JFROG LTD, 10-K filed on 2/15/2024
Annual Report
v3.24.0.1
Document and Entity Information - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 09, 2024
Jun. 30, 2023
Cover [Abstract]      
Document Type 10-K    
Amendment Flag false    
Document Period End Date Dec. 31, 2023    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Document Annual Report true    
Entity Registrant Name JFrog Ltd.    
Entity Central Index Key 0001800667    
Entity Voluntary Filers No    
ICFR Auditor Attestation Flag true    
Entity Public Float     $ 2.1
Entity File Number 001-39492    
Entity Tax Identification Number 98-0680649    
Document Transition Report false    
Entity Incorporation, State or Country Code L3    
Current Fiscal Year End Date --12-31    
Entity Filer Category Large Accelerated Filer    
Entity Well-known Seasoned Issuer Yes    
Entity Interactive Data Current Yes    
Entity Current Reporting Status Yes    
Entity Address, Address Line One 270 E. Caribbean Drive    
Entity Address, City or Town Sunnyvale    
Entity Address, State or Province CA    
Entity Address, Postal Zip Code 94089    
City Area Code 408    
Local Phone Number 329-1540    
Document Financial Statement Error Correction [Flag] false    
Entity Shell Company false    
Entity Small Business false    
Entity Emerging Growth Company false    
Title of 12(b) Security Ordinary Shares, NIS 0.01 par value    
Trading Symbol FROG    
Security Exchange Name NASDAQ    
Entity Common Stock, Shares Outstanding   106,306,273  
Documents Incorporated by Reference [Text Block]

Portions of the registrant's definitive proxy statement relating to the 2023 annual general meeting of shareholders (the “Proxy Statement”) are incorporated herein by reference in Part III of this Annual Report on Form 10-K to the extent stated herein. Such Proxy Statement will be filed with the Securities and Exchange Commission within 120 days of the registrant's fiscal year ended December 31, 2023.

    
Auditor Name KOST FORER GABBAY & KASIERER    
Auditor Location Tel-Aviv, Israel    
Auditor Firm ID 1281    
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 84,765 $ 45,595
Short-term investments 460,245 397,605
Accounts receivable, net 76,437 62,117
Deferred contract acquisition costs 11,378 8,102
Prepaid expenses and other current assets 12,976 18,603
Total current assets 645,801 532,022
Property and equipment, net 6,663 8,021
Deferred contract acquisition costs, noncurrent 18,032 13,501
Operating lease right-of-use assets 22,427 24,602
Intangible assets, net 25,768 37,544
Goodwill 247,955 247,955
Other assets, noncurrent 5,910 7,576
Total assets 972,556 871,221
Current liabilities:    
Accounts payable 16,970 14,867
Accrued expenses and other current liabilities 35,815 28,848
Operating lease liabilities 8,272 7,132
Deferred revenue 201,118 158,725
Total current liabilities 262,175 209,572
Deferred revenue, noncurrent 12,987 16,990
Operating lease liabilities, noncurrent 13,954 16,829
Other liabilities, noncurrent 4,317 3,057
Total liabilities 293,433 246,448
Commitments and contingencies (Note 11)
Shareholders' equity:    
Preferred shares, NIS 0.01 par value per share; 50,000,000 shares authorized; 0 issued and outstanding as of December 31, 2023 and December 31, 2022 0 0
Ordinary shares, NIS 0.01 par value per share, 500,000,000 shares authorized; and 106,114,892 and 100,907,857 shares issued and outstanding as of December 31, 2023 and December 31, 2022, respectively 297 283
Additional paid-in capital 968,245 856,438
Accumulated other comprehensive income (loss) 1,013 (2,772)
Accumulated deficit (290,432) (229,176)
Total shareholders' equity 679,123 624,773
Total liabilities and shareholders' equity $ 972,556 $ 871,221
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - ₪ / shares
Dec. 31, 2023
Dec. 31, 2022
Preferred stock par value ₪ 0.01 ₪ 0.01
Preferred stock authorized 50,000,000 50,000,000
Preferred stock issued 0 0
Preferred stock Outstanding 0 0
Common stock par value ₪ 0.01 ₪ 0.01
Common stock Authorized 500,000,000 500,000,000
Common stock issued 106,114,892 100,907,857
Common stock Outstanding 106,114,892 100,907,857
v3.24.0.1
Consolidated Statements of Operations - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue:      
Total subscription revenue $ 349,886 $ 280,040 $ 206,683
Cost of revenue:      
Total cost of revenue—subscription 77,043 62,287 41,823
Gross profit 272,843 217,753 164,860
Operating expenses:      
Research and development 134,584 121,225 79,604
Sales and marketing 150,675 130,812 96,962
General and administrative 63,132 55,556 56,663
Total operating expenses 348,391 307,593 233,229
Operating loss (75,548) (89,840) (68,369)
Interest and other income, net 21,032 5,094 744
Loss before income taxes (54,516) (84,746) (67,625)
Income tax expense (benefit) 6,740 5,438 (3,422)
Net loss $ (61,256) $ (90,184) $ (64,203)
Net loss per share, basic $ (0.59) $ (0.91) $ (0.68)
Net loss per share, diluted $ (0.59) $ (0.91) $ (0.68)
Weighted-average shares used in computing net loss per share, basic 103,317,759 99,243,894 94,783,082
Weighted-average shares used in computing net loss per share, diluted 103,317,759 99,243,894 94,783,082
Subscription—self-managed and SaaS      
Revenue:      
Total subscription revenue $ 330,193 $ 261,452 $ 190,046
Cost of revenue:      
Total cost of revenue—subscription 76,244 61,407 41,023
License—self-managed      
Revenue:      
Total subscription revenue 19,693 18,588 16,637
Cost of revenue:      
Total cost of revenue—subscription $ 799 $ 880 $ 800
v3.24.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net Income (Loss) $ (61,256) $ (90,184) $ (64,203)
Other comprehensive income, net of tax:      
Net change in unrealized gains (losses) on available-for-sale marketable securities, net of tax 1,570 (1,430) (195)
Net change in unrealized gains (losses) on derivative instruments, net of tax 2,215 (1,953) 434
Other comprehensive income (loss), net of tax 3,785 (3,383) 239
Comprehensive loss $ (57,471) $ (93,567) $ (63,964)
v3.24.0.1
Consolidated Statements of Shareholders' Equity - USD ($)
$ in Thousands
Total
Ordinary Shares
Additional Paid-in Capital
Accumulated Other Comprehensive Income (loss)
Accumulated Deficit
Balance (in shares) at Dec. 31, 2020   92,112,447      
Balance at Dec. 31, 2020 $ 553,894 $ 257 $ 628,054 $ 372 $ (74,789)
Issuance of ordinary shares upon exercise of share options (in shares)   2,538,063      
Issuance of ordinary shares upon exercise of share options 6,837 $ 7 6,830    
Issuance of ordinary shares upon release of restricted share units (in shares)   643,980      
Issuance of ordinary shares upon release of restricted share units   $ 2 (2)    
Issuance of ordinary shares under the employee share purchase plan (shares)   94,638      
Issuance of ordinary shares under the employee share purchase plan 3,092   3,092    
Issuance of ordinary shares related to business combination (in shares)   1,922,912      
Issuance of ordinary shares related to business combination 81,773 $ 6 81,767    
Share-based compensation expense 56,949   56,949    
Other comprehensive income (loss), net of tax 239     239  
Net Income (Loss) (64,203)       (64,203)
Balance (in shares) at Dec. 31, 2021   97,312,040      
Balance at Dec. 31, 2021 638,581 $ 272 776,690 611 (138,992)
Issuance of ordinary shares upon exercise of share options (in shares)   2,142,019      
Issuance of ordinary shares upon exercise of share options 5,922 $ 6 5,916    
Issuance of ordinary shares upon release of restricted share units (in shares)   1,088,655      
Issuance of ordinary shares upon release of restricted share units   $ 4 (4)    
Issuance of ordinary shares under the employee share purchase plan (shares)   261,494      
Issuance of ordinary shares under the employee share purchase plan 5,176 $ 1 5,175    
Issuance of ordinary shares related to business combination (in shares)   103,649      
Share-based compensation expense 68,661   68,661    
Other comprehensive income (loss), net of tax (3,383)     (3,383)  
Net Income (Loss) (90,184)       (90,184)
Balance (in shares) at Dec. 31, 2022   100,907,857      
Balance at Dec. 31, 2022 $ 624,773 $ 283 856,438 (2,772) (229,176)
Issuance of ordinary shares upon exercise of share options (in shares) 1,899,722 1,899,722      
Issuance of ordinary shares upon exercise of share options $ 9,985 $ 5 9,980    
Issuance of ordinary shares upon release of restricted share units (in shares)   2,882,729      
Issuance of ordinary shares upon release of restricted share units   $ 8 (8)    
Issuance of ordinary shares under the employee share purchase plan (shares)   369,118      
Issuance of ordinary shares under the employee share purchase plan 6,665 $ 1 6,664    
Issuance of ordinary shares related to business combination (in shares)   55,466      
Share-based compensation expense 95,171   95,171    
Other comprehensive income (loss), net of tax 3,785     3,785  
Net Income (Loss) (61,256)       (61,256)
Balance (in shares) at Dec. 31, 2023   106,114,892      
Balance at Dec. 31, 2023 $ 679,123 $ 297 $ 968,245 $ 1,013 $ (290,432)
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities:      
Net Income (Loss) $ (61,256) $ (90,184) $ (64,203)
Adjustments to reconcile net loss to net cash provided by operating activities:      
Depreciation and amortization 15,303 14,655 8,746
Share-based compensation expense 95,171 68,661 56,949
Non-cash operating lease expense 8,457 7,357 6,108
Net amortization of premium or discount on investments (6,405) 2,354 5,522
Losses (gains) on foreign exchange (421) 1,799 0
Changes in operating assets and liabilities, net of business combinations:      
Accounts receivable (14,109) (11,186) (12,810)
Prepaid expenses and other assets 2,162 9,286 (17,715)
Deferred contract acquisition costs (7,807) (7,212) (6,195)
Accounts payable 1,705 4,102 504
Accrued expenses and other liabilities 10,681 2,242 13,089
Operating lease liabilities (7,716) (9,058) (5,051)
Deferred revenue 38,390 28,609 42,958
Net cash provided by operating activities 74,155 21,425 27,902
Cash flows from investing activities:      
Purchases of short-term investments (392,406) (411,242) (266,319)
Maturities and sales of short-term investments 340,912 362,711 341,354
Purchases of property and equipment (1,982) (4,328) (4,228)
Payments for business combinations, net of cash acquired 0 (179) (195,752)
Purchases of intangible asset 0 (300) (600)
Net cash used in investing activities (53,476) (53,338) (125,545)
Cash flows from financing activities:      
Proceeds from exercise of share options 9,985 5,922 6,837
Proceeds from employee share purchase plan 6,665 5,176 3,092
Proceeds from employee equity transactions, net of payments to tax authorities 1,721 (71) (8,485)
Net cash provided by financing activities 18,371 11,027 1,444
Effect of exchange rate changes on cash, cash equivalents and restricted cash 120 (2,047) 0
Net increase (decrease) in cash, cash equivalents, and restricted cash 39,170 (22,933) (96,199)
Cash, cash equivalents, and restricted cash—beginning of period 45,607 68,540 164,739
Cash, cash equivalents, and restricted cash—end of period 84,777 45,607 68,540
Supplemental Disclosures of Cash Flow Information      
Income tax payments (refunds) 4,998 (1,709) 153
Supplemental disclosures of noncash investing and financing activities:      
Purchases of property and equipment during the period included in accounts payable $ 187 $ 91 $ 509
v3.24.0.1
Consolidated Statements of Cash Flows (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:      
Cash and cash equivalents $ 84,765 $ 45,595 $ 68,284
Restricted cash included in prepaid expenses and other current assets 12 12 13
Restricted cash included in other assets, noncurrent 0 0 243
Total cash, cash equivalents, and restricted cash $ 84,777 $ 45,607 $ 68,540
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net Income (Loss) $ (61,256) $ (90,184) $ (64,203)
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended
Dec. 31, 2023
shares
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement

Securities Trading Plans of Directors and Executive Officers

During the three months ended December 31, 2023, the following director, as defined in Rule 16a-1(f) of the Exchange Act, adopted a “Rule 10b5-1 trading arrangement” as defined in Item 408 of Regulation S-K, as follows:

On November 7, 2023, Ms. Elisa Steele, a member of our board of directors, adopted a Rule 10b5-1 trading arrangement providing for the sale from time to time of an aggregate of up to 1,957 ordinary shares. The trading arrangement is intended to satisfy the affirmative defense in Rule 10b5-1(c). The duration of the trading arrangement is until November 7, 2024, or earlier if all transactions under the trading arrangement are completed.

No other officers or directors, as defined in Rule 16a-1(f), adopted or terminated a “Rule 10b5-1 trading arrangement” or a “non-Rule 10b5-1 trading arrangement,” as defined in Item 408 of Regulation S-K, during the three months ended December 31, 2023.
Ms. Elisa Steele [Member]  
Trading Arrangements, by Individual  
Name Ms. Elisa Steele
Title a member of our board of directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date November 7, 2023
Termination Date November 7, 2024
Arrangement Duration 366 days
Aggregate Available 1,957
Other Officers or Directors [Member]  
Trading Arrangements, by Individual  
Name No
Rule 10b5-1 Arrangement Adopted false
Non-Rule 10b5-1 Arrangement Adopted false
Rule 10b5-1 Arrangement Terminated false
Non-Rule 10b5-1 Arrangement Terminated false
v3.24.0.1
Organization and Description of Business
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization and Description of Business

1. Organization and Description of Business

JFrog Ltd. (together with its subsidiaries, “JFrog”, or the “Company”) was incorporated under the laws of the State of Israel in 2008. JFrog provides an end-to-end, hybrid, universal Software Supply Chain Platform that enables organizations to continuously and securely create and deliver software updates across any system. This platform is the critical bridge between software development and deployment of that software, paving the way for modern software supply chain management and software release processes. The Company enables organizations to build and release software faster and more securely while empowering developers, security teams and Machine Learning Operations teams to be more efficient. The Company’s solutions are designed to run on-premise, in public or private clouds, or in hybrid environments.
v3.24.0.1
Summary of Significant Accounting Policies
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated benefit period of deferred contract acquisition costs, the allowance for credit losses, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

Foreign Currency

The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Gains or losses from foreign currency re-measurement and settlements are included in interest and other income, net in the Consolidated Statement of Operations.

Concentration of Risks

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, and regularly monitors their composition and maturities. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business.

As of December 31, 2023 and 2022, no single customer represented 10% or more of accounts receivable. No single customer accounted for more than 10% of total revenue for the periods presented.

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s credit cards and operating leases.

Short-Term Investments

Short-term investments consist of bank deposits and marketable securities. Bank deposits are time deposits with an original maturity of more than three months but less than one year from the date of investment. Bank deposits are presented at cost with accrued interest.

Marketable securities consist of fixed-income debt securities with maturity of greater than three months at the date of purchase. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. Gains and losses are determined using the specific identification method and recognized when realized in the Consolidated Statements of Operations.

The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in interest and other income, net in the Consolidated Statements of Operations. If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors.

Fair Value Measurements

Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, marketable securities, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Bank deposits, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date.

Accounts Receivable, Net

Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented.

Derivative Financial Instruments

The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes.

The Company recognizes its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. The cash flows from the derivative instruments are recorded in operating activities in the Consolidated Statements of Cash Flows.

Contract Balances

Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented.

Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date.

Cost to Obtain a Contract

The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel and commissions paid to channel partners that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and channel partner programs and if the commissions are incremental and would not have occurred absent the customer contract.

Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values, and thus are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of four years, determined by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included primarily in sales and marketing expense in the Consolidated Statements of Operations.

The Company expenses costs to obtain a contract with a customer as incurred when the amortization period would have been one year or less.

The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.

Property and Equipment, Net

Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Expenditures for maintenance and repairs are expensed as incurred.

The estimated useful lives of the Company’s property and equipment are as follows:

Computer and software

 

3 years

Furniture and office equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of remaining lease term or estimated useful life

 

Capitalized Software Costs

Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented because the general release process for most of the Company’s products is essentially completed concurrently with the establishment of technological feasibility.

Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented.

Leases

The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term.

The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term.

Business and Asset Acquisitions

When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations.

The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired.

Goodwill and Intangible Assets

Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented.

Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.

The estimated useful lives of the Company’s intangible assets are as follows:

Developed technology

 

3 - 6 years

Customer relationships

 

3 - 6 years

Other intangible assets

 

3 years

 

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented.

Revenue Recognition

The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. Self-managed subscriptions and SaaS subscriptions are both offered on an annual and multi-year basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the beginning of the contract term or in annual installments. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically

invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears.

Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps:

1. Identification of the contract, or contracts, with the customer

The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation.

2. Identification of the performance obligations in the contract

Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract.

For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period.

For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation.

3. Determination of the transaction price

The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts.

4. Allocation of the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately.

5. Recognition of the revenue when, or as, a performance obligation is satisfied

Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS.

Cost of Revenue

Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount.

Research and Development

Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred.

Advertising Costs

Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amounted to $10.6 million, $8.6 million, and $5.8 million for the years ended December 31, 2023, 2022, and 2021, respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations.

Share-Based Compensation

Share-based compensation related to share options and share purchase rights granted under the Company’s employee share purchase plan is measured at the grant date based on the fair value of awards, using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The Company measures the grant date fair value of its restricted share units (“RSU”) based on the closing market price of the ordinary share on the date of grant. For share-based awards with only service-based vesting conditions, the compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based RSUs with market conditions, the Company uses Monte Carlo simulation model to determine the fair value and recognizes expense using the accelerated attribution method over the requisite service period. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited.

Loss Contingency

The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred.

