Income Taxes (Tables)

12 Months Ended

Dec. 31, 2022

Income Tax Disclosure [Abstract]

Schedule of Components of Income Tax Expense (Benefit)

The components of income before income taxes were as follows (in thousands):

	December 31,
	2022			2021		2020
United States	$	(4,579	)	$	7,265	$	16,548
Foreign		3,271			3,101		1,816
Total	$	(1,308	)	$	10,366	$	18,364

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

	December 31,
	2022			2021			2020
Current:
Domestic	$	1,303		$	915		$	2,485
Foreign		875			811			534
Total		2,178			1,726			3,019
Deferred:
Domestic		(3,020	)		(765	)		1,583
Foreign		47			105			51
Total		(2,973	)		(660	)		1,634
Provision for income taxes	$	(795	)	$	1,066		$	4,653

Schedule of Effective Income Tax Rate Reconciliation

The effective income tax rate differs from the federal statutory income tax rate applied to the income before provision for income taxes due to the following (in thousands):

	December 31,
	2022			2021			2020
Federal statutory rate		21.0	%		21.0	%		21.0	%
State taxes		(40.0	)%		4.8	%		4.3	%
Non-deductible executive compensation		(32.4	)%		14.3	%		—	%
Non-deductible IPO expenses		—	%		4.5	%		—	%
Other permanent differences		(8.3	)%		0.6	%		(0.3	)%
Excess tax benefit on stock-based compensation		675.6	%		(41.6	)%		—	%
Difference in prior year tax filings from provision		(22.6	)%		4.3	%		0.1	%
Foreign tax rate differences		0.1	%		2.5	%		—	%
Valuation Allowance		(542.8	)%		—	%		—	%
Other		10.2	%		—	%		0.2	%
		60.8	%		10.4	%		25.3	%

Schedule of Deferred Tax Assets and Liabilities

Significant components of the Company's deferred tax assets and liabilities at December 31, 2022 and 2021 were as follows (in thousands):

	December 31,
	2022			2021
Deferred tax assets:
Stock-based compensation and other accruals	$	2,806		$	1,895
Federal and state net operating losses		602			3,919
Foreign tax credit		829			741
Operating lease liabilities		4,015			3,732
Fixed assets		--			87
Capitalized research and development costs		5,560			—
Intangible assets (including capitalized internal-use software development costs)		300			—
Other		635			76
Total deferred tax assets		14,747			10,450
Valuation allowance		(7,804	)		(744	)
Net deferred tax assets	$	6,943		$	9,706
Deferred tax liabilities:
Intangible assets (including capitalized internal-use software development costs)		--			(9,031	)
Goodwill		(3,478	)		—
Fixed assets		(119	)		(98	)
Operating lease right-of-use assets		(3,817	)		(3,602	)
Foregone foreign tax credit		(93	)		(130	)
Total deferred tax liabilities		(7,507	)		(12,861	)
Net deferred tax liabilities	$	(564	)	$	(3,155	)
Reported as:
Deferred tax asset (non-current)	$	116		$	163
Deferred tax liability (non-current)		(680	)		(3,318	)
Net deferred tax liabilities	$	(564	)	$	(3,155	)