Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

15.Income taxes

The Company's effective tax rate from continuing operations was 39.2% and 18.9% for the six months ended June 30, 2022 and 2021, respectively. The Company’s effective tax rate for the six months ended June 30, 2022 is higher than the U.S. federal statutory tax rate due to nondeductible stock-based compensation, the Company’s mix of earnings between various taxing jurisdictions, partially offset by a deduction for foreign-sourced revenue, stock compensation, and federal and state research credits. The effective income tax rate for the six months ended June 30, 2021 was lower than the U.S federal statutory tax rate primarily due to higher projected annual profits which resulted in a lower projected tax rate.

Realization of the Company's deferred tax assets is dependent primarily on the generation of future taxable income. In considering the need for a valuation allowance, the Company considers its historical, as well as future projected, taxable income along with other objectively verifiable evidence. Objectively verifiable evidence includes the Company's realization of tax attributes, assessment of tax credits, and utilization of net operating loss carryforwards during the year.