Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 09, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Document Annual Report | true | ||
Entity Registrant Name | JFrog Ltd. | ||
Entity Central Index Key | 0001800667 | ||
Entity Voluntary Filers | No | ||
ICFR Auditor Attestation Flag | true | ||
Entity Public Float | $ 2.1 | ||
Entity File Number | 001-39492 | ||
Entity Tax Identification Number | 98-0680649 | ||
Document Transition Report | false | ||
Entity Incorporation, State or Country Code | L3 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Address, Address Line One | 270 E. Caribbean Drive | ||
Entity Address, City or Town | Sunnyvale | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94089 | ||
City Area Code | 408 | ||
Local Phone Number | 329-1540 | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | Ordinary Shares, NIS 0.01 par value | ||
Trading Symbol | FROG | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 106,306,273 | ||
Documents Incorporated by Reference [Text Block] | Portions of the registrant's definitive proxy statement relating to the 2023 annual general meeting of shareholders (the “Proxy Statement”) are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023 . | ||
Auditor Name | KOST FORER GABBAY & KASIERER | ||
Auditor Location | Tel-Aviv, Israel | ||
Auditor Firm ID | 1281 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 84,765 | $ 45,595 |
Short-term investments | 460,245 | 397,605 |
Accounts receivable, net | 76,437 | 62,117 |
Deferred contract acquisition costs | 11,378 | 8,102 |
Prepaid expenses and other current assets | 12,976 | 18,603 |
Total current assets | 645,801 | 532,022 |
Property and equipment, net | 6,663 | 8,021 |
Deferred contract acquisition costs, noncurrent | 18,032 | 13,501 |
Operating lease right-of-use assets | 22,427 | 24,602 |
Intangible assets, net | 25,768 | 37,544 |
Goodwill | 247,955 | 247,955 |
Other assets, noncurrent | 5,910 | 7,576 |
Total assets | 972,556 | 871,221 |
Current liabilities: | ||
Accounts payable | 16,970 | 14,867 |
Accrued expenses and other current liabilities | 35,815 | 28,848 |
Operating lease liabilities | 8,272 | 7,132 |
Deferred revenue | 201,118 | 158,725 |
Total current liabilities | 262,175 | 209,572 |
Deferred revenue, noncurrent | 12,987 | 16,990 |
Operating lease liabilities, noncurrent | 13,954 | 16,829 |
Other liabilities, noncurrent | 4,317 | 3,057 |
Total liabilities | 293,433 | 246,448 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Preferred shares, NIS 0.01 par value per share; 50,000,000 shares authorized; 0 issued and outstanding as of December 31, 2023 and December 31, 2022 | 0 | 0 |
Ordinary shares, NIS 0.01 par value per share, 500,000,000 shares authorized; and 106,114,892 and 100,907,857 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively | 297 | 283 |
Additional paid-in capital | 968,245 | 856,438 |
Accumulated other comprehensive income (loss) | 1,013 | (2,772) |
Accumulated deficit | (290,432) | (229,176) |
Total shareholders' equity | 679,123 | 624,773 |
Total liabilities and shareholders' equity | $ 972,556 | $ 871,221 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - ₪ / shares | Dec. 31, 2023 | Dec. 31, 2022 |
Preferred stock par value | ₪ 0.01 | ₪ 0.01 |
Preferred stock authorized | 50,000,000 | 50,000,000 |
Preferred stock issued | 0 | 0 |
Preferred stock Outstanding | 0 | 0 |
Common stock par value | ₪ 0.01 | ₪ 0.01 |
Common stock Authorized | 500,000,000 | 500,000,000 |
Common stock issued | 106,114,892 | 100,907,857 |
Common stock Outstanding | 106,114,892 | 100,907,857 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue: | |||
Total subscription revenue | $ 349,886 | $ 280,040 | $ 206,683 |
Cost of revenue: | |||
Total cost of revenue—subscription | 77,043 | 62,287 | 41,823 |
Gross profit | 272,843 | 217,753 | 164,860 |
Operating expenses: | |||
Research and development | 134,584 | 121,225 | 79,604 |
Sales and marketing | 150,675 | 130,812 | 96,962 |
General and administrative | 63,132 | 55,556 | 56,663 |
Total operating expenses | 348,391 | 307,593 | 233,229 |
Operating loss | (75,548) | (89,840) | (68,369) |
Interest and other income, net | 21,032 | 5,094 | 744 |
Loss before income taxes | (54,516) | (84,746) | (67,625) |
Income tax expense (benefit) | 6,740 | 5,438 | (3,422) |
Net loss | $ (61,256) | $ (90,184) | $ (64,203) |
Net loss per share, basic | $ (0.59) | $ (0.91) | $ (0.68) |
Net loss per share, diluted | $ (0.59) | $ (0.91) | $ (0.68) |
Weighted-average shares used in computing net loss per share, basic | 103,317,759 | 99,243,894 | 94,783,082 |
Weighted-average shares used in computing net loss per share, diluted | 103,317,759 | 99,243,894 | 94,783,082 |
Subscription—self-managed and SaaS | |||
Revenue: | |||
Total subscription revenue | $ 330,193 | $ 261,452 | $ 190,046 |
Cost of revenue: | |||
Total cost of revenue—subscription | 76,244 | 61,407 | 41,023 |
License—self-managed | |||
Revenue: | |||
Total subscription revenue | 19,693 | 18,588 | 16,637 |
Cost of revenue: | |||
Total cost of revenue—subscription | $ 799 | $ 880 | $ 800 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net Income (Loss) | $ (61,256) | $ (90,184) | $ (64,203) |
Other comprehensive income, net of tax: | |||
Net change in unrealized gains (losses) on available-for-sale marketable securities, net of tax | 1,570 | (1,430) | (195) |
Net change in unrealized gains (losses) on derivative instruments, net of tax | 2,215 | (1,953) | 434 |
Other comprehensive income (loss), net of tax | 3,785 | (3,383) | 239 |
Comprehensive loss | $ (57,471) | $ (93,567) | $ (63,964) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Additional Paid-in Capital | Accumulated Other Comprehensive Income (loss) | Accumulated Deficit |
Balance (in shares) at Dec. 31, 2020 | 92,112,447 | ||||
Balance at Dec. 31, 2020 | $ 553,894 | $ 257 | $ 628,054 | $ 372 | $ (74,789) |
Issuance of ordinary shares upon exercise of share options (in shares) | 2,538,063 | ||||
Issuance of ordinary shares upon exercise of share options | 6,837 | $ 7 | 6,830 | ||
Issuance of ordinary shares upon release of restricted share units (in shares) | 643,980 | ||||
Issuance of ordinary shares upon release of restricted share units | $ 2 | (2) | |||
Issuance of ordinary shares under the employee share purchase plan (shares) | 94,638 | ||||
Issuance of ordinary shares under the employee share purchase plan | 3,092 | 3,092 | |||
Issuance of ordinary shares related to business combination (in shares) | 1,922,912 | ||||
Issuance of ordinary shares related to business combination | 81,773 | $ 6 | 81,767 | ||
Share-based compensation expense | 56,949 | 56,949 | |||
Other comprehensive income (loss), net of tax | 239 | 239 | |||
Net Income (Loss) | (64,203) | (64,203) | |||
Balance (in shares) at Dec. 31, 2021 | 97,312,040 | ||||
Balance at Dec. 31, 2021 | 638,581 | $ 272 | 776,690 | 611 | (138,992) |
Issuance of ordinary shares upon exercise of share options (in shares) | 2,142,019 | ||||
Issuance of ordinary shares upon exercise of share options | 5,922 | $ 6 | 5,916 | ||
Issuance of ordinary shares upon release of restricted share units (in shares) | 1,088,655 | ||||
Issuance of ordinary shares upon release of restricted share units | $ 4 | (4) | |||
Issuance of ordinary shares under the employee share purchase plan (shares) | 261,494 | ||||
Issuance of ordinary shares under the employee share purchase plan | 5,176 | $ 1 | 5,175 | ||
Issuance of ordinary shares related to business combination (in shares) | 103,649 | ||||
Share-based compensation expense | 68,661 | 68,661 | |||
Other comprehensive income (loss), net of tax | (3,383) | (3,383) | |||
Net Income (Loss) | (90,184) | (90,184) | |||
Balance (in shares) at Dec. 31, 2022 | 100,907,857 | ||||
Balance at Dec. 31, 2022 | $ 624,773 | $ 283 | 856,438 | (2,772) | (229,176) |
Issuance of ordinary shares upon exercise of share options (in shares) | 1,899,722 | 1,899,722 | |||
Issuance of ordinary shares upon exercise of share options | $ 9,985 | $ 5 | 9,980 | ||
Issuance of ordinary shares upon release of restricted share units (in shares) | 2,882,729 | ||||
Issuance of ordinary shares upon release of restricted share units | $ 8 | (8) | |||
Issuance of ordinary shares under the employee share purchase plan (shares) | 369,118 | ||||
Issuance of ordinary shares under the employee share purchase plan | 6,665 | $ 1 | 6,664 | ||
Issuance of ordinary shares related to business combination (in shares) | 55,466 | ||||
Share-based compensation expense | 95,171 | 95,171 | |||
Other comprehensive income (loss), net of tax | 3,785 | 3,785 | |||
Net Income (Loss) | (61,256) | (61,256) | |||
Balance (in shares) at Dec. 31, 2023 | 106,114,892 | ||||
Balance at Dec. 31, 2023 | $ 679,123 | $ 297 | $ 968,245 | $ 1,013 | $ (290,432) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | |||
Net Income (Loss) | $ (61,256) | $ (90,184) | $ (64,203) |
Adjustments to reconcile net loss to net cash provided by operating activities: | |||
Depreciation and amortization | 15,303 | 14,655 | 8,746 |
Share-based compensation expense | 95,171 | 68,661 | 56,949 |
Non-cash operating lease expense | 8,457 | 7,357 | 6,108 |
Net amortization of premium or discount on investments | (6,405) | 2,354 | 5,522 |
Losses (gains) on foreign exchange | (421) | 1,799 | 0 |
Changes in operating assets and liabilities, net of business combinations: | |||
Accounts receivable | (14,109) | (11,186) | (12,810) |
Prepaid expenses and other assets | 2,162 | 9,286 | (17,715) |
Deferred contract acquisition costs | (7,807) | (7,212) | (6,195) |
Accounts payable | 1,705 | 4,102 | 504 |
Accrued expenses and other liabilities | 10,681 | 2,242 | 13,089 |
Operating lease liabilities | (7,716) | (9,058) | (5,051) |
Deferred revenue | 38,390 | 28,609 | 42,958 |
Net cash provided by operating activities | 74,155 | 21,425 | 27,902 |
Cash flows from investing activities: | |||
Purchases of short-term investments | (392,406) | (411,242) | (266,319) |
Maturities and sales of short-term investments | 340,912 | 362,711 | 341,354 |
Purchases of property and equipment | (1,982) | (4,328) | (4,228) |
Payments for business combinations, net of cash acquired | 0 | (179) | (195,752) |
Purchases of intangible asset | 0 | (300) | (600) |
Net cash used in investing activities | (53,476) | (53,338) | (125,545) |
Cash flows from financing activities: | |||
Proceeds from exercise of share options | 9,985 | 5,922 | 6,837 |
Proceeds from employee share purchase plan | 6,665 | 5,176 | 3,092 |
Proceeds from employee equity transactions, net of payments to tax authorities | 1,721 | (71) | (8,485) |
Net cash provided by financing activities | 18,371 | 11,027 | 1,444 |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 120 | (2,047) | 0 |
Net increase (decrease) in cash, cash equivalents, and restricted cash | 39,170 | (22,933) | (96,199) |
Cash, cash equivalents, and restricted cash—beginning of period | 45,607 | 68,540 | 164,739 |
Cash, cash equivalents, and restricted cash—end of period | 84,777 | 45,607 | 68,540 |
Supplemental Disclosures of Cash Flow Information | |||
Income tax payments (refunds) | 4,998 | (1,709) | 153 |
Supplemental disclosures of noncash investing and financing activities: | |||
Purchases of property and equipment during the period included in accounts payable | $ 187 | $ 91 | $ 509 |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above: | |||
Cash and cash equivalents | $ 84,765 | $ 45,595 | $ 68,284 |
Restricted cash included in prepaid expenses and other current assets | 12 | 12 | 13 |
Restricted cash included in other assets, noncurrent | 0 | 0 | 243 |
Total cash, cash equivalents, and restricted cash | $ 84,777 | $ 45,607 | $ 68,540 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ (61,256) | $ (90,184) | $ (64,203) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | Securities Trading Plans of Directors and Executive Officers During the three months ended December 31, 2023, the following director, as defined in Rule 16a-1(f) of the Exchange Act, adopted a “Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K, as follows: On November 7, 2023 , Ms. Elisa Steele , a member of our board of directors , adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 1,957 ordinary shares. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until November 7, 2024 , or earlier if all transactions under the trading arrangement are completed. No other officers or directors, as defined in Rule 16a-1(f), adopted or terminated a “ Rule 10b5-1 trading arrangement ” or a “ non-Rule 10b5-1 trading arrangement ,” as defined in Item 408 of Regulation S-K, during the three months ended December 31, 2023. |
Ms. Elisa Steele [Member] | |
Trading Arrangements, by Individual | |
Name | Ms. Elisa Steele |
Title | a member of our board of directors |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | November 7, 2023 |
Termination Date | November 7, 2024 |
Arrangement Duration | 366 days |
Aggregate Available | 1,957 |
Other Officers or Directors [Member] | |
Trading Arrangements, by Individual | |
Name | No |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Organization and Description of