Interest and Other Income, Net

Interest and other income, net primarily consists of income earned on cash equivalents and short-term investments and foreign exchange gains and losses. Interest income was $22.1 million, $5.9 million, and $1.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. Foreign exchange gains (losses) were not material for all periods presented.

Income Taxes

The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made.

Net Loss Per Share

The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period, including share options and restricted share units.

Segment Information

The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level.

Revenue by geographical region can be found in Note 3, Revenue Recognition. The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

United States

 

$

8,566

 

 

$

11,569

 

Israel

 

 

15,888

 

 

 

17,887

 

India

 

 

4,054

 

 

 

2,246

 

Rest of world

 

 

582

 

 

 

931

 

Total long-lived assets

 

$

29,090

 

 

$

32,633

 

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standard Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. In addition, it provides new segment disclosure requirements for entities with a single reportable segment. The guidance will be effective for the Company for annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact on its financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disaggregated information about the effective tax rate reconciliation as well as information on income taxes paid.

The guidance will be effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact on its financial statement disclosures.
v3.24.0.1
Revenue Recognition
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Revenue Recognition

3. Revenue Recognition

Disaggregation of Revenue

The following table presents revenue by category:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

 

(in thousands, except percentages)

 

Self-managed subscription

 

$

230,560

 

 

 

66

%

 

$

200,390

 

 

 

72

%

 

$

157,035

 

 

 

76

%

Subscription

 

 

210,867

 

 

 

60

 

 

 

181,802

 

 

 

65

 

 

 

140,398

 

 

 

68

 

License

 

 

19,693

 

 

 

6

 

 

 

18,588

 

 

 

7

 

 

 

16,637

 

 

 

8

 

SaaS

 

 

119,326

 

 

 

34

 

 

 

79,650

 

 

 

28

 

 

 

49,648

 

 

 

24

 

Total subscription revenue

 

$

349,886

 

 

 

100

%

 

$

280,040

 

 

 

100

%

 

$

206,683

 

 

 

100

%

 

The following table summarizes revenue by region based on the shipping address of customers:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
 of Revenue

 

 

 

(in thousands, except percentages)

 

United States

 

$

215,605

 

 

 

62

%

 

$

176,334

 

 

 

63

%

 

$

129,503

 

 

 

63

%

Israel

 

 

9,332

 

 

 

3

 

 

 

6,893

 

 

 

2

 

 

 

4,543

 

 

 

2

 

Rest of world

 

 

124,949

 

 

 

35

 

 

 

96,813

 

 

 

35

 

 

 

72,637

 

 

 

35

 

Total subscription revenue

 

$

349,886

 

 

 

100

%

 

$

280,040

 

 

 

100

%

 

$

206,683

 

 

 

100

%

 

Contract Balances

Of the $175.7 million, $147.1 million and $102.8 million of deferred revenue recorded as of December 31, 2022, 2021 and 2020, respectively, the Company recognized $158.3 million, $129.1 million and $83.8 million as revenue during the years ended December 31, 2023, 2022, and 2021, respectively.

Remaining Performance Obligation

The Company’s remaining performance obligations are comprised of product and service revenue not yet delivered. As of December 31, 2023, the aggregate amount of the transaction price allocated to remaining performance obligations was $259.8 million, which consists of billed considerations of $214.1 million and unbilled considerations of $45.7 million, that the Company expects to recognize as revenue. As of December 31, 2023, the Company expects to recognize 84% of its remaining performance obligations as revenue over the next 12 months, and the remainder thereafter.

Cost to Obtain a Contract

Amortization of deferred contract acquisition costs was $10.2 million, $7.2 million, and $4.6 million for the years ended December 31, 2023, 2022, and 2021, respectively.
v3.24.0.1
Short-Term Investments
 12 Months Ended
Dec. 31, 2023
Investments, All Other Investments [Abstract]  
Short-Term Investments

4. Short-Term Investments

Short-term investments consist of bank deposits and marketable securities. As of December 31, 2023 and 2022, bank deposits were $81.1 million and $96.0 million, respectively.

Marketable securities consisted of the following:

 

 

December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,455

 

 

$

—

 

 

$

(21

)

 

$

2,434

 

Commercial paper

 

 

8,927

 

 

 

—

 

 

 

(6

)

 

 

8,921

 

Corporate debt securities

 

 

162,515

 

 

 

234

 

 

 

(302

)

 

 

162,447

 

Municipal securities

 

 

22,263

 

 

 

9

 

 

 

(36

)

 

 

22,236

 

Government and agency debt

 

 

183,093

 

 

 

252

 

 

 

(250

)

 

 

183,095

 

Total marketable securities

 

$

379,253

 

 

$

495

 

 

$

(615

)

 

$

379,133

 

 

 

 

December 31, 2022

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,204

 

 

$

—

 

 

$

(51

)

 

$

2,153

 

Commercial paper

 

 

38,164

 

 

 

2

 

 

 

(137

)

 

 

38,029

 

Corporate debt securities

 

 

137,191

 

 

 

41

 

 

 

(859

)

 

 

136,373

 

Municipal securities

 

 

38,543

 

 

 

23

 

 

 

(222

)

 

 

38,344

 

Government and agency debt

 

 

87,149

 

 

 

7

 

 

 

(484

)

 

 

86,672

 

Total marketable securities

 

$

303,251

 

 

$

73

 

 

$

(1,753

)

 

$

301,571

 

 

The following table summarizes the Company’s marketable securities by contractual maturities:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Due in 1 year or less

 

$

273,273

 

Due in 1 year through 2 years

 

 

105,860

 

Total

 

$

379,133

 

The following table presents fair value and gross unrealized losses of the Company’s marketable securities that have been in a continuous loss position, aggregated by length of time:

 

 

December 31, 2023

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

 

(in thousands)

 

Certificates of deposit

 

$

250

 

 

$

—

 

 

$

2,175

 

 

$

(21

)

 

$

2,425

 

 

$

(21

)

Commercial paper

 

 

8,921

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

8,921

 

 

 

(6

)

Corporate debt securities

 

 

77,023

 

 

 

(177

)

 

 

25,156

 

 

 

(125

)

 

 

102,179

 

 

 

(302

)

Municipal securities

 

 

7,071

 

 

 

(6

)

 

 

4,215

 

 

 

(30

)

 

 

11,286

 

 

 

(36

)

Government and agency debt

 

 

99,236

 

 

 

(181

)

 

 

8,972

 

 

 

(69

)

 

 

108,208

 

 

 

(250

)

Total

 

$

192,501

 

 

$

(370

)

 

$

40,518

 

 

$

(245

)

 

$

233,019

 

 

$

(615

)

 

 

 

December 31, 2022

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,153

 

 

$

(51

)

 

$

—

 

 

$

—

 

 

$

2,153

 

 

$

(51

)

Commercial paper

 

 

31,838

 

 

 

(137

)

 

 

—

 

 

 

—

 

 

$

31,838

 

 

$

(137

)

Corporate debt securities

 

 

123,540

 

 

 

(859

)

 

 

—

 

 

 

—

 

 

$

123,540

 

 

$

(859

)

Municipal securities

 

 

25,336

 

 

 

(222

)

 

 

—

 

 

 

—

 

 

$

25,336

 

 

$

(222

)

Government and agency debt

 

 

71,781

 

 

 

(484

)

 

 

—

 

 

 

—

 

 

$

71,781

 

 

$

(484

)

Total

 

$

254,648

 

 

$

(1,753

)

 

$

—

 

 

$

—

 

 

$

254,648

 

 

$

(1,753

)

As of December 31, 2023 and 2022, the unrealized losses related to marketable securities were determined to be not due to credit related losses. Therefore, the Company did not recognize an allowance for credit losses. See Note 13, Accumulated Other Comprehensive Income (Loss), for the realized gains or losses from available-for-sale marketable securities that were reclassified out of AOCI during the periods presented.
v3.24.0.1
Fair Value Measurements
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Fair Value Measurements

5. Fair Value Measurements

The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:

 

 

December 31, 2023

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

40,646

 

 

$

40,646

 

 

$

—

 

Government and agency debt

 

 

5,498

 

 

 

—

 

 

$

5,498

 

Cash equivalents

 

 

46,144

 

 

 

40,646

 

 

 

5,498

 

Certificates of deposit

 

 

2,434

 

 

 

—

 

 

 

2,434

 

Commercial paper

 

 

8,921

 

 

 

—

 

 

 

8,921

 

Corporate debt securities

 

 

162,447

 

 

 

—

 

 

 

162,447

 

Municipal securities

 

 

22,236

 

 

 

—

 

 

 

22,236

 

Government and agency debt

 

 

183,095

 

 

 

—

 

 

 

183,095

 

Marketable securities

 

 

379,133

 

 

 

—

 

 

 

379,133

 

Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets

 

 

1,189

 

 

 

—

 

 

 

1,189

 

Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets

 

 

235

 

 

 

—

 

 

 

235

 

Restricted bank deposits included in prepaid expenses and other current assets

 

 

12

 

 

 

—

 

 

 

12

 

Total financial assets

 

$

426,713

 

 

$

40,646

 

 

$

386,067

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities

 

$

52

 

 

$

—

 

 

$

52

 

Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities

 

 

5

 

 

 

—

 

 

 

5

 

Total financial liabilities

 

$

57

 

 

$

—

 

 

$

57

 

 

 

 

December 31, 2022

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

9,562

 

 

$

9,562

 

 

$

—

 

Cash equivalents

 

 

9,562

 

 

 

9,562

 

 

 

—

 

Certificates of deposit

 

 

2,153

 

 

 

—

 

 

 

2,153

 

Commercial paper

 

 

38,029

 

 

 

—

 

 

 

38,029

 

Corporate debt securities

 

 

136,373

 

 

 

—

 

 

 

136,373

 

Municipal securities

 

 

38,344

 

 

 

—

 

 

 

38,344

 

Government and agency debt

 

 

86,672

 

 

 

—

 

 

 

86,672

 

Marketable securities

 

 

301,571

 

 

 

—

 

 

 

301,571

 

Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets

 

 

20

 

 

 

—

 

 

 

20

 

Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets

 

 

21

 

 

 

—

 

 

 

21

 

Restricted bank deposits included in prepaid expenses and other current assets

 

 

12

 

 

 

—

 

 

 

12

 

Total financial assets

 

$

311,186

 

 

$

9,562

 

 

$

301,624

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities

 

$

1,098

 

 

$

—

 

 

$

1,098

 

Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities

 

 

379

 

 

 

—

 

 

 

379

 

Total financial liabilities

 

$

1,477

 

 

$

—

 

 

$

1,477

 

 

As of December 31, 2023 and 2022, the Company did not have any assets or liabilities valued based on Level 3 valuations.
v3.24.0.1
Derivative Financial Instruments and Hedging
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Derivative Financial Instruments and Hedging

6. Derivative Financial Instruments and Hedging

Notional Amount of Foreign Currency Contracts

The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Derivatives Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

$

46,331

 

 

$

42,854

 

Derivatives Not Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

 

18,903

 

 

 

17,555

 

Total derivative instruments

 

$

65,234

 

 

$

60,409

 

 

 

Effect of Foreign Currency Contracts on the Consolidated Statements of Operations

The gains (losses) on foreign currency contracts were presented on the Consolidated Statements of Operations as follows:

 

 

Derivatives Designated as Hedging Instruments

 

 

Derivatives Not Designated as Hedging Instruments

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Statement of Operations Location:

 

(in thousands)

 

Cost of revenue: subscription–self-managed and SaaS

 

$

(359

)

 

$

(314

)

 

$

74

 

 

$

—

 

 

$

—

 

 

$

—

 

Research and development

 

 

(2,982

)

 

 

(2,660

)

 

 

504

 

 

 

—

 

 

 

—

 

 

 

—

 

Sales and marketing

 

 

(693

)

 

 

(540

)

 

 

120

 

 

 

—

 

 

 

—

 

 

 

—

 

General and administrative

 

 

(798

)

 

 

(650

)

 

 

166

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest and other income, net

 

 

—

 

 

 

8

 

 

 

8

 

 

 

(593

)

 

 

(527

)

 

 

345

 

Total gains (losses) recognized in earnings

 

$

(4,832

)

 

$

(4,156

)

 

$

872

 

 

$

(593

)

 

$

(527

)

 

$

345

 

 

Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income

Net unrealized gains (losses) of foreign currency contracts designated as hedging instruments, net of tax, are recorded in AOCI. See Note 13, Accumulated Other Comprehensive Income (Loss), for the effect on other comprehensive income (loss) and the reclassification out of AOCI during the periods presented. All of net deferred losses in AOCI as of December 31, 2023 are expected to be recognized as operating expenses in the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates over the next twelve months.

v3.24.0.1
Consolidated Balance Sheet Components
 12 Months Ended
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]  
Consolidated Balance Sheet Components

7. Consolidated Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consisted of the following:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Computer and software

 

$

9,030

 

 

$

8,330

 

Furniture and office equipment

 

 

3,135

 

 

 

2,802

 

Leasehold improvements

 

 

6,069

 

 

 

5,748

 

Property and equipment, gross

 

 

18,234

 

 

 

16,880

 

Less: accumulated depreciation and amortization

 

 

(11,571

)

 

 

(8,859

)

Property and equipment, net

 

$

6,663

 

 

$

8,021

 

 

Depreciation and amortization expense were $3.5 million, $3.1 million, and $2.8 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Accrued compensation and benefits

 

$

25,166

 

 

$

20,892

 

Accrued expenses

 

 

10,649

 

 

 

7,956

 

Accrued expenses and other current liabilities

 

$

35,815

 

 

$

28,848

 
v3.24.0.1
Business Combinations
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Business Combinations

8. Business Combinations

Vdoo Connected Trust Ltd.

On July 19, 2021, the Company acquired 100% of the share capital of Vdoo Connected Trust Ltd. (“Vdoo”), a privately-held company in Israel, which provides a product security platform for automating all software security tasks throughout the entire product lifecycle. The acquisition accelerates the Company’s security technology expansion, aiming to deliver a holistic security solution as part of its Platform.

The total purchase consideration transferred for the Vdoo acquisition was $299.5 million, comprised of $217.7 million in cash and $81.8 million for the fair value of 1,823,266 shares of the Company’s ordinary shares issued. In addition to the purchase consideration and pursuant to holdback agreements with certain Vdoo employees, the Company transferred $13.2 million in cash and committed to issue 110,932 shares of the Company’s ordinary shares, which were released to these employees one to two years from the acquisition date, subject to their continued service. The Company also agreed to pay up to a $10.0 million retention bonus to Vdoo continuing employees in three annual installments following the acquisition date. The payouts or vesting of the holdback and the retention considerations are subject to continued employment, and therefore recognized as compensation expense over the requisite service period. In addition, pursuant to the purchase agreement, on July 19, 2021, the Company issued approximately $30.0 million of RSUs to Vdoo employees in accordance with the terms of the Company’s equity incentive plan, which would vest and be expensed over an approximately 4-year service period.

The following table summarizes the fair value of assets acquired and liabilities assumed:

 

 

July 19, 2021

 

 

 

(in thousands)

 

Cash and cash equivalent

 

$

31,240

 

Other current assets

 

 

943

 

Intangible assets

 

 

45,500

 

Goodwill

 

 

224,852

 

Other noncurrent assets

 

 

2,692

 

Total assets acquired

 

 

305,227

 

Current liabilities

 

 

4,272

 

Noncurrent liabilities

 

 

1,501

 

Total liabilities assumed

 

 

5,773

 

Total purchase consideration

 

$

299,454

 

 

Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers. Goodwill is not deductible for income tax purpose. The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition:

 

 

Fair Value

 

 

Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

41,300

 

 

 

5.0

 

Customer relationships

 

 

4,200

 

 

 

6.0

 

Total intangible assets acquired

 

$

45,500

 

 

 

 

 

The results of operations of Vdoo have been included in the consolidated financial statements since the date of the acquisition. Additionally, the Company incurred transaction costs $0.7 million during the year ended December 31, 2021, which were included in general and administrative expenses in the Consolidated Statements of Operations.

The following unaudited pro forma information presents the combined results of operations of the Company and Vdoo as if the acquisition of Vdoo had been completed on January 1, 2020. The unaudited pro forma results include adjustments primarily related to amortization of the acquired intangible assets, recognition of cash and share-based compensation associated with RSU grants, retention and holdback arrangements, as referenced above, as of the earliest period presented.

The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational

purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020.

 

 

Year Ended December 31, 2021

 

 

 

(in thousands)

 

Revenue

 

$

207,824

 

Net loss

 

$

89,939

 

 

Upswift Ltd.

In August 2021, the Company completed the acquisition of Upswift Ltd., a privately-held company providing device management platform for total consideration of $9.5 million, net of cash acquired. Of the purchase consideration, $4.3 million was attributed to identified intangible assets, $5.8 million to goodwill, and $0.6 million to net liabilities assumed.
v3.24.0.1
Goodwill and Intangible Assets, Net
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets, Net

9. Goodwill and Intangible Assets, Net

Goodwill

The following table represents the changes to goodwill:

 

 

Carrying Amount

 

 

 

(in thousands)

 

Balance as of December 31, 2021

 

$

247,776

 

Purchase price adjustment

 

 

179

 

Balance as of December 31, 2022 and 2023

 

$

247,955

 

 

Intangible Assets, Net

Intangible assets consisted of the following as of December 31, 2023:

 

 

Gross Carrying Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Amount

 

 

Weighted-
Average
Remaining
Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

50,347

 

 

$

(27,779

)

 

$

22,568

 

 

 

2.3

 

Customer relationships

 

 

5,541

 

 

 

(2,786

)

 

 

2,755

 

 

 

3.1

 

Other intangible assets

 

 

1,132

 

 

 

(687

)

 

 

445

 

 

 

0.9

 

Total

 

$

57,020

 

 

$

(31,252

)

 

$

25,768

 

 

 

 

Intangible assets consisted of the following as of December 31, 2022:

 

 

Gross Carrying Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Amount

 

 

Weighted-
Average
Remaining
Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

50,347

 

 

$

(17,434

)

 

$

32,913

 

 

 

3.3

 

Customer relationships

 

 

5,541

 

 

 

(1,840

)

 

 

3,701

 

 

 

4.1

 

Other intangible assets

 

 

1,132

 

 

 

(202

)

 

 

930

 

 

 

1.9

 

Total

 

$

57,020

 

 

$

(19,476

)

 

$

37,544

 

 

 

 

 

Amortization expenses for intangible assets were $11.8 million, $11.6 million and $5.9 million for the years ended December 31, 2023, 2022, and 2021, respectively.

