Title
of Each Class |
Trading
Symbol(s) |
Name
of Each Exchange on which Registered |
|
|
|
Large
accelerated filer ☐ |
|
Non-accelerated
filer ☐ |
|
|
|
|
|
Emerging
growth company
|
|
International Financial Reporting Standards as issued by
the
International Accounting Standards Board ☐ |
Other
☐ |
|
Page |
5 | |
5 | |
Presentation of Financial and Other Information |
|
8 | |
8 | |
8 | |
8 | |
A. Selected Financial Data
|
8 |
B. Capitalization and Indebtedness
|
8 |
C. Reasons for the Offer
and Use of Proceeds |
8 |
D. Risk Factors |
8 |
38 | |
A. History and Development of the Company
|
38 |
B. Business Overview
|
39 |
C. Organizational Structure
|
50 |
D. Property, Plants and Equipment
|
51 |
51 | |
51 | |
A. Operating Results |
51 |
B. Liquidity And Capital
Resources |
54 |
C. Research, Development,
Patents and Licenses, Etc. |
55 |
D. Trend Information
|
56 |
E. Critical Accounting Estimates
|
57 |
59 | |
A. Directors and Senior Management
|
59 |
B. Compensation |
61 |
C. Board Practices
|
64 |
D. Employees |
67 |
E. Share Ownership
|
68 |
F. Disclosure of a Registrant’s Action
to Recover Erroneously Awarded Compensation |
69 |
69 | |
A. Major Shareholders
|
69 |
B. Related Party Transactions
|
71 |
C. Interests of Experts and
Counsel |
71 |
71 | |
A. Consolidated Statements
and Other Financial Information |
71 |
B. Significant Changes |
72 |
72 | |
A. Offer and Listing Details
|
72 |
B. Plan of Distribution
|
72 |
C. Markets |
72 |
D. Selling Shareholders
|
72 |
E. Dilution |
72 |
F. Expenses of the Issue |
72 |
72 | |
A. Share Capital |
72 |
B. Memorandum and Articles
of Association |
72 |
C. Material Contracts
|
72 |
D. Exchange Controls
|
73 |
E. Taxation |
73 |
F. Dividends and Paying Agents
|
81 |
G. Statement by Experts
|
81 |
H. Documents on Display
|
81 |
I. Subsidiary Information
|
81 |
J. Annual Report to Security Holders
|
81 |
81 | |
82 | |
82 | |
82 | |
82 | |
82 | |
83 | |
83 | |
83 | |
83 | |
83 | |
84 | |
84 | |
84 | |
85 | |
85 | |
85 | |
85 | |
86 | |
86 | |
86 | |
87 | |
88 | |
F-1 |
• |
Our search advertising solution depends highly upon revenue generated from our agreements with our search providers. Any adverse
change in those agreements could adversely affect our business, financial condition and results of operations. |
• |
The generation of search advertising revenue through publishers is subject to competition. If we cannot compete effectively in this
market, our revenue is likely to decline. |
• |
In order to receive advertising-generated revenue from our search providers, we depend, in part, on factors outside of our control.
|
• |
Should the methods used for the distribution of our search solution, be blocked, constrained, limited, materially changed, based
on a change of policies, technology or otherwise (as has happened in the past), or made redundant by any of our search engine providers,
our ability to generate revenue from our search activity could be significantly reduced. |
• |
Should the providers of platforms, particularly browsers, further block, constrain or limit our ability to offer or change search
properties, or materially change their policies, technology or the way they operate, our ability to generate revenue from our search activity
could be significantly reduced. |
• |
Our advertising customers comprised of brands, advertising agencies, DSPs and SSPs may reduce or terminate their business relationship
with us at any time. If customers representing a significant portion of our revenue reduce or terminate their relationship with us, it
could have a material adverse effect on our business, financial condition and results of operation. |
• |
Large and established internet and technology companies, such as Google, Meta, Apple and Amazon, play a substantial role in the
digital advertising market and may significantly harm our ability to operate in this industry. |
• |
If the demand for digital advertising does not continue to grow or customers do not embrace our solutions including our Perion One
platform, it could have a material adverse effect on our business and results of operation. |
• |
Due to our evolving business model and rapid changes in the industry in which we operate and the nature of services we provide,
it is difficult to accurately predict our future performance and may be difficult to increase revenue or profitability. |
• |
We depend on supply sources to provide us with advertising inventory in order for us to deliver advertising campaigns in a cost-effective
manner. We also depend on service providers or partners who provide us with critical products and services. |
• |
Non-compliance with industry self-regulation could negatively impact our Advertising Solutions business, brand and reputation.
|
• |
The advertising industry is highly competitive. If we cannot compete effectively and overcome the technological gaps in this market,
our revenue is likely to decline. |
• |
If our campaigns are not able to reach certain performance goals or we are unable to measure certain metrics proving achievement
of those goals, it could have a material adverse effect on our business. |
• |
Increased availability of advertisement-blocking technologies could limit or block the delivery or display of advertisements by
our solutions, which could undermine the viability of our business, financial condition and results of operations. |
• |
Our business depends on our ability to collect, use, maintain and otherwise process data, including personal data, and any limitation
on the collection, use, maintenance and other processing of this data could significantly diminish the value of our solutions and cause
us to lose customers, revenue and profit. |
• |
If we do not continue to innovate and provide high-quality advertising solutions and services, we may not remain competitive, and
our business and results of operations could be materially adversely affected. |
• |
Our growth depends in part on the success of our relationships with advertising agencies, and third-party DSPs and SSPs. |
• |
Our products are dependent on the platform terms of use and policies that are subject to changes out of our control. |
• |
Global economic and market conditions and actions taken by our customers, suppliers and other business partners in markets in which
we operate might materially adversely impact us. |
• |
A loss of the services of our senior management and other key personnel could adversely affect execution of our business strategy.
|
• |
We have acquired and may continue to acquire other businesses. These acquisitions divert a substantial part of our resources and
management attention and could in the future, adversely affect our financial results. |
• |
Our share price has fluctuated significantly and could continue to fluctuate significantly. |
• |
Our business could be negatively affected as a result of actions of activist shareholders, and such activism could impact the trading
value of our securities. |
• |
Our business and financial performance may be materially adversely affected by information technology issues, data breaches, cyber-attacks
and other similar incidents, as well as insufficient cybersecurity and other business disruptions. |
• |
If we fail to detect or prevent fraudulent, suspicious or other invalid traffic or engagement with our ads, or otherwise prevent
against malware intrusions, we could lose the confidence of our advertisers, damage our reputation and be responsible to make-good or
refund demands, which would cause our business to suffer. |
• |
We depend on third-party service providers, suppliers and vendors, such as internet, telecommunication, data centers, cloud computing
and hosting providers, to operate our platforms, websites and services. Temporary failure of these services, including catastrophic or
technological interruptions, would materially reduce our revenue and damage our reputation, and securing alternate sources for these services
could significantly increase our expenses and be difficult to obtain. |
• |
Our business depends on our ability to collect, use, maintain and otherwise process data, including personal data, to help our clients
deliver advertisements and to disclose data relating to the performance of advertisements. Any limitation imposed on our collection, use,
maintenance or other processing of this data could significantly diminish the value of our solution and cause us to lose sellers, buyers,
and revenue. Regulations, legislation or self-regulation relating to data protection, data privacy, cybersecurity, e-commerce and internet
advertising and uncertainties regarding the application or interpretation of existing or newly adopted laws and regulations threaten our
ability to collect, use, maintain and otherwise process this data, could harm our business and subject us to significant costs and legal
liability for non-compliance. |
• |
Our proprietary information, technology and other intellectual property may not be adequately protected and thus our intellectual
property may be unlawfully copied by or disclosed to other third parties. |
• |
Our business relies significantly on the U.S. market. Any material adverse change in that market could have a material adverse effect
on our results of operations. |
• |
Our business may be materially affected by changes to fiscal and tax policies. Potentially negative or unexpected tax consequences
of these policies, or the uncertainty surrounding their potential effects, could adversely affect our results of operations and share
price. |
• |
Political, economic and military instability in the Middle East and specifically in Israel, including Israel’s war with Hamas
and conflict with other parties in the region, may adversely affect our operations and limit our ability to market our products, which
would lead to a decrease in revenues. |
ITEM 1. |
IDENTITY OF DIRECTORS, SENIOR MANAGEMENT AND ADVISERS |
ITEM 2. |
OFFER STATISTICS AND EXPECTED TIMETABLE |
ITEM 3. |
KEY INFORMATION |
A. |
SELECTED FINANCIAL DATA |
B. |
CAPITALIZATION AND INDEBTEDNESS |
C. |
REASONS FOR OFFER AND USE OF PROCEEDS |
D. |
RISK FACTORS |
• |
Supply sources may impose significant restrictions on the advertising inventory they sell or may impose other unfavorable terms and
conditions on the advertisers using their sites or platforms. For example, these restrictions may include frequency caps, prohibitions
on advertisements from specific advertisers or specific industries, or restrictions on the use of specific creative content or advertising
formats as well as content adjacent restrictions, which would restrain our supply of available inventory. |
• |
Supply sources that offer online content and mobile applications may shift from an advertising-based monetization method to a pay-for-content/services
model, allowing users of services to pay a subscription in exchange for not to be shown advertisements. If they elect not to pay, then
in order to use the service, the user consents to the processing of their data for advertising purposes. This may reduce available inventory.
|
• |
Social media platforms, such as Meta’s Facebook or Instagram or Tik Tok, are “walled gardens” and may be successful
in keeping users within their sites, which may be competitive to our offerings and solutions. If, as a result, users are not on the open
web, online advertising inventory outside of such platforms (including our publishers’ and our owned and operated sites) may be
reduced or may become less attractive to our advertising customers. |
• |
Supply sources may be reluctant or unable to adopt certain of our proprietary and unique high-impact display, CTV, Open Web,
and website publisher’s solutions for a variety of reasons (such as changes in user preference making such ad formats less desirable,
or technological limitations, such as in connection with header bidding or the ability to transact programmatically), resulting in limited
advertising inventory supply for such formats and inhibiting our ability to scale such formats. |
• |
The DOOH industry is highly concentrated and characterized by intense competition among media owners. A withdrawal of a DOOH media
by a large supplier could have material adverse impacts on our business. |
• |
Historically, our advertising business has experienced the lowest revenue levels in the first quarter and
highest revenue levels in the fourth quarter, with the second and third quarters being slightly stronger than the first quarter;
|
• |
Our advertising solutions revenue are influenced by political advertising in the US, which generally occurs every two years;
|
• |
In any single period, our advertising solutions revenue and delivery costs are subject to significant variation based on changes
in the volume and mix of deliveries performed during such period; |
• |
Revenue is subject to the changes of brand marketing trends, including when and where brands choose to spend their money in a given
year; |
• |
Advertising customers generally retain the right to supplement, extend, or cancel existing advertising orders at any time prior to
their delivery, and we have no control over the timing or magnitude of these revenue changes; |
• |
Relative complexity of individual advertising formats, and the length of the creative design process; and |
• |
A prolonged cycle time for entering into transactions with retail media networks (RMNs) or other advertising customers. |
• |
negative fluctuations in our quarterly revenue and earnings or those of our competitors; |
• |
pending sales into the market due to the sale of large blocks of shares, due to, among other reasons, the expiration of any tax-related
or contractual lock–ups with respect to significant amounts of our ordinary shares; |
• |
shortfalls in our operating results compared to levels forecast by us or by securities analysts; |
• |
changes in our senior management; |
• |
changes in regulations or in policies of search engine companies or other industry conditions; |
• |
mergers and acquisitions by us or our competitors; |
• |
technological innovations; |
• |
the introduction of new products; |
• |
the conditions of the securities markets, particularly in the internet and Israeli sectors; and |
• |
political, economic and other developments in Israel (including the recent war between Israel and Hamas hostilities with Hezbollah
in Lebanon, Iran, and other proxies like the Houthi movement in Yemen and armed groups in Iraq) and worldwide. |
• |
potential loss of proprietary information, technology and other intellectual property due to piracy, misappropriation, infringement,
or other violation or laws that may be less protective of our intellectual property rights than those of the United States; |
• |
costs and delays associated with translating and supporting our products in multiple languages; |
• |
foreign exchange rate fluctuations and economic instability, such as higher interest rates and inflation, which could make our products
more expensive in those countries; |
• |
costs of compliance with a variety of laws and regulations; |
• |
restrictive governmental actions such as trade restrictions and trade wars; |
• |
limitations on the transfer and repatriation of funds and foreign currency exchange restrictions; |
• |
compliance with different consumer, data protection, data privacy and cybersecurity laws and regulations, and restrictions on pricing
or discounts; |
• |
lower levels of adoption or use of the internet and other technologies vital to our business and the lack of appropriate infrastructure
to support widespread internet usage; |
• |
lower levels of consumer spending on a per capita basis and fewer opportunities for growth in certain foreign market segments compared
to the United States; |
• |
lower levels of credit card usage and increased payment risk; |
• |
changes in domestic and international tax regulations; and |
• |
geopolitical events, including war and terrorism. |
• |
subject to limited exceptions, the judgment is final and non-appealable; |
• |
the judgment was given by a court competent under the laws of the state of the court and is otherwise enforceable in such state;
|
• |
the judgment was rendered by a court competent under the rules of private international law applicable in Israel; |
• |
the laws of the state in which the judgment was given provide for the enforcement of judgments of Israeli courts; |
• |
adequate service of process has been effected and the defendant has had a reasonable opportunity to present his arguments and evidence;
|
• |
the judgment and its enforcement are not contrary to the law, public policy, security or sovereignty of the State of Israel;
|
• |
the judgment was not obtained by fraud and does not conflict with any other valid judgment in the same matter between the same parties;
and |
• |
an action between the same parties in the same matter was not pending in any Israeli court at the time the lawsuit was instituted
in the U.S. court. |
• |
we may be unable to meet the requirements for continuing to qualify for some programs; |
• |
these programs and tax benefits may be unavailable at their current levels; or |
• |
we may be required to refund previously recognized tax benefits if we are found to be in violation of the stipulated conditions.
|
ITEM 4. |
INFORMATION ON THE COMPANY |
A. |
HISTORY AND DEVELOPMENT OF THE COMPANY |
B. |
BUSINESS OVERVIEW |
● |
Unified Multi-Channel Advertising – Perion One is designed to enable advertisers to
plan, execute, measure, and optimize campaigns seamlessly across Open Web, Connected TV (CTV), Digital Out of Home (DOOH), Social and
Digital Audio and is planned to gradually add more digital channels. This holistic approach is aimed to allow greater consistency in messaging
and better audience engagement across the consumer journey. |
● |
Operational and Organizational Efficiencies – The integration of our business units
under one cohesive structure is expected to improve internal alignment, enhance collaboration, and lead to more effective marketing investments
by promoting a singular brand identity. These efficiencies drive cost savings and improve overall agility in responding to market shifts.
|
● |
AI-Driven Optimization – Perion One platform is planned to leverage AI to enhance campaign
performance through real-time optimization, personalized messaging, and automated decision-making. We believe that this technological
advantage differentiates us from competitors by improving the effectiveness of media investments to deliver attractive ROAS for advertisers.
|
● |
Simplified Vendor Management – Agencies and brands to benefit from a consolidated platform
that reduces the complexity of managing multiple vendors. We expect this to result in lower operational friction, faster execution, and
improved campaign results. |
● |
Financial Growth and Profitability – The transition to a unified solution is intended
to gradually drive increased client spending, higher retention rates, and improved margins. By sunsetting less efficient technologies
and focusing on high-value, AI-enhanced solutions, we anticipate a stronger financial trajectory with sustainable long-term growth.
|
A. |
Multichannel Approach |
B. |
Leveraging the Growth of Commerce and Retail Media |
C. |
Investments in technology |
D. |
Geographical expansion |
E. |
Inorganic growth |
A. |
High-Impact Display |
B. |
CTV |
C. |
Retail Media & Commerce |
D. |
DOOH |
E. |
Digital Audio |
F. |
SORT® |
G. |
Search Advertising |
● |
App Monetization - using intent-based search signals to monetize publishers' desktop and mobile apps. |
● |
Search Mediation - enables media traders to monetize search demand and achieve higher yields by leveraging the machine learning that
drives our mediation platform. |
H. |
Social |
I. |
Website Publisher’s Solution |
• |
The ability to meet advertiser demand for higher sustained user engagement with our sophisticated high-impact Ad suite; |
• |
The ability to monetize the fast-growing Retail Media business, reflected in 62% year-over-year revenue growth we achieved in 2024;
|
• |
The ability to innovate in sectors that matter most to brands, such as: |
◾ |
SORT®, our proprietary cookieless targeting technology, which was developed in response to advertisers’ growing recognition
of user privacy matters and the planned deprecation of cookies by Google. SORT® displays the result of our ability to analyze the
complex data signals that are derived from our assets that flow through our technology. |
◾ |
The introduction of WAVE, a generative AI-powered dynamic audio solution that creates personalized audio advertising messages at
scale; |
◾ |
The introduction of Anyplace TV, a cross-channel video advertising solution that extends CTV and video campaigns to Digital Out-of-Home
(DOOH) environments |
• |
The ability to integrate programmatic DOOH advertising using cutting-edge technologies to target, deliver, and measure unforgettable,
immersive ads that connect brands with people on the go; |
• |
Our AI Lab, which houses our AI-based R&D pipeline, has launched several products such as SORT® - our AI-based audience
segmentation technology - which is now also available for CTV, dynamic audio ads technology WAVE, Dynamic Creative Optimization (DCO)
and our in-ad AI Chatbot |
• |
The ability to monetize search traffic through our partnerships with search engines through innovative publisher-centric solutions
and online quality control and monitoring systems. |
a. |
Perion One Platform |
b. |
Supply Management Technologies |
c. |
Demand Management Technologies |
d. |
Analytics Layer |
e. |
Creative Platform |
f. |
AI Technologies |
g. |
Online Video Player |
h. |
Search Advertising Technology |
• |
Publisher management system that provides publishers access to an online dashboard providing analytics and performance optimization
tools, as well as reports that enable them to maximize their distribution and monetization. |
• |
Search demand management system that integrates and onboards demand vendors to our monetization products. The integration supports
multiple vendors according to predefined configurations and rules, enabling various business models and offerings, and making it possible
for Perion’s R&D team to innovate on the “search stack.” |
• |
Monetization products designed to deliver algorithmic search results concurrently with sponsored listings, both served for the same
search queries. They can be operationalized in different ways, including the transmission of search queries to search engines, search
Feed APIs operated on publishers’ domains and an enriched and optimized hosted search results page which offers an enhanced user
experience. |
• |
AI technology, which powers our search solutions, optimizes the various phases of the funnel including intent detection and demand
optimization to drive performance optimization and enhance the consumer experience. |
C. |
ORGANIZATIONAL STRUCTURE |
Name
of Subsidiary |
Place
of Incorporation |
Codefuel Ltd. |
Israel |
IncrediMail, Inc. |
Delaware |
Intercept Interactive, Inc. |
New York |
Vidazoo Ltd. |
Israel |
Hivestack Technologies Inc. |
Canada |
D. |
PROPERTY, PLANTS AND EQUIPMENT |
ITEM 4A.
|
UNRESOLVED STAFF COMMENTS |
ITEM 5. |
OPERATING AND FINANCIAL REVIEW AND PROSPECTS |
A. |
OPERATING RESULTS |
Year ended December 31, |
||||||||||||||||
2023(1)
|
2024 |
|||||||||||||||
Amount |
% of Revenue |
Amount |
% of Revenue |
|||||||||||||
Revenue: |
||||||||||||||||
Advertising Solutions |
$ |
398,244 |
54 |
% |
$ |
335,550 |
67 |
% | ||||||||
Search Advertising |
344,911
|
46 |
162,736 |
33 |
||||||||||||
|
||||||||||||||||
Total Revenue |
743,155 |
100 |
498,286 |
100 |
||||||||||||
|
||||||||||||||||
Costs and Expenses: |
||||||||||||||||
Cost of revenue |
37,853
|
5 |
46,643 |
10 |
||||||||||||
Traffic acquisition costs and media buy |
432,943
|
58 |
285,962 |
57 |
||||||||||||
Research and development |
33,880 |
5 |
36,655 |
78 |
||||||||||||
Selling and marketing |
59,341 |
8 |
68,497 |
14 |
||||||||||||
General and administrative |
32,062 |
4 |
38,697 |
8 |
||||||||||||
Change in fair value of contingent consideration |
18,694 |
3 |
1,541 |
0 |
||||||||||||
|
||||||||||||||||
Depreciation and amortization |
14,092 |
2 |
16,434 |
3 |
||||||||||||
Restructuring costs and other charges |
- |
- |
6,895 |
1 |
||||||||||||
Total Costs and Expenses |
628,865
|
85 |
501,324 |
101 |
||||||||||||
|
||||||||||||||||
Income (loss) from Operations |
114,290 |
15 |
(3,038 |
) |
(1 |
) | ||||||||||
Financial income, net |
20,951 |
3 |
18,520 |
4 |
||||||||||||
|
||||||||||||||||
Income before Taxes on income |
135,241
|
18 |
15,482 |
3 |
||||||||||||
Taxes on income |
20,278 |
3 |
2,868 |
1 |
||||||||||||
|
||||||||||||||||
Net Income |
$ |
114,963 |
15 |
% |
$ |
12,614 |
3 |
% |
(1)
|
The Company recorded a correction of prior-period errors related to the share-based
compensation expenses. See Note 2 of the Financial Statements for further information regarding such recording of a correction of prior-period
errors. |
B. |
LIQUIDITY AND CAPITAL RESOURCES |
|
Year ended December 31, |
|||||||
|
2023 |
2024 |
||||||
Net cash provided by operating activities |
$ |
155,463 |
$ |
6,939 |
||||
Net cash provided by (used in) investing activities |
(133,354 |
) |
62,602 |
|||||
Net cash used in financing activities |
(10,823 |
) |
(100,914 |
) | ||||
Effect of exchange rate changes on cash and cash equivalents |
141 |
) |
(213 |
) | ||||
Net increase (decrease) in cash and cash equivalents and restricted cash |
$ |
11,427 |
$ |
(31,586 |
) |
C. |
RESEARCH, DEVELOPMENT, PATENTS AND LICENSES, ETC. |
D. |
TREND INFORMATION |
E.
|
CRITICAL
ACCOUNTING ESTIMATES |
ITEM
6. |
DIRECTORS,
SENIOR MANAGEMENT AND EMPLOYEES |
A. |
DIRECTORS AND SENIOR MANAGEMENT |
Name |
|
Age |
|
Position |
Eyal Kaplan*(1)(2)
|
|
65 |
|
Chairman of the Board of Directors |
Tal Jacobson |
|
50 |
|
Chief Executive Officer; Director |
Maoz Sigron |
47 |
Chief Operating Officer | ||
Elad Tzubery |
|
41 |
|
Chief Financial Officer |
Stephen Yap |
49 |
Chief Revenue Officer | ||
Michal Drayman*(1)(4)
|
|
52 |
|
Director |
Amir Guy*(1)(3)
|
|
55 |
|
Director
|
Joy Marcus*(2)(3)(4)
|
63
|
Director
| ||
Rami Schwartz*(4)
|
|
67 |
|
Director |
Michael Vorhaus*(2)(3)
|
|
67 |
|
Director |
B. |
COMPENSATION |
• |
chairperson of our Audit Committee: $177,500; |
• |
chairperson of our Compensation Committee: $175,000; |
• |
chairperson of our Nominating and Governance Committee: $172,500; and |
• |
other non-executive directors: $165,000. |
Name and Principal Position (1)
|
Salary Cost(2)
|
Bonus(3)
|
Equity-Based
Compensation(4) |
Total |
||||||||||||
Tal Jacobson, Chief Executive Officer |
564 |
255 |
1,736 |
2,555 |
||||||||||||
Maoz Sigron, Chief Operating Officer; former Chief Financial
Officer (5) |
438 |
170 |
1,251 |
1,859 |
||||||||||||
Daniel E. Aks, former President, Undertone Business Unit
|
570 |
207 |
464 |
1,241 |
||||||||||||
Elad Tzubery, Chief Financial Officer
(6) |
326 |
122 |
241 |
688 |
||||||||||||
Eyal Kaplan, Chairman of the Board of Directors |
125 |
0 |
180 |
305 |
C. |
BOARD PRACTICES |
• |
establishing our policies and overseeing the performance and activities of our chief executive officer; |
• |
convening shareholders’ meetings; |
• |
approving our financial statements; |
• |
determining our plans of action, principles for funding them and the priorities among them, our organizational structure and examining
our financial status; and |
• |
issuing securities and distributing dividends. |
D. |
EMPLOYEES |
|
December 31, |
|||||||||||
|
2022 |
2023 |
2024 |
|||||||||
Cost of sales |
91 |
129 |
152 |
|||||||||
Research and development |
121 |
158 |
135 |
|||||||||
Selling and marketing |
150 |
170 |
136 |
|||||||||
General and administration |
78 |
104 |
105 |
|||||||||
Total |
440 |
561 |
528 |
E. |
SHARE OWNERSHIP |
Name |
Number of Ordinary Shares Beneficially Owned |
Percentage of Ordinary Shares Outstanding |
||||||
All directors and officers as a group (10 persons) (1)
|
280,016 |
0.62 |
% |
(1) |
Includes 103,252 RSUs and options to purchase ordinary shares that are vested or will vest within 60 days of March 5, 2025.
|
F. |
DISCLOSURE OF A REGISTRANT’S ACTION TO RECOVER ERRONEOUSLY AWARDED
COMPENSATION |
ITEM 7. |
MAJOR SHAREHOLDERS AND RELATED PARTY TRANSACTIONS |
A. |
MAJOR SHAREHOLDERS |
Name of Beneficial Owner |
Shares Beneficially Owned |
|||||||
|
Number |
Percentage |
||||||
|
||||||||
Harel Insurance Investments & Financial Services Ltd.
