NOVOCURE LTD, 10-Q filed on 7/28/2022
Quarterly Report
v3.22.2
Cover - shares
6 Months Ended
Jun. 30, 2022
Jul. 22, 2022
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2022  
Document Transition Report false  
Entity File Number 001-37565  
Entity Registrant Name NovoCure Limited  
Entity Incorporation, State or Country Code Y9  
Entity Tax Identification Number 98-1057807  
Entity Address, Address Line One No. 4 The Forum  
Entity Address, Address Line Two Grenville Street  
Entity Address, City or Town St. Helier  
Entity Address, Country JE  
Entity Address, Postal Zip Code JE2 4UF  
City Area Code 44 (0) 15  
Local Phone Number 3475 6700  
Title of 12(b) Security Ordinary Shares, no par value  
Trading Symbol NVCR  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding (in shares)   104,738,581
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q2  
Entity Central Index Key 0001645113  
Current Fiscal Year End Date --12-31  
v3.22.2
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
CURRENT ASSETS:    
Cash and cash equivalents $ 367,014 $ 208,802
Short-term investments 581,503 728,898
Restricted cash 749 807
Trade receivables, net 97,563 93,567
Receivables and prepaid expenses 18,195 17,025
Inventories 29,531 24,427
Total current assets 1,094,555 1,073,526
LONG-TERM ASSETS:    
Property and equipment, net 26,561 22,693
Field equipment, net 12,377 12,923
Right-of-use assets 18,281 18,267
Other long-term assets 10,898 12,086
Total long-term assets 68,117 65,969
TOTAL ASSETS 1,162,672 1,139,495
CURRENT LIABILITIES:    
Trade payables 79,910 72,600
Other payables, lease liabilities and accrued expenses 55,489 70,002
Total current liabilities 135,399 142,602
LONG-TERM LIABILITIES:    
Long-term debt, net 563,846 562,216
Deferred revenue 4,541 6,477
Long-term leases 13,377 12,997
Employee benefit liabilities 3,598 4,543
Other long-term liabilities 239 166
Total long-term liabilities 585,601 586,399
TOTAL LIABILITIES 721,000 729,001
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:    
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 104,727,685 shares and 103,971,263 shares at June 30, 2022 (unaudited) and December 31, 2021, respectively 0 0
Additional paid-in capital 1,158,348 1,099,589
Accumulated other comprehensive income (loss) (2,095) (3,169)
Retained earnings (accumulated deficit) (714,581) (685,926)
TOTAL SHAREHOLDERS' EQUITY 441,672 410,494
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,162,672 $ 1,139,495
v3.22.2
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Jun. 30, 2022
Dec. 31, 2021
Statement of Financial Position [Abstract]    
Common stock, shares issued (in shares) 104,727,685 103,971,263
Common stock, shares outstanding (in shares) 104,727,685 103,971,263
v3.22.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Income Statement [Abstract]          
Net revenues $ 140,866 $ 133,517 $ 278,413 $ 268,212 $ 535,031
Cost of revenues 28,503 28,599 56,230 54,984 114,877
Gross profit 112,363 104,918 222,183 213,228 420,154
Operating costs and expenses:          
Research, development and clinical studies 57,075 50,315 99,309 96,231 201,303
Sales and marketing 44,750 34,138 82,634 65,495 137,057
General and administrative 31,666 32,760 62,174 63,885 126,127
Total operating costs and expenses 133,491 117,213 244,117 225,611 464,487
Operating income (loss) (21,128) (12,295) (21,934) (12,383) (44,333)
Financial expenses (income), net 2,228 940 3,937 3,586 7,742
Income (loss) before income tax (23,356) (13,235) (25,871) (15,969) (52,075)
Income tax 652 1,406 2,784 2,800 6,276
Net income (loss) $ (24,008) $ (14,641) $ (28,655) $ (18,769) $ (58,351)
Basic net income (loss) per ordinary share (in usd per share) $ (0.23) $ (0.14) $ (0.27) $ (0.18) $ (0.56)
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) 104,627,789 103,484,866 104,408,164 103,061,557 103,433,274
Diluted net income (loss) per ordinary share (in usd per share) $ (0.23) $ (0.14) $ (0.27) $ (0.18) $ (0.56)
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) 104,627,789 103,484,866 104,408,164 103,061,557 103,433,274
v3.22.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]          
Net income (loss) $ (24,008) $ (14,641) $ (28,655) $ (18,769) $ (58,351)
Other comprehensive income (loss), net of tax:          
Change in foreign currency translation adjustments 680 413 1,010 145 302
Unrealized gain (loss) from debt securities (769) 0 (769) 0 0
Pension benefit plan (678) 416 833 2,568 361
Total comprehensive income (loss) $ (24,775) $ (13,812) $ (27,581) $ (16,056) $ (57,688)
v3.22.2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Cumulative Effect, Period of Adoption, Adjustment
Ordinary shares
Additional paid-in capital
Additional paid-in capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated other comprehensive loss
Retained earnings (accumulated deficit)
Retained earnings (accumulated deficit)
Cumulative Effect, Period of Adoption, Adjustment
Beginning balance (in shares) at Dec. 31, 2020     102,334,276          
Beginning balance at Dec. 31, 2020 $ 476,526 $ (128,972)   $ 1,111,435 $ (132,474) $ (3,832) $ (631,077) $ 3,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 18,863     18,863        
Exercise of options and vested RSUs (in shares)     853,184          
Exercise of options and vested RSUs $ 7,961     7,961        
Accounting standards update [extensible enumeration] Accounting Standards Update 2020-06 [Member]              
Other comprehensive income (loss), net of tax benefit $ 1,884         1,884    
Net income (loss) (4,128)           (4,128)  
Ending balance (in shares) at Mar. 31, 2021     103,187,460          
Ending balance at Mar. 31, 2021 372,134     1,005,785   (1,948) (631,703)  
Beginning balance (in shares) at Dec. 31, 2020     102,334,276          
Beginning balance at Dec. 31, 2020 476,526 (128,972)   1,111,435 (132,474) (3,832) (631,077) 3,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) (18,769)              
Ending balance (in shares) at Jun. 30, 2021     103,641,238          
Ending balance at Jun. 30, 2021 397,269     1,044,732   (1,119) (646,344)  
Beginning balance (in shares) at Dec. 31, 2020     102,334,276          
Beginning balance at Dec. 31, 2020 476,526 $ (128,972)   1,111,435 $ (132,474) (3,832) (631,077) $ 3,502
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) (58,351)              
Ending balance (in shares) at Dec. 31, 2021     103,971,263          
Ending balance at Dec. 31, 2021 410,494     1,099,589   (3,169) (685,926)  
Beginning balance (in shares) at Mar. 31, 2021     103,187,460          
Beginning balance at Mar. 31, 2021 372,134     1,005,785   (1,948) (631,703)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 27,881     27,881        
Proceeds from issuance of shares (in shares)     17,291          
Proceeds from issuance of shares 2,371     2,371        
Exercise of options and warrants and vested RSUs (in shares)     436,487          
Exercise of options and vested RSUs 8,695     8,695        
Other comprehensive income (loss), net of tax benefit 829         829    
Net income (loss) (14,641)           (14,641)  
