Income Taxes (Tables)
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12 Months Ended |
Dec. 31, 2022 |
Income Tax Disclosure [Abstract] |
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Schedule of Income before Income Tax, Domestic and Foreign |
The geographical breakdown of income (loss) before income taxes is as follows (in thousands): | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2022 | | 2021 | | 2020 | Domestic income | $ | 52,231 | | | $ | 29,088 | | | $ | 15,455 | | Foreign income | 485 | | | 2,554 | | | 3,684 | | Income before income taxes | $ | 52,716 | | | $ | 31,642 | | | $ | 19,139 | | | | | | | |
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Schedule of Components of Income Tax Expense (Benefit) |
The provision for (benefit from) income taxes consisted of the following (in thousands): | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2022 | | 2021 | | 2020 | Current provision for income taxes: | | | | | | State | $ | 1,107 | | | $ | 18 | | | $ | 40 | | Foreign | 1,917 | | | 1,565 | | | 1,057 | | Total current | 3,024 | | | 1,583 | | | 1,097 | | Deferred tax expense (benefit): | | | | | | Federal | 2,206 | | | (58,103) | | | 2 | | State | 656 | | | (6,880) | | | — | | Foreign | (78) | | | 155 | | | 224 | | Total deferred | 2,784 | | | (64,828) | | | 226 | | Provision for (benefit from) income taxes | $ | 5,808 | | | $ | (63,245) | | | $ | 1,323 | | | | | | | |
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Schedule of Effective Income Tax Rate Reconciliation |
The reconciliation of the statutory federal income taxes and the provision for (benefit from) income taxes is as follows (in thousands, except percentages): | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2022 | | 2021 | | 2020 | | Amount | | Percentage | | Amount | | Percentage | | Amount | | Percentage | Tax at statutory rate | $ | 11,070 | | | 21.0 | % | | $ | 6,645 | | | 21.0 | % | | $ | 4,019 | | | 21.0 | % | State tax - net of federal benefits | 1,531 | | | 2.9 | | | (6,866) | | | (21.7) | | | 31 | | | 0.2 | | Foreign rate differential | 1,737 | | | 3.3 | | | 1,184 | | | 3.7 | | | 507 | | | 2.6 | | Changes in federal valuation allowance | — | | | — | | | (63,153) | | | (199.6) | | | (3,281) | | | (17.1) | | | | | | | | | | | | | | Stock-based compensation | (1,992) | | | (3.8) | | | (908) | | | (2.9) | | | 781 | | | 4.1 | | Non-deductible meals and entertainment expenses | 252 | | | 0.5 | | | 67 | | | 0.2 | | | 219 | | | 1.2 | | Other permanent items | 73 | | | 0.1 | | | 653 | | | 2.1 | | | 364 | | | 1.9 | | Federal tax credits - net of uncertain tax positions | (3,844) | | | (7.3) | | | (480) | | | (1.5) | | | (1,035) | | | (5.4) | | | | | | | | | | | | | | Amended return true-up | (4,176) | | | (7.9) | | | — | | | — | | | — | | | — | | Other | 1,157 | | | 2.2 | | | (387) | | | (1.2) | | | (282) | | | (1.5) | | | $ | 5,808 | | | 11.0 | % | | $ | (63,245) | | | (199.9) | % | | $ | 1,323 | | | 7.0 | % |
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Schedule of Deferred Tax Assets and Liabilities |
Deferred tax balances are comprised of the following (in thousands): | | | | | | | | | | | | | December 31, 2022 | | December 31, 2021 | Deferred tax assets: | | | | Net operating loss carryforwards | $ | 11,954 | | | $ | 35,395 | | Research and development credits, net of uncertain tax positions | 32,837 | | | 28,867 | | Accruals, reserves and other | 22,041 | | | 14,239 | | Stock-based compensation | 1,912 | | | 2,389 | | Depreciation and amortization | 229 | | | 1,353 | | Operating lease liability | 4,459 | | | 5,400 | | Capitalized R&D expenses | 12,075 | | | — | | | | | | Gross deferred tax assets | 85,507 | | | 87,643 | | Valuation allowance | (15,581) | | | (13,750) | | Total deferred tax assets | 69,926 | | | 73,893 | | Deferred tax liabilities: | | | | Deferred contract acquisition costs | (2,341) | | | (2,787) | | Operating lease right-of-use asset | (4,336) | | | (5,303) | | Other | (66) | | | (30) | | Total deferred tax liabilities | (6,743) | | | (8,120) | | Net deferred tax assets | $ | 63,183 | | | $ | 65,773 | | | | | |
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Summary of Income Tax Contingencies |
The activity related to the unrecognized tax benefits is as follows (in thousands): | | | | | | | | | | | | | | | | | | | Years Ended December 31, | | 2022 | | 2021 | | 2020 | Gross unrecognized tax benefits—beginning balance | $ | 6,841 | | | $ | 4,585 | | | $ | 4,441 | | Increases (decreases) related to tax positions from prior years | (226) | | | 1,793 | | | (268) | | Increases related to tax positions taken during current year | 462 | | | 463 | | | 412 | | Decreases related to tax positions taken during the current year | — | | | — | | | — | | Gross unrecognized tax benefits—ending balance | $ | 7,077 | | | $ | 6,841 | | | $ | 4,585 | | | | | | | |
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