Organization and Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Description of Business | 1. Organization and Description of Business JFrog Ltd. (together with its subsidiaries, “JFrog”, or the “Company”) was incorporated under the laws of the State of Israel in 2008. JFrog provides an end-to-end, hybrid, universal Software Supply Chain Platform that enables organizations to continuously and securely create and deliver software updates across any system. This platform is the critical bridge between software development and deployment of that software, paving the way for modern software supply chain management and software release processes. The Company enables organizations to build and release software faster and more securely while empowering developers, security teams and Machine Learning Operations teams to be more efficient. The Company’s solutions are designed to run on-premise, in public or private clouds, or in hybrid environments. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. Summary of Significant Accounting Policies Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated benefit period of deferred contract acquisition costs, the allowance for credit losses, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. Foreign Currency The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Gains or losses from foreign currency re-measurement and settlements are included in interest and other income, net in the Consolidated Statement of Operations. Concentration of Risks Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, and regularly monitors their composition and maturities. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business. As of December 31, 2023 and 2022 , no single customer represented 10 % or more of accounts receivable. No single customer accounted for more than 10 % of total revenue for the periods presented. Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s credit cards and operating leases. Short-Term Investments Short-term investments consist of bank deposits and marketable securities. Bank deposits are time deposits with an original maturity of more than three months but less than one year from the date of investment. Bank deposits are presented at cost with accrued interest. Marketable securities consist of fixed-income debt securities with maturity of greater than three months at the date of purchase. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. Gains and losses are determined using the specific identification method and recognized when realized in the Consolidated Statements of Operations. The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in interest and other income, net in the Consolidated Statements of Operations. If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, marketable securities, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Bank deposits, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented. Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes. The Company recognizes its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. The cash flows from the derivative instruments are recorded in operating activities in the Consolidated Statements of Cash Flows. Contract Balances Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented. Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date. Cost to Obtain a Contract The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel and commissions paid to channel partners that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and channel partner programs and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values, and thus are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of four years, determined by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included primarily in sales and marketing expense in the Consolidated Statements of Operations. The Company expenses costs to obtain a contract with a customer as incurred when the amortization period would have been one year or less. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. Property and Equipment, Net Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life Capitalized Software Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented because the general release process for most of the Company’s products is essentially completed concurrently with the establishment of technological feasibility. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented. Leases The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. Business and Asset Acquisitions When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. Goodwill and Intangible Assets Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years Impairment of Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented. Revenue Recognition The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. Self-managed subscriptions and SaaS subscriptions are both offered on an annual and multi-year basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the beginning of the contract term or in annual installments. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears. Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps: 1. Identification of the contract, or contracts, with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract. For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period. For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. Cost of Revenue Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount. Research and Development Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred. Advertising Costs Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amount ed to $ 10.6 million, $ 8.6 mil lion, and $ 5.8 million for the years ended December 31, 2023, 2022, and 2021 , respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations. Share-Based Compensation Share-based compensation related to share options and share purchase rights granted under the Company’s employee share purchase plan is measured at the grant date based on the fair value of awards, using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The Company measures the grant date fair value of its restricted share units (“RSU”) based on the closing market price of the ordinary share on the date of grant. For share-based awards with only service-based vesting conditions, the compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based RSUs with market conditions, the Company uses Monte Carlo simulation model to determine the fair value and recognizes expense using the accelerated attribution method over the requisite service period. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited. Loss Contingency The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred. Interest and Other Income, Net Interest and other income, net primarily consists of income earned on cash equivalents and short-term investments and foreign exchange gains and losses. Interest income was $ 22.1 million, $ 5.9 million, and $ 1.5 million for the years ended December 31, 2023, 2022, and 2021 , respectively. Foreign exchange gains (losses) were not material for all periods presented. Income Taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company mak |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | 3. Revenue Recognition Disaggregation of Revenue The following table presents revenue by category: Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) Self-managed subscription $ 230,560 66 % $ 200,390 72 % $ 157,035 76 % Subscription 210,867 60 181,802 65 140,398 68 License 19,693 6 18,588 7 16,637 8 SaaS 119,326 34 79,650 28 49,648 24 Total subscription revenue $ 349,886 100 % $ 280,040 100 % $ 206,683 100 % The following table summarizes revenue by region based on the shipping address of customers: Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) United States $ 215,605 62 % $ 176,334 63 % $ 129,503 63 % Israel 9,332 3 6,893 2 4,543 2 Rest of world 124,949 35 96,813 35 72,637 35 Total subscription revenue $ 349,886 100 % $ 280,040 100 % $ 206,683 100 % Contract Balances Of the $ 175.7 million, $ 147.1 million and $ 102.8 million of deferred revenue recorded as of December 31, 2022, 2021 and 2020, respectively, the Company recognized $ 158.3 million, $ 129.1 million and $ 83.8 million as revenue during the years ended December 31, 2023, 2022, and 2021, respectively. Remaining Performance Obligation The Company’s remaining performance obligations are comprised of product and service revenue not yet delivered. As of December 31, 2023 , the aggregate amount of the transaction price allocated to remaining performance obligations was $ 259.8 million, which consists of billed considerations of $ 214.1 million and unbilled considerations of $ 45.7 million, that the Company expects to recognize as revenue. As of December 31, 2023 , the Company expects to recognize 84 % of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter. Cost to Obtain a Contract Amortization of deferred contract acquisition costs was $ 10.2 million, $ 7.2 million, and $ 4.6 million for the years ended December 31, 2023, 2022, and 2021 , respectively. |
Short-Term Investments
Short-Term Investments | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Short-Term Investments | 4. Short-Term Investments Short-term investments consist of bank deposits and marketable securities. As of December 31, 2023 and 2022 , bank deposits were $ 81.1 million and $ 96.0 million, respectively. Marketable securities consisted of the following: December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Certificates of deposit $ 2,455 $ — $ ( 21 ) $ 2,434 Commercial paper 8,927 — ( 6 ) 8,921 Corporate debt securities 162,515 234 ( 302 ) 162,447 Municipal securities 22,263 9 ( 36 ) 22,236 Government and agency debt 183,093 252 ( 250 ) 183,095 Total marketable securities $ 379,253 $ 495 $ ( 615 ) $ 379,133 December 31, 2022 Amortized Gross Gross Fair Value (in thousands) Certificates of deposit $ 2,204 $ — $ ( 51 ) $ 2,153 Commercial paper 38,164 2 ( 137 ) 38,029 Corporate debt securities 137,191 41 ( 859 ) 136,373 Municipal securities 38,543 23 ( 222 ) 38,344 Government and agency debt 87,149 7 ( 484 ) 86,672 Total marketable securities $ 303,251 $ 73 $ ( 1,753 ) $ 301,571 The following table summarizes the Company’s marketable securities by contractual maturities: December 31, 2023 (in thousands) Due in 1 year or less $ 273,273 Due in 1 year through 2 years 105,860 Total $ 379,133 The following table presents fair value and gross unrealized losses of the Company’s marketable securities that have been in a continuous loss position, aggregated by length of time: December 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Certificates of deposit $ 250 $ — $ 2,175 $ ( 21 ) $ 2,425 $ ( 21 ) Commercial paper 8,921 ( 6 ) — — 8,921 ( 6 ) Corporate debt securities 77,023 ( 177 ) 25,156 ( 125 ) 102,179 ( 302 ) Municipal securities 7,071 ( 6 ) 4,215 ( 30 ) 11,286 ( 36 ) Government and agency debt 99,236 ( 181 ) 8,972 ( 69 ) 108,208 ( 250 ) Total $ 192,501 $ ( 370 ) $ 40,518 $ ( 245 ) $ 233,019 $ ( 615 ) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Certificates of deposit $ 2,153 $ ( 51 ) $ — $ — $ 2,153 $ ( 51 ) Commercial paper 31,838 ( 137 ) — — $ 31,838 $ ( 137 ) Corporate debt securities 123,540 ( 859 ) — — $ 123,540 $ ( 859 ) Municipal securities 25,336 ( 222 ) — — $ 25,336 $ ( 222 ) Government and agency debt 71,781 ( 484 ) — — $ 71,781 $ ( 484 ) Total $ 254,648 $ ( 1,753 ) $ — $ — $ 254,648 $ ( 1,753 ) As of December 31, 2023 and 2022 , the unrealized losses related to marketable securities were determined to be not due to credit related losses. Therefore, the Company did no t recognize an allowance for credit losses. See Note 13, Accumulated Other Comprehensive Income (Loss) , for the realized gains or losses from available-for-sale marketable securities that were reclassified out of AOCI during the periods presented. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | 5. Fair Value Measurements The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2023 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 40,646 $ 40,646 $ — Government and agency debt 5,498 — $ 5,498 Cash equivalents 46,144 40,646 5,498 Certificates of deposit 2,434 — 2,434 Commercial paper 8,921 — 8,921 Corporate debt securities 162,447 — 162,447 Municipal securities 22,236 — 22,236 Government and agency debt 183,095 — 183,095 Marketable securities 379,133 — 379,133 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 1,189 — 1,189 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 235 — 235 Restricted bank deposits included in prepaid expenses and other current assets 12 — 12 Total financial assets $ 426,713 $ 40,646 $ 386,067 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 52 $ — $ 52 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 5 — 5 Total financial liabilities $ 57 $ — $ 57 December 31, 2022 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 9,562 $ 9,562 $ — Cash equivalents 9,562 9,562 — Certificates of deposit 2,153 — 2,153 Commercial paper 38,029 — 38,029 Corporate debt securities 136,373 — 136,373 Municipal securities 38,344 — 38,344 Government and agency debt 86,672 — 86,672 Marketable securities 301,571 — 301,571 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 20 — 20 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 21 — 21 Restricted bank deposits included in prepaid expenses and other current assets 12 — 12 Total financial assets $ 311,186 $ 9,562 $ 301,624 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 1,098 $ — $ 1,098 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 379 — 379 Total financial liabilities $ 1,477 $ — $ 1,477 As of December 31, 2023 and 2022 , the Company did no t have any assets or liabilities valued based on Level 3 valuations. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging | 6. Derivative Financial Instruments and Hedging Notional Amount of Foreign Currency Contracts The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows: December 31, 2023 2022 (in thousands) Derivatives Designated as Hedging Instruments: Foreign currency contracts $ 46,331 $ 42,854 Derivatives Not Designated as Hedging Instruments: Foreign currency contracts 18,903 17,555 Total derivative instruments $ 65,234 $ 60,409 Effect of Foreign Currency Contracts on the Consolidated Statements of Operations The gains (losses) on foreign currency contracts were presented on the Consolidated Statements of Operations as follows: Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, 2023 2022 2021 2023 2022 2021 Statement of Operations Location: (in thousands) Cost of revenue: subscription–self-managed and SaaS $ ( 359 ) $ ( 314 ) $ 74 $ — $ — $ — Research and development ( 2,982 ) ( 2,660 ) 504 — — — Sales and marketing ( 693 ) ( 540 ) 120 — — — General and administrative ( 798 ) ( 650 ) 166 — — — Interest and other income, net — 8 8 ( 593 ) ( 527 ) 345 Total gains (losses) recognized in earnings $ ( 4,832 ) $ ( 4,156 ) $ 872 $ ( 593 ) $ ( 527 ) $ 345 Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income Net unrealized gains (losses) of foreign currency contracts designated as hedging instruments, net of tax, are recorded in AOCI. See Note 13, Accumulated Other Comprehensive Income (Loss) , for the effect on other comprehensive income (loss) and the reclassification out of AOCI during the periods presented. All of net deferred losses in AOCI as of December 31, 2023 are expected to be recognized as operating expenses in the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates over the next twelve months. |
Consolidated Balance Sheet Comp
