MONDAY.COM LTD., 20-F filed on 3/14/2024
Annual and Transition Report (foreign private issuer)
v3.24.0.1
Document and Entity Information
 12 Months Ended
Dec. 31, 2023
shares
Entity Addresses [Line Items]  
Entity Registrant Name monday.com Ltd.
Entity Central Index Key 0001845338
Current Fiscal Year End Date --12-31
Document Fiscal Year Focus 2023
Document Fiscal Period Focus FY
Amendment Flag false
Document Period End Date Dec. 31, 2023
Document Type 20-F
Document Registration Statement false
Document Annual Report true
Document Transition Report false
Document Shell Company Report false
Entity File Number 001-40461
Entity Address, Address Line One 6 Yitzhak Sadeh Street
Entity Address, City or Town Tel Aviv
Entity Address, Postal Zip Code 6777506
Entity Address, Country IL
Entity Incorporation, State or Country Code IL
Entity Well-known Seasoned Issuer Yes
Entity Voluntary Filers No
Entity Current Reporting Status Yes
Entity Interactive Data Current Yes
Entity Filer Category Large Accelerated Filer
Entity Emerging Growth Company false
Entity Common Stock, Shares Outstanding 48,923,903
Title of 12(b) Security Ordinary shares
Trading Symbol MNDY
Security Exchange Name NASDAQ
ICFR Auditor Attestation Flag true
Document Accounting Standard U.S. GAAP
Document Financial Statement Error Correction [Flag] false
Entity Shell Company false
Auditor Name Brightman Almagor Zohar & Co.
Auditor Location Tel Aviv, Israel
Auditor Firm ID 1197
Business Contact [Member]  
Entity Addresses [Line Items]  
Contact Personnel Name Shiran Nawi, Adv.
Entity Address, Address Line One 6 Yitzhak Sadeh Street
Entity Address, City or Town Tel Aviv
Entity Address, Postal Zip Code 6777506
Entity Address, Country IL
City Area Code 972
Local Phone Number (55) 939-7720
v3.24.0.1
CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
CURRENT ASSETS:    
Cash and cash equivalents $ 1,116,128 $ 885,894
Accounts receivable - net of allowance for credit losses of $318 and $408, as of December 31, 2023, and 2022, respectively 17,911 13,226
Prepaid expenses and other current assets 39,103 24,725
Total current assets 1,173,142 923,845
Property and equipment, net 37,418 34,416
Operating lease right-of-use assets 62,280 80,197
Other long-term assets 2,816 585
Total assets 1,275,656 1,039,043
CURRENT LIABILITIES:    
Accounts payable 24,837 7,335
Accrued expenses and other current liabilities 106,691 73,706
Deferred revenue 266,284 198,099
Operating lease liabilities, current 18,201 19,083
Total current liabilities 416,013 298,223
Operating lease liabilities, non-current 42,946 58,638
Deferred revenue, non-current 3,189 2,442
Total liabilities 462,148 359,303
COMMITMENTS AND CONTINGENCIES (NOTE 9)
SHAREHOLDERS' EQUITY:    
Ordinary shares, no par value - Authorized: 99,999,999 as of December 31, 2023, and 2022; Issued and Outstanding: 48,923,903 and 47,737,868 as of December 31, 2023, and 2022 respectively 0 0
Founders’ shares, no par value: Authorized: 1 share as of December 31, 2023, and 2022; Issued and Outstanding: 1 share as of December 31, 2023, and 2022 0 0
Additional paid-in capital 1,388,108 1,265,477
Accumulated other comprehensive income (loss) 9,804 (3,210)
Accumulated deficit (584,404) (582,527)
Total shareholders’ equity 813,508 679,740
Total liabilities, and shareholders’ equity $ 1,275,656 $ 1,039,043
v3.24.0.1
CONSOLIDATED BALANCE SHEETS (PARENTHETICAL) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts receivable - net of allowance for credit losses $ 318 $ 408
Common Stock, No Par Value $ 0 $ 0
Common Stock, Shares Authorized 99,999,999 99,999,999
Common Stock, Shares, Issued 48,923,903 47,737,868
Common Stock, Shares, Outstanding 48,923,903 47,737,868
Founder Share, No Par Value $ 0 $ 0
Founder Shares, Authorized 1 1
Founder Shares, Issued 1 1
Founder Shares, Outstanding 1 1
v3.24.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Statement [Abstract]      
Revenue $ 729,695 $ 519,029 $ 308,150
Cost of revenue 80,645 66,528 39,013
Gross profit 649,050 452,501 269,137
OPERATING EXPENSES      
Research and development 156,500 127,047 73,686
Sales and marketing 438,402 392,068 268,083
General and administrative 92,733 85,401 53,493
Total operating expenses 687,635 604,516 395,262
Operating loss (38,585) (152,015) (126,125)
Financial income (expenses), net 41,911 22,554 (838)
Loss before income taxes 3,326 (129,461) (126,963)
Taxes on income (5,203) (7,406) (2,331)
Net loss $ (1,877) $ (136,867) $ (129,294)
Net loss per share attributable to ordinary shareholders’, basic $ (0.04) $ (2.99) $ (4.53)
Net loss per share attributable to ordinary shareholders’, diluted $ (0.04) $ (2.99) $ (4.53)
Weighted-average ordinary shares used in calculating net loss per ordinary share, basic 48,366,378 45,804,714 30,332,006
Weighted-average ordinary shares used in calculating net loss per ordinary share, diluted 48,366,378 45,804,714 30,332,006
v3.24.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net loss $ (1,877) $ (136,867) $ (129,294)
Other comprehensive income (loss):      
Unrealized gains (losses) arising during the period 4,273 (11,386) 953
Losses (gains) reclassified into earnings, net of tax 8,741 [1] 7,582 [1] (359)
Net current-period other comprehensive income (loss) 13,014 (3,804) 594
Comprehensive income (loss) $ 11,137 $ (140,671) $ (128,700)
[1] Classified in operating expenses in the consolidated statement of operations.
v3.24.0.1
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY (DEFICIT) - USD ($)
$ in Thousands
Convertible Preferred Shares
Number of Ordinary Shares
Number of Founder Share
Additional Paid-in Capital
Accumulated Other Comprehensive Income (loss)
 [1]
Accumulated Deficit
Total
Preferred Stock, Value, Beginning Balance at Dec. 31, 2020 $ 233,496            
Preferred Stock, Shares, Beginning Balance at Dec. 31, 2020 26,440,239            
Balance at Dec. 31, 2020       $ 98,809 $ 0 $ (316,366) $ (217,557)
Balance, shares at Dec. 31, 2020   12,354,471 0        
Exercise of options $ 0     5,249 0 0 5,249
Exercise of options (in shares) 0 1,090,670 0        
Issuance of ordinary shares upon the vesting and settlement of restricted stock units $ 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units       0 0 0 0
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares) 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares)   917 0        
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (IPO) $ (233,496)            
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (IPO) (in shares) (26,440,239)            
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (IPO)       233,496 0 0 233,496
Conversion of convertible preferred shares to ordinary shares in connection with Initial Public Offering (IPO) (in shares)   26,440,239 0        
Issuance of Ordinary and Founders’ shares in connection with concurrent IPO and private placement, net of underwriting discounts and issuance costs [2] $ 0            
Issuance of Ordinary and Founders’ shares in connection with concurrent IPO and private placement, net of underwriting discounts and issuance costs (in shares) [2] 0            
Issuance of Ordinary and Founders’ shares in connection with concurrent IPO and private placement, net of underwriting discounts and issuance costs [2]       735,856 0 0 735,856
Issuance of Ordinary and Founders’ shares in connection with concurrent IPO and private placement, net of underwriting discounts and issuance costs (in shares) [2]   5,037,742 1        
Share-based compensation $ 0     75,051 0 0 75,051
Other comprehensive income 0     0 594 0 594
Net loss 0     0 0 (129,294) (129,294)
Balance at Dec. 31, 2021       1,148,461 594 (445,660) 703,395
Balance, shares at Dec. 31, 2021   44,924,039 1        
Preferred Stock, Value, Ending Balance at Dec. 31, 2021 $ 0            
Preferred Stock, Shares, Ending Balance at Dec. 31, 2021 0            
Exercise of options $ 0     6,133 0 0 6,133
Exercise of options (in shares) 0 2,693,614 0        
Issuance of ordinary shares upon the vesting and settlement of restricted stock units $ 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units       0 0 0 0
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares) 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares)   81,976 0        
Issuance of ordinary shares under employee share purchase plan $ 0            
Issuance of ordinary shares under employee share purchase plan (in shares) 0            
Issuance of ordinary shares under employee share purchase plan       3,681 0 0 3,681
Issuance of ordinary shares under employee share purchase plan (in shares)   38,239 0        
Share-based compensation $ 0     107,202 0 0 107,202
Other comprehensive income 0     0 (3,804) 0 (3,804)
Net loss 0     0 0 (136,867) (136,867)
Balance at Dec. 31, 2022   $ 47,737,868   1,265,477 (3,210) (582,527) 679,740
Balance, shares at Dec. 31, 2022     1        
Preferred Stock, Value, Ending Balance at Dec. 31, 2022 $ 0            
Preferred Stock, Shares, Ending Balance at Dec. 31, 2022 0            
Exercise of options $ 0     11,666 0 0 $ 11,666
Exercise of options (in shares) 0 767,148 0       767,148
Issuance of ordinary shares upon the vesting and settlement of restricted stock units $ 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units       0 0 0 $ 0
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares) 0            
Issuance of ordinary shares upon the vesting and settlement of restricted stock units (in shares)   338,034 0        
Issuance of ordinary shares under employee share purchase plan $ 0            
Issuance of ordinary shares under employee share purchase plan (in shares) 0            
Issuance of ordinary shares under employee share purchase plan       8,782 0 0 8,782
Issuance of ordinary shares under employee share purchase plan (in shares)   80,853 0        
Share-based compensation $ 0     102,183 0 0 102,183
Other comprehensive income 0     0 13,014 0 13,014
Net loss 0     0 0 (1,877) (1,877)
Balance at Dec. 31, 2023   $ 48,923,903   $ 1,388,108 $ 9,804 $ (584,404) $ 813,508
Balance, shares at Dec. 31, 2023     1        
Preferred Stock, Value, Ending Balance at Dec. 31, 2023 $ 0            
Preferred Stock, Shares, Ending Balance at Dec. 31, 2023 0            
[1] As of December 31, 2023 and 2022, accumulated other comprehensive income (loss) is comprised of unrealized gain (loss) on derivatives of $9,804 and $(3,210), respectively. The accompanying notes are an integral part of the consolidated financial statements.
[2] Net of underwriting discounts and issuance costs of $44,995.
v3.24.0.1
CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS' EQUITY (DEFICIT) (Parentheticals)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Statement of Stockholders' Equity [Abstract]  
Net issuance costs $ 44,995
Accumulated other comprehensive income (loss) $ 9,804
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 loss $ (1,877) $ (136,867) $ (129,294)
Adjustments to reconcile net loss to cash provided by operating activities:      
Depreciation and amortization 9,023 8,567 2,746
Capital loss from sale of property and equipment 0 0 76
Share-based compensation 100,186 104,920 73,529
Change in accrued interest on revolving credit facility 0 0 (16)
Changes in operating assets and liabilities:      
Accounts receivable, net (4,685) (4,717) (4,598)
Prepaid expenses and other assets 11,840 6,490 (13,335)
Accounts payable 17,397 (16,072) (2,040)
Accrued expenses and other liabilities 14,588 326 24,915
Deferred revenue 68,932 64,491 64,372
Net cash provided by operating activities 215,404 27,138 16,355
CASH FLOWS FROM INVESTING ACTIVITIES:      
Purchase of property and equipment (7,901) (16,003) (11,578)
Capitalized software development costs (2,558) (2,998) (2,180)
Proceeds from sale of property and equipment 0 0 129
Changes in short-term deposits 0 0 10,000
Net cash used in investing activities (10,459) (19,001) (3,629)
CASH FLOWS FROM FINANCING ACTIVITIES:      
Proceeds from exercise of share options and employee share purchase plan 21,243 12,181 5,249
Proceeds from initial public offering and concurrent private placement, net of underwriting discounts and other issuance costs 0 0 735,856
Receipt (payment) of tax advance relating to exercises of share options and Restricted share units, net 4,046 (21,152) 22,258
Repayment of revolving credit facility 0 0 (21,000)
Capital lease payments 0 (84) (91)
Net cash provided by (used in) financing activities 25,289 (9,055) 742,272
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS 230,234 (918) 754,998
CASH, CASH EQUIVALENTS - Beginning of year 885,894 886,812 131,814
CASH, CASH EQUIVALENTS - End of year 1,116,128 885,894 886,812
SUPPLEMENTAL DISCLOSURE:      
Cash paid for taxes 7,560 5,909 3,298
Cash paid for interest 25 62 421
NON-CASH INVESTING AND FINANCING ACTIVITIES:      
Non-cash purchases of property and equipment 105 205 92
Capitalized share-based compensation costs 1,997 1,934 1,522
Right-of-use asset recognized with corresponding lease liability $ 93 $ 97,289 $ 0
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

NOTE 1: ORGANIZATION AND DESCRIPTION OF BUSINESS

 

monday.com Ltd (“monday.com” and together with its subsidiaries collectively, “the Company”) was incorporated under the laws of Israel and commenced operations in 2012. The Company operates a cloud-based visual Work Operating System (‘Work OS’) that consists of modular building blocks that can be easily used and assembled to create software applications and work management tools and serves as a connective layer to integrate with various digital tools across an organization. By using the Company’s Work OS platform and product suite, customers can simplify and accelerate their digital transformation, enhance organizational agility, create a unifying workspace across departments, and increase operational efficiency and productivity.

