NOVOCURE LTD, 10-Q filed on 4/29/2021
Quarterly Report
v3.21.1
Cover - shares
3 Months Ended
Mar. 31, 2021
Apr. 23, 2021
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
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   103,413,367
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Entity Central Index Key 0001645113  
Current Fiscal Year End Date --12-31  
v3.21.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
CURRENT ASSETS:    
Cash and cash equivalents $ 314,547 $ 234,674
Short-term investments 549,855 607,902
Restricted cash 11,430 11,499
Trade receivables, net 92,514 96,699
Receivables and prepaid expenses 18,922 21,245
Inventories 27,968 27,422
Total current assets 1,015,236 999,441
LONG-TERM ASSETS:    
Property and equipment, net 11,733 11,395
Field equipment, net 12,132 11,230
Right-of-use assets 17,741 19,009
Other long-term assets 10,788 10,908
Total long-term assets 52,394 52,542
TOTAL ASSETS 1,067,630 1,051,983
CURRENT LIABILITIES:    
Trade payables 52,703 53,647
Other payables, lease liabilities and accrued expenses 57,784 59,965
Total current liabilities 110,487 113,612
LONG-TERM LIABILITIES:    
Long-term debt, net 559,584 429,905
Deferred revenue 9,577 12,139
Long-term leases 12,708 14,293
Employee benefits 2,963 5,171
Other long-term liabilities 177 337
Total long-term liabilities 585,009 461,845
TOTAL LIABILITIES 695,496 575,457
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS' EQUITY:    
Ordinary shares no par value, unlimited shares authorized; issued and outstanding: 103,187,460 shares and 102,334,276 shares at March 31, 2021 (unaudited) and December 31, 2020, respectively 0 0
Additional paid-in capital 1,005,785 1,111,435
Accumulated other comprehensive income (loss) (1,948) (3,832)
Retained earnings (accumulated deficit) (631,703) (631,077)
TOTAL SHAREHOLDERS' EQUITY 372,134 476,526
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 1,067,630 $ 1,051,983
v3.21.1
CONSOLIDATED BALANCE SHEETS (Parenthetical) - shares
Mar. 31, 2021
Dec. 31, 2020
Statement of Financial Position [Abstract]    
Common stock, shares issued 103,187,460 102,334,276
Common stock, shares outstanding 103,187,460 102,334,276
v3.21.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Income Statement [Abstract]      
Net revenues $ 134,695 $ 101,828 $ 494,366
Cost of revenues 26,385 24,496 106,501
Gross profit 108,310 77,332 387,865
Operating costs and expenses:      
Research, development and clinical trials 45,916 25,271 132,010
Sales and marketing 31,357 28,834 118,017
General and administrative 31,125 26,608 107,437
Total operating costs and expenses 108,398 80,713 357,464
Operating income (loss) (88) (3,381) 30,401
Financial expenses (income), net 2,646 2,432 12,299
Income (loss) before income tax (2,734) (5,813) 18,102
Income tax 1,394 (9,765) (1,706)
Net income (loss) $ (4,128) $ 3,952 $ 19,808
Basic net income (loss) per ordinary share (in usd per share) $ (0.04) $ 0.04 $ 0.20
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) 102,633,545 99,877,567 100,930,866
Diluted net income (loss) per ordinary share (in usd per share) $ (0.04) $ 0.04 $ 0.18
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) 102,633,545 108,100,623 108,877,648
v3.21.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ (4,128) $ 3,952 $ 19,808
Other comprehensive income (loss), net of tax:      
Change in foreign currency translation adjustments (268) (200) (85)
Pension benefit plan 2,152 (662) (980)
Total comprehensive income (loss) $ (2,244) $ 3,090 $ 18,743
v3.21.1
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 at Dec. 31, 2019 $ 217,790     $ 871,442   $ (2,767) $ (650,885)  
Beginning balance (in shares) at Dec. 31, 2019     99,528,435          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 16,557     16,557        
Exercise of options and vested RSUs 4,511     4,511        
Exercise of options and vested RSUs (in shares)     834,538          
Other comprehensive income (loss), net of tax benefit (862)         (862)    
Net income (loss) 3,952           3,952  
Ending balance at Mar. 31, 2020 241,948     892,510   (3,629) (646,933)  
Ending balance (in shares) at Mar. 31, 2020     100,362,973          
Beginning balance at Dec. 31, 2019 217,790     871,442   (2,767) (650,885)  
Beginning balance (in shares) at Dec. 31, 2019     99,528,435          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net income (loss) 19,808              
Ending balance at Dec. 31, 2020 476,526 $ (128,972)   1,111,435 $ (132,474) (3,832) (631,077) $ 3,502
