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TUFIN SOFTWARE TECHNOLOGIES LTD.
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Date: February 10, 2022
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By:
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/s/ Reuven Kitov
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Reuven Kitov
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CEO & Chairman of the Board of Directors
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Exhibit
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Description
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Revenue:
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• Total revenue was $35.8 million, up 16% compared with the fourth quarter of 2020.
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• Product revenue was $19.1 million, up 27% compared with the fourth quarter of 2020.
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• Maintenance and professional services revenue was $16.8 million, up 5% compared with the fourth quarter
of 2020.
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Gross Profit:
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• GAAP gross profit was $29.7 million, or 83% of total revenue, compared to $25.6 million in the fourth quarter of 2020, or 83% of total revenue.
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• Non-GAAP gross profit was $30.1 million, or 84% of total revenue, compared to $26.1 million in the fourth quarter of 2020, or 84% of total
revenue.
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Operating Income (Loss):
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• GAAP operating loss was $3.1 million, compared to operating loss of $3.5 million in the fourth quarter
of 2020.
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• Non-GAAP operating income was $0.1 million, compared to non-GAAP operating income of $0.4 million in the fourth quarter of 2020.
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Net Loss:
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• GAAP net loss was $4.0 million, or a loss of $0.11 per diluted share, compared to a GAAP net loss of $4.4 million, or $0.12 per diluted
share, in the fourth quarter of 2020.
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• Non-GAAP net loss was $1.6 million, or a loss of $0.04 per diluted share, compared to non-GAAP net loss of $1.0 million, or $0.03 per
diluted share, in the fourth quarter of 2020.
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Revenue:
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• Total revenue was $110.9 million, up 10% compared with 2020.
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• Product revenue was $46.6 million, up 20% compared with 2020.
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• Maintenance and professional services revenue was $64.4 million, up 4% compared with 2020.
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Gross Profit:
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• GAAP gross profit was $87.8 million, or 79% of total revenue, compared to $80.6 million in 2020, or 80% of total revenue.
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• Non-GAAP gross profit was $89.6 million, or 81% of total revenue, compared to $82.6 million in 2020, or 82% of total revenue.
Operating Loss:
• GAAP operating loss was $36.3 million, compared to operating loss of $33.9 million in 2020.
• Non-GAAP operating loss was $22.4 million, compared to non-GAAP operating loss of $18.5 million in 2020.
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Net Loss:
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• GAAP net loss was $36.9 million, or a loss of $0.99 per diluted share, compared to GAAP net loss of $35.4 million, or $0.99 per diluted
share, in 2020.
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• Non-GAAP net loss was $25.8 million, or a loss of $0.69 per diluted share, compared to non-GAAP net loss of $20.6 million, or $0.58 per
diluted share, in 2020.
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Balance Sheet and Cash Flow:
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• Cash flow used in operating activities during the twelve months ended December 31, 2021 was $14.2 million, compared to cash flow used in
operating activities of $17.4 million during the twelve months ended December 31, 2020.
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• Total cash, cash equivalents, restricted cash and marketable securities as of December 31, 2021 were $89.4 million, compared to $104.0
million as of December 31, 2020.
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• Introduced Security Policy Builder App to Marketplace which automates the design of corporate security access policies across the hybrid environment, reducing
complexity and time for organizations.
• Tufin Orchestration Suite Named Best Network Security Solution by the 2021 Tech Ascension Awards.
• Extended Security Policy Management Leadership to SASE which provides unified visibility and simplified policy management for cloud-enabled organizations.
• Named Policy Management Solution of the Year by CyberSecurity Breakthrough Awards.
• Signed largest deal in the past three years.
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• Total revenue between $23.0 and $27.0 million.
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• Non-GAAP operating loss between $11.5 and $8.1 million.
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• Total revenue between $123.0 and $129.0 million.
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• Non-GAAP operating loss between $28.9 and $23.8 million.
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•
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We define non-GAAP gross profit as gross profit excluding share-based compensation expense.
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•
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We define non-GAAP operating income (loss) as operating income (loss) excluding share-based compensation expense, shelf registration costs and one-time expenses associated with the
reorganization of one of our subsidiaries.
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•
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We define non-GAAP net income (loss) as net income (loss) excluding share-based compensation expense, shelf registration costs and one-time expenses associated with the reorganization of
one of our subsidiaries and the tax effect of these non-GAAP adjustments.
