CyberArk Software (CYBR) 20-F5 Mar 202019 FY Annual report (foreign)Financial data

Company Profile

Document and Entity Information

Document and Entity Information	12 Months Ended
Document and Entity Information	Dec. 31, 2019shares
Document Type	20-F
Amendment Flag	false
Document Registration Statement	false
Document Annual Report	true
Document Transition Report	false
Document Shell Company Report	false
Document Period End Date	Dec. 31, 2019
Entity File Number	001-36625
Entity Registrant Name	CYBERARK SOFTWARE LTD.
Entity Incorporation, State or Country Code	IL
Entity Address, Address Line One	9 Hapsagot St.
Entity Address, Address Line Two	Park Ofer B
Entity Address, Address Line Three	P.O. BOX 3143
Entity Address, City or Town	Petach-Tikva
Entity Address Country	IL
Entity Address, Postal Zip Code	4951040
Title of 12(b) Security	Ordinary shares, par value NIS 0.01 per share
Trading Symbol	CYBR
Name of Exchange on which Security is Registered	NASDAQ
Entity Common Stock, Shares Outstanding	38,043,516
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Emerging Growth Company	false
Document Accounting Standard	U.S. GAAP
Entity Shell Company	false
Entity Central Index Key	0001598110
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	FY
Business Contact [Member]
Contact Personnel Name	Donna Rahav
Entity Registrant Name	CyberArk Software Ltd.
Entity Address, Address Line One	9 Hapsagot St.
Entity Address, Address Line Two	Park Ofer B
Entity Address, Address Line Three	P.O. BOX 3143
Entity Address, City or Town	Petach-Tikva
Entity Address Country	IL
Entity Address, Postal Zip Code	4951040
City Area Code	+972 (3)
Local Phone Number	918-0000

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
CURRENT ASSETS:
Cash and cash equivalents	$ 792,363	$ 260,636
Short-term bank deposits	140,067	106,399
Marketable securities	132,412	59,948
Trade receivables (net of allowance for doubtful debt of $38 and $67 at December 31, 2018 and 2019, respectively)	72,953	48,431
Prepaid expenses and other current assets	8,406	6,349
Total current assets	1,146,201	481,763
LONG-TERM ASSETS:
Marketable securities	54,408	24,261
Property and equipment, net	16,472	15,120
Intangible assets, net	9,143	14,732
Goodwill	82,400	82,400
Other long-term assets	72,091	31,863
Deferred tax assets	24,451	23,481
Total long-term assets	258,965	191,857
TOTAL ASSETS	1,405,166	673,620
CURRENT LIABILITIES:
Trade payables	5,675	4,924
Employees and payroll accruals	41,345	32,853
Accrued expenses and other current liabilities	27,132	13,271
Deferred revenues	118,519	92,375
Total current liabilities	192,671	143,423
LONG-TERM LIABILITIES:
Convertible senior notes, net	485,119
Deferred revenues	71,836	57,159
Other long-term liabilities	31,408	6,268
Total long-term liabilities	588,363	63,427
TOTAL LIABILITIES	781,034	206,850
SHAREHOLDERS' EQUITY:
Ordinary shares of NIS 0.01 par value - Authorized: 250,000,000 shares at December 31, 2018 and 2019; Issued and outstanding: 36,838,523 shares and 38,043,516 shares at December 31, 2018 and 2019, respectively	99	95
Additional paid-in capital	396,437	303,900
Accumulated other comprehensive income (loss)	818	(939)
Retained earnings	226,778	163,714
Total shareholders' equity	624,132	466,770
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$ 1,405,166	$ 673,620

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) $ in Thousands	Dec. 31, 2019USD ($)shares	Dec. 31, 2018USD ($)shares
Statement of Financial Position [Abstract]
Ordinary shares, authorized	250,000,000	250,000,000
Ordinary shares, issued	38,043,516	36,838,523
Ordinary shares, outstanding	38,043,516	36,838,523
Net of allowance for doubtful debt accounts \| $	$ 67	$ 38

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Revenues:
License	$ 237,879	$ 192,514	$ 147,640
Maintenance and professional services	196,016	150,685	114,061
Revenues	433,895	343,199	261,701
Cost of revenues:
License	10,569	10,526	7,911
Maintenance and professional services	52,046	37,935	33,937
Cost of revenues	62,615	48,461	41,848
Gross profit	371,280	294,738	219,853
Operating expenses:
Research and development	72,520	57,112	42,389
Sales and marketing	184,168	148,290	126,739
General and administrative	52,308	42,044	30,399
Total operating expenses	308,996	247,446	199,527
Operating income	62,284	47,292	20,326
Financial income, net	7,800	4,551	4,103
Income before taxes on income	70,084	51,843	24,429
Taxes on income	(7,020)	(4,771)	(8,414)
Net income	$ 63,064	$ 47,072	$ 16,015
Basic net income per ordinary share	$ 1.68	$ 1.30	$ 0.46
Diluted net income per ordinary share	$ 1.62	$ 1.27	$ 0.44
Change in unrealized income (losses) on marketable securities:
Unrealized income (loss) arising during the year	$ 777	$ (43)	$ (29)
Change in unrealized losses on marketable securities, total	777	(43)	(29)
Change in unrealized gain (loss) on cash flow hedges:
Unrealized gain (loss) arising during the year	1,538	(2,469)	1,470
Loss (gain) reclassified into earnings	(558)	1,466	(1,159)
Change in unrealized gain on cash flow hedges, net	980	(1,003)	311
Other comprehensive income (loss), net of taxes of $(41), $143 and $(240) for 2017, 2018 and 2019, respectively	1,757	(1,046)	282
Total comprehensive income	$ 64,821	$ 46,026	$ 16,297

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Statement [Abstract]
Other comprehensive income (loss), tax	$ (240)	$ 143	$ (41)

STATEMENTS OF SHAREHOLDERS' EQU

STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands	Ordinary Shares [Member]	Additional paid-in capital [Member]	Accumulated other comprehensive income (loss) [Member]	Retained Earnings [Member]	Total
Balance at Dec. 31, 2016	$ 88	$ 221,609	$ (175)	$ 74,694	$ 296,216
Balance, shares at Dec. 31, 2016	34,250,590
Cumulative effect adjustment resulting from adoption of new accounting pronouncements		376		13,184	13,560
Exercise of options and vested RSUs granted to employees	$ 3	2,621			2,624
Exercise of options and vested RSUs granted to employees, shares	1,024,298
Other comprehensive income (loss), net of tax			282		282
Share-based compensation		25,268			25,268
Net income				16,015	16,015
Balance at Dec. 31, 2017	$ 91	249,874	107	103,893	353,965
Balance, shares at Dec. 31, 2017	35,274,888
Cumulative effect adjustment resulting from adoption of new accounting pronouncements				12,749	12,749
Exercise of options and vested RSUs granted to employees	$ 4	18,035			18,039
Exercise of options and vested RSUs granted to employees, shares	1,563,635
Other comprehensive income (loss), net of tax			(1,046)		(1,046)
Share-based compensation		35,991			35,991
Net income				47,072	47,072
Balance at Dec. 31, 2018	$ 95	303,900	(939)	163,714	466,770
Balance, shares at Dec. 31, 2018	36,838,523
Exercise of options and vested RSUs granted to employees	$ 4	24,543			24,547
Exercise of options and vested RSUs granted to employees, shares	1,204,993
Equity component of convertible senior notes, net of tax		65,932			65,932
Purchase of capped calls		(53,648)			(53,648)
Other comprehensive income (loss), net of tax			1,757		1,757
Share-based compensation		55,710			55,710
Net income				63,064	63,064
Balance at Dec. 31, 2019	$ 99	$ 396,437	$ 818	$ 226,778	$ 624,132
Balance, shares at Dec. 31, 2019	38,043,516

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Cash flows from operating activities:
Net income	$ 63,064	$ 47,072	$ 16,015
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	10,646	10,078	7,856
Share-based compensation	55,517	35,964	25,237
Amortization of premium (accretion of discount) on marketable securities	(47)	293	382
Deferred income taxes, net	(6,974)	(7,056)	5,856
Amortization of debt discount and issuance costs	1,966
Increase in trade receivables	(24,522)	(3,116)	(11,631)
Increase in prepaid expenses and other current and long-term assets	(14,321)	(11,893)	(3,638)
Increase (decrease) in trade payables	1,571	1,955	(1,288)
Increase in short-term and long-term deferred revenues	40,821	47,818	31,729
Increase in employees and payroll accruals	7,337	6,896	6,316
Increase in accrued expenses and other current and long-term liabilities	6,652	2,114	3,903
Net cash provided by operating activities	141,710	130,125	80,737
Cash flows from investing activities:
Proceeds from (investment in) short-term and long-term deposits	(33,961)	1,600	(20,661)
Investment in marketable securities	(165,714)	(61,118)	(43,604)
Proceeds from maturities of marketable securities	63,489	37,838	17,355
Purchase of property and equipment	(7,036)	(8,613)	(6,757)
Payments for business acquisitions, net of cash acquired (Schedule A)		(18,450)	(41,329)
Net cash used in investing activities	(143,222)	(48,743)	(94,996)
Cash flows from financing activities:
Proceeds from withholding tax related to employee stock plans	1,155
Proceeds from exercise of stock options	24,428	17,980	2,624
Proceeds from the issuance of convertible senior notes, net of issuance costs	560,107
Purchase of capped calls	(53,648)
Net cash provided by financing activities	532,042	17,980	2,624
Increase (decrease) in cash, cash equivalents and restricted cash	530,530	99,362	(11,635)
Cash, cash equivalents and restricted cash at the beginning of the year	261,883	162,521	174,156
Cash, cash equivalents and restricted cash at the end of the year	792,413	261,883	162,521
Non-cash activities:
Lease liabilities arising from obtaining right-of-use-assets	27,926
Non-cash purchase of property and equipment	960	1,613	981
Supplemental disclosure of cash flow activities:
Cash paid during the year for taxes, net	10,548	6,375	3,371
Reconciliation of cash, cash equivalents and restricted cash:
Cash and cash equivalents	792,363	260,636	161,261
Restricted cash included in short-term bank deposits			316
Restricted cash included in other long-term assets	50	1,247	944
Total cash, cash equivalent and restricted cash	792,413	261,883	162,521
Fair value of assets acquired and liabilities assumed at the date of acquisition:
Goodwill	$ 82,400	82,400	69,217
Conjur [Member]
Fair value of assets acquired and liabilities assumed at the date of acquisition:
Working capital, net (excluding $379 and $21 of cash and cash equivalents acquired)			(451)
Property and equipment			12
Goodwill			34,072
Other intangible assets			6,888
Deferred taxes, net			808
Total			$ 41,329
Vaultive [Member]
Fair value of assets acquired and liabilities assumed at the date of acquisition:
Working capital, net (excluding $379 and $21 of cash and cash equivalents acquired)		(996)
Property and equipment		83
Goodwill		13,183
Other intangible assets		5,424
Deferred taxes, net		756
Total		$ 18,450

CONSOLIDATED STATEMENTS OF CA_2

CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2018	Dec. 31, 2017
Conjur [Member]
Cash and cash equivalents acquired		$ 379
Vaultive [Member]
Cash and cash equivalents acquired	$ 21