Ending balance (in shares) at Dec. 31, 2020     102,334,276          
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Share-based compensation to employees 18,863     18,863        
Exercise of options and vested RSUs 7,961     7,961        
Exercise of options and vested RSUs (in shares)     853,184          
Other comprehensive income (loss), net of tax benefit 1,884         1,884    
Net income (loss) (4,128)           (4,128)  
Ending balance at Mar. 31, 2021 $ 372,134     $ 1,005,785   $ (1,948) $ (631,703)  
Ending balance (in shares) at Mar. 31, 2021     103,187,460          
v3.21.1
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - USD ($)
$ in Thousands
3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement of Stockholders' Equity [Abstract]    
Other comprehensive income (loss), tax benefit $ 0 $ 0
v3.21.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Cash flows from operating activities:      
Net income (loss) $ (4,128) $ 3,952 $ 19,808
Adjustments to reconcile net income (loss) to net cash used in operating activities:      
Depreciation and amortization 2,370 1,888 9,150
Asset write-downs and impairment of field equipment 176 6 429
Share-based compensation 18,863 16,557 75,721
Foreign currency remeasurement loss (gain) 2,157 (7) (699)
Decrease (increase) in accounts receivables 4,624 (19,718) (30,354)
Amortization of discount (premium) 603 (539) 3,260
Decrease (increase) in inventories (1,296) 1,147 (2,935)
Decrease (increase) in other long-term assets 1,432 1,235 (1,366)
Increase (decrease) in accounts payables and accrued expenses (2,626) (2,339) 25,470
Increase (decrease) in other long-term liabilities (4,394) (225) 664
Net cash provided by (used in) operating activities 17,780 1,957 99,148
Cash flows from investing activities:      
Purchase of property, equipment and field equipment (3,981) (3,112) (14,968)
Proceeds from maturity of short-term investments 608,000 0 150,000
Purchase of short-term investments (549,848) 0 (607,879)
Net cash provided by (used in) investing activities 54,171 (3,112) (472,847)
Cash flows from financing activities:      
Proceeds from issuance of shares, net 0 0 3,370
Proceeds from long term debt, net 0 0 558,439
Repayment of long-term loan (6) (8) (150,028)
Exercise of options and warrants 7,961 4,511 28,428
Net cash provided by (used in) financing activities 7,955 4,503 440,209
Effect of exchange rate changes on cash, cash equivalents and restricted cash (102) (59) 247
Increase (decrease) in cash, cash equivalents and restricted cash 79,804 3,289 66,757
Cash, cash equivalents and restricted cash at the beginning of the period 246,173 179,416 179,416
Cash, cash equivalents and restricted cash at the end of the period 325,977 182,705 246,173
Cash paid during the period for:      
Income taxes paid (refunded), net (2,405) 2,209 (3,261)
Interest paid 1 3,415 8,686
Non-cash activities:      
Right-of-use assets obtained in exchange for lease liabilities $ 284 $ 783 $ 5,617
v3.21.1
Organization and Basis of Presentation
3 Months Ended
Mar. 31, 2021
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") delivery systems, 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."), Austria, Germany, Israel, Japan, Sweden and Switzerland. The Company currently markets Optune Lua in the U.S. The Company also has a License and Collaboration Agreement (the "Zai Agreement") with Zai Lab (Shanghai) Co., Ltd. ("Zai") to market Optune in Greater China.
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 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, 2020 (the "2020 10-K') filed with the Securities and Exchange Commission on February 25, 2021.
The significant accounting policies applied in the audited annual consolidated financial statements of the Company as disclosed in the 2020 10-K are applied consistently in these unaudited interim consolidated financial statements, except as noted below:
Recently Adopted Accounting Pronouncements.
In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company early adopted ASU 2020-06, effective January 1, 2021 on a modified retrospective basis.
The impact of the Company’s adoption of ASU 2020-06 on the balance sheet as of January 1, 2021 was an increase in long term debt, net of $128,972, a decrease in additional paid-in capital of $132,474, and a decrease in accumulated deficit of $3,502. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. For additional information see Note 5 of these unaudited consolidated financial statements.
