XML 31 R18.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Stock-based Compensation | 12 Months Ended
--- | ---
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Stock-based Compensation | Stock-based Compensation Equity Incentive Plans The Company's 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. The maximum number of shares of Class A common stock that may be issued under the 2019 Plan will not exceed 66,661,953 shares of the Company's Class A common stock. Stock-based awards under the 2019 Plan that expire or are forfeited, canceled, or repurchased generally are returned to the pool of shares of Class A common stock available for issuance under the 2019 Plan. In addition, the number of shares of the Company's Class A common stock reserved for issuance under the 2019 Plan will automatically increase on January 1 of each calendar year through January 1, 2029, in an amount equal to the least of (i) 29,335,000 shares, (ii) 5% of the total number of shares of Class A and Class B common stock outstanding on December 31 of the fiscal year before the date of each automatic increase, or (iii) a lesser number of shares determined by the com pensation committee of the Company's Board of Directors prior to the applicable January 1. The 2010 Plan was terminated prior to the effectiveness of the 2019 Plan and the Company ceased granting any additional awards under the 2010 Plan. All outstanding awards under the 2010 Plan at the time of the termination of the 2010 Plan remain subject to the terms of the 2010 Plan, and any shares underlying stock options that expire or terminate or are forfeited or repurchased by the Company under the 2010 Plan will be automatically transferred to the 2019 Plan. Stock Options Under the 2010 Plan and 2019 Plan, at exercise, stock option awards entitle the holder to receive one share of Class B or Class A common stock, in the case of the 2010 Plan, or one share of Class A common stock, in the case of the 2019 Plan. The stock options granted under the 2010 Plan and the 2019 Plan generally vest over a four-year period subject to remaining continuously employed and expire no more than 10 years from the date of grant. The following table summarizes the stock options activity under the 2010 Plan and 2019 Plan during the periods presented:
| Stock Options Outstanding
| (in thousands, except year and per share data)
| Shares Subject to Options Outstanding |  | Weighted- Average Exercise Price per Option |  | Weighted- Average Remaining Contractual Terms (in years) |  | Aggregate Intrinsic Value
Balances as of December 31, 2021 | 13,603 |  |  | $ | 12.47 |  |  | 6.0 |  | $ | 1,726,440 |
Options granted | 5,733 |  |  | $ | 97.71 |  |  |  |  |
Options exercised | (2,484) |  |  | $ | 4.08 |  |  |  |  | $ | 180,990 |
Options canceled/forfeited/expired | (966) |  |  | $ | 74.88 |  |  |  |  |
Balances as of December 31, 2022 | 15,886 |  |  | $ | 34.21 |  |  | 6.3 |  | $ | 451,782 |
Options granted | 1,290 |  |  | $ | 51.21 |  |  |  |  |
Options exercised | (2,989) |  |  | $ | 4.96 |  |  |  |  | $ | 171,225 |
Options canceled/forfeited/expired | (1,664) |  |  | $ | 62.62 |  |  |  |  |
Balances as of December 31, 2023 | 12,523 |  |  | $ | 21.03 |  |  | 5.7 |  | $ | 787,633 |
Options granted | 625 |  |  | $ | 81.45 |  |  |  |  |
Options exercised | (2,984) |  |  | $ | 4.33 |  |  |  |  | $ | 257,941 |
Options canceled/forfeited/expired | (1,317) |  |  | $ | 48.00 |  |  |  |  |
Balances as of December 31, 2024 | 8,847 |  |  | $ | 26.91 |  |  | 5.1 |  | $ | 720,364 |
Vested and expected to vest as of December 31, 2024 | 8,847 |  |  | $ | 26.91 |  |  | 5.1 |  | $ | 720,364 |
Exercisable as of December 31, 2024 | 4,891 |  |  | $ | 7.56 |  |  | 3.0 |  | $ | 495,491 |