(1) |
5,217,731 |
11.59 |
% | |||||
Phoenix Financial Ltd.(2)
|
4,229,152 |
9.39 |
% | |||||
Private Capital Management, LLC(3)
|
2,692,825 |
5.98 |
% |
B. |
RELATED PARTY TRANSACTIONS |
C. |
INTERESTS OF EXPERTS AND COUNSEL |
ITEM 8. |
FINANCIAL INFORMATION |
A. |
CONSOLIDATED STATEMENTS AND OTHER FINANCIAL INFORMATION |
B. |
SIGNIFICANT CHANGES |
ITEM 9. |
THE OFFER AND LISTING |
A. |
OFFER AND LISTING DETAILS |
B. |
PLAN OF DISTRIBUTION |
C. |
MARKETS |
D. |
SELLING SHAREHOLDERS |
E. |
DILUTION |
F. |
EXPENSES OF THE ISSUE |
ITEM 10. |
ADDITIONAL INFORMATION |
A. |
SHARE CAPITAL |
B. |
MEMORANDUM AND ARTICLES OF ASSOCIATION |
C. |
MATERIAL CONTRACTS |
D. |
EXCHANGE CONTROLS |
E. |
TAXATION |
• |
A company’s average R&D expenses in the three years prior to the current tax year must be greater than or equal to 7% of
its total revenue or exceed NIS 75 million (approximately $21 million) per year; and |
• |
A company must also satisfy one of the following conditions: (1) at least 20% of the workforce (or at least 200 employees) are employees
whose full salary has been paid and reported in the Company’s financial statements as R&D expenses; (2) a venture capital investment
of an amount approximately equivalent to at least NIS 8 million (approximately $2.2 million) was previously made in the company, and the
company did not change its line of business after such investment; (3) growth in sales by an average of 25% or more, over the three years
preceding the tax year provided that the company’s turnover in the tax year and in each of the previous three years was at least
NIS 10 million (approximately $2.8 million); or (4) the number of the company’s employees increased by 25% (on average) or more
in the course of three years, provided that the company employed at least 50 employees in the tax year and in each of the previous three
years. |
• |
Companies that do not meet one of the above two conditions may request preliminary approval from the National Authority for Technological
Innovation regarding being companies that own an innovation-promoting enterprise. |
• |
A company must qualify as a “Competitive Enterprise” as described under the Investment Law. |
• |
Total annual consolidated revenue is below NIS10 billion (approximately $2.7 billion). |
• |
Amortization of the cost of purchased know-how, patents, and right to use patent or know how that were purchased in good faith and
are used for the development or promotion of the Industrial Enterprise, over an eight-year period beginning from the year in which such
rights were first used; |
• |
Under specified conditions, an election to file consolidated tax returns with additional related Israeli Industrial Companies controlled
by it; and |
• |
Deduction of expenses related to a public offering in equal amounts over three years beginning from the year of the offering.
|
• |
certain financial institutions; |
• |
dealers or traders in securities that use a mark-to-market method of tax accounting; |
• |
persons holding ordinary shares as part of a straddle, integrated or similar transaction; |
• |
persons whose functional currency for U.S. federal income tax purposes is not the U.S. dollar; |
• |
entities classified as partnerships for U.S. federal income tax purposes and their partners; |
• |
tax-exempt entities, “individual retirement accounts” or “Roth IRAs”; |
• |
real estate investment trusts or regulated investment companies; |
• |
persons who acquired our ordinary shares pursuant to the exercise of an employee stock option or otherwise as compensation;
|
• |
persons that own or are deemed to own 10% or more of our stock by voting power or value; or |
• |
persons holding ordinary shares in connection with a trade or business outside the United States .If a partnership (or other entity
that is classified as a partnership for U.S. federal income tax purposes) owns ordinary shares, the U.S. federal income tax treatment
of a partner will generally depend on the status of the partner and the activities of the partnership. Partnerships owning ordinary shares
and their partners should consult their tax advisers as to their particular U.S. federal income tax consequences of owning and disposing
of ordinary shares. |
• |
a citizen or individual resident of the United States; |
• |
a corporation, or other entity taxable as a corporation, created or organized in or under the laws of the United States, any state
therein or the District of Columbia; or |
• |
an estate or trust the income of which is subject to U.S. federal income taxation regardless of its source. |
F. |
DIVIDENDS AND PAYING AGENTS |
G. |
STATEMENT BY EXPERTS |
H. |
DOCUMENTS ON DISPLAY |
I. |
SUBSIDIARY INFORMATION |
J. |
ANNUAL REPORT TO SECURITY HOLDERS |
ITEM 11.
|
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
|
U.S. dollars |
NIS |
Canadian dollars |
Other Currencies |
Total |
|||||||||||||||
|
In thousands of U.S. dollars |
|||||||||||||||||||
Current assets |
438,707 |
36,384 |
38,594 |
47,778 |
561,463 |
|||||||||||||||
Long-term assets |
457 |
6,784 |
408 |
1,283 |
8,932 |
|||||||||||||||
Current liabilities |
(87,837 |
) |
(11,669 |
) |
(57,840 |
) |
(2,454 |
) |
(159,800 |
) | ||||||||||
Long-term liabilities |
(11,251 |
) |
(18,772 |
) |
(497 |
) |
(217 |
) |
(30,737 |
) | ||||||||||
Total |
340,076 |
12,727 |
(19,335 |
) |
46,390 |
379,858 |
|
Year Ended December 31, |
|||||||||||
|
2022 |
2023 |
2024 |
|||||||||
Average rate for period |
3.359 |
3.688 |
3.701 |
|||||||||
Rate at year-end |
3.519 |
3.627 |
3.647 |
ITEM 12. |
DESCRIPTION OF SECURITIES OTHER THAN EQUITY SECURITIES |
ITEM 13. |
DEFAULTS, DIVIDEND ARREARAGES AND DELINQUENCIES |
ITEM 14. |
MATERIAL MODIFICATIONS TO THE RIGHTS OF SECURITY HOLDERS AND USE OF PROCEEDS
|
ITEM 15. |
CONTROLS AND PROCEDURES |
(a) |
Disclosure controls and procedures Our chief executive officer and chief financial officer,
after evaluating the effectiveness of our disclosure controls and procedures as of December 31, 2024, have concluded that, as of such
date, our disclosure controls and procedures were effective and ensured that information required to be disclosed by us in reports that
we file or submit under the Exchange Act is accumulated and communicated to our management, including our chief executive officer and
chief financial officer, to allow timely decisions regarding required disclosure and is recorded, processed, summarized and reported within
the time periods specified by the SEC’s rules and forms. |
(b) |
Management annual report on internal control over financial reporting Our management, under
the supervision of our chief executive officer and chief financial officer, is responsible for establishing and maintaining adequate internal
control over our financial reporting. The Company’s internal control over financial reporting, as defined in Rules 13a-15(f) and
15d-15(f) of the Exchange Act, means a process designed to provide reasonable assurance regarding the reliability of financial reporting
and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. Internal
control over financial reporting includes policies and procedures that: (a) pertain to the maintenance of records that in reasonable detail
accurately and fairly reflect our transactions and asset dispositions; (b) provide reasonable assurance that transactions are recorded
as necessary to permit the preparation of our financial statements in accordance with generally accepted accounting principles, and that
our receipts and expenditures are being made only in accordance with authorizations of our management and directors; and (c) provide reasonable
assurance regarding the prevention or timely detection of unauthorized acquisition, use or disposition of assets that could have a material
effect on our financial statements. Due to its inherent limitations, internal control over financial reporting may not prevent or detect
misstatements. In addition, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may
become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.
|
Our management evaluated the effectiveness of our internal control over financial reporting as of December
31, 2024. In making this assessment, our management used the criteria set forth by the Committee of Sponsoring Organizations of the Treadway
Commission (COSO) in “Internal Control – Integrated Framework” (2013 framework). Our management has concluded, based
on its assessment, that our internal control over financial reporting was effective as of December 31, 2024. |
(c) |
Attestation Report of the Registered Public Accounting Firm Kost Forer Gabbay & Kasierer,
an independent registered accounting firm and a member firm of EY Global, has issued an attestation report on the effectiveness of our
internal control over financial reporting, as stated in their report included herein. See “Report of Independent Registered Public
Accounting Firm” on page F-2. |
(d) |
Changes in internal control over financial reporting During the period covered by this report,
no changes in our internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange
Act) have occurred that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
|
ITEM 16. |
RESERVED |
ITEM 16A. |
AUDIT COMMITTEE FINANCIAL EXPERT |
ITEM 16B. |
CODE OF ETHICS |
ITEM 16C. |
PRINCIPAL ACCOUNTANT FEES AND SERVICES |
|
2023 |
2024 |
||||||
Audit Fees |
$ |
747 |
$ |
721 |
||||
Tax Fees |
57 |
98 |
||||||
Audit Related fees |
483 |
45 |
||||||
Total |
$ |
1,287 |
$ |
864 |
ITEM 16D. |
EXEMPTIONS FROM THE LISTING STANDARDS FOR AUDIT COMMITTEES
|
ITEM 16E. |
PURCHASES OF EQUITY SECURITIES BY THE ISSUER AND AFFILIATED PURCHASERS
|
Period |
(a) Total Number
of Ordinary Shares Purchased |
(b) Average Price Paid per Ordinary Share |
(c) Total Number of Ordinary Shares Purchased as Part of Publicly Announced Plans or Programs |
(d) Approximate Value ($US) that may yet be purchased under the Plan(1)
|
||||||||||||
May 1, 2024 – May 31, 2024 |
86,223 |
12.472 |
86,223 |
$ |
73.9 |
M | ||||||||||
June 1, 2024 – June 30, 2024 |
1,913,777 |
9.915 |
1,913,777 |
$ |
54.9 |
M | ||||||||||
July 1, 2024 – July 31, 2024 |
400,000 |
8.534 |
400,000 |
$ |
51.5 |
M | ||||||||||
August 1, 2024 – August 31, 2024 |
398,112 |
8.756 |
398,112 |
$ |
48 |
M | ||||||||||
September 1, 2024 – September 30, 2024 |
801,888 |
8.205 |
801,888 |
$ |
41.5 |
M | ||||||||||
October 1, 2024 – October 31, 2024 |
846,341 |
8.008 |
846,341 |
$ |
34.7 |
M | ||||||||||
November 1, 2024 – November 30, 2024 |
753,659 |
8.774 |
753,659 |
$ |
28.1 |
M |
ITEM 16F. |
CHANGE IN REGISTRANT’S CERTIFYING ACCOUNTANT |
ITEM 16G. |
CORPORATE GOVERNANCE |
• |
the securities issued amount to 20% or more of our outstanding voting rights before the issuance; |
• |
some or all of the consideration is other than cash or listed securities or the transaction is not on market terms; and |
• |
the transaction will increase the relative holdings of a shareholder that holds 5% or more of our outstanding share capital or voting
rights or will cause any person to become, as a result of the issuance, a holder of more than 5% of our outstanding share capital or voting
rights. |
ITEM 16H.
|
MINE SAFETY DISCLOSURE |
ITEM 16I.
|
DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT
INSPECTION |
ITEM 16J. |
INSIDER TRADING POLICIES |
ITEM 16K. |
CYBERSECURITY RISK MANAGEMENT POLICIES AND PROCEDURES |
• |
risk assessments designed
to help identify, manage and address material cybersecurity risks to our critical systems, networks, information, products, services,
and broader enterprise information technology environment; |
• |
a cybersecurity management
team principally responsible for managing (1) our cybersecurity risk assessment processes, (2) our cybersecurity controls, and (3) our
response to cybersecurity threats and incidents; |
• |
|
• |
a risk management process
for third-party service providers and suppliers and vendors; |
• |
cybersecurity awareness
training of our employees, incident response personnel, and senior management; and |
• |
a cybersecurity incident
response plan that includes procedures for responding to cybersecurity threats and incidents.
|
ITEM 17. |
FINANCIAL STATEMENTS |
ITEM 18. |
FINANCIAL STATEMENTS |
Page | |
Reports of Independent Registered Public Accounting
Firm (PCAOB ID:
|
F-2 |
F-5 | |
F-6 | |
F-7 | |
F-8 | |
F-9 | |
F-11 |
![]() |
Kost Forer Gabbay & Kasierer
144 Menachem Begin Road, Building A,
Tel-Aviv 6492102, Israel |
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com |
![]() |
Kost Forer Gabbay & Kasierer
144 Menachem Begin Road, Building A,
Tel-Aviv 6492102, Israel |
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com |
Revenue Recognition Gross versus Net presentation | ||
Description of the Matter |
As described in Note 2 to the consolidated financial statements, the Company’s
revenue are comprised primarily of Search Advertising Revenue and Advertising Solutions Revenue. To determine whether Search Advertising
and Advertising Solutions revenue should be presented on a gross or net basis, the Company considers whether it controls the promised
service before transferring that service to the customer.
Auditing the Company's gross or net basis evaluation was complex and required a high
degree of auditor judgment due to the judgment and subjectivity used by the Company in determining whether revenue should be presented
on a gross or net basis. The significant judgment was primarily due to the evaluation, for each contract, of whether the Company controls
the promised services before transferring that service to the customer and is the primary responsible in the arrangement. |
|
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the design and tested the operating effectiveness
of internal controls over the Company’s gross or net basis evaluation process, including controls over the review of contracts and
assessment of principal versus agent, and controls over the completeness and accuracy of data.
Our substantive audit procedures included, among others, reviewing, on a sample basis,
the terms of contracts with publishers, evaluating management’s assessment on the principal versus agent analysis, discussing the
terms of contracts with legal and finance personnel responsible for managing the contractual arrangements and evaluating the related disclosures
in the consolidated financial statements. | |
Valuation of Goodwill | ||
Description of the Matter |
As Described in note 2 and 8 to the consolidated
statements, as of December 31, 2024, the Company’s goodwill was $247 million. As described Goodwill is tested for impairment at
least annually or more frequently if indicators of impairment require the performance of an interim impairment assessment. The Company
operates in two reporting units: Advertising Solutions and Advertising Search. As of December 31, 2024, the Company evaluated goodwill
for impairment by comparing the fair value of a reporting units to its carrying amount, including goodwill. Management determined the
estimated fair value for each reporting unit based on discounted cash flow projections and market values for comparable businesses.
Auditing the Company's goodwill impairment test was complex and highly judgmental due
to the significant estimates required in determining the fair value of its reporting units. In particular, the fair value estimates
were sensitive to changes in significant assumptions such as discount rate, revenue growth rate, operating margins, working capital, weighted
average cost of capital, estimated spend on capital expenditures and the projected cash flow growth rates. These assumptions are sensitive
to and affected by the expected future market or economic conditions, and industry and company-specific qualitative factors. |
|
How We Addressed the Matter in Our Audit |
We obtained an understanding, evaluated the
design and tested the operating effectiveness of controls over the Company’s goodwill impairment valuation process, including
test of controls over the significant assumptions used in estimating the fair value of the reporting units.
To test the Company's goodwill impairment test, including estimated fair value of the
reporting units, our audit procedures included, assessing methodologies and testing the significant assumptions and underlying data used
by the Company. We evaluated the Company’s valuation process by comparing the significant assumptions to current industry and economic
trends, we analyzed management’s forecasted revenue including the revenue growth rate, profitability margins, working capital, understand
and evaluate the changes as compared to the historical results and to selected guideline companies in the industry. In addition, we performed
a sensitivity analysis of significant assumptions to evaluate the changes in the fair value of the Company resulting from changes in the
assumptions. We involved our valuation specialists to assist with our evaluation of the methodology used by the Company and significant
assumptions included in the fair value estimates. |
![]() |
Kost Forer Gabbay & Kasierer
144 Menachem Begin Road, Building A,
Tel-Aviv 6492102, Israel |
Tel: +972-3-6232525
Fax: +972-3-5622555
ey.com |
December
31, |
||||||||
2024
|
2023
|
|||||||
ASSETS
|
||||||||
Current
Assets |
||||||||
Cash
and cash equivalents |
$
|
|
$
|
|
||||
Restricted
cash |
|
|
||||||
Short-term
bank deposits |
|
|
||||||
Marketable
securities |
|
|
||||||
Accounts
receivable (net of allowance of $ |
|
|
||||||
Prepaid
expenses and other current assets |
|
|
||||||
Total
Current Assets |
|
|
||||||
Long-Term
Assets |
||||||||
Property
and equipment, net |
|
|
||||||
Operating
lease right-of-use assets |
|
|
||||||
Intangible
assets, net |
|
|
||||||
Goodwill
|
|
|
||||||
Deferred
taxes |
|
|
||||||
Other
assets |
|
|
||||||
Total
Long-Term Assets |
|
|
||||||
Total
Assets |
$
|
|
$
|
|
||||
LIABILITIES
AND SHAREHOLDERS' EQUITY |
||||||||
Current
Liabilities |
||||||||
Accounts
payable |
$
|
|
$
|
|
||||
Accrued
expenses and other liabilities |
|
|
||||||
Short-term
operating lease liability |
|
|
||||||
Deferred
revenue |
|
|
||||||
Short-term
payment obligation related to acquisitions |
|
|
||||||
Total
Current Liabilities |
|
|
||||||
Long-Term
Liabilities |
||||||||
Long-term
operating lease liability |
|
|
||||||
Other
long-term liabilities |
|
|
||||||
Total
Long-Term Liabilities |
|
|
||||||
Total
Liabilities |
|
|
||||||
Commitments and Contingencies |
||||||||
Shareholders'
equity |
||||||||
Ordinary
shares of ILS |
|
|
||||||
Additional
paid-in capital |
|
|
||||||
Treasury
shares at cost ( |
(
|
) |
(
|
) | ||||
Accumulated
other comprehensive loss |
(
|
) |
(
|
) | ||||
Retained
earnings |
|
|
||||||
Total
Shareholders' Equity |
|
|
||||||
Total
Liabilities and Shareholders' Equity |
$
|
|
$
|
|
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Revenue
|
||||||||||||
Advertising Solutions
|
$
|
|
$
|
|
$
|
|
||||||
Search Advertising
|
|
|
|
|||||||||
Total
Revenue |
|
|
|
|||||||||
Costs
and Expenses |
||||||||||||
Cost of revenue
|
|
|
|
|||||||||
Traffic acquisition costs
and media buy |
|
|
|
|||||||||
Research and development
|
|
|
|
|||||||||
Selling and marketing
|
|
|
|
|||||||||
General and administrative
|
|
|
1
|
|||||||||
Change in fair value
of contingent consideration |
|
|
1
(
|
)
| ||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Restructuring costs and
other charges |
|
|
|
|||||||||
Total
Costs and Expenses |
|
|
|
|||||||||
Income
(loss) from Operations |
(
|
)
|
|
|
||||||||
Financial income, net
|
|
|
|
|||||||||
Income
before Taxes on Income |
|
|
|
|||||||||
Taxes on income
|
|
|
|
|||||||||
Net
Income |
$
|
|
$
|
|
$
|
|
||||||
Net
Earnings per Share - Basic: |
$
|
|
$
|
|
$
|
|
||||||
Net
Earnings per Share - Diluted: |
$
|
|
$
|
|
$
|
|
||||||
Weighted
average number of shares – Basic: |
|
|
|
|||||||||
Weighted
average number of shares – Diluted: |
|
|
|
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Net
income |
$
|
|
$
|
|
$
|
|
||||||
Other comprehensive income
(loss), net of tax: |
||||||||||||
Change
in foreign currency translation |
(
|
)
|
|
(
|
)
| |||||||
Changes
in unrealized gain (loss) on marketable securities |
|
(
|
)
|
|
||||||||
Cash
Flow Hedge: |
||||||||||||
Changes
in unrealized gain (loss) |
|
(
|
)
|
(
|
)
| |||||||
Gain
(loss) reclassified into net income |
(
|
)
|
|
|
||||||||
Net
change |
(
|
)
|
|
(
|
)
| |||||||
Total Other comprehensive
income (loss), net of tax: |
(
|
)
|
|
(
|
)
| |||||||
Comprehensive
income |
$
|
|
$
|
|
$
|
|
Common
shares |
Additional
paid-in
capital
|
Accumulated
Other
Comprehensive
income
(loss) |
Retained
earnings
(Accumulated
deficit)
|
Treasury
shares
|
Total
shareholders’
equity
|
|||||||||||||||||||||||
Number
of
Shares
|
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||||||||||
Balance
as of December 31, 2021 |
|
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
||||||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Exercise of stock-based
compensation |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive loss
|
-
|
|
|
(
|
)
|
|
|
(
|
)
| |||||||||||||||||||
Net income
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance
as of December 31, 2022 |
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Exercise of stock-based
compensation |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Net income
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance
as of December 31, 2023 |
|
|
|
(
|
)
|
|
(
|
)
|
|
|||||||||||||||||||
Issuance of shares related
to acquisitions - Vidazoo |
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Repurchase of shares for retirement |
(
|
)
|
(
|
) |
(
|
) |
|
|
|
|
(
|
)
| ||||||||||||||||
Stock-based compensation
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Exercise of stock options and vesting of restricted stock units |
|
|
|
|
|
|
|
|||||||||||||||||||||
Other comprehensive income
|
|
|
(
|
)
|
|
|
(
|
)
| ||||||||||||||||||||
Net income
|
-
|
|
|
|
|
|
|
|||||||||||||||||||||
Balance
as of December 31, 2024 |
|
|
|
(
|
)
|
|
(
|
)
|
|
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Cash
flows from operating activities |
||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
||||||
Adjustments required
to reconcile net income to net cash provided by operating activities: |
||||||||||||
Depreciation and amortization
|
|
|
|
|||||||||
Stock-based compensation
expense |
|
|
|
|||||||||
Change in payment obligation
related to acquisitions |
(
|
)
|
|
(
|
)
| |||||||
Foreign currency translation
|
|
(
|
)
|
|
||||||||
Accrued interest, net
|
|
(
|
)
|
(
|
)
| |||||||
Deferred taxes, net
|
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Accrued severance pay,
net |
|
(
|
)
|
(
|
)
| |||||||
Amortization of premium
and accretion of discount on marketable securities |
(
|
)
|
(
|
)
|
|
|||||||
Gain from sale of property
and equipment |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Restructuring costs and
other charges |
|
|
|
|||||||||
Net changes in operating
assets and liabilities: |
||||||||||||
Decrease (Increase) in
Accounts receivable, net |
|
(
|
)
|
(
|
)
| |||||||
Increase in Prepaid expenses
and other current assets |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Operating lease right-of-use
assets |
|
|
|
|
||||||||
Operating lease liabilities
|
(
|
) |
(
|
)
|
(
|
)
| ||||||
Increase (Decrease) in
Accounts payable |
(
|
)
|
|
|
||||||||
Increase (Decrease) in
Accrued expenses and other liabilities |
(
|
)
|
(
|
)
|
|
|||||||
Deferred revenue
|
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Net
cash provided by operating activities |
$
|
|
$
|
|
$
|
|
||||||
Cash
flows from investing activities |
||||||||||||
Purchases of property
and equipment |
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
| |||
Proceeds from sale of
property and equipment |
|
|
|
|||||||||
Investment in marketable
securities |
(
|
)
|
(
|
)
|
|
|||||||
Proceeds from maturities
of marketable securities |
|
|
|
|||||||||
Proceeds from short-term
deposits |
|
|
|
|||||||||
Investment in short-term
deposits |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Cash paid in connection
with acquisitions, net of cash acquired |
|
(
|
)
|
(
|
)
| |||||||
Net
cash provided by (used in) investing activities |
$
|
|
$
|
(
|
)
|
$
|
(
|
)
| ||||
Cash
flows from financing activities |
||||||||||||
Repurchase of shares
for retirement |
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Proceeds from exercise
of stock-based compensation |
|
|
|
|||||||||
Payments of contingent
consideration |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Net
cash used in financing activities |
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
| |||
Effect of exchange rate
changes on cash and cash equivalents |
(
|
)
|
|
(
|
)
| |||||||
Net
increase (decrease) in cash and cash equivalents and restricted cash |
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Cash and cash equivalents
and restricted cash at beginning of year |
|
|
|
|||||||||
Cash
and cash equivalents and restricted cash at end of year |
$
|
|
$
|
|
$
|
|
CONSOLIDATED STATEMENTS OF CASH FLOWS
Year
ended December 31 |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Reconciliation
of cash, cash equivalents, and restricted cash to the consolidated balance sheet |
||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
||||||
Restricted cash
|
|
|
|
|||||||||
Total
cash, cash equivalents, and restricted cash |
$
|
|
$
|
|
$
|
|
||||||
Supplemental
Disclosure of Cash Flow Activities: |
||||||||||||
Cash
paid during the year for: |
||||||||||||
Income taxes
|
$
|
|
$
|
|
$
|
|
||||||
Interest
|
$
|
|
$
|
|
$
|
|
||||||
Non-cash
investing and financing activities: |
||||||||||||
Creation of new lease
right-of-use assets arising from lease liability |
$
|
|
$
|
|
$
|
|
||||||
Issuance of shares in
connection with acquisitions |
$
|
|
$
|
|
$
|
|
||||||
Measurement Period Adjustment
|
$
|
(
|
)
|
$
|
|
$
|
|
|||||
Purchase of property
and equipment on credit |
$
|
|
$
|
|
$
|
(
|
)
|
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
1: |
GENERAL
|
F - 11
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F - 12
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Balance
as of December 31, 2023 |
$
|
|
||
Increase in provision
for expected credit losses |
|
| ||
Recoveries collected
|
(
|
) | ||
Amounts written off charged
against the allowance |
(
|
) | ||
Foreign currency translation
|
|
|||
Fair
value as of December 31, 2024 |
$
|
|
F - 13
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
%
| |
Computers
and peripheral equipment |
|
Office
furniture and equipment |
|
F - 14
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Refer to Note 8 for further information.
F - 15
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Company has determined that in certain arrangements it acts as principal because the Company controls the specified good or service before it is transferred to a customer, as such revenue is recorded on a gross basis, while in others it does not and revenue is recorded on a net basis.
Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities.