GENERAL

GENERAL	12 Months Ended
GENERAL	Dec. 31, 2019
Organization, Consolidation and Presentation of Financial Statements [Abstract]
GENERAL	NOTE 1: GENERAL a. CyberArk Software Ltd. (together with its subsidiaries, the "Company") is an Israeli company that develops, markets b. In May 2017, the Company acquired all of the share capital of Conjur, Inc. ("Conjur") for total gross consideration In March 2018, the Company acquired all of the share capital of Vaultive, Ltd. ("Vaultive") for total gross consideration of $18,471. Vaultive specializes in privileged account security in cloud environments. The Company expensed the related acquisition costs of $268 in general and administrative expenses.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES	Dec. 31, 2019
Accounting Policies [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2: SIGNIFICANT ACCOUNTING POLICIES The consolidated financial statements have been prepared in accordance with U.S. generally accepted accounting principles ("U.S. GAAP"). a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, value of intangible assets and goodwill, fair value of the liability component of the convertible senior notes, as well as the determination of standalone selling prices in revenue transactions with multiple performance obligations and the estimated period of benefit for deferred contract costs. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. b. Principles of consolidation: The consolidated financial statements include the financial statements of CyberArk Software Ltd. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. F - 11 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments were in U.S. dollars and a substantial portion of the Company's costs are incurred in U.S. dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statement of comprehensive income as financial income or expenses, as appropriate. d. Cash and cash equivalents: Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired. e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of up to one year. As of December 31, 2018 and 2019, the Company's bank deposits are denominated in U.S. dollars and New Israeli Shekels ("NIS") and bear yearly interest at weighted average rates of 2.92% and 2.27%, respectively. Short-term bank deposits are presented at their cost, including accrued interest. f. Investments in marketable securities: The Company accounts for investments in debt marketable securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities." The Company's management determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Realized gains and losses on sale of marketable securities are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. F - 12 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The Company's securities are reviewed for impairment in accordance with ASC No. 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the years ended December 31, 2017, 2018 and 2019 were not OTTI. g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, software and related equipment 16 – 33 Office furniture and equipment 7 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset h. Long-lived assets: The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2017, 2018 and 2019, no impairment losses have been identified. i. Business combination: The Company accounts for its business acquisitions in accordance with ASC No. 805, "Business Combinations." The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible and intangible assets acquired is assigned based on the fair values as of the date of the acquisition. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies` respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. F - 13 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) j. Goodwill and other intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible—Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2017, 2018 and 2019, no impairment losses were identified. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which range from two k. Derivative instruments: ASC No. 815, "Derivative and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. As a result of adopting new accounting guidance discussed in Note 2, "Recently adopted accounting standards", beginning January 1, 2019, gains and losses on the derivatives instruments that are designated and qualify as a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. Prior to January 1, 2019, cash flow hedge ineffectiveness was separately measured and reported immediately in earnings. Cash flow hedge ineffectiveness was immaterial during 2017 and 2018. F - 14 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) To hedge against the risk of changes in cash flows resulting from foreign currency salary payments during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted expenses denominated in NIS. These forward and option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, as their critical terms match underlying transactions being hedged. As of December 31, 2018 and 2019, the amount recorded in accumulated other comprehensive income (loss) from the Company's currency forward and option transactions was $(727), net of tax of $(99) and $254, net of tax of $35, respectively. At December 31, 2019, the notional amounts of foreign exchange forward contracts into which the Company entered were $16,855. The foreign exchange forward contracts will expire by June 2020. The fair value of derivative instruments assets balances as of December 31, 2018 and 2019, totaled $10 and $288, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2018 and 2019, totaled $836 and $0, respectively. In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward transactions to economically hedge certain account receivables in Euros and Great British Pound. Gains and losses related to such derivative instruments are recorded in financial income, net. As of December 31, 2019, the notional amounts of foreign exchange forward contracts into which the Company entered were $17,648. The foreign exchange forward contracts will expire by October 2020. The fair value of derivative instruments assets balances as of December 31, 2018 and 2019, totaled $1,004 and $514, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2018 and 2019 totaled $0 and $134, respectively. For the years ended December 31, 2017, 2018 and 2019, the Company recorded financial income, net from hedging transactions of $(796), $977 and $515, respectively. l. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. F - 15 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made on behalf of the employee with insurance companies. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. For the Company's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company's liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and accruals. The value of these deposits recorded as an asset on the Company's balance sheet under other long-term assets as of December 31, 2018 and 2019 is 3,579 and 4,313, respectively. The amount of accrued severance payable recorded as a liability on the Company’s balance sheet under long-term liabilities as of December 31, 2018 and 2019 is 5,597 and 6,751, respectively. Severance expense for the years ended December 31, 2017, 2018 and 2019, amounted to $2,707, $3,326 and $4,035, respectively. m. U.S. defined contribution plan: The U.S. subsidiary has a 401(k) defined contribution plan covering certain full time and part time employees in the U.S. who meet certain eligibility requirements, excluding leased employees and contractors. All eligible employees may elect to contribute up to an annual maximum, of the lesser of 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits, but not greater than $19 per year (for certain employees over 50 years of age the maximum contribution is $25 per year). The U.S. subsidiary matches amounts equal to 100% of the first 3% of the employee's compensation that they contribute to the defined contribution plan and 50% of the next 2% of their compensation that they contribute to the defined contribution plan with a limit of $11.2 per year per employee. For the years ended December 31, 2017, 2018 and 2019, the U.S. subsidiary recorded expenses for matching contributions of $1,677, $2,171 and $2,697, respectively. F - 16 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) n. Convertible senior notes: The Company accounts for its convertible senior notes in accordance with ASC 470-20 "Debt with Conversion and Other Options". The Company allocated the principal amount of the convertible senior notes between its liability and equity component. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument of similar credit rating and maturity that does not have a conversion feature. The equity component is based on the excess of the principal amount of the convertible senior notes over the fair value of the liability component and is recorded in additional paid-in capital. The equity component, net of issuance costs and deferred tax effects is presented within additional paid-in-capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. Issuance costs attributable to the liability and equity components were $12.9 million and $2.0 million, respectively. Issuance costs attributable to the liability are netted against the principal balance and will be amortized to interest expense using the effective interest method over the contractual term of the notes. The effective interest rate of the liability component of the notes is 3.50%. This interest rate was based on Company's credit risk rating using software industry rating methodology. Issuance costs attributable to the equity component are netted with the equity component in additional paid-in capital. o. Revenue recognition: The Company substantially generates revenues from licensing the rights to use its software products, maintenance and professional services. License revenues include perpetual and term-based licenses, as well as the ratable portion of sales of software as a service (“SaaS”). The Company sells its products through its direct sales force and indirectly through resellers. Payment is typically due within 30 to 90 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations and may include an option to provide products or services. The license is distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. F - 17 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. The Company records unbilled receivables from contracts when the revenue recognized exceeds the amount billed to the customer. As of December 31, 2019, $5,526 long-term unbilled receivables are included in other long-term assets. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price. For maintenance, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the prices at which the Company separately sells those services. For software licenses, the Company determines the standalone selling prices by taking into account available information such as historical selling prices, contract value, geographic location, and the Company's price list and discount policy. Software license revenues, perpetual or term based, are recognized at the point of time when the license is made available for download by the customer. Maintenance and SaaS revenues are recognized ratably, on a straight-line basis over the term of the related contract, which is generally one The following table presents the Company's revenue by category: December 31, 2018 2019 License $ 192,514 $ 237,879 Maintenance and support 123,986 159,730 Professional services 26,699 36,286 $ 343,199 $ 433,895 For Additional information regarding disaggregated revenues, please refer to Note 16 below F - 18 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) Contract liabilities consist of deferred revenue and include unearned amounts received under maintenance and support contracts, professional services and amounts received from customers for licenses that do not meet the revenue recognition criteria as of the balance sheet date. Deferred revenues are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2019, the Company recognized $87,926 that were included in the deferred revenues balance as of December 31, 2018. Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenues and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was $293 million as of December 31, 2019. The Company expects to recognize approximately 55% in 2020 from remaining performance obligations as of December 31, 2019 and the remainder thereafter. p. Deferred contract costs: The Company pays sales commissions primarily to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately five years. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized on a straight-line basis over the related contractual renewal period. Amortization expense of these costs are substantially included in sales and marketing expenses. For the year ended December 31, 2018 and 2019, the amortization of deferred contract costs was $27,807 and $33,853, respectively. As of December 31, 2018 and 2019, the Company presented deferred contract costs from contracts which are less than 12 months of $389 and $1,014 in prepaid expenses and other current assets, respectively, and deferred contract costs in respect of contracts which are greater than 12 months of $25,595 and $37,074 in other long-term assets, respectively. F - 19 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) q. Leases: On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (ASC 842). The Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use (“ROU”) asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by common area maintenance and utility charges. The Company subleases certain office spaces to third-parties. Sublease income is recognized over the term of the agreement. r. Research and development costs: Research and development costs are charged to the statements of comprehensive income as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed," requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. F - 20 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) s. Internal use software: The Company capitalizes qualifying costs incurred during the application development stage related to software developed for internal-use. These costs are capitalized based on qualifying criteria. Such costs are amortized over the software's estimated life of three t. Marketing expenses: Marketing expenses consist primarily of marketing campaigns and tradeshows. Marketing expenses are charged to the statement of comprehensive income, as incurred. Marketing expenses for the years ended December 31, 2017, 2018 and 2019, amounted to $14,106, $16,171 and $20,055, respectively. u. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods, which is generally the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The Company has selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its option awards. The fair value of restricted stock units ("RSU") and performance stock units ("PSU") is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The company recognize forfeitures of equity-based awards as they occur. F - 21 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) v. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740-10, "Income Taxes" ("ASC No. 740-10"). ASC No. 740-10 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company established reserves for uncertain tax positions based on the evaluation of whether or not the Company's uncertain tax position is "more likely than not" to be sustained upon examination based on its technical merits. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense. w. Basic and diluted net income per share: Basic net income per ordinary share is computed by dividing net income for each reporting period by the weighted-average number of ordinary shares outstanding during each year. Diluted net income per ordinary share is computed by dividing net income for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260-10 "Earnings Per Share". x. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period, except changes resulting from investments by, or distributions to, shareholders. y. Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables, severance pay funds and derivative instruments. The majority of the Company's cash and cash equivalents and short-term bank deposits are invested with major banks in Israel and the United States. Such investments in the United States are

MARKETABLE SECURITIES

MARKETABLE SECURITIES	12 Months Ended
MARKETABLE SECURITIES	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
MARKETABLE SECURITIES	NOTE 3: MARKETABLE SECURITIES The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2018 and 2019: December 31, 2018 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 77,758 $ (228 ) $ 8 $ 77,538 U.S. agencies debentures 6,692 (23 ) 2 6,671 Total $ 84,450 $ (251 ) $ 10 $ 84,209 ) Out of the unrealized losses, an amount of $149 has been in a continuous unrealized loss position for twelve months or longer. December 31, 2019 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 104,952 $ (21 ) $ 651 $ 105,582 U.S. agencies debentures 81,227 (10 ) 21 81,238 Total $ 186,179 $ (31 ) $ 672 $ 186,820 ) Out of the unrealized losses, an amount of $5 has been in a continuous unrealized loss position for twelve months or longer. The following table summarizes the amortized cost and fair value of available-for-sale marketable securities as of December 31, 2018 and 2019, by contractual years-to maturity: December 31, 2018 2019 Amortized cost Fair value Amortized cost Fair value Due within one year $ 60,062 $ 59,948 $ 132,321 $ 132,412 Due between one and four years 24,388 24,261 53,858 54,408 $ 84,450 $ 84,209 $ 186,179 $ 186,820

PREPAID EXPENSES AND OTHER CURR

PREPAID EXPENSES AND OTHER CURRENT ASSETS	12 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
PREPAID EXPENSES AND OTHER CURRENT ASSETS	NOTE 4: PREPAID EXPENSES AND OTHER CURRENT ASSETS December 31, 2018 2019 Prepaid expenses $ 2,879 $ 5,002 Hedging transaction assets 1,014 802 Government authorities 1,452 1,162 Deferred commissions and other current assets 1,004 1,440 $ 6,349 $ 8,406

PROPERTY AND EQUIPMENT, NET

PROPERTY AND EQUIPMENT, NET	12 Months Ended
PROPERTY AND EQUIPMENT, NET	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
PROPERTY AND EQUIPMENT, NET	NOTE 5: PROPERTY AND EQUIPMENT, NET The composition of property and equipment is as follows: December 31, 2018 2019 Cost: Computers, software and related equipment ) $ 12,976 $ 17,470 Leasehold improvements 6,148 6,775 Office furniture and equipment 4,213 4,369 23,337 28,614 Less - accumulated depreciation 8,217 12,142 Depreciated cost $ 15,120 $ 16,472 ) For the years ended December 31, 2018 and 2019, the Company capitalized $1,391 and $2,397 including $27 and $193 of share-based compensation costs, relating to its internal use software development, respectively. Depreciation expense amounted to $2,597, $3,722 and $5,057 for the years ended December 31, 2017, 2018 and 2019, respectively.

GOODWILL AND OTHER INTANGIBLE A

GOODWILL AND OTHER INTANGIBLE ASSETS, NET	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
GOODWILL AND OTHER INTANGIBLE ASSETS, NET	NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS, NET Changes in the carrying amount of goodwill: December 31, 2018 2019 Balance as of beginning of the year $ 69,217 $ 82,400 Goodwill acquired 13,183 - Closing balance $ 82,400 $ 82,400 F - 28 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 6: GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Cont.) The composition of intangible assets is as follows: December 31, 2018 2019 Original amount: Technology $ 26,141 $ 26,141 Customer relationships 5,120 5,120 Other 664 664 31,925 31,925 Less - accumulated amortization 17,193 22,782 Intangible assets, net $ 14,732 $ 9,143 Amortization expense amounted to $5,259, $6,356 and $5,589 for the years ended December 31, 2017, 2018, and 2019, respectively. The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows: 2020 3,821 2021 2,740 2022 1,808 2023 390 2024 128 Thereafter 256 $ 9,143

ACCRUED EXPENSES AND OTHER CURR

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	12 Months Ended
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	Dec. 31, 2019
Payables and Accruals [Abstract]
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES	NOTE 7: ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES December 31, 2018 2019 Government authorities $ 6,057 $ 11,890 Accrued expenses 4,562 5,455 Unrecognized tax benefits 1,816 3,728 Lease liability, current - 5,925 Hedging transaction liabilities 836 134 $ 13,271 $ 27,132

COMMITMENTS AND CONTINGENT LIAB

COMMITMENTS AND CONTINGENT LIABILITIES	12 Months Ended
COMMITMENTS AND CONTINGENT LIABILITIES	Dec. 31, 2019
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENT LIABILITIES	NOTE 8: COMMITMENTS AND CONTINGENT LIABILITIES a. Legal contingencies: From time to time, the Company becomes involved in legal proceedings or is subject to claims arising in its ordinary course of business. Such matters are generally subject to many uncertainties and outcomes are not predictable with assurance. The Company accrues for contingencies when the loss is probable and it can reasonably estimate the amount of any such loss. The Company is currently not a party to any material legal or administrative proceedings and is not aware of any material pending or threatened material legal or administrative proceedings against the Company. b. Pledges and bank guarantees: The Company pledged a bank deposit of $1,335, mainly in respect of an office lease agreement. This balance is presented as part of other long-term assets. The Company obtained bank guarantees of $1,352, primarily in connection with an office lease agreement.

LEASES

LEASES	12 Months Ended
LEASES	Dec. 31, 2019
Leases [Abstract]
LEASES	NOTE 9: LEASES The Company entered into operating leases primarily for offices. The leases have remaining lease terms of up to 6.5 years, some of which may include options to extend the leases for up to an additional 8 years. The components of operating lease costs were as follows: Year ended December 31, 2019 Operating lease cost $ 5,897 Short-term lease cost 733 Variable lease cost 1,014 Sublease income (279 ) Total net lease costs $ 7,365 Supplemental balance sheet information related to operating leases is as follows: As of December 31, 2019 Operating lease ROU assets $ 22,484 Operating lease liabilities, current $ 5,925 Operating lease liabilities, long-term $ 18,579 Weighted average remaining lease term (in years) 4.8 Weighted average discount rate 1.7 % F - 30 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 9: LEASES (Cont.) Minimum lease payments for the Company’s ROU assets over the remaining lease periods as of December 31, 2019, are as follows: As of December 31, 2019 2020 $ 5,973 2021 5,644 2022 5,501 2023 4,695 2024 3,119 Thereafter 587 Total undiscounted lease payments $ 25,519 Less: imputed interest (1,015 ) Present value of lease liabilities $ 24,504 As of December 31, 2019, the Company has an additional operating lease commitment of $1.8 million for an extension to the offices in Israel, which has not yet commenced. The operating lease commitment will commence on April 1, 2020, with a lease term of approximately four years.

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	12 Months Ended
FAIR VALUE MEASUREMENTS	Dec. 31, 2019
Fair Value Disclosures [Abstract]
FAIR VALUE MESUREMENTS	NOTE 10: FAIR VALUE MEASUREMENTS The following tables present the fair value of money market funds and marketable securities for the years ended December 31, 2018 and 2019: December 31, 2018 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 335 $ - $ 335 $ 213,494 $ - $ 213,494 U.S. agencies debentures - - - - 25,058 25,058 Marketable securities: Corporate debentures - 77,538 77,538 - 105,582 105,582 U.S. agencies debentures - 6,671 6,671 - 81,238 81,238 Total assets measured at fair value $ 335 $ 84,209 $ 84,544 $ 213,494 $ 211,878 $ 425,372 As of December 31, 2019, the estimated fair value of the Company's convertible senior notes, as further described in Note 11, was $594.3 million. The fair value was determined based on the closing trading price of the convertible senior notes as of the last day of trading for the period. The fair value of the convertible senior notes is primarily affected by the trading price of the Company`s common stock and market interest rates. The fair value of the convertible senior notes is considered a Level 2 measurement as they are not actively traded.

CONVERTIBLE SENIOR NOTES, NET

CONVERTIBLE SENIOR NOTES, NET	12 Months Ended
CONVERTIBLE SENIOR NOTES, NET	Dec. 31, 2019
Debt Disclosure [Abstract]
CONVERTIBLE SENIOR NOTES, NET	NOTE 11: CONVERTIBLE SENIOR NOTES, NET a. Convertible senior notes, net In November 2019, the Company issued $500 million aggregate principal amount, 0% coupon rate, of convertible senior notes due 2024 and an additional $75 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment option of the initial purchasers (collectively, “Convertible Notes”). The Convertible Notes are convertible based upon an initial conversion rate of 6.3478 of the Company’s ordinary shares, par value NIS 0.01 per share per $1 principal amount of Convertible Notes (equivalent to a conversion price of approximately $157.53 per ordinary share). The conversion rate will be subject to adjustment upon the occurrence of certain specified events. The Convertible Notes are senior unsecured obligations of the Company. The Convertible Notes will mature on November 15, 2024 (the "Maturity Date"), unless earlier repurchased, redeemed or converted. Prior to May 15, 2024, a holder may convert all or a portion of its Convertible Notes only under the following circumstances: (1) During any calendar quarter commencing after the calendar quarter ending on March 31, 2020 (and only during (2) During the five business day period after any 10 consecutive trading day period ( “measurement period”) in (3) If the Company calls such Convertible Notes for redemption in certain circumstances, at any time prior to the (4) Upon the occurrence of specified corporate events. On or after May 15, 2024 until the close of business on the third scheduled trading day immediately preceding the Maturity Date, a holder may convert its Convertible Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company can pay or deliver cash, ordinary shares or a combination of cash and ordinary shares, at the Company’s election. F - 32 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 11: CONVERTIBLE SENIOR NOTES, NET (Cont.) The Company may not redeem the notes prior to November 15, 2022, except in the event of certain tax law changes. The Company may, at any time and from time to time, redeem for cash all or any portion of the notes, at the Company's option, on or after November 15, 2022, if the last reported sale price of the Company`s ordinary shares has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive) during any 30 consecutive trading day period (including the last trading day of such period) ending on, and including, the trading day immediately preceding the date on which it delivers notice of redemption at a redemption price equal to 100% of the principal amount of the notes to be redeemed. Upon the occurrence of a Fundamental Change as defined in the Indenture, holders may require the Company to repurchase for cash all or any portion of their Convertible Notes at a fundamental change repurchase price equal to 100% of the principal amount of the Convertible Notes to be repurchased (plus accrued and unpaid special interest payable under certain circumstances set forth in the terms of the Convertible Notes (if any) to, but excluding, the fundamental change repurchase date). In addition, in connection with a make-whole fundamental change (as defined in the Indenture), or following our delivery of a notice of redemption, the company will, in certain circumstances, increase the conversion rate for a holder who elects to convert its notes in connection with such a corporate event or redemption, as the case may be. During the year ended December 31, 2019, the conditions allowing holders of the Notes to convert were not met. The Notes are therefore not convertible as of December 31, 2019 and are classified as long-term liability. The net carrying amount of the liability and equity components of the Convertible Notes as of December 31, 2019 is as follows: December 31, 2019 Liability component: Principal amount $ 575,000 Unamortized discount (77,287 ) Unamortized issuance costs (12,594 ) Net carrying amount $ 485,119 Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022 $ 65,932 F - 33 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 11: CONVERTIBLE SENIOR NOTES, NET (Cont.) Interest expense related to the Convertible Notes was as follows: December 31, 2019 Amortization of debt discount $ 1,713 Amortization of debt issuance costs 253 Total interest expense recognized $ 1,966 b. Capped Call Transactions In connection with the pricing of the Convertible Notes and the exercise by the Initial Purchasers of the over-allotment option, the Company entered into privately negotiated capped call transactions (“Capped Call Transactions”) with certain financial institutions (“Option Counterparties”). The Capped Call Transactions cover, collectively, the number of the Company’s ordinary shares underlying the Convertible Notes, subject to anti-dilution adjustments substantially similar to those applicable to the Convertible Notes. The Capped Call Transactions have an initial strike price of approximately $157.53 per share, subject to certain adjustments, which corresponds to the approximate initial conversion price of the Convertible Notes. The cap price of the Capped Call Transactions is initially $229.14 per share and is subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are separate transactions, in each case, entered into by the Company with the Option Counterparties, and are not part of the terms of the Convertible Notes and will not change the holders’ rights under the Convertible Notes. As the Capped Call Transactions are considered indexed to the Company's stock and are considered equity classified, they are recorded in shareholders’ equity on the consolidated balance sheet and are not accounted for as derivatives. The cost of the Capped Call Transactions was approximately $53.6 million and was recorded as a reduction to additional paid-in capital.

