Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Schedule of Income before Income Tax, Domestic and Foreign

Loss before income tax provision (benefit) consisted of the following (in thousands):


	For the year ended December 31,
	2019		2018		2017
United States	$	(47,235)	$	(50,268)	$	(44,246)
Foreign	(760)		444		(119)
Total	$	(47,995)	$	(49,824)	$	(44,365)

Schedule of Components of Income Tax Expense (Benefit)

The provision (benefit) for income taxes consisted of the following (in thousands):


	For the year ended December 31,
	2019		2018		2017
Current
State	$	59	$	48	$	42
Foreign	252		203		19
Total Current	$	311	$	251	$	61

Deferred
Federal	$	(65)	$	(8)	$	—
Foreign	(107)		4		—
Total Deferred	$	(172)	$	(4)	$	—

Total	$	139	$	247	$	61

Schedule of Effective Income Tax Rate Reconciliation

The items accounting for the difference between income taxes computed at the federal statutory income tax rate and the provision for income taxes consisted of the following (in thousands):


	For the year ended December 31,
	2019			2018			2017
Federal statutory rate	21.0		%	21.0		%	35.0		%
Effect of:
Tax benefit at federal statutory rate	$	(10,079)		$	(10,463)		$	(15,528)
State taxes, net of federal benefit	(5,015)			(2,587)			(1,802)
Revaluation of deferred tax items due to tax rate change (federal and state)	—			—			22,880
Revaluation of deferred tax asset for current year net operating loss due to tax rate change	—			—			4,134
Section 162(m) limitations	2,944			1,625			37
Stock-based compensation	(14,728)			(2,327)			(559)
Permanent differences including gain on foreign restructuring, and meals & entertainment	1,103			2,815			5,663
Tax benefit of federal R&D credit	(3,141)			(3,289)			(2,366)
Recognition of excess tax benefits related to share-based payments	—			—			(3,606)
Valuation allowance	29,236			14,044			(8,586)
Other	(181)			429			(206)
Total income tax provision	$	139		$	247		$	61

Schedule of Deferred Tax Assets and Liabilities

The components of deferred tax assets and liabilities were as follows (in thousands):


	As of December 31,
	2019		2018
Deferred tax assets:
Property and equipment	$	6	$	18
Accruals and reserves	197		283
Deferred rent	1,599		1,601
Compensation and benefits	16,391		13,925
Deferred revenue	5,973		5,338
Net operating loss and credits	78,983		51,931
Other	1,559		701
Total deferred tax assets	104,708		73,797
Valuation allowance	(86,580)		(72,683)
Total deferred tax assets	18,128		1,114
Deferred tax liabilities:
Property and equipment	(599)		(529)
Convertible Notes	(14,598)		—
Other deferred tax liabilities	(2,822)		(587)
Deferred tax liabilities	(18,019)		(1,116)
Total	$	109	$	(2)

Schedule of Unrecognized Tax Benefits

A reconciliation of the gross unrecognized tax benefits is as follows (in thousands):


	For the year ended December 31,
	2019		2018		2017
Unrecognized tax benefits-beginning of period	$	182	$	191	$	168
Additions for tax positions related to prior year	—		—		—
Reductions for tax positions related to prior year	—		—		—
Foreign currency adjustments	(4)		(9)		23
Additions for tax positions related to current year	—		—		—
Unrecognized tax benefits-end of period	$	178	$	182	$	191