DERIVATIVES AND HEDGING

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

NOTE 6: DERIVATIVES AND HEDGING

The Company entered into forward, put and call option contracts to hedge certain forecasted payroll costs denominated in NIS against exchange rate fluctuations of the U.S. dollar for a period of up to twelve months. The Company recorded the cash flows associated with these derivatives under operating activities. The Company does not use derivative instruments for trading or speculative purposes.

Notional Amount of Foreign Currency Contracts

The Company had outstanding contracts designated as hedging instruments in the aggregate notional amount of $22,797 and $8,345 as of March 31, 2023, and December 31, 2022, respectively. The fair value of the Company’s outstanding contracts amounted to an asset of $5 and $—, and a liability of $485 and $120 as of March 31, 2023 and December 31, 2022, respectively. These assets and liabilities were recorded under prepaid expenses and other current assets and accrued expenses and other current liabilities, respectively. Losses of $504, and gains of $135 were reclassified from accumulated other comprehensive loss during the three months ended March 31, 2023 and 2022, respectively. Such losses and gains were reclassified from accumulated other comprehensive loss when the related expenses were incurred.

Effect of Foreign Currency Contracts on the Condensed Consolidated Statements of Operations

The effect of foreign currency contracts on the condensed consolidated statements of operations during the three months ended March 31, 2023 and 2022 were as follows:


Condensed Statement of Operations Location:	Three Months Ended March 31 ,2023		Three Months Ended March 31 ,2022

Cost of revenue	$	70	$	(25)
Research and development	$	252	$	(66)
Sales and marketing	$	58	$	(19)
General and administrative	$	96	$	(25)
Restructuring	$	28	$	—

Total	$	504	$	(135)