Consolidated Balance Sheet Components | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Consolidated Balance Sheet Components | 7. Consolidated Balance Sheet Components Property and Equipment, Net Property and equipment, net consisted of the following: December 31, 2023 2022 (in thousands) Computer and software $ 9,030 $ 8,330 Furniture and office equipment 3,135 2,802 Leasehold improvements 6,069 5,748 Property and equipment, gross 18,234 16,880 Less: accumulated depreciation and amortization ( 11,571 ) ( 8,859 ) Property and equipment, net $ 6,663 $ 8,021 Depreciation and amortization expense were $ 3.5 million, $ 3.1 million, and $ 2.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consisted of the following: December 31, 2023 2022 (in thousands) Accrued compensation and benefits $ 25,166 $ 20,892 Accrued expenses 10,649 7,956 Accrued expenses and other current liabilities $ 35,815 $ 28,848 |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Business Combinations | 8. Business Combinations Vdoo Connected Trust Ltd. On July 19, 2021, the Company acquired 100 % of the share capital of Vdoo Connected Trust Ltd. (“Vdoo”), a privately-held company in Israel, which provides a product security platform for automating all software security tasks throughout the entire product lifecycle. The acquisition accelerates the Company’s security technology expansion, aiming to deliver a holistic security solution as part of its Platform. The total purchase consideration transferred for the Vdoo acquisition was $ 299.5 million, compri sed of $ 217.7 million in cash and $ 81.8 million for the fair value of 1,823,266 shares of the Company’s ordinary shares issued. In addition to the purchase consideration and pursuant to holdback agreements with certain Vdoo employees, the Company transferred $ 13.2 million in cash and committed to issue 110,932 shares of the Company’s ordinary shares, which were released to these employees one to two years from the acquisition date, subject to their continued service. The Company also agreed to pay up to a $ 10.0 million retention bonus to Vdoo continuing employees in three annual installments following the acquisition date. The payouts or vesting of the holdback and the retention considerations are subject to continued employment, and therefore recognized as compensation expense over the requisite service period. In addition, pursuant to the purchase agreement, on July 19, 2021, the Company issued approximately $ 30.0 million of RSUs to Vdoo employees in accordance with the terms of the Company’s equity incentive plan, which would vest and be expensed over an approximately 4-year service period. The following table summarizes the fair value of assets acquired and liabilities assumed: July 19, 2021 (in thousands) Cash and cash equivalent $ 31,240 Other current assets 943 Intangible assets 45,500 Goodwill 224,852 Other noncurrent assets 2,692 Total assets acquired 305,227 Current liabilities 4,272 Noncurrent liabilities 1,501 Total liabilities assumed 5,773 Total purchase consideration $ 299,454 Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers. Goodwill is not deductible for income tax purpose. The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Developed technology $ 41,300 5.0 Customer relationships 4,200 6.0 Total intangible assets acquired $ 45,500 The results of operations of Vdoo have been included in the consolidated financial statements since the date of the acquisition. Additionally, the Company incurred transaction costs $ 0.7 million during the year ended December 31, 2021, which were included in general and administrative expenses in the Consolidated Statements of Operations. The following unaudited pro forma information presents the combined results of operations of the Company and Vdoo as if the acquisition of Vdoo had been completed on January 1, 2020. The unaudited pro forma results include adjustments primarily related to amortization of the acquired intangible assets, recognition of cash and share-based compensation associated with RSU grants, retention and holdback arrangements, as referenced above, as of the earliest period presented. The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020. Year Ended December 31, 2021 (in thousands) Revenue $ 207,824 Net loss $ 89,939 Upswift Ltd. In August 2021, the Company completed the acquisition of Upswift Ltd., a privately-held company providing device management platform for total consideration of $ 9.5 million, net of cash acquired. Of the purchase consideration, $ 4.3 million was attributed to identified intangible assets, $ 5.8 million to goodwill, and $ 0.6 million to net liabilities assumed. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | 9. Goodwill and Intangible Assets, Net Goodwill The following table represents the changes to goodwill: Carrying Amount (in thousands) Balance as of December 31, 2021 $ 247,776 Purchase price adjustment 179 Balance as of December 31, 2022 and 2023 $ 247,955 Intangible Assets, Net Intangible assets consisted of the following as of December 31, 2023: Gross Carrying Amount Accumulated Net Carrying Amount Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 27,779 ) $ 22,568 2.3 Customer relationships 5,541 ( 2,786 ) 2,755 3.1 Other intangible assets 1,132 ( 687 ) 445 0.9 Total $ 57,020 $ ( 31,252 ) $ 25,768 Intangible assets consisted of the following as of December 31, 2022: Gross Carrying Amount Accumulated Net Carrying Amount Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 17,434 ) $ 32,913 3.3 Customer relationships 5,541 ( 1,840 ) 3,701 4.1 Other intangible assets 1,132 ( 202 ) 930 1.9 Total $ 57,020 $ ( 19,476 ) $ 37,544 Amortization expenses for intangible assets were $ 11.8 million, $ 11.6 million and $ 5.9 million for the years ended December 31, 2023, 2022, and 2021, respectively. The expected future amortization expenses by year related to the intangible assets as of December 31, 2023 are as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 11,034 2025 9,110 2026 5,241 2027 383 Total $ 25,768 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | 10. Leases The Company has entered into non-cancelable lease agreements for its offices with lease periods expiring at various dates through March 2028. Components of operating lease expense were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease cost $ 9,144 $ 7,682 Short-term lease cost 571 527 Variable lease cost 398 377 Total operating lease cost $ 10,113 $ 8,586 Supplementary cash flow information related to operating leases was as follows: Year Ended December 31, 2023 2022 Cash paid for operating leases $ 8,453 $ 7,546 ROU assets obtained in exchange for new operating lease liabilities $ 2,867 $ 3,567 Adjustment to ROU assets upon modification of existing lease $ 3,415 $ 2,393 As of December 31, 2023 , the weighted-average discount rate is 3.3 % and the weighted-average remaining term is 2.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2023 were as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 8,895 2025 7,988 2026 4,716 2027 1,628 2028 156 Total operating lease payments 23,383 Less: imputed interest ( 1,157 ) Total operating lease liabilities $ 22,226 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 11. Commitments and Contingencies Non-cancelable Purchase Obligations In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for hosting services, as well as software products and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 16,346 2025 16,233 2026 108 Total $ 32,687 Indemnifications and Contingencies The Company enters into indemnification provisions under certain agreements with other parties in the ordinary course of business. In its customer agreements, the Company has agreed to indemnify, defend and hold harmless the indemnified party for third party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic customers, the Company has agreed to indemnify, defend and hold harmless the indemnified party for certain additional matters including but not limited to non-compliance with certain representations and warranties made by the Company. Grants from Israeli Innovation Authority The Company has received in the past grants from the Israeli Innovation Authority (“IIA”) and repaid them in full. Still, as any grant recipient, the Company is subject to the provisions of the Israeli Law for the Encouragement of Research, Development and Technological Innovation in the Industry and the regulations and guidelines thereunder (the “Innovation Law”). Pursuant to the Innovation Law, there are restrictions related to transferring intellectual property outside of Israel. Such transfer requires the approval from the IIA. The approval may be subject to a maximum additional payment amount of approximately $ 6.0 million. In the past, the Company received an approval from the IIA to perform a limited development of IIA funded know-how outside of Israel , subject to the terms specified in the IIA approval, including that all of its core R&D activities will remain in Israel. Legal Proceedings The Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together, have a material adverse effect on its business, financial position, results of operations, or cash flows. Former Company sales employees (the “Former Employees”), on behalf of themselves and other non-exempt sales employees, alleged the violation of various wage and hour laws and have sought to recover unpaid wages, statutory penalties, civil penalties, liquidated damages, and attorney’s fees pursuant to certain California and federal laws. The Company denies the allegations. The Company and Former Employees settled the dispute amicably through arbitration for approximately $ 2.6 million in September 2022. Subsequently, all settlement payments were distributed. The Company had previously accrued a sufficient amount for the estimated settlement in its sales and marketing expenses in the fourth quarter of 2021. |
Shareholders' Equity and Equity
Shareholders' Equity and Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Shareholders' Equity and Equity Incentive Plans | 12. Shareholders’ Equity and Equity Incentive Plans Preferred and Ordinary Shares The Company’s amended and restated articles of association (“AoA”) authorized the issuance of 50,000,000 preferred shares and 500,000,000 ordinary shares, each with a par value of NIS 0.01 . All ordinary shares will have identical voting and other rights in all respects. The Company’s AoA does not require shareholder approval of a dividend distribution and provides that dividend distributions may be determined by the Company’s board of directors. To date, no dividends have been declared. The Company has the following ordinary shares reserved for future issuance: December 31, 2023 Outstanding share options 5,110,390 Outstanding RSUs 10,006,997 Shares available for future issuance under the 2020 Plan 14,214,984 Shares available for future issuance under ESPP 4,281,665 Total ordinary shares reserved 33,614,036 Equity Incentive Plans In September 2020, the Company adopted the 2020 Share Incentive Plan (“2020 Plan”), which replaced the 2011 Israeli Share Option Plan (“2011 Plan”). The Company ceased granting awards under the 2011 Plan. The equity awards outstanding under the 2011 Plan continue to be governed by the 2011 Plan. These awards generally vest over five years and expire 10 years after the date of grant. The 2020 Plan provides for the grant of share options, ordinary shares, restricted shares, restricted share units and other share-based awards. The maximum number of ordinary shares available for issuance under the 2020 Plan is equal to the sum of (i) 9,100,000 ordinary shares plus, (ii) the number of ordinary shares remaining available for issuance under the 2011 Plan as of the date it was replaced, and (iii) the number of ordinary shares that become available under the 2011 Plan as a result of expiration, forfeiture, cancellation, or settlement in cash, with the maximum number of shares to be added to the 2020 Plan pursuant to the 2011 Plan equal to 15,309,367 shares. In addition, the number of shares available for issuance under the Company’s 2020 Plan also includes an annual increase on January 1 of each year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to the least of (i) 9,100,000 ordinary shares, (ii) five percent ( 5 %) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year on a fully diluted basis, or (iii) such number of shares determined by the Company’s board of directors. The contractual term for each award granted under the 2020 Plan will be 10 years . Effective January 1, 2023 , the number of ordinary shares authorized for issuance under the 2020 Plan automatically increased by 5,819,265 shares. Share Options A summary of share option activity under the Company’s equity incentive plans and related information is as follows: Options Outstanding Outstanding Weighted-Average Exercise Weighted-Average Remaining Aggregate (in thousands, except share, life and per share data) Balance as of December 31, 2022 7,205,324 $ 7.88 5.4 $ 101,334 Exercised ( 1,899,722 ) $ 5.31 $ 38,903 Forfeited ( 195,212 ) $ 17.04 Balance as of December 31, 2023 5,110,390 $ 8.49 4.1 $ 134,171 Exercisable as of December 31, 2023 4,434,819 $ 7.07 3.8 $ 122,537 The total intrinsic value of option exercised during the years ended December 31, 2022 and 2021 was $ 44.8 million and $ 118.7 million, respectively. Restricted Share Units A summary of RSU activity under the Company's equity incentive plan is as follows, including performance-based RSUs with market condition: RSUs Unvested RSUs Weighted-Average Unvested as of December 31, 2022 7,981,147 $ 26.90 Granted 6,605,426 $ 25.38 Vested ( 2,882,729 ) $ 27.15 Forfeited ( 1,696,847 ) $ 26.35 Unvested as of December 31, 2023 10,006,997 $ 25.91 The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2022 and 2021 was $ 21.40 and $ 45.97 , respectively. The total fair value of RSUs, as of their respective release dates, was $ 75.2 million, $ 22.9 million, and $ 23.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. Employee Share Purchase Plan In August 2020, the Company adopted the 2020 Employee Share Purchase Plan (“ESPP”), which became effective in September 2020. A total of 2,100,000 ordinary shares are available for sale under the ESPP. The number of ordinary shares available for sale under the ESPP also includes an annual increase on the first day of each fiscal year beginning with 2021, equal to the least of (i) 2,100,000 ordinary shares, (ii) one percent ( 1 %) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year, or (iii) such other amount as may be determined by the Company’s board of directors. Eligible employees can contribute up to 15 % of their eligible compensation to purchase the Company’s ordinary shares, not to exceed $25,000 of fair market value of the ordinary shares for each calendar year or 1,250 ordinary shares during an offering period. The purchase price of the shares will be 85 % of the lower of the fair market value of the Company’s ordinary shares on the first trading day of the offering period or on the exercise date. Participants may end their participation at any time during an offering period and unused contributions will be refunded. Participation ends automatically upon termination of employment with the Company. The Company’s ESPP provides for consecutive six-month offering periods. The offering periods are scheduled to start on the first trading day on or after March 1 and September 1 of each year, with the first offering period commenced on March 1, 2021. Effective January 1, 2023 , the number of ordinary shares authorized for issuance under the ESPP automatically increased by 1,009,633 shares. The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows: Year Ended December 31, 2023 2022 2021 Expected term (years) 0.5 0.5 0.5 Expected volatility 44.4 % - 55.1 % 51.7 % - 58.5 % 56.9 % - 64.8 % Risk-free interest rate 5.20 % - 5.47 % 0.16 % - 3.3 % 0.1 % Expected dividend yield 0.0 % 0.0 % 0.0 % Share-Based Compensation The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 9,784 $ 6,991 $ 4,027 Research and development 32,689 24,664 14,572 Sales and marketing 30,338 22,753 15,256 General and administrative 22,360 14,253 23,094 Total share-based compensation expense $ 95,171 $ 68,661 $ 56,949 As of December 31, 2023 , unrecognized share-based compensation cost related to unvested share-based compensation awards was $ 241.6 million, which is expected to be recognized over a weighted-average period of 2.8 years. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | 13. Accumulated Other Comprehensive Income (Loss) The following table summarizes the changes in AOCI by component, net of tax, during the periods presented: Net Unrealized Net Unrealized Total (in thousands) Balance as of December 31, 2021 $ ( 264 ) $ 875 $ 611 Other comprehensive loss before reclassifications ( 1,428 ) ( 6,109 ) ( 7,537 ) Net realized losses (gains) reclassified from AOCI ( 2 ) 4,156 4,154 Other comprehensive loss ( 1,430 ) ( 1,953 ) ( 3,383 ) Balance as of December 31, 2022 ( 1,694 ) ( 1,078 ) ( 2,772 ) Other comprehensive income (loss) before reclassifications 1,414 ( 2,617 ) ( 1,203 ) Net realized losses reclassified from AOCI 156 4,832 4,988 Other comprehensive income 1,570 2,215 3,785 Balance as of December 31, 2023 $ ( 124 ) $ 1,137 $ 1,013 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 14. Income Taxes Ordinary taxable income in Israel is subject to a corporate tax rate of 23 %. The Company applies various benefits allotted to it under the revised Investment Law as per Amendment 73, which includes a number of changes to the Investment Law regimes through regulations that have come into effect from January 1, 2017. Applicable benefits under the new regime include: • Introduction of a benefit regime for “Preferred Technology Enterprises” (“PTE”), granting a 12 % tax rate in central Israel on income deriving from Benefited Intangible Assets, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual R&D expenditure and R&D employees, as well as having at least 25 % of annual income derived from exports to large markets. • A 12 % capital gains tax rate on the sale of a preferred intangible asset to a foreign affiliated enterprise, provided that the asset was initially purchased from a foreign resident at an amount of NIS 200 million or more. • A withholding tax rate of 20 % for dividends paid from PTE income (with an exemption from such withholding tax applying to dividends paid to an Israeli com pany) may be reduced to 4 % on dividends paid to a foreign resident company, subject to certain conditions regarding percentage of foreign ownership of the distributing entity. The Company adopted the PTE status since 2017 and believes it is eligible for its tax benefits. The Company’s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. The components of the net loss before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Israel $ ( 73,560 ) $ ( 99,434 ) $ ( 38,900 ) Foreign 19,044 14,688 ( 28,725 ) Total $ ( 54,516 ) $ ( 84,746 ) $ ( 67,625 ) Income tax expense (benefit) was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Current: Israel $ — $ — $ ( 369 ) Foreign 5,753 3,967 549 Total current income tax expense 5,753 3,967 180 Deferred: Israel — — ( 371 ) Foreign 987 1,471 ( 3,231 ) Total deferred income tax expense (benefit) 987 1,471 ( 3,602 ) Income tax expense (benefit) $ 6,740 $ 5,438 $ ( 3,422 ) A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows: Year Ended December 31, 2023 2022 2021 Theoretical income tax benefit 23 % 23 % 23 % PTE ( 15 ) ( 13 ) ( 5 ) Foreign tax rate differentials 2 3 1 Share-based compensation ( 2 ) ( 6 ) ( 4 ) Change in valuation allowance ( 16 ) ( 13 ) ( 6 ) Unrecognized tax benefits ( 1 ) — ( 3 ) Acquisition costs ( 1 ) ( 1 ) ( 1 ) Other ( 2 ) 1 — Total ( 12 )% ( 6 )% 5 % Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2023 2022 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 20,070 $ 16,336 Research and development expenses 7,843 8,669 Accruals and reserves 971 1,580 Share-based compensation 13,024 7,436 Deferred revenue 2,403 2,217 Operating lease liabilities 1,602 2,406 Gross deferred tax assets 45,913 38,644 Valuation allowance ( 31,585 ) ( 22,690 ) Total deferred tax assets 14,328 15,954 Deferred tax liabilities: Intangible assets ( 2,997 ) ( 4,297 ) Deferred contract acquisition costs ( 5,089 ) ( 3,917 ) Operating lease ROU assets ( 1,563 ) ( 2,236 ) Share-based compensation ( 947 ) ( 632 ) Property and equipment ( 155 ) ( 318 ) Gross deferred tax liabilities ( 10,751 ) ( 11,400 ) Net deferred tax assets $ 3,577 $ 4,554 A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset certain deferred tax assets at December 31, 2023 and 2022 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. The net change in the total valuation allowance for the years ended December 31, 2023, 2022, and 2021 was an increase of $ 8.9 million, $ 10.1 million and $ 4.7 million, respectively. As of December 31, 2023 , the Company had $ 138.8 million in net operating loss carryforwards in Israel, which can be carried forward indefinitely. As of December 31, 2023 , the U.S. subsidiary had state net operating loss carryforwards of $ 51.5 million available to offset future taxable income, which will expire between 2034 and 2043, if not utilized. The U.S. subsidiary had an immaterial federal net operating loss carryforward as of December 31, 2023. As of December 31, 2023 , certain foreign subsidiaries of the Company had undistributed earnings of $ 6.7 million, which were designated as indefinitely reinvested. If these earnings were repatriated to Israel, it would be subject to income taxes and to an adjustment for foreign tax credits and foreign withholding ta xes. The Company has estimated the amount of unrecognized deferred tax liability related to these earnings to be approximately $ 0.6 million. A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Unrecognized Tax Benefits (in thousands) Balance - December 31, 2020 $ 2,738 Increase related to prior years’ tax positions 86 Decrease related to prior years’ tax positions ( 2 ) Increase related to current year’s tax positions 2,039 Decrease related to settlements with tax authorities ( 446 ) Decrease due to lapse of statutes of limitations ( 19 ) Balance - December 31, 2021 4,396 Increase related to prior years’ tax positions 289 Increase related to current year’s tax positions 176 Decrease due to lapse of statutes of limitations ( 38 ) Balance - December 31, 2022 4,823 Increase related to prior years’ tax positions 149 Decrease related to prior years’ tax positions ( 24 ) Increase related to current year’s tax positions 464 Decrease due to lapse of statutes of limitations ( 13 ) Balance - December 31, 2023 $ 5,399 As of December 31, 2023, the total amount of gross unrecognized tax benefits was $ 5.4 million, of which, $ 3.9 million, if recognized, would favorably affect the Company’s effective tax rate. The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2023 and 2022, accrued interest and penalties related to uncertain tax positions were immaterial. The Company has net operating losses from prior tax periods which may be subjected to examination in future periods. As of December 31, 2023, the Company’s tax years after 2019 are open to examination in Israel. Its U.S. subsidiary’s tax filings for tax years after 2019 are open to examinations by U.S. federal tax authorities and tax years after 2018 are open to examinations by U.S. state tax authorities. In addition, the U.S. federal tax returns were settled through 2018 except for any adjustments which might be made as a result of the carryback of net operating losses. The Company currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 15. Employee Benefit Plans The Company has a defined-contribution plan in the U.S. intended to qualify under Section 401 of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. The Company matches 50 % of participating employee contributions to the plan up to 6 % of the employee’s eligible compensation. During the years ended December 31, 2023, 2022, and 2021 , the Company recorded $ 1.6 million, $ 1.4 million and $ 1.1 million, respectively, of expenses related to the 401(k) plan. Israeli Severance Pay Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The Company has elected to include its employees in Israel under Section 14 of the Severance Pay Law, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33 % of their monthly salary. These payments release the Company from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees; therefore, any liability for severance pay due to these employees, and the deposits under Section 14 are not recorded as an asset in the Consolidated Balance Sheets. During the years ended December 31, 2023, 2022, and 2021 , the Company recorded $ 6.2 million, $ 5.5 million, and $ 3.6 million, respectively, in severance expenses related to these employees. |
Net Loss Per Share
Net Loss Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Loss Per Share | 16. Net Loss Per Share The following table sets forth the computation of basic and diluted net loss per share for the periods presented: Year Ended December 31, 2023 2022 2021 (in thousands, except share and per share data) Numerator: Net loss $ ( 61,256 ) $ ( 90,184 ) $ ( 64,203 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 103,317,759 99,243,894 94,783,082 Net loss per share, basic and diluted $ ( 0.59 ) $ ( 0.91 ) $ ( 0.68 ) The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended December 31, 2023 2022 2021 Outstanding share options 6,264,883 8,268,711 11,229,241 Unvested RSUs 9,298,748 6,223,077 2,331,607 Share purchase rights under the ESPP 155,276 101,787 79,450 Issuable ordinary shares related to business combination 27,505 104,715 140,385 Total 15,746,412 14,698,290 13,780,683 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated benefit period of deferred contract acquisition costs, the allowance for credit losses, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates. |
Foreign Currency | Foreign Currency The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Gains or losses from foreign currency re-measurement and settlements are included in interest and other income, net in the Consolidated Statement of Operations. |
Concentration of Risks | Concentration of Risks Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, and regularly monitors their composition and maturities. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business. As of December 31, 2023 and 2022 , no single customer represented 10 % or more of accounts receivable. No single customer accounted for more than 10 % of total revenue for the periods presented. |
Cash, Cash Equivalents, and Restricted Cash | Cash, Cash Equivalents, and Restricted Cash Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s credit cards and operating leases. |
Short-Term Investments | Short-Term Investments Short-term investments consist of bank deposits and marketable securities. Bank deposits are time deposits with an original maturity of more than three months but less than one year from the date of investment. Bank deposits are presented at cost with accrued interest. Marketable securities consist of fixed-income debt securities with maturity of greater than three months at the date of purchase. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. Gains and losses are determined using the specific identification method and recognized when realized in the Consolidated Statements of Operations. The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in interest and other income, net in the Consolidated Statements of Operations. If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors. |
Fair Value Measurements | Fair Value Measurements Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value: Level 1 – Quoted prices in active markets for identical assets or liabilities. Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, marketable securities, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Bank deposits, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. |
AccountsReceivable, Net | Accounts Receivable, Net Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented. |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes. The Company recognizes its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. The cash flows from the derivative instruments are recorded in operating activities in the Consolidated Statements of Cash Flows. |
Contract Balances | Contract Balances Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented. Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date. |
Cost to Obtain a Contract | Cost to Obtain a Contract The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel and commissions paid to channel partners that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and channel partner programs and if the commissions are incremental and would not have occurred absent the customer contract. Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values, and thus are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of four years, determined by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included primarily in sales and marketing expense in the Consolidated Statements of Operations. The Company expenses costs to obtain a contract with a customer as incurred when the amortization period would have been one year or less. The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented. |
Property and Equipment, Net | Property and Equipment, Net Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Expenditures for maintenance and repairs are expensed as incurred. The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Capitalized Software Costs | Capitalized Software Costs Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented because the general release process for most of the Company’s products is essentially completed concurrently with the establishment of technological feasibility. Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented. |
Leases | Leases The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases. Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term. The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term. |
Business and Asset Acquisitions | Business and Asset Acquisitions When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations. The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented. Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented. |
Revenue Recognition | Revenue Recognition The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. Self-managed subscriptions and SaaS subscriptions are both offered on an annual and multi-year basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the beginning of the contract term or in annual installments. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears. Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps: 1. Identification of the contract, or contracts, with the customer The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. 2. Identification of the performance obligations in the contract Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract. For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period. For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation. 3. Determination of the transaction price The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts. 4. Allocation of the transaction price to the performance obligations in the contract If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately. 5. Recognition of the revenue when, or as, a performance obligation is satisfied Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. |
Cost of Revenue | Cost of Revenue Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount. |
Research and Development | Research and Development Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred. |
Advertising Costs | Advertising Costs Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amount ed to $ 10.6 million, $ 8.6 mil lion, and $ 5.8 million for the years ended December 31, 2023, 2022, and 2021 , respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations. |