 

monday.com has seven wholly owned subsidiaries: monday.com Inc. (the “U.S. Subsidiary”) incorporated in the United States in 2016, monday.com UK incorporated under the laws of England in 2020, monday.com PTY., incorporated in Australia in 2020, monday.com LTDA. incorporated in Brazil in 2021, monday.com K.K. incorporated in Japan in 2021, monday.com Sp.z.o.o., incorporated in Poland in 2022, and monday.com PTE., incorporated in Singapore in 2022. The subsidiaries primarily engage in providing business development, presale, and customer success services to the Company’s existing and potential customers.
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
SIGNIFICANT ACCOUNTING POLICIES

NOTE 2: SIGNIFICANT ACCOUNTING POLICIES

 

The accompanying consolidated financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America (“US GAAP”), reflect the application of the significant accounting policies described below and elsewhere in the notes to the consolidated financial statements.

 

  A. Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of monday.com and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.

 

  B. Use of estimates

 

The preparation of consolidated financial statements in conformity with US 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 revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on assumptions that management considers to be reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.

 

  C. Foreign Currency Translation and Transactions

 

The Company’s management has determined that the United States dollar is the currency in the primary economic environment in which monday.com and its subsidiaries operates. Thus, the Company reports its consolidated results in United States dollars. Transactions and balances that are denominated in other currencies have been remeasured into United States dollars in accordance with principles set forth in Accounting Standards Codification (“ASC”) ASC 830, Foreign Currency Matters (“ASC 830”).

 

Monetary assets and liabilities denominated in the local currency are remeasured into United States dollars at the end of each reporting period using the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are measured at historical rates. All exchange gains and losses from the remeasurement measured above are reflected at the consolidated statements of operations as financial expenses or income, as appropriate.

 

  D. Cash and Cash Equivalents

 

The Company classifies all unrestricted highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents consist of bank deposits and money market funds.

 

  E. Accounts Receivable

 

Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company maintains an allowance for credit losses inherent in its accounts receivable including potential uncollectible amounts. The allowance is based on the Company’s periodic assessment of the collectability of the accounts based on a combination of factors including the payment terms of each account, its age, the collection history of each customer, and the customer’s financial condition. Expenses associated with credit losses for the years ended December 31, 2023, 2022 and 2021 were $2,040, $1,622 and $594, respectively. The Company wrote off bad debts in the amount of $2,130, $1,463 and $609 during 2023, 2022 and 2021, respectively.

 

  F. Property and Equipment, Net

 

Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets (see Note 2H). Expenditures for maintenance and repairs are expensed as incurred. Disposals are removed at cost less accumulated depreciation and any gain or loss from disposals is reflected in the consolidated statement of operations in the period of disposition.

 

  G. Internal Use Software Development Costs

 

The Company capitalizes certain internal use software development costs related to its cloud-based platform or to back-office operating systems (amortized over six years). The costs consist of personnel costs incurred during the application development stage. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function.

 

Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post implementation operating activities are expensed as incurred.

 

Capitalized software development costs are included in property and equipment, net in the consolidated balance sheet (see Note 4) and are amortized over the estimated useful life of the software, on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expenses are included in cost of revenue in the consolidated statement of operations. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.

 

  H. Depreciation, Amortization and Impairment of Long-Lived Assets:

 

Long-lived assets with definite lives consist of property and equipment. Long-lived assets are amortized over their estimated useful lives which are as follows:

 

  Years
Computers, software, and electronic equipment 3-5
Office furniture and equipment 10-14
Capitalized internal software 3
development costs Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset

 

The Company reviews its long-lived assets for impairment whenever events or circumstances have occurred that indicate that the estimated useful lives of the long-lived assets may warrant revision or that the carrying value of these

 

assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows of the assets or asset group are compared to the carrying value. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized based on the amount in which the carrying amount exceeds the fair value of the asset or asset group, based on discounted cash flows. There were no events or circumstances that required the Company’s long-lived assets to be tested for impairment during any of the periods presented.

 

  I. Leases

 

The Company determines if an arrangement is a lease at inception by determining if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances.

 

The Company classifies leases at their inception as either capital or operating leases. A lease that transfers substantially all the risks and rewards incidental to ownership of the leased asset to the Company is classified as a capital lease. For capital leases, at the commencement of the lease term, the leased asset is measured at the lower of fair value or the present value of the minimum lease payments.

 

The leased asset is depreciated over the shorter of its useful life and the lease term. See also Note 2X.

 

For operating leases, right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what its credit rating would be. The ROU assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.

 

The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. The Company’s lease agreements generally do not contain any residual value guarantees, restrictions, or covenants.

 

For operating leases that contain renewals, or other lease incentives, the Company recognizes the rent expense on a straight-line basis over the term of the lease. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.

 

Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU assets and lease liabilities were calculated using the initial CPI and will not be subsequently adjusted.

 

Payments for variable lease costs are expensed as incurred and are not included in the operating lease ROU assets and lease liabilities.

 

The Company utilized the practical expedient in ASC 842, Leases (“ASC 842”) and elected not to record leases with an initial term of 12 months or less on the balance sheet. Therefore, for short-term leases with a term of 12 months or less, operating lease ROU assets and lease liabilities are not recognized, and the Company records such lease payments in the consolidated statements of operations on a straight-line basis over the lease term.

 

Rent expenses for the years ended December 31, 2023, 2022 and 2021, were $21,369, $16,396, and $4,326, respectively. See also Note 8.

 

  J. Employee Related Obligations

 

According to the Israeli Severance Pay Law, 1963 (“Severance Pay Law”), employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Company’s liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”).

 

Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees.

 

Therefore, the Company does not recognize a liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheet. Severance expenses for the years ended December 31, 2023, 2022 and 2021, amounted to $8,435, $7,289, and $4,608, respectively.

 

The Company’s U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The expenses recorded by the U.S. subsidiary for employer’s contributions were $1,898, $1,551, and $915 for the years ended December 31, 2023, 2022 and 2021, respectively.

 

  K. Contingent Liabilities

 

The Company accounts for its contingent liabilities in accordance with ASC 450, Contingencies (“ASC 450”). A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.

 

  L. Revenue Recognition

 

The Company generates revenue from the sale of subscriptions to customers to access its cloud-based Work OS platform. The terms of the Company’s subscription agreements are primarily monthly or annual, and a large portion of the arrangements are paid in full up-front at the outset of the arrangement. Customers may not take possession over the software and instead are granted continuous access to the platform over the contractual period and therefore the arrangements are accounted for as service contracts.

 

The Company’s contracts generally include fixed number of users and fixed price per user. Revenue for these arrangements is recognized ratably over the contract term.

 

The Company’s subscription contracts are generally non-cancelable except for contracts with first-time customers whereby the contract terms provide rights to cancel the contract in the first 30 days for pro-rated refund for unutilized days. Historically, refunds have not been material, and therefore no provision for refunds was recorded to date.

 

In accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services.

 

The Company determines revenue recognition through the following steps:

 

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

 

The Company considers the terms and conditions of the contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to pay, and the contract has commercial substance.

 

The Company applies certain judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, credit and financial information pertaining to the customer.

 

2. Identification of the performance obligations in the contract

 

Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of access to the cloud-based platform and related support services which is considered one performance obligation. The customers do not have the ability to take possession of the software, and through access to the platform the Company provides a series of distinct software-based services that are satisfied over the term of the subscription.

 

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 services to the customer. Payment terms are generally upfront at the time of the transaction, except for enterprise customers which are generally net 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 Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component.

 

The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price.

 

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

 

The Company’s contracts contain a single performance obligation. Therefore, the entire transaction price is allocated to the single performance obligation.

 

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

 

Revenue is recognized ratably over the term of the subscription agreement generally beginning on the date that the platform is made available to a customer.

 

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. The Company records contract liabilities when cash payments are received in advance of performance to deferred revenue or to customer advances in case of refund rights.

 

The Company recognized $198,099, $134,438, and $70,719 of revenue during the years ended December 31, 2023, 2022 and 2021, respectively, that were included in the deferred revenue balance at the beginning of the respective year.

 

Remaining performance obligations

The Company has elected to apply the practical expedient in ASC 606 and does not disclose the value of unsatisfied performance obligations for unearned revenue since the original expected duration of the majority of the contracts is one year or less.

 

Contract costs

For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Costs associated with multi-year contracts have been capitalized and amortized over the associated contract period.

 

  M. Cost of Revenue

 

Cost of revenue primarily consists of costs related to providing subscription services to paying customers, including hosting costs, personnel-related expenses of customer support including share-based compensation, subcontractors costs, merchant and credit-cards processing fees, amortization of capitalized software development costs and allocated overhead costs.

 

  N. Research and Development Costs

 

Research and development costs are expensed as incurred unless these costs qualify for capitalization as internal-use software development costs.

 

Research and development expenses consist primarily of personnel-related expenses, including share-based compensation and allocated overhead costs.

 

  O. Sales and Marketing

 

Sales and marketing expenses are primarily comprised of costs of the Company’s marketing personnel including share-based compensation, online marketing expenses and other advertising costs, partners’ commissions and allocated overhead costs. Sales and marketing expenses are expensed as incurred. Advertising costs amounted to $203,235, $181,447, and $143,472, in the years ended December 31, 2023, 2022 and 2021, respectively.

 

  P. General and Administrative

 

General and administrative expenses primarily consist of personnel-related and share-based compensation expenses associated with the Company’s executives, as well as its finance, legal, human resources and other operational and administrative functions, professional fees for external legal, accounting, and other consulting services, directors and officer’s insurance expenses, donations and allocated overhead costs.

 

  Q. Accounting for Share-Based Compensation

 

The Company accounts for share-based compensation under ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees, non-employee consultants and directors, including options, restricted share units (“RSUs”), and shares issued pursuant to the 2021 Employee Share Purchase Plan (“ESPP”) based on the fair value of the awards on the date of grant as follows: (i) share options – the fair value is based on the Black-Scholes option-pricing model, (ii) RSUs – the fair value is based on the closing trading price of the underlying shares at the date of grant and, (iii) ESPP – the fair value is based on the Monte-Carlo simulation model due to certain limitation on the number of shares per employee.

 

The expense for share-based compensation cost is recognized over the requisite service period of each individual grant using the graded vesting attribution method for both service-based and performance-based awards. Forfeitures are accounted for as they occur.

 

The Company granted its Co-Chief Executive Officers (“Co-CEOs”) performance-based awards. The number of performance awards earned and eligible to vest are generally determined after a one-year performance period, based on achievement of certain Company financial performance measures and the recipient’s continued service. The Company recognizes share-based compensation expense for the performance awards using the fair value at the date of grant over the requisite service when it is probable that the

 

performance conditions will be achieved and adjusts the number of units expected to vest based on interim estimates of performance against the pre-set objectives.

 

Valuation assumptions used in measuring compensation costs:

 

(I) Options:

 

The Black-Scholes option-pricing model requires the Company to make several assumptions, including the value of the Company’s ordinary shares, expected volatility, expected term, risk-free interest rate and expected dividends. The Company evaluates the assumptions used to value option awards upon each grant of share options.

 

Expected volatility was calculated based on the implied volatilities from market comparisons of certain publicly traded companies. The expected option term was calculated based on the simplified method, which uses the midpoint between the vesting date and the contractual term, as the Company does not have sufficient historical data to develop an estimate based on participant behavior. The risk-free interest rate was based on the U.S. treasury bonds yield with an equivalent term. The Company has not paid dividends and has no foreseeable plans to pay dividends. The assumptions used to determine the fair value of the share-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment.

 

Commencing June 10, 2021, the ordinary shares of the Company are publicly traded. Prior to the Initial Public Offering (“IPO”), the fair value of ordinary shares underlying the options has historically been determined by management with the assistance of a third-party valuation firm and approved by the Company’s board of directors.

 

The following table summarizes the Black-Scholes assumptions used at the grant dates:

 

  Year ended December 31,
  2023   2022   2021
Risk-free interest rate 3.48%-4.49%   1.89%-4.3%   0.68%-1.15%
Expected dividend yield 0%   0%   0%
Expected term (in years) 5-7   5-7   5-8
Expected volatility 57%-65%   49%-57%   49%-50%

 

(II) ESPP:

 

The following table summarizes the Monte-Carlo model assumptions used at the grant dates:

 

  Year ended December 31,
  2023   2022
Risk-free interest rate 4.92%-5.24%   0.46%-2.87%
Expected dividend yield 0%   0%
Expected term (in years) 0.5   0.5
Expected volatility 54%-80%   97%-98%

 

  R. Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. As of December 31, 2023 and 2022, the Company recorded a full valuation allowance against its deferred tax assets.

 

The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was recorded due to immateriality.

 

  S. Net Loss Per Share Attributable to Ordinary Shareholders

 

The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury shares method or the if-converted method based on the nature of such securities.

 

Diluted net loss per share is the same as basic net loss per share since the effects of potentially dilutive shares of ordinary shares are anti-dilutive in all periods presented. The potentially dilutive options to purchase ordinary shares and RSUs that were excluded from the computation amounted to 4,294,853, 4,617,018 and 6,302,344, for the years ended December 31, 2023, 2022, and 2021, respectively, because including them would have been anti-dilutive. The Founder’s share is not a participating security and therefore excluded from the net loss per share.

 

  T. Concentration of Credit Risks

 

Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents (including money market funds and bank deposits up to three months) and accounts receivable.

 

For cash and cash equivalents, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. The Company places its cash and cash equivalents with financial institutions with high-quality credit ratings in the United States, Israel, Ireland, Cayman Islands, and Luxembourg and has not experienced any losses in such accounts.

 

For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. For each of the years ended December 31, 2023, and 2022, there were no individual customers that accounted for 10% or more of the Company’s revenues. The Company’s accounts receivable are geographically diversified and derived primarily from sales in the United States, EMEA, and APAC. To manage its accounts receivable risk, the Company evaluates the credit worthiness of its customers and maintains allowances for potential credit losses.

