STOCKHOLDERS' EQUITY

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Share Repurchase Program

In October 2023, the board of directors of the Company authorized the repurchase of up to $1 billion of the Company’s Class A common stock. Repurchases may be made from time to time through open market purchases or through privately negotiated transactions subject to market conditions, applicable legal requirements and other relevant factors. The repurchase program does not obligate the Company to acquire any particular amount of its Class A common stock and may be suspended at any time at the Company’s discretion. The timing and number of shares repurchased will depend on a variety of factors, including the stock price, business and market conditions, corporate and regulatory requirements, alternative investment opportunities, acquisition opportunities, and other factors.

During the three months ended March 31, 2024, we repurchased 3.6 million shares of our Class A common stock for an aggregate amount of $252.1 million. As of March 31, 2024, $591.1 million remained available and authorized for repurchases.

Stock Plans

The 2015 Equity Incentive Plan ("2015 Plan") provides that the number of shares available for issuance under the 2015 Plan will be increased on the first day of each fiscal year, in an amount equal to the least of (i) 40.0 million shares, (ii) 5% of the outstanding shares on the last day of the immediately preceding fiscal year, or (iii) such other amount as our board of directors may determine. As of March 31, 2024, there were 153.2 million shares available for future issuance under our 2015 Plan.

A summary of stock option activity for the three months ended March 31, 2024 is as follows (in thousands, except per share data):


	Number of Stock Options	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Outstanding, beginning of the year	4,991	$	47.64	3.80	$	195,760
Granted	—	—
Exercised	(987)	20.20
Forfeited	—	—
Expired	(81)	158.19
Outstanding, end of the period	3,923	$	52.27	4.20	$	163,836

Exercisable, end of the period	3,294	$	44.89	3.37	$	155,692

Restricted Stock Activity

Activity related to RSUs during the three months ended March 31, 2024 is set forth below (in thousands, except per share data):


	Number of Shares	Weighted Average Grant Date Fair Value
Unvested, beginning of the year	40,099	$	74.76
Granted	2,440	65.33
Vested	(3,820)	81.50
Forfeited	(3,874)	76.30
Unvested, end of the period	34,845	$	73.19

Share-Based Compensation

The following table summarizes the effects of share-based compensation on the Company's condensed consolidated statements of operations (in thousands):


	Three Months Ended March 31,
	2024		2023
Cost of revenue	$	173	$	142
Product development	221,954		197,857
Sales and marketing	31,368		29,365
General and administrative	57,673		52,227
Total	$	311,168	$	279,591

The Company recorded $7.0 million and $21.1 million of share-based compensation expense related to the Company's 2015 Employee Stock Purchase Plan during the three months ended March 31, 2024 and March 31, 2023, respectively, which are included in the table above.

The Company capitalized $6.5 million and $5.9 million of share-based compensation expense related to capitalized software costs during the three months ended March 31, 2024 and March 31, 2023, respectively.

As of March 31, 2024, there was $2.5 billion of total unrecognized compensation cost related to outstanding stock options and RSUs that are expected to be recognized over a weighted-average period of 2.5 years.