Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2020 |
Income Tax Disclosure [Abstract] |
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Schedule of Income (Loss) Before Income Taxes |
For the years ended December 31, 2020, 2019, and 2018, our loss before income taxes was comprised of the following (in thousands):
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2020 | | 2019 | | 2018 | Domestic | $ | (25,463) | | | $ | (32,091) | | | $ | (30,663) | | Foreign | (7,131) | | | (17,803) | | | (18,549) | | Total | $ | (32,594) | | | $ | (49,894) | | | $ | (49,212) | |
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Schedule of Components of Income Tax Expense (Benefit) |
For the years ended December 31, 2020, 2019, and 2018, our income tax expense (benefit) was comprised of the following (in thousands):
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2020 | | 2019 | | 2018 | Current: | | | | | | Federal | $ | 11 | | | $ | 3 | | | $ | — | | State | 79 | | | 60 | | | 25 | | Foreign | 977 | | | 1,091 | | | 432 | | Total current expense | 1,067 | | | 1,154 | | | 457 | | Deferred: | | | | | | Federal | — | | | — | | | — | | State | — | | | — | | | — | | Foreign | (184) | | | (334) | | | (218) | | Total deferred benefit | (184) | | | (334) | | | (218) | | Total income tax expense | $ | 883 | | | $ | 820 | | | $ | 239 | |
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Schedule of Reconciliation of Statutory to Effective Income Tax Rate |
For the years ended December 31, 2020, 2019, and 2018, the provision for income taxes differs from the amount computed by applying the federal statutory income tax rates to our loss before the provision (benefit) for income taxes as follows:
| | | | | | | | | | | | | | | | | | | Year Ended December 31, | | 2020 | | 2019 | | 2018 | U.S. federal statutory tax rate | 21.0 | % | | 21.0 | % | | 21.0 | % | State tax expense | 18.2 | | | 7.1 | | | 7.2 | | Foreign rate differential | (3.6) | | | (5.1) | | | (5.1) | | Nondeductible expenses | (0.6) | | | (0.7) | | | (0.7) | | Equity compensation | 46.2 | | | 12.0 | | | 9.5 | | Tax credits | 12.0 | | | 6.5 | | | 3.9 | | Unrecognized tax benefits | (2.2) | | | (1.1) | | | (0.8) | | Other | (1.1) | | | (0.8) | | | 0.6 | | Remeasurement of deferred taxes | (1.7) | | | (1.6) | | | — | | Change in valuation allowance | (90.9) | | | (38.9) | | | (36.0) | | Total | (2.7) | % | | (1.6) | % | | (0.4) | % |
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Schedule of Deferred Tax Assets and Liabilities |
As of December 31, 2020 and 2019, significant components of our deferred tax assets and liabilities were as follows (in thousands): | | | | | | | | | | | | | As of December 31, | | 2020 | | 2019 | Deferred tax assets: | | | | Net operating losses | $ | 59,417 | | | $ | 34,875 | | Tax credits | 11,922 | | | 8,648 | | Deferred revenue | 824 | | | 1,291 | | Equity compensation | 3,090 | | | 1,668 | | Lease liabilities | 15,768 | | | 13,066 | | Accrued vacation | 339 | | | 409 | | Bad debt | 383 | | | 164 | | Other | 1,234 | | | 260 | | Gross deferred tax assets | 92,977 | | | 60,381 | | Less: Valuation allowance | (65,914) | | | (35,607) | | Total deferred tax assets | 27,063 | | | 24,774 | | Deferred tax liabilities: | | | | Prepaid expenses | (11,082) | | | (9,562) | | Right-of-use assets | (8,270) | | | (6,488) | | Unbilled receivables | (2,559) | | | (3,849) | | Depreciation | (4,221) | | | (4,377) | | Other | (512) | | | (42) | | Total deferred tax liabilities | (26,644) | | | (24,318) | | Net deferred tax asset | $ | 419 | | | $ | 456 | |
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Summary of Income Tax Contingencies |
The following table summarizes the activity related to our unrecognized tax benefit from January 1, 2018 to December 31, 2020 (in thousands): | | | | | | Balance as of December 31, 2017 | $ | 651 | | Additions for tax positions in current years | 388 | | Additions for tax positions in prior years | — | | Reductions due to lapse in statutes of limitations | — | | Settlements | — | | Balance as of December 31, 2018 | 1,039 | | Additions for tax positions in current years | 536 | | Additions for tax positions in prior years | — | | Reductions due to lapse in statutes of limitations | — | | Settlements | — | | Balance as of December 31, 2019 | 1,575 | | Additions for tax positions in current years | 702 | | Additions for tax positions in prior years | — | | Reductions due to lapse in statutes of limitations | — | | Settlements | — | | Balance as of December 31, 2020 | $ | 2,277 | |
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