Document and Entity Information
Document and Entity Information | 12 Months Ended |
Dec. 31, 2020shares | |
Document Type | 20-F |
Amendment Flag | false |
Document Registration Statement | false |
Document Annual Report | true |
Document Transition Report | false |
Document Shell Company Report | false |
Document Period End Date | Dec. 31, 2020 |
Entity File Number | 001-38866 |
Entity Registrant Name | TUFIN SOFTWARE TECHNOLOGIES LTD. |
Entity Incorporation, State or Country Code | IL |
Entity Address, Address Line One | 5 HaShalom Road |
Entity Address, Address Line Two | ToHa Tower |
Entity Address, City or Town | Tel Aviv |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 6789205 |
Title of 12(b) Security | Ordinary shares, par value NIS 0.015 per share |
Trading Symbol | TUFN |
Name of Exchange on which Security is Registered | NYSE |
Entity Common Stock, Shares Outstanding | 35,972,470 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Accelerated Filer |
Entity Emerging Growth Company | true |
Entity Ex Transition Period | true |
Document Accounting Standard | U.S. GAAP |
Auditor Attestation Flag | true |
Entity Shell Company | false |
Entity Central Index Key | 0001757399 |
Current Fiscal Year End Date | --12-31 |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | FY |
Business Contact [Member] | |
Contact Personnel Name | Yuval Fessler |
Entity Address, Address Line One | 5 HaShalom Road |
Entity Address, Address Line Two | ToHa Tower |
Entity Address, City or Town | Tel Aviv |
Entity Address Country | IL |
Entity Address, Postal Zip Code | 6789205 |
City Area Code | 972 |
Local Phone Number | 612-8118 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 58,449 | $ 118,661 |
Restricted bank deposits | 224 | |
Marketable Securities - short term | 19,586 | |
Accounts receivable (net of allowance for credit losses of $77 and $85 at December 31, 2019 and December 31, 2020, respectively) | 16,674 | 16,222 |
Prepaid expenses and other current assets | 7,159 | 4,773 |
Total current assets | 101,868 | 139,880 |
NON CURRENT ASSETS: | ||
Long-term restricted bank deposits | 3,268 | 2,844 |
Marketable Securities - long term | 22,705 | |
Property and equipment, net | 4,502 | 4,177 |
Operating lease assets | 18,802 | 20,958 |
Deferred costs | 6,348 | 5,640 |
Deferred tax assets | 1,346 | 1,659 |
Other non-current assets | 1,512 | 1,574 |
Total non-current assets | 58,483 | 36,852 |
Total assets | 160,351 | 176,732 |
CURRENT LIABILITIES: | ||
Trade payables | 4,147 | 4,394 |
Employee and payroll accrued expenses | 17,985 | 15,422 |
Other accounts payables | 578 | 1,568 |
Operating lease liabilities - current | 3,185 | 2,533 |
Deferred revenues | 24,940 | 22,725 |
Total current liabilities | 50,835 | 46,642 |
NON-CURRENT LIABILITIES: | ||
Long-term deferred revenues | 12,815 | 12,838 |
Non-Current operating lease liabilities | 20,240 | 22,000 |
Other non-current liabilities | 1,282 | 930 |
Total non-current liabilities | 34,337 | 35,768 |
Total liabilities | 85,172 | 82,410 |
COMMITMENTS AND CONTINGENCIES | ||
SHAREHOLDERS' EQUITY: | ||
Ordinary shares of NIS 0.015 par value; 150,000,000 shares authorized at December 31, 2019 and December 31, 2020; 35,230,253 and 35,972,470 shares issued and outstanding at December 31, 2019 and December 31, 2020, respectively | 148 | 145 |
Additional paid-in capital | 178,864 | 162,609 |
Accumulated other comprehensive income | 5 | |
Accumulated deficit | (103,838) | (68,432) |
TOTAL SHAREHOLDERS' EQUITY | 75,179 | 94,322 |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 160,351 | $ 176,732 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($)shares |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowance for credit losses | $ | $ 85 | $ 77 |
Ordinary shares authorized | 150,000,000 | 150,000,000 |
Ordinary shares issued | 35,972,470 | 35,230,253 |
Ordinary shares outstanding | 35,972,470 | 35,230,253 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 100,834 | $ 103,270 | $ 84,981 |
Cost of revenues: | |||
Total cost of revenues | 20,247 | 19,857 | 13,436 |
Gross profit | 80,587 | 83,413 | 71,545 |
Operating expenses: | |||
Research and development | 34,978 | 31,571 | 21,363 |
Sales and marketing | 59,484 | 63,981 | 46,092 |
General and administrative | 20,050 | 14,884 | 6,022 |
Total operating expenses | 114,512 | 110,436 | 73,477 |
Operating loss | (33,925) | (27,023) | (1,932) |
Financial income (loss), net | 114 | (85) | (1,047) |
Loss before taxes on income | (33,811) | (27,108) | (2,979) |
Taxes on income | (1,595) | (1,011) | (1,283) |
Net loss | $ (35,406) | $ (28,119) | $ (4,262) |
Basic and diluted net loss per ordinary share | $ (0.99) | $ (1.04) | $ (0.53) |
Weighted average number of shares used in computing net loss per share - basic and diluted (in thousands) | 35,674 | 27,088 | 8,046 |
Comprehensive Loss | |||
Net loss | $ (35,406) | $ (28,119) | $ (4,262) |
Other comprehensive income: | |||
Unrealized gain from available-for-sale securities | 5 | ||
Total comprehensive loss | (35,401) | (28,119) | (4,262) |
Product [Member] | |||
Revenues: | |||
Total revenues | 38,690 | 47,365 | 42,554 |
Cost of revenues: | |||
Total cost of revenues | 2,940 | 2,716 | 2,324 |
Maintenance and Professional Services [Member] | |||
Revenues: | |||
Total revenues | 62,144 | 55,905 | 42,427 |
Cost of revenues: | |||
Total cost of revenues | $ 17,307 | $ 17,141 | $ 11,112 |
CONSOLIDATED STATEMENTS OF REDE
CONSOLIDATED STATEMENTS OF REDEEMABLE CONVERTIBLE PREFERRED SHARES AND CHANGES IN SHAREHOLDERS' EQUITY (DEFICIT) - USD ($) $ in Thousands | Redeemable Convertible Preferred Stock [Member] | Ordinary shares [Member] | Additional paid-in capital [Member] | Accumulated Other Comprehensive Income [Member] | Accumulated deficit [Member] | Total |
Begining Balance at Dec. 31, 2017 | $ 26,699 | $ 29 | $ 6,994 | $ (36,051) | $ (29,028) | |
Begining Balance, (in Shares) at Dec. 31, 2017 | 16,416,749 | 7,966,612 | ||||
Issuance of ordinary shares upon exercise of options | $ 1 | 162 | 163 | |||
Issuance of ordinary shares upon exercise of options, shares | 299,376 | |||||
Share-based compensation | 3,181 | 3,181 | ||||
Net loss | (4,262) | (4,262) | ||||
Ending Balance at Dec. 31, 2018 | $ 26,699 | $ 30 | 10,337 | (40,313) | (29,946) | |
Ending Balance, (in Shares) at Dec. 31, 2018 | 16,416,749 | 8,265,988 | ||||
Issuance of ordinary shares upon exercise of options | $ 7 | 2,289 | 2,296 | |||
Issuance of ordinary shares upon exercise of options, shares | 1,674,044 | |||||
Share-based compensation | 10,927 | 10,927 | ||||
Conversion of redeemable convertible preferred shares | $ (26,699) | $ 70 | 26,629 | 26,699 | ||
Conversion of redeemable convertible preferred shares, shares | (16,416,749) | 16,416,749 | ||||
Issuance of ordinary shares upon initial public offering, net | $ 38 | 112,427 | 112,465 | |||
Issuance of ordinary shares upon initial public offering, net, shares | 8,873,472 | |||||
Net loss | (28,119) | (28,119) | ||||
Ending Balance at Dec. 31, 2019 | $ 145 | 162,609 | (68,432) | $ 94,322 | ||
Ending Balance, (in Shares) at Dec. 31, 2019 | 35,230,253 | 35,230,253 | ||||
Issuance of ordinary shares upon exercise of options | $ 3 | 1,230 | $ 1,233 | |||
Issuance of ordinary shares upon exercise of options, shares | 742,217 | |||||
Share-based compensation | 15,025 | 15,025 | ||||
Other comprehensive income | $ 5 | 5 | ||||
Net loss | (35,406) | (35,406) | ||||
Ending Balance at Dec. 31, 2020 | $ 148 | $ 178,864 | $ 5 | $ (103,838) | $ 75,179 | |
Ending Balance, (in Shares) at Dec. 31, 2020 | 35,972,470 | 35,972,470 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net loss | $ (35,406) | $ (28,119) | $ (4,262) |
Adjustment to reconcile net loss to net cash provided by (used in) operating activities: | |||
Depreciation | 1,523 | 1,205 | 956 |
Share-based compensation | 15,025 | 10,927 | 3,181 |
Amortization of premium on marketable securities | 95 | ||
Exchange rate differences on cash, cash equivalents and restricted cash | (1,146) | (712) | 380 |
Other | 28 | (67) | |
Change in operating assets and liability items: | |||
Accounts receivable, net | (452) | (1,506) | (3,224) |
Prepaid expenses and other current assets | (2,640) | 928 | (3,895) |
Deferred costs | (665) | (648) | (1,352) |
Deferred taxes and other non-current assets | 375 | (1,994) | (149) |
Trade payables | (247) | 1,027 | 2,456 |
Employee and payroll accrued expenses | 3,275 | 4,191 | 729 |
Other accounts payable and non-current liabilities | (416) | (1,923) | 2,367 |
Net change in operating lease accounts | 1,048 | 2,876 | |
Deferred revenues | 2,192 | 4,099 | 7,507 |
Net cash provided by (used in) operating activities | (17,439) | (9,621) | 4,627 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchase of fixed assets | (2,070) | (2,548) | (1,690) |
Investment in marketable securities | (44,381) | ||
Proceeds from maturities of marketable securities | 2,069 | ||
Other investing activities | (173) | 55 | |
Net cash used in investing activities | (44,382) | (2,721) | (1,635) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Proceeds from initial public offering, net of underwriting discounts | 115,292 | ||
Payments of offering costs related to initial public offering | (2,645) | (130) | |
Proceeds from exercise of stock options | 1,376 | 2,081 | 163 |
Changes in withholding tax related to employee stock plans | (713) | 1,255 | |
Payment of long-term loan | (222) | (667) | |
Net cash provided by (used in) financing activities | 663 | 115,761 | (634) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,146 | 712 | (380) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (60,012) | 104,131 | 1,978 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR | 121,729 | 17,598 | 15,620 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR | 61,717 | 121,729 | 17,598 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||
Cash paid for income taxes | 2,419 | 1,578 | 1,027 |
Cash paid for interest | 4 | 95 | |
Property and equipment purchased but not yet paid | 49 | 271 | 315 |
Unpaid offering costs | 52 | 600 | |
Operating lease liabilities arising from obtaining operating right of use assets | 10,063 | ||
Conversion of redeemable convertible preferred shares | 26,699 | ||
Exercise of share options | $ 85 | $ 228 |
GENERAL
GENERAL | 12 Months Ended |
Dec. 31, 2020 | |
General [Abstract] | |
GENERAL | NOTE 1: GENERAL Business Description Tufin Software Technologies Ltd. (together with its subsidiaries, “Tufin” or the “Company”) is an Israeli company that develops, markets and sells software-based solutions that help organizations visualize, define and enforce a unified security policy across complex, heterogeneous network environments. Tufin’s solutions automate security policy management, and allow organizations to gain visibility and control over their IT and cloud environments. Substantially all of the Company’s sales of products and services worldwide are made through a global network of distributors and resellers, which sell the products and services to their end-user customers. The Company was incorporated as an Israeli company on January 2, 2005 and commenced operations on that date. The Company has incorporated wholly owned subsidiaries in the United States, the United Kingdom, Germany, France, Australia and Romania. In April 2019, the Company completed its initial public offering (“IPO”) in which it sold 8,855,000 ordinary shares to the public, including 1,155,000 ordinary shares pursuant to an option granted to the underwriters. The Company received aggregate net proceeds from the IPO of approximately $112,465 thousand, net of underwriting discounts and offering expenses payable by the Company. Upon the execution of the IPO, the Company’s outstanding redeemable convertible preferred shares were converted into 16,416,749 ordinary shares. |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2020 | |
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 financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes, share-based compensation, leases and revenue recognition, as well as deferred contract costs. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. COVID-19 has rapidly changed market and economic conditions globally and may continue to create significant uncertainty in the macroeconomic environment. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers and its sales cycles, as well as the impact on its employees. Since the spread of the outbreak began to accelerate late in March of 2020, the Company has been monitoring the developments relating to COVID-19, and has been acting to mitigate adverse implications as needed. As part of its actions, the Company has made adjustments to its operations and executed certain cost reduction initiatives, including workforce reduction. The Company considered the impact of COVID-19 on its estimates and assumptions. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. As COVID-19 may continue to evolve and additional information is obtained, the Company may be required to update its estimates and assumptions. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. The Company will continue to monitor the evolving situation and will assess the relevant implications on its consolidated financial statements. F - 8 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS b. Principles of Consolidation The consolidated financial statements comprise the financial statements of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. c. Functional Currency and Foreign Currency Transactions A substantial majority of the Company’s operations are carried out by the Company in Israel and in the United States. The majority of the Company’s revenues are denominated 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 operates. Thus, the functional currency of the Company is the U.S. dollar. Accordingly, monetary balances denominated in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Statement of the Accounting Standard Codification (“ASC”) No. 830 “Foreign Currency Matters” (“ASC No. 830”). All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statement of comprehensive loss as financial income or expenses, as appropriate. d. Cash and Cash Equivalents Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. e. Restricted Bank Deposits As of December 31, 2019 and 2020, the Company’s bank deposits were denominated in U.S. dollars and NIS and bore yearly interest at weighted average deposits rates of 1.44% and 1.39%, respectively. These deposits are primarily used for collateralizing the Company’s lease contracts, credit cards and for the Company’s hedging activities. Restricted bank deposits are classified under current assets and non-current assets based on the expected expiration date of the respective restriction. Bank deposits are presented at their cost, including accrued interest. The Company includes its restricted bank deposits in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows (see also Note 4 to the consolidated financial statements). F - 9 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS f. Marketable Securities The Company accounts for its investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities”. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates the appropriate classifications at each balance sheet date. As of December 31, 2020, all of the Company’s investments in marketable debt securities are classified as available-for-sale. The Company’s available-for-sale marketable debt securities primarily consist of U.S. government, U.S. government agencies and corporate debt. Accordingly, the Company’s marketable debt securities are recorded at fair value on the balance sheet. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recorded in other comprehensive income (loss). Realized gains and losses on sale of marketable debt securities are included in financial income (expense), net in the consolidated statement of comprehensive loss. The cost of marketable securities sold is determined using the specific identification method. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in the Company’s financial income (expenses), net in the consolidated statement of comprehensive loss. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. When the estimated fair value of a debt security is below its amortized cost, the debt security is assessed using the Current Expected Credit Losses model (in accordance with ASU 2016-13) in order to determine what portion of that difference, if any, is caused by expected credit losses. The amortized cost of the debt security will be reduced to its fair value if it is more likely than not that the Company is required to sell the impaired security before recovery of its amortized cost basis, or it has the intention to sell the security. If neither of these conditions are met, the Company determines whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recognized in financial income (expenses), net on the consolidated statements of comprehensive loss. During 2020, the Company did not recognize an allowance for credit losses on its available-for-sale marketable debt securities. g. Accounts Receivable Accounts receivable are recorded based on the invoiced amount and presented in the Company’s consolidated balance sheet net of allowance for credit losses for potential uncollectible amounts. The allowance for credit losses is based on the Company’s assessment of collectability by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when it identifies specific customers with known disputes or collectability issues. In addition, the Company considers a number of factors to assess collectability, including the past due status, creditworthiness of the specific customer, payment history and reasonable and supportable forecasts of future economic conditions, as well as other applicable forward-looking information in order to calculate its estimated credit losses. Changes in the allowance for expected credit losses are recorded under general and administrative expenses in the consolidated statements of comprehensive loss. The Company’s allowance for credit losses for its accounts receivable consists of the following activity: December 31, 2018 2019 2020 (U.S. $ in thousands) Beginning balance $ 63 $ 97 $ 77 Charged to general and administrative 34 31 85 Accounts receivable write-off - (51 ) (77 ) Ending Balance $ 97 $ 77 $ 85 When revenue recognition criteria are not met for a sale transaction that has been billed, the Company does not recognize deferred revenues on the balance sheet or the related account receivable. Accordingly, as of December 31, 2019 and 2020, $22,032 thousand and $22,936 thousand, respectively, were offset from accounts receivable and corresponding amounts were offset from deferred revenues (see Note 8). F - 10 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS h. Leases ASC No. 842 “Leases” (“ASC No. 842”) became effective for the Company on January 1, 2019. The Company adopted ASC No. 842 on January 1, 2019, using a modified retrospective transition approach. The Company has also elected to utilize the available package of practical expedients permitted under the transition guidance within ASC No. 842 which does not require it to reassess the prior conclusions about lease identification, lease classification and initial direct costs. Consequently, financial information was not adjusted, and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The Company determines if an arrangement is a lease at inception. If an arrangement is a lease, the Company determines whether it is an operating lease or a finance lease at the lease commencement date. As of December 31, 2019 and 2020, the Company did not have any finance leases. Operating leases are included in operating lease assets, operating lease liabilities – current, and non-current operating lease liabilities in the Company’s consolidated balance sheets. Operating lease assets represent the Company’s right to control the use of an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The incremental borrowing rate was estimated based on factors such as the lease term, credit standing and the economic environment of the location of the lease. Variable lease payments, including payments based on an index or a rate, are expensed as incurred and are not included within the operating lease asset and operating lease liabilities. The Company does not separate non-lease components from lease components for its leases of real estate. The Company’s lease terms are the noncancelable periods, including any rent-free periods provided by the lessor, and include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Lease costs are recognized on a straight-line basis over the lease term. The Company does not recognize operating lease asset and operating lease liabilities for leases with terms shorter than 12 months. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. i . Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the residual value of the related assets at the following annual rates: % Furniture and fixtures 10 Computers and software 33 Leasehold improvements 10-33 Electronic equipment 15-33 Leasehold improvements are depreciated by the straight-line method over the shorter of the term of the lease (including reasonably assured option periods, if applicable), or the estimated useful life of the improvements. j. Long-Lived Assets The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment” (“ASC No. 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2018, 2019 and 2020, no impairment triggering events were identified. F - 11 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS k. Severance Pay Israeli labor law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under Article 14 of the Severance Compensation Act, 1963 (“Article 14”), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control and management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid. For the Company’s employees in Israel that began employment prior to Article 14, the Company calculates the liability for severance pay based on the most recent salary of these employees multiplied by the number of years of employment as of the Article 14 inception date. These liabilities are presented under other non-current liabilities in the Company’s consolidated balance sheets. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. Expenses incurred under the Company’s severance and pension plans in connection with its Israeli employees, which represent the majority of the Company’s severance expense, for the years ended December 31, 2018, 2019 and 2020, were $2,330 thousand, $3,091 thousand and $3,659 thousand, respectively. In addition, the Company’s employees in other jurisdictions are entitled to certain pension plans and related severance payments in accordance with local laws and practices. These plans are accounted as contribution plans. l. Revenue Recognition The Company follows the five-step model to recognize revenue under ASC 606: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies its performance obligations. For each arrangement the Company assesses whether it is acting as the principal that has promised to provide goods or services to its customers or an agent which arranges for goods or services to be provided by the principal to an end customer. The Company’s revenue is reported net of discounts, sales tax, value added tax and related surcharges. The Company generates revenues from selling (i) software license (perpetual and term-based), (ii) maintenance, (iii) hardware (iv) professional services and (v) software as a service (“SaaS”). The Company sells its products and services primarily through distributors and resellers and also through its direct sales force. The Company determines the appropriate revenue recognition for its contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. The Company classifies the components of revenue as product or services revenue based on the attributes of the underlying performance obligations. Accordingly, software license and hardware are classified as product revenues. F - 12 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company’s contract payment terms typically range between 30 and 120 days. The Company assesses collectability based on several factors, including collection history. The Company elected to disregard the effects of a financing component when the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service is one year or less. Nature of Products and Services The Company’s on-premise software licenses are sold through both perpetual and term-based license agreements. These licensing arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. The Company delivers its software licenses electronically. Electronic delivery occurs when the Company provides the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Hardware revenue is recognized upon delivery which is the point in time at which control has passed. The Company’s contracts with customers for on-premise software licenses include maintenance services and may also include additional professional services, such as training, consulting and implementation. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. Both software updates and technical support have the same pattern of transfer to the customer. Revenues related to maintenance services are recognized ratably over the term of the related maintenance agreement. Revenues related to SaaS are also recognized ratably over the term of the related agreement. Revenues related to professional services are recognized as the services are performed or upon the fulfillment of the performance obligation of the related professional services. Payments received in advance of services performed are deferred and recognized when the related services are performed. In contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of total consideration of the contract. For maintenance and support, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. The Company determines the standalone selling price for sales of licenses using the residual approach as the Company’s licenses are not sold on a standalone basis and due to the high variability of the licenses’ sales prices. For professional services and SaaS, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. m. Deferred Contract Costs The Company accounts for deferred contract costs in accordance with ASC No. 340-40, “Other Assets and Deferred Costs” (“ASC 340-40”). Under ASC 340-40, incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided the Company expects to recover the costs, are deferred. The Company defer contract costs that are recoverable and incremental to obtaining customer sales contracts. These costs include sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are deferred and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately four years. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual period. Amortization expenses related to these costs are primarily included in sales and marketing expenses in the consolidated statements of comprehensive loss. The Company presents deferred contract costs from contracts which are less than 12 months under prepaid expenses and other current assets and deferred contract costs related to contracts that are greater than 12 months under deferred costs (see also Note 8 to the consolidated financial statements). F - 13 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS n. Cost of Revenues Cost of product revenues consist primarily of costs associated with the processing and the delivery of the Company’s software licenses to the customers as well as third-party hardware and related shipping costs. Cost of maintenance and professional services revenues consist primarily of personnel costs responsible for providing maintenance and support and professional services. The Company sources its hardware from a single third-party provider based in the U.S. o. Accounting for Share-Based Compensation The Company accounts for share-based compensation, including stock options and restricted stock units (“RSUs”) in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC 718”). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its stock options awards. The Company’s option pricing model requires the input of highly subjective assumptions, including the expected share price volatility and expected term. Any changes in these highly subjective assumptions would significantly impact the share-based compensation expense. The fair value of stock options granted to employees is estimated at the date of grant using the following assumptions: The risk-free interest rate assumption is based on the implied yield curve, at the time of grant, on U.S. treasury zero-coupon issues with a remaining term equal to the expected term of the Company’s stock options. The dividend yield assumption is based on the Company’s historical experience and expectation of no future dividend payouts and may be subject to substantial changes in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The expected share price volatility is based on the historical volatility of the ordinary shares of comparable companies that are publicly traded, as well as the historical volatility of the Company’s ordinary shares. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The expected option term is calculated using the simplified method, as the Company concludes that currently its historical share option exercise experience does not provide an adequate basis to estimate its expected option term. The fair value of the Company’s ordinary shares underlying the share-based awards as of December 31, 2018 and for the period from January 1, 2019 to April 11, 2019, were estimated using the hybrid method which takes into consideration a probability-weighted of a non-IPO scenario (which is based on the income approach) and an IPO scenario. Commencing April 11, 2019, the Company’s ordinary shares are publicly traded and are measured based on the Company’s share price on the date of grant. The fair value of the Company’s RSUs is measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes compensation expenses for its stock-based option awards and RSUs on the graded vesting attribution method over the requisite service period (primarily a four-year period). Each of the above factors requires the Company to use judgment and make estimates in determining the inputs used for the calculation of the fair value of its stock-based option awards. If the Company were to use different inputs, the fair value of its stock-based option awards could be materially different. p. Research and Development Costs ASC 985 requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the statement of comprehensive loss as incurred. F - 14 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS q. Marketing Expense Marketing expenses consist primarily of marketing campaigns and tradeshows. Marketing expenses are charged to the statement of comprehensive loss, as incurred. Marketing expenses for the years ended December 31, 2018, 2019 and 2020, amounted to $8,093, $10,790 and $7,158 thousand, respectively. r. Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions in which it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” approach under ASC-740, “Income Taxes” (“ASC-740”). The asset and liability approach requires the recognition of deferred taxes based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In determining the appropriate valuation allowances, the Company considers future reversals of existing taxable temporary differences, the most recent projections of future business results, prior earnings history, carryback and carry forward and prudent tax strategies that may enhance the likelihood of realization of a deferred tax asset. Deferred taxes have not been provided for the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is 2) Dividends distributable from the income of foreign subsidiaries as the Company does not expect these ASC-740 also clarifies the accounting and reporting for uncertainties in income tax. ASC-740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company reevaluates these uncertain tax positions on a quarterly basis and makes adjustments as required. The Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions within taxes on income. s. Basic and Diluted Net Loss Per Share: Basic net loss per ordinary share is computed by dividing net loss for each reporting period by the weighted-average number of ordinary shares outstanding during the year. Diluted loss per ordinary share is computed by dividing net loss for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC 260-10 “Earnings Per Share”. The calculation of diluted net loss per share excludes potential share issuances of ordinary shares upon the exercise of share options, unvested RSUs, warrants to purchase ordinary shares and redeemable preferred shares as their effect is anti-dilutive. The total number of shares related to outstanding stock options, warrants to purchase ordinary shares and redeemable preferred shares that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2018 was 6,750,259, 26,667 and 16,416,749 (out of which 27,778 shares represent receipt on account of preferred A shares), respectively. The total number of shares related to outstanding stock options, warrants to purchase ordinary shares and redeemable preferred shares that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2019 was 7,507,811, 26,667 and 16,416,749 (out of which 27,778 shares represent receipt on account of preferred A shares), respectively. The total number of shares related to outstanding stock options and unvested RSUs that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2020 was 6,930,143 and 1,311,702, respectively. F - 15 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS t. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, restricted bank deposits, trade receivables and derivative instruments. The Company’s cash and cash equivalents and restricted bank deposits are invested with major banks in Europe, Israel and the United States. Generally, these investments may be redeemed upon demand and the Company believes that the financial institutions that hold the Company’s cash deposits are financially sound and, accordingly, bear minimal risk. The Company's marketable debt securities consist of investments, which are highly rated by credit agencies, in government, corporate and government sponsored enterprises debentures. The Company's investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type of investment or issuer, in order to reduce credit risk concentrations. The trade receivables of the Company are mainly derived from sales to a diverse set of customers located primarily in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. As of December 31, 2019 and 2020, each of the following distributors comprised more than 10% of the Company’s accounts receivable: December 31, 2019 2020 Customer A 14 % 16 % Customer B 15 % 12 % Customer C 12 % 11 % For purposes of this calculation, the Company assessed distributors by aggregating distributors within the same holding group. u. Derivative Instruments and Hedging Activities The Company is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange rates. As part of the Company’s risk management strategy, it us |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | NOTE 3: FAIR VALUE MEASUREMENT The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, on the consolidated balance sheet: December 31, 2019 2020 (U.S. $ in thousands) Level 2 Level 2 Assets: Marketable securities $ - $ 42,291 Foreign currency exchange derivative instruments 81 295 Liabilities: Foreign currency exchange derivative instruments 7 8 $ 74 $ 42,578 The Company’s marketable securities are classified as Level 2 as these assets are valued using observable data, either directly or indirectly, that may include quoted market prices for similar instruments, broker-dealer quotes, market spreads, nonbinding market prices that are corroborated by observable market data and other observable market information. The Company’s foreign currency exchange derivative financial instruments are classified as Level 2, as they as they represent foreign currency forward and option contracts that are not actively traded and are valued using pricing models that use observable market inputs, including interest rate curves and both forward rates and spot prices for currencies (Level 2 inputs). The fair value of foreign currency exchange derivative instruments was estimated by obtaining current quotes from banks and third-party valuations. Other financial instruments consist mainly of cash and cash equivalents, restricted bank deposits, accounts receivable, accounts payable and other accounts payables. The fair value of these financial instruments approximates their carrying values. |
