Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Loss Before Provision for Income Taxes

Loss before provision for income taxes was as follows:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
United States	$	(63,200	)	$	(69,769	)	$	(54,894	)
Foreign		12,427			7,809			4,855
Total	$	(50,773	)	$	(61,960	)	$	(50,039	)

Components of Income Tax (Provision) Benefit

The (provision) benefit for income taxes consists of the following:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Current income tax provision
Federal	$	(238	)	$	(184	)	$	—
State		(241	)		(140	)		(144	)
Foreign		(3,293	)		(1,508	)		(1,077	)
Total current income tax provision		(3,772	)		(1,832	)		(1,221	)
Deferred income tax benefit
Federal		160			21			10,435
State		—			—			977
Foreign		639			(57	)		134
Total deferred income tax benefit (expense)		799			(36	)		11,546
Total income tax benefit (provision)	$	(2,973	)	$	(1,868	)	$	10,325

Schedule of Differences Between Income Taxes Computed at the Federal Statutory Rate and the Provision for Income Taxes

The following reconciles the differences between income taxes computed at the federal statutory rate of 21% for 2019 and 2018 and 35% for 2017 and the provision for income taxes:

	Year Ended December 31,
	2019			2018			2017
	(in thousands)
Expected income tax benefit at the federal statutory rate	$	10,665		$	12,955		$	17,166
State taxes net of federal benefit		3,700			5,155			5,150
Stock-based compensation		16,055			17,575			10,939
Executive compensation limitation		(7,244	)		—			—
Difference in foreign tax rates		693			435			988
U.S. tax credits		24,170			1,763			1,717
Convertible debt and acquisition		—			—			11,573
Federal rate change		—			—			(49,123	)
Transition tax		—			—			(1,063	)
GILTI inclusion		(1,645	)		(1,177	)		—
Meals and entertainment		(1,208	)		(1,411	)		(745	)
Change in valuation allowance		(47,523	)		(37,059	)		13,988
Other		(636	)		(104	)		(265	)
Income tax benefit (provision)	$	(2,973	)	$	(1,868	)	$	10,325

Components of the Company's Deferred Tax Assets and Liabilities

Significant components of the Company’s deferred tax assets and liabilities were as follows:

	Year Ended December 31,
	2019			2018
	(in thousands)
Deferred tax assets:
Net operating loss carryforwards	$	142,512		$	118,897
Research and investment credits		35,285			11,154
Accruals and reserves		9,239			7,734
Depreciation		1,756			1,119
Stock-based compensation		5,451			5,404
Interest expense		3,197			2,466
Total deferred tax assets		197,440			146,774
Deferred tax liabilities:
Intangible assets		(2,678	)		(1,002	)
Convertible debt		(3,550	)		(4,675	)
Capitalized costs		(11,351	)		(8,002	)
Depreciation		(138	)		—
Total deferred tax liabilities		(17,717	)		(13,679	)
Valuation allowance		(180,092	)		(132,759	)
Net deferred tax assets	$	(369	)	$	336

Summary of Activity Related to Unrecognized Tax Benefits

The following summarizes activity related to unrecognized tax benefits:

	Year Ended December 31,
	2019			2018		2017
	(in thousands)
Unrecognized benefit—beginning of the year	$	3,925		$	2,725	$	1,742
Gross increases—current period positions		2,387			1,200		983
Gross decrease—prior period positions		(867	)		—		—
Unrecognized benefit—end of period	$	5,445		$	3,925	$	2,725