Income Taxes (Tables)

12 Months Ended

Dec. 31, 2019

Income Taxes

Schedule of loss before income taxes

Loss before income taxes consisted of the following (in thousands):

	Year ended December 31,
	2019		2018		2017
United States	$	(48,898)	$	(44,137)	$	(56,852)
International		2,184		2,400		1,695
Total	$	(46,714)	$	(41,737)	$	(55,157)

Schedule of income tax expense

Income tax expense for 2019, 2018 and 2017, was composed of the following (in thousands):

	Year ended December 31,
	2019		2018		2017
Current:
Federal	$	—	$	—	$	—
State		32		26		36
Foreign		2,144		1,454		1,196
Total current income tax expense		2,176		1,480		1,232
Foreign		(44)		(133)		(90)
Total deferred income tax benefit		(44)		(133)		(90)
Total income tax expense	$	2,132	$	1,347	$	1,142

Schedule of reconciliation of effective tax rate

	Year ended December 31,
	2019		2018		2017
Federal tax benefit at statutory rate	21.0	%	21.0	%	34.0	%
State tax benefit net of federal effect	6.0		6.3		8.8
Foreign taxes	(2.9)		(1.7)		(0.7)
Change in valuation allowance	(29.0)		(29.8)		42.8
Change in federal tax rate	—		—		(86.1)
Compensation limitation 162(m)	(1.5)		—		—
Credits	4.6		3.7		3.4
Stock-based compensation	(1.6)		(2.3)		(3.9)
Non-deductible expenses and other	(1.2)		(0.4)		(0.4)
Effective tax rate	(4.6)	%	(3.2)	%	(2.1)	%

Schedule of components of net deferred tax assets

The components of net deferred tax assets at December 31, 2019 and 2018 consisted of the following (in thousands):

	As of December 31,
	2019		2018
Deferred tax assets / liabilities:
Accruals and allowances	$	7,331	$	6,037
Lease liabilities		3,176		—
Loss (Gains) on foreign exchange		110		(72)
Net operating loss carryforwards		86,912		76,648
Depreciation and amortization		1,739		2,345
R&D tax credits		21,474		17,536
Stock-based compensation		4,038		5,755
Capitalized commissions		(4,118)		(3,915)
Right-of-use assets		(2,764)		—
Valuation allowance		(117,721)		(104,201)
Net deferred tax assets	$	177	$	133

Schedule of reconciliation of gross unrealized tax benefits

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

	Year ended December 31,
	2019		2018		2017
Unrecognized tax benefits, beginning of year	$	8,340	$	6,839	$	5,306
Gross increases—tax positions from prior periods		(40)		(31)		34
Gross increases—tax positions from current period		2,004		1,532		1,499
Unrecognized tax benefits, end of year	$	10,304	$	8,340	$	6,839