Income Taxes

6 Months Ended

Jun. 30, 2022

Income Tax Disclosure [Abstract]

Income Taxes

8. Income Taxes

The Company’s (benefit from) provision for income taxes was ($4,020) and $3,182 for the three months ended June 30, 2022 and 2021, respectively. The change in the (benefit from) provision for income taxes was primarily due to an increase in the Company's year-to-date and expected losses as well as the changes to the jurisdictional mix of earnings.

The Company's effective tax rate was (14.7%) and 68.35% for the six months ended June 30, 2022 and 2021, respectively. The (benefit from) provision for income taxes was $6,332 and $5,508 for the six months ended June 30, 2022 and 2021, respectively. The change in the (benefit from) provision for income taxes was primarily due to the new requirement to capitalize and amortize all research and experimentation expenditures for U.S. tax purposes, which became effective under the Tax Cuts and Jobs Act (“TCJA”) as of January 1, 2022. This new requirement results in significant forecasted U.S. current income tax for the year and the corresponding deferred tax asset created is offset by a full valuation allowance. The increase in the year-to-date provision for income taxes was partially offset by increased losses incurred year-over-year including the impact of losses generated in the Company's foreign jurisdictions. The Company maintains a valuation allowance against its net deferred tax assets at June 30, 2022.

The (benefit from) provision for income taxes for the three and six months ended June 30, 2022 and 2021 differed from the federal statutory rate primarily due to the geographical mix of earnings and related foreign tax rate differential, permanent differences, research and development credits, foreign tax credits, the valuation allowance maintained against the Company's deferred tax assets and withholding taxes.