SHAREHOLDERS' EQUITY

SHAREHOLDERS' EQUITY	12 Months Ended
SHAREHOLDERS' EQUITY	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
SHAREHOLDERS' EQUITY	NOTE 12: SHAREHOLDERS' EQUITY a. Composition of share capital of the Company: December 31, 2018 2019 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares Ordinary shares of NIS 0.01 par value each 250,000,000 36,838,523 250,000,000 38,043,516 b. Ordinary shares: The ordinary shares of the Company confer upon the holders the right to receive notices of and to participate and vote in general meetings of the Company, rights to receive dividends and rights to participate in distribution of assets upon liquidation. c. Share-based compensation: Under the Company's 2014 share incentive plan (the "2014 Plan"), options, RSU, PSU and other share-based awards may be granted to employees, officers, non-employee consultants and directors of the Company. Under the 2014 Plan, as of December 31, 2019, an aggregate number of 817,511 ordinary shares were reserved for future grant. Any share underlying an award that is cancelled, terminated or forfeited for any reason without having been exercised will automatically be available for grant under the 2014 Plan. F - 35 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 12: SHAREHOLDERS' EQUITY (Cont.) The total share-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2017, 2018 and 2019 is comprised as follows: Year ended December 31, 2017 2018 2019 Cost of revenues $ 2,289 $ 3,350 $ 5,690 Research and development 6,110 7,922 10,960 Sales and marketing 8,642 12,708 20,976 General and administrative 8,196 11,984 17,891 Total share-based compensation expense $ 25,237 $ 35,964 $ 55,517 The total unrecognized compensation cost amounted to $141,029 as of December 31, 2019 and is expected to be recognized over a weighted average period of 2.51 years. d. Options granted to employees: A summary of the activity in options granted to employees for the year ended December 31, 2019 is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2018 1,476,610 $ 46.40 7.30 $ 40,968 Granted 87,600 $ 115.26 Exercised (618,917 ) $ 39.66 Forfeited (28,780 ) $ 54.03 Balance as of December 31, 2019 916,513 $ 57.29 6.96 $ 54,762 Exercisable as of December 31, 2019 590,891 $ 51.50 6.32 $ 38,523 Starting October 1, 2018, the expected volatility of the Company’s common stock is based on the Company’s historical volatility. Prior to October 1, 2018, the computation of expected volatility was based on actual historical share price volatility of comparable companies and the Company's historical equity volatility. The expected option term represents the period of time that options granted are expected to be outstanding. For stock-option awards which were at the money when granted (plain vanilla stock-options), it is determined based on the simplified method in accordance with SAB No. 110, as adequate historical experience is not available to provide a reasonable estimate.. The Company has historically not paid dividends and has no foreseeable plans to pay dividends and, therefore, uses an expected dividend yield of zero in the option pricing model. The risk-free interest rate is based on the yield of U.S. treasury bonds with equivalent terms. F - 36 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 12: SHAREHOLDERS' EQUITY (Cont.) The following table sets forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 Expected volatility 45%-48% 47%-48% 48% Expected dividends 0% 0% 0% Expected term (in years) 5.25-6.25 5.00-6.20 5.90-6.10 Risk free rate 1.77%- 2.05% 2.38%- 3.12% 1.49%- 2.49% A summary of options data for the years ended December 31, 2017, 2018 and 2019, is as follows: Year ended December 31, 2017 2018 2019 Weighted-average grant date fair value of options granted $ 21.81 $ 28.26 $ 55.43 Total intrinsic value of the options exercised $ 33,614 $ 53,398 $ 45,326 The aggregate intrinsic value is calculated as the difference between the per-share exercise price and the fair value of an ordinary share for each share subject to an option multiplied by the number of shares subject to options at the date of exercise. F - 37 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 12: SHAREHOLDERS' EQUITY (Cont.) The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2019: Exercise price Options outstanding as of December 31, 2019 Weighted average remaining contractual term Options exercisable as of December 31, 2019 Weighted average remaining contractual term (years) (years) $ 1.06 – 14.00 40,055 3.77 40,055 3.77 $ 37.44 – 47.29 164,875 6.96 85,404 6.61 $ 47.40 – 51.86 309,557 7.09 211,097 6.85 $ 52.48 – 64.65 285,726 6.34 241,978 6.03 $ 64.93 – 131.65 116,300 9.22 12,357 9.15 916,513 6.96 590,891 6.32 e. A summary of RSUs and PSUs activity for the year ended December 31, 2019 is as follows: Amount of RSUs and PSUs Weighted average grant date fair value Unvested as of December 31, 2018 1,721,620 $ 56.15 Granted 918,850 $ 119.93 Vested (586,076 ) $ 57.00 Forfeited (94,750 ) $ 72.85 Unvested as of December 31, 2019 1,959,644 $ 85.00 The total fair value of RSUs and PSUs vested (based on fair value of the Company's ordinary shares at vesting date) during the years ended December 31, 2017, 2018 and 2019 was $12,547, $23,762 and $67,737, respectively.

INCOME TAXES

INCOME TAXES	12 Months Ended
INCOME TAXES	Dec. 31, 2019
Income Tax Disclosure [Abstract]
INCOME TAXES	NOTE 13: INCOME TAXES CyberArk Software Ltd.'s subsidiaries are separately taxed under the domestic tax laws of the jurisdiction of incorporation of each entity. a. Corporate tax in Israel: Ordinary taxable income is subject to a corporate tax rate as follows: 2017 – 24% and 2018 onwards – 23%. In December 2016, the Israeli Parliament approved the Economic Efficiency Law (Legislative Amendments for Applying the Economic Policy for the 2017 and 2018 Budget Years), which reduces the corporate income tax rate to 24% effective from January 1, 2017 and to 23% effective from January 1, 2018. b. Income before taxes on income is comprised as follows: Year ended December 31, 2017 2018 2019 Domestic income $ 13,937 $ 52,158 $ 52,254 Foreign income (loss) 10,492 (315 ) 17,830 $ 24,429 $ 51,843 $ 70,084 F - 39 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) c. Deferred income taxes: Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2018 2019 Deferred tax assets: Carry-forwards losses and credits $ 16,069 $ 19,205 Capital losses carry-forwards 47 90 Research and development expenses 1,351 1,932 Deferred revenues 7,466 8,043 Share-based compensation 5,922 8,841 Operating lease liability - 1,400 Accruals and other 1,524 1,783 Deferred tax assets before valuation allowance 32,379 41,294 Less: Valuation allowance 1,647 1,299 Net deferred tax assets $ 30,732 $ 39,995 Deferred tax liabilities: Intangible assets $ 1,997 $ 1,950 Convertible senior notes - 10,786 Deferred commission 4,770 6,463 Operating lease ROU asset - 1,308 Property and equipment and other 662 471 Deferred tax liabilities $ 7,429 $ 20,978 F - 40 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) As of December 31, 2019, approximately $36,454 of undistributed earnings held by the Company's foreign subsidiaries are designated as indefinitely reinvested. If these earnings were repatriated to Israel, it would be subject to income taxes and to an adjustment for foreign tax credits and foreign withholding taxes. Determination of the amount of unrecognized deferred tax liability related to these earnings is not practicable. d. Income taxes are comprised as follows: Year ended December 31, 2017 2018 2019 Current $ 2,558 $ 11,827 $ 13,994 Deferred 5,856 (7,056 ) (6,974 ) $ 8,414 $ 4,771 $ 7,020 Year ended December 31, 2017 2018 2019 Domestic $ 3,033 $ 8,359 $ 8,093 Foreign 5,381 (3,588 ) (1,073 ) $ 8,414 $ 4,771 $ 7,020 e. A reconciliation of the Company's theoretical income tax expense to actual income tax expense is as follows: Year ended December 31, 2017 2018 2019 Income before income taxes $ 24,429 $ 51,843 $ 70,084 Statutory tax rate 24.0 % 23.0 % 23.0 % Theoretical income tax expense 5,863 11,924 16,119 Excess tax benefits related to share-based compensation (5,050 ) (6,726 ) (6,391 ) Non-deductible expenses 2,081 3,011 3,002 Intra-entity intellectual property transfer - 1,768 - Unrecognized tax benefits 645 697 1,343 Foreign and preferred enterprise tax rates differential (1,792 ) (5,710 ) (6,717 ) Impact of Tax Cuts and Jobs Act of 2017 6,492 - - Other 175 (193 ) (336 ) Income tax expense $ 8,414 $ 4,771 $ 7,020 F - 41 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) f. Net operating loss carry-forwards: As of December 31, 2019, the Company had net operating losses substantially derived from excess tax benefits from share-based payments and capital tax losses, totaling approximately $75,605 and $219, respectively, out of which $58,004 and none of losses, respectively, were attributed to the U.S. subsidiary. The rest were attributed to Israel, can be carried forward indefinitely and resulted from acquisitions made by the Company. Out of the operating losses attributed to the U.S. subsidiary, $40,833 are subject to up to 20-year carryforward period. The remaining $17,171 can be carried forward indefinitely but are subject to the 80% taxable income limitation upon utilization. Utilization of some of U.S. net operating losses are subject to annual limitation due to the "change in ownership" provisions of the U.S. Internal Revenue Code and similar state provisions. The annual limitation may result in the expiration of net operating losses before utilization. g. Tax benefits under the Law for the Encouragement of Capital Investments, 1959: As of December 31, 2019, approximately $14,716 was derived from tax exempt profits earned by the Company's "Approved Enterprises" and "Beneficiary Enterprise". The Company and its Board of Directors have determined that such tax-exempt income will not be distributed as dividends and intends to reinvest the amount of its tax-exempt income earned by the Company. Accordingly, no provision for deferred income taxes has been provided on income attributable to the Company's "Approved Enterprises" and "Beneficiary Enterprises" as such income is essentially permanently reinvested. If the Company's retained tax-exempt income is distributed, the income would be taxed at the applicable corporate tax rate as if it had not elected the alternative tax benefits under the Law for the Encouragement of Capital Investments and an income tax liability of up to $3,613 would be incurred as of December 31, 2019. In December 2016, the Israeli Knesset passed Amendment 73 to the Investment Law which included a number of changes to the Investment Law regimes through regulations approved on May 1, 2017 and that have come into effect from January 1, 2017. F - 42 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) Applicable benefits under the new regime include: - Introduction of a benefit regime for "Preferred Technology Enterprises," granting a - A - A withholding tax rate of The Company adopted the PTE since 2017 and believes it is eligible for its benefits. h. Tax benefits under the Law for the Encouragement of Industry (Taxation), 1969: Management believes that the Company currently qualifies as an "industrial company" under the above law and as such, is entitled to certain tax benefits including accelerated depreciation, deduction of public offering expenses in three equal annual installments and amortization of other intangible property rights for tax purposes. i. Tax Benefits for Research and Development Israeli tax law (section 20A to the Israeli Tax Ordinance) allows, under certain conditions, a tax deduction for research and development expenses, including capital expenses, for the year in which they are paid. Such expenses must relate to scientific research in industry, agriculture, transportation, or energy, and must be approved by the relevant Israeli government ministry, determined by the field of research. Furthermore, the research and development must be for the promotion of the company's business and carried out by or on behalf of the company seeking such tax deduction. However, the amount of such deductible expenses is reduced by the sum of any funds received through government grants for the finance of such scientific research and development projects. As for expenses incurred in scientific research that is not approved by the relevant Israeli government ministry, they will be deductible over a three-year period starting from the tax year in which they are paid. The Company believes that it is eligible for the above mentioned benefit for the majority of its research and development expenses. F - 43 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) j. Tax Reform- United States of America On December 22, 2017, the Tax Cuts and Jobs Act of 2017 ("Tax Act") was signed into law making significant changes to the Internal Revenue Code of 1986, as amended ("Code"). Such changes include a reduction in the corporate tax rate and limitations on certain corporate deductions and credits, among other changes. The changes include, but are not limited to: Rate Reduction The Tax Act reduces the U.S. federal corporate income tax rate from 35% to 21% for tax years beginning after December 31, 2017. In addition, the Tax Act makes certain changes to the depreciation rules and implements new limits on the deductibility of certain expenses and deduction. The Company recorded a reduction of its deferred tax assets as of December 31, 2017 of approximately $6.5 million. Deemed Repatriation Transition Tax The Deemed Repatriation Transition Tax is a tax on previously untaxed accumulated and current earnings and profits ("E&P") of certain foreign subsidiaries. To determine the amount of the Transition Tax, the Company must determine, in addition to other factors, the amount of post-1986 E&P of its foreign subsidiaries, as well as the amount of non-U.S. income taxes paid on such earnings. The impact of the Transition Tax on the US subsidiary was immaterial. Tax Deductibility of Executive Compensation Prior to the Tax Act being signed into law on December 22, 2017, Section 162(m) of the Code generally disallowed tax deductions for publicly-held companies for compensation paid to certain of its executive officers who were "covered employees" under this rule in excess of $1 million per officer in any year. Performance-based compensation was exempt from this deduction limitation if specific requirements set forth in the Code and applicable Treasury Regulations were met. The Tax Act repealed the exemption from Section 162(m)'s deduction limit for performance-based compensation, effective for the taxable years after December 31, 2017. Accordingly, compensation paid to the Company's covered executive officers in excess of $1 million during such taxable years will not be deductible unless such compensation qualifies for the transition grandfathering relief applicable to certain binding arrangements in place as of November 2, 2017, and which was not modified in any material respect on or after such date. Global Intangible Low-Taxed Income (“GILTI”) The TCJA introduced the rules for tax on the global intangible low-taxed income (“GILTI”) on foreign income in excess of a deemed return on tangible assets of foreign corporations. The U.S. subsidiary is entitled to offset the GILTI income inclusion against losses. F - 44 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 13: INCOME TAXES (Cont.) k. Tax assessments: As of December 31, 2019, CyberArk Software Ltd.'s tax years until December 31, 2014 have become subject to statute of limitations effective in Israel. As of the date of the approval of the financial statements, Vaultive is under examination by the Israeli Tax Authorities for the tax years 2015 through 2018. As of that date, the U.K. subsidiary's tax years until December 31, 2015 are also subject to statutes of limitation effective in the U.K. The year ended on December 31, 2017 is also subject to statutes of limitation effective in the U.K, while the year ended on December 31, 2016 is open due to submission of an amended return. The U.S. subsidiary's tax years ended December 31, 2016 through 2019, statute of limitation have not yet expired. For companies acquired by the U.S. subsidiary, there are open loss years from 2008 through 2017. l. Unrecognized tax benefits: A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2018 2019 Opening balance $ 1,119 $ 1,993 Increase related to prior year tax positions 404 120 Decrease related to expiration of statutes of limitations (353 ) (242 ) Increase related to current year tax positions 823 1,857 Closing balance $ 1,993 $ 3,728 During the years ended December 31, 2017, 2018 and 2019, the Company recorded $56, $(38) and $47, respectively, for interest expense (income) related to uncertain tax positions. As of December 31, 2018 and 2019, accrued interest was $65 and $112, respectively. Although the Company believes that it has adequately provided for any reasonably foreseeable outcomes related to tax audits and settlement, there is no assurance that the final tax outcome of its tax audits will not be different from that which is reflected in the Company's income tax provisions. Such differences could have a material effect on the Company's income tax provision, cash flow from operating activities and net income in the period in which such determination is made.