Ending balance (in shares) at Jun. 30, 2021     103,641,238          
Ending balance at Jun. 30, 2021 397,269     1,044,732   (1,119) (646,344)  
Beginning balance (in shares) at Dec. 31, 2021     103,971,263          
Beginning balance at Dec. 31, 2021 410,494     1,099,589   (3,169) (685,926)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 25,045     25,045        
Exercise of options and vested RSUs (in shares)     587,825          
Exercise of options and vested RSUs 3,148     3,148        
Other comprehensive income (loss), net of tax benefit 1,841         1,841    
Net income (loss) (4,647)           (4,647)  
Ending balance (in shares) at Mar. 31, 2022     104,559,088          
Ending balance at Mar. 31, 2022 435,881     1,127,782   (1,328) (690,573)  
Beginning balance (in shares) at Dec. 31, 2021     103,971,263          
Beginning balance at Dec. 31, 2021 410,494     1,099,589   (3,169) (685,926)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) (28,655)              
Ending balance (in shares) at Jun. 30, 2022     104,727,685          
Ending balance at Jun. 30, 2022 441,672     1,158,348   (2,095) (714,581)  
Beginning balance (in shares) at Mar. 31, 2022     104,559,088          
Beginning balance at Mar. 31, 2022 435,881     1,127,782   (1,328) (690,573)  
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 25,823     25,823        
Exercise of options and vested RSUs (in shares)     121,888          
Exercise of options and vested RSUs 1,984     1,984        
Proceeds from issuance of shares (in shares)     46,709          
Proceeds from issuance of shares 2,759     2,759        
Other comprehensive income (loss), net of tax benefit (767)         (767)    
Net income (loss) (24,008)           (24,008)  
Ending balance (in shares) at Jun. 30, 2022     104,727,685          
Ending balance at Jun. 30, 2022 $ 441,672     $ 1,158,348   $ (2,095) $ (714,581)  
v3.22.2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Mar. 31, 2021
Statement of Stockholders' Equity [Abstract]      
Other comprehensive income (loss), tax benefit $ 0 $ 0 $ 0
v3.22.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Cash flows from operating activities:          
Net income (loss) $ (24,008) $ (14,641) $ (28,655) $ (18,769) $ (58,351)
Adjustments to reconcile net income (loss) to net cash used in operating activities:          
Depreciation and amortization 2,654 2,480 5,264 4,850 10,251
Accrued Interest (602) 0 (823) 0 (94)
Asset write-downs and impairment of field equipment 216 178 351 354 649
Share-based compensation 25,823 27,881 50,868 46,744 94,900
Foreign currency remeasurement loss (gain) 943 372 1,192 2,529 3,231
Decrease (increase) in accounts receivables 2,257 3,026 (5,204) 7,649 5,270
Amortization of discount (premium) 827 925 1,511 1,528 3,101
Decrease (increase) in inventories (209) 1,663 (5,013) 367 2,483
Decrease (increase) in other long-term assets 2,356 1,584 4,219 3,016 4,519
Increase (decrease) in accounts payables and accrued expenses 7,649 5,122 (7,160) 2,496 27,777
Increase (decrease) in other long-term liabilities (2,144) (2,418) (4,475) (6,812) (10,980)
Net cash provided by (used in) operating activities 15,762 26,172 12,075 43,952 82,756
Cash flows from investing activities:          
Purchase of property, equipment and field equipment (4,131) (2,618) (9,224) (6,599) (24,170)
Proceeds from maturity of short-term investments 437,034 0 716,034 608,000 958,000
Purchase of short-term investments (277,146) 0 (568,463) (549,848) (1,078,664)
Net cash provided by (used in) investing activities 155,757 (2,618) 138,347 51,553 (144,834)
Cash flows from financing activities:          
Proceeds from issuance of shares, net 2,759 2,371 2,759 2,371 4,546
Repayment of long-term debt (7) (7) (14) (13) (26)
Exercise of options 1,984 8,695 5,132 16,656 21,182
Net cash provided by (used in) financing activities 4,736 11,059 7,877 19,014 25,702
Effect of exchange rate changes on cash, cash equivalents and restricted cash (120) (3) (145) (105) (188)
Increase (decrease) in cash, cash equivalents and restricted cash 176,135 34,610 158,154 114,414 (36,564)
Cash, cash equivalents and restricted cash at the beginning of the period 191,628 325,977 209,609 246,173 246,173
Cash, cash equivalents and restricted cash at the end of the period 367,763 360,587 367,763 360,587 209,609
Cash paid during the period for:          
Income taxes paid (refunded), net 1,854 2,490 3,027 85 3,110
Interest paid 1 1 2 2 101
Non-cash activities:          
Right-of-use assets obtained in exchange for lease liabilities $ 279 $ 665 $ 3,859 $ 949 $ 5,387
v3.22.2
ORGANIZATION AND BASIS OF PRESENTATION
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
ORGANIZATION AND BASIS OF PRESENTATION ORGANIZATION AND BASIS OF PRESENTATION
Organization. NovoCure Limited (including its consolidated subsidiaries, the "Company") was incorporated in the Bailiwick of Jersey and is principally engaged in the development, manufacture and commercialization of Tumor Treating Fields ("TTFields") devices, including Optune and Optune Lua (collectively, our "Products"), for the treatment of solid tumor cancers. The Company currently markets Optune in the United States ("U.S."), Germany, Japan and certain other countries. The Company currently markets Optune Lua in the U.S. and European Union. The Company also has a License and Collaboration Agreement (the "Zai Agreement") with Zai Lab (Shanghai) Co., Ltd. ("Zai") to market Optune in China, Hong Kong, Macau and Taiwan ("Greater China").
During the year ended December 31, 2019, the Company implemented changes to its corporate entity operating structure, including transferring certain intellectual property to its Swiss subsidiary, primarily to align corporate entities with the Company’s evolving operations and business model. As of January 1, 2022, the effective place of daily management and control of the Company moved to Switzerland and the Company has become a Swiss tax resident.
Financial statement preparation. The accompanying unaudited consolidated financial statements include the accounts of the Company and intercompany accounts and transactions have been eliminated. In the opinion of the Company’s management, the consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation for the periods presented. The preparation of these consolidated financial statements in conformity with U.S. generally accepted accounting principles ("GAAP") requires management to make estimates and assumptions that affect the amounts reported in these consolidated financial statements and accompanying notes. Actual results could differ materially from those estimates. These consolidated financial statements and accompanying notes should be read in conjunction with the Company’s annual consolidated financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2021 filed with the Securities and Exchange Commission on February 24, 2022 (the "2021 10-K").
The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2021 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below:
Short-term investments
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments—Debt and Equity Securities."
Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies part of its debt securities as available-for-sale ("AFS") and the rest of the balance as held-to-maturity ("HTM") when the Company has the intent and ability to hold the securities to maturity.
Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold.
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net.
Each reporting period, the Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the Company’s ability and intent to hold the investment until a forecasted recovery occurs. Allowance for credit losses on available-for-sale debt securities are recognized in the Company’s consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders’ equity.
Held-to-maturity debt securities are stated at amortized cost of which is adjusted for amortization of premiums and accretion of discounts to maturity and any credit losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate.
v3.22.2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
6 Months Ended
Jun. 30, 2022
Cash, Cash Equivalents, and Short-Term Investments [Abstract]  
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS
Cash equivalents include items almost as liquid as cash with maturity periods of three months or less when purchased, and short-term investments include items with maturity dates between three months and one year when purchased. As of June 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents and short-term investments were composed of:
June 30, 2022
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$7,173 $— $— $7,173 $7,173 $7,173 $— 
Money market fundsLevel 1217,498 — — 217,498 217,498 217,498 — 
Certificate of deposits and term depositsLevel 2486,770 — — 486,770 486,770 140,829 345,941 
AFS securities (1)
U.S. Treasury billsLevel 1 547 — (10)537 537 — 537 
Government and governmental agenciesLevel 2 7,786 — (32)7,754 7,754 — 7,754 
Corporate debt securitiesLevel 2 139,567 11 (738)138,840 138,840 1,514 137,326 
$147,900 $11 $(780)$147,131 $147,131 $1,514 $145,617 
HTM securities (2)
Corporate debt securitiesLevel 2$89,945 $— $(213)$89,732 $89,945 $— $89,945 
$89,945 $— $(213)$89,732 $89,945 $— $89,945 
Total$949,286 $11 $(993)$948,304 $948,517 $367,014 $581,503 

December 31, 2021
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$3,139 $— $— $3,139 $3,139 $3,139 $— 
Money market fundsLevel 164,668 — — 64,668 64,668 64,668 — 
Certificate of deposits, notes and term depositsLevel 2565,089 — — 565,089 565,089 140,995 424,094 
HTM securities (2)
U.S. Treasury billsLevel 1 199,981 — 199,989 199,981 — 199,981 
Corporate debt securitiesLevel 2 104,823 — — 104,823 104,823 — 104,823 
$304,804 $$— $304,812 $304,804 $— $304,804 
Total$937,700 937700408.11$$— $937,708 $937,700 $208,802 $728,898 
(1) Changes in fair value of AFS securities are recorded in other comprehensive income. If unrealized loss is identified as credit loss, this loss will be recorded as finance expenses.
(2) Changes in fair value of HTM securities are presented for disclosure purposes as required by ASC 320 and are recorded as finance expenses only if the unrealized loss is identified as a credit loss.
As of June 30, 2022 and December 31, 2021, all investments and equivalents mature in one year or less.
Unrealized losses from debt securities are primarily attributable to changes in interest rates. The Company does not believe any remaining unrealized losses represent impairments based on the evaluation of available evidence.
Debt securities with continuous unrealized losses for less than 12 months and their related fair values were as follows:
June 30, 2022
Less than 12 months
Fair valueUnrealized loss
U.S. Treasury bills$537 $(10)
Government and governmental agencies7,754 (32)
Corporate debt securities132,264 (738)
Total$140,555 $(780)
As of June 30, 2022, no continuous unrealized losses for 12 months or greater was identified.
v3.22.2
INVENTORIES
6 Months Ended
Jun. 30, 2022
Inventory Disclosure [Abstract]  
INVENTORIES INVENTORIESInventories are stated at the lower of cost or net realizable value. The weighted average methodology is applied to determine cost. As of June 30, 2022 and December 31, 2021, the Company’s inventories were composed of:
June 30,
2022
December 31,
2021
 UnauditedAudited
Raw materials$2,545 $1,485 
Work in progress11,573 8,274 
Finished products15,413 14,668 
Total$29,531 $24,427 
v3.22.2
COMMITMENTS AND CONTINGENT LIABILITIES
6 Months Ended
Jun. 30, 2022
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENT LIABILITIES COMMITMENTS AND CONTINGENT LIABILITIES
Operating Leases. The facilities of the Company are leased under various operating lease agreements for periods, including options for extensions, ending no later than 2044. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2025.
Pledged deposits and bank guarantees. As of June 30, 2022 and December 31, 2021, the Company pledged bank deposits of $2,319 and $2,350, respectively, to cover bank guarantees in respect of its leases of operating facilities and obtained bank guarantees for the fulfillment of the Company’s lease and other contractual commitments of $2,642 and $2,698, respectively.
Senior secured revolving credit facility. On November 6, 2020, the Company entered into a three-year $150,000 senior secured revolving credit facility with a syndicate of relationship banks. For additional information, see Note 12(c) to the Consolidated Financial Statements in the 2021 10-K. As of June 30, 2022, the Company had no outstanding balance borrowed under the facility.
v3.22.2
CONVERTIBLE NOTE
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
CONVERTIBLE NOTE CONVERTIBLE NOTE
On November 5, 2020, the Company issued $575,000 aggregate principal amount of 0% Convertible Senior Notes due 2025 (the “Notes”).
The Notes mature on November 1, 2025, unless earlier repurchased, redeemed or converted as set forth in the Notes. As of June 30, 2022, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not convertible as of June 30, 2022 and are classified as long-term liability.
For additional information, see Note 10(a) to the Consolidated Financial Statements in the 2021 10-K.
The net carrying amounts of the liability of the Notes as of June 30, 2022 and December 31, 2021 are as follows:
June 30,
2022
December 31,
2021
UnauditedAudited
Liability component, net:
Principal amount$575,000 $575,000 
Unamortized issuance costs (11,154)(12,784)
Net carrying amount of liability component (1)$563,846 $562,216 
(1) An effective market interest rate determines the fair value of the Notes, therefore they are categorized as Level 3 in accordance with ASC 820, "Fair Value Measurements and Disclosures." The estimated fair values of the net carrying amount of liability component of the Notes as of June 30, 2022 and December 31, 2021 were $430,776 and $467,469, respectively.
Finance expense related to the Notes was as follows:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
Amortization of debt issuance costs
820 976 1,630 1,685 3,339 
Total finance expense recognized
$820 $976 $1,630 $1,685 $3,339 
v3.22.2
SHARE OPTION PLANS AND ESPP
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement, Recognized Amount [Abstract]  
SHARE OPTION PLANS AND ESPP SHARE OPTION PLANS AND ESPP
In September 2015, the Company adopted the 2015 Omnibus Incentive Plan (the “2015 Plan”). Under the 2015 Plan, the Company can issue various types of equity compensation awards such as share options, restricted shares, performance shares, restricted share units (“RSUs”), performance-based share units (“PSUs”), long-term cash awards and other share-based awards.
