Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Income Tax Disclosure [Abstract]

Schedule of Income before Income Tax, Domestic and Foreign

The components of income (loss) before provision for (benefit from) income taxes were as follows:

	Year Ended December 31,
	2021		2022		2023
	(in millions)
United States	$	(75)	$	71	$	(2,073)
Foreign	3		—		12
Income (loss) before provision for (benefit from) income taxes	$	(72)	$	71	$	(2,061)

Schedule of Components of Income Tax Expense (Benefit)

The components of the provision for (benefit from) income taxes were as follows:

	Year Ended December 31,
	2021		2022		2023
	(in millions)
Current:
Federal	$	—	$	4	$	6
State	1		11		11
Foreign	2		1		3
Total current tax expense	3		16		20
Deferred:
Federal	(2)		(287)		(343)
State	—		(86)		(116)
Foreign	—		—		—
Total deferred tax benefit	(2)		(373)		(459)
Total provision for (benefit from) income taxes	$	1	$	(357)	$	(439)

Schedule of Effective Income Tax Rate Reconciliation

A reconciliation of the Company’s effective tax rate to the U.S. statutory rate was as follows:

	Year Ended December 31,
	2021		2022		2023
U.S. federal statutory rate	21.0	%	21.0	%	21.0	%
State, net of federal benefit	2.1		8.3		4.3
Foreign taxes	(1.5)		(.6)		—
Penalties	(1.0)		0.1		—
Lobbying expenses	(1.4)		3.6		—
Stock-based compensation	3.5		1.3		(7.9)
Equity agreements with retailers	(1.3)		0.8		0.7
Transaction costs	(1.9)		2.6		—
Change in valuation allowance	(57.3)		(507.2)		—
Research and development credits	46.6		(47.6)		4.8
Uncertain tax positions	(8.7)		12.4		(1.2)
Other	(1.5)		1.5		(0.4)
Effective tax rate	(1.4)	%	(503.8)	%	21.3	%

Schedule of Deferred Tax Assets and Liabilities

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

	As of December 31,
	2022		2023
Deferred tax assets	(in millions)
Net operating loss and tax credit carryforwards	$	176	$	187
Capitalized research and development	122		377
Legal reserve	42		15
Other accruals and reserves	21		12
Stock-based compensation	30		257
Operating lease liabilities	13		11
Other	3		—
Total gross deferred tax assets	407		859
Less: valuation allowance	(2)		(3)
Total deferred tax assets, net of valuation allowance	405		856
Deferred tax liabilities
Property and equipment and intangible assets	(24)		(17)
Operating lease right-of-use assets	(10)		(9)
Total deferred tax liabilities	(34)		(26)
Net deferred tax assets	$	371	$	830

Schedule of Unrecognized Tax Benefits Roll Forward

The following table summarizes the activity related to the Company’s gross unrecognized tax benefits:

	Year Ended December 31,
	2021		2022		2023
	(in millions)
Unrecognized tax benefits at beginning of period	$	10	$	18	$	30
Gross increases – current period tax positions	9		10		32
Gross increases – prior period tax positions	—		2		1
Gross decreases – current period tax positions	(1)		—		—
Gross decreases – prior period tax positions	—		—		—
Unrecognized tax benefits at end of period	$	18	$	30	$	63