Share-Based Compensation | Share-Based Compensation Share-based compensation related to share options and share purchase rights granted under the Company’s employee share purchase plan is measured at the grant date based on the fair value of awards, using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The Company measures the grant date fair value of its restricted share units (“RSU”) based on the closing market price of the ordinary share on the date of grant. For share-based awards with only service-based vesting conditions, the compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based RSUs with market conditions, the Company uses Monte Carlo simulation model to determine the fair value and recognizes expense using the accelerated attribution method over the requisite service period. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited. |
Loss Contingency | Loss Contingency The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred. |
Interest and Other Income ,Net | Interest and Other Income, Net Interest and other income, net primarily consists of income earned on cash equivalents and short-term investments and foreign exchange gains and losses. Interest income was $ 22.1 million, $ 5.9 million, and $ 1.5 million for the years ended December 31, 2023, 2022, and 2021 , respectively. Foreign exchange gains (losses) were not material for all periods presented. |
Income Taxes | Income Taxes The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized. The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made. |
Net Loss Per Share | Net Loss Per Share The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period, including share options and restricted share units. |
Segment Information | Segment Information The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level. Revenue by geographical region can be found in Note 3, Revenue Recognition . The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets: December 31, 2023 2022 (in thousands) United States $ 8,566 $ 11,569 Israel 15,888 17,887 India 4,054 2,246 Rest of world 582 931 Total long-lived assets $ 29,090 $ 32,633 |
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements In November 2023, the Financial Accounting Standard Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures , which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. In addition, it provides new segment disclosure requirements for entities with a single reportable segment. The guidance will be effective for the Company for annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures , which requires disaggregated information about the effective tax rate reconciliation as well as information on income taxes paid. The guidance will be effective for the Company for annual periods beginning January 1, 2025, with e arly adoption permitted. The Company is currently evaluating the impact on its financial statement disclosures. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Summary Of Significant Accounting Policies abstract [Abstract] | |
Summary of Estimated Useful Lives of the Company's Property and Equipment | The estimated useful lives of the Company’s property and equipment are as follows: Computer and software 3 years Furniture and office equipment 3 - 7 years Leasehold improvements Shorter of remaining lease term or estimated useful life |
Summary of Estimated Useful Lives of the Company's Intangible Assets | The estimated useful lives of the Company’s intangible assets are as follows: Developed technology 3 - 6 years Customer relationships 3 - 6 years Other intangible assets 3 years |
Summary of Long Lived Assets by Geographic Region | Revenue by geographical region can be found in Note 3, Revenue Recognition . The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets: December 31, 2023 2022 (in thousands) United States $ 8,566 $ 11,569 Israel 15,888 17,887 India 4,054 2,246 Rest of world 582 931 Total long-lived assets $ 29,090 $ 32,633 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Summary of table presents revenue as follows | The following table presents revenue by category: Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) Self-managed subscription $ 230,560 66 % $ 200,390 72 % $ 157,035 76 % Subscription 210,867 60 181,802 65 140,398 68 License 19,693 6 18,588 7 16,637 8 SaaS 119,326 34 79,650 28 49,648 24 Total subscription revenue $ 349,886 100 % $ 280,040 100 % $ 206,683 100 % |
Summary of table by region based on the shipping address of customers | The following table summarizes revenue by region based on the shipping address of customers: Year Ended December 31, 2023 2022 2021 Amount Percentage Amount Percentage Amount Percentage (in thousands, except percentages) United States $ 215,605 62 % $ 176,334 63 % $ 129,503 63 % Israel 9,332 3 6,893 2 4,543 2 Rest of world 124,949 35 96,813 35 72,637 35 Total subscription revenue $ 349,886 100 % $ 280,040 100 % $ 206,683 100 % |
Short-Term Investments (Tables)
Short-Term Investments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, All Other Investments [Abstract] | |
Summary of Marketable Securities | Marketable securities consisted of the following: December 31, 2023 Amortized Gross Gross Fair Value (in thousands) Certificates of deposit $ 2,455 $ — $ ( 21 ) $ 2,434 Commercial paper 8,927 — ( 6 ) 8,921 Corporate debt securities 162,515 234 ( 302 ) 162,447 Municipal securities 22,263 9 ( 36 ) 22,236 Government and agency debt 183,093 252 ( 250 ) 183,095 Total marketable securities $ 379,253 $ 495 $ ( 615 ) $ 379,133 December 31, 2022 Amortized Gross Gross Fair Value (in thousands) Certificates of deposit $ 2,204 $ — $ ( 51 ) $ 2,153 Commercial paper 38,164 2 ( 137 ) 38,029 Corporate debt securities 137,191 41 ( 859 ) 136,373 Municipal securities 38,543 23 ( 222 ) 38,344 Government and agency debt 87,149 7 ( 484 ) 86,672 Total marketable securities $ 303,251 $ 73 $ ( 1,753 ) $ 301,571 |
Summary of Company's Marketable Securities by Contractual Maturities | The following table summarizes the Company’s marketable securities by contractual maturities: December 31, 2023 (in thousands) Due in 1 year or less $ 273,273 Due in 1 year through 2 years 105,860 Total $ 379,133 |
Summary of Presents Fair Value and Gross Unrealized Losses of the Company's Marketable Securities | The following table presents fair value and gross unrealized losses of the Company’s marketable securities that have been in a continuous loss position, aggregated by length of time: December 31, 2023 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Certificates of deposit $ 250 $ — $ 2,175 $ ( 21 ) $ 2,425 $ ( 21 ) Commercial paper 8,921 ( 6 ) — — 8,921 ( 6 ) Corporate debt securities 77,023 ( 177 ) 25,156 ( 125 ) 102,179 ( 302 ) Municipal securities 7,071 ( 6 ) 4,215 ( 30 ) 11,286 ( 36 ) Government and agency debt 99,236 ( 181 ) 8,972 ( 69 ) 108,208 ( 250 ) Total $ 192,501 $ ( 370 ) $ 40,518 $ ( 245 ) $ 233,019 $ ( 615 ) December 31, 2022 Less Than 12 Months 12 Months or Greater Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Certificates of deposit $ 2,153 $ ( 51 ) $ — $ — $ 2,153 $ ( 51 ) Commercial paper 31,838 ( 137 ) — — $ 31,838 $ ( 137 ) Corporate debt securities 123,540 ( 859 ) — — $ 123,540 $ ( 859 ) Municipal securities 25,336 ( 222 ) — — $ 25,336 $ ( 222 ) Government and agency debt 71,781 ( 484 ) — — $ 71,781 $ ( 484 ) Total $ 254,648 $ ( 1,753 ) $ — $ — $ 254,648 $ ( 1,753 ) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Value by Balance Sheet Grouping | The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis: December 31, 2023 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 40,646 $ 40,646 $ — Government and agency debt 5,498 — $ 5,498 Cash equivalents 46,144 40,646 5,498 Certificates of deposit 2,434 — 2,434 Commercial paper 8,921 — 8,921 Corporate debt securities 162,447 — 162,447 Municipal securities 22,236 — 22,236 Government and agency debt 183,095 — 183,095 Marketable securities 379,133 — 379,133 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 1,189 — 1,189 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 235 — 235 Restricted bank deposits included in prepaid expenses and other current assets 12 — 12 Total financial assets $ 426,713 $ 40,646 $ 386,067 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 52 $ — $ 52 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 5 — 5 Total financial liabilities $ 57 $ — $ 57 December 31, 2022 Fair Value Level 1 Level 2 (in thousands) Financial Assets: Money market funds $ 9,562 $ 9,562 $ — Cash equivalents 9,562 9,562 — Certificates of deposit 2,153 — 2,153 Commercial paper 38,029 — 38,029 Corporate debt securities 136,373 — 136,373 Municipal securities 38,344 — 38,344 Government and agency debt 86,672 — 86,672 Marketable securities 301,571 — 301,571 Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets 20 — 20 Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets 21 — 21 Restricted bank deposits included in prepaid expenses and other current assets 12 — 12 Total financial assets $ 311,186 $ 9,562 $ 301,624 Financial Liabilities: Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities $ 1,098 $ — $ 1,098 Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities 379 — 379 Total financial liabilities $ 1,477 $ — $ 1,477 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Disclosure of notional amount of derivatives by hedging designation | The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows: December 31, 2023 2022 (in thousands) Derivatives Designated as Hedging Instruments: Foreign currency contracts $ 46,331 $ 42,854 Derivatives Not Designated as Hedging Instruments: Foreign currency contracts 18,903 17,555 Total derivative instruments $ 65,234 $ 60,409 |
Derivative instruments, gain (loss) | The gains (losses) on foreign currency contracts were presented on the Consolidated Statements of Operations as follows: Derivatives Designated as Hedging Instruments Derivatives Not Designated as Hedging Instruments December 31, December 31, 2023 2022 2021 2023 2022 2021 Statement of Operations Location: (in thousands) Cost of revenue: subscription–self-managed and SaaS $ ( 359 ) $ ( 314 ) $ 74 $ — $ — $ — Research and development ( 2,982 ) ( 2,660 ) 504 — — — Sales and marketing ( 693 ) ( 540 ) 120 — — — General and administrative ( 798 ) ( 650 ) 166 — — — Interest and other income, net — 8 8 ( 593 ) ( 527 ) 345 Total gains (losses) recognized in earnings $ ( 4,832 ) $ ( 4,156 ) $ 872 $ ( 593 ) $ ( 527 ) $ 345 |
Consolidated Balance Sheet Co_2
Consolidated Balance Sheet Components (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Balance Sheet Related Disclosures [Abstract] | |
Summary of property and equipment | Property and equipment, net consisted of the following: December 31, 2023 2022 (in thousands) Computer and software $ 9,030 $ 8,330 Furniture and office equipment 3,135 2,802 Leasehold improvements 6,069 5,748 Property and equipment, gross 18,234 16,880 Less: accumulated depreciation and amortization ( 11,571 ) ( 8,859 ) Property and equipment, net $ 6,663 $ 8,021 |
Summary of accrued expenses and other current liabilities | Accrued expenses and other current liabilities consisted of the following: December 31, 2023 2022 (in thousands) Accrued compensation and benefits $ 25,166 $ 20,892 Accrued expenses 10,649 7,956 Accrued expenses and other current liabilities $ 35,815 $ 28,848 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combinations [Abstract] | |
Summary of fair value of assets acquired and liabilities (Details) | The following table summarizes the fair value of assets acquired and liabilities assumed: July 19, 2021 (in thousands) Cash and cash equivalent $ 31,240 Other current assets 943 Intangible assets 45,500 Goodwill 224,852 Other noncurrent assets 2,692 Total assets acquired 305,227 Current liabilities 4,272 Noncurrent liabilities 1,501 Total liabilities assumed 5,773 Total purchase consideration $ 299,454 |
Summary of components of identifiable intangible assets acquired and their estimated useful lives | The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition: Fair Value Useful Life (in thousands) (in years) Developed technology $ 41,300 5.0 Customer relationships 4,200 6.0 Total intangible assets acquired $ 45,500 |
Summary of Unaudited Pro Forma Information | The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020. Year Ended December 31, 2021 (in thousands) Revenue $ 207,824 Net loss $ 89,939 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of changes in goodwill | The following table represents the changes to goodwill: Carrying Amount (in thousands) Balance as of December 31, 2021 $ 247,776 Purchase price adjustment 179 Balance as of December 31, 2022 and 2023 $ 247,955 |
Summary of intangible assets | Intangible assets consisted of the following as of December 31, 2023: Gross Carrying Amount Accumulated Net Carrying Amount Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 27,779 ) $ 22,568 2.3 Customer relationships 5,541 ( 2,786 ) 2,755 3.1 Other intangible assets 1,132 ( 687 ) 445 0.9 Total $ 57,020 $ ( 31,252 ) $ 25,768 Intangible assets consisted of the following as of December 31, 2022: Gross Carrying Amount Accumulated Net Carrying Amount Weighted- (in thousands) (in years) Developed technology $ 50,347 $ ( 17,434 ) $ 32,913 3.3 Customer relationships 5,541 ( 1,840 ) 3,701 4.1 Other intangible assets 1,132 ( 202 ) 930 1.9 Total $ 57,020 $ ( 19,476 ) $ 37,544 |
Summary of expected future amortization expenses by year related to the intangible assets | The expected future amortization expenses by year related to the intangible assets as of December 31, 2023 are as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 11,034 2025 9,110 2026 5,241 2027 383 Total $ 25,768 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Components of Operating Lease Expense | Components of operating lease expense were as follows: Year Ended December 31, 2023 2022 (in thousands) Operating lease cost $ 9,144 $ 7,682 Short-term lease cost 571 527 Variable lease cost 398 377 Total operating lease cost $ 10,113 $ 8,586 |
Supplementary Cash Flow Information Related to Operating Leases | Supplementary cash flow information related to operating leases was as follows: Year Ended December 31, 2023 2022 Cash paid for operating leases $ 8,453 $ 7,546 ROU assets obtained in exchange for new operating lease liabilities $ 2,867 $ 3,567 Adjustment to ROU assets upon modification of existing lease $ 3,415 $ 2,393 |
Schedule of Maturities of Operating Lease Liabilities | As of December 31, 2023 , the weighted-average discount rate is 3.3 % and the weighted-average remaining term is 2.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2023 were as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 8,895 2025 7,988 2026 4,716 2027 1,628 2028 156 Total operating lease payments 23,383 Less: imputed interest ( 1,157 ) Total operating lease liabilities $ 22,226 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of outstanding non-cancelable purchase obligations | In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for hosting services, as well as software products and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows: December 31, 2023 (in thousands) Year Ending December 31, 2024 $ 16,346 2025 16,233 2026 108 Total $ 32,687 |
Shareholders' Equity and Equi_2