 

The Company has not historically experienced any material credit losses related to individual customers or groups of customers in any specific area or industry.

 

  U. Segment Information

 

The Company has a single operating and reportable segment. The Company’s chief operating decision makers are its two Co-CEOs, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15.

 

  V. 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.

 

The carrying amount of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued expenses, are stated at their carrying value, which approximates fair value due to the short maturities of these instruments.

 

Assets measured at fair value on a recurring basis as of December 31, 2023, and 2022, are comprised of money market funds and derivative instruments (see Note 7).

 

  W. Derivative Financial Instruments

 

Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC 815, Derivatives and Hedging (“ASC 815”). The gain or loss of derivatives which are designated and qualify as hedging instruments in a cash flow hedge, is recorded under accumulated other comprehensive income (loss) and reclassified into earnings

 

in the same period or periods during which the hedged transaction affects earnings. Derivatives are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments.

 

The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts and option contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”).

 

The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes foreign exchange contracts designated as cash flow hedges. These foreign exchange contracts generally mature within 12 months. See Note 6.

 

In addition, occasionally the Company enters into swaps, options and forward contracts to hedge a portion of its monetary items in the balance sheet, such as cash and cash equivalents balances, denominated in other currencies for short-term periods.

 

The purpose of these contracts is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to these contracts are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes.

 

  X. Recently Adopted Accounting Pronouncements:

 

On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (ASC 842) using a modified retrospective transition approach. It applied ASC 842 to all leases as of January 1, 2022, without adjusting the comparative periods presented which requires lessees to include all leases on their balance sheets, whether operating or financing. Upon adoption, the Company recognized total ROU asset of $58,084, with corresponding liability in the same amount on the consolidated balance sheets. The adoption did not impact the beginning retained earnings, or prior year consolidated statements of operations and statements of cash flows.

 

On January 1, 2022, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments”, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected, include accounts receivable. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in more timely recognition of credit losses. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (ASU 2019-12). The ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The Company prospectively adopted this ASU effective January 1, 2022. As of the date of the adoption there was no material impact on the Company’s consolidated financial statements.

 

  Y. Accounting pronouncements not yet effective

 

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures” to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective starting January 1, 2024 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the effect of adopting the ASU on its disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – “Improvements to Income Tax Disclosures”. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted starting January 1, 2025. Early adoption is permitted, and the amendments should be applied on a prospective basis. The Company is currently evaluating the effect of adopting the ASU on its disclosures.
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS
 12 Months Ended
Dec. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT ASSETS

NOTE 3: PREPAID EXPENSES AND OTHER CURRENT ASSETS

 

Prepaid expenses and other current assets consisted of the following:

 

    December 31,  
    2023     2022  
Prepaid expenses   $ 13,189     $ 13,610  
Government institutions     2,731       2,268  
Derivative instruments     9,806       —  
Interest receivable     4,484       3,872  
Short-term vendor deposits     6,675       3,924  
Deferred commission     1,810       —  
Other current assets     408       1,051  
Total prepaid expenses and other current assets   $ 39,103     $ 24,725  
v3.24.0.1
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET

NOTE 4: PROPERTY AND EQUIPMENT, NET

 

    December 31,  
    2023     2022  
Computer, software, and electronic equipment   $ 14,995     $ 12,569  
Office furniture and equipment     9,094       6,926  
Leasehold improvements     16,419       13,289  
Capitalized internal use software development costs     14,616       10,597  
Capital leases     254       254  
Property and equipment, gross     55,378       43,635  
Less accumulated depreciation and amortization     (17,960 )     (9,219 )
Property and equipment, net   $ 37,418     $ 34,416  

 

Depreciation and amortization expense was $8,961, $5,913, and $2,746, for the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023, 2022 and 2021 no material capital losses were recorded.

 

The Company capitalized costs related to the development of internal-use software of $4,019, $4,931, and $3,702, for the years ended December 31, 2023, 2022 and 2021, respectively.

 

Amortization of capitalized software development costs was $2,558, $1,492, and $547, for the years ended December 31, 2023, 2022 and 2021, respectively. The net carrying value of capitalized internal-use software was $9,693, $8,233, and $4,793 as of December 31, 2023, 2022 and 2021, respectively.
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
 12 Months Ended
Dec. 31, 2023
Accrued Liabilities, Current [Abstract]  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

NOTE 5: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES

 

    December 31,  
    2023     2022  
Accrued employee compensation and benefits   $ 63,440     $ 44,639  
Accrued expenses     31,810       18,983  
Derivative instruments     —       3,208  
Advances from customers     2,801       2,805  
Income and indirect taxes payable     8,640       4,071  
Total   $ 106,691     $ 73,706  
v3.24.0.1
DERIVATIVES AND HEDGING
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES AND HEDGING

NOTE 6: DERIVATIVES AND HEDGING

 

The Company uses derivative instruments primarily to manage exposures to foreign currency exchange rate and to reduce the volatility of earnings and cash flows associated with changes in foreign currency exchange rates. The fair values of derivative instruments and the line items to which they were recorded are summarized as follows:

 

    Balance sheet line item   December 31,  
        2023     2022  
Derivatives designated as                
                 
hedging instruments:                    
Foreign exchange contracts   Other current liabilities   $ —     $ (3,208 )
    Prepaid expenses and other current assets     9,806       —  
Derivatives not designated as hedging instruments:         9,806       (3,208 )
          —       —  
Total       $ 9,806     $ (3,208 )

 

The effect of derivative instruments on cash flow hedging, as well as the effect

 

of instruments not designated as hedge and the relationship between income and other comprehensive income for the years ended December 31, 2023 and December 31, 2022, are summarized below:

 

    Gain (Loss) Recognized in Other Comprehensive Income on Effective-Portion of Derivative, net     Realized Loss on Derivative Reclassified from Accumulated Other Comprehensive Income (*)     Amount Excluded from Effectiveness Testing Recognized in Income (Loss)(**)  
    Year ended December 31     Year ended December 31     Year ended December 31  
    2023     2022     2023     2022     2023     2022  
Derivatives designated as hedging instruments:                  
Foreign exchange contracts   $ 4,273     $ (11,386 )   $ 8,741     $ 7,582     $ —     $ —  
      4,273       (11,386 )     8,741       7,582       —       —  
Derivatives not designated as hedging instruments:                                                
Foreign exchange contracts     —       —       —       —       —       (1,801 )
      —      

—

       —       —       —       (1,801 )
Total   $ 4,273     $ (11,386 )   $ 8,741     $ 7,582     $ —     $ (1,801 )

 

(*) Classified in operating expenses in the consolidated statement of operations.

(**) Includes derivatives not designated as accounting hedge. Classified in financial income (expense), net, in the consolidated statement of operations.

 

The notional amounts of the outstanding derivatives are summarized as follows:

 

    As of December 31,  
    2023     2022  
Derivatives designated as hedging instruments:            
Foreign exchange contracts:                
NIS   $ 157,430     $ 81,557  
    $ 157,430     $ 81,557  
v3.24.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS

NOTE 7: FAIR VALUE MEASUREMENTS

 

In accordance with ASC 820, Fair Value Measurement (“ASC 820”) the Company measures its money market funds, bank deposits, and foreign currency derivative contracts at fair value. The fair value of money market funds was determined using quoted prices in active markets, which are considered to be Level 1 inputs under the fair value measurements and disclosure guidance. Foreign currency derivative contracts are classified within Level 2 as the valuation inputs are based on quoted prices and market observable data of similar instruments. The Company’s financial assets (liabilities) measured at fair value on a recurring basis, excluding accrued interest components, consisted of the following types of instruments as of the following dates:

 

    As of December 31,  
    2023     2022  
    Level 1     Level 2     Total     Level 1     Level 2     Total  
Cash equivalents:                                                
Bank deposits   $ —     $ —     $ —     $ 625,000     $ —     $ 625,000  
Money market funds     1,024,658       —       1,024,658       80,888       —       80,888  
Foreign currency                                                
derivative contracts:                                                
Foreign exchange contracts     —       9,806       9,806       —       (3,208 )     (3,208 )
Total   $ 1,024,658     $ 9,806     $ 1,034,464     $ 705,888     $ (3,208 )   $ 702,680  
v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES

NOTE 8: LEASES

 

A. Operating leases

 

The Company has entered into various non-cancelable operating leases for its offices expiring between fiscal 2024 and 2031. Certain lease agreements contain an option for the Company to extend the lease term or an option to terminate a lease early. The Company considers these options, which may be elected at the Company’s sole discretion, in determining the lease term on a lease-by-lease basis. Additionally, the Company entered into certain cancelable monthly lease agreements for short-term periods of up to one year.

 

B. The following is a schedule, by years, of maturities of lease liabilities as of December 31, 2023:

 

Years Ending December 31,     Amount  
2024     $ 18,830  
2025       18,683  
2026       12,439  
2027       8,449  
2028       6,095  
Thereafter       -  
Total undiscounted cash flows     $ 64,496  
Less: Imputed interest     $ (3,349 )
Present value of lease liabilities     $ 61,147  

 

As of December 31, 2023, the Company has an additional operating lease that has not yet commenced, which is excluded from the table above. The operating lease will commence in fiscal year 2024 with a total of $1,700 of undiscounted future payments with a lease term of two years. Refer to Note 9 for leases entered into after December 31, 2023.

 

Supplemental balance sheet information related to leases is as follows:

 

    Year ended December 31,
    2023   2022
Weighted-average remaining lease term   3.7 years   4.5 years
Weighted-average discount rate   3.5%   3.6%
v3.24.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES

NOTE 9: COMMITMENTS AND CONTINGENCIES

 

A. Guarantees:

 

As of December 31, 2023 and 2022, the Company has provided a bank guarantee in the amount of $6,815 and $6,871, respectively, to secure its lease agreement.

 

B. Indemnifications

 

The Company enters into standard indemnification provisions in the ordinary course of business, including certain customers, business partners, the Company’s officers, and directors. Pursuant to these provisions, the Company has agreed to indemnify and defend the indemnified party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party claims because of the Company’s activities or non-compliance with certain representations and warranties made by the Company.

 

It is not possible to determine the maximum potential loss under these indemnification provisions due to the Company’s limited history of prior indemnification claims and the unique facts and circumstances involved in each particular provision. To date, losses recorded in the Company’s consolidated statements of operations in connection with the indemnification provisions have not been material. There are no claims pending as of December 31, 2023 and 2022, related to indemnification agreements.

 

The Company has entered into service-level agreements with some of its enterprise customers defining levels of uptime reliability and performance and permitting those customers to receive credits for prepaid amounts related to unused subscription services if the Company fails to meet the defined levels of uptime in a certain calendar month. To date, the Company has not experienced any significant failures to meet defined levels of uptime reliability and performance. In addition, since the calculation is monthly for each calendar month there is no uncertainty at the end of the reporting period. Therefore, the Company has not accrued any liabilities related to these agreements in the consolidated financial statements.

 

C. Legal Contingencies:

 

The Company is currently not involved in any material claims or legal proceedings. The Company reviews the status of each legal matter it is involved in, from time to time, in the ordinary course of business and assesses its potential financial exposure.

 

D. Other Commitments:

 

Other commitments include payments to third-party vendors for services related mainly to hosting-related services, software licenses and services.

 

Future minimum payments under the Company’s other commitments, as of December 31, 2023, are as follows:

 

Years Ending December 31,     Amount  
2024     $ 15,105  
2025       1,564  
2026       143  
Total contractual obligations     $ 16,812  

 

Additionally, on January 11, 2024, the Company entered into an operating lease agreement for additional floors in the same building as its headquarters in Israel, which is expected to commence on April 1, 2024. The total undiscounted cash flows amounted to $4,318 with a lease term of five years and this new operating lease agreement was excluded from the table above.
v3.24.0.1
FINANCIAL INCOME (EXPENSES), NET
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
FINANCIAL INCOME (EXPENSES), NET

NOTE 10: FINANCIAL INCOME (EXPENSES), NET

 

    Year ended December 31,  
    2023     2022     2021  
Financial expenses:                        
Bank charges and other   $ 443     $ 730     $ 566  
Interest on credit facility and amortization of debt issuance fees     —       62       405  
Exchange rate expense, net     —       —       742  
Total financial expenses     443       792       1,713  
                         
Financial income:                        
Exchange rate income, net     361       4,687       —  
Interest income on deposits     41,993       18,659       875  
Total financial income     42,354       23,346       875  
Financial income (expenses), net   $ 41,911     $ 22,554     $ (838 )
v3.24.0.1
RELATED PARTIES
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTIES

NOTE 11: RELATED PARTIES

 

There were no material related party transactions in each of the years ended December 31, 2023, 2022 and 2021 that were outside of the normal course of business.
v3.24.0.1
SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY

NOTE 12: SHAREHOLDERS’ EQUITY

 

A. Ordinary shares:

 

The holders of ordinary shares are entitled to one vote per share, to dividends as decided by the Board, and in the event of the Company’s liquidation, to the surplus assets of the Company. The Company has the following ordinary shares reserved for future issuance:

 

    As of December 31,  
    2023     2022  
Ordinary shares     48,923,903       47,737,868  
Outstanding share options and RSUs     4,294,853       4,617,018  
Shares available for future grants under the 2021 plan     7,847,149       6,243,273  
Shares subject to the employee share purchase plan     1,233,812       721,469  
Total     62,299,717       59,319,628  

 

B. Initial Public Offering and concurrent Private Placement:

 

On June 10, 2021, the Company completed its initial public offering (“IPO”), in which the Company issued and sold 3,700,000 shares of its ordinary shares at an offering price of $155.00 per share, and additional 370,000 ordinary shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. The Company received net proceeds of $591,856 after deducting underwriting discounts and commissions of $34,697, and other issuance costs of $4,298. Immediately prior to the closing of the IPO, all convertible preferred shares then outstanding automatically converted into 26,440,239 ordinary shares.

