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Stockholders' Equity | 9 Months Ended
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Sep. 30, 2024
Stockholders' Equity |
Stockholders' Equity | Note 16. Stockholders' Equity ​ Share Buyback Program ​ Pursuant to the Company’s existing share buyback program, the Company purchased 797,038 and 1,004,326 shares of its common stock, during the three and nine months ended September 30, 2024, for total consideration of $35.0 million and $43.5 million, respectively. The Company purchased 1,072,041 and 1,338,757 shares of its common stock during the three and nine months ended September 30, 2023, for total consideration of $50.0 million and $58.1 million, respectively. ​ The Company’s Board of Directors authorized a $50.0 million increase to the Company’s share buyback program in June 2024, and an additional $50.0 million increase in November 2024, which is expected to continue for an indefinite period of time. Since the inception of the program, the Company’s Board of Directors has authorized a total of $385.0 million in the share buyback program. The primary goal of the program is to offset dilution created by the Company’s equity compensation programs. ​ Purchases are made through open market and private block transactions pursuant to Rule 10b5-1 plans, privately negotiated transactions or other means as determined by the Company’s management and in accordance with the requirements of the SEC and applicable laws. The timing and actual number of treasury share purchases will depend on a variety of factors including price, corporate and regulatory requirements, and other conditions. These treasury share purchases are accounted for under the cost method and are included as a component of treasury stock in the Company’s condensed consolidated balance sheets. ​ Amended and Restated 2015 Equity Incentive Plan ​ In February 2024, the Board of Directors approved the Company’s amended and restated 2015 Equity Incentive Plan, or the Amended 2015 Plan, which was subsequently approved by the Company’s stockholders, and accordingly, adopted by the Company in June 2024. The Amended 2015 Plan extends the terms of the 2015 Equity Incentive Plan, or the Original 2015 Plan, and makes certain other changes. The term of the Amended 2015 Plan will be extended indefinitely, however, the Company’s ability to grant incentive stock options thereunder will continue through February 2034. ​ As of September 30, 2024, the Company reserved an aggregate of 7,817,319 shares of common stock for future issuance under the Amended 2015 Plan. ​ 2014 Employee Stock Purchase Plan ​ As of September 30, 2024, the Company has issued 1,246,323 shares of common stock under the ESPP and 753,677 shares of its common stock remain available for issuance under the ESPP. ​ In May 2024, the Company issued 54,189 shares at a purchase price of $35.98 per share under the ESPP. For the three and nine months ended September 30, 2024, the Company recorded ESPP expense of $0.2 million and $0.9 million, respectively. For the three and nine months ended September 30, 2023, the Company recorded ESPP expense of $0.2 million and $0.8 million, respectively. ​ Share-Based Award Activity and Balances ​ The Company accounts for share-based compensation payments in accordance with ASC 718, which requires measurement and recognition of compensation expense at fair value for all share-based payment awards made to employees and directors. Under these standards, the fair value of option awards and the option components of the ESPP awards are estimated at the grant date using the Black-Scholes option-pricing model. The fair value of RSUs is estimated at the grant date using the Company’s common share price. Compensation cost for all share-based payments granted with service-based graded vesting schedules is recognized using the straight-line method over the requisite service period. ​ The weighted-averages for key assumptions used in determining the fair value of options granted are as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended |  | ​
​ | ​ | September 30, | ​ | September 30, | ​ | ​
​ |  | 2024 |  | 2023 |  | 2024 |  | 2023 |  | ​
Average volatility |  | — | % | 40.2 | % | 41.3 | % | 41.4 | % | ​
Average risk-free interest rate |  | — | % | 4.4 | % | 4.2 | % | 4.1 | % | ​
Weighted-average expected life in years |  | — | ​ | 6.3 | ​ | 6.2 | ​ | 6.2 | ​ | ​
Dividend yield rate |  | — | % | — | % | — | % | — | % | ​
​ A summary of option activity under all plans for the nine months ended September 30, 2024, is presented below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | Weighted-Average | ​ | ​ | ​ |
​ | ​ | ​ | ​ | Weighted-Average | ​ | Remaining | ​ | Aggregate |
​ | ​ | ​ | ​ | Exercise | ​ | Contractual | ​ | Intrinsic |
​ | ​ | Options | ​ | Price | ​ | Term (Years) | ​ | Value(1) |
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | (in thousands) |
Outstanding as of December 31, 2023 | ​ | 7,762,298 | ​ | $ | 19.70 |  |  |  | ​ |  | ​
Options granted |  | 642,985 | ​ | ​ | 46.27 | ​ | ​ | ​ | ​ | ​ | ​
Options exercised |  | (1,611,117) | ​ | ​ | 13.66 | ​ | ​ | ​ | ​ | ​ | ​
Options forfeited |  | (21,138) | ​ | ​ | 35.10 | ​ | ​ | ​ | ​ | ​ | ​
Options expired |  | — | ​ | ​ | — | ​ | ​ | ​ | ​ | ​ | ​
Outstanding as of September 30, 2024 |  | 6,773,028 | ​ | $ | 23.61 | ​ | 5.12 | ​ | $ | 168,760 | ​
Exercisable as of September 30, 2024 |  | 4,968,365 | ​ | ​ | 19.02 | ​ | 3.97 | ​ | $ | 146,600 | ​
Vested and expected to vest as of September 30, 2024 | ​ | 6,617,113 | ​ | ​ | 23.24 | ​ | 5.04 | ​ | $ | 167,346 | ​
| (1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the estimated fair value of the Company’s stock for those awards that have an exercise price below the estimated fair value at September 30, 2024.
