Income taxes (Tables)

12 Months Ended

Dec. 31, 2021

Schedule of income before income tax, domestic and foreign

The domestic and foreign components of loss before income tax benefit were as follows:


	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Domestic	$	(71,537)	$	(34,829)	$	(43,544)
Foreign	(8,441)		792		(834)
Loss before income tax benefit	$	(79,978)	$	(34,037)	$	(44,378)

Schedule of income tax provision (benefit)

The components of income tax expense (benefit) attributable to continuing operations were as follows:


	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Current:
Federal	$	—	$	(551)	$	(7)
State	217		(73)		138
Foreign	638		987		1,013
Total current expense	855		363		1,144
Deferred:
Federal	(487)		(10,657)		(9,341)
State	(1,145)		(1,173)		(1,209)
Foreign	(4,012)		1,512		(627)
Total deferred benefit	(5,644)		(10,318)		(11,177)
Total income tax benefit	$	(4,789)	$	(9,955)	$	(10,033)

Schedule of income tax rate reconciliation

The income tax benefit differs from the amount of income tax benefit determined by applying the statutory U.S. federal income tax rate to pretax loss due to the following:


	Years Ended December 31,
	2021		2020		2019
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State income tax benefit, net of federal tax effect	3.1		4.7		2.9
Permanent differences	—		(0.7)		(0.5)
Foreign rate differential	(0.5)		(0.5)		0.2
Remeasurement gain/loss	0.7		(2.0)		0.5
Tax credits	2.3		3.4		2.0
Valuation allowance	(24.4)		(2.3)		(2.0)
Stock-based compensation	12.2		6.9		—
Transaction costs	(0.8)		(0.5)		(0.4)
Deferred rate change	0.9		(1.0)		(0.3)
GILTI inclusion	—		—		(0.5)
Section 162(m)	(9.4)		—		—
Other	0.9		0.2		(0.3)
Effective tax rate	6.0	%	29.2	%	22.6	%

Schedule of components of net deferred tax assets and liabilities

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


	December 31,
	2021		2020
	(in thousands)
Deferred tax assets:
Allowance for doubtful accounts	$	95	$	113
Accrued compensation	4,529		3,119
Deferred revenue	8,331		3,724
Stock-based compensation	5,026		1,938
Federal tax credits	6,668		4,099
Net operating losses	46,173		26,996
State tax credits	2,086		1,640
Business interest limitation	10,450		9,829
Operating lease liabilities	4,848		—
Convertible Senior Notes	8,304		—
Other	3,172		1,942
Gross deferred tax assets	99,682		53,400
Valuation allowance	(31,512)		(3,016)
Total deferred tax assets	68,170		50,384
Deferred tax liabilities:
Prepaid items	(624)		(853)
Equipment and leasehold improvements	(168)		—
Deferred contract costs	(10,491)		(7,634)
Operating lease right-of-use assets	(4,047)		—
Intangibles and other	(59,670)		(46,898)
Other	(399)		—
Gross deferred tax liabilities	(75,399)		(55,385)
Net deferred tax liabilities	$	(7,229)	$	(5,001)

The components giving rise to the net deferred tax liabilities detailed above have been included in the consolidated balance sheets as of December 31, 2021 and 2020 as follows:


	December 31,
	2021		2020
	(in thousands)
Non-current deferred tax assets (1)	$	1,471	$	86
Non-current deferred tax liabilities	(8,700)		(5,087)
Net deferred tax liabilities	$	(7,229)	$	(5,001)

(1) Included in other assets in the consolidated balance sheets.

Schedule of unrecognized tax benefits

A reconciliation of the beginning and ending amount of gross unrecognized tax benefits was as follows:


	Years Ended December 31,
	2021		2020		2019
	(in thousands)
Balance, January 1	$	670	$	540	$	439
Additions based on tax positions related to the current year	161		130		92
Additions based on tax positions related to prior years	172		—		19
Reductions based on tax positions related to prior years	—		—		(10)
Balance, December 31	$	1,003	$	670	$	540