The aggregate intrinsic value is the difference between the exercise price of the option and the estimated fair value of the underlying common stock. There were no options exercisable and unvested as of December 31, 2024, and 401,212 options exercisable that were unvested as of December 31, 2023. The total grant date fair value for vested options in the years ended December 31, 2024, 2023, and 2022 was $7.8 million, $15.5 million, and $12.5 million, respectively. Since the fiscal year ended December 31, 2022, the Company granted to certain executive officers and other key employees 10-year stock options with market conditions that vest and become exercisable to purchase shares of the Company's Class A common stock 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. As of December 31, 2024, there were approximately 3.9 million outstanding Performance Options. In April 2023, the Company's compensation committee and Board of Directors approved amendments to the Performance Options that were outstanding at such time, effective as of May 1, 2023. These amendments reduced the exercise price per share of such 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 such Performance Options with respect to the number of tranches and the applicable stock price milestones for such tranches. 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 year ended December 31, 2024, the Company achieved certain stock price milestones for 385,250 Performance Options in total, net of forfeitures. Following the achievement of each stock price milestone, the applicable tranche shares are subject to six quarterly vesting periods on a ratable basis. In February 2025, the Company achieved a stock price milestone fo r 412,000 P erformance Options. Following the achievement of this milestone, these Performance Options are subject to vesting over the next six quarters on a ratable basis. The weighted-average assumptions used to determine the fair value of the Performance Options during the periods presented were as follows:
| Year ended December 31,
| 2024 |  | 2023 |  | 2022
Expected term (in years) | 10.0 |  | 10.0 |  | 9.8
Expected volatility | 60.6 | % |  | 63.7 | % |  | 59.5 | %
Risk-free interest rate | 4.2 | % |  | 3.9 | % |  | 3.0 | %
Dividend yield | — |  |  | — |  |  | — |
The weighted-average grant date fair value of the Performance Options was $52.09 and $52.13 per share for the years ended December 31, 2024 and December 31, 2023, respectively. 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 years ended December 31, 2024, 2023, and 2022 were $32.7 million, $33.5 million, and $39.5 million, respectively. As of December 31, 2024, there was $127.9 million of unrecognized stock-based compensation expense related to the Performance Options that is expected to be recognized over a weighted-average period of 3.8 years. Restricted Stock Units and Performance Stock Units RSUs granted under the 2010 Plan generally vest upon the satisfaction of both a service-based vesting condition and a performance vesting condition. RSUs granted under the 2019 Plan generally vest upon the satisfaction of a service-based vesting condition. The service-based vesting condition for employees under both the 2010 Plan and the 2019 Plan is typically satisfied over a four-year period, subject to remaining continuously employed. All PSUs granted under the 2019 Plan on or before December 31, 2024 will vest upon the achievement of financial performance conditions, subject to continued service through the applicable vesting dates. RSU and PSU activity under the 2019 Plan and the 2010 Plan for the year ended December 31, 2024 was as follows:
| Restricted Stock, RSUs, and PSUs* |  | Weighted-Average Grant Date Fair Value
| (in thousands, except per share data)
Unvested and outstanding as of December 31, 2021 | 7,456 |  |  | $ | 47.36 |
Granted - RSUs | 6,367 |  |  | $ | 67.13 |
Granted - Restricted stock | 52 |  |  | $ | 100.29 |
Vested - RSUs | (2,848) |  |  | $ | 38.49 |
Vested - Restricted stock | (668) |  |  | $ | 19.96 |
Forfeited | (779) |  |  | $ | 64.83 |
Unvested as of December 31, 2022 | 9,580 |  |  | $ | 61.64 |
Vested and not yet released | — |  |  | $ | — |
Outstanding as of December 31, 2022 | 9,580 |  |  | $ | 61.14 |
Granted - RSUs | 6,428 |  |  | $ | 62.24 |
Vested - RSUs | (3,689) |  |  | $ | 56.75 |
Forfeited - RSUs | (1,161) |  |  | $ | 65.87 |
Unvested as of December 31, 2023* | 10,894 |  |  | $ | 65.93 |
Vested and not yet released* | — |  |  | $ | — |
Outstanding as of December 31, 2023* | 10,894 |  |  | $ | 65.93 |
Granted - RSUs and PSUs | 7,460 |  |  | $ | 89.17 |
Vested - RSUs | (4,226) |  |  | $ | 69.43 |
Forfeited - RSUs | (2,267) |  |  | $ | 65.56 |
Unvested as of December 31, 2024* | 11,861 |  |  | $ | 79.37 |
Vested and not yet released* | 18 |  |  | $ | 57.66 |
Outstanding as of December 31, 2024* | 11,879 |  |  | $ | 79.34 |