CASH, CASH EQUIVALENTS AND REST
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH | NOTE 4: CASH, CASH EQUIVALENTS AND RESTRICTED CASH The following table provides a reconciliation of cash, cash equivalents and restricted bank deposits reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. December 31, 2019 2020 (U.S. $ in thousands) Cash and cash equivalents $ 118,661 $ 58,449 Restricted bank deposits 224 - Long-term restricted bank deposits 2,844 3,268 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 121,729 $ 61,717 Amounts included in restricted bank deposits represent those required to be set aside by a contractual agreement with lease, hedging and credit card transactions. |
MARKETABLE SECURITIES
MARKETABLE SECURITIES | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Amortized Cost [Abstract] | |
MARKETABLE SECURITIES | NOTE 5: MARKETABLE SECURITIES The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2020: December 31, 2020 (U.S. dollars in thousands) Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 32,578 $ (5 ) $ 1 $ 32,574 Corporate debentures 9,708 (1 ) 10 9,717 Total $ 42,286 $ (6 ) $ 11 $ 42,291 December 31, 2020 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 19,585 $ 19,586 Due between one and two years 22,701 22,705 Total $ 42,286 $ 42,291 |
PROPERTY AND EQUIPMENT, NET
PROPERTY AND EQUIPMENT, NET | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT, NET | NOTE 6: PROPERTY AND EQUIPMENT, NET December 31, 2019 2020 (U.S. $ in thousands) Property and equipment, net: Cost: Furniture and fixtures $ 1,640 $ 1,883 Computers and software 4,328 4,731 Leasehold improvements 668 907 Electronic equipment 2,129 2,374 8,765 9,895 Less - Accumulated depreciation 4,588 5,393 $ 4,177 $ 4,502 Depreciation expenses were $956 thousand, $ 1,205 thousand and $ 1,523 thousand in the years ended December 31, 2018, 2019 and 2020, respectively. |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
LEASES | NOTE 7: LEASES The Company entered into office lease arrangements where its administrative, research and development, support services and sales and marketing activities are located. Those lease arrangements have remaining terms of up to 9 years. As of December 31, 2020, the Company had operating lease right-of-use (“ROU”) assets of $ 18.8 The components of lease expense during the period presented were as follows: Year Ended December 31, 2019 December 31, 2020 (U.S. $ in thousands) Operating lease expense $ 3,110 $ 3,791 Short-term lease expense 786 545 Total lease expense $ 3,896 $ 4,336 Rent expense for the years ended December 31, 2018 was approximately $2,396 thousand. F - 21 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Supplemental cash flow information related to operating leases during the period presented was as follows: Year Ended December 31, 2019 December 31, 2020 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,602 $ 4,169 ROU assets obtained in exchange for lease liabilities: Operating leases $ 10,063 $ - Lease term and discount rate related to operating leases as of the period presented were as follows: Year Ended December 31, 2019 2020 Weighted-average remaining lease term (in years) 8.4 7.6 Weighted-average discount rate 7.5 % 7.6 % The maturities of lease liabilities under operating leases as of December 31, 2020 are as follows: (U.S. $ in thousands) 2021 4,378 2022 4,393 2023 4,128 2024 3,830 2025 3,307 Thereafter 10,198 Total undiscounted lease payments $ 30,234 Less: Imputed interest (6,809 ) Total lease liabilities $ 23,425 |
DEFERRED REVENUES AND DEFERRED
DEFERRED REVENUES AND DEFERRED COSTS | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
DEFERRED REVENUES AND DEFERRED COSTS | NOTE 8: DEFERRED REVENUES AND DEFERRED COSTS December 31, 2019 2020 (U.S. $ in thousands) Deferred revenues: Deferred product revenues $ 695 $ 1,515 Deferred maintenance and professional services revenues 56,900 59,176 57,595 60,691 Less - amounts offset from accounts receivable (22,032 ) (22,936 ) Deferred revenues 35,563 37,755 The change in deferred revenues: Balance at beginning of year 56,629 57,595 Deferred revenue relating to new sales 40,225 44,105 Revenue recognized during the year (39,259 ) (41,009 ) Balance at end of year 57,595 60,691 Less - amounts offset from accounts receivable (22,032 ) (22,936 ) Deferred revenues $ 35,563 $ 37,755 As of December 31, 2020, the total remaining performance obligations amounted to $ 65,517 Assets Recognized from the Costs to Obtain a Contract with a Customer The Company determined that certain costs related to its sales incentive programs meet the requirements to be capitalized and deferred. These assets are recorded as current and non-current assets. The Company amortizes these deferred costs over the benefit period, currently estimated to be four years. The Company considers the benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. December 31, 2019 2020 (U.S. $ in thousands) Balance at beginning of year $ 5,313 $ 5,962 Additional costs deferred 3,436 3,398 Amortization of deferred costs (2,787 ) (2,733 ) Balance at end of year $ 5,962 $ 6,627 |
HEDGING ACTIVITIES
HEDGING ACTIVITIES | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
HEDGING ACTIVITIES | NOTE 9: HEDGING ACTIVITIES The Company carries out transactions involving foreign currency exchange derivative financial instruments. The transactions are designed to hedge the Company’s exposure in currencies other than the U.S. dollar, but are not designated as an accounting hedge. The Company is primarily exposed to foreign exchange risk with respect to recognized assets and liabilities and forecasted transactions denominated in NIS, Euro and GBP. As of December 31, 2019 and 2020, the notional amounts of the Company’s outstanding foreign currency exchange derivative financial instruments, not designated as accounting hedging instruments, were $22.4 million and $17.6 million, respectively, and were used to reduce foreign currency exposures of the NIS, Euro and GBP. With respect to such derivatives, losses of $337 thousands and gains of $366 thousand and $86 thousand were recognized under financial income (expense), net for the years ended December 31, 2018, 2019 and 2020, respectively. Such gains and losses partially offset the revaluation impact of the balance sheet items, which are also recognized under financial income (expense), net. Balance sheet location Notional Amount Fair Value December 31, 2020 December 31, 2020 (U.S. $ in thousands) Assets derivatives - Foreign currency exchange contracts Other current assets $ 8,796 $ 295 Liability derivatives - Foreign currency exchange contracts Other accounts payables $ 8,796 $ 8 Balance sheet location Notional Amount Fair Value December 31, 2019 December 31, 2019 (U.S. $ in thousands) Assets derivatives - Foreign currency exchange contracts Other current assets $ 11,185 $ 81 Liability derivatives - Foreign currency exchange contracts Other accounts payables $ 11,185 $ 7 |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHAREHOLDERS' EQUITY | NOTE 10: SHAREHOLDERS’ EQUITY a) Share capital Each ordinary share confers upon its holder the right to one vote and to receive dividends as declared by the Board of Directors, which prior to the IPO was subject to the priority rights of holders of preferred shares. In April 2019, the Company completed its IPO in which it sold 8,855,000 ordinary shares to the public, including 1,155,000 ordinary shares pursuant to an option granted to the underwriters. Upon the execution of the IPO, the Company's outstanding redeemable convertible preferred shares were converted into 16,416,749 ordinary shares. The remaining increase in the issued and outstanding ordinary shares during 2019 was attributable to exercises of stock options. Upon the closing of the Company's IPO in April 2019, warrants to purchase 26,667 ordinary shares were exercised on a cashless basis resulting an issuance of 18,472 ordinary shares. The Company’s ordinary shares are traded on the New York Stock Exchange under the ticker symbol “TUFN”. b) Stock-based compensation plans Under the Company’s 2007 Israeli Share Option Plan, as amended in August 2014, September 2015 and July 2017, or the 2007 Plan, its 2008 U.S. Stock Plan, or the 2008 Plan, its 2018 U.S. Equity-Based Incentive Plan, or the 2018 Plan, and the 2019 Equity-Based Incentive Plan, or the 2019 Plan, options exercisable for the Company’s ordinary shares, par value NIS 0.015 per share, may be granted to employees, officers, non-employee consultants and directors of the Company. The 2007 Plan, the 2008 Plan, the 2018 Plan and the 2019 Plan are collectively referred to herein as the Plans. On February 28, 2019, the Company’s board of directors approved the 2019 Plan, which became effective upon shareholder approval on March 21, 2019. The 2019 Plan replaced the 2007 Plan, the 2008 Plan and the 2018 Plan, or the Prior Plans, under which further grants will not be made. The 2019 Plan generally allows for the grant of options, restricted shares, restricted share units and other share-based awards to the Company and its affiliates’ employees. Any share (i) underlying an award under the Plans (in an amount not to exceed 813,515 shares under the Prior Plans) that has expired, or was canceled, terminated, forfeited, repurchased or settled in cash in lieu of the issuance of shares, for any reason, without having been exercised; (ii) tendered to pay the exercise price of an award (or the exercise price or other purchase price of any option or other award under the Prior Plans), or withholding tax obligations with respect to an award (or any awards under the Prior Plans); or (iii) subject to an award (or any award under the Prior Plans) that is not delivered to a grantee because such shares are withheld to pay the exercise price (or of any award under the Prior Plans), or withholding tax obligations with respect to such award (or such other award), will automatically be available for grant under the 2019 Plan. Under the 2019 Plan, options and RSUs generally have a contractual term of ten years from the grant date. Options and RSUs granted become exercisable over the requisite service period, which is normally a four-year period beginning on the grant date, subject to continued service to the Company. As of December 31, 2020, 246,133 shares were available for future equity awards under the 2019 Plan. On January 1, 2021, the reserve pool under the 2019 Plan was increased by 1,798,624 shares. F - 25 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Stock Options A summary of the stock option activity for the year ended December 31, 2020 is as follows: Number of Options Weighted average exercise price Aggregate intrinsic value (U.S. $ in thousands) Balance as of January 1, 2020 7,507,811 $ 8.17 Granted 936,500 $ 10.72 Exercised (742,217 ) $ 1.66 Forfeited (771,951 ) $ 14.51 Balance as of December 31, 2020 6,930,143 $ 8.51 $ 43,041 Exercisable as of December 31, 2020 3,947,211 $ 5.01 $ 34,711 The following table summarizes the Company’s outstanding and exercisable options granted as of December 31, 2020: Options Outstanding Options Exercisable Exercise Price Options outstanding as of December 31, 2020 Weighted average remaining contractual term Options exercisable as of December 31, 2020 Weighted average remaining contractual term (years) (years) $ 0.004 - $ 1.76 3,551,405 8.9 3,029,037 9.3 $ 7.55 - $ 11.70 1,335,866 8.7 285,874 8.1 $ 16.68 - $ 19.21 1,153,275 8.6 321,309 8.6 $ 22.70 - $ 29.74 889,597 8.3 310,991 8.3 6,930,143 8.7 3,947,211 9.0 The total intrinsic value of options exercised for the years ended December 31, 2019 and 2020 was approximately $28,950 thousands and $7,705 thousands, respectively. The fair value of stock options granted was estimated using the Black-Scholes option-pricing model. The assumptions used to value options granted during the year ended December 31, 2019 and 2020 were as follows: Year ended December 31, 2019 2020 Expected volatility 50.4%-65.9% 51.7%-56.2% Expected dividends yields 0% 0% Expected term (in years) 5.5-7.0 5.5-7.0 Risk free rate 1.53%- 2.63% 0.31%-1.03% Weighted average grant date fair value 9.63 5.36 As of December 31, 2020, the Company had 2,982,932 unvested options. As of December 31, 2020, the total unrecognized compensation cost related to all unvested stock options of approximately $8,849 thousands is expected to be recognized as an expense over a weighted-average recognition period of approximately 1.0 year. F - 26 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Restricted Stock Units A summary of the Company’s RSUs activity for the year ended December 31, 2020 is as follows: Number of RSUs Weighted Average Grant Date Fair Value Balance as of January 1, 2020 - $ - Granted 1,346,522 $ 9.23 Vested - $ - Forfeited (34,820 ) $ 9.98 Unvested RSUs as of December 31, 2020 1,311,702 $ 9.21 As of December 31, 2020, the unrecognized compensation cost related to all unvested RSUs of approximately $7.5 million is expected to be recognized as an expense over a weighted-average recognition period of approximately 0.9 year. In the first quarter of 2021, the Company granted certain of its employees 1,233,100 restricted stock units with a vesting period of four years. Stock-based compensation expense for stock options and RSUs included in the Company’s Statements of Comprehensive Loss were allocated as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Cost of revenues $ 634 $ 1,514 $ 2,024 Research and development 731 2,370 4,437 Sales and marketing 1,458 4,849 4,635 General and administrative 358 2,194 3,929 Total share-based compensation expense $ 3,181 $ 10,927 $ 15,025 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 11: INCOME TAXES a. Deferred Tax Assets and Liabilities The components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2020 were as follows: As of December 31, 2019 2020 (U.S. $ in thousands) Deferred tax assets: Tax loss carryforwards $ 9,409 $ 17,543 Research and development 6,141 7,132 Deferred revenue 2,238 1,480 Employee and payroll accrued expenses 891 1,335 Share-based compensation - 389 Operating lease liability 1,013 4,947 Issuance expense - 982 Other 72 89 Total deferred tax assets 19,764 33,897 Deferred tax liabilities: Property and equipment, net (250 ) (289 ) Deferred costs (1,481 ) (1,629 ) Operating lease right-of-use asset (984 ) (4,212 ) Total deferred tax liabilities (2,715 ) (6,130 ) Total deferred tax assets, net $ 17,049 $ 27,767 Less valuation allowance for deferred tax assets (15,390 ) (26,421 ) Deferred tax assets $ 1,659 $ 1,346 The Company’s deferred tax assets are classified entirely in the consolidated balance sheet as non-current assets. Significant judgment is required in determining any valuation allowance recorded against deferred tax assets. In assessing the need for a valuation allowance, the Company considered all available evidence, including past operating results, the most recent projections for taxable income, and prudent and feasible tax planning strategies. The Company reassess its valuation allowance periodically and if future evidence allows for a partial or full release of the valuation allowance, a tax benefit