DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

12 Months Ended

Dec. 31, 2023

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

NOTE 6:-

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

The Company records all cash flow hedging instruments on the consolidated balance sheets at fair value. The fair values of outstanding derivative instruments designated as cash flow hedging instruments were as follows:

	December 31,
	2023		2022
Prepaid expenses and other current assets	$	948	$	—
Accrued expenses and other current liabilities	$	—	$	313

As of December 31, 2023 and 2022, the notional amounts of the Company’s derivative instruments designated as cash flow hedging instruments outstanding in U.S. dollars amounted to $39,347 and $38,669, respectively.

The Company had no derivative instruments or hedging activities as of December 31, 2021.

Effect of Foreign Currency Contracts on the Consolidated Statements of loss

The effect of foreign currency contracts designated as cash flow hedge on the consolidated statements of loss, for the years ended December 31, 2023 and 2022, were as follows:

	Year ended December 31,
	2023		2022
Cost of revenues	$	155	$	450
Research and development		1,619		3,244
Sales and marketing		305		620
General and administrative		296		538
Total losses recognized in the consolidated statements of loss, net	$	2,375	$	4,852

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

Net unrealized gains (losses) of foreign currency contracts designated as cash flow hedging instruments are recorded in accumulated other comprehensive income (loss).

The changes in unrealized gains (losses) on the Company’s derivative instruments recorded in accumulated other comprehensive income (loss) were as follows:

	Year ended December 31,
	2023			2022
Unrealized losses on derivative instruments, beginning of period	$	(313	)	$	—
Changes in fair value of derivative instruments		(1,114	)		(5,165	)
Reclassification of losses recognized in the consolidated statements of loss from accumulated other comprehensive income (loss)		2,375			4,852
Unrealized gains (losses) on derivative instruments, end of period	$	948		$	(313	)

All net deferred gains in accumulated other comprehensive income (loss) as of December 31, 2023, are expected to be recognized over the next twelve months as operating expenses in the same financial statement line item in the consolidated statements of loss to which the derivative relates.