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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Income (Loss) before Income Tax, Domestic and Foreign | Income before provision (benefit) for income taxes included the following components for the years ended December 31 (in thousands):
| 2024 |  | 2023 |  | 2022
United States | $ | 357,484 |  | $ | 134,509 |  | $ | 191,353 |
Foreign | 24,020 |  | 22,552 |  | 4,885
Total | $ | 381,504 |  | $ | 157,061 |  | $ | 196,238
Schedule of Significant Components of the Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes were as follows for the years ended December 31 (in thousands):
| 2024 |  | 2023 |  | 2022
Current: |  |  |  |  |
Federal | $ | 60,924 |  | $ | 33,084 |  | $ | 10,804 |
State | 18,298 |  | 10,371 |  | 10,118
Foreign | 3,388 |  | 2,804 |  | 2,892 |
Total current | 82,610 |  | 46,259 |  | 23,814
Deferred: |  |  |  |  |
Federal | (63,073) |  |  | (60,673) |  | 26,180 |
State | (20,838) |  |  | (9,172) |  |  | (2,015) |
Foreign | (1,815) |  | 89 |  |  | (2,146)
Total deferred | (85,726) |  |  | (69,756) |  |  | 22,019 |
Tax impact of unrecorded tax benefits liability | 7,586 |  | 4,775 |  | 3,475 |
Provision for (benefit from) income taxes | $ | 4,470 |  |  | $ | (18,722) |  |  | $ | 49,308 |
Schedule of Reconciliation of the company's Effective Income Tax Rate to the Federal Statutory Rate | A reconciliation of our effective income tax rate to the federal statutory rate follows for the years ended December 31 (in thousands):
| 2024 |  | 2023 |  | 2022
Federal income tax at the statutory rate | $ | 80,120 |  |  | $ | 32,983 |  |  | $ | 41,224 |
Excess stock-based compensation benefit | (83,748) |  |  | (106,522) |  |  | (4,616) |
Executive compensation limitation | 51,858 |  |  | 77,350 |  |  | 5,784 |
R&D credits | (36,571) |  |  | (26,204) |  |  | (13,340) |
Nontaxable gain on investments | (19,727) |  |  | — |  |  | — |
Change in unrecognized tax benefits | 7,356 |  |  | 4,351 |  |  | 3,215 |
Other permanent differences | 5,176 |  |  | 1,201 |  |  | 1,118 |
Global intangible low-taxed income | 3,081 |  |  | 1,890 |  |  | 653 |
Foreign derived intangible income deduction | (2,558) |  |  | (961) |  |  | (2,597) |
Foreign tax credit | (1,914) |  |  | (1,922) |  |  | — |
State income taxes, net of federal benefit | 1,713 |  |  | 3,730 |  |  | 7,915 |
Change in valuation allowance | (903) |  |  | (4,695) |  |  | 10,216 |
Tax effects of intercompany transactions | (222) |  |  | (2,033) |  |  | (417) |
Difference between statutory and foreign tax rates | 801 |  |  | 1,013 |  |  | (428) |
Other | 8 |  |  | 1,097 |  |  | 581 |
Provision for (benefit from) income taxes | $ | 4,470 |  |  | $ | (18,722) |  |  | $ | 49,308 |
Effective tax rate | 1.2 | % |  | (11.9) | % |  | 25.1 | %
Schedule of Components of Deferred Income Tax Assets and Liabilities | Significant components of our deferred income tax assets and liabilities are as follows at December 31, 2024 and December 31, 2023 (in thousands):
| 2024 |  | 2023
Deferred income tax assets: |  |  |
R&D capitalization, net | $ | 193,265 |  |  | $ | 99,746 |
Deferred revenue | 66,948 |  |  | 59,443 |
Stock-based compensation | 51,088 |  |  | 10,544 |
Convertible debt, net | 31,603 |  |  | 39,649 |
Reserves, accruals, and other | 21,634 |  |  | 12,264 |
R&D tax credit carryforward | 19,100 |  |  | 16,554 |
Net operating loss carryforward | 17,824 |  |  | 2,115 |
Accrued bonus | 12,101 |  |  | 11,253 |
Lease liability | 11,966 |  |  | 9,664 |
Inventory reserve | 5,794 |  |  | 1,986 |
Deferred compensation | 4,021 |  |  | 2,803 |
Strategic investments | — |  |  | 6,109 |
Amortization | — |  |  | 4,425 |
Total gross deferred tax assets | 435,344 |  |  | 276,555 |
Valuation allowance | (23,054) |  |  | (21,600) |
Total deferred income tax assets, net of valuation allowance | 412,290 |  |  | 254,955 |
Deferred income tax liabilities: |  |  |
Strategic investments | (42,260) |  |  | — |
Amortization | (36,185) |  |  | — |
Depreciation | (16,739) |  |  | (14,575) |
Right of use asset | (10,639) |  |  | (8,404) |
Prepaid expenses | (2,874) |  |  | (2,223) |
Customer contract asset | (1,174) |  |  | (690) |
Goodwill amortization | (509) |  |  | (314) |
Other | — |  |  | (965) |
Total deferred income tax liabilities | (110,380) |  |  | (27,171) |
Net deferred income tax assets | $ | 301,910 |  |  | $ | 227,784 |
Deferred taxes are reflected in the consolidated balance sheet as follows: |  |  |
Non-current tax assets (included in deferred tax asset, net) | 304,282 |  |  | 227,784 |
Non-current tax liabilities (included in other long-term liabilities) | (2,372) |  |  | — |
Total | $ | 301,910 |  |  | $ | 227,784 |
Schedule of Valuation Allowance | The following table presents the valuation allowance activity for years ended December 31, 2024, 2023 and 2022 (in thousands):
| 2024 |  | 2023 |  | 2022
Balance, beginning of period | $ | 21,600 |  | $ | 26,368 |  | $ | 16,168
Tax provision (benefit) | (576) |  |  | (4,262) |  |  | 10,409 |
Deductions charged to tax provision / benefit | (327) |  | (505) |  | (164)
Additions (reversals) to other accounts | 2,357 |  | (1) |  | (45)
Balance, end of period | $ | 23,054 |  | $ | 21,600 |  | $ | 26,368
Schedule of Roll forward of Liability for Unrecognized Tax Benefits exclusive of Accrued Interest | The following table presents a roll forward of our liability for unrecognized tax benefits, exclusive of accrued interest, as of December 31 (in thousands):
| 2024 |  | 2023 |  | 2022
Balance, beginning of period | $ | 25,754 |  | $ | 21,492 |  | $ | 18,249
Increase (decrease) in previous year tax positions | 501 |  |  | (215) |  | 232
Increase in current year tax positions | 7,313 |  | 6,963 |  | 3,343
Decrease due to lapse of statute of limitations | (842) |  |  | (2,486) |  |  | (332) |
Balance, end of period | $ | 32,726 |  | $ | 25,754 |  | $ | 21,492

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