In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance. ASU 2019-12 is effective for the Company as of January 1, 2021 and the adoption of this standard did not have a material impact on the Company's consolidated financial statements.
v3.21.1
Cash, Cash Equivalents and Short-Term Investments
3 Months Ended
Mar. 31, 2021
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, such as certificates of deposit and time deposits with maturity periods of three months or less when purchased. As of March 31, 2021 and December 31, 2020, the Company’s cash and cash equivalents were composed of:
March 31,
2021
December 31,
2020
UnauditedAudited
Cash$31,849 $20,339 
Money market funds282,698 214,335 
Total cash and cash equivalents$314,547 $234,674 
The Company also invests in marketable U.S. Treasury Bills (“T-bills”) that are classified as held-to-maturity securities. The amortized cost and recorded basis of the T-bills are presented as short-term investments.
As of March 31, 2021 and December 31, 2020, the Company’s short-term investments were:
March 31,
2021
December 31,
2020
 UnauditedAudited
Short-term investments$549,855 $607,902 
Quoted market prices were applied to determine the fair value of cash equivalents and short-term investments, therefore they were categorized as Level 1 in accordance with Accounting Standards Codification (“ASC”) 820, “Fair Value Measurements and Disclosures.” The estimated fair value of the Company’s short-term investments as of March 31, 2021 and December 31, 2020 was $549,890 and $607,905, respectively.
v3.21.1
Inventories
3 Months Ended
Mar. 31, 2021
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 March 31, 2021 and December 31, 2020, the Company’s inventories were composed of:
March 31,
2021
December 31,
2020
 UnauditedAudited
Raw materials$3,376 $5,175 
Work in progress9,342 4,896 
Finished products15,250 17,351 
Total$27,968 $27,422 
v3.21.1
Commitments and Contingent Liabilities
3 Months Ended
Mar. 31, 2021
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 2030. The Company also leases motor vehicles under various operating leases, which expire on various dates, the latest of which is in 2024.
Pledged deposits and bank guarantees. As of March 31, 2021 and December 31, 2020, the Company pledged bank deposits of $1,409 and $1,438, 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 $1,649 and $1,687, respectively.
Senior secured revolving credit facility. On November 6, 2020, the Company entered into a new 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 2020 10-K. As of March 31, 2021, the Company had no outstanding balance borrowed under the facility.
v3.21.1
Convertible Note
3 Months Ended
Mar. 31, 2021
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 are senior unsecured obligations of the Company. The Notes do not bear regular interest, and the principal amount of the Notes will not accrete. Special interest, if any, payable in accordance with the terms of the Notes will be payable in cash semi-annually in arrears on May 1 and November 1 of each year, beginning on May 1, 2021. The Notes mature on November 1, 2025, unless earlier repurchased, redeemed or converted. For additional information, see Note 10(a) to the Consolidated Financial Statements in the 2020 10-K.
In January 2021, the Company irrevocably elected to settle all conversions of Notes by a combination of cash and the Company's ordinary shares and that the cash portion per $1,000 principal amount of Notes for all conversion settlements shall be $1,000. Accordingly, from and after the date of the election, upon conversion of any Notes, holders of Notes will receive, with respect to each $1,000 principal amount of Notes converted, cash in an amount up to $1,000 and the balance of the conversion value, if any, in ordinary shares (the "Conversion Shares").
The net carrying amount of the liability and equity components of the Notes as of March 31, 2021 and December 31, 2020 are as follows:
March 31,
2021
December 31,
2020
UnauditedAudited
Liability component, net:
Principal amount$575,000 $575,000 
Unamortized discount — (132,797)
Unamortized issuance costs (15,416)(12,298)
Net carrying amount of liability component (1)$559,584 $429,905 
Equity component, net:
Conversion feature$— $136,402 
Issuance costs
— (3,928)
Net carrying amount of equity component$— $132,474 
(1) An effective 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 value of the Net carrying amount of liability component of the Notes as of March 31, 2021 and December 31, 2020 were $477,841 and $450,437, respectively.
Finance expense related to the Notes was as follows:
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Amortization of debt discount
$— $— $3,605 
Amortization of debt issuance costs
709 — 333 
Total finance expense recognized
$709 $— $3,938 
Effective January 1, 2021, the Company early adopted ASU 2020-06 using the modified retrospective approach
v3.21.1
Share Option Plans and ESPP
3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, 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 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 March 31, 2021, 14,450,270 ordinary shares were available for grant under the 2015 Plan.
A summary of the status of the Company’s option plans as of March 31, 2021 and changes during the period then ended is presented below:
Three months ended March 31, 2021
Unaudited
Number
of options
Weighted
average
exercise
price
Outstanding at beginning of year9,220,326 $26.21 
Granted375,689 153.09 
Exercised(404,591)19.36 
Forfeited and canceled(20,911)62.86 
Outstanding as of March 31, 20219,170,513 $31.63 
Exercisable options5,344,848 $18.59 
For the three months ended March 31, 2021, options to purchase 404,591 ordinary shares were exercised, resulting in the issuance of 404,591 ordinary shares.
