Income Taxes (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Income before Income Tax, Domestic and Foreign

The domestic and foreign components of income (loss) before provision for income taxes consisted of the following (in thousands):


	Fiscal Year Ended December 31,
	2023		2022		2021
Domestic	$	(110,640)	$	(155,528)	$	(80,243)
Foreign	6,999		3,939		1,400
Total net loss before taxes	$	(103,641)	$	(151,589)	$	(78,843)

Schedule of Components of Income Tax Expense (Benefit)

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


	Fiscal Year Ended December 31,
	2023		2022		2021
Current
Federal	$	—	$	—	$	—
State	324		45		183
Foreign	3,494		2,241		1,149
Total current income tax expense	3,818		2,286		1,332
Deferred:
Federal	—		—		—
State	—		—		—
Foreign	(165)		—		(149)
Total deferred income tax benefit	(165)		—		(149)
Total provision for income taxes	$	3,653	$	2,286	$	1,183

Schedule of Effective Income Tax Rate Reconciliation

The reconciliation between the statutory federal income tax rate and the Company’s effective tax rate as a percentage of loss before income taxes is as follows:


	Fiscal Year Ended December 31,
	2023		2022		2021
Federal tax expense	21.00	%	21.00	%	21.00	%
State taxes, net of federal benefit	0.50	%	1.24	%	1.07	%
Foreign rate differential	(1.40)	%	(0.33)	%	(0.12)	%
Withholding taxes	(1.77)	%	(0.60)	%	(0.78)	%
Nondeductible compensation	(10.20)	%	(2.52)	%	(5.29)	%
Stock-based compensation	(1.84)	%	(3.18)	%	0.27	%
Change in valuation allowance	(18.33)	%	(21.41)	%	(34.54)	%
Research and development credits	7.94	%	4.69	%	16.87	%
Nontaxable dividends	1.31	%	—	%	—	%
Other	(0.73)	%	(0.40)	%	0.02	%
Effective tax rate	(3.52)	%	(1.51)	%	(1.50)	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the net deferred tax assets (liabilities) for the fiscal years ended December 31, 2023 and 2022, consisted of the following (in thousands):


	December 31,
	2023		2022
Deferred tax assets:
Accruals and reserves	$	4,409	$	5,107
Deferred revenue	62,000		61,285
Net operating loss	36,508		30,047
Research and development tax credits	28,645		20,412
Stock-based compensation expense	6,242		7,995
Indirect tax reserves	240		1,496
Property and equipment, net	2,000		2,031
Capitalized research and development costs	35,505		23,475
Operating lease liabilities	1,460		2,767
Other	564		491
Gross deferred tax assets	177,573		155,106
Valuation allowance	(150,915)		(129,453)
Total deferred tax assets	26,658		25,653
Deferred tax liabilities:
Deferred contract costs	(16,791)		(14,814)
Operating lease right-of-use-assets	(1,129)		(2,245)
Other deferred tax liabilities	(8,573)		(8,594)
Total deferred tax liabilities	(26,493)		(25,653)
Net deferred tax assets	$	165	$	—

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending balance of unrecognized tax benefit is as follows (in thousands):


	Fiscal Year Ended December 31,
	2023		2022		2021
Gross unrecognized tax benefits at the beginning of the year	$	5,310	$	3,608	$	10,580
Increases (decreases) related to prior year tax positions	58		224		(7,892)
Increases related to current year tax positions	1,864		1,478		920
Statues of limitations expirations	—		—		—
Gross unrecognized tax benefits at the end of the year	$	7,232	$	5,310	$	3,608