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December 31,
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December 31,
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2020
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2021
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Assets
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CURRENT ASSETS:
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Cash and cash equivalents
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58,449
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44,439
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Marketable Securities - short term
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19,586
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18,177
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Accounts receivable (net of allowance for credit losses of $85 on December 31, 2020 and December 31, 2021)
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16,674
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19,156
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Prepaid expenses and other current assets
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7,159
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8,765
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Total current assets
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101,868
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90,537
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NON-CURRENT ASSETS:
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Long-term restricted bank deposits
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3,268
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3,251
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Marketable Securities - long term
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22,705
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23,514
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Property and equipment, net
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4,502
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5,007
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Operating lease assets
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18,802
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16,457
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Deferred costs
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6,348
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8,728
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Deferred tax assets
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1,346
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2,533
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Other non-current assets
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1,512
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1,366
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Total non-current assets
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58,483
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60,856
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Total assets
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160,351
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151,393
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December 31,
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December 31,
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2020
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2021
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LIABILITIES AND SHAREHOLDERS’ EQUITY
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CURRENT LIABILITIES:
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Accounts payable
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4,147
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5,191
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Employee and payroll accrued expenses
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17,985
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21,123
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Other accounts payable
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578
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677
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Operating lease liabilities – current
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3,185
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3,437
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Deferred revenues
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24,940
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28,386
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Total current liabilities
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50,835
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58,814
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NON-CURRENT LIABILITIES:
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Long-term deferred revenues
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12,815
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18,740
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Non-current operating lease liabilities
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20,240
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17,837
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Other non-current liabilities
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1,282
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1,681
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Total non-current liabilities
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34,337
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38,258
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Total liabilities
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85,172
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97,072
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COMMITMENTS AND CONTINGENCIES
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SHAREHOLDERS’ EQUITY:
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Ordinary shares of NIS 0.015 par value; 150,000,000 shares authorized at December 31, 2020 and December 31, 2021; 35,972,470 and 37,851,120 shares issued and
outstanding at December 31, 2020 and December 31, 2021;
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148
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157
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Additional paid-in capital
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178,864
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195,041
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Accumulated other comprehensive income (loss)
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5
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(113
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Accumulated deficit
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(103,838
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(140,764
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TOTAL SHAREHOLDERS’ EQUITY
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75,179
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54,321
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TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
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160,351
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151,393
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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December 31,
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December 31,
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2020
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2021
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2020
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2021
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Revenues:
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Product
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14,985
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19,081
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38,690
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46,593
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Maintenance and professional services
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15,967
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16,755
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62,144
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64,356
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Total revenues
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30,952
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35,836
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100,834
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110,949
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Cost of revenues:
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Product
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1,204
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1,116
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2,940
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3,291
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Maintenance and professional services
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4,150
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4,984
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17,307
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19,821
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Total cost of revenues
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5,354
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6,100
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20,247
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23,112
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Gross profit
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25,598
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29,736
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80,587
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87,837
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Operating expenses:
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Research and development
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8,696
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9,856
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34,978
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39,584
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Sales and marketing
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15,031
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16,691
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59,484
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60,378
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General and administrative
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5,332
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6,291
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20,050
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24,204
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Total operating expenses
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29,059
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32,838
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114,512
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124,166
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Operating loss
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(3,461
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)
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(3,102
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(33,925
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(36,329
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)
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Financial income (expense), net
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(562
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)
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(478
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114
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(1,104
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Loss before taxes on income
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(4,023
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(3,580
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(33,811
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(37,433
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Taxes on income
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(379
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)
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(452
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(1,595
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507
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Net loss
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(4,402
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(4,032
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(35,406
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(36,926
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Basic and diluted net loss per ordinary share
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(0.12
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(0.11
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(0.99
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(0.99
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Weighted average number of shares used in computing net loss per ordinary share- basic and diluted
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35,833
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37,807
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35,674
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37,180
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Share-based Compensation Expense:
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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December 31,
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December 31,
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2020
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2021
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2020
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2021
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Cost of revenues
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488
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358
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2,024
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1,812
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Research and development
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1,010
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659
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4,437
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3,867
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Sales and marketing
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1,308
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1,035
