Shareholders' equity

12 Months Ended

Dec. 31, 2023

Stockholders' Equity Note [Abstract]

Shareholders' equity

Note 14: - Shareholders’ equity

a. On June 2, 2020 the Company closed a follow-on offering whereby 2,300,000 ordinary shares were sold by the Company to the public, (inclusive of 300,000 ordinary shares pursuant to the full exercise of an over allotment option granted to the underwriters). The aggregate net proceeds received by the Company from the offering were $129,853 net of underwriting discounts and other offering costs.

b. Holders of ordinary shares are entitled to one vote per share and dividends whenever funds are legally available and when, as, and if declared by the Company’s board of directors.

c. Share options and RSUs:

In 2011, the board of directors adopted the 2011 share option plan for employees, officers, directors and consultants (the “2011 Plan”). Each share option granted under the 2011 Plan expires no later than ten years from the date of grant. The vesting period of the share options is generally four years. As of December 31, 2019, the Company is no longer granting any awards under the 2011 Plan.

In 2019, the board of directors adopted the 2019 share incentive plan (the “2019 Plan”) for employees, officers, directors and consultants. The 2019 Plan provides for the grant of share options (including incentive share options and non-qualified share options), ordinary shares, restricted shares, RSUs and other share-based awards.

The maximum number of ordinary shares available for issuance under the 2019 Plan is equal to the sum of (i) 560,80754 shares, (ii) any shares subject to awards under the 2011 Plan which will expire or become un-exercisable without having been exercised, and (iii) an annual increase on the first day of each year beginning in 2020 and ending in and including 2029, equal to the lesser of (A) 14,259,677 shares, (B) 5% of the outstanding shares on the last day of the immediately preceding calendar year on a fully diluted basis and (C) such amount as determined by our board of directors if so determined, prior to January 1 of a calendar year; provided, however, that no more than 14,820,484 shares may be issued upon the exercise of incentive stock options, or ISOs.

Each share option granted under the 2019 Plan expires no later than seven years from the date of grant. The vesting period of the share options is generally four years.

As of December 31, 2023 1,476,818 restricted share units were outstanding under the 2019 Plan and the total of 1,737,003 ordinary shares was available for future grants under the 2019 Plan.

The following table summarizes the status of the share options as of and for the year ended:

	December 31, 2023
	Number of share options			Weighted- average exercise price		Weighted- average remaining contractual term (in years)
Outstanding at the beginning of the year		3,096,214			52.54		5.10
Granted		711,272			34.21
Exercised		(363,291	)		7.78
Forfeited		(31,914	)		94.92
Outstanding at the end of the year		3,412,281			52.52		4.66
Exercisable at the end of the year		2,324,545			45.38		4.18

The weighted-average grant-date fair value of share options granted was $18.17 , $25.24 and $130.95 per share for the years ended December 31, 2023, 2022 and 2021, respectively.

The fair value of these share options was estimated on the grant date based on the following weighted average assumptions for the years ended:

	December 31,
	2023	2022	2021
Volatility	56% – 58%	54% – 57%	50% – 55%
Expected term in years	3.78 – 5.23	3.78 – 4.56	3.67 – 4.61
Risk-free interest rate	3.37% – 4.22%	1.87% – 4.4%	0.43% – 1.11%
Estimated fair value of underlying ordinary shares	20.5 – 39.35	27.55 – 81.03	170.35 – 323.10
Dividend yield	0%	0%	0%

The share options outstanding under the 2011 plan as of December 31, 2023, have been separated into exercise price groups as follows:

		Outstanding			Exercisable
Exercise price	Number of share options		Weighted average remaining contractual life(in years)		Number of share options		Weighted average remaining contractual life(years)
$1.74-$5.15		275,414		1.87	275,414			1.87
$5.16-$11.81		305,106		4.53	305,106			4.3
$11.82-$15.62		526,063		5.02	525,313			5.02
$15.63 -$25.31		359,221		3.61	359,971			3.61
$25.32-$27.87		363,263		5.21	148,158			3.44
$27.88-$36.29		312,238		5.73	108,912			5.74
$36.30-$38.29		412,933		6.14	77,414			6.14
$38.30-$84.27		272,106		4.03	204,240			3.87
$84.28-$227.06		235,457		5.12	104,311			5.11
$227.07-$243.50		350,480		4.41	215,706			4.39
Total		3,412,281		4.66	2,324,545			4.18
Aggregate intrinsic value	$	22,065				22,052

Intrinsic value represents the potential amount receivable by the option holders had all option holders exercised their share options as of such date.

The aggregate intrinsic value of the exercised share options was $8,146, $10,873 and $142,419 for the years ended December 31, 2023, 2022 and 2021, respectively.

The grant-date fair value of vested share options was $20,802, $23,346 and $25,536 for the years ended December 31, 2023, 2022 and 2021, respectively.

The following table summarizes the status of RSUs as of and for the year ended:

	December 31, 2023
	Number of RSUs			Weighted- average grant date fair value
Outstanding at the beginning of the year		1,136,128			96.49
Granted		1,206,151			35.80
Vested		(595,882	)		79.38
Forfeited		(269,579	)		75.33
Outstanding at the end of the year		1,476,818			57.76

h. Employee Share Purchase Plan:

In August 2020, the Company adopted the 2020 Employee Share Purchase Plan (the “ESPP”). As of December 31, 2023, a total of 1,004,211 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, 2030, 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.

During 2023, 157,222 ordinary shares had been issued under the ESPP. The ESPP is compensatory and, as such, results in recognition of compensation cost.

The fair value of ESPP was estimated on the grant date based on the following weighted average assumptions for the years ended:

	December 31,
	2023		2022		2021
Volatility		66.4-97.6%		86.4-97.6%		86.0-86.4%
Expected term in years		0.5		0.5		0.5
Risk-free interest rate		4.24-4.96%		0.08-4.24%		0.03-0.08%
Estimated fair value of underlying ordinary shares		26.40-206.07		35.36-206.07		131.88-206.07
Dividend yield		0%		0%		0%

Share-based compensation costs are recorded in the consolidated statements of operations for the years ended:

	December 31,
	2023		2022		2021
Cost of revenue	$	2,497	$	2,520	$	1,436
Research and development		24,310		23,828		20,008
Sales and marketing		13,304		17,196		14,106
General and administrative		28,587		28,211		19,857
	$	68,698	$	71,755	$	55,407

The total unrecognized share-based compensation cost as of December 31, 2023 was $ 112,772, which will be recognized over a weighted-average period of 2.21 years.