Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

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,
	2023		2022		2021
Domestic	$	(21,491)	$	(75,422)	$	(101,245)
Foreign	(65,427)		(35,393)		(9,594)
	$	(86,918)	$	(110,815)	$	(110,839)

Schedule of Components of Income Tax Expense (Benefit)


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


	Year ended
	December 31,
	2023		2022		2021
Current:
Domestic:
Federal	$	(1,077)	$	3,008	$	(549)
State	2,420		1,314		145
Foreign	12,569		9,123		5,182
Total current income tax	$	13,912	$	13,445	$	4,778

Deferred:
Domestic:
Federal	$	61	$	83	$	43
State	21		13		6
Foreign	4		162		1,195
Total deferred income tax	$	86	$	258	$	1,244
Income tax expense	$	13,998	$	13,703	$	6,022

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2023 and 2022 are as follows (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Carry forward losses and credits	$	35,050	$	57,592
Deferred revenues	26,578		13,376
Accrued payroll, commissions, vacation	8,473		6,852
Equity compensation	33,435		22,474
Allowance for credit losses	867		772
Accrued severance pay	273		294
Operating lease liability	11,786		12,462
Section 174 capitalized costs	59,321		37,964
Other	4,079		2,784
Deferred tax assets before valuation allowance	179,862		154,570
Valuation allowance	(169,474)		(142,563)
Deferred tax assets	$	10,388	$	12,007

Deferred tax liability:

Operating lease right-of-use assets	(9,760)		(10,320)

Other	$	(1,069)	$	(2,042)
Deferred tax liability	$	(10,829)	$	(12,362)
Net deferred tax asset (liability)	$	(441)	$	(355)

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,
	2023			2022			2021
Loss before taxes, as reported in the consolidated statements of operations	$	(86,918)		$	(110,815)		$	(110,839)
Statutory tax rate	21		%	21		%	21		%

Theoretical tax benefits on the above amount at the US statutory tax rate	$	(18,253)		$	(23,271)		$	(23,276)
Income tax at rate other than the U.S. statutory tax rate	6,954			10,404			(2,621)
Non-deductible expenses including equity based compensation expenses	(3,983)			941			(8,533)
Operating losses and other temporary differences for which valuation allowance was provided	27,291			18,201			41,340
Research and development tax credit	(1,516)			—			—
State tax	(1,780)			(1,301)			(2,945)
Impact of rate change	(3,199)			(207)			(2,568)
Change in tax reserve for uncertain tax positions	7,869			7,785			4,850
Other individually immaterial income tax items	615			1,151			(225)
Actual tax expense	$	13,998		$	13,703		$	6,022

Schedule of Unrecognized Tax Benefits Roll Forward


g.			A reconciliation of the beginning and ending amounts of unrecognized tax benefits, including interest and penalties, in the years ended December 31, 2023 and 2022 are as follows (in thousands):


Gross unrecognized tax benefits as of January 1, 2022	$	9,540
Increase in tax position for current year	7,631
Increase in tax position for prior years	830
Decrease in tax position for prior years	(677)

Gross unrecognized tax benefits as of December 31, 2022	$	17,324
Increase in tax position for current year	9,528
Increase in tax position for prior years	1,937
Decrease in tax position for prior years	(3,596)

Gross unrecognized tax benefits as of December 31, 2023	$	25,193