F - 16
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Remaining performance obligations
(RPOs) represent amounts collected on contracted revenue that have not yet been recognized. As of December 31, 2024 and 2023, the aggregate
amount of the RPOs was $
F - 17
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F - 18
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F - 19
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F - 20
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
• |
Level
1 - Observable inputs obtained from independent sources, such as quoted prices for identical assets and liabilities in active markets.
|
• |
Level
2 - Other inputs that are directly or indirectly observable in the market place. |
• |
Level
3 - Unobservable inputs which are supported by little or no market activity, and unobservable inputs based on the Company's own
assumptions used to measure liabilities at fair value. The inputs require significant management judgment or estimation.
|
F - 21
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
F - 22
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year
Ended December 31, 2023 |
||||||||||||
As
Previously Reported |
Adjustment
|
As
Revised |
||||||||||
Cost of revenue
|
$
|
|
$
|
|
$
|
|
||||||
Research and development
|
|
|
|
|||||||||
Selling and marketing
|
|
|
|
|||||||||
General and administrative
|
|
|
|
|||||||||
Total Costs and Expenses
|
|
|
|
|||||||||
Income from Operations
|
|
(
|
)
|
|
||||||||
Income before Taxes on
income |
|
(
|
)
|
|
||||||||
Net Income
|
|
(
|
)
|
|
||||||||
Net Earnings per Share
- Basic |
|
(
|
)
|
|
||||||||
Net Earnings per Share
- Diluted |
$
|
|
$
|
(
|
)
|
$
|
|
Year
Ended December 31, 2022 |
||||||||||||
As
Previously Reported |
Adjustment
|
As
Revised |
||||||||||
Cost of revenue
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||
Research and development
|
|
|
|
|||||||||
Selling and marketing
|
|
|
|
|||||||||
General and administrative
|
|
|
|
|||||||||
Total Costs and Expenses
|
|
|
|
|||||||||
Income from Operations
|
|
(
|
)
|
|
||||||||
Income before Taxes on
income |
|
(
|
)
|
|
||||||||
Net Income
|
|
(
|
)
|
|
||||||||
Net Earnings per Share
- Basic |
|
(
|
)
|
|
||||||||
Net Earnings per Share
- Diluted |
$
|
|
$
|
(
|
)
|
$
|
|
F - 23
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December
31, 2024 |
||||||||||||||||
Amortized
cost
|
Gross
unrealized
gain
|
Gross
unrealized
loss
|
Fair
value |
|||||||||||||
Matures within one year:
|
||||||||||||||||
Corporate
debentures |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Government
agencies |
|
|
|
|
||||||||||||
Government
debentures |
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Matures after one year
through three years: |
||||||||||||||||
Corporate
debentures |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Government
agencies |
|
|
|
|
||||||||||||
Government
debentures |
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
December
31, 2023 |
||||||||||||||||
Amortized
cost
|
Gross
unrealized
gain
|
Gross
unrealized
loss
|
Fair
value |
|||||||||||||
Matures within one year:
|
||||||||||||||||
Corporate
debentures |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Government
agencies |
|
|
|
|
||||||||||||
Government
debentures |
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Matures after one year
through three years: |
||||||||||||||||
Corporate
debentures |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Government
agencies |
|
|
|
|
||||||||||||
Government
debentures |
|
|
|
|
||||||||||||
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
F - 24
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December
31, 2024 |
||||||||||||||||||||||||
Less
than 12 months |
More
than 12 months |
Total
|
||||||||||||||||||||||
Fair
value
|
Unrealized
losses
|
Fair
value
|
Unrealized
losses
|
Fair
value
|
Unrealized
losses
|
|||||||||||||||||||
Corporate
debentures |
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Government
agencies |
|
|
|
|
|
|
||||||||||||||||||
Government
debentures |
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
|
$
|
|
$
|
|
$
|
|
NOTE
4: |
FAIR
VALUE OF FINANCIAL INSTRUMENTS |
December
31, 2024 |
||||||||||||||||
Fair
value measurements using input type |
||||||||||||||||
Level
1 |
Level
2 |
Level
3 |
Total
|
|||||||||||||
Financial
Assets: |
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available-for-sale marketable
securities |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Total
financial assets |
$
|
|
$
|
|
$
|
|
$
|
|
F - 25
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
4: |
FAIR
VALUE OF FINANCIAL INSTRUMENTS (Cont.) |
The following table presents financial assets measured at fair value on a recurring basis as of December 31, 2023:
December
31, 2023 |
||||||||||||||||
Fair
value measurements using input type |
||||||||||||||||
Level
1 |
Level
2 |
Level
3 |
Total
|
|||||||||||||
Financial
Assets: |
||||||||||||||||
Money market funds
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Available-for-sale marketable
securities |
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Total
financial assets |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Financial
Liabilities: |
||||||||||||||||
Derivative liabilities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Contingent consideration
in connection to the acquisitions |
|
|
|
|
||||||||||||
Total
financial liabilities |
$
|
|
$
|
|
$
|
|
$
|
|
Fair
value as of December 31, 2023 |
$
|
|
||
Payments of contingent
consideration |
(
|
)
| ||
Changes in fair value
of contingent consideration |
|
|||
Fair
value as of December 31, 2024 |
$
|
|
F - 26
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
5: |
ACQUISITIONS
|
a. |
Content IQ LLC |
b. |
Pub Ocean
On July 22, 2020, the
Company acquired the net assets of Pub Ocean Limited, also known as “Pub Ocean” (the “Pub Ocean Acquisition"), digital
publisher-focused technology company with scalable content distribution and real-time revenue analytics technology.
|
c. |
Vidazoo |
F - 27
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
5: |
ACQUISITIONS
(Cont.) |
d. |
Hivestack |
Initially
Reported as
of December 31,
2023
|
Measurement
Period Adjustment |
December 31,
2024 |
||||||||||
Net
Assets1 |
$
|
|
$
|
|
$
|
|
||||||
Technology
|
|
|
|
|||||||||
Customer
Relationship |
|
|
|
|||||||||
Tradename
|
|
|
|
|||||||||
Deferred
Taxes |
(
|
)
|
|
(
|
)
| |||||||
Goodwill
|
|
(
|
)
|
|
||||||||
Net
assets acquired |
$
|
|
$
|
|
|
$
|
|
Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers.
F - 28
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
5: |
ACQUISITIONS
(Cont.) |
Employee
termination
costs |
Contract
termination
|
Intangible
assets
write-off
|
Total
|
|||||||||||||
Cost of revenue
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Research and development
|
|
|
|
|
||||||||||||
Selling and marketing
|
|
|
|
|
||||||||||||
General and administrative
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$ |
|
$
|
|
$
|
|
F - 29
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 7: |
PROPERTY AND EQUIPMENT,
NET |
December
31, |
||||||||
2024
|
2023
|
|||||||
Cost:
|
||||||||
Computers and peripheral
equipment |
$
|
|
$
|
|
||||
Office furniture and
equipment |
|
|
||||||
Leasehold improvements
|
|
|
||||||
Capitalized software
|
|
|
||||||
Total cost
|
|
|
||||||
Less: accumulated depreciation
and amortization |
(
|
)
|
(
|
)
| ||||
Property and equipment,
net |
$
|
|
$
|
|
F - 30
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: |
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET |
a. |
Goodwill |
Balance
as of January 1, 2023 |
$
|
|
||
Acquisition of Hivestack
|
$
|
|
||
Balance
as of December 31, 2023 |
$
|
|
||
Measurement period adjustment
|
$
|
(
|
)
| |
Balance
as of December 31, 2024 |
$
|
|
During 2024, the Company experienced a significant decline in its stock price. In response, and as part of the Company’s annual impairment test, the Company performed a quantitative goodwill impairment test as of December 31, 2024, which indicated that the fair value of each reporting unit exceeded its carrying amount, and therefore, no impairment loss was recorded. The company used the income approach to measure the fair value of the reporting units. The significant assumptions used in the model mainly relate to the projected revenues and operating income in the forecasted years.
No goodwill impairment was incurred for the years ended December 31, 2024, 2023 and 2022.
F - 31
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: |
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET (Cont.) |
b. |
Intangible assets, net |
December 31,
2023 |
Write-off |
Amortization
|
December 31,
2024 |
|||||||||||||
Acquired
technology |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Write-off due to restructuring
|
|
(
|
)
|
|
(
|
)
| ||||||||||
Acquired
technology, net |
|
(
|
)
|
(
|
)
|
|
||||||||||
Customer
relationships |
|
|
|
|
||||||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Write-off due to restructuring
|
|
(
|
)
|
|
(
|
)
| ||||||||||
Customer
relationships, net |
|
(
|
)
|
(
|
)
|
|
||||||||||
Tradename
and other |
|
|
|
|
||||||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Tradename
and other, net |
|
|
(
|
)
|
|
|||||||||||
Intangible
assets, net |
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
|
The following is a summary of intangible assets as of December 31, 2023:
December 31,
2022 |
Additions
|
Amortization
|
December 31,
2023 |
|||||||||||||
Acquired
technology |
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Acquired
technology, net |
|
|
(
|
)
|
|
|||||||||||
Customer
relationships |
|
|
|
|
||||||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Customer
relationships, net |
|
|
(
|
)
|
|
|||||||||||
Tradename
and other |
|
|
|
|
||||||||||||
Accumulated amortization
|
(
|
)
|
|
(
|
)
|
(
|
)
| |||||||||
Impairment
|
(
|
)
|
|
|
(
|
)
| ||||||||||
Tradename
and other, net |
|
|
(
|
)
|
|
|||||||||||
Intangible
assets, net |
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
F - 32
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 8: |
GOODWILL AND OTHER INTANGIBLE
ASSETS, NET (Cont.) |
Estimated
useful life |
||||
Acquired technology
|
|
|||
Customer relationship
|
|
|||
Tradename
|
|
2025
|
$
|
|
||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
2029
|
|
|||
Thereafter
|
|
|||
$
|
|
NOTE 9: |
ACCRUED EXPENSES AND
OTHER LIABILITIES |
December
31, |
||||||||
2024
|
2023
|
|||||||
Employees and payroll
accruals |
$
|
|
$
|
|
||||
Government authorities
|
|
|
||||||
Accrued expenses
|
|
|
||||||
Other short-term liabilities
|
|
|
||||||
$
|
|
$
|
|
F - 33
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 10: |
DERIVATIVES AND HEDGING
ACTIVITIES |
December
31, |
||||||||||
Balance
sheet |
2024
|
2023
|
||||||||
Derivatives
designated as hedging instruments: |
||||||||||
Foreign exchange forward
contracts and other derivatives |
''Prepaid expenses and
other current assets'' |
$
|
|
$
|
|
|||||
''Accrued expenses and
other liabilities'' |
|
|
||||||||
''Accumulated other comprehensive
income'' |
$ |
|
$ |
|
Gain
(loss) recognized in Consolidated Statements of Comprehensive Income |
Gain
(loss) recognized
in Consolidated
Statements of
Income
|
||||||||||||||||
Year
ended December 31, |
Statement
of Income
|
Year
ended December 31, |
|||||||||||||||
2024
|
2024
|
2023
|
2022
|
||||||||||||||
Derivatives
designated
as
hedging instruments: |
|||||||||||||||||
Foreign exchange options
and forward contracts |
$
|
(
|
)
|
"Operating
expenses" |
$
|
|
$
|
(
|
)
|
$
|
(
|
)
| |||||
Derivatives
not designated
as
hedging instruments: |
|||||||||||||||||
Foreign exchange options
and forward contracts |
|
"Financial
expenses" |
|
(
|
)
|
(
|
)
| ||||||||||
Total
|
$
|
(
|
)
|
$
|
|
$
|
(
|
)
|
$
|
(
|
)
|
F - 34
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11: |
LEASES |
Year ended December 31,
|
||||||
2024
|
2023
|
|||||
Weighted average remaining
lease term |
|
|
||||
Weighted average discount
rate |
|
|
|
|
F - 35
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 11: |
LEASES
(Cont.) |
Year
ending December 31, |
||||
2025
|
$
|
|
||
2026
|
|
|||
2027
|
|
|||
2028
|
|
|||
Thereafter
|
|
|||
Total
lease payments *) |
$
|
|
||
Less
– imputed interest |
(
|
)
| ||
Present
value of lease liabilities |
$
|
|
F - 36
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
a. |
Share
repurchase program
In February 2024, our
board of directors approved a share repurchase program of up to $ |
b. |
Ordinary
shares
The ordinary shares of
the Company entitle their holders to voting rights, the right to receive cash dividend and the right to a share in excess assets upon
liquidation of the Company. |
c. |
Share
Options, Restricted Share Units and Warrants
In 2003, the Company's
Board of Directors approved the 2003 Equity Incentive Plan for an initial term of ten years from adoption and on December 9, 2012,
extended the term of the Plan for an additional ten years (the "2013 Plan"). On August 7, 2013, the Company’s Board of Directors
approved amendments to the 2013 Plan which include the ability to grant RSUs and restricted shares. On November 8, 2022 the Board extended
the term of the 2013 Plan for an additional period of two years which has expired on December 9, 2024. On November 19, 2024, the
Board approved the adoption of a new equity incentive plan, the Perion Network Ltd. 2024 Share Incentive Plan, which became effective
on the same date (the “2024 Incentive Plan” and together with the Plan, the “Equity Plans”). Following the adoption
of the 2024 Incentive Plan, no awards were granted under the 2013 Incentive Plan.
The contractual term
of the share options is generally no more than
As of December 31, 2024,
there were |
F - 37
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Weighted
average |
||||||||||||||||
Number of
options
and
RSUs |
Exercise
price |
Remaining
contractual
term
(in
years) |
Aggregate
intrinsic
value
|
|||||||||||||
Outstanding at January
1, 2024 |
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
|
-
|
-
|
||||||||||||
Exercised
|
(
|
)
|
|
-
|
|
|||||||||||
Cancelled
|
(
|
)
|
|
-
|
-
|
|||||||||||
Outstanding
at December 31, 2024 |
|
$
|
|
|
$
|
|
||||||||||
Exercisable
at December 31, 2024 |
|
$
|
|
|
$
|
|
||||||||||
Vested
and expected to vest at December 31, 2024 |
|
$
|
|
|
$
|
|
F - 38
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Weighted
average |
||||||||||||||||
Number of
Performance
based
options
and RSUs |
Exercise
price |
Remaining
contractual
term
(in
years) |
Aggregate
intrinsic
value
|
|||||||||||||
Outstanding at January
1, 2024 |
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
|
-
|
-
|
||||||||||||
Exercised
|
(
|
)
|
|
-
|
|
|||||||||||
Cancelled
|
(
|
)
|
|
-
|
-
|
|||||||||||
Outstanding
at December 31, 2024 |
|
$
|
|
|
$
|
|
||||||||||
Exercisable
at December 31, 2024 |
|
|
-
|
|
||||||||||||
Vested
and expected to vest at December 31, 2024 |
|
$
|
|
|
$
|
|
F - 39
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Outstanding
|
Exercisable
|
|||||||||||||||||||||||||
Range
of exercise price |
Number of
options and
RSUs
|
Weighted
average
remaining
contractual
life
(years) |
Weighted
average
exercise
price |
Number of
options and
RSUs
|
Weighted
average
remaining
contractual
life
(years) |
Weighted
average
exercise
price |
||||||||||||||||||||
$
|
|
|
|
$
|
|
|
-
|
$
|
|
|||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||||
$
|
|
|
|
|
|
|
|
|||||||||||||||||||
|
|
$
|
|
|
|
$
|
|
Outstanding
|
Exercisable
|
|||||||||||||||||||||||||
Range
of exercise price |
Number of
RSUs
|
Weighted
average remaining contractual life (years) |
Weighted
average exercise price |
Number
RSUs
|
Weighted
average remaining contractual life (years) |
Weighted
average exercise price |
||||||||||||||||||||
$
|
|
|
|
$
|
|
|
-
|
$
|
|
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Cost of revenue
|
$
|
|
$
|
|
$
|
|
||||||
Research and development
|
|
|
|
|||||||||
Selling and marketing
|
|
|
|
|||||||||
General and administrative
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
F - 40
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 14: |
FINANCIAL
INCOME (EXPENSE), NET |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Financial
income: |
||||||||||||
Interest
income |
$
|
|
$
|
|
$
|
|
||||||
Amortization/accretion
of premium/discount on marketable securities, net |
|
|
|
|||||||||
$
|
|
$
|
|
$
|
|
|||||||
Financial
expense: |
||||||||||||
Foreign currency
translation losses |
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
| |||
Interest
expense on debts |
|
|
|
| ||||||||
Bank charges
and other |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
| ||||
Financial
income, net |
$
|
|
$
|
|
$
|
|
|
a. |
Income
before taxes on income Income
before taxes on income is comprised as follows: |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Domestic
|
$
|
|
$
|
|
$
|
|
||||||
Foreign
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
b. |
Taxes on income
Taxes on income are comprised
as follows: |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Current taxes
|
$
|
|
$
|
|
$
|
|
||||||
Deferred tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Taxes in respect of previous
years |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Total
|
$
|
|
$
|
|
$
|
|
F - 41
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Domestic
|
$
|
|
$
|
|
$
|
|
||||||
Foreign
|
|
|
|
|||||||||
Total
|
$
|
|
$
|
|
$
|
|
||||||
Domestic:
|
||||||||||||
Current taxes
|
$
|
|
$
|
|
$
|
|
||||||
Deferred tax benefit
|
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Taxes in respect of previous
years |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Total
- Domestic |
$
|
|
$
|
|
$
|
|
||||||
Foreign:
|
||||||||||||
Current taxes
|
$
|
|
$
|
|
$
|
|
||||||
Deferred tax expense
(benefit) |
|
|
(
|
)
| ||||||||
Taxes in respect of previous
years |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Total
- Foreign |
$
|
|
$
|
|
$
|
|
||||||
Total
income tax expense |
$
|
|
$
|
|
$
|
|
F - 42
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
c. |
Deferred
Taxes
Deferred income taxes
reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes
and the amounts used for income tax purposes. The significant components of the Company’s deferred tax assets and liabilities are
as follows: |
December
31, |
||||||||
2024
|
2023
|
|||||||
Deferred
tax assets: |
||||||||
Net operating loss and
other losses carry forwards |
$
|
|
$
|
|
||||
Research and development
|
|
|
||||||
Share-based compensation
|
|
|
||||||
Lease liabilities
|
|
|
||||||
Other temporary differences
mainly relating to reserve and allowances |
|
|
||||||
Deferred
tax assets, before valuation allowance |
$
|
|
$
|
|
||||
Valuation allowance
|
$
|
(
|
)
|
(
|
)
| |||
Deferred
tax liability: |
||||||||
Right of use assets
|
$
|
(
|
)
|
$
|
(
|
)
| ||
Intangible assets
|
(
|
)
|
(
|
)
| ||||
Deferred
tax liability, before valuation allowance |
$
|
(
|
)
|
$
|
(
|
)
| ||
Total
deferred tax assets, net |
$
|
|
$
|
|
||||
Domestic:
|
||||||||
Long term deferred tax
asset, net |
$
|
|
$
|
|
||||
$
|
|
$
|
|
|||||
Foreign:
|
||||||||
Long term deferred tax
asset, net |
$
|
|
$
|
|
||||
$
|
|
$
|
|
|||||
Total
deferred tax asset, net |
$
|
|
$
|
|
The $ |
F - 43
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
d. |
Reconciliation
of the Company’s effective tax rate to the statutory tax rate in Israel
A reconciliation between
the theoretical tax expense, assuming all income is taxed at the statutory tax rate applicable to income of the Company, and the actual
tax expense as reported in the statement of income is as follows: |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Income before taxes on
income |
$
|
|
$
|
|
$
|
|
||||||
Statutory tax rate in
Israel |
|
%
|
|
%
|
|
%
| ||||||
Theoretical tax expense
|
$
|
|
$
|
|
$
|
|
||||||
Increase (decrease) in
tax expenses resulting from: |
||||||||||||
"Preferred Enterprise"
benefits * |
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Non-deductible expenses
|
|
|
(
|
)
| ||||||||
Tax adjustment in respect
of different tax rate of foreign subsidiaries |
|
|
|
|||||||||
Deferred taxes related
to prior years |
|
|
(
|
)
| ||||||||
Previous years taxes
|
|
|
(
|
)
| ||||||||
Change in valuation allowance
|
(
|
)
|
(
|
)
|
(
|
)
| ||||||
Change in unrecognized
tax benefits |
(
|
)
|
|
|
||||||||
Other
|
|
(
|
)
|
(
|
)
| |||||||
Taxes
on income |
$
|
|
$
|
|
$
|
|
||||||
* Benefit per ordinary
share from "Preferred Enterprise" status: |
||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
||||||
Diluted
|
$
|
|
$
|
|
$
|
|
e. |
Income tax rates
Taxable income of Israeli
companies was generally subject to corporate tax at the rate of
Non-Israeli subsidiaries
are taxed according to the tax laws in their respective countries of residence. |
F - 44
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Deferred taxes were not
provided for undistributed earnings of the Company’s foreign subsidiaries. Currently, the Company does not intend to distribute
any amounts of its undistributed earnings as dividends. Accordingly, no deferred income taxes have been provided in respect of these subsidiaries.
If these earnings were distributed to Israel in the form of dividends or otherwise, the Company would be subject to additional Israeli
income taxes (subject to an adjustment for foreign tax credits) and foreign withholding taxes. As of December 31, 2024, certain foreign
subsidiaries of the Company had undistributed earnings of $
|
f. |
Law for the Encouragement of Capital Investments,
1959
The Law for Encouragement
of Capital Investments, 1959 (the "Investment Law") provides tax benefits for Israeli companies meeting certain requirements and criteria.
The Investment Law has undergone certain amendments and reforms in recent years.
The Israeli parliament
enacted a reform to the Investment Law, effective January 2011 (which was amended in August 2013). According to the reform, a flat rate
tax applies to Preferred Income of companies eligible for the "Preferred Enterprise" status. In order to be eligible for Preferred Enterprise
status, a company must meet minimum requirements to establish that it contributes to the country’s economic growth and is a competitive
factor for the gross domestic product.
The Company’s Israeli
operations elected “Preferred Enterprise” status, starting in 2011.
Benefits granted to a
Preferred Enterprise include reduced tax rates. As part of the Economic Efficiency Law (Legislative Amendments for Accomplishment of Budgetary
Targets for Budget Years 2017-2018), 5777-2016, the tax rate is
A distribution from a
Preferred Enterprise out of the "Preferred Income" would be subject to
|
g. |
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 ("Amendment 73") was published and came into effect in May 2017.
Any dividends distributed
from income from the preferred technological enterprises will be subject to tax at a rate of |
F - 45
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
The Company assessed
the criteria for qualifying as a “Preferred Technological Enterprise,” status and concluded that the Company and certain of
its Israeli subsidiaries are eligible to the above-mentioned benefits. |
h. |
Uncertain tax positions
A reconciliation of the
beginning and ending balances of the total amounts of unrecognized tax benefits is as follows: |
December
31, |
||||||||
2024
|
2023
|
|||||||
Balance
at the beginning of the year |
$
|
|
$
|
|
||||
Decrease related to prior
year tax positions, net |
(
|
)
|
(
|
)
| ||||
Increase related to current
year tax positions, net |
|
|
||||||
Balance
at the end of the year |
$
|
|
$
|
|
In 2024, the Company
recognizes interest accrued related to unrecognized tax benefits and penalties in tax expenses. The Company had $
The Company does not
expect uncertain tax positions to change significantly over the next 12 months, except in the case of settlements with tax authorities,
the likelihood and timing of which are difficult to estimate.
The Company’s tax
assessments in Israel and the U.S. Federal for tax years prior to 2020 and 2021 respectively are considered final. The Company is
currently under Israeli Tax authority audit for the years 2020-2022. Some of the Company’s US subsidiaries are under IRS audit for
the year 2022. The Company has net operating losses in the U.S. from prior tax periods beginning in 2015 which may be subject to examination
upon utilization in future tax periods. |
i. |
Tax loss carry-forwards
As of December 31, 2024,
the Company’s U.S. subsidiaries have Federal net operating loss carry-forwards of $ |
F - 46
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
As of December 31, 2024,
the Company’s European subsidiaries have net operating loss carry-forwards of $
The Company has accumulated
capital losses for tax purposes as of December 31, 2024, of approximately $ |
NOTE
16: |
EARNINGS
PER SHARE |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
Numerator:
|
||||||||||||
Net
income attributable to ordinary shares – basic and diluted |
$
|
|
$
|
|
$
|
|
||||||
Denominator:
|
||||||||||||
Number
of ordinary shares outstanding during the year |
|
|
|
|||||||||
Weighted
average effect of dilutive securities: |
||||||||||||
Employee
options and restricted share units |
|
|
|
|||||||||
Diluted
number of ordinary shares outstanding |
|
|
|
|||||||||
Basic
net earnings per ordinary share |
$
|
|
$
|
|
$
|
|
||||||
Diluted
net earnings per ordinary share |
$
|
|
$
|
|
$
|
|
||||||
Potential
ordinary shares equivalents excluded because their effect would have been anti-dilutive |
|
|
|
F - 47
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
17: |
MAJOR
CUSTOMERS |
Year
ended December 31, |
|||||||||
2024
|
2023
|
2022
|
|||||||
Customer A
|
|
|
|
| |||||
Customer B
|
|
|
|
NOTE
18: |
GEOGRAPHIC
INFORMATION |
Year
ended December 31, |
||||||||||||
2024
|
2023
|
2022
|
||||||||||
U.S.
|
$
|
|
$
|
|
$
|
|
||||||
Other
|
|
|
|
|||||||||
$
|
|
$
|
|
$
|
|
F - 48
PERION NETWORK LTD. AND ITS SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE
18: |
GEOGRAPHIC
INFORMATION (Cont.) |
December
31, |
||||||||
2024
|
2023
|
|||||||
Israel
|
$
|
|
$
|
|
||||
U.S.
|
|
|
||||||
Other
|
|
|
||||||
$ |
|
$
|
|
1. |
In March 2025, our board of directors
approved an additional $ |
2. |
On February 13, 2025, a purported
shareholder filed a putative derivative action on behalf of the Company in the SDNY against all of the Company’s directors and certain
of its officers and former directors, principally alleging that the Board breached its duties by allowing the Company to make material
misrepresentations and/or omissions in various public disclosures concerning the Company’s search advertising business and partnership
with Microsoft Bing (the “Derivative Action”). The Derivative Action is currently pending. The Company also disputes
the allegations of wrongdoing and intends to defend against them vigorously. |
* |
Filed herewith. |
** |
Furnished herewith. |
*** |
Certain confidential information contained in this
document, marked by brackets, was omitted because it is both (i) not material and (ii) would likely cause competitive harm to the Company
if publicly disclosed. “[***]” indicates where the information has been omitted from this exhibit. |
† |
Indicates management contract or compensatory plan
or arrangement. |
|
PERION NETWORK LTD. |
| |
|
|
|
|
|
By: |
/s/ Tal Jacobson |
|
|
|
Name: Tal Jacobson |
|
|
|
Title: Chief Executive
Officer |
|
|
|
|
|
|
By: |
/s/ Elad Tzubery |
|
|
|
Name: Elad Tzubery |
|
|
|
Title: Chief Financial
Officer |
|
Date: March 25, 2025 |
1.
|
Introduction
|
2.
|
Objectives
|
2.1.
|
To closely align the interests of the Executive Officers with those of Perion’s shareholders in order to enhance shareholder
value;
|
|
2.2.
|
To align a significant portion of the Executive Officers’ compensation with Perion’s short and long-term goals and performance;
|
|
2.3.
|
To provide the Executive Officers with a structured compensation package, including competitive salaries, performance-motivating
cash and equity incentive programs and benefits, and to be able to present to each Executive Officer an opportunity to advance in a growing organization;
|
|
2.4.
|
To strengthen the retention and the motivation of Executive Officers in the long term;
|
|
2.5.
|
To provide appropriate awards in order to incentivize superior
individual excellency and corporate performance; and
|
|
2.6.
|
To maintain consistency in the way Executive Officers are compensated.
|
3.
|
Compensation Instruments
|
3.1.
|
Base salary;
|
|
3.2.
|
Benefits;
|
|
3.3.
|
Cash bonuses;
|
|
3.4.
|
Equity based compensation;
|
|
3.5.
|
Change of control terms; and
|
|
3.6.
|
Retirement and termination terms.
|
4.
|
Overall Compensation - Ratio Between Fixed and Variable Compensation
|
4.1.
|
This Policy aims to balance the mix of “Fixed Compensation” (comprised of base salary and benefits) and “Variable Compensation”
(comprised of cash bonuses and equity-based compensation) in order to, among other things, appropriately incentivize Executive Officers to meet Perion’s short and long-term goals while taking into consideration the Company’s need to manage a
variety of business risks.
|
|
4.2.
|
The total annual target bonus and equity-based compensation per vesting annum (based on the fair market value at the time of
grant calculated on a liner basis) of each Executive Officer shall not exceed 90% of the total compensation package of such Executive Officer on an annual basis.
|
5.
|
Inter-Company Compensation Ratio
|
5.1.
|
In the process of drafting and updating this Policy, Perion’s Board and Compensation Committee have examined the ratio between
employer cost associated with the engagement of the Executive Officers, including directors, and the average and median employer cost associated with the engagement of Perion’s other employees (including contractor employees as defined in the
Companies Law) (the “Ratio”).
|
|
5.2.
|
The possible ramifications of the Ratio on the daily working environment in Perion were examined and will continue to be
examined by Perion from time to time in order to ensure that levels of executive compensation, as compared to the overall workforce will not have a negative impact on work relations in Perion.
|
6.
|
Base Salary
|
6.1.
|
A base salary provides stable compensation to Executive Officers and allows Perion to attract and retain competent executive
talent and maintain a stable management team. The base salary varies among Executive Officers, and is individually determined according to the educational background, prior vocational experience, qualifications, company’s role, business
responsibilities and the past performance of each Executive Officer.
|
6.2.
|
Since a competitive base salary is essential to Perion’s ability to attract and retain highly skilled professionals, Perion will
seek to establish a base salary that is competitive with base salaries paid to Executive Officers in a peer group of other companies operating in technology sectors which are similar in their characteristics to Perion’s, as much as possible,
while considering, among others, such companies’ size and characteristics including their revenues, market capitalization, number of employees and operating arena (in Israel or globally), the list of which shall be reviewed and approved by
the Compensation Committee. To that end, Perion shall utilize as a reference, comparative market data and practices, which will include a compensation survey that compares and analyses the level of the overall compensation package offered to
an Executive Officer of the Company with compensation packages in similar positions to that of the relevant officer) in such companies. Such compensation survey may be conducted internally or through an external independent consultant.