*Restricted stock did not have a material impact on the Company’s consolidated financial statements for the fiscal years ended December 31, 2024 or 2023. Effective January 1, 2023, this table discloses RSU and PSU activity only. The total grant date fair value for vested RSUs were $293.4 million, $209.4 million, and $109.6 million for the years ended December 31, 2024, 2023 and 2022, respectively. The total stock-based compensation expense for RSUs and PSUs were $300.0 million, $219.6 million, and $137.4 million for the years ended December 31, 2024, 2023 and 2022, respectively. As of December 31, 2024, the total unrecognized stock-based compensation expense related to RSUs and PSUs was $820.2 million that is expected to be recognized over a weighted-average period of 3.1 years. The number of PSUs granted and associated stock-based compensation expense were not material during the year ended December 31, 2024. On February 5, 2025, the Company’s Board of Directors granted to the Company’s CEO and President (each, a Co-Founder) PSUs with market conditions that vest only if the Company achieves certain stock price milestones and the Co-Founder continues to provide service to the Company through the applicable vesting dates. An aggregate of 350,220 PSUs with market conditions were granted under the 2019 Plan. 2019 Employee Stock Purchase Plan The ESPP allows eligible employees to purchase shares of the Company's Class A common stock through payroll deductions up to 10% of their eligible compensation and provides six-month offering periods beginning in November and May of each year with identical purchase periods. Class A common stock will be purchased for the accounts of employees participating in the ESPP at a price per share that is the lesser of (1) 85% of the fair market value of a share of the Company's Class A common stock on the first date of an offering period, or (2) 85% of the fair market value of a share of the Company's Class A common stock on the date of purchase. The number of shares of Class A common stock reserved for issuance includes an annual increase on the first day of each fiscal year by the least of (1) 5,870,000 shares of Class A common stock, (2) 1% of the total number of shares of Class A and Class B common stock outstanding on December 31 of the fiscal year before the date of each automatic increase; or (3) such lesser amount as the compensation committee of the Company's Board of Directors may determine prior to the applicable January 1. During the years ended December 31, 2024 and 2023, respectively, 326,515 and 447,042 shares of Class A common stock were purchased under the ESPP. As of December 31, 2024, the total unrecognized stock-based compensation expense related to the ESPP was $3.1 million and is expected to be recognized over a weighted-average period of 0.4 years. The weighted-average assumptions used to determine the fair value of the ESPP during the periods presented were as follows:
| Year ended December 31,
| 2024 |  | 2023 |  | 2022
Expected term (in years) | 0.5 |  | 0.5 |  | 0.5
Risk-free interest rate | 4.9 | % |  | 5.2 | % |  | 3.3 | %
Expected volatility | 46.7 | % |  | 68.9 | % |  | 100.6 | %
Dividend yield | — |  |  | — |  |  | — |
Stock-based Compensation Expense The following table sets forth the total stock-based compensation expense included in the Company’s consolidated statements of operations:
| Year Ended December 31, |  |
| 2024 |  | 2023 |  | 2022 |  |
| (in thousands) |  |
Cost of revenue | $ | 10,911 |  |  | $ | 7,967 |  |  | $ | 6,251 |  |  |
Sales and marketing | 91,464 |  |  | 73,682 |  |  | 50,317 |  |  |
Research and development | 143,589 |  |  | 132,417 |  |  | 103,276 |  |  |
General and administrative | 92,497 |  |  | 59,923 |  |  | 42,933 |  |  |
Total stock-based compensation expense | $ | 338,461 |  |  | $ | 273,989 |  |  | $ | 202,777 |  |  |

X
- Definition The entire disclosure for share-based payment arrangement. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (h)(2)(i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 718 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (l) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480429/718-10-50-2 + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DisclosureOfCompensationRelatedCostsSharebasedPaymentsAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration