Income Taxes (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Components of Net Income from Continuing Operations Before Income Taxes

Income Tax Provision. The components of net income before income taxes are as follows (in thousands):

	2024			2023			2022
Domestic	$	89,166		$	72,769		$	53,251
Australia		(5,722	)		854			(5,851	)
India		12,537			10,008			9,517
Ireland		(297	)		(236	)		(3,391	)
United Kingdom		7,105			2,029			2,533
Foreign other		9,483			6,927			4,722
Total	$	112,272		$	92,351		$	60,781

Schedule of Components of Income Tax Expense (Benefit)

The income tax provision consists of the following (in thousands):

	2024			2023			2022
Current:
Federal	$	28,602		$	34,438		$	30,012
State		6,483			8,230			6,517
Australia		(474	)		(333	)		55
India		2,977			3,601			4,370
Ireland		548			336			273
United Kingdom		867			1,002			349
Foreign other		2,920			2,391			2,772
		41,923			49,665			44,348
Deferred:
Federal		(2,596	)		(19,687	)		(21,962	)
State		(10,741	)		(1,982	)		(3,073	)
Australia		(1,629	)		(896	)		(890	)
India		655			(1,231	)		(1,388	)
Ireland		(223	)		(205	)		(341	)
United Kingdom		(2,774	)		(233	)		469
Foreign other		805			674			(442	)
		(16,503	)		(23,560	)		(27,627	)
Total income tax provision	$	25,420		$	26,105		$	16,721

Schedule of Effective Income Tax Rate Reconciliation

The difference between our income tax provision computed at the statutory Federal income tax rate and our financial statement income tax provision is summarized as follows (in thousands):

	2024			2023			2022
Provision at Federal rate of 21%	$	23,577		$	19,394		$	12,764
State income taxes, net of Federal impact		2,526			4,485			2,079
Research and experimentation credits		(1,601	)		(1,053	)		(1,560	)
Stock award vesting		159			(554	)		(1,355	)
Tax uncertainties		(323	)		(289	)		(227	)
Section 162(m) compensation limitation		2,389			2,955			2,326
Foreign rate differential		1,229			987			571
Valuation allowance for deferred tax assets		(2,599	)		(1,655	)		638
Withholding tax		2,701			2,728			1,948
FMLA Credit		(174	)		(112	)		(245	)
Foreign tax credit		(2,712	)		(36	)		-
Other impact of foreign operations		(131	)		256			422
Statutory rate change		(457	)		111			303
Convertible debt premium		-			-			(1,017	)
Other		836			(1,112	)		74
Total income tax provision	$	25,420		$	26,105		$	16,721

Net Deferred Income Tax Assets

Deferred Income Taxes. Net deferred income tax assets as of December 31, 2024 and 2023 are as follows (in thousands):

	2024			2023
Deferred income tax assets	$	125,057		$	109,536
Deferred income tax liabilities		(28,889	)		(25,351	)
Valuation allowance		(22,967	)		(26,453	)
Net deferred income tax assets	$	73,201		$	57,732

The Components of Net Deferred Income Tax Assets (Liabilities)

The components of our net deferred income tax assets (liabilities) as of December 31, 2024 and 2023 are as follows (in thousands):

	2024			2023
Net deferred income tax assets (liabilities):
Accrued expenses and reserves	$	9,472		$	10,907
Stock-based compensation		6,753			5,643
Software		(509	)		80
Client contracts and related intangibles		(10,419	)		(7,536	)
Goodwill		(16,638	)		(14,874	)
Net operating loss carryforwards		23,668			25,379
Property and equipment		(1,323	)		(2,941	)
Deferred revenue		6,373			6,539
Debt financing		6,010			7,396
Foreign exchange gain/loss		1,512			2,010
Operating lease right-of-use assets and lease liabilities		2,763			3,555
Research and Development		66,178			46,817
Unrecognized tax benefit		413			326
Credits and incentives		1,672			384
Other		243			500
Total net deferred income tax assets		96,168			84,185
Less: valuation allowance		(22,967	)		(26,453	)
Net deferred income tax assets	$	73,201		$	57,732

Reconciliation of Beginning and Ending Balances of Liability for Unrecognized Tax Benefits

A reconciliation of the beginning and ending balances of our liability for unrecognized tax benefits is as follows (in thousands):

	2024			2023			2022
Balance, beginning of year	$	1,858		$	2,562		$	2,929
Additions related to prior acquisitions		-			-			2
Lapse of statute of limitations		(692	)		(409	)		5
Additions for tax positions of prior years		-			100			8
Reductions for tax positions of prior years		(54	)		(395	)		(382	)
Balance, end of year	$	1,112		$	1,858		$	2,562