​ For the three and nine months ended September 30, 2024, the Company recorded expense of $2.7 million and $9.0 million, respectively, related to stock options granted under all plans. For the three and nine months ended September 30, 2023, the Company recorded expense of $2.2 million and $7.5 million, respectively, related to stock options granted under all plans. ​ Information relating to option grants and exercises is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended |
​ | ​ | September 30, | ​ | September 30, | ​
​ |  | 2024 |  | 2023 |  | 2024 |  | 2023 |
​ | ​ | (in thousands, except per share data) |
Weighted-average grant date fair value per share | ​ | $ | — | ​ | $ | 21.49 | ​ | $ | 21.89 | ​ | $ | 16.76 | ​
Intrinsic value of options exercised | ​ |  | 6,218 | ​ |  | 5,628 | ​ |  | 48,381 | ​ |  | 24,544 | ​
Cash received from options exercised | ​ |  | 3,332 | ​ |  | 2,277 | ​ |  | 9,154 | ​ |  | 12,015 | ​
Total fair value of the options vested during the period | ​ |  | 111 | ​ |  | 167 | ​ |  | 9,815 | ​ |  | 8,887 | ​
​ A summary of the status of the Company’s non-vested options as of September 30, 2024, and changes during the nine months ended September 30, 2024, are presented below: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  | ​ |  | Weighted-Average |
​ | ​ | ​ | ​ | Grant Date |
​ | ​ | Options | ​ | Fair Value |
Non-vested as of December 31, 2023 | ​ | 2,076,355 | ​ | $ | 12.68 | ​
Options granted |  | 642,985 | ​ | ​ | 21.89 | ​
Options vested |  | (893,539) | ​ | ​ | 10.98 | ​
Options forfeited |  | (21,138) | ​ | ​ | 16.19 | ​
Non-vested as of September 30, 2024 |  | 1,804,663 | ​ |  | 16.76 | ​
​ As of September 30 2024, there was $21.3 million of total unrecognized compensation cost, net of forfeitures, related to non-vested stock option based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.6 years and will be adjusted for future changes in estimated forfeitures. ​ Restricted Stock Units ​ The Company grants restricted stock units, or RSUs, to certain employees and members of the Board of Directors with a vesting period of up to four years. The grantee receives one share of common stock at a specified future date for each RSU awarded. The RSUs may not be sold or otherwise transferred until vested. The RSUs do not have any voting or dividend rights prior to the issuance of the underlying common stock. The share-based expense associated with these grants was based on the Company’s common stock fair value at the time of grant and is amortized over the requisite service period, which generally is the vesting period using the straight-line method. For the three and nine months ended September 30, 2024, the Company recorded total expenses of $2.7 million and $8.8 million, respectively, related to RSU awards granted under all plans. For the three and nine months ended September 30, 2023, the Company recorded expenses of $2.2 million and $7.3 million, respectively, related to RSU awards granted under all plans. ​ As of September 30, 2024, there was $22.6 million of total unrecognized compensation cost, net of forfeitures, related to non-vested RSU-based compensation arrangements granted under all plans. The cost is expected to be recognized over a weighted-average period of 2.6 years and will be adjusted for future changes in estimated forfeitures. ​ Information relating to RSU grants and deliveries is as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | ​ | ​ | Total Fair Market |
​ | ​ | Total RSUs | ​ | Value of RSUs |
​ |  | Issued |  | Issued(1) |
​ | ​ | ​ | ​ | (in thousands) |
RSUs outstanding at December 31, 2023 |  | 920,376 | ​ | ​ | ​ | ​
RSUs granted |  | 303,788 | ​ | $ | 14,060 | ​
RSUs forfeited |  | (9,620) | ​ | ​ | ​ | ​
RSUs vested(2) |  | (388,668) | ​ | ​ | ​ | ​
RSUs outstanding at September 30, 2024 |  | 825,876 | ​ | ​ | ​ | ​
(1) | The total fair market value is derived from the number of RSUs granted times the current stock price on the date of grant.
(2) | Of the vested RSUs, 147,959 shares of common stock were surrendered to fulfill tax withholding obligations.
​ Share-based Compensation Expense ​ The Company recorded share-based compensation expense, which is included in the Company’s condensed consolidated statement of operations as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | Three Months Ended | ​ | Nine Months Ended |
​ | ​ | September 30, | ​ | September 30, | ​
​ | ​ | 2024 | ​ | 2023 | ​ | 2024 |  | 2023 |
​ | ​ | (in thousands) |
Cost of revenues |  | $ | 1,133 |  | $ | 1,004 |  | $ | 4,583 |  | $ | 3,868 | ​
Operating expenses: | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Selling, distribution, and marketing | ​ |  | 249 | ​ |  | 213 | ​ |  | 777 | ​ |  | 649 | ​
General and administrative | ​ |  | 3,710 | ​ |  | 2,975 | ​ |  | 11,239 | ​ |  | 9,323 | ​
Research and development | ​ |  | 504 | ​ |  | 452 | ​ |  | 2,137 | ​ |  | 1,780 | ​
Total share-based compensation | ​ | $ | 5,596 | ​ | $ | 4,644 | ​ | $ | 18,736 | ​ | $ | 15,620 | ​
​

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