Information on such compensation survey shall be included in the proxy statement published in connection with the annual general meeting of Perion’s shareholders.
|
6.3.
|
The Compensation Committee and the Board may periodically consider and approve base salary adjustments for Executive Officers.
The main considerations for salary adjustment are similar to those used in initially determining the base salary, but may also include change of role or responsibilities, recognition for professional achievements, regulatory or contractual
requirements, budgetary constraints or market trends. The Compensation Committee and the Board will also consider the previous and existing compensation arrangements of the Executive Officer whose base salary is being considered for
adjustment. Any limitation herein based on the annual base salary shall be calculated based on the monthly base salary applicable at the time of consideration of the respective grant or benefit.
|
7.
|
Benefits
|
7.1.
|
The following benefits may be granted to the Executive Officers in order, among other things, to comply with legal requirements:
|
7.1.1.
|
Vacation days in accordance with market practice;
|
7.1.2.
|
Sick days in accordance with market practice;
|
7.1.3.
|
Convalescence pay according to applicable law;
|
7.1.4.
|
Monthly remuneration for a study fund, as allowed by applicable law and with reference to Perion’s practice and the practice in
peer group companies;
|
7.1.5.
|
Perion shall contribute on behalf of the Executive Officer to an insurance policy or a pension fund, as allowed by applicable
law and with reference to Perion’s policies and procedures and the practice in peer group companies (including contributions on bonus payments); and
|
7.1.6.
|
Perion shall contribute on behalf of the Executive Officer towards work disability insurance, as allowed by applicable law and
with reference to Perion’s policies and procedures and to the practice in peer group companies.
|
7.2.
|
Non-Israeli Executive Officers may receive other similar, comparable or customary benefits as applicable in the relevant
jurisdiction in which they are employed. Such customary benefits shall be determined based on the methods described in Section 6.2 of this Policy (with the necessary changes and adjustments).
|
7.3.
|
In events of relocation or repatriation of an Executive Officer to another geography, such Executive Officer may receive other
similar, comparable or customary benefits as applicable in the relevant jurisdiction in which he or she is employed or additional payments to reflect adjustments in cost of living. Such benefits shall include reimbursement for out of pocket
one-time payments and other ongoing expenses, such as housing allowance, car allowance, and home leave visit, etc.
|
7.4.
|
Perion may offer additional benefits to its Executive Officers, which will be comparable to customary market practices, such as,
but not limited to: cellular and land line phone benefits, company car and travel benefits, reimbursement of business travel including a daily stipend when traveling and other business related expenses, insurances, other benefits (such as
newspaper subscriptions, academic and professional studies), etc., provided, however, that such additional benefits shall be determined in accordance with Perion’s policies and procedures.
|
8.
|
Annual Cash Bonuses - The Objective
|
8.1.
|
Compensation in the form of an annual cash bonus is an important element in aligning the Executive Officers’ compensation with
Perion’s objectives and business goals. Therefore, a pay-for-performance element, as payout eligibility and levels are determined based on actual financial and operational results, as well as individual performance.
|
8.2.
|
An annual cash bonus may be awarded to Executive Officers upon the attainment of pre-set periodical objectives and individual
targets determined by the Compensation Committee (and, if required by law, by the Board) at the beginning of each calendar year, or upon engagement, in case of newly hired Executive Officers, taking into account Perion’s short and long-term
goals, as well as its compliance and risk management policies. The Compensation Committee and the Board shall also determine applicable minimum thresholds that must be met for entitlement to the annual cash bonus (all or any portion thereof)
and the formula for calculating any annual cash bonus payout, with respect to each calendar year, for each Executive Officer. In special circumstances, as determined by the Compensation Committee and the Board (e.g., regulatory changes,
significant changes in Perion’s business environment, a significant organizational change, a significant merger and acquisition events etc.), the Compensation Committee and the Board may modify the objectives and/or their relative weights
during the calendar year.
|
8.3.
|
In the event the employment of an Executive Officer is terminated prior to the end of a fiscal year, the Company may (but shall
not be obligated to) pay such Executive Officer a full annual cash bonus or a prorated one.
|
8.4.
|
The actual annual cash bonus to be awarded to Executive Officers shall be approved by the Compensation Committee and the Board.
|
9.
|
Annual Cash Bonuses - The Formula
|
9.1.
|
The annual cash bonus of Perion’s Executive Officers, other than the chief executive officer (the “CEO”), will be based on performance objectives and a discretionary evaluation of the Executive Officer’s overall performance and subject to minimum thresholds based on
overall company performance. The performance objectives will be approved by the Compensation Committee (and, if required by law, by the Board) at the commencement of each calendar year (or upon engagement, in case of newly hired Executive
Officers or in special circumstances as indicated in Section 8.2 above) on the basis of, but not limited to, company, division or individual objectives. The performance measurable objectives, which include the objectives and the weight to be
assigned to each achievement in the overall evaluation, may be based on actual financial and operational results against annual plan, such as revenues, operating income and cash flow and may further include, divisional or personal objectives
which may include operational objectives, such as market share, initiation of new markets and operational efficiency, customer focused objectives, project milestones objectives and investment in human capital objectives, such as employee
satisfaction, employee retention and employee training and leadership programs.
|
9.2.
|
The target annual cash bonus that an Executive Officer, other than the CEO, will be entitled to receive for any given calendar
year, will not exceed 100% of such Executive Officer’s annual base salary.
|
9.3.
|
The maximum annual cash bonus including for overachievement performance that an Executive Officer, other than the CEO, will be
entitled to receive for any given calendar year, will not exceed 150% of such Executive Officer’s annual base salary.
|
9.4.
|
The annual cash bonus of Perion’s CEO will be mainly based on performance measurable objectives and subject to minimum
thresholds as provided in Section 8.2 above. Such performance measurable objectives will be determined annually by Perion’s Compensation Committee (and, if required by law, by Perion’s Board) at the commencement of each calendar year (or upon
engagement, in case of newly hired CEO or in special circumstances as indicated in Section 8.2 above) on the basis of, but not limited to, company and personal objectives. These performance measurable objectives will include the objectives
and the weight to be assigned to each achievement in the overall evaluation.
|
9.5.
|
The less significant part of the annual cash bonus granted to Perion’s CEO, and in any event not more than 30% of the annual
cash bonus, may be based on a discretionary evaluation of the CEO’s overall performance by the Compensation Committee and the Board based on quantitative and qualitative criteria.
|
9.6.
|
The target annual cash bonus that the CEO will be entitled to receive for any given calendar year, will not exceed 100% of his
or her annual base salary.
|
9.7.
|
The maximum annual cash bonus including for overachievement performance that the CEO will be entitled to receive for any given
calendar year, will not exceed 150% of his or her annual base salary.
|
10.
|
Other Bonuses
|
10.1.
|
Special Bonus. Perion may grant its
Executive Officers a special bonus as an award for special achievements (such as in connection with mergers and acquisitions, offerings, achieving target budget or business plan under exceptional circumstances or special recognition in case
of retirement), as a retention award at the CEO’s discretion (and in the CEO’s case, at the Board’s discretion) or as a non-compete grant, subject to any additional approval as may be required by the Companies Law (the “Special Bonus”). The Special Bonus will not exceed 100% of the Executive Officer’s annual base salary.
|
10.2.
|
Signing Bonus. Perion may grant a
newly recruited Executive Officer a signing bonus at the CEO’s discretion (and in the CEO’s case, at the Board’s discretion), subject to any additional approval as may be required by the Companies Law (the “Signing Bonus”). The Signing Bonus will not exceed 100% of the Executive Officer’s annual base salary.
|
10.3.
|
Relocation/ Repatriation Bonus.
Perion may grant its Executive Officers a special bonus in the event of relocation or repatriation of an Executive Officer to another geography (the “Relocation Bonus”). The Relocation bonus will include customary benefits associated with such relocation and its monetary value will not exceed 100% of the Executive Officer’s annual base salary.
|
11.
|
Compensation Recovery (“Clawback”)
|
11.1.
|
In the event of an accounting restatement, Perion shall be entitled to recover from its Executive Officers the bonus
compensation or performance-based equity compensation in the amount in which such compensation exceeded what would have been paid under the financial statements, as restated, provided that a claim is made by Perion prior to the second
anniversary of fiscal year end of the restated financial statements.
|
11.2.
|
Notwithstanding the aforesaid, the compensation recovery will not be triggered in the following events:
|
11.2.1.
|
The financial restatement is required due to changes in the applicable financial reporting standards; or
|
11.2.2.
|
The Compensation Committee has determined that clawback proceedings in the specific case would be impossible, impractical or not
commercially or legally efficient.
|
11.3.
|
Nothing in this Section 11 derogates from any other “clawback” or similar provisions regarding disgorging of profits imposed on
Executive Officers by virtue of applicable securities laws.
|
12.
|
The Objective
|
12.1.
|
The equity-based compensation for Perion’s Executive Officers is designed in a manner consistent with the underlying objectives
in determining the base salary and the annual cash bonus, with its main objectives being to enhance the alignment between the Executive Officers’ interests with the long-term interests of Perion and its shareholders, and to strengthen the
retention and the motivation of Executive Officers in the long term. In addition, since equity-based awards are structured to vest over several years, their incentive value to recipients is aligned with longer-term strategic plans.
|
12.2.
|
The equity-based compensation offered by Perion is intended to be in a form of share options and/or other equity-based awards,
such as RSUs, in accordance with the Company’s equity incentive plan in place as may be updated from time to time.
|
12.3.
|
All equity-based incentives granted to Executive Officers shall be subject to vesting periods in order to promote long-term
retention of the awarded Executive Officers. Unless determined otherwise in a specific award agreement approved by the Compensation Committee and the Board, grants to Executive Officers other than non-employee directors shall vest gradually
over a period of between three (3) to five (5) years or based on performance. The exercise price of options shall be determined in accordance with Perion’s policies, the main terms of which shall be disclosed in the annual report of Perion.
Equity-based awards may include dividend adjustment provisions.
|
12.4.
|
All other terms of the equity awards shall be in accordance with Perion’s incentive plans and other related practices and
policies. Accordingly, the Board may, following approval by the Compensation Committee, extend the period of time for which an award is to remain exercisable and make provisions with respect to the acceleration of the vesting period of any
Executive Officer’s awards, including, without limitation, in connection with a corporate transaction involving a change of control, subject to any additional approval as may be required by the Companies Law.
|
13.
|
General Guidelines for the Grant of Awards
|
13.1.
|
The equity-based compensation shall be granted from time to time and be individually determined and awarded according to the
performance, educational background, prior business experience, qualifications, role and the personal responsibilities of the Executive Officer.
|
13.2.
|
In determining the equity-based compensation granted to each Executive Officer, the Compensation Committee and Board shall
consider the factors specified in Section 13.1 above, and in any event the total fair market value of an equity-based compensation at the time of grant shall not exceed per vesting annum: (i) with respect to the CEO - 500% of his or her
annual base salary; and (ii) with respect to each of the other Executive Officers 300% of his or her annual base salary.
|
13.3.
|
The fair market value of the equity-based compensation for the Executive Officers will be determined according to acceptable
valuation practices at the time of grant.
|
14.
|
Advanced Notice Period
|
15.
|
Additional Retirement and Termination Benefits
|
16.
|
Exculpation
|
17.
|
Insurance and Indemnification
|
17.1.
|
Perion may indemnify its directors and Executive Officers to the fullest extent permitted by applicable law, for any liability
and expense that may be imposed on the director or the Executive Officer, as provided in the indemnity agreement between such individuals and Perion, all subject to applicable law and the Company’s articles of association.
|
17.2.
|
Perion will provide directors’ and officers’ liability insurance (the “Insurance Policy”) for its directors and Executive Officers as follows:
|
17.2.1.
|
Reserved;
|
17.2.2.
|
The limit of liability of the insurer shall not exceed the greater of $100 million or 30% of the Company’s shareholders equity
based on the most recent financial statements of the Company at the time of approval by the Compensation Committee; and
|
17.2.3.
|
The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the
Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering Perion’s exposures, the scope of coverage and the market conditions and that the Insurance Policy reflects the
current market conditions, and it shall not materially affect the Company’s profitability, assets or liabilities.
|
17.3.
|
Upon circumstances to be approved by the Compensation Committee (and, if required by law, by the Board), Perion shall be
entitled to enter into a “run off” Insurance Policy of up to seven (7) years, with the same insurer or any other insurance, as follows:
|
17.3.1.
|
The limit of liability of the insurer shall not exceed the greater of $100 million or 30% of the Company’s shareholders equity
based on the most recent financial statements of the Company at the time of approval by the Compensation Committee;
|
17.3.2.
|
Reserved; and
|
17.3.3.
|
The Insurance Policy, as well as the limit of liability and the premium for each extension or renewal shall be approved by the
Compensation Committee (and, if required by law, by the Board) which shall determine that the sums are reasonable considering the Company’s exposures covered under such policy, the scope of cover and the market conditions, and that the
Insurance Policy reflects the current market conditions and that it shall not materially affect the Company’s profitability, assets or liabilities.
|
17.4.
|
Perion may extend the Insurance Policy in place to include cover for liability pursuant to a future public offering of
securities as follows:
|
17.4.1.
|
Reserved; and
|
17.4.2.
|
The Insurance Policy, as well as the additional premium shall be approved by the Compensation Committee (and if required by law,
by the Board) which shall determine that the sums are reasonable considering the exposures pursuant to such public offering of securities, the scope of cover and the market conditions and that the Insurance Policy reflects the current market
conditions, and it does not materially affect the Company’s profitability, assets or liabilities.
|
18.
|
The following benefits may be granted to Perion’s Board members:
|
18.1.
|
All Perion’s non-employee Board members may be entitled to an annual cash fee of $62,500 per year (and in the case of the
chairperson of the Board, $125,000 per year).
|
18.2.
|
The compensation of the Company’s external directors, if elected, shall be in accordance with the Companies Regulations (Rules
Regarding the Compensation and Expenses of an External Director), 5760-2000, as amended by the Companies Regulations (Relief for Public Companies Traded in Stock Exchange Outside of Israel), 5760-2000, as such regulations may be amended from
time to time.
|
18.3.
|
Notwithstanding the provisions of Sections 18.1 above, in special circumstances, such as in the case of a professional director,
an expert director or a director who makes a unique contribution to the Company, such director’s compensation may be different than the compensation of all other directors and may be greater than the maximal amount allowed under Section 18.1.
|
18.4.
|
Each non-employee member of Perion’s Board may be granted with an annual equity-based compensation with a fair market value not
to exceed $200,000 per vesting annum, and in the case of the chairperson of the Board, not to exceed $270,000 (calculated at the time of grant on a linear basis). The equity-based compensation may be accelerated in the event of a change of
control and include dividend adjustment provisions.
|
18.5.
|
All other terms of the equity awards shall be in accordance with Perion’s incentive plans and other related practices and
policies. Accordingly, the Board may, following approval by the Compensation Committee, extend the period of time for which an award is to remain exercisable or make provisions with respect to the acceleration of the vesting period of any
awards, including, without limitation, in connection with a corporate transaction involving a change of control, subject to any additional approval as may be required by the Companies Law.
|
18.6.
|
In addition, members of Perion’s Board may be entitled to reimbursement of expenses in connection with the performance of their
duties.
|
19.
|
Nothing in this Policy shall be deemed to grant any of Perion’s Executive Officers or employees or any third party any right or
privilege in connection with their employment by the Company. Such rights and privileges shall be governed by the respective personal employment agreements. The Board may determine that none or only part of the payments, benefits and
perquisites detailed in this Policy shall be granted, and is authorized to cancel or suspend a compensation package or part of it.
|
20.
|
An Immaterial Change in the Terms of Employment of an Executive Officer other than the CEO may be approved by the CEO, provided
that the amended terms of employment are in accordance with this Policy. An “Immaterial Change in the Terms of Employment” means a change in the terms of employment of an Executive Officer with an annual total cost to the Company not
exceeding an amount equal to two (2) monthly base salaries of such employee.
|
21.
|
In the event that new regulations or law amendment in connection with Executive Officers’ and directors’ compensation will be
enacted following the adoption of this Policy, Perion may follow such new regulations or law amendments, even if such new regulations are in contradiction to the compensation terms set forth herein.
|
1. |
Leased Premises
|
2. |
Purpose of the Lease
|
3. |
Leasing Period
|
4. |
Sublet
|
5. |
Consideration
|
6. |
Guarantees
|
7. |
Insurance
|
Legal Name of Subsidiary
|
|
Jurisdiction of Organization
|
Codefuel Ltd.
|
Israel
|
|
IncrediMail, Inc.
|
Delaware
|
|
Intercept Interactive, Inc.
|
New York
|
|
Vidazoo Ltd.
|
Israel
|
|
Hivestack Technologies Inc.
|
Canada
|
PERION NETWORK LTD.
INSIDER TRADING COMPLIANCE POLICY
|
Effective as of September 1, 2024
|
Contents
|
Page
|
||
I. |
1
|
|
II. |
2
|
|
III. |
2
|
|
IV. |
5
|
|
V. |
7
|
|
VI. |
9
|
|
VII. |
11
|
|
VIII. |
11
|
|
12 |
I. |
Introduction and Persons Covered by this Policy
|
II. | Statement of Policies Prohibiting Insider Trading |
● |
purchases of the Company’s securities from the Company or sales of the Company’s securities to the Company;
|
● |
exercises of share options or other equity awards or the surrender of shares to the Company in payment of the exercise price or in satisfaction of any tax withholding obligations in a manner permitted by the applicable equity award
agreement, or vesting of equity-based awards that, in each case, do not involve a market sale of the Company’s securities (the “_cashless exercise_” of a Company share option
through a broker _does_ involve a market sale of the Company’s securities, and therefore would not qualify under this exception); or
|
● |
purchases or sales of the Company’s securities made pursuant to a plan adopted to comply with the Rule 10b5-1 under Securities Exchange Act of 1934, as amended (“Rule 10b5-1”)
pursuant to the policies set forth below. For more information about Rule 10b5-1 trading plans, see Section VI below.
|
III. |
Explanation of Insider Trading
|
A. |
What Information is Material?
|
B. |
What is Nonpublic?
|
C. |
Who is an Insider?
|
D. |
Trading by Persons Other Than Insiders
|
E. |
Penalties for Engaging in Insider Trading
|
● |
SEC and ISA administrative sanctions;
|
● |
securities industry self-regulatory organization sanctions;
|
● |
civil injunctions;
|
● |
damage awards to private plaintiffs;
|
● |
disgorgement of all profits;
|
● |
civil fines for the violator of up to three times the amount of profit gained or loss avoided;
|
● |
civil fines for the employer or other controlling person of a violator;
|
● |
criminal fines for individual violators; and
|
● |
jail sentences.
|
F. |
Size of Transaction and Reason for Transaction Do Not Matter
|
G. |
Presumption on Use of Material Nonpublic Information by Key Insiders
|
IV. |
Procedures to Prevent Insider Trading
|
A. |
Blackout Periods
|
B. |
Pre-Clearance of All Trades by All Officers, Directors and Certain Key Employees
|
C. |
Post-Termination Transactions
|
D. |
Termination
|
V. |
Additional Prohibited Transactions
|
A. |
Short Sales
|
B. |
Publicly Traded Options
|
C. |
Hedging Transactions
|
D. |
Purchases of the Company’s Securities on Margin; Pledging the Company’s Securities to Secure Margin or Other Loans
|
E. |
Director and Executive Officer Cashless Exercises
|
F. |
Standing Orders
|
G. |
Partnership Distributions
|
H. |
Gifts
|
VI. |
Rule 10b5-1 Trading Plans
|
● |
has been submitted to and pre-approved by the Chief Operations Officer, the Compliance Officer or Chief Financial Officer;
|
● |
includes a “Cooling Off Period” as required under Rule 10b5-1, which are as follows as of the date of adoption of this Policy:
|
o |
for directors and officers that extends to the later of 90 days after adoption or modification of a Rule 10b5-1 trading plan or two (2) business days after filing the Form 20-F or Form 6-K with financial results covering the fiscal
quarter in which the Rule 10b5-1 trading plan was adopted, up to a maximum of 120 days; and
|
o |
for employees and any other persons, other than the Company, that extends 30 days after adoption or modification of a Rule 10b5-1 trading plan;
|
● |
for directors and officers, includes a representation in the Rule 10b5-1 trading plan that the directors or officers is (1) not aware of any material nonpublic information about the Company or its securities; and (2) adopting the Rule
10b5-1 trading plan in good faith and not as part of a plan or scheme to evade Rule 10b-5;
|
● |
has been entered into in good faith at a time when the individual was not in possession of material nonpublic information about the Company and not otherwise in a blackout period, and the person who entered into the Rule 10b5-1 trading
plan has acted in good faith with respect to the Rule 10b5-1 trading plan;
|
● |
either (1) specifies the amounts, prices, and dates of all transactions under the Rule 10b5-1 trading plan; or (2) provides a written formula, algorithm, or computer program for determining the amount, price, and date of the
transactions, and (3) prohibits the individual from exercising any subsequent influence over the transactions; and
|
● |
complies with all other applicable requirements of Rule 10b5-1.
|
VII. |
Interpretation, Amendment, and Implementation of this Policy
|
VIII. |
Execution and Return of Certification of Compliance
|
1.
|
I have reviewed this annual report on Form 20-F of Perion Network Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in
all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed
under our supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being
prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period
covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
5.
|
The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s
internal control over financial reporting.
|
|
/s/ Tal Jacobson
Tal Jacobson
Chief Executive Officer
|
1.
|
I have reviewed this annual report on Form 20-F of Perion Network Ltd.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in
all material respects the financial condition, results of operations and cash flows of the Company as of, and for, the periods presented in this report;
|
4.
|
The Company’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and
procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Company and have:
|
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our
supervision, to ensure that material information relating to the Company, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be
designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
|
(c)
|
Evaluated the effectiveness of the Company’s disclosure controls and procedures and presented in this report our conclusions
about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
|
(d)
|
Disclosed in this report any change in the Company’s internal control over financial reporting that occurred during the period
covered by the annual report that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.
|
5.
|
The Company’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over
financial reporting, to the Company’s auditors and the audit committee of the Company’s board of directors (or persons performing the equivalent functions):
|
|
(a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect the Company’s ability to record, process, summarize and report financial information; and
|
|
(b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Company’s
internal control over financial reporting.
|
|
/s/ Elad Tzubery
Elad Tzubery
Chief Financial Officer
|
1.
|
The Report containing the financial statements fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
|
2.
|
Information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Issuer.
|
|
By: /s/ Tal Jacobson
Tal Jacobson
Chief Executive Officer
|
1.
|
The Report containing the financial statements fully complies with the requirements of section 13(a) or 15(d) of the
Securities Exchange Act of 1934; and
|
2.
|
Information contained in the Report fairly presents, in all material respects, the financial condition and results of
operations of the Issuer.
