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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Schedule of Components of Income Tax Expense | The following summarizes the components of income tax (benefit) expense:
| Years ended December 31,
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |
Current taxes: |  |  |
U.S. Federal | $ | 36,367 |  | $ | 18,879 |  | $ | 3,485 |
U.S. State and local | 8,433 |  | 12,331 |  | 5,708 |
International | 11,792 |  | 8,982 |  | 7,283 |
Total current taxes | 56,592 |  | 40,192 |  | 16,476 |
Deferred taxes: |  |  |
U.S. Federal | (65,559) |  | (18,303) |  | (16,880) |
U.S. State and local | (18,472) |  | (5,895) |  | (9,319) |
International | (980) |  | (170) |  | (445) |
Total deferred taxes | (85,011) |  | (24,368) |  | (26,644) |
Total income tax (benefit) provision | $ | (28,419) |  | $ | 15,824 |  | $ | (10,168) |
Schedule of Income Before Provision for Income Taxes | The following summarizes the components of (loss) income before provision for income taxes:
| Years ended December 31,
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |
U.S. | $ | (365,356) |  | $ | (22,074) |  | $ | (91,493) |
International | 53,765 |  | 39,718 |  | 35,918 |
(Loss) income before provision for income taxes | $ | (311,591) |  | $ | 17,644 |  | $ | (55,575) |
Schedule of Effective Income Tax Rate Reconciliation | A reconciliation between the effect of applying the federal statutory rate and the effective income tax rate used to calculate our income tax provision is as follows:
| Years ended December 31,
| 2024 |  | 2023 |  | 2022 |
Federal statutory rate | 21.0 | % | 21.0 | % | 21.0 | %
Effect of: |  |  |
State income taxes, net of federal benefit | 2.2 |  | 20.0 |  | 1.5 |
Change in foreign income tax rate applied to deferred tax balances | — |  | — |  | 0.1 |
Change in state income tax rate applied to deferred tax balances | (0.1) |  | 7.1 |  | 1.8 |
Federal credits generated | 1.9 |  | (42.3) |  | 11.5 |
Stock-based compensation | 1.3 |  | 13.4 |  | (6.3) |
Sale of subsidiary | 1.0 |  | — |  | — |
FDII benefit | 0.6 |  | (10.2) |  | 2.3 |
State credits, net of federal benefit | 0.5 |  | (9.1) |  | 7.2 |
Return to accrual adjustment | (0.1) |  | (8.3) |  | 1.4 |
Nondeductible meals, entertainment and transportation | (0.2) |  | 4.4 |  | (0.7) |
GILTI inclusion | (0.4) |  | 9.3 |  | (2.6) |
Nondeductible security incident-related fines or penalties | (0.5) |  | 35.7 |  | (8.7) |
Foreign tax rate | (0.5) |  | 6.1 |  | 1.0 |
Unrecognized tax benefit | (0.7) |  | 0.7 |  | 0.5 |
Section 162(m) limitation | (1.7) |  | 30.1 |  | (6.4) |
Change in valuation reserve | (15.1) |  | 10.8 |  | (5.4) |
Other | (0.1) |  | 1.0 |  | 0.1 |
Income tax provision effective rate | 9.1 | % | 89.7 | % | 18.3 | %
Schedule of Deferred Tax Assets and Liabilities | The significant components of our deferred tax assets and liabilities were as follows:
| December 31,
(dollars in thousands) | 2024 |  | 2023 |
Deferred tax assets relating to: |  |
Capitalized R&D and software costs | $ | 78,809 |  | $ | 47,351 |
Federal, state and foreign tax credits | 31,495 |  | 39,260 |
Stock-based compensation | 17,176 |  | 24,717 |
Operating leases | 10,751 |  | 12,867 |
Deferred revenue | 7,633 |  | 5,992 |
Capital loss carryforward | 7,282 |  | — |
Federal and state and foreign net operating loss carryforwards | 4,825 |  | 7,061 |
Allowance for credit losses | 1,441 |  | 1,702 |
Intangible assets | 969 |  | 1,050 |
Accrued bonuses | 316 |  | 314 |
Other | 1,615 |  | 2,982 |
Total deferred tax assets | 162,312 |  | 143,296 |
Deferred tax liabilities relating to: |  |
Intangible assets | (50,530) |  | (160,172) |
Costs of obtaining contracts | (13,136) |  | (13,870) |
Operating leases | (7,338) |  | (9,865) |
Fixed assets | (4,716) |  | (5,833) |
Other | (9,010) |  | (8,342) |
Total deferred tax liabilities | (84,730) |  | (198,082) |
Valuation allowance | (86,672) |  | (37,862) |
Net deferred tax liability | $ | (9,090) |  | $ | (92,648) |
Summary of Changes in Deferred Tax Asset Valuation Allowance | The following table illustrates the change in our deferred tax asset valuation allowance:
Years ended December 31, (dollars in thousands) | Balance at beginning of year |  | Charges to expense | Balance at end of year
2024 | $ | 37,862 |  |  | $ | 48,810 |  | $ | 86,672 |
2023 | 34,769 |  |  | 3,093 |  | 37,862 |
2022 | 31,974 |  |  | 2,795 |  | 34,769 |
Summary of Changes in Unrecognized Tax Benefits | The following table sets forth the change to our unrecognized tax benefit for the years ended December 31, 2024, 2023 and 2022:
| Years ended December 31,
(dollars in thousands) | 2024 |  | 2023 |  | 2022 |
Balance at beginning of year | $ | 3,240 |  | $ | 3,083 |  | $ | 3,651 |
Increases from prior period positions | 1,249 |  | 101 |  | 89 |
Increases from current period positions | 706 |  | 762 |  | 629 |
Decreases in prior year positions | — |  | (118) |  | (908) |
Settlements (payments) | — |  | (160) |  | — |
Lapse of statute of limitations | — |  | (428) |  | (378) |
Balance at end of year | $ | 5,195 |  | $ | 3,240 |  | $ | 3,083 |

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