Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

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,
	2024		2023		2022
Domestic	$	(19,840)	$	(21,491)	$	(75,422)
Foreign	(63,167)		(65,427)		(35,393)
	$	(83,007)	$	(86,918)	$	(110,815)

Schedule of Components of Income Tax Expense (Benefit)


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


	Year ended
	December 31,
	2024		2023		2022
Current:
Domestic:
Federal	$	15	$	(1,077)	$	3,008
State	1,511		2,420		1,314
Foreign	11,214		12,569		9,123
Total current income tax	$	12,740	$	13,912	$	13,445

Deferred:
Domestic:
Federal	$	62	$	61	$	83
State	12		21		13
Foreign	(56)		4		162
Total deferred income tax	$	18	$	86	$	258
Income tax expense	$	12,758	$	13,998	$	13,703

Schedule of Deferred Tax Assets and Liabilities

Significant components of our deferred tax assets and liabilities as of December 31, 2024 and 2023 are as follows (in thousands):


	December 31,
	2024		2023
Deferred tax assets:
Carry forward losses and credits	$	42,218	$	35,050
Deferred revenues	—		33,408
Accrued payroll, commissions, vacation	14,409		8,473
Equity compensation	36,169		33,435
Allowance for credit losses	2,521		867
Accrued severance pay	240		273
Operating lease liabilities	7,226		11,786
Section 174 capitalized costs	91,706		59,321
Other	5,367		4,079
Deferred tax assets before valuation allowance	199,856		186,692
Valuation allowance	(181,124)		(169,474)
Deferred tax assets	$	18,732	$	17,218

Deferred tax liability:
Deferred commissions	$	(12,548)	$	(6,830)
Operating lease right-of-use assets	(5,373)		(9,760)

Other	(1,245)		(1,069)
Deferred tax liability	$	(19,166)	$	(17,659)
Net deferred tax asset (liability)	$	(434)	$	(441)

Schedule of Unrecognized Tax Benefits Roll Forward

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,
	2024			2023			2022
Loss before taxes, as reported in the consolidated statements of operations	$	(83,007)		$	(86,918)		$	(110,815)
Statutory tax rate	21		%	21		%	21		%

Theoretical tax benefits on the above amount at the US statutory tax rate	$	(17,431)		$	(18,253)		$	(23,271)
Income tax at rate other than the U.S. statutory tax rate	3,207			6,954			10,404
Non-deductible expenses including equity based compensation expenses	(339)			(3,983)			941
Operating losses and other temporary differences for which valuation allowance was provided	12,096			27,291			18,201
Research and development tax credit	(2,525)			(1,516)			—
State tax	(1,204)			(1,780)			(1,301)
Impact of rate change	999			(3,199)			(207)
Change in tax reserve for uncertain tax positions	17,083			7,869			7,785
Other individually immaterial income tax items	872			615			1,151
Actual tax expense	$	12,758		$	13,998		$	13,703


g.			A reconciliation of the beginning and ending amounts of unrecognized tax benefits, including interest and penalties, in the years ended December 31, 2024 and 2023 are as follows (in thousands):


Gross unrecognized tax benefits as of January 1, 2023	$	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
Increase in tax position for current year	10,487
Increase in tax position for prior years	7,088
Decrease in tax position for prior years	(287)
Decrease for lapse of statute of limitations/settlements	(205)
Gross unrecognized tax benefits as of December 31, 2024	$	42,276