Shareholders' Equity and Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of ordinary shares reserved for future issuance | The Company has the following ordinary shares reserved for future issuance: December 31, 2023 Outstanding share options 5,110,390 Outstanding RSUs 10,006,997 Shares available for future issuance under the 2020 Plan 14,214,984 Shares available for future issuance under ESPP 4,281,665 Total ordinary shares reserved 33,614,036 |
Summary of stock option activity | A summary of share option activity under the Company’s equity incentive plans and related information is as follows: Options Outstanding Outstanding Weighted-Average Exercise Weighted-Average Remaining Aggregate (in thousands, except share, life and per share data) Balance as of December 31, 2022 7,205,324 $ 7.88 5.4 $ 101,334 Exercised ( 1,899,722 ) $ 5.31 $ 38,903 Forfeited ( 195,212 ) $ 17.04 Balance as of December 31, 2023 5,110,390 $ 8.49 4.1 $ 134,171 Exercisable as of December 31, 2023 4,434,819 $ 7.07 3.8 $ 122,537 |
Summary of restricted ordinary shares | A summary of RSU activity under the Company's equity incentive plan is as follows, including performance-based RSUs with market condition: RSUs Unvested RSUs Weighted-Average Unvested as of December 31, 2022 7,981,147 $ 26.90 Granted 6,605,426 $ 25.38 Vested ( 2,882,729 ) $ 27.15 Forfeited ( 1,696,847 ) $ 26.35 Unvested as of December 31, 2023 10,006,997 $ 25.91 |
Summary of stock-based compensation expense | The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Cost of revenue: subscription–self-managed and SaaS $ 9,784 $ 6,991 $ 4,027 Research and development 32,689 24,664 14,572 Sales and marketing 30,338 22,753 15,256 General and administrative 22,360 14,253 23,094 Total share-based compensation expense $ 95,171 $ 68,661 $ 56,949 |
Employee Share Purchase Plan [Member] | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |
Summary of valuation assumptions of employee options at grant dates | The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows: Year Ended December 31, 2023 2022 2021 Expected term (years) 0.5 0.5 0.5 Expected volatility 44.4 % - 55.1 % 51.7 % - 58.5 % 56.9 % - 64.8 % Risk-free interest rate 5.20 % - 5.47 % 0.16 % - 3.3 % 0.1 % Expected dividend yield 0.0 % 0.0 % 0.0 % |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Summary of changes in AOCI | The following table summarizes the changes in AOCI by component, net of tax, during the periods presented: Net Unrealized Net Unrealized Total (in thousands) Balance as of December 31, 2021 $ ( 264 ) $ 875 $ 611 Other comprehensive loss before reclassifications ( 1,428 ) ( 6,109 ) ( 7,537 ) Net realized losses (gains) reclassified from AOCI ( 2 ) 4,156 4,154 Other comprehensive loss ( 1,430 ) ( 1,953 ) ( 3,383 ) Balance as of December 31, 2022 ( 1,694 ) ( 1,078 ) ( 2,772 ) Other comprehensive income (loss) before reclassifications 1,414 ( 2,617 ) ( 1,203 ) Net realized losses reclassified from AOCI 156 4,832 4,988 Other comprehensive income 1,570 2,215 3,785 Balance as of December 31, 2023 $ ( 124 ) $ 1,137 $ 1,013 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Summary of components of the net loss before the provision for income taxes | The components of the net loss before income taxes were as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Israel $ ( 73,560 ) $ ( 99,434 ) $ ( 38,900 ) Foreign 19,044 14,688 ( 28,725 ) Total $ ( 54,516 ) $ ( 84,746 ) $ ( 67,625 ) |
Summary of provision for income taxes | Income tax expense (benefit) was as follows: Year Ended December 31, 2023 2022 2021 (in thousands) Current: Israel $ — $ — $ ( 369 ) Foreign 5,753 3,967 549 Total current income tax expense 5,753 3,967 180 Deferred: Israel — — ( 371 ) Foreign 987 1,471 ( 3,231 ) Total deferred income tax expense (benefit) 987 1,471 ( 3,602 ) Income tax expense (benefit) $ 6,740 $ 5,438 $ ( 3,422 ) |
Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense | A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows: Year Ended December 31, 2023 2022 2021 Theoretical income tax benefit 23 % 23 % 23 % PTE ( 15 ) ( 13 ) ( 5 ) Foreign tax rate differentials 2 3 1 Share-based compensation ( 2 ) ( 6 ) ( 4 ) Change in valuation allowance ( 16 ) ( 13 ) ( 6 ) Unrecognized tax benefits ( 1 ) — ( 3 ) Acquisition costs ( 1 ) ( 1 ) ( 1 ) Other ( 2 ) 1 — Total ( 12 )% ( 6 )% 5 % |
Summary of components of the Company's deferred tax assets and liabilities | The following table presents the significant components of the Company’s deferred tax assets and liabilities: December 31, 2023 2022 (in thousands) Deferred tax assets: Net operating loss carryforwards $ 20,070 $ 16,336 Research and development expenses 7,843 8,669 Accruals and reserves 971 1,580 Share-based compensation 13,024 7,436 Deferred revenue 2,403 2,217 Operating lease liabilities 1,602 2,406 Gross deferred tax assets 45,913 38,644 Valuation allowance ( 31,585 ) ( 22,690 ) Total deferred tax assets 14,328 15,954 Deferred tax liabilities: Intangible assets ( 2,997 ) ( 4,297 ) Deferred contract acquisition costs ( 5,089 ) ( 3,917 ) Operating lease ROU assets ( 1,563 ) ( 2,236 ) Share-based compensation ( 947 ) ( 632 ) Property and equipment ( 155 ) ( 318 ) Gross deferred tax liabilities ( 10,751 ) ( 11,400 ) Net deferred tax assets $ 3,577 $ 4,554 |
Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions | A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows: Unrecognized Tax Benefits (in thousands) Balance - December 31, 2020 $ 2,738 Increase related to prior years’ tax positions 86 Decrease related to prior years’ tax positions ( 2 ) Increase related to current year’s tax positions 2,039 Decrease related to settlements with tax authorities ( 446 ) Decrease due to lapse of statutes of limitations ( 19 ) Balance - December 31, 2021 4,396 Increase related to prior years’ tax positions 289 Increase related to current year’s tax positions 176 Decrease due to lapse of statutes of limitations ( 38 ) Balance - December 31, 2022 4,823 Increase related to prior years’ tax positions 149 Decrease related to prior years’ tax positions ( 24 ) Increase related to current year’s tax positions 464 Decrease due to lapse of statutes of limitations ( 13 ) Balance - December 31, 2023 $ 5,399 |
Net Loss Per Share (Tables)
Net Loss Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Summary of computation of basic and diluted net loss per share | The following table sets forth the computation of basic and diluted net loss per share for the periods presented: Year Ended December 31, 2023 2022 2021 (in thousands, except share and per share data) Numerator: Net loss $ ( 61,256 ) $ ( 90,184 ) $ ( 64,203 ) Denominator: Weighted-average shares used in computing net loss per share, basic and diluted 103,317,759 99,243,894 94,783,082 Net loss per share, basic and diluted $ ( 0.59 ) $ ( 0.91 ) $ ( 0.68 ) |
Summary of shares excluded from the computation of diluted net loss per share attributable to ordinary shareholders | The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows: Year Ended December 31, 2023 2022 2021 Outstanding share options 6,264,883 8,268,711 11,229,241 Unvested RSUs 9,298,748 6,223,077 2,331,607 Share purchase rights under the ESPP 155,276 101,787 79,450 Issuable ordinary shares related to business combination 27,505 104,715 140,385 Total 15,746,412 14,698,290 13,780,683 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2023 USD ($) Segment | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Deferred contract acquisition cost impairment losses | $ 0 | $ 0 | $ 0 |
Goodwill impairment charges | 0 | 0 | 0 |
Long-lived assets impairment charges | 0 | 0 | 0 |
Advertising costs | 10,600,000 | 8,600,000 | 5,800,000 |
Interest income | $ 22,100,000 | $ 5,900,000 | $ 1,500,000 |
Number of operating segments | Segment | 1 | ||
Number of reportable segments | Segment | 1 | ||
Accounts Receivable Member | |||
Concentration risk, Number of customer | no single customer | no single customer | |
Total Revenue Member | |||
Concentration risk, Number of customer | No single customer | No single customer | |
Customer Concentration Risk Member | Minimum Member | Accounts Receivable Member | |||
Percentage of account receivable | 10% | 10% | |
Customer Concentration Risk Member | Minimum Member | Total Revenue Member | |||
Percentage of account receivable | 10% | 10% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Property and Equipment (Detail) | Dec. 31, 2023 |
Computer and software Member | |
Property Plant And Equipment Line Items | |
Property and equipment useful life | 3 years |
Furniture and office equipment Member | Maximum Member | |
Property Plant And Equipment Line Items | |
Property and equipment useful life | 7 years |
Furniture and office equipment Member | Minimum Member | |
Property Plant And Equipment Line Items | |
Property and equipment useful life | 3 years |
Leasehold improvements Member | |
Property Plant And Equipment Line Items | |
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] | us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Intangible Assets (Detail) | Dec. 31, 2023 |
Developed technology Member | Maximum Member | |
Intangible Assets Line items | |
Finite Lived Intangible Asset Useful Life | 6 years |
Developed technology Member | Minimum Member | |
Intangible Assets Line items | |
Finite Lived Intangible Asset Useful Life | 3 years |
Customer relationships Member | Maximum Member | |
Intangible Assets Line items | |
Finite Lived Intangible Asset Useful Life | 6 years |
Customer relationships Member | Minimum Member | |
Intangible Assets Line items | |
Finite Lived Intangible Asset Useful Life | 3 years |
Other intangible assets Member | |
Intangible Assets Line items | |
Finite Lived Intangible Asset Useful Life | 3 years |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Summary of Long Lived Assets by Geographic Region (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Revenues from External Customers and Long-Lived Assets Line Items | ||
Total long lived assets | $ 29,090 | $ 32,633 |
United States | ||
Revenues from External Customers and Long-Lived Assets Line Items | ||
Total long lived assets | 8,566 | 11,569 |
Israel | ||
Revenues from External Customers and Long-Lived Assets Line Items | ||
Total long lived assets | 15,888 | 17,887 |
India | ||
Revenues from External Customers and Long-Lived Assets Line Items | ||
Total long lived assets | 4,054 | 2,246 |
Rest of world Member | ||
Revenues from External Customers and Long-Lived Assets Line Items | ||
Total long lived assets | $ 582 | $ 931 |
Revenue Recognition - Summary o
Revenue Recognition - Summary of Table Presents Revenue as Follows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 349,886 | $ 280,040 | $ 206,683 |
Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 100% | 100% | 100% |
Subscription | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 210,867 | $ 181,802 | $ 140,398 |
Subscription | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 60% | 65% | 68% |
Selfmanaged Subscription [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 230,560 | $ 200,390 | $ 157,035 |
Selfmanaged Subscription [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 66% | 72% | 76% |
License [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 19,693 | $ 18,588 | $ 16,637 |
License [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 6% | 7% | 8% |
SaaS [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 119,326 | $ 79,650 | $ 49,648 |
SaaS [Member] | Sale revenue [Member] | Product Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 34% | 28% | 24% |
Revenue Recognition - Summary_2
Revenue Recognition - Summary of Revenue by Region Based on The Shipping Address of Customers as Follows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 349,886 | $ 280,040 | $ 206,683 |
Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 100% | 100% | 100% |
UNITED STATES | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 215,605 | $ 176,334 | $ 129,503 |
UNITED STATES | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 62% | 63% | 63% |
ISRAEL | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 9,332 | $ 6,893 | $ 4,543 |
ISRAEL | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 3% | 2% | 2% |
Rest of world [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Total subscription revenue | $ 124,949 | $ 96,813 | $ 72,637 |
Rest of world [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member] | |||
Disaggregation of Revenue [Line Items] | |||
Percentage of revenue | 35% | 35% | 35% |
Revenue Recognition - Additiona
Revenue Recognition - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Deferred Revenue | $ 175.7 | $ 147.1 | $ 102.8 | |
Revenue Recognized from beginning deferred revenue | $ 158.3 | $ 129.1 | $ 83.8 | |
Revenue, Remaining Performance Obligation | $ 259.8 | |||
Revenue, Remaining Performance Obligation, Percentage | 84% | |||
Billed Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation | $ 214.1 | |||
Unbilled Revenues [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, Remaining Performance Obligation | $ 45.7 |
Revenue Recognition - Additio_2
Revenue Recognition - Additional Information (Detail 1) | Dec. 31, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 12 months |
Revenue Recognition - Additio_3
Revenue Recognition - Additional Information (Details 2) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Policy Acquisition Costs Disclosures [Abstract] | |||
Amortization of deferred contract acquisition costs | $ 10.2 | $ 7.2 | $ 4.6 |
Short-Term Investments - Additi
Short-Term Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Short-term investments | $ 460,245 | $ 397,605 |
Allowance for credit losses | 0 | 0 |
Bank deposits | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Short-term investments | $ 81,100 | $ 96,000 |
Short-Term Investments - Summar
Short-Term Investments - Summary of Marketable Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Schedule of short term investments Line Items | ||
Amortized Cost | $ 379,253 | $ 303,251 |
Gross Unrealized Gains | 495 | 73 |
Gross Unrealized Losses | (615) | (1,753) |
Estimated Fair Value | 379,133 | 301,571 |
Certificates of deposit | ||
Schedule of short term investments Line Items | ||
Amortized Cost | 2,455 | 2,204 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (21) | (51) |
Estimated Fair Value | 2,434 | 2,153 |
Commercial paper | ||
Schedule of short term investments Line Items | ||
Amortized Cost | 8,927 | 38,164 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (6) | (137) |
Estimated Fair Value | 8,921 | 38,029 |
Corporate debt securities | ||
Schedule of short term investments Line Items | ||
Amortized Cost | 162,515 | 137,191 |
Gross Unrealized Gains | 234 | 41 |
Gross Unrealized Losses | (302) | (859) |
Estimated Fair Value | 162,447 | 136,373 |
Municipal securities | ||
Schedule of short term investments Line Items | ||
Amortized Cost | 22,263 | 38,543 |
Gross Unrealized Gains | 9 | 23 |
Gross Unrealized Losses | (36) | (222) |
Estimated Fair Value | 22,236 | 38,344 |
Government and agency debt | ||
Schedule of short term investments Line Items | ||
Amortized Cost | 183,093 | 87,149 |
Gross Unrealized Gains | 252 | 7 |
Gross Unrealized Losses | (250) | (484) |
Estimated Fair Value | $ 183,095 | $ 86,672 |
Short-Term Investments - Summ_2
Short-Term Investments - Summary of Company's Marketable Securities by Contractual Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract] | |
