Income Taxes (Tables)

12 Months Ended

Dec. 31, 2013

Income before Income Tax, Domestic and Foreign

The components of the Company’s loss before provision (benefit) for income taxes are as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
United States	$	(36,821	)	$	(20,173	)	$	(60,300	)
Foreign	(3,733		)	(12,006		)	(3,419		)
Loss before provision for income taxes	$	(40,554	)	$	(32,179	)	$	(63,719	)

Components of Income Tax Expense (Benefit)

The components of the provision (benefit) for income taxes attributable to continuing operations are as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
Current income tax provision:
Federal	$	—		$	—		$	—
State	117			—			—
Foreign	620			176			181
Total current income tax provision	737			176			181
Deferred income tax benefit:
Federal	—			—			—
State	—			—			—
Foreign	(865		)	(965		)	—
Total deferred income tax benefit	(865		)	(965		)	—
Total income tax (benefit) provision	$	(128	)	$	(789	)	$	181

Effective Income Tax Rate Reconciliation

The differences in the total provision for income taxes that would result from applying the 34% federal statutory rate to loss before provision for income taxes and the reported provision for income taxes are as follows (in thousands):



	Years Ended December 31,
	2013			2012			2011
U.S. Federal tax benefit at statutory rates	$	(13,784	)	$	(10,941	)	$	(21,688	)
State income taxes, net of federal tax benefit	(415		)	(60		)	(916		)
Foreign rate differential	1,354			1,008			219
Preferred stock warrant charges	—			—			14,470
Stock based compensation	2,039			1,360			474
Other permanent differences	410			654			188
Other	76			(194		)	206
Valuation allowance	10,192			7,384			7,228
Total income tax (benefit) provision	$	(128	)	$	(789	)	$	181

Deferred Tax Assets and Liabilities

Major components of the Company’s deferred tax assets (liabilities) at December 31, 2013 and 2012 are as follows (in thousands):



	December 31,
	2013			2012
Deferred tax assets:
Accrued expenses	$	2,029		$	1,306
Long-lived intangible assets — basis difference	7,846			5,155
Net operating loss carryforwards	33,823			24,392
Stock-based compensation	4,818			2,671
Deferred revenue	1,905			2,375
Convertible note hedge	16,705			—
Other	452			274
Total deferred tax assets	67,578			36,173
Valuation allowance	(48,558		)	(34,081		)
Deferred tax assets, net of valuation allowance	19,020			2,092
Deferred tax liabilities:
Prepaid expenses and deferred commissions	(3,613		)	(2,029		)
Long-lived fixed assets — basis difference	(2,136		)	(805		)
Convertible note discount	(13,028		)	—
Other	(120		)	—
Total deferred tax liabilities	(18,897		)	(2,834		)
Net deferred tax assets (liabilities)	$	123		$	(742	)

Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits for the years ended December 31, 2013, 2012, and 2011 is as follows (in thousands):



	Years Ended December 31,
	2013		2012		2011
Balance at January 1	$	276	$	276	$	276
Additions for tax positions related to the current year	—		—		—
Balance at December 31	$	276	$	276	$	276