FINANCIAL INCOME, NET

FINANCIAL INCOME, NET	12 Months Ended
FINANCIAL INCOME, NET	Dec. 31, 2019
Other Income and Expenses [Abstract]
FINANCIAL INCOME, NET	NOTE 14: FINANCIAL INCOME, NET Year ended December 31, 2017 2018 2019 Bank charges $ (158 ) $ (177 ) $ (274 ) Exchange rate income (losses), net 1,735 (1,050 ) (803 ) Interest income 2,526 5,778 10,843 Amortization of debt discount and issuance costs - - (1,966 ) Financial income, net $ 4,103 $ 4,551 $ 7,800

BASIC AND DILUTED NET INCOME PE

BASIC AND DILUTED NET INCOME PER SHARE	12 Months Ended
BASIC AND DILUTED NET INCOME PER SHARE	Dec. 31, 2019
Earnings Per Share [Abstract]
BASIC AND DILUTED NET INCOME PER SHARE	NOTE 15: BASIC AND DILUTED NET INCOME PER SHARE Year ended December 31, 2017 2018 2019 Numerator: Net income available to shareholders of ordinary shares $ 16,015 $ 47,072 $ 63,064 Denominator: Shares used in computing basic net income per ordinary shares 34,824,312 36,174,316 37,586,387 Year ended December 31, 2017 2018 2019 Numerator: Net income available to shareholders of ordinary shares $ 16,015 $ 47,072 $ 63,064 Denominator: Shares used in computing diluted net income per ordinary shares 36,175,824 37,065,727 38,890,108 The total weighted average number of shares related to outstanding options, RSUs and PSUs that have been excluded from the calculation of diluted net income per ordinary share was 1,880,018, 1,175,311 and 495,975 for the years ended December 31, 2017, 2018 and 2019, respectively. Additionally, 3.6 million shares underlying the conversion option of the Convertible Notes are not considered in the calculation of diluted net income per share as the effect would be anti-dilutive. The Company intends to settle the principal amount of Convertible Notes in cash and therefore will use the treasury stock method for calculating any potential dilutive effect on diluted net income per share, if applicable. The conversion will have a dilutive impact on diluted net income per share when the average market price of a common stock for a given period exceeds the conversion price of $157.53 per share.

SEGMENTS, CUSTOMERS AND GEOGRAP

SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION	12 Months Ended
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION	Dec. 31, 2019
Segment Reporting [Abstract]
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION	NOTE 16: SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION a. The Company applies ASC No. 280, "Segment Reporting." The Company operates in one reportable segment. b. The total revenues are attributed to geographic areas based on the location of the Company's channel partners which The following tables present total revenues for the years ended December 31, 2017, 2018 and 2019 and long-lived assets as of December 31, 2018 and 2019: Revenues: Year ended December 31, 2017 2018 2019 United States $ 145,453 $ 187,704 $ 233,945 Israel 7,282 6,909 7,827 United Kingdom 24,837 26,652 36,146 Europe, the Middle East and Africa ) 49,659 78,525 85,757 Other 34,470 43,409 70,220 $ 261,701 $ 343,199 $ 433,895 For the years ended December 31, 2017, 2018 and 2019, no single customer contributed more than 10% to the Company's total revenues. Long-lived assets: December 31, 2018 2019 United States $ 4,502 $ 3,810 Israel 9,161 11,441 United Kingdom 944 801 Europe, the Middle East and Africa ) 126 84 Other 387 336 $ 15,120 $ 16,472 *) Excluding United Kingdom and Israel

