Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The Company’s geographical breakdown of income before income taxes is as follows:

	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Domestic	$	164,958	$	122,013	$	80,472
Foreign	13,693		11,687		8,925
Income before income taxes	$	178,651	$	133,700	$	89,397

Schedule of Components of Income Tax Expense (Benefit)

Income tax provision consists of the following:

	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Current
Federal	$	32,405	$	35,286	$	20,135
State	6,061		6,269		4,324
Foreign	5,218		4,606		3,701
Current income tax provision	43,684		46,161		28,160
Deferred
Federal	(13,584)		(17,097)		(7,342)
State	(2,009)		(3,055)		(1,722)
Foreign	(1,035)		(301)		(659)
Deferred income tax benefit	(16,628)		(20,453)		(9,723)
Income tax provision	$	27,056	$	25,708	$	18,437

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation of the statutory federal income tax rate to the Company’s effective tax rate is as follows:

	Year Ended December 31,
	2023		2022		2021
Federal statutory rate	21.0	%	21.0	%	21.0	%
State taxes	2.6		2.3		3.1
Stock-based compensation	2.7		3.4		10.3
Excess tax benefits related to stock-based compensation	(2.9)		(5.2)		(5.4)
Foreign source income	0.3		3.8		0.4
Change in valuation allowance	0.1		0.3		0.2
Foreign-derived intangible income deduction	(4.4)		(4.9)		(7.0)
Federal and state research and development credit	(1.4)		(1.3)		(1.9)
Accrual to return adjustments and Other	(2.9)		(0.2)		(0.1)
Income tax provision	15.1	%	19.2	%	20.6	%

Schedule of Deferred Tax Assets and Liabilities

The components of the Company’s deferred tax assets and liabilities are as follows:

	December 31,
	2023		2022
	(in thousands)
Deferred tax assets
Research and development credit carryforwards	$	11,502	$	10,957
Fixed assets	581		—
Accrued liabilities	3,020		3,677
Deferred revenues	3,381		5,766
Operating lease liabilities	7,722		10,667
Intangible assets	3,549		3,465
Stock-based compensation	4,263		4,691
Capitalized research and development	47,793		30,234
Other	2,999		2,195
Gross deferred tax assets	84,810		71,652
Valuation allowance	(12,375)		(12,476)
Total deferred tax assets	72,435		59,176
Deferred tax liabilities
Fixed assets	—		(1,745)
Operating leases - right of use asset	(5,999)		(8,359)
Deferred commissions	(3,675)		(3,660)
Total deferred tax liabilities	(9,674)		(13,764)
Net deferred tax assets	$	62,761	$	45,412

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s unrecognized tax benefits:

	Year Ended December 31,
	2023		2022		2021
	(in thousands)
Unrecognized tax benefits beginning balance	$	10,542	$	9,676	$	8,855
Gross increase for tax positions of prior years	262		89		—
Gross decrease for tax positions of prior years	—		—		(25)
Gross increase for tax positions of current year	1,127		777		846
Lapse of statute of limitations	(33)		—		—
Total unrecognized tax benefits	$	11,898	$	10,542	$	9,676