Income Taxes

6 Months Ended

Jun. 30, 2024

Income Tax Disclosure [Abstract]

Income Taxes

12. Income Taxes

The Company's quarterly tax provision and estimates of its annual effective tax rate are estimates due to several factors, including changes in pre-tax income (or loss), the mix of jurisdictions to which such income relates, discrete items (such as windfalls or shortfalls from stock-based compensation) in the period offset with our valuation allowance. The income tax benefit was $10.4 million and the income tax expense was $3.6 million for the three months ended June 30, 2024 and 2023, respectively; and the income tax benefit was $6.4 million and the income tax expense was $7.6 million for the six months ended June 30, 2024 and 2023, respectively. The change in income taxes for the three and six months ended June 30, 2024 compared to the same periods in the prior year is primarily due to a tax benefit of $14.3 million from the Device42 acquisition, partially offset by higher tax expenses due to higher foreign profits before tax.

The increase in tax benefit of $14.3 million in this period is primarily due to the net deferred tax liability generated from the acquisition of Device42, which provided sufficient taxable income to release valuation allowance.