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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2024
Income Tax Disclosure [Abstract] |
Summary of Components of Loss Before Income Taxes | Income (loss) before income taxes included in the consolidated statements of operations was as follows:
|  |  | Year Ended December 31,
|  |  |  |  | 2024 |  | 2023 |  | 2022
|  |  |  |  | (in thousands)
United States |  |  |  |  | $ | 35,699 |  |  | $ | (139,295) |  |  | $ | (109,381) |
Foreign |  |  |  |  | 5,756 |  |  | (14,038) |  |  | (12,924) |
Income (loss) before income taxes |  |  |  |  | $ | 41,455 |  |  | $ | (153,333) |  |  | $ | (122,305) |
Summary of Income Tax (Benefit) Expense | Income tax expense included in the consolidated statements of operations was as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
| (in thousands)
Current: |  |  |  |  |
Federal | $ | 2,426 |  |  | $ | 428 |  |  | $ | 1 |
State and local | 2,848 |  |  | 1,361 |  |  | 243 |
Foreign | 9,864 |  |  | 3,317 |  |  | 3,608 |
Total current tax expense | 15,138 |  |  | 5,106 |  |  | 3,852 |
Deferred: |  |  |  |  |
Federal | 12 |  |  | 9 |  |  | 10 |
State and local | — |  |  | 2 |  |  | 2 |
Foreign | 779 |  |  | (5,635) |  |  | (1,452) |
Total deferred tax expense (benefit) | 791 |  |  | (5,624) |  |  | (1,440) |
Total income tax expense (benefit) | $ | 15,929 |  |  | $ | (518) |  |  | $ | 2,412 |
Summary of Reconciliation of Income Taxes Computed at Federal Statutory Rate and Provision for Income Taxes | The reconciliation of the federal statutory rate of 21% to the effective income tax rate for the years ended December 31, 2024, 2023 and 2022 was as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Federal statutory rate | 21.0 | % |  | 21.0 | % |  | 21.0 | %
State taxes, net of federal benefit | 6.0 |  |  | (0.5) |  |  | (0.1) |
Permanent differences | 7.0 |  |  | (0.9) |  |  | (0.2) |
Stock-based compensation | 15.7 |  |  | (7.0) |  |  | (2.4) |
Research and development credits | (18.5) |  |  | 0.9 |  |  | 1.4 |
Foreign rate differential | 3.0 |  |  | 0.3 |  |  | 0.1 |
Change in valuation allowance | (11.2) |  |  | (3.2) |  |  | (24.8) |
Excess officers' compensation | 5.5 |  |  | (1.7) |  |  | (3.1) |
Tax rate change | (13.4) |  |  | (3.4) |  |  | 7.8 |
Induced conversion expense | — |  |  | (9.5) |  |  | — |
Tax reserves | 12.6 |  |  | (0.1) |  |  | (0.2) |
Provision to return | (0.5) |  |  | 5.2 |  |  | (0.3) |
U.S. taxation of international operations | 3.5 |  |  | — |  |  | — |
Other | 7.7 |  |  | (0.8) |  |  | (1.1) |
Effective income tax rate | 38.4 | % |  | 0.3 | % |  | (1.9) | %
Summary of Components of Net Deferred Tax Assets and Liabilities | Net deferred tax assets and liabilities, as set forth in the table below, reflect the impact of temporary differences between the amounts of assets and liabilities recorded for financial statement purposes and such amounts measured in accordance with tax laws:
| As of December 31,
| 2024 |  | 2023
| (in thousands)
Deferred tax assets: |  |  |
Accruals and reserves | $ | 824 |  |  | $ | 335 |
Net operating loss carryforwards | 121,343 |  |  | 137,706 |
Deferred revenue | 3,192 |  |  | 15,726 |
Depreciation | 4,304 |  |  | 836 |
Research and development credits | 13,697 |  |  | 14,116 |
Capitalized research and development | 90,965 |  |  | 63,234 |
Operating lease liabilities | 18,164 |  |  | 24,012 |
Stock-based compensation | 12,290 |  |  | 9,113 |
Tax credits | — |  |  | 1,148 |
Other | 3,369 |  |  | 1,170 |
Gross deferred tax assets | $ | 268,148 |  |  | $ | 267,396 |
Valuation allowance | (229,283) |  |  | (231,661) |
Total deferred tax assets | $ | 38,865 |  |  | $ | 35,735 |
Deferred tax liabilities: |  |  |
Operating lease ROU assets | $ | (10,329) |  |  | $ | (11,307) |
Deferred contract acquisition and fulfillment costs | (26,277) |  |  | (24,251) |
Other | (2,944) |  |  | (65) |
Total deferred tax liabilities | $ | (39,550) |  |  | $ | (35,623) |
Net deferred tax liabilities | $ | (685) |  |  | $ | 112 |
Summary of Unrecognized Income Tax Benefits | The following is a reconciliation of the beginning and ending balances of unrecognized tax benefits (excluding interest and penalties), in thousands:
Balance, January 1, 2024 |  |  |  |  | $ | 5,041 |
Additions based on tax positions related to the current year |  |  |  |  | 4,520 |
Additions for tax positions of prior years |  |  |  |  | 315 |
Reductions for tax positions of prior years |  |  |  |  | — |
Settlements |  |  |  |  | — |
Balance, December 31, 2024 |  |  |  |  | $ | 9,876 |

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