will be recorded accordingly. As of December 31, 2019 and 2020, the Company had recorded a full valuation allowance of $15,390 thousand and $26,421 thousand, respectively, with regard to its deferred taxes, consisting primarily of tax loss carryforwards generated in Israel. A summary of the Company’s valuation allowance activity on deferred tax assets was as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Beginning balance $ 9,511 $ 8,762 $ 15,390 Additions charged to income tax expense - 6,628 11,031 Reductions credited to income tax expense (749 ) - - Ending balance $ 8,762 $ 15,390 $ 26,421 F - 28 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company believes that all future profits of its subsidiaries will be indefinitely reinvested or that there is no expectation to distribute any taxable dividends from these subsidiaries. b. Provision for Income Taxes Loss (Income) before taxes on income for the years ended December 31, 2018, 2019 and 2020 were as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Israeli 4,879 $ 29,560 $ 36,347 Non-Israeli (1,900 ) (2,452 ) (2,536 ) 2,979 $ 27,108 $ 33,811 The components of taxes on income for the years ended December 31, 2018, 2019 and 2020 were as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Current Israeli 105 $ 164 $ 336 Non-Israeli 1,328 1,817 946 1,433 1,981 1,282 Deferred Israeli (1 ) - - Non-Israeli (149 ) (970 ) 313 (150 ) (970 ) 313 Total taxes on income 1,283 $ 1,011 $ 1,595 F - 29 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS A reconciliation of the theoretical tax benefit and actual taxes on income for the years ended December 31, 2018, 2019 and 2020 is set forth below: December 31, 2018 2019 2020 (U.S. $ in thousands) Loss before taxes on income 2,979 $ 27,108 $ 33,811 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical tax benefit 685 6,235 7,777 Increase in income tax expense resulting from: Effect of different tax rates applicable in foreign jurisdictions (399 ) (157 ) (128 ) Operating losses and other temporary differences for which valuation allowance was provided (708 ) (4,972 ) (5,784 ) Permanent differences (756 ) (2,162 ) (3,017 ) Uncertain tax position (91 ) (158 ) (336 ) Other (14 ) 203 (107 ) Actual taxes on income (1,283 ) $ (1,011 ) $ (1,595 ) Uncertain tax positions Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Balance at beginning of year 421 $ 512 $ 670 Additions for tax positions related to the current year 91 158 336 Balance at end of year 512 $ 670 $ 1,006 The Company is subject to income taxes in the U.S., Israel and certain other foreign jurisdictions. The Company files income tax returns in various jurisdictions with varying statutes of limitations. Tax returns of the U.S. subsidiary submitted in the United States through 2014 tax year are considered to be final following the completion of an Internal Revenue Service examination. Tax returns of the Israel entity submitted in Israel through the 2013 tax year are considered to be final following the completion of an Israeli Tax Authorities examination. The expiration of the statute of limitations related to the various other foreign and state income tax returns that the Company and its subsidiaries file vary by state and foreign jurisdiction. F - 30 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS c. Basis of taxation Company incorporated in the U.S. — tax rate of 21%. Company incorporated in Germany — tax rate of 33%. Company incorporated in UK — tax rate of 19%. Company incorporated in France — tax rate of 33%. Tax rates in Israel Company incorporated in Israel — tax rate of 23%. Tax benefits in Israel Under Israel law, including Amendment No. 60 to the Israel law, the Company may be entitled to various tax benefits such as “approved enterprise” or “benefited enterprise” status, subject to meeting certain conditions, including generating taxable income. As of December 31, 2020, the Company does not anticipate taxable income in the foreseeable future. The main potential tax benefits available are the following: 1) In respect of income derived from the benefited enterprises, the Company is entitled to tax exempt during a 2) In the event of distribution of a cash dividend from income which was tax exempt as above, the Company 3) Entitlement to the above benefits is conditioned upon the Company’s fulfilling the conditions stipulated by the Israel tax loss carryforwards Accumulated losses for tax purposes as of December 31, 2020 amounted to approximately $76.3 million and were generated in Israel. These losses may be carried forward and offset against taxable income in the future for an indefinite period. A full valuation allowance was created against the Company’s deferred tax assets generated in Israel, consisting mostly of net operating loss carryovers. Management currently believes that it is more likely than not that the deferred taxes generated in Israel will not be realized in the foreseeable future. |
FINANCIAL INCOME (LOSS), NET
FINANCIAL INCOME (LOSS), NET | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income (loss), Net [abstract] | |
FINANCIAL INCOME (LOSS), NET | NOTE 12: FINANCIAL INCOME (LOSS), NET Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Hedging instrument gain (loss), net $ (337 ) $ 366 $ 86 Bank charges (89 ) (153 ) (175 ) Exchange rate loss, net (418 ) (1,175 ) (49 ) Interest income (expense), net (218 ) 878 347 Amortization of premium on marketable securities - - (95 ) Other, net 15 (1 ) - Total financial income (expenses), net $ (1,047 ) $ (85 ) $ 114 |
ENTITY WIDE DISCLOSURES
ENTITY WIDE DISCLOSURES | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
ENTITY WIDE DISCLOSURES | NOTE 13: ENTITY WIDE DISCLOSURES ASC 280, “Segment Reporting,” establishes standards for reporting information about operating segments. The Company manages its business based on one operating segment and derives revenues from licensing of software, sales of hardware, providing maintenance and technical support and sales of professional services. The following is a summary of revenues within geographic areas: Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Geography: Americas: United States 47,860 $ 55,991 $ 53,334 Other 407 857 1,311 48,267 56,848 54,645 Israel 1,161 1,654 1,493 EMEA (excluding Germany and Israel) 23,181 27,102 27,073 Germany 8,253 12,147 11,548 APAC 4,119 5,519 6,075 Total 84,981 $ 103,270 $ 100,834 Net sales are attributed to geographic areas based on the location of customer. As of December 31, 2018, 2019 and 2020, each of the following distributors comprised more than 10% of the Company’s revenue: December 31, 2018 2019 2020 Customer A 13 % 15 % 15 % Customer B 6 % 9 % 10 % Customer C 10 % 8 % 8 % F - 32 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Disaggregation of Revenue The Company generates revenue from the sale of software products, hardware products, maintenance and support, and professional services. All revenue recognized in the consolidated statement of operations is considered to be revenue from contracts with customers. The following table sets for the disaggregated revenue by revenue type and is consistent with how the Company evaluates its performance obligations: Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Revenues: Software products $ 39,300 $ 44,618 $ 35,898 Hardware products 3,254 2,747 2,792 Support and maintenance 37,155 46,019 50,794 Professional services 5,272 9,886 11,350 Total revenues $ 84,981 $ 103,270 $ 100,834 Property and equipment, net by geographical area were as follows as of December 31, 2018, 2019 and 2020: December 31, 2018 2019 2020 (U.S. $ in thousands) Americas (primarily the United States) 496 $ 959 $ 1,125 EMEA 81 123 108 Israel 1,986 3,095 3,269 2,563 $ 4,177 $ 4,502 |
COMMITMENTS AND CONTINGENT LIAB
COMMITMENTS AND CONTINGENT LIABILITIES | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENT LIABILITIES | NOTE 14: COMMITMENTS AND CONTINGENT LIABILITIES Legal Proceedings The Company and certain of its directors and officers (the “Individual Defendants”) at the time of its initial public offering (“IPO”) were named as defendants in four putative shareholder class action lawsuits filed in the Supreme Court of the State of New York on (1) February 26, 2020, captioned Matt Primozich v. Tufin Software Technologies Ltd., et al., Allen v . Tufin Software Technologies Ltd., et al., Avi Shmuely v. Tufin Software Technologies Ltd., et al., Michael Roche v. Tufin Software Technologies Ltd., et al., In the Tufin State Actions, the plaintiffs, seeking to represent a class of all purchasers and acquirers of the Company’s ordinary shares issued in connection with the Company’s April IPO, allege that the (1) the defendants made material misstatements or failed to disclose material information in the IPO Offering Documents, thereby allegedly violating Section 11 of the Securities Act and (2) the Individual Defendants were “control persons” of the Company by virtue of their positions, and thereby are allegedly liable under Section 15 of the Securities Act. The Roche Action also asserts a claim under Section 12(a)(2) of the Securities Act alleging that defendants issued, caused to be issued, and/or signed the IPO Offering Documents in connection with issuance of stock to shareholders in the IPO. The plaintiffs have filed various motions to consolidate and appoint a lead plaintiff and lead counsel in the Tufin State Actions, and such motions have been fully briefed since August 4, 2020; however, as of February 6, 2021, an order on the motions had not yet been entered. Two federal class actions were also filed in the Southern District of New York: (1) the matter captioned Matthew Ellison v. Tufin Software Technologies Ltd. et al. Michaelson v. Tufin Software Technologies Ltd. et al. The Company is also subject to certain indemnification obligations with respect to the Individual Defendants, IPO Underwriter Defendants, and the SPO Underwriter Defendants, in connection with the Tufin State Actions and Tufin Federal Actions. Based on information currently available and the current stage of the litigation, the Company is unable to reasonably estimate a possible loss or range of possible losses, if any, with regard to the Tufin State Actions and Tufin Federal Actions; therefore, no estimated liability has been recorded in the Company’s consolidated balance sheets as of December 31, 2020. The Company will continue to evaluate information as it becomes known and will record an estimate for losses at the time or times if and when it is probable that a loss will be incurred and the amount of the loss is reasonably estimable. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Use of Estimates | a. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. The Company evaluates on an ongoing basis its assumptions, including those related to contingencies, income taxes, deferred taxes, share-based compensation, leases and revenue recognition, as well as deferred contract costs. The Company’s management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenue and expenses during the reporting periods. Actual results could differ from those estimates. COVID-19 has rapidly changed market and economic conditions globally and may continue to create significant uncertainty in the macroeconomic environment. The extent of the impact of COVID-19 on the Company’s operational and financial performance will depend on certain developments, including the duration and spread of the outbreak, impact on the Company’s customers and its sales cycles, as well as the impact on its employees. Since the spread of the outbreak began to accelerate late in March of 2020, the Company has been monitoring the developments relating to COVID-19, and has been acting to mitigate adverse implications as needed. As part of its actions, the Company has made adjustments to its operations and executed certain cost reduction initiatives, including workforce reduction. The Company considered the impact of COVID-19 on its estimates and assumptions. As of the date of issuance of these financial statements, the Company is not aware of any specific event or circumstance that would require the Company to update its estimates, assumptions and judgments or revise the carrying value of its assets or liabilities. As COVID-19 may continue to evolve and additional information is obtained, the Company may be required to update its estimates and assumptions. Actual results could differ from those estimates and any such differences may be material to the Company’s financial statements. The Company will continue to monitor the evolving situation and will assess the relevant implications on its consolidated financial statements. |
Principles of Consolidation | b. Principles of Consolidation The consolidated financial statements comprise the financial statements of the Company and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. |
Functional Currency and Foreign Currency Transactions | c. Functional Currency and Foreign Currency Transactions A substantial majority of the Company’s operations are carried out by the Company in Israel and in the United States. The majority of the Company’s revenues are denominated 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 operates. Thus, the functional currency of the Company is the U.S. dollar. Accordingly, monetary balances denominated in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Statement of the Accounting Standard Codification (“ASC”) No. 830 “Foreign Currency Matters” (“ASC No. 830”). All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the consolidated statement of comprehensive loss as financial income or expenses, as appropriate. |
Cash and Cash Equivalents | d. Cash and Cash Equivalents Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. |
Restricted Bank Deposits | e. Restricted Bank Deposits As of December 31, 2019 and 2020, the Company’s bank deposits were denominated in U.S. dollars and NIS and bore yearly interest at weighted average deposits rates of 1.44% and 1.39%, respectively. These deposits are primarily used for collateralizing the Company’s lease contracts, credit cards and for the Company’s hedging activities. Restricted bank deposits are classified under current assets and non-current assets based on the expected expiration date of the respective restriction. Bank deposits are presented at their cost, including accrued interest. The Company includes its restricted bank deposits in cash and cash equivalents when reconciling beginning-of-period and end-of-period total amounts shown on the consolidated statement of cash flows (see also Note 4 to the consolidated financial statements). |
Marketable Securities | f. Marketable Securities The Company accounts for its investments in marketable securities in accordance with ASC No. 320, “Investments—Debt and Equity Securities”. The Company determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates the appropriate classifications at each balance sheet date. As of December 31, 2020, all of the Company’s investments in marketable debt securities are classified as available-for-sale. The Company’s available-for-sale marketable debt securities primarily consist of U.S. government, U.S. government agencies and corporate debt. Accordingly, the Company’s marketable debt securities are recorded at fair value on the balance sheet. Unrealized gains and losses on marketable debt securities classified as available-for-sale are recorded in other comprehensive income (loss). Realized gains and losses on sale of marketable debt securities are included in financial income (expense), net in the consolidated statement of comprehensive loss. The cost of marketable securities sold is determined using the specific identification method. The amortized cost of marketable debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion are included in the Company’s financial income (expenses), net in the consolidated statement of comprehensive loss. The Company classifies its marketable debt securities as either short-term or long-term based on each instrument’s underlying contractual maturity date. When the estimated fair value of a debt security is below its amortized cost, the debt security is assessed using the Current Expected Credit Losses model (in accordance with ASU 2016-13) in order to determine what portion of that difference, if any, is caused by expected credit losses. The amortized cost of the debt security will be reduced to its fair value if it is more likely than not that the Company is required to sell the impaired security before recovery of its amortized cost basis, or it has the intention to sell the security. If neither of these conditions are met, the Company determines whether the impairment is due to credit losses by comparing the present value of the expected cash flows of the security with its amortized cost basis. The amount of impairment recognized is limited to the excess of the amortized cost over the fair value of the security. An allowance for credit losses for the excess of amortized cost over the expected cash flows is recognized in financial income (expenses), net on the consolidated statements of comprehensive loss. During 2020, the Company did not recognize an allowance for credit losses on its available-for-sale marketable debt securities. |
