | 8.33% | |||
Weighted average interest rates of short-term deposits | 0.77% | 1.21% | ||
Restricted deposits, weighted average interest rate | 0.63% | 0.038% | ||
Foreign currency derivative fair value, net | $ 394,000 | $ 6,841,000 | ||
Maximium plan contribution, percent of annual salary | 100.00% | |||
Maximum annual contribution to plan, per employee | $ 19,500 | |||
Employer matching contribution, percent of employee's contribution | 4.00% | |||
Defined contribution plan expenses | $ 2,271,000 | 1,117,000 | 727,000 | |
Income (expenses) related to hedging activity | 6,408,000 | (5,529,000) | 963,000 | |
Accumulated income (loss) on derivatives | (5,761,000) | 5,133,000 | 1,881,000 | |
Grants | 509,000 | 957,000 | 852,000 | |
Deferred commissions | 3,187,000 | 1,072,000 | ||
Amortization expenses in connection with deferred commissions | 110,000 | 2,000 | ||
Capitalization of software development costs | 2,519,000 | 575,000 | 778,000 | |
Price allocated to remaining performance obligations | $ 611,217,000 | |||
Percentage of remaining performance obligation | 79.00% | |||
Company’s equity investments in privately held companies | $ 11,477,000 | 72,646,000 | ||
Privately held company, investment amount | 96,222,000 | |||
Unrealized gains related to revaluation of its equity investments in privately held companies | 2,833,000 | 67,822,000 | ||
Unrealized gains of investment transferred to marketable securities | 3,946,000 | |||
Decrease to accumulated deficit from early adoption of ASU 2020-06 using the modified retrospective approach | 53,527,000 | |||
Decrease to additional paid-in capital from early adoption of ASU 2020-06 using the modified retrospective approach | 215,712,000 | |||
Increase to Convertible Senior Notes | 162,185,000 | |||
Understatement of accumulated deficit | (648,138,000) | (584,456,000) | ||
Certain Employees Over 50 Years Of Age [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Maximum annual contribution to plan, per employee | 26,000 | |||
Not Designated as Hedging Instrument [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, Notional Amount | 259,903,000 | |||
Foreign currency derivative fair value, net | 476,000 | (1,719,000) | ||
Designated as Hedging Instrument [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Derivative, Notional Amount | 156,806,000 | |||
Accumulated income (loss) on derivatives | 296,000 | 6,841,000 | ||
IIA [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Grants | 0 | 16,000 | 758,000 | |
EIC [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Grants | $ 9,000 | 120,000 | 21,000 | |
Revision of Prior Period, Error Correction, Adjustment [Member] | ||||
Significant Accounting Policies [Line Items] | ||||
Deferred revenues, understated | 36,177,000 | |||
Deferred expenses, overstated | 21,660,000 | |||
Understatement of accumulated deficit | $ 14,517,000 | $ 12,804,000 | $ 11,470,000 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule Of Property Plant And Equipment Estimated Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Computers, peripheral equipment and electronic equipment | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 33.00% |
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% |
Internal use software [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 33.00% |
Office furniture and equipment | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 6.00% |
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% |
Vehicles [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual depreciation rate | 15.00% |
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 intagible assets useful lives) (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 8 years |
Customer relations [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 4 years |
Customer relations [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Customer data [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 15 years |
Non-Competition agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 3 years |
Domain [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 7 years |
Distribution agreement [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Estimated useful lives | 1 year 6 months |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedule of effects corrections of consolidated statements of comprehensive loss ) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues | $ 1,269,657 | $ 984,367 | $ 757,667 |
Cost of Revenues | 488,579 | 313,019 | 194,820 |
Gross profit | 781,078 | 671,348 | 562,847 |
Operating loss | (325,534) | (199,055) | (81,584) |
Loss before taxes on income | (53,007) | (151,878) | (85,150) |
