Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2018



	As of December 31, 2017
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value

Cash and cash equivalents
Money market funds	$	6,870	$	—	$	—		$	6,870
Total	$	6,870	$	—	$	—		$	6,870

Marketable securities
US Treasury securities	$	39,758	*)		$	(27	)	$	39,731
Total	$	39,758	*)		$	(27	)	$	39,731

Short-term deposits
Term bank deposits	$	40,137	$	—	$	—		$	40,137
Total	$	40,137	$	—	$	—		$	40,137

The Company considers all high quality investments purchased with original maturities at the date of purchase greater than three months to be short-term deposits. Investments are available to be used for current operations and are, therefore, classified as current assets even though maturities may extend beyond one year. Cash equivalents, marketable securities and short-term deposits are classified as available for sale and are, therefore, recorded at fair value on the consolidated balance sheet, with any unrealized gains and losses reported in accumulated other comprehensive income (loss), which is reflected as a separate component of stockholders’ equity in the Company’s consolidated balance sheets, until realized. The Company uses the specific identification method to compute gains and losses on the investments. The amortized cost of securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization and accretion is included as a component of financial income, net in the consolidated statement of operations. Cash, cash equivalents, marketable securities and short-term deposits consist of the following (in thousands):



	As of December 31, 2018
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Loss			Fair Value

Cash and cash equivalents
Money market funds	$	2,594	$	—	$	—		$	2,594
Total	$	2,594	$	—	$	—		$	2,594

Marketable securities
US Treasury securities	$	39,776	*)		$	(6	)	$	39,770
Total	$	39,776	*)		$	(6	)	$	39,770

Short-term deposits
Term bank deposits	$	70,438	$	—	$	—		$	70,438
Total	$	70,438	$	—	$	—		$	70,438

*) Represents an amount lower than $1.

Property, Plant and Equipment Estimated Useful Life

Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates:



	%
Computer equipment		33
Office furniture and equipment	14	—	15
Leasehold improvements		Over the shorter of the expected lease term or estimated useful life

Schedule of Derivative Instruments in Statement of Financial Position, Fair Value

Derivative instruments measured at fair value and their classification on the consolidated balance sheets are presented in the following table (in thousands):



	Liabilities as of					Assets as of
	December 31, 2018					December 31, 2017
	Notional Amount		Fair Value			Notional Amount		Fair Value
Foreign Exchange Forward Contract Derivatives in cash flow hedging relationships—included in other current assets and accrued expenses and other short term liabilities	$	75,153	$	(3,628	)	$	1,746	$	163
Foreign exchange forward contract derivatives for monetary items included in accrued expenses and other short term liabilities	$	29,162	$	(18	)	$	—	$	—

Schedule of New Accounting Pronouncements and Changes in Accounting Principles

elect recast financial statement information, which reflects the effect of the adoption of this standard, is set forth below.



	Year ended December 31, 2017
	As Reported			Adjustments			Recast for Adoption of ASC 606
Revenues:
License revenues	$	123,610		$	(3,269	)	$	120,341
Maintenance and service revenues	93,754			1,295			95,049
Total revenues	217,364			(1,974		)	215,390
Cost of revenues	20,873			(159		)	20,714
Gross profit	196,491			(1,815		)	194,676
Operating costs and expenses:
Research and development	47,369			—			47,369
Sales and marketing	135,896			(1,971		)	133,925
General and administrative	26,823			(22		)	26,801
Total operating expenses	210,088			(1,993		)	208,095
Operating loss	(13,597		)	178			(13,419		)
Financial income, net	2,362			—			2,362
Loss before income taxes	(11,235		)	178			(11,057		)
Income taxes	(2,459		)	(328		)	(2,787		)
Net loss	$	(13,694	)	$	(150	)	$	(13,844	)



	Year ended December 31, 2016
	As Reported			Adjustments			Recast for Adoption of ASC 606
Revenues:
License revenues	$	92,873		$	370		$	93,243
Maintenance and service revenues	71,583			1,037			72,620
Total revenues	164,456			1,407			165,863
Cost of revenues	15,843			(106		)	15,737
Gross profit	148,613			1,513			150,126
Operating costs and expenses:
Research and development	36,660			—			36,660
Sales and marketing	107,825			(2,186		)	105,639
General and administrative	19,822			—			19,822
Total operating expenses	164,307			(2,186		)	162,121
Operating loss	(15,694		)	3,699			(11,995		)
Financial expenses, net	(885		)	—			(885		)
Loss before income taxes	(16,579		)	3,699			(12,880		)
Income taxes	(1,131		)	(182		)	(1,313		)
Net loss	$	(17,710	)	$	3,517		$	(14,193	)



	December 31, 2017 Balance Sheet Data
	As Reported			Adjustments			As Adjusted
Assets
Current assets:
Prepaid expenses and other current assets	$	7,130		$	7,216		$	14,346
Long-term assets:
Other assets	$	973		$	6,270		$	7,243

Liabilities and stockholders’ equity
Current liabilities:
Deferred revenues	$	73,891		$	(398	)	$	73,493
Long-term liabilities:
Deferred revenues	$	7,034		$	(426	)	$	6,608
Other liabilities	$	6,561		$	1,246		$	7,807
Stockholders’ equity:
Accumulated deficit	$	(122,454	)	$	13,064		$	(109,390	)



	Statement of Cash Flows Year Ended December 31, 2017
	As Reported			Adjustments			As Adjusted
Cash flows from operating activities
Net loss	$	(13,694	)	$	(150	)	$	(13,844	)
Amortization of deferred commissions	$	—		$	12,591		$	12,591
Deferred commissions	$	—		$	(14,742	)	$	(14,742	)
Deferred revenues	$	18,885		$	1,975		$	20,860
Other long term liabilities	$	(731	)	$	326		$	(405	)
Net cash provided by operating activities	$	16,351		$	—		$	16,351



	Statement of Cash Flows Year Ended December 31, 2016
	As Reported			Adjustments			As Adjusted
Cash flows from operating activities
Net loss	$	(17,710	)	$	3,517		$	(14,193	)
Amortization of deferred commissions	$	—		$	9,525		$	9,525
Deferred commissions	$	—		$	(11,817	)	$	(11,817	)
Deferred revenues	$	13,269		$	(1,409	)	$	11,860
Other long term liabilities	$	147		$	184		$	331
Net cash provided by operating activities	$	7,347		$	—		$	7,347

Schedule of Cash and Cash Equivalents

The following table provides a reconciliation of cash and cash equivalents, and long term restricted cash reported within the consolidated balance sheets that sum to the total of such amounts in the consolidated statements of cash flows:



	December 31, 2018		December 31, 2017		December 31, 2016
Cash and cash equivalents	$	48,707	$	56,689	$	48,315
Long term restricted cash included in other assets	—		547		488
Cash, cash equivalents and long term restricted cash shown in the consolidated statement of cash flows	$	48,707	$	57,236	$	48,803