Accounts Receivable | g. Accounts Receivable Accounts receivable are recorded based on the invoiced amount and presented in the Company’s consolidated balance sheet net of allowance for credit losses for potential uncollectible amounts. The allowance for credit losses is based on the Company’s assessment of collectability by reviewing accounts receivable on an aggregated basis where similar characteristics exist and on an individual basis when it identifies specific customers with known disputes or collectability issues. In addition, the Company considers a number of factors to assess collectability, including the past due status, creditworthiness of the specific customer, payment history and reasonable and supportable forecasts of future economic conditions, as well as other applicable forward-looking information in order to calculate its estimated credit losses. Changes in the allowance for expected credit losses are recorded under general and administrative expenses in the consolidated statements of comprehensive loss. The Company’s allowance for credit losses for its accounts receivable consists of the following activity: December 31, 2018 2019 2020 (U.S. $ in thousands) Beginning balance $ 63 $ 97 $ 77 Charged to general and administrative 34 31 85 Accounts receivable write-off - (51 ) (77 ) Ending Balance $ 97 $ 77 $ 85 When revenue recognition criteria are not met for a sale transaction that has been billed, the Company does not recognize deferred revenues on the balance sheet or the related account receivable. Accordingly, as of December 31, 2019 and 2020, $22,032 thousand and $22,936 thousand, respectively, were offset from accounts receivable and corresponding amounts were offset from deferred revenues (see Note 8). |
Leases | h. Leases ASC No. 842 “Leases” (“ASC No. 842”) became effective for the Company on January 1, 2019. The Company adopted ASC No. 842 on January 1, 2019, using a modified retrospective transition approach. The Company has also elected to utilize the available package of practical expedients permitted under the transition guidance within ASC No. 842 which does not require it to reassess the prior conclusions about lease identification, lease classification and initial direct costs. Consequently, financial information was not adjusted, and the disclosures required under the new standard are not provided for dates and periods before January 1, 2019. The Company determines if an arrangement is a lease at inception. If an arrangement is a lease, the Company determines whether it is an operating lease or a finance lease at the lease commencement date. As of December 31, 2019 and 2020, the Company did not have any finance leases. Operating leases are included in operating lease assets, operating lease liabilities – current, and non-current operating lease liabilities in the Company’s consolidated balance sheets. Operating lease assets represent the Company’s right to control the use of an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease assets and liabilities are recognized on the commencement date based on the present value of lease payments over the lease term. The Company uses its incremental borrowing rate based on the information available at the commencement date to determine the present value of the lease payments. The incremental borrowing rate was estimated based on factors such as the lease term, credit standing and the economic environment of the location of the lease. Variable lease payments, including payments based on an index or a rate, are expensed as incurred and are not included within the operating lease asset and operating lease liabilities. The Company does not separate non-lease components from lease components for its leases of real estate. The Company’s lease terms are the noncancelable periods, including any rent-free periods provided by the lessor, and include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. At lease inception, and in subsequent periods as necessary, the Company estimates the lease term based on its assessment of extension and termination options that are reasonably certain to be exercised. Lease costs are recognized on a straight-line basis over the lease term. The Company does not recognize operating lease asset and operating lease liabilities for leases with terms shorter than 12 months. Lease costs for short-term leases are recognized on a straight-line basis over the lease term. |
Property and Equipment | i . Property and Equipment Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the residual value of the related assets at the following annual rates: % Furniture and fixtures 10 Computers and software 33 Leasehold improvements 10-33 Electronic equipment 15-33 Leasehold improvements are depreciated by the straight-line method over the shorter of the term of the lease (including reasonably assured option periods, if applicable), or the estimated useful life of the improvements. |
Long-Lived Assets | j. Long-Lived Assets The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, “Property, Plant and Equipment” (“ASC No. 360”), whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by such assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2018, 2019 and 2020, no impairment triggering events were identified. |
Severance Pay | k. Severance Pay Israeli labor law generally requires payment of severance pay upon dismissal of an employee or upon termination of employment in certain other circumstances. The Company makes ongoing deposits into its Israeli employee pension plans to fund their severance liabilities. For its employees who are employed under Article 14 of the Severance Compensation Act, 1963 (“Article 14”), the Company makes deposits with certain insurance companies for accounts controlled by each applicable employee in order to secure the employee’s rights upon termination. In addition, the related obligations and amounts deposited on behalf of the applicable employees for such obligations are not presented on the Company’s consolidated balance sheets, as the amounts funded are not under the control and management of the Company and the Company is legally released from the obligation to pay any severance payments to the employees once the required deposit amounts have been paid. For the Company’s employees in Israel that began employment prior to Article 14, the Company calculates the liability for severance pay based on the most recent salary of these employees multiplied by the number of years of employment as of the Article 14 inception date. These liabilities are presented under other non-current liabilities in the Company’s consolidated balance sheets. The amounts used to fund these liabilities are included in the Company’s consolidated balance sheets under other non-current assets. Expenses incurred under the Company’s severance and pension plans in connection with its Israeli employees, which represent the majority of the Company’s severance expense, for the years ended December 31, 2018, 2019 and 2020, were $2,330 thousand, $3,091 thousand and $3,659 thousand, respectively. In addition, the Company’s employees in other jurisdictions are entitled to certain pension plans and related severance payments in accordance with local laws and practices. These plans are accounted as contribution plans. |
Revenue Recognition | l. Revenue Recognition The Company follows the five-step model to recognize revenue under ASC 606: (i) identify the contract with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract, and (v) recognize revenue when (or as) the Company satisfies its performance obligations. For each arrangement the Company assesses whether it is acting as the principal that has promised to provide goods or services to its customers or an agent which arranges for goods or services to be provided by the principal to an end customer. The Company’s revenue is reported net of discounts, sales tax, value added tax and related surcharges. The Company generates revenues from selling (i) software license (perpetual and term-based), (ii) maintenance, (iii) hardware (iv) professional services and (v) software as a service (“SaaS”). The Company sells its products and services primarily through distributors and resellers and also through its direct sales force. The Company determines the appropriate revenue recognition for its contracts with customers by analyzing the type, terms and conditions of each contract or arrangement with a customer. The Company classifies the components of revenue as product or services revenue based on the attributes of the underlying performance obligations. Accordingly, software license and hardware are classified as product revenues. F - 12 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS The Company’s contract payment terms typically range between 30 and 120 days. The Company assesses collectability based on several factors, including collection history. The Company elected to disregard the effects of a financing component when the period between when the entity transfers a promised good or service to the customer and when the customer pays for that good or service is one year or less. Nature of Products and Services The Company’s on-premise software licenses are sold through both perpetual and term-based license agreements. These licensing arrangements provide customers with the same product functionality and differ mainly in the duration over which the customer benefits from the software. The Company delivers its software licenses electronically. Electronic delivery occurs when the Company provides the customer with access to the software and license key via a secure portal. Revenue from on-premise software licenses is generally recognized upfront at the point in time when the software is made available to the customer. Hardware revenue is recognized upon delivery which is the point in time at which control has passed. The Company’s contracts with customers for on-premise software licenses include maintenance services and may also include additional professional services, such as training, consulting and implementation. Maintenance services agreements consist of fees for providing software updates on an if and when available basis and for providing technical support for software products for a specified term. Both software updates and technical support have the same pattern of transfer to the customer. Revenues related to maintenance services are recognized ratably over the term of the related maintenance agreement. Revenues related to SaaS are also recognized ratably over the term of the related agreement. Revenues related to professional services are recognized as the services are performed or upon the fulfillment of the performance obligation of the related professional services. Payments received in advance of services performed are deferred and recognized when the related services are performed. In contracts with multiple performance obligations, the Company accounts for individual performance obligations separately if they are distinct. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price out of total consideration of the contract. For maintenance and support, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. The Company determines the standalone selling price for sales of licenses using the residual approach as the Company’s licenses are not sold on a standalone basis and due to the high variability of the licenses’ sales prices. For professional services and SaaS, the Company determines the standalone selling prices based on the price at which the Company separately sells those services. |
Deferred Contract Costs | m. Deferred Contract Costs The Company accounts for deferred contract costs in accordance with ASC No. 340-40, “Other Assets and Deferred Costs” (“ASC 340-40”). Under ASC 340-40, incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided the Company expects to recover the costs, are deferred. The Company defer contract costs that are recoverable and incremental to obtaining customer sales contracts. These costs include sales commissions to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are deferred and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately four years. Sales commissions for renewal contracts are deferred and then amortized on a straight-line basis over the related contractual period. Amortization expenses related to these costs are primarily included in sales and marketing expenses in the consolidated statements of comprehensive loss. The Company presents deferred contract costs from contracts which are less than 12 months under prepaid expenses and other current assets and deferred contract costs related to contracts that are greater than 12 months under deferred costs (see also Note 8 to the consolidated financial statements). |
Cost of Revenues | n. Cost of Revenues Cost of product revenues consist primarily of costs associated with the processing and the delivery of the Company’s software licenses to the customers as well as third-party hardware and related shipping costs. Cost of maintenance and professional services revenues consist primarily of personnel costs responsible for providing maintenance and support and professional services. The Company sources its hardware from a single third-party provider based in the U.S. |
Accounting for Share-Based Compensation | o. Accounting for Share-Based Compensation The Company accounts for share-based compensation, including stock options and restricted stock units (“RSUs”) in accordance with ASC No. 718, “Compensation-Stock Compensation” (“ASC 718”). ASC 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an Option-Pricing Model (“OPM”). The Company selected the Black-Scholes-Merton option pricing model as the most appropriate fair value method for its stock options awards. The Company’s option pricing model requires the input of highly subjective assumptions, including the expected share price volatility and expected term. Any changes in these highly subjective assumptions would significantly impact the share-based compensation expense. The fair value of stock options granted to employees is estimated at the date of grant using the following assumptions: The risk-free interest rate assumption is based on the implied yield curve, at the time of grant, on U.S. treasury zero-coupon issues with a remaining term equal to the expected term of the Company’s stock options. The dividend yield assumption is based on the Company’s historical experience and expectation of no future dividend payouts and may be subject to substantial changes in the future. The Company has historically not paid cash dividends and has no foreseeable plans to pay cash dividends in the future. The expected share price volatility is based on the historical volatility of the ordinary shares of comparable companies that are publicly traded, as well as the historical volatility of the Company’s ordinary shares. The expected term of options granted represents the period of time that options granted are expected to be outstanding. The expected option term is calculated using the simplified method, as the Company concludes that currently its historical share option exercise experience does not provide an adequate basis to estimate its expected option term. The fair value of the Company’s ordinary shares underlying the share-based awards as of December 31, 2018 and for the period from January 1, 2019 to April 11, 2019, were estimated using the hybrid method which takes into consideration a probability-weighted of a non-IPO scenario (which is based on the income approach) and an IPO scenario. Commencing April 11, 2019, the Company’s ordinary shares are publicly traded and are measured based on the Company’s share price on the date of grant. The fair value of the Company’s RSUs is measured based on the fair value of the Company’s ordinary shares on the date of grant. The Company recognizes compensation expenses for its stock-based option awards and RSUs on the graded vesting attribution method over the requisite service period (primarily a four-year period). Each of the above factors requires the Company to use judgment and make estimates in determining the inputs used for the calculation of the fair value of its stock-based option awards. If the Company were to use different inputs, the fair value of its stock-based option awards could be materially different. |
Research and Development Costs | p. Research and Development Costs ASC 985 requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company’s product development process, technological feasibility is established upon completion of a working model. The Company does not incur material costs between the completion of the working model and the point at which the products are ready for general release. Therefore, research and development costs are charged to the statement of comprehensive loss as incurred. |
Marketing Expense | q. Marketing Expense Marketing expenses consist primarily of marketing campaigns and tradeshows. Marketing expenses are charged to the statement of comprehensive loss, as incurred. Marketing expenses for the years ended December 31, 2018, 2019 and 2020, amounted to $8,093, $10,790 and $7,158 thousand, respectively. |