 

Additionally, immediately subsequent to the closing of the IPO, the Company entered into concurrent private placement with two investors to purchase 967,742 of its ordinary shares in consideration for gross proceeds of $150,000 at a price per ordinary share equal to the initial public offering price. Related underwriting discounts and commissions amounted to $6,000.

 

Prior to the IPO, deferred offering costs, which consist primarily of accounting, legal and other fees related to the Company’s IPO, were capitalized within other assets, noncurrent in the consolidated balance sheets. Upon the consummation of the IPO and concurrent Private Placement $44,995 of deferred offering costs were reclassified into shareholders’ equity as an offset against IPO proceeds.

 

C. Founder’s share:

 

Upon the consummation of the IPO, the Company issued one of its Co-Founders and Co-CEO one founder share. The founder share will provide the Co-CEO with certain veto rights over the approval of certain transactions such as merger, consolidation, acquisition, issuance of equity securities or debt securities convertible into equity securities or other similar transactions, that would result in any person becoming the owner of 25% or more of the ordinary shares immediately following the consummation of such transaction, (ii) sale, assignment, conveyance, transfer, lease or other disposition, in one transaction or a series of related transactions, of all or substantially all of the Company’s assets to any person and (iii) change to the Company’s strategy, policies and/or business plan in connection with its Equal Impact Initiative.

 

The founder share is not tradable and have no rights other than those described above, including no dividends rights or voting rights. The founder share will automatically convert to a deferred share with no rights, upon the earlier of (i) a transfer, pledge or other disposition of the founder share, (ii) the termination of the Co-CEO’s employment with the Company, (iii) the death of the Co-CEO, (iv) Upon the dilution of the shares and options held by him below a certain percentage.

 

D. Share based compensation:

 

In 2021, the board of directors adopted the 2021 equity incentive plan for employees, officers, directors, and consultants (the “2021 Plan”). Following the IPO, the Company ceased granting awards under its old plans and all shares that remained available for issuance under these plans were transferred to the 2021 Plan. The 2021 Plan provides for the grant of options to purchase ordinary shares and RSUs. Each option granted under the 2021 Plan expires no later than ten years from the date of grant. The vesting period of the options and RSUs is generally four years. As of December 31, 2023, the number of ordinary shares reserved and available for grant and issuance pursuant to the 2021 Plan (the “Share Reserve”) was 7,847,149.

 

The Share Reserve will automatically increase on January 1st of each year during the term of the 2021 Plan, commencing on January 1st of the year following the year in which the 2021 Plan became effective, in an amount equal to 5% of the total number of shares of capital stock outstanding on December 31st of the preceding calendar year.

 

Since January 1, 2022, the share reserve under the 2021 Plan has been automatically increased by an aggregate of 4,633,095 shares. Awards granted under the 2021 Plan generally vest over four years. Any award that is forfeited or canceled before expiration becomes available for future grants under the 2021 Plan.

 

 

Share option activity for the year ended December 31, 2023 is as follows:

 

    Number of
Options		     Weighted-Average
Exercise Price		     Weighted Average
Remaining
Contractual life		     Aggregate
Intrinsic Value		  
Outstanding — January 1, 2023 (*)     3,800,024     $ 39.60       7.46     $ 347,627  
Granted (*)     207,305     $ 122.62                  
Exercised     (767,148 )   $ 15.18                  
Expired and forfeited     (160,929 )   $ 86.35                  
Outstanding — December 31, 2023     3,079,252     $ 48.82       6.71     $ 435,699  
Exercisable — December 31, 2023 (*)     2,106,504     $ 32.98       6.25     $ 329,924  

 

The aggregate intrinsic value was calculated as the difference between the exercise price of the share options and the fair value of the underlying common shares as of December 31, 2023 and 2022. The intrinsic value of options exercised in the years ended 2023, 2022, and 2021 was approximately $112,799, $346,600 and $321,891, respectively.

 

The weighted-average grant-date fair value of options granted during the years ended December 31, 2023, 2022 and 2021 was $86.26, $69.3 and $77.0, respectively.

 

(*) Includes 73,074 performance options granted to the Company’s Co-CEOs in 2022. and 74,108 performance options granted to the Company’s Co-CEOs in 2023, as applicable.

 

The following table summarizes the activity for the Company’s RSUs for the year ended December 31, 2023:

 

    Number of
Units		     Weighted-
Average Fair
Value		  
Balance at January 1, 2023     816,994     $ 126.29  
Granted (*)     846,540     $ 138.84  
Vested     (338,034 )   $ 128.44  
Canceled     (109,899 )   $ 126.59  
Balance at December 31, 2023 (*)     1,215,601     $ 134.41  

 

(*) Includes 22,928 performance shares granted to the Company’s Co-CEOs in 2023.

 

As of December 31, 2023, 2022 and 2021 there was $96,112, $64,458 and $22,821 of total unrecognized compensation cost related to unvested restricted share units which is expected to be recognized over a weighted-average period of 1.80, 1.85 and 1.98 years, respectively.

 

 

Share-based compensation expense for the years ended December 31, 2023, 2022 and 2021, is as follows:

 

    Year ended December 31,  
    2023     2022     2021  
Cost of revenues   $ 6,307     $ 10,406     $ 7,681  
Research and development     38,737       32,957       21,779  
Sales and marketing     25,395       33,457       23,135  
General and administrative     29,747       28,100       20,934  
Share-based compensation, net of amounts capitalized   $ 100,186     $ 104,920     $ 73,529  
Capitalized share-based compensation costs     1,997       2,282       1,522  
Total share-based compensation   $ 102,183     $ 107,202     $ 75,051  

 

As of December 31, 2023, 2022, and 2021, unamortized share-based compensation expense was $118,311, $107,411 and $101,027, respectively, which is expected to be recognized over weighted average periods of 1.75, 1.79 and 1.97 years, respectively.

 

E.    Employee Share Purchase Plan

 

Immediately prior to the IPO, the Company adopted the 2021 ESPP. As of December 31, 2021, a total of 194,625 shares were reserved for issuance under the ESPP. In addition, on the first day of each calendar year beginning on January 1, 2022 and ending on and including January 1, 2031, the number of shares available for issuance under the ESPP will be increased by the lesser of 1% of the shares outstanding on the final day of the immediately preceding calendar year, as determined on a fully diluted basis, and such smaller number of shares as determined by the Company’s board of directors. According to the ESPP, eligible employees may use up to 15% of their salaries to purchase ordinary shares. The price of an ordinary share purchased under the ESPP is equal to 85% of the lower of the fair market value of the ordinary share on the beginning of each offering period or on the purchase date. As of December 31, 2023, 119,092 ordinary shares had been purchased under the ESPP. The ESPP is compensatory and, as such, results in recognition of compensation cost.
v3.24.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES

NOTE 13: INCOME TAXES

 

A. Income (loss) before income taxes:

 

The following are the domestic and foreign components of the Company’s income (loss) before income taxes:

 

    Year ended December 31,  
    2023     2022     2021  
Domestic (Israel)   $ (10,368 )   $ (142,527 )   $ (132,203 )
Foreign     13,694       13,066       5,240  
Total   $ 3,326     $ (129,461 )   $ (126,963 )

 

B. Income taxes:

 

The following are the domestic and foreign components of the Company’s income taxes:

 

    Year ended December 31,  
    2023     2022     2021  
Domestic (Israel)   $ 557     $ 649     $ 180  
Foreign     4,646       6,757       2,151  
Total   $ 5,203     $ 7,406     $ 2,331  

 

 

C. Tax rate reconciliation:

 

The reconciliation of the tax benefit at the Israeli statutory tax rate to the

 

Company’s income taxes is as follows:

 

    Year ended December 31,  
    2023     2022     2021  
    Tax     Rate     Tax     Rate     Tax     Rate  
Theoretical tax benefit   $ 765       23 %   $ (29,776 )     23 %   $ (29,201 )     23 %
Increase (decrease) in tax rate due to:                                                
Change in valuation allowance     (5,294 )     (159 %)     8,489       (7 %)     14,968       (12 %)
Share-based compensation     11,262       339 %     14,806       (11 %)     10,184       (8 %)
Tax benefit relating to exercise of disqualified ISO     (1,408 )     (42 %)     (1,394 )     1 %     (3,069 )     2 %
Initial public offering costs     (1,800 )     (54 %)     (1,800 )     1 %     (5,399 )     4 %
Preferred technological enterprise and the effect of different tax rates in other jurisdictions     1,140       34 %     15,523       (12 %)     14,460       (11 %)
Currency differences     —       0 %     768       1 %     18       0 %
Other     538       16 %     790       1 %     370       0 %
Effective tax   $ 5,203       156 %   $ 7,406       (6 %)   $ 2,331       (2 %)

 

D. Deferred taxes:

 

The principal components of the Company’s deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows:

 

    As of December 31,  
    2023     2022  
Net operating loss carry forwards   $ 39,809     $ 39,942  
Research and development     3,780       9,663  
Initial public offering costs     —       1,800  
Other temporary differences     5,320       3,855  
Carryforward tax credits     2,093       1,428  
Gross deferred tax assets     51,002       56,688  
Valuation allowance     (48,430 )     (55,561 )
Total deferred tax assets     2,572       1,127  
Deferred tax liabilities:                
Depreciation and amortization     (2,572 )     (1,127 )
Deferred tax liabilities   $ (2,572 )   $ (1,127 )
Net deferred taxes   $ —     $ —  

 

 

In assessing the ability to realize deferred tax assets, the Company considers whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. Based on the available evidence, management believes that it is more likely than not that its deferred tax assets will not be realized and accordingly, a full valuation allowance has been provided.

 

As of December 31, 2023, the Company has net operating loss carryforwards in Israel of $331,742 which may be carried forward indefinitely.

 

As of December 31, 2023, and 2022, the Company has not provided a deferred tax liability in respect of cumulative undistributed earnings relating to the Company’s foreign subsidiaries, as the Company intends to keep these earnings permanently invested.

 

  A. Tax assessments:

 

As of December 31, 2023, the Company had open tax years for the periods beginning 2018 in Israel and 2021 for the U.S. subsidiary.

 

  B. Basis of taxation:

 

Ordinary taxable income in Israel is subject to a corporate tax rate of 23% in 2023 and 2022. However, the effective tax rate payable by a company may be considerably lower (as discussed below). Non-Israeli subsidiaries are taxed according to the tax laws in their respective countries of residence. Primarily, in 2023 and 2022, the Company’s U.S. subsidiary is subject to tax rate of approximately 21%.

 

  C. The New Technological Enterprise Incentives Regime (Amendment 73 to the Investment Law)

 

In December 2016, the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), 2016 which includes Amendment 73 to the Law for the Encouragement of Capital Investments (“the 2017 Amendment”) was published and was pending the publication of regulations, in May 2017 regulations were promulgated by the Finance Ministry to implement the “Nexus Principles” based on OECD guidelines published as part of the Base Erosion and Profit Shifting (BEPS) project. Following the publication of the regulations the 2017 Amendment became fully effective. According to the 2017 Amendment, a Preferred Technological Enterprise, as defined in the 2017 Amendment, with total consolidated revenues of less than NIS 10 billion, will be subject to 12% tax rate on income derived from intellectual property (in development area A—a tax rate of 7.5%). In order to

 

qualify as a Preferred technological enterprise certain criterion must be met, such as a minimum ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual revenues derived from exports. Any dividends distributed from income from the preferred technological enterprises will be subject to tax at a rate of 20%. The 2017 Amendment further provides that, in certain circumstances, a dividend distributed to a foreign corporate shareholder, would be subject to a 4% tax rate (if the percentage of foreign investors exceeds 90%).

 

The Company assessed the criteria for qualifying as a “Preferred Technological Enterprise” status and concluded that the Company is eligible to the above-mentioned benefits. The Company is entitled to Preferred Technological Enterprise benefits starting 2019. The Company did not utilize any benefits associated with the Preferred Technological Enterprise in 2023 and 2022.
v3.24.0.1
LOSS PER SHARE
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
LOSS PER SHARE

NOTE 14: LOSS PER SHARE

 

The following table presents the calculation of basic and diluted net loss per share:

 

    Year ended December 31,  
    2023     2022     2021  
Numerator:                  
Net loss   $ 1,877     $ 136,867     $ 129,294  
Undistributed earnings attributable to preferred shareholders     —       —       8,203  
Net loss attributable to ordinary shareholders, basic and diluted   $ 1,877     $ 136,867     $ 137,497  
Denominator:                        
Weighted-average ordinary shares outstanding     48,366,378       45,804,714       30,332,006  
Basic and diluted net loss per share   $ (0.04 )   $ (2.99 )   $ (4.53 )
v3.24.0.1
GEOGRAPHICAL INFORMATION
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
GEOGRAPHICAL INFORMATION

NOTE 15: GEOGRAPHICAL INFORMATION

 

Revenues are attributed to geographic areas based on location of the end customers as follows:

 

    Year ended December 31,  
    2023     2022     2021  
United States   $ 364,070     $ 255,495     $ 148,291  
EMEA     157,134       111,854       67,121  
United Kingdom     73,236       50,625       30,171  
Rest of the world     135,255       101,055       62,567  
    $ 729,695     $ 519,029     $ 308,150  

 

Property and equipment, net by geographical areas were as follows:

 

    As of December 31,  
    2023     2022  
Israel   $ 31,987     $ 30,260  
United States     4,008       3,171  
Rest of the world     1,423       985  
    $ 37,418     $ 34,416  
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Principles of Consolidation
  A. Principles of Consolidation

 

The accompanying consolidated financial statements include the accounts of monday.com and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation.
Use of estimates
  B. Use of estimates

 

The preparation of consolidated financial statements in conformity with US 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 revenues and expenses during the reporting period. The Company bases its estimates on historical experience and on assumptions that management considers to be reasonable. The Company assesses these estimates on a regular basis; however, actual results could differ from these estimates.
Foreign Currency Translation and Transactions
  C. Foreign Currency Translation and Transactions

 

The Company’s management has determined that the United States dollar is the currency in the primary economic environment in which monday.com and its subsidiaries operates. Thus, the Company reports its consolidated results in United States dollars. Transactions and balances that are denominated in other currencies have been remeasured into United States dollars in accordance with principles set forth in Accounting Standards Codification (“ASC”) ASC 830, Foreign Currency Matters (“ASC 830”).