SIGNIFICANT ACCOUNTING POLICI_2

SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2019
Accounting Policies [Abstract]
Use of estimates	a. Use of estimates: The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates, judgments and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Such management estimates and assumptions are related, but not limited to contingent liabilities, income tax uncertainties, deferred taxes, share-based compensation, value of intangible assets and goodwill, fair value of the liability component of the convertible senior notes, as well as the determination of standalone selling prices in revenue transactions with multiple performance obligations and the estimated period of benefit for deferred contract costs. The Company's management believes that the estimates, judgment and assumptions used are reasonable based upon information available at the time they are made. These estimates, judgments and assumptions can affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the dates of the consolidated financial statements, and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates.
Principles of consolidation	b. Principles of consolidation: The consolidated financial statements include the financial statements of CyberArk Software Ltd. and its wholly-owned subsidiaries. All intercompany transactions and balances have been eliminated upon consolidation. F - 11 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Financial statements in U.S. dollars	c. Financial statements in U.S. dollars: A majority of the Company's revenues are generated in U.S. dollars. In addition, the equity investments were in U.S. dollars and a substantial portion of the Company's costs are incurred in U.S. dollars. The Company's management believes that the U.S. dollar is the currency of the primary economic environment in which the Company and each of its subsidiaries operates. Thus, the functional and reporting currency of the Company is the U.S. dollar. Accordingly, monetary accounts maintained in currencies other than the U.S. dollar are re-measured into U.S. dollars in accordance with Accounting Standard Codification ("ASC") No. 830 "Foreign Currency Matters." All transaction gains and losses of the re-measured monetary balance sheet items are reflected in the statement of comprehensive income as financial income or expenses, as appropriate.
Cash and cash equivalents	d. Cash and cash equivalents: Cash equivalents are short-term highly liquid deposits that are readily convertible to cash with original maturities of three months or less, at the date acquired.
Short-term bank deposits	e. Short-term bank deposits: Short-term bank deposits are deposits with maturities of up to one year. As of December 31, 2018 and 2019, the Company's bank deposits are denominated in U.S. dollars and New Israeli Shekels ("NIS") and bear yearly interest at weighted average rates of 2.92% and 2.27%, respectively. Short-term bank deposits are presented at their cost, including accrued interest.
Investments in marketable securities	f. Investments in marketable securities: The Company accounts for investments in debt marketable securities in accordance with ASC No. 320, "Investments - Debt and Equity Securities." The Company's management determines the appropriate classification of its investments in marketable securities at the time of purchase and re-evaluates such determinations at each balance sheet date. The Company classifies all of its marketable securities as available-for-sale. Available-for-sale securities are carried at fair value, with the unrealized gains and losses, net of tax, reported in accumulated other comprehensive income (loss) in shareholders' equity. Realized gains and losses on sale of marketable securities are included in financial income, net and are derived using the specific identification method for determining the cost of securities sold. The amortized cost of marketable securities is adjusted for amortization of premiums and accretion of discounts to maturity. Such amortization together with interest on securities is included in financial income, net. F - 12 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The Company's securities are reviewed for impairment in accordance with ASC No. 320-10-35. If such assets are considered to be impaired, the impairment charge is recognized in earnings when a decline in the fair value of its investments below the cost basis is judged to be Other-Than-Temporary Impairment (OTTI). Factors considered in making such a determination include the duration and severity of the impairment, the reason for the decline in value, the potential recovery period and the Company's intent to sell, including whether it is more likely than not that the Company will be required to sell the investment before recovery of cost basis. Based on the above factors, the Company concluded that unrealized losses on its available-for-sale securities for the years ended December 31, 2017, 2018 and 2019 were not OTTI.
Property and equipment	g. Property and equipment: Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, software and related equipment 16 – 33 Office furniture and equipment 7 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset
Long-lived assets	h. Long-lived assets: The long-lived assets of the Company are reviewed for impairment in accordance with ASC No. 360, "Property, Plant and Equipment", whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to the future undiscounted cash flows expected to be generated by the assets. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. During the years ended December 31, 2017, 2018 and 2019, no impairment losses have been identified.
Business combination	i. Business combination: The Company accounts for its business acquisitions in accordance with ASC No. 805, "Business Combinations." The Company uses its best estimates and assumptions as part of the purchase price allocation process to value assets acquired and liabilities assumed at the business combination date. The total purchase price allocated to the tangible and intangible assets acquired is assigned based on the fair values as of the date of the acquisition. Goodwill generated from the business combinations is primarily attributable to synergies between the Company and acquired companies` respective products and services. Acquisition-related expenses are recognized separately from the business combination and are expensed as incurred. F - 13 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Goodwill and other intangible assets	j. Goodwill and other intangible assets: Goodwill and certain other purchased intangible assets have been recorded in the Company's financial statements as a result of acquisitions. Goodwill represents excess of the purchase price in a business combination over the fair value of identifiable tangible and intangible assets acquired. Goodwill is not amortized, but rather is subject to an impairment test. ASC No. 350, "Intangible—Goodwill and other" requires goodwill to be tested for impairment at least annually and, in certain circumstances, between annual tests. The accounting guidance gives the option to perform a qualitative assessment to determine whether further impairment testing is necessary. The qualitative assessment considers events and circumstances that might indicate that a reporting unit’s fair value is less than its carrying amount. If it is determined, as a result of the qualitative assessment, that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, a quantitative test is performed. The Company operates as one reporting unit. Therefore, goodwill is tested for impairment by comparing the fair value of the reporting unit with its carrying value. The Company elects to perform an annual impairment test of goodwill as of October 1 of each year, or more frequently if impairment indicators are present. For the years ended December 31, 2017, 2018 and 2019, no impairment losses were identified. Purchased intangible assets with finite lives are carried at cost, less accumulated amortization. Amortization is computed over the estimated useful lives of the respective assets, which range from two
Derivative instruments	k. Derivative instruments: ASC No. 815, "Derivative and Hedging," requires companies to recognize all of their derivative instruments as either assets or liabilities on the balance sheet at fair value. For those derivative instruments that are designated and qualify as hedging instruments, a company must designate the hedging instrument, based upon the exposure being hedged, as a fair value hedge, cash flow hedge or a hedge of a net investment in a foreign operation. As a result of adopting new accounting guidance discussed in Note 2, "Recently adopted accounting standards", beginning January 1, 2019, gains and losses on the derivatives instruments that are designated and qualify as a cash flow hedge are recorded in accumulated other comprehensive income (loss) and reclassified into earnings in the same accounting period in which the designated forecasted transaction or hedged item affects earnings. Prior to January 1, 2019, cash flow hedge ineffectiveness was separately measured and reported immediately in earnings. Cash flow hedge ineffectiveness was immaterial during 2017 and 2018. F - 14 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) To hedge against the risk of changes in cash flows resulting from foreign currency salary payments during the year, the Company instituted a foreign currency cash flow hedging program. The Company hedges portions of its forecasted expenses denominated in NIS. These forward and option contracts are designated as cash flow hedges, as defined by ASC No. 815, and are all effective, as their critical terms match underlying transactions being hedged. As of December 31, 2018 and 2019, the amount recorded in accumulated other comprehensive income (loss) from the Company's currency forward and option transactions was $(727), net of tax of $(99) and $254, net of tax of $35, respectively. At December 31, 2019, the notional amounts of foreign exchange forward contracts into which the Company entered were $16,855. The foreign exchange forward contracts will expire by June 2020. The fair value of derivative instruments assets balances as of December 31, 2018 and 2019, totaled $10 and $288, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2018 and 2019, totaled $836 and $0, respectively. In addition to the derivatives that are designated as hedges as discussed above, the Company enters into certain foreign exchange forward transactions to economically hedge certain account receivables in Euros and Great British Pound. Gains and losses related to such derivative instruments are recorded in financial income, net. As of December 31, 2019, the notional amounts of foreign exchange forward contracts into which the Company entered were $17,648. The foreign exchange forward contracts will expire by October 2020. The fair value of derivative instruments assets balances as of December 31, 2018 and 2019, totaled $1,004 and $514, respectively. The fair value of derivative instruments liabilities balances as of December 31, 2018 and 2019 totaled $0 and $134, respectively. For the years ended December 31, 2017, 2018 and 2019, the Company recorded financial income, net from hedging transactions of $(796), $977 and $515, respectively.
Severance pay	l. Severance pay: The Israeli Severance Pay Law, 1963 ("Severance Pay Law"), specifies that employees are entitled to severance payment, following the termination of their employment. Under the Severance Pay Law, the severance payment is calculated as one month salary for each year of employment, or a portion thereof. F - 15 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The majority of the Company's liability for severance pay is covered by the provisions of Section 14 of the Severance Pay Law ("Section 14"). Under Section 14, employees are entitled to monthly deposits, at a rate of 8.33% of their monthly salary, made on behalf of the employee with insurance companies. Payments in accordance with Section 14 release the Company from any future severance payments in respect of those employees. As a result, the Company does not recognize any liability for severance pay due to these employees and the deposits under Section 14 are not recorded as an asset in the Company's balance sheet. For the Company's employees in Israel who are not subject to Section 14, the Company calculated the liability for severance pay pursuant to the Severance Pay Law based on the most recent salary of these employees multiplied by the number of years of employment as of the balance sheet date. The Company's liability for these employees is fully provided for via monthly deposits with severance pay funds, insurance policies and accruals. The value of these deposits recorded as an asset on the Company's balance sheet under other long-term assets as of December 31, 2018 and 2019 is 3,579 and 4,313, respectively. The amount of accrued severance payable recorded as a liability on the Company’s balance sheet under long-term liabilities as of December 31, 2018 and 2019 is 5,597 and 6,751, respectively. Severance expense for the years ended December 31, 2017, 2018 and 2019, amounted to $2,707, $3,326 and $4,035, respectively.
U.S. defined contribution plan	m. U.S. defined contribution plan: The U.S. subsidiary has a 401(k) defined contribution plan covering certain full time and part time employees in the U.S. who meet certain eligibility requirements, excluding leased employees and contractors. All eligible employees may elect to contribute up to an annual maximum, of the lesser of 100% of their annual compensation to the plan through salary deferrals, subject to Internal Revenue Service limits, but not greater than $19 per year (for certain employees over 50 years of age the maximum contribution is $25 per year). The U.S. subsidiary matches amounts equal to 100% of the first 3% of the employee's compensation that they contribute to the defined contribution plan and 50% of the next 2% of their compensation that they contribute to the defined contribution plan with a limit of $11.2 per year per employee. For the years ended December 31, 2017, 2018 and 2019, the U.S. subsidiary recorded expenses for matching contributions of $1,677, $2,171 and $2,697, respectively. F - 16 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Convertible senior notes	n. Convertible senior notes: The Company accounts for its convertible senior notes in accordance with ASC 470-20 "Debt with Conversion and Other Options". The Company allocated the principal amount of the convertible senior notes between its liability and equity component. The liability component at issuance is recognized at fair value, based on the fair value of a similar instrument of similar credit rating and maturity that does not have a conversion feature. The equity component is based on the excess of the principal amount of the convertible senior notes over the fair value of the liability component and is recorded in additional paid-in capital. The equity component, net of issuance costs and deferred tax effects is presented within additional paid-in-capital and is not remeasured as long as it continues to meet the conditions for equity classification. The Company allocated the total issuance costs incurred to the liability and equity components of the convertible senior notes based on the same proportions as the proceeds from the notes. Issuance costs attributable to the liability and equity components were $12.9 million and $2.0 million, respectively. Issuance costs attributable to the liability are netted against the principal balance and will be amortized to interest expense using the effective interest method over the contractual term of the notes. The effective interest rate of the liability component of the notes is 3.50%. This interest rate was based on Company's credit risk rating using software industry rating methodology. Issuance costs attributable to the equity component are netted with the equity component in additional paid-in capital.
Revenue Recognition	o. Revenue recognition: The Company substantially generates revenues from licensing the rights to use its software products, maintenance and professional services. License revenues include perpetual and term-based licenses, as well as the ratable portion of sales of software as a service (“SaaS”). The Company sells its products through its direct sales force and indirectly through resellers. Payment is typically due within 30 to 90 calendar days of the invoice date. The Company recognizes revenues in accordance with ASC No. 606, "Revenue from Contracts with Customers" ("ASC No. 606"). As such, the Company identifies a contract with a customer, identifies the performance obligations in the contract, determines the transaction price, allocates the transaction price to each performance obligation in the contract and recognizes revenues when (or as) the Company satisfies a performance obligation. The Company enters into contracts that can include combinations of products and services, which are generally capable of being distinct and accounted for as separate performance obligations and may include an option to provide products or services. The license is distinct as the customer can derive the economic benefit of the software without any professional services, updates or technical support. F - 17 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The transaction price is determined based on the consideration to which the Company will be entitled in exchange for transferring goods or services to the customer. The Company does not grant a right of return to its customers. In instances of contracts where revenue recognition differs from the timing of invoicing, the Company generally determined that those contracts do not include a significant financing component. The primary purpose of the invoicing terms is to provide customers with simplified and predictable ways of purchasing the Company's products and services, not to receive or provide financing. The Company uses the practical expedient and does not assess the existence of a significant financing component when the difference between payment and revenue recognition is a year or less. The Company records unbilled receivables from contracts when the revenue recognized exceeds the amount billed to the customer. As of December 31, 2019, $5,526 long-term unbilled receivables are included in other long-term assets. The Company allocates the transaction price to each performance obligation based on its relative standalone selling price. For maintenance, the Company determines the standalone selling price based on the price at which the Company separately sells a renewal contract. For professional services, the Company determines the standalone selling prices based on the prices at which the Company separately sells those services. For software licenses, the Company determines the standalone selling prices by taking into account available information such as historical selling prices, contract value, geographic location, and the Company's price list and discount policy. Software license revenues, perpetual or term based, are recognized at the point of time when the license is made available for download by the customer. Maintenance and SaaS revenues are recognized ratably, on a straight-line basis over the term of the related contract, which is generally one The following table presents the Company's revenue by category: December 31, 2018 2019 License $ 192,514 $ 237,879 Maintenance and support 123,986 159,730 Professional services 26,699 36,286 $ 343,199 $ 433,895 For Additional information regarding disaggregated revenues, please refer to Note 16 below F - 18 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) Contract liabilities consist of deferred revenue and include unearned amounts received under maintenance and support contracts, professional services and amounts received from customers for licenses that do not meet the revenue recognition criteria as of the balance sheet date. Deferred revenues are recognized as (or when) the Company performs under the contract. During the year ended December 31, 2019, the Company recognized $87,926 that were included in the deferred revenues balance as of December 31, 2018. Remaining Performance Obligations: Transaction price allocated to remaining performance obligations represents non-cancelable contracts that have not yet been recognized, which includes deferred revenues and amounts not yet received that will be recognized as revenue in future periods. The aggregate amount of the transaction price allocated to remaining performance obligations was $293 million as of December 31, 2019. The Company expects to recognize approximately 55% in 2020 from remaining performance obligations as of December 31, 2019 and the remainder thereafter.
Deferred contract costs	p. Deferred contract costs: The Company pays sales commissions primarily to sales and marketing and certain management personnel based on their attainment of certain predetermined sales goals. Sales commissions are considered incremental and recoverable costs of obtaining a contract with a customer. Sales commissions paid for initial contracts, which are not commensurate with sales commissions paid for renewal contracts, are capitalized and amortized over an expected period of benefit. Based on its technology, customer contracts and other factors, the Company has determined the expected period of benefit to be approximately five years. Sales commissions for initial contracts, which are commensurate with sales commissions paid for renewal contracts, are capitalized and amortized correspondingly to the recognized revenue of the related initial contracts. Sales commissions for renewal contracts are capitalized and amortized on a straight-line basis over the related contractual renewal period. Amortization expense of these costs are substantially included in sales and marketing expenses. For the year ended December 31, 2018 and 2019, the amortization of deferred contract costs was $27,807 and $33,853, respectively. As of December 31, 2018 and 2019, the Company presented deferred contract costs from contracts which are less than 12 months of $389 and $1,014 in prepaid expenses and other current assets, respectively, and deferred contract costs in respect of contracts which are greater than 12 months of $25,595 and $37,074 in other long-term assets, respectively. F - 19 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Leases	q. Leases: On January 1, 2019, the Company adopted ASU No. 2016-02, Leases (ASC 842). The Company determines if an arrangement is a lease and the classification of that lease at inception based on: (1) whether the contract involves the use of a distinct identified asset, (2) whether the Company obtains the right to substantially all the economic benefits from the use of the asset throughout the period, and (3) whether the Company has a right to direct the use of the asset. The Company elected to not recognize a lease liability and a right-of-use (“ROU”) asset for leases with a term of twelve months or less. The Company also elected the practical expedient to not separate lease and non-lease components for its leases. ROU assets represent the right to use an underlying asset for the lease term and lease liabilities represent the obligation to make minimum lease payments arising from the lease. ROU assets are initially measured at amounts, which represents the discounted present value of the lease payments over the lease, plus any initial direct costs incurred. The lease liability is initially measured at lease commencement date based on the discounted present value of minimum lease payments over the lease term. The implicit rate within the operating leases is generally not determinable, therefore the Company uses the Incremental Borrowing Rate (“IBR”) based on the information available at commencement date in determining the present value of lease payments. The Company’s IBR is estimated to approximate the interest rate for collateralized borrowing with similar terms and payments and in economic environments where the leased asset is located. Certain leases include options to extend or terminate the lease. An option to extend the lease is considered in connection with determining the ROU asset and lease liability when it is reasonably certain that the Company will exercise that option. An option to terminate is considered unless it is reasonably certain that the Company will not exercise the option. Payments under our lease arrangements are primarily fixed, however, certain lease agreements contain variable payments, which are expensed as incurred and not included in the operating lease right-of-use assets and liabilities. Variable lease payments are primarily comprised of payments affected by common area maintenance and utility charges. The Company subleases certain office spaces to third-parties. Sublease income is recognized over the term of the agreement.
Research and development costs	r. Research and development costs: Research and development costs are charged to the statements of comprehensive income as incurred. ASC No. 985-20, "Software - Costs of Software to Be Sold, Leased, or Marketed," requires capitalization of certain software development costs subsequent to the establishment of technological feasibility. Based on the Company's product development process, technological feasibility is established upon completion of a working model. Costs incurred by the Company between completion of the working model and the point at which the product is ready for general release, have been insignificant. Therefore, all research and development costs are expensed as incurred. F - 20 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Internal use software	s. Internal use software: The Company capitalizes qualifying costs incurred during the application development stage related to software developed for internal-use. These costs are capitalized based on qualifying criteria. Such costs are amortized over the software's estimated life of three
Marketing expenses	t. Marketing expenses: Marketing expenses consist primarily of marketing campaigns and tradeshows. Marketing expenses are charged to the statement of comprehensive income, as incurred. Marketing expenses for the years ended December 31, 2017, 2018 and 2019, amounted to $14,106, $16,171 and $20,055, respectively.
Share-based compensation	u. Share-based compensation: The Company accounts for share-based compensation in accordance with ASC No. 718, "Compensation - Stock Compensation" ("ASC No. 718"). ASC No. 718 requires companies to estimate the fair value of equity-based payment awards on the date of grant using an option-pricing model. The value of the award is recognized as an expense over the requisite service periods, which is generally the vesting period of the respective award, on a straight-line basis when the only condition to vesting is continued service. If vesting is subject to a performance condition, recognition is based on the implicit service period of the award. Expense for awards with performance conditions is estimated and adjusted on a quarterly basis based upon the assessment of the probability that the performance condition will be met. The Company has selected the Black-Scholes-Merton option-pricing model as the most appropriate fair value method for its option awards. The fair value of restricted stock units ("RSU") and performance stock units ("PSU") is based on the closing market value of the underlying shares at the date of grant. The option-pricing model requires a number of assumptions, of which the most significant are the expected share price volatility and the expected option term. The company recognize forfeitures of equity-based awards as they occur. F - 21 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.)
Income taxes	v. Income taxes: The Company accounts for income taxes in accordance with ASC No. 740-10, "Income Taxes" ("ASC No. 740-10"). ASC No. 740-10 prescribes the use of the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between financial reporting and tax bases of assets and liabilities and are measured using the enacted tax rates and laws that will be in effect when the differences are expected to reverse. The Company provides a valuation allowance, if necessary, to reduce deferred tax assets to their estimated realizable value if it is more likely than not that some portion or all of the deferred tax assets will not be realized. The Company established reserves for uncertain tax positions based on the evaluation of whether or not the Company's uncertain tax position is "more likely than not" to be sustained upon examination based on its technical merits. The Company records interest and penalties pertaining to its uncertain tax positions in the financial statements as income tax expense.
Basic and diluted net income per share	w. Basic and diluted net income per share: Basic net income per ordinary share is computed by dividing net income for each reporting period by the weighted-average number of ordinary shares outstanding during each year. Diluted net income per ordinary share is computed by dividing net income for each reporting period by the weighted average number of ordinary shares outstanding during the period, plus dilutive potential ordinary shares considered outstanding during the period, in accordance with ASC No. 260-10 "Earnings Per Share".
Comprehensive income (loss)	x. Comprehensive income (loss): The Company accounts for comprehensive income (loss) in accordance with ASC No. 220, "Comprehensive Income." This statement establishes standards for the reporting and display of comprehensive income (loss) and its components in a full set of general purpose financial statements. Comprehensive income (loss) generally represents all changes in shareholders' equity during the period, except changes resulting from investments by, or distributions to, shareholders.
Concentration of credit risks	y. Concentration of credit risks: Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term bank deposits, marketable securities, trade receivables, severance pay funds and derivative instruments. The majority of the Company's cash and cash equivalents and short-term bank deposits are invested with major banks in Israel and the United States. Such investments in the United States are primarily in excess of insured limits and are not insured in other jurisdictions. Generally, these investments may be redeemed upon demand and the Company believes that the financial institutions that hold the Company's cash deposits are financially sound and, accordingly, bear minimal risk. F - 22 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The Company's marketable securities consist of investments, which are highly rated by credit agencies, in government, corporate and government sponsored enterprises debentures. The Company's investment policy limits the amount that the Company may invest in any one type of investment or issuer, in order to reduce credit risk concentrations. The trade receivables of the Company are mainly derived from sales to a diverse set of customers located primarily in the United States, Europe and Asia. The Company performs ongoing credit evaluations of its customers and, to date, has not experienced any significant losses. The Company has entered into forward contracts with major banks in Israel to protect against the risk of changes in exchange rates. The derivative instruments hedge a portion of the Company's non-dollar currency exposure.
Fair value of financial instruments	z. Fair value of financial instruments: The estimated fair value of financial instruments has been determined by the Company using available market information and valuation methodologies. Considerable judgment is required in estimating fair values. Accordingly, the estimates may not be indicative of the amounts the Company could realize in a current market exchange. The following methods and assumptions were used by the Company in estimating the fair value of their financial instruments: The carrying values of cash and cash equivalents, short-term bank deposits, trade receivables, prepaid expenses and other current assets, trade payables, employees and payroll accruals and accrued expenses and other current liabilities approximate their fair values due to the short-term maturities of these instruments. The Company applies ASC No. 820, "Fair Value Measurements and Disclosures" ("ASC No. 820"), with respect to fair value measurements of all financial assets and liabilities. The fair value of foreign currency contracts (used for hedging purposes) is estimated by obtaining current quotes from banks and third party valuations. F - 23 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) Fair value is an exit price, representing the amount 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. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. A three-tier fair value hierarchy is established as a basis for considering such assumptions and for inputs used in the valuation methodologies in measuring fair value: Level 1 - Inputs are unadjusted quoted prices in active markets for identical assets or liabilities that can be Level 2 - Inputs are quoted prices for similar assets and liabilities in active markets or inputs that are observable Level 3 - Inputs are unobservable inputs based on the Company's own assumptions used to measure assets and The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. In accordance with ASC No. 820, the Company measures its foreign currency derivative instruments, at fair value using the market approach valuation technique. Foreign currency derivative contracts as detailed in note 2.k are classified within Level 2 value hierarchy, as the valuation inputs are based on quoted prices and market observable data of similar instruments.
Recently adopted accounting pronouncements	aa. Recently adopted accounting standards: In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers Topic 606, an updated standard on revenue recognition and issued subsequent amendments to the initial guidance in March 2016, April 2016, May 2016 and December 2016 within ASU 2016-08, 2016-10, 2016-12 and 2016-20, respectively. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods and services to customers in amounts that reflect the consideration to which the company expects to be entitled in exchange for those goods and services. In addition, the new standard requires expanded disclosures. The Company adopted the standard effective January 1, 2018 using the modified retrospective method. Results from reporting periods beginning after January 1, 2018 are presented under ASC No. 606, while prior period amounts have not been adjusted and continue to be reported in accordance with the historic accounting under Revenue Recognition Topic 605 ("ASC No. 605"). F - 24 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 2: SIGNIFICANT ACCOUNTING POLICIES (Cont.) The most significant impact of the new standard relates to the way the Company accounts for term license arrangements and costs to obtain customer contracts. Specifically, under ASC No. 605, the Company recognizes both the term license and maintenance revenues ratably over the contract period whereas under the current revenue standard, term license revenues are recognized upfront, upon delivery, and the associated maintenance revenues are recognized over the contract period. In addition, the Company also implemented the guidance in ASC No. 340-40, "Other Assets and Deferred Costs." Under the historic accounting policy, sales commissions were expensed as incurred. The current standard requires the capitalization of all incremental costs that the Company incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained, provided the Company expects to recover the costs. For further information see Notes 2.o and 2.p. In February 2016, the FASB issued ASU No. 2016-02, Leases (ASC 842). The standard requires the recognition of ROU assets and lease liabilities for all leases. The standard requires a modified retrospective transition approach to recognize and measure leases at the initial application. The Company adopted the standard as of January 1, 2019, using a modified retrospective transition approach and elected to use the effective date as the date of initial application. The Company adopted the ”package of practical expedients”, which permits it not to reassess under the new standard its prior conclusions about lease identification, lease classification and initial direct costs. As a result, the consolidated balance sheets as of December 31, 2018 were not restated, continue to be reported under ASC 840, which did not require recognition of operating lease assets and liabilities on the balance sheets, and are not comparative. The standard had a material impact on the Company’s consolidated balance sheets which resulted in the recognition of ROU assets and lease liabilities of $26.0 million and $26.7 million, respectively, on January 1, 2019, which included reclassifying deferred rent and rent prepayments as components of the ROU assets. The standard did not have a material impact on the Company's consolidated statements of comprehensive income. In August 2017, the FASB issued ASU 2017-12, "Targeted Improvements to Accounting for Hedging Activities." The standard better aligns an entity's hedging activities and financial reporting for hedging relationships through changes to both the designation and measurement guidance for qualifying hedging relationships and the presentation of hedge results in the financial statements. The standard prospectively made hedge accounting easier to apply to hedging activities and also enhances disclosure requirements for how hedge transactions are reflected in the financial statements when hedge accounting is elected. The standard is effective for fiscal years beginning after December 15, 2018, with early adoption permitted. The Company adopted the standard beginning January 1, 2019. The standard did not have a material impact on the consolidated financial statements.
Recently issued accounting standards	ab. Recently issued accounting standards: In June 2016, the FASB Issued ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The new standard requires financial assets measured at amortized cost to be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The standard is effective for fiscal years beginning after December 15, 2019, with early adoption permitted and will be applied on a modified retrospective basis. The Company`s analysis and evaluation of the new standard and its potential impact on its consolidated financial statements will continue through its effective date in the first quarter of 2020. In January 2017, the FASB issued ASU 2017-04, Simplifying the Test for Goodwill Impairment (Topic 350). This standard eliminates Step 2 from the goodwill impairment test, instead requiring an entity to recognize a goodwill impairment charge for the amount by which the goodwill carrying amount exceeds the reporting unit's fair value. This guidance is effective for interim and annual goodwill impairment tests in fiscal years beginning after December 15, 2019 with early adoption permitted. This guidance must be applied on a prospective basis. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-15, "Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40): Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract." The new standard requires a customer in a cloud computing arrangement (i.e., hosting arrangement) that is a service contract to follow the internal-use software guidance in Accounting Standards Codification 350-40 to determine which implementation costs to capitalize as assets or expense as incurred. The new standard also requires presenting the capitalized implementation costs and their related amortization and cash flows on the financial statements consistent with the prepaid amounts and fees related to the associated cloud computing arrangement. Capitalized implementation costs will be required to be amortized over the term of the arrangement, beginning when the module or component of the cloud computing arrangement that is a service contract is ready for its intended use. The standard will be effective for the Company beginning January 1, 2020, with early adoption permitted. Entities can choose to adopt the new guidance prospectively or retrospectively. The Company does not expect the adoption of this guidance to have a material impact on its consolidated financial statements.
Reclassification	ac. Reclassification Certain comparative figures have been reclassified to conform to the current year presentation.