|
|
By: /s/ Elad Tzubery
Elad Tzubery
Chief Financial Officer
|
/S/ KOST FORER GABBAY & KASIERER
|
|
|
A member of EY Global
|
|
CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands |
Dec. 31, 2024
₪ / shares
|
Dec. 31, 2024
USD ($)
shares
|
Dec. 31, 2023
₪ / shares
|
Dec. 31, 2023
USD ($)
shares
|
---|---|---|---|---|
Supplemental Income Statement Elements [Abstract] | ||||
Accounts Receivable, Allowance for Credit Loss | $ | $ 2,538 | $ 2,091 | ||
Ordinary shares, par value per share | ₪ / shares | ₪ 0.03 | ₪ 0.03 | ||
Ordinary shares, shares authorized | 80,000,000 | 80,000,000 | ||
Ordinary shares, shares issued | 44,940,392 | 48,106,683 | ||
Ordinary shares, shares outstanding | 44,825,053 | 47,991,344 | ||
Treasury Stock, Common, Shares | 115,339 | 115,339 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
||||
Revenue | ||||||
Total Revenue | $ 498,286 | $ 743,155 | $ 640,256 | |||
Costs and Expenses | ||||||
Cost of revenue | 46,643 | 37,853 | 30,401 | |||
Traffic acquisition costs and media buy | 285,962 | 432,943 | 372,601 | |||
Research and development | 36,655 | 33,880 | 34,622 | |||
Selling and marketing | 68,497 | 59,341 | 57,449 | |||
General and administrative | 38,697 | 32,062 | 27,745 | [1] | ||
Change in fair value of contingent consideration | 1,541 | 18,694 | (3,816) | [1] | ||
Depreciation and amortization | 16,434 | 14,092 | 13,838 | |||
Restructuring costs and other charges | 6,895 | 0 | 0 | |||
Total Costs and Expenses | 501,324 | 628,865 | 532,840 | |||
Income (loss) from Operations | (3,038) | 114,290 | 107,416 | |||
Financial income, net | 18,520 | 20,951 | 4,502 | |||
Income before Taxes on Income | 15,482 | 135,241 | 111,918 | |||
Taxes on income | 2,868 | 20,278 | 14,439 | |||
Net Income | $ 12,614 | $ 114,963 | $ 97,479 | |||
Net Earnings per Share - Basic: | $ 0.27 | $ 2.44 | $ 2.17 | |||
Net Earnings per Share - Diluted: | $ 0.25 | $ 2.3 | $ 2.03 | |||
Weighted average number of shares – Basic: | 47,281,588 | 47,128,232 | 44,871,149 | |||
Weighted average number of shares – Diluted: | 49,555,777 | 50,073,985 | 48,071,638 | |||
Advertising Solutions [Member] | ||||||
Revenue | ||||||
Total Revenue | $ 335,550 | $ 398,244 | $ 360,690 | |||
Search Advertising [Member] | ||||||
Revenue | ||||||
Total Revenue | $ 162,736 | $ 344,911 | $ 279,566 | |||
|
CONSOLIDATED STATEMENTS OF INCOME (Paranthetical) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2022
USD ($)
| |
General and Administrative Expense [Member] | |
Reclassification Earnout Liability | $ 3,816 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 12,614 | $ 114,963 | $ 97,479 |
Other comprehensive income (loss), net of tax: | |||
Change in foreign currency translation | (197) | 154 | (147) |
Changes in unrealized gain (loss) on marketable securities | 164 | (101) | 0 |
Cash Flow Hedge: | |||
Changes in unrealized gain (loss) | 151 | (787) | (1,255) |
Gain (loss) reclassified into net income | (250) | 1,233 | 948 |
Net change | (99) | 446 | (307) |
Total Other comprehensive income (loss), net of tax: | (132) | 499 | (454) |
Comprehensive income | $ 12,482 | $ 115,462 | $ 97,025 |
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands |
Common shares [Member] |
Additional paid-in capital [Member] |
Accumulated Other Comprehensive income (loss) [Member] |
Retained earnings (Accumulated deficit) [Member] |
Treasury shares [Member] |
Total |
---|---|---|---|---|---|---|
Balance as of at Dec. 31, 2021 | $ 375 | $ 496,154 | $ 128 | $ (28,439) | $ (1,002) | $ 466,960 |
Balance as of (shares) at Dec. 31, 2021 | 43,696,723 | |||||
Stock-based compensation | $ 0 | 13,316 | 0 | 0 | 0 | 13,316 |
Exercise of stock-based compensation | $ 23 | 5,810 | 0 | 0 | 0 | 5,833 |
Exercise of stock-based compensation (shares) | 2,475,670 | |||||
Other comprehensive income | $ 0 | 0 | (454) | 0 | 0 | (454) |
Net income | 0 | 0 | 0 | 97,479 | 0 | 97,479 |
Balance as of at Dec. 31, 2022 | $ 398 | 515,280 | (582) | 69,040 | (1,002) | 583,134 |
Balance as of (shares) at Dec. 31, 2022 | 46,172,393 | |||||
Stock-based compensation | $ 0 | 17,118 | 0 | 0 | 0 | 17,118 |
Exercise of stock-based compensation | $ 15 | 2,418 | 0 | 0 | 0 | 2,433 |
Exercise of stock-based compensation (shares) | 1,818,951 | |||||
Other comprehensive income | $ 0 | 0 | 499 | 0 | 0 | 499 |
Net income | 0 | 0 | 0 | 114,963 | 0 | 114,963 |
Balance as of at Dec. 31, 2023 | $ 413 | 534,816 | (83) | 184,003 | (1,002) | $ 718,147 |
Balance as of (shares) at Dec. 31, 2023 | 47,991,344 | 47,991,344 | ||||
Issuance of shares related to acquisitions - Vidazoo | $ 3 | 10,548 | 0 | 0 | 0 | $ 10,551 |
Repurchase of shares for retirement | $ (38) | (46,882) | 0 | 0 | (46,920) | |
Repurchase of shares for retirement (Shares) | (5,200,000) | |||||
Stock-based compensation | $ 0 | 28,133 | 0 | 0 | 0 | 28,133 |
Exercise of stock options and vesting of restricted stock units | $ 13 | 534 | 0 | 0 | 0 | 547 |
Exercise of stock options and vesting of restricted stock units (Shares) | 2,033,709 | |||||
Exercise of stock-based compensation | 0 | |||||
Other comprehensive income | $ 0 | 0 | (132) | 0 | (132) | |
Net income | 0 | 0 | 0 | 12,614 | 0 | 12,614 |
Balance as of at Dec. 31, 2024 | $ 391 | $ 527,149 | $ (215) | $ 196,617 | $ (1,002) | $ 722,940 |
Balance as of (shares) at Dec. 31, 2024 | 44,825,053 | 44,825,053 |
GENERAL |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 | |||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
GENERAL |
Perion
Network Ltd. ("Perion") and its wholly-owned subsidiaries (collectively referred to as the "Company"), is a global multi-channel advertising
technology company that connects advertisers with consumers through technology across all major channels of digital advertising, including
display, Connected TV (CTV), Open Web, Digital Out of Home (DOOH), search, social and digital audio. |
SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SIGNIFICANT ACCOUNTING POLICIES |
NOTE
2: SIGNIFICANT ACCOUNTING POLICIES
Basis
of consolidation
The
consolidated financial statements include the accounts of Perion and its wholly owned subsidiaries. All intercompany balances and transactions
have been eliminated. Use
of estimates
The
preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”)
requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements
and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company's management
evaluates its estimates, including those related to revenue recognition, allowance for credit losses, fair value of intangible assets
and goodwill, useful lives of intangible assets, contingent consideration, fair value of share-based awards, realizability of deferred
tax assets, and tax uncertainties. Such estimates are based on historical experience and on various other assumptions that are believed
to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and
liabilities. Segments
The
Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial
information is regularly evaluated by the Company’s chief operating decision maker ("CODM"), in deciding how to allocate resources
and assess performance. The Company’s CODM is the chief executive officer.
The
CODM utilizes consolidated GAAP measure of profit and loss to evaluate the Company's overall performance and inform resource allocation
to support strategic priorities and capital allocation needs. The profit and loss measure most consistent with GAAP used by the CODM is
consolidated net income.
There
is no expense or asset information, that are supplemental to those disclosed in these consolidated financial statements, that are regularly
provided to the CODM. Since the Company operates as one operating segment, financial segment information, including profit or loss and
asset information, can be found in the consolidated financial statements.
Financial
statements in U.S. dollars
The
reporting currency of the Company is the U.S. dollar (“USD”). Major parts of the Company’s operations are carried out
by the Company and its subsidiaries in the United States and Israel. The functional currency of these entities is the USD. Accordingly,
monetary accounts maintained in currencies other than the USD are remeasured into USD, in accordance with ASC 830, Foreign
Currency Matters. All transaction gains and losses resulting from the re-measurement of the monetary balance sheet items are reflected
in the statements of income as financial income or expenses, as appropriate.
Management
believes that the USD is the currency of the primary economic environment in which the Company operates. The financial statements of other
subsidiaries, whose functional currency is determined to be their local currency, have been translated into USD. All balance sheet accounts
have been translated using the exchange rates in effect at the balance sheet date. Statement of Income amounts have been translated using
the average exchange rate for each applicable quarter. The resulting translation adjustments are reported as an accumulated other comprehensive
income (loss) component of shareholders' equity. Cash
and cash equivalents and short-term bank deposits
The
Company considers all short-term, highly liquid and unrestricted cash balances, with stated maturities of three months or less from date
of purchase, as cash equivalents. Short-term deposits are bank deposits with maturities of more than three months but less than one year at
the date acquired. The short-term deposits as of December 31, 2024 and 2023 are denominated primarily in USD and bear interest at an average
annual rate of 5.84%
and 6.67%,
respectively. Restricted
cash
Restricted
cash is comprised primarily of security deposits that are held to secure the Company’s lease obligations. Marketable
Securities
Marketable
securities consist of debt securities. The Company classifies its marketable securities as available-for-sale at the time of purchase
and reevaluates such classification at each balance sheet date. Available-for-sale securities are stated at fair value, with unrealized
gains and losses reported in accumulated other comprehensive income (loss), a separate component of shareholders’ equity, net of
taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in
Financial income (expense), net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of
discount to maturity, both of which, together with interest, are included in Financial income (expense), net. The Company may sell these
securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its
marketable securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets.
The
Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security
exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required
to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security
to its fair value and records the impairment charge in the consolidated statements of income. If neither of these criteria are met, the
Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating
agency, any adverse conditions specifically related to the security, as well as other factors. Any remaining unrealized losses, net of
taxes, are included in accumulated other comprehensive income (loss) in shareholders’ equity.
Allowance
for credit losses on available-for-sale marketable securities are recognized in the Company’s consolidated statements of income,
and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in shareholders’
equity.
The
Company did not recognize an allowance for credit losses on marketable securities for the period ended December 31, 2024 and 2023.
Accounts
receivable and allowance for credit losses
Accounts
receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for
credit losses. The Company evaluates its outstanding accounts receivable and establishes an allowance for credit losses based on information
available on their credit condition, current aging, historical experience and future economic and market conditions. These allowances
are reevaluated and adjusted periodically as additional information is available.
The
following table sets forth a summary of the changes in the fair value of the contingent consideration:
Property
and equipment
Property
and equipment are stated at cost, net of accumulated depreciation and impairment. Depreciation is calculated using the straight-line method
over the estimated useful lives of the assets at the following annual rates:
Leasehold
improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the improvements,
whichever is shorter. Leases
The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and short-term and long-term operating lease liabilities in the Company’s consolidated balance sheets.
ROU
assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value
of lease payments over the lease term.
The
Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the
lease payments at commencement date. The operating lease ROU asset also includes any lease payments made prior to commencement and
lease incentives. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it
is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain
that the Company will not exercise the option. Lease expenses for lease payments are recognized on a straight-line basis over the lease
term.
The
Company elected the practical expedient allowing not to separate the lease and non-lease components for its leases. For short-term leases
with a term of 12 months or less, operating
lease
ROU assets and liabilities are not recognized and the Company records lease payments on a straight-line basis over the lease term.
Intangible
assets
Intangible
assets that are not considered to have finite useful life are amortized over their estimated useful lives. The Customer Relationship is
amortized over its estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated
amortization of such intangible asset as compared to the straight-line method.
All
other intangible assets are amortized over their estimated useful lives using the straight-line method.
Impairment
of long-lived assets, including Right-of-use assets and intangible assets subject to amortization
The
Company’s long-lived assets (assets group) to be held or used, including property and equipment, right of use assets and intangible
assets subject to amortization are reviewed for impairment in accordance with ASC 360, Accounting for
the Impairment or Disposal of Long-Lived Assets, whenever events or changes in circumstances indicate that the carrying value of
an asset may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts of the asset (assets
group) to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be impaired,
the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value.
In
determining the fair values of long-lived assets for the purpose of measuring impairment, the Company's assumptions include those that
market participants will consider in valuations of similar assets.
There
were no impairment charges to long-lived assets during the periods presented. Goodwill
Goodwill
reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but
instead is tested for impairment, in accordance with ASC 350, Intangibles – Goodwill and Other,
at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate
that the carrying value may be impaired. Any excess of the carrying amount of the reporting unit over its fair value is recognized as
an impairment loss, and the carrying value of goodwill is written down to fair value. There were no impairment losses to goodwill
during the periods presented.
Refer to Note 8 for further information. Business
combinations
The
Company accounted for business combination in accordance with ASC 805, Business Combinations (“ASC
805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition
date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated
to goodwill. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments
to the assets acquired and liabilities assumed, with a corresponding offset to goodwill only for adjustments resulting from facts and
circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated
statements of income.
Acquisition
related costs are expensed to the statement of income in the period incurred.
Revenue
recognition
The
Company applies the provisions of ASC 606, Revenue from Contracts with Customers.
The
Company applies the practical expedient for incremental costs of obtaining contracts when the amortization period is less than one year.
The
Company generates revenue primarily from two major sources:
Advertising
Solutions Revenue - The company generates revenue from Advertising Solutions by delivering high-impact and standard ad formats
across different channels including standard and high-impact display, social, CTV, digital audio and DOOH. In addition, the Company also
generates revenue by delivering Web Publishers and DOOH Media Owners Solutions, such as Ad Server, SSP and Header Bidder. The company’s
diverse, technology-focused multi-channel set of solutions is designed to drive consumer engagement and high ROI for advertisers through
high-impact ad formats. The company’s solutions also include a content monetization platform that provides publishers with monetization
tools across different channels, and a social platform that supports campaign management and media buying capabilities across all major
social channels.
Search
Advertising Revenue - The company generates Search Advertising revenue from service agreements with search partners. Search Advertising
revenue is generated primarily from monthly transaction volume-based fees earned by the company for making applications available to online
publishers and app developers on a revenue share basis relative to the revenue generated by such search partners.
Revenues
are recognized upon successful delivery of advertisements typically measured by impressions, clicks, or actions.
For
more disaggregated information of revenue refer to Note 18.
The
Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence
of a significant financing component. The Company’s payments terms are less than one year. Therefore, no finance component is recognized.
The
Company evaluates whether Advertising Solutions Revenue and Search Advertising Revenue should be presented on a gross basis, which is
the amount that a customer pays for the service, or on a net basis, which is the amount of the customer payment less amounts the Company
pays to publishers. In making that evaluation, the Company considers whether it controls the promised good or service before transferring
that good or service to the customer. The Company considers indicators such as whether the Company is the primary obligor in the arrangement
and assumes risks and rewards as a principal or an agent, whether it changes the products or performs part of the service, whether the
Company has discretion in establishing prices and whether it controls the underlying advertising space. The evaluation of these factors
is subject to significant judgment and subjectivity, and is based on management assessment of whether the Company is acting as the principal
or an agent in the transaction.
The Company has determined that in certain arrangements it acts as principal because the Company controls the specified good or service before it is transferred to a customer, as such revenue is recorded on a gross basis, while in others it does not and revenue is recorded on a net basis.
Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities.
Generally,
in cases in which the Company controls the specified good or service before it is transferred to a customer, revenue is recorded on a
gross basis.
Contract
balances are presented separately on the consolidated balance sheets as either Accounts receivable or Deferred revenue.
Remaining performance obligations (RPOs) represent amounts collected on contracted revenue that have not yet been recognized. As of December 31, 2024 and 2023, the aggregate amount of the RPOs was $2,049 and $2,297, respectively. The Company anticipates that it will satisfy all its remaining performance obligations associated with the deferred revenue within the prospective fiscal year. Accounts
receivable include amounts billed and currently due from customers as well as amounts allowed to be billed according to contractual billing
terms with customers.
Revenue
recognized during 2024, 2023 and 2022 from amounts included within the Deferred revenue balance at the beginning of the period amounted
to $2,297,
$2,377
and $3,852,
respectively. Cost
of revenue
Cost
of revenue consists primarily of expenses associated with the operation of the Company’s server hosting, data verification and targeting,
campaign creative, labor and customer support. Traffic
acquisition costs and media buy
Traffic
acquisition costs and media buy consist primarily of payments to publishers and developers who distribute the Company’s search properties
together with their products, as well as the cost of distributing the Company own products. In addition, media buy costs consist of the
costs of advertising inventory incurred to deliver ads. Traffic acquisition costs are primarily based on revenue share agreements with
the Company traffic sources and the media buy cost are primarily based on CPC (Cost-per-click) and CPM (Cost-per-mile), which are charged
as incurred. Research
and development costs
Research
and development costs are charged to the statement of income as incurred. Income
taxes
The
Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”).
ASC 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on
differences between financial reporting and tax bases of 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. To the extent necessary, the Company provides a valuation allowance
to reduce deferred tax assets to their estimated realizable value.
The
Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach for recognizing and measuring
uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if
the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including
resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is
more than 50% likely to be realized upon ultimate settlement. Severance
pay
The
Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law, 1963 (“Section 14”),
where the Company's contributions for severance pay is paid to the employee upon termination instead of the severance liability that would
otherwise be payable under the law as aforementioned. Upon contribution to a fund, based on the full amount of the employee's monthly
salary, and release of the fund to the employee, no additional severance payments are required to be made by the Company to the employee.
Therefore, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company
is legally released from obligation to such employees once the deposit amounts have been paid.
Severance
expenses for the years ended December 31, 2024, 2023 and 2022 amounted to $2,583,
$3,206,
and $2,809,
respectively. The balances of severance deposits and accrued severance pay are immaterial and included in other assets and other long-term
liabilities on the accompanying balance sheets, respectively. Employee
benefit plan
The
Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement
under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings,
up to the Internal Revenue Service’s annual contribution limit. The Company matches up to 100% of each participant’s contributions,
up to 4% of employee deferral. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated
statement of income.
Total
employer 401(k) contributions for the years ended December 31, 2024, 2023 and 2022 were $1,116,
$1,006,
and $865,
respectively. Comprehensive
income (loss)
The
Company accounts for comprehensive income (loss) in accordance with ASC 220, Comprehensive Income.
This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general
purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those
resulting from investments by, or distributions to, shareholders. The Company determined that its other comprehensive income (loss) relates
to hedging derivative instruments, unrealized gain (loss) on marketable securities and foreign currency translation adjustments.
Net
earnings per share
In
accordance with ASC 260, Earnings Per Share, basic net earnings per share ("Basic EPS") is computed
by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the
period. Diluted net earnings per share ("Diluted EPS") reflects the potential dilution that could occur if share options, restricted shares
and other commitments to issue ordinary shares were exercised or equity awards vested, resulting in the issuance of ordinary shares that
could share in the net earnings of the Company. Concentrations
of credit risk
Financial
instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents,
bank deposits, restricted cash and accounts receivable. The
majority of the Company’s cash and cash equivalents, bank deposits and restricted cash are invested in USD instruments with major
banks in the U.S. and Israel. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk.
The
Company’s major customers are financially sound, and the Company believes low credit risk is associated with these customers. To
date, the Company has not experienced any material credit losses.
The
allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based
on the Company’s methodology. The Company’s methodology is based on historical collection experience, customer creditworthiness,
current and future economic condition, and market condition. Additionally, specific allowance amounts are established to record the appropriate
provision for customers that have a higher probability of default. Trade receivables are written off after all reasonable means to collect
the full amount have been exhausted. 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, contractors, and directors. ASC 718 requires companies to estimate the fair value of equity-based
awards on the date of grant, using an option-pricing model. The value of the portion of the award that is ultimately expected to vest
is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. The Company estimates
forfeitures at the time of grant, and revised if necessary in subsequent periods, if actual forfeitures differ from those estimates.
The
Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the
straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are
based on actual historical pre-vesting forfeitures. For performance-based share units, the Company recognizes compensation expenses for
the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on
the accelerated attribution method over the requisite service period. The Company reassess the probability of vesting at each reporting
period for awards with performance conditions and adjust compensation cost based on its probability assessment.
The
Company accounts for changes in award terms as a modification in accordance with ASC 718.
The
Company estimates the fair value of its options using the Binomial option-pricing model.
Since
2022 only restricted share units (“RSUs”) were granted and the fair value is based on the market value of the underlying shares
on the date of grant.
For
options, the expected volatility is calculated based on the actual historical share price movements of the Company’s share. The
expected option term represents the period that the Company’s share options are expected to be outstanding. The risk-free interest
rate is based on the yield from U.S. Treasury zero-coupon bonds, with a term which is equivalent to the expected term of the share-based
awards. Derivative
instruments
The
Company follows the requirements of ASC 815, Derivatives and Hedging (“ASC 815”), which
requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value.
The accounting for changes in fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and
qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are
designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged,
as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Changes
in the fair value of these derivatives are recorded in accumulated other comprehensive income in the consolidated balance sheets, until
the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same
financial statement line item in the consolidated statements of income to which the derivative relates. In
order to mitigate the potential adverse impact on cash flows resulting from fluctuations in the exchange rate of the new Israeli shekels
(“ILS”), the Company hedges portions of its forecasted expenses denominated in ILS with SWAP, forward and options contracts.
The Company does not speculate in these hedging instruments in order to profit from foreign currency exchanges, nor does it enter into
trades for which there are no underlying exposures.
To
protect against the increase in value of forecasted foreign currency cash flow resulting mainly from salaries and related benefits paid
in ILS during the year, the Company hedges portions of its anticipated payroll denominated in ILS for a period of one to twelve months
with SWAP, forward and options contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the ILS,
the decline in present value of future ILS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely,
when the USD weakens, the increase in the present value of future ILS expenses is offset by gains in the fair value of the Hedging Contracts.
These Hedging Contracts are designated as cash flow hedges. The
notional value of the Company’s derivative instruments designed as hedging instruments as of December 31, 2024 and 2023, amounted
to $4,971
and $6,006,
respectively.
The
notional value of the Company’s derivative instruments not designed as hedging instruments as of December 31, 2024 and 2023, amounted
to $0.
Notional values in USD are translated and calculated based on the spot rates for options and SWAP. Gross notional amounts do not quantify
risk or represent assets or liabilities of the Company; however, they are used in the calculation of settlements under the contracts.
Fair
value of financial instruments
The
carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash,
accounts receivable, and other assets, accounts payable, accrued expenses and other liabilities approximate their fair value due to the
short-term maturities of such instruments.
The
Company follows the provisions of ASC No. 820, Fair Value Measurement (“ASC 820”),
which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
In
determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable
inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based
on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants
would use in pricing an asset or liability, based on the best information available under given circumstances.
Three
levels of inputs may be used to measure fair value, as follows:
The
Company measures its marketable securities (money market funds and available-for-sale marketable securities), foreign currency derivative
instruments and contingent considerations in connection to the acquisitions at fair value. Marketable securities are classified within
Level 1 or Level 2 of the fair value hierarchy because their fair value is derived from quoted market prices or alternative pricing sources
and models utilizing observable market inputs. Derivative instruments are classified within Level 2 as the valuation inputs are based
on quoted prices and market observable data of similar instruments. The Company's contingent considerations in connection to the acquisitions
were classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported
by market activity. Repurchase
of shares
In
prior years, the Company repurchased its ordinary shares on the open market and holds these shares as treasury shares , with
their acquisition cost presented as a reduction of shareholders' equity.
In
2024, the Company initiated a new share repurchase program authorized by the Board of Directors, under which repurchased ordinary shares
are immediately retired upon repurchase. Upon retirement, the par value of the repurchased shares is deducted from ordinary share capital,
and the excess of the repurchase price over the par value is recorded as a reduction of Additional Paid-in Capital. See Note 13, “Share
repurchase,” for further details.
Prior-period
financial statements correction of immaterial errors:
With
respect to the year ended December 31, 2024, the Company recorded a correction of prior-period errors related to the share-based compensation
expenses. The Company assessed the materiality of these errors on the financial statements for prior periods in accordance with the SEC
Staff Accounting Bulletin (SAB) No. 99, Materiality, codified in ASC 250, Presentation
of Financial Statements, and concluded that they were not material to prior years presented. However, the Company determined
that the impact of the misstatement to its financial statements for the year ended December 31, 2024 was material. In accordance with
ASC 250, the Company has corrected the misstatement for the years ended December 31, 2023 and December 31, 2022 by revising the consolidated
financial statements appearing herein. The impact of the errors on the Company’s consolidated balance sheet as of December 31, 2023
and 2022 was an understatement of additional paid-in capital of $2,450 and
$1,746,
respectively, resulted in an overstatement of retained earnings of $2,450
and $1,746,
respectively. The
following tables summarize the effects of the corrections on the Company’s consolidated statements of comprehensive loss for the
years ended December 31, 2023 and 2022:
Recently
Adopted Accounting Pronouncements:
In
November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”
(“ASU 2023-07”). Additional segment reporting information required by ASU 2023-07 includes: disclosing the title and position
of the individual or the name of the group or committee identified as the CODM, provide in interim periods all disclosures about a reportable
segment’s profit or loss and assets that are currently required annually, and additional disclosures regarding significant segment
expenses. Effective December 31, 2024, the Company has adopted this standard retroactively. The adoption of this ASU affects only disclosures,
with no impacts to the Company's financial condition and results of operations.
Recently
issued Accounting Pronouncements not yet adopted
In
December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which expands
the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. This ASU is effective
for the fiscal years beginning after December 15, 2024. Early adoption permitted. The Company is currently evaluating the impact
of this guidance on its consolidated financial statements and related disclosures.
In
November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation
Disclosures (Subtopic 220-40): Disaggregation of Income (loss) Statement Expenses" (“ASU 2024-03”). ASU 2024-03 requires disaggregation
of certain costs and expenses included in each relevant expense caption on the Company's consolidated income (loss) statements in a separate
note to the financial statements at each interim and annual reporting period, including amounts of purchases of inventory, employee compensation,
depreciation, and intangible asset amortization. ASU 2024-04 is effective fiscal years beginning after December 15, 2026, and interim
reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently
evaluating the impact of adopting ASU 2024-03. |
MARKETABLE SECURITIES |
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MARKETABLE SECURITIES |
NOTE
3: MARKETABLE SECURITIES
The
following is a summary of available-for-sale marketable securities by investment categories and contractual maturities as of December
31, 2024:
For
the year ended December 31, 2024, the unrealized losses related to marketable securities were as a result of market fluctuations and not
due to credit related losses, therefore, the Company did not record an allowance for credit losses for its available-for-sale marketable
securities.
The
following is a summary of available-for-sale marketable securities by investment categories and contractual maturities as of December
31, 2023:
Investments
with continuous unrealized losses for less than 12 months and 12 months or greater and their related fair values were as follows:
As
of December 31, 2023, the Company had no investments with unrealized loss for more than 12 months. |
FAIR VALUE OF FINANCIAL INSTRUMENTS |
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FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS |
The
following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:
The following table presents financial assets measured at fair value on a recurring basis as of December 31, 2023:
The
following table sets forth a summary of the changes in the fair value of the contingent consideration:
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ACQUISITIONS |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACQUISITIONS |
On
January 14, 2020, the Company consummated the acquisition of Content IQ LLC (“Content IQ”), a privately held company founded
in 2014, based in New York City. Content IQ has created data algorithm and analytics tools that deconstruct content, revenue and
distribution to solve current major digital publishing challenges.
The
total consideration for the acquisition was $37,838,
comprised of $15,000
paid in cash at closing and a contingent consideration (with a maximum amount of up to $47,050),
tied to revenue and EBITDA-based metrics over a period of two
years, estimated at fair value of $22,838
on the acquisition date. In addition, the acquisition includes a retention-based component of up to $11,000.
As
of December 31, 2024, the remaining balance of the contingent consideration was settled. In 2022, 2023 and 2024 the change in fair value
of the contingent consideration that was recorded as income in the statement of income was $0,
$0
and $1,541,
respectively.
The
total consideration for the acquisition was $13,399,
comprised of $4,000
paid in cash at closing and a contingent consideration (with a maximum amount of up to $17,000),
tied to financial targets over a two-year
period, estimated at fair value of $9,399
on the acquisition date. In addition, the acquisition includes a retention-based component of up to $1,000.
As of December 31, 2022, the remaining balance of the contingent consideration was settled. In 2022 the change in fair value of the contingent
consideration that was recorded as income in the statement of income was $3,816.
On
October 4, 2021, the Company consummated the acquisition of Vidazoo Ltd., also known as “Vidazoo” (the “Vidazoo Acquisition”),
a leading video technology company that enables both advertisers and publishers to deliver high impact content and advertising to consumers.
