Income taxes (Tables)

12 Months Ended

Dec. 31, 2022

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,
	2022		2021		2020
	(in thousands)
Domestic	$	(123,521)	$	(71,537)	$	(34,829)
Foreign	(18,693)		(8,441)		792
Loss before income tax benefit	$	(142,214)	$	(79,978)	$	(34,037)

Schedule of income tax provision (benefit)

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


	Years Ended December 31,
	2022		2021		2020
	(in thousands)
Current:
Federal	$	(6)	$	—	$	(551)
State	154		217		(73)
Foreign	1,894		638		987
Total current expense	2,042		855		363
Deferred:
Federal	(268)		(487)		(10,657)
State	(170)		(1,145)		(1,173)
Foreign	(2,517)		(4,012)		1,512
Total deferred benefit	(2,955)		(5,644)		(10,318)
Total income tax benefit	$	(913)	$	(4,789)	$	(9,955)

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,
	2022		2021		2020
Statutory U.S. federal income tax rate	21.0	%	21.0	%	21.0	%
State income tax benefit, net of federal tax effect	2.5		3.1		4.7
Permanent differences	0.1		—		(0.7)
Foreign rate differential	(0.6)		(0.5)		(0.5)
Remeasurement gain/loss	—		0.7		(2.0)
Tax credits	2.0		2.3		3.4
Valuation allowance	(21.5)		(24.4)		(2.3)
Stock-based compensation	(1.6)		12.2		6.9
Transaction costs	(0.4)		(0.8)		(0.5)
Deferred rate change	0.4		0.9		(1.0)
Section 162(m)	(1.9)		(9.4)		—
Foreign withholding taxes	(0.5)		—		—
Other	1.1		0.9		0.2
Effective tax rate	0.6	%	6.0	%	29.2	%

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,
	2022		2021
	(in thousands)
Deferred tax assets:
Accrued compensation	$	3,821	$	4,529
Deferred revenue	12,883		8,331
Section 174 capitalization	9,540		—
Stock-based compensation	14,960		5,026
Federal tax credits	8,949		6,668
Foreign withholding taxes	2,782		—
Net operating losses	50,794		46,173
State tax credits	2,495		2,086
Business interest limitation	10,054		10,450
Operating lease liabilities	4,347		4,848
2026 Notes	6,627		8,304
Other	3,842		3,267
Gross deferred tax assets	131,094		99,682
Valuation allowance	(63,541)		(31,512)
Total deferred tax assets	67,553		68,170
Deferred tax liabilities:
Deferred contract costs	(14,170)		(10,491)
Operating lease right-of-use assets	(3,520)		(4,047)
Intangibles and other	(50,578)		(59,670)
Other	(300)		(1,191)
Gross deferred tax liabilities	(68,568)		(75,399)
Net deferred tax liabilities	$	(1,015)	$	(7,229)

The components giving rise to the net deferred tax liabilities detailed above have been included in the consolidated balance sheets as follows:


	December 31,
	2022		2021
	(in thousands)
Non-current deferred tax assets (1)	$	4,490	$	1,471
Non-current deferred tax liabilities	(5,505)		(8,700)
Net deferred tax liabilities	$	(1,015)	$	(7,229)

(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,
	2022		2021		2020
	(in thousands)
Balance, January 1	$	1,003	$	670	$	540
Additions based on tax positions related to the current year	230		161		130
Additions based on tax positions related to prior years	39		172		—
Balance, December 31	$	1,272	$	1,003	$	670