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Income Taxes (Tables)

12 Months Ended

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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Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years.

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Tabular disclosure of the reconciliation using percentage or dollar amounts of the reported amount of income tax expense attributable to continuing operations for the year to the amount of income tax expense that would result from applying domestic federal statutory tax rates to pretax income from continuing operations.

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Tabular disclosure of income before income tax between domestic and foreign jurisdictions.

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Tabular disclosure of valuation allowances to reduce deferred tax assets to net realizable value, including identification of the deferred tax asset more likely than not will not be fully realized and the corresponding amount of the valuation allowance.

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