A summary of the status of the Company’s RSUs and PSUs as of March 31, 2021 and changes during the period then ended is presented below.
Three months ended March 31, 2021
Unaudited
Number
of RSU/PSUs
Weighted
average
grant date fair value
Unvested at beginning of year4,466,151 $54.06 
Granted538,908 139.43 
Vested(448,593)48.38 
Forfeited and cancelled(12,262)75.05 
Unvested as of March 31, 2021 (1)4,544,204 64.69 

(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 March 31, 2021, in accordance with ASC 718 as follows:
 March 31, 2021
Number of
PSUs
Fair value at grant date per PSUTotal fair value at gtant date
2,703,852 $48.16 $130,218 
216,226 69.37 15,000 
35,424 84.68 3,000 
94,813 $114.26 10,833 
3,050,315 $159,050 
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 March 31, 2021, 5,006,367 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: 
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Stock Option Plans
Expected term (years)
5.86-6.00
6.25
5.50-6.00
Expected volatility60 %54 %
54%-56%
Risk-free interest rate
0.85%-0.88%
0.86 %
0.30%-0.86%
Dividend yield0.00 %0.00 %0.00 %
ESPP
Expected term (years)0.500.500.50
Expected volatility55 %47 %
47%-66%
Risk-free interest rate0.09 %1.57 %
0.17%-1.57%
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 months ended March 31, 2021 and 2020 and the year ended December 31, 2020 was:
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Cost of revenues$733 $590 $2,221 
Research, development and clinical trials5,124 3,394 18,125 
Sales and marketing4,471 3,616 17,672 
General and administrative8,535 8,957 37,703 
Total share-based compensation expense$18,863 $16,557 $75,721 
v3.21.1
Basic and Diluted Net Income (Loss) Per Ordinary Share
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Basic and Diluted Net Income (Loss) Per Ordinary Share Basic and diluted net income (loss) per ordinary shareBasic net income (loss) per share is computed based on the weighted average number of ordinary shares outstanding during each period. Diluted net income per share is computed based on the weighted average number of ordinary shares outstanding during the period, plus potential dilutive shares (deriving from options, RSUs, PSUs, convertible notes and the ESPP) considered outstanding during the period, in accordance with ASC 260-10, as determined under the if-converted method. The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share:
 Three months ended March 31,Year ended December 31,
2020
 20212020
UnauditedAudited
Net income (loss) attributable to ordinary shares as reported$(4,128)$3,952 $19,808 
Net income (loss) used in computing basic net income (loss) per share$(4,128)$3,952 $19,808 
Adjustment needed in calculating diluted net income (loss) per share— — — 
Net income (loss) used in computing diluted net income (loss) per share$(4,128)$3,952 $19,808 
Weighted average number of ordinary shares used in computing basic net income (loss) per share102,633,545 99,877,567 100,930,866 
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:
Options— 7,113,992 6,967,554 
Restricted share units— 1,094,385 945,612 
ESPP— 14,679 33,616 
Weighted average number of ordinary shares used in computing diluted net income (loss) per share102,633,545 108,100,623 108,877,648 
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation9,734,269 352,291 1,307,762 
Basic net income (loss) per ordinary share$(0.04)$0.04 $0.20 
Diluted net income (loss) per ordinary share$(0.04)$0.04 $0.18 
v3.21.1
Supplemental Information
3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Supplemental Information SUPPLEMENTAL INFORMATION
The Company operates in a single reportable segment.
The following table presents long-lived assets by location:
March 31,
2021
December 31,
2020
 UnauditedAudited
United States$12,418 $11,868 
Israel4,552 4,370 
Switzerland4,048 2,849 
Japan1,042 1,230 
Germany1,084 1,075 
Others721 1,233 
Total$23,865 $22,625 
The Company’s revenues by geographic region, based on the customer’s location, are summarized as follows:
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
United States$85,908 $69,259 $340,782 
EMEA:
Germany26,364 21,802 93,264 
Other EMEA8,619 2,674 18,654 
Japan8,278 6,451 29,076 
Greater China (1)5,526 1,642 12,590 
Total net revenues$134,695 $101,828 $494,366 

(1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2020 10-K.
v3.21.1
Organization and Basis of Presentation (Policies)
3 Months Ended
Mar. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Recently Adopted Accounting Pronouncements
Recently Adopted Accounting Pronouncements.
