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Stockholders' Equity
 6 Months Ended
Jun. 30, 2021
Stockholders' Equity Note [Abstract]  
Stockholders' Equity STOCKHOLDERS’ EQUITYa. On December 30, 2005, the Company’s board of directors adopted the Varonis Systems, Inc. 2005 Stock Plan (the “2005 Plan”). As of December 31, 2013, the Company had reserved 14,139,957 shares of common stock available for issuance to employees, directors, officers and consultants of the Company and its subsidiaries. The options generally vest over four years. No awards were granted under the 2005 Plan subsequent to December 31, 2013, and no further awards will be granted under the 2005 Plan.
On November 14, 2013, the Company’s board of directors adopted the Varonis Systems, Inc. 2013 Omnibus Equity Incentive Plan (the “2013 Plan”) which was subsequently approved by the Company’s stockholders. The Company initially reserved 5,713,899 shares of common stock for issuance under the 2013 Plan to employees, directors, officers and consultants of the Company and its subsidiaries. The number of shares of common stock available for issuance under the 2013 Plan was increased on January 1, 2016 and has been, and will be, increased on each January 1 thereafter by four percent (4%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase (rounded down to the nearest whole share), but the amount of each increase will be limited to the number of shares of common stock necessary to bring the total number of shares of Common Stock available for grant and issuance under the 2013 Plan to five percent (5%) of the number of shares of common stock issued and outstanding on each December 31. Since January 1, 2016, the share reserve under the 2013 Plan has been automatically increased by an aggregate of 20,388,450 shares. Awards granted under the 2013 Plan generally vest over four years. Any award that is forfeited or canceled before expiration becomes available for future grants under the 2013 Plan.

On October 22, 2020, and as part of the acquisition, the Company’s board of directors approved the assumption of a certain portion of Polyrize Options pursuant to the terms and conditions of the Polyrize 2019 Share Incentive (“Polyrize Plan”) as part of the acquisition.

A summary of employees’ stock options activities during the six months ended June 30, 2021 is as follows:
 
 Six Months Ended
June 30, 2021 (unaudited)
 NumberWeighted
average
exercise price		Aggregate
intrinsic value
(in thousands)		Weighted average
remaining
contractual life
(years)
Options outstanding as of January 1, 20211,022,763 $6.862 $47,417 3.452
Granted— $— 
Exercised(70,371)$5.086 
Forfeited and expired(3,000)$2.077 
Options outstanding as of June 30, 2021
949,392 $7.009 $48,050 3.208
Options exercisable as of June 30, 2021
928,569 $7.039 $46,968 3.087
 
The aggregate intrinsic value in the table above represents the total intrinsic value that would have been received by the option holders had all option holders exercised their options on the last date of the period. Total intrinsic value of options exercised for the six months ended June 30, 2021 was $4,308. As of June 30, 2021, there was $653 of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the 2005 Plan, 2013 Plan and Polyrize Plan. This cost is expected to be recognized over a weighted-average period of approximately 2.255 years.

b. The options outstanding as of June 30, 2021 (unaudited) have been separated into ranges of exercise price as follows:
Range of exercise price
Options outstanding
as of
June 30, 2021
Weighted average remaining contractual life (years)Weighted average exercise price of options outstanding
Options exercisable as of
June 30, 2021
Weighted average remaining contractual life (years)Weighted average exercise price of options exercisable
$2.93322,068 0.663 $2.933 22,068 0.663 $2.933 
$4.157 —5.682260,874 3.566 $4.978 240,051 3.128 $4.905 
$6.503 —8.077499,584 3.038 $7.149 499,584 3.038 $7.149 
 $9.960139,644 3.647 $9.960 139,644 3.647 $9.960 
 $13.28727,222 2.726 $13.287 27,222 2.726 $13.287 
   949,392 3.208 $7.009 928,569 3.087 $7.039 
c.Options issued to consultants:

The Company’s outstanding options granted to consultants for services as of June 30, 2021 (unaudited) were as follows:
 
Number of options outstanding and exercisable as of June 30, 2021
Exercise price
per share		Exercisable
through
August 20137,500 $7.047 August 2023
March 20144,950 $13.287 March 2024
May 20146,000 $7.337 May 2024
November 201410,335 $7.220 November 2024
February 20163,000 $5.623 February 2026
 31,785   
 
d.Restricted stock units:

A summary of restricted stock units and performance stock units for employees, consultants and non-employee directors of the Company for the six months ended June 30, 2021 (unaudited) is as follows:
 
 Number of
shares underlying
outstanding
restricted stock units		Weighted-
average
grant date
fair value
Unvested balance - January 1, 20218,388,963 $23.00 
Granted2,435,253 $65.75 
Vested(3,312,762)$19.85 
Forfeited(355,433)$32.98 
Unvested balance – June 30, 2021
7,156,021 $38.51 
 
As of June 30, 2021, there was $242,624 of total unrecognized compensation cost related to employees and non-employees unvested restricted stock units which is expected to be recognized over a weighted-average period of 2.517 years.
e.2015 Employee Stock Purchase Plan:

On May 5, 2015, the Company’s stockholders approved the Varonis Systems, Inc. 2015 Employee Stock Purchase Plan (the “ESPP”), which the Company’s board of directors had adopted on March 19, 2015. The ESPP became effective as of June 30, 2015. The ESPP allows eligible employees to purchase shares of the Company’s common stock at a discount through payroll deductions of up to 15% of their eligible compensation, at not less than 85% of the fair market value of the Company’s common stock on the first day or last trading day in the offering period, subject to any plan limitations. The Company initially reserved 1,500,000 shares of common stock for issuance under the ESPP. The number of shares available for issuance under the ESPP was increased on January 1, 2016 and has been, and will be, increased each January 1 thereafter, by an amount equal to the lesser of (i) one percent (1%) of the number of shares of common stock issued and outstanding on each December 31 immediately prior to the date of increase, except that the amount of each such increase will be limited to the number of shares of common stock necessary to bring the total number of shares of common stock available for issuance under the ESPP to two percent (2%) of the number of shares of common stock issued and outstanding on each such December 31, or (ii) 1,200,000 shares of common stock. Since January 1, 2016, the share reserve under the ESPP has been automatically increased by an aggregate of 2,539,854 shares. The ESPP will continue in effect until the earlier of (i) the date when no shares of common stock are available for issuance thereunder or (ii) June 30, 2025; unless terminated prior thereto by the Company’s board of directors or compensation committee, each of which has the right to terminate the ESPP at any time.
 
f.Stock-based compensation expense for employees and consultants:
 
The Company recognized non-cash stock-based compensation expense in the consolidated statements of operations as follows (in thousands):
 
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2021202020212020
(unaudited)(unaudited)
Cost of revenues$1,856 $1,354 $3,445 $2,139 
Research and development8,920 5,686 16,078 9,767 
Sales and marketing9,492 6,860 17,234 11,589 
General and administrative5,600 3,723 10,490 7,011 
Total$25,868 $17,623 $47,247 $30,506 

 
g.Follow-on offering:
 
On February 16, 2021, the Company completed a registered public offering of 7,961,538 shares of the Company's common stock, which included 1,038,459 additional optional shares, at a price of $65.00 per share, before underwriting discounts and commissions. The common stock offering generated net proceeds to the Company of approximately $500,034, after deducting $17,466 in underwriting discounts and commissions and offering costs, which have been recorded against the proceeds received from the offering.