The
total consideration for the acquisition was $90,038,
comprised of $35,000
paid in cash at closing, contingent consideration (with a maximum amount of up to $58,545),
tied to financial targets over a period of 2.25
years, estimated at fair value of $48,903
on the acquisition date, and a net working capital in the amount of $6,135
which will be set-off against collection.
On
June 14, 2023, the Company entered into an amendment to the SPA with Vidazoo’s sellers in connection with an additional overachievement
earnout consideration in an aggregate amount of up to $10,550
payable in the Company’s ordinary shares.
As
of December 31, 2023, Vidazoos’ sellers had met the specified earnout targets, and the Company recognized an expense of $10,550
under 'Changes in fair value of contingent consideration' in the consolidated statements of income.
As
of December 31, 2024, the remaining balance of the contingent consideration was settled.
On
December 11, 2023, the Company consummated the acquisition of Hivestack Inc. (“Hivestack”), a global innovative full-stack
programmatic Digital out of Home (DOOH) company.
The
total consideration for the acquisition was $106,931,
comprised of $100,000
paid in cash at closing and a net working capital in the amount of $6,931
subject to working capital adjustments. In
addition, the acquisition includes a contingent consideration payment of up to $25,000,
tie to financial target and service of a period of 3 years to be settled in cash and in the Company’s ordinary shares.
The
following table summarizes the allocation of the purchase price consideration as of the acquisition date and the adjustment included in
the measurement period for the transaction noted above:
1 Includes
cash in the amount of $5,010.
The
initially reported amounts presented in the table above pertained to the preliminary purchase price allocation reported in the Company's
2023 financial statements. The measurement period adjustment was associated with the Goodwill and Net Assets. Goodwill is primarily attributable to expected synergies arising from technology integration and expanded product availability to the Company’s existing and new customers.
Technology includes an
array of purpose-built software like the DOOH Ad Server, Header Bidder, Supply-Side Platform (“SSP”), and Demand-Side Platform
(“DSP”), designed to manage, deliver, and optimize targeted advertising on digital screens, enhancing yield and sourcing demand
efficiently. The technology is amortized over the estimated useful life of 8
years using the straight-line method. Customer
relationship is derived from customer contracts and related customer relationships with existing customers. Customer relationship
is amortized based on the accelerated method over the estimated useful life of 15
years. Tradename is
derived from developed products tradenames, common law tradenames, service marks, service names, brand names, trade dress rights, logos,
internet domain name and URL addresses and general-use e-mail addresses. Tradename is amortized over the estimated useful life of 10
years using the straight-line method.
The
results of operations of Hivestack have been included in the consolidated financial statements since the date of the acquisition.
The
Company incurred acquisition related costs of $3,061
during the year ended December 31, 2023, which were included in general and administrative expenses in the consolidated statements of
income.
Pro
forma results of operations related to this acquisition have not been presented because they are not material to the Company’s consolidated
statements of income. |
RESTRUCTURING COSTS AND OTHER CHARGES |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING COSTS AND OTHER CHARGES |
NOTE
6: RESTRUCTURING COSTS AND OTHER CHARGES
During
2024 the company carried out a restructuring plan to adjust its operations and increase efficiency.
Restructuring
costs for the year ended December 31, 2024 were as follows:
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PROPERTY AND EQUIPMENT, NET |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT, NET |
Depreciation
expenses related to the Company’s property and equipment totaled to $2,070,
$1,644
and $1,954,
for the years ended December 31, 2024, 2023 and 2022, respectively. |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets, net [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND OTHER INTANGIBLE ASSETS, NET |
The
changes in the net carrying amount of goodwill in 2024 and 2023 were as follows:
Goodwill
has been recorded as a result of prior acquisitions and represents excess of consideration over the net fair value of the assets of the
businesses acquired. As of December 31, 2024, the Company has two reporting units - Advertising Solutions and Search advertising. The
Company performs tests for impairment of goodwill at the reporting unit level at least annually, or more frequently if events or changes
in circumstances occur that would more likely than not reduce the fair value of a reporting unit below its carrying value.
During 2024, the Company experienced a significant decline in its stock price. In response, and as part of the Company’s annual impairment test, the Company performed a quantitative goodwill impairment test as of December 31, 2024, which indicated that the fair value of each reporting unit exceeded its carrying amount, and therefore, no impairment loss was recorded. The company used the income approach to measure the fair value of the reporting units. The significant assumptions used in the model mainly relate to the projected revenues and operating income in the forecasted years.
No goodwill impairment was incurred for the years ended December 31, 2024, 2023 and 2022.
The
following is a summary of intangible assets as of December 31, 2024:
The following is a summary of intangible assets as of December 31, 2023:
The
estimated useful life of the intangible assets are as follows:
Amortization
of intangible assets, net, in each of the succeeding five years and thereafter is estimated as follows:
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ACCRUED EXPENSES AND OTHER LIABILITIES |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER LIABILITIES |
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DERIVATIVES AND HEDGING ACTIVITIES |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DERIVATIVES AND HEDGING ACTIVITIES |
The
fair value of the Company’s outstanding derivative instruments is as follows:
The
net amounts reclassified from accumulated other comprehensive loss to the operating expenses are as follows:
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LEASES |
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
In
January 2014, the Company entered into a lease agreement for new corporate offices in Holon, Israel. The lease expires in , with an option by the Company to extend for two additional terms of 24
months each. In 2024, The Company decided not to extend the lease beyond its original expiration date in January 2025. The Company subleased
part of the office to three different sub-tenants.
In
May 2024, the Company entered into a lease agreement for new corporate offices in Tel Aviv, Israel. The lease expires in September 2034,
including an option by the Company to extend for two additional terms of 36 and 24 months.
In
June 2018, a US subsidiary entered into a lease agreement for its office at World Trade Center (WTC) New York. The lease expires in May
2026. The Company subleases the office to a sub-tenant which led to a decrease of $344
in 2022 on the value of its ROU asset. The decrease in ROU asset was recognized in the depreciation expenses.
In
October 2022, a US subsidiary entered into an additional lease agreement for its office at World Trade Center (WTC) New York. The lease
expires in December 2025.
Hivestack
entered into a lease agreement for its office in Montreal, Canada. The lease expires in September 2025.
Certain
other facilities of the Company are rented under operating lease agreements, which expire on various dates, the latest of which is in
2025. The Company recognizes rent expense under such arrangements on a straight-line basis.
The
following table represents the weighted-average remaining lease term and discount rate:
The
discount rate was determined based on the estimated collateralized borrowing rate of the Company, adjusted to the specific lease term
and location of each lease.
Maturities
of operating lease liabilities were as follows:
*)
Total lease payments are not offset by $5,318
of expected non-cancelable future sublease payments.
Facilities
leasing expenses, net in the years 2024, 2023 and 2022 were $3,879,
$1,993,
and $2,846
respectively. Out of which, Sublease income amounted to $3,732,
$3,598
and $2,533
in the years 2024, 2023 and 2022, respectively. Variable lease cost in the years 2024, 2023 and 2022 were $451,
$272
and $224,
respectively.
Cash
paid for amounts included in measurement of lease liabilities during the years ended 2024, 2023 and 2022 were $8,287,
$6,191,
and $5,880,
respectively. |
COMMITMENTS AND CONTINGENCIES |
12 Months Ended |
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Dec. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES |
NOTE
12: COMMITMENTS AND CONTINGENCIES
On
April 16, 2024, a purported shareholder of the Company, filed a putative class action complaint, alleging violations of U.S. federal securities
laws against, the Company and certain of its current and former officers, in the United States District Court for the Southern District
of New York (the “SDNY Action”). The SDNY Action asserts claims under the Exchange Act that the defendants materially
misrepresented and/or omitted facts in various public disclosures concerning the Company’s search advertising business and its partnership
with Microsoft Bing. The lead plaintiffs appointed by the court, filed an amended complaint against the aforementioned defendants and
one additional defendant,. On November 4, 2024, the Company filed a motion to dismiss the amended compliant, which is now fully briefed.
The Company disputes the allegations of wrongdoing and intends to continue to vigorously defend against them.
On
April 11, 2024, a purported shareholder, filed a motion to certify a class action with the Financial Department of the District Court
of Tel Aviv (the “DCTA”) against the above mentioned defendants. On August 8, 2024, the Company and the plaintiff filed a
mutual motion with the DCTA requesting to stay the proceedings in DCTA until final adjudication of the SDNY Action. DCTA upheld the motion.
|
SHAREHOLDERS' EQUITY |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity Note [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHAREHOLDERS' EQUITY |
NOTE 13: SHAREHOLDERS'
EQUITY
The
following table summarizes the activities for the Company’s service-based share options and RSUs for the year ended December 31,
2024:
The
weighted-average grant-date fair value of options and RSUs granted during the years ended December 31, 2024, 2023 and 2022 was $10.83,
$35.65,
and $20.13,
respectively. Total fair value of options and RSUs, as their respective vesting dates, during the years ended December 31, 2024, 2023
and 2022 was $19,798,
$11,531,
and $10,008,
respectively.
The
aggregate intrinsic value of the outstanding service-based equity grants at December 31, 2024, represents the intrinsic value of all outstanding
options and RSUs since they were all in-the-money as of such date.
The
following table summarizes the activities for the Company’s performance-based RSUs for the year ended December 31, 2024:
The
weighted-average grant-date fair value of options and RSUs granted during the year ended December 31, 2024, 2023 and 2022 was $8.60,
$34.18
and $20.58,
respectively. The total fair value of options and RSUs, as their respective vesting dates, during the years ended December 31, 2024, 2023
and 2022 was $3,032,
$2,506,
and $2,434,
respectively.
The
aggregate intrinsic value of the outstanding performance-based equity grants at December 31, 2024, represents the intrinsic value of all
outstanding options and RSUs since they were all in-the-money as of such date.
The
number of service-based and performance-based options and RSUs expected to vest reflects an estimated forfeiture rate.
The
following table summarizes additional information regarding outstanding and exercisable service-based options and RSUs under the Company's
Equity Incentive Plan as of December 31, 2024:
The
following table summarizes additional information regarding outstanding and exercisable performance-based RSUs under the Company's share
Option Plan as of December 31, 2024:
The
Company recognized share-based compensation expenses related to its share-based awards in the consolidated statements of income as follows:
As
of December 31, 2024, there was $19,765
of unrecognized compensation cost related to RSUs. These amounts are expected to be recognized over a weighted-average period of 1.46
years related to RSUs. To the extent the actual forfeiture rate is different from what has been estimated, share-based compensation related
to these awards will differ from the initial expectations. |
FINANCIAL INCOME (EXPENSE), NET |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INCOME (EXPENSE), NET |
|
INCOME TAXES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
NOTE 15: INCOME TAXES
Taxes
on income by jurisdiction were as follows:
|
EARNINGS PER SHARE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER SHARE |
The
table below presents the computation of basic and diluted net earnings per common share:
|
MAJOR CUSTOMERS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||
MAJOR CUSTOMERS |
A
substantial portion of the Company's revenue is derived from search fees and online advertising, the market for which is highly competitive
and rapidly changing. Significant changes in this industry or in customer buying behavior would adversely affect the Company’s operating
results.
The
following table sets forth the customers that represent 10% or more of the Company’s total revenue in each of the years presented
below:
|
GEOGRAPHIC INFORMATION |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GEOGRAPHIC INFORMATION |
The
following table presents the total revenue for the years ended December 31, 2024, 2023 and 2022, allocated to the geographic areas in
which they were generated:
The
total revenue is attributed to geographic areas based on the location of the end-users.
The
following table presents the locations of the Company’s long-lived assets as of December 31, 2024 and 2024:
|
SUBSEQUENT EVENTS |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||
Subsequent Events [Abstract] | |||||||
SUBSEQUENT EVENTS |
NOTE
19: SUBSEQUENT EVENTS
|
Pay vs Performance Disclosure - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Pay vs Performance Disclosure | |||
Net Income (Loss) | $ 12,614 | $ 114,963 | $ 97,479 |
Insider Trading Policies and Procedures |
12 Months Ended |
---|---|
Dec. 31, 2024 | |
Insider Trading Policies and Procedures [Line Items] | |
Insider Trading Policies and Procedures Adopted | true |
Cybersecurity Risk Management and Strategy Disclosure |
12 Months Ended | ||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||
Cybersecurity Risk Management, Strategy, and Governance [Line Items] | |||||||||||||||||||
Cybersecurity Risk Management Processes for Assessing, Identifying, and Managing Threats [Text Block] |
Cybersecurity
Risk Management and Strategy
We
have developed and implemented a cybersecurity risk management program designed to protect the confidentiality, integrity,
and availability of our critical systems, networks, and information. Our cybersecurity risk management program includes a cybersecurity
incident response plan and cybersecurity controls. Our cybersecurity risk management program is assessed annually by independent
third-party auditors. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and
shares common methodologies, reporting channels and governance processes.
Our
cybersecurity risk management program includes:
With
respect to our third-party risk management processes, we generally seek to impose certain cybersecurity requirements on critical third
parties with whom we do business. Although we employ third-party due diligence, onboarding, and other procedures designed to assess the
data protection, data privacy, and cybersecurity practices of third-party service providers, suppliers and vendors (including risk assessments
and contractual protections), our ability to monitor such practices is limited, we do not control their cyber risk management and there
can be no assurance that we will detect, prevent, mitigate, or remediate the risk of any weakness, compromise, or failure in the systems,
networks, and information owned or controlled by such third parties. When we do become aware that a third-party service provider, supplier,
or vendor has experienced any compromise or failure, we attempt to mitigate our risk, which may include termination of such third party’s
connections to our systems, networks and information where we deem it to be appropriate
For
the year ended December 31, 2024, and as of the date of this report, we
have not identified cybersecurity incidents that have materially affected us, including our operations, business strategy, results of
operations, or financial condition. Despite our efforts to prevent, detect, mitigate, and remediate cybersecurity incidents,
complete protection in the field of cybersecurity cannot be guaranteed and we can make no assurances that we have not experienced an undetected
cybersecurity incident, including an incident that may have been material. For more information, see the Risk Factor titled – “Our
business and financial performance may be materially adversely affected by information technology issues, data breaches, cyber-attacks
and other similar incidents, as well as insufficient cybersecurity and other business disruptions.”
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Cybersecurity Risk Management Processes Integrated [Flag] | true | ||||||||||||||||||
Cybersecurity Risk Management Processes Integrated [Text Block] | We have developed and implemented a cybersecurity risk management program designed to protect the confidentiality, integrity, and availability of our critical systems, networks, and information. Our cybersecurity risk management program includes a cybersecurity incident response plan and cybersecurity controls. Our cybersecurity risk management program is assessed annually by independent third-party auditors. Our cybersecurity risk management program is integrated into our overall enterprise risk management program, and shares common methodologies, reporting channels and governance processes. | ||||||||||||||||||
Cybersecurity Risk Management Third Party Engaged [Flag] | true | ||||||||||||||||||
Cybersecurity Risk Third Party Oversight and Identification Processes [Flag] | true | ||||||||||||||||||
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Flag] | false | ||||||||||||||||||
Cybersecurity Risk Materially Affected or Reasonably Likely to Materially Affect Registrant [Text Block] | For the year ended December 31, 2024, and as of the date of this report, we have not identified cybersecurity incidents that have materially affected us, including our operations, business strategy, results of operations, or financial condition. Despite our efforts to prevent, detect, mitigate, and remediate cybersecurity incidents, complete protection in the field of cybersecurity cannot be guaranteed and we can make no assurances that we have not experienced an undetected cybersecurity incident, including an incident that may have been material. For more information, see the Risk Factor titled – “Our business and financial performance may be materially adversely affected by information technology issues, data breaches, cyber-attacks and other similar incidents, as well as insufficient cybersecurity and other business disruptions.” | ||||||||||||||||||
Cybersecurity Risk Board of Directors Oversight [Text Block] |
Cybersecurity
Governance
Our
board of directors considers cybersecurity risk as part of its overall enterprise risk management function and oversees management’s
implementation of our cybersecurity risk management program. As
part of such oversight, our board of directors receives reports from management and our internal auditor on our cybersecurity risks. In
addition, management updates our board of directors, as necessary, regarding any material cybersecurity incidents, as well as any incidents
with lesser impact potential. In addition, at least once a year, our board of directors receives a report from management on the topic.
Our
cybersecurity risk management team is led by our Chief Information Officer, or the CIO, and Chief Information Security Officer, of CISO.
The team
is responsible for detecting, assessing and managing our material risks from cybersecurity threats and incidents.
Our CIO runs and oversees the cybersecurity risk management program, reports to our COO. Our CISO is reporting to our CIO and has primary
responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our
retained third-party cybersecurity consultants. Our
CISO has extensive experience working in management roles related to cybersecurity and risk in various high-technology global companies,
as well as industry certifications such as the International Information System Security Certification Consortium’s Certified Information
Systems Security Professional certification (also known as ISC² CISSP). Additionally, our CIO has over 2 decades of extensive experience
in management roles across information systems, information technology, and information security.
Our
CISO and CIO periodically report directly to our board of directors on our cybersecurity risk management program and efforts to prevent,
detect, mitigate, and remediate cybersecurity-related risks and incidents. In addition, we have an escalation process in place designed
to inform senior management and, based on management’s assessment of risk, our board of directors of material cybersecurity-related
risks and incidents.
Our
cybersecurity management
team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various
means, which may include briefings from internal cybersecurity personnel; periodic war games to prepare for data breaches, cyber-attacks,
and other similar incidents; cybersecurity awareness trainings; periodic fraud risk assessments; containment and incident response tools;
threat intelligence and other information obtained from governmental, public or private sources, including third-party consultants engaged
by us; and alerts and reports produced by cybersecurity tools deployed in the information technology environment. Our cybersecurity
management team actively engages with industry groups for benchmarking and awareness of best practices.
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Cybersecurity Risk Board Committee or Subcommittee Responsible for Oversight [Text Block] | Our board of directors considers cybersecurity risk as part of its overall enterprise risk management function and oversees management’s implementation of our cybersecurity risk management program. | ||||||||||||||||||
Cybersecurity Risk Process for Informing Board Committee or Subcommittee Responsible for Oversight [Text Block] | As part of such oversight, our board of directors receives reports from management and our internal auditor on our cybersecurity risks. In addition, management updates our board of directors, as necessary, regarding any material cybersecurity incidents, as well as any incidents with lesser impact potential. In addition, at least once a year, our board of directors receives a report from management on the topic. | ||||||||||||||||||
Cybersecurity Risk Role of Management [Text Block] |
Our
cybersecurity risk management team is led by our Chief Information Officer, or the CIO, and Chief Information Security Officer, of CISO.
The team
is responsible for detecting, assessing and managing our material risks from cybersecurity threats and incidents.
Our CIO runs and oversees the cybersecurity risk management program, reports to our COO. Our CISO is reporting to our CIO and has primary
responsibility for our overall cybersecurity risk management program and supervises both our internal cybersecurity personnel and our
retained third-party cybersecurity consultants. Our
CISO has extensive experience working in management roles related to cybersecurity and risk in various high-technology global companies,
as well as industry certifications such as the International Information System Security Certification Consortium’s Certified Information
Systems Security Professional certification (also known as ISC² CISSP). Additionally, our CIO has over 2 decades of extensive experience
in management roles across information systems, information technology, and information security.
Our
CISO and CIO periodically report directly to our board of directors on our cybersecurity risk management program and efforts to prevent,
detect, mitigate, and remediate cybersecurity-related risks and incidents. In addition, we have an escalation process in place designed
to inform senior management and, based on management’s assessment of risk, our board of directors of material cybersecurity-related
risks and incidents.
Our
cybersecurity management
team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various
means, which may include briefings from internal cybersecurity personnel; periodic war games to prepare for data breaches, cyber-attacks,
and other similar incidents; cybersecurity awareness trainings; periodic fraud risk assessments; containment and incident response tools;
threat intelligence and other information obtained from governmental, public or private sources, including third-party consultants engaged
by us; and alerts and reports produced by cybersecurity tools deployed in the information technology environment. Our cybersecurity
management team actively engages with industry groups for benchmarking and awareness of best practices.
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Cybersecurity Risk Management Positions or Committees Responsible [Flag] | true | ||||||||||||||||||
Cybersecurity Risk Management Positions or Committees Responsible [Text Block] | Our cybersecurity risk management team is led by our Chief Information Officer, or the CIO, and Chief Information Security Officer, of CISO. The team is responsible for detecting, assessing and managing our material risks from cybersecurity threats and incidents. | ||||||||||||||||||
Cybersecurity Risk Management Expertise of Management Responsible [Text Block] | Our CISO has extensive experience working in management roles related to cybersecurity and risk in various high-technology global companies, as well as industry certifications such as the International Information System Security Certification Consortium’s Certified Information Systems Security Professional certification (also known as ISC² CISSP). Additionally, our CIO has over 2 decades of extensive experience in management roles across information systems, information technology, and information security. | ||||||||||||||||||
Cybersecurity Risk Process for Informing Management or Committees Responsible [Text Block] |
Our
cybersecurity management
team supervises efforts to prevent, detect, mitigate, and remediate cybersecurity risks and incidents through various
means, which may include briefings from internal cybersecurity personnel; periodic war games to prepare for data breaches, cyber-attacks,
and other similar incidents; cybersecurity awareness trainings; periodic fraud risk assessments; containment and incident response tools;
threat intelligence and other information obtained from governmental, public or private sources, including third-party consultants engaged
by us; and alerts and reports produced by cybersecurity tools deployed in the information technology environment. Our cybersecurity
management team actively engages with industry groups for benchmarking and awareness of best practices.
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Cybersecurity Risk Management Positions or Committees Responsible Report to Board [Flag] | true |
SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of consolidation |
Basis
of consolidation
The
consolidated financial statements include the accounts of Perion and its wholly owned subsidiaries. All intercompany balances and transactions
have been eliminated. |
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Use of estimates |
Use
of estimates
The
preparation of the consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”)
requires management to make estimates, judgments and assumptions that affect the amounts reported and disclosed in the financial statements
and the accompanying notes. Actual results could differ materially from those estimates. On an ongoing basis, the Company's management
evaluates its estimates, including those related to revenue recognition, allowance for credit losses, fair value of intangible assets
and goodwill, useful lives of intangible assets, contingent consideration, fair value of share-based awards, realizability of deferred
tax assets, and tax uncertainties. Such estimates are based on historical experience and on various other assumptions that are believed
to be reasonable, the results of which form the basis for making judgments about the carrying values of the Company’s assets and
liabilities. |
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Segments |
Segments
The
Company operates as one operating segment. Operating segments are defined as components of an enterprise for which separate financial
information is regularly evaluated by the Company’s chief operating decision maker ("CODM"), in deciding how to allocate resources
and assess performance. The Company’s CODM is the chief executive officer.
The
CODM utilizes consolidated GAAP measure of profit and loss to evaluate the Company's overall performance and inform resource allocation
to support strategic priorities and capital allocation needs. The profit and loss measure most consistent with GAAP used by the CODM is
consolidated net income.
There
is no expense or asset information, that are supplemental to those disclosed in these consolidated financial statements, that are regularly
provided to the CODM. Since the Company operates as one operating segment, financial segment information, including profit or loss and
asset information, can be found in the consolidated financial statements. |
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Financial statements in U.S. dollars |
Financial
statements in U.S. dollars
The
reporting currency of the Company is the U.S. dollar (“USD”). Major parts of the Company’s operations are carried out
by the Company and its subsidiaries in the United States and Israel. The functional currency of these entities is the USD. Accordingly,
monetary accounts maintained in currencies other than the USD are remeasured into USD, in accordance with ASC 830, Foreign
Currency Matters. All transaction gains and losses resulting from the re-measurement of the monetary balance sheet items are reflected
in the statements of income as financial income or expenses, as appropriate.
Management
believes that the USD is the currency of the primary economic environment in which the Company operates. The financial statements of other
subsidiaries, whose functional currency is determined to be their local currency, have been translated into USD. All balance sheet accounts
have been translated using the exchange rates in effect at the balance sheet date. Statement of Income amounts have been translated using
the average exchange rate for each applicable quarter. The resulting translation adjustments are reported as an accumulated other comprehensive
income (loss) component of shareholders' equity. |
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Cash and cash equivalents and short-term bank deposits |
Cash
and cash equivalents and short-term bank deposits
The
Company considers all short-term, highly liquid and unrestricted cash balances, with stated maturities of three months or less from date
of purchase, as cash equivalents. Short-term deposits are bank deposits with maturities of more than three months but less than one year at
the date acquired. The short-term deposits as of December 31, 2024 and 2023 are denominated primarily in USD and bear interest at an average
annual rate of 5.84%
and 6.67%,
respectively. |
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Restricted cash |
Restricted
cash
Restricted
cash is comprised primarily of security deposits that are held to secure the Company’s lease obligations. |
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Marketable Securities |
Marketable
Securities
Marketable
securities consist of debt securities. The Company classifies its marketable securities as available-for-sale at the time of purchase
and reevaluates such classification at each balance sheet date. Available-for-sale securities are stated at fair value, with unrealized
gains and losses reported in accumulated other comprehensive income (loss), a separate component of shareholders’ equity, net of
taxes. Realized gains and losses on sales of marketable securities, as determined on a specific identification basis, are included in
Financial income (expense), net. The amortized cost of marketable securities is adjusted for amortization of premium and accretion of
discount to maturity, both of which, together with interest, are included in Financial income (expense), net. The Company may sell these
securities at any time for use in current operations even if they have not yet reached maturity. As a result, the Company classifies its
marketable securities, including those with maturities beyond 12 months, as current assets in the consolidated balance sheets.
The
Company periodically evaluates its available-for-sale debt securities for impairment. If the amortized cost of an individual security
exceeds its fair value, the Company considers its intent to sell the security or whether it is more likely than not that it will be required
to sell the security before recovery of its amortized basis. If either of these criteria are met, the Company writes down the security
to its fair value and records the impairment charge in the consolidated statements of income. If neither of these criteria are met, the
Company determines whether credit loss exists. Credit loss is estimated by considering changes to the rating of the security by a rating
agency, any adverse conditions specifically related to the security, as well as other factors. Any remaining unrealized losses, net of
taxes, are included in accumulated other comprehensive income (loss) in shareholders’ equity.
Allowance
for credit losses on available-for-sale marketable securities are recognized in the Company’s consolidated statements of income,
and any remaining unrealized losses, net of taxes, are included in accumulated other comprehensive income (loss) in shareholders’
equity.
The
Company did not recognize an allowance for credit losses on marketable securities for the period ended December 31, 2024 and 2023.
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Accounts receivable and allowance for credit losses |
Accounts
receivable and allowance for credit losses
Accounts
receivable are recorded at the invoiced amount and amounts for which revenue has been recognized but not invoiced, net of allowance for
credit losses. The Company evaluates its outstanding accounts receivable and establishes an allowance for credit losses based on information
available on their credit condition, current aging, historical experience and future economic and market conditions. These allowances
are reevaluated and adjusted periodically as additional information is available.