Options granted under the 2015 Plan generally have a two-year or four-year vesting period and expire ten years after the date of grant. Options granted under the 2015 Plan that are canceled or forfeited before expiration become available for future grants. RSUs granted under the 2015 Plan generally vest over a three year period. PSUs granted under the 2015 Plan generally vest between a three- and six-year period as performance targets are attained. RSUs and PSUs granted under the 2015 Plan that are canceled before expiration become available for future grants. As of June 30, 2022, 16,945,169 ordinary shares were available for grant under the 2015 Plan.
A summary of the status of the Company’s option plans as of June 30, 2022 and changes during the period then ended is presented below:
Six months ended June 30, 2022
Unaudited
Number
of options
Weighted
average
exercise
price
Outstanding at beginning of year8,549,322 $33.09 
Granted665,007 80.67 
Exercised(269,961)18.78 
Forfeited and canceled(68,591)79.17 
Outstanding as of June 30, 20228,875,777 $36.74 
Exercisable options7,189,164 $24.86 
For the six months ended June 30, 2022, options to purchase 269,961 ordinary shares were exercised, resulting in the issuance of 269,961 ordinary shares.
A summary of the status of the Company’s RSUs and PSUs as of June 30, 2022 and changes during the period then ended is presented below.
Six months ended June 30, 2022
Unaudited
Number
of RSU/PSUs
Weighted
average
grant date fair value
Unvested at beginning of year4,459,107 $65.56 
Granted1,104,033 81.04 
Vested(439,752)84.86 
Forfeited and cancelled(64,844)95.64 
Unvested as of June 30, 2022 (1)5,058,544 66.88 

(1) Includes PSUs that have a mix of service, market and other milestone performance vesting conditions which are vested upon achievements of performance milestones which are not probable, as of June 30, 2022, in accordance with ASC 718 as follows:
 June 30, 2022
Number of
PSUs
Fair value at grant date per PSUTotal fair value at grant date
2,703,852 $48.16 $130,218 
108,113 69.37 7,500 
124,701 $80.59 10,050 
17,712 84.68 1,500 
7,605 $87.66 667 
10,532 94.94 1,000 
189,626 $114.26 21,667 
3,162,141 $172,602 
These PSUs will be expensed over the performance period when the vesting conditions become probable in accordance with ASC 718.
In September 2015, the Company adopted an employee share purchase plan (“ESPP”) to encourage and enable eligible employees to acquire ownership of the Company’s ordinary shares purchased through accumulated payroll deductions on an after-tax basis. In the United States, the ESPP is intended to be an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code and the provisions of the ESPP are construed in a manner consistent with the requirements of such section. As of June 30, 2022, 4,908,288 ordinary shares were available to be purchased by eligible employees under the ESPP.
The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model. We assessed fair value using the following underlying assumptions: 
Six months ended June 30,Year ended December 31,
2021
20222021
UnauditedAudited
Stock Option Plans
Expected term (years)
5.33-5.83
5.50-6.00
5.50-6.00
Expected volatility
60%-62%
60%-62%
60%-63%
Risk-free interest rate
1.58%-3.04%
0.85%-1.02%
0.78%-1.27%
Dividend yield0.00 %0.00 %0.00 %
ESPP
Expected term (years)0.500.500.50
Expected volatility51.00 %54.00 %
54%-81%
Risk-free interest rate0.19 %0.09 %
0.05%-0.09%
Dividend yield0.00 %0.00 %0.00 %
The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021 was:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
Cost of revenues$1,029 $827 $1,981 $1,560 $3,471 
Research, development and clinical studies7,624 8,505 14,425 13,629 27,597 
Sales and marketing6,802 6,429 13,457 10,900 22,673 
General and administrative10,368 12,120 21,005 20,655 41,159 
Total share-based compensation expense$25,823 $27,881 $50,868 $46,744 $94,900 
v3.22.2
BASIC AND DILUTED NET INCOME (LOSS) PER ORDINARY SHARE
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
BASIC AND DILUTED NET INCOME (LOSS) PER ORDINARY SHARE Basic and diluted net income (loss) per ordinary shareBasic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus potential dilutive shares (deriving from options, RSUs, PSUs, convertible notes and the ESPP) considered outstanding during the period, in accordance with ASC 260-10, as determined under the if-converted method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share:
 Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
 2022202120222021
UnauditedUnauditedAudited
Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share$(24,008)$(14,641)$(28,655)$(18,769)$(58,351)
Weighted average number of ordinary shares used in computing basic net income (loss) per share104,627,789 103,484,866 104,408,164 103,061,557 103,433,274 
Weighted average number of ordinary shares used in computing diluted net income (loss) per share104,627,789 103,484,866 104,408,164 103,061,557 103,433,274 
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation7,746,398 9,098,788 7,790,467 9,363,037 8,524,922 
Basic net income (loss) per ordinary share$(0.23)$(0.14)$(0.27)$(0.18)$(0.56)
Diluted net income (loss) per ordinary share$(0.23)$(0.14)$(0.27)$(0.18)$(0.56)
v3.22.2
SUPPLEMENTAL INFORMATION
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION
The Company operates in a single reportable segment.
The following table presents long-lived assets by location:
June 30,
2022
December 31,
2021
 UnauditedAudited
United States$25,754 $23,263 
Israel6,094 5,297 
Switzerland4,316 4,085 
Japan975 799 
Germany697 1,020 
Others1,102 1,152 
Total$38,938 $35,616 
The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
United States$108,203 $87,139 $205,619 $173,047 $353,110 
EMEA:
Germany10,347 25,362 29,585 51,726 93,939 
Other EMEA8,111 7,335 15,886 15,954 30,577 
Japan8,272 8,750 17,022 17,028 34,640 
Greater China (1)5,933 4,931 10,301 10,457 22,765 
Total net revenues$140,866 $133,517 $278,413 $268,212 $535,031 
(1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2021 10-K.
v3.22.2
ORGANIZATION AND BASIS OF PRESENTATION (Policies)
6 Months Ended
Jun. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Short-term investments
Short-term investments
The Company accounts for investments in debt securities in accordance with ASC 320, "Investments—Debt and Equity Securities."
Management determines the appropriate classification of its investments at the time of purchase and reevaluates such determinations at each balance sheet date. The Company classifies part of its debt securities as available-for-sale ("AFS") and the rest of the balance as held-to-maturity ("HTM") when the Company has the intent and ability to hold the securities to maturity.
Available-for-sale debt securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders’ equity. Realized gains and losses on sale of investments are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold.
The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net.
Each reporting period, the Company evaluates whether declines in fair value below amortized cost are due to expected credit losses, as well as the Company’s ability and intent to hold the investment until a forecasted recovery occurs. Allowance for credit losses on available-for-sale debt securities are recognized in the Company’s consolidated statements of income, and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in stockholders’ equity.