Net loss | $ (117,209) | $ (166,867) | $ (87,748) |
Basic and diluted net loss per ordinary share | $ (2.06) | $ (3.07) | $ (1.74) |
As Previously Reported [Member] | |||
Revenues | $ 988,760 | $ 761,088 | |
Cost of Revenues | 315,699 | 196,907 | |
Gross profit | 673,061 | 564,181 | |
Operating loss | (197,342) | (80,250) | |
Loss before taxes on income | (150,165) | (83,816) | |
Net loss | $ (165,154) | $ (86,414) | |
Basic and diluted net loss per ordinary share | $ (3.03) | $ (1.71) | |
Adjustment [Member] | |||
Revenues | $ (4,393) | $ (3,421) | |
Cost of Revenues | (2,680) | (2,087) | |
Gross profit | (1,713) | (1,334) | |
Operating loss | (1,713) | (1,334) | |
Loss before taxes on income | (1,713) | (1,334) | |
Net loss | $ (1,713) | $ (1,334) | |
Basic and diluted net loss per ordinary share | $ (0.04) | $ (0.03) |
FAIR VALUE MEASUREMENTS (Narrat
FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible note | $ 974,074 |
Convertible Note 2023 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible note | 456,068 |
Convertible Note 2025 [Member] | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Convertible note | $ 518,006 |
FAIR VALUE MEASUREMENTS (Schedu
FAIR VALUE MEASUREMENTS (Schedule of fair value hierarchy of financial assets and liabilities measured at fair value on recurring basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Fair Value, Net Asset (Liability) | $ 1,034,162 | $ 852,582 |
Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 189,437 | 20,656 |
Marketable Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 843,856 | 826,804 |
Foreign Currency Derivatives Presented As Contracts Assets [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 3,546 | 7,083 |
Foreign Currency Derivatives Presented As Contracts Liabilities [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (2,677) | (1,961) |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Fair Value, Net Asset (Liability) | 502,371 | 20,656 |
Fair Value, Inputs, Level 1 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 189,437 | 20,656 |
Fair Value, Inputs, Level 1 [Member] | Marketable Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 312,934 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Derivatives Presented As Contracts Assets [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 1 [Member] | Foreign Currency Derivatives Presented As Contracts Liabilities [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Fair Value, Net Asset (Liability) | 531,791 | 831,926 |
Fair Value, Inputs, Level 2 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 2 [Member] | Marketable Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 530,922 | 826,804 |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Derivatives Presented As Contracts Assets [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 3,546 | 7,083 |
Fair Value, Inputs, Level 2 [Member] | Foreign Currency Derivatives Presented As Contracts Liabilities [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | (2,677) | (1,961) |
Fair Value, Inputs, Level 3 [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Fair Value, Net Asset (Liability) | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Money Market Funds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Marketable Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Derivatives Presented As Contracts Assets [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Assets, Fair Value Disclosure | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | Foreign Currency Derivatives Presented As Contracts Liabilities [Member] | ||
Financial Liabilities Fair Value Disclosure [Abstract] | ||
Financial Liabilities Fair Value Disclosure | $ 0 | $ 0 |
MARKETABLE SECURITIES (Narrativ
MARKETABLE SECURITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||
Interest receivable | $ 2,635 | $ 4,376 |
Marketable equity securities with readily determinable fair values | 312,934 | |
Unrealized gain | $ 249,561 |
MARKETABLE SECURITIES (Schedule
MARKETABLE SECURITIES (Schedule of Marketable Securities Calssified as Available-for-sale Securities) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Fair value | $ 456,515 | $ 289,927 |
Less Than A Year [Member] | ||
Amortized cost | 208,917 | 289,407 |
Gross unrealized gains | 594 | 568 |
Gross unrealized losses | (49) | (48) |
Fair value | 209,462 | 289,927 |
Government and corporate debentures - fixed interest rate Less Than A Year [Member] | ||
Amortized cost | 196,408 | 244,434 |
Gross unrealized gains | 583 | 526 |
Gross unrealized losses | (49) | (48) |
Fair value | 196,942 | 244,912 |
Government Sponsored Enterprises Less Than A Year [Member] | ||
