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Leases

12 Months Ended

Dec. 31, 2022

7. Leases

We have non-cancelable operating leases for our corporate offices in Tel Aviv, Israel and in New York, New York in the United States. The leases for these facilities in Tel Aviv and New York expire in 2031 and 2029, respectively and we have options to renew these leases through 2036 and 2034, respectively. These renewal options are excluded from the calculation of operating lease ROU assets and operating lease liabilities. We sublease a portion of our office space in Tel Aviv.

The components of operating lease cost for the year ended December 31, 2022 were as follows:


	Year Ended December 31, 2022
Operating lease cost	$	6,140
Variable lease cost	1,257
Short-term lease cost	304
Sublease income	(786)
Total operating lease cost	$	6,915

Our lease costs prior to the adoption of ASC 842 were $5.9 million and $4.2 million for the years ended December 31, 2021 and 2020, respectively. Sublease income was $0.1 million and $0.9 million for the years ended December 31, 2021 and 2020, respectively.

As of December 31, 2022, the weighted average remaining lease term and the weighted average discount rate for our operating leases were 7.4 years and 4.6%, respectively.

The future minimum lease payments included in the measurement of our operating lease liabilities as of December 31, 2022, were as follows:


	Amount
Year Ending December 31,
2023	$	6,353
2024	5,976
2025	5,941
2026	5,986
2027	6,031
Thereafter	13,738
Total undiscounted lease payments	44,025
Less: imputed interest	(6,609)
Present value of operating lease liabilities	$	37,416

The following table presents our operating lease ROU assets by geographic region:


	As of December 31,
	2022		2021
	(in thousands)
Israel	$	22,560	$	—
United States	12,598		—
Total operating lease right-of-use assets	$	35,158	$	—

The minimum rental payments under operating leases as of December 31, 2021 were as follows:


	Amount
	(in thousands)
Year Ending December 31,
2022	$	6,975
2023	6,853
2024	6,648
2025	6,403
2026	6,448
Thereafter	22,631
Total	$	55,958

Excluded from the tables above is an unsecured and undated promissory note issued in December 2020 in connection with the execution of a lease agreement for an amount of $3.0 million and $3.3 million as of December 31, 2022 and 2021, respectively. The promissory note may only be withdrawn in the event of a material and fundamental breach of the lease agreement. The promissory note expires three months after the lease termination date. As of December 31, 2022 and 2021, we were in full compliance of the terms and conditions of the promissory note, and the promissory note has not been withdrawn.

Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Schedules of Concentration of Risk, by Risk Factor

The following table summarize our merchants that represented 10% or more of Accounts receivable, net and Revenue:


	Accounts Receivable, Net				Revenue
	As of December 31,				Year Ended December 31,
	2022		2021		2022		2021		2020
Customer A	22	%	32	%	13	%	16	%	18	%
Customer B	*		*		*		*		10	%
Customer C	*		11	%	*		*		*

________________

*Represents less than 10%

Property, Plant and Equipment

The estimated useful lives of our property and equipment are as follows:


Computer equipment			3 years
Furniture and office equipment			5 – 7 years
Leasehold improvements			Shorter of remaining lease term or estimated useful life

Property and Equipment, Net

Property and equipment, net consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Computer equipment	$	6,912	$	6,104
Furniture and office equipment	2,531		2,216
Leasehold improvements	16,576		12,825
Property and equipment, gross	26,019		21,145
Less: accumulated depreciation and amortization	(7,433)		(4,177)
Property and equipment, net	$	18,586	$	16,968

Consolidated Balance Sheet Components

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Consolidated Balance Sheet Components

6. Consolidated Balance Sheet Components

Property and Equipment, Net

Property and equipment, net consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Computer equipment	$	6,912	$	6,104
Furniture and office equipment	2,531		2,216
Leasehold improvements	16,576		12,825
Property and equipment, gross	26,019		21,145
Less: accumulated depreciation and amortization	(7,433)		(4,177)
Property and equipment, net	$	18,586	$	16,968

Depreciation and amortization expenses were $3.4 million, $1.8 million, and $1.3 million for the years ended December 31, 2022, 2021, and 2020, respectively.

The following table presents our property and equipment, net of depreciation and amortization, by geographic region:


	As of December 31,
	2022		2021
	(in thousands)
Israel	$	16,671	$	14,868
United States	1,796		1,997
Rest of world	119		103
Total property and equipment, net	$	18,586	$	16,968

Accrued Expenses and Other Current Liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Accrued expenses	$	6,175	$	7,557
Customer credits	5,388		3,462
Derivative financial instruments	2,397		61
Other	1,853		2,226
Accrued expenses and other current liabilities	$	15,813	$	13,306

Other Liabilities, Noncurrent

Other liabilities, noncurrent consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Other tax liabilities	$	8,734	$	2,721
Deferred rent	—		6,580
Other	—		58
Other liabilities, noncurrent	$	8,734	$	9,359

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

2. Summary of Significant Accounting Policies

Basis of Presentation

The accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, and include the accounts of Riskified Ltd. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform to the current period presentation.

Initial Public Offering

On August 2, 2021, we completed our initial public offering (“IPO”), in which we issued and sold 19,925,000 shares of our Class A ordinary shares at an offering price of $21.00 per share, including 2,625,000 shares of our Class A ordinary shares pursuant to the exercise in full of the underwriters’ option to purchase additional shares. We received net proceeds of $386.6 million after deducting underwriting discounts and commissions of $26.2 million, and other issuance costs of $5.7 million.

Immediately prior to the closing of the IPO, 962,940 shares of Series E-1 convertible preferred shares were issued upon the exercise of the Series E-1 convertible preferred share warrants. In addition, all convertible preferred shares then outstanding automatically converted into 32,291,470 shares of our Class A ordinary shares.

Prior to the IPO, deferred offering costs, which consist primarily of accounting, legal and other fees related to our IPO, were capitalized within other assets, noncurrent in the consolidated balance sheets. Upon the consummation of the IPO, $5.7 million of deferred offering costs were reclassified into shareholders’ equity as an offset against IPO proceeds.

Recapitalization

On July 28, 2021, we adopted new Articles of Association (“AoA”), in which, among other things, we implemented, upon the closing of the IPO:

(i) a dual class ordinary share structure pursuant to which we have two classes of ordinary shares: Class A ordinary shares and Class B ordinary shares. The rights of the holders of our Class A ordinary shares and Class B ordinary shares are identical, except with respect to voting, conversion and transfer rights. Class A ordinary shareholders are entitled to one vote per share and Class B ordinary shareholders are entitled to ten votes per share. The dual class ordinary share structure concentrates voting power with our pre-IPO shareholders. Holders of Class A ordinary shares and Class B ordinary shares will vote together as a single class on all matters (including the election of directors) submitted to a vote of our shareholders, unless otherwise required by law or our amended and restated articles of association;

(ii) the elimination of the par value per ordinary share; and

(iii) a two-for-one reverse share split of our Class A ordinary shares (the “Reverse Share Split”).

Immediately after the effectiveness of the Reverse Share Split, we issued and distributed Class B ordinary shares to holders of the Class A ordinary shares on a two-for-one ratio, such that each holder of Class A ordinary shares received two Class B ordinary shares for each Class A ordinary share (the “Additional Class B Issuance”).

The historical financial statements have not been retroactively adjusted for the (i) dual class structure, (ii) elimination of par value, and (iii) Additional Class B Issuance. As a result, all information associated with these items related to our ordinary shares and their associated par value, convertible preferred shares and their associated par value, share options, restricted share units (“RSUs”), and warrants to purchase convertible preferred shares are being presented prospectively.

All information related to our ordinary shares and their associated par value, convertible preferred shares and their associated par value, share options, RSUs, and warrants to purchase convertible preferred shares have been retroactively adjusted to give effect to the Reverse Share Split for all periods presented.

Use of Estimates

The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the estimated customer life on deferred contract costs, the allowance for doubtful accounts, the fair value of financial assets and liabilities including the fair value of derivatives, the useful lives of property and equipment, capitalization and estimated useful life of internal-use software, share-based compensation including the determination of the fair value of our ordinary shares (prior to IPO), the fair value of indemnification guarantees and the associated systematic and rational amortization method, provisions for chargebacks, the fair value of convertible preferred share warrant liabilities and convertible preferred share tranche rights (prior to IPO), incremental borrowing rate (“IBR”) used for operating lease right-of-use (“ROU”) assets and operating lease liabilities, and the valuation of deferred tax assets and uncertain tax positions. We base our estimates on assumptions, both historical and forward-looking, trends, and various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.

As of the date of issuance of these consolidated financial statements, we are not aware of any specific event or circumstance related to COVID-19 that would require us to update our estimates or judgments or adjust the carrying value of our assets or liabilities. As events continue to evolve and additional information becomes available, our estimates and assumptions may change materially in future periods. Refer to “Operating and Financial Review and Prospects—Factors Affecting Our Performance” included elsewhere in this Annual Report for more information regarding the impact of COVID-19 on our business.

Foreign Currency

The U.S. dollar is our functional currency and the functional currency of a majority of our subsidiaries.

For the subsidiaries where the U.S. dollar is the functional currency, monetary assets and liabilities denominated in currencies other than the U.S. dollar are remeasured into U.S. dollars at exchange rates in effect at the end of each period. Foreign currency transaction gains and losses from these remeasurements are recognized in other income (expense), net, within the consolidated statements of operations. Foreign currency transactions resulted in net gains of $2.5 million, $0.2 million, and $2.1 million, for the years ended December 31, 2022, 2021, and 2020, respectively.

For subsidiaries where the functional currency is not the U.S. dollar, we use the period-end exchange rates to translate assets and liabilities, the average monthly exchange rates to translate revenue and expenses, and historical exchange rates to translate shareholders’ equity, into U.S. dollars. We record translation gains and losses in accumulated other comprehensive profit (loss) as a component of shareholders’ equity in the consolidated balance sheets.

Concentration of Risks

Our financial instruments that are exposed to concentrations of credit risk primarily consist of cash and cash equivalents, restricted cash, short-term deposits, accounts receivable and derivative financial instruments. We maintain our cash, cash equivalents, restricted cash, and short-term deposits with high-quality financial institutions mainly in the United States and Israel, the composition of which are regularly monitored by us. We have not experienced any material losses in such accounts. Our derivatives expose us to credit risk to the extent that the counterparties may be unable to meet the terms of the agreement. We seek to mitigate such risk by limiting our counterparties to major financial institutions and by spreading the risk across a number of major financial institutions. In addition, the potential risk of loss with any one counterparty resulting from this type of credit risk is monitored on an ongoing basis.

Our customers are online merchants. For accounts receivable, we are exposed to credit risk in the event of nonpayment by online merchants to the extent the amounts are recorded in the consolidated balance sheets. We extend different levels of credit to online merchants and maintain reserves for potential credit losses based upon the expected collectability of accounts receivable. We manage credit risk related to our merchants by performing periodic evaluations of credit worthiness and consumer indebtedness and applying other credit risk monitoring procedures.

The following table summarize our merchants that represented 10% or more of Accounts receivable, net and Revenue:


	Accounts Receivable, Net				Revenue
	As of December 31,				Year Ended December 31,
	2022		2021		2022		2021		2020
Customer A	22	%	32	%	13	%	16	%	18	%
Customer B	*		*		*		*		10	%
Customer C	*		11	%	*		*		*

________________

*Represents less than 10%

Cash, Cash Equivalents, and Restricted Cash

Cash and cash equivalents consist of cash in banks and bank deposits. We consider all highly liquid investments, with an original maturity of three months or less at the date of purchase, to be cash equivalents. We maintain certain cash amounts restricted as to our withdrawal or use. Our restricted cash primarily consists of cash deposits to back letters of credit related to certain operating leases.

Short-Term Deposits

Short-term deposits consist of bank deposits with original maturities between 4 and 12 months and that mature within 12 months of the balance sheet date. Short-term deposits are reported at cost.

Fair Value Measurements

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. We measure financial assets and liabilities at fair value for each reporting period using a fair value hierarchy which requires us to maximize the use of observable inputs and minimize the use of unobservable inputs. A financial

instrument’s classification within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Three levels of inputs may be used to measure fair value:

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 2 – Inputs other than Level 1 that are observable, either directly or indirectly, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Financial instruments consist of cash and cash equivalents, restricted cash, short-term deposits, accounts receivables, derivative financial instruments, accounts payables, accrued liabilities, indemnification guarantees. Cash and cash equivalents, short-term deposits, restricted cash, accounts receivable, accounts payable, and accrued liabilities are stated at their carrying value, which approximates fair value due to the short time to the expected receipt or payment date. Derivative financial instruments are stated at fair value on a recurring basis as disclosed in Note 4 below.

We record indemnification guarantees that we issue upon approving a transaction at fair value when issued using the income approach. To measure this guarantee, we consider the premium that would have been received for the same guarantee if it were issued in a stand-alone transaction. The fair value of these indemnification guarantees is determined based on historical chargeback claims, a risk premium fee that would be required for a third party to assume this liability, and an appropriate discount rate due to time. Historical chargeback guarantee claims are not readily observable in the marketplace and are generally classified as Level 3 inputs. Indemnification guarantees are recorded at fair value when issued and not remeasured to fair value each period. Refer to Note 8 below for more information regarding indemnification guarantees.

Because of the inherent uncertainty of valuation, the estimated fair value of our financial instruments, in particular our indemnification guarantees, may differ significantly from the values that would have been used had a ready market for the financial instruments existed, and the differences could be material to our consolidated financial statements. Refer to Item 5. “Operating and Financial Review and Prospects — Critical Accounting Policies and Estimates.”

Accounts Receivable, Net

Accounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the adequacy of the allowance for doubtful accounts based on a combination of factors, including an assessment of the current merchant’s credit worthiness, the age of the balance, the nature and size of the merchant, the financial condition of the merchant, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified. The allowance for doubtful accounts was $0.5 million and $0.6 million as of December 31, 2022 and 2021, respectively.

Derivative Financial Instruments

We enter into derivative instruments to manage risks relating to our ongoing business operations. We enter into foreign currency forward and option contracts with financial institutions to protect against foreign exchange risks attributable to our exposure to changes in the exchange rates of (a) the New Israeli Shekel (“NIS”) against the U.S. dollar and (b) the Euro against the U.S. dollar. Our primary objective in entering into these contracts is to reduce the volatility of forecasted earnings and cash flows associated with changes in foreign currency exchange rates. We do not use derivative instruments for trading or speculative purposes.

We account for our derivative instruments as either assets or liabilities and carry them at fair value. The accounting for changes in the fair value of a derivative depends on the intended use of the derivative and the resulting designation. Derivative instruments are recorded as either prepaid expenses and other current assets or accrued expenses and other current liabilities in the consolidated balance sheets. We record changes in the fair value of derivative instruments that are designated as hedging instruments in accumulated other comprehensive profit (loss) in the consolidated balance sheets, until the forecasted transaction occurs upon which we reclassify the related gain or loss on the derivative to the same financial statement line item in the consolidated statements of operations to which the derivative relates.

Other derivatives not designated as hedging instruments consist primarily of foreign currency forward contracts that we use to hedge monetary assets or liabilities denominated in currencies other than the functional currency of a subsidiary. Changes in the fair value on these contracts, as well as the related costs, are recognized in Other income (expense), net, along with the foreign currency gains and losses on the related monetary assets and liabilities. Refer to Note 5 for additional information.

Property and Equipment, Net

Property and equipment are stated at cost net of accumulated depreciation and amortization. Depreciation and amortization are calculated using the straight-line method over the estimated useful lives of the respective assets. Expenditures for maintenance and repairs are expensed as incurred.

The estimated useful lives of our property and equipment are as follows:


Computer equipment			3 years
Furniture and office equipment			5 – 7 years
Leasehold improvements			Shorter of remaining lease term or estimated useful life

Capitalized Software Costs

Costs related to software acquired, developed, or modified solely to meet our internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary project stage and during the post implementation operational stage are expensed as incurred. Eligible costs incurred during the application development stage of the project are capitalized. Capitalized software development costs are recorded as part of Other assets, noncurrent in the consolidated balance sheets. Maintenance costs are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is four years and are recorded in cost of revenue in the consolidated statements of operations. As of December 31, 2022 and 2021, we have capitalized $5.0 million, net and $3.5 million, net, respectively, of qualifying software development costs. Amortization expenses related to capitalized software costs were $0.7 million, $0.4 million, and zero for the years ended December 31, 2022, 2021, and 2020, respectively.

Cloud Computing Arrangement Implementation Costs

We capitalize certain implementation costs incurred in a cloud computing arrangement during the application development stage pursuant to Accounting Standards Codification, or ASC, 350-40, Internal Use Software. These costs are amortized over the term of the hosting arrangement on a straight-line basis, and are included within operating expenses in the consolidated statements of operations. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. These capitalized costs are included in Other assets, noncurrent in the consolidated balance sheets. We have capitalized $0.2 million and $0.3 million of qualifying cloud computing arrangement implementation costs as of December 31, 2022 and 2021, respectively. Amortization expenses related to capitalized cloud computing arrangement implementation costs were

$0.2 million, $0.2 million, and $0.1 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Leases

Our lease accounting policy under ASC Topic 840, “Leases” until January 1, 2022, prior to the adoption of the new lease guidance was as follows:

Leases are reviewed and classified as either capital or operating leases at their inception. In certain lease agreements, we may receive renewal or expansion options, rent holidays, and other incentives. For operating leases, we recognize lease costs on a straight-line basis once we take control of the space, without regard to deferred payment terms such as rent holidays that defer the commencement date of required payments. Additionally, incentives received are treated as a reduction of costs over the term of the agreement.