The expected future amortization expenses by year related to the intangible assets as of December 31, 2023 are as follows:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

11,034

 

2025

 

 

9,110

 

2026

 

 

5,241

 

2027

 

 

383

 

Total

 

$

25,768

 
v3.24.0.1
Leases
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Leases

10. Leases

The Company has entered into non-cancelable lease agreements for its offices with lease periods expiring at various dates through March 2028.

Components of operating lease expense were as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Operating lease cost

 

$

9,144

 

 

$

7,682

 

Short-term lease cost

 

 

571

 

 

 

527

 

Variable lease cost

 

 

398

 

 

 

377

 

Total operating lease cost

 

$

10,113

 

 

$

8,586

 

 

Supplementary cash flow information related to operating leases was as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Cash paid for operating leases

 

$

8,453

 

 

$

7,546

 

ROU assets obtained in exchange for new operating lease liabilities

 

$

2,867

 

 

$

3,567

 

Adjustment to ROU assets upon modification of existing lease

 

$

3,415

 

 

$

2,393

 

 

As of December 31, 2023, the weighted-average discount rate is 3.3% and the weighted-average remaining term is 2.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2023 were as follows:

 

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

8,895

 

2025

 

 

7,988

 

2026

 

 

4,716

 

2027

 

 

1,628

 

2028

 

 

156

 

Total operating lease payments

 

 

23,383

 

Less: imputed interest

 

 

(1,157

)

Total operating lease liabilities

 

$

22,226

 

 
v3.24.0.1
Commitments and Contingencies
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies

11. Commitments and Contingencies

Non-cancelable Purchase Obligations

In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for hosting services, as well as software products and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

16,346

 

2025

 

 

16,233

 

2026

 

 

108

 

Total

 

$

32,687

 

 

Indemnifications and Contingencies

The Company enters into indemnification provisions under certain agreements with other parties in the ordinary course of business. In its customer agreements, the Company has agreed to indemnify, defend and hold harmless the indemnified party for third party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic customers, the Company has agreed to indemnify, defend and hold harmless the indemnified party for certain additional matters including but not limited to non-compliance with certain representations and warranties made by the Company.

Grants from Israeli Innovation Authority

The Company has received in the past grants from the Israeli Innovation Authority (“IIA”) and repaid them in full. Still, as any grant recipient, the Company is subject to the provisions of the Israeli Law for the Encouragement of Research, Development and Technological Innovation in the Industry and the regulations and guidelines thereunder (the “Innovation Law”). Pursuant to the Innovation Law, there are restrictions related to transferring intellectual property outside of Israel. Such transfer requires the approval from the IIA. The approval may be subject to a maximum additional payment amount of approximately $6.0 million. In the past, the Company received an approval from the IIA to perform a limited development of IIA funded know-how outside of Israel, subject to the terms specified in the IIA approval, including that all of its core R&D activities will remain in Israel.

Legal Proceedings

The Company may be subject from time to time to various proceedings, lawsuits, disputes, or claims in the ordinary course of business. The Company investigates these claims as they arise. Although claims are inherently unpredictable, the Company is currently not aware of any matters that, if determined adversely to the Company, would individually or taken together, have a material adverse effect on its business, financial position, results of operations, or cash flows.

Former Company sales employees (the “Former Employees”), on behalf of themselves and other non-exempt sales employees, alleged the violation of various wage and hour laws and have sought to recover unpaid wages, statutory penalties, civil penalties, liquidated damages, and attorney’s fees pursuant to certain California and federal laws. The Company denies the allegations. The Company and Former Employees settled the dispute amicably through arbitration for approximately $2.6 million in September 2022. Subsequently, all settlement payments were distributed. The Company had previously accrued a sufficient amount for the estimated settlement in its sales and marketing expenses in the fourth quarter of 2021.
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
Shareholders' Equity and Equity Incentive Plans

12. Shareholders’ Equity and Equity Incentive Plans

Preferred and Ordinary Shares

The Company’s amended and restated articles of association (“AoA”) authorized the issuance of 50,000,000 preferred shares and 500,000,000 ordinary shares, each with a par value of NIS 0.01. All ordinary shares will have identical voting and other

rights in all respects. The Company’s AoA does not require shareholder approval of a dividend distribution and provides that dividend distributions may be determined by the Company’s board of directors. To date, no dividends have been declared.

The Company has the following ordinary shares reserved for future issuance:

 

 

December 31, 2023

 

Outstanding share options

 

 

5,110,390

 

Outstanding RSUs

 

 

10,006,997

 

Shares available for future issuance under the 2020 Plan

 

 

14,214,984

 

Shares available for future issuance under ESPP

 

 

4,281,665

 

Total ordinary shares reserved

 

 

33,614,036

 

 

Equity Incentive Plans

In September 2020, the Company adopted the 2020 Share Incentive Plan (“2020 Plan”), which replaced the 2011 Israeli Share Option Plan (“2011 Plan”). The Company ceased granting awards under the 2011 Plan. The equity awards outstanding under the 2011 Plan continue to be governed by the 2011 Plan. These awards generally vest over five years and expire 10 years after the date of grant.

The 2020 Plan provides for the grant of share options, ordinary shares, restricted shares, restricted share units and other share-based awards. The maximum number of ordinary shares available for issuance under the 2020 Plan is equal to the sum of (i) 9,100,000 ordinary shares plus, (ii) the number of ordinary shares remaining available for issuance under the 2011 Plan as of the date it was replaced, and (iii) the number of ordinary shares that become available under the 2011 Plan as a result of expiration, forfeiture, cancellation, or settlement in cash, with the maximum number of shares to be added to the 2020 Plan pursuant to the 2011 Plan equal to 15,309,367 shares. In addition, the number of shares available for issuance under the Company’s 2020 Plan also includes an annual increase on January 1 of each year beginning on January 1, 2021 and ending on and including January 1, 2030, in an amount equal to the least of (i) 9,100,000 ordinary shares, (ii) five percent (5%) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year on a fully diluted basis, or (iii) such number of shares determined by the Company’s board of directors. The contractual term for each award granted under the 2020 Plan will be 10 years. Effective January 1, 2023, the number of ordinary shares authorized for issuance under the 2020 Plan automatically increased by 5,819,265 shares.

Share Options

A summary of share option activity under the Company’s equity incentive plans and related information is as follows:

 

 

Options Outstanding

 

 

 

Outstanding
Share Options

 

 

Weighted-Average Exercise
Price

 

 

Weighted-Average Remaining
Contractual
Life (Years)

 

 

Aggregate
Intrinsic
Value

 

 

 

(in thousands, except share, life and per share data)

 

Balance as of December 31, 2022

 

 

7,205,324

 

 

$

7.88

 

 

 

5.4

 

 

$

101,334

 

Exercised

 

 

(1,899,722

)

 

$

5.31

 

 

 

 

 

$

38,903

 

Forfeited

 

 

(195,212

)

 

$

17.04

 

 

 

 

 

 

 

Balance as of December 31, 2023

 

 

5,110,390

 

 

$

8.49

 

 

 

4.1

 

 

$

134,171

 

Exercisable as of December 31, 2023

 

 

4,434,819

 

 

$

7.07

 

 

 

3.8

 

 

$

122,537

 

 

The total intrinsic value of option exercised during the years ended December 31, 2022 and 2021 was $44.8 million and $118.7 million, respectively.

Restricted Share Units

A summary of RSU activity under the Company's equity incentive plan is as follows, including performance-based RSUs with market condition:

 

 

RSUs

 

 

 

Unvested RSUs

 

 

Weighted-Average
Grant Date Fair
Value Per Share

 

Unvested as of December 31, 2022

 

 

7,981,147

 

 

$

26.90

 

Granted

 

 

6,605,426

 

 

$

25.38

 

Vested

 

 

(2,882,729

)

 

$

27.15

 

Forfeited

 

 

(1,696,847

)

 

$

26.35

 

Unvested as of December 31, 2023

 

 

10,006,997

 

 

$

25.91

 

 

The weighted-average grant date fair value of RSUs granted during the years ended December 31, 2022 and 2021 was $21.40 and $45.97, respectively. The total fair value of RSUs, as of their respective release dates, was $75.2 million, $22.9 million, and $23.4 million during the years ended December 31, 2023, 2022, and 2021, respectively.

Employee Share Purchase Plan

In August 2020, the Company adopted the 2020 Employee Share Purchase Plan (“ESPP”), which became effective in September 2020. A total of 2,100,000 ordinary shares are available for sale under the ESPP. The number of ordinary shares available for sale under the ESPP also includes an annual increase on the first day of each fiscal year beginning with 2021, equal to the least of (i) 2,100,000 ordinary shares, (ii) one percent (1%) of the total number of ordinary shares outstanding as of the last day of the immediately preceding calendar year, or (iii) such other amount as may be determined by the Company’s board of directors.

Eligible employees can contribute up to 15% of their eligible compensation to purchase the Company’s ordinary shares, not to exceed $25,000 of fair market value of the ordinary shares for each calendar year or 1,250 ordinary shares during an offering period. The purchase price of the shares will be 85% of the lower of the fair market value of the Company’s ordinary shares on the first trading day of the offering period or on the exercise date. Participants may end their participation at any time during an offering period and unused contributions will be refunded. Participation ends automatically upon termination of employment with the Company.

The Company’s ESPP provides for consecutive six-month offering periods. The offering periods are scheduled to start on the first trading day on or after March 1 and September 1 of each year, with the first offering period commenced on March 1, 2021.

Effective January 1, 2023, the number of ordinary shares authorized for issuance under the ESPP automatically increased by 1,009,633 shares.

The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows:

 

 

Year Ended December 31,

 

 

2023

 

2022

 

2021

Expected term (years)

 

0.5

 

0.5

 

0.5

Expected volatility

 

44.4% - 55.1%

 

51.7% - 58.5%

 

56.9% - 64.8%

Risk-free interest rate

 

5.20% - 5.47%

 

0.16% - 3.3%

 

0.1%

Expected dividend yield

 

0.0%

 

0.0%

 

0.0%

 

 

Share-Based Compensation

The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Cost of revenue: subscription–self-managed and SaaS

 

$

9,784

 

 

$

6,991

 

 

$

4,027

 

Research and development

 

 

32,689

 

 

 

24,664

 

 

 

14,572

 

Sales and marketing

 

 

30,338

 

 

 

22,753

 

 

 

15,256

 

General and administrative

 

 

22,360

 

 

 

14,253

 

 

 

23,094

 

Total share-based compensation expense

 

$

95,171

 

 

$

68,661

 

 

$

56,949

 

 

As of December 31, 2023, unrecognized share-based compensation cost related to unvested share-based compensation awards was $241.6 million, which is expected to be recognized over a weighted-average period of 2.8 years.
v3.24.0.1
Accumulated Other Comprehensive Income (Loss)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Accumulated Other Comprehensive Income (Loss)

13. Accumulated Other Comprehensive Income (Loss)

The following table summarizes the changes in AOCI by component, net of tax, during the periods presented:

 

 

Net Unrealized
Losses on
Available-for-Sale
Marketable
Securities

 

 

Net Unrealized
Gains (Losses) on
Derivatives
Designated as
Hedging
Instruments

 

 

Total

 

 

 

(in thousands)

 

Balance as of December 31, 2021

 

$

(264

)

 

$

875

 

 

$

611

 

Other comprehensive loss before reclassifications

 

 

(1,428

)

 

 

(6,109

)

 

 

(7,537

)

Net realized losses (gains) reclassified from AOCI

 

 

(2

)

 

 

4,156

 

 

 

4,154

 

Other comprehensive loss

 

 

(1,430

)

 

 

(1,953

)

 

 

(3,383

)

Balance as of December 31, 2022

 

 

(1,694

)

 

 

(1,078

)

 

 

(2,772

)

Other comprehensive income (loss) before reclassifications

 

 

1,414

 

 

 

(2,617

)

 

 

(1,203

)

Net realized losses reclassified from AOCI

 

 

156

 

 

 

4,832

 

 

 

4,988

 

Other comprehensive income

 

 

1,570

 

 

 

2,215

 

 

 

3,785

 

Balance as of December 31, 2023

 

$

(124

)

 

$

1,137

 

 

$

1,013

 
v3.24.0.1
Income Taxes
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Income Taxes

14. Income Taxes

Ordinary taxable income in Israel is subject to a corporate tax rate of 23%.

The Company applies various benefits allotted to it under the revised Investment Law as per Amendment 73, which includes a number of changes to the Investment Law regimes through regulations that have come into effect from January 1, 2017. Applicable benefits under the new regime include:

•
Introduction of a benefit regime for “Preferred Technology Enterprises” (“PTE”), granting a 12% tax rate in central Israel on income deriving from Benefited Intangible Assets, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual income derived from exports to large markets.
•
A 12% capital gains tax rate on the sale of a preferred intangible asset to a foreign affiliated enterprise, provided that the asset was initially purchased from a foreign resident at an amount of NIS 200 million or more.
•
A withholding tax rate of 20% for dividends paid from PTE income (with an exemption from such withholding tax applying to dividends paid to an Israeli company) may be reduced to 4% on dividends paid to a foreign resident company, subject to certain conditions regarding percentage of foreign ownership of the distributing entity.

The Company adopted the PTE status since 2017 and believes it is eligible for its tax benefits.

The Company’s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity.

The components of the net loss before income taxes were as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Israel

 

$

(73,560

)

 

$

(99,434

)

 

$

(38,900

)

Foreign

 

 

19,044

 

 

 

14,688

 

 

 

(28,725

)

Total

 

$

(54,516

)

 

$

(84,746

)

 

$

(67,625

)

 

Income tax expense (benefit) was as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Current:

 

 

 

 

 

 

 

 

 

Israel

 

$

—

 

 

$

—

 

 

$

(369

)

Foreign

 

 

5,753

 

 

 

3,967

 

 

 

549

 

Total current income tax expense

 

 

5,753

 

 

 

3,967

 

 

 

180

 

Deferred:

 

 

 

 

 

 

 

 

 

Israel

 

 

—

 

 

 

—

 

 

 

(371

)

Foreign

 

 

987

 

 

 

1,471

 

 

 

(3,231

)

Total deferred income tax expense (benefit)

 

 

987

 

 

 

1,471

 

 

 

(3,602

)

Income tax expense (benefit)

 

$

6,740

 

 

$

5,438

 

 

$

(3,422

)

 

A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Theoretical income tax benefit

 

 

23

%

 

 

23

%

 

 

23

%

PTE

 

 

(15

)

 

 

(13

)

 

 

(5

)

Foreign tax rate differentials

 

 

2

 

 

 

3

 

 

 

1

 

Share-based compensation

 

 

(2

)

 

 

(6

)

 

 

(4

)

Change in valuation allowance

 

 

(16

)

 

 

(13

)

 

 

(6

)

Unrecognized tax benefits

 

 

(1

)

 

 

—

 

 

 

(3

)

Acquisition costs

 

 

(1

)

 

 

(1

)

 

 

(1

)

Other

 

 

(2

)

 

 

1

 

 

 

—

 

Total

 

 

(12

)%

 

 

(6

)%

 

 

5

%

 

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The following table presents the significant components of the Company’s deferred tax assets and liabilities:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

20,070

 

 

$

16,336

 

Research and development expenses

 

 

7,843

 

 

 

8,669

 

Accruals and reserves

 

 

971

 

 

 

1,580

 

Share-based compensation

 

 

13,024

 

 

 

7,436

 

Deferred revenue

 

 

2,403

 

 

 

2,217

 

Operating lease liabilities

 

 

1,602

 

 

 

2,406

 

Gross deferred tax assets

 

 

45,913

 

 

 

38,644

 

Valuation allowance

 

 

(31,585

)

 

 

(22,690

)

Total deferred tax assets

 

 

14,328

 

 

 

15,954

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible assets

 

 

(2,997

)

 

 

(4,297

)

Deferred contract acquisition costs

 

 

(5,089

)

 

 

(3,917

)

Operating lease ROU assets

 

 

(1,563

)

 

 

(2,236

)

Share-based compensation

 

 

(947

)

 

 

(632

)

Property and equipment

 

 

(155

)

 

 

(318

)

Gross deferred tax liabilities

 

 

(10,751

)

 

 

(11,400

)

Net deferred tax assets

 

$

3,577

 

 

$

4,554

 

 

A valuation allowance is provided when it is more likely than not that the deferred tax assets will not be realized. The Company has established a valuation allowance to offset certain deferred tax assets at December 31, 2023 and 2022 due to the uncertainty of realizing future tax benefits from its net operating loss carryforwards and other deferred tax assets. The net change in the total valuation allowance for the years ended December 31, 2023, 2022, and 2021 was an increase of $8.9 million, $10.1 million and $4.7 million, respectively.

As of December 31, 2023, the Company had $138.8 million in net operating loss carryforwards in Israel, which can be carried forward indefinitely.

As of December 31, 2023, the U.S. subsidiary had state net operating loss carryforwards of $51.5 million available to offset future taxable income, which will expire between 2034 and 2043, if not utilized. The U.S. subsidiary had an immaterial federal net operating loss carryforward as of December 31, 2023.

As of December 31, 2023, certain foreign subsidiaries of the Company had undistributed earnings of $6.7 million, which were designated as indefinitely reinvested. If these earnings were repatriated to Israel, it would be subject to income taxes and to an adjustment for foreign tax credits and foreign withholding taxes. The Company has estimated the amount of unrecognized deferred tax liability related to these earnings to be approximately $0.6 million.