Income Taxes | r. Income Taxes The Company and its subsidiaries are subject to income taxes in the jurisdictions in which they operate. The Company’s provision for income taxes is based on income tax rates in the tax jurisdictions in which it operates, permanent differences between financial reporting and tax reporting, and available credits and incentives. Deferred taxes are determined utilizing the “asset and liability” approach under ASC-740, “Income Taxes” (“ASC-740”). The asset and liability approach requires the recognition of deferred taxes based on the estimated future tax effects of temporary differences between the carrying amount and tax bases of assets and liabilities under the applicable tax laws, and on effective tax rates in effect when the deferred taxes are expected to be settled or realized. Deferred taxes for each jurisdiction are presented as a non-current net asset or liability, net of any valuation allowances. Valuation allowances are provided unless it is more likely than not that the deferred tax asset will be realized. In determining the appropriate valuation allowances, the Company considers future reversals of existing taxable temporary differences, the most recent projections of future business results, prior earnings history, carryback and carry forward and prudent tax strategies that may enhance the likelihood of realization of a deferred tax asset. Deferred taxes have not been provided for the following items: 1) Taxes that would apply in the event of disposal of investments in first-tier foreign subsidiaries, as it is 2) Dividends distributable from the income of foreign subsidiaries as the Company does not expect these ASC-740 also clarifies the accounting and reporting for uncertainties in income tax. ASC-740 prescribes a comprehensive model for the financial statement recognition, measurement, presentation and disclosure of uncertain tax positions taken or expected to be taken in income tax returns. The Company reevaluates these uncertain tax positions on a quarterly basis and makes adjustments as required. The Company classifies interest and penalties recognized in the financial statements relating to uncertain tax positions within taxes on income. |
Basic and Diluted Net Loss Per Share: | s. Basic and Diluted Net Loss Per Share: Basic net loss per ordinary share is computed by dividing net loss for each reporting period by the weighted-average number of ordinary shares outstanding during the year. Diluted loss per ordinary share is computed by dividing net loss for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC 260-10 “Earnings Per Share”. The calculation of diluted net loss per share excludes potential share issuances of ordinary shares upon the exercise of share options, unvested RSUs, warrants to purchase ordinary shares and redeemable preferred shares as their effect is anti-dilutive. The total number of shares related to outstanding stock options, warrants to purchase ordinary shares and redeemable preferred shares that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2018 was 6,750,259, 26,667 and 16,416,749 (out of which 27,778 shares represent receipt on account of preferred A shares), respectively. The total number of shares related to outstanding stock options, warrants to purchase ordinary shares and redeemable preferred shares that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2019 was 7,507,811, 26,667 and 16,416,749 (out of which 27,778 shares represent receipt on account of preferred A shares), respectively. The total number of shares related to outstanding stock options and unvested RSUs that have been excluded from the calculation of diluted net loss per share for the year ended December 31, 2020 was 6,930,143 and 1,311,702, respectively. |
Concentration of Credit Risks | t. Concentration of Credit Risks Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, marketable securities, restricted bank deposits, trade receivables and derivative instruments. The Company’s cash and cash equivalents and restricted bank deposits are invested with major banks in Europe, Israel and the United States. Generally, these investments may be redeemed upon demand and the Company believes that the financial institutions that hold the Company’s cash deposits are financially sound and, accordingly, bear minimal risk. The Company's marketable debt securities consist of investments, which are highly rated by credit agencies, in government, corporate and government sponsored enterprises debentures. The Company's investment policy, approved by the Board of Directors, limits the amount that the Company may invest in any one type of investment or issuer, in order to reduce credit risk concentrations. The trade receivables of the Company are mainly derived from sales to a diverse set of customers located primarily in the United States, Europe and Asia. Concentration of credit risk with respect to trade receivables is limited by credit limits, ongoing credit evaluation and account monitoring procedures. As of December 31, 2019 and 2020, each of the following distributors comprised more than 10% of the Company’s accounts receivable: December 31, 2019 2020 Customer A 14 % 16 % Customer B 15 % 12 % Customer C 12 % 11 % For purposes of this calculation, the Company assessed distributors by aggregating distributors within the same holding group. |
Derivative Instruments and Hedging Activities | u. Derivative Instruments and Hedging Activities The Company is exposed to global market risks and to the risk that its earnings, cash flows and equity could be adversely impacted by fluctuations in foreign exchange rates. As part of the Company’s risk management strategy, it uses foreign currency exchange forward contracts and other derivative to hedge against certain foreign currency exposures. The derivative instruments hedge a portion of the Company’s non-dollar currency exposure. The Company does not enter into derivative transactions for trading purposes. The Company recognizes these derivative instruments as either assets or liabilities in the consolidated balance sheets at their fair value. Derivatives in a gain position are reported in other current assets in the consolidated balance sheets and derivatives in a loss position are recorded in other accounts payables in the consolidated balance sheets, on a gross basis. All derivative contracts entered into by the Company are classified as non-hedging instruments and accordingly the Company records the changes in fair value of derivative instruments in financial income (expense), net in the consolidated statement of comprehensive loss. |
Fair Value of Financial Instruments | v. Fair Value of Financial Instruments The Company applies ASC No. 820, “Fair Value Measurements and Disclosures” (“ASC 820”), with respect to fair value measurements of all financial assets and liabilities. The Company’s financial assets and liabilities that are measured at are measured at fair value on a recurring basis include marketable securities and derivative contracts. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. F - 16 TUFIN SOFTWARE TECHNOLOGIES LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Fair value is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be accessed at the measurement date. Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable for the assets or liabilities, either directly or indirectly through market corroboration, for substantially the full term of the financial instruments. Level 3 - Inputs are unobservable inputs based on the Company’s own assumptions used to measure assets and liabilities at fair value. The inputs require significant management judgment or estimation. In accordance with ASC 820, the Company’s foreign currency derivative instruments and marketable securities are classified within the Level 2 value hierarchy (see Note 3). |
Legal Contingencies | w. Legal Contingencies From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes that are not predictable with assurance. The Company accrues for contingencies when the loss is probable, and it can reasonably estimate the amount of any such loss. Loss contingencies considered to be remote by the Company are generally not disclosed unless material. The respective legal fees are expensed as incurred. |
Reverse Share Split | x. Reverse Share Split On March 21, 2019, the shareholder general meeting of the Company approved a 1.5:1 reverse share split, which was effected on the date thereof. References made to outstanding shares or per share amounts in the accompanying consolidated financial statements and applicable disclosures have been retroactively adjusted to reflect this one for one and half (1:1.5) reverse stock split. |
Recently Adopted Accounting Standards | y. Recently Adopted Accounting Standards In August 2018, the FASB issued ASU 2018-15 “Intangibles—Goodwill and other—Internal-use software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract.” ASU 2018-15 clarifies the accounting for costs incurred to implement a cloud computing hosting arrangement that is a service contract by establishing a model for capitalizing or expensing such costs, depending on their nature and the stage of the implementation project during which they are incurred and aligns the requirements for capitalization of such implementation costs with the existing guidance for internal-use software. Any capitalized costs are to be amortized over the reasonably certain term of the hosting arrangement and presented in the same line within the statement of operations as the related service arrangement’s fees. ASU 2018-15 also requires enhanced qualitative and quantitative disclosures surrounding hosting arrangements that are service contracts. The Company adopted ASU 2018-15 on a prospective basis, effective January 1, 2020, with no material impact on its consolidated financial statements. In June 2016, the FASB issued ASU 2016-13 that supersedes the existing impairment model for most financial assets to a model that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. ASU 2016-13 requires an entity to recognize an impairment allowance equal to its current estimate of all contractual cash flows the entity does not expect to collect. ASU 2016-13 also requires that credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses. The Company adopted ASU 2016-13 on a modified retrospective basis, effective January 1, 2020, with no material impact on its consolidated financial statements. |
Recently Issued Accounting Pronouncements Not Yet Adopted | z. Recently Issued Accounting Standards Not Yet Adopted In December 2019, the FASB issued ASU 2019-12 “Income Taxes (Topic 740)—Simplifying the Accounting for Income Taxes” (the “update”). The amendments in this update simplify the accounting for income taxes by removing the following exceptions in ASC 740: (1) exception to the incremental approach for intra-period tax allocation when there is a loss from continuing operations and income or a gain from other items; (2) exception to the requirement to recognize a deferred tax liability for equity method investments when a foreign subsidiary becomes an equity method investment; (3) exception to the ability not to recognize a deferred tax liability for a foreign subsidiary when a foreign equity method investment becomes a subsidiary; and (4) exception to the general methodology for calculating income taxes in an interim period when a year-to-date loss exceeds the anticipated loss for the year. In addition, the update also simplifies the accounting for income taxes in certain topics as follows: (1) requiring that an entity recognize a franchise tax (or similar tax) that is partially based on income as an income-based tax and account for any incremental amount incurred as a non-income-based tax; (2) requiring that an entity evaluate when a step up in the tax basis of goodwill should be considered part of the business combination in which the book goodwill was originally recognized and when it should be considered a separate transaction; (3) specifying that an entity can elect (rather than be required to) allocate the consolidated amount of current and deferred tax expense to a legal entity that is not subject to tax in its separate financial statements; and (4) requiring that an entity reflect the effect of an enacted change in tax laws or rates in the annual effective tax rate computation in the interim period that includes the enactment date. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. The Company is currently evaluating this guidance to determine the impact it may have on its consolidated financial statements. |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Allowance for Credit Losses for Accounts Receivable | The Company’s allowance for credit losses for its accounts receivable consists of the following activity: December 31, 2018 2019 2020 (U.S. $ in thousands) Beginning balance $ 63 $ 97 $ 77 Charged to general and administrative 34 31 85 Accounts receivable write-off - (51 ) (77 ) Ending Balance $ 97 $ 77 $ 85 |
Schedule of Annual Rates of Property and Equipment | Property and equipment is stated at cost, net of accumulated depreciation. Depreciation is calculated by the straight-line method over the estimated useful lives of the residual value of the related assets at the following annual rates: % Furniture and fixtures 10 Computers and software 33 Leasehold improvements 10-33 Electronic equipment 15-33 |
Schedules of Concentration of Risk of Account Receivable | As of December 31, 2019 and 2020, each of the following distributors comprised more than 10% of the Company’s accounts receivable: December 31, 2019 2020 Customer A 14 % 16 % Customer B 15 % 12 % Customer C 12 % 11 % |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedue of Assets and Liabilities Carried At Fair Value on Recurring Basis | The following tables summarize the Company’s financial assets and liabilities that are carried at fair value on a recurring basis, by fair value hierarchy, on the consolidated balance sheet: December 31, 2019 2020 (U.S. $ in thousands) Level 2 Level 2 Assets: Marketable securities $ - $ 42,291 Foreign currency exchange derivative instruments 81 295 Liabilities: Foreign currency exchange derivative instruments 7 8 $ 74 $ 42,578 |
CASH, CASH EQUIVALENTS AND RE_2
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | |
Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash | The following table provides a reconciliation of cash, cash equivalents and restricted bank deposits reported within the statement of financial position that sum to the total of the same such amounts shown in the statement of cash flows. December 31, 2019 2020 (U.S. $ in thousands) Cash and cash equivalents $ 118,661 $ 58,449 Restricted bank deposits 224 - Long-term restricted bank deposits 2,844 3,268 Total cash, cash equivalents, and restricted cash shown in the statement of cash flows $ 121,729 $ 61,717 |
MARKETABLE SECURITIES (Tables)
MARKETABLE SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Securities, Available-for-sale, Amortized Cost [Abstract] | |
Schedue of Amortized Cost, Unrealized Gains and Losses | The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2020: December 31, 2020 (U.S. dollars in thousands) Amortized cost Gross unrealized losses Gross unrealized gains Fair value U.S. government and agency debentures $ 32,578 $ (5 ) $ 1 $ 32,574 Corporate debentures 9,708 (1 ) 10 9,717 Total $ 42,286 $ (6 ) $ 11 $ 42,291 |
Schedue of Fair Value of Available-For-Sale Marketable Securities | December 31, 2020 (U.S. dollars in thousands) Amortized cost Fair value Due within one year $ 19,585 $ 19,586 Due between one and two years 22,701 22,705 Total $ 42,286 $ 42,291 |
PROPERTY AND EQUIPMENT, NET (Ta
PROPERTY AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | December 31, 2019 2020 (U.S. $ in thousands) Property and equipment, net: Cost: Furniture and fixtures $ 1,640 $ 1,883 Computers and software 4,328 4,731 Leasehold improvements 668 907 Electronic equipment 2,129 2,374 8,765 9,895 Less - Accumulated depreciation 4,588 5,393 $ 4,177 $ 4,502 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Lessee Disclosure [Abstract] | |
Schedule of Components of Lease Expense | The components of lease expense during the period presented were as follows: Year Ended December 31, 2019 December 31, 2020 (U.S. $ in thousands) Operating lease expense $ 3,110 $ 3,791 Short-term lease expense 786 545 Total lease expense $ 3,896 $ 4,336 |
Schedule of Supplemental Cash Flow Information Related to Operating Leases | Supplemental cash flow information related to operating leases during the period presented was as follows: Year Ended December 31, 2019 December 31, 2020 (U.S. $ in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 1,602 $ 4,169 ROU assets obtained in exchange for lease liabilities: Operating leases $ 10,063 $ - Year Ended December 31, 2019 2020 Weighted-average remaining lease term (in years) 8.4 7.6 Weighted-average discount rate 7.5 % 7.6 % |
Schedule of Lease Term and Discount Rate Related to Operating Leases | Lease term and discount rate related to operating leases as of the period presented were as follows: Year Ended December 31, 2019 2020 Weighted-average remaining lease term (in years) 8.4 7.6 Weighted-average discount rate 7.5 % 7.6 % |
Schedule of Maturities of Operating Lease Liabilities | The maturities of lease liabilities under operating leases as of December 31, 2020 are as follows: (U.S. $ in thousands) 2021 4,378 2022 4,393 2023 4,128 2024 3,830 2025 3,307 Thereafter 10,198 Total undiscounted lease payments $ 30,234 Less: Imputed interest (6,809 ) Total lease liabilities $ 23,425 |