SIGNIFICANT ACCOUNTING POLICI_3

SIGNIFICANT ACCOUNTING POLICIES (Tables)	12 Months Ended
SIGNIFICANT ACCOUNTING POLICIES (Tables)	Dec. 31, 2019
Schedule of Depreciation Rates	Property and equipment are stated at cost, net of accumulated depreciation. Depreciation is calculated using the straight-line method over the estimated useful lives of the assets at the following annual rates: % Computers, software and related equipment 16 – 33 Office furniture and equipment 7 – 20 Leasehold improvements Over the shorter of the related lease period or the life of the asset
Schedule of Company's Revenue by Category	The following table presents the Company's revenue by category: December 31, 2018 2019 License $ 192,514 $ 237,879 Maintenance and support 123,986 159,730 Professional services 26,699 36,286 $ 343,199 $ 433,895

MARKETABLE SECURITIES (Table)

MARKETABLE SECURITIES (Table)	12 Months Ended
MARKETABLE SECURITIES (Table)	Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]
Schedule of summarizes the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities	The following tables summarize the amortized cost, unrealized gains and losses, and fair value of available-for-sale marketable securities as of December 31, 2018 and 2019: December 31, 2018 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 77,758 $ (228 ) $ 8 $ 77,538 U.S. agencies debentures 6,692 (23 ) 2 6,671 Total $ 84,450 $ (251 ) $ 10 $ 84,209 ) Out of the unrealized losses, an amount of $149 has been in a continuous unrealized loss position for twelve months or longer. December 31, 2019 Amortized cost Gross unrealized losses Gross unrealized gains Fair value Corporate debentures $ 104,952 $ (21 ) $ 651 $ 105,582 U.S. agencies debentures 81,227 (10 ) 21 81,238 Total $ 186,179 $ (31 ) $ 672 $ 186,820 ) Out of the unrealized losses, an amount of $5 has been in a continuous unrealized loss position for twelve months or longer.
Schedule of summarizes the amortized cost and fair value of available-for-sale marketable securities	The following table summarizes the amortized cost and fair value of available-for-sale marketable securities as of December 31, 2018 and 2019, by contractual years-to maturity: December 31, 2018 2019 Amortized cost Fair value Amortized cost Fair value Due within one year $ 60,062 $ 59,948 $ 132,321 $ 132,412 Due between one and four years 24,388 24,261 53,858 54,408 $ 84,450 $ 84,209 $ 186,179 $ 186,820

PREPAID EXPENSES AND OTHER CU_2

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	12 Months Ended
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables)	Dec. 31, 2019
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Schedule of Prepaid Expenses And Other Current Assets	December 31, 2018 2019 Prepaid expenses $ 2,879 $ 5,002 Hedging transaction assets 1,014 802 Government authorities 1,452 1,162 Deferred commissions and other current assets 1,004 1,440 $ 6,349 $ 8,406

PROPERTY AND EQUIPMENT, NET (Ta

PROPERTY AND EQUIPMENT, NET (Tables)	12 Months Ended
PROPERTY AND EQUIPMENT, NET (Tables)	Dec. 31, 2019
Property, Plant and Equipment [Abstract]
Schedule of Property And Equipment	The composition of property and equipment is as follows: December 31, 2018 2019 Cost: Computers, software and related equipment ) $ 12,976 $ 17,470 Leasehold improvements 6,148 6,775 Office furniture and equipment 4,213 4,369 23,337 28,614 Less - accumulated depreciation 8,217 12,142 Depreciated cost $ 15,120 $ 16,472 ) For the years ended December 31, 2018 and 2019, the Company capitalized $1,391 and $2,397 including $27 and $193 of share-based compensation costs, relating to its internal use software development, respectively.

GOODWILL AND OTHER INTANGIBLE_2

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	12 Months Ended
GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Tables)	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of carrying amount of goodwill	Changes in the carrying amount of goodwill: December 31, 2018 2019 Balance as of beginning of the year $ 69,217 $ 82,400 Goodwill acquired 13,183 - Closing balance $ 82,400 $ 82,400
Schedule of Intangible Assets	The composition of intangible assets is as follows: December 31, 2018 2019 Original amount: Technology $ 26,141 $ 26,141 Customer relationships 5,120 5,120 Other 664 664 31,925 31,925 Less - accumulated amortization 17,193 22,782 Intangible assets, net $ 14,732 $ 9,143
Schedule of Future Amortization Expense	The estimated future amortization expense of intangible assets as of December 31, 2019 is as follows: 2020 3,821 2021 2,740 2022 1,808 2023 390 2024 128 Thereafter 256 $ 9,143

ACCRUED EXPENSES AND OTHER CU_2

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	12 Months Ended
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)	Dec. 31, 2019
Payables and Accruals [Abstract]
Schedule of Accrued Expenses And Other Current Liabilities	December 31, 2018 2019 Government authorities $ 6,057 $ 11,890 Accrued expenses 4,562 5,455 Unrecognized tax benefits 1,816 3,728 Lease liability, current - 5,925 Hedging transaction liabilities 836 134 $ 13,271 $ 27,132

LEASES (Tables)

LEASES (Tables)	12 Months Ended
LEASES (Tables)	Dec. 31, 2019
Leases [Abstract]
Schedule of Components of Lease Costs	The components of operating lease costs were as follows: Year ended December 31, 2019 Operating lease cost $ 5,897 Short-term lease cost 733 Variable lease cost 1,014 Sublease income (279 ) Total net lease costs $ 7,365
Schedule of Supplemental Balance Sheet Information Related to Operating Leases	Supplemental balance sheet information related to operating leases is as follows: As of December 31, 2019 Operating lease ROU assets $ 22,484 Operating lease liabilities, current $ 5,925 Operating lease liabilities, long-term $ 18,579 Weighted average remaining lease term (in years) 4.8 Weighted average discount rate 1.7 %
Schedule of Minimum Lease Payments for Company's ROU Assets Over Remaining Lease Periods	Minimum lease payments for the Company’s ROU assets over the remaining lease periods as of December 31, 2019, are as follows: As of December 31, 2019 2020 $ 5,973 2021 5,644 2022 5,501 2023 4,695 2024 3,119 Thereafter 587 Total undiscounted lease payments $ 25,519 Less: imputed interest (1,015 ) Present value of lease liabilities $ 24,504

FAIR VALUE MEASUREMENTS (Table)

FAIR VALUE MEASUREMENTS (Table)	12 Months Ended
FAIR VALUE MEASUREMENTS (Table)	Dec. 31, 2019
Fair Value Disclosures [Abstract]
Schedule of fair value of financial assets and liabilities	The following tables present the fair value of money market funds and marketable securities for the years ended December 31, 2018 and 2019: December 31, 2018 2019 Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: Money market funds $ 335 $ - $ 335 $ 213,494 $ - $ 213,494 U.S. agencies debentures - - - - 25,058 25,058 Marketable securities: Corporate debentures - 77,538 77,538 - 105,582 105,582 U.S. agencies debentures - 6,671 6,671 - 81,238 81,238 Total assets measured at fair value $ 335 $ 84,209 $ 84,544 $ 213,494 $ 211,878 $ 425,372

CONVERTIBLE SENIOR NOTES, NET (

CONVERTIBLE SENIOR NOTES, NET (Tables)	12 Months Ended
CONVERTIBLE SENIOR NOTES, NET (Tables)	Dec. 31, 2019
Debt Disclosure [Abstract]
Schedule of Net Carrying Amount of Liability and Equity Components of Notes	The net carrying amount of the liability and equity components of the Convertible Notes as of December 31, 2019 is as follows: December 31, 2019 Liability component: Principal amount $ 575,000 Unamortized discount (77,287 ) Unamortized issuance costs (12,594 ) Net carrying amount $ 485,119 Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022 $ 65,932
Schedule of Interest Expense Related to Notes	Interest expense related to the Convertible Notes was as follows: December 31, 2019 Amortization of debt discount $ 1,713 Amortization of debt issuance costs 253 Total interest expense recognized $ 1,966

SHAREHOLDERS' EQUITY (Tables)

SHAREHOLDERS' EQUITY (Tables)	12 Months Ended
SHAREHOLDERS' EQUITY (Tables)	Dec. 31, 2019
Share-based Payment Arrangement [Abstract]
Schedule of Shares Capital	a. Composition of share capital of the Company: December 31, 2018 2019 Authorized Issued and outstanding Authorized Issued and outstanding Number of shares Ordinary shares of NIS 0.01 par value each 250,000,000 36,838,523 250,000,000 38,043,516
Schedule of Share Based Compensation Expense	The total share-based compensation expense related to all of the Company's equity-based awards, recognized for the years ended December 31, 2017, 2018 and 2019 is comprised as follows: Year ended December 31, 2017 2018 2019 Cost of revenues $ 2,289 $ 3,350 $ 5,690 Research and development 6,110 7,922 10,960 Sales and marketing 8,642 12,708 20,976 General and administrative 8,196 11,984 17,891 Total share-based compensation expense $ 25,237 $ 35,964 $ 55,517
Schedule of Stock Option Activity	A summary of the activity in options granted to employees for the year ended December 31, 2019 is as follows: Amount of options Weighted average exercise price Weighted average remaining contractual term (in years) Aggregate intrinsic value Balance as of December 31, 2018 1,476,610 $ 46.40 7.30 $ 40,968 Granted 87,600 $ 115.26 Exercised (618,917 ) $ 39.66 Forfeited (28,780 ) $ 54.03 Balance as of December 31, 2019 916,513 $ 57.29 6.96 $ 54,762 Exercisable as of December 31, 2019 590,891 $ 51.50 6.32 $ 38,523
Schedule of Fair Value Assumptions	The following table sets forth the parameters used in computation of the options compensation to employees for the years ended December 31, 2017, 2018 and 2019: Year ended December 31, 2017 2018 2019 Expected volatility 45%-48% 47%-48% 48% Expected dividends 0% 0% 0% Expected term (in years) 5.25-6.25 5.00-6.20 5.90-6.10 Risk free rate 1.77%- 2.05% 2.38%- 3.12% 1.49%- 2.49%
Schedule of Options Data	A summary of options data for the years ended December 31, 2017, 2018 and 2019, is as follows: Year ended December 31, 2017 2018 2019 Weighted-average grant date fair value of options granted $ 21.81 $ 28.26 $ 55.43 Total intrinsic value of the options exercised $ 33,614 $ 53,398 $ 45,326
Schedule of Outstanding and Exercisable Options	F - 37 CYBERARK SOFTWARE LTD. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS U.S. dollars in thousands (except share and per share data and unless otherwise indicated) NOTE 12: SHAREHOLDERS' EQUITY (Cont.) The following tables summarize information about the Company's outstanding and exercisable options granted to employees as of December 31, 2019: Exercise price Options outstanding as of December 31, 2019 Weighted average remaining contractual term Options exercisable as of December 31, 2019 Weighted average remaining contractual term (years) (years) $ 1.06 – 14.00 40,055 3.77 40,055 3.77 $ 37.44 – 47.29 164,875 6.96 85,404 6.61 $ 47.40 – 51.86 309,557 7.09 211,097 6.85 $ 52.48 – 64.65 285,726 6.34 241,978 6.03 $ 64.93 – 131.65 116,300 9.22 12,357 9.15 916,513 6.96 590,891 6.32
Schedule of RSUs and PSUs Activity	e. A summary of RSUs and PSUs activity for the year ended December 31, 2019 is as follows: Amount of RSUs and PSUs Weighted average grant date fair value Unvested as of December 31, 2018 1,721,620 $ 56.15 Granted 918,850 $ 119.93 Vested (586,076 ) $ 57.00 Forfeited (94,750 ) $ 72.85 Unvested as of December 31, 2019 1,959,644 $ 85.00

INCOME TAXES (Tables)

INCOME TAXES (Tables)	12 Months Ended
INCOME TAXES (Tables)	Dec. 31, 2019
Income Tax Disclosure [Abstract]
Schedule of Income Before Income Taxes	b. Income before taxes on income is comprised as follows: Year ended December 31, 2017 2018 2019 Domestic income $ 13,937 $ 52,158 $ 52,254 Foreign income (loss) 10,492 (315 ) 17,830 $ 24,429 $ 51,843 $ 70,084
Schedule of Deferred Tax Assets and Liabilities	Deferred taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts recorded for tax purposes. Significant components of the Company's deferred tax assets and liabilities are as follows: December 31, 2018 2019 Deferred tax assets: Carry-forwards losses and credits $ 16,069 $ 19,205 Capital losses carry-forwards 47 90 Research and development expenses 1,351 1,932 Deferred revenues 7,466 8,043 Share-based compensation 5,922 8,841 Operating lease liability - 1,400 Accruals and other 1,524 1,783 Deferred tax assets before valuation allowance 32,379 41,294 Less: Valuation allowance 1,647 1,299 Net deferred tax assets $ 30,732 $ 39,995 Deferred tax liabilities: Intangible assets $ 1,997 $ 1,950 Convertible senior notes - 10,786 Deferred commission 4,770 6,463 Operating lease ROU asset - 1,308 Property and equipment and other 662 471 Deferred tax liabilities $ 7,429 $ 20,978
Schedule of Income Taxes	d. Income taxes are comprised as follows: Year ended December 31, 2017 2018 2019 Current $ 2,558 $ 11,827 $ 13,994 Deferred 5,856 (7,056 ) (6,974 ) $ 8,414 $ 4,771 $ 7,020 Year ended December 31, 2017 2018 2019 Domestic $ 3,033 $ 8,359 $ 8,093 Foreign 5,381 (3,588 ) (1,073 ) $ 8,414 $ 4,771 $ 7,020
Schedule of Reconciliation of Income Taxes	e. A reconciliation of the Company's theoretical income tax expense to actual income tax expense is as follows: Year ended December 31, 2017 2018 2019 Income before income taxes $ 24,429 $ 51,843 $ 70,084 Statutory tax rate 24.0 % 23.0 % 23.0 % Theoretical income tax expense 5,863 11,924 16,119 Excess tax benefits related to share-based compensation (5,050 ) (6,726 ) (6,391 ) Non-deductible expenses 2,081 3,011 3,002 Intra-entity intellectual property transfer - 1,768 - Unrecognized tax benefits 645 697 1,343 Foreign and preferred enterprise tax rates differential (1,792 ) (5,710 ) (6,717 ) Impact of Tax Cuts and Jobs Act of 2017 6,492 - - Other 175 (193 ) (336 ) Income tax expense $ 8,414 $ 4,771 $ 7,020
Schedule of Unrecognized Tax Benefits	A reconciliation of the opening and closing amounts of total unrecognized tax benefits is as follows: Year ended December 31, 2018 2019 Opening balance $ 1,119 $ 1,993 Increase related to prior year tax positions 404 120 Decrease related to expiration of statutes of limitations (353 ) (242 ) Increase related to current year tax positions 823 1,857 Closing balance $ 1,993 $ 3,728

FINANCIAL INCOME, NET (Tables)

FINANCIAL INCOME, NET (Tables)	12 Months Ended
FINANCIAL INCOME, NET (Tables)	Dec. 31, 2019
Other Income and Expenses [Abstract]
Schedule of Financial Income	Year ended December 31, 2017 2018 2019 Bank charges $ (158 ) $ (177 ) $ (274 ) Exchange rate income (losses), net 1,735 (1,050 ) (803 ) Interest income 2,526 5,778 10,843 Amortization of debt discount and issuance costs - - (1,966 ) Financial income, net $ 4,103 $ 4,551 $ 7,800

