Income Taxes Income Taxes (Tables)

12 Months Ended

Dec. 31, 2020

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax

Income (loss) before provision for income taxes consisted of the following:

	Year Ended December 31,
	2020		2019		2018
	(In thousands)
United States	$	(104,551)	$	(103,836)	$	(79,581)
International	3,925		22,265		4,870
Total	$	(100,626)	$	(81,571)	$	(74,711)

Summary of Income Tax Expense (Benefit)

Provision for income taxes consisted of the following:

	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Current:
U.S. Federal	$	—	$	—	$	—
State	84		58		16
Foreign	438		4,524		1,425
	522		4,582		1,441
Deferred:
U.S. Federal	—		—		—
State	—		—		—
Foreign	103		(202)		(669)
	103		(202)		(669)
Total	$	625	$	4,380	$	772

Schedule of Deferred Tax Assets and Liabilities

Net deferred tax assets consisted of the following:

	As of December 31,
	2020		2019
	(In thousands)
Deferred Tax Assets:
Accruals and allowances	$	14,389	$	11,334
Net operating loss carryforwards	22,216		14,355
Stock-based compensation	3,731		3,228
Lease liabilities	7,063		8,212
Deferred revenue	3,673		4,417
Tax credit carryforwards	6,311		3,262
Depreciation and amortization	2,810		1,030
Capitalized research and development expenses	17,376		6,847
Total deferred tax assets	77,569		52,685
Deferred Tax Liabilities:
Lease assets	(5,804)		(7,450)
Total deferred tax liabilities	(5,804)		(7,450)
Valuation Allowance	(70,496)		(43,917)
Net deferred tax assets	$	1,269	$	1,318

Schedule of Valuation Allowance for Deferred Income Tax Assets

Changes in allowance for deferred tax assets were as follows:

	Year Ended December 31,
	2020		2019		2018
	(In thousands)
Balance at the beginning of the period	$	43,917	$	24,477	$	15,611
Additions	31,890		38,336		13,760
Deductions	(5,311)		(18,896)		(4,894)
Balance at the end of the period	$	70,496	$	43,917	$	24,477

Summary of Operating Loss Carryforwards

As of December 31, 2020, net operating loss carryforwards consisted of the following:

	Amount		Beginning Year of Expiration
	(in thousands)
U.S. Federal (1)	$	14,028	2031
U.S. Federal	79,073		Indefinite
California (tax effected, net of federal benefit)	981		2040
Other State (tax effected, net of federal benefit)	1,646		2024

_________________________

(1)All of the losses are subject to annual usage limitations under Internal Revenue Code Section 382.

Summary of Tax Credit Carryforwards

As of December 31, 2020, tax credit carryforwards consisted of the following:

	Amount		Beginning Year of Expiration
	(in thousands)
U.S. Federal	$	3,688	2040
California	2,565		Indefinite
Foreign	1,309		2031

Schedule of Effective Income Tax Rate Reconciliation

The effective tax rate differs from the applicable U.S. statutory federal rate as follows:

	Year Ended December 31,
	2020		2019		2018
Tax at federal statutory rate	21.0	%	21.0	%	21.0	%
State, net of federal benefit	4.4	%	3.0	%	5.9	%
Impact of international operations	0.8	%	1.4	%	0.4	%
U.S. Taxes on Foreign Entities	2.5	%	(3.6)	%	(1.8)	%
Stock-based compensation	(4.2)	%	(2.6)	%	(0.1)	%
Tax credits	1.6	%	1.6	%	1.5	%
Change in valuation allowance	(26.4)	%	(23.8)	%	(25.2)	%
Non-deductible transaction costs	(0.1)	%	(0.7)	%	(2.6)	%
Goodwill derecognition	—	%	(1.2)	%	—	%
Others	(0.2)	%	(0.5)	%	(0.1)	%
Provision for income taxes	(0.6)	%	(5.4)	%	(1.0)	%

Reconciliation of Gross Unrecognized Tax Benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits (“UTB”) is as follows:

	Federal, State, and Foreign Tax
	(In thousands)
Balance as of December 31, 2017	$	1,022
Additions based on tax positions related to the current year	338
Adjustments to Net parent investments	(1,338)
Balance as of December 31, 2018	22
Additions based on tax positions related to the current year	674
Additions for tax positions of prior years	8
Balance as of December 31, 2019	704
Additions based on tax positions related to the current year	503
Additions for tax positions of prior years	148
Balance as of December 31, 2020	$	1,355