SHAREHOLDERS' EQUITY
 12 Months Ended
Dec. 31, 2021
Stockholders' Equity Note [Abstract]  
SHAREHOLDERS' EQUITY
NOTE 13:- SHAREHOLDERS' EQUITY
 
  a.
Ordinary shares:
 
The ordinary shares of the Company confer on the holders thereof voting rights, rights to receive dividends and rights to participate in distribution of assets upon liquidation.
 
  b.
Treasury shares:
 
During the year ended December 31, 2021, the Company repurchased 895,136 outstanding ordinary shares for $200,000, through its share repurchase program authorized by the Board of Directors in May 2021.
 
  c.
Share-based payment:
 
In April 2007, the Company's Board of Directors adopted an Employee Shares Incentive Plan (the "2007 Plan"). Under the 2007 Plan, options may be granted to employees, officers, non-employees consultants and directors of the Company and its Subsidiaries. The 2007 plan was terminated on October 15, 2013, although option awards outstanding as of that date will continue in full force in accordance with the terms under which they were granted.
 
In October 2013, the Company's Board of Directors adopted a new Employee Shares Incentive Plan (the "2013 Plan"). The 2013 Plan provides for the grant of options, restricted shares, RSUs and PSUs.
 
Under the Plans, as of December 31, 2021, an aggregate of 2,907,140 shares were still available for future grant. Each option granted under the Plan expires no later than ten years from the date of grant. The vesting period of the options is generally four years, unless the Board of Directors or the Board's Compensation Committee determines otherwise. Any option which is forfeited or cancelled before expiration becomes available for future grants.
 
The total share-based compensation expense related to all of the Company's equity-based awards, which include options, RSUs, PSUs and employee share purchase rights issued pursuant to the Company's ESPP and recognized for the years ended December 31, 2021, 2020 and 2019 was comprised as follows:
 
   
Year ended December 31,
  
   
2021
    
2020
    
2019
  
                   
Cost of revenues
  
$
 15,462    
$
 9,127    
$
 5,854  
Research and development
     70,020       76,883       56,161  
Selling and marketing
     33,853       22,845       18,458  
General and administrative
     102,056       38,458       28,864  
                         
Total share-based compensation expense
  
$
 221,391    
$
 147,313    
$
 109,337  
 

 

Total unrecognized compensation cost amounted to $490,017 as of December 31, 2021, and is expected to be recognized over a weighted average period of approximately 2.92 years.
 
  d.
Options granted to employees:
 
A summary of the activity in options granted to employees for the year ended December 31, 2021 is as follows:
 
   
Number
of
options
    
Weighted
average
exercise
price
    
Weighted
Average
remaining contractual term
(in years)
    
Aggregate
intrinsic value
  
                         
Balance at December 31, 2020
     4,618,380    
$
 74.31       6.74    
$
 812,500  
                                 
Granted
     712,485       250.71                  
Exercised
     (531,788
)
     62.87                  
Forfeited
     (81,877
)
     107.62                  
                                 
Balance at December 31, 2021
     4,717,200       101.66       6.32       339,012  
                                 
Exercisable at December 31, 2021
     3,213,149       65.72       5.39       305,280  
                                 
Vested and expected to vest at December 31, 2021
     4,647,663    
$
 100.60       6.29    
$
 337,290  
 
The Company estimates the fair value of share options granted using the Black-Scholes-Merton option-pricing model. The following table set forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2021, 2020 and 2019:
 
   
Year ended December 31,
   
2021
  
2020
  
2019
             
Expected volatility
  
48.91%-52.22%
  
42.26%-49.24%
  
42.60%-45.24%
Expected dividends
  
0%
  
0%
  
0%
Expected term (in years)
  
4.85-4.91
  
4.84-4.99
  
4.94-4.99
Risk free rate
  
0.44%-1.22%
  
0.25%-1.40%
  
1.51%-2.47%

 

The following table set forth the parameters used in computation of the ESPP for the years ended December 31, 2021, 2020 and 2019:
 
   
Year ended December 31,
   
2021
  
2020
  
2019
             
Expected volatility
  
56.94%-59.23%
  
34.52%-83.3%
  
31.88%-54.49%
Expected dividends
   0%   0%   0%
Expected term (in years)
   0.5   0.5   0.5
Risk free rate
  
0.06%-0.07%
  
0.13%-0.95%
  
1.89%-2.52%
 
A summary of options data for the years ended December 31, 2021, 2020 and 2019, is as follows:
 
   
Year ended December 31,
  
   
2021
    
2020
    
2019
  
                   
Weighted-average grant date fair value of options granted, per optionz
  
$
127.36
    
$
68.91
    
$
53.67
  
Total intrinsic value of the options exercised
  
$
 114,113    
$
 436,187    
$
 128,003  
Total fair value of shares vested
  
$
 49,045    
$
 40,367    
$
 33,316  
 
The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the deemed fair value of the Company's ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise.
 