Held-to-maturity debt securities are stated at amortized cost of which is adjusted for amortization of premiums and accretion of discounts to maturity and any credit losses. Such amortization and interest are included in the consolidated statement of operations as financial income or expenses, as appropriate.
v3.22.2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS (Tables)
6 Months Ended
Jun. 30, 2022
Cash, Cash Equivalents, and Short-Term Investments [Abstract]  
Summary of Cash and Cash Equivalents As of June 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents and short-term investments were composed of:
June 30, 2022
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$7,173 $— $— $7,173 $7,173 $7,173 $— 
Money market fundsLevel 1217,498 — — 217,498 217,498 217,498 — 
Certificate of deposits and term depositsLevel 2486,770 — — 486,770 486,770 140,829 345,941 
AFS securities (1)
U.S. Treasury billsLevel 1 547 — (10)537 537 — 537 
Government and governmental agenciesLevel 2 7,786 — (32)7,754 7,754 — 7,754 
Corporate debt securitiesLevel 2 139,567 11 (738)138,840 138,840 1,514 137,326 
$147,900 $11 $(780)$147,131 $147,131 $1,514 $145,617 
HTM securities (2)
Corporate debt securitiesLevel 2$89,945 $— $(213)$89,732 $89,945 $— $89,945 
$89,945 $— $(213)$89,732 $89,945 $— $89,945 
Total$949,286 $11 $(993)$948,304 $948,517 $367,014 $581,503 

December 31, 2021
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$3,139 $— $— $3,139 $3,139 $3,139 $— 
Money market fundsLevel 164,668 — — 64,668 64,668 64,668 — 
Certificate of deposits, notes and term depositsLevel 2565,089 — — 565,089 565,089 140,995 424,094 
HTM securities (2)
U.S. Treasury billsLevel 1 199,981 — 199,989 199,981 — 199,981 
Corporate debt securitiesLevel 2 104,823 — — 104,823 104,823 — 104,823 
$304,804 $$— $304,812 $304,804 $— $304,804 
Total$937,700 937700408.11$$— $937,708 $937,700 $208,802 $728,898 
(1) Changes in fair value of AFS securities are recorded in other comprehensive income. If unrealized loss is identified as credit loss, this loss will be recorded as finance expenses.
(2) Changes in fair value of HTM securities are presented for disclosure purposes as required by ASC 320 and are recorded as finance expenses only if the unrealized loss is identified as a credit loss.
Schedule of Available-for-Sale Securities Reconciliation As of June 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents and short-term investments were composed of:
June 30, 2022
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$7,173 $— $— $7,173 $7,173 $7,173 $— 
Money market fundsLevel 1217,498 — — 217,498 217,498 217,498 — 
Certificate of deposits and term depositsLevel 2486,770 — — 486,770 486,770 140,829 345,941 
AFS securities (1)
U.S. Treasury billsLevel 1 547 — (10)537 537 — 537 
Government and governmental agenciesLevel 2 7,786 — (32)7,754 7,754 — 7,754 
Corporate debt securitiesLevel 2 139,567 11 (738)138,840 138,840 1,514 137,326 
$147,900 $11 $(780)$147,131 $147,131 $1,514 $145,617 
HTM securities (2)
Corporate debt securitiesLevel 2$89,945 $— $(213)$89,732 $89,945 $— $89,945 
$89,945 $— $(213)$89,732 $89,945 $— $89,945 
Total$949,286 $11 $(993)$948,304 $948,517 $367,014 $581,503 

December 31, 2021
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$3,139 $— $— $3,139 $3,139 $3,139 $— 
Money market fundsLevel 164,668 — — 64,668 64,668 64,668 — 
Certificate of deposits, notes and term depositsLevel 2565,089 — — 565,089 565,089 140,995 424,094 
HTM securities (2)
U.S. Treasury billsLevel 1 199,981 — 199,989 199,981 — 199,981 
Corporate debt securitiesLevel 2 104,823 — — 104,823 104,823 — 104,823 
$304,804 $$— $304,812 $304,804 $— $304,804 
Total$937,700 937700408.11$$— $937,708 $937,700 $208,802 $728,898 
(1) Changes in fair value of AFS securities are recorded in other comprehensive income. If unrealized loss is identified as credit loss, this loss will be recorded as finance expenses.
(2) Changes in fair value of HTM securities are presented for disclosure purposes as required by ASC 320 and are recorded as finance expenses only if the unrealized loss is identified as a credit loss.
Summary of Amortized Cost and Recorded Basis of T-bills in Short-Term Investments As of June 30, 2022 and December 31, 2021, the Company’s cash and cash equivalents and short-term investments were composed of:
June 30, 2022
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$7,173 $— $— $7,173 $7,173 $7,173 $— 
Money market fundsLevel 1217,498 — — 217,498 217,498 217,498 — 
Certificate of deposits and term depositsLevel 2486,770 — — 486,770 486,770 140,829 345,941 
AFS securities (1)
U.S. Treasury billsLevel 1 547 — (10)537 537 — 537 
Government and governmental agenciesLevel 2 7,786 — (32)7,754 7,754 — 7,754 
Corporate debt securitiesLevel 2 139,567 11 (738)138,840 138,840 1,514 137,326 
$147,900 $11 $(780)$147,131 $147,131 $1,514 $145,617 
HTM securities (2)
Corporate debt securitiesLevel 2$89,945 $— $(213)$89,732 $89,945 $— $89,945 
$89,945 $— $(213)$89,732 $89,945 $— $89,945 
Total$949,286 $11 $(993)$948,304 $948,517 $367,014 $581,503 

December 31, 2021
Fair value levelAdjusted cost basisUnrealized gainsUnrealized lossesFair market valueRecorded basisCash and cash equivalentsShort-term investments
Cash$3,139 $— $— $3,139 $3,139 $3,139 $— 
Money market fundsLevel 164,668 — — 64,668 64,668 64,668 — 
Certificate of deposits, notes and term depositsLevel 2565,089 — — 565,089 565,089 140,995 424,094 
HTM securities (2)
U.S. Treasury billsLevel 1 199,981 — 199,989 199,981 — 199,981 
Corporate debt securitiesLevel 2 104,823 — — 104,823 104,823 — 104,823 
$304,804 $$— $304,812 $304,804 $— $304,804 
Total$937,700 937700408.11$$— $937,708 $937,700 $208,802 $728,898 
(1) Changes in fair value of AFS securities are recorded in other comprehensive income. If unrealized loss is identified as credit loss, this loss will be recorded as finance expenses.
(2) Changes in fair value of HTM securities are presented for disclosure purposes as required by ASC 320 and are recorded as finance expenses only if the unrealized loss is identified as a credit loss.
