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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2022
Income Tax Disclosure [Abstract] |
Components of Loss before Provision for (Benefit from) Income Taxes | The domestic and foreign components of loss before provision for (benefit from) income taxes consisted of the following (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Domestic |  | $ | (287,569 | ) |  | $ | (289,187 | ) |  | $ | (98,439 | )
Foreign |  |  | 1,104 |  |  |  | 264 |  |  |  | 1,279 |
Total |  | $ | (286,465 | ) |  | $ | (288,923 | ) |  | $ | (97,160 | )
Provision for (Benefit from) Income Taxes | The provision for (benefit from) income taxes is comprised of the following (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Current: |  |  |  |  |  |  |  |  |  |  |  |
State |  | $ | 442 |  |  | $ | 480 |  |  | $ | 109 |
Foreign |  |  | 307 |  |  |  | 255 |  |  |  | 209 |
Total |  |  | 749 |  |  |  | 735 |  |  |  | 318 |
Deferred: |  |  |  |  |  |  |  |  |  |  |  |
Federal |  |  | (34 | ) |  |  | (17,841 | ) |  |  | (1,072 | )
State |  |  | 93 |  |  |  | (6,301 | ) |  |  | (297 | )
Foreign |  |  | (342 | ) |  |  | (351 | ) |  |  | 58 |
Total |  |  | (283 | ) |  |  | (24,493 | ) |  |  | (1,311 | )
Provision for (benefit from) income taxes |  | $ | 466 |  |  | $ | (23,758 | ) |  | $ | (993 | )
Reconciliation between Income Taxes | The following table provides a reconciliation between income taxes computed at the U.S. federal statutory rate and the Company's provision for (benefit from) income taxes (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Computed expected income tax benefit |  | $ | (60,120 | ) |  | $ | (60,674 | ) |  | $ | (20,135 | )
State income taxes - net of federal income tax benefit |  |  | (10,197 | ) |  |  | (17,171 | ) |  |  | (2,450 | )
Change in valuation allowance |  |  | 81,251 |  |  |  | 94,062 |  |  |  | 27,984 |
Non-deductible expenses |  |  | 6,335 |  |  |  | 7,399 |  |  |  | 248 |
Series I warrant |  |  | - |  |  |  | - |  |  |  | 7,767 |
Stock-based compensation |  |  | 135 |  |  |  | (30,523 | ) |  |  | (5,307 | )
Tax credits (federal and state) |  |  | (16,863 | ) |  |  | (16,957 | ) |  |  | (9,039 | )
Foreign rate differential |  |  | 35 |  |  |  | 35 |  |  |  | (92 | )
Other |  |  | (110 | ) |  |  | 71 |  |  |  | 31 |
Provision for (benefit from) income taxes |  | $ | 466 |  |  | $ | (23,758 | ) |  | $ | (993 | )
Significant Components of Company's Deferred Tax Assets and Liabilities | Significant components of the Company's deferred tax assets and liabilities are presented below (in thousands):
|  | December 31, |
|  | 2022 |  |  | 2021 |
Deferred tax assets: |  |  |  |  |  |  |  |
Net operating loss |  | $ | 209,795 |  |  | $ | 194,839 |
Tax credits |  |  | 58,724 |  |  |  | 42,845 |
Lease liabilities |  |  | 23,203 |  |  |  | 24,032 |
Stock-based compensation |  |  | 22,181 |  |  |  | 24,461 |
Capitalized software cost |  |  | 39,582 |  |  |  | - |
Other |  |  | 5,013 |  |  |  | 3,871 |
Total deferred tax assets |  |  | 358,498 |  |  |  | 290,048 |
Valuation allowance |  |  | (282,337 | ) |  |  | (204,182 | )
Total deferred tax assets, net |  |  | 76,161 |  |  |  | 85,866 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Lease assets |  |  | (19,296 | ) |  |  | (20,696 | )
Acquired intangible assets |  |  | (39,497 | ) |  |  | (48,163 | )
Capitalized software |  |  | - |  |  |  | (6,724 | )
Contract cost asset |  |  | (15,324 | ) |  |  | (10,179 | )
Prepaid and accrued expenses |  |  | (2,897 | ) |  |  | (2,021 | )
Other |  |  | (1,522 | ) |  |  | (1,015 | )
Total deferred tax liabilities |  |  | (78,536 | ) |  |  | (88,798 | )
Total |  | $ | (2,375 | ) |  | $ | (2,932 | )
Summary of Activity Related to Valuation Allowance | The following table summarizes the activity related to the valuation allowance (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Beginning balance |  | $ | 204,182 |  |  | $ | 112,389 |  |  | $ | 85,642 |
Current year change |  |  | 78,155 |  |  |  | 114,639 |  |  |  | 28,123 |
Release of valuation allowance as a result of purchase accounting for business combinations |  |  | - |  |  |  | (22,846 | ) |  |  | (1,376 | )
Ending balance |  | $ | 282,337 |  |  | $ | 204,182 |  |  | $ | 112,389 |
Summary of Activity Related to Unrecognized Tax Benefits | The following table summarizes the activity related to unrecognized tax benefits (in thousands):
|  | Year Ended December 31, |
|  | 2022 |  |  | 2021 |  |  | 2020 |
Beginning balance |  | $ | 17,010 |  |  | $ | 8,369 |  |  | $ | 6,749 |
Increases related to current period positions |  |  | 5,915 |  |  |  | 7,158 |  |  |  | 2,439 |
(Decreases) increases related to prior period positions |  |  | (1,198 | ) |  |  | 1,483 |  |  |  | (819 | )
Ending balance |  | $ | 21,727 |  |  | $ | 17,010 |  |  | $ | 8,369 |

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- Definition Tabular disclosure for tax positions taken in the tax returns filed or to be filed for which it is more likely than not that the tax position will not be sustained upon examination by taxing authorities and other income tax contingencies. Includes, but is not limited to, interest and penalties, reconciliation of unrecognized tax benefits, unrecognized tax benefits that would affect the effective tax rate, tax years that remain subject to examination by tax jurisdictions, and information about positions for which it is reasonably possible that amounts unrecognized will significantly change within 12 months. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15A -URI https://asc.fasb.org/extlink&oid=121826272&loc=SL6600010-109319 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32718-109319 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 19 -URI https://asc.fasb.org/extlink&oid=121826272&loc=d3e32840-109319 + Details
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