BASIC AND DILUTED NET INCOME _2

BASIC AND DILUTED NET INCOME PER SHARE (Tables)	12 Months Ended
BASIC AND DILUTED NET INCOME PER SHARE (Tables)	Dec. 31, 2019
Earnings Per Share [Abstract]
Schedule of Basic and Diluted Income per Share	Year ended December 31, 2017 2018 2019 Numerator: Net income available to shareholders of ordinary shares $ 16,015 $ 47,072 $ 63,064 Denominator: Shares used in computing basic net income per ordinary shares 34,824,312 36,174,316 37,586,387 Year ended December 31, 2017 2018 2019 Numerator: Net income available to shareholders of ordinary shares $ 16,015 $ 47,072 $ 63,064 Denominator: Shares used in computing diluted net income per ordinary shares 36,175,824 37,065,727 38,890,108

SEGMENTS, CUSTOMERS AND GEOGR_2

SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables)	12 Months Ended
SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Tables)	Dec. 31, 2019
Segment Reporting [Abstract]
Schedule of Revenue by Geographic Location	The following tables present total revenues for the years ended December 31, 2017, 2018 and 2019 and long-lived assets as of December 31, 2018 and 2019: Revenues: Year ended December 31, 2017 2018 2019 United States $ 145,453 $ 187,704 $ 233,945 Israel 7,282 6,909 7,827 United Kingdom 24,837 26,652 36,146 Europe, the Middle East and Africa *) 49,659 78,525 85,757 Other 34,470 43,409 70,220 $ 261,701 $ 343,199 $ 433,895
Schedule of Long-Lived Assets by Geographic Location	For the years ended December 31, 2017, 2018 and 2019, no single customer contributed more than 10% to the Company's total revenues. Long-lived assets: December 31, 2018 2019 United States $ 4,502 $ 3,810 Israel 9,161 11,441 United Kingdom 944 801 Europe, the Middle East and Africa ) 126 84 Other 387 336 $ 15,120 $ 16,472 ) Excluding United Kingdom and Israel

GENERAL (Narrative) (Details)

GENERAL (Narrative) (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended
GENERAL (Narrative) (Details) - USD ($) $ in Thousands	May 31, 2017	Mar. 31, 2018
Conjur [Member]
General [Line Items]
Total gross consideration	$ 41,708
Acquisition costs	$ 686
Vaultive [Member]
General [Line Items]
Total gross consideration		$ 18,471
Acquisition costs		$ 268

SIGNIFICANT ACCOUNTING POLICI_4

SIGNIFICANT ACCOUNTING POLICIES (Narrative) (Details) - USD ($)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2019
Significant Accounting Policies [Line Items]
Weighted average interest rates, bank deposit	2.27%	2.92%
Employees entitled severance monthly deposit, as a percentage of salary	8.33%
Severance expense	$ 4,035,000	$ 3,326,000	$ 2,707,000
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent	100.00%
Maximum annual contribution per employee	$ 19,000
Matching contribution expense	2,697,000	2,171,000	1,677,000
Marketing expenses	20,055,000	16,171,000	14,106,000
Aggregate amount of the transaction price allocated to remaining performance obligation	$ 293,000,000
Revenue remaining performance obligations percentage	55.00%
Deferred revenues recognized in the period that were included in the deferred revenues balance as of December 31, 2018	$ 87,926,000
Prepaid expenses and other current assets	8,406,000	6,349,000
Other long-term assets	72,091,000	31,863,000
Deposits in other long-term assets	4,313,000	3,579,000
Accrued severance payable liability	6,751,000	5,597,000
Amortization of deferred contract costs	33,853,000	27,807,000
Issuance costs attributable to liability	12,900,000
Issuance costs attributable to equity components	2,000,000
Long-term unbilled receivables	$ 5,526,000
Convertible Senior Note [Member]
Significant Accounting Policies [Line Items]
Effective interest rate	3.50%			0.00%
Deferred contract costs [Member]
Significant Accounting Policies [Line Items]
Prepaid expenses and other current assets	$ 1,014,000	389,000
Other long-term assets	$ 37,074,000	25,595,000
First 3% of Employee Contribution [Member]
Significant Accounting Policies [Line Items]
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	100.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	3.00%
Next 2% of Employee Contribution [Member]
Significant Accounting Policies [Line Items]
Maximum annual contribution per employee	$ 11,200
Defined Contribution Plan, Employer Matching Contribution, Percent of Match	50.00%
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay	2.00%
Employees Over Fifty Years [Member]
Significant Accounting Policies [Line Items]
Maximum annual contribution per employee	$ 25,000
Minimum [Member]
Significant Accounting Policies [Line Items]
Intangible assets, useful life	2 years
Expected impact from recognition of ROU assets and liabilities on 2019 consolidated balance sheet	$ 26,000,000
Minimum [Member] \| Software and Software Development Costs [Member]
Significant Accounting Policies [Line Items]
Contracts costs amortized useful life	3 years
Minimum [Member] \| Software [Member]
Significant Accounting Policies [Line Items]
Intangible assets, useful life	1 year
Maximum [Member]
Significant Accounting Policies [Line Items]
Intangible assets, useful life	11 years
Expected impact from recognition of ROU assets and liabilities on 2019 consolidated balance sheet	$ 26,700,000
Maximum [Member] \| Software and Software Development Costs [Member]
Significant Accounting Policies [Line Items]
Contracts costs amortized useful life	5 years
Maximum [Member] \| Software [Member]
Significant Accounting Policies [Line Items]
Intangible assets, useful life	3 years
Foreign Exchange Forward and Option [Member]
Significant Accounting Policies [Line Items]
Accumulated other comprehensive gain (loss) from currency forward and option transactions	$ 254,000	(727,000)
Accumulated other comprehensive gain (loss) from currency forward and option transactions, tax	35,000	(99,000)
Notional amounts	16,855,000
Fair value of derivative asset	514,000	1,004,000
Foreign Exchange Forward and Option [Member] \| Derivative Liabilities [Member]
Significant Accounting Policies [Line Items]
Fair value of derivative liability	134,000	0
Foreign Exchange Forward [Member]
Significant Accounting Policies [Line Items]
Notional amounts	17,648,000
Financial income net from hedging transaction, net	515,000	977,000	$ (796,000)
Foreign Exchange Forward [Member] \| Derivative Assets [Member]
Significant Accounting Policies [Line Items]
Fair value of derivative asset	288,000	10,000
Foreign Exchange Forward [Member] \| Derivative Liabilities [Member]
Significant Accounting Policies [Line Items]
Fair value of derivative liability	$ 0	$ 836,000

SIGNIFICANT ACCOUNTING POLICI_5

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Depreciation Rates) (Details)	12 Months Ended
	Dec. 31, 2019
Computers, software and Related Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment annual depreciation rate	16.00%
Computers, software and Related Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment annual depreciation rate	33.00%
Office Furniture and Equipment [Member] \| Minimum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment annual depreciation rate	7.00%
Office Furniture and Equipment [Member] \| Maximum [Member]
Property, Plant and Equipment [Line Items]
Property plant and equipment annual depreciation rate	20.00%

SIGNIFICANT ACCOUNTING POLICI_6

SIGNIFICANT ACCOUNTING POLICIES (Schedule of Company's Revenue by Category) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Revenue	$ 433,895	$ 343,199	$ 261,701
License [Member]
Property, Plant and Equipment [Line Items]
Revenue	237,879	192,514
Maintenance and support [Member]
Property, Plant and Equipment [Line Items]
Revenue	159,730	123,986
Professional services [Member]
Property, Plant and Equipment [Line Items]
Revenue	$ 36,286	$ 26,699

MARKETABLE SECURITIES (Schedule

MARKETABLE SECURITIES (Schedule of amortized cost, unrealized gains and losses, and fair value of available-for-sale) (Details) - USD ($) $ in Thousands	Dec. 31, 2019		Dec. 31, 2018
Marketable Securities [Line Items]
Fair value	$ 186,820		$ 84,209
Gross unrealized losses	(31)	[1]	(251)	[2]
Gross unrealized gains	672		10
Amortized cost	186,179		84,450
Continuous unrealized losses position for twelve months or longer	5		149
Corporate debentures [Member]
Marketable Securities [Line Items]
Fair value	105,582		77,538
Gross unrealized losses	(21)	[1]	(228)	[2]
Gross unrealized gains	651		8
Amortized cost	104,952		77,758
U.S. agencies debentures [Member]
Marketable Securities [Line Items]
Fair value	81,238		6,671
Gross unrealized losses	(10)	[1]	(23)	[2]
Gross unrealized gains	21		2
Amortized cost	$ 81,227		$ 6,692

[1]	Out of the unrealized losses, an amount of $5 has been in a continuous unrealized loss position for twelve months or longer.
[2]	Out of the unrealized losses, an amount of $149 has been in a continuous unrealized loss position for twelve months or longer.

MARKETABLE SECURITIES (Schedu_2

MARKETABLE SECURITIES (Schedule of amortized cost and fair value of available-for-sale marketable securities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Amortized cost
Due within one year	$ 132,321	$ 60,062
Due between one and four years	53,858	24,388
Amortized cost	186,179	84,450
Fair value
Due within one year	132,412	59,948
Due between one and four years	54,408	24,261
Fair value	$ 186,820	$ 84,209

PREPAID EXPENSES AND OTHER CU_3

PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]
Prepaid expenses	$ 5,002	$ 2,879
Hedging transaction assets	802	1,014
Government authorities	1,162	1,452
Deferred commissions and other current assets	1,440	1,004
Prepaid expenses and other current assets	$ 8,406	$ 6,349

PROPERTY AND EQUIPMENT, NET (Sc

PROPERTY AND EQUIPMENT, NET (Schedule of Property and Equipment) (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 28,614	$ 23,337
Less - accumulated depreciation		12,142	8,217
Depreciated cost		16,472	15,120
Computers, software and Related Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross	[1]	17,470	12,976
Leasehold Improvements [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		6,775	6,148
Office Furniture and Equipment [Member]
Property, Plant and Equipment [Line Items]
Property, Plant and Equipment, Gross		$ 4,369	$ 4,213

[1]	For the years ended December 31, 2018 and 2019, the Company capitalized $1,391 and $2,397 including $27 and $193 of share-based compensation costs, relating to its internal use software development, respectively.

PROPERTY AND EQUIPMENT, NET (Na

PROPERTY AND EQUIPMENT, NET (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Property, Plant and Equipment [Line Items]
Depreciation expense	$ 5,057	$ 3,722	$ 2,597
Computers, software and Related Equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment capitalized costs	2,397	1,391
Share-based compensation costs capitalized during the period	$ 193	$ 27

GOODWILL AND OTHER INTANGIBLE_3

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense	$ 5,589	$ 6,356	$ 5,259

GOODWILL AND OTHER INTANGIBLE_4

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of carrying amount of goodwill) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
Balance as of beginning of the year	$ 82,400	$ 69,217
Goodwill acquired		13,183
Closing balance	$ 82,400	$ 82,400

GOODWILL AND OTHER INTANGIBLE_5

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Intangible Assets) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 31,925	$ 31,925
Less - accumulated amortization	22,782	17,193
Intangible assets, net	9,143	14,732
Technology [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	26,141	26,141
Customer relationships [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	5,120	5,120
Other [Member]
Finite-Lived Intangible Assets [Line Items]
Original amount	$ 664	$ 664

GOODWILL AND OTHER INTANGIBLE_6

GOODWILL AND OTHER INTANGIBLE ASSETS, NET (Schedule of Future Amortization Expense) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Goodwill and Intangible Assets Disclosure [Abstract]
2020	$ 3,821
2021	2,740
2022	1,808
2023	390
2024	128
Thereafter	256
Intangible assets, net	$ 9,143	$ 14,732

ACCRUED EXPENSES AND OTHER CU_3

ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Payables and Accruals [Abstract]
Government authorities	$ 11,890	$ 6,057
Accrued expenses	5,455	4,562
Unrecognized tax benefits	3,728	1,816
Lease liability, current	5,925
Hedging transaction liabilities	134	836
Accrued expenses and other current liabilities	$ 27,132	$ 13,271

COMMITMENTS AND CONTINGENT LI_2

COMMITMENTS AND CONTINGENT LIABILITIES (Narrative) (Details) $ in Thousands	Dec. 31, 2019USD ($)
Commitments and Contingencies Disclosure [Abstract]
Pledged bank deposit for office lease agreement	$ 1,335
Bank guarantee, office lease agreement	$ 1,352

LEASES (Narrative) (Details)

LEASES (Narrative) (Details) $ in Millions	12 Months Ended
LEASES (Narrative) (Details) $ in Millions	Dec. 31, 2019USD ($)
Lessee, Lease, Description [Line Items]
Remaining lease terms	4 years 9 months 18 days
Number of years in which lease term can be extended	8 years
Operating lease commitment	$ 1.8
Lease start date	Apr. 1, 2020
Operating lease term	4 years
Maximum [Member]
Lessee, Lease, Description [Line Items]
Remaining lease terms	6 years 6 months

LEASES (Schedule of Components

LEASES (Schedule of Components of Operating Lease Costs) (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2019USD ($)
Leases [Abstract]
Operating lease cost	$ 5,897
Short-term lease cost	733
Variable lease cost	1,014
Sublease income	(279)
Total net lease costs	$ 7,365

LEASES (Schedule of Supplementa

LEASES (Schedule of Supplemental Balance Sheet Information Related to Operating Leases) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Leases [Abstract]
Operating lease ROU assets	$ 22,484
Operating lease liabilities, current	5,925
Operating lease liabilities, long-term	$ 18,579
Weighted average remaining lease term (in years)	4 years 9 months 18 days
Weighted average discount rate	1.70%

LEASES (Schedule of Minimum Lea

LEASES (Schedule of Minimum Lease Payments for Company's ROU Assets Over Remaining Lease Periods) (Details) $ in Thousands	Dec. 31, 2019USD ($)
Leases [Abstract]
2020	$ 5,973
2021	5,644
2022	5,501
2023	4,695
2024	3,119
Thereafter	587
Total undiscounted lease payments	25,519
Less: imputed interest	(1,015)
Present value of lease liabilities	$ 24,504

FAIR VALUE MEASUREMENTS (Narrat

FAIR VALUE MEASUREMENTS (Narrative) (Details) $ in Millions	Dec. 31, 2019USD ($)
SeniorNotesMember
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Estimated fair value	$ 594.3

FAIR VALUE MEASUREMENTS (Schedu

FAIR VALUE MEASUREMENTS (Schedule of fair value of financial assets and liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	$ 425,372	$ 84,544
Corporate debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	105,582	77,538
U.S. agencies debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	25,058
Marketable securities	81,238	6,671
Cash equivalent and Money market funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	213,494	335
Level 1 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	213,494	335
Level 1 [Member] \| Corporate debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities
Level 1 [Member] \| U.S. agencies debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents
Marketable securities
Level 1 [Member] \| Cash equivalent and Money market funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	213,494	335
Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Total assets measured at fair value	211,878	84,209
Level 2 [Member] \| Corporate debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Marketable securities	105,582	77,538
Level 2 [Member] \| U.S. agencies debentures [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents	25,058
Marketable securities	81,238	6,671
Level 2 [Member] \| Cash equivalent and Money market funds [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Cash equivalents

CONVERTIBLE SENIOR NOTES, NET_2

CONVERTIBLE SENIOR NOTES, NET (Narrative) (Details) $ / shares in Units, $ in Thousands	1 Months Ended
	Nov. 30, 2019USD ($)$ / shares	Dec. 31, 2019USD ($)$ / shares	Dec. 31, 2019₪ / shares	Nov. 30, 2019₪ / shares	Dec. 31, 2018₪ / shares
Debt Instrument [Line Items]
Ordinary shares, par value \| ₪ / shares			₪ 0.01		₪ 0.01
Cap price of the capped call transactions \| $ / shares		$ 229.14
Cost of capped call transactions		$ 53,600
Capped call initial strike price \| $ / shares		$ 157.53
Issuance costs		$ 2,046
Deferred taxes		11,022
Convertible Senior Note [Member]
Debt Instrument [Line Items]
Principal amount	$ 500,000	$ 575,000
Coupon rate	0.00%	3.50%
Due date	Nov. 15, 2024
Additional principal amount	$ 75,000
Conversion rate \| $ / shares	$ 6.3478	$ 157.53
Ordinary shares, par value \| ₪ / shares				₪ 0.01
Conversion rate description	The Convertible Notes are convertible based upon an initial conversion rate of 6.3478 of the Company’s ordinary shares, par value NIS 0.01 per share per $1 principal amount of Convertible Notes (equivalent to a conversion price of approximately $157.53 per ordinary share)
Conversion rate percentage	130.00%
Principal amount of convertible notes for each trading day	$ 1
Percentage of measurement period of product of last reported sale price	98.00%
Percentage of repurchase price equal to principal amount of convertible notes	100.00%

CONVERTIBLE SENIOR NOTES, NET_3

CONVERTIBLE SENIOR NOTES, NET (Schedule of Net Carrying Amount of Liability and Equity Components of Notes) (Details) - Convertible Senior Note [Member] - USD ($) $ in Thousands	Dec. 31, 2019	Nov. 30, 2019
Net carrying amount of the liability and equity components:
Principal amount	$ 575,000	$ 500,000
Unamortized discount	(77,287)
Unamortized issuance costs	(12,594)
Net carrying amount	485,119
Equity component, net of issuance costs of $2,046 and deferred taxes of $11,022	$ 65,932

CONVERTIBLE SENIOR NOTES, NET_4

CONVERTIBLE SENIOR NOTES, NET (Schedule of Interest Expense Related to Notes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Debt Disclosure [Abstract]
Amortization of debt discount	$ 1,713
Amortization of debt issuance costs	253
Total interest expense recognized	$ 1,966

SHAREHOLDERS' EQUITY (Narrative

SHAREHOLDERS' EQUITY (Narrative) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Number of shares reserved for future grants	817,511
Unrecognized share based compensation expense	$ 141,029
Unrecognized share based compensation expense recognition period	2 years 6 months 3 days
Expected dividend yield	0.00%	0.00%	0.00%
Total fair value of RSUs and PSUs vested	$ 67,737	$ 23,762	$ 12,547

SHAREHOLDERS' EQUITY (Schedule

SHAREHOLDERS' EQUITY (Schedule of Shares Capital) (Details) - ₪ / shares	Dec. 31, 2019	Dec. 31, 2018
Share-based Payment Arrangement [Abstract]
Ordinary Shares Authorized	250,000,000	250,000,000
Ordinary shares, issued	38,043,516	36,838,523
Ordinary shares, outstanding	38,043,516	36,838,523
Ordinary shares, par value	₪ 0.01	₪ 0.01

SHAREHOLDERS' EQUITY (Schedul_2

SHAREHOLDERS' EQUITY (Schedule of Share Based Compensation Expense) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 55,517	$ 35,964	$ 25,237
Cost of Revenues [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	5,690	3,350	2,289
Research and Development Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	10,960	7,922	6,110
Sales and Marketing Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	20,976	12,708	8,642
General and Administrative Expense [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Share-based compensation expense	$ 17,891	$ 11,984	$ 8,196

SHAREHOLDERS' EQUITY (Schedul_3

SHAREHOLDERS' EQUITY (Schedule of Stock Option Activity) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Amount of options
Beginning balance	1,476,610
Granted	87,600
Exercised	(618,917)
Forfeited	(28,780)
Ending balance	916,513	1,476,610
Exercisable as of December 31, 2019	590,891
Weighted average exercise price
Beginning balance	$ 46.40
Granted	115.26
Exercised	39.66
Forfeited	54.03
Ending balance	57.29	$ 46.40
Exercisable as of December 31, 2019	$ 51.50
Weighted average remaining contractual term (in years)
Options outstanding	6 years 11 months 15 days	7 years 3 months 18 days
Exercisable as of December 31, 2019	6 years 3 months 25 days
Aggregate intrinsic value
Options outstanding	$ 54,762	$ 40,968
Exercisable as of December 31, 2019	$ 38,523

SHAREHOLDERS' EQUITY (Schedul_4

SHAREHOLDERS' EQUITY (Schedule of Fair Value Assumptions) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility	48.00%
Expected dividends	0.00%	0.00%	0.00%
Minimum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		47.00%	45.00%
Expected term (in years)	5 years 10 months 24 days	5 years	5 years 3 months
Risk free rate	1.49%	2.38%	1.77%
Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected volatility		48.00%	48.00%
Expected term (in years)	6 years 1 month 6 days	6 years 2 months 12 days	6 years 3 months
Risk free rate	2.49%	3.12%	2.05%

SHAREHOLDERS' EQUITY (Schedul_5

SHAREHOLDERS' EQUITY (Schedule of Options Data) (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Share-based Payment Arrangement [Abstract]
Weighted-average grant date fair value of options granted	$ 55.43	$ 28.26	$ 21.81
Total intrinsic value of the options exercised	$ 45,326	$ 53,398	$ 33,614

SHAREHOLDERS' EQUITY (Schedul_6

SHAREHOLDERS' EQUITY (Schedule of Outstanding and Exercisable Options) (Details)	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Options outstanding	916,513
Weighted average remaining contractual term (years)	6 years 11 months 15 days
Options exercisable	590,891
Weighted average remaining contractual term (years)	6 years 3 months 25 days
$1.06 - 14.00 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum \| $ / shares	$ 1.06
Exercise price, maximum \| $ / shares	$ 14
Options outstanding	40,055
Weighted average remaining contractual term (years)	3 years 9 months 7 days
Options exercisable	40,055
Weighted average remaining contractual term (years)	3 years 9 months 7 days
$37.44 - 47.29 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum \| $ / shares	$ 37.44
Exercise price, maximum \| $ / shares	$ 47.29
Options outstanding	164,875
Weighted average remaining contractual term (years)	6 years 11 months 15 days
Options exercisable	85,404
Weighted average remaining contractual term (years)	6 years 7 months 9 days
$47.40 - 51.86 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum \| $ / shares	$ 47.40
Exercise price, maximum \| $ / shares	$ 51.86
Options outstanding	309,557
Weighted average remaining contractual term (years)	7 years 1 month 2 days
Options exercisable	211,097
Weighted average remaining contractual term (years)	6 years 10 months 6 days
$52.48 - 64.65 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum \| $ / shares	$ 52.48
Exercise price, maximum \| $ / shares	$ 64.65
Options outstanding	285,726
Weighted average remaining contractual term (years)	6 years 4 months 2 days
Options exercisable	241,978
Weighted average remaining contractual term (years)	6 years 10 days
$64.93 - 131.65 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Exercise price, minimum \| $ / shares	$ 64.93
Exercise price, maximum \| $ / shares	$ 131.65
Options outstanding	116,300
Weighted average remaining contractual term (years)	9 years 2 months 19 days
Options exercisable	12,357
Weighted average remaining contractual term (years)	9 years 1 month 24 days

SHAREHOLDERS' EQUITY (Schedul_7

SHAREHOLDERS' EQUITY (Schedule of RSUs and PSUs Activity) (Details)	12 Months Ended
	Dec. 31, 2019$ / sharesshares
Amount of RSUs and PSUs
Unvested as of December 31, 2018 \| shares	1,721,620
Granted \| shares	918,850
Vested \| shares	(586,076)
Forfeited \| shares	(94,750)
Unvested as of December 31, 2019 \| shares	1,959,644
Weighted average grant date fair value
Unvested as of December 31, 2018 \| $ / shares	$ 56.15
Granted \| $ / shares	119.93
Vested \| $ / shares	57
Forfeited \| $ / shares	72.85
Unvested as of December 31, 2019 \| $ / shares	$ 85

INCOME TAXES (Narrative) (Detai

INCOME TAXES (Narrative) (Details) $ in Thousands, ₪ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2014	Dec. 31, 2019USD ($)	Dec. 31, 2019ILS (₪)	Dec. 31, 2018USD ($)	Dec. 31, 2017USD ($)
Operating Loss Carryforwards [Line Items]
Corporate tax rate in effect		23.00%	23.00%	23.00%	24.00%
Reduced tax rate		23.00%	23.00%
Operating loss carry-forwards		$ 75,605
Capital tax losses		219
Operating loss carry-forward post-tax act losses				$ 17,171
Tax exempt profits		14,716
Income tax liability that would have been incurred if the Company's retained tax-exempt income is distributed		$ 3,613
Foreign tax rate		4.00%	4.00%
Consolidated revenue threshhold for technological preferred enterprise taxation \| ₪			₪ 10,000
Percentage of annual income derived from exports		25.00%	25.00%
Capital gains tax rate		12.00%	12.00%
Purchase of intangible assets from foreign resident \| ₪			₪ 200
Withholding tax rate		20.00%	20.00%
Undistributed earnings		$ 36,454
Interest expense (income) related to uncertain tax positions		47		(38)	$ 56
Total accrual for interest		$ 112		$ 65
Percentage of taxable income limitation		80.00%	80.00%
Compensation paid per officer per under the rule non deductable					$ 1,000
Israel Tax Authority [Member]
Operating Loss Carryforwards [Line Items]
Corporate tax rate in effect	24.00%
U.S. [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry-forwards		$ 58,004
Operating loss carry-forwards, expiration term		20 years	20 years
U.S. subsidiary [Member]
Operating Loss Carryforwards [Line Items]
Operating loss carry-forwards		$ 40,833
Israel [Member]
Operating Loss Carryforwards [Line Items]
Corporate tax rate in effect		12.00%	12.00%
Minimum [Member] \| TCJA [Member]
Operating Loss Carryforwards [Line Items]
Reduced tax rate		21.00%	21.00%
Maximum [Member] \| TCJA [Member]
Operating Loss Carryforwards [Line Items]
Reduced tax rate		35.00%	35.00%

INCOME TAXES (Schedule of Incom

INCOME TAXES (Schedule of Income Before Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Domestic income	$ 52,254	$ 52,158	$ 13,937
Foreign income (loss)	17,830	(315)	10,492
Income before taxes on income	$ 70,084	$ 51,843	$ 24,429

INCOME TAXES (Schedule of Defer

INCOME TAXES (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018
Deferred tax assets:
Carry-forwards losses and credits	$ 19,205	$ 16,069
Capital losses carry-forwards	90	47
Research and development expenses	1,932	1,351
Deferred revenues	8,043	7,466
Share-based compensation	8,841	5,922
Operating lease liability	1,400
Accruals and other	1,783	1,524
Deferred tax assets before valuation allowance	41,294	32,379
Less: Valuation allowance	1,299	1,647
Net deferred tax assets	39,995	30,732
Deferred tax liabilities:
Intangible assets	1,950	1,997
Convertible senior notes	10,786
Deferred commission	6,463	4,770
Operating lease ROU asset	1,308
Property and equipment and other	471	662
Deferred tax liabilities	$ 20,978	$ 7,429

INCOME TAXES (Schedule of Inc_2

INCOME TAXES (Schedule of Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Current	$ 13,994	$ 11,827	$ 2,558
Deferred	(6,974)	(7,056)	5,856
Domestic	8,093	8,359	3,033
Foreign	(1,073)	(3,588)	5,381
Income tax expense	$ 7,020	$ 4,771	$ 8,414

INCOME TAXES (Schedule of Recon

INCOME TAXES (Schedule of Reconciliation of Income Taxes) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Income Tax Disclosure [Abstract]
Income before income taxes	$ 70,084	$ 51,843	$ 24,429
Statutory tax rate	23.00%	23.00%	24.00%
Theoretical income tax expense	$ 16,119	$ 11,924	$ 5,863
Excess tax benefits related to share-based compensation	(6,391)	(6,726)	(5,050)
Non-deductible expenses	3,002	3,011	2,081
Intra-entity intellectual property transfer		1,768
Unrecognized tax benefits	1,343	697	645
Foreign and preferred enterprise tax rates differential	(6,717)	(5,710)	(1,792)
Impact of Tax Cuts and Jobs Act of 2017			6,492
Other	(336)	(193)	175
Income tax expense	$ 7,020	$ 4,771	$ 8,414

INCOME TAXES (Schedule of Unrec

INCOME TAXES (Schedule of Unrecognized Tax Benefits) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018
Income Tax Disclosure [Abstract]
Opening balance	$ 1,993	$ 1,119
Increase related to prior year tax positions	120	404
Decrease related to expiration of statutes of limitations	(242)	(353)
Increase related to current year tax positions	1,857	823
Closing balance	$ 3,728	$ 1,993

FINANCIAL INCOME, NET (Details)

FINANCIAL INCOME, NET (Details) - USD ($) $ in Thousands	12 Months Ended
FINANCIAL INCOME, NET (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Other Income and Expenses [Abstract]
Bank charges	$ (274)	$ (177)	$ (158)
Exchange rate income (losses), net	(803)	(1,050)	1,735
Interest income	10,843	5,778	2,526
Amortization of debt discount and issuance costs	(1,966)
Financial income, net	$ 7,800	$ 4,551	$ 4,103

BASIC AND DILUTED NET INCOME _3

BASIC AND DILUTED NET INCOME PER SHARE (Narrative) (Details) - $ / shares	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017	Nov. 30, 2019
Antidilutive securities excluded from computation of earnings per share, amount	495,975	1,175,311	1,880,018
Shares underlying the conversion option of the Convertible Notes that are not considered in the calculation of diluted net income per share	3,600,000
Convertible Senior Note [Member]
Conversion price	$ 157.53			$ 6.3478

BASIC AND DILUTED NET INCOME _4

BASIC AND DILUTED NET INCOME PER SHARE (Schedule of Basic Income per Share) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income available to shareholders of ordinary shares	$ 63,064	$ 47,072	$ 16,015
Denominator:
Shares used in computing basic net income per ordinary shares	37,586,387	36,174,316	34,824,312

BASIC AND DILUTED NET INCOME _5

BASIC AND DILUTED NET INCOME PER SHARE (Schedule of Diluted Income per Share) (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Numerator:
Net income available to shareholders of ordinary shares	$ 63,064	$ 47,072	$ 16,015
Denominator:
Shares used in computing diluted net income per ordinary shares	38,890,108	37,065,727	36,175,824

SEGMENTS, CUSTOMERS AND GEOGR_3

SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Narrative) (Details)	12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Sales Revenue Net [Member] \| No Single Customer [Member]
Segment Reporting Information [Line Items]
Revenue Percentage	10.00%	10.00%	10.00%

SEGMENTS, CUSTOMERS AND GEOGR_4

SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Revenue by Geographic Location) (Details) - USD ($) $ in Thousands		12 Months Ended
		Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Revenue		$ 433,895	$ 343,199	$ 261,701
United States [Member]
Segment Reporting Information [Line Items]
Revenue		233,945	187,704	145,453
Israel [Member]
Segment Reporting Information [Line Items]
Revenue		7,827	6,909	7,282
United Kingdom [Member]
Segment Reporting Information [Line Items]
Revenue		36,146	26,652	24,837
Europe, the Middle East and Africa [Member]
Segment Reporting Information [Line Items]
Revenue	[1]	85,757	78,525	49,659
Other [Member]
Segment Reporting Information [Line Items]
Revenue		$ 70,220	$ 43,409	$ 34,470

[1]	Excluding United Kingdom and Israel

SEGMENTS, CUSTOMERS AND GEOGR_5

SEGMENTS, CUSTOMERS AND GEOGRAPHIC INFORMATION (Schedule of Long-Lived Assets by Geographic Location) (Details) - USD ($) $ in Thousands		Dec. 31, 2019	Dec. 31, 2018
Segment Reporting Information [Line Items]
Long lived assets		$ 16,472	$ 15,120
United States [Member]
Segment Reporting Information [Line Items]
Long lived assets		3,810	4,502
Israel [Member]
Segment Reporting Information [Line Items]
Long lived assets		11,441	9,161
United Kingdom [Member]
Segment Reporting Information [Line Items]
Long lived assets		801	944
Europe, the Middle East and Africa [Member]
Segment Reporting Information [Line Items]
Long lived assets	[1]	84	126
Other [Member]
Segment Reporting Information [Line Items]
Long lived assets		$ 336	$ 387

[1]	Excluding United Kingdom and Israel