Due in 1 year or less | $ 273,273 |
Due in 1 year through 2 years | 105,860 |
Total | $ 379,133 |
Short-Term Investments - Summ_3
Short-Term Investments - Summary of Presents Fair Value and Gross Unrealized Losses of the Company's Marketable Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | $ 192,501 | $ 254,648 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 40,518 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 233,019 | 254,648 |
Gross Unrealized Losses Less Than 12 Months | (370) | (1,753) |
Gross Unrealized Losses 12 Months or Greater | (245) | 0 |
Gross Unrealized Losses Total | (615) | (1,753) |
Certificates of deposit | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | 250 | 2,153 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 2,175 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 2,425 | 2,153 |
Gross Unrealized Losses Less Than 12 Months | 0 | (51) |
Gross Unrealized Losses 12 Months or Greater | (21) | 0 |
Gross Unrealized Losses Total | (21) | (51) |
Commercial paper | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | 8,921 | 31,838 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 0 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 8,921 | 31,838 |
Gross Unrealized Losses Less Than 12 Months | (6) | (137) |
Gross Unrealized Losses 12 Months or Greater | 0 | 0 |
Gross Unrealized Losses Total | (6) | (137) |
Corporate debt securities | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | 77,023 | 123,540 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 25,156 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 102,179 | 123,540 |
Gross Unrealized Losses Less Than 12 Months | (177) | (859) |
Gross Unrealized Losses 12 Months or Greater | (125) | 0 |
Gross Unrealized Losses Total | (302) | (859) |
Municipal securities | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | 7,071 | 25,336 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 4,215 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 11,286 | 25,336 |
Gross Unrealized Losses Less Than 12 Months | (6) | (222) |
Gross Unrealized Losses 12 Months or Greater | (30) | 0 |
Gross Unrealized Losses Total | (36) | (222) |
Government and agency debt | ||
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items | ||
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months | 99,236 | 71,781 |
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer | 8,972 | 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position | 108,208 | 71,781 |
Gross Unrealized Losses Less Than 12 Months | (181) | (484) |
Gross Unrealized Losses 12 Months or Greater | (69) | 0 |
Gross Unrealized Losses Total | $ (250) | $ (484) |
Fair Value Measurements - Summa
Fair Value Measurements - Summary of Fair Value by Balance Sheet Grouping (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | $ 379,133 | $ 301,571 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 40,646 | 9,562 |
Total financial assets | 40,646 | 9,562 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,498 | |
Marketable securities | 379,133 | 301,571 |
Total financial assets | 386,067 | 301,624 |
Total financial liabilities | 57 | 1,477 |
Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 46,144 | 9,562 |
Marketable securities | 379,133 | 301,571 |
Total financial assets | 426,713 | 311,186 |
Total financial liabilities | 57 | 1,477 |
Prepaid Expenses and Other Current Assets [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | 12 | 12 |
Prepaid Expenses and Other Current Assets [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Restricted bank deposits included in assets | 12 | 12 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,189 | 20 |
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 1,189 | 20 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 235 | 21 |
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contract, Asset, Fair Value Disclosure | 235 | 21 |
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 52 | 1,098 |
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 52 | 1,098 |
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 5 | 379 |
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Foreign Currency Contracts, Liability, Fair Value Disclosure | 5 | 379 |
Money market funds | Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 40,646 | 9,562 |
Money market funds | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 40,646 | 9,562 |
Certificates of deposit | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 2,434 | 2,153 |
Certificates of deposit | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 2,434 | 2,153 |
Commercial paper | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 8,921 | 38,029 |
Commercial paper | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 8,921 | 38,029 |
Corporate debt securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 162,447 | 136,373 |
Corporate debt securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 162,447 | 136,373 |
Municipal securities | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 22,236 | 38,344 |
Municipal securities | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Marketable securities | 22,236 | 38,344 |
Government and agency debt | Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,498 | |
Marketable securities | 183,095 | 86,672 |
Government and agency debt | Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash equivalents | 5,498 | |
Marketable securities | $ 183,095 | $ 86,672 |
Fair Value Measurements - Addit
Fair Value Measurements - Additional Information (Detail) - Level 3 - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Total financial assets | $ 0 | $ 0 |
Total financial liabilities | $ 0 | $ 0 |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging - Disclosure of Notional Amount of Derivatives By Hedging Designation (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 65,234 | $ 60,409 |
Foreign currency contracts [Member] | Derivatives designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | 46,331 | 42,854 |
Foreign currency contracts [Member] | Derivatives not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Total derivative instruments | $ 18,903 | $ 17,555 |
Derivative Financial Instrume_4
Derivative Financial Instruments and Hedging - Derivative Instruments, Gain (Loss) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (4,832) | $ (4,156) | $ 872 |
Derivatives not designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | (593) | (527) | 345 |
Foreign Currency Contracts [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ 0 | $ 8 | $ 8 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Nonoperating Income (Expense) | Nonoperating Income (Expense) | Nonoperating Income (Expense) |
Foreign Currency Contracts [Member] | Derivatives not designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (593) | $ (527) | $ 345 |
Foreign Currency Contracts [Member] | Subscription–self-managed and SaaS [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (359) | $ (314) | $ 74 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Cost of Revenue | Cost of Revenue | Cost of Revenue |
Foreign Currency Contracts [Member] | Research and development [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (2,982) | $ (2,660) | $ 504 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Research and Development Expense | Research and Development Expense | Research and Development Expense |
Foreign Currency Contracts [Member] | Sales and marketing [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (693) | $ (540) | $ 120 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Selling and Marketing Expense | Selling and Marketing Expense | Selling and Marketing Expense |
Foreign Currency Contracts [Member] | General and administrative [Member] | Derivatives designated as hedging instruments [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Total gains (losses) recognized in earnings | $ (798) | $ (650) | $ 166 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | General and Administrative Expense | General and Administrative Expense | General and Administrative Expense |
Consolidated Balance Sheet Co_3
Consolidated Balance Sheet Components - Summary of Property and Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 18,234 | $ 16,880 |
Less: accumulated depreciation and amortization | (11,571) | (8,859) |
Property and equipment, net | 6,663 | 8,021 |
Computer and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9,030 | 8,330 |
Furniture and office equipment Member | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 3,135 | 2,802 |
Leasehold improvements Member | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 6,069 | $ 5,748 |
Consolidated Balance Sheet Co_4
Consolidated Balance Sheet Components (Additional Information) (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Balance Sheet Related Disclosures [Abstract] | |||
Depreciation and amortization expense | $ 3.5 | $ 3.1 | $ 2.8 |
Consolidated Balance Sheet Co_5
Consolidated Balance Sheet Components - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Balance Sheet Related Disclosures [Abstract] | ||
Accrued compensation and benefits | $ 25,166 | $ 20,892 |
Accrued expenses | 10,649 | 7,956 |
Accrued expenses and other current liabilities | $ 35,815 | $ 28,848 |
Business Combinations - Additio
Business Combinations - Additional Information (Detail) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Jul. 19, 2021 USD ($) Installment shares | Aug. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 0 | $ 179 | $ 195,752 | ||
Vdoo Connected Trust Ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business acquistion percentage of voting capital obtained | 100% | ||||
Business acquisition total purchase consideration | $ 299,500 | ||||
Fair value of ordinary shares issued as consideration for business combination | $ 81,800 | ||||
Retention bonus payment period | Installment | 3 | ||||
RSU service period | 4 years | ||||
Payments to acquire business | $ 217,700 | ||||
Business combination purchase consideration settled through share issue | shares | 1,823,266 | ||||
Business combination holdback agreements additional shares issuable | shares | 110,932 | ||||
Business Combination Retention Bonus | $ 10,000 | ||||
Business combination total cash payments under holdback agreements | 13,200 | ||||
Net assets acquired | 305,227 | ||||
Vdoo Connected Trust Ltd. [Member] | Restricted Stock Units (RSUs) [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 30,000 | ||||
Upswift Ltd [Member] | |||||
Business Acquisition [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 9,500 | ||||
Identified intangible asset | 4,300 | ||||
Goodwill, Acquired During Period | 5,800 | ||||
Net liabilities assumed | $ 600 | ||||
Maximum Member | Vdoo Connected Trust Ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Holdback Release Period | 2 years | ||||
Minimum Member | Vdoo Connected Trust Ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Holdback Release Period | 1 year | ||||
General and Administrative Expense [Member] | Vdoo Connected Trust Ltd. [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Acquisition Related Costs | $ 700 |
Business Combinations - Summary
Business Combinations - Summary of fair value of assets acquired and liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jul. 19, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 247,955 | $ 247,955 | $ 247,776 | |
Vdoo Connected Trust Ltd. [Member] | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalent | $ 31,240 | |||
Other current assets | 943 | |||
Intangible assets | 45,500 | |||
Goodwill | 224,852 | |||
Other noncurrent assets | 2,692 | |||
Total assets acquired | 305,227 | |||
Current liabilites | 4,272 | |||
Noncurrent liabilities | 1,501 | |||
Total liabilities assumed | 5,773 | |||
Total Purchase Consideration | $ 299,454 |
Business Combination - Summary
Business Combination - Summary of Components of Identifiable Intangible Assets Acquired and their Estimated Useful Lives (Details) - Vdoo Connected Trust Ltd. [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Useful Life | 5 years |
Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Useful Life | 6 years |
Portion At Fair Value Disclosure [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 45,500 |
Portion At Fair Value Disclosure [Member] | Developed Technology Rights [Member] | |
Business Acquisition [Line Items] | |
Fair Value | 41,300 |
Portion At Fair Value Disclosure [Member] | Customer Relationships [Member] | |
Business Acquisition [Line Items] | |
Fair Value | $ 4,200 |
Business Combination - Summar_2
Business Combination - Summary of Unaudited Pro Forma Information (Details) - Vdoo Connected Trust Ltd. [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 207,824 |
Net loss | $ 89,939 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net - Summary of changes in goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill, Beginning Balance | $ 247,955 | $ 247,776 |
Purchase price adjustment | 0 | 179 |
Goodwill, Ending Balance | $ 247,955 | $ 247,955 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Intangible Assets Line items | ||
Gross Fair Value | $ 57,020 | $ 57,020 |
Accumulated Amortization | (31,252) | (19,476) |
Net Book Value | 25,768 | 37,544 |
Developed technology Member | ||
Intangible Assets Line items | ||
Gross Fair Value | 50,347 | 50,347 |
Accumulated Amortization | (27,779) | (17,434) |
Net Book Value | $ 22,568 | $ 32,913 |
Weighted- Average Remaining Useful Life | 2 years 3 months 18 days | 3 years 3 months 18 days |
Customer relationships Member | ||
Intangible Assets Line items | ||
Gross Fair Value | $ 5,541 | $ 5,541 |
Accumulated Amortization | (2,786) | (1,840) |
Net Book Value | $ 2,755 | $ 3,701 |
Weighted- Average Remaining Useful Life | 3 years 1 month 6 days | 4 years 1 month 6 days |
Other intangible assets Member | ||
Intangible Assets Line items | ||
Gross Fair Value | $ 1,132 | $ 1,132 |
Accumulated Amortization | (687) | (202) |
Net Book Value | $ 445 | $ 930 |
Weighted- Average Remaining Useful Life | 10 months 24 days | 1 year 10 months 24 days |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Intangible Assets Line items | |||
Amortization expenses for intangible assets | $ 11.8 | $ 11.6 | $ 5.9 |
Goodwill and Intangible Asset_6
Goodwill and Intangible Assets, Net - Summary of Expected Future Amortization Expenses by Year Related to the Intangible Assets (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||
2024 | $ 11,034 | |
2025 | 9,110 | |
2026 | 5,241 | |
2027 | 383 | |
Total | $ 25,768 | $ 37,544 |
Leases - Components of Operatin
Leases - Components of Operating Lease Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Lease, Cost [Abstract] | ||
Operating lease cost | $ 9,144 | $ 7,682 |
Short-term lease cost | 571 | 527 |
Variable lease cost | 398 | 377 |
Total operating lease cost | $ 10,113 | $ 8,586 |
Leases - Additional Information
Leases - Additional Information (Detail) | Dec. 31, 2023 |
Lessee, Lease, Description [Line Items] | |
Operating Lease, Weighted Average Remaining Lease Term | 2 years 10 months 24 days |