Amortized cost | 2,501 | 10,006 |
Gross unrealized gains | 1 | 32 |
Gross unrealized losses | 0 | 0 |
Fair value | 2,502 | 10,038 |
Government and corporate debentures - floating interest rate Less Than A Year[Member] | ||
Amortized cost | 10,008 | 34,967 |
Gross unrealized gains | 10 | 10 |
Gross unrealized losses | 0 | 0 |
Fair value | 10,018 | 34,977 |
More Than A Year Through Five Years [Member] | ||
Amortized cost | 322,938 | 533,115 |
Gross unrealized gains | 240 | 3,912 |
Gross unrealized losses | (1,718) | (150) |
Fair value | 321,460 | 536,877 |
Government and corporate debentures - fixed interest rate More Than A Year Through Five Years [Member] | ||
Amortized cost | 303,429 | 494,520 |
Gross unrealized gains | 239 | 3,821 |
Gross unrealized losses | (1,636) | (143) |
Fair value | 302,032 | 498,198 |
Government-sponsored enterprises More Than A Year Through Five Years [Member] | ||
Amortized cost | 16,460 | 21,264 |
Gross unrealized gains | 0 | 67 |
Gross unrealized losses | (79) | 0 |
Fair value | 16,381 | 21,331 |
Government and corporate debentures - floating interest rate More Than A Year Through Five Years [Member] | ||
Amortized cost | 3,049 | 17,331 |
Gross unrealized gains | 1 | 24 |
Gross unrealized losses | (3) | (7) |
Fair value | $ 3,047 | $ 17,348 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Government authorities | $ 4,634 | $ 7,381 |
Hedging transaction asset | 3,546 | 7,083 |
Prepaid expenses | 16,678 | 13,984 |
Other current assets | 8,019 | 12,218 |
Total prepaid expenses and other current assets | $ 32,877 | $ 40,666 |
PROPERTY AND EQUIPMENT, NET (Na
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment, Net [Abstract] | ||
Reduction to the cost and accumulated depreciation of fully depreciated equipment no longer in use | $ 5,652 | $ 5,923 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of composition of property and equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property, Plant and Equipment [Line Items] | ||
Cost | $ 100,462 | $ 77,611 |
Less accumulated depreciation | 50,025 | 41,748 |
Depreciated cost | 50,437 | 35,863 |
Leasehold improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 53,011 | 41,101 |
Computers, peripheral equipment and electronic equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 35,204 | 27,449 |
Internal use software [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 4,983 | 2,467 |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Cost | 7,010 | 6,464 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Cost | $ 254 | $ 130 |
PROPERTY AND EQUIPMENT, NET (_2
PROPERTY AND EQUIPMENT, NET (Schedule of depreciation expense related to property and equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 13,929 | $ 14,610 | $ 12,126 |
Cost of revenues | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 3,186 | 2,654 | 1,946 |
Research and development, net | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 6,427 | 7,703 | 6,401 |
Selling and marketing | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | 2,939 | 2,993 | 2,244 |
General and administrative | |||
Property, Plant and Equipment [Line Items] | |||
Depreciation | $ 1,377 | $ 1,260 | $ 1,535 |
BUSINESS COMBINATION (Narrative
BUSINESS COMBINATION (Narrative) (Details) - Three privately held companies [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($) | |
Business Acquisition [Line Items] | |
Percentage acquired | 100.00% |
Aggregate purchase consideration | $ 46,629 |
Amount of convertible loan agreement | 1,047 |
Payment of compensation of issuance of equity and cash | $ 19,167 |
Weighted-average useful life of identified intangible assets acquired | 6 years 8 months 12 days |
Acquisition related expense | $ 602 |
BUSINESS COMBINATION (Schedule
BUSINESS COMBINATION (Schedule of Fair Values of Assets Acquired and Liabilities Assumed) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 49,300 | $ 24,235 | |
Cash consideration paid | 42,729 | $ 6,626 | $ 0 |
Three privately held companies [Member] | |||
Business Acquisition [Line Items] | |||
Cash | 2,853 | ||
Trade receivables | 378 | ||
Prepaid expenses and other current assets | 124 | ||
Intangible assets | 25,918 | ||
Goodwill | 25,065 | ||
Total Assets | 54,338 | ||
Current liabilities | 3,698 | ||
Deferred tax liability | 4,011 | ||
Total Liabilities | 7,709 | ||
Cash consideration paid | 45,582 | ||
Fair value of previous investment | 1,047 | ||
Total purchase consideration | $ 46,629 |
INTANGIBLE ASSETS, NET (Schedul
INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Cost: | ||
Intangible assets, gross | $ 59,472 | $ 33,554 |
Less accumulated amortization | 19,225 | 14,273 |