 

Monetary assets and liabilities denominated in the local currency are remeasured into United States dollars at the end of each reporting period using the exchange rates in effect at the balance sheet date. Non-monetary assets and liabilities are measured at historical rates. All exchange gains and losses from the remeasurement measured above are reflected at the consolidated statements of operations as financial expenses or income, as appropriate.
Cash and Cash Equivalents
  D. Cash and Cash Equivalents

 

The Company classifies all unrestricted highly liquid investments with maturities of three months or less at the date of purchase as cash equivalents. Cash equivalents consist of bank deposits and money market funds.
Accounts Receivable
  E. Accounts Receivable

 

Accounts receivable are recorded at the invoiced amount, are unsecured and do not bear interest. The Company maintains an allowance for credit losses inherent in its accounts receivable including potential uncollectible amounts. The allowance is based on the Company’s periodic assessment of the collectability of the accounts based on a combination of factors including the payment terms of each account, its age, the collection history of each customer, and the customer’s financial condition. Expenses associated with credit losses for the years ended December 31, 2023, 2022 and 2021 were $2,040, $1,622 and $594, respectively. The Company wrote off bad debts in the amount of $2,130, $1,463 and $609 during 2023, 2022 and 2021, respectively.
Property and Equipment, Net
  F. Property and Equipment, Net

 

Property and equipment, net is stated at cost, less accumulated depreciation and amortization. Depreciation is computed on a straight-line basis over the estimated useful lives of the related assets (see Note 2H). Expenditures for maintenance and repairs are expensed as incurred. Disposals are removed at cost less accumulated depreciation and any gain or loss from disposals is reflected in the consolidated statement of operations in the period of disposition.
Internal Use Software Development Costs
  G. Internal Use Software Development Costs

 

The Company capitalizes certain internal use software development costs related to its cloud-based platform or to back-office operating systems (amortized over six years). The costs consist of personnel costs incurred during the application development stage. Capitalization begins when the preliminary project stage is completed, and it is probable that the software will be completed and used for its intended function.

 

Capitalization ceases when the software is substantially complete and ready for its intended use, including the completion of all significant testing. Costs related to preliminary project activities and post implementation operating activities are expensed as incurred.

 

Capitalized software development costs are included in property and equipment, net in the consolidated balance sheet (see Note 4) and are amortized over the estimated useful life of the software, on a straight-line basis, which represents the manner in which the expected benefit will be derived. Amortization expenses are included in cost of revenue in the consolidated statement of operations. Management evaluates the useful lives of these assets on an annual basis and tests for impairment whenever events or changes in circumstances occur that could impact the recoverability of these assets.
Amortization and Impairment of Long-Lived Assets
  H. Depreciation, Amortization and Impairment of Long-Lived Assets:

 

Long-lived assets with definite lives consist of property and equipment. Long-lived assets are amortized over their estimated useful lives which are as follows:

 

  Years
Computers, software, and electronic equipment 3-5
Office furniture and equipment 10-14
Capitalized internal software 3
development costs Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset

 

The Company reviews its long-lived assets for impairment whenever events or circumstances have occurred that indicate that the estimated useful lives of the long-lived assets may warrant revision or that the carrying value of these

 

assets may be impaired. To compute whether assets have been impaired, the estimated undiscounted future cash flows of the assets or asset group are compared to the carrying value. If the undiscounted future cash flows are less than the carrying value, an impairment loss is recognized based on the amount in which the carrying amount exceeds the fair value of the asset or asset group, based on discounted cash flows. There were no events or circumstances that required the Company’s long-lived assets to be tested for impairment during any of the periods presented.
Leases
  I. Leases

 

The Company determines if an arrangement is a lease at inception by determining if the contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration and other facts and circumstances.

 

The Company classifies leases at their inception as either capital or operating leases. A lease that transfers substantially all the risks and rewards incidental to ownership of the leased asset to the Company is classified as a capital lease. For capital leases, at the commencement of the lease term, the leased asset is measured at the lower of fair value or the present value of the minimum lease payments.

 

The leased asset is depreciated over the shorter of its useful life and the lease term. See also Note 2X.

 

For operating leases, right-of-use (“ROU”) assets and lease liabilities are recognized at commencement date based on the present value of remaining lease payments over the lease term. For this purpose, the Company considers only payments that are fixed and determinable at the time of commencement. As the Company’s leases do not provide an implicit rate, the Company uses the incremental borrowing rate based on the information available at commencement date in determining the present value of lease payments. The incremental borrowing rate is a hypothetical rate based on the Company’s understanding of what its credit rating would be. The ROU assets also include any lease payments made prior to commencement and are recorded net of any lease incentives received. The lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise such options.

 

The lease agreements may contain variable costs such as common area maintenance, insurance, real estate taxes or other costs. Variable lease costs are expensed as incurred on the consolidated statements of operations. The Company’s lease agreements generally do not contain any residual value guarantees, restrictions, or covenants.

 

For operating leases that contain renewals, or other lease incentives, the Company recognizes the rent expense on a straight-line basis over the term of the lease. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.

 

Certain lease agreements include rental payments adjusted periodically for the consumer price index (“CPI”). The ROU assets and lease liabilities were calculated using the initial CPI and will not be subsequently adjusted.

 

Payments for variable lease costs are expensed as incurred and are not included in the operating lease ROU assets and lease liabilities.

 

The Company utilized the practical expedient in ASC 842, Leases (“ASC 842”) and elected not to record leases with an initial term of 12 months or less on the balance sheet. Therefore, for short-term leases with a term of 12 months or less, operating lease ROU assets and lease liabilities are not recognized, and the Company records such lease payments in the consolidated statements of operations on a straight-line basis over the lease term.

 

Rent expenses for the years ended December 31, 2023, 2022 and 2021, were $21,369, $16,396, and $4,326, respectively. See also Note 8.
Employee Related Obligations
  J. Employee Related Obligations

 

According to the Israeli Severance Pay Law, 1963 (“Severance Pay Law”), employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one-month salary for each year of employment, or a portion thereof. The Company’s liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law (“Section 14”).

 

Under Section 14 employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, contributed on their behalf to their insurance funds. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees.

 

Therefore, the Company does not recognize a liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company’s balance sheet. Severance expenses for the years ended December 31, 2023, 2022 and 2021, amounted to $8,435, $7,289, and $4,608, respectively.

 

The Company’s U.S. Subsidiary has a 401(K) defined contribution plan covering certain employees in the U.S. All eligible employees may elect to contribute up to 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits. The expenses recorded by the U.S. subsidiary for employer’s contributions were $1,898, $1,551, and $915 for the years ended December 31, 2023, 2022 and 2021, respectively.
Contingent Liabilities
  K. Contingent Liabilities

 

The Company accounts for its contingent liabilities in accordance with ASC 450, Contingencies (“ASC 450”). A provision is recorded when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. With respect to legal matters, provisions are reviewed and adjusted to reflect the impact of negotiations, estimated settlements, legal rulings, advice of legal counsel and other information and events pertaining to a particular matter.
Revenue Recognition
  L. Revenue Recognition

 

The Company generates revenue from the sale of subscriptions to customers to access its cloud-based Work OS platform. The terms of the Company’s subscription agreements are primarily monthly or annual, and a large portion of the arrangements are paid in full up-front at the outset of the arrangement. Customers may not take possession over the software and instead are granted continuous access to the platform over the contractual period and therefore the arrangements are accounted for as service contracts.

 

The Company’s contracts generally include fixed number of users and fixed price per user. Revenue for these arrangements is recognized ratably over the contract term.

 

The Company’s subscription contracts are generally non-cancelable except for contracts with first-time customers whereby the contract terms provide rights to cancel the contract in the first 30 days for pro-rated refund for unutilized days. Historically, refunds have not been material, and therefore no provision for refunds was recorded to date.

 

In accordance with ASC 606, Revenue from Contracts with Customers (“ASC 606”), revenue is recognized when a customer obtains control of promised services. The amount of revenue recognized reflects the consideration the Company expects to be entitled to receive in exchange for these services.

 

The Company determines revenue recognition through the following steps:

 

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

 

The Company considers the terms and conditions of the contracts and the Company’s customary business practices in identifying its contracts under ASC 606. The Company determines it has a contract with a customer when the contract has been approved by both parties, it can identify each party’s rights regarding the services to be transferred and the payment terms for the services, it has determined the customer to have the ability and intent to pay, and the contract has commercial substance.

 

The Company applies certain judgment in determining the customer’s ability and intent to pay, which is based on a variety of factors, including the customer’s payment history or, in the case of a new customer, credit and financial information pertaining to the customer.

 

2. Identification of the performance obligations in the contract

 

Performance obligations committed in a contract are identified based on the services that will be transferred to the customer that are both capable of being distinct, whereby the customer can benefit from the service either on its own or together with other resources that are readily available, and are distinct in the context of the contract, whereby the transfer of the services and the products is separately identifiable from other promises in the contract. The Company’s performance obligations generally consist of access to the cloud-based platform and related support services which is considered one performance obligation. The customers do not have the ability to take possession of the software, and through access to the platform the Company provides a series of distinct software-based services that are satisfied over the term of the subscription.

 

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 services to the customer. Payment terms are generally upfront at the time of the transaction, except for enterprise customers which are generally net 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 Company applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component.

 

The Company’s policy is to exclude sales and other indirect taxes when measuring the transaction price.

 

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

 

The Company’s contracts contain a single performance obligation. Therefore, the entire transaction price is allocated to the single performance obligation.

 

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

 

Revenue is recognized ratably over the term of the subscription agreement generally beginning on the date that the platform is made available to a customer.

 

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. The Company records contract liabilities when cash payments are received in advance of performance to deferred revenue or to customer advances in case of refund rights.

 

The Company recognized $198,099, $134,438, and $70,719 of revenue during the years ended December 31, 2023, 2022 and 2021, respectively, that were included in the deferred revenue balance at the beginning of the respective year.

 

Remaining performance obligations

The Company has elected to apply the practical expedient in ASC 606 and does not disclose the value of unsatisfied performance obligations for unearned revenue since the original expected duration of the majority of the contracts is one year or less.

 

Contract costs

For costs that the Company would have capitalized and amortized over one year or less, the Company has elected to apply the practical expedient and expense these contract costs as incurred. Costs associated with multi-year contracts have been capitalized and amortized over the associated contract period.
Cost of Revenue
  M. Cost of Revenue

 

Cost of revenue primarily consists of costs related to providing subscription services to paying customers, including hosting costs, personnel-related expenses of customer support including share-based compensation, subcontractors costs, merchant and credit-cards processing fees, amortization of capitalized software development costs and allocated overhead costs.
Research and Development Costs
  N. Research and Development Costs

 

Research and development costs are expensed as incurred unless these costs qualify for capitalization as internal-use software development costs.

 

Research and development expenses consist primarily of personnel-related expenses, including share-based compensation and allocated overhead costs.
Sales and Marketing
  O. Sales and Marketing

 

Sales and marketing expenses are primarily comprised of costs of the Company’s marketing personnel including share-based compensation, online marketing expenses and other advertising costs, partners’ commissions and allocated overhead costs. Sales and marketing expenses are expensed as incurred. Advertising costs amounted to $203,235, $181,447, and $143,472, in the years ended December 31, 2023, 2022 and 2021, respectively.
General and Administrative
  P. General and Administrative

 

General and administrative expenses primarily consist of personnel-related and share-based compensation expenses associated with the Company’s executives, as well as its finance, legal, human resources and other operational and administrative functions, professional fees for external legal, accounting, and other consulting services, directors and officer’s insurance expenses, donations and allocated overhead costs.
Accounting for Share-Based Compensation
  Q. Accounting for Share-Based Compensation

 

The Company accounts for share-based compensation under ASC 718, Compensation - Stock Compensation (“ASC 718”), which requires the measurement and recognition of compensation expense based on estimated fair values for all share-based payment awards made to employees, non-employee consultants and directors, including options, restricted share units (“RSUs”), and shares issued pursuant to the 2021 Employee Share Purchase Plan (“ESPP”) based on the fair value of the awards on the date of grant as follows: (i) share options – the fair value is based on the Black-Scholes option-pricing model, (ii) RSUs – the fair value is based on the closing trading price of the underlying shares at the date of grant and, (iii) ESPP – the fair value is based on the Monte-Carlo simulation model due to certain limitation on the number of shares per employee.

 

The expense for share-based compensation cost is recognized over the requisite service period of each individual grant using the graded vesting attribution method for both service-based and performance-based awards. Forfeitures are accounted for as they occur.

 

The Company granted its Co-Chief Executive Officers (“Co-CEOs”) performance-based awards. The number of performance awards earned and eligible to vest are generally determined after a one-year performance period, based on achievement of certain Company financial performance measures and the recipient’s continued service. The Company recognizes share-based compensation expense for the performance awards using the fair value at the date of grant over the requisite service when it is probable that the

 

performance conditions will be achieved and adjusts the number of units expected to vest based on interim estimates of performance against the pre-set objectives.

 

Valuation assumptions used in measuring compensation costs:

 

(I) Options:

 

The Black-Scholes option-pricing model requires the Company to make several assumptions, including the value of the Company’s ordinary shares, expected volatility, expected term, risk-free interest rate and expected dividends. The Company evaluates the assumptions used to value option awards upon each grant of share options.

