Income Taxes (Tables)
|
12 Months Ended |
Dec. 31, 2024 |
|---|
| Income Tax Disclosure [Abstract] |
|
| Schedule of Income (Loss) Before Provision for Income Taxes |
Income (loss) before provision for income taxes was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
United States |
|
$ |
(34,540 |
) |
|
$ |
(211,528 |
) |
|
$ |
(118,213 |
) |
Foreign |
|
|
63,217 |
|
|
|
60,953 |
|
|
|
19,760 |
|
Total |
|
$ |
28,677 |
|
|
$ |
(150,575 |
) |
|
$ |
(98,453 |
) |
|
| Components of Income Tax Provision |
The provision for income taxes consists of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Current income tax provision |
|
|
|
|
|
|
|
|
|
Federal |
|
$ |
(7,631 |
) |
|
$ |
(1,162 |
) |
|
$ |
(1,002 |
) |
State |
|
|
(1,640 |
) |
|
|
(803 |
) |
|
|
(1,399 |
) |
Foreign |
|
|
(12,088 |
) |
|
|
(11,420 |
) |
|
|
(7,778 |
) |
Total current income tax provision |
|
|
(21,359 |
) |
|
$ |
(13,385 |
) |
|
$ |
(10,179 |
) |
Deferred income tax (expense) benefit |
|
|
|
|
|
|
|
|
|
Federal |
|
|
(337 |
) |
|
|
— |
|
|
|
— |
|
State |
|
|
(47 |
) |
|
|
— |
|
|
|
— |
|
Foreign |
|
|
(2,306 |
) |
|
|
(550 |
) |
|
|
1,285 |
|
Total deferred income tax (expense) benefit |
|
|
(2,690 |
) |
|
|
(550 |
) |
|
$ |
1,285 |
|
Total income tax provision |
|
$ |
(24,049 |
) |
|
$ |
(13,935 |
) |
|
$ |
(8,894 |
) |
|
| Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes |
The following reconciles the differences between income taxes computed at the federal statutory rate of 21% for 2024, 2023 and 2022 and the provision for income taxes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Expected income tax (expense) benefit at the federal statutory rate |
|
$ |
(6,123 |
) |
|
$ |
37,845 |
|
|
$ |
21,029 |
|
State taxes net of federal benefit |
|
|
732 |
|
|
|
9,131 |
|
|
|
5,047 |
|
Stock-based compensation |
|
|
31,010 |
|
|
|
7,741 |
|
|
|
4,414 |
|
Executive compensation limitation |
|
|
(10,511 |
) |
|
|
(4,151 |
) |
|
|
(5,179 |
) |
Difference in foreign tax rates |
|
|
(2,499 |
) |
|
|
(2,614 |
) |
|
|
290 |
|
Non-deductible acquisition costs |
|
|
(1,447 |
) |
|
|
— |
|
|
|
— |
|
U.S. tax credits |
|
|
63,124 |
|
|
|
45,274 |
|
|
|
15,561 |
|
Foreign withholding taxes |
|
|
(2,044 |
) |
|
|
(1,449 |
) |
|
|
(1,268 |
) |
Change in valuation allowance |
|
|
(99,229 |
) |
|
|
(105,181 |
) |
|
|
(47,552 |
) |
Non research and development tax reserves |
|
|
(4,276 |
) |
|
|
— |
|
|
|
— |
|
Foreign derived intangible income |
|
|
4,872 |
|
|
|
— |
|
|
|
— |
|
Other U.S. and foreign permanent differences |
|
|
2,342 |
|
|
|
(531 |
) |
|
|
(1,236 |
) |
Income tax provision |
|
$ |
(24,049 |
) |
|
$ |
(13,935 |
) |
|
$ |
(8,894 |
) |
|
| Components of the Company's Deferred Tax Assets and Liabilities |
Significant components of the Company’s deferred tax assets and liabilities were as follows:
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
|
(in thousands) |
|
Deferred tax assets: |
|
|
|
|
|
|
Net operating loss carryforwards |
|
$ |
178,424 |
|
|
$ |
227,731 |
|
Research and investment credits |
|
|
181,411 |
|
|
|
125,424 |
|
Accruals and reserves |
|
|
25,148 |
|
|
|
19,157 |
|
Lease liability |
|
|
54,028 |
|
|
|
63,164 |
|
Depreciation |
|
|
552 |
|
|
|
688 |
|
Capitalized software development |
|
|
277,932 |
|
|
|
177,792 |
|
Stock-based compensation |
|
|
23,145 |
|
|
|
20,283 |
|
Total deferred tax assets |
|
|
740,640 |
|
|
|
634,239 |
|
Deferred tax liabilities: |
|
|
|
|
|
|
Intangible assets |
|
|
(6,635 |
) |
|
|
(8,185 |
) |
Convertible debt |
|
|
(56 |
) |
|
|
(52 |
) |
Capitalized costs |
|
|
(51,150 |
) |
|
|
(35,799 |
) |
Right of use and other assets |
|
|
(46,317 |
) |
|
|
(51,017 |
) |
Depreciation |
|
|
(1,276 |
) |
|
|
(2,608 |
) |
Total deferred tax liabilities |
|
|
(105,434 |
) |
|
|
(97,661 |
) |
Valuation allowance |
|
|
(637,609 |
) |
|
|
(536,311 |
) |
Net deferred tax (liabilities) assets |
|
$ |
(2,403 |
) |
|
$ |
267 |
|
|
| Summary of Activity Related to Unrecognized Tax Benefits |
The following summarizes activity related to unrecognized tax benefits:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December 31, |
|
|
|
2024 |
|
|
2023 |
|
|
2022 |
|
|
|
(in thousands) |
|
Unrecognized benefit—beginning of the year |
|
$ |
20,469 |
|
|
$ |
16,888 |
|
|
$ |
12,823 |
|
Gross increases—current period positions |
|
|
13,974 |
|
|
|
8,071 |
|
|
|
4,065 |
|
Gross increases—current period business acquisitions |
|
|
— |
|
|
|
1,381 |
|
|
|
— |
|
Gross increase (decrease)—prior period positions |
|
|
3,884 |
|
|
|
(5,871 |
) |
|
|
— |
|
Unrecognized benefit—end of period |
|
$ |
38,327 |
|
|
$ |
20,469 |
|
|
$ |
16,888 |
|
|