Intangible assets, net | 40,247 | 19,281 |
Technology-Based Intangible Assets [Member] | ||
Cost: | ||
Intangible assets, gross | 28,795 | 9,614 |
Customer Relationships [Member] | ||
Cost: | ||
Intangible assets, gross | 17,663 | 11,054 |
Noncompete Agreements [Member] | ||
Cost: | ||
Intangible assets, gross | 128 | 0 |
Customer data [Member] | ||
Cost: | ||
Intangible assets, gross | 12,043 | 12,043 |
Internet Domain Names [Member] | ||
Cost: | ||
Intangible assets, gross | 552 | 552 |
Distribution Rights [Member] | ||
Cost: | ||
Intangible assets, gross | $ 291 | $ 291 |
INTANGIBLE ASSETS, NET (Sched_2
INTANGIBLE ASSETS, NET (Schedule of Estimated Amortization Expense) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Estimated amortization expense | ||
2022 | $ 6,259 | |
2023 | 5,963 | |
2024 | 5,877 | |
2025 | 4,829 | |
Thereafter | 17,319 | |
Intangible assets, net | $ 40,247 | $ 19,281 |
INTANGIBLE ASSETS, NET (Sched_3
INTANGIBLE ASSETS, NET (Schedule of amortization of intangible assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 4,952 | $ 2,577 | $ 4,588 |
Cost of revenues | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 2,030 | 316 | 1,951 |
Selling and marketing | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | 2,918 | 2,257 | 2,629 |
General and administrative | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of Intangible Assets | $ 4 | $ 4 | $ 8 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Other Liabilities, Current [Abstract] | ||
Accrued expenses | $ 32,812 | $ 18,989 |
Government authorities | 26,911 | 26,008 |
Hedging transaction liability | 2,677 | 1,961 |
Uncertain tax positions | 416 | 1,811 |
Total accrued expenses and other current liabilities | $ 62,816 | $ 48,769 |
CONVERTIBLE NOTES (Narrative) (
CONVERTIBLE NOTES (Narrative) (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021USD ($)$ / shares | Dec. 31, 2020 | Jan. 31, 2021 | |
2025 Convertible notes [Member] | ||||
Principal amount | $ 575,000 | |||
Coupon rate | 0.00% | |||
Maturity date | Aug. 15, 2025 | |||
Conversion rate | $ / shares | $ 2.4813 | |||
Effective interest rate | 0.56% | 5.21% | ||
Debt issuance costs | $ 15,712 | |||
2025 Convertible notes [Member] | Ordinary shares [Member] | ||||
Principal amount | $ 1,000 | |||
Conversion rate | $ / shares | $ 403.01 | |||
2023 Convertible note [Member] | ||||
Principal amount | $ 442,750 | |||
Coupon rate | 0.00% | |||
Maturity date | Jan. 1, 2023 | |||
Conversion rate | $ / shares | $ 7.0113 | |||
Effective interest rate | 0.58% | 6.20% | ||
Debt issuance costs | $ 12,601 | |||
2023 Convertible note [Member] | Ordinary shares [Member] | ||||
Principal amount | $ 1,000 | |||
Number of ordinary shares issue for partially conversion of convertible notes | 560,770 | 715 | ||
Conversion rate | $ / shares | $ 142.63 | |||
2025 Capped Call [Member] | ||||
Aggregate amount | $ 46,000 | |||
2023 Capped Call [Member] | ||||
Aggregate amount | $ 45,338 |
CONVERTIBLE NOTES (Schedule of
CONVERTIBLE NOTES (Schedule of Net Carrying Amount) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net carrying amount | $ 922,974 | $ 834,440 | |
Amortization of debt discount and issuance costs | 5,298 | 29,954 | $ 20,938 |
2025 Convertible notes [Member] | |||
Principal outstanding | 575,000 | 575,000 | |
Unamortized debt discount | 0 | (109,655) | |
Unamortized debt issuance costs | (11,565) | (11,766) | |
Net carrying amount | 563,435 | 453,579 | |
Amortization of debt discount and issuance costs | 3,114 | 7,629 | |
2023 Convertible note [Member] | |||
Principal outstanding | 442,750 | 442,750 | |
Unamortized debt discount | 0 | (57,435) | |
Unamortized debt issuance costs | (3,128) | (4,275) | |
Converted to shares | (80,083) | (179) | |
Net carrying amount | 359,539 | 380,861 | |
Amortization of debt discount and issuance costs | $ 2,184 | $ 22,325 | $ 20,938 |
LEASE (Narrative) (Details)
LEASE (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lessor, Lease, Description [Line Items] | ||
Operating leases | $ 70 | $ 506 |
Operating lease commitment amount | $ 506,000 | |
Operating lease term | 10 years | |
Operating lease term extend | 15 years |
LEASE (Schedule of Components o
LEASE (Schedule of Components of Lease Cost) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Lease cost: | ||
Fixed cost and variable payments | $ 27,124 | $ 21,104 |
Short-term lease cost | 1,619 | 1,854 |
Lease, Cost, Total | $ 28,743 | $ 22,958 |
LEASE (Schedule of Supplemental
LEASE (Schedule of Supplemental Cash Flow Information) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows from operating leases | $ (26,688) | $ (19,061) |