In August 2020, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity (ASU 2020-06), which simplifies the accounting for certain financial instruments with characteristics of liabilities and equity, including convertible instruments and contracts in an entity’s own equity. Among other changes, ASU 2020-06 removes from GAAP the liability and equity separation model for convertible instruments with a cash conversion feature, and as a result, after adoption, entities will no longer separately present in equity an embedded conversion feature for such debt. Similarly, the embedded conversion feature will no longer be amortized into income as interest expense over the life of the instrument. Instead, entities will account for a convertible debt instrument wholly as debt unless (1) a convertible instrument contains features that require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, or (2) a convertible debt instrument was issued at a substantial premium. Additionally, ASU 2020-06 requires the application of the if-converted method to calculate the impact of convertible instruments on diluted earnings per share (EPS), which is consistent with the Company’s accounting treatment under the current standard. ASU 2020-06 is effective for fiscal years beginning after December 15, 2021, with early adoption permitted for fiscal years beginning after December 15, 2020, and can be adopted on either a fully retrospective or modified retrospective basis. The Company early adopted ASU 2020-06, effective January 1, 2021 on a modified retrospective basis.
The impact of the Company’s adoption of ASU 2020-06 on the balance sheet as of January 1, 2021 was an increase in long term debt, net of $128,972, a decrease in additional paid-in capital of $132,474, and a decrease in accumulated deficit of $3,502. Interest expense recognized in future periods will be reduced as a result of accounting for the convertible debt instrument as a single liability measured at its amortized cost. For additional information see Note 5 of these unaudited consolidated financial statements.
In December 2019, the FASB issued Accounting Standard Update No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes (ASU 2019-12), which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance. ASU 2019-12 is effective for the Company as of January 1, 2021 and the adoption of this standard did not have a material impact on the Company's consolidated financial statements.
v3.21.1
Cash, Cash Equivalents and Short-Term Investments (Tables)
3 Months Ended
Mar. 31, 2021
Cash, Cash Equivalents, and Short-term Investments [Abstract]  
Summary of Cash and Cash Equivalents As of March 31, 2021 and December 31, 2020, the Company’s cash and cash equivalents were composed of:
March 31,
2021
December 31,
2020
UnauditedAudited
Cash$31,849 $20,339 
Money market funds282,698 214,335 
Total cash and cash equivalents$314,547 $234,674 
Summary of Amortized Cost and Recorded Basis of T-bills in Short-Term Investments
As of March 31, 2021 and December 31, 2020, the Company’s short-term investments were:
March 31,
2021
December 31,
2020
 UnauditedAudited
Short-term investments$549,855 $607,902 
v3.21.1
Inventories (Tables)
3 Months Ended
Mar. 31, 2021
Inventory Disclosure [Abstract]  
Schedule of Inventories As of March 31, 2021 and December 31, 2020, the Company’s inventories were composed of:
March 31,
2021
December 31,
2020
 UnauditedAudited
Raw materials$3,376 $5,175 
Work in progress9,342 4,896 
Finished products15,250 17,351 
Total$27,968 $27,422 
v3.21.1
Convertible Note (Tables)
3 Months Ended
Mar. 31, 2021
Debt Disclosure [Abstract]  
Summary of the Convertible Notes
The net carrying amount of the liability and equity components of the Notes as of March 31, 2021 and December 31, 2020 are as follows:
March 31,
2021
December 31,
2020
UnauditedAudited
Liability component, net:
Principal amount$575,000 $575,000 
Unamortized discount — (132,797)
Unamortized issuance costs (15,416)(12,298)
Net carrying amount of liability component (1)$559,584 $429,905 
Equity component, net:
Conversion feature$— $136,402 
Issuance costs
— (3,928)
Net carrying amount of equity component$— $132,474 
(1) An effective 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 value of the Net carrying amount of liability component of the Notes as of March 31, 2021 and December 31, 2020 were $477,841 and $450,437, respectively.
Finance expense related to the Notes was as follows:
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Amortization of debt discount
$— $— $3,605 
Amortization of debt issuance costs
709 — 333 
Total finance expense recognized
$709 $— $3,938 
v3.21.1
Share Option Plans and ESPP (Tables)
3 Months Ended
Mar. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Abstract]  
Schedule of Stock Option Plans
A summary of the status of the Company’s option plans as of March 31, 2021 and changes during the period then ended is presented below:
Three months ended March 31, 2021
Unaudited
Number
of options
Weighted
average
exercise
price
Outstanding at beginning of year9,220,326 $26.21 
Granted375,689 153.09 
Exercised(404,591)19.36 
Forfeited and canceled(20,911)62.86 
Outstanding as of March 31, 20219,170,513 $31.63 
Exercisable options5,344,848 $18.59 
Schedule of RSUs and PSUs A summary of the status of the Company’s RSUs and PSUs as of March 31, 2021 and changes during the period then ended is presented below.