The
following table sets forth a summary of the changes in the fair value of the contingent consideration:
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Property and equipment |
Property
and equipment
Property
and equipment are stated at cost, net of accumulated depreciation and impairment. Depreciation is calculated using the straight-line method
over the estimated useful lives of the assets at the following annual rates:
Leasehold
improvements are amortized using the straight-line method over the term of the lease or the estimated useful life of the improvements,
whichever is shorter. |
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Leases |
Leases
The
Company determines if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”)
assets and short-term and long-term operating lease liabilities in the Company’s consolidated balance sheets.
ROU
assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make lease
payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value
of lease payments over the lease term.
The
Company uses incremental borrowing rates based on the estimated rate of interest for collateralized borrowing over a similar term of the
lease payments at commencement date. The operating lease ROU asset also includes any lease payments made prior to commencement and
lease incentives. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it
is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain
that the Company will not exercise the option. Lease expenses for lease payments are recognized on a straight-line basis over the lease
term.
The
Company elected the practical expedient allowing not to separate the lease and non-lease components for its leases. For short-term leases
with a term of 12 months or less, operating
lease
ROU assets and liabilities are not recognized and the Company records lease payments on a straight-line basis over the lease term.
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Intangible assets |
Intangible
assets
Intangible
assets that are not considered to have finite useful life are amortized over their estimated useful lives. The Customer Relationship is
amortized over its estimated useful lives in proportion to the economic benefits realized. This accounting policy results in accelerated
amortization of such intangible asset as compared to the straight-line method.
All
other intangible assets are amortized over their estimated useful lives using the straight-line method. |
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Impairment of long-lived assets, including Right-of-use assets and intangible assets subject to amortization |
Impairment
of long-lived assets, including Right-of-use assets and intangible assets subject to amortization
The
Company’s long-lived assets (assets group) to be held or used, including property and equipment, right of use assets and intangible
assets subject to amortization are reviewed for impairment in accordance with ASC 360, Accounting for
the Impairment or Disposal of Long-Lived Assets, whenever events or changes in circumstances indicate that the carrying value of
an asset may not be recoverable. The recoverability of these assets is measured by comparing the carrying amounts of the asset (assets
group) to the future undiscounted cash flows the assets are expected to generate. If the long-lived assets are considered to be impaired,
the impairment to be recognized equals the amount by which the carrying value of the asset exceeds its fair market value.
In
determining the fair values of long-lived assets for the purpose of measuring impairment, the Company's assumptions include those that
market participants will consider in valuations of similar assets.
There
were no impairment charges to long-lived assets during the periods presented. |
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Goodwill |
Goodwill
Goodwill
reflects the excess of the purchase price of business acquired over the fair value of net assets acquired. Goodwill is not amortized but
instead is tested for impairment, in accordance with ASC 350, Intangibles – Goodwill and Other,
at the reporting unit level, at least annually at December 31 each year, or more frequently if events or changes in circumstances indicate
that the carrying value may be impaired. Any excess of the carrying amount of the reporting unit over its fair value is recognized as
an impairment loss, and the carrying value of goodwill is written down to fair value. There were no impairment losses to goodwill
during the periods presented.
Refer to Note 8 for further information. |
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Business combinations |
Business
combinations
The
Company accounted for business combination in accordance with ASC 805, Business Combinations (“ASC
805”). ASC 805 requires recognition of assets acquired, liabilities assumed, and any non-controlling interest at the acquisition
date, measured at their fair values as of that date. Any excess of the fair value of net assets acquired over purchase price is allocated
to goodwill. During the measurement period, not to exceed one year from the date of acquisition, the Company may record adjustments
to the assets acquired and liabilities assumed, with a corresponding offset to goodwill only for adjustments resulting from facts and
circumstances that existed as of the acquisition date. After the measurement period, any subsequent adjustments are reflected in the consolidated
statements of income.
Acquisition
related costs are expensed to the statement of income in the period incurred. |
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Revenue recognition |
Revenue
recognition
The
Company applies the provisions of ASC 606, Revenue from Contracts with Customers.
The
Company applies the practical expedient for incremental costs of obtaining contracts when the amortization period is less than one year.
The
Company generates revenue primarily from two major sources:
Advertising
Solutions Revenue - The company generates revenue from Advertising Solutions by delivering high-impact and standard ad formats
across different channels including standard and high-impact display, social, CTV, digital audio and DOOH. In addition, the Company also
generates revenue by delivering Web Publishers and DOOH Media Owners Solutions, such as Ad Server, SSP and Header Bidder. The company’s
diverse, technology-focused multi-channel set of solutions is designed to drive consumer engagement and high ROI for advertisers through
high-impact ad formats. The company’s solutions also include a content monetization platform that provides publishers with monetization
tools across different channels, and a social platform that supports campaign management and media buying capabilities across all major
social channels.
Search
Advertising Revenue - The company generates Search Advertising revenue from service agreements with search partners. Search Advertising
revenue is generated primarily from monthly transaction volume-based fees earned by the company for making applications available to online
publishers and app developers on a revenue share basis relative to the revenue generated by such search partners.
Revenues
are recognized upon successful delivery of advertisements typically measured by impressions, clicks, or actions.
For
more disaggregated information of revenue refer to Note 18.
The
Company has elected to apply the practical expedient such that it does not evaluate payment terms of one year or less for the existence
of a significant financing component. The Company’s payments terms are less than one year. Therefore, no finance component is recognized.
The
Company evaluates whether Advertising Solutions Revenue and Search Advertising Revenue should be presented on a gross basis, which is
the amount that a customer pays for the service, or on a net basis, which is the amount of the customer payment less amounts the Company
pays to publishers. In making that evaluation, the Company considers whether it controls the promised good or service before transferring
that good or service to the customer. The Company considers indicators such as whether the Company is the primary obligor in the arrangement
and assumes risks and rewards as a principal or an agent, whether it changes the products or performs part of the service, whether the
Company has discretion in establishing prices and whether it controls the underlying advertising space. The evaluation of these factors
is subject to significant judgment and subjectivity, and is based on management assessment of whether the Company is acting as the principal
or an agent in the transaction.
The Company has determined that in certain arrangements it acts as principal because the Company controls the specified good or service before it is transferred to a customer, as such revenue is recorded on a gross basis, while in others it does not and revenue is recorded on a net basis.
Revenue is recognized net of any taxes collected from customers which are subsequently remitted to governmental entities.
Generally,
in cases in which the Company controls the specified good or service before it is transferred to a customer, revenue is recorded on a
gross basis.
Contract
balances are presented separately on the consolidated balance sheets as either Accounts receivable or Deferred revenue.
Remaining performance obligations (RPOs) represent amounts collected on contracted revenue that have not yet been recognized. As of December 31, 2024 and 2023, the aggregate amount of the RPOs was $2,049 and $2,297, respectively. The Company anticipates that it will satisfy all its remaining performance obligations associated with the deferred revenue within the prospective fiscal year. Accounts
receivable include amounts billed and currently due from customers as well as amounts allowed to be billed according to contractual billing
terms with customers.
Revenue
recognized during 2024, 2023 and 2022 from amounts included within the Deferred revenue balance at the beginning of the period amounted
to $2,297,
$2,377
and $3,852,
respectively. |
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Cost of revenue |
Cost
of revenue
Cost
of revenue consists primarily of expenses associated with the operation of the Company’s server hosting, data verification and targeting,
campaign creative, labor and customer support. |
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Traffic acquisition costs and media buy |
Traffic
acquisition costs and media buy
Traffic
acquisition costs and media buy consist primarily of payments to publishers and developers who distribute the Company’s search properties
together with their products, as well as the cost of distributing the Company own products. In addition, media buy costs consist of the
costs of advertising inventory incurred to deliver ads. Traffic acquisition costs are primarily based on revenue share agreements with
the Company traffic sources and the media buy cost are primarily based on CPC (Cost-per-click) and CPM (Cost-per-mile), which are charged
as incurred. |
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Research and development costs |
Research
and development costs
Research
and development costs are charged to the statement of income as incurred. |
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Income taxes |
Income
taxes
The
Company accounts for income taxes in accordance with ASC 740, Income Taxes (“ASC 740”).
ASC 740 prescribes the use of the liability method, whereby deferred tax asset and liability account balances are determined based on
differences between financial reporting and tax bases of 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. To the extent necessary, the Company provides a valuation allowance
to reduce deferred tax assets to their estimated realizable value.
The
Company accounts for uncertain tax positions in accordance with ASC 740, which contains a two-step approach for recognizing and measuring
uncertain tax positions. The first step is to evaluate the tax position taken or expected to be taken in a tax return by determining if
the weight of available evidence indicates that it is more likely than not that the tax position will be sustained on audit, including
resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is
more than 50% likely to be realized upon ultimate settlement. |
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Severance pay |
Severance
pay
The
Company's agreements with employees in Israel are in accordance with section 14 of the Severance Pay Law, 1963 (“Section 14”),
where the Company's contributions for severance pay is paid to the employee upon termination instead of the severance liability that would
otherwise be payable under the law as aforementioned. Upon contribution to a fund, based on the full amount of the employee's monthly
salary, and release of the fund to the employee, no additional severance payments are required to be made by the Company to the employee.
Therefore, the related obligation and amounts deposited on behalf of such obligation are not stated on the balance sheet, as the Company
is legally released from obligation to such employees once the deposit amounts have been paid.
Severance
expenses for the years ended December 31, 2024, 2023 and 2022 amounted to $2,583,
$3,206,
and $2,809,
respectively. The balances of severance deposits and accrued severance pay are immaterial and included in other assets and other long-term
liabilities on the accompanying balance sheets, respectively. |
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Employee benefit plan |
Employee
benefit plan
The
Company’s U.S. operations maintain a retirement plan (the “U.S. Plan”) that qualifies as a deferred salary arrangement
under Section 401(k) of the Internal Revenue Code. Participants in the U.S. Plan may elect to defer a portion of their pre-tax earnings,
up to the Internal Revenue Service’s annual contribution limit. The Company matches up to 100% of each participant’s contributions,
up to 4% of employee deferral. Contributions to the U.S. Plan are recorded during the year contributed as an expense in the consolidated
statement of income.
Total
employer 401(k) contributions for the years ended December 31, 2024, 2023 and 2022 were $1,116,
$1,006,
and $865,
respectively. |
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Comprehensive income (loss) |
Comprehensive
income (loss)
The
Company accounts for comprehensive income (loss) in accordance with ASC 220, Comprehensive Income.
This statement establishes standards for the reporting and display of comprehensive income and its components in a full set of general
purpose financial statements. Comprehensive income generally represents all changes in shareholders' equity during the period except those
resulting from investments by, or distributions to, shareholders. The Company determined that its other comprehensive income (loss) relates
to hedging derivative instruments, unrealized gain (loss) on marketable securities and foreign currency translation adjustments.
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Net earnings per share |
Net
earnings per share
In
accordance with ASC 260, Earnings Per Share, basic net earnings per share ("Basic EPS") is computed
by dividing net earnings attributable to ordinary shareholders by the weighted average number of ordinary shares outstanding during the
period. Diluted net earnings per share ("Diluted EPS") reflects the potential dilution that could occur if share options, restricted shares
and other commitments to issue ordinary shares were exercised or equity awards vested, resulting in the issuance of ordinary shares that
could share in the net earnings of the Company. |
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Concentrations of credit risk |
Concentrations
of credit risk
Financial
instruments, which potentially subject the Company to a concentration of credit risk, consist primarily of cash and cash equivalents,
bank deposits, restricted cash and accounts receivable. The
majority of the Company’s cash and cash equivalents, bank deposits and restricted cash are invested in USD instruments with major
banks in the U.S. and Israel. Generally, these deposits may be redeemed upon demand and, therefore, bear minimal risk.
The
Company’s major customers are financially sound, and the Company believes low credit risk is associated with these customers. To
date, the Company has not experienced any material credit losses.
The
allowance against gross trade receivables reflects the current expected credit loss inherent in the receivables portfolio determined based
on the Company’s methodology. The Company’s methodology is based on historical collection experience, customer creditworthiness,
current and future economic condition, and market condition. Additionally, specific allowance amounts are established to record the appropriate
provision for customers that have a higher probability of default. Trade receivables are written off after all reasonable means to collect
the full amount have been exhausted. |
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Share-based compensation |
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, contractors, and directors. ASC 718 requires companies to estimate the fair value of equity-based
awards on the date of grant, using an option-pricing model. The value of the portion of the award that is ultimately expected to vest
is recognized as an expense over the requisite service periods in the Company's consolidated statement of income. The Company estimates
forfeitures at the time of grant, and revised if necessary in subsequent periods, if actual forfeitures differ from those estimates.
The
Company recognizes compensation expenses for the value of its awards, which have graded vesting based on service conditions, using the
straight-line method, over the requisite service period of each of the awards, net of estimated forfeitures. Estimated forfeitures are
based on actual historical pre-vesting forfeitures. For performance-based share units, the Company recognizes compensation expenses for
the value of such awards, if and when the Company concludes that it is probable that a performance condition will be achieved based on
the accelerated attribution method over the requisite service period. The Company reassess the probability of vesting at each reporting
period for awards with performance conditions and adjust compensation cost based on its probability assessment.
The
Company accounts for changes in award terms as a modification in accordance with ASC 718.
The
Company estimates the fair value of its options using the Binomial option-pricing model.
Since
2022 only restricted share units (“RSUs”) were granted and the fair value is based on the market value of the underlying shares
on the date of grant.
For
options, the expected volatility is calculated based on the actual historical share price movements of the Company’s share. The
expected option term represents the period that the Company’s share options are expected to be outstanding. The risk-free interest
rate is based on the yield from U.S. Treasury zero-coupon bonds, with a term which is equivalent to the expected term of the share-based
awards. |
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Derivative instruments |
Derivative
instruments
The
Company follows the requirements of ASC 815, Derivatives and Hedging (“ASC 815”), which
requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value.
The accounting for changes in fair value (i.e. gains or losses) of a derivative instrument depends on whether it has been designated and
qualifies as part of a hedging transaction and further, on the type of hedging transaction. For those derivative instruments that are
designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged,
as a fair value hedge, cash flow hedge, or a hedge of a net investment in a foreign operation. Changes
in the fair value of these derivatives are recorded in accumulated other comprehensive income in the consolidated balance sheets, until
the forecasted transaction occurs. Upon occurrence, the Company reclassifies the related gains or losses on the derivative to the same
financial statement line item in the consolidated statements of income to which the derivative relates. In
order to mitigate the potential adverse impact on cash flows resulting from fluctuations in the exchange rate of the new Israeli shekels
(“ILS”), the Company hedges portions of its forecasted expenses denominated in ILS with SWAP, forward and options contracts.
The Company does not speculate in these hedging instruments in order to profit from foreign currency exchanges, nor does it enter into
trades for which there are no underlying exposures.
To
protect against the increase in value of forecasted foreign currency cash flow resulting mainly from salaries and related benefits paid
in ILS during the year, the Company hedges portions of its anticipated payroll denominated in ILS for a period of one to twelve months
with SWAP, forward and options contracts (the “Hedging Contracts”). Accordingly, when the USD strengthens against the ILS,
the decline in present value of future ILS currency expenses is offset by losses in the fair value of the Hedging Contracts. Conversely,
when the USD weakens, the increase in the present value of future ILS expenses is offset by gains in the fair value of the Hedging Contracts.
These Hedging Contracts are designated as cash flow hedges. The
notional value of the Company’s derivative instruments designed as hedging instruments as of December 31, 2024 and 2023, amounted
to $4,971
and $6,006,
respectively.
The
notional value of the Company’s derivative instruments not designed as hedging instruments as of December 31, 2024 and 2023, amounted
to $0.
Notional values in USD are translated and calculated based on the spot rates for options and SWAP. Gross notional amounts do not quantify
risk or represent assets or liabilities of the Company; however, they are used in the calculation of settlements under the contracts.
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Fair value of financial instruments |
Fair
value of financial instruments
The
carrying amounts of financial instruments carried at cost, including cash and cash equivalents, short-term deposits, restricted cash,
accounts receivable, and other assets, accounts payable, accrued expenses and other liabilities approximate their fair value due to the
short-term maturities of such instruments.
The
Company follows the provisions of ASC No. 820, Fair Value Measurement (“ASC 820”),
which defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date.
In
determining a fair value, the Company uses various valuation approaches. ASC 820 establishes a hierarchy for inputs used in measuring
fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable
inputs be used when available. Observable inputs are inputs that market participants would use in pricing an asset or liability, based
on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect assumptions that market participants
would use in pricing an asset or liability, based on the best information available under given circumstances.
Three
levels of inputs may be used to measure fair value, as follows:
The
Company measures its marketable securities (money market funds and available-for-sale marketable securities), foreign currency derivative
instruments and contingent considerations in connection to the acquisitions at fair value. Marketable securities are classified within
Level 1 or Level 2 of the fair value hierarchy because their fair value is derived from quoted market prices or alternative pricing sources
and models utilizing observable market inputs. Derivative instruments are classified within Level 2 as the valuation inputs are based
on quoted prices and market observable data of similar instruments. The Company's contingent considerations in connection to the acquisitions
were classified within Level 3 because factors used to develop the estimated fair value are unobservable inputs that are not supported
by market activity. |
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Repurchase of shares |
Repurchase
of shares
In
prior years, the Company repurchased its ordinary shares on the open market and holds these shares as treasury shares , with
their acquisition cost presented as a reduction of shareholders' equity.
In
2024, the Company initiated a new share repurchase program authorized by the Board of Directors, under which repurchased ordinary shares
are immediately retired upon repurchase. Upon retirement, the par value of the repurchased shares is deducted from ordinary share capital,
and the excess of the repurchase price over the par value is recorded as a reduction of Additional Paid-in Capital. See Note 13, “Share
repurchase,” for further details. |
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Comparability of Prior Year Financial Data, Policy [Policy Text Block] |
Prior-period
financial statements correction of immaterial errors:
With
respect to the year ended December 31, 2024, the Company recorded a correction of prior-period errors related to the share-based compensation
expenses. The Company assessed the materiality of these errors on the financial statements for prior periods in accordance with the SEC
Staff Accounting Bulletin (SAB) No. 99, Materiality, codified in ASC 250, Presentation
of Financial Statements, and concluded that they were not material to prior years presented. However, the Company determined
that the impact of the misstatement to its financial statements for the year ended December 31, 2024 was material. In accordance with
ASC 250, the Company has corrected the misstatement for the years ended December 31, 2023 and December 31, 2022 by revising the consolidated
financial statements appearing herein. The impact of the errors on the Company’s consolidated balance sheet as of December 31, 2023
and 2022 was an understatement of additional paid-in capital of $2,450 and
$1,746,
respectively, resulted in an overstatement of retained earnings of $2,450
and $1,746,
respectively. The
following tables summarize the effects of the corrections on the Company’s consolidated statements of comprehensive loss for the
years ended December 31, 2023 and 2022:
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Recently Adopted Accounting Pronouncements |
Recently
Adopted Accounting Pronouncements:
In
November 2023, the FASB issued ASU 2023-07, “Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures”
(“ASU 2023-07”). Additional segment reporting information required by ASU 2023-07 includes: disclosing the title and position
of the individual or the name of the group or committee identified as the CODM, provide in interim periods all disclosures about a reportable
segment’s profit or loss and assets that are currently required annually, and additional disclosures regarding significant segment
expenses. Effective December 31, 2024, the Company has adopted this standard retroactively. The adoption of this ASU affects only disclosures,
with no impacts to the Company's financial condition and results of operations.
Recently
issued Accounting Pronouncements not yet adopted
In
December 2023, the FASB issued ASU 2023-09 “Income Taxes (Topic 740): Improvements to Income Tax Disclosures”, which expands
the disclosure requirements for income taxes, primarily related to the rate reconciliation and income taxes paid. This ASU is effective
for the fiscal years beginning after December 15, 2024. Early adoption permitted. The Company is currently evaluating the impact
of this guidance on its consolidated financial statements and related disclosures.
In
November 2024, the FASB issued ASU 2024-03, “Income Statement — Reporting Comprehensive Income — Expense Disaggregation
Disclosures (Subtopic 220-40): Disaggregation of Income (loss) Statement Expenses" (“ASU 2024-03”). ASU 2024-03 requires disaggregation
of certain costs and expenses included in each relevant expense caption on the Company's consolidated income (loss) statements in a separate
note to the financial statements at each interim and annual reporting period, including amounts of purchases of inventory, employee compensation,
depreciation, and intangible asset amortization. ASU 2024-04 is effective fiscal years beginning after December 15, 2026, and interim
reporting periods within annual reporting periods beginning after December 15, 2027, with early adoption permitted. The Company is currently
evaluating the impact of adopting ASU 2024-03. |
SIGNIFICANT ACCOUNTING POLICIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accounting Policies [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in the fair value of the contingent consideration |
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Schedule of estimated useful lives at an annual rate |
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Schedule of summarize effects of corrections on company’s consolidated statements of comprehensive loss |
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MARKETABLE SECURITIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of marketable securities |
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Schedule of unrealized losses for less than 12 months and 12 months or greater |
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FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value measurements |
The
following table presents financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2024:
The following table presents financial assets measured at fair value on a recurring basis as of December 31, 2023:
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Schedule of Business Acquisitions by Acquisition, Contingent Consideration |
|
ACQUISITIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of assets acquired and liabilities assumed |
1 Includes
cash in the amount of $5,010.