Weighted average remaining operating lease | 6 years 1 month 13 days | 6 years 6 months 25 days |
Weighted average discount rate operating lease | 2.40% | 4.10% |
LEASE (Schedule of Future Minim
LEASE (Schedule of Future Minimum Lease Payments of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Lessee Disclosure [Abstract] | |
2022 | $ 29,202 |
2023 | 22,418 |
2024 | 16,321 |
2025 | 14,954 |
2026 | 12,929 |
After 2026 | 41,646 |
Total operating lease payments | 137,470 |
Less: imputed interest | 26,505 |
Present value of lease liabilities | $ 110,965 |
COMMITMENTS AND CONTINGENT LI_2
COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands | Dec. 31, 2021USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantee obligation amount | $ 700 |
SHAREHOLDERS' EQUITY (Narrative
SHAREHOLDERS' EQUITY (Narrative) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2021USD ($)shares | |
Stockholders Equity Note [Line Items] | |
Number of repurchased outstanding ordinary shares | shares | 895,136 |
Value of repurchased outstanding ordinary shares | $ | $ 200,000 |
Unrecognized compensation cost | $ | $ 490,017 |
Weighted-average period for unrecognized compensation cost to be recognized | 2 years 11 months 1 day |
Employee Shares Incentive Plan (the Plan") [Member]" | Employee Stock Option [Member] | |
Stockholders Equity Note [Line Items] | |
Shares available for future grant | shares | 2,907,140 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock-Based Compensation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 221,391 | $ 147,313 | $ 109,337 |
Cost of Sales [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 15,462 | 9,127 | 5,854 |
Research and Development Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 70,020 | 76,883 | 56,161 |
Selling and Marketing Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | 33,853 | 22,845 | 18,458 |
General and Administrative Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Total share-based compensation expense | $ 102,056 | $ 38,458 | $ 28,864 |
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, 2021 | Dec. 31, 2020 | |
Number of options | ||
Outstanding, balance | 4,618,380 | |
Granted | 712,485 | |
Exercised | (531,788) | |
Forfeited | (81,877) | |
Outstanding, balance | 4,717,200 | 4,618,380 |
Exercisable options at the end of the year | 3,213,149 | |
Options vested and expected to vest at the end of the year | 4,647,663 | |
Weighted average exercise price | ||
Outstanding, weighted average exercise price | $ 74.31 | |
Granted, weighted average exercise price | 250.71 | |
Exercised, weighted average exercise price | 62.87 | |
Forfeited, weighted average exercise price | 107.62 | |
Outstanding, weighted average exercise price | 101.66 | $ 74.31 |
Exercisable, weighted average exercise price | 65.72 | |
Options vested and expected to vest at the end of the year | $ 100.60 | |
Additional Disclosures | ||
Outstanding, weighted average remaining contractual term | 6 years 3 months 25 days | 6 years 8 months 26 days |
Exercisable, weighted average remaining contractual term | 5 years 4 months 20 days | |
Options vested and expected to vest, weighted average remaining contractual term | 6 years 3 months 14 days | |
Outstanding at the beginning of the year, aggregate intrinsic value | $ 812,500 | |
Outstanding at the ending of the year, aggregate intrinsic value | 339,012 | $ 812,500 |
Exercisable, aggregate intrinsic value | 305,280 | |
Options vested and expected to vest at the end of the year, aggregate intrinsic value | $ 337,290 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Stock Option Valuation Assumptions) (Details) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 48.91% | 42.26% | 42.60% |
Expected volatility, maximum | 52.22% | 49.24% | 45.24% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Risk free rate, minimum | 0.44% | 0.25% | 1.51% |
Risk free rate, maximum | 1.22% | 1.40% | 2.47% |
Employee Stock Option [Member] | Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 4 years 10 months 6 days | 4 years 10 months 2 days | 4 years 11 months 8 days |
Employee Stock Option [Member] | Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected term | 4 years 10 months 28 days | 4 years 11 months 26 days | 4 years 11 months 26 days |
Equity Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility, minimum | 56.94% | 34.52% | 31.88% |
Expected volatility, maximum | 59.23% | 83.30% | 54.49% |
Expected dividends | 0.00% | 0.00% | 0.00% |
Expected term | 6 months | 6 months | 6 months |
Risk free rate, minimum | 0.06% | 0.13% | 1.89% |
Risk free rate, maximum | 0.07% | 0.95% | 2.52% |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-average grant date fair value of options granted | $ 127.36 | $ 68.91 | $ 53.67 |