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:

 

 

Unrecognized Tax Benefits

 

 

 

(in thousands)

 

Balance - December 31, 2020

 

$

2,738

 

Increase related to prior years’ tax positions

 

 

86

 

Decrease related to prior years’ tax positions

 

 

(2

)

Increase related to current year’s tax positions

 

 

2,039

 

Decrease related to settlements with tax authorities

 

 

(446

)

Decrease due to lapse of statutes of limitations

 

 

(19

)

Balance - December 31, 2021

 

 

4,396

 

Increase related to prior years’ tax positions

 

 

289

 

Increase related to current year’s tax positions

 

 

176

 

Decrease due to lapse of statutes of limitations

 

 

(38

)

Balance - December 31, 2022

 

 

4,823

 

Increase related to prior years’ tax positions

 

 

149

 

Decrease related to prior years’ tax positions

 

 

(24

)

Increase related to current year’s tax positions

 

 

464

 

Decrease due to lapse of statutes of limitations

 

 

(13

)

Balance - December 31, 2023

 

$

5,399

 

 

As of December 31, 2023, the total amount of gross unrecognized tax benefits was $5.4 million, of which, $3.9 million, if recognized, would favorably affect the Company’s effective tax rate.

The Company recognizes interest and penalties related to uncertain tax positions in income tax expense. As of December 31, 2023 and 2022, accrued interest and penalties related to uncertain tax positions were immaterial.

The Company has net operating losses from prior tax periods which may be subjected to examination in future periods. As of December 31, 2023, the Company’s tax years after 2019 are open to examination in Israel. Its U.S. subsidiary’s tax filings for tax years after 2019 are open to examinations by U.S. federal tax authorities and tax years after 2018 are open to examinations by U.S. state tax authorities. In addition, the U.S. federal tax returns were settled through 2018 except for any adjustments which might be made as a result of the carryback of net operating losses. The Company currently does not expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities, the likelihood and timing of which is difficult to estimate.
v3.24.0.1
Employee Benefit Plans
 12 Months Ended
Dec. 31, 2023
Retirement Benefits [Abstract]  
Employee Benefit Plans

15. Employee Benefit Plans

The Company has a defined-contribution plan in the U.S. intended to qualify under Section 401 of the Internal Revenue Code (the “401(k) Plan”). The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. The Company matches 50% of participating employee contributions to the plan up to 6% of the employee’s eligible compensation. During the years ended December 31, 2023, 2022, and 2021, the Company recorded $1.6 million, $1.4 million and $1.1 million, respectively, of expenses related to the 401(k) plan.

Israeli Severance Pay

Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. The Company has elected to include its employees in Israel under Section 14 of the Severance Pay Law, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33% of their monthly salary. These payments release the Company from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees; therefore, any liability for severance pay due to these employees, and the deposits under Section 14 are not recorded as an asset in the Consolidated Balance Sheets. During the years ended December 31, 2023, 2022, and 2021, the Company recorded $6.2 million, $5.5 million, and $3.6 million, respectively, in severance expenses related to these employees.
v3.24.0.1
Net Loss Per Share
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Net Loss Per Share

16. Net Loss Per Share

The following table sets forth the computation of basic and diluted net loss per share for the periods presented:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands, except share and per share data)

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(61,256

)

 

$

(90,184

)

 

$

(64,203

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share, basic and diluted

 

 

103,317,759

 

 

 

99,243,894

 

 

 

94,783,082

 

Net loss per share, basic and diluted

 

$

(0.59

)

 

$

(0.91

)

 

$

(0.68

)

 

The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Outstanding share options

 

 

6,264,883

 

 

 

8,268,711

 

 

 

11,229,241

 

Unvested RSUs

 

 

9,298,748

 

 

 

6,223,077

 

 

 

2,331,607

 

Share purchase rights under the ESPP

 

 

155,276

 

 

 

101,787

 

 

 

79,450

 

Issuable ordinary shares related to business combination

 

 

27,505

 

 

 

104,715

 

 

 

140,385

 

Total

 

 

15,746,412

 

 

 

14,698,290

 

 

 

13,780,683

 
v3.24.0.1
Summary of Significant Accounting Policies (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of Presentation

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and include the accounts of JFrog Ltd. and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting periods and accompanying notes. Significant items subject to such estimates and assumptions include, but are not limited to, the allocation of transaction price among various performance obligations, the estimated benefit period of deferred contract acquisition costs, the allowance for credit losses, the fair value of acquired intangible assets and goodwill, the useful lives of acquired intangible assets and property and equipment, the incremental borrowing rate for operating leases, and the valuation of deferred tax assets and uncertain tax positions. The Company bases these estimates on historical and anticipated results, trends and various other assumptions that it believes are reasonable under the circumstances, including assumptions as to future events. Actual results could differ from those estimates.

Foreign Currency

Foreign Currency

The functional currency of the Company is the U.S. dollar. Accordingly, foreign currency assets and liabilities are remeasured into U.S. dollars at the end-of-period exchange rates except for non-monetary assets and liabilities, which are measured at historical exchange rates. Revenue and expenses are remeasured each day at the exchange rate in effect on the day the transaction occurred. Gains or losses from foreign currency re-measurement and settlements are included in interest and other income, net in the Consolidated Statement of Operations.
Concentration of Risks

Concentration of Risks

Financial instruments that potentially subject the Company to a concentration of credit risk consist of cash and cash equivalents, restricted cash, short-term investments, accounts receivable, and derivative instruments. The Company maintains its cash, cash equivalents, restricted cash, and short-term investments with high-quality financial institutions mainly in the U.S. and Israel, and regularly monitors their composition and maturities. The Company’s derivatives expose it to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. The Company seeks to mitigate such risk by limiting its counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis. The Company grants credit to its customers in the normal course of business.

As of December 31, 2023 and 2022, no single customer represented 10% or more of accounts receivable. No single customer accounted for more than 10% of total revenue for the periods presented.
Cash, Cash Equivalents, and Restricted Cash

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents consist of cash in banks and highly liquid investments with an original maturity of three months or less at the date of purchase. The Company maintains certain cash amounts restricted as to its withdrawal or use. The Company’s restricted cash primarily consists of bank deposits collateralizing the Company’s credit cards and operating leases.
Short-Term Investments

Short-Term Investments

Short-term investments consist of bank deposits and marketable securities. Bank deposits are time deposits with an original maturity of more than three months but less than one year from the date of investment. Bank deposits are presented at cost with accrued interest.

Marketable securities consist of fixed-income debt securities with maturity of greater than three months at the date of purchase. The Company classifies its marketable securities as available-for-sale at the time of purchase and reevaluates such classification at each balance sheet date. The Company may sell these securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its marketable securities, including those with maturities beyond 12 months, as current assets in the Consolidated Balance Sheets. The Company carries these securities at fair value and records unrealized gains and losses, net of taxes, in accumulated other comprehensive income (“AOCI”) as a component of shareholders’ equity (deficit), except for changes in allowance for expected credit losses, which is recorded in interest and other income, net. Gains and losses are determined using the specific identification method and recognized when realized in the Consolidated Statements of Operations.

The Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security to its fair value and records the impairment charge in interest and other income, net in the Consolidated Statements of Operations. If neither of these criteria are met, the Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating agency, any adverse conditions specifically related to the security, as well as other factors.
Fair Value Measurements

Fair Value Measurements

Fair value is defined as the exchange price that would be received from the sale of an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company measures financial assets and liabilities at fair value at each reporting period using a fair value hierarchy which requires the Company to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. A financial instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Quoted prices in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial instruments consist of cash equivalents, restricted cash, short-term investments, accounts receivables, derivative financial instruments, accounts payables, and accrued liabilities. Cash equivalents, marketable securities, derivative financial instruments, and restricted cash are stated at fair value on a recurring basis. Bank deposits, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date.
AccountsReceivable, Net

Accounts Receivable, Net

Accounts receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for credit losses. The allowance for credit losses is based on the Company’s assessment of the collectability of accounts. The Company regularly assessed collectability based on a combination of factors, including an assessment of the current customer’s aging balance, the nature and size of the customer, the financial condition of the customer, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for credit losses when identified. The allowance of credit losses was not material for the periods presented.
Derivative Financial Instruments

Derivative Financial Instruments

The Company enters into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks, mainly the exposure to changes in the exchange rate of the New Israeli Shekel (“NIS”) against the U.S. dollar that are associated with forecasted future cash flows and certain existing assets and liabilities for up to twelve months. The Company’s primary objective in entering into these contracts is to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The Company does not use derivative instruments for trading or speculative purposes.

The Company recognizes its derivative instruments as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the Consolidated Balance Sheets and carries them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments that hedge the exposure to variability in expected future cash flows are designated as cash flow hedges. Changes in the fair value of these derivatives are recorded in AOCI in the Consolidated Balance Sheets, until the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates. In case the Company discontinues cash flow hedges, it records the related amount in interest and other income, net, on the Consolidated Statements of Operations. Derivative instruments that hedge the exposure to variability in the fair value of assets or liabilities are currently not designated as hedges for financial reporting purposes. The Company records changes in the fair value of these derivatives in interest and other income, net in the Consolidated Statements of Operations. The cash flows from the derivative instruments are recorded in operating activities in the Consolidated Statements of Cash Flows.
Contract Balances

Contract Balances

Contract assets consist of unbilled accounts receivable, which occur when a right to consideration for the Company’s performance under the customer contract occurs before invoicing to the customer. The amount of unbilled accounts receivable included within accounts receivable, net on the Consolidated Balance Sheets was immaterial for the periods presented.

Contract liabilities consist of deferred revenue. Revenue is deferred when the Company invoices in advance of performance under a contract. The current portion of the deferred revenue balance is recognized as revenue during the 12-month period after the balance sheet date. The noncurrent portion of the deferred revenue balance is recognized as revenue following the 12-month period after the balance sheet date.
Cost to Obtain a Contract

Cost to Obtain a Contract

The Company capitalizes sales commissions and associated payroll taxes paid to sales personnel and commissions paid to channel partners that are incremental to the acquisition of customer contracts. These costs are recorded as deferred contract acquisition costs on the Consolidated Balance Sheets. The Company determines whether costs should be deferred based on its sales compensation plans and channel partner programs and if the commissions are incremental and would not have occurred absent the customer contract.

Sales commissions for the renewal of a contract are not considered commensurate with the sales commissions paid for the acquisition of the initial contract given a substantive difference in commission rates in proportion to their respective contract values, and thus are amortized over the contractual term of the renewals. Sales commissions paid upon the initial acquisition of a customer contract are amortized over an estimated period of benefit of four years, determined by taking into consideration the estimated customer life and the technological life of the Company’s software and other factors. Amortization of sales commissions are consistent with the pattern of revenue recognition of each performance obligation and are included primarily in sales and marketing expense in the Consolidated Statements of Operations.

The Company expenses costs to obtain a contract with a customer as incurred when the amortization period would have been one year or less.

The Company periodically reviews these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.
Property and Equipment, Net

Property and Equipment, Net

Property and equipment are stated at cost net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the respective assets. Expenditures for maintenance and repairs are expensed as incurred.

The estimated useful lives of the Company’s property and equipment are as follows:

Computer and software

 

3 years

Furniture and office equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of remaining lease term or estimated useful life

 
Capitalized Software Costs

Capitalized Software Costs

Software development costs for software to be sold, leased, or otherwise marketed are expensed as incurred until the establishment of technological feasibility, at which time those costs are capitalized until the product is available for general release to customers and amortized over the estimated life of the product. Technological feasibility is established when all planning, designing, coding and testing necessary to meet the product’s design specifications have been completed. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented because the general release process for most of the Company’s products is essentially completed concurrently with the establishment of technological feasibility.

Costs related to software acquired, developed, or modified solely to meet the Company’s internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary planning and evaluation stage of the project and during the post implementation operational stage are expensed as incurred. Costs incurred during the application development stage of the project are capitalized. Maintenance costs are expensed as incurred. The amount of qualifying costs for capitalization incurred was immaterial for the periods presented.
Leases

Leases

The Company determines if an arrangement is a lease at inception. The Company currently does not have any finance leases.

Operating lease right-of-use (“ROU”) assets and liabilities are recognized at the present value of the future lease payments at the lease commencement date. The Company combines its lease payments and fixed payments for non-lease components and account for them together as a single lease component. Operating lease ROU assets also include any prepaid lease payments. Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU and lease liability were calculated using the initial CPI and will not be subsequently adjusted. Payments for variable lease costs are expensed as incurred and not included in the operating lease ROU assets and liabilities. For short-term leases with a term of 12 months or less, operating lease ROU assets and liabilities are not recognized and the Company records lease payments in the Consolidated Statements of Operations on a straight-line basis over the lease term.

The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate, because the interest rate implicit in the Company’s leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located. Many of the Company’s lease agreements provide one or more options to renew. When determining lease terms, the Company uses the non-cancellable period of the leases and do not assume renewals unless it is reasonably certain that the Company will exercise that option. Operating lease expense is recognized on a straight-line basis over the lease term.
Business and Asset Acquisitions

Business and Asset Acquisitions

When the Company acquires a business, the purchase price is allocated to the tangible and identifiable intangible assets, net of liabilities assumed. Any residual purchase price is recorded as goodwill. The allocation of the purchase price requires management to make significant estimates in determining the fair values of assets acquired and liabilities assumed, especially with respect to intangible assets. These estimates can include, but are not limited to, the cash flows that an asset is expected to generate in the future, the appropriate weighted-average cost of capital and the cost savings expected to be derived from acquiring an asset. These estimates are inherently uncertain and unpredictable. During the measurement period, which may be up to one year from the acquisition date, adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed may be recorded, with the corresponding offset to goodwill. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s Consolidated Statements of Operations.

The Company accounts for a transaction as an asset acquisition when substantially all of the fair value of the gross assets acquired is concentrated in a single identifiable asset or group of similar identifiable assets, or otherwise does not meet the definition of a business. Asset acquisition-related costs are capitalized as part of the asset or assets acquired.
Goodwill and Intangible Assets

Goodwill and Intangible Assets

Goodwill is not amortized but rather tested for impairment at least annually in the fourth quarter, or more frequently if events or changes in circumstances indicate that goodwill may be impaired. Goodwill represents the excess of the purchase price over the fair value of net assets acquired in a business combination and is allocated to reporting units expected to benefit from the business combination. The Company has determined that it has one operating segment and one reporting unit. Goodwill impairment is recognized when the quantitative assessment results in the carrying value exceeding the fair value, in which case an impairment charge is recorded to the extent the carrying value exceeds the fair value. There were no impairment charges to goodwill during the periods presented.

Intangible assets are amortized on a straight-line basis over the estimated useful life of the respective asset. Each period the Company evaluates the estimated remaining useful lives of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization.

The estimated useful lives of the Company’s intangible assets are as follows:

Developed technology

 

3 - 6 years

Customer relationships

 

3 - 6 years

Other intangible assets

 

3 years

 
Impairment of Long-Lived Assets

Impairment of Long-Lived Assets

The Company evaluates the recoverability of long-lived assets, including property and equipment and intangible assets for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in the Company’s business strategy. Recoverability of these assets is measured by a comparison of the carrying amounts to the future undiscounted cash flows the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. There were no impairment charges to long-lived assets during the periods presented.
Revenue Recognition

Revenue Recognition

The Company’s revenues are comprised of revenue from self-managed subscriptions and SaaS subscriptions. Subscriptions to the Company’s self-managed software include license, support, and upgrades and updates on a when-and-if-available basis. The Company’s SaaS subscriptions provide access to the Company’s latest managed version of its product hosted in a public cloud. Self-managed subscriptions and SaaS subscriptions are both offered on an annual and multi-year basis, with the exception of certain SaaS subscriptions, which are also offered on a monthly basis. The Company’s annual and multi-year subscriptions are typically invoiced and collected at the beginning of the contract term or in annual installments. The Company’s monthly SaaS subscriptions are typically billed in arrears. For SaaS subscriptions with a minimum usage commitment, the Company typically

invoices and collects the commitment amount at the time of entering into the contract, with any usage in excess of the committed contracted amount billed monthly in arrears.

Revenue is recognized when a customer obtains control of promised goods or services are delivered. The amount of revenue recognized reflects the consideration that the Company expects to receive in exchange for these goods or services. To achieve the core principle of this standard, the Company applied the following five steps:

1. Identification of the contract, or contracts, with the customer

The Company determines that it has a contract with a customer when each party’s rights regarding the products or services to be transferred can be identified, the payment terms for the services can be identified, the Company has determined the customer has the ability and intent to pay, and the contract has commercial substance. At contract inception, the Company evaluates whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation.

2. Identification of the performance obligations in the contract

Performance obligations promised in a contract are identified based on the products and services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the products or services either on their own or together with other resources that are readily available from third parties or from the Company, and are distinct in the context of the contract, whereby the transfer of the products and services is separately identifiable from other promises in the contract.

For self-managed subscriptions, the Company’s performance obligations include license for proprietary features of software, support, and upgrades and updates to the software on a when-and-if-available basis. The license provides standalone functionality to the customer and is therefore deemed a distinct performance obligation. Performance obligations related to support as well as upgrades and updates to the software on a when-and-if-available basis generally have a consistent continuous pattern of transfer to a customer during the contract period.

For SaaS subscriptions, the Company provides access to its cloud-hosted software, without providing the customer with the right to take possession of its software, which the Company considers to be a single performance obligation.

3. Determination of the transaction price

The transaction price is determined based on the consideration to which the Company expects to be entitled in exchange for transferring products or delivery of services to the customer. Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts generally do not include a significant financing component. The primary purpose of the Company’s invoicing terms is to provide customers with simplified and predictable ways of purchasing its products and services, not to receive financing from its customers or to provide customers with financing. The Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities (for example, sales tax and other indirect taxes). The Company does not offer right of refund in its contracts.