 

The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2021:
 
Exercise price
(range)
    
Options outstanding
as of
December 31, 2021
    
Weighted average remaining
contractual term
    
Options exercisable
as of December 31,
2021
    
Weighted average remaining
contractual term
  
           
(years)
          
(years)
  
                           
0-19.79
       364,941       2.19       357,975       2.07  
19.8-21.13
       563,467       3.71       563,467       3.71  
21.14-51.32
       243,431       4.08       238,431       4.06  
51.33-56.61
       398,038       5.12       398,038       5.12  
56.62-61.75
       648,082       6.12       579,583       6.12  
61.76-101.67
       332,623       6.57       242,169       6.43  
101.68-102.67
       603,279       7.12       380,074       7.12  
102.68-142.09
       237,781       7.59       137,373       7.48  
142.1-143.13
       520,670       8.14       214,450       8.14  
143.14-353.09
       804,888       9.18       101,589       8.83  
                                   
        4,717,200       6.32       3,213,149       5.39  
 
  e.
Options granted to non-employees consultants:
 
The following table summarizes information about the Company's outstanding and exercisable options to purchase ordinary shares granted to non-employees consultants as of December 31, 2021:
 
Grant
Date
  
Options outstanding
as of
December 31, 2021
    
Exercise price
    
Exercisable
as of December 31,
2021
  
Exercisable through
                     
January 9, 2013
     3,400    
$
 2.34       3,400  
January 9, 2023
 
No options were granted to non-employees during the years ended December 31, 2021, 2020 and 2019.
 

 

  f.
A summary of RSU activity for the year ended December 31, 2021, is as follows:
 
   
Number
of
shares
    
Weighted
average
grant date
fair value per share
  
             
Unvested as of December 31, 2020
     2,078,427    
$
 150.87  
                 
Granted
     1,303,693    
 
 243.47  
Vested
     (935,912
)
  
 
 139.15  
Forfeited
     (220,759
)
  
 
 196.20  
                 
Unvested as of December 31, 2021
     2,225,449    
$
 205.31  
 
PSU activity for the year ended December 31, 2021 was not material.
 
  g.
Comprehensive income (loss):
 
The following table summarizes the changes in accumulated other comprehensive income (loss), which is reported as a component of shareholders’ equity, for the years ended December 31, 2021 and 2020:
 
   
Year ended December 31, 2021
  
   
Marketable securities
    

Cash flow
hedges

    
Total
  
                   
Beginning balance, net
  
$
 3,768    
$
 5,638    
$
 9,406  
Other comprehensive income before reclassifications, net
     (4,672
)
     119       (4,553
)
Amounts reclassified from accumulated other comprehensive income to earnings:
                        
Cost of revenues
     -       (279
)
     (279
)
Research and development, net
     -       (3,644
)
     (3,644
)
Selling and marketing
     -       (1,217
)
     (1,217
)
General and administrative
     -       (740
)
     (740
)
Financial income (expenses), net
     (29
)
     -       (29
)
                         
Total accumulated other comprehensive income, net
  
$
 (933
)
  
$
 (123
)
  
$
 (1,056
)

 

   
Year ended December 31, 2020
  
   

Marketable
securities

    

Cash flow
hedges

    
Total
  
                   
Beginning balance, net
  
$
 852    
$
 505    
$
 1,357  
Other comprehensive income before reclassifications, net
     2,962       11,425       14,387  
Amounts reclassified from accumulated other comprehensive income to earnings:
                        
Cost of revenues
     -       (269
)
     (269
)
Research and development, net
     -       (3,995
)
     (3,995
)
Selling and marketing
     -       (1,300
)
     (1,300
)
General and administrative
     -       (728
)
     (728
)
Financial income (expenses), net
     (46
)
     -       (46
)
                         
Total accumulated other comprehensive income, net
  
$
 3,768    
$
 5,638    
$
 9,406