Total intrinsic value of the options exercised | $ 114,113 | $ 436,187 | $ 128,003 |
Total fair value of shares vested | $ 49,045 | $ 40,367 | $ 33,316 |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule Of Options Outstanding and Exercisable by Exercise Price) (Details) | 12 Months Ended |
Dec. 31, 2021shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 4,717,200 |
Weighted average remaining contractual life | 6 years 3 months 25 days |
Number of exercisable options outstanding | 3,213,149 |
Weighted average remainging contractual life of options | 5 years 4 months 20 days |
Employee Stock Option [Member] | 0-19.79 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 364,941 |
Weighted average remaining contractual life | 2 years 2 months 8 days |
Number of exercisable options outstanding | 357,975 |
Weighted average remainging contractual life of options | 2 years 25 days |
Employee Stock Option [Member] | 19.8-21.13 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 563,467 |
Weighted average remaining contractual life | 3 years 8 months 15 days |
Number of exercisable options outstanding | 563,467 |
Weighted average remainging contractual life of options | 3 years 8 months 15 days |
Employee Stock Option [Member] | 21.14-51.32 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 243,431 |
Weighted average remaining contractual life | 4 years 29 days |
Number of exercisable options outstanding | 238,431 |
Weighted average remainging contractual life of options | 4 years 21 days |
Employee Stock Option [Member] | 51.33-56.61 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 398,038 |
Weighted average remaining contractual life | 5 years 1 month 13 days |
Number of exercisable options outstanding | 398,038 |
Weighted average remainging contractual life of options | 5 years 1 month 13 days |
Employee Stock Option [Member] | 56.62-61.75 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 648,082 |
Weighted average remaining contractual life | 6 years 1 month 13 days |
Number of exercisable options outstanding | 579,583 |
Weighted average remainging contractual life of options | 6 years 1 month 13 days |
Employee Stock Option [Member] | 61.76-101.67 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 332,623 |
Weighted average remaining contractual life | 6 years 6 months 25 days |
Number of exercisable options outstanding | 242,169 |
Weighted average remainging contractual life of options | 6 years 5 months 4 days |
Employee Stock Option [Member] | 101.68-102.67 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 603,279 |
Weighted average remaining contractual life | 7 years 1 month 13 days |
Number of exercisable options outstanding | 380,074 |
Weighted average remainging contractual life of options | 7 years 1 month 13 days |
Employee Stock Option [Member] | 102.68-142.09 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 237,781 |
Weighted average remaining contractual life | 7 years 7 months 2 days |
Number of exercisable options outstanding | 137,373 |
Weighted average remainging contractual life of options | 7 years 5 months 23 days |
Employee Stock Option [Member] | 142.1-143.13 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 520,670 |
Weighted average remaining contractual life | 8 years 1 month 20 days |
Number of exercisable options outstanding | 214,450 |
Weighted average remainging contractual life of options | 8 years 1 month 20 days |
Employee Stock Option [Member] | 143.14-286.29 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | 804,888 |
Weighted average remaining contractual life | 9 years 2 months 4 days |
Number of exercisable options outstanding | 101,589 |
Weighted average remainging contractual life of options | 8 years 9 months 29 days |
SHAREHOLDERS' EQUITY (Options G
SHAREHOLDERS' EQUITY (Options Granted to Non-Employee Consultants) (Details) - Equity Option [Member] - January 9, 2013 [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
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, 2021$ / sharesshares | |
Number of shares | |
Unvested as of December 31, 2020 | shares | 2,078,427 |
Granted | shares | 1,303,693 |
Vested | shares | (935,912) |
Forfeited | shares | (220,759) |
Unvested as of December 31, 2021 | shares | 2,225,449 |
Weighted average grant date fair value | |
Unvested as of December 31, 2020 | $ / shares | $ 150.87 |
Granted | $ / shares | 243.47 |
Vested | $ / shares | 139.15 |
Forfeited | $ / shares | 196.20 |
Unvested as of December 31, 2021 | $ / shares | $ 205.31 |
SHAREHOLDERS' EQUITY (Schedul_5