 

Expected volatility was calculated based on the implied volatilities from market comparisons of certain publicly traded companies. The expected option term was calculated based on the simplified method, which uses the midpoint between the vesting date and the contractual term, as the Company does not have sufficient historical data to develop an estimate based on participant behavior. The risk-free interest rate was based on the U.S. treasury bonds yield with an equivalent term. The Company has not paid dividends and has no foreseeable plans to pay dividends. The assumptions used to determine the fair value of the share-based awards are management’s best estimates and involve inherent uncertainties and the application of judgment.

 

Commencing June 10, 2021, the ordinary shares of the Company are publicly traded. Prior to the Initial Public Offering (“IPO”), the fair value of ordinary shares underlying the options has historically been determined by management with the assistance of a third-party valuation firm and approved by the Company’s board of directors.

 

The following table summarizes the Black-Scholes assumptions used at the grant dates:

 

  Year ended December 31,
  2023   2022   2021
Risk-free interest rate 3.48%-4.49%   1.89%-4.3%   0.68%-1.15%
Expected dividend yield 0%   0%   0%
Expected term (in years) 5-7   5-7   5-8
Expected volatility 57%-65%   49%-57%   49%-50%

 

(II) ESPP:

 

The following table summarizes the Monte-Carlo model assumptions used at the grant dates:

 

  Year ended December 31,
  2023   2022
Risk-free interest rate 4.92%-5.24%   0.46%-2.87%
Expected dividend yield 0%   0%
Expected term (in years) 0.5   0.5
Expected volatility 54%-80%   97%-98%
Income Taxes
  R. Income Taxes

 

The Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”), using the liability method whereby deferred tax assets and liability account balances are determined based on the differences between financial reporting and the tax basis for assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to the amounts that are more likely-than-not to be realized. As of December 31, 2023 and 2022, the Company recorded a full valuation allowance against its deferred tax assets.

 

The Company applies a more-likely-than-not recognition threshold to uncertain tax positions based on the technical merits of the income tax positions taken. The Company does not recognize a tax benefit unless it is more likely than not that the tax position will be sustained upon examination, including resolution of any related appeals or litigation processes, based on the technical merits of the position. The tax benefit that is recorded for these positions is measured at the largest amount of benefit that is greater than 50% likely of being realized upon ultimate settlement. As of December 31, 2023 and 2022, no liability for unrecognized tax benefits was recorded due to immateriality.
Net Loss Per Share Attributable to Ordinary Shareholders
  S. Net Loss Per Share Attributable to Ordinary Shareholders

 

The Company’s basic net loss per share is calculated by dividing net loss attributable to ordinary shareholders by the weighted-average number of shares of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net loss per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury shares method or the if-converted method based on the nature of such securities.

 

Diluted net loss per share is the same as basic net loss per share since the effects of potentially dilutive shares of ordinary shares are anti-dilutive in all periods presented. The potentially dilutive options to purchase ordinary shares and RSUs that were excluded from the computation amounted to 4,294,853, 4,617,018 and 6,302,344, for the years ended December 31, 2023, 2022, and 2021, respectively, because including them would have been anti-dilutive. The Founder’s share is not a participating security and therefore excluded from the net loss per share.
Concentration of Credit Risks
  T. Concentration of Credit Risks

 

Financial instruments that subject the Company to significant concentrations of credit risk consist primarily of cash and cash equivalents (including money market funds and bank deposits up to three months) and accounts receivable.

 

For cash and cash equivalents, the Company is exposed to credit risk in the event of default by the financial institutions to the extent of the amounts recorded on the accompanying consolidated balance sheets exceed federally insured limits. The Company places its cash and cash equivalents with financial institutions with high-quality credit ratings in the United States, Israel, Ireland, Cayman Islands, and Luxembourg and has not experienced any losses in such accounts.

 

For accounts receivable, the Company is exposed to credit risk in the event of nonpayment by customers to the extent of the amounts recorded on the accompanying consolidated balance sheets. For each of the years ended December 31, 2023, and 2022, there were no individual customers that accounted for 10% or more of the Company’s revenues. The Company’s accounts receivable are geographically diversified and derived primarily from sales in the United States, EMEA, and APAC. To manage its accounts receivable risk, the Company evaluates the credit worthiness of its customers and maintains allowances for potential credit losses.

 

The Company has not historically experienced any material credit losses related to individual customers or groups of customers in any specific area or industry.
Segment Information
  U. Segment Information

 

The Company has a single operating and reportable segment. The Company’s chief operating decision makers are its two Co-CEOs, who review financial information presented on a consolidated basis for purposes of making operating decisions, assessing financial performance, and allocating resources. For information regarding the Company’s long-lived assets and revenue by geographic area, see Note 15.
Fair Value measurements
  V. 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.

 

The carrying amount of cash and cash equivalents, accounts receivable, prepaid expenses, accounts payable, and accrued expenses, are stated at their carrying value, which approximates fair value due to the short maturities of these instruments.

 

Assets measured at fair value on a recurring basis as of December 31, 2023, and 2022, are comprised of money market funds and derivative instruments (see Note 7).
Derivative Financial Instruments
  W. Derivative Financial Instruments

 

Derivatives are recognized at fair value as either assets or liabilities in the consolidated balance sheets in accordance with ASC 815, Derivatives and Hedging (“ASC 815”). The gain or loss of derivatives which are designated and qualify as hedging instruments in a cash flow hedge, is recorded under accumulated other comprehensive income (loss) and reclassified into earnings

 

in the same period or periods during which the hedged transaction affects earnings. Derivatives are classified within Level 2 of the fair value hierarchy as the valuation inputs are based on quoted prices and market observable data of similar instruments.

 

The Company’s primary objective for holding derivative instruments is to reduce its exposure to foreign currency rate changes. The Company reduces its exposure by entering into forward foreign exchange contracts and option contracts with respect to operating expenses that are forecasted to be incurred in currencies other than the U.S. dollar. A majority of the Company’s revenues and operating expenditures are transacted in U.S. dollars. However, certain operating expenditures are incurred in or exposed to other currencies, primarily the New Israeli Shekel (“NIS”).

 

The Company has established forecasted transaction currency risk management programs to protect against fluctuations in fair value and the volatility of future cash flows caused by changes in exchange rates. The Company’s currency risk management program includes foreign exchange contracts designated as cash flow hedges. These foreign exchange contracts generally mature within 12 months. See Note 6.

 

In addition, occasionally the Company enters into swaps, options and forward contracts to hedge a portion of its monetary items in the balance sheet, such as cash and cash equivalents balances, denominated in other currencies for short-term periods.

 

The purpose of these contracts is to protect the fair value of the monetary assets from foreign exchange rate fluctuations. Gains and losses from derivatives related to these contracts are not designated as hedging instruments. The Company does not enter into derivative financial instruments for trading or speculative purposes.
Recently Adopted Accounting Pronouncements
  X. Recently Adopted Accounting Pronouncements:

 

On January 1, 2022, the Company adopted Accounting Standards Update (“ASU”) No. 2016-02, Leases (ASC 842) using a modified retrospective transition approach. It applied ASC 842 to all leases as of January 1, 2022, without adjusting the comparative periods presented which requires lessees to include all leases on their balance sheets, whether operating or financing. Upon adoption, the Company recognized total ROU asset of $58,084, with corresponding liability in the same amount on the consolidated balance sheets. The adoption did not impact the beginning retained earnings, or prior year consolidated statements of operations and statements of cash flows.

 

On January 1, 2022, the Company adopted ASU No. 2016-13, “Financial Instruments – Credit Losses (ASC 326): Measurement of Credit Losses on Financial Instruments”, which replaces the existing incurred loss impairment model with an expected credit loss model and requires a financial asset measured at amortized cost to be presented at the net amount expected to be collected, include accounts receivable. It also eliminates the concept of other-than-temporary impairment and requires credit losses related to available-for-sale debt securities to be recorded through an allowance for credit losses rather than as a reduction in the amortized cost basis of the securities. These changes will result in more timely recognition of credit losses. The adoption of the guidance did not have a material impact on the Company’s consolidated financial statements.

 

In December 2019, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes” (ASU 2019-12). The ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intra period tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The Company prospectively adopted this ASU effective January 1, 2022. As of the date of the adoption there was no material impact on the Company’s consolidated financial statements.
Accounting Pronouncements Not Yet Effective
  Y. Accounting pronouncements not yet effective

 

In November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280), Improvements to Reportable Segment Disclosures” to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses on an interim and annual basis. All disclosure requirements of ASU 2023-07 are required for entities with a single reportable segment. ASU 2023-07 is effective starting January 1, 2024 and should be applied on a retrospective basis to all periods presented. Early adoption is permitted. The Company is currently evaluating the effect of adopting the ASU on its disclosures.

 

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740) – “Improvements to Income Tax Disclosures”. The ASU requires that an entity disclose specific categories in the effective tax rate reconciliation as well as provide additional information for reconciling items that meet a quantitative threshold. Further, the ASU requires certain disclosures of state versus federal income tax expense and taxes paid. The amendments in this ASU are required to be adopted starting January 1, 2025. Early adoption is permitted, and the amendments should be applied on a prospective basis. The Company is currently evaluating the effect of adopting the ASU on its disclosures.
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of useful lives of long-lived assets
  Years
Computers, software, and electronic equipment 3-5
Office furniture and equipment 10-14
Capitalized internal software 3
development costs Leasehold improvements Shorter of the remaining term of the underlying lease, or estimated useful life of the asset
Schedule of black-scholes stock option assumptions used at the grant dates
  Year ended December 31,
  2023   2022   2021
Risk-free interest rate 3.48%-4.49%   1.89%-4.3%   0.68%-1.15%
Expected dividend yield 0%   0%   0%
Expected term (in years) 5-7   5-7   5-8
Expected volatility 57%-65%   49%-57%   49%-50%
Schedule of black-scholes ESPP assumptions used at the grant dates

 

  Year ended December 31,
  2023   2022
Risk-free interest rate 4.92%-5.24%   0.46%-2.87%
Expected dividend yield 0%   0%
Expected term (in years) 0.5   0.5
Expected volatility 54%-80%   97%-98%
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)
 12 Months Ended
Dec. 31, 2023
Prepaid Expense and Other Assets, Current [Abstract]  
Schedule of prepaid expenses and other current assets
    December 31,  
    2023     2022  
Prepaid expenses   $ 13,189     $ 13,610  
Government institutions     2,731       2,268  
Derivative instruments     9,806       —  
Interest receivable     4,484       3,872  
Short-term vendor deposits     6,675       3,924  
Deferred commission     1,810       —  
Other current assets     408       1,051  
Total prepaid expenses and other current assets   $ 39,103     $ 24,725  
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of property and equipment, net
    December 31,  
    2023     2022  
Computer, software, and electronic equipment   $ 14,995     $ 12,569  
Office furniture and equipment     9,094       6,926  
Leasehold improvements     16,419       13,289  
Capitalized internal use software development costs     14,616       10,597  
Capital leases     254       254  
Property and equipment, gross     55,378       43,635  
Less accumulated depreciation and amortization     (17,960 )     (9,219 )
Property and equipment, net   $ 37,418     $ 34,416  
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Accrued Liabilities, Current [Abstract]  
Schedule of accrued expenses and other current liabilities
    December 31,  
    2023     2022  
Accrued employee compensation and benefits   $ 63,440     $ 44,639  
Accrued expenses     31,810       18,983  
Derivative instruments     —       3,208  
Advances from customers     2,801       2,805  
Income and indirect taxes payable     8,640       4,071  
Total   $ 106,691     $ 73,706  
v3.24.0.1
DERIVATIVES AND HEDGING (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of fair values of derivative instruments
    Balance sheet line item   December 31,  
        2023     2022  
Derivatives designated as                
                 
hedging instruments:                    
Foreign exchange contracts   Other current liabilities   $ —     $ (3,208 )
    Prepaid expenses and other current assets     9,806       —  
Derivatives not designated as hedging instruments:         9,806       (3,208 )
          —       —  
Total       $ 9,806     $ (3,208 )
Schedule of income and other comprehensive income
    Gain (Loss) Recognized in Other Comprehensive Income on Effective-Portion of Derivative, net     Realized Loss on Derivative Reclassified from Accumulated Other Comprehensive Income (*)     Amount Excluded from Effectiveness Testing Recognized in Income (Loss)(**)  
    Year ended December 31     Year ended December 31     Year ended December 31  
    2023     2022     2023     2022     2023     2022  
Derivatives designated as hedging instruments:                  
Foreign exchange contracts   $ 4,273     $ (11,386 )   $ 8,741     $ 7,582     $ —     $ —  
      4,273       (11,386 )     8,741       7,582       —       —  
Derivatives not designated as hedging instruments:                                                
Foreign exchange contracts     —       —       —       —       —       (1,801 )
      —      

—

       —       —       —       (1,801 )
Total   $ 4,273     $ (11,386 )   $ 8,741     $ 7,582     $ —     $ (1,801 )

 

(*) Classified in operating expenses in the consolidated statement of operations.