4. Allocation of the transaction price to the performance obligations in the contract

If the contract contains a single performance obligation, the entire transaction price is allocated to the single performance obligation. For contracts that contain multiple performance obligations, the Company allocates the transaction price for each contract to each performance obligation based on the relative standalone selling price (“SSP”) for each performance obligation. The Company uses judgment in determining the SSP for its products and services. The Company typically assesses the SSP for its products and services on a periodic basis or when facts and circumstances change. To determine SSP, the Company maximizes the use of observable standalone sales and observable data, where available. In instances where performance obligations do not have observable standalone sales, the Company utilizes available information that may include market conditions, pricing strategies, the economic life of the software, and other observable inputs or uses the expected cost-plus margin approach to estimate the price the Company would charge if the products and services were sold separately.

5. Recognition of the revenue when, or as, a performance obligation is satisfied

Revenue is recognized at the time the related performance obligation is satisfied by transferring the promised product or delivery of service to the customer. Revenue is recognized in an amount that reflects the consideration that the Company expects to receive in exchange for those products or services. For self-managed subscriptions, the revenue related to the license for proprietary features is recognized upfront, when the license is delivered. This revenue is presented in the Company’s Consolidated Statements of Operations as license–self-managed. The revenue related to support, and upgrades and updates, are recognized ratably over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS. For SaaS subscriptions, revenue is recognized based on usage as the usage occurs over the contract period and is included in the Company’s Consolidated Statements of Operations as subscription–self-managed and SaaS.
Cost of Revenue

Cost of Revenue

Cost of revenue primarily consists of expenses related to providing support to the Company’s customers, cloud-related costs, such as hosting and managing costs, the amortization of acquired intangible assets, and allocated overhead. Overhead is allocated to cost of revenue based on applicable headcount.
Research and Development

Research and Development

Research and development costs include personnel-related expenses associated with the Company’s engineering personnel responsible for the design, development and testing of its products, cost of development environments and tools, and allocated overhead. Research and development costs are expensed as incurred.
Advertising Costs

Advertising Costs

Advertising costs are expensed as incurred and include direct marketing, events, public relations, sales collateral materials and partner programs. Advertising costs amounted to $10.6 million, $8.6 million, and $5.8 million for the years ended December 31, 2023, 2022, and 2021, respectively, and are included in sales and marketing expense in the Consolidated Statements of Operations.
Share-Based Compensation

Share-Based Compensation

Share-based compensation related to share options and share purchase rights granted under the Company’s employee share purchase plan is measured at the grant date based on the fair value of awards, using the Black-Scholes option pricing model. The Black-Scholes option pricing model requires the input of subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the award, the expected volatility of the price of the Company’s ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The Company measures the grant date fair value of its restricted share units (“RSU”) based on the closing market price of the ordinary share on the date of grant. For share-based awards with only service-based vesting conditions, the compensation expense is recognized on a straight-line basis over the requisite service period. For performance-based RSUs with market conditions, the Company uses Monte Carlo simulation model to determine the fair value and recognizes expense using the accelerated attribution method over the requisite service period. Forfeitures are accounted for as they occur instead of estimating the number of awards expected to be forfeited.
Loss Contingency

Loss Contingency

The Company evaluates the likelihood of an unfavorable outcome in legal or regulatory proceedings to which it is a party and records a loss contingency when it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. These judgments are subjective, based on the status of such legal or regulatory proceedings, the merits of the Company’s defenses and consultation with corporate and external legal counsel. Actual outcomes may differ materially from the Company’s estimates. Legal costs associated with the proceedings are expensed as incurred.
Interest and Other Income ,Net

Interest and Other Income, Net

Interest and other income, net primarily consists of income earned on cash equivalents and short-term investments and foreign exchange gains and losses. Interest income was $22.1 million, $5.9 million, and $1.5 million for the years ended December 31, 2023, 2022, and 2021, respectively. Foreign exchange gains (losses) were not material for all periods presented.
Income Taxes

Income Taxes

The Company is subject to income taxes in Israel, the U.S., and other foreign jurisdictions. These foreign jurisdictions may have different statutory rates than in Israel. Income taxes are accounted in accordance with ASC 740, Income Taxes (“ASC 740”). Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statements carrying amounts of existing assets and liabilities and their respective tax basis and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The financial effect of changes in tax laws or rates is accounted for in the period of enactment. Valuation allowances are provided when necessary to reduce deferred tax assets to the amount expected to be realized.

The Company recognizes income tax benefits from uncertain tax positions only if it believes that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement. Although the Company believes that it has adequately reserved for its uncertain tax positions (including net interest and penalties), it can provide no assurance that the final tax outcome of these matters will not be materially different. The Company makes adjustments to these reserves when facts and circumstances change, such as the closing of a tax audit or the refinement of an estimate. To the extent that the final tax outcome of these matters is different from the amounts recorded, such differences will affect the income tax expense in the period in which such determination is made.
Net Loss Per Share

Net Loss Per Share

The Company calculates basic net loss per share by dividing the net loss by the weighted-average number of ordinary shares outstanding during the period. Diluted net loss per share is computed by giving effect to all potentially dilutive ordinary share equivalents outstanding for the period, including share options and restricted share units.
Segment Information

Segment Information

The Company operates in one operating and reportable segment. Operating segments are defined as components of an enterprise about which separate financial information is evaluated regularly by the chief operating decision maker, who is the Company’s CEO, in deciding how to allocate resources and assessing performance. The Company’s chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level.

Revenue by geographical region can be found in Note 3, Revenue Recognition. The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

United States

 

$

8,566

 

 

$

11,569

 

Israel

 

 

15,888

 

 

 

17,887

 

India

 

 

4,054

 

 

 

2,246

 

Rest of world

 

 

582

 

 

 

931

 

Total long-lived assets

 

$

29,090

 

 

$

32,633

 
Recently Issued Accounting Pronouncements

Recently Issued Accounting Pronouncements

In November 2023, the Financial Accounting Standard Board (“FASB”) issued ASU 2023-07, Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures, which expands annual and interim disclosure requirements for reportable segments, primarily through enhanced disclosures about significant segment expenses. In addition, it provides new segment disclosure requirements for entities with a single reportable segment. The guidance will be effective for the Company for annual periods beginning January 1, 2024 and for interim periods beginning January 1, 2025. Early adoption is permitted. The Company is currently evaluating the impact on its financial statement disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740), Improvements to Income Tax Disclosures, which requires disaggregated information about the effective tax rate reconciliation as well as information on income taxes paid.

The guidance will be effective for the Company for annual periods beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact on its financial statement disclosures.
v3.24.0.1
Summary of Significant Accounting Policies (Tables)
 12 Months Ended
Dec. 31, 2023
Summary Of Significant Accounting Policies abstract [Abstract]  
Summary of Estimated Useful Lives of the Company's Property and Equipment

The estimated useful lives of the Company’s property and equipment are as follows:

Computer and software

 

3 years

Furniture and office equipment

 

3 - 7 years

Leasehold improvements

 

Shorter of remaining lease term or estimated useful life

 
Summary of Estimated Useful Lives of the Company's Intangible Assets

The estimated useful lives of the Company’s intangible assets are as follows:

Developed technology

 

3 - 6 years

Customer relationships

 

3 - 6 years

Other intangible assets

 

3 years

 
Summary of Long Lived Assets by Geographic Region

Revenue by geographical region can be found in Note 3, Revenue Recognition. The following table presents the Company’s long-lived assets by geographic region, which consist of property and equipment, net and operating lease right-of-use assets:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

United States

 

$

8,566

 

 

$

11,569

 

Israel

 

 

15,888

 

 

 

17,887

 

India

 

 

4,054

 

 

 

2,246

 

Rest of world

 

 

582

 

 

 

931

 

Total long-lived assets

 

$

29,090

 

 

$

32,633

 
v3.24.0.1
Revenue Recognition (Tables)
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
Summary of table presents revenue as follows

The following table presents revenue by category:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

 

(in thousands, except percentages)

 

Self-managed subscription

 

$

230,560

 

 

 

66

%

 

$

200,390

 

 

 

72

%

 

$

157,035

 

 

 

76

%

Subscription

 

 

210,867

 

 

 

60

 

 

 

181,802

 

 

 

65

 

 

 

140,398

 

 

 

68

 

License

 

 

19,693

 

 

 

6

 

 

 

18,588

 

 

 

7

 

 

 

16,637

 

 

 

8

 

SaaS

 

 

119,326

 

 

 

34

 

 

 

79,650

 

 

 

28

 

 

 

49,648

 

 

 

24

 

Total subscription revenue

 

$

349,886

 

 

 

100

%

 

$

280,040

 

 

 

100

%

 

$

206,683

 

 

 

100

%
Summary of table by region based on the shipping address of customers

The following table summarizes revenue by region based on the shipping address of customers:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
of Revenue

 

 

Amount

 

 

Percentage
 of Revenue

 

 

 

(in thousands, except percentages)

 

United States

 

$

215,605

 

 

 

62

%

 

$

176,334

 

 

 

63

%

 

$

129,503

 

 

 

63

%

Israel

 

 

9,332

 

 

 

3

 

 

 

6,893

 

 

 

2

 

 

 

4,543

 

 

 

2

 

Rest of world

 

 

124,949

 

 

 

35

 

 

 

96,813

 

 

 

35

 

 

 

72,637

 

 

 

35

 

Total subscription revenue

 

$

349,886

 

 

 

100

%

 

$

280,040

 

 

 

100

%

 

$

206,683

 

 

 

100

%

 
v3.24.0.1
Short-Term Investments (Tables)
 12 Months Ended
Dec. 31, 2023
Investments, All Other Investments [Abstract]  
Summary of Marketable Securities

Marketable securities consisted of the following:

 

 

December 31, 2023

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,455

 

 

$

—

 

 

$

(21

)

 

$

2,434

 

Commercial paper

 

 

8,927

 

 

 

—

 

 

 

(6

)

 

 

8,921

 

Corporate debt securities

 

 

162,515

 

 

 

234

 

 

 

(302

)

 

 

162,447

 

Municipal securities

 

 

22,263

 

 

 

9

 

 

 

(36

)

 

 

22,236

 

Government and agency debt

 

 

183,093

 

 

 

252

 

 

 

(250

)

 

 

183,095

 

Total marketable securities

 

$

379,253

 

 

$

495

 

 

$

(615

)

 

$

379,133

 

 

 

 

December 31, 2022

 

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Fair Value

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,204

 

 

$

—

 

 

$

(51

)

 

$

2,153

 

Commercial paper

 

 

38,164

 

 

 

2

 

 

 

(137

)

 

 

38,029

 

Corporate debt securities

 

 

137,191

 

 

 

41

 

 

 

(859

)

 

 

136,373

 

Municipal securities

 

 

38,543

 

 

 

23

 

 

 

(222

)

 

 

38,344

 

Government and agency debt

 

 

87,149

 

 

 

7

 

 

 

(484

)

 

 

86,672

 

Total marketable securities

 

$

303,251

 

 

$

73

 

 

$

(1,753

)

 

$

301,571

 
Summary of Company's Marketable Securities by Contractual Maturities

The following table summarizes the Company’s marketable securities by contractual maturities:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Due in 1 year or less

 

$

273,273

 

Due in 1 year through 2 years

 

 

105,860

 

Total

 

$

379,133

 
Summary of Presents Fair Value and Gross Unrealized Losses of the Company's Marketable Securities

The following table presents fair value and gross unrealized losses of the Company’s marketable securities that have been in a continuous loss position, aggregated by length of time:

 

 

December 31, 2023

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

 

(in thousands)

 

Certificates of deposit

 

$

250

 

 

$

—

 

 

$

2,175

 

 

$

(21

)

 

$

2,425

 

 

$

(21

)

Commercial paper

 

 

8,921

 

 

 

(6

)

 

 

—

 

 

 

—

 

 

 

8,921

 

 

 

(6

)

Corporate debt securities

 

 

77,023

 

 

 

(177

)

 

 

25,156

 

 

 

(125

)

 

 

102,179

 

 

 

(302

)

Municipal securities

 

 

7,071

 

 

 

(6

)

 

 

4,215

 

 

 

(30

)

 

 

11,286

 

 

 

(36

)

Government and agency debt

 

 

99,236

 

 

 

(181

)

 

 

8,972

 

 

 

(69

)

 

 

108,208

 

 

 

(250

)

Total

 

$

192,501

 

 

$

(370

)

 

$

40,518

 

 

$

(245

)

 

$

233,019

 

 

$

(615

)

 

 

 

December 31, 2022

 

 

 

Less Than 12 Months

 

 

12 Months or Greater

 

 

Total

 

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

Fair Value

 

 

Gross Unrealized Loss

 

 

 

(in thousands)

 

Certificates of deposit

 

$

2,153

 

 

$

(51

)

 

$

—

 

 

$

—

 

 

$

2,153

 

 

$

(51

)

Commercial paper

 

 

31,838

 

 

 

(137

)

 

 

—

 

 

 

—

 

 

$

31,838

 

 

$

(137

)

Corporate debt securities

 

 

123,540

 

 

 

(859

)

 

 

—

 

 

 

—

 

 

$

123,540

 

 

$

(859

)

Municipal securities

 

 

25,336

 

 

 

(222

)

 

 

—

 

 

 

—

 

 

$

25,336

 

 

$

(222

)

Government and agency debt

 

 

71,781

 

 

 

(484

)

 

 

—

 

 

 

—

 

 

$

71,781

 

 

$

(484

)

Total

 

$

254,648

 

 

$

(1,753

)

 

$

—

 

 

$

—

 

 

$

254,648

 

 

$

(1,753

)
v3.24.0.1
Fair Value Measurements (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Summary of Fair Value by Balance Sheet Grouping

The following table presents information about the Company’s financial instruments that are measured at fair value on a recurring basis:

 

 

December 31, 2023

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

40,646

 

 

$

40,646

 

 

$

—

 

Government and agency debt

 

 

5,498

 

 

 

—

 

 

$

5,498

 

Cash equivalents

 

 

46,144

 

 

 

40,646

 

 

 

5,498

 

Certificates of deposit

 

 

2,434

 

 

 

—

 

 

 

2,434

 

Commercial paper

 

 

8,921

 

 

 

—

 

 

 

8,921

 

Corporate debt securities

 

 

162,447

 

 

 

—

 

 

 

162,447

 

Municipal securities

 

 

22,236

 

 

 

—

 

 

 

22,236

 

Government and agency debt

 

 

183,095

 

 

 

—

 

 

 

183,095

 

Marketable securities

 

 

379,133

 

 

 

—

 

 

 

379,133

 

Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets

 

 

1,189

 

 

 

—

 

 

 

1,189

 

Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets

 

 

235

 

 

 

—

 

 

 

235

 

Restricted bank deposits included in prepaid expenses and other current assets

 

 

12

 

 

 

—

 

 

 

12

 

Total financial assets

 

$

426,713

 

 

$

40,646

 

 

$

386,067

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities

 

$

52

 

 

$

—

 

 

$

52

 

Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities

 

 

5

 

 

 

—

 

 

 

5

 

Total financial liabilities

 

$

57

 

 

$

—

 

 

$

57

 

 

 

 

December 31, 2022

 

 

 

Fair Value

 

 

Level 1

 

 

Level 2

 

 

 

(in thousands)

 

Financial Assets:

 

 

 

 

 

 

 

 

 

Money market funds

 

$

9,562

 

 

$

9,562

 

 

$

—

 

Cash equivalents

 

 

9,562

 

 

 

9,562

 

 

 

—

 

Certificates of deposit

 

 

2,153

 

 

 

—

 

 

 

2,153

 

Commercial paper

 

 

38,029

 

 

 

—

 

 

 

38,029

 

Corporate debt securities

 

 

136,373

 

 

 

—

 

 

 

136,373

 

Municipal securities

 

 

38,344

 

 

 

—

 

 

 

38,344

 

Government and agency debt

 

 

86,672

 

 

 

—

 

 

 

86,672

 

Marketable securities

 

 

301,571

 

 

 

—

 

 

 

301,571

 

Foreign currency contracts designated as hedging instruments included in prepaid expenses and other current assets

 

 

20

 

 

 

—

 

 

 

20

 

Foreign currency contracts not designated as hedging instruments included in prepaid expenses and other current assets

 

 

21

 

 

 

—

 

 

 

21

 

Restricted bank deposits included in prepaid expenses and other current assets

 

 

12

 

 

 

—

 

 

 

12

 

Total financial assets

 

$

311,186

 

 

$

9,562

 

 

$

301,624

 

Financial Liabilities:

 

 

 

 

 

 

 

 

 

Foreign currency contracts designated as hedging instruments included in accrued expenses and other current liabilities

 

$

1,098

 

 

$

—

 

 

$

1,098

 

Foreign currency contracts not designated as hedging instruments included in accrued expenses and other current liabilities

 

 

379

 

 

 

—

 

 

 

379

 

Total financial liabilities

 

$

1,477

 

 

$

—

 

 

$

1,477

 

 
v3.24.0.1
Derivative Financial Instruments and Hedging (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Disclosure of notional amount of derivatives by hedging designation

The notional amounts of outstanding foreign currency contracts in U.S. dollar as of the periods presented were as follows:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Derivatives Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

$

46,331

 

 

$

42,854

 

Derivatives Not Designated as Hedging Instruments:

 

 

 

 

 

 

Foreign currency contracts

 

 

18,903

 

 

 

17,555

 

Total derivative instruments

 

$

65,234

 

 

$

60,409

 

 

 
Derivative instruments, gain (loss)

The gains (losses) on foreign currency contracts were presented on the Consolidated Statements of Operations as follows:

 

 

Derivatives Designated as Hedging Instruments

 

 

Derivatives Not Designated as Hedging Instruments

 

 

 

December 31,

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

2023

 

 

2022

 

 

2021

 

Statement of Operations Location:

 

(in thousands)

 

Cost of revenue: subscription–self-managed and SaaS

 

$

(359

)

 

$

(314

)

 

$

74

 

 

$

—

 

 

$

—

 

 

$

—

 

Research and development

 

 

(2,982

)

 

 

(2,660

)

