Income Taxes (Tables)

9 Months Ended

12 Months Ended

Sep. 30, 2021

Dec. 31, 2020

Income Taxes

Summary of income (loss) before income taxes

The domestic and foreign components of income (loss) before provision for income taxes were as follows (in thousands):

	2020		2019		2018
Domestic	$	12,837	$	(29,247)	$	(65,466)
Foreign		(740)		(8,030)		(12,138)
Total income (loss) before income taxes	$	12,097	$	(37,277)	$	(77,604)

Schedule of provision (benefit) for income taxes

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Income tax benefit	(353)		(12)		(5,011)		(797)
Effective tax rate	9.0	%	0.6	%	24.2	%	3.6	%

The provision (benefit) for income taxes consisted of the following (in thousands):

	Year Ended December 31,
	2020		2019		2018
Current (benefit) / provision
Federal	$	(16)	$	(7)	$	(1)
State		188		20		(1)
Foreign		657		(370)		1,024
Total current (benefit) / provision		829	$	(357)	$	1,022
Deferred (benefit) / provision
Federal	$	7	$	1	$	1
State		4		7		2
Foreign		101		(9)		(123)
Total deferred (benefit) / provision		112	$	(1)	$	(120)
Total (benefit) / provision
Federal	$	(9)	$	(6)	$	—
State		192		27		1
Foreign		758		(379)		901
Total (benefit) / provision	$	941	$	(358)	$	902

Summary of reconciliation of the U.S. statutory income tax rate to the Company's effective tax rate

A reconciliation of the U.S. federal statutory income tax rate of 21% for the years ended December 31, 2020, 2019 and 2018 to the Company’s effective tax rate is as follows (in thousands):

	Year Ended December 31,
	2020		2019		2018
Income tax provision (benefit) at the U.S. federal statutory rate	$	2,540	$	(7,828)	$	(16,297)
State income taxes		323		(543)		(1,434)
Permanent differences		(53)		521		637
Change in valuation allowance		(3,720)		6,258		18,816
Effect of foreign operations		325		373		584
Stock-based compensation		198		478		649
Effect of change in tax rates		(253)		(320)		9
Sale of foreign subsidiary		1,323		—		—
Foreign investment basis differences		190		49		(218)
Research & development tax credits		(253)		(922)		(1,786)
Foreign currency translation & transactions		144		33		88
Prior period adjustments		230		1,210		—
Other		(53)		333		(146)
Total provision (benefit) for income taxes	$	941	$	(358)	$	902

Summary of tax effects of temporary differences that give rise to the deferred tax assets and deferred tax liabilities

Significant components of deferred tax assets and liabilities as of were as follows (in thousands):

	Years Ended December 31,
	2020		2019
Deferred tax assets
Net operating loss carryforwards	$	79,475	$	83,120
Accruals		2,879		1,464
Stock-based compensation		2,841		2,853
Bad debt		262		168
Deferred rent		5,043		5,412
Other		1,185		1,532
Total deferred tax asset	$	91,685	$	94,549
Valuation allowance		(83,978)		(87,698)
Net deferred tax asset	$	7,707	$	6,851
Deferred tax liabilities
Deferred state income tax		(2,087)		(2,158)
Depreciation and amortization		(1,720)		(835)
Intangible assets		(3,905)		(3,751)
Total deferred tax liability	$	(7,712)	$	(6,744)
Net deferred tax asset (liability)	$	(5)	$	107

Schedule of income tax examinations

	Year
United States	2016
United Kingdom	2019