Debt Securities, Available-for-Sale
Debt securities with continuous unrealized losses for less than 12 months and their related fair values were as follows:
June 30, 2022
Less than 12 months
Fair valueUnrealized loss
U.S. Treasury bills$537 $(10)
Government and governmental agencies7,754 (32)
Corporate debt securities132,264 (738)
Total$140,555 $(780)
v3.22.2
INVENTORIES (Tables)
6 Months Ended
Jun. 30, 2022
Inventory Disclosure [Abstract]  
Schedule of Inventories As of June 30, 2022 and December 31, 2021, the Company’s inventories were composed of:
June 30,
2022
December 31,
2021
 UnauditedAudited
Raw materials$2,545 $1,485 
Work in progress11,573 8,274 
Finished products15,413 14,668 
Total$29,531 $24,427 
v3.22.2
CONVERTIBLE NOTE (Tables)
6 Months Ended
Jun. 30, 2022
Debt Disclosure [Abstract]  
Summary of the Convertible Notes
The net carrying amounts of the liability of the Notes as of June 30, 2022 and December 31, 2021 are as follows:
June 30,
2022
December 31,
2021
UnauditedAudited
Liability component, net:
Principal amount$575,000 $575,000 
Unamortized issuance costs (11,154)(12,784)
Net carrying amount of liability component (1)$563,846 $562,216 
(1) An effective market interest rate determines the fair value of the Notes, therefore they are categorized as Level 3 in accordance with ASC 820, "Fair Value Measurements and Disclosures." The estimated fair values of the net carrying amount of liability component of the Notes as of June 30, 2022 and December 31, 2021 were $430,776 and $467,469, respectively.
Finance expense related to the Notes was as follows:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
Amortization of debt issuance costs
820 976 1,630 1,685 3,339 
Total finance expense recognized
$820 $976 $1,630 $1,685 $3,339 
v3.22.2
SHARE OPTION PLANS AND ESPP (Tables)
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement, Recognized Amount [Abstract]  
Schedule of Stock Option Plans
A summary of the status of the Company’s option plans as of June 30, 2022 and changes during the period then ended is presented below:
Six months ended June 30, 2022
Unaudited
Number
of options
Weighted
average
exercise
price
Outstanding at beginning of year8,549,322 $33.09 
Granted665,007 80.67 
Exercised(269,961)18.78 
Forfeited and canceled(68,591)79.17 
Outstanding as of June 30, 20228,875,777 $36.74 
Exercisable options7,189,164 $24.86 
Schedule of RSUs and PSUs
A summary of the status of the Company’s RSUs and PSUs as of June 30, 2022 and changes during the period then ended is presented below.
Six months ended June 30, 2022
Unaudited
Number
of RSU/PSUs
Weighted
average
grant date fair value
Unvested at beginning of year4,459,107 $65.56 
Granted1,104,033 81.04 
Vested(439,752)84.86 
Forfeited and cancelled(64,844)95.64 
Unvested as of June 30, 2022 (1)5,058,544 66.88 

(1) Includes PSUs that have a mix of service, market and other milestone performance vesting conditions which are vested upon achievements of performance milestones which are not probable, as of June 30, 2022, in accordance with ASC 718 as follows:
 June 30, 2022
Number of
PSUs
Fair value at grant date per PSUTotal fair value at grant date
2,703,852 $48.16 $130,218 
108,113 69.37 7,500 
124,701 $80.59 10,050 
17,712 84.68 1,500 
7,605 $87.66 667 
10,532 94.94 1,000 
189,626 $114.26 21,667 
3,162,141 $172,602 
Schedule of Fair Value Assumptions Used for All Equity Based Awards Estimated Using Black-Scholes Option Pricing Model
The fair value of share-based awards was estimated using the Black-Scholes model for all equity grants. For market condition awards, the Company also applied the Monte-Carlo simulation model. We assessed fair value using the following underlying assumptions: 
Six months ended June 30,Year ended December 31,
2021
20222021
UnauditedAudited
Stock Option Plans
Expected term (years)
5.33-5.83
5.50-6.00
5.50-6.00
Expected volatility
60%-62%
60%-62%
60%-63%
Risk-free interest rate
1.58%-3.04%
0.85%-1.02%
0.78%-1.27%
Dividend yield0.00 %0.00 %0.00 %
ESPP
Expected term (years)0.500.500.50
Expected volatility51.00 %54.00 %
54%-81%
Risk-free interest rate0.19 %0.09 %
0.05%-0.09%
Dividend yield0.00 %0.00 %0.00 %
Schedule of Non-cash Share-based Compensation Expense Related to Company's Equity-Based Awards The total non-cash share-based compensation expense related to all of the Company’s equity-based awards recognized for the three and six months ended June 30, 2022 and 2021 and the year ended December 31, 2021 was:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
Cost of revenues$1,029 $827 $1,981 $1,560 $3,471 
Research, development and clinical studies7,624 8,505 14,425 13,629 27,597 
Sales and marketing6,802 6,429 13,457 10,900 22,673 
General and administrative10,368 12,120 21,005 20,655 41,159 
Total share-based compensation expense$25,823 $27,881 $50,868 $46,744 $94,900 
v3.22.2
BASIC AND DILUTED NET INCOME (LOSS) PER ORDINARY SHARE (Tables)
6 Months Ended
Jun. 30, 2022
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Income (Loss) Per Ordinary Share The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share:
 Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
 2022202120222021
UnauditedUnauditedAudited
Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share$(24,008)$(14,641)$(28,655)$(18,769)$(58,351)
Weighted average number of ordinary shares used in computing basic net income (loss) per share104,627,789 103,484,866 104,408,164 103,061,557 103,433,274 
Weighted average number of ordinary shares used in computing diluted net income (loss) per share104,627,789 103,484,866 104,408,164 103,061,557 103,433,274 
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation7,746,398 9,098,788 7,790,467 9,363,037 8,524,922 
Basic net income (loss) per ordinary share$(0.23)$(0.14)$(0.27)$(0.18)$(0.56)
Diluted net income (loss) per ordinary share$(0.23)$(0.14)$(0.27)$(0.18)$(0.56)
v3.22.2
SUPPLEMENTAL INFORMATION (Tables)
6 Months Ended
Jun. 30, 2022
Segment Reporting [Abstract]  
Schedule of Long-Lived Assets by Location
The following table presents long-lived assets by location:
June 30,
2022
December 31,
2021
 UnauditedAudited
United States$25,754 $23,263 
Israel6,094 5,297 
Switzerland4,316 4,085 
Japan975 799 
Germany697 1,020 
Others1,102 1,152 
Total$38,938 $35,616 
Schedule of Revenues by Geographic Region
The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows:
Three months ended June 30,Six months ended June 30,Year ended December 31,
2021
2022202120222021
UnauditedUnauditedAudited
United States$108,203 $87,139 $205,619 $173,047 $353,110 
EMEA:
Germany10,347 25,362 29,585 51,726 93,939 
Other EMEA8,111 7,335 15,886 15,954 30,577 
Japan8,272 8,750 17,022 17,028 34,640 
Greater China (1)5,933 4,931 10,301 10,457 22,765 
Total net revenues$140,866 $133,517 $278,413 $268,212 $535,031 
(1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2021 10-K.