DEFERRED REVENUES AND DEFERRE_2
DEFERRED REVENUES AND DEFERRED COSTS (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Revenue Recognition and Deferred Revenue [Abstract] | |
Schedule of Deferred Revenues and Deferred Costs | December 31, 2019 2020 (U.S. $ in thousands) Deferred revenues: Deferred product revenues $ 695 $ 1,515 Deferred maintenance and professional services revenues 56,900 59,176 57,595 60,691 Less - amounts offset from accounts receivable (22,032 ) (22,936 ) Deferred revenues 35,563 37,755 The change in deferred revenues: Balance at beginning of year 56,629 57,595 Deferred revenue relating to new sales 40,225 44,105 Revenue recognized during the year (39,259 ) (41,009 ) Balance at end of year 57,595 60,691 Less - amounts offset from accounts receivable (22,032 ) (22,936 ) Deferred revenues $ 35,563 $ 37,755 |
Schedule of Assets Recognized from Costs to Obtain Contract with Customer | The Company determined that certain costs related to its sales incentive programs meet the requirements to be capitalized and deferred. These assets are recorded as current and non-current assets. The Company amortizes these deferred costs over the benefit period, currently estimated to be four years. The Company considers the benefit period to exceed the initial contract term for certain costs because of anticipated renewals and because sales commission rates for renewal contracts are not commensurate with sales commissions for initial contracts. December 31, 2019 2020 (U.S. $ in thousands) Balance at beginning of year $ 5,313 $ 5,962 Additional costs deferred 3,436 3,398 Amortization of deferred costs (2,787 ) (2,733 ) Balance at end of year $ 5,962 $ 6,627 |
HEDGING ACTIVITIES (Tables)
HEDGING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | As of December 31, 2019 and 2020, the notional amounts of the Company’s outstanding foreign currency exchange derivative financial instruments, not designated as accounting hedging instruments, were $22.4 million and $17.6 million, respectively, and were used to reduce foreign currency exposures of the NIS, Euro and GBP. With respect to such derivatives, losses of $337 thousands and gains of $366 thousand and $86 thousand were recognized under financial income (expense), net for the years ended December 31, 2018, 2019 and 2020, respectively. Such gains and losses partially offset the revaluation impact of the balance sheet items, which are also recognized under financial income (expense), net. Balance sheet location Notional Amount Fair Value December 31, 2020 December 31, 2020 (U.S. $ in thousands) Assets derivatives - Foreign currency exchange contracts Other current assets $ 8,796 $ 295 Liability derivatives - Foreign currency exchange contracts Other accounts payables $ 8,796 $ 8 Balance sheet location Notional Amount Fair Value December 31, 2019 December 31, 2019 (U.S. $ in thousands) Assets derivatives - Foreign currency exchange contracts Other current assets $ 11,185 $ 81 Liability derivatives - Foreign currency exchange contracts Other accounts payables $ 11,185 $ 7 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Stock Option Activity | A summary of the stock option activity for the year ended December 31, 2020 is as follows: Number of Options Weighted average exercise price Aggregate intrinsic value (U.S. $ in thousands) Balance as of January 1, 2020 7,507,811 $ 8.17 Granted 936,500 $ 10.72 Exercised (742,217 ) $ 1.66 Forfeited (771,951 ) $ 14.51 Balance as of December 31, 2020 6,930,143 $ 8.51 $ 43,041 Exercisable as of December 31, 2020 3,947,211 $ 5.01 $ 34,711 |
Schedule of Outstanding and Exercisable Options Granted | The following table summarizes the Company’s outstanding and exercisable options granted as of December 31, 2020: Options Outstanding Options Exercisable Exercise Price Options outstanding as of December 31, 2020 Weighted average remaining contractual term Options exercisable as of December 31, 2020 Weighted average remaining contractual term (years) (years) $ 0.004 - $ 1.76 3,551,405 8.9 3,029,037 9.3 $ 7.55 - $ 11.70 1,335,866 8.7 285,874 8.1 $ 16.68 - $ 19.21 1,153,275 8.6 321,309 8.6 $ 22.70 - $ 29.74 889,597 8.3 310,991 8.3 6,930,143 8.7 3,947,211 9.0 |
Schedule of Assumptions of Fair Value of Stock Options Granted | The fair value of stock options granted was estimated using the Black-Scholes option-pricing model. The assumptions used to value options granted during the year ended December 31, 2019 and 2020 were as follows: Year ended December 31, 2019 2020 Expected volatility 50.4%-65.9% 51.7%-56.2% Expected dividends yields 0% 0% Expected term (in years) 5.5-7.0 5.5-7.0 Risk free rate 1.53%- 2.63% 0.31%-1.03% Weighted average grant date fair value 9.63 5.36 |
Schedule of RSUs Activity | A summary of the Company’s RSUs activity for the year ended December 31, 2020 is as follows: Number of RSUs Weighted Average Grant Date Fair Value Balance as of January 1, 2020 - $ - Granted 1,346,522 $ 9.23 Vested - $ - Forfeited (34,820 ) $ 9.98 Unvested RSUs as of December 31, 2020 1,311,702 $ 9.21 |
Schedule of Share Based Compensation Expense | Stock-based compensation expense for stock options and RSUs included in the Company’s Statements of Comprehensive Loss were allocated as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Cost of revenues $ 634 $ 1,514 $ 2,024 Research and development 731 2,370 4,437 Sales and marketing 1,458 4,849 4,635 General and administrative 358 2,194 3,929 Total share-based compensation expense $ 3,181 $ 10,927 $ 15,025 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Deferred Tax Assets and Liabilities | The components of the Company’s deferred tax assets and liabilities as of December 31, 2019 and 2020 were as follows: As of December 31, 2019 2020 (U.S. $ in thousands) Deferred tax assets: Tax loss carryforwards $ 9,409 $ 17,543 Research and development 6,141 7,132 Deferred revenue 2,238 1,480 Employee and payroll accrued expenses 891 1,335 Share-based compensation - 389 Operating lease liability 1,013 4,947 Issuance expense - 982 Other 72 89 Total deferred tax assets 19,764 33,897 Deferred tax liabilities: Property and equipment, net (250 ) (289 ) Deferred costs (1,481 ) (1,629 ) Operating lease right-of-use asset (984 ) (4,212 ) Total deferred tax liabilities (2,715 ) (6,130 ) Total deferred tax assets, net $ 17,049 $ 27,767 Less valuation allowance for deferred tax assets (15,390 ) (26,421 ) Deferred tax assets $ 1,659 $ 1,346 |
Schedule of Valuation Allowance Activity on Deferred Tax Asset | A summary of the Company’s valuation allowance activity on deferred tax assets was as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Beginning balance $ 9,511 $ 8,762 $ 15,390 Additions charged to income tax expense - 6,628 11,031 Reductions credited to income tax expense (749 ) - - Ending balance $ 8,762 $ 15,390 $ 26,421 |
Schedule of Loss (Income) Before Taxes on Income | Loss (Income) before taxes on income for the years ended December 31, 2018, 2019 and 2020 were as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Israeli 4,879 $ 29,560 $ 36,347 Non-Israeli (1,900 ) (2,452 ) (2,536 ) 2,979 $ 27,108 $ 33,811 |
Schedule of Taxes on Income | The components of taxes on income for the years ended December 31, 2018, 2019 and 2020 were as follows: December 31, 2018 2019 2020 (U.S. $ in thousands) Current Israeli 105 $ 164 $ 336 Non-Israeli 1,328 1,817 946 1,433 1,981 1,282 Deferred Israeli (1 ) - - Non-Israeli (149 ) (970 ) 313 (150 ) (970 ) 313 Total taxes on income 1,283 $ 1,011 $ 1,595 |
Schedule of Reconciliation Theoretical Tax Benefit and Actual Taxes on Income | A reconciliation of the theoretical tax benefit and actual taxes on income for the years ended December 31, 2018, 2019 and 2020 is set forth below: December 31, 2018 2019 2020 (U.S. $ in thousands) Loss before taxes on income 2,979 $ 27,108 $ 33,811 Statutory tax rate in Israel 23 % 23 % 23 % Theoretical tax benefit 685 6,235 7,777 Increase in income tax expense resulting from: Effect of different tax rates applicable in foreign jurisdictions (399 ) (157 ) (128 ) Operating losses and other temporary differences for which valuation allowance was provided (708 ) (4,972 ) (5,784 ) Permanent differences (756 ) (2,162 ) (3,017 ) Uncertain tax position (91 ) (158 ) (336 ) Other (14 ) 203 (107 ) Actual taxes on income (1,283 ) $ (1,011 ) $ (1,595 ) |
Schedule of Reserve Provisions and Changes | Significant judgment is required in evaluating the Company’s tax positions and determining its provision for income taxes. During the ordinary course of business, there are transactions and calculations for which the ultimate tax determination is uncertain. The Company establishes reserves for tax-related uncertainties based on estimates of whether, and the extent to which, additional taxes will be due. These reserves are established when the Company believes that certain positions might be challenged despite its belief that its tax return positions are fully supportable. The Company adjusts these reserves in light of changing facts and circumstances, such as the outcome of a tax audit or changes in the tax law. The provision for income taxes includes the impact of reserve provisions and changes to reserves that are considered appropriate. Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Balance at beginning of year 421 $ 512 $ 670 Additions for tax positions related to the current year 91 158 336 Balance at end of year 512 $ 670 $ 1,006 |
FINANCIAL INCOME (LOSS), NET (T
FINANCIAL INCOME (LOSS), NET (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Income (loss), Net [abstract] | |
Schedule of Financial Income (Loss), Net | Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Hedging instrument gain (loss), net $ (337 ) $ 366 $ 86 Bank charges (89 ) (153 ) (175 ) Exchange rate loss, net (418 ) (1,175 ) (49 ) Interest income (expense), net (218 ) 878 347 Amortization of premium on marketable securities - - (95 ) Other, net 15 (1 ) - Total financial income (expenses), net $ (1,047 ) $ (85 ) $ 114 |
ENTITY WIDE DISCLOSURES (Tables
ENTITY WIDE DISCLOSURES (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Summary of Revenues within Geographic Areas | The following is a summary of revenues within geographic areas: Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Geography: Americas: United States 47,860 $ 55,991 $ 53,334 Other 407 857 1,311 48,267 56,848 54,645 Israel 1,161 1,654 1,493 EMEA (excluding Germany and Israel) 23,181 27,102 27,073 Germany 8,253 12,147 11,548 APAC 4,119 5,519 6,075 Total 84,981 $ 103,270 $ 100,834 |
Schedule of Distributors Comprised more than 10% of Company's Revenue | As of December 31, 2018, 2019 and 2020, each of the following distributors comprised more than 10% of the Company’s revenue: December 31, 2018 2019 2020 Customer A 13 % 15 % 15 % Customer B 6 % 9 % 10 % Customer C 10 % 8 % 8 % |
Schedule of Disaggregated Revenue by Revenue Type and Performance Obligations | The Company generates revenue from the sale of software products, hardware products, maintenance and support, and professional services. All revenue recognized in the consolidated statement of operations is considered to be revenue from contracts with customers. The following table sets for the disaggregated revenue by revenue type and is consistent with how the Company evaluates its performance obligations: Year ended December 31, 2018 2019 2020 (U.S. $ in thousands) Revenues: Software products $ 39,300 $ 44,618 $ 35,898 Hardware products 3,254 2,747 2,792 Support and maintenance 37,155 46,019 50,794 Professional services 5,272 9,886 11,350 Total revenues $ 84,981 $ 103,270 $ 100,834 |
Schedule of Property, Plant and Equipment, Net by Geographical Area | Property and equipment, net by geographical area were as follows as of December 31, 2018, 2019 and 2020: December 31, 2018 2019 2020 (U.S. $ in thousands) Americas (primarily the United States) 496 $ 959 $ 1,125 EMEA 81 123 108 Israel 1,986 3,095 3,269 2,563 $ 4,177 $ 4,502 |
GENERAL (Details)
GENERAL (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Proceeds from IPO | $ 112,465 | $ 115,292 | ||
IPO [Member] | ||||
Shares sold under initial public offering | 8,855,000 | |||
Options granted to underwriters | 1,155,000 | |||
Redeemable Preferred shares converted | 16,416,749 | |||
Type of stock converted | redeemable convertible preferred shares |
SIGNIFICANT ACCOUNTING POLICI_4
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Weighted average deposits rates | 1.39% | 1.44% | |
Amounts offset from accounts receivable | $ 22,936 | $ 22,032 | |
Marketing expenses | $ 7,158 | $ 10,790 | $ 8,093 |
Number of shares outstanding options | 6,930,143 | 7,507,811 | 6,750,259 |
Warrant to purchase purchase ordinary shares | 26,667 | 26,667 | |
Redeemable preferred shares | 16,416,749 | 16,416,749 | |
Reverse Share Split | 1.5 | ||
Severance expenses | $ 3,659 | $ 3,091 | $ 2,330 |
Series A preferred shares [Member] | |||
Redeemable preferred shares | 27,778 | 27,778 | |
RSU's [Member] | |||
Number of shares outstanding options | 1,311,702 |
SIGNIFICANT ACCOUNTING POLICI_5
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Allowance for Credit Losses for Accounts Receivable) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounting Policies [Abstract] | |||
Beginning balance | $ 77 | $ 97 | $ 63 |
Charged to general and administrative | 85 | 31 | 34 |
Accounts receivable write-off | (77) | (51) | |
Ending Balance | $ 85 | $ 77 | $ 97 |
SIGNIFICANT ACCOUNTING POLICI_6
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Annual Rates of Property and Equipment) (Details) | 12 Months Ended |
Dec. 31, 2020 | |
Furniture and Fixtures [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rates of property and equipment | 10 |
Computers and software [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rates of property and equipment | 33 |
Leasehold improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rates of property and equipment | 10-33 |
Electronic equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Annual rates of property and equipment | 15-33 |
SIGNIFICANT ACCOUNTING POLICI_7
SIGNIFICANT ACCOUNTING POLICIES (Schedules of Concentration of Risk of Account Receivable) (Details) - Accounts Receivable [Member] | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Customer A [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk Percentage | 16.00% | 14.00% |
Customer B [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk Percentage | 12.00% | 15.00% |
Customer C [Member] | ||
Concentration Risk [Line Items] | ||
Concentration Risk Percentage | 11.00% | 12.00% |
FAIR VALUE MEASUREMENT (Schedue
FAIR VALUE MEASUREMENT (Schedue of Assets and Liabilities Carried At Fair Value on Recurring Basis) (Details) - Fair Value, Measurements, Recurring [Member] - Not Designated as Hedging Instrument [Member] - Level 2 [Member] - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Marketable Securities | $ 42,291 | |
Foreign currency exchange derivative instruments | 295 | 81 |
Liabilities: | ||
Foreign currency exchange derivative instruments | 8 | 7 |
Net fair value assets (liability) | $ 42,578 | $ 74 |
CASH, CASH EQUIVALENTS AND RE_3
CASH, CASH EQUIVALENTS AND RESTRICTED CASH (Schedule of Reconciliation of Cash, Cash Equivalents and Restricted Cash) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents [Abstract] | ||||
Cash and cash equivalents | $ 58,449 | $ 118,661 | ||
Restricted bank deposits | 224 | |||
Long-term restricted bank deposits | 3,268 | 2,844 | ||
Total cash, cash equivalents, and restricted cash shown in the statement of cash flows | $ 61,717 | $ 121,729 | $ 17,598 | $ 15,620 |
MARKETABLE SECURITIES (Schedue
MARKETABLE SECURITIES (Schedue of Amortized Cost, Unrealized Gains and Losses) (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2020USD ($) | |
Amortized cost | $ 42,286 |
Gross unrealized losses | (6) |
Gross unrealized gains | 11 |
Fair value | 42,291 |
U.S. government and agency debentures [Member] | |
Amortized cost | 32,578 |
Gross unrealized losses | (5) |
Gross unrealized gains | 1 |
Fair value | 32,574 |
Corporate debentures [Member] | |
Amortized cost | 9,708 |
Gross unrealized losses | (1) |
Gross unrealized gains | 10 |
Fair value | $ 9,717 |
MARKETABLE SECURITIES (Schedu_2
MARKETABLE SECURITIES (Schedue of Fair Value of Available-For-Sale Marketable Securities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Amortized cost | |
Due within one year | $ 19,585 |
Due between one and two years | 22,701 |
Total Amortized cost | 42,286 |
Fair value | |
Due within one year | 19,586 |
Due between one and two years | 22,705 |
Total Fair value | $ 42,291 |
PROPERTY AND EQUIPMENT, NET (Sc
PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | $ 9,895 | $ 8,765 | |
Less - Accumulated depreciation | 5,393 | 4,588 | |
Property and equipment, net | 4,502 | 4,177 | $ 2,563 |
Depreciation expense | 1,523 | 1,205 | $ 956 |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 1,883 | 1,640 | |
Computers and software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 4,731 | 4,328 | |
Leasehold improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | 907 | 668 | |
Electronic equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property plant and equipment gross | $ 2,374 | $ 2,129 |
