Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of Income before Income Tax, Domestic and Foreign


c.			Loss before taxes on income is comprised as follows (in thousands):


	Year ended
	December 31,
	2021		2020		2019
Domestic	$	(101,245)	$	(80,086)	$	(82,007)
Foreign	(9,594)		(5,812)		5,631
	$	(110,839)	$	(85,898)	$	(76,376)

Schedule of Components of Income Tax Expense (Benefit)


d.			Taxes on income (loss) are comprised as follows (in thousands):


	Year ended
	December 31,
	2021		2020		2019
Current:
Domestic:
Federal	$	(549)	$	90	$	665
State	145		128		13
Foreign	5,182		8,854		1,619
Total current income tax	$	4,778	$	9,072	$	2,297

Deferred:
Domestic:
Federal	$	43	$	8	$	—
State	6		1		—
Foreign	1,195		(969)		91
Total deferred income tax	$	1,244	$	(960)	$	91
Income tax expense	$	6,022	$	8,112	$	2,388

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2021 and 2020 are as follows (in thousands):


	December 31,
	2021		2020
Deferred tax assets:
Carry forward losses and credits	$	82,530	$	53,221
Deferred revenues	11,628		13,054
Accrued payroll, commissions, vacation	6,867		3,808
Equity compensation	18,469		10,348
Allowance for credit losses	1,711		1,287
Accrued severance pay	391		312
Operating lease liability	14,453		11,302
Other	512		963
Deferred tax assets before valuation allowance	136,561		94,295
Valuation allowance	(118,882)		(77,542)
Deferred tax assets	$	17,679	$	16,753

Deferred tax liability:
Accrued compensation and other accrued expense	$	—	$	(48)
Operating lease right-of-use asset	(12,478)		(8,780)
Convertible senior notes, net	(5,298)		(6,797)
Deferred tax liability	$	(17,776)	$	(15,625)
Net deferred tax asset (liability)	$	(97)	$	1,128

Schedule of Effective Income Tax Rate Reconciliation

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 consolidated statements of operations is as follows (in thousands, except tax rate):


	Year ended December 31,
	2021			2020			2019
Loss before taxes, as reported in the consolidated statements of operations	$	(110,839)		$	(85,898)		$	(76,376)
Statutory tax rate	21		%	21		%	21		%

Theoretical tax benefits on the above amount at the US statutory tax rate	$	(23,276)		$	(18,039)		$	(16,039)
Income tax at rate other than the U.S. statutory tax rate	(2,621)			4,845			(2,508)
Tax advances and non-deductible expenses including equity based compensation expenses	(8,533)			934			(115)
Operating losses and other temporary differences for which valuation allowance was provided	41,340			22,189			22,818
State tax	(2,945)			(2,872)			(3,436)
Impact of rate change	(2,568)			—			401
Change in tax reserve for uncertain tax positions	4,850			1,489			1,247
Other individually immaterial income tax items	(225)			(434)			20
Actual tax expense	$	6,022		$	8,112		$	2,388

Schedule of Unrecognized Tax Benefits Roll Forward


g.			A reconciliation of the beginning and ending amounts of unrecognized tax benefits in the years ended December 31, 2021 and 2020 are as follows (in thousands):


Gross unrecognized tax benefits as of January 1, 2020	$	3,201
Increase in tax position for current year	1,787
Increase in tax position for prior years	979
Decrease in tax position for prior years	(171)
Decrease for lapse of statute of limitations/settlements	(1,106)
Gross unrecognized tax benefits as of December 31, 2020	$	4,690
Increase in tax position for current year	4,335
Increase in tax position for prior years	3,624
Decrease in tax position for prior years	(870)
Decrease for lapse of statute of limitations/settlements	(2,239)
Gross unrecognized tax benefits as of December 31, 2021	$	9,540