 

 

504

 

 

 

—

 

 

 

—

 

 

 

—

 

Sales and marketing

 

 

(693

)

 

 

(540

)

 

 

120

 

 

 

—

 

 

 

—

 

 

 

—

 

General and administrative

 

 

(798

)

 

 

(650

)

 

 

166

 

 

 

—

 

 

 

—

 

 

 

—

 

Interest and other income, net

 

 

—

 

 

 

8

 

 

 

8

 

 

 

(593

)

 

 

(527

)

 

 

345

 

Total gains (losses) recognized in earnings

 

$

(4,832

)

 

$

(4,156

)

 

$

872

 

 

$

(593

)

 

$

(527

)

 

$

345

 
v3.24.0.1
Consolidated Balance Sheet Components (Tables)
 12 Months Ended
Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]  
Summary of property and equipment

Property and equipment, net consisted of the following:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Computer and software

 

$

9,030

 

 

$

8,330

 

Furniture and office equipment

 

 

3,135

 

 

 

2,802

 

Leasehold improvements

 

 

6,069

 

 

 

5,748

 

Property and equipment, gross

 

 

18,234

 

 

 

16,880

 

Less: accumulated depreciation and amortization

 

 

(11,571

)

 

 

(8,859

)

Property and equipment, net

 

$

6,663

 

 

$

8,021

 

 
Summary of accrued expenses and other current liabilities

Accrued expenses and other current liabilities consisted of the following:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Accrued compensation and benefits

 

$

25,166

 

 

$

20,892

 

Accrued expenses

 

 

10,649

 

 

 

7,956

 

Accrued expenses and other current liabilities

 

$

35,815

 

 

$

28,848

 
v3.24.0.1
Business Combinations (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combinations [Abstract]  
Summary of fair value of assets acquired and liabilities (Details)

The following table summarizes the fair value of assets acquired and liabilities assumed:

 

 

July 19, 2021

 

 

 

(in thousands)

 

Cash and cash equivalent

 

$

31,240

 

Other current assets

 

 

943

 

Intangible assets

 

 

45,500

 

Goodwill

 

 

224,852

 

Other noncurrent assets

 

 

2,692

 

Total assets acquired

 

 

305,227

 

Current liabilities

 

 

4,272

 

Noncurrent liabilities

 

 

1,501

 

Total liabilities assumed

 

 

5,773

 

Total purchase consideration

 

$

299,454

 

 
Summary of components of identifiable intangible assets acquired and their estimated useful lives The following table presents components of the identified intangible assets acquired and their estimated useful lives as of the date of acquisition:

 

 

Fair Value

 

 

Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

41,300

 

 

 

5.0

 

Customer relationships

 

 

4,200

 

 

 

6.0

 

Total intangible assets acquired

 

$

45,500

 

 

 

 

 
Summary of Unaudited Pro Forma Information

The unaudited pro forma results do not reflect any cost saving synergies from operating efficiencies or the effect of the incremental costs incurred from integrating Vdoo. Accordingly, these unaudited pro forma results are presented for informational

purposes only and are not necessarily indicative of what the actual results of operations of the combined company would have been if the acquisition of Vdoo had occurred at the beginning of 2020.

 

 

Year Ended December 31, 2021

 

 

 

(in thousands)

 

Revenue

 

$

207,824

 

Net loss

 

$

89,939

 

 
v3.24.0.1
Goodwill and Intangible Assets, Net (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Summary of changes in goodwill

The following table represents the changes to goodwill:

 

 

Carrying Amount

 

 

 

(in thousands)

 

Balance as of December 31, 2021

 

$

247,776

 

Purchase price adjustment

 

 

179

 

Balance as of December 31, 2022 and 2023

 

$

247,955

 

 
Summary of intangible assets

Intangible assets consisted of the following as of December 31, 2023:

 

 

Gross Carrying Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Amount

 

 

Weighted-
Average
Remaining
Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

50,347

 

 

$

(27,779

)

 

$

22,568

 

 

 

2.3

 

Customer relationships

 

 

5,541

 

 

 

(2,786

)

 

 

2,755

 

 

 

3.1

 

Other intangible assets

 

 

1,132

 

 

 

(687

)

 

 

445

 

 

 

0.9

 

Total

 

$

57,020

 

 

$

(31,252

)

 

$

25,768

 

 

 

 
Intangible assets consisted of the following as of December 31, 2022:

 

 

Gross Carrying Amount

 

 

Accumulated
Amortization

 

 

Net Carrying Amount

 

 

Weighted-
Average
Remaining
Useful Life

 

 

 

(in thousands)

 

 

(in years)

 

Developed technology

 

$

50,347

 

 

$

(17,434

)

 

$

32,913

 

 

 

3.3

 

Customer relationships

 

 

5,541

 

 

 

(1,840

)

 

 

3,701

 

 

 

4.1

 

Other intangible assets

 

 

1,132

 

 

 

(202

)

 

 

930

 

 

 

1.9

 

Total

 

$

57,020

 

 

$

(19,476

)

 

$

37,544

 

 

 

 

 
Summary of expected future amortization expenses by year related to the intangible assets

The expected future amortization expenses by year related to the intangible assets as of December 31, 2023 are as follows:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

11,034

 

2025

 

 

9,110

 

2026

 

 

5,241

 

2027

 

 

383

 

Total

 

$

25,768

 
v3.24.0.1
Leases (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Components of Operating Lease Expense

Components of operating lease expense were as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Operating lease cost

 

$

9,144

 

 

$

7,682

 

Short-term lease cost

 

 

571

 

 

 

527

 

Variable lease cost

 

 

398

 

 

 

377

 

Total operating lease cost

 

$

10,113

 

 

$

8,586

 

 
Supplementary Cash Flow Information Related to Operating Leases

Supplementary cash flow information related to operating leases was as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Cash paid for operating leases

 

$

8,453

 

 

$

7,546

 

ROU assets obtained in exchange for new operating lease liabilities

 

$

2,867

 

 

$

3,567

 

Adjustment to ROU assets upon modification of existing lease

 

$

3,415

 

 

$

2,393

 

 
Schedule of Maturities of Operating Lease Liabilities

As of December 31, 2023, the weighted-average discount rate is 3.3% and the weighted-average remaining term is 2.9 years. Maturities of the Company’s operating lease liabilities as of December 31, 2023 were as follows:

 

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

8,895

 

2025

 

 

7,988

 

2026

 

 

4,716

 

2027

 

 

1,628

 

2028

 

 

156

 

Total operating lease payments

 

 

23,383

 

Less: imputed interest

 

 

(1,157

)

Total operating lease liabilities

 

$

22,226

 

 
v3.24.0.1
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Summary of outstanding non-cancelable purchase obligations

In the normal course of business, the Company enters into non-cancelable purchase commitments with various parties mainly for hosting services, as well as software products and services. As of December 31, 2023, the Company had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows:

 

 

December 31, 2023

 

 

 

(in thousands)

 

Year Ending December 31,

 

 

 

2024

 

$

16,346

 

2025

 

 

16,233

 

2026

 

 

108

 

Total

 

$

32,687

 

 
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of ordinary shares reserved for future issuance

The Company has the following ordinary shares reserved for future issuance:

 

 

December 31, 2023

 

Outstanding share options

 

 

5,110,390

 

Outstanding RSUs

 

 

10,006,997

 

Shares available for future issuance under the 2020 Plan

 

 

14,214,984

 

Shares available for future issuance under ESPP

 

 

4,281,665

 

Total ordinary shares reserved

 

 

33,614,036

 

 
Summary of stock option activity

A summary of share option activity under the Company’s equity incentive plans and related information is as follows:

 

 

Options Outstanding

 

 

 

Outstanding
Share Options

 

 

Weighted-Average Exercise
Price

 

 

Weighted-Average Remaining
Contractual
Life (Years)

 

 

Aggregate
Intrinsic
Value

 

 

 

(in thousands, except share, life and per share data)

 

Balance as of December 31, 2022

 

 

7,205,324

 

 

$

7.88

 

 

 

5.4

 

 

$

101,334

 

Exercised

 

 

(1,899,722

)

 

$

5.31

 

 

 

 

 

$

38,903

 

Forfeited

 

 

(195,212

)

 

$

17.04

 

 

 

 

 

 

 

Balance as of December 31, 2023

 

 

5,110,390

 

 

$

8.49

 

 

 

4.1

 

 

$

134,171

 

Exercisable as of December 31, 2023

 

 

4,434,819

 

 

$

7.07

 

 

 

3.8

 

 

$

122,537

 

 
Summary of restricted ordinary shares

A summary of RSU activity under the Company's equity incentive plan is as follows, including performance-based RSUs with market condition:

 

 

RSUs

 

 

 

Unvested RSUs

 

 

Weighted-Average
Grant Date Fair
Value Per Share

 

Unvested as of December 31, 2022

 

 

7,981,147

 

 

$

26.90

 

Granted

 

 

6,605,426

 

 

$

25.38

 

Vested

 

 

(2,882,729

)

 

$

27.15

 

Forfeited

 

 

(1,696,847

)

 

$

26.35

 

Unvested as of December 31, 2023

 

 

10,006,997

 

 

$

25.91

 

 
Summary of stock-based compensation expense

The share-based compensation expense by line item in the accompanying Consolidated Statements of Operations is summarized as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Cost of revenue: subscription–self-managed and SaaS

 

$

9,784

 

 

$

6,991

 

 

$

4,027

 

Research and development

 

 

32,689

 

 

 

24,664

 

 

 

14,572

 

Sales and marketing

 

 

30,338

 

 

 

22,753

 

 

 

15,256

 

General and administrative

 

 

22,360

 

 

 

14,253

 

 

 

23,094

 

Total share-based compensation expense

 

$

95,171

 

 

$

68,661

 

 

$

56,949

 

 
Employee Share Purchase Plan [Member]  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of valuation assumptions of employee options at grant dates

The Black-Scholes assumptions used to value the purchase rights granted under the ESPP on the first day of the offering period are as follows:

 

 

Year Ended December 31,

 

 

2023

 

2022

 

2021

Expected term (years)

 

0.5

 

0.5

 

0.5

Expected volatility

 

44.4% - 55.1%

 

51.7% - 58.5%

 

56.9% - 64.8%

Risk-free interest rate

 

5.20% - 5.47%

 

0.16% - 3.3%

 

0.1%

Expected dividend yield

 

0.0%

 

0.0%

 

0.0%

 

 
v3.24.0.1
Accumulated Other Comprehensive Income (Loss) (Tables)
 12 Months Ended
Dec. 31, 2023
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]  
Summary of changes in AOCI

The following table summarizes the changes in AOCI by component, net of tax, during the periods presented:

 

 

Net Unrealized
Losses on
Available-for-Sale
Marketable
Securities

 

 

Net Unrealized
Gains (Losses) on
Derivatives
Designated as
Hedging
Instruments

 

 

Total

 

 

 

(in thousands)

 

Balance as of December 31, 2021

 

$

(264

)

 

$

875

 

 

$

611

 

Other comprehensive loss before reclassifications

 

 

(1,428

)

 

 

(6,109

)

 

 

(7,537

)

Net realized losses (gains) reclassified from AOCI

 

 

(2

)

 

 

4,156

 

 

 

4,154

 

Other comprehensive loss

 

 

(1,430

)

 

 

(1,953

)

 

 

(3,383

)

Balance as of December 31, 2022

 

 

(1,694

)

 

 

(1,078

)

 

 

(2,772

)

Other comprehensive income (loss) before reclassifications

 

 

1,414

 

 

 

(2,617

)

 

 

(1,203

)

Net realized losses reclassified from AOCI

 

 

156

 

 

 

4,832

 

 

 

4,988

 

Other comprehensive income

 

 

1,570

 

 

 

2,215

 

 

 

3,785

 

Balance as of December 31, 2023

 

$

(124

)

 

$

1,137

 

 

$

1,013

 
v3.24.0.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Summary of components of the net loss before the provision for income taxes

The components of the net loss before income taxes were as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Israel

 

$

(73,560

)

 

$

(99,434

)

 

$

(38,900

)

Foreign

 

 

19,044

 

 

 

14,688

 

 

 

(28,725

)

Total

 

$

(54,516

)

 

$

(84,746

)

 

$

(67,625

)

 
Summary of provision for income taxes

Income tax expense (benefit) was as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands)

 

Current:

 

 

 

 

 

 

 

 

 

Israel

 

$

—

 

 

$

—

 

 

$

(369

)

Foreign

 

 

5,753

 

 

 

3,967

 

 

 

549

 

Total current income tax expense

 

 

5,753

 

 

 

3,967

 

 

 

180

 

Deferred:

 

 

 

 

 

 

 

 

 

Israel

 

 

—

 

 

 

—

 

 

 

(371

)

Foreign

 

 

987

 

 

 

1,471

 

 

 

(3,231

)

Total deferred income tax expense (benefit)

 

 

987

 

 

 

1,471

 

 

 

(3,602

)

Income tax expense (benefit)

 

$

6,740

 

 

$

5,438

 

 

$

(3,422

)

 
Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense

A reconciliation of the Company’s statutory income tax rate to effective income tax rate is as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Theoretical income tax benefit

 

 

23

%

 

 

23

%

 

 

23

%

PTE

 

 

(15

)

 

 

(13

)

 

 

(5

)

Foreign tax rate differentials

 

 

2

 

 

 

3

 

 

 

1

 

Share-based compensation

 

 

(2

)

 

 

(6

)

 

 

(4

)

Change in valuation allowance

 

 

(16

)

 

 

(13

)

 

 

(6

)

Unrecognized tax benefits

 

 

(1

)

 

 

—

 

 

 

(3

)

Acquisition costs

 

 

(1

)

 

 

(1

)

 

 

(1

)

Other

 

 

(2

)

 

 

1

 

 

 

—

 

Total

 

 

(12

)%

 

 

(6

)%

 

 

5

%

 
Summary of components of the Company's deferred tax assets and liabilities

The following table presents the significant components of the Company’s deferred tax assets and liabilities:

 

 

December 31,

 

 

 

2023

 

 

2022

 

 

 

(in thousands)

 

Deferred tax assets:

 

 

 

 

 

 

Net operating loss carryforwards

 

$

20,070

 

 

$

16,336

 

Research and development expenses

 

 

7,843

 

 

 

8,669

 

Accruals and reserves

 

 

971

 

 

 

1,580

 

Share-based compensation

 

 

13,024

 

 

 

7,436

 

Deferred revenue

 

 

2,403

 

 

 

2,217

 

Operating lease liabilities

 

 

1,602

 

 

 

2,406

 

Gross deferred tax assets

 

 

45,913

 

 

 

38,644

 

Valuation allowance

 

 

(31,585

)

 

 

(22,690

)

Total deferred tax assets

 

 

14,328

 

 

 

15,954

 

Deferred tax liabilities:

 

 

 

 

 

 

Intangible assets

 

 

(2,997

)

 

 

(4,297

)

Deferred contract acquisition costs

 

 

(5,089

)

 

 

(3,917

)

Operating lease ROU assets

 

 

(1,563

)

 

 

(2,236

)

Share-based compensation

 

 

(947

)

 

 

(632

)

Property and equipment

 

 

(155

)

 

 

(318

)

Gross deferred tax liabilities

 

 

(10,751

)

 

 

(11,400

)

Net deferred tax assets

 

$

3,577

 

 

$

4,554

 

 
Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions

A reconciliation of the beginning and ending balance of total unrecognized tax benefits is as follows:

 

 

Unrecognized Tax Benefits

 

 

 

(in thousands)

 

Balance - December 31, 2020

 

$

2,738

 

Increase related to prior years’ tax positions

 

 

86

 

Decrease related to prior years’ tax positions

 

 

(2

)

Increase related to current year’s tax positions

 

 

2,039

 

Decrease related to settlements with tax authorities

 

 

(446

)

Decrease due to lapse of statutes of limitations

 

 

(19

)

Balance - December 31, 2021

 

 

4,396

 

Increase related to prior years’ tax positions

 

 

289

 

Increase related to current year’s tax positions

 

 

176

 

Decrease due to lapse of statutes of limitations

 

 

(38

)

Balance - December 31, 2022

 

 

4,823

 

Increase related to prior years’ tax positions

 

 

149

 

Decrease related to prior years’ tax positions

 

 

(24

)

Increase related to current year’s tax positions

 

 

464

 

Decrease due to lapse of statutes of limitations

 

 

(13

)

Balance - December 31, 2023

 

$

5,399

 

 
v3.24.0.1
Net Loss Per Share (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Summary of computation of basic and diluted net loss per share

The following table sets forth the computation of basic and diluted net loss per share for the periods presented:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

 

 

(in thousands, except share and per share data)

 

Numerator:

 

 

 

 

 

 

 

 

 

Net loss

 

$

(61,256

)

 

$

(90,184

)

 

$

(64,203

)

Denominator:

 

 

 

 

 

 

 

 

 

Weighted-average shares used in computing net loss per share, basic and diluted

 

 

103,317,759

 

 

 

99,243,894

 

 

 

94,783,082

 

Net loss per share, basic and diluted

 

$

(0.59

)

 

$

(0.91

)

 

$

(0.68

)

 
Summary of shares excluded from the computation of diluted net loss per share attributable to ordinary shareholders

The potential shares of ordinary shares that were excluded from the computation of diluted net loss per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive are as follows:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Outstanding share options

 

 

6,264,883

 

 

 

8,268,711

 

 

 

11,229,241

 

Unvested RSUs

 

 

9,298,748

 

 

 

6,223,077

 

 

 

2,331,607

 

Share purchase rights under the ESPP

 

 

155,276

 

 

 

101,787

 

 

 

79,450

 

Issuable ordinary shares related to business combination

 

 

27,505

 

 

 

104,715

 

 

 

140,385

 

Total

 

 

15,746,412

 

 

 

14,698,290

 

 

 