LEASES (Narrative) (Details)
LEASES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2020 | Dec. 31, 2019 | |
Lease arrangements remaining term | 9 years | ||
Operating lease right-of-use | $ 18,802 | $ 20,958 | |
Rent expense | $ 2,396 | ||
Israeli [Member] | |||
Operating lease right-of-use | $ 15,900 |
LEASES (Schedule of Components
LEASES (Schedule of Components of Lease Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | ||
Operating lease expense | $ 3,791 | $ 3,110 |
Short-term lease expense | 545 | 786 |
Total lease expense | $ 4,336 | $ 3,896 |
LEASES (Schedule of Supplementa
LEASES (Schedule of Supplemental Cash Flow Information Related to Leases) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Cash paid for amounts included in the measurement of lease liabilities: | |||
Operating cash flows from operating leases | $ 4,169 | $ 1,602 | |
ROU assets obtained in exchange for lease liabilities: | |||
Operating leases | $ 10,063 |
LEASES (Schedule of Lease Term
LEASES (Schedule of Lease Term and Discount Rate Related to Operating Leases) (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Lessee Disclosure [Abstract] | ||
Weighted-average remaining lease term (in years) | 7 years 7 months 6 days | 8 years 4 months 24 days |
Weighted-average discount rate | 7.60% | 7.50% |
LEASES (Schedule of Maturities
LEASES (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Operating leases | |
2021 | $ 4,378 |
2022 | 4,393 |
2023 | 4,128 |
2024 | 3,830 |
2025 | 3,307 |
Thereafter | 10,198 |
Total undiscounted lease payments | 30,234 |
Less: Imputed interest | (6,809) |
Total lease liabilities | $ 23,425 |
DEFERRED REVENUES AND DEFERRE_3
DEFERRED REVENUES AND DEFERRED COSTS (Narrative) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenue Recognition and Deferred Revenue [Abstract] | |||
Remaining performance obligations | $ 60,691 | $ 57,595 | $ 56,629 |
Remaining performance obligations next twelve months | $ 39,313 | ||
Revenue remaining performance obligation percentage | 60.00% |
DEFERRED REVENUES AND DEFERRE_4
DEFERRED REVENUES AND DEFERRED COSTS (Schedule of Deferred Revenues and Deferred Costs) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Deferred revenues: | ||||
Deferred product revenues | $ 1,515 | $ 695 | ||
Deferred maintenance and professional services revenues | 59,176 | 56,900 | ||
Revenue Remaining Performance Obligation | $ 57,595 | $ 57,595 | 60,691 | 57,595 |
Less - amounts offset from accounts receivable | (22,936) | (22,032) | ||
Deferred revenues | $ 37,755 | $ 35,563 | ||
The change in deferred revenues: | ||||
Balance at beginning of year | 57,595 | 56,629 | ||
Deferred revenue relating to new sales | 44,105 | 40,225 | ||
Revenue recognized during the year | (41,009) | (39,259) | ||
Balance at end of year | $ 60,691 | $ 57,595 |
DEFERRED REVENUES AND DEFERRE_5
DEFERRED REVENUES AND DEFERRED COSTS (Schedule of Assets Recognized from Costs to Obtain Contract with Customer) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition and Deferred Revenue [Abstract] | ||
Balance at beginning of year | $ 5,962 | $ 5,313 |
Additional costs deferred | 3,398 | 3,436 |
Amortization of deferred costs | (2,733) | (2,787) |
Balance at end of year | $ 6,627 | $ 5,962 |
HEDGING ACTIVITIES (Narrative)
HEDGING ACTIVITIES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Losses on derivatives | $ 337 | ||
Gain on derivatives | $ 86 | $ 366 | |
Forward and Zero Cost Collar Contracts [Member] | Not Designated as Hedging Instrument [Member] | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Notional amount | $ 17,600 | $ 22,400 |
HEDGING ACTIVITIES (Schedule of
HEDGING ACTIVITIES (Schedule of Derivative Instruments) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Notional Amount - Assets derivatives - Foreign currency exchange contracts | $ 8,796 | $ 11,185 |
Notional Amount - Liability derivatives - Foreign currency exchange contracts | 8,796 | 11,185 |
Fair Value - Assets derivatives - Foreign currency exchange contracts | 295 | 81 |
Fair Value - Liability derivatives - Foreign currency exchange contracts | $ 8 | $ 7 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) $ in Thousands | Mar. 01, 2021shares | Apr. 30, 2019shares | Dec. 31, 2020USD ($)shares | Dec. 31, 2019USD ($) | Jan. 01, 2021shares | Dec. 31, 2020₪ / shares | Dec. 31, 2019₪ / sharesshares | Dec. 31, 2018shares |
Class of Stock [Line Items] | ||||||||
Warrant to purchase purchase ordinary shares | 26,667 | 26,667 | ||||||
Ordinary shares, par value | ₪ / shares | ₪ 0.015 | ₪ 0.015 | ||||||
Granted | 1,346,522 | |||||||
Number of unvested options | 2,982,932 | |||||||
Unrecognized compensation cost | $ | $ 8,849 | |||||||
Weighted-average period | 1 year | |||||||
Intrinsic value of options exercised | $ | $ 7,705 | $ 28,950 | ||||||
RSU's [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Unrecognized compensation cost | $ | $ 7,500 | |||||||
Weighted-average period | 10 months 24 days | |||||||
RSU's [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Granted | 1,233,100 | |||||||
2019 Stock Option Plan [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Ordinary shares, par value | ₪ / shares | ₪ 0.015 | |||||||
2019 Stock Option Plan [Member] | Options restricted shares and other sharebased awards member [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Stock option granted | 813,515 | |||||||
Contractual term | ten years | |||||||
2019 Stock Option Plan [Member] | Options restricted shares and other sharebased awards member [Member] | Minimum [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares available for future issuance | 246,133 | |||||||
2019 Stock Option Plan [Member] | Options restricted shares and other sharebased awards member [Member] | Maximum [Member] | Subsequent Event [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares available for future issuance | 1,798,624 | |||||||
IPO [Member] | ||||||||
Class of Stock [Line Items] | ||||||||
Shares sold under initial public offering | 8,855,000 | |||||||
Options granted to underwriters | 1,155,000 | |||||||
Redeemable Preferred shares converted | 16,416,749 | |||||||
Type of stock converted | redeemable convertible preferred shares | |||||||
Warrant to purchase purchase ordinary shares | 26,667 | |||||||
Exercised of issuance ordinary shares | 18,472 |
SHAREHOLDERS' EQUITY (Schedule
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Numbers of Options | ||
Balance as of January 1, 2020 | 7,507,811 | 6,750,259 |
Balance as of December 31, 2020 | 6,930,143 | 7,507,811 |
Weighted average exercise price | ||
Exercisable as of December 31, 2020 | 9 years | |
Stock Options [Member] | ||
Numbers of Options | ||
Balance as of January 1, 2020 | 7,507,811 | |
Granted | 936,500 | |
Exercised | (742,217) | |
Forfeited | (771,951) | |
Balance as of December 31, 2020 | 6,930,143 | 7,507,811 |
Exercisable as of December 31, 2020 | 3,947,211 | |
Weighted average exercise price | ||
Balance as of January 1, 2020 | $ 8.17 | |
Granted | 10.72 | |
Exercised | 1.66 | |
Forfeited | 14.51 | |
Balance as of December 31, 2020 | 8.51 | $ 8.17 |
Exercisable as of December 31, 2020 | $ 5.01 | |
Balance as of December 31, 2020 | $ 43,041 | |
Exercisable as of December 31, 2020 | $ 34,711 |
SHAREHOLDERS' EQUITY (Schedul_2
SHAREHOLDERS' EQUITY (Schedule of Outstanding and Exercisable Options Granted) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Options outstanding | 6,930,143 |
Weighted average remaining contractual term | 8 years 8 months 12 days |
Options exercisable | 3,947,211 |
Weighted average remaining contractual term | 9 years |
$ 0.004 - $ 1.76 [Member] | |
Exercise price, minimum | $ / shares | $ 0.004 |
Exercise price, maximum | $ / shares | $ 1.76 |
Options outstanding | 3,551,405 |
Weighted average remaining contractual term | 8 years 10 months 24 days |
Options exercisable | 3,029,037 |
Weighted average remaining contractual term | 9 years 3 months 18 days |
$ 7.55 - $ 11.70 [Member] | |
Exercise price, minimum | $ / shares | $ 7.55 |
Exercise price, maximum | $ / shares | $ 11.70 |
Options outstanding | 1,335,866 |
Weighted average remaining contractual term | 8 years 8 months 12 days |
Options exercisable | 285,874 |
Weighted average remaining contractual term | 8 years 1 month 6 days |
$ 16.68 - $ 19.21 [Member] | |
Exercise price, minimum | $ / shares | $ 16.68 |
Exercise price, maximum | $ / shares | $ 19.21 |
Options outstanding | 1,153,275 |
Weighted average remaining contractual term | 8 years 7 months 6 days |
Options exercisable | 321,309 |
Weighted average remaining contractual term | 8 years 7 months 6 days |
$ 22.70 - $ 29.74 [Member] | |
Exercise price, minimum | $ / shares | $ 22.70 |
Exercise price, maximum | $ / shares | $ 29.74 |
Options outstanding | 889,597 |
Weighted average remaining contractual term | 8 years 3 months 18 days |
Options exercisable | 310,991 |
Weighted average remaining contractual term | 8 years 3 months 18 days |
SHAREHOLDERS' EQUITY (Schedul_3
SHAREHOLDERS' EQUITY (Schedule of Assumptions of Fair Value of Stock Options Granted) (Details) - Stock Options [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected dividends yields | 0.00% | 0.00% |
Weighted average grant date fair value | $ 5.36 | $ 9.63 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 51.70% | 50.40% |
Expected term (in years) | 5 years 6 months | 5 years 6 months |
Risk free rate | 0.31% | 1.53% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Expected volatility | 56.20% | 65.90% |
Expected term (in years) | 7 years | 7 years |
Risk free rate | 1.03% | 2.63% |
SHAREHOLDERS' EQUITY (Schedul_4
SHAREHOLDERS' EQUITY (Schedule of RSUs Activity) (Details) | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Amount of RSUs | |
Balance as of January 1, 2020 | shares | |
Granted | shares | 1,346,522 |
Vested | shares | |
Forfeited | shares | (34,820) |
Unvested RSUs as of December 31, 2020 | shares | 1,311,702 |
Weighted average grant date fair value | |
Balance as of January 1, 2020 | $ / shares | |
Granted | $ / shares | 9.23 |
Vested | $ / shares | |
Forfeited | $ / shares | 9.98 |
Unvested RSUs as of December 31, 2020 | $ / shares | $ 9.21 |
SHAREHOLDERS' EQUITY (Schedul_5
SHAREHOLDERS' EQUITY (Schedule of Share Based Compensation Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 15,025 | $ 10,927 | $ 3,181 |
Cost of revenues [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 2,024 | 1,514 | 634 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 4,437 | 2,370 | 731 |
Sales and Marketing [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | 4,635 | 4,849 | 1,458 |
General and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total share-based compensation expense | $ 3,929 | $ 2,194 | $ 358 |
INCOME TAXES (Narrative) (Detai
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Valuation allowance for deferred tax assets | $ 26,421 | $ 15,390 | $ 8,762 | $ 9,511 |
Corporate income tax rate | 23.00% | |||
Tax rate effect on dividend distribution | 25.00% | |||
Loss carryforwards | $ 76,300 | |||
US | ||||
Corporate income tax rate | 21.00% | |||
Germany | ||||
Corporate income tax rate | 33.00% | |||
UK | ||||
Corporate income tax rate | 19.00% | |||
France | ||||
Corporate income tax rate | 33.00% |
INCOME TAXES (Schedule of Defer
INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||||
Tax loss carryforwards | $ 17,543 | $ 9,409 | ||
Research and development | 7,132 | 6,141 | ||
Deferred revenue | 1,480 | 2,238 | ||
Employee and payroll accrued expenses | 1,335 | 891 | ||
Share-based compensation | 389 | |||
Operating lease liability | 4,947 | 1,013 | ||
Issuance expense | 982 | |||
Other | 89 | 72 | ||
Total deferred tax assets | 33,897 | 19,764 | ||
Deferred tax liabilities: | ||||
Property and equipment, net | (289) | (250) | ||
Deferred costs | (1,629) | (1,481) | ||
Operating lease right-of-use asset | (4,212) | (984) | ||
Total deferred tax liabilities | (6,130) | (2,715) | ||
Total deferred tax assets, net | 27,767 | 17,049 | ||
Less valuation allowance for deferred tax assets | (26,421) | (15,390) | $ (8,762) | $ (9,511) |
Net deferred tax assets | $ 1,346 | $ 1,659 |
INCOME TAXES (Schedule of Valua
INCOME TAXES (Schedule of Valuation Allowance Activity on Deferred Tax Assets) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 15,390 | $ 8,762 | $ 9,511 |
Additions charged to income tax expense | 11,031 | 6,628 | |
Reductions credited to income tax expense | (749) | ||
Ending balance | $ 26,421 | $ 15,390 | $ 8,762 |
INCOME TAXES (Schedule of Loss
INCOME TAXES (Schedule of Loss (Income) Before Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Loss before taxes on income | $ 33,811 | $ 27,108 | $ 2,979 |
Israeli [Member] | |||
Loss before taxes on income | 36,347 | 29,560 | 4,879 |
Non-Israeli [Member] | |||
Loss before taxes on income | $ (2,536) | $ (2,452) | $ (1,900) |
INCOME TAXES (Schedule of Taxes
INCOME TAXES (Schedule of Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Current | $ 1,282 | $ 1,981 | $ 1,433 |
Deferred | 313 | (970) | (150) |
Total taxes on income | 1,595 | 1,011 | 1,283 |
Israeli [Member] | |||
Current | 336 | 164 | 105 |
Deferred | (1) | ||
Non-Israeli [Member] | |||
Current | 946 | 1,817 | 1,328 |
Deferred | $ 313 | $ (970) | $ (149) |
INCOME TAXES (Schedule of Recon
INCOME TAXES (Schedule of Reconciliation Theoretical Tax Benefit and Actual Taxes on Income) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Loss before taxes on income | $ 33,811 | $ 27,108 | $ 2,979 |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% |
Theoretical tax benefit | $ 7,777 | $ 6,235 | $ 685 |
Increase in income tax expense resulting from: | |||
Effect of different tax rates applicable in foreign jurisdictions | (128) | (157) | (399) |
Operating losses and other temporary differences for which valuation allowance was provided | (5,784) | (4,972) | (708) |
Permanent differences | (3,017) | (2,162) | (756) |
Uncertain tax position | (336) | (158) | (91) |
Other | (107) | 203 | (14) |
Total taxes on income | $ (1,595) | $ (1,011) | $ (1,283) |
INCOME TAXES (Schedule of Reser
INCOME TAXES (Schedule of Reserve Provisions and Changes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |||
Balance at beginning of year | $ 670 | $ 512 | $ 421 |
Additions for tax positions related to the current year | 336 | 158 | 91 |
Balance at end of year | $ 1,006 | $ 670 | $ 512 |
FINANCIAL INCOME (LOSS), NET (S
FINANCIAL INCOME (LOSS), NET (Schedule of Financial Income (Loss), Net) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Income (loss), Net [abstract] | |||
Hedging instrument gain (loss), net | $ 86 | $ 366 | $ (337) |
Bank charges | (175) | (153) | (89) |
Exchange rate loss, net | (49) | (1,175) | (418) |
Interest income (expense), net | 347 | 878 | (218) |
Amortization of premium on marketable securities | (95) | ||
Other, net | (1) | 15 | |
Total financial income (expenses), net | $ 114 | $ (85) | $ (1,047) |
ENTITY WIDE DISCLOSURES (Schedu
ENTITY WIDE DISCLOSURES (Schedule of Summary of Revenues within Geographic Areas) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Geography: | |||
Total | $ 100,834 | $ 103,270 | $ 84,981 |
Americas United States [Member] | |||
Geography: | |||
Total | 53,334 | 55,991 | 47,860 |
Americas Other [Member] | |||
Geography: | |||
Total | 1,311 | 857 | 407 |
Americas [Member] | |||
Geography: | |||
Total | 54,645 | 56,848 | 48,267 |
Israel [Member] | |||
Geography: | |||
Total | 1,493 | 1,654 | 1,161 |
EMEA (excluding Germany and Israel) [Member] | |||
Geography: | |||
Total | 27,073 | 27,102 | 23,181 |
Germany [Member] | |||
Geography: | |||
Total | 11,548 | 12,147 | 8,253 |
APAC [Member] | |||
Geography: | |||
Total | $ 6,075 | $ 5,519 | $ 4,119 |
ENTITY WIDE DISCLOSURES (Sche_2
ENTITY WIDE DISCLOSURES (Schedule of Distributors Comprised more than 10% of Company's Revenue) (Details) | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue percentage by distributors | 15.00% | 15.00% | 13.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue percentage by distributors | 10.00% | 9.00% | 6.00% |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Revenue percentage by distributors | 8.00% | 8.00% | 10.00% |
ENTITY WIDE DISCLOSURES (Sche_3
ENTITY WIDE DISCLOSURES (Schedule of Disaggregated Revenue by Revenue Type and Performance Obligations) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Revenues: | |||
Total revenues | $ 100,834 | $ 103,270 | $ 84,981 |
Software products [Member] | |||
Revenues: | |||
Total revenues | 35,898 | 44,618 | 39,300 |
Hardware products [Member] | |||
Revenues: | |||
Total revenues | 2,792 | 2,747 | 3,254 |
Support and maintenance [Member] | |||
Revenues: | |||
Total revenues | 50,794 | 46,019 | 37,155 |
Professional services [Member] | |||
Revenues: | |||
Total revenues | $ 11,350 | $ 9,886 | $ 5,272 |
ENTITY WIDE DISCLOSURES (Sche_4
ENTITY WIDE DISCLOSURES (Schedule of Property, Plant and Equipment, Net by Geographical Area) (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 4,502 | $ 4,177 | $ 2,563 |
Americas (primarily the United States) [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 1,125 | 959 | 496 |
EMEA [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | 108 | 123 | 81 |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Property and equipment, net | $ 3,269 | $ 3,095 | $ 1,986 |