On January 1, 2022, we adopted the new lease guidance for our operating lease agreements. Refer to Note 7 below for additional information. Our lease accounting policy under ASC Topic 842, “ASC 842” from January 1, 2022, following the adoption of the new lease guidance is as follows:

We determine if an arrangement meets the definition of a lease at the inception of the lease, and leases are classified at commencement as either operating or finance leases. We do not have any finance leases. Operating lease ROU assets represent the right to use an underlying asset for the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease agreement. Operating lease ROU assets are measured based on the discounted present value of the remaining lease payments, initial direct costs incurred and prepaid lease payments, excluding lease incentives received prior to lease commencement. Operating lease liabilities are measured based on the discounted present value of the remaining lease payments. The discounted present value of remaining lease payments is computed using our IBR based on the information available at the commencement date of the lease as our leases generally do not provide an implicit rate. Our IBR was estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset was located.

The lease term may include options to extend or terminate the lease when it is reasonably certain that we would exercise that option. We made an accounting policy election for lease agreements with a term of 12 months or less and do not recognize operating lease ROU assets and operating lease liabilities in respect of those agreements. Payments under our lease agreements are primarily fixed; however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease ROU assets and operating lease liabilities. Variable lease payments are mainly comprised of common area maintenance, utilities, real estate taxes, and payments affected by changes in indexes.

We elected the practical expedient to not separate lease and non-lease components for our leases.

We sublease certain office spaces to third parties. Operating sublease income is recognized on a straight-line basis over the term of the agreement.

Impairment of Long-Lived Assets

We evaluate the recoverability of long-lived assets, including property and equipment, for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be fully recoverable. Such events and changes may include significant changes in performance relative to expected operating results, significant changes in asset use, significant negative industry or economic trends, and changes in our business strategy. Recoverability of these assets is measured by comparing the carrying amounts with the future undiscounted cash flows that the assets are expected to generate. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. During the current period, we impaired an immaterial

amount of assets related to the Deco product due to the decision to wind-down the product. Other than as previously described, we determined that there were no material events or changes in circumstances that indicated that our long-lived assets were impaired during the periods presented.

Indemnification Guarantees

We provide contractual assurances around the accuracy of our approvals so that our merchants can confidently automate a transaction’s execution. Our contracts obligate us to stand ready to indemnify our merchants for any costs incurred from a chargeback due to fraud (i.e., the “guarantee obligation”). Accordingly, we account for the guarantee obligation as an indemnification under the general provisions of ASC 460, Guarantees, or ASC 460, and recognize a liability at fair value upon approving a transaction at an amount that represents what we would need to pay a third party to relieve ourselves from this obligation. This liability is presented as Guarantee obligations on the consolidated balance sheets and will be released to revenue in the consolidated statements of operations.

We are relieved from our guarantee obligation at the earlier of (a) paying a chargeback or (b) expiration of the guarantee which is generally six months from the date of the transaction. We recognize the guarantee obligation as revenue through a systematic and rational amortization method over a six-month period that is representative of our historical pattern of being released from risk under the guarantee obligation.

While no individual transaction is probable of a chargeback occurring, when we analyze a portfolio of transactions, if we believe a future chargeback is probable and reasonably estimated, we accrue a liability and an associated expense through cost of revenue in accordance with ASC 450, Contingencies, or ASC 450. Inputs and assumptions used by management to calculate this provision are based on the transactions approved and the features of those transactions as well as historical information about chargebacks. It is possible that the estimate may change in the near term, and the effect of the change could be material. These liabilities are recorded within Provision for chargebacks, net on the consolidated balance sheets and will be reduced by credits issued or cash paid to merchants. Refer to Note 8 below or Item 5. “Operating and Financial Review and Prospects — Critical Accounting Policies and Estimates” for additional information.

Ordinary Share Warrants

Prior to IPO, warrants to purchase our Series B/C and E-1 convertible preferred shares were recorded as a liability at fair value on our consolidated balance sheets as the underlying convertible preferred shares were contingently redeemable, upon a deemed liquidation event that is outside of our control, and therefore could have obligated us to transfer assets.

The Series B/C convertible preferred share warrants were remeasured to fair value at the end of each reporting period with changes in fair value recognized as a gain or loss within Other income (expense), net in the consolidated statements of operations until the earlier of the exercise of the warrants, the expiration of the warrants, or upon the completion of a qualified IPO. Upon IPO, the Series B/C convertible preferred share warrants were converted to warrants to purchase ordinary shares, and the then outstanding liability was reclassified to additional paid-in capital in the consolidated balance sheets. The warrants to purchase ordinary shares may be exercised any time prior to, and shall expire upon, the earlier of (a) April 29, 2025 or (b) immediately prior to the consummation of certain deemed liquidation events.

The Series E-1 convertible preferred share warrants were remeasured to fair value at the end of each reporting period with changes in fair value recognized as a gain or loss within Other income (expense), net in the consolidated statements of operations until the earlier of the exercise of the warrants, the expiration of the warrants, or the completion of a deemed liquidation event, including a qualified IPO. Upon IPO, the Series E-1 convertible preferred share warrants were automatically exercised.

In conjunction with a SaaS Agreement entered into in 2021, we issued a warrant to a customer to purchase ordinary shares. The warrant vests annually, in equal amounts, over a five-year period commencing on the effective date of the SaaS Agreement. The warrant is accounted for as consideration payable to a customer under ASC 606 and will reduce revenue as we recognize revenue under the SaaS Agreement over a period of five years.

Revenue Recognition

We primarily generate revenue by granting merchants access to our eCommerce risk intelligence platform and reviewing and approving eCommerce transactions for legitimacy. Revenue is also generated from the issuance of indemnification guarantees as noted above within “Indemnification Guarantees”. For the majority of our revenue, merchants pay us a percentage of every dollar of the gross merchandise volume, or GMV, that we approve and guarantee on their behalf. Our fee, as determined by our risk-based pricing model, in these situations is a percentage of the GMV of our merchants’ orders that we approve, prior to taxes or other charges. These arrangements do not provide merchants with the right to take possession of our software platform. Rather, merchants are granted continuous access to our software platform under a hosting arrangement over the contractual period.

As noted above within “Indemnification Guarantees”, our contracts with our merchants obligate us to review eCommerce transactions for legitimacy as well as to stand ready to indemnify merchants for costs incurred associated with an approved transaction in the event of a chargeback due to fraud. Our fee is allocated between the consideration owed to us for our fraud review service and the consideration owed to us for issuing indemnification guarantees which are recorded at fair value. Consideration allocated to fraud review is recognized as revenue over the contract period in the month that the transactions are approved while consideration allocated to the indemnification guarantee is recognized as we are released from risk under the guarantee, generally over a six-month period from the date of the transaction.

We present revenue net of cancellations and adjustments for minimum service level agreements.

In accordance with ASC 606, revenue is recognized when a customer obtains control of promised products. The amount of revenue recognized reflects the consideration that we expect to receive in exchange for these products. To achieve the core principle of this standard, we applied the following five steps:

1.Identification of the contract, or contracts, with the merchant

We determine that we have a contract with a merchant when the contract is approved, each party’s rights and obligations regarding the products to be transferred can be identified, the payment terms for the products can be identified, we have determined the merchant has the ability and intent to pay, and the contract has commercial substance. At contract inception, we evaluate whether two or more contracts should be combined and accounted for as a single contract and whether the combined or single contract includes more than one performance obligation. Contracts with our merchants are typically for a period of one year.

2.Identification of the performance obligations in the contract

Performance obligations promised in a contract are identified based on the products that will be transferred to the merchant that are both capable of being distinct, whereby the merchant can benefit from the products either on their own or together with other resources that are readily available from third parties or from us, and are distinct in the context of the contract, whereby the transfer of the products is separately identifiable from other promises in the contract.

For SaaS arrangements, we provide access to our cloud-hosted software platform and reviewing and approving eCommerce transaction for legitimacy, without providing the merchant the right to take possession of our software, which we consider to be a single performance obligation. Revenue generated

from the issuance of indemnification guarantees is accounted for under ASC 460. Refer to “Indemnification Guarantees” above and Note 8 below for additional information.

3.Determination of the transaction price

As our contracts include an unknown quantity of approved transactions at a fixed contractual rate per approved transaction value executed on a monthly basis, the contract price is deemed variable. We allocate the variable consideration to the month in which we have the contractual right to bill under the contract as this represents the amount of consideration to which we expect to be entitled for the transfer of products during that month. Certain of our contracts include additional forms of variable consideration such as service level commitments relating to uptime availability and minimum approval rates as well as provisions that provide for reimbursements should our merchant’s consumer cancel an approved order. If we fail to meet these commitments, merchants are generally permitted to receive a refund in the form of a credit on their invoice. Under certain arrangements, when the merchant’s consumer cancels an order that we have approved, we provide a refund of some or all of the fees owed by our merchant to us generally in the form of a credit on our merchant’s invoice. The transaction price is reduced to reflect our estimate of the amount of consideration to which we are entitled based on the terms of the contract.

Payment terms and conditions vary by contract type, although terms generally include a requirement to pay within 30 days. In instances where the timing of revenue recognition differs from the timing of invoicing, we have determined that our contracts do not include a significant financing component. The primary purpose of our invoicing terms is to provide our merchants with simplified and predictable ways of purchasing our products; not to receive financing from our merchants or to provide merchants with financing. We applied the practical expedient in ASC 606 and did not evaluate payment terms of one year or less for the existence of a significant financing component. Revenue is recognized net of any taxes collected from merchants (e.g., sales tax and other indirect taxes), which are subsequently remitted to governmental entities. We generally do not offer a right of refund in our contracts.

4.Allocation of the transaction price to the performance obligations in the contract

Contracts that contain multiple performance obligations require an allocation of the transaction price to each performance obligation based on each performance obligation’s relative standalone selling price. Access to our cloud-hosted software is considered one performance obligation in the context of the contract and accordingly the transaction price is allocated to this single performance obligation.

5.Recognition of the revenue when, or as, a performance obligation is satisfied

Revenue is recognized at the time the related performance obligation is satisfied by transferring control of the promised service to the customer. Revenue is recognized in an amount that reflects the consideration that we expect to receive in exchange for those products. For SaaS arrangements, we have determined that these arrangements meet the variable consideration allocation exception and revenue is recognized over the contract period in the month that the transactions are approved.

Contract Balances

Contract assets consist of unbilled accounts receivable. The terms of our agreements are monthly, annual, or multi-year, and we typically invoice our merchants based on monthly usage. In some arrangements, a right to consideration for our performance under the merchant contract may occur before invoicing to the merchant, resulting in an unbilled accounts receivable. The amount of unbilled accounts receivable included within accounts receivable, net on the consolidated balance sheets was immaterial for the periods presented.

Cost to Obtain a Contract

We capitalize sales commissions and associated payroll taxes paid that are incremental to the acquisition of merchant contracts. These costs are recorded as Deferred contract acquisition costs on the

consolidated balance sheets. We determine whether costs should be deferred based on our sales compensation plans and if the commissions are incremental and would not have occurred absent the merchant contract. Determining whether such costs are incremental to obtaining the online merchant contract requires a certain degree of judgment.

Sales commissions are amortized over an estimated period of benefit of four years. We determine the period of benefit for sales commissions by taking into consideration the estimated customer life, technological life of our software, and other factors. These factors involved in the determination of the period of benefit include inherent uncertainties and the application of significant judgment.

Sales commissions are amortized on a straight-line basis and are included in sales and marketing expense in the consolidated statements of operations. We periodically review these deferred contract acquisition costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.

Cost to Fulfill a Contract

We capitalize payroll related costs of certain integration services required in order to be able to fulfill the obligation to provide our products to our merchants. Integration services are promises that are not capable of being distinct. These costs are capitalized to the extent they are directly related to a contract, are recoverable, and generate or enhance resources that will be used in delivering our SaaS products. These costs are recorded as deferred contract fulfillment costs in Other assets, noncurrent on the consolidated balance sheets.

Capitalized costs to fulfill a contract are amortized on a straight-line basis over the expected period of benefit of four years and are included in cost of revenue in the consolidated statements of operations. We determine the period of benefit by taking into consideration the estimated customer life, technological life of our software, and other factors. These factors involved in the determination of period of benefit involve inherent uncertainties and the application of significant judgment. We periodically review these deferred contract fulfillment costs to determine whether events or changes in circumstances have occurred that could impact the period of benefit. There were no impairment losses recorded during the periods presented.

Cost of Revenue

Cost of revenue primarily consist of chargeback expenses, net of chargebacks won, and other expenses related to providing our products to our merchants. These other expenses include compensation and benefits related costs, including share-based compensation expense associated with teams integral in providing our service, hosting fees and software costs, payment processing fees, amortization of capitalized software development costs and deferred contract fulfillment costs, depreciation expense, and allocated overhead.

Chargeback claims can be disputed and if the decision of the dispute concludes that the order was legitimate and not fraudulent, the chargeback is classified as chargeback won. We present chargeback expenses net of chargebacks won, since such amounts are refunded to us. Amounts for chargebacks won were $20.3 million, $14.3 million, and $8.2 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Research and Development

Research and development costs primarily consist of compensation and benefits related costs, including share-based compensation expense associated with research and development teams that are responsible for the design, development, and testing of our eCommerce risk intelligence platform infrastructure including expenses associated with adding new features, increasing the functionality, and enhancing the usability of our platform. Research and development costs also consist of third-party

software hosting fees used by our research and development teams, depreciation expense, and allocated overhead. Research and development costs are expensed as incurred.

Sales and Marketing

Sales and marketing costs primarily consist of compensation and benefits related costs, including share-based compensation expense directly associated with our sales and marketing teams. Sales and marketing costs also consists of costs associated with conferences, events, digital marketing and advertising programs, amortization of deferred contract acquisition costs, commissions, depreciation expense, and allocated overhead. Sales and marketing costs are expensed as incurred.

Digital marketing programs include advertising, promotional events, and brand-building activities. Advertising costs are expensed as incurred and were $6.0 million, $5.2 million, and $2.1 million for the years ended December 31, 2022, 2021, and 2020, respectively.

General and Administrative

General and administrative costs primarily consist of compensation and benefits related costs, including share-based compensation expense associated with our finance, legal, human resources, information technology and administrative functions. General and administrative costs also consist of third-party professional service fees for external legal, accounting and other consulting services, depreciation expense, and allocated overhead. General and administrative costs are expensed as incurred.

Share-Based Compensation

Share-based compensation expense related to share-based awards is recognized based on the fair value of the awards granted. The fair value of each share option award is estimated on the grant date using the Black-Scholes option-pricing model. The Black-Scholes option-pricing model requires the input of highly subjective assumptions, including the fair value of the underlying ordinary shares, the expected term of the share option, the expected volatility of the price of our ordinary shares, risk-free interest rates, and the expected dividend yield of ordinary shares. The assumptions used to determine the fair value of the option awards represent management’s best estimates. These estimates involve inherent uncertainties and the application of management’s judgment. The related share-based compensation expense is recognized on a straight-line basis over the requisite service period of the awards, including awards with graded vesting and no additional conditions for vesting other than service conditions. Forfeitures are accounted for as they occur.

We have granted to employees, RSUs, that vest either upon the (a) satisfaction of service-based vesting conditions only and (b) satisfaction of both service-based and performance-based vesting conditions. The fair value of each RSU award is based on the fair value of the underlying ordinary shares as of the grant date. We have also granted to our Chief Executive Officer (“CEO”), RSUs, that vest upon the satisfaction of service-based, performance-based, and market-based vesting conditions. A Monte-Carlo simulation model was used to determine the grant date fair value by simulating a range of scenarios with each outcome resulting in a determined value. The grant date fair value of this award is the average of the values determined by each simulation. The simulation was also used to derive the requisite service period.

For RSU awards with both service-based and performance-based vesting conditions, the service-based vesting condition has varying terms, but is generally satisfied over four to five years. The performance-based vesting condition is satisfied upon the occurrence of a qualifying liquidation event which is defined as the earlier to occur of (i) the six month anniversary of or, if earlier, March 15 of the year following, the occurrence of an IPO or (ii) consummation of a merger and acquisition, or M&A, transaction of the Company. The performance-based vesting condition underlying these awards was satisfied upon our IPO. The market-based condition underlying the CEO RSU is satisfied upon the trading price of our ordinary shares meeting certain thresholds.

RSU awards with service-based vesting conditions only are recognized using the straight-line method. RSU awards with more than just a service-based vesting condition are recognized using the accelerated attribution method once the performance-based vesting condition is probable of occurring which results in higher expenses attributed to the earlier periods of the requisite service period.

Income Taxes

We are subject to income taxes in Israel, the United States, and other jurisdictions. These other jurisdictions may have different statutory rates than in Israel. Income taxes are accounted for in accordance with ASC 740, Income Taxes. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the consolidated financial statements carrying amounts of existing assets and liabilities and their respective tax basis as well as operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Valuation allowances are provided when necessary to reduce deferred tax assets to an amount that is more likely than not to be realized.

We recognize income tax benefits from uncertain tax positions only if we believe that it is more likely than not that the tax position will be sustained upon examination by the taxing authorities based on the technical merits of the position. The tax benefits recognized in the consolidated financial statements from such uncertain tax positions are then measured based on the largest benefit that is more likely than not to be realized upon the ultimate settlement.

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders

We compute net profit (loss) per share using the two-class method required for participating securities. The two-class method requires income available to ordinary shareholders for the period to be allocated between ordinary shares and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. Under the two-class method, we allocate earnings proportionately to Class A and B ordinary shares outstanding for the period. Prior to IPO, we considered our convertible preferred shares to be participating securities as the holders of the convertible preferred shares would be entitled to dividends in preference to ordinary shareholders. These participating securities do not contractually require the holders of such shares to participate in our losses. As such, net loss for the periods presented was not allocated to our participating securities.

