Derivatives and hedging

12 Months Ended

Dec. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives and hedging

Derivatives and hedging

During 2022 and 2023, the Company entered into forward and cylinder contracts primarily to hedge certain forecasted NIS denominated payroll payments against exchange rate fluctuations of the U.S. dollar, for a period of up to twelve months. The fair value of future hedging transactions is included in other current assets or other payables and accrued expenses, as appropriate. The Company recorded the cash flows associated with these derivatives under operating activities.

The gross notional amounts of the Company’s foreign currency contracts are denominated in NIS and GBP. The notional amounts of outstanding foreign currency contracts in U.S. dollars are as follows:

	December 31,
	2022		2023
Derivatives designated as hedging instruments	$	2,551	$	2,131
Derivatives not designated as hedging instruments	946		927
Total	$	3,497	$	3,058

During the years ended December 31, 2021, 2022 and 2023, gains (losses) related to designated hedging instruments were reclassified from accumulated other comprehensive (loss) income when the related expenses were incurred. These gains (losses) were recorded in the consolidated statements of comprehensive income (loss), as follows:

	Year Ended December 31,
	2021		2022		2023
Cost of revenue	$	(10)	$	(246)	$	(250)
Research and development	(38)		(807)		(849)
Sales and marketing	(18)		(529)		(551)
General and administrative	(10)		(361)		(361)
Total	$	(76)	$	(1,943)	$	(2,011)

During the years ended December 31, 2021, 2022 and 2023, the Company recorded (losses) gains related to non-designated hedging instruments in the amount of $(6), $(324) and $126, respectively, which are classified as finance (expenses) income, net in the consolidated statements of comprehensive income (loss).