
	Options Outstanding	Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Balance at January 1, 2022	37,208	$	18.60	7.83	$	8,698,078
Issued	937	177.79
Exercised	(3,012)	13.59
Forfeited and cancelled	(1,722)	22.79

Balance at September 30, 2022	33,411	23.30		7.19	1,481,640

Vested and exercisable at September 30, 2022	18,506	18.19		6.70	882,457
Vested and expected to vest at September 30, 2022	27,277	23.26		7.04	1,229,963

During the three and nine months ended September 30, 2022, the Company granted stock options for the purchase of 143,751 and 937,247 shares of the Company’s Class A common stock with a weighted-average grant date fair value of $42.69 and $83.25 per share, respectively, to certain employees of the Company. The stock options vest over three years at a rate of 1/12 per quarter.

As of September 30, 2022, there was total unrecognized compensation cost of $159.7 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.4 years.

The assumptions used under the Black-Scholes-Merton Option-Pricing Model and the weighted average calculated value of the options granted to employees were as follows:


	Three Months Ended September 30,			Nine Months Ended September 30,
	2022		2021	2022		2021
Dividend yield	0.0	%	N/A	0.0	%	0.0	%
Expected volatility	76.1	%	N/A	59.3	%	44.0	%
Expected term (in years)	5.8		N/A	5.8		4.8
Risk-free interest rate	3.0	%	N/A	2.1	%	0.5	%

As of September 30, 2022, there were 213,757 shares of Class A common stock subject to repurchase related to stock options exercised early and not yet vested, but that are expected to vest. As of September 30, 2022, the Company recorded a liability related to these shares subject to repurchase in the amount of $4.3 million, which is included within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.

During the three and nine months ended September 30, 2022, stock-based compensation expense of $1.0 million and $2.9 million, respectively, was recognized related to this award. During the three and nine months ended September 30, 2021, stock-based compensation expense of $22.2 million and $28.5 million was recognized related to this award, respectively.

The Company’s RSUs vest upon the satisfaction of a service-based condition. In general, the RSUs vest over a service period ranging from one to four years. Once vested, the RSUs are settled by delivery of Class A common stock.


	Number of Shares	Weighted-Average Grant Date Fair Value per Share
Balance at January 1, 2022	7,482	$	157.22
Granted	7,860	144.69
Vested	(6,906)	153.57
Forfeited and cancelled	(1,582)	164.86
Balance at September 30, 2022	6,854	144.64

For RSUs granted during the three months and nine months ended September 30, 2022, the closing price of the Company’s Class A common stock as reported on The Nasdaq Global Select Market on the grant date was used as the fair value.

As of September 30, 2022, there was total unrecognized compensation cost of $841.3 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.9 years.

As part of the Company’s acquisitions, the Company has issued shares of restricted Class A common stock. Vesting of this restricted Class A common stock is dependent on a service-based vesting condition that is generally satisfied over three years. The Company has the right to repurchase shares at par value for which the vesting condition is not satisfied. Activity of restricted Class A common stock is as follows (in thousands, except per share data):


	Number of Shares	Weighted-Average Grant Date Fair Value per Share
Balance at January 1, 2022	2,014	$	137.57
Granted	323	137.05
Vested	(925)	129.72
Forfeited and cancelled	—	—
Balance at September 30, 2022	1,412	143.33

As of September 30, 2022, there was total unrecognized compensation cost of $163.1 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.6 years.

The ESPP allows eligible employees the option to purchase shares of the Company's Class A common stock at a 15% discount, over a series of offering periods through accumulated payroll deductions over the period. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is lower than the stock price on the offering date. The Company recognizes stock-based compensation expenses related to purchase rights issued pursuant to its ESPP on a straight-line basis over the offering period, which is 24 months. The fair value of purchase rights under the ESPP are estimated on the date of grant using the Black-Scholes-Merton Option-Pricing Model.

The grant date of the initial offering period was May 3, 2021, and that offering period will end on April 30, 2023. As of September 30, 2022, the Company recorded a liability of $8.6 million related to the accumulated payroll deductions, which are refundable to employees who withdraw from the ESPP. This amount is included within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.

Stock-based compensation is included in the following components of expenses on the accompanying condensed consolidated statements of operations (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2022		2021		2022		2021
Technology and development	$	275,817	$	176,785	$	793,573	$	381,030
Sales and marketing	18,461		10,095		52,813		20,299
General and administrative	97,163		77,314		288,692		156,828

Total	$	391,441	$	264,194	$	1,135,078	$	558,157

During the three and nine months ended September 30, 2022, $26.3 million and $97.7 million of stock-based compensation expense was included in capitalized software, respectively. During the three and nine months ended September 30, 2021, $0.7 million and $1.5 million of stock-based compensation expense was included in capitalized software, respectively.