Our basic net profit (loss) per share is calculated by dividing net profit (loss) attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding for the period, without consideration of potentially dilutive securities. The diluted net profit (loss) per share is calculated by giving effect to all potentially dilutive securities outstanding for the period using the treasury stock method or the if-converted method based on the nature of such securities. Diluted net profit (loss) per share is the same as basic net profit (loss) per share in periods when the effects of potentially dilutive shares of ordinary shares are anti-dilutive.

Segment Information

We operate our business in one operating segment and therefore have one reportable segment. Operating segments are defined as components of an entity that engage in business activities for which discrete financial information is available and regularly reviewed by the chief operating decision maker, who is our CEO, in deciding how to allocate resources and assess performance. Our chief operating decision maker allocates resources and assesses performance based upon discrete financial information at the consolidated level.

Revenue by geographical region can be found in the revenue recognition disclosures in Note 3 below. Property and equipment, net of depreciation and amortization, by geographic region can be found in Note 6 below. Operating lease ROU assets by geographic region can be found in Note 7 below.

Recently Adopted Accounting Pronouncements

As an emerging growth company, or EGC, the Jumpstart Our Business Startups Act, or the JOBS Act, allows us to delay adoption of new or revised accounting pronouncements applicable to public companies until such pronouncements are made applicable to private companies. The JOBS Act does not preclude an EGC from early adopting new or revised accounting standards. We have elected to use extended transition periods permissible under the JOBS Act while also early adopting certain accounting pronouncements. The adoption dates discussed below reflect these elections.

In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842 codified as ASC 842), including subsequent amendments thereafter, which would require lessees to put all leases on their balance sheets, whether operating or financing, while continuing to recognize the expenses on their income statements in a manner similar to current practice. The guidance states that a lessee would recognize a lease liability for the obligation to make lease payments and a right-to-use asset for the right to use the underlying asset for the lease term. In June 2020, the FASB issued ASU No. 2020-05, Revenue from Contracts with Customers (Topic 606) and Leases (Topic 842): Effective Dates for Certain Entities, which defers the effective date of ASU 2016-02 for non-public entities to fiscal years beginning after December 15, 2021, and interim periods within fiscal years beginning after December 15, 2022. The guidance is effective for us beginning January 1, 2022, and interim periods in fiscal years beginning January 1, 2023.

We adopted this guidance as of January 1, 2022 using the modified retrospective method of applying the new standard at the adoption date. Under this approach, we will continue to report comparative periods presented in the period of adoption under ASC 840. We elected the package of practical expedients permitted under the transition guidance, which allows us to not reassess our historical conclusions relating to lease identification, initial direct costs, and classification for existing leases upon adoption. As an accounting policy, we elected to keep leases with an initial term of 12 months or less off of our consolidated balance sheets and will not separate lease and non-lease components by class of underlying asset. The guidance had a material impact on our consolidated balance sheet which resulted in the recognition of operating lease ROU assets and operating lease liabilities of $42.2 million on January 1, 2022. The adoption of Topic 842 did not have a material impact on our consolidated statements of operations or cash flows.

Recently Issued Accounting Pronouncements

In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments, including subsequent amendments thereafter, which established ASC 326. ASC 326 replaces the existing incurred loss impairment model with a current expected credit loss model that requires more timely recognition of estimated expected credit losses over the life of certain financial instruments. Our accounts receivable are in the scope of ASC 326. We will adopt ASC 326 when it becomes effective for us on January 1, 2023. The adoption of ASC 326 will not have a material impact on our financial condition and results of operations within our consolidated financial statements.

Ordinary Shares and Equity Incentive Plan - Black-Scholes Assumptions (Details) - Share-based Payment Arrangement, Option	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		67.26%
Expected dividend yield	0.00%	0.00%	0.00%
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		5 years 5 months 8 days	5 years 9 months
Expected volatility			55.00%
Risk-free interest rate		0.99%	0.52%
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected term (years)		6 years 7 months 6 days	6 years 1 month 9 days
Expected volatility		68.52%	65.00%
Risk-free interest rate		1.12%	1.73%

Fair Value Measurements

12 Months Ended

Dec. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurements

4. Fair Value Measurements

The following tables present information about our financial instruments that are measured at fair value on a recurring basis:


	As of December 31, 2022
	Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial Liabilities:
Derivative financial instruments included in accrued expenses and other current liabilities	$	2,397	$	—	$	2,397	$	—
Total financial liabilities	$	2,397	$	—	$	2,397	$	—


	As of December 31, 2021
	Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial Assets:
Derivative financial instruments included in prepaid expenses and other current assets	$	244	$	—	$	244	$	—
Total financial assets	$	244	$	—	$	244	$	—

Financial Liabilities:
Derivative financial instruments included in accrued expenses and other current liabilities	$	61	$	—	$	61	$	—
Total financial liabilities	$	61	$	—	$	61	$	—

As of December 31, 2022 and 2021, we did not have any Level 3 financial instruments that are measured at fair value on a recurring basis. The following table presents the summary of the changes in the fair value of our Level 3 financial instruments during 2021:


	Convertible Preferred Shares
	Warrant Liabilities		Tranche Rights
	(in thousands)



Balance as of December 31, 2020	$	9,089	$	2,478
Changes in fair value	101,413		21,260
Settlement of convertible preferred share tranche rights and Series E-1 convertible preferred share warrants	(74,724)		(23,738)
Reclassification of Series B/C convertible preferred share warrant liability to equity	(35,778)		—
Balance as of December 31, 2021	$	—	$	—

We classify our derivative financial instruments within Level 2 of the fair value hierarchy because they are valued using inputs other than quoted prices which are directly or indirectly observable in the market, including readily-available pricing sources for the identical underlying security which may not be actively traded. Refer to Note 5 for more information regarding our derivative financial instruments. Prior to conversion upon IPO, we classified our convertible preferred share warrant liabilities within Level 3 of the fair value hierarchy as the fair value measurement is based on significant inputs not observed in the market, such as the fair value of the underlying Series B/C and Series E convertible preferred shares. Prior to settlement, we classified our convertible preferred share tranche rights within Level 3 as the fair value measurement is based on significant inputs not observed in the market, such as the fair value of the underlying Series E convertible preferred shares.

Refer to Note 8 below for more information regarding the fair value of our indemnification guarantees.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Leases (By Geographic Region) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Leases [Abstract]
Operating lease, right-of-use asset	$ 35,158	$ 0
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	35,158	0
UNITED STATES
Leases [Abstract]
Operating lease, right-of-use asset	12,598	0
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	12,598	0
Israel
Leases [Abstract]
Operating lease, right-of-use asset	22,560	0
Lessee, Lease, Description [Line Items]
Operating lease, right-of-use asset	$ 22,560	$ 0

Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue from External Customers by Geographic Areas

The following table summarizes revenue by region in which our merchant headquarters are located:


	Year Ended December 31,
	2022				2021				2020
	Amount		Percentage of Revenue		Amount		Percentage of Revenue		Amount		Percentage of Revenue
	(in thousands, except where indicated)
United States	$	163,920	63	%	$	163,681	71	%	$	125,458	74	%
Europe, the Middle East and Africa (“EMEA”)*	71,443		27		44,850		20		31,821		19
Asia-Pacific (“APAC”)	12,005		5		7,416		3		3,142		2
Americas	13,879		5		13,194		6		9,319		5
Total revenue	$	261,247	100	%	$	229,141	100	%	$	169,740	100	%

_________________

*Includes our country of domicile, Israel. Revenue recognized from Israel was $3.3 million, $2.4 million, and $0.9 million for the years ended December 31, 2022, 2021, and 2020, respectively.

Disaggregation of Revenue

The following table summarizes revenue based on the nature and type of service provided to our merchants:


	Year Ended December 31,
	2022				2021				2020
	Amount		Percentage of Revenue		Amount		Percentage of Revenue		Amount		Percentage of Revenue
	(in thousands, except where indicated)
Fraud review service revenue (ASC 606)	$	156,040	60	%	$	132,261	58	%	$	96,774	57	%
Indemnification guarantee service revenue (ASC 460)	105,207		40		96,880		42		72,966		43
Total revenue	$	261,247	100	%	$	229,141	100	%	$	169,740	100	%

Deferred Policy Acquisition Costs

The following table represents a rollforward of deferred contract acquisition costs:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Beginning balance	$	11,630	$	6,983	$	2,696
Additions to deferred contract acquisition costs	9,707		7,744		5,857
Amortization of deferred contract acquisition costs	(4,973)		(3,097)		(1,570)
Ending balance	$	16,364	$	11,630	$	6,983

Deferred Contract Fulfillment Costs

The following table represents a rollforward of deferred contract fulfillment costs:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Beginning balance	$	2,930	$	2,166	$	1,213
Additions to deferred contract fulfillment costs	2,189		1,789		1,558
Amortization of deferred contract fulfillment costs	(1,446)		(1,025)		(605)
Ending balance	$	3,673	$	2,930	$	2,166

Derivative Instruments and Hedging - Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
Beginning balance	$ 528,861	$ (43,309)	$ (40,601)
Other comprehensive profit (loss)	(1,883)	176	0
Ending balance	496,417	528,861	(43,309)
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent
Derivatives used in Net Investment Hedge, Net of Tax [Roll Forward]
Beginning balance	176	0
Amount of net gains (loss) recorded in accumulated other comprehensive profit (loss)	1,448	176
Amount of net gains (loss) reclassified from accumulated other comprehensive profit (loss) to earnings		0
Other comprehensive profit (loss)	(1,883)	176
Ending balance	$ (1,707)	$ 176	$ 0

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI https://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI https://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
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Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI https://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI https://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI https://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders

12. Net Profit (Loss) Per Share Attributable to Ordinary Shareholders

The following table sets forth the computation of basic and diluted net profit (loss) per share attributable to ordinary shareholders for the periods presented:


	Year Ended December 31,
	2022				2021				2020
	Class A		Class B		Class A		Class B		Ordinary Shares
	(in thousands, except share and per share data)
Numerator:
Net profit (loss) attributable to ordinary shareholders, basic and diluted	$	(57,339)	$	(46,650)	$	(90,677)	$	(88,208)	$	(11,347)

Denominator:
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic and diluted	92,450,867		75,216,507		38,757,558		37,702,067		14,022,788
Net profit (loss) per share attributable to ordinary shareholders, basic and diluted	$	(0.62)	$	(0.62)	$	(2.34)	$	(2.34)	$	(0.81)

Basic and diluted net profit (loss) per share attributable to ordinary shareholders are the same for each class of ordinary shares as they are entitled to the same liquidation and dividend rights. The weighted-average potential ordinary shares that were excluded from the computation of diluted net profit (loss) per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive, or whose issuance is contingent upon the satisfaction of certain market conditions, are as follows:


	Year Ended December 31,
	2022		2021		2020
	Class A	Class B	Class A	Class B	Ordinary Shares
Convertible preferred shares	—	—	17,817,201	35,634,404	28,217,680
Warrants to purchase ordinary shares(1)(2)	873,370	850,650	1,488,819	354,243	1,858,467
Outstanding share options	16,067,720	—	12,239,441	—	5,985,236
Unvested RSUs	16,176,275	2,131,015	1,562,388	1,965,604	—
Total	33,117,365	2,981,665	33,107,849	37,954,251	36,061,383

_________________

(1)Prior to IPO, assumes the Series B/C convertible preferred share warrants are exercised into Series B convertible preferred shares. Prior to May 4, 2021, should the holder elect to exercise into Series C convertible preferred shares, total weighted-average potential ordinary shares that were excluded from the computation of diluted net profit (loss) per share attributable to ordinary shareholders were 70,110,425 and 35,744,158 for the years ended December 31, 2021 and 2020, respectively. On May 4, 2021, the Series B/C convertible preferred share warrants were amended and restated to, among other things, remove

the holder's Series B/C convertible preferred share election right. As a result of the amendment, the shares issuable upon exercise of the Series B/C convertible preferred share warrant shall solely be Series B convertible preferred shares. Upon completion of the IPO during the third quarter of 2021, the Series B/C convertible preferred share warrants automatically converted to warrants to purchase ordinary shares.(2)Includes the warrants to purchase ordinary shares as a result of the conversion of Series B/C convertible preferred share warrants discussed in (1) above, and warrants issued to customers.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE PROFIT (LOSS) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Statement of Comprehensive Income [Abstract]
Net profit (loss)	$ (103,989)	$ (178,885)	$ (11,347)
Other comprehensive profit (loss), net of tax:
Unrealized gain (loss) on derivative instruments, net	(1,883)	176	0
Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Tax	68	0	0
Other comprehensive profit (loss)	(1,815)	176	0
Comprehensive profit (loss)	$ (105,804)	$ (178,709)	$ (11,347)

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

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- Definition

Amount after tax and reclassification adjustments of other comprehensive income (loss).

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+ Details

Employee Benefit Plans - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Retirement Benefits [Abstract]
Employer matching contribution, percent of match	100.00%
Employer matching contribution, percent of employees' pay	4.00%
Defined contribution plan, cost	$ 1.1	$ 0.8	$ 0.6
Severance pay rate	8330.00%
Severance costs	$ 4.5	$ 3.8	$ 2.7

Related Party Transactions	12 Months Ended
Related Party Transactions	Dec. 31, 2022
Related Party Transactions [Abstract]
Related Party Transactions	14. Related Party Transactions For a description of related party transactions, refer to Note 10 “Ordinary Shares and Equity Incentive Plan—Secondary Transaction.”

Derivative Instruments and Hedging - Effect of Foreign Currency Contracts on the Consolidated Statement of Operations (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	$ (3,331)	$ 0	$ 0
Designated as Hedging Instrument \| Cost of revenue
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	(175)	0	0
Designated as Hedging Instrument \| Research and development
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	(1,718)	0	0
Designated as Hedging Instrument \| Sales and marketing
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	(732)	0	0
Designated as Hedging Instrument \| General and administrative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	(706)	0	0
Designated as Hedging Instrument \| Other income (expense), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	0	0	0
Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	(1,659)	59	231
Not Designated as Hedging Instrument \| Cost of revenue
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	0	0	0
Not Designated as Hedging Instrument \| Research and development
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	0	0	0
Not Designated as Hedging Instrument \| Sales and marketing
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	0	0	0
Not Designated as Hedging Instrument \| General and administrative
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	0	0	0
Not Designated as Hedging Instrument \| Other income (expense), net
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total gain (loss) recognized in earnings	$ (1,659)	$ 59	$ 231

Income Taxes - Schedule of Profit (Loss) before Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Total profit (loss) before income taxes	$ (97,947)	$ (177,327)	$ (10,272)
Israel
Income Tax Contingency [Line Items]
Total profit (loss) before income taxes	(55,054)	(154,339)	(13,479)
International
Income Tax Contingency [Line Items]
Total profit (loss) before income taxes	$ (42,893)	$ (22,988)	$ 3,207

- Definition

Amount of income (loss) from continuing operations, including income (loss) from equity method investments, before deduction of income tax expense (benefit), and income (loss) attributable to noncontrolling interest.

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+ Details

Ordinary Shares and Equity Incentive Plan (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Schedule of Stock by Class

We have the following ordinary shares reserved for future issuance:


	As of December 31,
	2022	2021
Warrants to purchase ordinary shares(1)	1,775,475	1,775,475
Share options and RSUs issued and outstanding under the 2013 Plan	20,062,824	26,460,287
Share options and RSUs issued and outstanding under the 2021 Plan	13,134,652	803,556
Remaining shares available for future issuance under the 2021 Plan	8,674,132	13,474,214
Total ordinary shares reserved	43,647,083	42,513,532

_________________

(1)Includes the warrants to purchase ordinary shares and warrants issued to customers.

Share-based Payment Arrangement, Option, Activity

A summary of share options under our equity incentive plan and related information is as follows:


	Share Options Outstanding
	Outstanding Share Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
	(in thousands, except share, life and per share data)
Balance as of December 31, 2021	18,834,740	$	2.05	7.0	$	109,397
Options exercised	(3,919,606)	$	1.07
Options forfeited	(1,129,920)	$	3.88
Balance as of December 31, 2022	13,785,214	$	2.17	6.1	$	34,326
Exercisable as of December 31, 2022	10,244,620	$	1.65	5.5	$	30,632

There were no share options granted during the year ended December 31, 2022.

Fair Value Measurement Inputs and Valuation Techniques

The Black-Scholes assumptions used to value the employee share options at the grant dates are as follows:


	Year Ended December 31,
	2021	2020
Expected term (years)	5.44 - 6.60	5.75 - 6.11
Expected volatility	67.26% - 68.52%	55.00% - 65.00%
Risk-free interest rate	0.99% - 1.12%	0.52% - 1.73%
Expected dividend yield	0.00%	0.00%

Schedule of Unvested Restricted Stock Units Roll Forward

A summary of RSU activity, including activity under our equity incentive plan, and related information is as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
Unvested as of December 31, 2021	8,429,103	$	15.01
Granted	15,873,386	$	6.04
Vested	(3,145,103)	$	10.46
Forfeited	(1,745,124)	$	7.81
Unvested as of December 31, 2022	19,412,262	$	9.06

Disclosure of Share-based Compensation Arrangements by Share-based Payment Award

Share-based compensation expense by line item in the consolidated statements of operations is summarized as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Cost of revenue	$	621	$	216	$	38
Research and development	10,005		4,246		3,621
Sales and marketing	18,253		10,710		2,814
General and administrative	38,588		18,186		1,472
Total share-based compensation expense	$	67,467	$	33,358	$	7,945

- Definition

Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding.