(**) Includes derivatives not designated as accounting hedge. Classified in financial income (expense), net, in the consolidated statement of operations.
Schedule of notional amounts of outstanding derivative

 

    As of December 31,  
    2023     2022  
Derivatives designated as hedging instruments:            
Foreign exchange contracts:                
NIS   $ 157,430     $ 81,557  
    $ 157,430     $ 81,557  
v3.24.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
Fair Value Disclosures [Abstract]  
Schedule of fair value of financial assets and liabilities
    As of December 31,  
    2023     2022  
    Level 1     Level 2     Total     Level 1     Level 2     Total  
Cash equivalents:                                                
Bank deposits   $ —     $ —     $ —     $ 625,000     $ —     $ 625,000  
Money market funds     1,024,658       —       1,024,658       80,888       —       80,888  
Foreign currency                                                
derivative contracts:                                                
Foreign exchange contracts     —       9,806       9,806       —       (3,208 )     (3,208 )
Total   $ 1,024,658     $ 9,806     $ 1,034,464     $ 705,888     $ (3,208 )   $ 702,680  
v3.24.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Schedule of operating leases future minimum lease payments
Years Ending December 31,     Amount  
2024     $ 18,830  
2025       18,683  
2026       12,439  
2027       8,449  
2028       6,095  
Thereafter       -  
Total undiscounted cash flows     $ 64,496  
Less: Imputed interest     $ (3,349 )
Present value of lease liabilities     $ 61,147  
Schedule of supplemental balance sheet information

 

    Year ended December 31,
    2023   2022
Weighted-average remaining lease term   3.7 years   4.5 years
Weighted-average discount rate   3.5%   3.6%
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Tables)
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
Schedule of future minimum payments, other commitments, liability, fiscal year maturity
Years Ending December 31,     Amount  
2024     $ 15,105  
2025       1,564  
2026       143  
Total contractual obligations     $ 16,812  
v3.24.0.1
FINANCIAL INCOME (EXPENSES), NET (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Schedule of financial income (expenses)
    Year ended December 31,  
    2023     2022     2021  
Financial expenses:                        
Bank charges and other   $ 443     $ 730     $ 566  
Interest on credit facility and amortization of debt issuance fees     —       62       405  
Exchange rate expense, net     —       —       742  
Total financial expenses     443       792       1,713  
                         
Financial income:                        
Exchange rate income, net     361       4,687       —  
Interest income on deposits     41,993       18,659       875  
Total financial income     42,354       23,346       875  
Financial income (expenses), net   $ 41,911     $ 22,554     $ (838 )
v3.24.0.1
SHAREHOLDERS' EQUITY (Tables)
 12 Months Ended
Dec. 31, 2023
Stockholders' Equity Note [Abstract]  
Schedule of ordinary shares reserved for future issuance
    As of December 31,  
    2023     2022  
Ordinary shares     48,923,903       47,737,868  
Outstanding share options and RSUs     4,294,853       4,617,018  
Shares available for future grants under the 2021 plan     7,847,149       6,243,273  
Shares subject to the employee share purchase plan     1,233,812       721,469  
Total     62,299,717       59,319,628  
Schedule of share option activity

 

    Number of
Options		     Weighted-Average
Exercise Price		     Weighted Average
Remaining
Contractual life		     Aggregate
Intrinsic Value		  
Outstanding — January 1, 2023 (*)     3,800,024     $ 39.60       7.46     $ 347,627  
Granted (*)     207,305     $ 122.62                  
Exercised     (767,148 )   $ 15.18                  
Expired and forfeited     (160,929 )   $ 86.35                  
Outstanding — December 31, 2023     3,079,252     $ 48.82       6.71     $ 435,699  
Exercisable — December 31, 2023 (*)     2,106,504     $ 32.98       6.25     $ 329,924  

(*) Includes 73,074 performance options granted to the Company’s Co-CEOs in 2022. and 74,108 performance options granted to the Company’s Co-CEOs in 2023, as applicable.

Schedule of unvested restricted stock units

 

    Number of
Units		     Weighted-
Average Fair
Value		  
Balance at January 1, 2023     816,994     $ 126.29  
Granted (*)     846,540     $ 138.84  
Vested     (338,034 )   $ 128.44  
Canceled     (109,899 )   $ 126.59  
Balance at December 31, 2023 (*)     1,215,601     $ 134.41  

 

(*) Includes 22,928 performance shares granted to the Company’s Co-CEOs in 2023.

Schedule of share-based compensation expense

 

    Year ended December 31,  
    2023     2022     2021  
Cost of revenues   $ 6,307     $ 10,406     $ 7,681  
Research and development     38,737       32,957       21,779  
Sales and marketing     25,395       33,457       23,135  
General and administrative     29,747       28,100       20,934  
Share-based compensation, net of amounts capitalized   $ 100,186     $ 104,920     $ 73,529  
Capitalized share-based compensation costs     1,997       2,282       1,522  
Total share-based compensation   $ 102,183     $ 107,202     $ 75,051  
v3.24.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of domestic and foreign components of loss before income taxes
    Year ended December 31,  
    2023     2022     2021  
Domestic (Israel)   $ (10,368 )   $ (142,527 )   $ (132,203 )
Foreign     13,694       13,066       5,240  
Total   $ 3,326     $ (129,461 )   $ (126,963 )
Schedule of domestic and foreign components of income taxes
    Year ended December 31,  
    2023     2022     2021  
Domestic (Israel)   $ 557     $ 649     $ 180  
Foreign     4,646       6,757       2,151  
Total   $ 5,203     $ 7,406     $ 2,331  
Schedule of effective tax rate reconciliation
    Year ended December 31,  
    2023     2022     2021  
    Tax     Rate     Tax     Rate     Tax     Rate  
Theoretical tax benefit   $ 765       23 %   $ (29,776 )     23 %   $ (29,201 )     23 %
Increase (decrease) in tax rate due to:                                                
Change in valuation allowance     (5,294 )     (159 %)     8,489       (7 %)     14,968       (12 %)
Share-based compensation     11,262       339 %     14,806       (11 %)     10,184       (8 %)
Tax benefit relating to exercise of disqualified ISO     (1,408 )     (42 %)     (1,394 )     1 %     (3,069 )     2 %
Initial public offering costs     (1,800 )     (54 %)     (1,800 )     1 %     (5,399 )     4 %
Preferred technological enterprise and the effect of different tax rates in other jurisdictions     1,140       34 %     15,523       (12 %)     14,460       (11 %)
Currency differences     —       0 %     768       1 %     18       0 %
Other     538       16 %     790       1 %     370       0 %
Effective tax   $ 5,203       156 %   $ 7,406       (6 %)   $ 2,331       (2 %)
Schedule of deferred tax assets and liabilities
    As of December 31,  
    2023     2022  
Net operating loss carry forwards   $ 39,809     $ 39,942  
Research and development     3,780       9,663  
Initial public offering costs     —       1,800  
Other temporary differences     5,320       3,855  
Carryforward tax credits     2,093       1,428  
Gross deferred tax assets     51,002       56,688  
Valuation allowance     (48,430 )     (55,561 )
Total deferred tax assets     2,572       1,127  
Deferred tax liabilities:                
Depreciation and amortization     (2,572 )     (1,127 )
Deferred tax liabilities   $ (2,572 )   $ (1,127 )
Net deferred taxes   $ —     $ —  
v3.24.0.1
LOSS PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of calculation of basic and diluted net loss per share

 