Three months ended March 31, 2021
Unaudited
Number
of RSU/PSUs
Weighted
average
grant date fair value
Unvested at beginning of year4,466,151 $54.06 
Granted538,908 139.43 
Vested(448,593)48.38 
Forfeited and cancelled(12,262)75.05 
Unvested as of March 31, 2021 (1)4,544,204 64.69 

(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 March 31, 2021, in accordance with ASC 718 as follows:
 March 31, 2021
Number of
PSUs
Fair value at grant date per PSUTotal fair value at gtant date
2,703,852 $48.16 $130,218 
216,226 69.37 15,000 
35,424 84.68 3,000 
94,813 $114.26 10,833 
3,050,315 $159,050 
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: 
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Stock Option Plans
Expected term (years)
5.86-6.00
6.25
5.50-6.00
Expected volatility60 %54 %
54%-56%
Risk-free interest rate
0.85%-0.88%
0.86 %
0.30%-0.86%
Dividend yield0.00 %0.00 %0.00 %
ESPP
Expected term (years)0.500.500.50
Expected volatility55 %47 %
47%-66%
Risk-free interest rate0.09 %1.57 %
0.17%-1.57%
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 months ended March 31, 2021 and 2020 and the year ended December 31, 2020 was:
Three months ended March 31,Year ended December 31,
2020
20212020
UnauditedAudited
Cost of revenues$733 $590 $2,221 
Research, development and clinical trials5,124 3,394 18,125 
Sales and marketing4,471 3,616 17,672 
General and administrative8,535 8,957 37,703 
Total share-based compensation expense$18,863 $16,557 $75,721 
v3.21.1
Basic and Diluted Net Income (Loss) Per Ordinary Share (Tables)
3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of Basic and Diluted Net Loss Per Ordinary Share The following table sets forth the computation of the Company’s basic and diluted net income (loss) per ordinary share:
 Three months ended March 31,Year ended December 31,
2020
 20212020
UnauditedAudited
Net income (loss) attributable to ordinary shares as reported$(4,128)$3,952 $19,808 
Net income (loss) used in computing basic net income (loss) per share$(4,128)$3,952 $19,808 
Adjustment needed in calculating diluted net income (loss) per share— — — 
Net income (loss) used in computing diluted net income (loss) per share$(4,128)$3,952 $19,808 
Weighted average number of ordinary shares used in computing basic net income (loss) per share102,633,545 99,877,567 100,930,866 
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:
Options— 7,113,992 6,967,554 
Restricted share units— 1,094,385 945,612 
ESPP— 14,679 33,616 
Weighted average number of ordinary shares used in computing diluted net income (loss) per share102,633,545 108,100,623 108,877,648 
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation9,734,269 352,291 1,307,762 
Basic net income (loss) per ordinary share$(0.04)$0.04 $0.20 
Diluted net income (loss) per ordinary share$(0.04)$0.04 $0.18 
v3.21.1
Supplemental Information (Tables)
3 Months Ended
Mar. 31, 2021
Segment Reporting [Abstract]  
Schedule of Long-Lived Assets by Location
The following table presents long-lived assets by location:
March 31,
2021
December 31,
2020
 UnauditedAudited
United States$12,418 $11,868 
Israel4,552 4,370 
Switzerland4,048 2,849 
Japan1,042 1,230 
Germany1,084 1,075 
Others721 1,233 
Total$23,865 $22,625 
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 March 31,Year ended December 31,
2020
20212020
UnauditedAudited
United States$85,908 $69,259 $340,782 
EMEA:
Germany26,364 21,802 93,264 
Other EMEA8,619 2,674 18,654 
Japan8,278 6,451 29,076 
Greater China (1)5,526 1,642 12,590 
Total net revenues$134,695 $101,828 $494,366 

(1) For additional information, see Note 12 to the Consolidated Financial Statements in the 2020 10-K.