+ References

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-Topic 210
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+ Details

Summary of Significant Accounting Policies - Schedule of Concentration Risks (Details) - Customer Concentration Risk	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Accounts Receivable, Net \| Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	22.00%	32.00%
Accounts Receivable, Net \| Customer C
Concentration Risk [Line Items]
Concentration risk, percentage		11.00%
Revenue Benchmark \| Customer A
Concentration Risk [Line Items]
Concentration risk, percentage	13.00%	16.00%	18.00%
Revenue Benchmark \| Customer B
Concentration Risk [Line Items]
Concentration risk, percentage			10.00%

Revenue Recognition - Revenue by Geographic Areas (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues	$ 261,247	$ 229,141	$ 169,740
Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%
UNITED STATES
Disaggregation of Revenue [Line Items]
Revenues	$ 163,920	$ 163,681	$ 125,458
UNITED STATES \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	63.00%	71.00%	74.00%
EMEA
Disaggregation of Revenue [Line Items]
Revenues	$ 71,443	$ 44,850	$ 31,821
EMEA \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	27.00%	20.00%	19.00%
Asia Pacific
Disaggregation of Revenue [Line Items]
Revenues	$ 12,005	$ 7,416	$ 3,142
Asia Pacific \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	5.00%	3.00%	2.00%
Israel
Disaggregation of Revenue [Line Items]
Revenues	$ 3,300	$ 2,400	$ 900
Americas
Disaggregation of Revenue [Line Items]
Revenues	$ 13,879	$ 13,194	$ 9,319
Americas \| Revenue Benchmark \| Geographic Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	5.00%	6.00%	5.00%

Temporary Equity

12 Months Ended

Dec. 31, 2022

Temporary Equity Disclosure [Abstract]

Convertible Preferred Shares

9. Ordinary Share Warrants

As of December 31, 2022, and 2021, the following warrants were issued and outstanding, after giving effect to the Recapitalization:


	As of December 31, 2022 and 2021
	Issued and Outstanding Share Warrants		Weighted-Average Exercise Price				Expiration Date
	Class A Ordinary Shares	Class B Ordinary Shares	Class A Ordinary Shares		Class B Ordinary Shares
Warrants to purchase ordinary shares	425,325	850,650	$	0.28	$	0.28	April 2025
Warrants issued to customers	499,500	—	$	0.01	$	—	June 2028
Total	924,825	850,650

Prior to the completion of the IPO during the third quarter of 2021, the warrants to purchase ordinary shares were Series B/C convertible preferred share warrants. As discussed in Note 2 above, the Series B/C convertible preferred share warrants automatically converted to warrants to purchase ordinary shares

Organization and Description of Business	12 Months Ended
Organization and Description of Business	Dec. 31, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Description of Business	1. Organization and Description of Business Riskified Ltd., together with its subsidiaries, “Riskified”, “we”, “us”, “our” or the “Company,” was incorporated under the laws of the State of Israel in 2012 and commenced operations in January 2013. We have built a next-generation eCommerce risk intelligence platform that allows our customers—online merchants—to create trusted relationships with their consumers. Our core product, the Chargeback Guarantee, is designed to ensure the legitimacy of our merchants’ online orders by approving or denying these orders with guaranteed performance levels that vary by merchant. We guarantee the outcome of our decisions by assuming the cost of fraud associated with each approval. We drive higher sales and reduce fraud and other operating costs for our merchants and strive to provide superior consumer experiences, as compared to our merchants’ performance prior to onboarding us.

Guarantees, Commitments, and Contingencies

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Guarantees, Commitments, and Contingencies

8. Guarantees, Commitments, and Contingencies

Indemnification Guarantees

We provide contractual assurances around the accuracy of our approvals so that our merchants can confidently automate a transaction’s execution. Our contracts obligate us to stand ready to indemnify our merchants for any costs incurred from a chargeback due to fraud. Accordingly, we account for the guarantee obligation as an indemnification under the general provisions of ASC 460 and recognize a liability at fair value upon approving a transaction at an amount that represents what we would need to pay a third party to relieve ourselves from this obligation. This liability is presented as Guarantee obligations on the consolidated balance sheets and was $12.4 million and $12.1 million as of December 31, 2022 and 2021, respectively, and will be released to revenue in the consolidated statements of operations.

Our provision for chargebacks includes amounts associated with chargebacks that have been submitted and accepted but not yet paid by us as of the balance sheet date as well as estimates of chargebacks that have not yet been submitted and accepted relating to approved transactions that are

accounted for under ASC 450, Contingencies. While no individual transaction is probable of a chargeback occurring, when we analyze a portfolio of transactions, if we believe a future chargeback is probable and reasonably estimated, we accrue a liability and an associated expense through cost of revenue. Inputs and assumptions used by management to calculate the provision are based on the transactions approved and the features of those transactions as well as historical information about chargebacks. It is possible that the estimate may change in the near term, and the effect of the change could be material. Provision for chargebacks, net on the consolidated balance sheets were $12.0 million and $12.0 million as of December 31, 2022 and 2021, respectively, and will be reduced by credits issued or cash paid to merchants.

As of December 31, 2022, our portfolio of potential chargeback liabilities was diversified across numerous industries, hundreds of merchants, and millions of individual transactions. The maximum potential payment to our merchants for these guarantees at a point in time, if every order we approved was fraudulent, is generally the aggregate approved transaction amount excluding cancelled orders, orders that have expired guarantees, and orders for which guarantees have already been paid. As of December 31, 2022, there was $50.1 billion in outstanding indemnification guarantees.

Historically, we have had to pay approximately 0.1% of guarantees that we have issued and net chargeback expenses for the years ended December 31, 2022, 2021, and 2020, were $103.2 million, $85.5 million, and $63.1 million, respectively, which was in line with our budgets for the associated periods.

Non-Cancelable Purchase Obligations

In the normal course of business, we enter into non-cancelable purchase commitments with various parties primarily for hosting and software services. As of December 31, 2022, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows:


	Amount
	(in thousands)
Year Ending December 31,
2023	$	11,448
2024	10,452
2025	127
Total	$	22,027

Other Indemnifications and Contingencies

In the ordinary course of business, we agree to indemnify certain parties. In our merchant agreements, we have agreed to indemnify, defend, and hold harmless the indemnified party for third-party claims and related losses suffered or incurred by the indemnified party from actual or threatened third-party intellectual property infringement claims. For certain large or strategic merchants, we have agreed to indemnify, defend and hold harmless the indemnified party for non-compliance with certain additional representations and warranties made by us. In addition, we have entered into indemnification agreements with our officers and directors. As we have a limited history of prior indemnification claims and the payments we have made under such agreements have not had a material adverse effect on our results of operations, cash flows, or financial position, we are unable to reasonably estimate the maximum potential amount of future payments related to these indemnification agreements. However, to the extent that valid indemnification claims arise in the future, future payments by us could be significant and could have a material adverse effect on our results of operations or cash flows in a particular period. As of December 31, 2022 and 2021, we did not have any material indemnification claims that were probable or reasonably possible.

Legal Proceedings

Occasionally we may be subject to various proceedings, lawsuits, disputes, or claims. We investigate these claims as they arise and accrue liabilities when losses are probable and reasonably estimated.

In May 2022, a putative securities class action complaint was filed in federal court in the United States by certain of our shareholders against us, certain of our current and former officers and directors, and our underwriters alleging violations of the Securities Act in connection with our IPO-related disclosures, and seeking unspecified damages. The lawsuit is captioned In re Riskified Ltd. Securities Litigation, 22 Civ. 3545 (DLC) (S.D.N.Y.). Plaintiffs filed an amended complaint on September 15, 2022. We moved to dismiss the amended complaint on October 28, 2022, and in response, on November 28, 2022, plaintiffs filed a second amended complaint. We moved to dismiss the second amended complaint on January 20, 2023. Plaintiffs filed a brief opposing our motion to dismiss on February 21, 2023, and briefing on the motion remains ongoing. We believe the lawsuit is without merit and intend to defend the case vigorously. As of the date hereof, we are unable to estimate a range of loss, if any, that could result were there to be an adverse final decision in this case and an estimated liability has not been recorded in our financial statements.

Although claims are inherently unpredictable, except as noted above, we are currently not aware of any matters that, if determined adversely to us, would individually or taken together, have a material adverse effect on our business, financial position, results of operations, or cash flows.

Ordinary Share Warrants (Details) - $ / shares	Dec. 31, 2022	Dec. 31, 2021
Temporary Equity [Line Items]
Total ordinary shares reserved (in shares)	43,647,083	42,513,532
Options and RSUs \| 2013 Equity Incentive Plan
Temporary Equity [Line Items]
Total ordinary shares reserved (in shares)	20,062,824	26,460,287
Common Class A
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	924,825
Common Class B
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	850,650
Warrants to purchase ordinary shares \| Common Class A
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	425,325
Weighted-Average Exercise Price (in dollars per share)	$ 0.28
Warrants to purchase ordinary shares \| Common Class B
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	850,650
Weighted-Average Exercise Price (in dollars per share)	$ 0.28
Warrants issued to customers \| Common Class A
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	499,500
Weighted-Average Exercise Price (in dollars per share)	$ 0.01
Warrants issued to customers \| Common Class B
Temporary Equity [Line Items]
Issued and Outstanding Share Warrants (in shares)	0
Weighted-Average Exercise Price (in dollars per share)	$ 0

Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

Profit (loss) before the provision for income taxes consisted of the following for the years ended December 31, 2022, 2021, and 2020:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Israel	$	(55,054)	$	(154,339)	$	(13,479)
International	(42,893)		(22,988)		3,207
Total	$	(97,947)	$	(177,327)	$	(10,272)

Schedule of Components of Income Tax Expense (Benefit)

The provision for income taxes was as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Current:
Israel	$	4	$	4	$	4
International	8,715		121		32
Total current income tax expense	8,719		125		36
Deferred:
Israel	—		—		—
International	(2,677)		1,433		1,039
Total deferred income tax expense	(2,677)		1,433		1,039
Total provision for income taxes	$	6,042	$	1,558	$	1,075

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of our statutory income tax expense to our effective income tax provision is as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Israel tax benefit at statutory rate	$	(22,528)	$	(40,784)	$	(2,362)
Preferred enterprise	10,573		3,052		169
Foreign rate differential	(1,050)		912		332
Share-based compensation	9,717		1,753		1,328
Warrant revaluation	—		23,325		1,336
Tranche right revaluation	—		4,890		—
Prior year tax income/(expense)	(6,675)		84		—
Permanent differences	(3,351)		98		83
ASC 606	—		—		—
Uncertain tax position	7,233		3,784		5
Change in valuation allowance	12,123		4,444		184
Total	$	6,042	$	1,558	$	1,075

Schedule of Deferred Tax Assets and Liabilities

The following table presents the significant components of our deferred tax assets and liabilities:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Deferred tax assets:
Research and development expenses	$	7,374	$	1,436	$	1,742
Stat to GAAP adjustments	—		—		1,493
Net operating loss	9,059		5,212		941
Deferred Compensation	5,214		1,009		—
Operating lease liabilities	6,456		—		—
Vacation and convalescence	730		799		364
Bad debts	78		93		100
Other	2,166		466		374
Gross deferred tax assets	31,077		9,015		5,014
Valuation allowance	(20,822)		(8,699)		(4,255)
Total deferred tax assets	10,255		316		759
Deferred tax liabilities:
Operating lease right-of-use assets	(6,387)		—		—
Deferred contract acquisition costs	(3,009)		(2,324)		(1,543)
Property and equipment	(279)		(283)		(439)
Capitalized Software	(591)		(397)		—
Other	—		—		(34)
Gross deferred tax liabilities	(10,266)		(3,004)		(2,016)
Net deferred tax liabilities	$	(11)	$	(2,688)	$	(1,257)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of total unrecognized tax position is as follows:


	Unrecognized Tax Benefits
	(in thousands)
Balance – January 1, 2020	$	234
Additions based on tax positions related to current year	—
Reductions for tax positions of prior years	—
Balance – December 31, 2020	234
Additions based on tax positions related to current year	3,885
Reductions for tax positions of prior years	—
Balance – December 31, 2021	4,119
Additions based on tax positions related to current year	7,187
Reductions for tax positions of prior years	(54)
Balance – December 31, 2022	$	11,252

Summary of Significant Accounting Policies - Narrative (Details)		3 Months Ended	12 Months Ended
	Jul. 28, 2021 USD ($) $ / shares shares	Sep. 30, 2022 shares	Dec. 31, 2022 USD ($) vote segment	Dec. 31, 2021 USD ($) shares	Dec. 31, 2020 USD ($)	Jan. 01, 2022 USD ($)
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Stock split conversion ratio	0.5
Sale of stock, consideration received on transaction	$ 386,600,000
Payments of stock issuance costs			$ 204,000	$ 5,302,000	$ 176,000
Payments of other stock issuance costs	$ 5,700,000
Foreign currency transaction gain (loss)			2,500,000	200,000	2,100,000
Accounts receivable, allowance for credit loss			$ 500,000	600,000
Guarantee obligations, term			six
Accumulated deficit			$ 350,553,000	246,564,000
Contract term with merchant			1 year
Capitalized contract cost, amortization period			4 years
Capitalized contract cost, impairment loss			$ 0	0	0
Chargeback expense			20,300,000	14,300,000	8,200,000
Advertising expense			6,000,000	5,200,000	2,100,000
Total share-based compensation expense			$ 67,467,000	33,358,000	7,945,000
Number of operating segments \| segment			1
Number of reportable segments \| segment			1
Operating lease, right-of-use asset			$ 35,158,000	$ 0
Present value of operating lease liabilities			$ 37,416,000
Accounting Standards Update 2016-02
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Operating lease, right-of-use asset						$ 42,200,000
Present value of operating lease liabilities						$ 42,200,000
Series E-1 Convertible Preferred Stock [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Issuance of convertible preferred stock (in shares) \| shares		962,940		962,940
Common Class A
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Votes per common share \| vote			1
Common Class B
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Votes per common share \| vote			10
Software Development
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized software costs			$ 5,000,000	$ 3,500,000
Amortization of intangible assets			700,000	400,000	0
Cloud Computing Arrangement Implementation Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Capitalized software costs			200,000	300,000
Amortization of intangible assets			$ 200,000	$ 200,000	$ 100,000
Software and Software Development Costs
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Property and equipment, useful life			4 years
IPO
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sale of stock, number of shares issued in transaction (in shares) \| shares	19,925,000
Sale of stock, price per share (in dollars per share) \| $ / shares	$ 21.00
Payments of stock issuance costs	$ 26,200,000
Stock issued, conversion of convertible securities (in shares) \| shares	32,291,470
Over-Allotment Option
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Sale of stock, number of shares issued in transaction (in shares) \| shares	2,625,000
Restricted Stock Units (RSUs) \| Minimum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Award vesting period			4 years
Restricted Stock Units (RSUs) \| Maximum
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Award vesting period			5 years
Restricted Stock Units (RSUs) \| Share-based Payment Arrangement, Tranche Two
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Award vesting period			6 months

Income Taxes - Reconciliation of Unrecognized Tax Position (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Beginning balance	$ 4,119	$ 234	$ 234
Additions based on tax positions related to current year	7,187	3,885	0
Reductions for tax positions of prior years	(54)	0	0
Ending balance	11,252	4,119	$ 234
Unrecognized tax benefits, income tax penalties and interest expense	$ 320	$ 10

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)	167,667,374	76,459,625
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	167,667,374	76,459,625
Common Class A
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net profit (loss) attributable to ordinary shareholders, basic		$ (90,677)	$ (11,347)
Net profit (loss) attributable to ordinary shareholders, diluted	$ (57,339)	$ (90,677)	$ (11,347)
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)		38,757,558	14,022,788
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	92,450,867	38,757,558	14,022,788
Net profit (loss) per share attributable to ordinary shareholders, basic (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Net profit (loss) per share attributable to ordinary shareholders, diluted (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Common Class B
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net profit (loss) attributable to ordinary shareholders, basic	$ (46,650)	$ (88,208)
Net profit (loss) attributable to ordinary shareholders, diluted		$ (88,208)
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)			14,022,788
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	75,216,507	37,702,067	14,022,788
Net profit (loss) per share attributable to ordinary shareholders, basic (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Net profit (loss) per share attributable to ordinary shareholders, diluted (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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- Definition

The amount of net income (loss) for the period available to each share of common stock or common unit outstanding during the reporting period and to each share or unit that would have been outstanding assuming the issuance of common shares or units for all dilutive potential common shares or units outstanding during the reporting period.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities; of income (loss) available to common shareholders.

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Amount, after deduction of tax, noncontrolling interests, dividends on preferred stock and participating securities, and addition from assumption of issuance of common shares for dilutive potential common shares; of income (loss) available to common shareholders.