13,780,683

 
v3.24.0.1
Summary of Significant Accounting Policies - Additional Information (Detail)
 12 Months Ended
Dec. 31, 2023
USD ($)
Segment
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Deferred contract acquisition cost impairment losses $ 0 $ 0 $ 0
Goodwill impairment charges 0 0 0
Long-lived assets impairment charges 0 0 0
Advertising costs 10,600,000 8,600,000 5,800,000
Interest income $ 22,100,000 $ 5,900,000 $ 1,500,000
Number of operating segments | Segment 1    
Number of reportable segments | Segment 1    
Accounts Receivable Member      
Concentration risk, Number of customer no single customer no single customer  
Total Revenue Member      
Concentration risk, Number of customer No single customer No single customer  
Customer Concentration Risk Member | Minimum Member | Accounts Receivable Member      
Percentage of account receivable 10.00% 10.00%  
Customer Concentration Risk Member | Minimum Member | Total Revenue Member      
Percentage of account receivable 10.00% 10.00%  
v3.24.0.1
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Property and Equipment (Detail)
Dec. 31, 2023
Computer and software Member  
Property Plant And Equipment Line Items  
Property and equipment useful life 3 years
Furniture and office equipment Member | Maximum Member  
Property Plant And Equipment Line Items  
Property and equipment useful life 7 years
Furniture and office equipment Member | Minimum Member  
Property Plant And Equipment Line Items  
Property and equipment useful life 3 years
Leasehold improvements Member  
Property Plant And Equipment Line Items  
Property, Plant, and Equipment, Useful Life, Term, Description [Extensible Enumeration] us-gaap:UsefulLifeShorterOfTermOfLeaseOrAssetUtilityMember
v3.24.0.1
Summary of Significant Accounting Policies - Summary of Estimated Useful Lives of the Company's Intangible Assets (Detail)
Dec. 31, 2023
Developed technology Member | Maximum Member  
Intangible Assets Line items  
Finite Lived Intangible Asset Useful Life 6 years
Developed technology Member | Minimum Member  
Intangible Assets Line items  
Finite Lived Intangible Asset Useful Life 3 years
Customer relationships Member | Maximum Member  
Intangible Assets Line items  
Finite Lived Intangible Asset Useful Life 6 years
Customer relationships Member | Minimum Member  
Intangible Assets Line items  
Finite Lived Intangible Asset Useful Life 3 years
Other intangible assets Member  
Intangible Assets Line items  
Finite Lived Intangible Asset Useful Life 3 years
v3.24.0.1
Summary of Significant Accounting Policies - Summary of Long Lived Assets by Geographic Region (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Revenues from External Customers and Long-Lived Assets Line Items    
Total long lived assets $ 29,090 $ 32,633
United States    
Revenues from External Customers and Long-Lived Assets Line Items    
Total long lived assets 8,566 11,569
Israel    
Revenues from External Customers and Long-Lived Assets Line Items    
Total long lived assets 15,888 17,887
India    
Revenues from External Customers and Long-Lived Assets Line Items    
Total long lived assets 4,054 2,246
Rest of world Member    
Revenues from External Customers and Long-Lived Assets Line Items    
Total long lived assets $ 582 $ 931
v3.24.0.1
Revenue Recognition - Summary of Table Presents Revenue as Follows (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 349,886 $ 280,040 $ 206,683
Sale revenue [Member] | Product Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 100.00% 100.00% 100.00%
Subscription      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 210,867 $ 181,802 $ 140,398
Subscription | Sale revenue [Member] | Product Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 60.00% 65.00% 68.00%
Selfmanaged Subscription [Member]      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 230,560 $ 200,390 $ 157,035
Selfmanaged Subscription [Member] | Sale revenue [Member] | Product Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 66.00% 72.00% 76.00%
License [Member]      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 19,693 $ 18,588 $ 16,637
License [Member] | Sale revenue [Member] | Product Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 6.00% 7.00% 8.00%
SaaS [Member]      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 119,326 $ 79,650 $ 49,648
SaaS [Member] | Sale revenue [Member] | Product Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 34.00% 28.00% 24.00%
v3.24.0.1
Revenue Recognition - Summary of Revenue by Region Based on The Shipping Address of Customers as Follows (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 349,886 $ 280,040 $ 206,683
Revenue Benchmark [Member] | Geographic Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 100.00% 100.00% 100.00%
UNITED STATES      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 215,605 $ 176,334 $ 129,503
UNITED STATES | Revenue Benchmark [Member] | Geographic Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 62.00% 63.00% 63.00%
ISRAEL      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 9,332 $ 6,893 $ 4,543
ISRAEL | Revenue Benchmark [Member] | Geographic Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 3.00% 2.00% 2.00%
Rest of world [Member]      
Disaggregation of Revenue [Line Items]      
Total subscription revenue $ 124,949 $ 96,813 $ 72,637
Rest of world [Member] | Revenue Benchmark [Member] | Geographic Concentration Risk [Member]      
Disaggregation of Revenue [Line Items]      
Percentage of revenue 35.00% 35.00% 35.00%
v3.24.0.1
Revenue Recognition - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Disaggregation of Revenue [Line Items]        
Deferred Revenue   $ 175.7 $ 147.1 $ 102.8
Revenue Recognized from beginning deferred revenue $ 158.3 $ 129.1 $ 83.8  
Revenue, Remaining Performance Obligation $ 259.8      
Revenue, Remaining Performance Obligation, Percentage 84.00%      
Billed Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, Remaining Performance Obligation $ 214.1      
Unbilled Revenues [Member]        
Disaggregation of Revenue [Line Items]        
Revenue, Remaining Performance Obligation $ 45.7      
v3.24.0.1
Revenue Recognition - Additional Information (Detail 1)
Dec. 31, 2023
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]  
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period 12 months
v3.24.0.1
Revenue Recognition - Additional Information (Details 2) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Deferred Policy Acquisition Costs Disclosures [Abstract]      
Amortization of deferred contract acquisition costs $ 10.2 $ 7.2 $ 4.6
v3.24.0.1
Short-Term Investments - Additional Information (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale [Line Items]    
Short-term investments $ 460,245 $ 397,605
Allowance for credit losses 0 0
Bank deposits    
Debt Securities, Available-for-Sale [Line Items]    
Short-term investments $ 81,100 $ 96,000
v3.24.0.1
Short-Term Investments - Summary of Marketable Securities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Schedule of short term investments Line Items    
Amortized Cost $ 379,253 $ 303,251
Gross Unrealized Gains 495 73
Gross Unrealized Losses (615) (1,753)
Estimated Fair Value 379,133 301,571
Certificates of deposit    
Schedule of short term investments Line Items    
Amortized Cost 2,455 2,204
Gross Unrealized Gains 0 0
Gross Unrealized Losses (21) (51)
Estimated Fair Value 2,434 2,153
Commercial paper    
Schedule of short term investments Line Items    
Amortized Cost 8,927 38,164
Gross Unrealized Gains 0 2
Gross Unrealized Losses (6) (137)
Estimated Fair Value 8,921 38,029
Corporate debt securities    
Schedule of short term investments Line Items    
Amortized Cost 162,515 137,191
Gross Unrealized Gains 234 41
Gross Unrealized Losses (302) (859)
Estimated Fair Value 162,447 136,373
Municipal securities    
Schedule of short term investments Line Items    
Amortized Cost 22,263 38,543
Gross Unrealized Gains 9 23
Gross Unrealized Losses (36) (222)
Estimated Fair Value 22,236 38,344
Government and agency debt    
Schedule of short term investments Line Items    
Amortized Cost 183,093 87,149
Gross Unrealized Gains 252 7
Gross Unrealized Losses (250) (484)
Estimated Fair Value $ 183,095 $ 86,672
v3.24.0.1
Short-Term Investments - Summary of Company's Marketable Securities by Contractual Maturities (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Debt Securities, Available-for-Sale, Fair Value, Fiscal Year Maturity [Abstract]  
Due in 1 year or less $ 273,273
Due in 1 year through 2 years 105,860
Total $ 379,133
v3.24.0.1
Short-Term Investments - Summary of Presents Fair Value and Gross Unrealized Losses of the Company's Marketable Securities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months $ 192,501 $ 254,648
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 40,518 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 233,019 254,648
Gross Unrealized Losses Less Than 12 Months (370) (1,753)
Gross Unrealized Losses 12 Months or Greater (245) 0
Gross Unrealized Losses Total (615) (1,753)
Certificates of deposit    
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months 250 2,153
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 2,175 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 2,425 2,153
Gross Unrealized Losses Less Than 12 Months 0 (51)
Gross Unrealized Losses 12 Months or Greater (21) 0
Gross Unrealized Losses Total (21) (51)
Commercial paper    
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months 8,921 31,838
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 0 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 8,921 31,838
Gross Unrealized Losses Less Than 12 Months (6) (137)
Gross Unrealized Losses 12 Months or Greater 0 0
Gross Unrealized Losses Total (6) (137)
Corporate debt securities    
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months 77,023 123,540
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 25,156 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 102,179 123,540
Gross Unrealized Losses Less Than 12 Months (177) (859)
Gross Unrealized Losses 12 Months or Greater (125) 0
Gross Unrealized Losses Total (302) (859)
Municipal securities    
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months 7,071 25,336
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 4,215 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 11,286 25,336
Gross Unrealized Losses Less Than 12 Months (6) (222)
Gross Unrealized Losses 12 Months or Greater (30) 0
Gross Unrealized Losses Total (36) (222)
Government and agency debt    
Debt Securities, Available-for-Sale, Unrealized Loss Position Line Items    
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, Less than 12 Months 99,236 71,781
Debt Securities, Available-for-Sale, Continuous Unrealized Loss Position, 12 Months or Longer 8,972 0
Debt Securities, Available-for-Sale, Unrealized Loss Position 108,208 71,781
Gross Unrealized Losses Less Than 12 Months (181) (484)
Gross Unrealized Losses 12 Months or Greater (69) 0
Gross Unrealized Losses Total $ (250) $ (484)
v3.24.0.1
Fair Value Measurements - Summary of Fair Value by Balance Sheet Grouping (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities $ 379,133 $ 301,571
Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 40,646 9,562
Total financial assets 40,646 9,562
Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 5,498  
Marketable securities 379,133 301,571
Total financial assets 386,067 301,624
Total financial liabilities 57 1,477
Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 46,144 9,562
Marketable securities 379,133 301,571
Total financial assets 426,713 311,186
Total financial liabilities 57 1,477
Prepaid Expenses and Other Current Assets [Member] | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Restricted bank deposits included in assets 12 12
Prepaid Expenses and Other Current Assets [Member] | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Restricted bank deposits included in assets 12 12
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contract, Asset, Fair Value Disclosure 1,189 20
Prepaid Expenses and Other Current Assets [Member] | Designated as Hedging Instrument [Member] | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contract, Asset, Fair Value Disclosure 1,189 20
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contract, Asset, Fair Value Disclosure 235 21
Prepaid Expenses and Other Current Assets [Member] | Not Designated as Hedging Instrument [Member] | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contract, Asset, Fair Value Disclosure 235 21
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 52 1,098
Accrued Expenses And Other Current Liabilites [Member] | Designated as Hedging Instrument [Member] | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 52 1,098
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 5 379
Accrued Expenses And Other Current Liabilites [Member] | Not Designated as Hedging Instrument [Member] | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign Currency Contracts, Liability, Fair Value Disclosure 5 379
Money market funds | Level 1    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 40,646 9,562
Money market funds | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 40,646 9,562
Certificates of deposit | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 2,434 2,153
Certificates of deposit | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 2,434 2,153
Commercial paper | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 8,921 38,029
Commercial paper | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 8,921 38,029
Corporate debt securities | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 162,447 136,373
Corporate debt securities | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 162,447 136,373
Municipal securities | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 22,236 38,344
Municipal securities | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Marketable securities 22,236 38,344
Government and agency debt | Level 2    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 5,498  
Marketable securities 183,095 86,672
Government and agency debt | Fair Value    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 5,498  
Marketable securities $ 183,095 $ 86,672
v3.24.0.1
Fair Value Measurements - Additional Information (Detail) - Level 3 - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total financial assets $ 0 $ 0
Total financial liabilities $ 0 $ 0
v3.24.0.1
Derivative Financial Instruments and Hedging - Disclosure of Notional Amount of Derivatives By Hedging Designation (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivatives, Fair Value [Line Items]    
Total derivative instruments $ 65,234 $ 60,409
Foreign currency contracts [Member] | Derivatives designated as hedging instruments [Member]    
Derivatives, Fair Value [Line Items]    
Total derivative instruments 46,331 42,854
Foreign currency contracts [Member] | Derivatives not designated as hedging instruments [Member]    
Derivatives, Fair Value [Line Items]    
Total derivative instruments $ 18,903 $ 17,555
v3.24.0.1
Derivative Financial Instruments and Hedging - Derivative Instruments, Gain (Loss) (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (4,832) $ (4,156) $ 872
Derivatives not designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings (593) (527) 345
Foreign Currency Contracts [Member] | Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ 0 $ 8 $ 8
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Nonoperating Income (Expense) Nonoperating Income (Expense) Nonoperating Income (Expense)
Foreign Currency Contracts [Member] | Derivatives not designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (593) $ (527) $ 345
Foreign Currency Contracts [Member] | Subscription–self-managed and SaaS [Member] | Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (359) $ (314) $ 74
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Cost of Revenue Cost of Revenue Cost of Revenue
Foreign Currency Contracts [Member] | Research and development [Member] | Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (2,982) $ (2,660) $ 504
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Research and Development Expense Research and Development Expense Research and Development Expense
Foreign Currency Contracts [Member] | Sales and marketing [Member] | Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (693) $ (540) $ 120
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] Selling and Marketing Expense Selling and Marketing Expense Selling and Marketing Expense
Foreign Currency Contracts [Member] | General and administrative [Member] | Derivatives designated as hedging instruments [Member]      
Derivative Instruments, Gain (Loss) [Line Items]      
Total gains (losses) recognized in earnings $ (798) $ (650) $ 166
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] General and Administrative Expense General and Administrative Expense General and Administrative Expense
v3.24.0.1
Consolidated Balance Sheet Components - Summary of Property and Equipment (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 18,234 $ 16,880
Less: accumulated depreciation and amortization (11,571) (8,859)
Property and equipment, net 6,663 8,021
Computer and software    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 9,030 8,330
Furniture and office equipment Member    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 3,135 2,802
Leasehold improvements Member    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 6,069 $ 5,748
v3.24.0.1
Consolidated Balance Sheet Components (Additional Information) (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Balance Sheet Related Disclosures [Abstract]      
Depreciation and amortization expense $ 3.5 $ 3.1 $ 2.8
v3.24.0.1
Consolidated Balance Sheet Components - Summary of Accrued Expenses and Other Current Liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Balance Sheet Related Disclosures [Abstract]    
Accrued compensation and benefits $ 25,166 $ 20,892
Accrued expenses 10,649 7,956
Accrued expenses and other current liabilities $ 35,815 $ 28,848
v3.24.0.1
Business Combinations - Additional Information (Detail)
$ in Thousands
 1 Months Ended 12 Months Ended
Jul. 19, 2021
USD ($)
Installment
shares
Aug. 31, 2021
USD ($)
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Business Acquisition [Line Items]          
Payments to Acquire Businesses, Net of Cash Acquired     $ 0 $ 179 $ 195,752
Vdoo Connected Trust Ltd. [Member]          
Business Acquisition [Line Items]          
Business acquistion percentage of voting capital obtained 100.00%        
Business acquisition total purchase consideration $ 299,500        
Fair value of ordinary shares issued as consideration for business combination $ 81,800        
Retention bonus payment period | Installment 3        
RSU service period 4 years        
Payments to acquire business $ 217,700        
Business combination purchase consideration settled through share issue | shares 1,823,266        
Business combination holdback agreements additional shares issuable | shares 110,932        
Business Combination Retention Bonus $ 10,000        
Business combination total cash payments under holdback agreements 13,200        
Net assets acquired 305,227        
Vdoo Connected Trust Ltd. [Member] | Restricted Stock Units (RSUs) [Member]          
Business Acquisition [Line Items]          
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned $ 30,000        
Upswift Ltd [Member]          
Business Acquisition [Line Items]          
Payments to Acquire Businesses, Net of Cash Acquired   $ 9,500      
Identified intangible asset   4,300      
Goodwill, Acquired During Period   5,800      
Net liabilities assumed   $ 600      
Maximum Member | Vdoo Connected Trust Ltd. [Member]          
Business Acquisition [Line Items]          
Holdback Release Period 2 years        
Minimum Member | Vdoo Connected Trust Ltd. [Member]          