v3.21.1
Organization and Basis of Presentation (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Dec. 31, 2019
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity $ 372,134 $ 476,526 $ 241,948 $ 217,790
Additional paid-in capital        
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity 1,005,785 1,111,435 892,510 871,442
Retained earnings (accumulated deficit)        
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity $ (631,703) (631,077) $ (646,933) $ (650,885)
Cumulative Effect, Period of Adoption, Adjustment        
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity   (128,972)    
Cumulative Effect, Period of Adoption, Adjustment | Additional paid-in capital        
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity   (132,474)    
Cumulative Effect, Period of Adoption, Adjustment | Retained earnings (accumulated deficit)        
New Accounting Pronouncement, Early Adoption [Line Items]        
Stockholders' equity   $ 3,502    
v3.21.1
Cash, Cash Equivalents and Short-Term Investments - Summary of Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Cash $ 31,849 $ 20,339
Money market funds 282,698 214,335
Total cash and cash equivalents $ 314,547 $ 234,674
v3.21.1
Cash, Cash Equivalents and Short-Term Investments - Summary of Amortized Cost And Recorded Basis of T-bills in Short Term Investments (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Short-term investments $ 549,855 $ 607,902
v3.21.1
Cash, Cash Equivalents and Short-Term Investments - Additional Information (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Cash, Cash Equivalents, and Short-term Investments [Abstract]    
Estimated fair value of short-term investments $ 549,890 $ 607,905
v3.21.1
Inventories (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Inventory Disclosure [Abstract]    
Raw materials $ 3,376 $ 5,175
Work in progress 9,342 4,896
Finished products 15,250 17,351
Total $ 27,968 $ 27,422
v3.21.1
Commitments and Contingent Liabilities (Details) - USD ($)
Nov. 06, 2020
Mar. 31, 2021
Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]      
Pledged bank deposits   $ 1,409,000 $ 1,438,000
Operating lease and other contractual commitments   $ 1,649,000 $ 1,687,000
Revolving Credit Facility      
Line of Credit Facility [Line Items]      
Contractual term 3 years    
Maximum borrowing capacity $ 150,000,000    
v3.21.1
Convertible Note - Additional Information (Details) - Convertible Debt - the “Notes” - USD ($)
1 Months Ended
Jan. 31, 2021
Nov. 05, 2020
Debt Instrument [Line Items]    
Aggregate principal amount   $ 575,000,000
Stated interest rate   0.00%
Cash portion per $1,000 principal amount of Notes converted $ 1,000,000  
v3.21.1
Convertible Note - Liability and Equity Components of the Convertible Notes (Details) - Convertible Debt - the “Notes” - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Debt Instrument [Line Items]    
Principal amount $ 575,000 $ 575,000
Unamortized discount 0 (132,797)
Unamortized issuance costs (15,416) (12,298)
Net carrying amount of liability component 559,584 429,905
Conversion feature 0 136,402
Issuance costs 0 (3,928)
Net carrying amount of equity component 0 132,474
Estimated fair value $ 477,841 $ 450,437
v3.21.1
Convertible Note - Finance Expense Related to the Convertible Notes (Details) - USD ($)
$ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Debt Instrument [Line Items]      
Amortization of debt discount $ 603 $ (539) $ 3,260
the “Notes” | Convertible Debt      
Debt Instrument [Line Items]      
Amortization of debt discount 0 0 3,605
Amortization of debt issuance costs 709 0 333
Total finance expense recognized $ 709 $ 0 $ 3,938
v3.21.1
Share Option Plans and ESPP - Additional Information (Details)
3 Months Ended
Mar. 31, 2021
shares
Share Capital [Line Items]  
Options exercised (in shares) 404,591
ESPP  
Share Capital [Line Items]  
Ordinary shares available for grants (in shares) 5,006,367
Shares issued under plan (in shares) 404,591
2015 Plan  
Share Capital [Line Items]  
Ordinary shares available for grants (in shares) 14,450,270
2015 Plan | Options  
Share Capital [Line Items]  
Stock awards granted, vesting period (years) 4 years
Stock awards granted, expiration period (years) 10 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
v3.21.1
Share Option Plans and ESPP - Schedule of Stock Option Plan (Details)
3 Months Ended
Mar. 31, 2021
$ / shares
shares
Number of options  
Number of options, beginning outstanding (in shares) | shares 9,220,326
Number of options, granted (in shares) | shares 375,689
Number of options, exercised (in shares) | shares (404,591)
Number of options, forfeited and canceled (in shares) | shares (20,911)
Number of options, ending outstanding (in shares) | shares 9,170,513
Number of options, exercisable options (in shares) | shares 5,344,848
Weighted average exercise price  
Weighted average exercise price, beginning outstanding (in usd per share) | $ / shares $ 26.21
Weighted average exercise price, granted (in usd per share) | $ / shares 153.09
Weighted average exercise price, exercised (in usd per share) | $ / shares 19.36