    Year ended December 31,  
    2023     2022     2021  
Numerator:                  
Net loss   $ 1,877     $ 136,867     $ 129,294  
Undistributed earnings attributable to preferred shareholders     —       —       8,203  
Net loss attributable to ordinary shareholders, basic and diluted   $ 1,877     $ 136,867     $ 137,497  
Denominator:                        
Weighted-average ordinary shares outstanding     48,366,378       45,804,714       30,332,006  
Basic and diluted net loss per share   $ (0.04 )   $ (2.99 )   $ (4.53 )
v3.24.0.1
GEOGRAPHICAL INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Schedule of revenues attributed to geographic areas based on location of end customers
    Year ended December 31,  
    2023     2022     2021  
United States   $ 364,070     $ 255,495     $ 148,291  
EMEA     157,134       111,854       67,121  
United Kingdom     73,236       50,625       30,171  
Rest of the world     135,255       101,055       62,567  
    $ 729,695     $ 519,029     $ 308,150  
Schedule of property and equipment, net by geographical areas
    As of December 31,  
    2023     2022  
Israel   $ 31,987     $ 30,260  
United States     4,008       3,171  
Rest of the world     1,423       985  
    $ 37,418     $ 34,416  
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Jan. 01, 2022
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Doubtful accounts expense $ 2,040 $ 1,622 $ 594  
Bad debts written off 2,130 1,463 609  
Rent expenses 21,369 16,396 4,326  
Severance Costs 8,435 7,289 4,608  
Maximum annual contributions 1,898 1,551 915  
Deferred revenue, revenue recognized 198,099 134,438 70,719  
Advertising Expense 203,235 181,447 $ 143,472  
Operating lease right-of-use assets $ 62,280 $ 80,197   $ 58,084
Outstanding share options and RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Antidilutive securities excluded from computation of earnings per share 4,294,853 4,617,018 6,302,344  
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Details)
 12 Months Ended
Dec. 31, 2023
Computers, software, and electronic equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Computers, software, and electronic equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Office furniture and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 10 years
Office furniture and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 14 years
Capitalized internal software  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Development costs Leasehold improvements  
Property, Plant and Equipment [Line Items]  
Estimated useful lives Shorter of the remaining term of the underlying lease, or estimated useful life of the asset
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Details 1)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 0.00% 0.00% 0.00%
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 3.48% 1.89% 0.68%
Expected term (in years) 5 years 5 years 5 years
Expected volatility 57.00% 49.00% 49.00%
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 4.49% 4.30% 1.15%
Expected term (in years) 7 years 7 years 8 years
Expected volatility 65.00% 57.00% 50.00%
v3.24.0.1
SIGNIFICANT ACCOUNTING POLICIES (Details 2)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 0.00% 0.00% 0.00%
Employee stock purchase plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Expected dividend yield 0.00% 0.00%  
Expected term (in years) 6 months 6 months  
Minimum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 3.48% 1.89% 0.68%
Expected term (in years) 5 years 5 years 5 years
Expected volatility 57.00% 49.00% 49.00%
Minimum | Employee stock purchase plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 4.92% 0.46%  
Expected volatility 54.00% 97.00%  
Maximum      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 4.49% 4.30% 1.15%
Expected term (in years) 7 years 7 years 8 years
Expected volatility 65.00% 57.00% 50.00%
Maximum | Employee stock purchase plan [Member]      
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Risk-free interest rate 5.24% 2.87%  
Expected volatility 80.00% 98.00%  
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Prepaid Expense and Other Assets, Current [Abstract]    
Prepaid expenses $ 13,189 $ 13,610
Government institutions 2,731 2,268
Derivative instruments 9,806 0
Interest to receive 4,484 3,872
Short-term vendor deposits 6,675 3,924
Deferred commission 1,810 0
Other current assets 408 1,051
Total prepaid expenses and other current assets $ 39,103 $ 24,725
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation and amortization expense $ 8,961 $ 5,913 $ 2,746
Capitalized costs related to the development of internal-use software 4,019 4,931 3,702
Amortization of capitalized software development costs 2,558 1,492 547
Net carrying value of capitalized internal-use software $ 9,693 $ 8,233 $ 4,793
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 55,378 $ 43,635
Less accumulated depreciation and amortization (17,960) (9,219)
Property and equipment, net 37,418 34,416
Computer, software, and electronic equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 14,995 12,569
Office furniture and equipment    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 9,094 6,926
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 16,419 13,289
Capitalized internal use software development costs    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross 14,616 10,597
Capital leases    
Property, Plant and Equipment [Line Items]    
Property and equipment, gross $ 254 $ 254
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accrued Liabilities, Current [Abstract]    
Accrued employee compensation and benefits $ 63,440 $ 44,639
Accrued expenses 31,810 18,983
Derivative instruments 0 3,208
Advances from customers 2,801 2,805
Income and indirect taxes payable 8,640 4,071
Total $ 106,691 $ 73,706
v3.24.0.1
DERIVATIVES AND HEDGING (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Derivative instruments $ 9,806 $ (3,208)
Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative instruments 9,806 (3,208)
Not Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative instruments 0 0
Foreign exchange contracts | Other current liabilities | Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative Liability, Subject to Master Netting Arrangement, before Offset $ 0 (3,208)
Derivative Liability, Current, Statement of Financial Position [Extensible Enumeration] us-gaap:OtherLiabilitiesCurrent  
Foreign exchange contracts | Prepaid expenses and other current assets | Designated as Hedging Instrument [Member]    
Derivative [Line Items]    
Derivative instruments $ 9,806 $ 0
Derivative Asset, Current, Statement of Financial Position [Extensible Enumeration] Other Assets, Current  
v3.24.0.1
DERIVATIVES AND HEDGING (Details 1) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Derivative [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net $ 4,273 $ (11,386) $ 953
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income (loss) 8,741 [1] 7,582 [1] $ (359)
Amount Excluded from Effectiveness Testing Recognized in Income [2] 0 (1,801)  
Designated as hedging Instrument      
Derivative [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net 4,273 (11,386)  
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income (loss) [1] 8,741 7,582  
Amount Excluded from Effectiveness Testing Recognized in Income [2] 0 0  
Not designated as hedging instrument      
Derivative [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net 0 0  
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income (loss) [1] 0 0  
Amount Excluded from Effectiveness Testing Recognized in Income [2] 0 (1,801)  
Foreign exchange contracts | Designated as hedging Instrument      
Derivative [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net 4,273 (11,386)  
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income (loss) [1] 8,741 (7,582)  
Amount Excluded from Effectiveness Testing Recognized in Income [2] 0 0  
Foreign exchange contracts | Not designated as hedging instrument      
Derivative [Line Items]      
Gain (Loss) Recognized in Other Comprehensive Income on Effective - Portion of Derivative, net 0 0  
Realized Gain on of Derivative Reclassified from Accumulated Other Comprehensive Income (loss) [1] 0 0  
Amount Excluded from Effectiveness Testing Recognized in Income [2] $ 0 $ (1,801)  
[1] Classified in operating expenses in the consolidated statement of operations.
[2] Includes derivatives not designated as accounting hedge. Classified in financial income (expense), net, in the consolidated statement of operations.
v3.24.0.1
DERIVATIVES AND HEDGING (Details 2) - Foreign exchange contracts - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivative [Line Items]    
Derivatives designated as hedging instruments $ 157,430 $ 81,557
NIS    
Derivative [Line Items]    
Derivatives designated as hedging instruments $ 157,430 $ 81,557
v3.24.0.1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total $ 1,034,464 $ 702,680
Bank Deposits [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 625,000
Money Market Funds [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 1,024,658 80,888
Foreign exchange contracts    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency derivative contracts 9,806 (3,208)
Level 1 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total 1,024,658 705,888
Level 1 [Member] | Bank Deposits [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 625,000
Level 1 [Member] | Money Market Funds [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 1,024,658 80,888
Level 1 [Member] | Foreign exchange contracts    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency derivative contracts 0 0
Level 2 [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Total 9,806 (3,208)
Level 2 [Member] | Bank Deposits [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 0
Level 2 [Member] | Money Market Funds [Member]    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Cash equivalents 0 0
Level 2 [Member] | Foreign exchange contracts    
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]    
Foreign currency derivative contracts $ 9,806 $ (3,208)
v3.24.0.1
LEASES (Narrative) (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
Lessee, Lease, Description [Line Items]  
Term of lease 2 years
Undiscounted future payments $ 1,700
v3.24.0.1
LEASES (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 18,830
2025 18,683
2026 12,439
2027 8,449
2028 6,095
Thereafter 0
Total undiscounted cash flows 64,496
Less: Imputed interest (3,349)
Present value of lease liabilities $ 61,147
v3.24.0.1
LEASES (Details 1)
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Weighted-average remaining lease term 3 years 8 months 12 days 4 years 6 months
Weighted-average discount rate 3.50% 3.60%
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Narrative) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Commitments and Contingencies Disclosure [Abstract]    
Bank guarantee to secure lease agreements $ 6,815 $ 6,871
Total undiscounted cash flows $ 4,318  
Lease term 5 years  
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
2024 $ 15,105
2025 1,564
2026 143
Total contractual obligations $ 16,812
v3.24.0.1
FINANCIAL INCOME (EXPENSES), NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Financial expenses:      
Bank charges and other $ 443 $ 730 $ 566
Interest on credit facility and amortization of debt issuance fees 0 62 405
Exchange rate expense, net 0 0 742
Total financial expenses 443 792 1,713
Financial income:      
Exchange rate income, net 361 4,687 0
Interest income on deposits 41,993 18,659 875
Total financial income 42,354 23,346 875
Financial income (expenses), net $ 41,911 $ 22,554 $ (838)
v3.24.0.1
SHAREHOLDERS' EQUITY (Narrative) (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Jun. 10, 2021
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
Investors
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Stockholders Equity Note [Line Items]        
Share-based compensation cost | $   $ 100,186 $ 104,920 $ 73,529
Options granted [1]   207,305    
Number of ordinary shares reserved and available for grant and issuance   7,847,149 6,243,273  
Share-based compensation | $   $ 102,183 $ 107,202 $ 75,051
Percentage of ownership   25.00%    
Shares reserved for issuance under ESPP   1,233,812 721,469 194,625
Ordinary shares repurchased under ESPP   119,092    
Initial public offering and concurrent private placement        
Stockholders Equity Note [Line Items]        
Net proceeds of deducting underwriting discounts and commissions | $ $ 591,856 $ 6,000    
Additional ordinary shares pursuant to underwriters option to purchase 370,000      
Sale of stock, price per share | $ / shares $ 155      
Number of share issued 3,700,000      
Net proceeds after deducting underwriting discounts and commissions. | $ $ 34,697      
Other issuance costs | $ $ 4,298      
Outstanding convertible preferred shares converted 26,440,239      
Number of investors | Investors   2    
Number of ordinary shares purchased   967,742    
Gross proceeds of consideration per transaction | $   $ 150,000    
Deferred offering costs | $   $ 44,995    
Co-CEO        
Stockholders Equity Note [Line Items]        
Options granted   74,108 73,074  
2017 share option plan        
Stockholders Equity Note [Line Items]        
Weighted-average grant-date fair value of options granted | $ / shares   $ 86.26 $ 69.3 $ 77
Intrinsic value of options exercised | $   $ 112,799 $ 346,600 $ 321,891
Unamortized share-based compensation expense | $   $ 118,311 $ 107,411 $ 101,027
Weighted average period for cost expected to be recognized   1 year 9 months 1 year 9 months 14 days 1 year 11 months 19 days
2021 plan        
Stockholders Equity Note [Line Items]        
Number of ordinary shares reserved and available for grant and issuance   7,847,149    
Share reserve increased   4,633,095    
Unrecognized compensation cost related to unvested restricted share units | $   $ 96,112 $ 64,458 $ 22,821
Weighted average period for cost expected to be recognized   1 year 9 months 18 days 1 year 10 months 6 days 1 year 11 months 23 days
Restricted Stock Units (RSUs)        
Stockholders Equity Note [Line Items]        
Options granted [2]   846,540    
Weighted-average grant-date fair value of options granted | $ / shares [2]   $ 138.84    
Restricted Stock Units (RSUs) | Co-CEO        
Stockholders Equity Note [Line Items]        
Options granted   22,928    
[1] Includes 73,074 performance options granted to the Company’s Co-CEOs in 2022. and 74,108 performance options granted to the Company’s Co-CEOs in 2023, as applicable.
[2] Includes 22,928 performance shares granted to the Company’s Co-CEOs in 2023.
v3.24.0.1
SHAREHOLDERS' EQUITY (Details) - shares
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Class of Stock [Line Items]      
Shares available for future grants under the 2021 plan 7,847,149 6,243,273  
Shares subject to the employee share purchase plan 1,233,812 721,469 194,625
Total 62,299,717 59,319,628  
Ordinary shares      
Class of Stock [Line Items]      
Ordinary shares reserved for future issuance 48,923,903 47,737,868  
Outstanding share options and RSUs      
Class of Stock [Line Items]      
Ordinary shares reserved for future issuance 4,294,853 4,617,018  
v3.24.0.1
SHAREHOLDERS' EQUITY (Details 1) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
 [1]
Number of Options outstanding    
Beginning balance [1] 3,800,024  
Granted [1] 207,305  
Exercised (767,148)  
Expired and forfeited (160,929)  
Ending balance 3,079,252 3,800,024
Exercisable [1] 2,106,504  
Weighted-Average Exercise Price    
Beginning balance [1] $ 39.6  
Granted [1] 122.62  
Exercised 15.18  
Expired and forfeited 86.35  
Ending balance 48.82 $ 39.6
Exercisable [1] $ 32.98  
Weighted Average Remaining Contractual life, Outstanding 6 years 8 months 15 days 7 years 5 months 15 days
Weighted Average Remaining Contractual life, Exercisable [1] 6 years 3 months  
Aggregate Intrinsic Value, outstanding $ 435,699 $ 347,627
Aggregate Intrinsic Value, exercisable [1] $ 329,924  
[1] Includes 73,074 performance options granted to the Company’s Co-CEOs in 2022. and 74,108 performance options granted to the Company’s Co-CEOs in 2023, as applicable.
v3.24.0.1
SHAREHOLDERS' EQUITY (Details 2)
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]  
Granted 207,305 [1]
Restricted Stock Units (RSUs) [Member]  
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares [Roll Forward]  
Balance 816,994
Granted 846,540 [2]
Vested (338,034)
Canceled (109,899)
Balance 1,215,601 [2]
Weighted-Average Fair Value  
Balance | $ / shares $ 126.29
Weighted-average fair value granted | $ / shares 138.84 [2]
Weighted-average fair value vested | $ / shares 128.44
Weighted-average fair value canceled | $ / shares 126.59
Balance | $ / shares $ 134.41 [2]
[1] Includes 73,074 performance options granted to the Company’s Co-CEOs in 2022. and 74,108 performance options granted to the Company’s Co-CEOs in 2023, as applicable.
[2] Includes 22,928 performance shares granted to the Company’s Co-CEOs in 2023.
v3.24.0.1
SHAREHOLDERS' EQUITY (Details 3) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation, net of amounts capitalized $ 100,186 $ 104,920 $ 73,529
Capitalized share-based compensation costs 1,997 2,282 1,522
Total share-based compensation 102,183 107,202 75,051
Cost of revenues      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation, net of amounts capitalized 6,307 10,406 7,681
Research and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation, net of amounts capitalized 38,737 32,957 21,779
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation, net of amounts capitalized 25,395 33,457 23,135
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Share-based compensation, net of amounts capitalized $ 29,747 $ 28,100 $ 20,934
v3.24.0.1
INCOME TAXES (Narrative) (Details)
$ in Thousands, ₪ in Billions
 12 Months Ended
Dec. 31, 2023
ILS (₪)
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2023
USD ($)
Income Tax Disclosure [Abstract]        
Net operating loss carryforwards | $       $ 331,742
Corporate tax rate 23.00% 23.00% 23.00%  
Tax rate for non-israeli subsidiaries 21.00%      
Threshold limit of consolidated revenues subject to tax rate on income derived from intellectual property | ₪ ₪ 10      
Tax rate on income derived from intellectual property 12.00%      
Tax rate of development area 7.50%      
Minimum percentage of annual revenues derived from exports 25.00%      
Tax rate on dividends distributed from income from preferred technological enterprises 20.00%      
Tax rate on dividend distributed to foreign corporate shareholder 4.00%      
Maximum percentage of foreign investors defined for distribution of dividend to foreign corporate shareholder 90.00%      
v3.24.0.1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic (Israel) $ (10,368) $ (142,527) $ (132,203)
Foreign 13,694 13,066 5,240
Loss before income taxes $ 3,326 $ (129,461) $ (126,963)
v3.24.0.1
INCOME TAXES (Details 1) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic (Israel) $ 557 $ 649 $ 180
Foreign 4,646 6,757 2,151
Total $ 5,203 $ 7,406 $ 2,331
v3.24.0.1
INCOME TAXES (Details 2) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Tax      
Theoretical tax benefit $ 765 $ (29,776) $ (29,201)
Increase (decrease) in tax rate due to:      
Change in valuation allowance (5,294) 8,489 14,968
Share-based compensation 11,262 14,806 10,184
Tax benefit relating to exercise of disqualified ISO (1,408) (1,394) (3,069)
Initial public offering costs (1,800) (1,800) (5,399)
Preferred technological enterprise and the effect of different tax rates in other jurisdictions 1,140 15,523 14,460
Currency differences 0 768 18
Other 538 790 370
Effective tax $ 5,203 $ 7,406 $ 2,331
Rate      
Theoretical tax benefit 23.00% 23.00% 23.00%
Change in valuation allowance (159.00%) (7.00%) (12.00%)
Share-based compensation 339.00% (11.00%) (8.00%)
Tax benefit relating to exercise of disqualified ISO (42.00%) 1.00% 2.00%
Initial public offering costs (54.00%) 1.00% 4.00%
Preferred technological enterprise and the effect of different tax rates in other jurisdictions 34.00% (12.00%) (11.00%)
Currency differences 0.00% 1.00% 0.00%
Other 16.00% 1.00% 0.00%
Effective tax 156.00% (6.00%) (2.00%)
v3.24.0.1
INCOME TAXES (Details 3) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred tax assets:    
Net operating loss carry forwards $ 39,809 $ 39,942
Research and development 3,780 9,663
Initial public offering costs 0 1,800
Other temporary differences 5,320 3,855
Carryforward tax credits 2,093 1,428
Gross deferred tax assets 51,002 56,688
Valuation allowance (48,430) (55,561)
Total deferred tax assets 2,572 1,127
Deferred tax liabilities:    
Depreciation and amortization (2,572) (1,127)
Deferred tax liabilities (2,572) (1,127)
Net deferred taxes $ 0 $ 0
v3.24.0.1
LOSS PER SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator:      
Net loss $ 1,877 $ 136,867 $ 129,294
Undistributed earnings attributable to preferred shareholders 0 0 8,203
Net loss attributable to ordinary shareholders, basic and diluted $ 1,877 $ 136,867 $ 137,497
Denominator:      
Weighted-average ordinary shares outstanding, basic 48,366,378 45,804,714 30,332,006
Weighted Average Number of Shares Outstanding, Diluted 48,366,378 45,804,714 30,332,006
Basic net loss per share $ (0.04) $ (2.99) $ (4.53)
Diluted net loss per share $ (0.04) $ (2.99) $ (4.53)
v3.24.0.1
GEOGRAPHICAL INFORMATION (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue, Major Customer [Line Items]      
Revenues $ 729,695 $ 519,029 $ 308,150
Segment revenue benchmark | Geographic concentration risk      
Revenue, Major Customer [Line Items]      
Revenues 729,695 519,029 308,150
United States | Segment revenue benchmark | Geographic concentration risk      
Revenue, Major Customer [Line Items]      
Revenues 364,070 255,495 148,291
EMEA | Segment revenue benchmark | Geographic concentration risk      
Revenue, Major Customer [Line Items]      
Revenues 157,134 111,854 67,121
United Kingdom | Segment revenue benchmark | Geographic concentration risk      
Revenue, Major Customer [Line Items]      
Revenues 73,236 50,625 30,171
Rest of the world | Segment revenue benchmark | Geographic concentration risk      
Revenue, Major Customer [Line Items]      
Revenues $ 135,255 $ 101,055 $ 62,567
v3.24.0.1
GEOGRAPHICAL INFORMATION (Details 1) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Revenue, Major Customer [Line Items]    
Property and equipment, net $ 37,418 $ 34,416
Property and equipment | Geographic concentration risk    
Revenue, Major Customer [Line Items]    
Property and equipment, net 37,418 34,416
Israel | Property and equipment | Geographic concentration risk    
Revenue, Major Customer [Line Items]    
Property and equipment, net 31,987 30,260
United States | Property and equipment | Geographic concentration risk    
Revenue, Major Customer [Line Items]    
Property and equipment, net 4,008 3,171
Rest of the world | Property and equipment | Geographic concentration risk    
Revenue, Major Customer [Line Items]    
Property and equipment, net $ 1,423 $ 985