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4,635
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3,772
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General and administrative
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1,035
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1,130
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3,929
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4,445
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Total share-based compensation expense
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3,841
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3,182
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15,025
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13,896
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Year Ended
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December 31,
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2020
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2021
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CASH FLOWS FROM OPERATING ACTIVITIES:
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Net loss
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(35,406
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(36,926
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Adjustment to reconcile net loss to net cash used in operating activities:
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Depreciation
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1,523
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1,904
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Share-based compensation
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15,025
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13,896
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Amortization of premium and accretion of discount on marketable securities, net
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95
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308
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Exchange rate differences on cash, cash equivalents and restricted cash
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(1,146
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)
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179
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Change in operating assets and liabilities items:
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Accounts receivable, net
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(452
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)
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(2,482
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Prepaid expenses and other current assets
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(2,640
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)
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(2,174
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)
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Deferred costs
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(665
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)
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(2,344
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)
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Deferred taxes
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313
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(1,187
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)
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Other non-current assets
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62
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146
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Accounts payable
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(247
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)
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1,044
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Employee and payroll accrued expenses
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3,275
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3,627
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Other accounts payable and non-current liabilities
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(416
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)
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202
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Net change in operating lease accounts
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1,048
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194
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Deferred revenues
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2,192
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9,371
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Net cash used in operating activities
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(17,439
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)
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(14,242
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)
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CASH FLOWS FROM INVESTING ACTIVITIES:
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Purchase of fixed assets
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(2,070
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)
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(1,678
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)
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Investment in marketable securities
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(44,381
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)
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(29,227
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)
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Proceeds from maturities of marketable securities
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2,069
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29,414
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Net cash used in investing activities
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(44,382
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)
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(1,491
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)
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CASH FLOWS FROM FINANCING ACTIVITIES:
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Proceeds from exercise of stock options
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1,376
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2,374
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Changes in proceeds from withholdings related to stock plans
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(713
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)
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(489
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)
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Net cash provided by financing activities
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663
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1,885
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Effect of exchange rate changes on cash, cash equivalents and restricted cash
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1,146
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(179
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)
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DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH
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(60,012
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)
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(14,027
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)
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT BEGINNING OF YEAR
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121,729
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61,717
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CASH, CASH EQUIVALENTS AND RESTRICTED CASH AT END OF YEAR
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61,717
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47,690
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Reconciliation of Gross Profit to Non-GAAP Gross Profit:
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Three Months Ended
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Year Ended
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December 31,
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December 31,
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December 31,
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December 31,
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2020
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2021
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2020
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2021
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Gross profit
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25,598
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29,736
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80,587
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87,837
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Plus:
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Share-based compensation
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488
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358
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2,024
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1,812
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Non-GAAP gross profit
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26,086
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30,094
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82,611
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89,649
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Reconciliation of Operating Loss to Non-GAAP Operating Income (Loss):
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||||||||||||||||
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Three Months Ended
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Year Ended
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||||||||||||||
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December 31,
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December 31,
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December 31,
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December 31,
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||||||||||||
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2020
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2021
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2020
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2021
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Operating loss
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(3,461
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)
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(3,102
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)
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(33,925
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)
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(36,329
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)
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Plus:
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Share-based compensation
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3,841
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3,182
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15,025
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13,896
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Shelf registration costs
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-
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-
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126
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-
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One-time reorganization charges
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-
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-
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322
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-
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-
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-
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-
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-
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Non-GAAP Operating income (loss)
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380
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80
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(18,452
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)
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(22,433
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)
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Reconciliation of Net Loss to Non-GAAP Net Loss:
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||||||||||||||||
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Three Months Ended
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Year Ended
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||||||||||||||
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December 31,
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December 31,
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December 31,
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December 31,
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||||||||||||
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2020
|
2021
|
2020
|
2021
|
||||||||||||
Net loss
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(4,402
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)
|
(4,032
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)
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(35,406
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)
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(36,926
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)
|
||||||||
Plus:
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||||||||||||||||
Share-based compensation
|
3,841
|
3,182
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15,025
|
13,896
|
||||||||||||
Shelf registration costs
|
-
|
-
|
126
|
-
|
||||||||||||
One-time reorganization charges
|
-
|
-
|
322
|
-
|
||||||||||||
Taxes on income related to non-GAAP adjustments
|
(416
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)
|
(713
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)
|
(701
|
)
|
(2,790
|
)
|
||||||||
Non-GAAP Net loss
|
(977
|
)
|
(1,563
|
)
|
(20,634
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)
|
(25,820
|
)
|
||||||||
Non-GAAP net loss per share - basic and diluted
|
(0.03
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)
|
(0.04
|
)
|
(0.58
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)
|
(0.69
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)
|
||||||||
Weighted average number of shares – basic and diluted
|
35,833
|
37,807
|
35,674
|
37,180
|