+ References + Details

Leases (Tables)

12 Months Ended

Dec. 31, 2022

Leases [Abstract]

Lease, Cost

The components of operating lease cost for the year ended December 31, 2022 were as follows:


	Year Ended December 31, 2022
Operating lease cost	$	6,140
Variable lease cost	1,257
Short-term lease cost	304
Sublease income	(786)
Total operating lease cost	$	6,915

Lessee, Operating Lease, Liability, Maturity

The future minimum lease payments included in the measurement of our operating lease liabilities as of December 31, 2022, were as follows:


	Amount
Year Ending December 31,
2023	$	6,353
2024	5,976
2025	5,941
2026	5,986
2027	6,031
Thereafter	13,738
Total undiscounted lease payments	44,025
Less: imputed interest	(6,609)
Present value of operating lease liabilities	$	37,416

The following table presents our operating lease ROU assets by geographic region:


	As of December 31,
	2022		2021
	(in thousands)
Israel	$	22,560	$	—
United States	12,598		—
Total operating lease right-of-use assets	$	35,158	$	—

Schedule of Future Minimum Rental Payments for Operating Leases

The minimum rental payments under operating leases as of December 31, 2021 were as follows:


	Amount
	(in thousands)
Year Ending December 31,
2022	$	6,975
2023	6,853
2024	6,648
2025	6,403
2026	6,448
Thereafter	22,631
Total	$	55,958

Leases - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Leases - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Leases [Abstract]
Lease cost		$ 5,900	$ 4,200
Sublease income		100	$ 900
Weighted average remaining lease term	7 years 4 months 24 days
Weighted average discount rate	4.60%
Contractual obligation	$ 3,000	$ 3,300
Contractual obligation, term	3 months

Revenue Recognition

12 Months Ended

Dec. 31, 2022

Revenue from Contract with Customer [Abstract]

Revenue Recognition

3. Revenue Recognition

Disaggregation of Revenue

The following table summarizes revenue by region in which our merchant headquarters are located:


	Year Ended December 31,
	2022				2021				2020
	Amount		Percentage of Revenue		Amount		Percentage of Revenue		Amount		Percentage of Revenue
	(in thousands, except where indicated)
United States	$	163,920	63	%	$	163,681	71	%	$	125,458	74	%
Europe, the Middle East and Africa (“EMEA”)*	71,443		27		44,850		20		31,821		19
Asia-Pacific (“APAC”)	12,005		5		7,416		3		3,142		2
Americas	13,879		5		13,194		6		9,319		5
Total revenue	$	261,247	100	%	$	229,141	100	%	$	169,740	100	%

_________________

*Includes our country of domicile, Israel. Revenue recognized from Israel was $3.3 million, $2.4 million, and $0.9 million for the years ended December 31, 2022, 2021, and 2020, respectively.

The following table summarizes revenue based on the nature and type of service provided to our merchants:


	Year Ended December 31,
	2022				2021				2020
	Amount		Percentage of Revenue		Amount		Percentage of Revenue		Amount		Percentage of Revenue
	(in thousands, except where indicated)
Fraud review service revenue (ASC 606)	$	156,040	60	%	$	132,261	58	%	$	96,774	57	%
Indemnification guarantee service revenue (ASC 460)	105,207		40		96,880		42		72,966		43
Total revenue	$	261,247	100	%	$	229,141	100	%	$	169,740	100	%

We primarily generate revenue from our Chargeback Guarantee offering. Revenue generated from other offerings are not material.

The allocation of consideration between fraud review service revenue and indemnification guarantee service revenue is a function of the fair value of our chargeback guarantee which represents what we would need to pay a third party to relieve ourselves from our obligations under issued guarantees. The fair value of the chargeback guarantee is primarily determined by utilizing the historical percentage of guarantees issued that resulted in a chargeback plus a risk premium fee that we would have incurred from a third-party in order to relieve ourselves from our legal obligation under the guarantee. Refer to Item 5. “Operating and Financial Review and Prospects — Critical Accounting Policies and Estimates.”

Changes in the percentage of revenue that are recorded as fraud review service revenue and indemnification guarantee service revenue are a function of changes in the aforementioned fair value of the chargeback guarantee and changes in the speed in which we pay chargeback claims which impacts the systematic and rational approach that we utilize to record revenue associated with our guarantee obligation.

Cost to Obtain a Contract

The following table represents a rollforward of deferred contract acquisition costs:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Beginning balance	$	11,630	$	6,983	$	2,696
Additions to deferred contract acquisition costs	9,707		7,744		5,857
Amortization of deferred contract acquisition costs	(4,973)		(3,097)		(1,570)
Ending balance	$	16,364	$	11,630	$	6,983

Cost to Fulfill a Contract

- Definition

The entire disclosure of revenue from contract with customer to transfer good or service and to transfer nonfinancial asset. Includes, but is not limited to, disaggregation of revenue, credit loss recognized from contract with customer, judgment and change in judgment related to contract with customer, and asset recognized from cost incurred to obtain or fulfill contract with customer. Excludes insurance and lease contracts.

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+ Details

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT - USD ($) $ in Thousands	Total	Series E-1 Convertible Preferred Stock [Member]	Common Class A	Common Class B	Series E Convertible Preferred Stock [Member]	Common Stock Common Class A	Common Stock Common Class B	Additional Paid-in Capital	Accumulated Other Comprehensive Profit (Loss)	Accumulated Deficit
Beginning balance (in shares) at Dec. 31, 2019	26,977,290
Beginning balance at Dec. 31, 2019	$ 105,354
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of convertible preferred shares, net of issuance costs (in shares)					2,900,826
Issuance of convertible preferred shares, net of issuance costs					$ 54,210
Ending balance (in shares) at Dec. 31, 2020	29,878,116
Ending balance at Dec. 31, 2020	$ 159,564
Beginning balance (in shares) at Dec. 31, 2019						13,704,858	0
Beginning balance at Dec. 31, 2019	(40,601)					$ 4	$ 0	$ 15,727	$ 0	$ (56,332)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Elimination of ordinary share par value and issuance of Class B ordinary shares upon Recapitalization	0
Issuance of ordinary shares upon exercise of share options (in shares)						605,694
Issuance of ordinary shares upon exercise of share options	642							642
Share-based compensation expense	7,997							7,997
Other comprehensive profit (loss)	0
Net profit (loss)	(11,347)									(11,347)
Ending balance (in shares) at Dec. 31, 2020						14,310,552	0
Ending balance at Dec. 31, 2020	(43,309)					$ 4	$ 0	24,366	0	(67,679)
Increase (Decrease) in Temporary Equity [Roll Forward]
Issuance of convertible preferred shares, net of issuance costs (in shares)		962,940			1,450,414
Issuance of convertible preferred shares, net of issuance costs		$ 6,489			$ 50,519
Reclassification of convertible preferred share warrants upon IPO	$ 74,724
Conversion of Preferred Shares into Class A Ordinary Shares upon IPO (in shares)	(32,291,470)
Conversion of convertible preferred shares into Class A ordinary shares upon IPO	$ (291,296)
Ending balance (in shares) at Dec. 31, 2021	0
Ending balance at Dec. 31, 2021	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Conversion of Preferred Shares into Ordinary Shares upon IPO (in shares)						32,291,470
Conversion of Preferred Shares into Ordinary Shares upon IPO	291,296							291,296
Reclassification of convertible preferred share warrants upon IPO	35,778							35,778
Issuance of Class A Ordinary Shares upon IPO, net of underwriting discounts and commissions and other issuance costs (in shares)						19,925,000
Issuance of Class A ordinary shares upon IPO, net of underwriting discounts and commissions and other issuance costs	386,591							386,591
Elimination of ordinary share par value and issuance of Class B ordinary shares upon Recapitalization	4					$ (4)		4
Elimination of ordinary share par value and issuance of Class B ordinary shares upon Recapitalization (in shares)							94,431,636
Issuance of ordinary shares upon exercise of share options (in shares)						2,381,269	625,124
Issuance of ordinary shares upon exercise of share options	2,948							2,948
Exchange of Class B ordinary shares to Class A ordinary shares (in shares)						7,001,240	(7,001,240)
Share-based compensation expense	33,489							33,489
Ordinary share warrants issued to a customer	777							777
Other comprehensive profit (loss)	176								176
Net profit (loss)	(178,885)									(178,885)
Ending balance (in shares) at Dec. 31, 2021			75,909,531	88,055,520		75,909,531	88,055,520
Ending balance at Dec. 31, 2021	$ 528,861					$ 0	$ 0	775,249	176	(246,564)
Ending balance (in shares) at Dec. 31, 2022	0
Ending balance at Dec. 31, 2022	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Elimination of ordinary share par value and issuance of Class B ordinary shares upon Recapitalization	$ 0
Issuance of ordinary shares upon exercise of share options (in shares)	3,919,606					3,919,606
Issuance of ordinary shares upon exercise of share options	$ 4,059							4,059
Exchange of Class B ordinary shares to Class A ordinary shares (in shares)						19,110,506	(19,110,506)
Share-based compensation expense	67,766							67,766
Ordinary share warrants issued to a customer	1,535							1,535
Other comprehensive profit (loss)	(1,815)								(1,815)
Net profit (loss)	(103,989)									(103,989)
Ending balance (in shares) at Dec. 31, 2022			102,084,746	68,945,014		102,084,746	68,945,014
Ending balance at Dec. 31, 2022	$ 496,417					$ 0	$ 0	$ 848,609	$ (1,639)	$ (350,553)

Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details)	12 Months Ended
	Dec. 31, 2022
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Furniture and office equipment \| Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	5 years
Furniture and office equipment \| Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	7 years

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Current assets:
Cash and cash equivalents	$ 188,670	$ 418,143
Restricted cash	2,347	6,984
Short-term deposits	287,000	85,132
Accounts receivable, net	37,547	35,477
Prepaid expenses and other current assets	14,371	19,338
Total current assets	529,935	565,074
Property and equipment, net	18,586	16,968
Operating lease, right-of-use asset	35,158	0
Deferred contract acquisition costs	16,364	11,630
Other assets, noncurrent	8,922	6,962
Total assets	608,965	600,634
Current liabilities:
Accounts payable	2,110	228
Accrued compensation and benefits	24,134	24,748
Guarantee obligations	12,361	12,112
Provision for chargebacks, net	11,980	12,020
Operating Lease, Liability, Current	6,214	0
Accrued expenses and other current liabilities	15,813	13,306
Total current liabilities	72,612	62,414
Operating Lease, Liability, Noncurrent	31,202	0
Other liabilities, noncurrent	8,734	9,359
Total liabilities	112,548	71,773
Commitments and Contingencies
Temporary Equity, Carrying Amount, Attributable to Parent	0	0
Shareholders’ equity:
Additional paid-in capital	848,609	775,249
Accumulated other comprehensive profit (loss)	(1,639)	176
Accumulated deficit	(350,553)	(246,564)
Total shareholders’ equity	496,417	528,861
Total liabilities and shareholders’ equity	608,965	600,634
Common Class A
Shareholders’ equity:
Common stock, value, issued	0	0
Common Class B
Shareholders’ equity:
Common stock, value, issued	$ 0	$ 0

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Dec. 31, 2022
Retirement Benefits [Abstract]
Employee Benefit Plans	13. Employee Benefit Plans We have a defined-contribution plan in the United States intended to qualify under Section 401 of the Internal Revenue Code, or the 401(k) Plan. The 401(k) Plan covers substantially all employees who meet minimum age and service requirements and allows participants to defer a portion of their annual compensation on a pre-tax basis. We offer a safe harbor matching contribution in an amount equal to 100% of participating employee contributions to the plan up to 4% of the employee’s eligible compensation. During the years ended December 31, 2022, 2021, and 2020, we recorded $1.1 million $0.8 million, and $0.6 million, respectively, of expenses related to the 401(k) plan. Israeli Severance Pay Pursuant to Israel’s Severance Pay Law, Israeli employees are entitled to severance pay equal to one month’s salary for each year of employment, or a portion thereof. We have elected to include our employees in Israel under Section 14 of the Severance Pay Law, under which these employees are entitled only to monthly deposits made in their name with insurance companies, at a rate of 8.33% of their monthly salary. These payments release us from any future obligation under the Israeli Severance Pay Law to make severance payments in respect of those employees; therefore, any liability for severance pay due to these employees, and the deposits under Section 14 are not recorded as an asset in the consolidated balance sheets. During the years ended December 31, 2022, 2021, and 2020, we recorded $4.5 million, $3.8 million, and $2.7 million, respectively, in severance expenses related to these employees.

Revenue Recognition - Deferred Contract Fulfillment Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Movement In Deferred Contract Fulfillment Costs [Roll Forward]
Deferred Contract Fulfillment Costs, Noncurrent	$ 2,930	$ 2,166	$ 1,213
Increase (Decrease) To Deferred Contract Fulfillment Costs	2,189	1,789	1,558
Deferred Contract Fulfillment Costs, Amortization Expense	(1,446)	(1,025)	(605)
Deferred Contract Fulfillment Costs, Noncurrent	$ 3,673	$ 2,930	$ 2,166

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Cash flows from operating activities:
Net profit (loss)	$ (103,989)	$ (178,885)	$ (11,347)
Adjustments to reconcile net profit (loss) to net cash provided by (used in) operating activities:
Unrealized loss (gain) on foreign currency	(2,875)	382	186
Provision for (benefit from) account receivable allowances	3	268	12
Depreciation and amortization	3,607	1,990	1,360
Amortization of capitalized internal-use software costs	667	446	0
Amortization of deferred contract costs	6,419	4,122	2,175
Remeasurement of convertible preferred share warrant liabilities	0	101,413	3,850
Remeasurement of convertible preferred share tranche rights	0	21,260	1,959
Share-based compensation expense	67,467	33,358	7,945
Operating Lease, Right-of-Use Asset, Amortization Expense	4,211	0	0
Interest Income, Deposit with Financial Institution, Increase (Decrease)	(4,613)	0	0
Ordinary share warrants issued to a customer	1,535	777	0
Other	180	(121)	(9)
Changes in operating assets and liabilities:
Accounts receivable	(1,715)	1,440	(12,568)
Deferred contract acquisition costs	(9,707)	(7,744)	(6,462)
Prepaid expenses and other assets	4,026	(15,079)	(3,235)
Accounts payable	1,931	(832)	(3,707)
Accrued compensation and benefits	291	8,398	6,500
Guarantee obligations	249	(333)	3,308
Provision for chargebacks, net	(40)	1,438	4,126
Increase (Decrease) in Operating Lease Liability	(2,609)	0	0
Accrued expenses and other liabilities	8,710	7,424	2,787
Net cash provided by (used in) operating activities	(26,252)	(20,278)	(3,120)
Cash flows from investing activities:
Purchases of short-term deposits	(463,750)	(110,000)	(14,000)
Maturities of short-term deposits	261,750	39,063	0
Purchases of property and equipment	(6,126)	(12,254)	(1,507)
Capitalized software development costs	(1,886)	(1,250)	(1,454)
Net cash provided by (used in) investing activities	(210,012)	(84,441)	(16,961)
Cash flows from financing activities:
Proceeds from issuance of convertible preferred shares and warrants, net of issuance costs	0	26,781	53,559
Proceeds from cash exercise of series E-1 convertible preferred share warrants	0	6,489	0
Proceeds from exercise of share options	4,059	2,948	642
Proceeds from initial public offering, net of underwriting discounts and commissions	0	392,273	0
Payments of deferred offering costs	(204)	(5,302)	(176)
Net cash provided by (used in) financing activities	3,855	423,189	54,025
Effects of exchange rates on cash, cash equivalents, and restricted cash	(1,701)	0	0
Net increase (decrease) in cash, cash equivalents, and restricted cash	(234,110)	318,470	33,944
Cash, cash equivalents, and restricted cash—beginning of period	425,127	106,657	72,713
Cash, cash equivalents, and restricted cash—end of period	191,017	425,127	106,657
Supplemental disclosures of cash flow information:
Cash paid for interest	0	0	4
Cash paid for income taxes	18	647	1,176
Payments for Rent	4,357	0	0
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	792	0	0
Supplemental disclosures of noncash investing and financing activities:
Purchases of property and equipment during the period included in accounts payable and accrued expenses	926	2,042	184
Share-based compensation capitalized for software development	299	131	52
Software development costs, accrued but not paid	0	485	172
Deferred offering costs accrued but not paid	0	204	369
Conversion of convertible preferred shares into Class A ordinary shares upon IPO	0	291,296	0
Reclassification of convertible preferred share warrants upon IPO	0	110,502	0
Elimination of ordinary share par value and issuance of Class B ordinary shares upon Recapitalization	0	4	0
Reconciliation of cash, cash equivalents, and restricted cash within the consolidated balance sheets to the amounts shown in the consolidated statements of cash flows above:
Cash and cash equivalents	188,670	418,143	103,609
Restricted cash	2,347	6,984	3,048
Total cash, cash equivalents, and restricted cash	191,017	425,127	106,657
Tranche Rights
Supplemental disclosures of noncash investing and financing activities:
Settlement of convertible preferred share tranche rights	$ 0	$ 23,738	$ 551

Consolidated Balance Sheet Components - Other Liabilities, Noncurrent (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Deferred rent	$ 0	$ 6,580
Deferred Tax and Other Liabilities, Noncurrent	8,734	2,721
Other	0	58
Other liabilities, noncurrent	$ 8,734	$ 9,359

Cover	12 Months Ended
Cover	Dec. 31, 2022 shares
Document Information [Line Items]
Document Type	20-F
Document Registration Statement	false
Document Annual Report	true
Document Period End Date	Dec. 31, 2022
Current Fiscal Year End Date	--12-31
Document Transition Report	false
Document Shell Company Report	false
Entity File Number	001-40692
Entity Registrant Name	Riskified Ltd.
Entity Incorporation, State or Country Code	L3
Entity Address, Address Line One	Sderot Sha’ul HaMelech 37
Entity Address, City or Town	Tel Aviv-Yafo
Entity Address, Postal Zip Code	6492806
Entity Address, Country	IL
Title of 12(b) Security	Class A ordinary shares, no par value
Trading Symbol	RSKD
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
ICFR Auditor Attestation Flag	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Amendment Flag	false
Entity Central Index Key	0001851112
Document Fiscal Year Focus	2022
Document Fiscal Period Focus	FY
Common Class A
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	102,084,746
Common Class B
Document Information [Line Items]
Entity Common Stock, Shares Outstanding	68,945,014
Business Contact
Document Information [Line Items]
Contact Personnel Name	Eido Gal
Entity Address, Address Line One	220 5th Avenue
Entity Address, Address Line Two	2nd Floor
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10001
Contact Personnel Email Address	ir@riskified.com

Leases - Minimum Rental Payments (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2022	$ 6,975
2023	6,853
2024	6,648
2025	6,403
2026	6,448
Thereafter	22,631
Total	$ 55,958

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Revenue	$ 261,247	$ 229,141	$ 169,740
Cost of revenue	126,150	106,170	76,916
Gross profit	135,097	122,971	92,824
Operating expenses:
Research and development	72,014	55,301	36,642
Sales and marketing	87,722	70,165	41,137
General and administrative	83,993	52,903	21,853
Total operating expenses	243,729	178,369	99,632
Operating profit (loss)	(108,632)	(55,398)	(6,808)
Interest income (expense), net	10,180	591	145
Other income (expense), net	505	(122,520)	(3,609)
Profit (loss) before income taxes	(97,947)	(177,327)	(10,272)
Provision for (benefit from) income taxes	6,042	1,558	1,075
Net profit (loss)	$ (103,989)	$ (178,885)	$ (11,347)
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)	167,667,374	76,459,625
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	167,667,374	76,459,625
Common Class A
Operating expenses:
Net profit (loss) per share attributable to ordinary shareholders, basic (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Net profit (loss) per share attributable to ordinary shareholders, diluted (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)		38,757,558	14,022,788
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	92,450,867	38,757,558	14,022,788
Common Class B
Operating expenses:
Net profit (loss) per share attributable to ordinary shareholders, basic (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Net profit (loss) per share attributable to ordinary shareholders, diluted (in dollars per share)	$ (0.62)	$ (2.34)	$ (0.81)
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic (in shares)			14,022,788
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	75,216,507	37,702,067	14,022,788

Derivative Instruments and Hedging - Derivative Instruments (Details) - USD ($)	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total derivative instruments	$ 77,812,000	$ 23,151,000
Foreign Exchange Forward \| Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total derivative instruments	63,998,000	21,865,000	$ 0
Foreign Exchange Forward \| Not Designated as Hedging Instrument
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Total derivative instruments	$ 13,814,000	$ 1,286,000

Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2022

Accounting Policies [Abstract]

Basis of Presentation

Basis of PresentationThe accompanying consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States, or U.S. GAAP, and include the accounts of Riskified Ltd. and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Certain amounts in prior periods have been reclassified to conform to the current period presentation.