v3.22.2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Cash and Cash Equivalents and Short-Term Investments (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents $ 367,014 $ 208,802
AFS Securities    
Adjusted cost basis 147,900  
Unrealized gains 11  
Unrealized losses (780)  
Debt securities, fair market value and recorded basis 147,131  
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis 89,945 304,804
Unrealized gains 0 8
Unrealized losses (213) 0
Fair market value 89,732 304,812
Debt securities, available-for-sale and held-to-maturity, Adjusted cost basis 949,286 937,700
Debt securities, available-for-sale and held-to-maturity, Unrealized gains 11 8
Debt securities, available-for-sale and held-to-maturity, Unrealized losses (993) 0
Debt securities, available-for-sale and held-to-maturity, fair value 948,304 937,708
Debt securities, available-for-sale and held-to-maturity 948,517 937,700
Cash and Cash Equivalents    
AFS Securities    
Debt securities, fair market value and recorded basis 1,514  
HTM Securities    
Debt securities, available-for-sale and held-to-maturity 367,014 208,802
Short-Term Investments    
AFS Securities    
Debt securities, fair market value and recorded basis 145,617  
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis 89,945 304,804
Debt securities, available-for-sale and held-to-maturity 581,503 728,898
Level 1 | U.S. Treasury bills    
AFS Securities    
Adjusted cost basis 547  
Unrealized gains 0  
Unrealized losses (10)  
Debt securities, fair market value and recorded basis 537  
Level 1 | U.S. Treasury bills | Short-Term Investments    
AFS Securities    
Debt securities, fair market value and recorded basis 537  
Level 2 | U.S. Treasury bills    
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis   199,981
Unrealized gains   8
Unrealized losses   0
Fair market value   199,989
Level 2 | U.S. Treasury bills | Short-Term Investments    
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis   199,981
Level 2 | Government and governmental agencies    
AFS Securities    
Adjusted cost basis 7,786  
Unrealized gains 0  
Unrealized losses (32)  
Debt securities, fair market value and recorded basis 7,754  
Level 2 | Government and governmental agencies | Short-Term Investments    
AFS Securities    
Debt securities, fair market value and recorded basis 7,754  
Level 2 | Corporate debt securities    
AFS Securities    
Adjusted cost basis 139,567  
Unrealized gains 11  
Unrealized losses (738)  
Debt securities, fair market value and recorded basis 138,840  
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis 89,945 104,823
Unrealized gains 0 0
Unrealized losses (213) 0
Fair market value 89,732 104,823
Level 2 | Corporate debt securities | Cash and Cash Equivalents    
AFS Securities    
Debt securities, fair market value and recorded basis 1,514  
Level 2 | Corporate debt securities | Short-Term Investments    
AFS Securities    
Debt securities, fair market value and recorded basis 137,326  
HTM Securities    
Debt securities, held-to-maturity, Adjusted cost basis and Recorded basis 89,945 104,823
Cash    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents, fair value 7,173 3,139
Cash | Cash and Cash Equivalents    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents 7,173 3,139
Money market funds | Level 1    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents, fair value 217,498 64,668
Money market funds | Level 1 | Cash and Cash Equivalents    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents 217,498 64,668
Certificate of deposits and term deposits | Level 2    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents, fair value 486,770 565,089
Certificate of deposits and term deposits | Level 2 | Cash and Cash Equivalents    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents 140,829 140,995
Certificate of deposits and term deposits | Level 2 | Short-Term Investments    
Debt Securities, Available-for-Sale [Line Items]    
Cash and cash equivalents $ 345,941 $ 424,094
v3.22.2
CASH, CASH EQUIVALENTS AND SHORT-TERM INVESTMENTS - Debt Securities with Continuous Unrealized Losses (Details)
$ in Thousands
Jun. 30, 2022
USD ($)
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]  
Fair value $ 140,555
Unrealized loss (780)
U.S. Treasury bills  
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]  
Fair value 537
Unrealized loss (10)
Government and governmental agencies  
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]  
Fair value 7,754
Unrealized loss (32)
Corporate debt securities  
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items]  
Fair value 132,264
Unrealized loss $ (738)
v3.22.2
INVENTORIES (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Inventory Disclosure [Abstract]    
Raw materials $ 2,545 $ 1,485
Work in progress 11,573 8,274
Finished products 15,413 14,668
Total $ 29,531 $ 24,427
v3.22.2
COMMITMENTS AND CONTINGENT LIABILITIES (Details) - USD ($)
Nov. 06, 2020
Jun. 30, 2022
Dec. 31, 2021
Commitments and Contingencies Disclosure [Abstract]      
Pledged bank deposits   $ 2,319,000 $ 2,350,000
Operating lease and other contractual commitments   2,642,000 $ 2,698,000
Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Contractual term 3 years    
Maximum borrowing capacity $ 150,000,000    
Revolving Credit Facility | Line of Credit      
Line of Credit Facility [Line Items]      
Amount outstanding   $ 0  
v3.22.2
CONVERTIBLE NOTE - Additional Information (Details) - Convertible Debt - the “Notes”
Nov. 05, 2020
USD ($)
Debt Instrument [Line Items]  
Aggregate principal amount $ 575,000,000
Stated interest rate 0.00%
v3.22.2
CONVERTIBLE NOTE - Liability and Equity Components of the Convertible Notes (Details) - Convertible Debt - the “Notes” - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Principal amount $ 575,000 $ 575,000
Unamortized issuance costs (11,154) (12,784)
Net carrying amount of liability component 563,846 562,216
Estimated fair value $ 430,776 $ 467,469
v3.22.2
CONVERTIBLE NOTE - Finance Expense Related to the Convertible Notes (Details) - the “Notes” - Convertible Debt - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Debt Instrument [Line Items]          
Amortization of debt issuance costs $ 820 $ 976 $ 1,630 $ 1,685 $ 3,339
Total finance expense recognized $ 820 $ 976 $ 1,630 $ 1,685 $ 3,339
v3.22.2
SHARE OPTION PLANS AND ESPP - Additional Information (Details)
6 Months Ended
Jun. 30, 2022
shares
Share Capital [Line Items]  
Options exercised (in shares) 269,961
ESPP  
Share Capital [Line Items]  
Ordinary shares available for grants (in shares) 4,908,288
Shares issued under plan (in shares) 269,961
2015 Plan  
Share Capital [Line Items]  
Ordinary shares available for grants (in shares) 16,945,169
2015 Plan | Options  
Share Capital [Line Items]  
Stock awards granted, expiration period (years) 10 years
2015 Plan | Options | Minimum  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 2 years
2015 Plan | Options | Maximum  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 4 years
2015 Plan | Restricted share units  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 3 years
2015 Plan | PSUs | Minimum  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 3 years
2015 Plan | PSUs | Maximum  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 6 years
v3.22.2
SHARE OPTION PLANS AND ESPP - Schedule of Stock Option Plan (Details)
6 Months Ended
Jun. 30, 2022
$ / shares
shares
Number of options  
Number of options, beginning outstanding (in shares) | shares 8,549,322
Number of options, granted (in shares) | shares 665,007