SHAREHOLDERS' EQUITY (Schedule of summary of the changes in accumulated other comprehensive income (loss)) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | $ 9,406 | $ 1,357 |
Other comprehensive income before reclassifications, net | (4,553) | 14,387 |
Total accumulated other comprehensive income, net | (1,056) | 9,406 |
Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (279) | (269) |
Research and development, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (3,644) | (3,995) |
Selling and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (1,217) | (1,300) |
General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (740) | (728) |
Financial income (expenses), net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (29) | (46) |
Marketable securities [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | 3,768 | 852 |
Other comprehensive income before reclassifications, net | (4,672) | 2,962 |
Total accumulated other comprehensive income, net | (933) | 3,768 |
Marketable securities [Member] | Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Marketable securities [Member] | Research and development, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Marketable securities [Member] | Selling and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Marketable securities [Member] | General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | 0 | 0 |
Marketable securities [Member] | Financial income (expenses), net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (29) | (46) |
Cash flow [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance, net | 5,638 | 505 |
Other comprehensive income before reclassifications, net | 119 | 11,425 |
Total accumulated other comprehensive income, net | (123) | 5,638 |
Cash flow [Member] | Cost of revenues [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (279) | (269) |
Cash flow [Member] | Research and development, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (3,644) | (3,995) |
Cash flow [Member] | Selling and marketing [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (1,217) | (1,300) |
Cash flow [Member] | General and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | (740) | (728) |
Cash flow [Member] | Financial income (expenses), net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Amounts reclassified from accumulated other comprehensive income, net | $ 0 | $ 0 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Income Tax Disclosure [Line Items] | ||||||
Corporate income tax rate | 23.00% | 23.00% | 23.00% | |||
Income tax expense for US tax purpose | $ 8,152 | |||||
Minimum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Corporate income tax rate | 22.00% | 21.00% | ||||
Maximum [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Corporate income tax rate | 35.00% | |||||
Domestic Country [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Corporate income tax rate | 23.00% | 24.00% | 25.00% | |||
Operating loss carry-forwards | $ 97,784 | |||||
Foreign Country [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Operating loss carry-forwards | $ 63,904 |
INCOME TAXES (Income (Loss) Bef
INCOME TAXES (Income (Loss) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (72,066) | $ (153,173) | $ (86,703) |
Foreign | 19,059 | 1,295 | 1,553 |
Loss before taxes on income | $ (53,007) | $ (151,878) | $ (85,150) |
INCOME TAXES (Deferred Income T
INCOME TAXES (Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Deferred tax assets: | |||
Net operating loss carryforwards | $ 11,015 | $ 30,481 | |
Capital losses carry-forwards | 0 | 1 | |
Operating lease liabilities | 18,806 | 16,495 | |
Research and development expenses carryforward | 33,913 | 1,742 | |
Share-based compensation | 28,452 | 18,242 | |
Depreciation differences | 1,296 | 582 | |
Accrued employees costs | 4,546 | 3,506 | |
Intangible assets | 0 | 358 | |
Tax advances | 1,241 | 4,032 | |
Other | 1,635 | 139 | |
Deferred tax assets | 100,904 | 75,578 | |
Valuation allowance | (78,790) | (34,157) | |
Deferred tax liabilities: | |||
Convertible notes | 0 | 19,415 | |
Unrealized gains on marketable and other equity securities | 72,626 | 15,343 | |
Property and equipment | 1,900 | 1,740 | |
Operating lease ROU assets | 17,136 | 14,999 | |
Acquired Intangible assets | [1] | 2,936 | 1,880 |
Other | 319 | 1,574 | |
Deferred tax liabilities | 94,917 | 54,951 | |
Long term receivables [Member] | |||
Deferred tax assets: | |||
Deferred tax assets | 0 | 1,813 | |
Long term liabilities [Member] | |||
Deferred tax liabilities: | |||
Deferred tax liabilities | $ 72,803 | $ 15,343 | |