Operating Lease, Weighted Average Discount Rate, Percent | 3.30% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information related to Operating Lease (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Cash paid for operating leases | $ 8,453 | $ 7,546 |
ROU assets obtained in exchange for new operating lease liabilities | 2,867 | 3,567 |
Adjustment to ROU assets upon modification of existing lease | $ 3,415 | $ 2,393 |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract] | |
2024 | $ 8,895 |
2025 | 7,988 |
2026 | 4,716 |
2027 | 1,628 |
2028 | 156 |
Total operating lease payments | 23,383 |
Less: imputed interest | (1,157) |
Total operating lease liabilities | $ 22,226 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Outstanding Non-cancelable Purchase Obligations (Detail) $ in Thousands | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 16,346 |
2025 | 16,233 |
2026 | 108 |
Total | $ 32,687 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Sep. 30, 2022 | |
Loss contingency estimate of possible loss | $ 2.6 | |
Grants [Member] | Israeli Innovation Authority [Member] | ||
Maximum additional payments as a grant recipient | $ 6 |
Shareholders' Equity and Equi_3
Shareholders' Equity and Equity Incentive Plans - Additional Information (Detail) $ / shares in Units, $ in Thousands | 1 Months Ended | 12 Months Ended | |||||||
Jan. 01, 2023 shares | Sep. 30, 2020 shares | Aug. 31, 2020 shares | Dec. 31, 2023 USD ($) $ / shares | Dec. 31, 2022 USD ($) $ / shares | Dec. 31, 2021 USD ($) $ / shares | Dec. 31, 2023 ₪ / shares | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 ₪ / shares shares | |
Preferred stock authorized | 50,000,000 | 50,000,000 | |||||||
Ordinary shares authorized | 500,000,000 | 500,000,000 | |||||||
Preferred stock par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | |||||||
Common stock par value | ₪ / shares | ₪ 0.01 | ₪ 0.01 | |||||||
Dividends declared | $ / shares | $ 0 | ||||||||
Total intrinsic value of options exercised | $ | $ 38,903 | $ 44,800 | $ 118,700 | ||||||
Unrecognized share-based compensation cost | $ | $ 241,600 | ||||||||
Unrecognized share based compensation cost expected to be recognised period | 2 years 9 months 18 days | ||||||||
2020 Plan [Member] | |||||||||
Share-based payment arrangement, increase of authorized shares | 5,819,265 | ||||||||
Share options expiration period | 10 years | ||||||||
Ordinary shares reserved for grants of awards | 9,100,000 | ||||||||
Maximum number of shares to be added to the share based compensation arrangement plans | 15,309,367 | ||||||||
Share-based payment arrangement, increase of authorized shares | 9,100,000 | ||||||||
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares | 5% | ||||||||
Employee Share Purchase Plan [Member] | |||||||||
Share-based payment arrangement, increase of authorized shares | 1,009,633 | ||||||||
Ordinary shares reserved for grants of awards | 2,100,000 | ||||||||
Share-based payment arrangement, increase of authorized shares | 2,100,000 | ||||||||
Percentage of eligible compensation | 15% | ||||||||
Maximum number of shares per employee | 1,250 | ||||||||
Purchase price of the shares on the offering period percentage | 85% | ||||||||
Employee share purchase plan offering date | March 1 and September 1 | ||||||||
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares | 1% | ||||||||
Employee Stock Option | 2011 Plan [Member] | |||||||||
Share options vesting period | 5 years | ||||||||
Share options expiration period | 10 years | ||||||||
Restricted Stock Units (RSUs) [Member] | |||||||||
Fair value of RSU | $ | $ 75,200 | $ 22,900 | $ 23,400 | ||||||
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares | $ 25.38 | $ 21.4 | $ 45.97 | ||||||
RSUs unvested | 10,006,997 | 7,981,147 |
Shareholders' Equity and Equi_4
Shareholders' Equity and Equity Incentive Plans - Summary of Ordinary Shares Reserved for Future Issuance (Detail) | Dec. 31, 2023 shares |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 33,614,036 |
2020 Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 14,214,984 |
Employee Stock Purchase Plan [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 4,281,665 |
Employee Stock Option | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 5,110,390 |
Restricted Stock [Member] | |
Class of Stock [Line Items] | |
Common Stock Reserved for Future Issuance | 10,006,997 |
Shareholders' Equity and Equi_5
Shareholders' Equity and Equity Incentive Plans - Summary of Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Payment Arrangement [Abstract] | |||
Outstanding Share Options, Beginning balance | 7,205,324 | ||
Outstanding Share Options, Exercised | (1,899,722) | ||
Outstanding Share Options, Forfeited | (195,212) | ||
Outstanding Share Options, Ending balance | 5,110,390 | 7,205,324 | |
Outstanding Share Options, Exercisable | 4,434,819 | ||
Weighted Average Exercise Price Per Share, Beginning balance | $ 7.88 | ||
Weighted Average Exercise Price Per Share, Exercised | 5.31 | ||
Weighted Average Exercise Price Per Share, Forfeited | 17.04 | ||
Weighted Average Exercise Price Per Share, Ending balance | 8.49 | $ 7.88 | |
Weighted Average Exercise Price Per Share, Exercisable | $ 7.07 | ||
Weighted Average Remaining Contractual Life | 4 years 1 month 6 days | 5 years 4 months 24 days | |
Weighted Average Remaining Contractual Life, Exercisable | 3 years 9 months 18 days | ||
Aggregate Intrinsic Value, Beginning balance | $ 101,334 | ||
Aggregate Intrinsic Value, Exercised | 38,903 | $ 44,800 | $ 118,700 |
Aggregate Intrinsic Value, Ending balance | 134,171 | $ 101,334 | |
Aggregate Intrinsic Value, Exercisable | $ 122,537 |
Shareholders' Equity and Equi_6
Shareholders' Equity and Equity Incentive Plans - Summary of Restricted Ordinary Shares (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Unvested RSUs, Beginning balance | 7,981,147 | ||
Unvested RSUs, Granted | 6,605,426 | ||
Unvested RSUs, Vested | (2,882,729) | ||
Unvested RSUs, Forfeited | (1,696,847) | ||
Unvested RSUs, Ending balance | 10,006,997 | 7,981,147 | |
Weighted Average Grant Date Fair Value Per Share, Beginning balance | $ 26.9 | ||
Weighted Average Grant Date Fair Value Per Share, Granted | 25.38 | $ 21.4 | $ 45.97 |
Weighted Average Grant Date Fair Value Per Share, Vested | 27.15 | ||
Weighted Average Grant Date Fair Value Per Share, Forfeited | 26.35 | ||
Weighted Average Grant Date Fair Value Per Share, Ending balance | $ 25.91 | $ 26.9 |
Shareholders' Equity and Equi_7
Shareholders' Equity and Equity Incentive Plans - Summary of Valuation Assumptions of Employee Options at the Grant Dates (Details) - Employee Share Purchase Plan [Member] | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Expected term (years) | 6 months | 6 months | 6 months |
Expected volatility, Maximum | 55.10% | 58.50% | 64.80% |
Expected volatility, Minimum | 44.40% | 51.70% | 56.90% |
Risk-free interest rate | 0.10% | ||
Risk-free interest rate, Maximum | 5.47% | 3.30% | |
Risk-free interest rate, Minimum | 5.20% | 0.16% | |
Expected dividend yield | 0% | 0% | 0% |
Shareholders' Equity and Equi_8
Shareholders' Equity and Equity Incentive Plans - Summary of Stock-based Compensation Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 95,171 | $ 68,661 | $ 56,949 |
Cost of revenue [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | 9,784 | 6,991 | 4,027 |
Research and development [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | 32,689 | 24,664 | 14,572 |
Sales and marketing [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | 30,338 | 22,753 | 15,256 |
General and administrative [Member] | |||
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items] | |||
Share-based compensation expense | $ 22,360 | $ 14,253 | $ 23,094 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In AOCI (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | $ (2,772) | $ 611 | |
Other comprehensive income (loss) before reclassifications | (1,203) | (7,537) | |
Net realized losses reclassified from AOCI | 4,988 | 4,154 | |
Other comprehensive income (loss), net of tax | 3,785 | (3,383) | $ 239 |
Ending Balance | 1,013 | (2,772) | 611 |
Net Unrealized Losses on Available-for-Sale Marketable Securities [Member] | |||
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | (1,694) | (264) | |
Other comprehensive income (loss) before reclassifications | 1,414 | (1,428) | |
Net realized losses reclassified from AOCI | 156 | (2) | |
Other comprehensive income (loss), net of tax | 1,570 | (1,430) | |
Ending Balance | (124) | (1,694) | (264) |
Net Unrealized Gains(Losses) on Derivatives Designated as Hedging Instruments [Member] | |||
Changes in Accumulated Other Comprehensive Income [Line items] | |||
Beginning Balance | (1,078) | 875 | |
Other comprehensive income (loss) before reclassifications | (2,617) | (6,109) | |
Net realized losses reclassified from AOCI | 4,832 | 4,156 | |
Other comprehensive income (loss), net of tax | 2,215 | (1,953) | |
Ending Balance | $ 1,137 | $ (1,078) | $ 875 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) $ in Thousands, ₪ in Millions | 12 Months Ended | |||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 ILS (₪) | Dec. 31, 2023 USD ($) | Dec. 31, 2020 USD ($) | |
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23% | 23% | 23% | |||
Unrecognized tax benefits | $ 4,823 | $ 4,396 | $ 5,399 | $ 2,738 | ||
Unrecognized tax benefits that would impact effective tax rate | 3,900 | |||||
Increase (decrease) in the valuation allowance | $ 8,900 | $ 10,100 | $ 4,700 | |||
Effective Capital Gains Tax Rate on the Sale of Preferred Intangible Asset | 12% | |||||
Effective Income Tax Rate Reconciliation, Percent | (12.00%) | (6.00%) | 5% | |||
Undistributed earnings of foreign subsidiaries | 6,700 | |||||
Unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries | 600 | |||||
Maximum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Withholding tax rate for dividends paid | 20% | |||||
Minimum [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Assets initially purchased from foreign resident | ₪ | ₪ 200 | |||||
Withholding tax rate for dividends paid | 4% | |||||
Israel Tax Authority [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 23% | |||||
Operating Loss Carryforwards | 138,800 | |||||
Preferred Technology Enterprises [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Effective Income Tax Rate Reconciliation, Percent | 12% | |||||
Annual Income Percentage Derived From Exports | 25% | |||||
State and Local Jurisdiction [Member] | ||||||
Operating Loss Carryforwards [Line Items] | ||||||
Operating Loss Carryforwards | $ 51,500 |
Income Taxes - Summary of compo
Income Taxes - Summary of components of the net loss before the provision for income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Israel | $ (73,560) | $ (99,434) | $ (38,900) |
Foreign | 19,044 | 14,688 | (28,725) |
Loss before income taxes | $ (54,516) | $ (84,746) | $ (67,625) |
Income Taxes - Summary of provi
Income Taxes - Summary of provision for income taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Israel | $ 0 | $ 0 | $ (369) |
Foreign | 5,753 | 3,967 | 549 |
Total current income tax expense | 5,753 | 3,967 | 180 |
Deferred: | |||
Israel | 0 | 0 | (371) |
Foreign | 987 | 1,471 | (3,231) |
Total deferred income tax expense (benefit) | 987 | 1,471 | (3,602) |
Total provision for income taxes | $ 6,740 | $ 5,438 | $ (3,422) |
Income Taxes - Summary of recon
Income Taxes - Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense (Detail) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Theoretical income tax benefit, Rate | 23% | 23% | 23% |
PTE | (15.00%) | (13.00%) | (5.00%) |
Foreign tax rate differentials, Rate | 2% | 3% | 1% |
Share-based compensation, Rate | (2.00%) | (6.00%) | (4.00%) |
Change in valuation allowance, Rate | (16.00%) | (13.00%) | (6.00%) |
Unrecognized tax benefits, Rate | (1.00%) | 0% | (3.00%) |
Acquisition costs, Rate | (1.00%) | (1.00%) | (1.00%) |
Other, Rate | (2.00%) | 1% | 0% |
Total, Rate | (12.00%) | (6.00%) | 5% |
Income Taxes - Summary of com_2
Income Taxes - Summary of components of the Company's deferred tax assets and liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Net operating loss carryforwards | $ 20,070 | $ 16,336 |
Research and development expenses | 7,843 | 8,669 |
Accruals and reserves | 971 | 1,580 |
Share-based compensation | 13,024 | 7,436 |
Deferred revenue | 2,403 | 2,217 |
Operating lease liabilities | 1,602 | 2,406 |
Gross deferred tax assets | 45,913 | 38,644 |
Valuation allowance | (31,585) | (22,690) |
Total deferred tax assets | 14,328 | 15,954 |
Deferred tax liabilities: | ||
Intangible assets | (2,997) | (4,297) |
Deferred contract acquisition costs | (5,089) | (3,917) |
Operating lease ROU assets | (1,563) | (2,236) |
Share-based compensation | (947) | (632) |
Property and equipment | (155) | (318) |
Gross deferred tax liabilities | (10,751) | (11,400) |
Net deferred taxes | $ 3,577 | $ 4,554 |
Income Tax - Summary of reconci
Income Tax - Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Uncertainties [Abstract] | |||
Unrecognized Tax Benefits, Beginning Balance | $ 4,823 | $ 4,396 | $ 2,738 |
Increase Related to Prior Years Tax Positions | 149 | 289 | 86 |
Decrease Related to Prior Year's Tax Positions | (24) | (2) | |
Increase Related To Current Years Tax Positions | 464 | 176 | 2,039 |
Decrease related to settlements with tax authorities | (446) | ||
Decrease Due To Lapse of Statutes of Limitations | (13) | (38) | (19) |
Unrecognized Tax Benefits, Ending Balance | $ 5,399 | $ 4,823 | $ 4,396 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plans [Line items] | |||
Employee benefit plans, matched percentage | 50% | ||
Employee benefit plans, percentage of contribution eligible | 6% | ||
Employee benefit plans, expenses recorded | $ 1.6 | $ 1.4 | $ 1.1 |
Israeli Severance Pay [Member] | |||
Employee Benefit Plans [Line items] | |||
Employee benefit plans, percentage of eligible monthly deposits | 8.33% | ||
Employee benefit plans, severance expenses | $ 6.2 | $ 5.5 | $ 3.6 |
Net Loss Per Share - Summary of
Net Loss Per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Numerator: | |||
Net loss | $ (61,256) | $ (90,184) | $ (64,203) |
Denominator: | |||
Weighted-average shares used in computing net loss per share, basic | 103,317,759 | 99,243,894 | 94,783,082 |
Weighted-average shares used in computing net loss per share, diluted | 103,317,759 | 99,243,894 | 94,783,082 |
Net loss per share, basic | $ (0.59) | $ (0.91) | $ (0.68) |
Net loss per share, diluted | $ (0.59) | $ (0.91) | $ (0.68) |
Net Loss Per Share - Summary _2
Net Loss Per Share - Summary of Shares Excluded From the Computation of Diluted Net Loss Per Share Attributable to Ordinary Shareholders (Detail) - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 15,746,412 | 14,698,290 | 13,780,683 |
Outstanding share options [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 6,264,883 | 8,268,711 | 11,229,241 |
Unvested RSUs [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 9,298,748 | 6,223,077 | 2,331,607 |
Share purchase rights under the ESPP [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 155,276 | 101,787 | 79,450 |
Issuable ordinary shares related to business combination [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Shares excluded from computation of diluted net loss per share | 27,505 | 104,715 | 140,385 |