Use of Estimates

Foreign Currency

The U.S. dollar is our functional currency and the functional currency of a majority of our subsidiaries.

Concentration of Risks

The following table summarize our merchants that represented 10% or more of Accounts receivable, net and Revenue:


	Accounts Receivable, Net				Revenue
	As of December 31,				Year Ended December 31,
	2022		2021		2022		2021		2020
Customer A	22	%	32	%	13	%	16	%	18	%
Customer B	*		*		*		*		10	%
Customer C	*		11	%	*		*		*

________________

*Represents less than 10%

Cash, Cash Equivalents, and Restricted Cash

Short-Term Deposits

Short-term deposits consist of bank deposits with original maturities between 4 and 12 months and that mature within 12 months of the balance sheet date. Short-term deposits are reported at cost.

Fair Value Measurements

Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities.

Level 3 – Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Accounts Receivable, Net

Accounts Receivable, NetAccounts receivable are recorded at the invoiced amount, net of an allowance for doubtful accounts. The allowance for doubtful accounts is based on our assessment of the collectability of accounts. We regularly review the adequacy of the allowance for doubtful accounts based on a combination of factors, including an assessment of the current merchant’s credit worthiness, the age of the balance, the nature and size of the merchant, the financial condition of the merchant, and the amount of any receivables in dispute. Accounts receivable deemed uncollectible are charged against the allowance for doubtful accounts when identified.

Derivative Financial Instruments

Property and Equipment, Net

The estimated useful lives of our property and equipment are as follows:


Computer equipment			3 years
Furniture and office equipment			5 – 7 years
Leasehold improvements			Shorter of remaining lease term or estimated useful life

Capitalized Software Costs and Cloud Computing Arrangement Implementation Costs

Capitalized Software CostsCosts related to software acquired, developed, or modified solely to meet our internal requirements, with no substantive plans to market such software at the time of development are capitalized. Costs incurred during the preliminary project stage and during the post implementation operational stage are expensed as incurred. Eligible costs incurred during the application development stage of the project are capitalized. Capitalized software development costs are recorded as part of Other assets, noncurrent in the consolidated balance sheets. Maintenance costs are expensed as incurred. Capitalized software development costs are amortized on a straight-line basis over the software’s estimated useful life, which is four years and are recorded in cost of revenue in the consolidated statements of operations.Cloud Computing Arrangement Implementation CostsWe capitalize certain implementation costs incurred in a cloud computing arrangement during the application development stage pursuant to Accounting Standards Codification, or ASC, 350-40, Internal Use Software. These costs are amortized over the term of the hosting arrangement on a straight-line basis, and are included within operating expenses in the consolidated statements of operations. Costs incurred in the preliminary stages of development are analogous to research and development activities and are expensed as incurred. These capitalized costs are included in Other assets, noncurrent in the consolidated balance sheets.

Leases

Our lease accounting policy under ASC Topic 840, “Leases” until January 1, 2022, prior to the adoption of the new lease guidance was as follows:

We elected the practical expedient to not separate lease and non-lease components for our leases.

We sublease certain office spaces to third parties. Operating sublease income is recognized on a straight-line basis over the term of the agreement.

Impairment of Long-Lived Assets

Indemnifications Guarantees

Indemnification Guarantees

Convertible Preferred Share Warrants and Convertible Preferred Share Tranche Rights

Ordinary Share Warrants

Revenue Recognition

We present revenue net of cancellations and adjustments for minimum service level agreements.

1.Identification of the contract, or contracts, with the merchant

2.Identification of the performance obligations in the contract

from the issuance of indemnification guarantees is accounted for under ASC 460. Refer to “Indemnification Guarantees” above and Note 8 below for additional information.

3.Determination of the transaction price

4.Allocation of the transaction price to the performance obligations in the contract

5.Recognition of the revenue when, or as, a performance obligation is satisfied

Contract Balances

Cost to Obtain a Contract

We capitalize sales commissions and associated payroll taxes paid that are incremental to the acquisition of merchant contracts. These costs are recorded as Deferred contract acquisition costs on the

Cost to Fulfill a Contract

Cost of Revenue

Research and Development

software hosting fees used by our research and development teams, depreciation expense, and allocated overhead. Research and development costs are expensed as incurred.

Sales and Marketing

General and Administrative

Share-Based Compensation

Income Taxes

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders

Segment Information

Recently Adopted Accounting Pronouncements and Recently Issued Accounting Pronouncements

Recently Adopted Accounting Pronouncements

Recently Issued Accounting Pronouncements

Leases - Maturity Lease Schedule (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
2023	$ 6,353
2024	5,976
2025	5,941
2026	5,986
2027	6,031
Thereafter	13,738
Total undiscounted lease payments	44,025
Less: imputed interest	(6,609)
Present value of operating lease liabilities	$ 37,416

Income Taxes - Schedule of Provision for Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Examination [Line Items]
Total current income tax expense	$ 8,719	$ 125	$ 36
Total deferred income tax expense	(2,677)	1,433	1,039
Total provision for income taxes	6,042	1,558	1,075
Israel
Income Tax Examination [Line Items]
Total current income tax expense	4	4	4
Total deferred income tax expense	0	0	0
International
Income Tax Examination [Line Items]
Total current income tax expense	8,715	121	32
Total deferred income tax expense	$ (2,677)	$ 1,433	$ 1,039

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

Guarantees, Commitments, and Contingencies - Non-Cancelable Purchase Obligations Maturity Schedule (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Purchase Obligation, to be Paid, Year One	$ 11,448
Purchase Obligation, to be Paid, Year Two	10,452
Purchase Obligation, to be Paid, Year Three	127
Purchase Obligation, Total	$ 22,027

Ordinary Shares and Equity Incentive Plan - Schedule of Ordinary Shares Reserved for Issuance (Details) - shares	Dec. 31, 2022	Dec. 31, 2021	Jul. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)	43,647,083	42,513,532
2013 Equity Incentive Plan \| Options and RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)	20,062,824	26,460,287
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)	8,674,132	13,474,214	13,951,037
2021 Equity Incentive Plan \| Options and RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)	13,134,652	803,556
Warrants To Purchase Ordinary Shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)	1,775,475	1,775,475

Guarantees, Commitments, and Contingencies - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Guarantee obligations	$ 12,361	$ 12,112
Guarantee obligations, term	six
Provision for chargebacks, net	$ 11,980	$ 12,020
Percentage of guarantees paid		0.10%
Chargeback expense	103,200	$ 85,500	$ 63,100
Lease cost		5,900	4,200
Sublease income		100	$ 900
Contractual obligation	$ 3,000	$ 3,300
Contractual obligation, term	3 months
Indemnification Agreement
Purchase Commitment, Excluding Long-term Commitment [Line Items]
Guarantor obligations, maximum exposure	$ 50,100,000

Fair Value Measurements - Level 3 Financial Instruments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
Warrant Liabilities
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	$ 9,089
Changes in fair value	101,413
Settlement of convertible preferred share	74,724
Reclassification of Series B/C convertible preferred share warrant liability to equity	(35,778)
Ending balance	0
Tranche Rights
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Beginning balance	2,478
Changes in fair value	21,260
Settlement of convertible preferred share	(23,738)
Reclassification of Series B/C convertible preferred share warrant liability to equity	0
Ending balance	$ 0

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders (Tables)

12 Months Ended

Dec. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table sets forth the computation of basic and diluted net profit (loss) per share attributable to ordinary shareholders for the periods presented:


	Year Ended December 31,
	2022				2021				2020
	Class A		Class B		Class A		Class B		Ordinary Shares
	(in thousands, except share and per share data)
Numerator:
Net profit (loss) attributable to ordinary shareholders, basic and diluted	$	(57,339)	$	(46,650)	$	(90,677)	$	(88,208)	$	(11,347)

Denominator:
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, basic and diluted	92,450,867		75,216,507		38,757,558		37,702,067		14,022,788
Net profit (loss) per share attributable to ordinary shareholders, basic and diluted	$	(0.62)	$	(0.62)	$	(2.34)	$	(2.34)	$	(0.81)

Schedule of Weighted Average Number of Shares

The weighted-average potential ordinary shares that were excluded from the computation of diluted net profit (loss) per share attributable to ordinary shareholders for the periods presented because including them would have been anti-dilutive, or whose issuance is contingent upon the satisfaction of certain market conditions, are as follows:


	Year Ended December 31,
	2022		2021		2020
	Class A	Class B	Class A	Class B	Ordinary Shares
Convertible preferred shares	—	—	17,817,201	35,634,404	28,217,680
Warrants to purchase ordinary shares(1)(2)	873,370	850,650	1,488,819	354,243	1,858,467
Outstanding share options	16,067,720	—	12,239,441	—	5,985,236
Unvested RSUs	16,176,275	2,131,015	1,562,388	1,965,604	—
Total	33,117,365	2,981,665	33,107,849	37,954,251	36,061,383

_________________

Derivative Instruments and Hedging

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging

5. Derivative Financial Instruments and Hedging

Notional Amount of Foreign Currency Contracts

Our foreign currency contracts are denominated in NIS and Euro. The gross notional amounts of outstanding foreign currency contracts in U.S. dollar were as follows:


	As of December 31,
	2022		2021
	(in thousands)
Derivative Designated as Hedging Instruments:
Foreign currency contracts	$	63,998	$	21,865
Derivatives Not Designated as Hedging Instruments:
Foreign currency contracts	13,814		1,286
Total derivative instruments	$	77,812	$	23,151

Effect of Foreign Currency Contracts on the Consolidated Statements of Operations

The effect of foreign currency contracts on the Consolidated Statements of Operations during the periods presented were as follows:


	Derivatives Designated as Hedging Instruments						Derivatives Not Designated as Hedging Instruments
	Year Ended December 31,						Year Ended December 31,
	2022		2021		2020		2022		2021		2020
	(in thousands)
Statement of Operations Location:
Cost of revenue	$	(175)	$	—	$	—	$	—	$	—	$	—
Research and development	(1,718)		—		—		—		—		—
Sales and marketing	(732)		—		—		—		—		—
General and administrative	(706)		—		—		—		—		—
Other income (expense), net	—		—		—		(1,659)		59		231
Total gain (loss) recognized in earnings	$	(3,331)	$	—	$	—	$	(1,659)	$	59	$	231

Effect of Foreign Currency Contracts on Accumulated Other Comprehensive Profit (Loss)

The following table represents the net unrealized gains (losses) of foreign currency contracts designated as hedging instruments, net of tax, that were recorded in accumulated other comprehensive profit (loss) during the periods presented, and their effect on other comprehensive profit (loss) for the periods presented:


	Net Unrealized Gains (Losses) on Derivatives Designated as Hedging Instruments
	(in thousands)
Balance as of December 31, 2020	$	—
Amount of net gains (loss) recorded in accumulated other comprehensive profit (loss)	176
Amount of net gains (loss) reclassified from accumulated other comprehensive profit (loss) to earnings	—
Other comprehensive profit (loss)	176
Balance as of December 31, 2021	176
Amount of net gains (loss) recorded in accumulated other comprehensive profit (loss)	1,448
Amount of net gains (loss) reclassified from accumulated other comprehensive profit (loss) to earnings	(3,331)
Other comprehensive profit (loss)	(1,883)
Balance as of December 31, 2022	$	(1,707)

There were no foreign currency contracts designated as hedging instruments for the year ended December 31, 2020. As of December 31, 2021, net deferred gains totaled $0.2 million and were recognized during the year ended December 31, 2022 in the same financial statement line item as the hedged items. As of December 31, 2022, $1.7 million of net deferred losses were recorded in accumulated other comprehensive profit (loss) of which all are expected to be recognized as operating expenses in the same financial statement line item in the Consolidated Statements of Operations to which the derivative relates over the next twelve months.

Ordinary Shares and Equity Incentive Plan - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	1 Months Ended	12 Months Ended
	Apr. 30, 2020	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Jul. 31, 2021	Jul. 27, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)		43,647,083	42,513,532
Granted (in shares)		15,873,386
Total share-based compensation expense		$ 67,467	$ 33,358	$ 7,945
2021 Employee Share Purchase Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)						3,742,961
Ordinary shares reserved for future issuance, annual increase percentage						1.00%
Maximum ownership of shares						5.00%
Common Class A
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in dollars per share)			900,000,000		900,000,000
Common Class B
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Common stock, shares authorized (in dollars per share)			232,500,000		232,500,000
Public Stock Offering
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense			$ 5,500
Sale of stock, number of shares issued in transaction (in shares)	1,120,809
Public Stock Offering - Shares From Existing Shareholders
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Sale of stock, number of shares issued in transaction (in shares)	521,473
Sale of stock, price per share (in dollars per share)	$ 18.08
Restricted Stock Units (RSUs)
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		3 years 3 months 18 days
Share-based compensation expense not yet recognized		$ 123,100
Restricted Stock Units (RSUs) \| Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense		$ 13,000	$ 6,000
Restricted Stock Units (RSUs) \| Share-based Payment Arrangement, Tranche Two
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		6 months
Restricted Stock Units (RSUs) \| Share-based Payment Arrangement, Tranche Three
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		7 years
Share-based Payment Arrangement, Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period		4 years
Award expiration period		10 years
Weighted average grant date fair value of options granted in period (in dollars per share)			$ 16.63	$ 4.40
Aggregate grant date fair value of options vested during the period		$ 12,000	$ 3,200	$ 2,600
Share-based payment arrangement, nonvested award, cost not yet recognized amount		$ 14,200
Share-based payment arrangement, nonvested award, cost not yet recognized, period for recognition		2 years
Expected dividend yield		0.00%	0.00%	0.00%
2021 Equity Incentive Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total ordinary shares reserved (in shares)		8,674,132	13,474,214		13,951,037
Ordinary shares reserved for future issuance, annual increase percentage					5.00%

Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Deferred tax assets:
Research and development expenses	$ 7,374	$ 1,436	$ 1,742
Stat to GAAP adjustments	0	0	1,493
Net operating loss	9,059	5,212	941
Deferred Compensation	5,214	1,009	0
Operating lease liabilities	6,456	0	0
Vacation and convalescence	730	799	364
Bad debts	78	93	100
Other	2,166	466	374
Gross deferred tax assets	31,077	9,015	5,014
Valuation allowance	(20,822)	(8,699)	(4,255)
Total deferred tax assets	10,255	316	759
Deferred tax liabilities:
Operating lease right-of-use assets	(6,387)	0	0
Deferred contract acquisition costs	(3,009)	(2,324)	(1,543)
Property and equipment	(279)	(283)	(439)
Capitalized Software	(591)	(397)	0
Other	0	0	(34)
Gross deferred tax liabilities	(10,266)	(3,004)	(2,016)
Net deferred tax liabilities	(11)	(2,688)	$ (1,257)
Increase (decrease) in valuation allowance for deferred tax asset	$ 12,100	$ 4,400

Consolidated Balance Sheet Components (Tables)

12 Months Ended

Dec. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Property, Plant and Equipment

The estimated useful lives of our property and equipment are as follows:


Computer equipment			3 years
Furniture and office equipment			5 – 7 years
Leasehold improvements			Shorter of remaining lease term or estimated useful life

Property and Equipment, Net

Property and equipment, net consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Computer equipment	$	6,912	$	6,104
Furniture and office equipment	2,531		2,216
Leasehold improvements	16,576		12,825
Property and equipment, gross	26,019		21,145
Less: accumulated depreciation and amortization	(7,433)		(4,177)
Property and equipment, net	$	18,586	$	16,968

Schedule of Accrued Liabilities

Accrued expenses and other current liabilities consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Accrued expenses	$	6,175	$	7,557
Customer credits	5,388		3,462
Derivative financial instruments	2,397		61
Other	1,853		2,226
Accrued expenses and other current liabilities	$	15,813	$	13,306

Other Noncurrent Liabilities

Other liabilities, noncurrent consisted of the following:


	As of December 31,
	2022		2021
	(in thousands)
Other tax liabilities	$	8,734	$	2,721
Deferred rent	—		6,580
Other	—		58
Other liabilities, noncurrent	$	8,734	$	9,359

Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Disaggregation of Revenue [Line Items]
Revenues, Total	$ 261,247	$ 229,141	$ 169,740
Fraud Service Revenue
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	156,040	132,261	96,774
Indemnification Service Revenue
Disaggregation of Revenue [Line Items]
Revenue Not from Contract with Customer	$ 105,207	$ 96,880	$ 72,966
Revenue Benchmark \| Product Concentration Risk
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	100.00%	100.00%	100.00%
Revenue Benchmark \| Product Concentration Risk \| Fraud Service Revenue
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	60.00%	58.00%	57.00%
Revenue Benchmark \| Product Concentration Risk \| Indemnification Service Revenue
Disaggregation of Revenue [Line Items]
Concentration risk, percentage	40.00%	42.00%	43.00%

- Definition

Amount, excluding tax collected from customer, of revenue from satisfaction of performance obligation by transferring promised good or service to customer. Tax collected from customer is tax assessed by governmental authority that is both imposed on and concurrent with specific revenue-producing transaction, including, but not limited to, sales, use, value added and excise.

