v3.25.1
Income Taxes (Tables)
 12 Months Ended
Dec. 31, 2024
Income Tax Disclosure [Abstract]  
Schedule of Income (Loss) before Income Tax, Domestic and Foreign
Income before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands):
202420232022
United States$357,484$134,509$191,353 
Foreign24,02022,5524,885
Total$381,504$157,061$196,238
Schedule of Significant Components of the Provision (Benefit) for Income Taxes
Significant components of the provision (benefit) for income taxes were as follows for the years ended December 31 (in thousands):
202420232022
Current:
Federal$60,924$33,084$10,804 
State18,29810,37110,118
Foreign3,3882,8042,892 
Total current82,61046,25923,814
Deferred:
Federal(63,073)(60,673)26,180 
State(20,838)(9,172)(2,015)
Foreign(1,815)89 (2,146)
Total deferred(85,726)(69,756)22,019 
Tax impact of unrecorded tax benefits liability7,5864,7753,475 
Provision for (benefit from) income taxes$4,470 $(18,722)$49,308 
Schedule of Reconciliation of the company's Effective Income Tax Rate to the Federal Statutory Rate
A reconciliation of our effective income tax rate to the federal statutory rate follows for the years ended December 31 (in thousands):
202420232022
Federal income tax at the statutory rate$80,120 $32,983 $41,224 
Excess stock-based compensation benefit(83,748)(106,522)(4,616)
Executive compensation limitation51,858 77,350 5,784 
R&D credits(36,571)(26,204)(13,340)
Nontaxable gain on investments(19,727)— — 
Change in unrecognized tax benefits7,356 4,351 3,215 
Other permanent differences
5,176 1,201 1,118 
Global intangible low-taxed income3,081 1,890 653 
Foreign derived intangible income deduction(2,558)(961)(2,597)
Foreign tax credit(1,914)(1,922)— 
State income taxes, net of federal benefit1,713 3,730 7,915 
Change in valuation allowance(903)(4,695)10,216 
Tax effects of intercompany transactions(222)(2,033)(417)
Difference between statutory and foreign tax rates801 1,013 (428)
Other8 1,097 581 
Provision for (benefit from) income taxes$4,470 $(18,722)$49,308 
Effective tax rate1.2 %(11.9)%25.1 %
Schedule of Components of Deferred Income Tax Assets and Liabilities
Significant components of our deferred income tax assets and liabilities are as follows at December 31, 2024 and December 31, 2023 (in thousands):
20242023
Deferred income tax assets:
R&D capitalization, net$193,265 $99,746 
Deferred revenue66,948 59,443 
Stock-based compensation51,088 10,544 
Convertible debt, net31,603 39,649 
Reserves, accruals, and other21,634 12,264 
R&D tax credit carryforward19,100 16,554 
Net operating loss carryforward17,824 2,115 
Accrued bonus12,101 11,253 
Lease liability11,966 9,664 
Inventory reserve5,794 1,986 
Deferred compensation4,021 2,803 
Strategic investments— 6,109 
Amortization— 4,425 
Total gross deferred tax assets435,344 276,555 
Valuation allowance(23,054)(21,600)
Total deferred income tax assets, net of valuation allowance412,290 254,955 
Deferred income tax liabilities:
Strategic investments(42,260)— 
Amortization(36,185)— 
Depreciation(16,739)(14,575)
Right of use asset(10,639)(8,404)
Prepaid expenses(2,874)(2,223)
Customer contract asset(1,174)(690)
Goodwill amortization(509)(314)
Other — (965)
Total deferred income tax liabilities(110,380)(27,171)
Net deferred income tax assets$301,910 $227,784 
Deferred taxes are reflected in the consolidated balance sheet as follows:
Non-current tax assets (included in deferred tax asset, net)304,282 227,784 
Non-current tax liabilities (included in other long-term liabilities)(2,372)— 
Total$301,910 $227,784 
Schedule of Valuation Allowance
The following table presents the valuation allowance activity for years ended December 31, 2024, 2023 and 2022 (in thousands):
202420232022
Balance, beginning of period$21,600$26,368$16,168
Tax provision (benefit) (576)(4,262)10,409 
Deductions charged to tax provision / benefit(327)(505)(164)
Additions (reversals) to other accounts
2,357(1)(45)
Balance, end of period$23,054$21,600$26,368
Schedule of Roll forward of Liability for Unrecognized Tax Benefits exclusive of Accrued Interest
The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31 (in thousands):
202420232022
Balance, beginning of period$25,754$21,492$18,249
Increase (decrease) in previous year tax positions501 (215)232
Increase in current year tax positions7,3136,9633,343
Decrease due to lapse of statute of limitations(842)(2,486)(332)
Balance, end of period$32,726$25,754$21,492