INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) before income taxes are as follows (in thousands):

	December 31,
	2022		2021		2020
Domestic (Israel)	$	(225,429)	$	(87,045)	$	14,345
Foreign	(50,945)		25,397		6,853
Total income (loss) before income taxes	$	(276,374)	$	(61,648)	$	21,198

Schedule of Components of Income Tax Expense (Benefit)

The income tax expense (benefit) consists of (in thousands):

	December 31,
	2022		2021		2020
Current:
Domestic	$	(4,063)	$	7,067	$	3,194
Foreign	14,233		4,162		385
Total current	10,170		11,229		3,579
Deferred:
Domestic	6,233		(3,359)		(2,301)
Foreign	(3)		5		(2)
Total deferred	6,230		(3,354)		(2,303)
Total income tax provision	$	16,400	$	7,875	$	1,276

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s effective tax rate to the statutory tax rate of the Company is as follows (in thousands):

	December 31,
	2022			2021			2020
Income (loss) before income taxes	$	(276,374)		$	(61,648)		$	21,198
Israel statutory income tax rate	23		%	23		%	23		%
Theoretical income taxes at statutory rate	(63,566)			(14,179)			4,876
Preferred technological enterprise benefit	24,859			9,378			—
Deferred tax assets for which valuation allowance was provided	36,851			1,194			—
Permanent differences	17,792			16,037			94
Uncertain tax positions	7,580			26			43
Prior year taxes	(4,506)			(135)			—
Subsidiaries taxed at a different tax rate	(2,524)			(4,559)			(1,174)
Utilization of carry forward losses for which valuation allowance was provided	—			(126)			(1,577)
Reduction in valuation allowance	—			—			(999)
Other	(86)			239			13
Income tax	$	16,400		$	7,875		$	1,276
Effective tax rate	NM*			NM*			6.0		%

__________________

*NM = Not meaningful.

Schedule of Deferred Tax Assets and Liabilities

As of December 31, 2022 and 2021, deferred tax assets presented in the balance sheet are comprised as follows (in thousands):

	December 31,
	2022		2021
Carry forward tax losses	$	11,080	$	727
Research and development cost	929		5,179
Compensations and benefits	24,032		486
Right-of-use asset	7,705		—
Initial public offering costs	3,933		—
Provision of loans	2,276		—
Other	528		753
Deferred tax assets before valuation allowance	50,483		7,145
Valuation allowance	39,678		1,194
Deferred tax assets	10,805		5,951
Operating lease liability	(8,116)		—
Capitalized research and development costs	(1,537)		—
Equity method investments	(1,254)		—
Property and equipment	(466)		(270)
Deferred tax liabilities	(11,373)		(270)
Deferred tax assets (liabilities), net	$	(568)	$	5,681

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balances of the total amounts of unrecognized tax benefits is as follows (in thousands):

	December 31,
	2022		2021
Uncertain tax positions, beginning of the year	$	190	$	164
Increase (decrease) in tax positions for prior years	—		(20)
Increases related to current year tax positions	7,593		28
Revaluation	(13)		18
Uncertain tax positions, end of year	$	7,770	$	190