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- Definition

Amount of revenue recognized from goods sold, services rendered, insurance premiums, or other activities that constitute an earning process. Includes, but is not limited to, investment and interest income before deduction of interest expense when recognized as a component of revenue, and sales and trading gain (loss).

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+ Details

Leases - Lease Cost (Details) $ in Thousands	12 Months Ended
Leases - Lease Cost (Details) $ in Thousands	Dec. 31, 2022 USD ($)
Leases [Abstract]
Operating lease cost	$ 6,140
Variable lease cost	1,257
Short-term lease cost	304
Sublease income	(786)
Total operating lease cost	$ 6,915

CONSOLIDATED STATEMENTS OF CONVERTIBLE PREFERRED SHARES AND SHAREHOLDERS’ DEFICIT (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021
Series E Convertible Preferred Stock [Member]
Payments of temporary equity issuance costs	$ 819	$ 1,540

Income Taxes - Reconciliation of Effective Income Tax Provision (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Income Tax Contingency [Line Items]
Israel tax benefit at statutory rate	$ (22,528)	$ (40,784)	$ (2,362)
Preferred enterprise	10,573	3,052	169
Foreign rate differential	(1,050)	912	332
Share-based compensation	9,717	1,753	1,328
Prior year tax income/(expense)	(6,675)	84	0
Permanent differences	(3,351)	98	83
ASC 606	0	0	0
Uncertain tax position	7,233	3,784	5
Change in valuation allowance	12,123	4,444	184
Total provision for income taxes	$ 6,042	$ 1,558	$ 1,075
Corporates tax rate	6.17%	0.88%	10.00%
Warrants to purchase ordinary shares
Income Tax Contingency [Line Items]
Warrant revaluation	$ 0	$ 23,325	$ 1,336
Tranche Rights
Income Tax Contingency [Line Items]
Warrant revaluation	$ 0	$ 4,890	$ 0

Derivative Instruments and Hedging (Tables)

12 Months Ended

Dec. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Derivative Instruments

Our foreign currency contracts are denominated in NIS and Euro. The gross notional amounts of outstanding foreign currency contracts in U.S. dollar were as follows:


	As of December 31,
	2022		2021
	(in thousands)
Derivative Designated as Hedging Instruments:
Foreign currency contracts	$	63,998	$	21,865
Derivatives Not Designated as Hedging Instruments:
Foreign currency contracts	13,814		1,286
Total derivative instruments	$	77,812	$	23,151

Derivative Instruments, Gain (Loss)

The effect of foreign currency contracts on the Consolidated Statements of Operations during the periods presented were as follows:


	Derivatives Designated as Hedging Instruments						Derivatives Not Designated as Hedging Instruments
	Year Ended December 31,						Year Ended December 31,
	2022		2021		2020		2022		2021		2020
	(in thousands)
Statement of Operations Location:
Cost of revenue	$	(175)	$	—	$	—	$	—	$	—	$	—
Research and development	(1,718)		—		—		—		—		—
Sales and marketing	(732)		—		—		—		—		—
General and administrative	(706)		—		—		—		—		—
Other income (expense), net	—		—		—		(1,659)		59		231
Total gain (loss) recognized in earnings	$	(3,331)	$	—	$	—	$	(1,659)	$	59	$	231

Schedule of Accumulated Other Comprehensive Income (Loss)


	Net Unrealized Gains (Losses) on Derivatives Designated as Hedging Instruments
	(in thousands)
Balance as of December 31, 2020	$	—
Amount of net gains (loss) recorded in accumulated other comprehensive profit (loss)	176
Amount of net gains (loss) reclassified from accumulated other comprehensive profit (loss) to earnings	—
Other comprehensive profit (loss)	176
Balance as of December 31, 2021	176
Amount of net gains (loss) recorded in accumulated other comprehensive profit (loss)	1,448
Amount of net gains (loss) reclassified from accumulated other comprehensive profit (loss) to earnings	(3,331)
Other comprehensive profit (loss)	(1,883)
Balance as of December 31, 2022	$	(1,707)

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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+ Details

Consolidated Balance Sheet Components - Narrative (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Depreciation	$ 3.4	$ 1.8	$ 1.3

Temporary Equity (Tables)

12 Months Ended

Dec. 31, 2022

Temporary Equity Disclosure [Abstract]

Schedule of Stockholders' Equity Note, Warrants or Rights

As of December 31, 2022, and 2021, the following warrants were issued and outstanding, after giving effect to the Recapitalization:


	As of December 31, 2022 and 2021
	Issued and Outstanding Share Warrants		Weighted-Average Exercise Price				Expiration Date
	Class A Ordinary Shares	Class B Ordinary Shares	Class A Ordinary Shares		Class B Ordinary Shares
Warrants to purchase ordinary shares	425,325	850,650	$	0.28	$	0.28	April 2025
Warrants issued to customers	499,500	—	$	0.01	$	—	June 2028
Total	924,825	850,650

Income Taxes - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Income Tax Contingency [Line Items]
Increase (decrease) in valuation allowance for deferred tax asset	$ 12,100	$ 4,400
Unrecognized tax benefits	11,252	4,119	$ 234	$ 234
Unrecognized tax benefits, income tax penalties and interest expense	320	10
Domestic Tax Authority
Income Tax Contingency [Line Items]
Operating loss carryforwards	68,900	37,400
Foreign Tax Authority
Income Tax Contingency [Line Items]
Operating loss carryforwards	11,200	9,800
State and Local Jurisdiction
Income Tax Contingency [Line Items]
Operating loss carryforwards		$ 27,400
State and Local Jurisdiction \| Tax Year 2027
Income Tax Contingency [Line Items]
Operating loss carryforwards	26,300
State and Local Jurisdiction \| Latest Tax Year
Income Tax Contingency [Line Items]
Operating loss carryforwards	1,100
State and Local Jurisdiction \| Tax Year 2041
Income Tax Contingency [Line Items]
Operating loss carryforwards	$ 26,300

Ordinary Shares and Equity Incentive Plan

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Ordinary Shares and Equity Incentive Plan

10. Ordinary Shares and Equity Incentive Plan

Ordinary Shares

Upon the completion of the IPO, our amended and restated AoA became effective, which authorized the issuance of up to 900,000,000 Class A ordinary shares with no par value and 232,500,000 Class B ordinary shares with no par value, respectively.

We have the following ordinary shares reserved for future issuance:


	As of December 31,
	2022	2021
Warrants to purchase ordinary shares(1)	1,775,475	1,775,475
Share options and RSUs issued and outstanding under the 2013 Plan	20,062,824	26,460,287
Share options and RSUs issued and outstanding under the 2021 Plan	13,134,652	803,556
Remaining shares available for future issuance under the 2021 Plan	8,674,132	13,474,214
Total ordinary shares reserved	43,647,083	42,513,532

_________________

(1)Includes the warrants to purchase ordinary shares and warrants issued to customers.

Equity Incentive Plan

The 2013 Equity Incentive Plan, or the 2013 Plan, was adopted by our board of directors on July 13, 2013 and amended and restated on February 23, 2021. The U.S. Sub-Plan to the 2013 Plan, or the U.S. Sub-Plan, was adopted by our board of directors on May 10, 2015 and amended and restated on February 23, 2021. The 2013 Plan and U.S. Sub-Plan provide for the grant of equity-based incentive awards to our employees, directors, office holders, and consultants in order to incentivize them to increase their efforts on behalf of us and to promote the success of our business.

Immediately prior to the completion of the IPO, we adopted the 2021 Share Incentive Plan, or the 2021 Plan. Following the effectiveness of the 2021 Plan, we no longer grant any awards under the 2013 Plan, though previously granted share-based awards under the 2013 Plan remain outstanding and governed by the 2013 Plan. The 2021 Plan provides for the grant of stock options (including incentive stock options and non-qualified stock options), Class A ordinary shares, restricted shares, RSUs, stock appreciation rights and other share-based awards. The maximum number of Class A ordinary shares available for issuance under the 2021 Plan is equal to the sum of (i) 13,951,037 Class A ordinary shares, (ii) any shares subject to awards under the 2013 Plan which have expired, or were cancelled, terminated, forfeited or settled in cash in lieu of issuance of shares or became unexercisable without having been exercised and (iii) an annual increase on the first day of each year beginning in 2022 and on January 1st of each calendar year thereafter during the term of the 2021 Plan, equal to the lesser of (A) 5% of the outstanding Class A ordinary shares of the Company on the last day of the immediately preceding calendar year, on a fully diluted, as converted basis; and (B) such amount as determined by our board of directors if so determined prior to January 1 of a calendar year, provided that no more than 13,951,037 Class A ordinary shares may be issued upon the exercise of incentive share options.

Share Options and Shares Available for Grant

Share options generally vest over four years and expire ten years after the date of grant. We issue Class A ordinary shares upon exercise of share options. A summary of share options under our equity incentive plan and related information is as follows:


	Share Options Outstanding
	Outstanding Share Options	Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
	(in thousands, except share, life and per share data)
Balance as of December 31, 2021	18,834,740	$	2.05	7.0	$	109,397
Options exercised	(3,919,606)	$	1.07
Options forfeited	(1,129,920)	$	3.88
Balance as of December 31, 2022	13,785,214	$	2.17	6.1	$	34,326
Exercisable as of December 31, 2022	10,244,620	$	1.65	5.5	$	30,632

There were no share options granted during the year ended December 31, 2022. The weighted-average grant date fair value of share options granted during the years ended December 31, 2021 and 2020 were $16.63, and $4.40, respectively. The aggregate grant date fair value of share options vested during the years ended December 31, 2022, 2021, and 2020 were $12.0 million, $3.2 million, and $2.6 million, respectively. The total intrinsic value of share options exercised during the years ended December 31, 2022, 2021, and 2020 were $17.4 million, $68.6 million, and $4.3 million, respectively. As of December 31, 2022, unrecognized share-based compensation cost related to unvested share options was $14.2 million, which is expected to be recognized over a weighted-average period of 2.0 years.

The Black-Scholes assumptions used to value the employee share options at the grant dates are as follows:


	Year Ended December 31,
	2021	2020
Expected term (years)	5.44 - 6.60	5.75 - 6.11
Expected volatility	67.26% - 68.52%	55.00% - 65.00%
Risk-free interest rate	0.99% - 1.12%	0.52% - 1.73%
Expected dividend yield	0.00%	0.00%

These assumptions and estimates were determined as follows:

•Fair Value of Ordinary Shares - Prior to IPO, the fair value was determined by our board of directors, with input from management and valuation reports prepared by third-party valuation specialists. Post IPO, the fair value of each ordinary share was based on the closing price of our publicly traded ordinary shares as reported on the date of the grant.

•Expected Term - The expected term represents the period that the share options are expected to be outstanding. For share option grants that are considered to be “plain vanilla,” we determine the expected term using the simplified method. The simplified method deems the term to be the average of the time-to-vesting and the contractual life of the share options.

•Expected Volatility - As we have a short trading history for our ordinary shares, the expected volatility is derived from the average historical share volatilities of several unrelated public

companies within our industry that we consider to be comparable to our own business over a period equivalent to the option’s expected term.

•Risk-Free Interest Rate - The risk-free rate for the expected term of the share options are based on the yields of U.S. Treasury securities with maturities appropriate for the expected term of employee share option awards.

•Expected Dividend Yield. - We have never declared or paid any cash dividends and do not presently plan to pay cash dividends in the foreseeable future. As a result, an expected dividend yield of zero percent was used.

Restricted Share Units

RSUs vest either upon the satisfaction of service-based vesting conditions, the satisfaction of both service-based and performance-based vesting conditions, or the satisfaction of service-based, performance-based, and market-based vesting conditions. Refer to Note 2 for more information regarding the vesting conditions of our RSUs. RSUs granted under the 2013 Plan can only vest prior to the expiration date of the award which is seven years from the date of grant. Any RSUs that have not vested will automatically terminate on their expiration date. RSUs granted under the 2021 Plan do not have an expiration date.

A summary of RSU activity, including activity under our equity incentive plan, and related information is as follows:


	Number of Shares	Weighted-Average Grant-Date Fair Value Per Share
Unvested as of December 31, 2021	8,429,103	$	15.01
Granted	15,873,386	$	6.04
Vested	(3,145,103)	$	10.46
Forfeited	(1,745,124)	$	7.81
Unvested as of December 31, 2022	19,412,262	$	9.06

As of December 31, 2022, total unrecognized share-based compensation expense related to unvested RSUs was approximately $123.1 million, which is expected to be recognized over a weighted-average period of 3.3 years.

2021 Employee Share Purchase Plan

We adopted the 2021 Employee Share Purchase Plan, or ESPP, immediately prior to our IPO. A total of 3,742,961 Class A ordinary shares are available for sale under the ESPP, subject to adjustment as provided for in the ESPP. In addition, on the first day of each fiscal year beginning on January 1, 2022 and ending on and including January 1, 2031, such pool of Class A ordinary shares shall be increased by that number of our Class A ordinary shares equal to the lesser of: (i) 1% of the outstanding Class A ordinary shares as of the last day of the immediately preceding fiscal year, determined on a fully diluted as-converted basis; or (ii) such other amount as our board of directors may determine. In accordance with the above, our board of directors determined not to increase the number of Class A ordinary shares available for sale under the ESPP as of January 1, 2022 or January 1, 2023.

Generally, all of our employees are eligible to participate if they are employed by us. However, an employee may not be granted rights to purchase our ordinary shares under the ESPP if such employee (i) immediately after the grant would own capital shares or hold outstanding share options to purchase such shares possessing 5% or more of the total combined voting power or value of all classes of our shares or any of our subsidiaries.

As of December 31, 2022, we have not effected any offering under the ESPP.

Secondary Transaction

In April 2020, in conjunction with the Series E convertible preferred shares financing, certain of our employees and shareholders sold 1,120,809 ordinary shares, of which 521,473 shares were sold by our employees to existing investors at a per share price of $18.08. As the purchases were made by economic interest holders in our acquired shares from our employees, we assessed the impact of this transaction at a price in excess of fair value of such shares. Accordingly, we recognized $5.5 million of such excess value as share-based compensation expense during the year ended December 31, 2020.

CEO Multi-Year Equity Award

In July 2021, our board of directors and shareholders granted our chief executive officer, Mr. Gal, a multi-year equity award, comprising 3,993,440 RSUs (the “Multi-Year Award”). The grant date fair value of the Multi-Year Award, which is the amount of share-based compensation expense that we recognize, is primarily determined based on the share price on the date the award is granted and is not based on our current share price. This amount will be expensed utilizing the accelerated attribution method over the requisite service period of ten years which attributes higher expenses to the earlier periods of the requisite service period.

The Multi-Year Award is structured so that meaningful value may only be realized upon the achievement of sustained and significant high performance levels. The award is divided into ten tranches that are eligible to vest based on the achievement of stock price goals, which range from $26.67 to $106.67, measured based on the average of our stock price over a 60 trading day trailing average during predefined performance periods, subject to Mr. Gal’s continued employment as our Chief Executive Officer through each such period. In order to earn all of the tranches, the stock price will have to be over 5x the price at IPO. No tranches of the Multi-Year Award were earned or vested in 2022.

In addition to the service-based vesting condition, and market-based vesting condition, each described above, the Multi-Year Award is also subject to a performance-based vesting condition. The performance-based vesting condition underlying the Multi-Year Award was satisfied upon the occurrence of our IPO. We recognized $13.0 million and $6.0 million in share-based compensation expense related to the Multi-Year Award during the years ended December 31, 2022 and December 31, 2021, respectively.