|
RESTRUCTURING COSTS AND OTHER CHARGES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Restructuring and Related Costs |
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PROPERTY AND EQUIPMENT, NET (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of property and equipment |
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GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets, net [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of changes in goodwill |
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Schedule of intangible assets |
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Schedule of estimated useful life of the intangible assets |
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Schedule of estimated future amortization expense |
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ACCRUED EXPENSES AND OTHER LIABILITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of accrued expenses and other liabilities |
|
DERIVATIVES AND HEDGING ACTIVITIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of fair value of the Companys outstanding derivative instruments |
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Schedule of net amounts reclassified from accumulated other comprehensive loss to the operating expenses |
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LEASES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Lessee Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of weighted-average remaining lease term and discount rate |
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Schedule of maturities of operating lease liabilities |
|
SHAREHOLDERS' EQUITY (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock option activity |
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Schedule of option activity by price range |
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Schedule of stock-based compensation expense |
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Performance Based Stock Options Member | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of stock option activity |
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Schedule of option activity by price range |
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FINANCIAL INCOME (EXPENSE), NET (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of financial income (expense), net |
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INCOME TAXES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of income (loss) before taxes |
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Schedule of income taxes |
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Schedule of income taxes by jurisdiction |
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Schedule of deferred tax assets (liabilities) |
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Schedule of the reconciliation of the effective tax rate |
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Schedule of unrecognized tax benefits |
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EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of the computation of basic and diluted net earnings per common share |
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MAJOR CUSTOMERS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of revenues and receivables by major customer |
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GEOGRAPHIC INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2024 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of total revenues attributed to geographic areas |
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Schedule of property and equipment attributed to geographic areas |
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SIGNIFICANT ACCOUNTING POLICIES (Schedule of changes in the fair value of the contingent consideration) (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2024
USD ($)
| |
Accounting Policies [Abstract] | |
Balance as of December 31, 2023 | $ 2,091 |
Increase in provision for expected credit losses | 2,027 |
Recoveries collected | (597) |
Amounts written off charged against the allowance | (986) |
Foreign currency translation | 3 |
Fair value as of December 31, 2024 | $ 2,538 |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of Estimated Useful Lives at Annual Rates) (Details) |
12 Months Ended |
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Dec. 31, 2024 | |
Computers and peripheral equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 33.00% |
Office furniture and equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 6.00% |
Office furniture and equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives, annual rate | 15.00% |
SIGNIFICANT ACCOUNTING POLICIES (Schedule of the corrections on Company's consolidated statements of comprehensive loss) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
||||
Cost of revenue | $ 46,643 | $ 37,853 | $ 30,401 | |||
Research and development | 36,655 | 33,880 | 34,622 | |||
Selling and marketing | 68,497 | 59,341 | 57,449 | |||
General and administrative | 38,697 | 32,062 | 27,745 | [1] | ||
Total Costs and Expenses | 501,324 | 628,865 | 532,840 | |||
Income from Operations | (3,038) | 114,290 | 107,416 | |||
Income before Taxes on income | 15,482 | 135,241 | 111,918 | |||
Net Income | $ 12,614 | $ 114,963 | $ 97,479 | |||
Net Earnings per Share - Basic: | $ 0.27 | $ 2.44 | $ 2.17 | |||
Net Earnings per Share - Diluted: | $ 0.25 | $ 2.3 | $ 2.03 | |||
Previously Reported [Member] | ||||||
Cost of revenue | $ 37,830 | $ 30,404 | ||||
Research and development | 33,066 | 34,424 | ||||
Selling and marketing | 57,991 | 56,014 | ||||
General and administrative | 31,799 | 27,629 | ||||
Total Costs and Expenses | 626,415 | 531,094 | ||||
Income from Operations | 116,740 | 109,162 | ||||
Income before Taxes on income | 137,691 | 113,664 | ||||
Net Income | $ 117,413 | $ 99,225 | ||||
Net Earnings per Share - Basic: | $ 2.49 | $ 2.21 | ||||
Net Earnings per Share - Diluted: | $ 2.34 | $ 2.06 | ||||
Revision of Prior Period, Adjustment [Member] | ||||||
Cost of revenue | $ 23 | $ (3) | ||||
Research and development | 814 | 198 | ||||
Selling and marketing | 1,350 | 1,435 | ||||
General and administrative | 263 | 116 | ||||
Total Costs and Expenses | 2,450 | 1,746 | ||||
Income from Operations | (2,450) | (1,746) | ||||
Income before Taxes on income | (2,450) | (1,746) | ||||
Net Income | $ (2,450) | $ (1,746) | ||||
Net Earnings per Share - Basic: | $ (0.05) | $ (0.04) | ||||
Net Earnings per Share - Diluted: | $ (0.04) | $ (0.04) | ||||
|
FAIR VALUE OF FINANCIAL INSTRUMENTS - Contingent consideration (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2024
USD ($)
| |
FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract] | |
Fair value as of December 31, 2023 | $ 69,715 |
Payments of contingent consideration | (71,256) |
Changes in fair value of contingent consideration | 1,541 |
Fair value as of December 31, 2024 | $ 0 |
ACQUISITIONS (Schedule of estimated fair values of the assets acquired and liabilities assumed) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 11, 2023 |
Dec. 31, 2022 |
||
---|---|---|---|---|---|---|
Business Acquisition [Line Items] | ||||||
Goodwill | $ 247,086 | $ 247,975 | $ 195,527 | |||
Hivestack [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Property and equipment, net | [1] | $ 9,742 | ||||
Net assets acquired | 106,931 | |||||
Hivestack [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Property and equipment, net | [1] | 8,853 | ||||
Net assets acquired | 106,931 | |||||
Hivestack [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Property and equipment, net | [1] | 889 | ||||
Net assets acquired | 0 | |||||
Hivestack [Member] | Technology-Based Intangible Assets [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 35,072 | |||||
Hivestack [Member] | Technology-Based Intangible Assets [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 35,072 | |||||
Hivestack [Member] | Technology-Based Intangible Assets [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 0 | |||||
Hivestack [Member] | Customer Relationships [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 11,206 | |||||
Hivestack [Member] | Customer Relationships [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 11,206 | |||||
Hivestack [Member] | Customer Relationships [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 0 | |||||
Hivestack [Member] | Tradename [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 3,158 | |||||
Hivestack [Member] | Tradename [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 3,158 | |||||
Hivestack [Member] | Tradename [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Intangible assets | 0 | |||||
Hivestack [Member] | Deferred Taxes [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Deferred Taxes | (3,806) | |||||
Hivestack [Member] | Deferred Taxes [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Deferred Taxes | (3,806) | |||||
Hivestack [Member] | Deferred Taxes [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Deferred Taxes | 0 | |||||
Hivestack [Member] | Goodwill [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 51,559 | |||||
Hivestack [Member] | Goodwill [Member] | Initially Reported as of December 31, 2021 | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | 52,448 | |||||
Hivestack [Member] | Goodwill [Member] | Measurement Period Adjustment | ||||||
Business Acquisition [Line Items] | ||||||
Goodwill | $ (889) | |||||
|
RESTRUCTURING COSTS AND OTHER CHARGES (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Restructuring Cost and Reserve [Line Items] | |||
Total | $ 6,895 | $ 0 | $ 0 |
Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 1,405 | ||
Contract termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 121 | ||
Intangible assets write-off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 5,369 | ||
Cost of revenue [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 55 | ||
Cost of revenue [Member] | Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 29 | ||
Cost of revenue [Member] | Contract termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 26 | ||
Cost of revenue [Member] | Intangible assets write-off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 0 | ||
Research and development [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 4,078 | ||
Research and development [Member] | Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 676 | ||
Research and development [Member] | Contract termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 17 | ||
Research and development [Member] | Intangible assets write-off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 3,385 | ||
Selling and marketing [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 2,515 | ||
Selling and marketing [Member] | Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 495 | ||
Selling and marketing [Member] | Contract termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 36 | ||
Selling and marketing [Member] | Intangible assets write-off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 1,984 | ||
General and administrative [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 247 | ||
General and administrative [Member] | Employee termination costs [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 205 | ||
General and administrative [Member] | Contract termination [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | 42 | ||
General and administrative [Member] | Intangible assets write-off [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Total | $ 0 |
PROPERTY AND EQUIPMENT, NET (Schedule of Property and equipment, net) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 34,588 | $ 28,407 | |
Less: accumulated depreciation and amortization | (25,672) | (25,228) | |
Property and equipment, net | 8,916 | 3,179 | |
Depreciation expenses | 2,070 | 1,644 | $ 1,954 |
Computers and peripheral equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 6,448 | 6,449 | |
Office furniture and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 3,081 | 2,407 | |
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | 12,586 | 7,078 | |
Capitalized software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment | $ 12,473 | $ 12,473 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Changes in Goodwill) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Goodwill [Line Items] | ||
Balance as of January 1 | $ 247,975 | $ 195,527 |
Measurement period adjustment | (889) | |
Vidazoo measurement period adjustments | 52,448 | |
Balance as of December 31 | $ 247,086 | $ 247,975 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Summary of Intangible Assets) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Intangible assets, Net | ||
Balance at beginning of period | $ 88,652 | $ 51,664 |
Additions | 49,436 | |
Write-off | (5,368) | |
Amortization | (14,367) | (12,448) |
Balance at end of period | 68,917 | 88,652 |
Acquired technology [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 124,847 | 89,775 |
Additions | 35,072 | |
Write-off | 0 | |
Amortization | 0 | 0 |
Balance at end of period | 124,847 | 124,847 |
Accumulated amortization | ||
Balance at beginning of period | (51,106) | (41,023) |
Additions | 0 | |
Write-off | 0 | |
Amortization | (11,657) | (10,083) |
Balance at end of period | (62,763) | (51,106) |
Impairment | ||
Balance at beginning of period | (8,749) | (8,749) |
Write-off | 0 | |
Additions | 0 | |
Amortization | 0 | 0 |
Balance at end of period | (8,749) | (8,749) |
Write-off due to restructuring | ||
Balance at beginning of period | 0 | |
Write-off | (3,384) | |
Amortization | 0 | |
Balance at end of period | (3,384) | 0 |
Intangible assets, Net | ||
Balance at beginning of period | 64,992 | 40,003 |
Additions | 35,072 | |
Write-off | (3,384) | |
Amortization | (11,657) | (10,083) |
Balance at end of period | 49,951 | 64,992 |
Customer relationship [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 57,750 | 46,544 |
Additions | 11,206 | |
Write-off | 0 | |
Amortization | 0 | 0 |
Balance at end of period | 57,750 | 57,750 |
Accumulated amortization | ||
Balance at beginning of period | (27,056) | (24,976) |
Additions | 0 | |
Write-off | 0 | |
Amortization | (2,143) | (2,080) |
Balance at end of period | (29,199) | (27,056) |
Impairment | ||
Balance at beginning of period | (10,426) | (10,426) |
Write-off | 0 | |
Additions | 0 | |
Amortization | 0 | 0 |
Balance at end of period | (10,426) | (10,426) |
Write-off due to restructuring | ||
Balance at beginning of period | 0 | |
Write-off | (1,984) | |
Amortization | 0 | |
Balance at end of period | (1,984) | 0 |
Intangible assets, Net | ||
Balance at beginning of period | 20,268 | 11,142 |
Additions | 11,206 | |
Write-off | (1,984) | |
Amortization | (2,143) | (2,080) |
Balance at end of period | 16,141 | 20,268 |
Tradename [Member] | ||
Intangible assets, Gross | ||
Balance at beginning of period | 21,661 | 18,503 |
Additions | 3,158 | |
Write-off | 0 | |
Amortization | 0 | 0 |
Balance at end of period | 21,661 | 21,661 |
Accumulated amortization | ||
Balance at beginning of period | (13,159) | (12,874) |
Additions | 0 | |
Write-off | 0 | |
Amortization | (567) | (285) |
Balance at end of period | (13,726) | (13,159) |
Impairment | ||
Balance at beginning of period | (5,110) | (5,110) |
Additions | 0 | 0 |
Amortization | 0 | 0 |
Balance at end of period | (5,110) | (5,110) |
Intangible assets, Net | ||
Balance at beginning of period | 3,392 | 519 |
Additions | 3,158 | |
Write-off | 0 | |
Amortization | (567) | (285) |
Balance at end of period | $ 2,825 | $ 3,392 |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Estimated Useful Life of Intangible Assets) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2024 | |
Acquired technology [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 7 years |
Acquired technology [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 8 years |
Customer relationship [Member] | Minimum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 8 years |
Customer relationship [Member] | Maximum [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 15 years |
Tradename [Member] | |
Finite-Lived Intangible Assets [Line Items] | |
Weighted Avarage Useful Life | 10 years |
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule Of Estimated Future Amortization Expense) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
---|---|---|---|
Intangible assets, net [Abstract] | |||
2025 | $ 11,792 | ||
2026 | 11,742 | ||
2027 | 11,707 | ||
2028 | 10,423 | ||
2029 | 6,392 | ||
Thereafter | 16,861 | ||
Net carrying amount | $ 68,917 | $ 88,652 | $ 51,664 |
ACCRUED EXPENSES AND OTHER LIABILITIES (Schedule of Accrued Expenses and Other Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Payables and Accruals [Abstract] | ||
Employees and payroll accruals | $ 17,959 | $ 23,292 |
Government authorities | 4,837 | 10,808 |
Accrued expenses | 8,892 | 7,702 |
Other short-term liabilities | 1,160 | 834 |
Accrued expenses and other liabilities, total | $ 32,848 | $ 42,636 |
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Fair Value of Company's Outstanding Derivative Instruments) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Derivatives designated as hedging instruments: | ||
Foreign exchange forward contracts and other derivatives - Prepaid expenses and other current assets | $ 114 | $ 234 |
Foreign exchange forward contracts and other derivatives - Accumulated other comprehensive income | 114 | 214 |
Derivatives not designated as hedging instruments: | ||
Foreign exchange forward contracts and other derivatives - Accrued expenses and other liabilities | $ 0 | $ 20 |
DERIVATIVES AND HEDGING ACTIVITIES (Schedule of Net (Gains) Losses Reclassified from Accumulated Other Comprehensive Income (Loss) to Operating Expenses) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Derivatives designated as hedging instruments: | |||
Gain recognized in Statements of Comprehensive Income | $ (99) | $ 446 | $ (307) |
Derivatives not designated as hedging instruments: | |||
Total | 280 | (1,373) | (1,023) |
Foreign exchange options and forward contracts [Member] | |||
Derivatives designated as hedging instruments: | |||
Gain recognized in Statements of Comprehensive Income | (99) | ||
Derivatives not designated as hedging instruments: | |||
Gain (loss) recognized in Consolidated Statements of Income | 0 | ||
Total | (99) | ||
Foreign exchange options and forward contracts [Member] | Operating expenses [Member] | |||
Derivatives designated as hedging instruments: | |||
Gain (loss) recognized in Consolidated Statements of Income | 250 | (1,233) | (948) |
Foreign exchange options and forward contracts [Member] | Financial expenses [Member] | |||
Derivatives not designated as hedging instruments: | |||
Gain (loss) recognized in Consolidated Statements of Income | $ 30 | $ (140) | $ (75) |
LEASES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Lessee, Lease, Description [Line Items] | |||
Lease expiration date Holon, Israel office | Jan. 31, 2025 | ||
Period of additional term | 24 months | ||
Decrease of value of right of use asset | $ 344 | ||
Lease expense | $ 3,879 | $ 1,993 | 2,846 |
Sublease income | 3,732 | 3,598 | 2,533 |
Variable lease cost | 451 | 272 | 224 |
Cash paid for measurement of lease liabilities | $ 8,287 | $ 6,191 | $ 5,880 |
LEASES (Schedule of Weighted-Average Remaining Lease Term and Discount Rate) (Details) |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Leases [Abstract] | ||
Weighted average remaining lease term | 8 years 7 months 28 days | 2 years 10 days |
Weighted average discount rate | 5.53% | 5.05% |
LEASES (Schedule of Maturities of Operating Lease Liabilities) (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2024
USD ($)
| ||||
Operating leases | ||||
2025 | $ 4,275 | |||
2026 | 3,499 | |||
2027 | 2,722 | |||
2028 | 2,722 | |||
Thereafter | 15,474 | |||
Total lease payments | 28,692 | [1] | ||
Less - imputed interest | (6,390) | |||
Present value of lease liabilities | 22,302 | |||
Sublease rental payments | $ 5,318 | |||
|
SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
Apr. 30, 2024 |
Feb. 29, 2024 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Option expiration term | 7 years | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average fair value of stock options and RSUs granted | $ 10.83 | $ 35.65 | $ 20.13 | ||
Weighted average fair value of stock options and RSUs, on vesting dates | $ 19,798 | 11,531 | 10,008 | ||
Unrecognized compensation cost related to outstanding stock options and RSUs | $ 19,765 | ||||
Unrecognized compensation cost related to outstanding stock options and RSUs, expected period of recognition | 1 year 5 months 15 days | ||||
Performance Based Stock Options Member | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average fair value of stock options and RSUs granted | $ 8.6 | 34.18 | 20.58 | ||
Weighted average fair value of stock options and RSUs, on vesting dates | $ 3,032 | $ 2,506 | $ 2,434 | ||
Share repurchase program [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Total authorized share repurchase amount | $ 50,000 | ||||
Additional authorized share repurchase amount | $ 75,000 | ||||
Number of shares repurchased | 5,200,000 | ||||
Cost of shares repurchased | $ 46,920,000 | ||||
Stock Option Plan 2003 [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares available for grant | 400,921 | ||||
Stock Option Plan 2003 [Member] | Restricted Stock Units (RSUs) [Member] | Minimum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for plan | 1 year | ||||
Stock Option Plan 2003 [Member] | Restricted Stock Units (RSUs) [Member] | Maximum [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period for plan | 3 years |
SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Restricted Stock Units (RSUs) [Member] | ||
Number of options and RSUs | ||
Outstanding at January 1 | 2,493,281 | |
Granted | 2,528,897 | |
Exercised | (1,386,122) | |
Cancelled | (418,135) | |
Outstanding at December 31 | 3,217,921 | 2,493,281 |
Exercisable at December 31 | 250,710 | |
Vested and expected to vest at December 31 | 2,972,446 | |
Weighted average Exercise price | ||
Outstanding at January 1 | $ 0.84 | |
Granted | 0 | |
Exercised | 0.38 | |
Cancelled | 0.13 | |
Outstanding at December 31 | 0.47 | $ 0.84 |
Exercisable at December 31 | 6.07 | |
Vested and expected to vest at December 31 | $ 0.52 | |
Weighted average Remaining contractual term | ||
Outstanding | 86 years 7 months 24 days | 66 years 8 months 12 days |
Exercisable at December 31 | 2 years 2 months 8 days | |
Vested and expected to vest at December 31 | 85 years 7 months 9 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 74,862 | |
Exercised | 19,135 | |
Outstanding at December 31 | 25,849 | $ 74,862 |
Exercisable at December 31 | 717 | |
Vested and expected to vest at December 31 | $ 48,895 | |
Performance Based Stock Options Member | ||
Number of options and RSUs | ||
Outstanding at January 1 | 532,028 | |
Granted | 1,234,482 | |
Exercised | (230,991) | |
Cancelled | (512,317) | |
Outstanding at December 31 | 1,023,202 | 532,028 |
Exercisable at December 31 | 0 | |
Vested and expected to vest at December 31 | 1,276,340 | |
Weighted average Exercise price | ||
Outstanding at January 1 | $ 0 | |
Granted | 0 | |
Exercised | 0 | |
Cancelled | 0 | |
Outstanding at December 31 | 0 | $ 0 |
Exercisable at December 31 | 0 | |
Vested and expected to vest at December 31 | $ 0 | |
Weighted average Remaining contractual term | ||
Outstanding | 99 years 2 months 19 days | 87 years 6 months 10 days |
Vested and expected to vest at December 31 | 96 years 1 month 24 days | |
Aggregate intrinsic value | ||
Outstanding at January 1 | $ 16,424 | |
Exercised | 4,222 | |
Outstanding at December 31 | 8,667 | $ 16,424 |
Exercisable at December 31 | 0 | |
Vested and expected to vest at December 31 | $ 19,477 |
SHAREHOLDERS' EQUITY (Schedule of Option Activity by Price Range) (Details) |
12 Months Ended |
---|---|
Dec. 31, 2024
$ / shares
shares
| |
Outstanding | |
Number of options | shares | 3,217,921 |
Weighted average remaining contractual life (years) | 86 years 7 months 24 days |
Weighted average exercise price | $ 0.47 |
Exercisable | |
Number of options | shares | 250,710 |
Weighted average remaining contractual life (years) | 2 years 2 months 8 days |
Weighted average exercise price | $ 6.07 |
$0.01 [Member] | |
Outstanding | |
Range of exercise price | $ 0 |
Number of options | shares | 2,967,211 |
Weighted average remaining contractual life (years) | 93 years 9 months 10 days |
Weighted average exercise price | $ 0 |
Exercisable | |
Number of options | shares | 0 |
Weighted average exercise price | $ 0 |
$2.87 – $3.38 [Member] | |
Outstanding | |
Range of exercise price, minimum | 2.87 |
Range of exercise price, maximum | $ 3.38 |
Number of options | shares | 27,508 |
Weighted average remaining contractual life (years) | 1 year 2 months 19 days |
Weighted average exercise price | $ 3.27 |
Exercisable | |
Number of options | shares | 27,508 |
Weighted average remaining contractual life (years) | 1 year 2 months 19 days |
Weighted average exercise price | $ 3.27 |
$4.25 – $5.90 [Member] | |
Outstanding | |
Range of exercise price, minimum | 4.25 |
Range of exercise price, maximum | $ 5.9 |
Number of options | shares | 143,359 |
Weighted average remaining contractual life (years) | 1 year 10 months 28 days |
Weighted average exercise price | $ 5.39 |
Exercisable | |
Number of options | shares | 143,359 |
Weighted average remaining contractual life (years) | 1 year 10 months 28 days |
Weighted average exercise price | $ 5.39 |
$6.23 – $6.56 [Member] | |
Outstanding | |
Range of exercise price, minimum | 6.23 |
Range of exercise price, maximum | $ 6.56 |
Number of options | shares | 67,001 |
Weighted average remaining contractual life (years) | 2 years 11 months 26 days |
Weighted average exercise price | $ 6.5 |
Exercisable | |
Number of options | shares | 67,001 |
Weighted average remaining contractual life (years) | 2 years 11 months 26 days |
Weighted average exercise price | $ 6.5 |
$12.02 – $21.35 [Member] | |
Outstanding | |
Range of exercise price, minimum | 12.02 |
Range of exercise price, maximum | $ 21.35 |
Number of options | shares | 12,842 |
Weighted average remaining contractual life (years) | 3 years 3 months 7 days |
Weighted average exercise price | $ 17.34 |
Exercisable | |
Number of options | shares | 12,842 |
Weighted average remaining contractual life (years) | 3 years 3 months 7 days |
Weighted average exercise price | $ 17.34 |
Performance-based Stock Options [Member] | $ 0.01 [Member] | |
Outstanding | |
Range of exercise price | $ 0 |
Number of options | shares | 1,023,202 |
Weighted average remaining contractual life (years) | 99 years 2 months 19 days |
Weighted average exercise price | $ 0 |
Exercisable | |
Number of options | shares | 0 |
Weighted average exercise price | $ 0 |
SHAREHOLDERS' EQUITY (Schedule of Stock Based Compensation Expense) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 27,212 | $ 18,040 | $ 13,316 |
Cost of revenue [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 2,424 | 942 | 443 |
Research and Development [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 5,797 | 3,559 | 2,327 |
Selling and Marketing Expense [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | 9,592 | 8,345 | 5,963 |
General and administrative [Member] | |||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | |||
Share-based compensation expense | $ 9,399 | $ 5,194 | $ 4,583 |
FINANCIAL INCOME (EXPENSE), NET (Schedule of Financial Income (Expense), Net) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Financial income: | |||
Interest income | $ 18,988 | $ 20,728 | $ 4,993 |
Amortization/accretion of premium/discount on marketable securities, net | 1,257 | 1,147 | 0 |
Financial income | 20,245 | 21,875 | 4,993 |
Financial expense: | |||
Foreign currency translation losses | (1,075) | (567) | (264) |
Interest expense on debts | 0 | 0 | 0 |
Bank charges and other | (650) | (357) | (227) |
Financial expenses | (1,725) | (924) | (491) |
Financial income, net | $ 18,520 | $ 20,951 | $ 4,502 |
INCOME TAXES (Narrative) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Taxes On Income [Line Items] | |||
Income tax rate | 23.00% | 23.00% | 23.00% |
Preferred Enterprise tax rate | 16.00% | ||
Dividends distributed from income from the preferred technological enterprises | 20.00% | ||
Dividend distributed to foreign corporate shareholder if the percentage of foreign shareholders exceeds 90% | 4.00% | ||
Net operating loss carry forward | $ 6,805 | ||
Change in valuation allowance | 1,557 | $ 340 | |
Company recognized interest and penalties accrued | $ 1,022 | $ 910 | |
Description of New Technological Enterprise Incentives Regime | According to Amendment 73, a Preferred Technological Enterprise, as defined in Amendment 73, with total consolidated revenue of less than NIS 10 billion, shall 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 criteria 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 revenue derived from exports. | ||
Undistributed earnings of foreign subsidiaries | $ 12,800 | ||
Unrecognized deferred tax liability on undistributed earnings | $ 2,100 | ||
Israel [Member] | |||
Taxes On Income [Line Items] | |||
Dividends distributed from income from the preferred technological enterprises | 20.00% | ||
Internal Revenue Service (IRS) [Member] | Latest Tax Year [Member] | |||
Taxes On Income [Line Items] | |||
Expiration of operating loss carry forwards | Dec. 31, 2035 | ||
European Subsidiaries [Member] | Israel [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | $ 5,922 | ||
Federal [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | 8,984 | ||
State [Member] | |||
Taxes On Income [Line Items] | |||
Net operating loss carry forward | $ 9,964 | ||
Peripheral Regions Development Area A [Member] | |||
Taxes On Income [Line Items] | |||
Preferred Enterprise tax rate | 7.50% |
INCOME TAXES (Schedule of Income (Loss) Before Taxes) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Domestic | $ 5,873 | $ 127,535 | $ 106,332 |
Foreign | 9,609 | 7,706 | 5,586 |
Income before Taxes on Income | $ 15,482 | $ 135,241 | $ 111,918 |
INCOME TAXES (Schedule of Taxes on Income (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Current taxes | $ 5,905 | $ 21,623 | $ 16,758 |
Deferred tax benefit | (2,151) | (734) | (1,525) |
Taxes in respect of previous years | (886) | (611) | (794) |
Total income tax expense | $ 2,868 | $ 20,278 | $ 14,439 |
INCOME TAXES (Schedule of Taxes on Income by Jurisdiction (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Taxes on income by jurisdiction | |||
Domestic | $ 1,058 | $ 19,466 | $ 14,378 |
Foreign | 1,810 | 812 | 61 |
Total income tax expense | 2,868 | 20,278 | 14,439 |
Domestic: | |||
Current taxes | 4,205 | 21,106 | 15,938 |
Deferred tax benefit | (2,394) | (1,594) | (860) |
Taxes in respect of previous years | (753) | (46) | (700) |
Total - Domestic | 1,058 | 19,466 | 14,378 |
Foreign: | |||
Current taxes | 1,700 | 517 | 820 |
Deferred tax expense (benefit) | 243 | 860 | (665) |
Taxes in respect of previous years | (133) | (565) | (94) |
Total - Foreign | 1,810 | 812 | 61 |
Total income tax expense | $ 2,868 | $ 20,278 | $ 14,439 |
INCOME TAXES (Schedule of Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands |
Dec. 31, 2024 |
Dec. 31, 2023 |
---|---|---|
Deferred tax assets: | ||
Net operating loss and other losses carry forwards | $ 10,029 | $ 6,077 |
Research and development | 3,504 | 3,345 |
Share-based compensation | 3,061 | 2,125 |
Lease liabilities | 3,273 | 1,514 |
Other temporary differences mainly relating to reserve and allowances | 1,047 | 1,142 |
Deferred tax assets, before valuation allowance | 20,914 | 14,203 |
Valuation allowance | (3,676) | (2,119) |
Right of use assets | (2,835) | (1,261) |
Intangible assets | (5,886) | (6,643) |
Deferred tax liability, before valuation allowance | (8,721) | (7,904) |
Total deferred tax assets, net | 8,517 | 4,180 |
Long term deferred tax asset (liability), net | 3,122 | 722 |
Long term deferred tax asset, net | 5,395 | 3,458 |
Domestic Tax Authority [Member] | ||
Deferred tax assets: | ||
Long term deferred tax asset (liability), net | 3,122 | 722 |
Foreign Tax Authority [Member] | ||
Deferred tax assets: | ||
Long term deferred tax asset, net | $ 5,395 | $ 3,458 |
INCOME TAXES (Schedule of the Reconciliation of the Effective Tax Rate) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Income Tax Disclosure [Abstract] | |||
Income before taxes on income | $ 15,482 | $ 135,241 | $ 111,918 |
Statutory tax rate in Israel | 23.00% | 23.00% | 23.00% |
Theoretical tax expense | $ 3,561 | $ 31,105 | $ 25,741 |
Increase (decrease) in tax expenses resulting from: | |||
"Preferred Enterprise" benefits | (2,415) | (15,753) | (11,255) |
Non-deductible expenses | 1,395 | 928 | (2,306) |
Tax adjustment in respect of different tax rate of foreign subsidiaries | 741 | 407 | 313 |
Deferred taxes related to prior years | 27 | 667 | (55) |
Previous years taxes | 1,291 | 42 | (136) |
Change in valuation allowance | (319) | (340) | (185) |
Change in unrecognized tax benefits | (1,422) | 3,319 | 2,480 |
Other | 9 | (97) | (158) |
Taxes on income | $ 2,868 | $ 20,278 | $ 14,439 |
Benefit per ordinary share from "Preferred Enterprise" status: | |||
Basic | $ 0.05 | $ 0.33 | $ 0.25 |
Diluted | $ 0.05 | $ 0.31 | $ 0.23 |
INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
|
Income Tax Disclosure [Abstract] | ||
Balance at the beginning of the year | $ 12,722 | $ 9,400 |
Decrease related to prior year tax positions, net | (3,652) | (755) |
Increase related to current year tax positions, net | 725 | 4,077 |
Balance at the end of the year | $ 9,795 | $ 12,722 |
EARNINGS PER SHARE (Schedule of Computation of Basic and Diluted Net Earnings Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Numerator: | |||
Net income attributable to ordinary shares – basic and diluted | $ 12,614 | $ 114,963 | $ 97,479 |
Denominator: | |||
Number of ordinary shares outstanding during the year | 47,281,588 | 47,128,232 | 44,871,149 |
Weighted average effect of dilutive securities: | |||
Employee options and restricted share units | 2,274,189 | 2,945,753 | 3,200,489 |
Diluted number of ordinary shares outstanding | 49,555,777 | 50,073,985 | 48,071,638 |
Basic net earnings per ordinary share | $ 0.27 | $ 2.44 | $ 2.17 |
Diluted net earnings per ordinary share | $ 0.25 | $ 2.3 | $ 2.03 |
Potential ordinary shares equivalents excluded because their effect would have been anti-dilutive | 958,583 | 0 | 456,696 |
MAJOR CUSTOMERS (Schedule of Total Revenue) (Details) - Customer Concentration Risk [Member] - Revenues [Member] |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Customer A [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 23.00% | 34.00% | 35.00% |
Customer B [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 10.00% | 11.00% | |
Concentration risk, percentage | Less than 10% |
GEOGRAPHIC INFORMATION (Schedule of Total Revenue of Geographic Areas) (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2024 |
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | $ 498,286 | $ 743,155 | $ 640,256 |
Long-lived assets | 29,125 | 9,788 | |
Israel [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | 25,520 | 3,900 | |
U.S. [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 373,039 | 638,748 | 536,331 |
Long-lived assets | 3,075 | 5,785 | |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Total Revenues | 125,247 | 104,407 | $ 103,925 |
Long-lived assets | $ 530 | $ 103 |
SUBSEQUENT EVENTS (Narrative) (Details) - Subsequent Event [Member] - Share repurchase program 2025 expansion [Member] $ in Thousands |
Mar. 31, 2025
USD ($)
|
---|---|
Subsequent Event [Line Items] | |
Additional authorized share repurchase amount | $ 50,000 |
Total authorized share repurchase amount | $ 125,000 |
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