Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income Taxes

Schedule of components of (loss) income before income taxes

The components of (loss) income before income taxes for the years ended December 31, 2011, 2012, and 2013 are as follows (in thousands):

	2011			2012			2013
Domestic	$	(683	)	$	3,959		$	8,237
Foreign		(1,738	)		(441	)		(2,264	)
(Loss)income before income tax provision	$	(2,421	)	$	3,518		$	5,973

Schedule of provision for income tax expense

The provision for income tax expense for the years ended December 31, 2011, 2012 and 2013 consists of the following components (in thousands):

	2011		2012			2013
State	$	229	$	330		$	119
Foreign		—		(33	)		492
Total current expense		229		297			611
Deferred tax provision:
Federal	$	282	$	458		$	737
State		23		40			273
Foreign		—		(315	)		(610	)
Total deferred expense		305		183			400
Total income tax provision	$	534	$	480		$	1,011

Schedule of income taxes related to the Company's income (loss) from operations and the amount computed using the federal statutory income tax rate

	Years Ended December 31,
	2011			2012			2013
Tax (benefit) provision computed at the federal statutory rate	$	(847	)	$	1,231		$	2,090
Increase in fair value of warrants for redeemable convertible preferred stock		699			—			—
Foreign operating losses		174			—			—
Foreign tax rate differential		—			(127	)		(3	)
Tax benefit of exercised stock options and warrants		(3,375	)		(9,996	)		(1,423	)
Research and development tax credits		(507	)		(205	)		51
Adjustment to prior year deferred and other		449			(1,439	)		227
Change in valuation allowance		3,407			10,302			(1,008	)
Taxable goodwill		305			499			737
State income taxes		229			215			340
Provision for income taxes	$	534		$	480		$	1,011

Schedule of the Company's deferred tax assets (liabilities)

As of December 31, 2012 and 2013, the Company's deferred tax assets (liabilities) were as follows (in thousands):

	2012			2013
Deferred tax assets:
Net operating losses	$	26,002		$	19,675
Unused research and development credits		3,318			3,450
Deferred revenue		743			885
Stock-based compensation		2,937			4,235
Accrued expenses		441			570
Deferred rent		198			149
Fixed Assets		108			276
Acquisition-related expenses		61			68
Allowance for doubtful accounts		194			79
Alternative Minimum Tax credit available		34			34
Other		85			166
Less: valuation allowance		(29,048	)		(25,930	)
	$	5,073		$	3,657
Deferred tax liabilities:
Intangible assets		(7,676	)		(6,727	)
Fixed assets		—			—
Other		(102	)		(22	)
Net deferred tax liability	$	(2,705	)	$	(3,092	)