Number of options, exercised (in shares) | shares (269,961)
Number of options, forfeited and canceled (in shares) | shares (68,591)
Number of options, ending outstanding (in shares) | shares 8,875,777
Number of options, exercisable options (in shares) | shares 7,189,164
Weighted average exercise price  
Weighted average exercise price, beginning outstanding (in usd per share) | $ / shares $ 33.09
Weighted average exercise price, granted (in usd per share) | $ / shares 80.67
Weighted average exercise price, exercised (in usd per share) | $ / shares 18.78
Weighted average exercise price, forfeited and canceled (in usd per share) | $ / shares 79.17
Weighted average exercise price, ending outstanding (in usd per share) | $ / shares 36.74
Weighted average exercise price, exercisable options (in usd per share) | $ / shares $ 24.86
v3.22.2
SHARE OPTION PLANS AND ESPP - Schedule of RSUs and PSUs (Details)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2022
USD ($)
$ / shares
shares
RSUs/PSUs  
Number of RSU/PSUs  
Unvested at beginning of year (in shares) 4,459,107
Granted (in shares) 1,104,033
Vested (in shares) (439,752)
Forfeited and cancelled (in shares) (64,844)
Unvested at ending of year (in shares) 5,058,544
Weighted average grant date fair value  
Unvested at beginning of year (in usd per share) | $ / shares $ 65.56
Granted (in usd per share) | $ / shares 81.04
Vested (in usd per share) | $ / shares 84.86
Forfeited and cancelled (in usd per share) | $ / shares 95.64
Unvested at ending of year (in usd per share) | $ / shares $ 66.88
PSUs  
Weighted average grant date fair value  
Number of PSUs (in shares) 3,162,141
Total fair value at grant date | $ $ 172,602
PSUs | Award One  
Weighted average grant date fair value  
Number of PSUs (in shares) 2,703,852
Fair value at grant date per PSU (in usd per share) | $ / shares $ 48.16
Total fair value at grant date | $ $ 130,218
PSUs | Award Two  
Weighted average grant date fair value  
Number of PSUs (in shares) 108,113
Fair value at grant date per PSU (in usd per share) | $ / shares $ 69.37
Total fair value at grant date | $ $ 7,500
PSUs | Award Three  
Weighted average grant date fair value  
Number of PSUs (in shares) 124,701
Fair value at grant date per PSU (in usd per share) | $ / shares $ 80.59
Total fair value at grant date | $ $ 10,050
PSUs | Award Four  
Weighted average grant date fair value  
Number of PSUs (in shares) 17,712
Fair value at grant date per PSU (in usd per share) | $ / shares $ 84.68
Total fair value at grant date | $ $ 1,500
PSUs | Award Five  
Weighted average grant date fair value  
Number of PSUs (in shares) 7,605
Fair value at grant date per PSU (in usd per share) | $ / shares $ 87.66
Total fair value at grant date | $ $ 667
PSUs | Award Six  
Weighted average grant date fair value  
Number of PSUs (in shares) 10,532
Fair value at grant date per PSU (in usd per share) | $ / shares $ 94.94
Total fair value at grant date | $ $ 1,000
PSUs | Award Seven  
Weighted average grant date fair value  
Number of PSUs (in shares) 189,626
Fair value at grant date per PSU (in usd per share) | $ / shares $ 114.26
Total fair value at grant date | $ $ 21,667
v3.22.2
SHARE OPTION PLANS AND ESPP - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)
6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 6 months 6 months 6 months
Expected volatility, minimum 51.00% 54.00% 54.00%
Expected volatility, maximum     81.00%
Risk-free interest rate, minimum 0.19% 0.09% 0.05%
Risk-free interest rate, maximum     0.09%
Dividend yield 0.00% 0.00% 0.00%
Stock Option Plans      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected volatility, minimum 60.00% 60.00% 60.00%
Expected volatility, maximum 62.00% 62.00% 63.00%
Risk-free interest rate, minimum 1.58% 0.85% 0.78%
Risk-free interest rate, maximum 3.04% 1.02% 1.27%
Dividend yield 0.00% 0.00% 0.00%
Stock Option Plans | Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 5 years 3 months 29 days 5 years 6 months 5 years 6 months
Stock Option Plans | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 5 years 9 months 29 days 6 years 6 years
v3.22.2
SHARE OPTION PLANS AND ESPP - Schedule of Non-cash Share-Based Compensation Expenses Related to Company's Equity-Based Awards (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total share-based compensation expense $ 25,823 $ 27,881 $ 50,868 $ 46,744 $ 94,900
Cost of revenues          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total share-based compensation expense 1,029 827 1,981 1,560 3,471
Research, development and clinical studies          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total share-based compensation expense 7,624 8,505 14,425 13,629 27,597
Sales and marketing          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total share-based compensation expense 6,802 6,429 13,457 10,900 22,673
General and administrative          
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]          
Total share-based compensation expense $ 10,368 $ 12,120 $ 21,005 $ 20,655 $ 41,159
v3.22.2
BASIC AND DILUTED NET INCOME (LOSS) PER ORDINARY SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Mar. 31, 2022
Jun. 30, 2021
Mar. 31, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]              
Net income (loss) attributable to ordinary shares as reported used in computing basic and diluted net income (loss) per share $ (24,008) $ (4,647) $ (14,641) $ (4,128) $ (28,655) $ (18,769) $ (58,351)
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) 104,627,789   103,484,866   104,408,164 103,061,557 103,433,274
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) 104,627,789   103,484,866   104,408,164 103,061,557 103,433,274
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation (in shares) 7,746,398   9,098,788   7,790,467 9,363,037 8,524,922
Basic net income (loss) per ordinary share (in usd per share) $ (0.23)   $ (0.14)   $ (0.27) $ (0.18) $ (0.56)
Diluted net income (loss) per ordinary share (in usd per share) $ (0.23)   $ (0.14)   $ (0.27) $ (0.18) $ (0.56)
v3.22.2
SUPPLEMENTAL INFORMATION - Schedule of Long-Lived Assets by Location (Details) - USD ($)
$ in Thousands
Jun. 30, 2022
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets $ 38,938 $ 35,616
United States    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets 25,754 23,263
Israel    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets 6,094 5,297
Switzerland    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets 4,316 4,085
Japan    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets 975 799
Germany    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets 697 1,020
Others    
Revenues from External Customers and Long-Lived Assets [Line Items]    
Long-term assets $ 1,102 $ 1,152
v3.22.2
SUPPLEMENTAL INFORMATION - Schedule of Revenues by Geographic Region (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2022
Jun. 30, 2021
Jun. 30, 2022
Jun. 30, 2021
Dec. 31, 2021
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues $ 140,866 $ 133,517 $ 278,413 $ 268,212 $ 535,031
United States          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues 108,203 87,139 205,619 173,047 353,110
Germany          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues 10,347 25,362 29,585 51,726 93,939
Other EMEA          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues 8,111 7,335 15,886 15,954 30,577
Japan          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues 8,272 8,750 17,022 17,028 34,640
Greater China          
Revenues from External Customers and Long-Lived Assets [Line Items]          
Net revenues $ 5,933 $ 4,931 $ 10,301 $ 10,457 $ 22,765