Business Acquisition [Line Items]          
Holdback Release Period 1 year        
General and Administrative Expense [Member] | Vdoo Connected Trust Ltd. [Member]          
Business Acquisition [Line Items]          
Business Combination, Acquisition Related Costs         $ 700
v3.24.0.1
Business Combinations - Summary of fair value of assets acquired and liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jul. 19, 2021
Business Acquisition [Line Items]        
Goodwill $ 247,955 $ 247,955 $ 247,776  
Vdoo Connected Trust Ltd. [Member]        
Business Acquisition [Line Items]        
Cash and cash equivalent       $ 31,240
Other current assets       943
Intangible assets       45,500
Goodwill       224,852
Other noncurrent assets       2,692
Total assets acquired       305,227
Current liabilites       4,272
Noncurrent liabilities       1,501
Total liabilities assumed       5,773
Total Purchase Consideration       $ 299,454
v3.24.0.1
Business Combination - Summary of Components of Identifiable Intangible Assets Acquired and their Estimated Useful Lives (Details) - Vdoo Connected Trust Ltd. [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Developed Technology Rights [Member]  
Business Acquisition [Line Items]  
Useful Life 5 years
Customer Relationships [Member]  
Business Acquisition [Line Items]  
Useful Life 6 years
Portion At Fair Value Disclosure [Member]  
Business Acquisition [Line Items]  
Fair Value $ 45,500
Portion At Fair Value Disclosure [Member] | Developed Technology Rights [Member]  
Business Acquisition [Line Items]  
Fair Value 41,300
Portion At Fair Value Disclosure [Member] | Customer Relationships [Member]  
Business Acquisition [Line Items]  
Fair Value $ 4,200
v3.24.0.1
Business Combination - Summary of Unaudited Pro Forma Information (Details) - Vdoo Connected Trust Ltd. [Member]
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Business Acquisition [Line Items]  
Revenue $ 207,824
Net loss $ 89,939
v3.24.0.1
Goodwill and Intangible Assets, Net - Summary of changes in goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill and Intangible Assets Disclosure [Abstract]    
Goodwill, Beginning Balance $ 247,955 $ 247,776
Purchase price adjustment 0 179
Goodwill, Ending Balance $ 247,955 $ 247,955
v3.24.0.1
Goodwill and Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Intangible Assets Line items    
Gross Fair Value $ 57,020 $ 57,020
Accumulated Amortization (31,252) (19,476)
Net Book Value 25,768 37,544
Developed technology Member    
Intangible Assets Line items    
Gross Fair Value 50,347 50,347
Accumulated Amortization (27,779) (17,434)
Net Book Value $ 22,568 $ 32,913
Weighted- Average Remaining Useful Life 2 years 3 months 18 days 3 years 3 months 18 days
Customer relationships Member    
Intangible Assets Line items    
Gross Fair Value $ 5,541 $ 5,541
Accumulated Amortization (2,786) (1,840)
Net Book Value $ 2,755 $ 3,701
Weighted- Average Remaining Useful Life 3 years 1 month 6 days 4 years 1 month 6 days
Other intangible assets Member    
Intangible Assets Line items    
Gross Fair Value $ 1,132 $ 1,132
Accumulated Amortization (687) (202)
Net Book Value $ 445 $ 930
Weighted- Average Remaining Useful Life 10 months 24 days 1 year 10 months 24 days
v3.24.0.1
Goodwill and Intangible Assets, Net - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Intangible Assets Line items      
Amortization expenses for intangible assets $ 11.8 $ 11.6 $ 5.9
v3.24.0.1
Goodwill and Intangible Assets, Net - Summary of Expected Future Amortization Expenses by Year Related to the Intangible Assets (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]    
2024 $ 11,034  
2025 9,110  
2026 5,241  
2027 383  
Total $ 25,768 $ 37,544
v3.24.0.1
Leases - Components of Operating Lease Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Lease, Cost [Abstract]    
Operating lease cost $ 9,144 $ 7,682
Short-term lease cost 571 527
Variable lease cost 398 377
Total operating lease cost $ 10,113 $ 8,586
v3.24.0.1
Leases - Additional Information (Detail)
Dec. 31, 2023
Lessee, Lease, Description [Line Items]  
Operating Lease, Weighted Average Remaining Lease Term 2 years 10 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent 3.30%
v3.24.0.1
Leases - Supplemental Cash Flow Information related to Operating Lease (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Cash paid for operating leases $ 8,453 $ 7,546
ROU assets obtained in exchange for new operating lease liabilities 2,867 3,567
Adjustment to ROU assets upon modification of existing lease $ 3,415 $ 2,393
v3.24.0.1
Leases - Schedule of Maturities of Operating Lease Liabilities (Detail)
$ in Thousands
Dec. 31, 2023
USD ($)
Lessee, Operating Lease, Liability, to be Paid, Fiscal Year Maturity [Abstract]  
2024 $ 8,895
2025 7,988
2026 4,716
2027 1,628
2028 156
Total operating lease payments 23,383
Less: imputed interest (1,157)
Total operating lease liabilities $ 22,226
v3.24.0.1
Commitments and Contingencies - Summary of Outstanding Non-cancelable Purchase Obligations (Detail)
$ in Thousands
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 16,346
2025 16,233
2026 108
Total $ 32,687
v3.24.0.1
Commitments and Contingencies - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Sep. 30, 2022
Loss contingency estimate of possible loss   $ 2.6
Grants [Member] | Israeli Innovation Authority [Member]    
Maximum additional payments as a grant recipient $ 6.0  
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Additional Information (Detail)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended
Jan. 01, 2023
shares
Sep. 30, 2020
shares
Aug. 31, 2020
shares
Dec. 31, 2023
USD ($)
$ / shares
Dec. 31, 2022
USD ($)
$ / shares
Dec. 31, 2021
USD ($)
$ / shares
Dec. 31, 2023
₪ / shares
Dec. 31, 2023
USD ($)
shares
Dec. 31, 2022
₪ / shares
shares
Preferred stock authorized               50,000,000 50,000,000
Ordinary shares authorized               500,000,000 500,000,000
Preferred stock par value | ₪ / shares             ₪ 0.01   ₪ 0.01
Common stock par value | ₪ / shares             ₪ 0.01   ₪ 0.01
Dividends declared | $ / shares       $ 0          
Total intrinsic value of options exercised | $       $ 38,903 $ 44,800 $ 118,700      
Unrecognized share-based compensation cost | $               $ 241,600  
Unrecognized share based compensation cost expected to be recognised period       2 years 9 months 18 days          
2020 Plan [Member]                  
Share-based payment arrangement, increase of authorized shares 5,819,265                
Share options expiration period   10 years              
Ordinary shares reserved for grants of awards   9,100,000              
Maximum number of shares to be added to the share based compensation arrangement plans   15,309,367              
Share-based payment arrangement, increase of authorized shares   9,100,000              
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares   5.00%              
Employee Share Purchase Plan [Member]                  
Share-based payment arrangement, increase of authorized shares 1,009,633                
Ordinary shares reserved for grants of awards     2,100,000            
Share-based payment arrangement, increase of authorized shares     2,100,000            
Percentage of eligible compensation     15.00%            
Maximum number of shares per employee     1,250            
Purchase price of the shares on the offering period percentage     85.00%            
Employee share purchase plan offering date     March 1 and September 1            
Share based payment arrangement plan increase of authorized shares as a percentage of outstanding shares     1.00%            
Employee Stock Option | 2011 Plan [Member]                  
Share options vesting period   5 years              
Share options expiration period   10 years              
Restricted Stock Units (RSUs) [Member]                  
Fair value of RSU | $       $ 75,200 $ 22,900 $ 23,400      
Weighted Average Grant Date Fair Value Per Share, Granted | $ / shares       $ 25.38 $ 21.4 $ 45.97      
RSUs unvested               10,006,997 7,981,147
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Summary of Ordinary Shares Reserved for Future Issuance (Detail)
Dec. 31, 2023
shares
Class of Stock [Line Items]  
Common Stock Reserved for Future Issuance 33,614,036
2020 Plan [Member]  
Class of Stock [Line Items]  
Common Stock Reserved for Future Issuance 14,214,984
Employee Stock Purchase Plan [Member]  
Class of Stock [Line Items]  
Common Stock Reserved for Future Issuance 4,281,665
Employee Stock Option  
Class of Stock [Line Items]  
Common Stock Reserved for Future Issuance 5,110,390
Restricted Stock [Member]  
Class of Stock [Line Items]  
Common Stock Reserved for Future Issuance 10,006,997
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Summary of Stock Option Activity (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Payment Arrangement [Abstract]      
Outstanding Share Options, Beginning balance 7,205,324    
Outstanding Share Options, Exercised (1,899,722)    
Outstanding Share Options, Forfeited (195,212)    
Outstanding Share Options, Ending balance 5,110,390 7,205,324  
Outstanding Share Options, Exercisable 4,434,819    
Weighted Average Exercise Price Per Share, Beginning balance $ 7.88    
Weighted Average Exercise Price Per Share, Exercised 5.31    
Weighted Average Exercise Price Per Share, Forfeited 17.04    
Weighted Average Exercise Price Per Share, Ending balance 8.49 $ 7.88  
Weighted Average Exercise Price Per Share, Exercisable $ 7.07    
Weighted Average Remaining Contractual Life 4 years 1 month 6 days 5 years 4 months 24 days  
Weighted Average Remaining Contractual Life, Exercisable 3 years 9 months 18 days    
Aggregate Intrinsic Value, Beginning balance $ 101,334    
Aggregate Intrinsic Value, Exercised 38,903 $ 44,800 $ 118,700
Aggregate Intrinsic Value, Ending balance 134,171 $ 101,334  
Aggregate Intrinsic Value, Exercisable $ 122,537    
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Summary of Restricted Ordinary Shares (Detail) - Restricted Stock Units (RSUs) [Member] - $ / shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Unvested RSUs, Beginning balance 7,981,147    
Unvested RSUs, Granted 6,605,426    
Unvested RSUs, Vested (2,882,729)    
Unvested RSUs, Forfeited (1,696,847)    
Unvested RSUs, Ending balance 10,006,997 7,981,147  
Weighted Average Grant Date Fair Value Per Share, Beginning balance $ 26.9    
Weighted Average Grant Date Fair Value Per Share, Granted 25.38 $ 21.4 $ 45.97
Weighted Average Grant Date Fair Value Per Share, Vested 27.15    
Weighted Average Grant Date Fair Value Per Share, Forfeited 26.35    
Weighted Average Grant Date Fair Value Per Share, Ending balance $ 25.91 $ 26.9  
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Summary of Valuation Assumptions of Employee Options at the Grant Dates (Details) - Employee Share Purchase Plan [Member]
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Expected term (years) 6 months 6 months 6 months
Expected volatility, Maximum 55.10% 58.50% 64.80%
Expected volatility, Minimum 44.40% 51.70% 56.90%
Risk-free interest rate     0.10%
Risk-free interest rate, Maximum 5.47% 3.30%  
Risk-free interest rate, Minimum 5.20% 0.16%  
Expected dividend yield 0.00% 0.00% 0.00%
v3.24.0.1
Shareholders' Equity and Equity Incentive Plans - Summary of Stock-based Compensation Expense (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation expense $ 95,171 $ 68,661 $ 56,949
Cost of revenue [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation expense 9,784 6,991 4,027
Research and development [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation expense 32,689 24,664 14,572
Sales and marketing [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation expense 30,338 22,753 15,256
General and administrative [Member]      
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]      
Share-based compensation expense $ 22,360 $ 14,253 $ 23,094
v3.24.0.1
Accumulated Other Comprehensive Income (Loss) - Summary of Changes In AOCI (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Changes in Accumulated Other Comprehensive Income [Line items]      
Beginning Balance $ (2,772) $ 611  
Other comprehensive income (loss) before reclassifications (1,203) (7,537)  
Net realized losses reclassified from AOCI 4,988 4,154  
Other comprehensive income (loss), net of tax 3,785 (3,383) $ 239
Ending Balance 1,013 (2,772) 611
Net Unrealized Losses on Available-for-Sale Marketable Securities [Member]      
Changes in Accumulated Other Comprehensive Income [Line items]      
Beginning Balance (1,694) (264)  
Other comprehensive income (loss) before reclassifications 1,414 (1,428)  
Net realized losses reclassified from AOCI 156 (2)  
Other comprehensive income (loss), net of tax 1,570 (1,430)  
Ending Balance (124) (1,694) (264)
Net Unrealized Gains(Losses) on Derivatives Designated as Hedging Instruments [Member]      
Changes in Accumulated Other Comprehensive Income [Line items]      
Beginning Balance (1,078) 875  
Other comprehensive income (loss) before reclassifications (2,617) (6,109)  
Net realized losses reclassified from AOCI 4,832 4,156  
Other comprehensive income (loss), net of tax 2,215 (1,953)  
Ending Balance $ 1,137 $ (1,078) $ 875
v3.24.0.1
Income Taxes - Additional Information (Detail)
$ in Thousands, ₪ in Millions
 12 Months Ended
Dec. 31, 2023
USD ($)
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
Dec. 31, 2023
ILS (₪)
Dec. 31, 2023
USD ($)
Dec. 31, 2020
USD ($)
Operating Loss Carryforwards [Line Items]            
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 23.00% 23.00% 23.00%      
Unrecognized tax benefits   $ 4,823 $ 4,396   $ 5,399 $ 2,738
Unrecognized tax benefits that would impact effective tax rate         3,900  
Increase (decrease) in the valuation allowance $ 8,900 $ 10,100 $ 4,700      
Effective Capital Gains Tax Rate on the Sale of Preferred Intangible Asset 12.00%          
Effective Income Tax Rate Reconciliation, Percent (12.00%) (6.00%) 5.00%      
Undistributed earnings of foreign subsidiaries         6,700  
Unrecognized deferred tax liability, undistributed earnings of foreign subsidiaries         600  
Maximum [Member]            
Operating Loss Carryforwards [Line Items]            
Withholding tax rate for dividends paid 20.00%          
Minimum [Member]            
Operating Loss Carryforwards [Line Items]            
Assets initially purchased from foreign resident | ₪       ₪ 200    
Withholding tax rate for dividends paid 4.00%          
Israel Tax Authority [Member]            
Operating Loss Carryforwards [Line Items]            
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent 23.00%          
Operating Loss Carryforwards         138,800  
Preferred Technology Enterprises [Member]            
Operating Loss Carryforwards [Line Items]            
Effective Income Tax Rate Reconciliation, Percent 12.00%          
Annual Income Percentage Derived From Exports 25.00%          
State and Local Jurisdiction [Member]            
Operating Loss Carryforwards [Line Items]            
Operating Loss Carryforwards         $ 51,500  
v3.24.0.1
Income Taxes - Summary of components of the net loss before the provision for income taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Israel $ (73,560) $ (99,434) $ (38,900)
Foreign 19,044 14,688 (28,725)
Loss before income taxes $ (54,516) $ (84,746) $ (67,625)
v3.24.0.1
Income Taxes - Summary of provision for income taxes (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current:      
Israel $ 0 $ 0 $ (369)
Foreign 5,753 3,967 549
Total current income tax expense 5,753 3,967 180
Deferred:      
Israel 0 0 (371)
Foreign 987 1,471 (3,231)
Total deferred income tax expense (benefit) 987 1,471 (3,602)
Total provision for income taxes $ 6,740 $ 5,438 $ (3,422)
v3.24.0.1
Income Taxes - Summary of reconciliation of the Company's theoretical income tax expense to actual income tax expense (Detail)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Theoretical income tax benefit, Rate 23.00% 23.00% 23.00%
PTE (15.00%) (13.00%) (5.00%)
Foreign tax rate differentials, Rate 2.00% 3.00% 1.00%
Share-based compensation, Rate (2.00%) (6.00%) (4.00%)
Change in valuation allowance, Rate (16.00%) (13.00%) (6.00%)
Unrecognized tax benefits, Rate (1.00%) 0.00% (3.00%)
Acquisition costs, Rate (1.00%) (1.00%) (1.00%)
Other, Rate (2.00%) 1.00% 0.00%
Total, Rate (12.00%) (6.00%) 5.00%
v3.24.0.1
Income Taxes - Summary of components of the Company's deferred tax assets and liabilities (Detail) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Net operating loss carryforwards $ 20,070 $ 16,336
Research and development expenses 7,843 8,669
Accruals and reserves 971 1,580
Share-based compensation 13,024 7,436
Deferred revenue 2,403 2,217
Operating lease liabilities 1,602 2,406
Gross deferred tax assets 45,913 38,644
Valuation allowance (31,585) (22,690)
Total deferred tax assets 14,328 15,954
Deferred tax liabilities:    
Intangible assets (2,997) (4,297)
Deferred contract acquisition costs (5,089) (3,917)
Operating lease ROU assets (1,563) (2,236)
Share-based compensation (947) (632)
Property and equipment (155) (318)
Gross deferred tax liabilities (10,751) (11,400)
Net deferred taxes $ 3,577 $ 4,554
v3.24.0.1
Income Tax - Summary of reconciliation of the beginning and ending balance of total unrecognized tax positions (Detail) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Uncertainties [Abstract]      
Unrecognized Tax Benefits, Beginning Balance $ 4,823 $ 4,396 $ 2,738
Increase Related to Prior Years Tax Positions 149 289 86
Decrease Related to Prior Year's Tax Positions (24)   (2)
Increase Related To Current Years Tax Positions 464 176 2,039
Decrease related to settlements with tax authorities     (446)
Decrease Due To Lapse of Statutes of Limitations (13) (38) (19)
Unrecognized Tax Benefits, Ending Balance $ 5,399 $ 4,823 $ 4,396
v3.24.0.1
Employee Benefit Plans - Additional Information (Detail) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Employee Benefit Plans [Line items]      
Employee benefit plans, matched percentage 50.00%    
Employee benefit plans, percentage of contribution eligible 6.00%    
Employee benefit plans, expenses recorded $ 1.6 $ 1.4 $ 1.1
Israeli Severance Pay [Member]      
Employee Benefit Plans [Line items]      
Employee benefit plans, percentage of eligible monthly deposits 8.33%    
Employee benefit plans, severance expenses $ 6.2 $ 5.5 $ 3.6
v3.24.0.1
Net Loss Per Share - Summary of Computation of Basic and Diluted Net Loss Per Share (Detail) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator:      
Net loss $ (61,256) $ (90,184) $ (64,203)
Denominator:      
Weighted-average shares used in computing net loss per share, basic 103,317,759 99,243,894 94,783,082
Weighted-average shares used in computing net loss per share, diluted 103,317,759 99,243,894 94,783,082
Net loss per share, basic $ (0.59) $ (0.91) $ (0.68)
Net loss per share, diluted $ (0.59) $ (0.91) $ (0.68)
v3.24.0.1
Net Loss Per Share - Summary of Shares Excluded From the Computation of Diluted Net Loss Per Share Attributable to Ordinary Shareholders (Detail) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from computation of diluted net loss per share 15,746,412 14,698,290 13,780,683
Outstanding share options [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from computation of diluted net loss per share 6,264,883 8,268,711 11,229,241
Unvested RSUs [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from computation of diluted net loss per share 9,298,748 6,223,077 2,331,607
Share purchase rights under the ESPP [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from computation of diluted net loss per share 155,276 101,787 79,450
Issuable ordinary shares related to business combination [Member]      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Shares excluded from computation of diluted net loss per share 27,505 104,715 140,385