XML 36 R20.htm IDEA: XBRL DOCUMENT v3.25.0.1
Stock-Based Compensation and Employee Benefit Plan
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation and Employee Benefit Plan Stock-Based Compensation and Employee Benefit Plan
Stock-Based Compensation Expense

Stock-based compensation expense was $930 million, $1.1 billion and $1.4 billion for the years ended December 31, 2022, 2023 and 2024, respectively.
There was no income tax benefit related to stock-based compensation expense recognized for the year ended December 31, 2022. The income tax benefit recognized in the consolidated statement of operations on stock-based compensation expense was $227 million and $273 million for the years ended December 31, 2023 and 2024, respectively.

The Company realized an income tax benefit of $19 million, $435 million and $39 million in the consolidated statements of operations related to awards vested or exercised during the years ended December 31, 2022, 2023 and 2024, respectively. These amounts do not include the indirect effects of stock-based awards, which primarily relate to the research and development tax credit.

Equity Incentive Plans

2018 Equity Incentive Plan

In 2018, the Company adopted the 2018 Equity Incentive Plan (the “2018 Plan”). A total of 50.0 million shares of Class B common stock were reserved for issuance under the 2018 Plan and the 13.2 million shares remaining for issuance under a prior plan were added to the number of shares available under the 2018 Plan.

2020 Incentive Award Plan

In 2020, the Company adopted the 2020 Incentive Award Plan (the “2020 Plan,” and together with the 2018 Plan, and a plan assumed in connection with a 2019 acquisition, the “Plans”). Under the 2020 Plan, 62.1 million shares of Class A common stock were initially reserved for issuance. The number of shares initially reserved for issuance pursuant to awards under the 2020 Plan will be increased by (i) the number of shares subject to awards outstanding under the 2018 Plan and the Assumed Equity Incentive Plan, as of the effective date of the 2020 Plan that subsequently terminate, are exchanged for cash, surrendered or repurchased, or are tendered or withheld to satisfy any exercise price or tax withholding obligations and (ii) an annual increase on the first day of each year beginning in 2022 and ending in 2030, equal to the lesser of (a) 5% of the shares of all series of the Company’s common stock outstanding on the last day of the immediately preceding year and (b) such smaller number of shares of stock as determined by the Company’s board of directors; provided, however, that no more than 371.2 million shares of stock may be issued upon the exercise of incentive stock options.

Stock Option and Restricted Stock Unit Activity

The fair value of each stock option award is estimated on the date of grant using the Black-Scholes option-pricing model using the assumptions in the following table:

Year Ended December 31,
202220232024
Expected term (years)
6.1
1.4 - 6.1
6.1
Risk-free interest rate
0.3% - 2.2%
3.6% - 5.0%
4.3% - 4.4%
Expected volatility
48.6% - 58.4%
51.3% - 54.4%
51.8% - 52.7%
Expected dividend yield— — — 

A summary of stock option and RSU activity under the Plans was as follows (in millions, except per share amounts):

Outstanding
Stock Options
Outstanding
Restricted Stock Units
 Number of
Shares		Weighted-
Average
Exercise
Price		Number of
Shares		Weighted-
Average
Grant
Date Fair
Value
Balances as of December 31, 202222 $23.41 34 $77.07 
Granted1 115.15 12 122.84 
Increase in shares available for grant— — — — 
Exercised/Vested (16)5.37 (14)93.25 
Canceled— 98.60 (2)120.36 
Balances as of December 31, 20237 71.76 30 85.35 
Granted1 168.18 13 153.36 
Increase in shares available for grant— — — — 
Exercised/Vested(3)41.55 (11)119.00 
Canceled— — (2)143.07 
Balances as of December 31, 20245 $93.53 30 $97.93 
 Number of
Shares		Weighted-
Average
Exercise
Price		Weighted-
Average
Remaining
Contractual
Life (years)		Aggregate
Intrinsic
Value
Options outstanding as of December 31, 20237 $71.76 5.77$500 
Options exercisable as of December 31, 20236 60.89 5.11448 
Options outstanding as of December 31, 20245 93.53 5.43260 
Options exercisable as of December 31, 20244 80.55 4.69253 

In May 2023, 11.2 million stock options were exercised in cashless transactions pursuant to which the Company withheld and retired 5.7 million shares of common stock, valued at their fair market value on the exercise date, to cover the related $567 million of employee withholding tax and $36 million of exercise cost.

During the years ended December 31, 2022, 2023 and 2024, the weighted-average fair value of stock options granted under the Plans was $79.75, $65.22 and $93.29 per share, respectively.

During the years ended December 31, 2022, 2023 and 2024, the aggregate intrinsic value of stock options exercised was $326 million, $1.6 billion and $254 million, respectively, and the total grant-date fair value of stock options that vested was $45 million, $44 million and $51 million, respectively.

As of December 31, 2024, there was $80 million of total unrecognized compensation cost related to stock option awards granted under the Plans. The unrecognized cost as of December 31, 2024 is expected to be recognized over a weighted-average period of 2.6 years.

RSUs are measured at the fair market value of the underlying stock at the grant date and the expense is recognized over the requisite service period. The service-based vesting condition for these awards is generally satisfied over four years.

Employee Benefit Plan

The Company maintains a 401(k) defined contribution benefit plan that covers substantially all of its domestic employees. The plan allows U.S. employees to make voluntary pre-tax contributions in certain investments at the discretion of the employee, up to maximum annual contribution subject to Internal Revenue Code limitations. The Company’s contributions to the plan were immaterial for the years ended December 31, 2022, 2023 and 2024.