[1] | In 2021, the Company completed an intra-entity transfer from US to Israel of certain intangible property (“IP”) rights associated with subsidiaries’ technology platform. This transfer resulted in income for US tax purposes of approximately $8,152 in 2021. As a result of the IP transfer, the Company utilized NOLs and consequently released the valuation allowance. |
INCOME TAXES (Schedule of Curre
INCOME TAXES (Schedule of Current and Deferred Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Current | $ 10,621 | $ (535) | $ 3,309 |
Deferred | 53,581 | 15,524 | (711) |
Domestic | 59,053 | 16,193 | (1,981) |
Foreign | 5,149 | (1,204) | 4,579 |
Income tax expenses | $ 64,202 | $ 14,989 | $ 2,598 |
INCOME TAXES (Reconciliation of
INCOME TAXES (Reconciliation of Income Tax Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Loss before taxes on income | $ (53,007) | $ (151,878) | $ (85,150) |
Statutory tax rate | 23.00% | 23.00% | 23.00% |
Theoretical income tax expense | $ (12,192) | $ (34,932) | $ (19,585) |
Deferred tax assets for which valuation allowance was provided | 40,520 | 29,485 | 10,390 |
Non-deductible option expenses | (2,245) | (5,529) | (443) |
Non-deductible expenses | (1,202) | 627 | 2,280 |
Tax adjustment in respect of different tax rate of foreign subsidiary | 4,171 | 345 | (256) |
Preferred enterprise benefits | 37,001 | 23,700 | 8,163 |
Rate change impact | 0 | (57) | (93) |
Intra-entity intellectual property transfer | (3,913) | 0 | 196 |
Different tax rate | 0 | 372 | 573 |
Foreign Tax | 0 | 0 | 102 |
Uncerain tax positions | 416 | 0 | 0 |
Other | 1,646 | 978 | 1,270 |
Income tax expenses | $ 64,202 | $ 14,989 | $ 2,598 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Opening balance | $ 1,811 | $ 2,030 | $ 334 |
Increases (decrease) related to previous and current year tax positions | 3,858 | (219) | 1,696 |
Closing balance | $ 5,669 | $ 1,811 | $ 2,030 |
FINANCIAL INCOME, NET (Details)
FINANCIAL INCOME, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Nonoperating Income (Expense) [Abstract] | |||
Bank charges | $ (761) | $ (539) | $ (533) |
Income (expenses) related to hedging activity | 6,408 | (5,529) | 963 |
Amortization of debt discount and issuance costs | (5,298) | (29,954) | (20,938) |
Exchange rate loss | (6,711) | (2,352) | (2,905) |
Net gains related to equity securities | 267,831 | 69,042 | 0 |
Total expenses | 261,469 | 30,668 | (23,413) |
Interest income | 10,474 | 16,391 | 19,792 |
Total financial income (expenses), net | $ 271,943 | $ 47,059 | $ (3,621) |
BASIC AND DILUTED NET LOSS PE_3
BASIC AND DILUTED NET LOSS PER SHARE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Net loss available to shareholders of ordinary shares | $ (117,209) | $ (166,867) | $ (87,748) |
Denominator: | |||
Shares used in computing net loss per ordinary shares, basic and diluted | 57,004,154 | 54,425,056 | 50,504,698 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |||
Shares used in computing net loss per ordinary shares, basic and diluted | 57,004,154 | 54,425,056 | 50,504,698 |
The following items have been excluded from the diluted weighted average number of shares outstanding because they are anti-dilutive: | |||
Stock options | 4,720,600 | 4,621,780 | 7,447,519 |
Restricted share units | 2,225,516 | 2,078,427 | 2,125,440 |
Convertible Notes | 3,969,514 | 4,530,284 | 3,104,251 |
Outstanding options and RSU's excluded from the calculation of the diluted net loss per share | 10,915,630 | 11,230,491 | 12,677,210 |
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, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 1,269,657 | $ 984,367 | $ 757,667 | |
America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | [1] | 731,251 | 559,431 | 411,354 |
Europe and Asia [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 334,677 | 251,597 | 195,324 | |
Latin America [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 55,244 | 51,053 | 51,108 | |
Asia and others [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | 148,485 | 122,286 | 99,881 | |
USA [Member] | ||||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||||
Revenues | $ 588,886 | $ 481,098 | $ 363,431 | |
[1] | Includes revenue from the United States in amount of $363,431 $481,098 and $588,886 for 2019, 2020 and 2021, respectively. |
SEGMENTS, CUSTOMERS AND GEOGR_4
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Long-lived Assets by Geographical Areas) (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets and ROU | $ 151,532 | $ 124,269 |
Israel [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets and ROU | 54,440 | 56,684 |
Europe and Asia [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets and ROU | 44,047 | 15,233 |
America [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets and ROU | $ 53,045 | $ 52,352 |