XML 28 R17.htm IDEA: XBRL DOCUMENT v3.24.2.u1
Stock-based Compensation
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-based Compensation Stock-based Compensation
Equity Incentive Plans
The 2019 Equity Incentive Plan (2019 Plan) provides for the granting of stock options, restricted stock, RSUs, stock appreciation rights, performance shares, PSUs, and performance awards for the Company's Class A common stock to the Company's employees, directors, and consultants. Certain outstanding equity awards were granted under the Company’s 2010 Equity Incentive Plan that is no longer active, but continues to govern the outstanding equity awards granted thereunder.
Stock Options
Since the fiscal year ended December 31, 2022, the Company has granted to certain executive officers and other key employees 10-year stock options with market conditions that vest and becomes exercisable only if the Company achieves certain stock price milestones and the employee continues to provide service to the Company through the applicable vesting dates (the Performance Options). The Performance Options were granted under the 2019 Plan and consist of 10-year options to purchase the Company’s Class A common stock. As of June 30, 2024, there was approximately 4.0 million outstanding Performance Options.
In April 2023, the Company's compensation committee and Board of Directors approved amendments to the Performance Options, effective as of May 1, 2023. These amendments reduced the exercise price per share of the Performance Options to the fair market value per share of the Company's Class A common stock on the effective date of the amendment, and modified the structure of the Performance Options to contain a total of nine separate tranches with added stock price milestones. These amendments resulted in an additional stock-based compensation expense of approximately $25.8 million to be recognized over a weighted-average requisite service period.
During the six months ended June 30, 2024, the Company achieved the stock price milestones for the first two tranches of 418,250 Performance Options in total. Following the achievement of each stock price milestone, the applicable tranche shares are subject to six quarterly vesting periods on a ratable basis.
The Company recognizes stock-based compensation expense for the Performance Options based on the grant date fair value and using a graded attribution method over the weighted-average requisite service period. The total stock-based compensation expense for the Performance Options for the three months ended June 30, 2024 and 2023 were $9.9 million and $7.4 million, respectively, and for the six months ended June 30, 2024 and 2023 were $12.5 million and $14.3 million, respectively. As of June 30, 2024, there was $138.7 million of unrecognized stock-based compensation expense related to the Performance Options that is expected to be recognized over a weighted-average period of 4.1 years.
Restricted Stock Units and Performance Stock Units
The total stock-based compensation expense for RSUs and PSUs for the three months ended June 30, 2024 and 2023 was $74.4 million and $55.2 million, respectively, and for the six months ended June 30, 2024 and 2023 was $138.3 million and $99.5 million, respectively. As of June 30, 2024, the total unrecognized stock-based compensation expense related to unvested RSUs and PSUs was $704.7 million that is expected to be recognized over a weighted-average period of 2.9 years.
2019 Employee Stock Purchase Plan
In September 2019, the Company's Board of Directors adopted and stockholders approved the ESPP, which became effective one business day prior to the effective date of the Company's registration statement on Form S-1 filed with the SEC in connection with the Company’s initial public offering. 173,702 and 248,738 shares of Class A common stock were purchased under the ESPP during the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the total unrecognized stock-based compensation expense related to the ESPP was $2.7 million and is expected to be recognized over a weighted average period of 0.4 years.
Stock-based Compensation Expense
The following table sets forth the total stock-based compensation expense included in the Company’s condensed consolidated statements of operations:
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
(in thousands)
Cost of revenue$2,879 $2,047 $5,382 $3,730 
Sales and marketing23,801 20,014 43,978 34,834 
Research and development35,268 34,651 60,984 62,388 
General and administrative24,043 11,680 45,370 24,841 
Total stock-based compensation expense$85,991 $68,392 $155,714 $125,793