Share-Based Compensation

Share-based compensation expense by line item in the consolidated statements of operations is summarized as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Cost of revenue	$	621	$	216	$	38
Research and development	10,005		4,246		3,621
Sales and marketing	18,253		10,710		2,814
General and administrative	38,588		18,186		1,472
Total share-based compensation expense	$	67,467	$	33,358	$	7,945

Audit Information	12 Months Ended
Audit Information	Dec. 31, 2022
Audit Information [Abstract]
Auditor Firm ID	1281
Auditor Name	KOST FORER GABBAY & KASIERER
Auditor Location	Tel-Aviv, Israel

Ordinary Shares and Equity Incentive Plan - RSU Activity (Details)	12 Months Ended
	Dec. 31, 2022 $ / shares shares
Number of Shares
Unvested as of December 31, 2020 (in shares) \| shares	8,429,103
Granted (in shares) \| shares	15,873,386
Vested (in shares) \| shares	(3,145,103)
Forfeited (in shares) \| shares	(1,745,124)
Unvested as of December 31, 2021 (in shares) \| shares	19,412,262
Weighted-Average Grant-Date Fair Value Per Share
Unvested beginning balance, Weighted-Average Grant-Date Fair Value Per Share (in dollars per share) \| $ / shares	$ 15.01
Granted, Weighted-Average Grant-Date Fair Value Per Share (in dollars per share) \| $ / shares	6.04
Vested, Weighted-Average Grant-Date Fair Value Per Share (in dollars per share) \| $ / shares	10.46
Forfeited, Weighted-Average Grant-Date Fair Value Per Share (in dollars per share) \| $ / shares	7.81
Unvested ending balance, Weighted-Average Grant-Date Fair Value Per Share (in dollars per share) \| $ / shares	$ 9.06

Net Profit (Loss) Per Share Attributable to Ordinary Shareholders - Schedule of Anti-Dilutive Securities (Details) - shares	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	167,667,374	76,459,625
Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	33,117,365	33,107,849	36,061,383
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	92,450,867	38,757,558	14,022,788
Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,981,665	37,954,251
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted-average shares used in computing net profit (loss) per share attributable to ordinary shareholders, diluted (in shares)	75,216,507	37,702,067	14,022,788
Convertible Preferred Stock \| Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	17,817,201	28,217,680
Convertible Preferred Stock \| Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	35,634,404
Warrants to purchase ordinary shares \| Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	873,370	1,488,819	1,858,467
Warrants to purchase ordinary shares \| Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	850,650	354,243
Warrants to purchase ordinary shares \| Series C Convertible Preferred Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	70,110,425	35,744,158
Share-based Payment Arrangement \| Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	16,067,720	12,239,441	5,985,236
Share-based Payment Arrangement \| Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	0	0
Restricted Stock Units (RSUs) \| Common Class A
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	16,176,275	1,562,388	0
Restricted Stock Units (RSUs) \| Common Class B
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Antidilutive securities excluded from computation of earnings per share (in shares)	2,131,015	1,965,604

Guarantees, Commitments, and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

Commitments and Contingencies Disclosure [Abstract]

Recorded Unconditional Purchase Obligations

As of December 31, 2022, we had outstanding non-cancelable purchase obligations with a term of 12 months or longer as follows:


	Amount
	(in thousands)
Year Ending December 31,
2023	$	11,448
2024	10,452
2025	127
Total	$	22,027

Ordinary Shares and Equity Incentive Plan - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding [Roll Forward]
Outstanding Share Options, beginning balance (in shares)	18,834,740
Outstanding Share Options, Options exercised (in shares)	(3,919,606)
Outstanding Share Options, Options forfeited (in shares)	(1,129,920)
Outstanding Share Options, ending balance (in shares)	13,785,214	18,834,740
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Weighted-Average Exercise Price, beginning balance (in dollars per share)	$ 2.05
Weighted-Average Exercise Price, Options exercised (in dollars per share)	1.07
Weighted-Average Exercise Price, Options forfeited (in dollars per share)	3.88
Weighted-Average Exercise Price, ending balance (in dollars per share)	$ 2.17	$ 2.05
Stock Options Additional Disclosures
Weighted-Average Remaining Contractual Life, Options outstanding	6 years 1 month 6 days	7 years
Aggregate Intrinsic Value, Options outstanding	$ 34,326	$ 109,397
Aggregate Intrinsic Value, Options exercised	$ 17,400	$ 68,600	$ 4,300
Outstanding Share Options, Options exercisable (in shares)	10,244,620
Weighted-Average Exercise Price, Options exercisable (in dollars per share)	$ 1.65
Weighted-Average Remaining Contractual Life, Options exercisable	5 years 6 months
Aggregate Intrinsic Value, Options exercisable	$ 30,632
Share-based Payment Arrangement, Option
Stock Options Additional Disclosures
Share-based payment arrangement, nonvested award, cost not yet recognized amount	$ 14,200

Consolidated Balance Sheet Components - Property and Equipment, Net (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 26,019	$ 21,145
Less: accumulated depreciation and amortization	(7,433)	(4,177)
Property and equipment, net	18,586	16,968
Computer equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	6,912	6,104
Furniture and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,531	2,216
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 16,576	$ 12,825

Income Taxes

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Income Taxes

11. Income Taxes

Ordinary taxable income in Israel is subject to a corporate tax rate of 23%. However, the effective tax rate payable by a company that derives income from a Preferred Technological Enterprise (as discussed

below) may be considerably less. Capital gains (which are not ‘Inflationary Surplus’, as described below) derived by an Israeli company are generally subject to the prevailing corporate tax rate.

Law for the Encouragement of Capital Investments, 1959

The Law for the Encouragement of Capital Investments, 1959, generally referred to as the Investment Law, provides certain incentives for capital investments in production facilities (or other eligible assets).

The Investment Law was significantly amended effective on April 1, 2005, January 1, 2011, and on January 1, 2017, or the 2017 Amendment. The 2017 Amendment introduces new benefits for Technological Enterprises, alongside the existing tax benefits.

The 2017 Amendment was enacted as part of the Economic Efficiency Law that was published on December 29, 2016, and is effective as of January 1, 2017. The 2017 Amendment included new tax benefits for “Technological Enterprises,” as described below, and is in addition to the other existing tax beneficial programs under the Investment Law.

The 2017 Amendment provides that a technology company satisfying certain conditions should qualify as a “Preferred Technology Enterprises,” or PTE, granting a 12% tax rate in central Israel on income deriving from Benefited Intangible Assets, subject to a number of conditions being fulfilled, including a minimal amount or ratio of annual R&D expenditure and R&D employees, as well as having at least 25% of annual income derived from exports to large markets. PTE is defined as an enterprise which meets the aforementioned conditions and for which total consolidated revenues of its parent company and all subsidiaries are less than NIS 10 billion.

We have not adopted the PTE status currently, but believe we are eligible for the PTE status in future tax years and have tax-effected our Israel deferred tax assets and liabilities at the appropriate PTE rates. Our subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity.

Profit (loss) before the provision for income taxes consisted of the following for the years ended December 31, 2022, 2021, and 2020:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Israel	$	(55,054)	$	(154,339)	$	(13,479)
International	(42,893)		(22,988)		3,207
Total	$	(97,947)	$	(177,327)	$	(10,272)

The provision for income taxes was as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Current:
Israel	$	4	$	4	$	4
International	8,715		121		32
Total current income tax expense	8,719		125		36
Deferred:
Israel	—		—		—
International	(2,677)		1,433		1,039
Total deferred income tax expense	(2,677)		1,433		1,039
Total provision for income taxes	$	6,042	$	1,558	$	1,075

A reconciliation of our statutory income tax expense to our effective income tax provision is as follows:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Israel tax benefit at statutory rate	$	(22,528)	$	(40,784)	$	(2,362)
Preferred enterprise	10,573		3,052		169
Foreign rate differential	(1,050)		912		332
Share-based compensation	9,717		1,753		1,328
Warrant revaluation	—		23,325		1,336
Tranche right revaluation	—		4,890		—
Prior year tax income/(expense)	(6,675)		84		—
Permanent differences	(3,351)		98		83
ASC 606	—		—		—
Uncertain tax position	7,233		3,784		5
Change in valuation allowance	12,123		4,444		184
Total	$	6,042	$	1,558	$	1,075

Our effective tax rate was (6.17)% for the year ended December 31, 2022, compared to an effective tax rate of (0.88)% for the year ended December 31, 2021 and (10)% for the year ended December 31, 2020. The effective tax rates for the periods presented are primarily comprised of Israel statutory taxes, warrant revaluation, share-based compensation expense, uncertain tax positions, and changes in valuation allowance position. The difference in the effective tax rate of (6.17)% for the year ended December 31, 2022 as compared to the effective tax rate of (0.88)% for the year ended December 31, 2021 and (10)% for the year ended December 31, 2020 was related to non-deductible share-based compensation, prior period adjustments, and uncertain tax positions, and change in valuation allowance position in Israel and in our U.S. subsidiary.

The provision for income taxes was $6.0 million, $1.6 million, and $1.1 million for the years ended December 31, 2022, 2021, and 2020, respectively. The provision for income taxes for the year ended December 31, 2022 consisted primarily of income taxes related to the United States and other foreign jurisdictions in which we conduct business.

Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.

The following table presents the significant components of our deferred tax assets and liabilities:


	Year Ended December 31,
	2022		2021		2020
	(in thousands)
Deferred tax assets:
Research and development expenses	$	7,374	$	1,436	$	1,742
Stat to GAAP adjustments	—		—		1,493
Net operating loss	9,059		5,212		941
Deferred Compensation	5,214		1,009		—
Operating lease liabilities	6,456		—		—
Vacation and convalescence	730		799		364
Bad debts	78		93		100
Other	2,166		466		374
Gross deferred tax assets	31,077		9,015		5,014
Valuation allowance	(20,822)		(8,699)		(4,255)
Total deferred tax assets	10,255		316		759
Deferred tax liabilities:
Operating lease right-of-use assets	(6,387)		—		—
Deferred contract acquisition costs	(3,009)		(2,324)		(1,543)
Property and equipment	(279)		(283)		(439)
Capitalized Software	(591)		(397)		—
Other	—		—		(34)
Gross deferred tax liabilities	(10,266)		(3,004)		(2,016)
Net deferred tax liabilities	$	(11)	$	(2,688)	$	(1,257)

As of December 31, 2022 and 2021, we had Israel net operating loss, or NOL, carryforwards of approximately $68.9 million and $37.4 million, respectively, which do not expire. As of December 31, 2022 and 2021, we had U.S. Federal NOL carryforwards of approximately $11.2 million and $9.8 million, respectively, which do not expire. As of December 31, 2022, we had U.S. State NOL carryforwards of approximately $16.6 million, of which $15.4 million expire between 2027 and 2042, and the remaining $1.2 million do not expire. As of December 31, 2021, we had U.S. State NOL carryforwards of approximately 27.4 million, of which 26.3 million expire between 2027 and 2041, and the remaining 1.1 million do not expire.

During the years ended December 31, 2022, 2021, and 2020 the net change in the valuation allowance against deferred tax assets amounted to an increase of $12.1 million, an increase of $4.4 million, and an increase of $0.2 million, respectively. The increase in the valuation allowance during the years ended December 31, 2022, December 31, 2021 and December 31, 2020 was largely attributable to the generation of Israel NOLs, and certain US state NOLs.

In establishing deferred income tax assets and liabilities, management makes judgments based on the enacted tax laws and published tax guidance applicable to us as well as the amount and jurisdiction of future taxable income. Deferred tax assets and liabilities are recorded and the need for valuation allowances is evaluated to reduce the deferred tax assets to amounts expected to be realized. As of December 31, 2022 and 2021, we maintained a full valuation allowance on Israel and U.S. net deferred

tax assets as we believe, after weighing both the positive and negative evidence, that it is more likely than not that these deferred tax assets will not be realized.

The Internal Revenue Code of 1986, as amended, imposes restrictions on the utilization of NOLs in the event of an “ownership change” of a corporation. Accordingly, a company’s ability to use NOLs may be limited as prescribed under Internal Revenue Code Section 382, or IRC Section 382. Events which may cause limitations in the amount of the NOLs that we may use in any one year include, but are not limited to, a cumulative ownership change of more than 50% over a three-year period. Utilization of the U.S. federal and state NOLs may be subject to substantial annual limitation due to the ownership change limitations provided by the IRC Section 382 and similar state provisions. We have completed our evaluation of NOL utilization limitations under Internal Revenue Code, as amended, or the Code, Section 382, change of ownership rules, and have found that the NOLs would not be limited as to the amount that could be used in the current tax year.

We have identified unrecognized tax benefits or uncertain tax positions. There has been a liability on uncertain tax positions recorded on our audited consolidated financial statements as of December 31, 2022 and 2021. We do not expect that our assessment regarding unrecognized tax benefits and uncertain tax positions will materially change over the following 12 months.

A reconciliation of the beginning and ending balance of total unrecognized tax position is as follows:


	Unrecognized Tax Benefits
	(in thousands)
Balance – January 1, 2020	$	234
Additions based on tax positions related to current year	—
Reductions for tax positions of prior years	—
Balance – December 31, 2020	234
Additions based on tax positions related to current year	3,885
Reductions for tax positions of prior years	—
Balance – December 31, 2021	4,119
Additions based on tax positions related to current year	7,187
Reductions for tax positions of prior years	(54)
Balance – December 31, 2022	$	11,252

As of December 31, 2022 and 2021, the total amount of gross unrecognized tax benefits was $11.3 million and $4.1 million, respectively, which, if recognized, would affect our effective tax rate. We have elected to include interest and penalties as a component of tax expense. As of December 31, 2022 and 2021, we have accumulated $320 thousand and $10 thousand, respectively, in both interest and penalties associated with uncertain tax positions. We do not expect unrecognized tax benefits to change significantly within the next twelve months.

We are not currently under audit for income taxes. As of December 31, 2022, tax years beginning with the year ended December 31, 2018 remain subject to examination by the Israel tax authorities and tax years beginning with the year ended December 31, 2019 remain subject to examination by the Internal Revenue Service and certain U.S. state jurisdictions.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI https://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI https://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI https://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI https://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI https://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

Fair Value Measurements - Schedule of Financial Instruments (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative Asset, Statement of Financial Position [Extensible Enumeration]		Prepaid expenses and other current assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accrued expenses and other current liabilities	Accrued expenses and other current liabilities
Fair Value, Recurring
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in prepaid expenses and other current assets		$ 244
Assets, Fair Value Disclosure, Total		244
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in accrued expenses and other current liabilities	$ 2,397	61
Liabilities, Fair Value Disclosure, Total	2,397	61
Fair Value, Recurring \| Fair Value, Inputs, Level 1
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in prepaid expenses and other current assets		0
Assets, Fair Value Disclosure, Total		0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in accrued expenses and other current liabilities	0	0
Liabilities, Fair Value Disclosure, Total	0	0
Fair Value, Recurring \| Fair Value, Inputs, Level 2
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in prepaid expenses and other current assets		244
Assets, Fair Value Disclosure, Total		244
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in accrued expenses and other current liabilities	2,397	61
Liabilities, Fair Value Disclosure, Total	2,397	61
Fair Value, Recurring \| Fair Value, Inputs, Level 3
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in prepaid expenses and other current assets		0
Assets, Fair Value Disclosure, Total		0
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract]
Derivative financial instruments included in accrued expenses and other current liabilities	0	0
Liabilities, Fair Value Disclosure, Total	$ 0	$ 0

Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2022

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis


	As of December 31, 2021
	Fair Value		Level 1		Level 2		Level 3
	(in thousands)
Financial Assets:
Derivative financial instruments included in prepaid expenses and other current assets	$	244	$	—	$	244	$	—
Total financial assets	$	244	$	—	$	244	$	—

Financial Liabilities:
Derivative financial instruments included in accrued expenses and other current liabilities	$	61	$	—	$	61	$	—
Total financial liabilities	$	61	$	—	$	61	$	—

Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation

The following table presents the summary of the changes in the fair value of our Level 3 financial instruments during 2021:


	Convertible Preferred Shares
	Warrant Liabilities		Tranche Rights
	(in thousands)



Balance as of December 31, 2020	$	9,089	$	2,478
Changes in fair value	101,413		21,260
Settlement of convertible preferred share tranche rights and Series E-1 convertible preferred share warrants	(74,724)		(23,738)
Reclassification of Series B/C convertible preferred share warrant liability to equity	(35,778)		—
Balance as of December 31, 2021	$	—	$	—

CONSOLIDATED BALANCE SHEETS (Parenthetical) - ₪ / shares	Dec. 31, 2022	Dec. 31, 2021
Common Class A
Common stock, par value (in dollars per share)	₪ 0
Common stock, shares authorized (in dollars per share)		900,000,000
Common stock, shares, issued (in shares)	102,084,746	75,909,531
Common stock, shares, outstanding (in shares)	102,084,746	75,909,531
Common Class B
Common stock, shares authorized (in dollars per share)		232,500,000
Common stock, shares, issued (in shares)	68,945,014	88,055,520
Common stock, shares, outstanding (in shares)	68,945,014	88,055,520

Ordinary Shares and Equity Incentive Plan - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 67,467	$ 33,358	$ 7,945
Cost of revenue
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	621	216	38
Research and development
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	10,005	4,246	3,621
Sales and marketing
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	18,253	10,710	2,814
General and administrative
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total share-based compensation expense	$ 38,588	$ 18,186	$ 1,472

Consolidated Balance Sheet Components - Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Customer credits	$ 5,388	$ 3,462
Accrued expenses	6,175	7,557
Derivative Instruments and Hedges, Liabilities	2,397	61
Other	1,853	2,226
Accrued expenses and other current liabilities	$ 15,813	$ 13,306

Revenue Recognition - Deferred Contract Acquisition Costs (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2022	Dec. 31, 2021	Dec. 31, 2020
Movement In Deferred Contract Acquisition Costs [Roll Forward]
Capitalized Contract Cost, Net, Noncurrent	$ 11,630	$ 6,983	$ 2,696
Increase (Decrease) To Deferred Contract Acquisition Costs	9,707	7,744	5,857
Capitalized Deferred Contract Acquisition Cost, Amortization	(4,973)	(3,097)	(1,570)
Capitalized Contract Cost, Net, Noncurrent	$ 16,364	$ 11,630	$ 6,983

Consolidated Balance Sheet Components - Property, Plant and Equipment (by Geographic Region) (Details) - USD ($) $ in Thousands	Dec. 31, 2022	Dec. 31, 2021
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 18,586	$ 16,968
UNITED STATES
Property, Plant and Equipment [Line Items]
Property and equipment, net	1,796	1,997
Israel
Property, Plant and Equipment [Line Items]
Property and equipment, net	16,671	14,868
Rest of world
Property, Plant and Equipment [Line Items]
Property and equipment, net	$ 119	$ 103