Weighted average exercise price, forfeited and canceled (in usd per share) | $ / shares 62.86
Weighted average exercise price, ending outstanding (in usd per share) | $ / shares 31.63
Weighted average exercise price, exercisable options (in usd per share) | $ / shares $ 18.59
v3.21.1
Share Capital - Schedule of RSUs and PSUs (Details)
$ / shares in Units, $ in Thousands
3 Months Ended
Mar. 31, 2021
USD ($)
$ / shares
shares
RSUs/PSUs  
Number of RSU/PSUs  
Unvested at beginning of year (in shares) 4,466,151
Granted (in shares) 538,908
Vested (in shares) (448,593)
Forfeited and cancelled (in shares) (12,262)
Unvested at ending of year (in shares) 4,544,204
Weighted average grant date fair value  
Unvested at beginning of year (in usd per share) | $ / shares $ 54.06
Granted (in usd per share) | $ / shares 139.43
Vested (in usd per share) | $ / shares 48.38
Forfeited and cancelled (in usd per share) | $ / shares 75.05
Unvested at ending of year (in usd per share) | $ / shares $ 64.69
PSUs  
Weighted average grant date fair value  
Number of PSUs (in shares) 3,050,315
Total fair value at grant date | $ $ 159,050
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) 216,226
Fair value at grant date per PSU (in usd per share) | $ / shares $ 69.37
Total fair value at grant date | $ $ 15,000
PSUs | Award Three  
Weighted average grant date fair value  
Number of PSUs (in shares) 35,424
Fair value at grant date per PSU (in usd per share) | $ / shares $ 84.68
Total fair value at grant date | $ $ 3,000
PSUs | Award Four  
Weighted average grant date fair value  
Number of PSUs (in shares) 94,813
Fair value at grant date per PSU (in usd per share) | $ / shares $ 114.26
Total fair value at grant date | $ $ 10,833
v3.21.1
Share Option Plans and ESPP - Schedule of Fair Value Assumptions Used Only for Equity Based Awards Estimated Using Black-Scholes Option Pricing Model (Details)
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
ESPP      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 6 months 6 months 6 months
Expected volatility 55.00% 47.00%  
Expected volatility, minimum     47.00%
Expected volatility, maximum     66.00%
Risk-free interest rate 0.09% 1.57%  
Risk-free interest rate, minimum     0.17%
Risk-free interest rate, maximum     1.57%
Dividend yield 0.00% 0.00% 0.00%
Stock Option Plans      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years)   6 years 3 months  
Expected volatility 60.00% 54.00%  
Expected volatility, minimum     54.00%
Expected volatility, maximum     56.00%
Risk-free interest rate   0.86%  
Risk-free interest rate, minimum 0.85%   0.30%
Risk-free interest rate, maximum 0.88%   0.86%
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 10 months 9 days   5 years 6 months
Stock Option Plans | Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected term (years) 6 years   6 years
v3.21.1
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 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 18,863 $ 16,557 $ 75,721
Cost of revenues      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 733 590 2,221
Research, development and clinical trials      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 5,124 3,394 18,125
Sales and marketing      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense 4,471 3,616 17,672
General and administrative      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Total share-based compensation expense $ 8,535 $ 8,957 $ 37,703
v3.21.1
Basic and Diluted Net Income (Loss) Per Ordinary Share (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 12 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items]      
Net income (loss) $ (4,128) $ 3,952 $ 19,808
Net income (loss) used in computing basic net income (loss) per share (4,128) 3,952 19,808
Adjustment needed in calculating diluted net income (loss) per share 0 0 0
Net income (loss) used in computing diluted net income (loss) per share $ (4,128) $ 3,952 $ 19,808
Weighted average number of ordinary shares used in computing basic net income (loss) per share (in shares) 102,633,545 99,877,567 100,930,866
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:      
Weighted average number of ordinary shares used in computing diluted net income (loss) per share (in shares) 102,633,545 108,100,623 108,877,648
Weighted anti-dilutive shares outstanding which were not included in the diluted calculation (in shares) 9,734,269 352,291 1,307,762
Basic net income (loss) per ordinary share (in usd per share) $ (0.04) $ 0.04 $ 0.20
Diluted net income (loss) per ordinary share (in usd per share) $ (0.04) $ 0.04 $ 0.18
Options      
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:      
Share-based payment arrangements (in shares) 0 7,113,992 6,967,554
Restricted share units      
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:      
Share-based payment arrangements (in shares) 0 1,094,385 945,612
ESPP      
Potentially dilutive shares that were excluded from the computation of basic net income (loss) per share:      
Share-based payment arrangements (in shares) 0 14,679 33,616